PRIVATIZING A PUBLICLY-OWNED  ASSET
By Pat Carano, PDA-Ohio

Soon, Akron Mayor Don Plusquellic will be calling together community leaders "to examine how we (Akron) might create a plan for securitizing a city asset by re-investing the funds into a public trust, and developing a plan to provide a publicly-funded education beyond high school" (excerpt from Akron mayor in State of the City address, 2008).  The city asset is the Akron sewer system.

The goal is to provide college and advanced technical scholarships to Akron Public Schools students with the intention of providing a capable workforce for our local business community.  Goodyear, Firestone, and hundreds of small and mid-size companies looking to compete in the global marketplace need the best and the brightest the City can produce. With many college graduates looking outside of the City, and Ohio for that matter, we as a community need to keep our young and talented professionals in NE Ohio. The future of our economic well-being depends on it.

But, is privatization of a public asset, owned by everyone in Akron who pays a sewer bill, the best way to produce the results intended?  Historically, selling off public assets to private companies has not yielded success.  The City of Atlanta sold its water distribution system to a private company and after a few short years took back control of the system because of poor performance.  On the national front, companies providing services to our soldiers in Iraq like Blackwater and KBR have shown us it is not always cheaper with private contractors. In fact, costs have skyrocketed. In 2005, Ohio's Ken Blackwell was dead set on selling the Ohio Turnpike in order to generate funds for the State. We don't need a quick fix for a cash cow. In spite of what citizens may believe, government run public utilities under transparency have shown to do a an acceptable job of keeping taxpayer costs low.

A better approach is to regionalize the sewer systems into one public Summit County sewer district.  This would take the collective will of cities like Tallmadge, Cuyahoga Falls, Akron, and other cities in the County who own their systems - into one public regional system.  If the mayors could get past their parochialism (as witnessed by the recent attempt by the Council of Governments to create a regional dispatch center until the Mayor of Cuyahoga Falls bailed taking two communities with him) it just may be possible to create a system that is more efficient and  cheaper to operate. Rates can be spread out across the county equalizing sewer bills so that all residents pay the same monthly sewer rate. A sewer system with almost a ½ million benefactors would make a strong lobby for federal funding grants and Issue 2 monies.

The combined sewer problem: There are major problems with Akron's aging sewer system with no immediate relief from the Feds that even a private owner may not want to deal with. In 2006, the Beacon Journal editorial board asked, "Where is the federal government with substantial help for beleaguered cities facing this mandated task?  Akron is looking at a $400 million project with little help in sight".  Akron, and cities across the country are expected to comply with US EPA unfunded mandates to fix aging, inefficient, sewer systems that dump waste into rivers, streams and lakes with little federal assistance.  Our problem flows to Lake Erie polluting our greatest resource, and one of our greatest assets. (Something to ponder - The cost of the war in Iraq for half a day could take care of Akron's problem. What could 800 billion dollars of our tax dollars spent in Iraq do to repair water, sewer and other crumbling public infrastructure problems across our Nation?).

All tax-paying citizens should consider Mayor Plusquellic's proposal to fund higher education for our children. Are there other ways to fund student scholarships in all this?  Yes, - and through voter approval. 1. We could do so at the ballot box by simply adding on a $1.00 surcharge to each residential sewer bill, and a $5.00 surcharge to commercial and industrial users with the funds directed to a Trust fund for scholarships.  2. Solicit grants from the private sector to build the Trust fund. 3. Companies seeking degreed graduates in specialized fields can enter into compacts with University of Akron, making their grants specific to their business needs.

No one can question Mayor Plusquellic's love for his city and thinking outside the box for the long term sustainability of a major Ohio urban center through education. It's not just an Akron problem. It is the collective responsibility of all Summit County citizens to keep our region strong and a place where our children want to live, work, and build their lives and families. The Mayor set a lofty goal. It is the Mayor's means to reach that end we should question. Privatizing a public asset is not the answer.

When the Akron Mayor brings together the group of community leaders to examine how we might invest in developing a plan to provide a publicly-funded education beyond high school let's broaden our vision to see past the outside boundaries of the box for a truly regional perspective.
Summit County Executive Russ Pry is a proven consensus builder and problem solver. In six short months, Pry resolved the Veterans Commission and the fair grounds issues. Two problems that remained unresolved for 10 years.  Executive Pry can add a broader regional perspective and should be seated at the table in the Mayor's plans. 

Educating the next generation of workers is critical for the long term health of our region. Equally important is keeping our water, sewer, and roads in the public domain.

Patrick Carano, PDA State Organizer
Progressive Democrats of America - Summit County Chapter


Privatizing a Public Asset: Pulling Babies out of the River

May 27, 2008

By Patrick Carano, PDA Ohio, Summit County Chapter of the Progressive Democrats of America

It was unfortunate to read Mayor Plusquellic's comments painting detractors of the proposed sale, and now lease, of the sewer system as "born against" citizens opposed to every idea he has to offer.  As a State Coordinator and Summit County Chapter member of the Progressive Democrats of America, President of the Tallmadge Democratic Club and an active Democrat in the Summit County Democratic Party, I have been supportive of the Mayor and I find it interesting he would paint with such a broad brush anyone who disagrees.

Most urban centers have not fared well in an economy that has dramatically changed in the last twenty years. But Akron has had good leadership as well as some luck. The rubber industry transitioned more easily into the new economy (think polymers for a moment) than a Youngstown or a Canton, where steel production met a dead end in making the jump to new technologies. I, for one believe the Mayor has done a tremendous job in keeping Summit County's urban center a viable place to live and work during his tenure.  I also want to believe that the Mayor floated this idea to sell the sewer system as a starting dialogue point to focus attention on a very real problem- the high cost of post-secondary education in Ohio facing middle and lower income families.
Are there other ways to create the next generation of highly trained professionals emerging from our universities?  Many Northeast Ohio think-tanks, chambers, local governments, public and private economic development organizations, and area universities, once structured to work within their own paradigmatic silos are now making progress in working together to find new ways to reach consensus on developing a single action plan dedicated to building on our educational system. This new collaborative thinking can succeed in finding cheaper access to higher education for our youth in the region to attract companies seeking a strong and educated workforce. 

With the Mayor's pronouncement at his State of the City Address I am reminded of the parable of the babies floating down the river in baskets.  "A group of people are standing at a river bank and suddenly hear the cries of a baby. Shocked, they see an infant floating--drowning--in the water. One person immediately dives in to rescue the child. But as this is going on, yet another baby comes floating down the river, and then another! People continue to jump in to save the babies. As more and more babies float down the river each day the townspeople rally to the rescue by building a nursery to care for the babies. As the problem worsens, the townspeople decide to build a foster home to house the babies. Next thing you know, the townspeople construct a textile mill to make clothing and diapers for the ever-increasing number of babies floating down the river.  An entire economy is created to care for the babies, One day, as the townspeople are fishing the baskets of babies out of the river, one person sets down his basket and starts to walk away from the group still on shore. Accusingly they shout, "Where are you going, we have to save the babies?" The person responds, "I'm going upstream to stop whoever's throwing babies into the river."

In light of "the baby in a basket" parable we must ask ourselves." Are we fixing the education problem for our young people or are we just treating the symptoms?"

As president of the U.S. Council of Mayors a few years ago, and during the Bush regime, the Mayor had control of bully pulpit to speak out as one with mayors of major cities across the country on the lack of federal funding to improve our public infrastructure for our urban centers. The federal government's dismal handling of the Katrina catastrophe proved the Bush Administration's lack of concern for rebuilding our cities. With the opportunity to elect a Democrat in the White House in November this just may be the opportunity for big and medium-sized cities to make their case for a new FDR-styled domestic initiative to rebuild our crumbling bridges, roads, water and sewer systems in America. Leasing the sewer system is an idea that should die with the corporatized big-business Republican Party and timid Democrats who have failed to make their case to their constituency that our priorities have been turned upside down under Bush. The Mayor was a quarterback in high school and college. Why  allow the Republican Party to set the goal posts by defining the game plan when the game plan should be thrown out and a "democratic" strategy can be drawn up to fund education?  Leasing the sewer system for education is just a band aid and does not address the root problem.

What are the elements of a successful community development issue like the one the Mayor has put forward and how do we, the citizens become involved in making education a part of our own collective responsibility and task as a community? Successful community and economic development initiatives are not solo acts. Collaboration is the key to long term success.  The report, "Community Development on Fostering Better Outcomes Through Good Process," notes what is required in putting together a broad-based successfully strategy; 1) it requires advocacy; 2)  it meaningfully engages the community and links participatory process together; 3) is supported by many; 4) is not imposed on people; 5) addresses underlying issues such as race, class, culture, and power, and 6) anticipates conflict and works to identify common ground.

The Mayor has set the parameters for discussion very low and with little public input, leaving no room for an honest dialogue, while leaving out many of the processes listed above for a successful outcome to fund education.  The concept of privatizing water and sewer is not unique having been pursued by many members of the U.S. Conference of Mayors. Republicans' Gary Podesto of Stockton, California, Oscar Goodman of Las Vegas, and Atlanta Mayor Shirley Franklin have pushed the concept and all have failed.  Atlanta, after signing into a long term contract with a private company, ended up buying the system back in a couple of years due to the incompetence demonstrated by the private for-profit company, and at a much higher repurchase cost.

The question needs to be asked;

Is the proposal to fund education or to eliminate an aging sewer system with a $400 million combined sewer environmental problem the city is expected to repair?  Federal EPA mandates without funds to solve the dilemma are making it harder and harder for cities to carry out basic governmental functions. This is one of many questions that need to asked.

Any suburb in Summit County that pumps its waste to the Akron sewer plant should have cause for concern if the proposed lease to a for-profit entity becomes a reality. I suspect it will be they who experience an increase in sewer rates to fund the education initiative for Akron students. There are regional approaches that must be studied to benefit middle and lower-income students throughout Summit County (lower-income students were left out of the Mayor's proposal). Expand the pool. If Akron University relied solely on Akron students for higher education the university would have closed long ago. A regional public sewer district should be explored to fund the initiative. All citizens of Summit County have a role to play in ensuring our children have access to higher learning.

Grover Norquist, one of the right-wing neocon architects of the Bush Administration and a proponent of privatizing our military, Social Security and Medicare, school vouchers and deregulation to enhance the private sector's pocketbook, would be proud of the City for turning the sewer system over to a for-profit entity. "My goal is to cut government in half in twenty-five years," Norquist has said, adding, "to get it down to the size where we can drown it in the bathtub." We must ask ourselves "Is everything in this country for sale, even our democracy?"  Only if our citizens allow it.

PDA Ohio believes there are other practical ways to solve the high cost of post-secondary education. Go to www.pdaohio.org to read just one alternative to funding education without privatizing our public assets. Do you have an idea on how we can fund higher education for our high school graduates? Send your ideas to pdaohio@gmail.com and we will post it at our web-site.




Akron Mayor Don Plusquellic has proposed selling (now leasing) the citizens of Akron's sewer system to private business--under the smokescreen of funding the higher education of our youth.  As the mayor knows, everyone wants to help educate our youth.  We like kitty cats and puppies too. But this plan is lipstick on a very ugly pig.

This privatization proposal could very well be the first step leading to a larger goal-the privatization of the entire Akron water system. Akron's water system runs from Lake La Due in Geauga County, down through Lake Rockwell in Portage County, all the way to the drip out of the faucet of not only the citizens of Akron but also through the faucets of the surrounding communities that buy Akron water. Multi-national corporations, the same ones that lobby hard at annual the U.S. mayor conferences, have been trying to make inroads into public water systems across our nation and the world over the last dozen years, control of water being seen as the new "oil" in terms of profit.

Many communities throughout our nation have fought to keep their water systems out of the hands of multi-nationals, the same multi-nationals who seek inroads into Akron. Others have succumbed, and then fought to gain back what they have given up. In losing local control, communities have paid a great price.  The first cost of private systems is the loss of local oversight and governance.  The second cost is higher prices, the corporations beholden by law to shareholders rather than the public.  The third cost is service and water quality. These costs are not cheap, as the citizens of Atlanta, Ga. and Stockdale, Ca. have found out from their bad experiences and both have at great expense gained back public control of their sewer and water systems.

Thus, as a believer in the democratic process, I encourage every concerned citizen to help Citizens Save Our Sewers, a coalition of concerned people and groups wanting to stop this bad policy to contact them at CitizensSOS@gmail.com.  Ask for a petition.  Get signatures. This petition will not allow the sale of public assets without the vote of the people.  The citizens own the sewer system, so let them decide. This is direct democracy, an action needing no lipstick to look pretty.  It always just is.
 



Next in Line? The Akron Water System
By Michael Carano, PDA Ohio  and State Coordinator for the Progressive Democrats of America
AKRON BEACON JOURNAL

EDITORIAL

Plusquellic isn't acting like a Democrat
June 5, 2008

Recently, someone told me the mayor of Akron wanted to privatize the city's sewer system, leasing it to a private corporation. Being a Democrat, I called him a liar saying, ''Democrats don't believe in privatization; they believe in government's ability to protect the interests of the citizens.''

He went on to tell me that he read in the Beacon Journal that the mayor threatened AFSCME union employees who work for the Sewer Department that if they did not fight his plan to privatize they could keep their jobs. Again, I told him that Democrats don't threaten union employees since they support a union member's right to organize and the right of a union to exist.

To end the argument, I told him that Mayor Don Plusquellic is a Democrat. And he is a Democrat - isn't he?

Michael Carano
Tallmadge



AKRON BEACON JOURNAL

EDITORIAL

Group effort against mayor's sewer plan

June 12, 2008

I would like to applaud but also point out an important omission in your article (''Group would flush sewer plan,'' May 28) about Mayor Don Plusquellic's unfortunate proposal to privatize Akron's sewer system.

You reported on the strong showing of union and community groups opposing the mayor's plan and their initiative to allow a public vote on privatization proposals.

However, the article failed to mention that the Citizens to Save Our Sewers and Water coalition (a :www.AkronOhio.net ) organized the forum in large part to present the stories of two guests with much knowledge of water privatization around the country.

One guest speaker was Michael McDonald, former plant maintenance supervisor for 26 years in Stockton, Calif., where a privatization plan similar to Plusquellic's failed terribly.

McDonald shared his experience in Stockton, where privatization resulted in increased rates, inadequate maintenance and the eventual return of the system to public control.

The Stockton contract, struck amid public opposition and ironically described by city officials as ''air tight,'' failed.

As senior water organizer at Food & Water Watch, a national consumer advocacy group, I also spoke at the forum and with others. Food & Water Watch has experience working with dozens of communities from Atlanta to Felton, Calif., which have seen job losses, rate increases, poor service and lack of public control resulting from giant private companies running local water systems.

Jon Keesecker
Washington, D.C.

_____________________________________________________________




Direct Democracy in Akron

BY The Progressive Democrats of America - Ohio (Summit County)
June  1, 2008


In Stockton California, the Citizens Coalition, Sierra Club, and League of Women Voters filed a lawsuit to stop the privatization of the city's water, wastewater, and storm-water utilities. The citizens won and Stockton's system was turned back over to city.

Michael McDonald was a maintenance supervisor at Stockton California's Department of Public Works for 26 years until the city's sewer and water system was privatized. Mr. McDonald knows something about the privatization of public assets and the damage it can do to a community. That is why Labor organizations and the American Friends Service Committee invited Mr. McDonald to speak at the Laborers Hall on Wolf Ledges in Akron in late May of this year. Mr. McDonald's advice is. "The City should move slowly and citizens should organize a ballot initiative for the people to vote on whether to turn over their utilities to a foreign, multinational company".

In the United States, multinational water companies from Australia to Spain are pressing cities for new contracts, but they have been met with public outcry. Atlanta and Puerto Rico have ended their contracts with these multinational companies due to poor service and higher rates. New Orleans finally scrapped plans to privatize their public utilities. Local groups around the country in the cities of Lexington, Kentucky, Indianapolis, Indiana, Felton and Montara, California, and other communities are making efforts to take back their water from private companies.

Is turning over our publicly-owned sewer system to a private foreign multinational company the best way to fund post-secondary education for Akron middle class students?  The City will be studying the merits (and hopefully, the pitfalls) of leasing Akron's sewer system. In due course, and after proper public input and outside expert opinions on the final report, the citizens of Akron can have a say on whether to sell or lease their publicly-owned asset.

When a citizen knocks upon your door in the next few months with pen and petition in hand, please sign the petition giving you the opportunity to participate in direct democracy and a vote on this important issue.








TOLEDO BLADE

Article published Sunday, February 10, 2008

Critics fault idea to sell Akron sewer system
Cash from sale would help students pay for college, but rate hike feared

ASSOCIATED PRESS

AKRON - The Akron mayor's proposal to sell the city's sewer system to private investors and use the money to help high school graduates pay for college will lead to higher utility rates, critics said.

Mayor Don Plusquellic, in announcing the idea Thursday, said he wants to raise more than $100 million.

A group that represents wastewater agencies said that if the sale goes through, water bills will go up.

"If it's in private hands, they will come in and raise rates," said Susan Bruninga, spokesman for the National Association of Clean Water Agencies. "They not only have to respond to their customers - you and I - but to their shareholders. There's a profit motive there."

The idea breaks new ground for cities. Although similar plans exist around the country, Akron will have to work to make it a reality.

Akron's plan surprised about 200 managers of water and sewer systems at a conference in Phoenix that the national group sponsored over the last few days, Ms. Bruninga said.

Although several communities, including Indianapolis, Milwaukee, and Atlanta, have hired private companies to run water and sewer systems, managers at the conference could not think of any large municipalities that sold the systems or leased them outright.

Julius Ciaccia, manager of the regional sewer district covering Cleveland and 60 suburbs, said "there's no way" a private company could keep rates down, recoup its $100 million-plus investment, and make money.

"It's counterintuitive," he said. "It just can't happen."

Mr. Plusquellic said the plan is a concept. The sewer system is not officially for sale and he did not identify any interested buyer. But he said the plan could attract people to buy homes in Akron because of the long-term education benefit.

He wants profits from the sale to pay tuition and fees for residents to attend either the University of Akron or a trade school in Akron. Students would have to apply for other financial aid, which would be used before the city scholarships take effect.

Akron city schools graduate more than 1,500 students a year.
The plan would not allow students to use the scholarships at other state-supported schools or private colleges.

He said the concept is partly modeled after one in Michigan, the Kalamazoo Promise, in which high school graduates in that city get their college tuition and mandatory fees at a public college paid from a trust fund set up by philanthropists and local businesses.

Students must attend Kalamazoo Public Schools all four years of high school to qualify. Those students have 65 percent of their college tuition covered.

Unlike Akron's proposal, the Kalamazoo plan is not limited to colleges within Kalamazoo. Plan administrator Robert Jorth said about 65 percent of scholarship students attend Western Michigan University and the community college in Kalamazoo.

AKRON BEACON JOURNAL

Voice of the People
July 26, 2008

Leasing sewer system risks large costs

Petitions bearing 5,293 registered voter signatures were presented to the clerk of the Akron City Council to place a charter amendment on Akron's November ballot requiring a vote of the people before the lease, sale or transfer of any publicly owned Akron utility now or in the future.

Mayor Don Plusquellic's statement in reaction was, ''Voters need to know that the initiative petition filed is part of a scheme to try to kill our effort to provide scholarships for children of hard-working parents who are struggling to make a better life for their children.''

Hardly. Citizen's SOS (Save Our Sewer and Water) is made up of those hard-working parents.
Our ''scheme'' is to promote democracy, to put the decision-making power into the hands of the people and to educate those who aren't aware of the damage done in other cities when the public good was sacrificed for profit.

Just ask the people of Stockton, Calif., who suffered through four years of private ownership of their sewer and water system. Though Stockton has recently regained control, it has cost the city millions of dollars, and the city has received a system in disrepair.

Just ask the people in Atlanta who bought their system back for more than double what they sold it for after a terrible experience with privatization.

Ask the Ohio people in East Cleveland, Washington Court House and Richfield.
There are other ways to fund scholarships. But there is no better way to protect the public's interest than by keeping public utilities public. And there's no better way to make decisions about public utilities than by their owners deciding with a vote of the people.

Educating the public that loss of jobs, loss of control, loss of accountability, decrease in service, decrease in quality and increase in rates have been experienced by other communities that have privatized public utilities is in the interest of the common good.

Isn't that the mayoral pot calling the citizen kettle black?

Mary Nichols-Rhodes
Progressive Democrats of America, Ohio
Cuyahoga Falls