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Decision appealed PDF Print E-mail
Written by Administrator   
Wednesday, 01 April 2009 18:13

FOR IMMEDIATE RELEASE

APRIL 1, 2009

CONTACT: Algernon Ward (609) 396-3363

City water petitioners to kick off appeal process

TRENTON -

Algernon Ward, a Trenton Water Works protest committeeman, has announced that the petitioners committee is moving forward with an appeal of Judge Linda Feinberg’s March 17 decision.

The group has identified a document that was not disclosed to Judge Linda Feinberg before she ruled that the Trenton Water Works consisted of two separate systems, allowing the suburban system to be sold off without a public vote by referendum to New Jersey American Water Co. as required for other systems.

In court the petitioners relied on a certification from former Trenton Business Administrator William J. Guhl. He stated to the court that Trenton’s water utility was one system, serving residents in both the city and the surrounding townships. Mr. Guhl certified that the much more than 5 percent of the city’s population depended for service not only on the pipes within the city, but pipes and storage tanks outside the City limits to supply the required pressure to the consumers.

"The City’s witnesses and lawyers told the court that there were two separate systems, not one," said Mr. Ward. "They said to the court that the suburban part did not serve any users in Trenton, but they failed to show the judge what we learned to be the truth, contained in an engineering study which the City of Trenton and German-owned New Jersey American Water Co. provided to the State Board of Public Utilities."

That report, by Colorado-based engineering company MWH, plainly describes the Trenton water utility as a single system, and goes on for more than 80 pages describing the method and the cost to be incurred in separating the single system into two systems. It is clearly one system now, and the plaintiffs paid a lot of money to learn how, and at what cost, it could be divided into two.

The report referred to by Mr. Ward was filed by the City of Trenton and NJ American Water Co. as "Joint Petitioners" before the State BPU. It was part of Exhibit JP-13, (the other part being an earlier engineering report from 2000 that had been reviewed and updated by MWH). Judge Feinberg declined to consider the working knowledge of former Administrator Bill Guhl, despite her expressed respect for his ability, noting that he was not an engineer.

"However", said Mr. Ward, "looking at the absent MWH report from 2006, it squarely and plainly supports Mr. Guhl’s certification and clearly refutes the impression left by the plaintiffs’ attorneys. It is interesting to us that not one of the Plaintiffs’ engineers filed a certification contradicting Mr. Guhl’s certification."

At this time, unless the City can explain its failure to disclose the 2006 MWH report and how it supports the notion that there are two separate systems in place, the petitioners are committed to having this matter reconsidered by Judge Feinberg, in light of this clear and convincing report.

Failing that, the petitioners intend to appeal to the Appellate Division to protect the right of citizens to protest all ordinances, and especially those which purport to sell off major public assets. When the petitioners start the process this week, it will be with the aid of an engineer experienced in municipal water systems to make clear to the court the meaning of the engineering report that the City and New Jersey American Water Co. submitted to the BPU but not to Judge Feinberg.

Attachments:
FileDescriptionFile size
Download this file (MWHreport.PDF)MWH ReportCopy of report on Separation of Trenton Water Utiity into two systems commisioned by the City of Trenton4618 Kb
Last Updated on Sunday, 05 April 2009 13:08
 
Straight Talk with L.A. Parker March 12, 2009 PDF Print E-mail
Written by Administrator   
Saturday, 14 March 2009 14:33

On Thursday, March 12, 2009 Trentonian columnist L.A. Parker discussed the proposed sell off the part of the water system that lays outside of the city of Trenton.  His guests were Acting Business Administrator Dennis Gonzalez and Michael McGrath, leader of the petition committee trying to halt the sale.  You can listen to the segment by clicking here.

Last Updated on Saturday, 14 March 2009 15:04
 
Dollars and sense PDF Print E-mail
Written by Administrator   
Friday, 13 March 2009 08:31

If Trenton keeps the suburban portion of the utility: 

REVENUE FROM SUBURBAN PORTION :                          $25 million
REVENUE FROM CITY PORTION TO BE RETAINED:       + $17 million

CURRENT TRENTON WATER UTILITY REVENUE:             $42 million

If Trenton sells off the suburban portion of the utility:


REVENUE FROM WATER SOLD TO NJ AMERICAN:            $10 million*
REVENUE FROM CITY PORTION TO BE RETAINED:        +$17 million

REVENUE AFTER SALE OF SUBURBAN SYSTEM:               $27 million


$42 million - $27 million = $15 million less revenue

$15 million revenue - $4 million estimated savings** = $11 million less in revenues from remaining part (city only) of Trenton Water Works.

$11 million less revenue = no more surplus

$11 million less revenue = no more cash to keep your taxes low

$11 million less revenue = a probable water rate hike as the cost of operating and maintaining the remaining water system is spread over fewer customers.

Less customers = Higher cost per customer

*As part of the sale agreement, NJAW will contribute 60% of the cost of the upgrades to the TWW water treatment facility that is currently underway.

**Per Public Works Director Eric Jackson on 1/22/09, a cost analysis of the savings to be derived from not having to operate and maintain the outlaying water distribution system had not been completed even though the deal to sell of that part of the Trenton Water Works was presented to city council as done.  The administration has since been using the “ballpark” figure of  $4 million in annual savings from not having to maintain the parts of the system being sold off.

Last Updated on Tuesday, 06 April 2010 11:01
 
Newsflash 1 PDF Print E-mail
Tuesday, 10 March 2009 01:00

FOR IMMEDIATE RELEASE
CONTACT: Frank Weeden (609) 577-4769 or (609) 989-4772

CITY RESIDENTS KICK OFF “DON’T SELL THE COW” CAMPAIGN

City residents who seek to block the $80 million sale of Trenton Water Works infrastructure to New Jersey American Water Co. announced the start of their “Don’t Sell The Cow” campaign Tuesday, one day before petitioner Michael McGrath will meet with Mayor Doug Palmer to discuss the petition and the city’s perilous finances.

The “Don’t Sell The Cow” campaign will see petitioners and city residents renew their drive to defeat the Trenton Water Works sale in a special election later this year through more petitioning and an effort to inform the public about this shortsighted plan.

Mr. McGrath said he is pleased to see the city administration finally open up channels of communication with the petitioners as they ramp up their efforts to stop this deal, which will eliminate the Trenton Water Works’ perpetual ability to generate extra cash to keep taxes low and plug budget deficits. Lately city officials have refused to communicate with petitioners who said they plan on continuing the petition regardless of what happens at the meeting with the mayor, for the following reasons:

With current rates, the suburban system would generate $25.2 million a year or 60 percent of the utility’s $42 million projected in total annual revenue.  The deal seeks to replace that $25.2 million with a contract to sell water to New Jersey American Water worth only $9.6 million, eliminating the city's ability to take surplus cash from the utility to plug the budget and keep our taxes low.

With only $4 million or so in savings from the deal, as cited by Business Administrator Dennis Gonzalez, the post-sale utility will be left with a deficit of as much as $7 million, which will have to be realized through rate hikes hitting the wallets of Trenton taxpayers. 

Mr. Gonzalez has said the utility's total 2008 budget was $38 million, during a partial year of the higher rates.

The Trenton Water Works is the city's last remaining cash cow and selling it will do nothing to address the city’s underlying budget problems, according to petitioners who see the deal as a one-shot budget gimmick.

Selling the suburban system will put city taxpayers in an even worse position in 2010, when the city will face a similar budget shortfall to this year's $20 million without the use of extra water utility-generated cash to plug them. City officials admit they have no plan to address such an event.

The residents who want to stop the sale cannot support a plan that would have the city trade an asset that generates millions in extra cash every year for a one-time infusion of just $80 million that will be exhausted in less than 16 months, when Mayor Palmer may very well have left office.

To help with the petition campaign call Michael McGrath at (609) 462-7988.

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Last Updated on Tuesday, 10 March 2009 22:36
 
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