Press

The issue of water privitization is in the news as is the situation in Emmaus. Read all about it by clicking on the links below.

Public Citizen's reports on the fight to take water privitization off the table in Emmaus.

On July 5, 2005, the Emmaus borough council voted to authorize its Water Committee to work with a consultant to draft an agreement of sale for the town's water and wastewater system. It has been proposed by some members of council that the money from the sale could go into lowering taxes. This would essentially be using the public assets as a high-interest credit card.

Read the rest of this story: http://www.citizen.org/cmep/Water/us/municipal/emmaus/

Emmaus Water and Sewer Systems 10-year Capital Improvement Plan

Download the Plan [ 532 kb]

Emmaus weighs bringing back water authority Independent agency is alternative to selling system, officials say.

As the annual mayor's conference takes place in Chicago, Public Citizen urges public support of water to be priority in the coming year.

June 13, 2005

Public Citizen, a national non-profit public interest organization, recently published a report, Waves of Regret: What Some Cities Have Learned and Other Cities Should Know About Water Privatization Fiascos in the United States, Public Citizen details the pitfalls of privatization in jurisdictions throughout the United States and its territories, including not only better-known examples such as Atlanta, Stockton, New Orleans and Puerto Rico, but in more than a dozen other cities from coast to coast. The report also analyzes national privatization trends, developments and policies in the context of corporate strategies and track records.

Download the report [282kb]

Emmaus council seeks water system input from residents Hearings will be held before deciding whether to sell it.

By Randy Kraft
Of The Morning Call

July 19, 2005

Copyright (c) 2005, The Morning Call

Emmaus residents concerned about the future of the borough's water system are encouraged to attend a public hearing at 7 p.m. Aug. 8.

It will be the first of multiple hearings before Borough Council makes a decision, council President Craig Neely told residents concerned about the system being sold.

The location of the first hearing is not set. It may be held in council's meeting room on the second floor of Emmaus Town Hall, but the room can accommodate only 75 people.

Neely said another possibility is the arts pavilion in Emmaus Community Park.

On July 5, council voted 3-2 to have its Water Committee develop a draft purchase agreement to sell the system.

But at Monday's council meeting, Neely said it was ''not even close'' to seeking bids to sell it. ''A vote is a long way off. A lot of work has to be done,'' he said.

Because of the complexity of the issue, he said council wants as much public input as possible so ''we decide as a community, not just a council, what we want to do.''

Ardath Rodale, board chairman of Rodale, Inc. of Emmaus, asked council if the issue can be put on a ballot as a public referendum.

Neely said deciding what to do with the water system may be the most important decision made by council.

It could keep the system. Or sell it to the Lehigh County Authority. Or sell it to the highest bidder — probably a private water company.

If Emmaus keeps the system, rates and taxes will increase substantially to keep it operating, Councilman Roger Whitcomb warned.

A study determined at least $7 million in improvements will be needed in the next 10 years.

''That really woke us all up,'' Whitcomb said. ''Selling the water system was the last thing on my mind. But it became apparent we have to do something drastic. Even doubling or tripling the rates will not pay for that kind of investment.''

Water rates in Emmaus are ''by far the lowest of any municipality's in the Lehigh Valley,'' said Whitcomb, who added they have not been raised in a long time.

''None of us on council are wedded to any one position,'' he said.

But Councilman Brent Labenberg charged: ''This council is looking for a big money grab.''

He said the asset purchase agreement to sell the system had been developed with Michael Klein, a Harrisburg lawyer being paid $300 an hour. Other council members said that was a sample agreement.

''That document has not been recommended by anyone,'' Whitcomb said.

Councilwoman Joyce Marin said the system should be sold to the Lehigh County Authority because it works for the public good, rather than to a private water company driven by profits.

She implored other council members to consider the authority as ''the right answer for us.''

Neely scolded Labenberg, Marin and Whitcomb for making political statements. ''There's plenty of time to debate this,'' he said.

Whitcomb took exception, saying unlike Marin and Labenberg, he did not take a position. ''I have an open mind on the subject,'' he said.

Emmaus trickles closer to sale of water system Lehigh County Authority or private firm could be owner.

By Randy Kraft
Of The Morning Call

July 6, 2005

Copyright (c) 2005, The Morning Call

The Emmaus water system flowed toward new ownership Tuesday when Borough Council voted 3-2 to develop a purchase agreement to sell it.

Voting in favor of selling were council members Craig Neely, Susan Schmidt and Lee Ann Gilbert. Voting against it were Joyce Marin and Brent Labenberg. Dennis Gouldy and Roger Whitcomb were absent.

After the vote, Labenberg expressed concern that council's action might generate overwhelming public opposition. Schmidt said council will have to educate residents about why selling is in their best interest. She also said council will have to vote on terms that will be developed by its Water Committee before the system is sold.

Schmidt said income from selling the system could be used to lower the property tax. But Labenberg warned that residents eventually will pay much higher rates — others called it rate shock — no matter who owns it. Officials said residents now may pay the lowest water rates in Pennsylvania. They have not increased since 1982.

The system serves nearly 5,000 properties. It might be sold to a private water company or the nonprofit Lehigh County Authority.

The Water Committee will be assisted by Michael Klein, a Harrisburg lawyer being paid $300 an hour by the borough for his expertise on water system sales.

Although Public Works Director Jeff Clapper said the Emmaus system is in good shape, Klein told council the borough faces spending more than $7 million to improve it over 10 years if it is not sold. He added: ''A major contamination problem could bankrupt your system.''

Private companies will be interested in buying the system because of its location, said Klein. It would give them ''a beachhead,'' with the potential to expand it into surrounding townships.

Calling the water system a highly valuable asset, Klein said: ''This is a very good time to sell. There is a lot of competition and a lot of interest.''

Borough Manager Bruce Fosselman said he has been talking with water companies.

Klein said some water companies have large customer bases across the state and charge all of them the same rates, so Emmaus residents would face less of a rate shock then if the borough charged them for improvements.

But Marin favored selling the system to the Lehigh County Authority if Emmaus no longer can afford it. She said rates are likely to be the highest if it is sold to a private company. Klein agreed an authority's rates usually are lower, because investors in private companies expect a return for their investment.

Neely hopes any sale will protect the livelihoods of workers. Fosselman said Emmaus has three full-time water and sewer employees.

Neely praised Klein's ''ability to provide us with objective guidance.'' But after Klein left, resident Lauren Kocis charged that the lawyer gave a biased presentation in favor of selling to a private company. ''He was very knowledgeable, but I also felt he was very one-sided.''

She said hundreds of towns across the country have had negative experiences when their water systems were sold to private companies. ''They did not have the rosy picture presented by Mr. Klein.''

Untapped Market: The Coming Wars for Water

By Tim Holt of
TomPaine.com

January 22, 2004

"We think there'll be world wars fought about water in the future." That would be a chilling pronouncement had it come from the head of a country. Instead, it is the prediction of an official with RWE/Thames Water, one of the three largest water companies in the world.

Copyright (c) 2005, Tompaine.com

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