Nassau’s sewage plan stinks

To the Editor:

Nassau County Executive Edward Mangano is proposing to sell or lease three of the county’s sewage treatment plants (STP’s), including Cedar Creek, Bay Park and Glen Cove, to fill the county’s budget gap. Requests for proposals were issued on Feb. 16, 2010, seeking public/private partnerships to help fix the county’s fiscal woes. Morgan Stanley won that bid and was paid $24,750 (under $25,000 does not require Nassau Interim Finance Authority approval) to seek qualified bidders to purchase or lease our STP’s. The three viable entities found are:

1. Veolia (currently running our buses)

2. Severn Trent (currently managing the Glen Cove sewage treatment plant)

3. United Water.

In December, the Nassau County Legislature’s Rules Committee contracted to pay Morgan Stanley $100,000 per quarter to be its financial adviser and help choose an investor to purchase or lease our three STP’s. Morgan Stanley will get 1 percent of the monetary transaction, and no less than $5 million if a deal is consummated. Morgan Stanley stands to make a great deal of money if it cuts a deal, even if it is a bad deal for Nassau residents.

According to a 2007 survey by the International City/County Management Association, 52 percent of governments that had privatized essential services and then returned to municipal services said the primary reason was insufficient cost savings. Private companies are allowed to make a profit, while public systems cannot. Aqua customers know firsthand that privatization costs more money. We are paying almost three times more for our water than our neighbors who have public water. Meanwhile, Aqua is reaping record profits.

A monopoly owning our STP’s will be no different than a monopoly owning our water service. Sewage treatment and water service are necessities, so we’ll have no choice but to pay whatever the new, private company asks. Do we really want to have to worry about whether we can afford to flush our toilets? Under Mangano’s proposed public-private partnership, Nassau will lose its ability to protect the taxpayer.

Claudia Borecky

President, North Merrick-Central Merrick Community Civic Association