Guest Column

Marion Gilliland
Democrats got town into hot water with contract

Marion Gilliland
Democrats got town into hot water with contract

With reference to Mr. Bob Davis’ letter to the editor last week, he questions why Mr. David Barnhard would want to stay with the water contract we have now with U.S. Water rather than go with the new contract with American Water. He implies that Mr. Barnhard does not want to see a 15 percent reduction in his water bills, and he is trying to deflect attention away from the fact that the Republicans did nothing to reduce these bills while they were in the majority.

The Republicans began the water contract negotiations approximately three years ago, working with the Middlesex County Improvement Authority (MCIA) as an "agent" to obtain bids from water companies. The understanding was if the township was not satisfied, it would be able to terminate the negotiations. The MCIA chose Azurix, and the talks began.

Last year, Azurix was bought out by American Water, and the contract changed drastically. The contract cost went from $1.7 million to $2.8 million. The township of New Brunswick pulled out of the deal around January/February 2002, and North Brunswick was left alone to pick up all the expenses of attorneys’ fees, MCIA fees, etc. New Brunswick got out without splitting the cost. The new contract with American Water will refinance us back up to 20 years, when we were down to 14 years owed to U.S. Water. It cost approximately $33 million to get out of the contract with U.S. Water, and we will now be paying American Water a higher fee than was originally negotiated with the Republican Council and Azurix before it was bought out by American Water.

In a nutshell, the North Brunswick taxpayers will now be paying American Water for our water bills, U.S. Water for our sewer bills, and the MCIA for the next 20 years for management fees (although I do not know what they will be managing).

The township could have turned down this contract and renegotiated with U.S. Water for a rate reduction. U.S. Water had wanted to renegotiate when it learned about the new contract. It is a funny thing that U.S. Water was chosen by the county to keep the sewer portion of the water contract, and it trimmed the price by 15 percent. I am sure that could have been done with the water contract and kept the town at a 14-year payout rather than refinancing back up to 20 years. By the time you add everything up, where is the 15 percent?

Mr. Davis speaks of the Democrats passing the water contract now that they are in control of the council. He faults the Republicans for not doing the same. I applaud the Republicans for taking the time to understand the contract and not getting the township into another bad situation. If Mr. Davis recalls, it was the Matacera Democrats who put the township into the bad water contract to offset raising taxes during a campaign year. That decision cost the taxpayers double and triple water bills, and that is why the Republicans began new contract negotiations.

Most of the council members admitted they did not fully understand the new contract with American Water, yet they voted it in anyway? What does that have to do with civility as Mr. Davis mentions? Civility has nothing to do with passing another bad deal, but it may have something to do with the Democratic connection with the county of Middlesex and keeping the MCIA in business.

David Barnhard was correct in his statements to stay with U.S. Water and the 14 years we have left. We should renegotiate with U.S. Water rather than enter into a contract just to make the MCIA and county Democrats happy. Mr. Davis agrees with the four Democrats on the council, and he is running for council himself. Where does that leave the North Brunswick taxpayers if he should be elected? Another rubber stamp council? I certainly hope not!

Marion Gilliland is a resident of North Brunswick