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Mayor seeks privatization, citizens' group wants voter oversight
By Carl Chancellor
Beacon Journal staff writer
Published on Tuesday, Aug 19, 2008
Dueling amendments to Akron's charter will go before the voters this fall.
On Monday, city council met in special session and voted to place on the November ballot three proposed charter changes, including two proposals concerning the lease of the sewer system to generate scholarship money for Akron students.
One of the proposed sewer-related charter amendments, which is being pushed by Mayor Don Plusquellic, is a plan to lease the sewer system to a private corporation in order to generate at least $200 million that would be used to fund scholarships for Akron students to attend ''participating universities, colleges, technical and trade schools'' within the city.
The other proposed charter change, the result of a petition drive by a citizens' group, would require that any action to sell, lease or transfer a public utility, including the sewer system, be approved by the voters of Akron.
If the mayor had had his way, there would have been another three charter changes connected to his sewer/scholarship plan on the ballot.
During a contentious and often heated council session, members rejected a proposal by the mayor to have voters amend the charter to allow the sale, lease or transfer of the sewer system to a ''public entity'' in compliance with Ohio law.
In addition, the mayor withdrew two other proposals. One would have author
ized the director of public service to enter into an operating agreement for the sewer system if an ''opportunity exists to realize significant cost savings for taxpayers as determined by the city's director of finance.'' The second would have allowed voters to decide if more than 100 sewer department workers be retained on the city payroll if the sewer system is leased.
Council members Bruce Kilby and Michael Williams questioned Plusquellic's motives in introducing four separate charter changes related to his sewer lease plan.
''It is disheartening to see purposeful action like this meant to confuse the voters,'' Williams said.
Kilby sought but failed to allow council more time to consider the mayor's lease plan, which he said needed more specifics and greater protection for the city.
''An apartment owner has more lease protections than we have with the mayor's proposal,'' Kilby said.
However, both Kilby and Williams said they were pleased that their colleagues voted against the additional sewer-related proposed charter changes.
''Now it is up to the citizens to make up their minds,'' Williams said.
Citizens SOS crowd
That is exactly what nearly 75 members of Citizens to Save Our Sewers and Water (Citizens SOS) are seeking. They crowded council chambers Monday night. The grass roots organization collected 3,986 valid signatures on the initiative petition.
''This is a great victory . . . Council looked at what the mayor was proposing and voted it down. It's very refreshing to see them (council) show independence and be responsive to the citizens,'' said Warner Mendenhall, a community activist and SOS member.
Prior to the council meeting, SOS members and supporters rallied outside city hall urging that council place their initiative on the November ballot.
The city charter contains a provision stipulating that City Council must approve all initiatives before they go before voters.
The mayor also held a press conference earlier in the day to push his lease plan, which he called an investment in the city's future. Plusquellic touted the success of a similar scholarship plan in Kalamazoo, Mich., known as the Kalamazoo Promise.
He said the plan, which is roughly two years old, has already created 3,500 new jobs in the city of Kalamazoo.
Plusquellic said his sewer lease plan will likewise be an economic engine for Akron by providing a way for every qualified Akron high school graduate to attend the University of Akron or a trade or technical school in the city.
Those students would, following graduation, live and work in Akron and provide a ''sustainable, longterm benefit'' to students and the community.
While the specifics of the scholarship plan still are being finalized, Plusquellic stressed that money raised by the sewer lease will only be used for scholarships.
Controversial rule
One of the more controversial aspects of the plan is the requirement that a scholarship recipient live in Akron for 30 years after graduation to avoid repaying the scholarship.
''I don't think it is unreasonable for Akron taxpayers to expect a return on their investment,'' said Plusquellic.
The scholarship will carry a repayment clause if a recipient fails to live or work in Akron following graduation.
Another key provision of the lease plan is a rate cap of 3.9 percent annually on sewer rates. The mayor said the city has averaged a 4.1 percent annual increase on sewer rates for the last 30 years.
Plusquellic said his goal in sending additional charter change proposals to council was to address the various concerns that have been raised about his sewer lease plan.
Indians analogy
The mayor again defended his scholarship plan by comparing the sewer system to former Cleveland Indians pitcher CC Sabathia.
He said the Indians ''gave up CC,'' a valuable asset, ''because they expected to get something to help them rebuild in the future. It's a trade-off.''
Plusquellic said leasing the sewer is a way to help ensure Akron's future.
In addition, city council voted to place on the November ballot a proposed charter change that would remove the clerk of council position from civil service protections. The proposal was advanced by the mayor.
The same proposal, which was defeated by voters in 2006, would make the clerk of council answerable directly to the council rather than to the mayor.
Although the measure was passed, several council members were concerned that removing civil service protections from the clerk position would render the clerk less independent and would politicize the post.
Carl Chancellor can be reached at 330-996-3725 or cchancellor@thebeaconjournal.com.
Dueling amendments to Akron's charter will go before the voters this fall.
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