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Credit Pacific Service Union The Newark City Council took a step toward rescinding Mayor Sharpe James' plan to create a nonprofit agency to merge and then run the city's watershed and water utility operation after a marathon meeting last night and despite a personal appeal from the mayor to go forward with the plan.

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Credit First Service Union The council voted 5-4 to introduce an ordinance at its next meeting to rescind the approval voted on in March and any amendments.

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Card Credit Mobile Service Councilwoman Bessie Walker sponsored the ordinance and she, along with council members Donald Tucker, Hector Corchado, Luis Quintana and Gayle Chaneyfield Jenkins, voted for the ordinance. Mamie Bridgeforth, Augusto Amador, Donald Bradley and Charlie Bell voted against the ordinance.

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Card Credit Discover Service "Repeal all of it," Walker said in introducing the ordinance. "I'm sponsoring to repeal everything."

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Credit Public Service Union James walked up to the council conference room with his bodyguard yesterday afternoon and stayed in executive session with the council for more than two hours discussing the plan.

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Card Credit Processing Service Council members later said that James tried to sell the plan by saying it would keep Newark out of fiscal crisis and avoid the possibility of police and fire department layoffs and a cut in services.

Center Credit Service Union Council members compared yesterday's meeting to another long meeting last year at which James persuaded the council to approve a new lease with the Port Authority of New York and New Jersey for Newark Liberty International Airport that was supposed to provide money for a downtown sports arena, the budget and tax relief.

Card Credit Service Wireless Residents in attendance yesterday to speak out against what James has termed the "water optimization" plan were angry that the meeting started four hours late but were pleased with the council's action and applauded after the vote.

Credit Security Service Union During a series of public hearings over the past several months, residents have expressed strong opposition to the plan.

Credit Report Service "The discussion is happening," said resident Terri Suess. "This is a major step."

Blogspot Com Christian It was also only an initial step in a process that will require two more council votes to finally rescind the council's 5-3 decision in March to approve a version of the "Water Optimization" plan.

Christian Counseling Credit Chaneyfield Jenkins, who voted for the plan in March, was the only person to change her vote. She said comments that she receives from residents between now and the next council meeting will decide her ultimate vote.

Credit Federal Service Union "I want to hear from the silent majority," Chaneyfield Jenkins said. "This could be a good plan to help the people of Newark."

Credit Monitoring Service Under the mayor's plan, the Newark Watershed and Development Corp., which oversees watershed land in Morris, Sussex and Passaic counties, would reorganize as the Newark Infrastructure Management Corp., or NiMac.

Credit Division Service The new corporation would run the watershed and water and sewer utilities, which have a combined 225 employees and a $79 million budget, under a 40-year lease. The new agency would float $129 million in bonds for operating expenses and bond repayment and provide the city with a $90 million concession fee over three years and take on $70 million in water and sewer debt from the city.

Card Credit Online Service Water rates would increase 6 percent and sewer rates would rise 10.75 percent in the first year and 3 percent or more in each of the following years of the contract, depending on the amount of money required to pay the new agency's debts.

Consumer Counseling Credit Inc An additional $75 million payment to the city is also possible if certain conditions are met under amendments to the plan.

Card Credit Fleet Service In order for the city to receive the additional $75 million, a $2 million surplus must be maintained in two subsequent fiscal years following the contract; a financial consultant and engineer must certify that the payment will not interfere with the completion of capital projects or necessary repairs; and NiMac must remain "affordable and competitive." Using conservative estimates, the city could pay more than $260 million in principal and interest on the bonds.

Card Consolidation Credit Public Citizen's Water for All Campaign, a Washington, D.C., consumer advocacy group, reviewed the plan and criticized the deal, saying the city will end up in debt for a "quick financial fix," and will lose control of its watershed and water rates.

Credit Free Online Report Council members last night called for James to take his plan to the public to explain why it is necessary and also called for a thorough investigation of the city-run water department and the Newark Watershed and Development Corp.

Credit Federal First Service "The administration must inform the community ... why this optimization plan has been recommended," Bridgeforth said.

Consumer Credit Service "I've said to the administration: 'If this plan is a jewel, put it up for the people to see," Walker said.

Center Credit Family Service James has said that the plan is a way to bring new revenue to the city while improving the operation of the water system. The mayor has championed the plan for more than two years and used his other job as state senator to pass enabling legislation that allowed the plan to go forward.

Credit Reporting Service Tucker said that the council has received no official notification, financial audit or certification from the administration about an impending financial crisis. The city has yet to approve its 2003 budget.

Cca Credit Division Service By Jeffery C. Mays
Star-Ledger - 9/4/2003

Topic: Highlands

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