Pittsburgh privatization report
 

Liquidating our public water supply

In a recent phone interview, PA State Senator Jane Orie indicated that a “front burner” issue for her in the ongoing structural adjustment of Pittsburgh is the liquidation of the Pittsburgh Water and Sewer Authority (PWSA).  Just how and when this will happen is not entirely clear. However, Senator Orie and other mostly suburban state lawmakers want any state fiscal relief for Pittsburgh to be conditioned on the privatization of the PWSA.  Senator Orie expressed confidence that the Intergovernmental Cooperation Authority (ICA) a.k.a. “the oversight board” will recommend the sale of the PWSA in their final report.  This report was due to be made public in August, then in September and now maybe in October.

The ICA is authorized by the state legislature to “recommend” that the city privatize public entities as a condition for the city getting any new taxing authority from the state.  Should the ICA final report fail to recommend the sale of the PWSA, Senator Orie said that she and other state lawmakers will mandate the sale. 

Senator Orie said that the sale of the PWSA will make the city more competitive.  She also indicated that such a move was advocated some time ago by former Alcoa Chairman Paul O’Neil.  Alcoa, by the way, is exempt from paying the city business privilege tax. Some city residents suspect that massive tax exemptions to the city’s largest corporations, not a publicly owned water system, have contributed to the present city fiscal crisis.

Finding a buyer for the PWSA may not be as easy as Sen. Orie thinks, says State Senator Jim Ferlo.  He said that the need for massive repairs and upgrades in the city sewer system mandated by the federal Environmental Protection Agency might make buyers reluctant.  Regardless, Sen. Ferlo is calling for greater accountability from the PWSA board and management, but he remains strongly opposed to the liquidation of the authority.

Bye-Bye to city mechanics?

Late last year the City of Pittsburgh began negotiating with First Vehicle Services, a division of First America Inc. and a subsidiary of the UK-based multinational First Group, to take over city fleet maintenance. This year the Act 47 coordinators granted the union representing the present city mechanics permission to place a bid to keep their jobs.  On September 14, 2004, the Act 47 coordinators notified the mechanics that their bid was (surprise, surprise) rejected.

First Vehicle Services will now take over the city fleet maintenance.  What is unsure now is if any of the present city mechanics will be employed by First America.

Turning Pittsburgh into a commercial

The following legislation to sell all public space in our city for advertising space has begun to make its way through City Council. Bill # 2004-0461: “Resolution creating the Advertising & Marketing Opportunities Taskforce (AMOT) which shall investigate potential revenue generating opportunities for the City of Pittsburgh, including but not limited to, outdoor and indoor advertising on or in ALL city owned property (including Parks), street furniture, website, cable television, naming rights of property or facilities, leasing facilities for events or telecommunications equipment.”

Who wants to live in a commercial?

- Stephen Donahue