Sludge Watch ==> Stockton Calif - Judge Rules Water Privatization Improper

[Maureen Reilly]

News
Ruling has environmentalists declaring victory over Stockton water, sewage


By DAVID SIDERS
November 07, 2006
Record Staff Writer

STOCKTON - The city of Stockton illegally privatized its water and sewer 
operations and must retake control of its facilities within six months, a 
judge has ruled.

The city's failure to perform a required environmental review was 
"improper," San Joaquin County Superior Court Judge Elizabeth Humphreys said 
in a ruling that reached City Hall on Monday.

The ruling was a victory for environmentalists, who have sought to dismantle 
the $600 million contract between the city and water conglomerate OMI-Thames 
Water since the City Council approved it in 2003.

"I'm practically speechless," said Dale Stocking, chairman of the Sierra 
Club's Mother Lode Chapter. "This is a sweeping victory ... The city was 
wrong, and it's been proved."

It was unclear Monday how the city would respond to the ruling. Mayor Ed 
Chavez and Vice Mayor Gary Giovanetti said they were disappointed, and City 
Attorney Ren Nosky said the city could consider an appeal. The council has 
not yet decided what to do.

"It's kind of somber thing," Councilman Clem Lee said. "It has huge 
implications."

Humphreys' ruling rejected the city's long-standing claim that it was 
sufficient to review the environmental impact of each individual 
construction project OMI-Thames did, and that the city was not required to 
consider the overall impact of the contract itself.

The Concerned Citizens Coalition, Sierra Club and League of Women Voters of 
San Joaquin County — the groups that sued the city — disagreed. So did 
Attorney General Bill Lockyer, who filed a brief in support of the lawsuit 
last year. They claimed the contract allowed construction projects that 
could damage the environment.

In her ruling, Humphreys confirmed that opinion, finding there is 
substantial evidence that the 20-year deal between the city and OMI-Thames 
"will have significant environmental impacts."

Municipal Utilities Director Mark Madison said privatization has saved 
taxpayers millions of dollars and helped the city comply with state water 
pollution standards. He said OMI-Thames' environmental record is sound.

Environmentalists have said it is not. They have claimed the water and sewer 
utilities are poorly maintained and that sewer spills have damaged the 
environment.

However, the controversy surrounding the privatization deal has always been 
about more than the environment. Opponents said the way in which it was 
approved - it was signed 13 days before voters approved a measure that would 
have required a public vote on the water deal - was evidence of then-Mayor 
Gary Podesto's heavy-handed style.

It was "another example" of Podesto and then-City Manager Mark Lewis 
ignoring the law, Councilman Steve Bestolarides said Monday. He voted 
against the deal in 2003.

Podesto said he and other officials at the time were acting on a legal 
opinion they trusted. He said the contract has been a success for taxpayers 
and the environment and that the judge's ruling is "too bad for the city."

Rachel Hooper, an attorney for the plaintiffs, said water and sewer services 
are public health and environmental matters best served by government, not 
business.

"When you have a public entity running utilities like this, they are far 
more accountable to the public, the citizens, than a private company is," 
she said. "This is what this case is really about."

OMI-Thames said in a press release that the company is disappointed in the 
ruling but will continue to run the city's waterworks while the ruling is 
being reviewed.

A union official representing company employees could not be reached for 
comment late Monday. City officials said it is uncertain what effect the 
ruling might have on the company's employees. The ruling and any action it 
causes is unlikely to affect water delivery or sewage treatment, City 
Manager Gordon Palmer said. The city has provided that service before, he 
said.

Contact reporter David Siders at (209) 943-8580 or dsiders at recordnet.com. 
Visit his blog at www.recordnet.com/blogs

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