Council Moves for PMUA Reform, Dissolution Study

Controversy over the Plainfield Municipal Utilities Authority raged for nearly two hours at Monday’s City Council meeting before the governing body approved, in 4-3 votes, resolutions calling for drastic rate reductions, rescinding of a $1 million settlement and a study on whether the authority should be dissolved.

Opposition to the PMUA began after large rate increases in 2009 and increased after a watchdog group formed and uncovered excessive costs for travel and business lunches. More recently, commissioners declined to meet with the governing body, leading to formation of a council-appointed task force to look into the PMUA’s operations. At a March 19 meeting, the task force recommended reform or possible dissolution of the authority.

The $1 million settlement with departing executives Eric Watson and David Ervin, arranged by two new commissioners outside ongoing arbitration, is under scrutiny from state officials after some residents complained to Gov. Chris Christie.

PMUA employees and officials crowded the courtroom Monday as the meeting convened. In public comment, PMUA attorney Leslie London refuted various points in the task force report and urged the council to drop the proposed dissolution study in favor of “meaningful discussions” on changes to the agreement between the city and the authority.

“Dissolution is not the answer,” London said.

Councilman Cory Storch, who supports the proposed study, expressed surprise at London’s mention of possible revisions to the Interlocal Services Agreement, which dates back to 1995.

“It’s the first time I heard that,” he said.

Storch said the resolution was not for immediate dissolution, but to hire “professionals who are really going to get to the facts.” The findings will have to be reviewed by the state Local Finance Board, which may or may not allow dissolution of the authority.

Other speakers asked the council to save PMUA workers’ jobs, but resident Roni Taylor told the council, “You were elected to represent the ratepayers.”

Council members split over similar issues, with William Reid, Vera Greaves and Bridget Rivers favoring preservation and reform of the authority, while Council President Adrian Mapp, Storch, Annie McWilliams and Rebecca Williams voted “yes” on the study for possible dissolution. The latter four also voted for asking PMUA commissioners to rescind the $1 million settlement, although acting Corporation Counsel David Minchello said the commissioners were not bound by the request. They also voted “yes” to ask the PMUA commissioners to drastically reduce rates.

Among counter-arguments, speakers suggested overturning the settlement would only lead to costly lawsuits and said the council, administration and PMUA officials needed to work out the issues without hiring experts for a study.

Storch said he was “looking for hope for the PMUA to reform itself,” and said he thought he found it in interim director Duane Young. To the employees, he said, “Your worst enemies are your PMUA commissioners.”

He assured workers that their jobs were valued.

“The amount of work is not going away and it can’t be outsourced overseas,” he said. “We need you.”

If solid waste and sewer services provided by the PMUA come back under city control, residents might be able to take a property tax reduction, said resident Dottie Gutenkauf, who also praised the employees. Gutenkauf said the criticism she has heard was not for workers, but a “top-heavy” and “somewhat out of control” administration.

Gutenkauf also faulted the “around the corner, back door settlement” saying she had never seen a situation where a couple of executives went outside arbitration to settle.

To launch the dissolution study, the council amended the May temporary budget in another 4-3 vote to add $50,000 to the council’s “other expense” line. The city will be seeking a qualified firm to conduct the study.

--Bernice