Tuesday, July 29, 2008

Back to the Sewer

As the mayor provides some details about his sewer lease / scholarship program.

But still not details on how to find a lessee willing to cough up $200 million to the city for the scholarships, deal with artificial rate caps, maintain jobs at AFSCME scale, and still make a profit.

Oh, and council wants the lessee to “fully fund” the scholarship program up front.

Seems like those should be poison pills enough for anyone, even AFSCME. If the lease is too encumbered with incentive killing conditions, there won’t be much of a market.

At which point we’ll be treated to endless lectures about the failures and evils of privatization.

Unless the marginal cost of maintaining and operating the system is extremely low. But if that was the case, there’s not much need for Akron to lease it out, now is there?