Tuesday, May 15, 2012

LAREDO'S WATER RATES DOUBLE

John Galo dismantled one of the most cost effective city crews in the country as a Laredo City Councilman. What will he do next if he becomes a Webb County Commissioner ... 

 

The council hadn't voted but the plane ticket was already purchased. The vote turned out to be in the bag.
   Laredo's City Services Director was soon on a plane to New York to meet with United Water Supply, instructed by the city council to dismantle the Laredo Water Department, one of the country's finest water service crews. The department had earned a wide reputation for hard work, maintaining the state's most affordable water rates.
   City Services director at the time, Adrian Montemayor, said that the only other water department in the U.S. that could compete with Laredo's work ethic, efficiency, and value to the taxpayer was possibly Las Vegas.
   They were a mean South Texas crew of 200 hard workers back then in 2002, connecting more water lines per year than just about any American city, at a fraction of the cost.
   Before Galo started messing with the city's water crew, the water department was profitable, and operated with a $2.3 million surplus, according to newspaper reports. Galo led the charge to gut the department, tearing down a respected public institution that offered the most affordable water rates in the state.
   After dismantling the crew, the city council, led by then councilman John Galo, entered a five-year $47 million contract with United Water Systems, a New Jersey-based firm that is owned by the French water giant Suez Lyonnaise des Eaux.
    Water rates doubled for Laredo residents after United Water failed to deliver on its promises, and stood by as the city's water infrastructure deteriorated, all the while demanding more and more money from the city.
   Galo insisted to the public and the city council that contracting with United Water would save taxpayers money, and he hurled insults at the existing water department employees, accusing them of failing to perform adequately. But his statements were far from true.
   "The (city water crew) should not have to wait for us (council) to tell them to do better. To ask them Why not do it better?, and have them respond, Because nobody pushed us, is not a good answer," Galo said, also ludicrously alleging that the department did not know its own budget until the private companies came into town.
   "The utilities department has not been run terribly inefficient. But has it been run to its peak performance? No," Galo said in an interview with the Laredo Morning Times.

    THE DAMAGE IS DONE

The city council had to free itself from a contract that left its utility in shambles. Halfway through the contract, United bowed out, paying the city $3 million to be released and go on its way, leaving the city with the task of rebuilding what Galo broke.
    But the damage was done, and the Laredo was forced to raise taxes in the form of a multi-million dollar bond to pay for much-needed work that United Water failed to perform.
    If Galo would sell out the city's water, disrespect the hard work and reputation of an exemplary city crew, and effectively double water prices in one of the poorest cities in the United States, what can the public expect next?  The United Water boondogle attracted attention from Public Citizen, a nationally recognized watchdog group, as well as other watchdog groups committed to preserving the public's access to affordable water.
   "United Water fails again," wrote Public Citizen.
   The vote to contract with United Water was initiated by Galo, who ignored what should have been a red flag -- dramatic underbidding by United Water.
   He didn't recognize the error then, and he denies it today.
   He continues to assert that The City of Laredo benefited from the deal with United Water.
   It's your tax money. Vote for reform in 2012.
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