Suffolk water authority to help manage new North Shore authority
The Suffolk County Water Authority on Wednesday said it reached an agreement to help manage the planned public takeover of the newly formed Water Authority of North Shore as the new entity seeks to split off from new owner, Liberty Utilities.
The two-year agreement, which took effect last week, puts Suffolk authority staff in key consulting posts to help manage the planned acquisition, including legal, financial, computer technology, human resources and other administrative functions. The Suffolk authority will be paid 5% of the new authority's annual budget appropriation, which is being paid by the state under a law passed earlier this year that created the new authority.
Liberty Utilities of Canada agreed to negotiate with entities such as the new authority in good faith as part of its agreement with New York state that paved the way for Liberty to purchase New York American Water for $608 million in January. The deal included three large Nassau service areas, including about 4,500 customers on the North Shore. The Massapequa Water District is also attempting to acquire the East Massapequa district from Liberty.
The agreement has the backing of the Suffolk water authority's board and the newly formed board of the North Shore authority, according to a Suffolk authority statement.
Bruce Kennedy, president of North Shore Concerned Citizens, which has long advocated for a public takeover of the district following years of complaints about New York American Water's service and prices, applauded the move.
"This is certainly a step in the right direction," he said. "A lot of dedicated people put many years into getting us this far and we fully support the members of the Water Authority of North Shore in getting this across the finish line."
The Suffolk County Water Authority has for years expressed an interest in taking a role as public officials and angry customers pushed for a public takeover of the former New York American Water districts in Nassau.
"We are going to advise them on how to proceed with this" potential public takeover, said Suffolk authority chairman Patrick Halpin. "We have expertise on how to value what those assets are worth."
He noted the agreement makes the Suffolk authority a third-party consultant, not an owner or operator of the new system. The authority under its governing statute is allowed to operate and provide water to the people of Suffolk, but that doesn't limit it from offering expertise as a third-party consultant, Halpin said.
The North Shore authority would be the "owners of the system and will be operating the system if they reach an agreement. We are simply providing consulting services because we're the largest public water supplier on Long Island and one of the best in the state and the nation."
Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.
