Springwells Water Plant Rehab Project (SP-563) Finally Out for Bids (UPDATED)

The Detroit Water and Sewerage Department today released bid documents for Contract SP-563, the long-awaited contract for upgrades to the Springwells Water Treatment Plant (WTP).   

Sealed bids will be received by DWSD on Tuesday, July 31, 2012* July 17, 2012 at the Water Board Building, 735 Randolph, Room 1510, Detroit, MI 48226. Click here for the Bid Advertisement.  Plans and Specs are available from DWSD. They're also on Dodge Reports (No. 200500879249.)

According to the Department's 2012-2016 Capital Improvement Program (CIP) budget, revised here in July, 2011, SP-563 is estimated to cost $121 million and take 4-5 years to complete. 

The Springwells Water Plant was originally authorized in 1924. When construction was completed in 1935, it was the largest self-contained water treatment plant in the world and added some 300 million gallons per day (MGD) to the Detroit system.

For more history of the Springwells WTP, click here, and here.

For more about DWSD Update, click here.

Update (5/22): The bid opening has been extended to July 3, 2012 at 2:00 p.m. per Bulletin 1.   

Update (5/31): The bid opening has been extended to July 12, 2012 at 2:00 p.m. per Bulletin 2.  The last day for questions is June 28, 2012. 

Update (6/12): The bid opening has now been extended to July 17, 2012 at 2:00 p.m. per Bulletin 3.  

Update (7/16): The bid opening has now been extended to July 31, 2012 at 2:00 p.m. per Bulletin 4. 

Rep. Kurt Heise to Discuss Recent DWSD Developments at Wayne State University

On Thursday, April 12, 2012 at 2:30 p.m., State Rep. Kurt Heise will be speaking at Wayne State University (WSU)  about recent developments with the Detroit Water and Sewerage Department.

Mr. Heise, who is State Representative for Michigan's 20th House District and an adjunct professor of civil and environmental engineering at WSU, will present "The Detroit Detroit Water and Sewerage Department (DWSD) -- the Political and Environmental Impact of a Utility in Transition." 

In October, 2010, Mr. Heise outlined a 6 point plan for creating a regional water and sewerage authority for Southeast Michigan.In January, 2011, Rep. Heise introduced H.B. 4112, which would create a regional water and sewer authority. To date, there has been no action taken on this bill.

This event is Water @ Wayne seminar and is free and open to the public.

Date:           April 12, 2012 

Time:          2:30 p.m.

Location:   Welcome Center Auditorium, 

                    42 W. Warren, Detroit, MI 48201

For more about DWSD Update, click here.

Detroit Water and Sewer Debt Downgraded by Moody's (UPDATED)

Earlier today, Moody's dropped the rating on Detroit's senior lien water and sewerage disposal debt to Baa1 from A1 and the rating on second lien debt to Baa2 from A2. The last major cut occurred in December, 2010, as we reported here.

Thomson Reuters reports (here) that Detroit's water and sewer systems could also be liable for some portion of an estimated $350 million the City of Detroit may have to pay after a termination of the city's interest rate swap agreements was triggered when Moody's last month cut the city's general obligation bond rating further into the junk category to B2.

Additional Resources:

• “Moody’s: Detroit Ratings On Review For Cut On Possible State Takeover,” Wall Street Journal, December 7, 2011 (subscription required)
• “Detroit on Review by Moody’s Will Pay $211 Million to Cut Swaps,”  Bloomberg Business Week, December 8, 2011 
• “Moody’s Puts Detroit GO, Water Debt on Negative Watch,” The Bond Buyer, December 8, 2011 
  

Update (6/14): Earlier today, Moody's cut the rating on DWSD’s water and sewage senior lien and second lien debt by one notch to Baa2 and Baa3, respectively.

For more about DWSD Update, click here.