Earlier this morning, Judge Sean Cox entered an order concluding the EPA lawsuit and federal oversight of DWSD which began in 1977.
"The Court concludes that, after more than thirty-five years of federal oversight, the DWSD has achieved substantial compliance with its NPDES permit and the Clean Water Act. This Court shall therefore terminate the Second Amended Consent Judgment and close this case because the existing Administrative Consent Order is a sufficient mechanism to address any future issues regarding compliance with the DWSD's NPDES permit and the Clean Water Act."
With regard to the request made in the Director's March 15, 2013 Final Compliance Report, that the Court sanction the conversion of DWSD into an independent public authority, Judge Cox declined such a request, which his opinion indicates was unsolicited:
"This Court has no intention of ordering the creation of a regional authority and has no intention of ordering or approving the transfer of DWSD's assets to a regional authority. This Court lacks the authority to do so. Moreover, even if this Court had the authority to order what is not being proposed, the Court would not do so for multiple reasons."
Comment: I suspect that Judge Cox's ruling this morning caught many by surprise. If DWSD still plans to become an independent authority, it either needs to convince the new EM, Kevyn Orr, that this is a good idea or throw its support behind Kurt Heise's legislative approach.
(Note: If you write me (here),
I would be glad to e-mail you a full copy of Judge Cox's Opinion and Order. I'll try to get it posted later in the day, but no time now.)
Related press coverage:
For more about DWSD Update, click here.
Last night, the Flint City Council voted 7-1 to approve a resolution to buy its water from the Karegnondi Water Authority (KWA), rather than Detroit. Flint would buy up to 16 million gallons of raw water per day from the KWA, which took bids on February 26, 2013 to construct an intake pipeline. No contract has been awarded, and work has not started.
Under the new plan, Flint will be required to treat the raw water it buys from KWA, and also rely on the Flint River as back-up. In either case, Flint will have to rely on its existing water treatment plant to process the raw water it receives from KWA. In 2011, a Flint engineering firm (Rowe) estimated that Flint's water treatment plan needed $61 million in capital upgrades. Because Flint is still under the control of an Emergency Manager, state approval is required to sign a new water supply contract with KWA.
For previous posts about the Karegnondi Water Authority, its creation and history to date, click here.
For more about DWSD Update, click here.
On March 19, 2013, the Detroit Water and Sewerage Department took off the gloves publicly took issue with claims made by the Karegnondi Water Authority that joining the new authority would save money for communities like the City of Flint, which is weighing a decision to leave DWSD.
Citing a report prepared in February, 2013 by Tucker Young Jackson & Tull for the State of Michigan, DWSD asserts that the plan advanced by Genesee County and other members of the KWA "is rife with financial discrepancies and false assumptions." As an example, DWSD cites Tucker Young's analysis of estimated construction costs, which puts construction costs at $357 million(*), or more than $80 million higher than KWA's estimate of $274 million.
To read the entire report, entitled "City of Flint Water Supply Assessment Final Report," prepared by Tucker Young, click here.
Update (3/20): The Flint City Council is scheduled to meet later today at 5:30 p.m. to discuss a new 25 year contract with KWA.
Comment: DWSD's press release cites a construction cost figure of $374 million from the Tucker Young report, but I only saw $357 million when I read it. See page 15 here.
For more about DWSD Update, click here.
On March 13, 2013, the Board of Water Commissioners voted 6-0 to approve a resolution moving forward with the plan outlined by the Root Cause Committee's Final Report to convert DWSD into a regional water authority.
DWSD's Matt Schenk presented the plan to the Board of Water Commissioners, which discussed the plan and asked questions for nearly 2 hours before voting to approve it. Chairperson James Fausone said during his comments that inaction was not option under the circumstances and that the Water Board must pursue this dramatic course of action in order to protect DWSD, its customers, and bond holders.
Commissioner Bryan Williams abstained from voting due to his personal concerns about the plan, and a lack of time to study the details. From comments made by Williams and other during the meeting, it appears that Commissioners received the Root Cause Committee's March 13th report only a few hour(s) before meeting to approve the plan to convert DWSD into an independent Authority.
A vote on the the Root Cause Committee's plan was required so that Director Sue McCormick could incorporate the plan (or not) into the Director's Final Compliance Report, which was to be filed with U.S. District Judge Sean Cox by March 15, 2013.
The plan to convert DWSD into an independent authority is subject to approval by U.S. District Judge Sean Cox, who has scheduled a Status Conference on March 21, 2013 at 10:00 a.m. The plan must also pass muster with Emergency Manager Kevyn Orr, who was appointed March 14th Governor Snyder. Its too soon to know whether the EM will support or oppose the plan.
For more about DWSD Update, click here.
On March 10, 2013, the Detroit Free Press reported (here) on a proposal advanced by the Root Cause Committee to convert the Detroit Water and Sewerage Department into a regional water authority.
Under the Committee's proposal, outlined in a slide presentation dubbed "Proposal to Control Our Own Destiny," the City of Detroit would retain ownership of a reversion interest in DWSD, but a new regional authority would provide water and sewerage services independent of city bureaucracy. The new authority would pay the City $35 to $50 million per year. The Committee's proposal would proceed through the courts, and require the consent of all of the parties to the case pending before Judge Sean Cox.
In contrast to the Root Cause Committee's proposal that would be approved by a U.S. District Court, Rep. Kurt Heise in January, proposed legislation that would create a regional water authority. To date, Rep. Heise's bill has not gained traction in the legislature.
The Board of Water Commissioners has scheduled a Special Meeting on Wednesday, March 13, 2013 at 2:00 p.m. The Agenda is expected to includes consideration of a report by the Root Cause Committee's proposal, among other pressing matters.
Comment: The calls for a regional water authority to replace DWSD are not new. But with the Governor's March 1st declaration of a financial emergency, and the appointment of an Emergency Financial Manager for the City of Detroit appearing imminent, a little more than days away, the time for a regional water authority may have arrived. But is it better to create such an authority through the courts, albeit by the consent of the parties to the litigation, or through the legislature? What do you think?
Update (3/13): The Board of Water Commissioners today voted 6-0 to approve a resolution moving forward with the plan outlined by the Root Cause Committee's Final Report to convert DWSD into a regional water authority. DWSD's Matt Schenk presented the plan to the Water Board, which discussed the plan and asked questions for 2 hours before voting to approve it. Commissioner Williams abstained from voting due to his personal concerns about the plan, and a lack of time to study the details. From comments made during the meeting, it appears that Commissioners received the Root Cause Committee's March 13th report only a few hour(s) before meeting to approve the plan to convert DWSD into an independent Authority. Approval was also needed so that Director Sue McCormick could incorporate the plan into her Final Compliance Report, which is due to be submitted to U.S. District Judge Sean Cox by March 15, 2013.
For more about DWSD Update, click here.
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