Wednesday, March 20, 2013

DWSD Challenges Savings Touted by Karegnondi Water Authority

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

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