Genesee County Withdrawal Permit Approved

On August 28, 2009, the MDEQ approved Genesee County's request to withdraw upwards of 85 million gallons per day from Lake Huron.

With an approved water withdrawal permit in hand, Genesee County can proceed with its announced plans to construct a new pipeline and water treatment plant under the auspices of the newly-formed "Karegnondi Water Authority." Approval of the withdrawal permit, may also spell doom for DWSD's Flint Loop project, which is designed to extend the DWSD system into Genesee County.

Commentary: On the other hand, having a permit in hand gives Genesee County increased bargaining leverage should it be interested in resuming talks with DWSD over sharing the cost of the Flint Loop. It appears that those discussions were active until about March (as reported here), when Genesee County submitted its water withdrawal permit application.

Right now, it will be 3-5 years of subsurface investigation, design, and construction before Genesee County will see a single gallon of water. Meanwhile, DWSD's Flint Loop project is already to proceed -- the design is complete, and a construction management contract (CS-1492) is already in place. Moreover, DWSD already has water treatment plant (Lake Huron WTP), with a current capacity of 400 million gallons per day, that was designed for expansion, and can accommodate increased water demands in excess of 1 billion gallons per day with additional pumps.

Does Genesee County really think it will save money by spending an estimated $600 million on a separate pipeline, water treatment plant, and related water transmission and distribution infrastructure? Really?

DWSD Opposes Genesee County Water Plans

Genesee County's ambitious plan to build its own $600 million water system is encountering push back from the Detroit Water and Sewerage Department. No surprise.

In a June 29, 2009 letter (below), Interim-Director Pam Turner lays out DWSD's opposition to Genesee County's plan. Among the objections, DWSD contends Genesee County's proposal violates the evaluation criteria in the Great Lakes Compact, because it fails to address the availability of existing water supply systems (ie., the DWSD system).

In particular, DWSD has already undertaken plans to improve the supply of drinking water to Genesee County.

Both the Flint Loop and North Oakland Transmission projects were designed to increase supply and provide redundancy for Genesee County and the City of Flint. DWSD has already spent $28.6 million designing these two projects, and awarded a construction management contract. Theses projects are "shovel ready," but require the City of Flint to sign a new 30 year contract with DWSD, particularly in light of previously reported declines in water revenue. Removing the City of Flint from the calculation of water rates would increase water rates for the remaining ratepayers at least 6%, according to DWSD's estimate.

Its also appears that Genesee County's plans caught DWSD a bit flat-footed. Ms. Turner complains that when DWSD and Genesee County met on March 10, 2009 to discuss a cost-sharing plan, Genesee County failed to mention that it had already filed its application for a withdrawal permit a month earlier.

However, Genesee County Drain Commissioner, Jeff Wright, has not been secret about his plans for constructing a new water authority, as reported here. Mr. Wright's response to Pam Turner's 8-page letter was outlined in a July 6, 2009 article in the Flint Journal (here).

The MDEQ will receive public comments on Genesee County's withdrawal application until July 15, 2009, and then is expected to make a decision by August 22, 2009. Given DWSD's opposition, a delay in MDEQ's decision is likely.

Genesee County Applies for Lake Huron Water Permit

Despite recent talks between DWSD and Genesee County about sharing the cost of a future water system improvements, it does not appear that Genesee County has abandoned its interest in a separate water system, as discussed in an earlier posting.

Earlier this week, the Genesee County Drain Commission applied to the Michigan Department of Environmental Quality (MDEQ) to withdraw as much as 85 million gallons of water per day from Lake Huron.

"This (85 million gallon) volume would be adequate to meet the anticipated needs of Lapeer, Genesee and Sanilac counties and the city of Flint for the next several decades," said Jeff Wright, Genesee County's drain commissioner.

DWSD officials are downplaying this development, but it does call into question whether or not DWSD can or will proceed with a major expansion of its transmission capacity into Genesee County. The Flint Loop project, announced last year, would add miles to DWSD’s water transmission capacity northwards into Genesee County. However, decreased water demand has also led to lower water and sewer revenues.

[Update: There will be a 45 day public comment period, through July 15, 2009, on Genesee County's application. There is more information at the MDEQ's website. ]

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DWSD, Genesee County Discuss Sharing Cost of Water System Improvements

Reprinted with Permission from Michigan Construction News

Dragline - Editorial Comment & News Analysis
March 13, 2009
By Guy Snyder

Keeping Things Fair

Good drinking water at a reasonable price has been fundamental for civilization for thousands of years. Arguably water, sewage control, and roads were the underpinnings of the Roman Empire. Unfortunately for the Detroit Water & Sewerage Department there are signs its regional system is beginning to crumble. This week in Flint its representatives worked hard to patch things up but we suspect the numbers aren’t in their favor.

* * *

Drops in the Barrel

Meetings were held this week between Genesee County Drain Commissioner Jeff Wright and officials from the Detroit Water & Sewerage Department. They focused on the future of the county’s drinking water, as well as the city of Flint’s. There’s been considerable displeasure expressed about DW&SD water and sewage rates, especially for its outlying communities. If you recall, even Mr. Wright complained last fall about a then newly instituted 15% price hike.

This time around the DW&SD has come up with a deal. If Genesee County will pay part of the construction cost of additional water supply lines, it will be given “special status.” This would qualify it for a major price cut — possibly as much as 50% — for water.

Yesterday the drain commissioner’s office reported it was still crunching the deal’s numbers. Even if they add up to Genesee County’s favor today, we still think the DW&SD’s critics have been making valid arguments. In the long run it may well be in the county’s best interest to opt out and build a modern water supply system of its own.

In our November 18, 2008, Dragline, we discussed Mr. Wright partnering with John P. McCulloch, water resources commissioner for Oakland County, to create a regional water planning group called the Karegnondi Water Authority. Its mission has been to investigate another water system that would not also serve Genesee and Oakland counties, along with the city of Flint, but Macomb and Lapeer counties as well.

A consultant was hired last fall but not named. It still hasn’t been named. The mystery firm was supposed to have delivered a report a couple of months ago. But we haven’t seen it. Our latest research indicates a final draft is slated for release next week. Okay, we’ll look for it. Surprisingly, the Karengnondi Water Authority has yet to establish a web site. (Does it even have a staff?) Must be the final draft is to appear on Mr. Wright’s web site. Or would it be Mr. McCulloch’s?

Don’t you love governmental transparency?

Even so, back in November the general news media was broadcasting a project estimate of $350 million for the new water supply system. The comments came anonymously from the usual “government sources.” The figure was supposed to cover a water treatment plant, 60 miles of water transmission tunnel and main, and related support facilities. The system would be designed to draw as much as 150 million gallons per day.

Genesee County had already purchased a 230 acre site with a 700 foot long shoreline on Lake Huron, north of Fisher Road, in Sanilac County. The properly had formerly been owned by Detroit Edison.

This week no money has been mentioned about what Genesee County would pay for the DW&SD’s new water supply lines. Still, the cost of the entire proposed system has been pegged at $750 million. Presumably the county would have to pay for the portion that traverses Genesee County. It wouldn’t surprise us, though, if it turned out to be a capital investment close to the entire price of a new, independent system.

If it is, participation by Mr. Wright would require a deeper plunge into Genesee County’s pocket. That’s because the cost of the Karengnondi Water Authority system mentioned above would be split by a minimum of four counties. Perhaps even five ways, if the city of Flint is included.

The decision’s not up to us. But even without looking at the DW&SD’s “offer,” if we were the Genesee County Drain Commissioner we’d be strongly motivated to reject it.

The manner in which the deal’s being presented by the general news media arouses suspicion. What may seem a favorable break on water rates today could disappear after the new DW&SD water lines are finally in the ground. We also suspect Mr. Wright and the city of Flint will find greater respect for their concerns from the Karegnondi Water Authority than they currently do from the Detroit Board of Water Commissioners.

We mentioned last fall’s 15% increase. In late January of this year the water commissioners approved wholesale rate increases averaging 8.9% for water and 2.4% for sewage for its suburban customers, including Mr. Wright. The increases are to take effect on July 1^st if they win the approval of the Detroit City Council. The council was supposed to take them up yesterday but our deadline for this column closed before we could find out if it did.

In case you missed our explanation last fall, Karegnondi was the name the Petan Indians gave to Lake Huron. It was used in the first known comprehensive map of Michigan and its Great Lakes, drawn in 1656 by Nicholas Sanson, the royal geographer of France.

Michigan Construction News is published by Guy Snyder (Snytco, Inc.) every Tuesday and Friday, and provides news about upcoming construction projects, and an editorial called the "Dragline." A summary of each edition is also available to those who subscribe. Michigan Construction News is supported by advertisers and by "Friends of Michigan Construction News." I look forward to reading Guy Snyder's twice-weekly newsletter, and encourage you to read and support this valuable news resource. Click here for more information about becoming a supporter of Michigan Construction News. - Peter Cavanaugh

Genesee County Considering Alternatives to DWSD Water Supply

The Flint News reports today that Genesee County is still studying alternatives to buying water from the Detroit Water and Sewerage Department (DWSD), even as County officials continue negotiations on a possible new 30 year contract. The principal alternative would be the construction of a separate water treatment plant, which would include placing miles of new pipeline to Lake Huron.

"County Drain Commissioner Jeff Wright and a spokesman for the Detroit Water and Sewerage Department confirmed Friday they have been and will continue talking March 10 about renewing what's been an unhappy marriage -- even as the idea of water independence gets all the attention."

"A decision has to be made by August as far as I'm concerned," said Wright, who said there's at least a 50-50 chance the county will break from Detroit and build the water line at a cost of more than $300 million.

Genesee County is one of a number of counties which are studying alternatives to buying their drinking water from the City of Detroit. Meanwhile, DWSD is proceeding with plans to add capacity to its system. The Flint Loop and North Oakland Transmission System (NOTS), would add miles of additional water main and redundancy to DWSD's drinking water transmission system.

Water Demand Drops -- May Affect Rates, DWSD Construction Plans

The Detroit Free Press reported on November 30, 2008 that a drop in the demand for water among City and Suburban users may contribute to an increase and water and sewer rates by DWSD:

"Detroit officials are expected to raise water rates 6% to 10% and sewer rates by as much as 13% to 17% next month, according to some suburban leaders who have met with the department.

"The revenue dip was enough to prompt U.S. District Judge John Feikens to schedule a hearing for Tuesday [December 2, 2008] to hear how the water department and others in the region plan to deal with it.

* * *

"Feikens, who has ordered hundreds of millions of dollars in improvements to the sewerage side of the system to bring it into compliance with the Clean Water Act, said revenue is needed to fund those projects.

"If a revenue stream is affected by a certain percentage, there are rules in the Clean Water Act that say some projects may not be economically possible," Feikens said.

"It isn't yet clear whether the revenue picture is bad enough to consider such delays, Feikens said."

Comment: This article, and Judge Fekeins' comments, appear to be a reference to several ambitious, and expensive, water transmission projects announced earlier this year by DWSD, the North Oakland Transmission and Flint Loop projects, bids for which have already been delayed once, and could be delayed into 2009.