Former Oakland County WRC Appointed to Lead Huron-Clinton Metroparks

Former Oakland County Water Resources Commissioner, John P. McCulloch has been appointed Director of the Huron-Clinton Metroparks.  McCulloch, who lost his bid for a another term as Oakland County WRC in November to James Nash, was appointed lead the Huron-Clinton Metroparks on December 13, 2012.  Nash took office on January 2, 2013.

In a December 18, 2012 Special Newsletter, Mr. McCulloch, a frequent critic of DWSD, reflected on his tenure as Water Resources Commissioner for Oakland County, including his role in shaping the future direction of the Department: 

During my 12-year tenure, the Oakland County Water Resources Commissioner’s Office has been at the vanguard in reducing costs, placing a premium on customer service and initiating innovative programs that have provided taxpayers with the “most bang for their buck.” Before departing, I’d like to mention a few of the major achievements of which I am most proud. 

The 35-year-old lawsuit filed by my predecessor, George W. Kuhn, to force the Detroit Water and Sewerage Department (DWSD) to comply with the Federal Clean Water Act became my fight. 

I led the effort to revamp the Detroit Water Board and how it operates by insisting on a greater voice at the table for Oakland, Wayne and Macomb Counties in the decision-making process. My office also successfully fought the City of Detroit’s lawsuit to end Federal Court oversight of the DWSD. 

I am encouraged about the future of the DWSD because of a comprehensive report which calls for a wholesale reorganization of the department. It gives me hope that years of bloated bureaucracy and mismanagement at the DWSD are finally nearing an end. But despite the encouraging signs of progress, there is still much work left to do. One thing I strongly recommend is that a second opinion be sought before any drastic cuts or changes are made to the DWSD operation. In addition, it would be a good idea to search out other entities nationwide which have been successful in transforming their water/wastewater systems into well-managed, cost-effective and efficient operations. 

As the DWSD moves forward, my hope is that it will make a good faith effort to reassess how it does business and provides services. The reality is that the water and sewer industry is rapidly changing. That means we need to improve the operating process to reduce costs by instituting new water technologies, as Oakland County has sought to achieve with its innovative H2Opportunities program. The fact is our underground infrastructure is aging and decaying, making innovative methods to streamline current practices absolutely essential.

Click here for the full text of Mr. McCulloch's final message, which also addresses his accomplishments with the Oakland County WRC, his principal charge.

For more about DWSD Update, click here. 

City of Detroit Petitions Federal Court to End Decades-Long Oversight of DWSD

On July 25, 2011, the City of Detroit petitioned U.S. District Judge Sean Cox to dismiss the federal lawsuit originally filed in 1977 by the U.S. Environmental Protection Agency to remedy violations of the Clean Water Act by the Detroit Water and Sewerage Department.

For the past 34 years, the federal court (Judge John Feikens) has overseen the City of Detroit Water and Sewerage Department (DWSD) and enforced a series of consent judgments designed to bring the Department's waste water treatment plant (WWTP) into compliance with its NPDES discharge permit. 

On July 21, 2011, DWSD and the Michigan Department of Environmental Quality (DEQ) entered into an Administrative Consent Order, which is designed to supersede the Second Amended Consent Judgment entered by the federal court in August, 2000.

In its July 25, 2011 Motion to Dismiss and for Relief from Second Amended Consent Judgment, the City of Detroit requests that Judge Cox dismiss with prejudice the 1977 lawsuit because the Administrative Consent Order will serve the same purpose as the Second Amended Consent Judgment and the DEQ will provide for more appropriate oversight and enforcement: 

"[The Administrative Consent Order] provides a more comprehensive and current structure for addressing the compliance issues that DWSD is facing and for ensuring DWSD's long-term compliance. While the DWSD has made substantial progress under the [Second Amended Consent Judgment], ultimately the SACJ was not sufficient to sustain long-term compliance. The ACO will take DWSD through to full compliance."

No hearing date has been set for the City's motion.

Comment: The City's motion to dismiss the 1977 federal case should not come as a surprise. The City has sought for years to end federal oversight of DWSD. But it took the retirement of Judge Feikens to clear a path to the end of the case.  Shortly after Judge Cox took over the case in November, 2010, he signaled a desire to end the decades-long oversight of DWSD. In February, 2011, Judge Cox disbanded the advisory groups that had grown up around the case. Public opinion favored ending federal oversight.

As part of Mayor Bing's breakthrough agreement with Wayne, Oakland and Macomb Counties, and the February 11, 2011 Stipulated Order that led to a more autonomous Board of Water Commissioners, the Court allowed for any party to seek dismissal of the case upon a showing of substantial compliance with the Second Amended Consent Judgment. 

The City's pending motion represents that DWSD has achieved substantial compliance with the federal consent judgment and that the new Administrative Consent Order with the Michigan DEQ will see it through to full compliance. Time will tell, but now is the time to end 34 years of federal supervision. 

Resources:

• City of Detroit's (DWSD) Motion to Dismiss and for Relief from Second Amended Consent Judgment - 07-25-2011 
• Exhibit A - Administrative Consent Order with MDEQ - 07-22-2011  

For more about DWSD Update, click here.

Judge John Feikens Dies, Oversaw DWSD for 33 Years

U.S. District Judge John Feikens died May 15, 2011. He was 93 years old. Judge Feikens oversaw the Detroit Water and Sewerage Department for 33 years until stepping aside last November. Details of his death and funeral are not known. 

Update: The State Bar of Michigan blog published an In Memoriam (here).

DWSD Management, Judicial Oversight Teams Shuffled

In the past several weeks, Mayor Dave Bing has taken steps to fill major gaps in DWSD's Management Team, and U. S. Judge Sean Cox has taken steps to clear away some of the supporting elements crafted by his 93 year old predecessor.  

Judicial Oversight

In his first official moves since taking over control of the 33 year old federal lawsuit involving the Detroit Water and Sewerage Department, U. S. District Judge Sean Cox last week issued orders disbanding and discharging an advisory panel and special master appointed by Judge Feikens. 

The Southeast Michigan Consortium for Water Quality was an advisory panel  of regional business leaders and stakeholders formed in 2001 by the Court to provide a forum for discussing and resolving problems between DWSD and its suburban customers. The Consortium was led by Timothy O'Brien, an attorney and an executive with Ford Motor Co.  Judge Feikens clarified the role of the Consortium in a 2003 Order. It was that Order that Judge Cox recently vacated.

Thomas Lewand was appointed in 2002 as Special Master by Judge Feikens. His role was detailed in a December 8, 2008 Crain's Detroit Business profile (here). Judge Cox also vacated the order appointing Thomas Lewand. It is unclear whether Judge Cox intends to replace Mr. Lewand. 

There were reports last week that Judge Cox was meeting privately with stakeholders, such as Macomb County Public Works Commissioner Anthony V. Marrocco, but no details have been disclosed.

In the coming months, Judge Cox will have to grapple with Oakland County's motion to appoint an Interim Regional Committee to Operate DWSD.  This motion, and Rep. Kurt Heise's proposed legislation to create a regional water authority, both threaten to reignite a long-simmering dispute between the City of Detroit and its suburban customers over water, water rates, and control over DWSD.  

Executive Management Team

Meanwhile, with much less fanfare, Mayor Bing has been quietly filling in most of the gaps in DWSD's  Executive Management Team naming three (3) Assistant Directors in the past month.  All three have extensive experience.   

• A. B. Davis, Jr., P.E. - Assistant Director of Asset Maintenance.  Mr. Davis  is  registered professional engineer with 37 years of experience. He has worked for DWSD for more than 31 years, and formerly served as Assistant Director Facilities and Materials Management Operations. (Welcome back, A.B.!)
• James George - Assistant Director Financial Services Group. Mr. George was Assistant Director - Financial Services and Financial Manager with DWSD from 1987 to 2005. He served a stint with Wayne County before returning to DWSD.
• Rodney Johnson - Assistant Director of Commercial Operations and Public Affairs. Mr. Johnson has worked for DWSD since 1981. He has a B.S. from Wayne State University (MIS) and an MBA from the University of Phoenix. 

Despite these appointments, and the progress they represent, Mayor Bing has yet to find a new Director to replace Pamela Turner, who retired last July.

 

Judge John Feikens Steps Down, Oversaw DWSD for 33 Years

More than 33 years after he became known as the "Sludge Judge," Judge John Feikens has passed the title. Nearing his 93rd birthday, and reportedly in ill health, Judge John Feikens has turned over control of the case and consent decree involving the Detroit Water and Sewerage Department. 

The 1977 case, originally filed by the EPA, has been randomly assigned to Judge Sean Cox, a man nearly 40 years his junior. A simple Notice of Reassignment was entered by the Court on November 24, 2010, and a 33 year assignment ended quietly. Judge Feikens has served as a U.S. District Court Judge for more than 40 years.   

Commentary:  Judge Feikens' departure adds to a growing leadership void at a utility that provides water and sewerage services to over 4 million residents in Southeast Michigan. While not involved in the daily operations of the Department, Judge Feikens' has played a key stabilizing role over the past 33 years. Director Pamela Turner retired in July. Her position has yet to be filled. Assistant Directors George Ellenwood and Woodrow McCarty have also retired recently. Neither have been replaced. In fact, there are currently three (3) Assistant Director positions vacant on the DWSD Executive Team.  Mayor Bing's COO, Robert Buckler, who was tasked with oversight of DWSD, abruptly retired in early October, 2010. 

At a time when there are renewed calls for a regional water and sewer authority, the Department continues to struggle with compliance issues, and the dark clouds of a 5 year federal investigation continue to loom over the Department, DWSD desperately needs strong leadership. Deputy Director Darryl Latimer, is a very capable administrator, but he cannot be expected to deal with the multitude of issues facing DWSD by himself. Leadership starts with the Mayor. And Mayor Bing must recognize that he has a very serious problem that isn't going to be solved by appointing a new Director or allowing DWSD to limp along. Major change is required.

Oh, and one more thing, within 2 months, DWSD is expected to propose another round of rate increases. Get ready for more public outrage over rates.

Oakland Macomb Interceptor -- Court Orders Repair Schedule for OMI

Earlier today, the U.S. District Court (Judge John Feikens) entered an "Order Establishing Compliance Schedule for Interceptor Repairs," which establishes a schedule for upcoming repairs to the Oakland Macomb Interceptor (OMI). The Court entered this order following a request by Macomb County that a repair schedule be set by the Court. Ownership of the OMI is scheduled to pass from the City of Detroit (DWSD) to Oakland and Macomb Counties shortly.

The Court's June 30, 2009 Order sets an 8 year repair schedule, which is much longer than the 5 year schedule outlined at the June 10, 2009 public hearing on the OMI project. Its unclear why an 3 extra years was tacked onto the schedule when significant portions of the 21 mile long sewer are severely deteriorated and reportedly in danger of collapse.

Detroit City Council Approves Rate Increase, Reluctantly

Just 2 days after it rejected an increase in rates, the Detroit City Council earlier today voted today 4-3 to approve an 8% hike in water and sewer rates. Monica Conyers, who voted against the increase on Tuesday, was absent for today's vote. Reports the Detroit News --

The Detroit City Council today passed a water rate increase, averting a potential move by a U.S. District judge to unilaterally set higher rates for 4 million customers in 126 communities.

Customers are set to see bills go up about 8 percent, an amount Detroit Water Department officials say is needed to bolster declining revenues and counter surging interest rates on money the system has borrowed for capital improvements.

The measure passed in a 4-3 vote this afternoon. Members JoAnn Watson, Kwame Kenyatta and Brenda Jones continued their stance on not supporting the proposal that hurts city residents who are facing substantial financial issues. Monica Conyers, who voted against the measure Tuesday, was absent, as was Martha Reeves.

For the complete story, click here.

Water, Sewer Rate Increase Rejected by City Council

Earlier today, Detroit City Council rejected the 2009-2010 rate increases proposed by the Detroit Water and Sewerage Department. In March, DWSD proposed 5.1% water and 15.8% sewer rate increases for Detroit residents. Suburban customers would see wholesale increases of 8.9% for water and 2.4% for sewer rates.

One alternative for DWSD would be to request the U.S. District Court to order a rate increase. Judge John Feikens, who has had superintending control over the Department since 1977, has previously allowed DWSD to by-pass the Detroit City Council on such matters as approval of contracts.

Oakland Macomb Interceptor Drain - Macomb County Petitions Court to Order a Repair Schedule

On June 12, 2009, Macomb County filed a motion in U.S. District Court requesting that Judge John Feikens enter an order that would establish a schedule for the repairs to the Oakland Macomb Interceptor (OMI) Drain. The details of this project were reported in an earlier post.

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[Note: While a construction compliance order will make it easier for Macomb and Oakland Counties to secure State Revolving Fund (SRF) funding, it suggests that Judge John Feikens' 32 year oversight of the Detroit Water and Sewerage Department will not only continue, but expand northward into Oakland and Macomb Counties. Is this sort of thing a good idea? ]

Settlement Agreement with Suburbs Ratified

On May 12, 2009, at a Status Conference with Judge Feikens, representatives of Wayne, Oakland and Macomb Counties, and the City of Detroit submitted executed copies of the Settlement Agreement, which was tentatively reached in December, 2008.

Judge Feikens, who is 91 years old, thanked the attorneys who have been involved in the decades-old litigation, and declared that resolution of the long-running dispute between the City and Suburbs signaled a new chapter in regional cooperation relative to water and wastewater matters.

This matter was also reported here by the Detroit Free Press.

Court Approves $1 Million Extension for Oversight Contract of Detroit Water and Sewerage Department

On February 24, 2009, U.S. District Judge John Feikens approved a one-year extension of Infrastructure Management Group's contract with the Detroit Water and Sewerage Department. The contract is for a not to exceed (NTE) amount of $1 million and includes a 10% reduction in the hourly fees IMG charges the Department. Among its services, IMG is charged with reviewing all DWSD contracts in excess of $500,000.

IMG was originally hired in November, 2002 at the direction of Judge John Feikens, who has had superintending control over the Department since 1977.

Order Approving IMG Contract (Feb 24, 2009)

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DWSD Board of Water Commissioners Approves Proposed Settlement

On January 28, 2009, the DWSD Board of Water Commissioners voted unanimously to approve a landmark settlement (reported here) with its suburban customers. The agreement must also be ratified by Detroit City Council, where questions about the sale of the Oakland-Macomb Interceptor (OMI) are likely to be raised. Wayne, Oakland and Macomb Counties also must ratify the agreement. Attorneys representing these counties reportedly told the Court at a hearing in December that they would recommend the terms of the settlement to their respective clients.

City of Detroit, Suburbs Reach Accord Regarding DWSD

The long-simmering dispute between the City of Detroit's Water and Sewerage Department (DWSD) and its Suburban customers reportedly was resolved on December 18, 2008 in a hearing in U.S. District Court before Judge John Feikens. An outline of the settlement was reported earlier by Crain's Detroit Business here, and by the Detroit Free Press here.

The terms of the accord are laid out in a 50 page Settlement Agreement (below) that was presented to the Court, and will be accepted unless someone comes forth to show cause why the Agreement should not be accepted. Opposition is unlikely.

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This Settlement Agreement will not end Judge Feikens' three-decades long control over DWSD, -- paragraph 8 of the Agreement refers to a potential Third Amended Consent Judgment -- but it will end lengthy and costly litigation between DWSD and Oakland and Macomb Counties over repair of the Macomb Interceptor and payment for an 800 megahertz radio system.

Judge Denies Reports of Retirement, Ending Oversight of DWSD

Despite reports that he may be ending his 31 year oversight of DWSD, U.S. District Judge John Feikens, who turned 91 last week, denies that he's close to retiring and stepping down from overseeing the Detroit Water and Sewerage Department -- "There's no truth to it," Feikens said Tuesday. "I don't know who is coming up with these rumors."

The Judge's comments were reported (here) by the Detroit News on December 10, 2008.

Federal Oversight of DWSD May Be Near End

The Detroit Free Press reports that Judge John Feikens, who turned 91 on December 3, 2008, may be ready to end his supervision of the Detroit Water and Sewerage Department. Feikens, who has overseen the Department since 1977 as part of a pollution lawsuit settlement, has sought a global resolution of a number of outstanding disputes between the Department and its suburban customers.

"Feikens said the system now complies with the Clean Water Act, but he worries that falling revenues caused by decreased water consumption this year could make it hard to fund improvements still needed to maintain that compliance. But Feikens said that if the region can work together, court supervision could become unnecessary."

Under Judge Feikens' supervision, DWSD has spent hundreds of millions of dollars on upgrades to its main wastewater treatment plant.

The Southeast Michigan Council of Governments (SEMCOG) recently reported that Southeast Michigan communities, including the City of Detroit, had spent $2.4 billion in projects designed to reduce combined sewer overflow (CSO) pollutant discharges, resulting in an 85 percent reduction in untreated CSO discharges.