PC-786, Lakeshore Engineering Submits Low Bid on Rouge River Outfall (RRO-2) Project

Lakeshore Engineering submitted the low bid earlier this afternoon on the project known as DWSD Contract PC-786, Rouge River Outfall No. 2 (RRO-2) Segment 1, WWTP Modifications:

1.   Lakeshore Engineering - - - $11,855,749*

2.  Walbridge Aldinger - - - - - $12,970,000**

3.  Walsh Construction - - - - - $13,117,000

4.  Weiss Construction - - - - - $13,391,000

5.  Detroit Contracting - - - - - $14,021,000

6.  L. D'Agostini & Sons - - - - $14,702,250

7.  O'Laughlin Construction - $15,232,600

This project was previewed at a June 22, 2011 public hearing and reported here.

For more about DWSD Update, click here. 

* Update (11/22): DWSD Update has learned that Lakeshore Engineering asked the City of Detroit to retract its bid on this project in a letter dated November 17, 2011.   

** Update (12/21): Earlier this afternoon, at a Special Meeting, the Board of Water Commissioners approved a contract with Walsh Construction for $13,117,000. This followed adoption by the Water Board of a resolution suspending Walbridge Aldinger, and 13 other contractors,  for a period of 3 years.  

Detroit Water Board Approves Hiring of New Director, Sue McCormick

The Detroit Board of Water Commissioners earlier this afternoon  approved Mayor Bing's candidate for Director of the Water and Sewerage Department. At a Special Meeting held earlier this afternoon, the Water Board voted unanimously to approve the hiring of Sue McCormick as the new Director.  She will be paid $195,000 annually and begin work on January 2, 2012. 

According to Chris Brown, Mayor Bing's COO, Ms. McCormick was selected after considering a pool of some 85 candidates for the position.

Under the terms of the Plan of Action adopted by Judge Cox on November 4, 2011, the new Director will have broad new powers to bring DWSD back into compliance with the Clean Water Act.

DWSD has been without a permanent Director since Pamela Turner retired (or was forced out) more than 18 months ago.

The Water Board also used the occasion of the Special Meeting today to approve a one year contract with Butler Benton (B2 Advisors, LLC), who will serve as the financial advisor to the Water Board. B2 Advisors will be paid an amount not to exceed $100,000.


For more about DWSD Update, click here. 

Union Moves to Intervene into EPA Lawsuit, Challenges Judge Cox's Recent Order

Making good on threats made last week to challenge Judge Sean Cox's November 4, 2011 Order adopting the Plan of Action, AFSCME Council 25 earlier today filed a Motion to Intervene in the 1977 EPA Lawsuit seeking to block implementation of the Court's order as it pertains to collective bargaining rights. 
2011-11-24.Motion to Intervene in EPA Lawsuit by AFSCME Counil 25

For more about DWSD Update, click here.

Mayor Bing Announces Choice for New DWSD Director

Sue McCormick was introduced to the Detroit Board of Water Commissioners on November 9, 2011 as Mayor Bing's choice for the new Director of the Detroit Water and Sewerage Department.

Ms. McCormick, who currently serves as the Administrator of Public Services for the City of Ann Arbor was introduced by Chris Brown, Mayor Bing's COO, to members of the Water Board who were participating in a workshop meeting. The Board must vote to approve her selection at its next scheduled meeting on November 16, 2011. If approved, Ms. McCormick would start January 1, 2012.  

Update (11/11): The next Water Board meeting is November 30, not the 16th as originally reported. Click here for the Board calendar.  Also, AnnArbor.com has a story (here) detailing Ms. McCormick's responsibilities with the City of Ann Arbor. 

Update (11/14): The Water Board will be holding a Special Meeting on November 16, 2011 to consider and vote on Sue McCormick for Director. 

For more about DWSD Update, click here.

Former DWSD Head Engineer Weighs in on Changes Ordered by Judge Cox

Former Head Water Systems Engineer, Dennis L. Green, P.E., who retired from DWSD in 2009 after more than 40 years of service, recently weighed in on the recent changes ordered by Judge Cox in a Letter to the Editor published by the Detroit Free Press published (here) on November 8, 2011:

U.S. District Judge Sean Cox’s call for structural changes in the Detroit Water Department (“Judge Sean Cox’s ruling” Nov. 5) came on the heels of the disbanding of the DWSD Engineering Division. It’s no coincidence that the decades of struggle with EPA compliance similarly began on the heels of another event involving Engineering.

In 1975, a new Detroit City Charter replaced the tenured chief engineer with a director serving at the pleasure of the mayor and removed the requirement for a Professional Engineer (PE) license.

With civil service tenure’s protection from arbitrary dismissal, the chief engineer could take his objections regarding any ill-conceived policy of the mayor or Board of Water Commissioners to the public without fear of reprisal. A PE license requires an oath to protect the public health and safety, but serving at the pleasure of the mayor, an unlicensed director’s loyalty is to the administration before the public.

Prior to 1975, DWSD had a worldwide reputation for its engineering and operational success, and its professionals dominated the committees writing the industry's standards. Then, without the check and balance between public safety concerns represented by a licensed engineer and the politics of the Board of Water Commissioners, it took only two years for the politicians to wreck the nation's most respected water system, provoking acrimony with its customers and the EPA.

U.S. District Judge John Feikens’ oversight of DWSD was an abject failure. The billing squabbles between DWSD and its suburban customers festered for years. They eventually ended not because of the negotiating skills of his approved politicians and consultants, but as a result of an in-house engineering breakthrough that restored integrity to the billing process.

After years of failure by outside consultants, the Archer administration listened to me, my staff and people doing the actual work. Just like creating a credible water bill, creating a functional, efficient and maintainable treatment plant also begins as an engineering problem that can't be solved by imposing capricious court-ordered deadlines on politicians who won't or can't comprehend the problem.

If Judge Cox and Mayor Dave Bing want a working sewage treatment plant, they need to do what the proposed and existing charters fail to do: demand a director with a PE license, and make sure that director has sufficient political independence to do the job.

For more about DWSD Update, click here.

Judge Cox Adopts Plan of Action for Overhaul of DWSD

On November 4, 2011, Judge Sean Cox entered an Order adopting the Plan of Action submitted by the Root Cause Committee that was created by his September 9, 2011 order.

Comment: We are studying the Court's Order and Plan of Action, and will have a complete review and analysis shortly. Suffice it to say, the Plan of Action put forward by the Root Cause Committee, which Judge Cox has now adopted by his Order, requires major changes to the way DWSD operates going forward, including its procurement policy. These changes are long overdue. 

2011-11-04.Judge Cox Order Adopting Plan of Action for DWSD Proposed by Root Cause Committee

For more about DWSD Update, click here.

McCulloch Updates Status of Oakland-Macomb Interceptor Project

Oakland County Water Resources Commissioner, John McCulloch, recently provided the following update on the status of the Oakland-Macomb Interceptor project:

Construction of the first phase of the Oakland-Macomb Interceptor Drain (OMI) Rehabilitation Project, which began in February of 2010, is now complete. The first phase, also known as Segment 1, consisted of two construction contracts, both of which were completed by Ric-Man Construction, Inc. These two contracts included the construction of five new permanent flow control / access structures and modifications to an existing flow control structure. Four of the five new structures include a very large steel stop gate. One of the structures includes a temporary pump station. These new facilities, operated in cooperation with Macomb County’s Clintondale Pump Station and Detroit’s Northeast Pump Station, will provide a means of controlling flow in the OMI system by using the upstream pipes for storage and temporarily backing up flow. The flow control plan will utilize alternating periods of storage and release to provide working time downstream to conduct rehabilitation work in subsequent phases of the project.

Design for the second phase of the project has been completed and plans and specifications have been issued for bids. Bids will be received on October 25, 2011. Construction is expected to begin by January of 2012. Rehabilitation of the pipe in the lower half of the OMI system will begin with this phase, utilizing the flow control made possible by the facilities constructed in the first phase. Work will include cementitious grouting of voids outside the interceptor, chemical grouting of leaks and localized repair of the pipe wall. In addition, modifications will be made to the Northeast Pump Station including the installation of a new 1,250 horsepower variable frequency drive pump. Construction costs are estimated at $20.2 million. This phase of the work is scheduled to take approximately two years.

As construction on the second phase of the project gets started, design efforts will begin on the third phase. The third phase has two major components: 1) installation of a permanent liner in sections of the interceptor where hydrogen sulfide has affected the long-term integrity of the pipe, and 2) rehabilitation of a restricted section of the interceptor that was previously repaired but is again in need of attention. Various rehabilitation methods are being evaluated to determine the type of lining to be used. Slip lining and spiral wound lining are the two methods being given the most consideration at this time. The rehabilitation of the restricted section of pipe likely will include construction of a new parallel sewer. Construction of phase three is expected to overlap with phase two and is expected to begin in 2013.

For more information about the Oakland-Macomb Interceptor project, click here, here, and here. 

For more about DWSD Update, click here.

Inland Waters Submits Low Bid on OMID Contract 3 Re-Bid

Earlier today, Inland Waters Pollution Control submitted the low bid on the Oakland Macomb Interceptor Drain (OMID) Contract 3, Re-Bid.

1. Inland Waters - - - - - - - - $17,965,840
2. Lanzo Lining Services  - - - $18,347,000
3. Jay Dee Contractors  - - -  $21,556,900

As we noted here, bids for Contract 3 were originally received on July 19, 2011, but thrown out because they reportedly exceeded the Engineer's Estimate.  Macomb County officials denied their decision was motivated by the lawsuit they had filed against Inland Waters and 39 other contractors on July 18, 2011.  When the bids were opened this morning, the Engineer's Estimate was reported to be $20,195,000.

For more about DWSD Update, click here.

PC-787, Lakeshore Engineering Submits Low Bid on Belt Filter Press Project

Earlier today, Lakeshore Engineering submitted the low bid on the project known as DWSD Contract PC-787, "WWTP Upper Level Belt Filter Presses Rehabilitation."

1. Lakeshore Engineering - - $28,960,000

2. Weiss Construction - - - - $30,216,000*

3. Walbridge Aldinger - - - - $30,525,000

4. Walsh Construction - - - - $30,975,000

5. Tooles Contracting - - - - $32,397,000

As we noted here, Contract PC-787 involves the replacement of 22 belt filter presses in Complex I and Upper Level Complex II at the Detroit WWTP.

*Update (2/22):  Weiss Construction was awarded the contract for this job on February 12, 2012 (here).

For more about DWSD Update, click here.

Detroit Water Board Fills Financial, Technical Advisory Staff Positions

At a Special Meeting on October 6, 2011, the Detroit Board of Water Commissioners selected Butler Benton and Douglas Buchholz, P.E. to advise the Board on financial and technical issues.

As we reported in August, staff will assist the Board in reviewing rate setting, capital projects and other financial and operational matters. Staff are hired by, and report directly to, the Board of Water Commissioners, not DWSD or the Mayor's Office.

Staff positions were created under the February 11, 2011 Order, and formalized under Article VII of the Board's Amended By-Laws. A third staff position, not yet filled, will advise the Board on legal matters.

Butler Benton

Butler Benton is the former Director, Department of Environment, for Wayne County.  He served with Wayne County for 15 years. Mr. Benton has a Bachelor of Science in Accounting and an MBA, both from Wayne State University.

Mr. Benton is a member of the Clean Water Steering Committee of the ESD Institute.

Douglas A. Buchholz, P.E. is Director of Operations for Oakland County Water Resources Commission (WRC). Mr. Buchholz has worked for Oakland County since 1974. He became Manager of Operations and Maintenance in 1998 and was promoted to Director of Operations in 2009.

Mr. Buchholz directs the overall operations and maintenance of the Oakland County WRC field and office staff for water supply, wastewater and storm water disposal, lake level control, permits and inspections and customer service and billings.

He also represents WRC and Oakland County cities, villages and townships on Detroit Water and Sewage Department (DWSD) committees and work groups as a:

• Co-chair of the DWSD Water Technical Advisory Committee (TAC)
• DWSD Sewer Steering Committee member

Background  

He is a 1970 graduate of General Motors Institute with a Bachelor of Mechanical Engineering degree. He earned a Master of Science: Civil Engineering degree from the University of Michigan in 1973. 

Mr. Buchholz is also a: 

• State of Michigan Registered Professional Engineer 
• State of Michigan Certified Wastewater Operator Classification: A, B, C or D 
• Member of American Water Works Association 
• Member of Michigan Water Environment Association

For more about DWSD Update, click here. 

Update (11/30): The Board of Water Commissioners today voted to approve the hiring of Jim Ridgway as Technical Advisor to the Board.  The Board reconsidered its earlier decision (reported above) concerning Doug Buchholz.

Mr. Ridgway has a B.S. in Environmental Engineering and a M.S. in Civil Engineering, both from the University of Michigan. In addition, Mr. Ridgway was an Assistant Director with DWSD for 5 years during the mid-1980s. Click here for his LinkedIn profile.

Board of Water Commissioners, Updated By-Laws Posted Online

By-laws for the Detroit Board of Water Commissioners have been posted on the DWSD website (here).

The by-laws were updated on July 27, 2011 to incorporate changes made by virtue of two federal court orders entered by Judge Sean Cox on February 11, 2011 and April 29, 2011. This is the first time that the by-laws have been made available online.

PC-784, Ric-Man Submits Low Bid on Sewer Meter Project

Last Tuesday, September 27, 2011, Ric-Man Construction submitted the low bid on the project known as DWSD Contract PC-784, "Sewer Meter Installation."

1. Ric-Man Construction  - - - $4,379,000
2. Weiss Construction - - - - - $5,084,000
3. Lakeshore Engineering - -   $5,192,119.60
4. Detroit Contracting - - - - $5,752,300

The Work for DWSD Contract No. PC-784, “Sewer Meter Installation Sites DT-S-1, DT-S-3, DT-S-4, DT-S-5, DT-S-8, DT-S-10, DT-S-13, OC-S-1 and WM-S-2”, includes, but is not limited to construction/rehabilitation of existing sewerage metering facilities. 

Update (5/31/12): This contract is being rebid as Contract PC-784a on June 19, 2012. If you have Dodge Reports, its Project No. 200400858901. 

Flint Urged to Break Ties with Detroit Water Department

The City of Flint is being urged to break ties with the Detroit Water and Sewerage Department and join the Karegnondi Water Authority.

On September 7, 2011, officials from Genesee County and the Karegnondi Water Authority met with the Flint City Council to present a report prepared by Rowe Engineering, which compared the cost of upgrading the City of Flint's Water Treatment Plant ($61.5 million) with the cost of getting its water from the KWA (not specified). 

Analysis indicates that the cost of supplying water from the Flint River on a continuous basis will be greater than the proposed KWA Raw Water Supply Contract, but less than continued supply from Detroit. 

On September 18, 2011, an Editorial in the Flint Journal urged Flint officials to "fish or cut bait" on their decision whether to continue buying water from Detroit or join the Karegnondi Water Authority. The Flint Journal recommends that Flint support the new pipeline plan.

Additional Resources:

• Rowe Engineering, Analysis of the Flint River as a Permanent Water Supply for the City of Flint (July, 2011) (Flint River Study)
• Flint River Study, Appendices 1 to 8 
• Karegnondi Water Authority (Homepage)
• Karegnondi Water Authority (DWSD Update)
  

Comment: Maybe I'm missing something, but if the City Flint will only be buying raw water from the KWA, the City will still need to make capital upgrades to its water treatment plant. No? As things stand now, Flint's WTP is a back-up to the water it buys from DWSD. Won't Flint have to make the capital improvements outlined by Rowe Engineering to bring their water treatment plant into compliance? So that it can process the raw water it receives from the KWA pipeline? If someone knows the answer to these questions, please let me know. 

For more about DWSD Update, click here. 

Committee to Plan Overhaul of DWSD Operations is Named

The Committee ordered by Judge Cox to develop a plan to overhaul the Detroit Water and Sewerage Department by November 4, 2011 (the "Root Cause Committee") will include the following members:

• Charles Pugh, City Council President
• Gary Brown, City Council President Pro Tem
• Chris Brown, Mayor Bing's COO and Acting Director of DWSD
• James Fausone, Board of Water Commissioners

Update (10/12): Judge Cox entered an Order today expanding the authority of his Special Master, David M. Ottenwess, to "direct and facilitate discussions" with the parties noted above and "to report to the Court [on] the progress and status of those discussions and the proposed plan." [Dkt #2405]

ESD Consensus Action Report: DWSD, The Road to Compliance and Beyond

One of the reports cited in Judge Sean Cox's September 9, 2011 Opinion and Order Denying the City of Detroit's Motion to Dismiss the 1977 EPA lawsuit was a 2010 report prepared by the Engineering Society of Detroit (ESD) Blue Ribbon Advisory Panel.  A copy of this report was filed by the Court earlier today.

• Engineering Society of Detroit, Detroit Water and Sewerage Department Waste Water Treatment Plant: The Road to Compliance and Beyond (July, 2010).  

Comment:  In my view, the ESD Report and the Recommendations of the ESD Institute will be the blueprint followed by the Committee ordered by Judge Cox to devise a plan within 60 days.  For those of you with personal knowledge of the WWTP and its operation, I invite your comments as to whether you think the ESD report is accurate or off-base.   

Judge Cox Denies Request to End Federal Oversight of DWSD, Orders Plan for Fundamental Changes within 60 Days

Earlier today, U. S. District Judge Sean Cox  denied without prejudice a motion filed by the City of Detroit in late July to dismiss the 34 year old federal lawsuit by the U.S. EPA.  

Instead, Judge Cox has ordered that within 60 days, Mayor Bing, City Council President and President Pro Tem, and a current member of the Board of Water Commissioners meet and devise a plan to address the root causes of DWSD's chronic non-compliance with the Clean Water Act. 

The parties are to submit their plan to Judge Cox at a Status Conference on November 4, 2011 at 8:30 a.m.

As we reported here, the City of Detroit petitioned Judge Sean Cox in July to dismiss the 1977 federal lawsuit citing the Administrative Consent Order (ACO) it entered into with the Michigan Department of Environmental Quality (DEQ) on July 21, 2011.

In Denying the City of Detroit's request to dismiss the federal lawsuit, Judge Cox noted that even after executing the ACO, "the DWSD self-reported serious violations of its NPDES permit to the DEQ." 

Thus, the City has not established that the DWSD has achieved even short-term compliance with the ACO and the Clean Water Act. Moreover, this Court concludes that the record in this case establishes that, unless more fundamental corrective measures are taken to address the institutional and bureaucratic barriers to compliance, sustained compliance with the Clean Water Act and the ACO will simply not occur.

In ordering that the City, City Council and Water Board devise a plan within 60 days, Judge Cox noted:

In doing so, they shall not be constrained by any local Charter or ordinance provisions, or by the provisions of union or other contracts. If these local officials fail to devise and propose a workable solution to remedy the underlying causes of the serious and recurrent violations of the Clean Water Act in this case, the Court will directly order a more intrusive remedy.

To read the entire text of Judge Cox's Opinion and Order, click here.

Additional resources:

•  Judge issues dire warning to Detroit over Water Department violations (Detroit News, September 9, 2011) 
• Union criticizes judge's direction to ignore contracts, clean up Detroit sewage plant (Detroit Free Press, September 9, 2011)
• Engineering Society of Detroit (ESD) Consensus Action Report, DWSD: The Road to Compliance and Beyond (July, 2010) 

For more about DWSD Update, click here.

DWSD Belt Filter Press Replacement Project (PC-787), Bidding October 20th

Earlier today, DWSD issued an Invitation for Bids for Contract PC-787, Replacement of Belt Filter Presses for Complex I and Upper Level Complex II.

This is a 5 year contract, which will involve replacing 22 belt filter presses at the Detroit Wastewater Treatment Plant (WWTP), including related belt conveyors, new screw conveyors, polymer feed systems, and related electrical and instrumentation controls.

DWSD has projected the cost of this project in its latest CIP at $37 million.

Update (10/11): DWSD has reportedly issued another Bulletin, although not yet posted, which puts the bid opening date back to October 20th.
 
Update (9/29): Per Bulletin 1, the Bid Date for this project has been moved up a week to October 13, 2011 from October 20th. 

Photo Credit: http://www.beltfilterpress.com/

Re-Bid Scheduled for Oakland Macomb Interceptor Drain Contract 3 Project

On September 1, 2011, the Oakland-Macomb Interceptor Drain Drainage Board voted to rebid Contract 3 and established a tentative bid opening date of October 25, 2011.

The OMID Board voted on July 26, 2011 to reject all bids received the week before.

Bid documents should be available beginning September 16, 2011, according to a Pre-Advertisement Notice. 

Update (9/16): Bid documents for Contract 3 were made available today. The Bid Opening is set for October 25, 2011 at 10:00 a.m. at the Office of the Oakland County WRC, Bldg 95 West, One Public Works Dr., Waterford, MI 48238-1907. 

FOX 2 Detroit Questions DWSD Sludge Hauling Contract

FOX 2 Detroit has a new story raising questions about DWSD's sludge hauling contract with Bankston Construction. This contract was let following termination of the City's contract with Synagro in 2009, and before DWSD began soliciting contracts for a new BioSolids Management Services Contract (PC-781).

Detroit Sludge Hauling Deal Up to Snuff?: MyFoxDETROIT.com

Update: The Bankston contract was approved during the February 23, 2011 Water Board Meeting.  See, Approved Meeting Minutes (here) at pp. 22-23.

For more about DWSD Update, click here.

DWSD Receives a Dozen Proposals for New Biosolids Contract (PC-781)

At the conclusion of today's Water Board Meeting, Deputy Director Darryl Latimer reported that DWSD had received (and was currently evaluating) 12 responses to the Department's RFP for Biosolids Management Services (PC-781).

Responses to the RFP for Contract PC-781 were received on August 17, 2011 from the following teams:

• DTEES/NEFCO
• GeoEnvironment Technologies
• GreenGro Renewables, LLC
• Lakeshore Group
• Praxair, Inc.
• Terra Sync International, LLC (f/k/a American Biodiesel Resources, LLC) 
• Tooles Contracting
• Trinity Environmental Solutions, LLC
• Veolia Water
• ViTag Michigan, LLC
• Waste Management
• We Care Organics

There was no discussion about when a decision might be made about this project.

For more about DWSD Update, click here.

Oakland County Opposes Dismissal of Federal Case, Seeks Greater Authority for Detroit Water Board

Oakland County opposes dismissal of the 34 year old federal lawsuit involving the Detroit Water and Sewerage Department, and seeks changes to the Water Board's by-laws, which would give the Board greater authority over the affairs of DWSD.

Earlier this week, in response to the City of Detroit's July 25, 2011 Motion to Dismiss, Oakland County filed a Response, which challenges the assumption that transferring oversight of DWSD to the Michigan DEQ, through the Administrative Consent Order (ACO), will solve DWSD's compliance problems.

Citing over 30 years of efforts to bring the Detroit Wastewater Treatment Plant (WWTP) into long-term compliance with the Clean Water Act, Oakland County has "grave concerns" with DWSD's ability to achieve the milestones set forth in the ACO.  

Among the chronic problems cited by Oakland County, which are the same problems identified in more than half a dozen reports and findings by the late Judge John Feikens, are the following: 

• insufficient number of adequately trained personnel
• inadequate repair and maintenance of dewatering equipment
• cumbersome bidding and arcane purchasing policies 

To address these long-standing problems, Oakland County contends, requires more than another recovery plan or another set of milestone dates.  Citing a 2010 report by one of Judge Feikens' technical experts (Prof. Jonathan Bulkley), Oakland County argues that now is the time for fundamental change: 

"It may be appropriate to consider more fundamental corrective measures to address the institutional problems which are adversely impacting the performance of DWSD's wastewater treatment plant." 

Oakland County requests that Judge Cox order amendments to the Water Board's by-laws that would provide for the following: 

• allow the Water Board to adopt its own procurement policy and allow DWSD to contract in its own name for construction and professional services
• allow the Water Board to control the expenditure of funds from the DWSD enterprise fund and limit transfers to the City of Detroit's general fund
• allow the Water Board to develop a policy for ensuring and maintaining the financial health of DWSD
• give DWSD exclusive authority to handle all human resources and employee matters, including hiring and firing, notwithstanding any contrary provisions or prohibitions of any collective bargaining agreements, civil service rules or past practices
• allow DWSD to hire its own legal counsel, both general and special counsel, as needed

Oakland County also requests an order "enjoining the City of Detroit and each of its executives, officers, managers, departments, boards, contractors, employees . . . from attempting to interfere with or exercise authority over any of the matters vested in the Board [of Water Commissioners] by the Amended By-Laws." 

Click here to read Oakland County's Response in its entirety. 

Comment: Without using the word, Oakland County is really seeking autonomy for DWSD and the Water Board.  Autonomy from the City of Detroit's arcane purchasing and hiring practices. Autonomy from outside interference.  With all signs pointing toward an end to the 1977 federal lawsuit, Oakland County's request, if granted, would require that Judge Cox keep the case open to enforce a new order.  There will probably be changes to the Water Board's by-laws, but I don't think it will come by court order.  Much like the changes to the Water Board in February, Oakland County's request will likely precipitate negotiations with Mayor Bing that will lead to changes. 

For more about DWSD Update, click here.

Report: DWSD Should Retire One or More Water Treatment Plants

A recent report by CH2M Hill, a national engineering firm, questions whether the City of Detroit (DWSD) should continue to operate all 5 of its existing water treatment plants (WTP) in light of major population losses and large projected capital improvement costs.

In a June 28, 2011 report, CH2M Hill begins by noting that DWSD currently operates 5 water treatment plants, which have a combined capacity of 1,640 million gallons per day (MGD).

Lake Huron . . . . . . .  400 MGD
Northeast  . . . . . . . . . 300 MGD
Water Works Park . . . 240 MGD
Springwells . . . . . . . . 540 MGD
Southwest . . . . . . . . . 160 MGD

Over the past 5 years, the Report notes, the maximum daily demand across the DWSD system has dropped from 1,050 MGD to 800 MGD.  This change in circumstances, according to CH2M Hill, raises 2 important questions:

1. Is there a different way to operate the system by reducing the number of treatment plants and thereby reducing the [capital investment] CIP requirements?
2. Are all of the transmission mains recommended in [DWSD's 50 Year] Master Plan still needed within the time frame suggested?

The CH2M Report then lays out 3 scenarios under which DWSD would retire the Southwest WTP, the Northeast WTP, or both.

CH2M Hill makes the following preliminary recommendations:

• Northeast WTP -- "retirement of the Northeast plant is the most desireable as it is the plant with the largest capital allowance to rehabilitate the plant to an acceptable level of operation."

• Southwest WTP -- "work on rehabilitation of the treatment trains at the Southwest plant should be put on hold until a detailed analysis of the system hydraulics can be completed." 

• Water Works Park WTP -- "The CIP contains an amount of $24.5M for re-working the discharge piping . . . this expenditure should be put on hold until better decisions can be made with respect to the future needs of this plant."

• Springwells WTP -- "This water treatment plant is of strategic importance to the long term operation of the DWSD transmission system. Continuing with the work related to the filter rehabilitation and pumping is important and should continue. This includes [over $442 million worth of CIP projects]."

• Transmission Mains (NOTS and Flint Loop) -- "Base on current planning projections, all of this work [$584M] should be removed from the CIP."

The CH2M Hill Report outlines a number of other recommendations (here).

Comment: The CH2M Hill Report appears to have been published during the time period in which DWSD was evaluating the CIP, between early May and late July. It is unclear, however, whether the report was part of the decision making process. It was distributed only yesterday to attendees of a TAC Meeting.  

For more about DWSD Update, click here.

Detroit Board of Water Commissioners Seeks Technical and Financial Advisors

At its July 27, 2011 meeting, the Detroit Board of Water Commissioners approved a resolution authorizing efforts to hire an interim technical advisor and/or a financial advisor.

Advisors will assist the Board in its efforts over the next 3 to 6 months. The main tasks will include reviewing rate setting, capital projects and financial implications. Advisors will work directly for the Board of Water Commissioners, not DWSD senior management.

The Board is soliciting names and resumes until August 17th and plans on making a decision at its August 24, 2011 meeting.  The interim advisors could be loaned or detailed from a municipal entity or private industry. 

• Financial Advisor - Position Summary 
• Technical Advisor - Position Summary 

Interested persons should e-mail a letter with their availability and salary requirements (if any) and a professional resume to Chair Mary Blackmon or Commissioner James Fausone.  Applications are due by August 17, 2011. 

Update: At its August 24, 2011 meeting, the Board of Water Commissioners extended to September 14, 2011 the deadline to submit applications and resumes. Through August 17th, the Board had received 6 applications, 5 for the technical advisor position and 1 for the financial advisor position. The Board indicated that it would accept applications from existing DWSD employees. 

The Water Board plans to interview candidates on September 27th, and make a decision at the regular Board Meeting on Wednesday, September 28th.

For more about DWSD Update, click here.

Detroit Water Board Approves 5 Year Capital Improvement Program (CIP)

At its July 27, 2011 meeting, the Board of Water Commissioners approved a $1.3 billion Capital Improvement Program (CIP) for 2012-2016. 

Of this amount, $740.4 million is earmarked for new construction and improvements to DWSD's water and wastewater facilities; $591 million is for projects that are already under construction.

Of the new construction funding, $422.5 million is designated for water projects, and $317.9 million is designated for wastewater projects. 

In early May, Deputy Director Darryl Latimer announced that DWSD would postpone revisions to the 2011-2015 CIP pending a detailed review of projects.  

After completing this review, a Draft CIP was submitted to the Board of Water Commissioners for approval at its July meeting.

During the July 27th meeting, a number of Commissioners expressed concern about the amount and timing of information provided to suburban (wholesale) customers of the Department.

• Commissioner Bryan Williams in particular expressed his concern that the CIP doesn't reflect current needs and that the whole process for approving capital projects should be changed radically. He recommended (i) starting the process earlier; (ii) providing a formal schedule for customer input; and (iii) circulating an original and red lined version of the CIP to show changes.
• Commissioner James Fausone echoed those concerns, that the wholesale customer base needed more time to review DWSD's proposed spending plans.
• Commissioner Fred Barnes reported hearing from suburban customers who hadn't seen the revised CIP and weren't involved in the process.

Deputy Director Daryl Latimer and Assistant Director James George indicated that suburban communities had been briefed about DWSD's capital spending plans through the Technical Advisory Committee (TAC), and that the CIP has generally not been subject to Board approval. 

Acting Director Chris Brown requested that the Board approve the revised CIP with the condition that the Assistant Director George answer the Commissioner's remaining questions. 

The Board approved the 2012-2016 CIP on a 6-1 vote. Commissioner Williams was the lone dissent.

Comment: While we haven't had time to thoroughly compare the updated CIP with last year's version, it appears that the Springwell's Water Treatment Plant (SP-563) project has survived and will be coming out for bids shortly.  The most recent list of proposed construction contracts indicates a September, 2011 bid advertisement date.

Among the projects that appear to have lost out, both the Flint Loop and North Oakland Transmission System (NOTS) water main project appear to have been cut. There is no money allocated to the oversight contracts (CM-2017 and CM-2016), which were previously awarded. 

Additional Resources:

• Water Supply System CIP - FY 2012-2016
• Sewage Disposal System CIP - FY 2012-2016
• Wastewater Master Plan - Volume 4: Capital Improvement Program

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.