Oakland-Macomb Interceptor Drain District: 2010 Meeting Schedule Set

The Board for the Oakland-Macomb Interceptor Drain District (OMID), the legal entity that owns and operates the Oakland-Macomb Interceptor (OMI) as of October 22, 2009, has published its schedule of meetings for 2010 (here).  Half of the meetings will be held in Oakland County, and half in Macomb County.

The OMID recently bid out the first two contracts for what is planned to be a $160 million repair and rehabilitation project spread out over 6-8 contracts. 

Click here for more information about the Oakland-Macomb Interceptor Drain project.

Detroit Water Board Approves Sewer Repair Contracts to Inland Waters, Rejecting Lakeshore Engineering Protest

On December 16, 2009, the Board of Water Commissioners narrowly approved two sewer repair contracts, worth upwards of $80 million, to Inland Waters Pollution Control, Inc. 

Lakeshore Engineering, the second bidder, protested the award to Inland Waters. Anthony Adams, former Deputy Mayor and Interim Director of DWSD, spoke on behalf of Lakeshore Engineering during the public comment session. 

Despite concerns about awarding both contracts to one contractor, the Board later approved  the award of both contracts (DWS-876 and DWS-877) to Inland Waters. The votes were 6-1 and 4-3 respectively. Each contract was approved at a cost not-to-exceed of $40 million.  Both contracts must still be approved by the Detroit City Council.

These two contracts replace earlier sewer repair contracts that had been held by Inland Waters and Lakeshore Engineering.  

Monica Conyer's Sentencing Delayed (Again)

The Detroit Free Press reports (here) that the sentencing date for Monica Conyers, in connection with her guilty plea in the Synagro Scandal, has been pushed off again to March 10, 2010, from January 15th. The disgraced former City Council Member admitted earlier this year accepting a $6,000 bribe for voting to approve a $1.2 billion contract for sludge hauling contract. 

Weiss Construction Low Bidder on PC-776 Project

Earlier today, Weiss Construction submitted the lowest bid for the PC-776 project. Weiss beat out 7 other bidders for the project with a low bid of $25,312,000. Weiss' bid was $182,000 lower than the Engineer's Estimate for this project, which involves replacement of 25 pumps at Detroit's main waste treatment plant at 9300 W. Jefferson, and related electrical work. 

Weiss --------- $ 25,312,000
Walsh --------- $ 25,550,771
Lakeshore ---- $ 25,972,000
Walbridge ---- $ 26,360,000
Tooles -------- $ 26,420,104
DeMaria ----- $ 26,892,000
White -------- $ 28,145,000
DCI ---------- $ 28,626,000

Contract PC-776 involves providing new power supply cable to and from the secondary clarifiers and substation MCCs, providing new MCCs at each secondary clarifier, providing short-circuit analysis and fault rating, providing detailed hydraulic analysis and sizing of the pumps related to secondary clarifiers RAS pumping, providing 25 RAS pumps at the secondary clarifiers and completing all miscellaneous electrical work such as replacement of cables, conduit, pull boxes, panels and junction boxes.

Genesee County Proceeding with Plans for New Water System, Pipeline

Genesee County is reportedly proceeding with plans announced earlier this year, and reported here, to construct a new $600 million water transmission pipeline and water treatment plant.

Under the auspices of the new Karegnondi Water Authority, Genesee County Drain Commissioner Jeff Wright is spearheading this effort, which is aimed at giving Genesee and Sanilac Counties, along with the cities of Lapeer, Imlay City, and Flint more control over their water rates. Mr. Wright has touted significant ($200 million) savings for Genesee County residents, but a recent article in The Davison Index notes that those savings are projected to be "in the long run, after a slight increase over the course of a 25-year bond to pay for the pipeline."

Comment: Unless I'm misreading things, this means the projected savings for Genesee County residents won't materialize for more than a generation. Isn't that like promising a tax cut . . . that doesn't kick in until 2034?

Oakland-Macomb Interceptor Repair: Ric-Man Construction Scores First 2 Contracts

The first two contracts for repair of the Oakland-Macomb Interceptor were bid on November 23 and 24th and Ric-Man Construction was read low bidder on both projects.

OMI Contract No. 1

• Ric-Man Construction       $12,486,880 
• Jay Dee Contractors          $12,821,800
• Dan’s Excavating               $14,488,800
  

OMI Contract No. 2  

• Ric-Man Construction      $16,338,600 
• Jay Dee Contractors        $18,814,000 
• Dan’s Excavating             $20,973,000

James Rosendall Sentenced to 11 Months for Role in Synagro Scandal

Earlier today, former executive, James Rosendall, was sentenced to 11 months in federal prison for his role in the Synagro sludge scandal. Rayford Jackson was sentenced to 5 years in prison earlier this month, as reported here. Disgraced former Council Member, Monica Conyers, is due for sentencing on her guilty plea in January.

Rayford Jackson Sentenced to 5 Years for Role in Synagro Scandal

On Friday, November 13, 2009, Detroit businessman Rayford Jackson was sentenced to a 5-year prison term for his role in the Synagro sludge-hauling bribery scandal that also ensnared former Councilwoman Monica Conyers. The 5-year sentence was the maximum that Judge Avern Cohn could have imposed.

SW-548 Contract Approved By Water Board

On September 23, 2009, less than a month after bids were opened, the Board of Water Commissioners yesterday approved Contract No. SW-548 with Colasanti Construction Services for $49,680,368.

DWSD Contract SW-548, which was bid on September 1, 2009, involves a major overhaul of the Southwest Water Treatment Plant Sludge Treatment and Waste Washwater Treatment Facilities. The contract duration is 1,285 calendar days.

Promoted to DWSD Director from Interim Director, Pamela Turner Winning Praise

The Detroit Free Press has a nice article today praising Pamela Turner's role as Director of the Detroit Water and Sewerage Department. Initially promoted to Interim Director in September, 2008, Ms. Turner was recently appointed to Director by Mayor Bing a few months ago. The Mayor's appointment also brought to a halt a national search for a new director.

Water Consumption Continues to Decline, Rate Increases Predicted

The Detroit Water and Sewerage Department reports that water consumption in 2008 fell 12%, or about 16 billion gallons. From 2007, water consumption has dropped 15%, or 23 billion gallons.

Due to DWSD's significant fixed costs, including bond debt and other fixed operating costs, a significant decline in water consumption (revenue) will mean that rates for next year are bound to increase even more than usual.

And as we reported last December, a decrease in water revenues may contribute to further delays in court-ordered improvements to DWSD's system. Earlier this year, DWSD canceled two major tunnel contracts -- the Upper Rouge Tunnel and the Detroit River Outfall (DRO) Contract No. 2 -- worth over $600 million on grounds that they were too costly. Many other projects, which were slated for bidding earlier this year have been delayed.

Genesee County Pipeline Declared "Reckless Folly" by Times-Herald Newspaper

In an opinion piece entitled "Pipeline has the look of a boondoggle," The Times-Herald in Port Huron asserts that "Genesee County's proposal to spend $600 million on a water pipeline from Lake Huron is reckless folly."

The Times-Herald takes issue with Genesee County's rationale for the new pipeline, including capacity, cost, and reliability.

• "Capacity is not an issue. The Detroit water line, which went into use about 35 years ago, was built to carry as much as 1.2 billion gallons of water each day. In actuality, demand has been far less."
• While Genesee County has complained that Detroit has doubled its water rates in the past seven years from $9 million to $18 million, "At that rate, how many years would it take to earn back [the] $600 million [Genesee County proposes to spend on a new water line]?
• "It's disturbing that Genesee County officials would complain of service disruptions . . . without mentioning how these were caused by a massive power outage in the [S]ummer of 2003 that affected much of the Midwest and Northeast."
  

Click here to read the rest of this article.

Colasanti Low Bidder on SW-548 Project

Earlier today, Colasanti Construction Services submitted the lowest bid for the SW-548 project. Colasanti beat out 5 other bidders for the project with a low bid of $49,680,368.

Colasanti------ $ 49,680,368
DeMaria------ $ 51,000,000
Walsh -------- $ 51,234,087
Walbridge ---- $ 51,397,000
Lakeshore ---- $ 52,835,824
Weiss ---------$ 57,890,000

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?

Detroit City Council Approves Sale of Oakland-Macomb Interceptor

Earlier today, the Detroit City Council approved the transfer of the Oakland-Macomb Interceptor (OMI) the Oakland-Macomb County Drainage District. The vote was 5-2 in favor of the transfer, which is part of a larger settlement reached last December between DWSD and its suburban customers.

The OMI requires approximately $125 million in emergency repairs, according to DWSD Interim Director, Pamela Turner, although other estimates have put the price tag as high as $160 million.

City of Lapeer Agrees to Back New Water Authority

On August 17, 2009, the Lapeer City Commission approved a resolution supporting formation of a new water authority. Approval of the resolution does not commit the City of Lapeer financially to any of the proposed $600 million cost of a new system. The resolution simply gives the City Manager authority to participate in discussions with Genesee County about the proposed Karegnondi Water Authority.

Genesee County Launches Website for New Karegnondi Water Authority

In support of his effort to kick-start a new regional water authority, the Genesee County Drain Commissioner recently launched a new website for the nascent Karegnondi Water Authority -- www.Karegnondi.com. Included on the website is the executive summary of a feasibility study prepared by Wade Trim and Rowe Professional Services.

Genesee County Responds to DWSD's Criticism of Plan for New Water Authority, 85 Million Gallon Withdrawal Request

On July 13, 2009, John F. O'Brien, Genesee County's Director, Division of Water and Waste Services, provided a 10 page, point-by-point response and refutation of DWSD's June 29, 2009 letter, which is critical of the County's plans to form a new water authority.

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.

Synagro Woes Continue: City of Houston Terminates Contract

Six months after the City of Detroit terminated Synagro's sludge contract for convenience (T4C), following allegations of corruption, allegations which were followed by convictions here and here, the City of Houston has elected to terminate its $28 million contract with Synagro. The issues in Houston, however, center on how Synagro was handling the sludge it was contracted to recycle. Apparently, Synagro was disposing of the sludge in landfills instead of hauling it off to be recycled.

If you're interested in reading the underlying correspondence from the City of Houston, the documents have been posted on the Houston Chronicle's website here.