The Board of Directors of the Great Lakes Water Authority voted 5-1 this afternoon for Sue McCormick to serve as the Authority's first CEO. Ms. McCormick currently serves as the Interim-CEO. She most recently served as Director of DWSD from January, 2012 until two weeks ago when Gary Brown was selected to replace her.
The only opposition to Ms. McCormick among the Board members was from Robert Daddow, who is the Oakland County representative on the GLWA. Mr. Daddow favored Randy Moore, an executive from American Water. Under the GLWA By-Laws, a minimum of 5 affirmative votes was required to approve the resolution approving Ms. McCormick's selection. The Board still must approve an employment agreement with Ms. McCormick.
For more about DWSD Update, click here.
The Great Lakes Water Authority Board of Directors met this afternoon at 4:00 p.m. to select a new CEO, but decided instead to cut the list of candidates down to two - Sue McCormick and Randy Moore - and postpone a final vote until Monday, October 19th at 1:30 p.m.
Ms. McCormick and Mr. Moore reportedly garnered the highest rankings among the four candidates, following a lengthy interview process on October 12th that ran more than 4 hours. So, the decision was made to cut the short list in half.
The decision to delay a final vote until next Monday was to give the Board enough time to receive and review complete background checks on the two finalists.
The GLWA Board meets in the 5th Floor Board Room in the Water Board Building at 735 Randolph.
For more about DWSD Update, click here.
On October 8, 2015, nearly 18 months after ending its 50 year relationship with Detroit, the City of Flint has decided to resume buying its drinking water from the DWSD system after encountering a myriad of problems with its source water, the Flint River.
The problems the Flint encountered with drawing water from the Flint River have ranged from taste, foul odor, and most recently, high levels of lead. The increase in lead levels is thought to be caused by corrosive elements in the Flint River. The finding of elevated lead levels in the blood of Flint children was the last straw, and compelled local and state leaders to support a return to DWSD.
The issues concerning Flint's water problems are well documented in the FlintWaterStudy.org, which is a website published and maintained by Virginia Tech researchers who are involved in studying Flint's drinking water. The Flint Journal has also followed this issue very closely.
Flint's return to DWSD is expected to take 2 weeks to complete. However, this will only be a temporary measure as Flint is committed to joining the Karegnondi Water Authroty (KWA), which is still constructing its new 63 mile raw water intake pipe. KWA's pipeline project is slated for completion in mid-2016. Once completed, Flint will receive raw water from Lake Huron, which it still must process through its own water treatment plant. Water from DWSD is already purified potable (drinking) water.
Update (10/11): The Detroit Free Press has a very comprehensive article about Flint water woes and how better advanced planning and testing might have averted the current crisis.
Update (10/14): A copy of the water licensing agreement between the City of Flint and Genesee County Drain Commissioner can be found here. This agreement was required because after Flint terminated its contract with DWSD, it sold off a segment of water main to Genesee County.
For more about DWSD Update, click here.
On October 7, 2015, shortly after the Detroit Board of Water Commissioners approved a new Director and Deputy Director, the Board of Directors of the Great Lakes Water Authority (GLWA) held a public meeting and approved a short list of 4 candidates to fill the top position with the new Authority.
The four finalists for the CEO position are:
The GLWA Board will interview the 4 candidates in an open session on Monday, October 12, 2015 at 3:00 p.m. (Update: According the GLWA's Calendar - http://glwater.org/event/glwa-special-meeting-ceo-selection/ - the CEO interviews are scheduled for Tuesday, October 13th at 4:00 p.m.) The GLWA Board meets in the 5th Floor Board Room in the Water Board Building at 735 Randolph.
The GLWA Board is also expected to deliberate in open session and select a CEO candidate with whom it will engage in contract negotiations.
Comment: Other than Sue McCormick, who is currently serving as Interim-CEO, and served as Director of DWSD for the past 4 years, I don't know any of the other candidates. I have linked each candidate to their LinkedIn profile. If any of you have insights about the other three candidates, now is the time to speak up!
For more about DWSD Update, click here.
Earlier this morning, the Board of Water Commissioners approved the appointment of Gary Brown to serve as Director of the Detroit Water and Sewerage Department. Mr. Brown will replace Sue McCormick, who was appointed in November, 2011 to lead the Department.
Mr. Brown currently serves as Group Executive of Operations for the City of Detroit. He previously served on the Detroit City Council and was a member of the "Root Cause" Committee created by Judge Sean Cox in 2011.
The Board of Water Commissioners also confirmed the appointment of Palencia Mobley, P.E. to serve as Deputy Director and Chief Engineer. Ms. Mobley currently serves as Transition Manager for DWSD, a position she's held since December, 2014.
Prior to entering government service, Ms. Mobley worked as a Project Engineer for two private engineering firms -- Malcom Pirnie (now part of Arcadis) and Tetra Tech. Ms. Mobely has a B.S. in Chemical Engineering (Univ of Michigan, 2001), and a M.S. in Civil Engineering (Wayne State Univ, 2004). She is also a licensed professional engineer in the state of Michigan since 2006. Click here for Ms. Mobely's complete professional profile.
Mayor Mike Duggan recommended the appointment of Mr. Brown and Ms. Mobley in a September 21, 2015 letter to the Board of Water Commissioners.
For more about DWSD Update, click here.
On September 29, 2015, Tooles Contracting Group submitted the low bid for the project known as "Miscellaneous Concrete Crack Repairs and Restoration at Lake Huron Water Treatment Plant," DWSD Contract LH-397.
The as-read bids are as follows:
- Tooles Contracting Group, LLC . . . . $ 922,264
- Detroit Contracting, Inc. . . . . . . . . . . $ 942,510
- Ram Construction Services . . . . . . . . $ 987,710
- Lakeshore Global Corporation . . . . . $1,049,000
- Elgin Builders, Inc. . . . . . . . . . . . . . . .$,1094,450
- Mark 1 Restoration Services . . . . . . . $1,182,260
Comment: It may be due to the nature of the work for this project, but there are a number of new faces in the bid tab. That's good. Competition is a good thing. And in the case of Elgin Builders, a blast from the past.
For more about DWSD Update, click here.
Update (6/8): At 8:37 a.m. this morning, the order entered on Friday extending Judge Cox's role as mediator was vacated by the Clerk of the Court. The order indicates that Friday's order was entered in error.
Last Friday, June 5, 2015, the judge overseeing the remainder of Detroit's Chapter 9 bankruptcy entered an order extending until January 1, 2016, Judge Sean Cox's appointment as mediator of matters involving DWSD and the Great Lakes Water Authority.
Without an extension, Judge Cox's appointment would have expired on June 14, 2015, which is the deadline for DWSD and the Great Lakes Water Authority to finalize and execute the terms of a long-term lease.
Under the contemplated lease agreements, the GLWA would operate and maintain DWSD's water and wastewater treatment facilities for 40 years in consideration of annual lease payments to the City of $50 million.
Under the terms of the Amended Plan of Adjustment submitted in the City's Chapter 9 bankruptcy, which created the Great Lakes Water Authority effective November 26, 2014, the new authority and the City of Detroit have 200 days to completion negotiations and execute the contemplated lease agreements. That deadline is June 14, 2015.
To date, these negotiations have occurred behind closed doors with Judge Cox serving as mediator, but subject to a court order prohibiting the participants from discussing any of the matters. Macomb County Executive Mark Hackel has been very outspoken in his criticism of these confidential (secret) negotiations. Reports indicate that Macomb County has been shut out of the process.
Comment: I have no inside information (which I couldn't share with you anyhow), but entry of last Friday's order, extending Judge Cox's tenure as mediator to the end of 2015, strongly suggests to me that the June 14, 2015 deadline to complete a deal on a long-term lease agreement is going to be extended. I don't know how you can finalize a deal if Macomb County is not part of the process. That makes no sense to me. If I were to guess, I would say the parties will ask (or have already asked) for a new deadline that goes to mid-October or early November. What do you think?
For more about DWSD Update, click here.
With about 21,000 residents due to receive shut-off notices, the Detroit Water and Sewerage Department (DWSD) announced over the weekend that The Heat and Warmth Fund (THAW) had received a $1 million donation aimed at helping City residents pay their water bills.
The money was donated by Miller Buckfire, a New York investment firm that help shepherd Detroit through its historic bankruptcy in 2013-14 and earned $22 million in fees.
According to CEO, Saunteel Jenkins, the donation will be used for THAW's Water Assistance Program, which will launch on June 1, 2015. The program will pay up to $2,500 per household for families that are subject to shut-off and have incomes at 200% of the federal poverty level. The new program will help about 1,000 families.
News reports here indicate that Miller Buckfire's donation was part of a settlement it reached in December, 2014 with the City of Detroit, which had disputed its fees as part of the City's Chapter 9 bankruptcy proceeding. During mediation ordered by Judge Rhodes, Miller Buckfire reduced its fees from $28 to $22 million.
Comment: I don't mean to diminish this significant contribution, but helping 1,000 families accounts for less than 5% of the households facing shut-off. There is nearly $49 million owed on delinquent accounts. There simply has to be a better long-term solution to the City's residential water needs.
For more about DWSD Update, click here.
On May 5, 2015, L. D'Agostini & Sons, Inc. submitted the low bid for the
project known as "36-Inch Water Main in Telegraph Road, Cherry Hill Avenue to Warren Avenue," DWSD Contract WS-684. LDS' bid was about 8.7% lower than the second
bidder.
The as-read bids are as follows:
- L. D'Agostini & Sons . . . . . . $9,173,049
- Tooles Contracting . . . . . . $10,046,819
- Lawrence M. Clarke, Inc. . .$10,234,748
- Ric-Man Construction. . . .$10,620,821
The
Scope of Work for Contract WS-684 includes furnishing and installing 10,526 lineal feet of 36" water main, approximately 2 miles, together about 300 feet of 24" and 164 feet of 12" water main.
Update (11/17): This project is being rebid on November 30, 2015 as Contract WS-684A.
For more about DWSD Update, click here.
On February 26, 2015, Imperial Construction submitted the low bid
for the project known as "Water System Improvements, Various Streets"
DWSD Contract WS-686. The as-read bids are as follows:
- Imperial Construction . . . . . . .$7,547,121
- Major Cement Company . . . . .
$7,894,134
- Lakeshore Global
Corp. . . . . . $10,463,330
The scope of this project includes replacement of approximately 30,626 lineal feet of ductile iron water main and related fittings.
Imperial Construction was low bidder in 2012 on a similar project, WS-682A.
For more about DWSD Update, click here.
On December 23, 2014, Lakeshore Global Corporation submitted the low bid for the project known as "Pressure Regulating Valve Vault Improvements," DWSD Contract DWS-891. Lakeshore's bid was about 14% lower than the second bidder.
The as-read bids are as follows:
- Lakeshore Global . . . . . . . . . $1,849,500
- Trojan Development . . . . . . $2,125,000
- Tooles Contracting . . . . . . . $2,178,440
- Lawrence M. Clarke, Inc. . . $2,190,000
- Detroit Contracting, Inc. . . .$2,460,338
- Weiss Construction . . . . . . . $2,596,000
The Scope of Work for Contract DWS-891 includes demolition and reconstruction of pressure regulating valve vaults in five different locations: at Sixth and Porter, Park and Elizabeth and Chane at Maple in the City of Detroit; Marquette and Inkster in Garden City; and South Boulevard at North Service Center in the City of Troy.
The Scope of Work also includes removal and replacement of PRV and gate valves at all five locations, plus installation of ship ladders and sump pumps.
For more about DWSD Update, click here.
The Oakland County Bar Association is planning a lunch seminar on January 13, 2015 from 12:00 to 1:00 p.m. to discuss the Great Lakes Water Authority.
Hosted by the Energy, Sustainability and Environmental Law Committee, this event will feature speakers L. Brooks Patterson, Oakland County Executive, and J. Bryan Williams, who is the Oakland County representative on the current Board of Water Commissioners.
For more details concerning this event, check out the OCBA's Facebook page here. The Oakland County Bar Association is located at 1760 S. Telegraph Rd., Ste 100, Bloomfield Hills, MI 48302-0181.
For more about DWSD Update, click here.
The Detroit News reported last Friday [12/19] that the Wayne County Commission voted unanimously to appoint Joseph Nardone as the County's representative to the Great Lakes Water Authority. Mr. Nardone currently serves as Director of Development for the Wayne County Airport Authority.
Mr. Nardone's LinkedIn profile (here) doesn't reveal very much information about his education or background prior to his appointment to the Airport Authority in November, 2012. The Detroit News reports here that Mr. Nardone previously worked for the Wayne County Parks Division and is a 1985 graduate of Michigan State University.
For more about DWSD Update, click here.
The Detroit Free Press reports this morning (here) that the Great Lakes Water Authority is scheduled to hold its first public meeting on Friday, December 12, 2014. The meeting will be held in the Water Board Building, 5th Floor Board Room and begin at 1:30 p.m.
Notice for the meeting, published on the DWSD website, describes the meeting as an organizational meeting. To date, only two members of the GLWA Board have been appointed -- Robert Daddow for Oakland County and Brian Baker for Macomb County -- which is not enough for a quorum.
The GLWA Board consists of 6 members, one appointed by Oakland, Macomb and Wayne Counties; two appointed by the City of Detroit; and one by the State of Michigan. The remaining four board members have not been announced publicly.
Comment: Presumably, the new authority would not be meeting unless the remaining board members had been selected privately. I anticipate a public announcement of the remaining four board members within the next 24 hours. There's no reason to delay things further. Time to get down to business.
Update (12/12/14 - 8:45 a.m.): Mayor Duggan has reportedly appointed Gary Brown and Ike McKinnon to the Board, both of whom are members of the Mayor's Administration. Governor Snyder has reportedly appointed Edward Hood, a retired attorney from Ann Arbor. Mr. Hood previously practiced with Dykema Gossett. No word yet on who has been selected to represent Wayne County.
For more about DWSD Update, click here.
On November 7, 2014, Attorney Peter Cavanaugh was appointed to the Board of Directors of Pure Oakland Water for a three-year term.
Pure Oakland Water is a Michigan
not-for-profit organization dedicated to protecting Oakland County and
regional water resources through public education, community organizing,
environmental advocacy, and promotion of a sustainable future.
Oakland County Water Resources Commissioner, Jim Nash, is Chairman of Pure Oakland Water.
Peter Cavanaugh is a Construction Attorney and Partner with the law firm of Cavanaugh & Quesada, PLC.
On October 23, 2014, DES Electric, LLC submitted the low bid for the project known as "Joy Road Pumping Station - Replacement of Outdoor Plant Switchgear," DWSD Contract DWS-896.
The as-read bids are as follows:
- DES Electric . . . . . . . . $668,300.00
- Rotor Electric . . . . . . . $715,900.00
- J. Ranck Electric . . . . $749,465.00
- McGraw Electric . . . . $777,225.00
- Shaw Electric. . . . . . . $939,600.00
- Lake Erie Electric . . . $1,297,972.00
For more about DWSD Update, click here.
On October 9, 2014, Macomb County joined Wayne and Oakland Counties in approving plans to join the new Great Lakes Water Authority, which will lease DWSD's water and sewerage assets for 40 years.
Update (10/16): Oakland County has appointed Robert Daddow, deputy county executive, to serve on the Board for the new Great Lakes Water Authority. Daddow is quoted by the Detroit News:
"I'll have two measuring sticks while serving on the board," Daddow
said. "One will determine whether a matter before the board helps or
harms ratepayers. The other will ascertain whether it makes monetary
sense."
Update: (10/21): Macomb County has appointed Brian Baker, finance and budget director for the City of Sterling Heights, to serve as its representative on the new Authority.
For more about DWSD Update, click here.
On September 17, 2014, during a Special Meeting, the Board of Water Commissioners adopted a resolution endorsing the Memorandum of Understanding (MOU) and the formation of the Great Lakes Water Authority.
The Detroit City Council is expected to vote on September 19th on a similar resolution. However, if the City Council fails to endorse the new authority, the Emergency Manager Kevyn Orr has the power to do so.
Oakland and Macomb County Commissions are also in the process of reviewing and voting on adoption of the MOU and the Great Lakes Water Authority.
Oakland County has a website here with much more information about the Great Lakes Water Authority, including draft Articles of Incorporation here. Macomb County has posted information about the new authority here.
Earlier this week, Crain's Detroit Business published two terrific articles here and here explaining the details of the new authority and how it will impact Detroit and the suburbs.
Update (9/19): Detroit City Council voted 7-2 to approve the plan for a regional water authority.
For more about DWSD Update, click here.
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