D'Agostini Submits Low Bid on Karegnondi Water Intake Pipeline Project (UPDATED)

Earlier today, Genesee County received and opened bids for the first phase of the new Karegnondi water pipeline. The first phase involves construction of a 78" intake pipeline that will extend 2 miles into Lake Huron. The low bid was submitted by L. D'Agostini & Sons.

1.     L. D’Agostini & Sons . . . . $24,600,000
2.     JayDee / Schoolcraft . . . . . . $25,800,000
3.     Southland JB . . . . . . . . . . . . $26,800,000
4.     RicMan / Super Exc . . . . . .  $27,900,000
5.     Durocher / Michels . . . . . . .  $29,830,000

For previous posts concerning the creation and evolution of the Karegnondi Water Authority, click here. 

Update (5/22):  The Flint Journal reports here that Genesee County has executed a contract with L. D'Agostini & Sons for this contract, and expects work to begin in 30 days.  

Update (10/23/14): The Times Herald reports today (here) that construction of the raw water intake pipeline is almost complete. 

For more about DWSD Update, click here. 

Oakland Macomb Interceptor Drain, RFP Issued for Segment 3 Repair Program, OMID Contract 4

Last week, the Oakland Macomb Interceptor Drain Drainage District issued a request for bids for the Segment 3 Repair, Contract No. 4.  

This fourth project involves lining of portions of the Edison Corridor Interceptor downstream of CS9, lining of the Oakland Arm Interceptor (OAI) from CS6 to CS7, and from CS6 to PCI-7. The contract also includes construction of 6 access structures.

A mandatory Site Tour and Pre-Bid Meeting will be held on March 11, 2013. The Site Tour will be held from 10:00 a.m. to 12:30 p.m. The Contractors must meet at 9:30 a.m. at the OMID/NTH field office at 13347 15 Mile Road, Sterling Heights, Michigan, 48312 (586-977-2140) and complete the mandatory registration forms for the site tour. The site tour will be followed by a Pre-Bid meeting at 2:00 p.m. Mandatory Registration for the Pre-Bid Meeting will begin at 1:30 p.m. Bids are due and will be opened on April 25, 2013 at 11:00 a.m.

For more information about this project, contact Abdulnasser Almadhoun, P.E. at NTH Consultants - 313-237-3942 or by e-mail: aalmadhoun@nthconsultants.com 

For more about DWSD Update, click here. 

Rep. Kurt Heise Introduces (Second) Bill to Create a Regional Water Authority (UPDATED)

On January 22, 2013, Rep. Kurt Heise (R. Plymouth) introduced H.B. 4009, a bill that would incorporate the Detroit Water and Sewerage Department into a regional water and sewer authority. Rep. Heise campaigned in 2010 on a similar plan, and introduced a similar bill in January, 2011 [H.B. 4112] shortly after his first election to the Michigan House of Representatives.

Rep. Kurt Heise (R. Plymouth)

Under Section 4 of the current proposed legislation, H.B. 4009, a new regional water and sewer authority would be incorporated and be governed by a board of directors whose members would be the chief executive officers from each county, city, village and township located in the service area of the regional system.  Board members would then select 5 members to serve a single, 2-year term on the executive committee.  The executive committee would have powers similar to the current Board of Water Commissioners. 

DWSD currently provides water service to 126 communities; 76 communities are served by DWSD's wastewater treatment facilities.  Source: DWSD Factsheet.

For more about DWSD Update, click here.

Update (3/4): Rep. Heise's legislation is featured in the March, 2013 issue of American Water Intelligence (here), in which he describes his legislation as a "firewall against the current state of affairs. If Judge Cox cannot or will not make this happen, then my bill is ready to go."    

DWSD Picks the New England Fertilizer Company (NEFCO) to Negotiate Biosolids Project, Contract PC-792 (UPDATED)

On February 8, 2013, less than three weeks after receiving proposals, DWSD identified the New England Fertilizer Company (NEFCO) as the highest ranked proposer for its "Biosolids Dryer Facility" project, Contract No. PC-792.

 DWSD advised the other two bidders last Friday that it would be seeking to negotiate a contract with NEFCO, but reserved the right to proceed to the next highest ranked proposer. DWSD did not identify the second ranked proposer. 

DWSD received proposals on January 23, 2013 from three teams competing for this 20 year contract. 

Update (3/26): A proposed $683 million contract with NEFCO has been placed on the Agenda for the March 27, 2013 Monthly Water Board Meeting. Up-front construction costs will be $143 million, plus $540 million for operation and maintenance over 20 years.

For more about DWSD Update, click here.

DWSD Seeks Proposals to Manage its Green Infrastructure Program

The Detroit Water and Sewerage Department is seeking proposals from professional service contractors to develop and implement Phase I of DWSD's "Green Infrastructure Program."  This will be a 5 year contract and is being procured as Contract CS-1522.  

RFP documents are available from the Department beginning January 28, 2013 for $50 (certified funds). Contact Yolanda Pippen at (313) 964-9548 or Miriam Dixon at (313) 964-9465 for more information. 

There will be a mandatory pre-bid meeting for prospective bidders on Tuesday, February 5, 2013 at 2:00 p.m. at the Water Board Building, 735 Randolph St., 15th Floor, Detroit, MI 48226.   

Proposals are due on Wednesday, February 27, 2013 not later than 12:00 p.m. (EST).  Click here for a copy of the Bid Announcement.

Update (1/31): The Model D website has a very interesting article (here) about Detroit's "Blue Infrastructure," which discusses DWSD's plans and how it will tie into the Detroit Future City strategic framework. 

For more about DWSD Update, click here.

DWSD Receives Proposals from 3 Teams for Biosolids Contract, PC-792

On January 23, 2013, the Detroit Water and Sewerage Department received proposals from three teams in response to the RFP for the project known as "Biosolids Dryer Facility" (Contract PC-792). 

Proposals were received from the following teams:

• NEFCO
• Synagro/Walsh Construction
• We Care Organics /DeMaria

According to the January 23, 2013 Director's Report (here), the proposals will be "evaluated promptly by the joint DWSD and county representative evaluation team."

Contract PC-792 was advertised for bids last October. 

For more about DWSD Update, click here.  

   

City of Detroit Wastewater, CSO Discharge Permit Considered for Renewal

On January 18, 2013, the Michigan Department of Environmental Quality (MDEQ) published DWSD’s request to renew and reissue its wastewater and CSO discharge permit, NPDES Permit No. MI0022802. Comments or objections are due by February 19, 2013.

In accordance with Rule 323.1103 of the Michigan Water Quality Standards, the MDEQ proposes to grant a variance from the water quality standard that is the basis for the water quality-based effluent limit for Mercury in the draft permit.

The Discharge-Specific Level Currently Achievable for Total Mercury was developed in accordance with the Department's approved Multiple Discharger Variance (MDV). A copy of the MDV may be obtained via the Internet at (http://www.michigan.gov/deqnpdes - click on ‘Applicable Rules and Regulations’) or at the District Office.

Copies of the permit application, Public Notice, Fact Sheet, and draft permit may be obtained via the Internet (http://www.deq.state.mi.us/owis - click on ‘Permits on Public Notice’) or at the Water Resources Division Southeast Michigan District Office located at 27700 Donald Court, Warren, Michigan 48092-2793, telephone: 586-753-3750. 

(Note: If you write me (here), I would be glad to e-mail you a copy of DWSD's permit application and all related documents in a single zip file.  Even compressed, its almost 11MB. Just put “NPDES Permit” in the subject line when you write.)
 
Comments or objections to the draft permit received by February 19, 2013, will be considered in the final decision to issue the permit. Persons desiring information regarding the draft permit, procedures for commenting, or requesting a hearing should contact Matthew Staron, Permits Section, Water Resources Division, Department of Environmental Quality, P.O. Box 30458, Lansing, Michigan 48909, telephone: 517-335-4491, e-mail: staronm@michigan.gov.

A Public Meeting on the draft Permit has been scheduled on Wednesday, February 13, 2013, from 7:00 to 9:00 p.m. at the Western High School located at 1500 Scotten Street, Detroit, Michigan. Persons needing assistance with hearing, mobility, or visual accommodations should contact Susan Ashcraft at 517-241-1346 or e-mail at ashcrafts@michigan.gov to request these accommodations.


For more about DWSD Update, click here.  

Genesee County Advertises for Bids for 78" Intake Pipeline for Karegnondi Water Project

The Genesee County Drain Commissioner has released bid documents for the construction of a 78" diameter water intake pipeline that will extend nearly two miles into Lake Huron. This work signals the start of the raw water pipeline project for the Karegnondi Water Authority. 

Bids for the project entitled:

"Lake Huron Water Supply Initiative - Water Supply Intake - Contract S-4000 - Worth Township" 

will be received on February 26, 2013 at 2:00 p.m. 

Work includes tunneling and marine excavation, including two time crib intakes, a 30' diameter x 70' deep concrete junction chamber, and related appurtenances and site work.

A mandatory pre-bid Meeting will be conducted on January 24, 2013 at 10:00 a.m. at the Worth Township Hall, 6903 S. Lakeshore, Lexington, MI 48450.

Engineers for the project include: Lockwood, Andrews & Newman, Inc. (Houston, and Flint) and Rowe, Inc. (Flint). 

The project is located in Sanilac County located at 7705 Fisher, Worth Township, MI 48450, which is only about 6 miles North of Detroit's (DWSD) Lake Huron Water Treatment Plant in Fort Gratiot.

For more about DWSD Update, click here.

Karegnondi Water Authority Inches Closer to the Start of New Pipeline Project (UPDATED)

The nascent Karegnondi Water Authority (KWA) cleared another hurdle last week when the Army Corps of Engineers issued the final permit required for construction of the 1.5 mile intake from Lake Huron. Genesee County Drain Commissioner said a construction contract could be signed for the work at the end of February, 2013. The first phase of construction is expected to cost $35 million.  

At last check, DWSD was still negotiating with the City of Flint to sign a new long-term water supply contract. Flint is considered an integral part of any new pipeline built by the KWA.  

DWSD Update has followed the development of the Karegnondi Water Authority since 2009. For prior stories about the KWA, click here.

Update (1/17): The Davison Index reports here that construction on the KWA pipeline could begin by Spring, 2013.   

For more about DWSD Update, click here.  

100,000 Pageviews: Thank You!

Sometime over the past weekend, DWSD Update's pageview meter crossed 100,000. For a niche publication that began as an idea in early 2008, and garnered a mere 768 pageviews in its first month of publication (July, 2008), this is quite a milestone.  

Thank you for reading and following DWSD Update.

For more about DWSD Update, click here. 

WAVE Fund to Celebrate 10 Years, Birthday of its Founder, Executive Director Carla Walker-Miller

On Saturday, January 26, 2013, the Water Access Volunteer Effort (WAVE) Fund will celebrate its 10th Anniversary and honor its Founder and Executive Director, Ms. Carla Walker-Miller. A fundraiser will be held from 7:00 - 11:00 p.m. at the Detroit Wayne County Port Authority, 130 East Atwater Street, Detroit, MI 48226. Tickets for this event are $75 and may be purchased online here.  Please RSVP by January 15th. 

The WAVE Fund provides assistance to low-income families during crisis by ensuring uninterrupted access to safe drinking water and sanitation services. The WAVE Fund is a Michigan non-profit 501(c)(3) corporation and all contributions are tax deductible. Tax ID No. 01-0762343. 

DWSD's Aging Sewers, Wastewater Treatment Plant Featured on PBS News Hour

On January 3, 2013, DWSD's aging sewers and wastewater treatment plant were featured on PBS News Hour.  PBS interviewed Director Sue McCormick and Assistant Director Sam Smalley.

Watch A Journey to Confront Our Aging Water Systems on PBS. See more from PBS NewsHour.

For more about DWSD Update, click here.

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. 

Motor City Electric Submits Low Bid on Fire Protection System Upgrade, Contract PC-782

Motor City Electric submitted the low bid on December 12, 2012 for the project known as "Plant-Wide Fire Alarm and Fire Protection System Upgrade and Integration," DWSD Contract No. PC-782. 

There were three bidders on this project. Here are the as-read bids:

1. Motor City Electric . . . . .  $5,749,000
2. Shaw Electric . . . . . . . . . . $5,942,725
3. Bayview Electric . . . . . . .  $7,290,319

The work under Contract PC-782 contract includes:

• Supply and install new fire alarm systems (FAS) and upgrade the existing FAS for numerous buildings at the Detroit Wastewater Treatment Plant (WWTP), the Detroit Marine Terminal (DMT) site and the Water Board Building (WBB).
• Replace all existing, non-functional FAS devices to ensure a fully functional FAS.
• Integrate the new and existing FAS of all relevant buildings and bring all points to two central on-site locations at the Detroit WWTP and one off-site location at the WBB.

Click here for a copy of the Bid Notice. 

For more about DWSD Update, click here. 

Joint Venture Submits Low Bid on Water System Improvements Contract, WS-648A

Executive Construction Mgmt. Co/NQN Contracting, Joint Venture, submitted the low bid on December 11, 2012 for the project known as DWSD Contract WS-648A, "Water System Improvements: Various Streets Throughout the City of Detroit."

Here are the as-read bids. Equalization will not affect the outcome of this bid.

1. ECM Co/NQN Contracting, JV . . . . $3,692,100
2. Imperial Construction Co. . . .  $4,336,423
3. Major Cement Company . . . . . $5,235,930
4. RBV Contracting, Inc. . . . . . . .  $5,754,589
5. Blaze Contracting, Inc. . . . . . .  $5,792,000
6. Willie McCormick Co. . . . . . .  $5,932,757
7. Pamar Enterprises, Inc. . . . . .  $6,176,266
8. Lawrence M. Clark, Inc. . . . . .  $6,178,641
9. Ric-Man Detroit, Inc. . . . . . . .  $9,181,373 

Comment: Its good to see a lot of bidders on this job, including a number of new faces. Competition is a good thing. However, the low bidder appears to be quite low. $644,323 is an awful lot of money to leave on the table, and that's assuming Imperial has a good number. Even they look pretty low.   

For more about DWSD Update, click here.

EPA, MDEQ Submit Joint Statement to Court following Review of Restructuring Plan

On December 3, 2012, the U.S. Environmental Protection Agency (EPA), along the Michigan Department of Environmental Quality (MDEQ), filed a Joint Statement(*) with U.S. District Judge Sean Cox to report on their review of DWSD's restructuring plans. This report follows the EPA's October 12th request for time to review the EMA plan.

In their Joint Statement, the EPA and MDEQ explained that while EMA's proposal is outside of their normal jurisdiction and area of expertise, "because EMA's Proposal was raised in DWSD's Motion for an Interim Order, EPA and MDEQ reviewed [it] to assess whether an aspects of it appear likely to affect DWSD's compliance with its NPDES permit and the Clean Water Act ("CWA), 33 USC 1251, et seq." 

Its not surprising, then, that the one aspect of the EMA plan that attracted negative attention was the planned 75% reduction of staff within the wastewater operations group (WWOG) headed by Assistant Director Sam Smalley:   

At this time, EPA and MDEQ take no position on the appropriateness of EMA’s Proposal. However, EPA and MDEQ have identified one aspect of the Proposal that, if implemented as written, could have a negative impact on CWA compliance: the significant projected reductions in staffing levels within DWSD’s wastewater operations group (“WWOG”). DWSD informs EPA and MDEQ that the WWOG currently has over 600 employees. By contrast, after implementation of all recommended actions, EMA’s Proposal projects fewer than 150 WWOG employees.   In discussions with EPA and MDEQ, DWSD managers indicated that EMA’s projected staffing levels have not been adopted by DWSD and are only projections, not a plan. DWSD represented that it intends to move forward with EMA’s proposed staffing actions (i.e., job classification redesign, team training, etc.) in a step-by-step, piloted manner, with time to evaluate and adjust as necessary. DWSD further represented that no recommended actions would be implemented that threatened safety or compliance. 

Safeguards already in place should help to minimize the risk that reductions in WWOG staffing levels might undermine DWSD’s ability to comply with its NPDES permit and the CW A: [4 bullet points omitted]

At this time, EPA and MDEQ have not identified a basis for seeking relief concerning DWSD's consideration of EMA's Proposal. EPA and MDEQ will continue to monitor WWOC staffing levels through the ACO already in place. [FN4 - Below] 

Because the extent to which specific elements of the Proposal will be implemented remains to be determined and because EMA’s recommendations and DWSD’s actions in the future may change, EPA and MDEQ reserve their right to review future developments to ensure continuing CWA compliance.

By conducting this review and continuing to monitor the situation, EPA and MDEQ do not intend to impair DWSD’s efforts to undertake appropriate reorganization, automation, and/or technology and control systems upgrades that DWSD may deem necessary to improve  efficiency, control costs, and address DWSD’s need for long-term strategic and financial planning. 

The EPA and MDEQ also acknowledged the firestorm controversy surrounding the EMA Proposal, but report that they are not inclined to interfere with DWSD's plans, for now, so long as there is compliance with the Clean Water Act.  

FN4 -- The United States and Michigan are aware that, on November 20, 2012, the Detroit CityCouncil rejected a part of the EMA Proposal that called for a $48 million contract between EMA and DWSD. We also are aware that DWSD recently proceeded with a smaller EMA contract involving job classification redesign, training, and implementation. There have been suggestions that EPA and/or MDEQ should take a position on the $48 million EMA contract (for example, by approving or disapproving it). While the United States and Michigan reserve the right to take all actions necessary to ensure compliance with the Clean Water Act and any other applicable federal or state laws, we are not aware, at this time, of any reason why the United States and Michigan would assert authority to approve or disapprove any contract between DWSD and EMA.  

(*) For readers with a PACER Account, the EPA and MDEQ's Joint Statement was filed 12/3/12 in Case No. 2:77-cv-71100-SFC at Dkt #2509. If you're interested in a copy, I'd be glad to e-mail it to you. Just write me and put "Joint Statement" in the reference field. While the statement itself is only 5 pages, there's an additional 85 pages of exhibits, including the Administrative Consent Order [7/8/2011] and First Amended Administrative Consent Order [5/18/2012]. The entire document is about 7MB. It should be available through Scribd within a few days. 

For more about DWSD Update, click here. 

Inland Waters Settle Claims and Pending Litigation with Detroit, Cleared to Bid New Work (UPDATED)

Late Wednesday [11/28], the Detroit Water and Sewerage Department announced in a press release (here), that it had agreed to settle all pending claims and litigation against Inland Waters Pollution Control, Inland Management, Inc., and Inland Pipe Rehabilitation, LLC for $4.5 million. 

Inland, in a separate statement released on November 27th, reported that the $4.5 settlement with the Department resolved claims that were in excess of $380 million. 

Inland Waters, Inland Management, and Inland Pipe Rehabilitation were among 13 contractors originally suspended by the Board of Water Commissioners on December 21, 2011. The Board reversed itself three weeks later on January 11, 2012, and lifted the suspension on 5 of the 13 contractors, including Inland Waters Pollution Control, Inc. 

Inland Waters is still one of over three dozen Defendants in a federal lawsuit filed on July 18, 2011 by the Macomb Interceptor Drain Drainage District that remains pending. The allegations in that lawsuit focus on the cost of repairing a sewer line that collapsed in 2004.   However, several recent decisions in that case have gone against Macomb, and its questionable now whether the Drainage District will be able to continue its lawsuit against Inland Waters and the other 40 contractors in that case.  

Comment: I'm not familiar with all of the claims made by the City of Detroit in the federal litigation against Inland Waters, but if the City's claims were on the order of $380 million (a number that seems very high, but probably includes alleged treble (3x) damages), Inland's $4.5 million settlement was a pretty good deal. Maybe even a great deal. The settlement amount was less than  $0.02 on the dollar! And, even better, Inland has been declared to be a Responsible Vendor, cleared just in time to bid on two new sewer repair contracts the Department is planning to advertise for bids in December, Contracts DWS-886, and DWS-887. 

What do you think about the terms of Inland's settlement? Was this a good deal for DWSD?

Update (1/7/13): The Department is now planning to advertise four (4) new sewer repair contracts during Q1 of 2013 -- DWS-886, DWS-887, DWS-889, and DWS-890. 

Update (2/25/13): The Inland Waters settlement is featured in Crain's Detroit Business (here) as one of the biggest legal settlements of 2012. 

For more about DWSD Update, click here.  

Moody's Cuts Detroit Water and Sewer Bond Rating Again, Increased Risk of Detroit Bankruptcy Cited

The City of Detroit's deteriorating financial position and political dithering continues to affect DWSD's bond rating. 

On Wednesday [11/28], Moody's Investor Service downgraded the Department's water and sewer bond rating for the second time in 7 months. 

Concurrently, Moody's has downgraded the ratings for the Detroit Water and Sewage Enterprise Revenue debt one notch to Baa3 (Senior Lien) and Ba1 (Second Lien) as the rising risk of a city bankruptcy filing brings ongoing uncertainty regarding the treatment of these securities in the event of a filing. Ratings for the Detroit Water and Sewage Enterprise Revenue Bonds have been removed from review for possible downgrade and the outlook has been revised to negative. The negative outlook for the water and sewer debt is based on the increasing possibility that the city could file for bankruptcy over the next 12 to 24 months. 

The last downgrade of DWSD's bond rating by Moody's occurred on April 9, 2012, as we reported here.  

For more about DWSD Update, click here. 

Detroit City Council Rejects EMA Contract, Plan to Downsize DWSD. What's next?

Last week, the Detroit City Council took no action on a $48 million contract with EMA, the consultant behind a controversial plan to reduce DWSD's workforce by some 81%. 

Earlier today, the Detroit City Council took action, but voted to reject the EMA contract outright and along with it DWSD's restructuring plan. The Detroit Free Press reports (here) that the City Council vote was unanimous. Council member Ken Cockrel Jr. cited the EPA's October 12, 2012 request for 45 days to review the EMA plan as a key reason to delay approval. 

“Those 45 days have not elapsed yet," Cockrel said. "We have not heard from the EPA. They have not indicated that they have no concerns. And I think when you have a federal agency that’s in charge of regulating environmental concerns for the country…I think we ought to give them the time to do it.” (Cite: Michigan Radio)  

The Board of Water Commissioners, anticipating this outcome, last week voted to proceed with EMA under a $2.0 million stopgap contract. This is only a temporary solution. 

Comment: So what's next? Will the Water Board acquiesce (uh, not likely) or proceed with (24) consecutive $2 million contracts, each one just small enough to avoid a City Council vote? (Possibly) Or will Judge Cox resort to "more drastic measures" as he has alluded to in several of his rulings this past year? (What will that look like?)  And is this any way to run a public utility, one that serves 4.3 million people? Really?  

For more about DWSD Update, click here.     

Water Board Approves Stopgap Contract with EMA as City Council Fails to Act on Larger Contract

Confronted with the Detroit City Council's failure to take action toward approval of a $48 million contract with Minneapolis-based consultant EMA, the Detroit Board of Water Commissioners yesterday held a Special Meeting and approved a resolution authorizing Director Sue McCormick to negotiate a stopgap agreement with EMA, for an amount not to exceed $2.0 million.  

The term of this agreement will cover the period from November 14, 2012 to June 30, 2013. And because of the dollar amount, this contract will not require City Council approval. 

Comment: It is unclear to me why City Council was required to approve EMA's $48 million contract -- it was approved by the Water Board on September 7, 2012 -- after all of the steps taken in the past 12 months by Judge Cox and others to separate DWSD from the rest of the City of Detroit. DWSD now has its own general counsel, HR department and finance. Submitting a contract that comes with an 81% staff reduction, to an elected body for approval, is a suicide mission. The Board of Water Commissioners knows this; Judge Cox must know it too. 

This situation probably explains a November 8, 2012 Root Cause Committee Report that requests, in part, that DWSD be allowed to exempt certain contracts from City Council approval. Without the Court giving the Board of Water Commissioners sole authority to approve the entire $48 million EMA contract, it will surely languish with City Council taking no action for the foreseeable future. 

On the other hand, what are the limits of Judge Cox's authority? Can he effectively divest City Council of its role in reviewing and approving significant contracts? Does enforcement of the Clean Water Act trump these concerns? What do you think? 

Update (11/20): Earlier today, the Detroit City Council voted to reject the EMA contract. The Detroit News reports (here) about Council's decision. Now what?  

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