Unions are going to have to realize that employers and governments can’t afford the same kind of health care and defined-benefit pension plans as when we had full employment at high wages and the Big Three dominated the global automotive economy.
Chambers of Commerce are going to have to realize that there is more to attracting new jobs and business than low taxes.
And everybody is going to have to realize that without a modern, well-functioning infrastructure, we haven’t got a chance.
Which brings me to water. Specifically, the situation in southeast Michigan, where an entity called the Detroit Water and Sewerage Department, or DWSD for short, provides water to four million people -- almost half the state‘s population. The service area extends from the Flint area to Monroe to Ann Arbor.
The system, which is entirely owned and operated by the City of Detroit, also provides wastewater, or sewage services, to three million people. For years, the ownership and management of the water department has been increasingly controversial.
The authority is run by a seven-person board. The mayor of Detroit appoints three suburban representatives, but this seems to satisfy nobody. Those outside the city grumble that they have to buy water from Detroit without any real say in how prices are set or the authority is run. Meanwhile, Detroiters have angrily resisted any suggestion that they should share control of the water department.
There’s also been a nasty racial undercurrent to some of these arguments. Last week, the controversy erupted again when Victor Mercado, a former director of the water department, was indicted for allegedly steering contracts to a crony of Kwame Kilpatrick’s.
Now, a newly elected state representative named Kurt Heise, a Republican from Plymouth Township, says he will sponsor legislation to create a regional authority to run the district, which would eventually evolve into a regional public utility.
Detroiters are certain to oppose this idea -- but it makes perfect sense. Heise has a background in this area; he’s a former director of Wayne County’s Department of the Environment, a job similar to that of drain commissioner.
In the past, water takeover bills have been introduced that were clearly intended as a slap against Detroit. This doesn’t feel like that. “I want to make this a collaborative process,“ Heise says. He doesn’t propose taking ownership of the assets away from Detroit; he just wants the system run in a rational manner.
This really is an idea whose time as come. Though some Detroit politicians are already issuing knee-jerk responses, a regional authority might easily benefit the city too.
Back when he was running the system, Victor Mercado told me that there were some pipes and drains dating back at least to the 1870s, but there was no money to upgrade them.
This could, and should change that.
Clean, safe, reliable and relatively cheap water just might be our region and our state’s biggest asset. We’ve all got a vested interest in not screwing it up.
Mercado and Kilpatrick claimed lots of capital expenditure was needed. Money for pipes, cso basins, failure of mains,etc.
They claimed increasing demand for water demanded more building and investment.
This was a scam.
The demand is decreasing. Mercado and Kilpatrick wanted rate increases every year and increased the spending to private contracts.
Yes, the dept should build certain projects.
Be warned though, private companies like to get work from the water dept and sometimes that work is not needed.
Proper emphasis on good maintenance and operations that support conservation and efficiency will benefit all ratepayers.
Regionalization is more politicians that bring no value to the table just more bid rigging.
We could build anaerobic digesters and use the byproduct,methane, to make electricity. Thats a project that the public should consider.
We should understand that Kilpatrick and Mercado got rid of folks like the camera crew that inspected mains for problems.
They wanted catastrophic failure so they could bid the contracts.
The federal oversight undermined our ability to scrutinize management of DWSD. Judge Feikens fought FOIA requests and relied too much on Mercado and IMG.
More transparency and public oversight,less backroom deals and bid rigging is needed. Regionalization will undermine that process.
Posted by: susan | December 26, 2010 at 11:46 AM
DWSD's northern-customer rates spiraled upward during the Kilpatrick/Ferguson/Mercado period. Mr. Jeff Wright, Genesee County Drain Commissioner, paid Mr. Sam Riddle to "negotiate" with Mr. Mercado for ~ two years, while Mr. Wright openly prepared and lobbied for establishment of Karegnondi Water Authority--managed by himself--to replace DWSD as supplier of water to DWSD's northern customers. What was Mr. Wright asking Mr. Mercado to do...lower rates, which would have undercut Mr. Wright's argument for Karegnondi that DWSD rates would only go up? Or was Mr. Riddle helping to assure that DWSD's rates *increased*?
And, the indictment alleges that Mr. Mercado did business on a pay-to-play basis. Where did Mr. Riddle get the pay-to-play funds, and how would that funds source have benefitted from whatever Mr. Riddle actually was to achieve?
Karegnondi proposes to buy a lot of property and issue a lot of contracts to build a pipeline from Lake Huron to Genesee County. Mr. Wright would control that project.
Where there's smoke there's fire, and it's very smoky around the Karegnondi project and Genesee County these days.
Posted by: JWilly48519 | January 28, 2011 at 02:01 AM