Tag Archive for Mark Hackel

Corruption or Incompetence?

Oakland Macomb Sewer Interceptor Costs Now At $ 335 Million And Climbing, Cue The Lawsuits

The City of Sterling Heights announced on their FakeBook page Monday that they have filed a lawsuit against Macomb County over their $ 22.2 million portion of the cost for reconstructing the collapsed Oakland Macomb sewer interceptor (OMI), as apportioned by the Macomb Interceptor Drain Drainage District (MIDDD). Sterling Heights believes that the Macomb County Wastewater Disposal District (MCWDD) “did nothing to abate the conditions that likely caused the December [24th] 2016 collapse”. Sterling Heights believes their contract with the MCWDD covers the operation and maintenance of the OMI interceptor.  This may be a little tricky to prove, since the OMI is actually run by the Oakland Macomb Interceptor Drain Drainage District (OMIDDD), an entity independent of and superior to the MCWDD.

Sterling Heights’ contention is that proper maintenance on the OMI by the MCWDD would have prevented its collapse. Maybe. The OMIDDD has already spent $ 170 million on rehabilitation of the OMI since they bought it in 2009. Supposedly the entire 21 mile length was examined and rehabilitated. That rehabilitation effort ended just months before its December 2016 collapse. That collapse suggests that the OMIDDD rehabilitation didn’t do much good. Anyone care to speculate why? Your choices are corruption or incompetence, or both.

This is now a Michigan wide story because our state government will be providing at least $ 5 million of the $ 75 million repair costs for the December OMI collapse. The much debated $ 3 million legislative grant and another $ 2 million from MDEQ.  That $ 75 million is just the current estimate, for the currently acknowledged deterioration of the OMI. Given the Granholm Administration’s role in suckering Oakland and Macomb counties into the OMI purchase, the State of Michigan probably has a lot more responsibility.

You Betcha! (10)Nuh Uh.(0)

We’ll show you!

You’d better not mess with Detroit! Or, you’ll get what’s coming to you!

The latest shakedown of Taxpayers in Southeastern Michigan took an interesting turn this morning.

Not because of its inaccessible meeting location at Waterworks Park in Detroit.

But, because of something that wasn’t expected during the meeting.

{Oh, you’re gonna love this…}

You Betcha! (13)Nuh Uh.(0)

Southeastern Michigan Water Fight

Last Act of the Detroit Bankruptcy Stumbles Behind a Wall of Secrecy

Water is Money Image 2The final Detroit bankruptcy plan established a 14 June deadline to reach an agreement transferring operating control of the Detroit Water & Sewerage Department’s (DW&SD) assets outside of Detroit to the newly created Great Lakes Water Authority (GLWA). The State of Michigan, Detroit, Wayne County, Oakland County and Macomb County all signed a Memorandum of Understanding (MoU) creating the GLWA late last year, subject to a 200-day due diligence period. Under the MoU, the City of Detroit would receive a $ 50 million annual lease payment from the GLWA while retaining full control of DW&SD assets and operations within the city. Erstwhile DW&SD customers outside Detroit were promised a 4% cap on annual water and sewerage increases for a 10 year period, which have been running above 10% per annum, in residential bills, in most Southeastern Michigan communities.

In point of fact, what has actually been occurring are secret negotiations over future tax increases across Southeastern Michigan. Water rates have become a surrogate form of incremental taxation. These negotiations will set tax fee increment rates for decades into the future. For taxpayers ratepayers who haven’t even been born yet. How are these negotiations going?

No one who knows is talking. Why?

You Betcha! (13)Nuh Uh.(0)