Tag Archive for U.S. District Judge John Feikens

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.

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Rip Off

Weaver/McCormick Flint-GLWA Deal Transforms Water From Obscene Tax To Outright Theft

Flint Mayor Karen I Love Rizzo Weaver and Great Lakes Water Authority CEO Sue McCormick have reached a 30 year deal for Flint to purchase water from the Great Lakes Water Authority. The City of Flint had signed up to purchase its water from the nascent Karegnondi Water Authority in March 2013 and the State of Michigan concurred in April. Everyone in Flint City government, save one councilman, has agreed to source Flint’s water from the KWA. Even Mayor Weaver. Until this week.

The Weaver/McCormick deal has GLWA paying Flint at least $ 7 million a year to cover Flint’s share of the bonds issued to finance the KWA. A total of $ 210 million over the 30 year contact period.

Where will that $ 210 million come from?  GLWA is not the Federal Reserve, they cannot just create money out of thin air. GLWA will extract the money from the victims ratepayers in the other communities it ‘serves’.

Mayor Weaver and CEO McCormick will transform GLWA water rates into yet another exaction imposed upon most of Southeastern Michigan to subsidize Flint. Without any input from those victims ratepayers. A blatant fee as tax evasion of Headlee. Governor Snyder, of course, approves wholeheartedly.

This is government theft, Headlee evasion, and a rich fount of future corruption.

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Yet Another Government Triumph in Michigan

Rewarding Incompetence and Corruption With Your Tax Dollars

Snyder Duggan Orr Image aMayor Mike Duggan startled Michigan yesterday by disclosing that Detroit found the actuarial accrued liability (AAL) in their pension plans to be $ 491 million higher than that calculated in their U.S. Bankruptcy Court Plan of Adjustment. The very expensive Detroit bankruptcy consultants used an outdated version of the IRS Static Mortality Table when calculating Detroit’s future pension payments. Detroit’s unfunded actuarial accrued liability (UAAL) was not the $ 731 million stated in the Plan of Adjustment, rather it was $ 1.222 billion. Big money in a city whose total governmental revenues were $ 1.415 billion in FY 2014. Mayor Duggan blames erstwhile Emergency Manager Kevyn Orr for this little oversight, but others were also responsible.

GLWA Detroit Seal ImageNo word yet from the Great Lakes Water Authority whether all those Detroit Water & Sewerage Department employees they absorbed from the City of Detroit have the same AAL calculation error in their pension funding schedules. You can bet they did, and the suburban geniuses politicians who spent a year doing due diligence also missed it. The DW&SD pension funding schedules were determined by the same very expensive bunglers who wrote the Detroit Plan of Adjustment.

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