Flint Water Fiasco

Fees, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Proposal 15-1, Rent Seeking, Republicans, Taxes

Vultures Over Michigan

by 10x25MM • January 2, 2016 • 9 Comments

Senate Joint Resolution M: Paying for Michigan's Role in the Flint Water Disaster with Roads Funding?

Four Republican Michigan State Senators introduced Senate Joint Resolution M on December 15th to abrogate the just enacted PA 179 (HB 4370) deal which will eventually apply $ 600 million from State General Fund to roads repairs. SJR M replaces this funding by raising the Michigan sales tax from 6% to 7%. The four Republican Senators are:

Ken Horn, District 32
Rick Jones, District 24
Darwin Booher, District 35
Mike Green, District 31

Senator Ken Horn

All four of these Republican Senators voted for every bill in the PA 174 – 180 road funding deal on November 3rd. But now, less than two months later, they want a different – all tax – funding arrangement for additional road work. Legislators’ remorse? Maybe not. Or perhaps remorse over a different situation?

First term Senator Horn was interviewed by Jake Neher of Michigan Radio on Senate Joint Resolution M:

Horn thinks the current plan relies too heavily on shifting money from other areas of the budget – especially with some big expenses on the horizon.
“That has me a little bit nervous,” he said. “If we tie our hands with $600 million out of the general fund, how do we ever manage new expenses?”

What “big….new expenses” cropped up in Senator Horn’s mind over the last 60 days?

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Cronyism, Democrats, Fees, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Proposal 15-1, Republicans, Taxes

2015: Year Of The Big Lie

by 10x25MM • December 30, 2015 • 4 Comments

The Etiquette of Lying Evolved in Michigan This Year

Thomas Sowell just dismissed 2015 as the “Year of the Big Lie”. His view is national, but his observation certainly applies to Michigan politics this year as well.

MDEQ Director Dan Wyant resigned yesterday in an act of contrition over his department’s prevarications about Flint water processing and quality. The Flint Water Advisory Task Force found the Michigan Department of Environmental Quality failed to ensure safe drinking water in the City of Flint. He was followed out the door yesterday evening by his mouthpiece, MDEQ Communications Director Brad Wurfel. The really egregious MDEQ lies were actually formulated by Stephen Busch, a civil service classified ‘engineer’ in the MDEQ Drinking Water and Municipal Assistance Office. No word on his fate, but don’t hold your breath; he is a classified civil servant.

By contrast, MDoT Director Kirk Steudle gets to spend a gusher of new taxpayer dollars gulled from our State Legislature, after his blizzard of lies supporting Proposal 2015-01 failed to impress Michigan voters. Our legislators were far less discerning than their constituents. Director Steudle was all over Michigan in the first quarter poor mouthing MDoT’s resources. He relentlessly promoted an entirely bogus assessment methodology to portray Michigan road conditions in the worst possible light. All the while, the Michigan Auditor General was having a field day revealing MDoT nonfeasance, misfeasance, and waste.

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The Only Genuine Flint Water Expert: Josiah Willard Gibbs

by 10x25MM • October 8, 2015 • 15 Comments

Albert Einstein Called Him "The Greatest Mind in American History."

Josiah Willard Gibbs
1839 – 1903

The second phase of Governor Snyder’s plan to restore Flint’s damaged water infrastructure was announced today. Michigan’s taxpayers will pay the pirates at Detroit Water & Sewerage $ 6 million to reconnect the Flint water system to DW&SD’s Lake Huron water supply. The Charles Stewart Mott Foundation will ante up $ 4 million more and the City of Flint will will pay $ 2 million extra as well. Governor Snyder said: “The technical experts helping the city on its water advisory all agree this move back to the Great Lakes Water Authority provides the best public health protection for children and families.” Note that our devious Governor gives you the impression that the funds will be going to the GLWA. No, they will all be going straight to the pirates at DW&SD unless Flint’s new Karegnondi water pipeline is seriously delayed.

As we pointed out last week, the Flint water distribution system has been seriously damaged by 17 months of amateur chemistry and government incompetence after resourcing their water supply to the Flint River. Incompetent control of water chemistry after April 2014 has dissolved protective pipe linings, allowing lead, iron and steel corrosion which has released lead and iron compounds into Flint’s water on its way to customers. A process called leaching. The finished water coming out of the Flint Water Treatment Plant is seemingly fine, but it certainly isn’t by the time it arrives at their customer’s taps.

Because the damage to Flint’s water infrastructure commenced with this resourcing, a hue and cry went up to reconnect Flint to Detroit water. A logical fallacy. Detroit water did not damage Flint’s water infrastructure when it was used prior to April 2014, at least as far as we know. (Do we really know?) However it cannot – by itself – repair the damage done since. Flint pipes may not have been corroding before April 2014, but they certainly are now. Detroit water is controlled just enough to prevent damage to water infrastructure, but not enough to repair damaged infrastructure. Flint is going to require a distinctly different water chemistry than Detroit.

The technical experts are touting corrosion control plans to stop the corrosion in Flint’s water distribution piping. By corrosion control, they intend to load up Flint’s water with orthophosphate forming chemicals to prevent further corrosion and attempt to restore the protective scale linings in Flint’s water piping. This is the EPA’s stock recommended practice, derived from their statistical analysis of water systems across the nation. The problem here is those statistical analyses were made of more or less functional water distribution systems. Not a heavily damaged system like Flint’s. Flint’s water problems are an ex novo case. The only recent case of lead pipe leaching even close occurred in Washington, DC, but is enough different in its particulars that Washington’s corrective actions do not provide an assured plan of action for Flint.

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Cronyism, Democrats, Fees, Flint Water Fiasco, Government Incompetence, Humor in Michigan, Michigan, Michigan Politics, Rent Seeking, Republicans, Taxes

Flint Water Quality – Michigan Taxpayers Are Going To Pay For It

by 10x25MM • October 1, 2015 • 22 Comments

Amateur Chemistry, MDEQ Lies, All Around Government Incompetence, Social Justice Warriors => Everything Goes Wrong

Usually, when the words ‘Flint’ and ‘lead poisoning’ are used in the same sentence you get a mental image of homicides by gunshot. Likewise, in Michigan, ‘amateur’ and ‘chemistry’ conjures up images of an illegal meth lab fire. Now, however, we have allegations that the City of Flint’s amateur drinking water chemistry is causing high lead levels in children. This story has exploded over the last week and, as usual, the ignorati in the main stream media and Michigan politics are clueless.

Flint’s emergency financial manager switched the city’s drinking water source to the Flint River in April 2014, an attempt to save the ruined city $ 30 million a year – the vigorish being extracted by the pirates at the Detroit Water & Sewerage Department. The same extortion which motivated the Detroit suburbs to create the Great Lakes Water Authority. Using river water was an intermediate step, with the ultimate goal of Flint joining the new Karegnondi Water Authority and resuming Lake Huron sourcing after the new KWA pipeline is completed in 2016.

Unfortunately, Emergency Financial Manager Ed Kurtz did not realize that river water would require much different preparation than the Lake Huron water they had been supplied by DW&SD. He rose in life as the leader of a business school, not as a chemist. It doesn’t appear that Flint Water Treatment Plant’s staff water chemists had a clue, either. Comments made by Governor Snyder at the presser for his Supreme Court nominee Joan Larsen suggest he was neck deep in this decision and also completely oblivious to the technical issues.

Flint residents protested immediately, complaining of poor taste, foul odors, and turbidity (lack of clarity). Much of this unrest was part of a long term drive to oust the emergency financial manager running Flint, the paramount goal of the city’s social justice warriors. It didn’t help that Ed Kurtz raised water rates about 50%, emulating DW&SD’s obscene fees on top of maximum taxes piracy. Public outrage has increased in Flint ever since. Genesee Circuit Court Judge Archie Hayman enjoined Flint’s water rate hike, throwing Flint’s finances back into disorder. Since Judge Haymen’s order was left in place by the Appeals Court and went into effect, Flint water collections have dropped by $ 1.75 million a month.

In all fairness to EFM Kurtz, part of his rate increase was intended to replenish $ 15.7 million which had been transferred from the Flint water fund in 2007 to pay a sewerage overflow settlement. However this entire situation was almost certainly an attempt to quickly balance Flint’s books and wrap up emergency financial management. Lansing was certainly sweating EFM Kurtz to conclude Flint’s restoration in order to shut down the social justice warriors before our 2014 election.

So what is happening here, technically? Will Detroit water fix Flint’s problems? (Hint: No)

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Who’s Missing?

by 10x25MM • September 4, 2015 • 8 Comments

Governor Snyder's New Pipeline Safety Advisory Board: Long on Bureaucrats & Special Interests, Short on Technical Talent

Ruptured Section of Enbridge Pipeline 6B Recovered from Calhoun County, MI. NTSB Image

Governor Snyder filed Executive Order 2015-12 with the Secretary of State yesterday to create a Michigan Pipeline Safety Advisory Board under the aegis of the Michigan Department of Environmental Quality. A response to the disastrous 2010 Enbridge Pipeline 6B rupture in Calhoun County and the agitation against Enbridge Pipeline 5, which transects the Straits of Mackinac.

Meanwhile, Attorney General Schuette completed a binding legal agreement with Enbridge to prevent Enbridge Pipeline 5 from being used to transport ‘heavy crude oil’ under the Straits of Mackinac. This agreement formally implements the first recommendation of the Michigan DEQ Petroleum Pipeline Task Force Report released in July to ban heavy crude oil in Line 5. Sounds good, but Enbridge Pipeline 5 does not now have the pumping horsepower for heavy crude transmission, and the weight of the crude has very little to do with pipeline integrity. Corrosive constituents in the crude, biofouling, and a host of other technical issues are far more important determinants of pipeline integrity. This agreement has great optics, but little consequence.

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Unconstitutional: Great Lakes Water Authority Lease Violates Michigan Constitution

by 10x25MM • June 15, 2015 • 8 Comments

--- Absence of Enabling Legislation Clearly Violates Article III, Section 6 --- 40 Year Lease Period Clearly Violates Article VII, Section 30

Friday, the Great Lakes Water Authority board approved a 40 year duration lease of Detroit Water & Sewerage Department’s assets and operations outside of the city of Detroit. This approval passed by a 5 to 1 vote with only Macomb County’s representative on the GLWA board opposed. The terms of the lease subordinate the DW&SD to the GLWA, a new intergovernmental authority created out of the ashes of the City of Detroit’s bankruptcy by a Memorandum of Understanding.

This deal was constructed as a lease to evade the 1963 Michigan Constitution‘s requirement, under Article VII, Section 25, for a vote of Detroit’s electors to approve the sale of any public utility. However, by constructing the deal as a lease, the City of Detroit is essentially granting a lease franchise covering the DW&SD’s water and sewerage operations to GLWA. The 40 year term of this lease franchise clearly exceeds the 30 year maximum permitted by Article VII, Section 30 of our 1963 Constitution:
Merriam-Webster defines a ‘franchise’ as “ the right to sell a company’s goods or services in a particular area; also, a business that is given such a right”. Exactly the nature of the GLWA lease agreement with the City of Detroit. Should you doubt that the City of Detroit constitutes a ‘company’, Merriam-Webster defines a ‘company’ as “ an association of persons for carrying on a commercial or industrial enterprise”. Exactly what DW&SD has been doing for over 100 years.

State Representative Kurt Heise (R-20th) from Plymouth has challenged the establishment of GLWA under the 1963 Michigan Constitution’s Article VII, Section 28:
Taken together with the 1963 Michigan Constitution’s Article III, Section 5:
it establishes our Legislature’s authority over intergovernmental units. But these two sections do not unambiguously grant the Michigan legislature exclusive authority over intergovernmental units, so there is probably legal wiggle room here. Contrary to Representative Heise’s contention, a good lawyer could make a case that the U.S. Bankruptcy Court could establish the GLWA under Article VII, Section 28 and Article III, Section 5.

However…..

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Southeastern Michigan Water Fight

by 10x25MM • June 10, 2015 • 3 Comments

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

The 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?

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