Government Incompetence

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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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