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untanglingwebs
El Supremo
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Cost was a main issue in discussions. The Flint-Genesee water advisory committee said that a typical household might expect a $3 to$4 increase in their bill if a pipeline was built. However, the members of the lapeer County authority were fearful of potential increases if they didn't join.
"Almont Village Councilman Gerald Oakes said the maintenance costs of the pipeline-minus hundreds of thousands of Genesee County customers-could fall on Lapeer County"
"If Flint pulls out our rates will go right through the roof. We'll have no choice but to go with them" Oakes said." |
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Sat Apr 28, 2018 1:27 pm |
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untanglingwebs
El Supremo
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Lapeer County Administrator John Biscoe recommended the county explore the Flint/Genesee options although there were some who believed Flint and Genesee County were just trying to spread the costs as the pipeline had to run through Lapeer County. Biscoe was glad lapeer was in the dialogue and had me with the proposed water authority.
Biscoe noted "What would happen to prices if Flint's off that line We don't know. Water may be a future issue as this county continues to grow. Now may b he time to address it."
Lapeer County commissioners committed to a meeting with Flint-Genesee officials and local community representatives. |
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Sun Apr 29, 2018 8:16 am |
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untanglingwebs
El Supremo
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October 23, 1998, Ron Fonger, Water talks flow into new county concerns
In the event that Mayor Woodrow Stanley accepted anew water contract with Detroit, Genesee county wanted to renegotiate their contract that paid flint a 35% markup on the Detroit water. Tim Herman,Genesee County Commission Chair, was joined by Genesee County Drain Commissioner Ken Hardin in a request to open up negotiations of the 1965 contract.
Herman told the Journal "my definition of cooperation is that both sides win" "The only thing I've seen is one side winning."
David Ready was to take the request to Stanley. He said any final agreement with Detroit might require Flint to reopen the contract. However he said that while council had the final approval of a Detroit contract, only the mayor and his adinistation could reopen the county contract. |
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Sun Apr 29, 2018 8:32 am |
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untanglingwebs
El Supremo
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Hardin expressed concern because a deal with Detroit would extend the county contract. The Flint contract was to end at the close of 2000, however negotiators said that Detroit had made a better offer.
"County officials familiar with the proposal said some parts of the contract would lower base water costs to Flint, but those savings would not necessarily be passed on to the county."
Flint and Genesee County had each spent over $100,000 on studies looking at the feasibility of a new pipeline. While a decision had been planned for November 11, the county officials were doubtful that Stanley would join their opinions since the most recent Detroit offer. |
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Sun Apr 29, 2018 8:45 am |
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untanglingwebs
El Supremo
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Stanley never invited county officials to join the discussions with Detroit Mayor Dennis Archer and Archer denied a county request to form a partnership with Flint for the negotiations.
According to Stanley."his negotiations do not require a 'cheering section'.
County officials believed Stanley had already made a decision without telling them.
According to hardin, modifications were once made in the water contract in 1988 in order to complete a cooperative water project. |
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Sun Apr 29, 2018 8:53 am |
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untanglingwebs
El Supremo
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October 29, 1998, Flint journal, Ron Fonger New Flint water contract with Detroit could lead to lower markup for county
While Flint Mayor Stanley would not invite county official to the meetings with Detroit Mayor Archer, Flint City Administrator David Ready said "a county representative may join the city in informational discussions with Detroit representatives soon.' The meetings were to discuss the rate structure and Flint's role.
Mayor Stanley had also refused the county in their request to form a partnership with Flint to negotiate a new contract with Detroit.
While Ready stated a reduction in the markup to Flint may be appropriate, but that depended on a number of factors, one of which involved helping to pay for the upgrade of the water plant. The State of michigan had mandated a modernization of the 1950's Flint water plant that was now estimated at $40million. Detroit would pay a portion but demanded pssession until bonds were paid off.
Genesee County was under contract until 2013 |
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Sun Apr 29, 2018 9:12 am |
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untanglingwebs
El Supremo
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November 8, 1998, Flint journal, Ron Fonger, Waterline project might be a dry hole; Decision will be delayed
Genesee County officials expressed the belief that Flint Mayor Woodrow Stanley had already made the decision to continue buying water from Detroit. Flint city council President Scott Kincaid also expressed the belief the pipeline was no longer under consideration by the administration at this time.
"I think the Detroit contract and details would have to be significantly more cost to the residents of the city(than a pipeline)" for that to happen, said KIaid.
Hardin told Fonger that the goal was now to work out the best deal possible for the county and suggested water pipeline partners other than Flint.
Part of the Detroit deal was a Flint seat on the DWSD governing board and a favorable new formula for providing Flint with treated water.A Chicago based consultantwas helping with the complex rate structure. |
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Sun Apr 29, 2018 9:29 am |
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untanglingwebs
El Supremo
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September 24, 1998, Flint Journal, Ron Fonger, New Genesee County water line bill: $3 a.month, DUELING ESTIMATES: Local officials predict $3.64 hike; Detroit says 10.
The Flint-Genesee water pipeline advisory committee committee predicted a 9 % per month ($3.64) increase in the typical customer water bill-if sewer charges do not increase at the same time and the pipeline project stays within budget. Sewer charges were not expected to change.
"Flint homeowners pay a combined water and sewer bill."
"Flint pays Detroit $6.04 per $1,000 cubic feet of water , sells it to genesee County at a 35 % markup. The county then sells the water to local participating communities at a rate to cover for distribution and billing costs.
A unit of water is approximately 748 gallons per 100 cubic feet of water. |
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Sun Apr 29, 2018 10:03 am |
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untanglingwebs
El Supremo
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February 11, 1999,Flint Journal, Ron Fonger, Detroit's proposed water rate hikes spurs drive for county line
"Detroit's latest proposal to raise water rates is reinforcing the thinking of some officils that Genesee County should build a $270-million independent water line to Lake Huron."
Detroit officials are proposing a 4.14 percent increase for Flint, which would raise the cost of 1,000 cubic feet of delivered water from $6.04 to $6.29 effective July 1.
Drain Commissioner Ken Hardin commented that the area continued to be held hostage by Detroit and he had no doubts that rates would continue to increase. City council President Scott Kincaid said a new county-city pipeline partnership was in the regions's best interest.
An unnamed top aide to Mayor Woodrow stanley said the rate hike was "no unexpected". Stanley continued to negotiate with Detroit and had canceled meeting with the city-county water advisory board.. |
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Sun Apr 29, 2018 10:24 am |
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untanglingwebs
El Supremo
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The new rate increase when combined with the increase the previous year shows a rate increase exceeding 10% for two years. Prediction are that moe increases were to follow.
"Detroit water officials have said higher costs have been generated by upgrading an aging system and complying with state and federal clean water rules.
Flint City Administrator David Ready brushed off the increases saying either Detroit or the pipeline would have rate increases. Detroit has negotiation that could possibly lower flint's rate increases rather than other Detroit customers.
Opponents note that since 1971 there had been rate increases of over 300 percent and Flint still lacked a reliable water backup plan. |
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Sun Apr 29, 2018 10:35 am |
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untanglingwebs
El Supremo
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Water Summit
3-25-1999, Flint journal Ron Fonger, Water Summit today
3-26-1999,Flint journal, Rn Fonger, Officials encouraged by pipeline summit
Ken Hardin,Genesee County Drain Commissioner and Tim Herman, Chair of Genesee County Board of Commissioners, held a closed door meeting with Flint Mayor Woodrow Stanley about whether Flint would join the pipeline or sign a new contract with Detroit.
It is believed that Stanley favors the latest offer from Detroit. Although Flint was still participating in the water advisory committee,they were also meeting with Detroit to hammer out fine points in a potential contract.
Other county officials, such as county commissioner John Gleason, D-Flushing, wanted to know what it was going to take for Stanley to make a decision. Herman asked where the mayor was going with the decision and when would options be presented.
Flint's own consultant used the data from Detroit's last offer and calculated a rate increase of at least 39% over the next 5 years. |
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Mon Apr 30, 2018 8:00 am |
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untanglingwebs
El Supremo
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Genesee County suburbs, Burton and Grand Blanc Township have been considering creating community well systems for their residents.
The last proposal was to have Flint pay half the costs of the upgrade to the Flint water plant and change the rate formula for Flint. Council would have to approve any contract and there are indications they might disapprove. |
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Mon Apr 30, 2018 8:11 am |
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untanglingwebs
El Supremo
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4-21-1999, Flint journal,Ron Fonger, Rate negotiations find sticking point on water lost in pipe
"Flint City Administrator David Ready and Detroit Director Steven Gorden said the issue remains unresolved, a critical sticking point that will have a direct impact on future water rates in Genesee County."
"In its last contract offer, Detroit officials proposed Flint pay a kind of surcharge-16.7 percent of the total water pumped here-for 'unaccounted for water' according to Alvord, Burdick & Howson, a Chicago-based engineering company."
"The consultant projects Flint's water rate would increase from $6.04 per 1,000 cubic feet to $9.05 by 2002 if Detroit's 16.7 percent charge remains unchanged."
"By dropping the unaccounted for water charge to 6 percent, the city's rate would increase to just $8.37 per 1,000 cubic feet by 2002." |
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Mon Apr 30, 2018 8:27 am |
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untanglingwebs
El Supremo
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Alvord,Burdick & Howson made the recommendation that there is an aggressive negotiation to reduce the unaccounted for water charge. Ready stated the city is already pursuing that path. Detroit is willing to reduce the percentage of unaccounted water to 6 percent.
A typical summer day has 35 million gallons of water pumped to Flint and genesee county.
There will be more rate increases in the future as Detroit planned to spend $1 billion during the next five years to upgrade their aging system and comply with state and federal clean water rules..
Genesee county is under contract to buy Flint water until 2013. |
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Mon Apr 30, 2018 8:37 am |
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untanglingwebs
El Supremo
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Home
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April 29, 2018 12:15 a.m.
In Detroit and Flint, two tales of emergency management
CHAD LIVENGOOD
Staff Blog : Detroit Rising
Crain’s Detroit Business
Mayor Dave Bing (from left), Gov. Rick Snyder and emergency manager Kevyn Orr in Detroit in 2013.
When Kevyn Orr arrived in Detroit five years ago to be Gov. Rick Snyder's emergency manager, the Washington, D.C., bankruptcy attorney described his mission of digging the city out of insolvency as "the Olympics of restructuring."
In Orr, Snyder and his team had drafted a gold medalist of sorts in corporate turnarounds.
And Orr brought with him an expensive dream team of world-class bankruptcy attorneys from his Jones Day law firm, along with some of the best restructuring consultants and financial experts money could buy.
The result of Snyder's unprecedented takeover of the state's largest city culminates Monday when the Detroit Financial Review Commission is set to vote to end its direct oversight of the city's finances after Detroit has achieved three consecutive years of balanced budgets — a feat that seemed inconceivable in the spring of 2013.
At the time Snyder was unleashing the Olympians to fix Detroit's broken municipal government, his caretaker in Flint was making the disastrous decision to shut off its water supply from Detroit and temporarily draw drinking water from the corrosive Flint River.
It's a tale of two approaches the Snyder administration took to state intervention in two cities that were economically decimated by the abandonment of automakers and their middle-class workers.
Detroit shed $7 billion in unfunded liabilities in bankruptcy, freeing up tens of millions of dollars to restore basic services and super-charge an economic revival that's starting to spread beyond downtown and Midtown.
Flint got lead-tainted water, indifference from state bureaucrats and a two-year supply of bottled water.
In Detroit, the city spent $170 million on bankruptcy attorneys and consultants to begin fixing deep-seated municipal dysfunction, including $58 million for Orr's law firm alone.
In Flint, Snyder-appointed emergency managers Ed Kurtz and Darnell Earley switched the city's drinking water source to save about $12 million a year, and then Earley and his successor, Gerald Ambrose, repeatedly refused to go back to Detroit's water system, citing the $1 million a month extra cost the city couldn't afford.
The Snyder administration went along with the decisions of the hometown emergency managers put in charge of Flint's future without much purpose beyond balancing the budget.
And the emergency managers, who were government and business administrators and not chemists, seemingly didn't know to question why corrosion control chemicals at an estimated annual cost of $55,000 weren't being added to the treated Flint River water.
Since the discovery of toxic lead in Flint's water and the bloodstreams of its children, taxpayers have shelled out $350 million for the state's response to the water crisis — nearly as much as the total amount spent on Detroit's bankruptcy attorneys and consultants and the state's share of the "grand bargain" to settle the case.
"Flint did not have the enormous restructuring team to restructure it, and things did not get done, and things got missed," said Bill Nowling, who served as Orr's spokesman and is a longtime Snyder ally.
Nowling, who was Snyder's 2010 campaign press secretary, has studied the Flint crisis closely for a doctoral thesis he recently completed at Wayne State University.
He had a front-row view of Detroit's bankruptcy and then was brought into the governor's office in the winter of 2016 to deal with the crisis communication aftermath of Flint's water emergency.
Nowling says Snyder's corporate management style, tapping a select number of cabinet members to oversee not just their own state department, but others, may have contributed to the epic breakdown in communications and lack of scrutiny from Lansing on why Flint's water was brown and smelly.
Snyder made some state departments "too big to manage," Nowling said.
As Flint's water problems weren't generating alarm among state officials in the winter of 2015, Snyder was in the midst of merging the departments of Community Health and Human Services into one mega-department led by Director Nick Lyon under the guise of an ill-named "River of Opportunity" governing approach to social services.
Lyon is now fighting an involuntary manslaughter criminal charge stemming from the Legionnaires' bacteria outbreak linked to the Flint River water that left 12 people dead.
Nowling, managing director of Lambert Edwards & Associates' Detroit office and a partner in the public relations firm, also points to Snyder's mantra of working in "dog years" as another risk factor in Flint.
Over the last seven years, Snyder has moved at a brisk pace to change state government, lower long-term liabilities and tackle festering issues like Detroit municipal government that his predecessors never dared to touch.
But Snyder's disruption culture also could explain why his top aides and emergency managers did not take time to push back on the so-called experts who told them the brown water spewing from Flint's faucets was just fine.
"They were moving in dog years in both Detroit and Flint," Nowling said. "In Detroit, they had the bandwidth, the team that could do it. In Flint, they didn't."
A mantra of some who seek to disrupt is "Move fast and break things." In this case, Detroit got fixed, and Flint got broken. |
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Mon Apr 30, 2018 9:46 am |
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