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untanglingwebs
El Supremo
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The Flint Water Crisis, DWSD, and GLWA ... - State of Michigan
https://www.michigan.gov/.../Wright_Monopoly_Price_Gouging_Corruption_and_th...
Dec 27, 2010 - The Flint Water Crisis, DWSD, and GLWA. Monopoly, Price Gouging, Corruption, and the Poisoning of a City by. Jeff Wright. Genesee County Drain Commissioner. CEO, Karegnondi Water Authority. Michigan Civil Rights Commission. Flint Water Crisis Committee. November 22, 2016 ... |
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Sun May 06, 2018 5:20 pm |
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untanglingwebs
El Supremo
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Third Amended 1973 City/County water supply agreement (June 28,1973) Resolution # 031236 03EFM 0656
Staff Review
Summary of proposed action: The city of Flint and Genesee County, through the Genesee County Drain Commissioner, have reached an agreement concerning long standing issues regarding underbilling, excessive water rates, failure to pay, and outstanding interest payments due. The parties have set forth their agreement on the implementation of appropriate water rates and the methods by which certain rates will be established for th remainder of the contract period in a document entitled 3rd Amendment to 1973 City/County Water Supply Agreement. This resolution will authorize City Officials to execute this Agreement. |
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Sat May 19, 2018 8:34 am |
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untanglingwebs
El Supremo
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Background:
On June 28, 1973 the City of Flint entered into an exclusive water/sale/purchase agreement with Genesee County, acting by and through the Genesee County Drain Commissioner, which was to extend to the year 2013, and as issues arose over the years regarding the water rates, the City and County entered into a First Amendment to the Water Agreement on March 5, 1981 and Second Amendment to the Water Agreement on March 5,1981 and Second Amendment to the Water Agreement on March 31,1988 . Under the Water Agreement, as last amended, the City voluntarily under-billed principal amount of $8,622,133.14. The City, however, claimed that while we had voluntarily offered a discounted rate to the County, we certainly expected the payment of interest on all unpaid amounts beginning August of 1991. The County countered with the claim that the City of Flint charges excessive, insupportable water rates beginning back as far as 1981. The parties are now desirous of resolving their differences and wish to settle the matter through the execution of a 3rd Amendment to 1973 Water Agreement which establishes certain new water rates, as well as terms, conditions conditions and/or methods by which to determine water rates through the remainder of the contract term. This Agreement also allows for either party to terminate the remainder of the contract term with an appropriate one year notice beginning 2010.
Last edited by untanglingwebs on Sat May 19, 2018 10:35 am; edited 1 time in total |
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Sat May 19, 2018 8:58 am |
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untanglingwebs
El Supremo
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Financial Implications (ie, budget, account information)
1. The rate charged for water prior to this agreement was set at 1.3587 times the rate charged the City by the City of Detroit Water System (DWSD)
2. The new rate for the remainder of the contract includes the following:
a.) Effective June 1, 2002 through December 31st 2003, the base rate (amount charged to the City of Flint by the DWSD) plus an additional flat rate of$125,000 per month;
b.) Effective January 1,2004 the base rate plus an additional flat rate of $102,917 per month;
c.) Effective January 1,2005 and each calendar year thereafter through August 2008 the flat rat will be adjusted for inflation in the amount of any annual average percentage increase in the consumer Price index for Urban wage Earners and clerical
Workers for the preceding calendar year. |
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Sat May 19, 2018 9:17 am |
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untanglingwebs
El Supremo
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d.) Effective June 1, 2002 through August 2008, water delivered through the water distribution system at any point other than the 72" transmission main will be chargeable at a rate established by 24(b) of the Cost of Service and Water and Sewer Rate Study;
e.) effective September 1, 200 though December 31st, 2013, the water rate shall be based upon results of a new water rate study to be commissioned by the City and County jointly as determined in the year 2007.
3. The county will on the signing of the agreement bring all past due bills up to date as well as pay the City accrued interest.
Rationale:
1. the rate based on the cost of water from the DWSD was unfair to the County because of the dramatically increasing costs on an annual basis. This raised the cost of water to the GCDC in excess of the true cost of the city delivering water.
2. A rate study done by a consulting firm indicated that the true cost of water for the current year was projected to be 18% or !, 235,004 (102,917 monthly).
signedd by City Administrator Darnell Earley |
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Sat May 19, 2018 9:33 am |
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untanglingwebs
El Supremo
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The EFM (Edward Kurtz) document (paragraph 3 & 4)
"A first amendment to the Water Agreement was made on or about March 5, 1981, and continued the base pay rate, but established a new and separate rate payable by the County for direct connections to the systems of individual properties outside the territorial limits of the City. This rate is based on the City ordinance for out-city users and increased the rate payable by the County to 2.0 times the base rate for all other connections to the System (the latter wo rates hereinafter are collectively referred toas "the other rates")
In 1981 the Legislature amended Section 1 of Act 34 of the Public Acts of 1917 (hereinafter the "Water Sale Act.) requiring certain municipalities which sell water outside its territorial limits to charge a rate which is "based on the actual cost of service as determined under the utility base of rate making...." |
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Sat May 19, 2018 9:53 am |
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untanglingwebs
El Supremo
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Tue Nov 27, 2018 9:07 pm |
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