Commission opposes water dispute being subsidized by other communities
Published on April 15, 2022
Wayne County Commissioners on Tuesday, April 12, approved a resolution opposing how a water rate dispute should be resolved between the Great Lakes Water Authority and a member community.
The resolution proposes the dispute from being resolved by billing ratepayers and other member communities a pro rata amount to cover the debts incurred by the community in dispute with the GLWA.
Wayne County Commissioners Terry Marecki (R- Livonia) and Joseph Palamara (DGrosse Ile) introduced the resolution, which addresses recently announced increases of 3.7 percent for water rates and 2.4 percent for sewer rates by the GLWA for fiscal year 2022-23. The resolution calls for the Wayne County Commission to "expeditiously review the circumstances" contributing to the pending increases, and to "consider alternative options to address the proposed rate increases," including possibly amending the GLWA's Articles of Incorporation which were adopted in 2014.
The increases have caused widespread controversy among GLWA member communities after it was revealed that they are linked, in large part, to an ongoing dispute over claimed unpaid bills by a Highland Park, a GLWA member community.
"This is not about Highland Park, it's about other communities having to pay for services they don't receive," said Commissioner Marecki, who chairs the commission's Committee on Public Services.
Commissioner Martha G. Scott (D-Highland Park), said she believed her community was in the right in its ongoing dispute with the GLWA, but was pleased a copy of the resolution would be sent to Gov. Gretchen Whitmer.
"It was the previous governor who started this whole thing anyway," Commissioner Scott said, referring to the GLWA's creation under former Gov. Rick Snyder.
A copy of the proposed resolution appears below.
RESOLUTION
By Commissioners Marecki and Palamara
WHEREAS, the Wayne County Commission approved a Memorandum of Understanding regarding the formation of the Great Lakes Water Authority between the City of Detroit, the County of Wayne, the County of Oakland, the County of Macomb and the State of Michigan ("MOU"), and the Articles of Incorporation of Great Lakes Water Authority ("Articles"), which collectively helped create and establish the Great Lakes Water Authority ("GLWA" or "Authority"), by Resolution No. 2014-594 on October 2, 2014, and
WHEREAS, the MOU expresses "the parties' expectation that the Authority will use its best efforts to manage the (Water Supply and Sewage Disposal) Systems for the benefit of all Authority customers"; and
WHEREAS, Article 4, Section B(19) granted to the Authority the power to "establish and fix a schedule of rates, fees, or other charges for use of, or services provided with respect to" the systems and "provide for the collection and enforcement of those rates, fees, or other charges"; and
WHEREAS, Article 19 provides that "amendments may be made to these Articles of Incorporation at any time if adopted by the legislative body" of the incorporating municipalities, including the Wayne County Commission; and
WHEREAS, the GLWA recently announced a 3.7% wholesale water rate increase and a 2.4% sewer rate increase to its 87 member communities, including the 43 Wayne County communities for the next fiscal year, which begins July 1, 2022; and
WHEREAS, this increase as well as increases in previous years have reportedly been necessitated to cover nearly $52 million in unpaid bills by one Wayne County community to the GLWA; and
WHEREAS, the recently announced water and sewer rate increases by the GLWA has produced a widespread public outcry of opposition, including a resolution passed by the Conference of Western Wayne, which represents 18 Wayne County communities, on March 11, 2022, requesting that the Wayne County Commission support efforts opposing the payment by GLWA member communities for debts incurred to GLWA by any member community; and
WHEREAS, as an incorporating body of the GLWA, the Wayne County Commission has a strong interest in assuring that the GLWA, through its rate-setting structure, benefits all of its customers.
Now therefore be it
RESOLVED, that the Wayne County Commission on this 12th day of April, 2022 will expeditiously review the circumstances contributing to the pending Great Lakes Water Authority water and sewer rate increases, with an opportunity by the interested parties to be heard, and review and consider alternative options to address the proposed rate increases, including possible amendment to the Articles of Incorporation of Great Lakes Water Authority; and be it further
RESOLVED, that a copy of this Resolution be forwarded to Governor Whitmer, the Detroit City Council, the Mayor of the City of Detroit, the Oakland County Board of Commissioners, the Oakland County Chief Executive Officer, the Macomb County Board of Commissioners and the Macomb County Chief Executive Officer.
Commission opposes water dispute being subsidized by other communities(PDF, 182KB)