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Detroitman
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Username: Detroitman

Post Number: 1014
Registered: 06-2004
Posted on Friday, October 13, 2006 - 10:02 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Bigwigs study sale of Detroit's waterworks
Power brokers seek end to city, suburb fighting

October 13, 2006

BY JOHN WISELY

http://www.freep.com/apps/pbcs .dll/article?AID=/20061013/NEW S05/610130457/1007/NEWS
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Spartacus
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Username: Spartacus

Post Number: 147
Registered: 07-2005
Posted on Friday, October 13, 2006 - 10:52 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The City won't sell one of its "jewels" no matter what.

The Union will do everything in its power to protect their overpaid members.

Suburbs vs. the City.

Many of the issues that make Detroit not work are represented in this situation. Is it really a surprise that our area is such a mess?
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Rjlj
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Username: Rjlj

Post Number: 163
Registered: 11-2003
Posted on Friday, October 13, 2006 - 11:01 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"The City won't sell one of its "jewels" no matter what."

Funny you say this when Detroit is currently selling many of it's "jewels." Everything is for sale in order to save Kwame's azz.
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Futurecity
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Username: Futurecity

Post Number: 373
Registered: 05-2005
Posted on Friday, October 13, 2006 - 11:03 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Detroit needs to use its water as the new oil.

Ration it out at inflated prices and use the profits to rebuild the city. Shakedown the burbs. Shakedown the sprawlers. Build up the city. Simple.

If the burbs and the sprawlers dont like it, then they can build their own $10B system.
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Burnsie
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Username: Burnsie

Post Number: 687
Registered: 11-2003
Posted on Friday, October 13, 2006 - 11:15 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I agree, Futurecity. The suburbs can whine all they want about Detroit's rates. If they want lower prices, they can build their own waterworks. They should've done that a long time ago.
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_sj_
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Username: _sj_

Post Number: 1547
Registered: 12-2003
Posted on Friday, October 13, 2006 - 11:22 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

If the burbs and the sprawlers dont like it, then they can build their own $10B system.




I seem to recall the price being more around $250M when some cities in SE Michigan were discussing it.
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Thnk2mch
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Username: Thnk2mch

Post Number: 412
Registered: 02-2006
Posted on Friday, October 13, 2006 - 11:30 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

If the burbs and the sprawlers dont like it, then they can build their own $10B system.





quote:

I agree, Futurecity. The suburbs can whine all they want about Detroit's rates. If they want lower prices, they can build their own waterworks. They should've done that a long time ago.






Yea, that will teach them. And if you want cheaper insurance, you can start your own insurance company! You don't need any ones help!

The old us vs. them
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Bobj
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Username: Bobj

Post Number: 1228
Registered: 11-2003
Posted on Friday, October 13, 2006 - 11:48 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Sounds like some good thoughts- suburbs stick to the City then the City sticks it to the burbs.That is a good long range plan.

All of SE MI is having issues - maybe regional cooperation on a multitude of issues would be better.
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Jt1
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Username: Jt1

Post Number: 8006
Registered: 10-2003
Posted on Friday, October 13, 2006 - 11:59 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

All of SE MI is having issues - maybe regional cooperation on a multitude of issues would be better.




I agree, the issue is what is deemed regional cooperation and what isn't.

Insurance redlining in the city is our problem, having the bulk of homeless and addicted is our problem. Dealing with an old infrastructure and the pensions of hundreds of thousands are our problem. NSOs are our problem. Subsidizing the arts in the city is our problem. I could go on.

Water rates - well, damn we should be a region and work together. In Se Michigan regionalism might as well mean hypocrisy.

Until people are willing to disuss all regional issues and not only accept what will benefit them will we be able to truly be a region.
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Lowell
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Username: Lowell

Post Number: 3099
Registered: 10-2003
Posted on Friday, October 13, 2006 - 12:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The CofD has assets and liabilities. Among the latter is the burden of caring for probably 80-90% of the metropololis's homeless, disabled, indigent and ex-felons.

Perhaps in exchange for a share of control over Detroit's most valuable asset -- the water supply and sewage treatment -- the Mayor of Warren and others who are crying most loudly would agree to build subsidized low income housing, half-way houses and clinics and move some of that burden to Warren and other thirsty communities.

I continue to find it amazing and amusing how the such communities are so vociferous when it comes to taking the CofD's valuable assets but mum when it comes to taking their share of the metropolis' shared problems.

The fact that the CofD's rates are on the low end by national standards makes their cries ring even more hollow.
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Viziondetroit
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Username: Viziondetroit

Post Number: 835
Registered: 11-2003
Posted on Friday, October 13, 2006 - 12:17 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

savin Kwame ass.. thats such an overused/undeserving statement like all of Detroit's problems started when he got in office. Give me a break...
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Futurecity
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Username: Futurecity

Post Number: 375
Registered: 05-2005
Posted on Friday, October 13, 2006 - 12:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

For decades, thru the CoD Water Department, sprawl has been subsidized immensly. No subsidy, probably a lot less sprawl. Time for the sprawlers to subsidize the rebuilding of Detroit.

CoD Water: $2.09/gallon
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Thnk2mch
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Username: Thnk2mch

Post Number: 413
Registered: 02-2006
Posted on Friday, October 13, 2006 - 1:02 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

Until people are willing to disuss all regional issues and not only accept what will benefit them will we be able to truly be a region.




Jt1, you nailed it.

But some folks will always grab any chance to "get 'em back" or " give 'em what they deserve".

The Water Board topic should be a regional issue, as well as every item you mentioned.
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Jt1
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Username: Jt1

Post Number: 8007
Registered: 10-2003
Posted on Friday, October 13, 2006 - 1:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Future - I agree that the CoD should be able to get a small profit from the otehr communities but it should be regulated like Detroit Edison and Consumers.

Carte Blanche to charge whatever they want certainly will not help the cause.
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Fnemecek
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Username: Fnemecek

Post Number: 2028
Registered: 12-2004
Posted on Friday, October 13, 2006 - 5:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

Ration it out at inflated prices and use the profits to rebuild the city. Shakedown the burbs. Shakedown the sprawlers. Build up the city. Simple.



The problem with that it is most likely illegal.

An inflated price for water, with the proceeds going to Detroit's general fund, could be construed as a tax on the suburbs.

Section 13 of the Municipal Sewage & Water Systems Act (MCL 124.293) specifically stipulates that water & sewage authorities shall have no taxing authority.
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Fury13
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Username: Fury13

Post Number: 1218
Registered: 10-2003
Posted on Friday, October 13, 2006 - 7:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

One thing that everyone always seems to forget amidst all the rhetoric: Detroit is forbidden by Michigan state law from making a profit on delivering water to its wholesale suburban customers (the 125 various municipalities that chose to join Detroit's system). The Detroit Water and Sewerage Department is allowed only to recoup the cost of delivery.
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Digitaldom
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Username: Digitaldom

Post Number: 530
Registered: 08-2004
Posted on Friday, October 13, 2006 - 9:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yeah Fury13 to pay the highest paid official in Michigan Government.. The head of the water department.. That maybe true..

But has anyone opened there books? The suburbs asked got a whole bunch of flak.. if they had nothing to hide.. then why try to hide the books.. Something smells funny and it ain't the sewage
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Futurecity
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Username: Futurecity

Post Number: 376
Registered: 05-2005
Posted on Friday, October 13, 2006 - 9:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Fnem- Interesting about that act. You wouldn't happen to know what year it was signed into law by chance?

Just curious to know if it was before or after the ass-spawn sprawl of the burbs.

And isn't it also interesting how each suburban Detroit community acts as middle man and marks up the cost of water from the CoD Water Dept to their residential customers (some communites 30% or more - so I've heard). Is this a tax? Where does this money go?
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Lmichigan
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Username: Lmichigan

Post Number: 4563
Registered: 10-2003
Posted on Friday, October 13, 2006 - 9:50 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Lowell and a few others hit this directly on its head. Detroit city has been playing forced regionalism for decades and paying the price, and the suburbs only when they can suck the city dry for their own gain. Regionalism is a give in take. Seems to me the suburbs are much more content with taking than the former, and especially considering they exist because of the city.

(Message edited by lmichigan on October 13, 2006)
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Mikem
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Username: Mikem

Post Number: 2889
Registered: 10-2003
Posted on Friday, October 13, 2006 - 9:56 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

http://www.dwsd.org/about/dwsd _fact_sheet_7-28-2006.pdf


quote:

By law, DWSD can only recover the cost for provision of service - it cannot make a profit. For the Fiscal Year (FY) 2006/2007 the Department has an annual operating budget of approximately $355,128,494 million. By Michigan statute, DWSD is a not-for-profit entity. Water and sewer rates are based on cost of service only and the Department receives no subsidies from property taxes.


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Bibs
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Username: Bibs

Post Number: 590
Registered: 10-2003
Posted on Friday, October 13, 2006 - 10:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Politicians fighting over money, power and control. I'm so surprised! I agree with Lowell. Our water rates are very low. Detroit is burdened with many social ills.
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Bobj
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Username: Bobj

Post Number: 1231
Registered: 11-2003
Posted on Friday, October 13, 2006 - 11:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I work for one of the "other" utilities rather than the water Dept. People who live in more densely populated areas subsidize the extension of gas mains, electric lines, telephone lines, etc. Good paying customers subsidize poor paying customers. Customers that don't use any services of a utility (Call Center, Payment Offices, etc) subsidize those who call all the time and make payment arrangements. That is how utilities work in Michigan.

I have been involved with municipalities that wanted to break away from large electric companies and go it alone - it can be done if they are large enough.

The suburbs could possibly break away from the City water and go it alone - it is not like there is a shortage of water around here.

The best thing is for everyone to work together to find a solution that is best for the region.
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Fnemecek
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Username: Fnemecek

Post Number: 2031
Registered: 12-2004
Posted on Saturday, October 14, 2006 - 11:29 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

Fnem- Interesting about that act. You wouldn't happen to know what year it was signed into law by chance?



1955.

quote:

The suburbs could possibly break away from the City water and go it alone - it is not like there is a shortage of water around here.



There isn't a shortage of water, but there is a shortage of a) pipes, b) pumping stations and c) treatment facilities.

Our northern neighbors did a study a couple of years ago to look at the cost of breaking away from Detroit's water system. Because of the infrastucture costs, it would have cost them more than they are currently paying and that was with them lowering the quality standards for water that's being delivered.

Quite frankly, the 'burbs should quit their grand-standing and just make an offer to buy that portion of the system that's north of 8 Mile and west of Telegraph.
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Trainman
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Username: Trainman

Post Number: 233
Registered: 04-2006
Posted on Monday, October 16, 2006 - 6:32 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Livonia broke away with the buses and we can too with water but this is not the answer.

The answer is love, peace, compassion, harmony, treating others with respect, following the golden rule to treat others like we want to be treated and having a big heart to help those less funtunate then us us.

And remember Jesus Saves
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Llyn
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Username: Llyn

Post Number: 1661
Registered: 06-2004
Posted on Monday, October 16, 2006 - 10:01 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

llyn's plan:

(1) Sell a 50% stake in the water system to the suburbs. Or even more. Someone would vote with Detroit on any decision just by accident. Give everyone who uses the system a say.

(2) Take the savings and FIX THE LIGHTING DEPARTMENT SYSTEMS.

(3) I think there would still be money left over. Take that and the savings from the lighting department and move on to the next thing that needs fixed that will save money. Hey. you've got the idea now, figure it out.

(4) At that point we have a water system that Detroit and the suburbs all have a say in... streetlights and power that works... smaller budget demands... and money left over.

I offer this plan free of charge and without consultant fees... but then I have no friends in city government or a criminal record.
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Jt1
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Username: Jt1

Post Number: 8015
Registered: 10-2003
Posted on Tuesday, October 17, 2006 - 12:50 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Llyn - Here is the issue:

The suburbs so not want to pay anything for the water system. They want a free stake of ownership. No plan will ever be offered where money is being paid to the city. It will either stay a city owned asset or will be taken over by a regional authority with not a penny coming to the city.

Regionalism, SE Michigan style.
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Stecks77
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Username: Stecks77

Post Number: 121
Registered: 08-2006
Posted on Tuesday, October 17, 2006 - 8:23 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

We can all expect to pay more for water in the coming years. Its inevitable. Aging delivery systems, sprawling growth, and a lack of water in many parts of the country are all playing a huge role.

Because of this, worldwide and in the U.S., water and the systems that deliver it are a very hot investment right now. Water rights, stocks, infrastructure, etc.

Check out this post from the "Daily Reckoning" on October 4, 2006.

http://www.dailyreckoning.com/ Media/PR100906.html

Here is just a portion of the article:

"The U.S., according to Mayer, the editor of the financial advisory newsletter Mayer's Special Situations, is also on the verge of its own water crisis. "Water is severely mismanaged in the U.S.," said Mayer, "and the consensus seems to be that it is not a matter of if the U.S. will have to invest in this problem, but when." In an "Infrastructure Report Card" issued earlier this year, the American Society of Civil Engineers claimed the U.S. would need "nearly $1 trillion dollars in critical drinking water and wastewater investments over the next two decades."

"In a presentation today at The Agora Financial Commodities and Traders Seminar in Las Vegas, Mayer discussed the global water crisis and its impact on the U.S. stock market. "This issue is gathering more main-stream attention every day," said Mayer. "Well known private equity investors such as the Carlyle Group, J.P. Morgan, and Goldman Sachs have been quietly buying up little known water infrastructure companies."

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