Detroit Water Department Placed in Mayor's Hands.

[elleng]

Source: AP/ABC

State-appointed emergency manager Kevyn Orr issued an order Tuesday that gives Mayor Mike Duggan control over Detroit's water department.

The move comes as the bankrupt city's massive water system was widely criticized for shutting off service to thousands of customers who were 60 days or more behind on their bills.

Duggan has said Detroit Water and Sewerage Department officials could have been more sensitive in how they handled delinquent bills and the shutoffs. On Tuesday, he promised to have a "new plan shortly" on how to deal with the issue. . .

Orr said his decision to give the department's reins to Duggan "ensures a common focus on customer service and sound management practices that reflects the city's commitment to refocusing its efforts to help DWSD customers get and remain current on their water bills."

Detroit also sells its water service to suburban communities, which bill their residents.

"When some Detroit residents don't pay their bills, those bills have to be paid by other Detroiters," Duggan said. "There is no outside funding from the suburbs, from the state, or from the feds. These unpaid water bills are Detroit's alone."

Duggan said the plan being developed will help customers needing financial help and shorten wait times for those making payment arrangements.

"As for those who can pay and choose not to, we won't force other Detroiters to pay their bills," Duggan said.



Read more: http://abcnews.go.com/US/wireStory/detroit-water-department-mayors-hands-24758242

[jwirr]

1. Is this Major the city manager that the rethugs appointed when they governor took over the city?

[elleng]

2. No.

'Michael Edward "Mike" Duggan (born July 15, 1958) is an American businessman and current mayor of Detroit, Michigan. He was elected mayor in 2013,[2] receiving national attention in part because he is the first white mayor of the majority-black city since Roman Gribbs' tenure in the early 1970s.[3] He received 52% of the primary vote as a write-in candidate,[4] then 55% of the vote in the mayoral run-off in November 2013.'

http://en.wikipedia.org/wiki/Mike_Duggan

State-appointed emergency manager Kevyn Orr issued an order Tuesday that gives Mayor Mike Duggan control over Detroit's water department.

[jwirr]

3. That is rich! I hope he can do something for his city. I suspect that Orr handed it over because it

was in such a mess by now that he wants nothing to do with it anymore.

[LovingA2andMI]

5. No, Duggan is not the Emergency Manager....

HOWEVER.....Duggan, Kevyn Orr and Rick Snyder are "buddies" that bleed Maize and Blue from U of M. Duggan is not more or less innocent than Snyder or Orr. He has just had the opportunity since his "election to off based off of write-in ballots in similar handwriting" to claim "hands off' status to most of Detroit's operational affairs, while E.M. Kevyn Orr had control.

[happyslug]

4. Gives the headache of the Water Department to a person who has NO POWER TO SOLVE IT.

Remember, right now the Major and elected City Council do NOT run Detroit, it is run by the appointed manager, the person who "turned" this over to the Mayor.

Can the Mayor forgive any payments? No.

Can the Mayor set up a payment plan? Yes, but within whatever restriction the Manager imposes (which is to yes, NO for all practical purposes).

Can the Mayor go after the LARGE Companies that have NOT paid they bills? Yes, but again within whatever restriction imposed by the Manager.


My advice to the Mayor, issue an immediate discharge of all arrears and demand money from the Manager to fix the leaks. When the Manager says no to the request for money (and he will), throw up your hands and said without money this problem can not be solved, and thus without control of revenues, you, the Mayor can NOT solve this problem and Demand from the Governor that you be appointed Manager.

[notadmblnd]

9. there is a solution and it'spretty simple

I live in Waterford Mi. We do not get our water from Detroit however, Detroit does process our sewer. But I digress.

The solution- is to add the outstanding water bills to the homeowners winter tax bills. That's how my community handles it. If there is a mortgage on the home, then escrow gets adjusted for that amount the following year and the homeowner's mtg company forwards the money to the city in the tax bill. The homeowner pays a higher house payment the following year.

[happyslug]

10. Most muncipalities do something similar, the problem tends to involved long term renters.

The National recommendation for Water Service is to have it in the land owner's name and thus the landowner, who may also be a landlord has to pay the bill and collect the money from the tenant.

The problem is a lot of landlord wants the Tenant to pay the water and Sewerage bills, and insist on paying of the rent before such bills. The laws in most states make it easy for landlords to evict a Tenant for non payment of rent, and thus Tenants learn to pay RENT and delay other bills. Municipalities tend to wait at least a few months before threatening termination, and if the termination would cause a hardship, just will not terminate (landlords are often not as accommodating, no rent, eviction, most landlords do NOT care if that means someone is out on the street,

Side note: Now some Landlords will work with Tenants on payment of bills, but lets be honest, most landlords need the rent money to pay the mortgage that many have on their rental property, to do repairs to such property, and to pay the real estate taxes, thus most Landlord can NOT AFFORD to keep a Tenant in a rental unit more then a couple of months. The above sounds like I am bashing Landlords, and I was, but I also know they have economic problems that have to be addressed.

In my area (Johnstown PA) most landlords do NOT pay their water and Sewerage bills of their rental property, the Tenant does. It is a constant headache for by Pennsylvania State Law if Water and Sewerage Bills are NOT paid, their become liens on the property. Thus you have Tenants who run up huge Water and Sewerage bills and then move, leaving the landlord with the bill. This was made worse by the practice of the City NOT to stop such service unless someone moves, thus the bill could reflect 10-20 years of non-payment (Worse, several tenants could have lived in the rental unit running up the same bill, the Landlord nor the Tenants ever changing the name on the bill). About 20 years ago, the State stepped in and told the City it had to collect on these bills. It was a mess. Landlords saying they should NOT pay for it was a Tenant's bill, Tenants refusing to pay for they had moved, years before. Many Tenants had died or moved out of the City, so the landlord were stuck with the bill.

I suspect a similar situation in Detroit, no one wanted to terminate anyone thus termination was not done. First, no one wanted to get any of the businesses mad at them, and then see those businesses use the demand for water payment as an excuse to move to the suburbs. Second no one wanted to terminate water to people on welfare, for that meant how do you get the Children on Welfare ready for school? As to the businesses no one is still shutting them off, jobs are important. As to the people on welfare and the working poor, most of whom rent, how does a lien on the property force them to pay? In Johnstown, the Landlords became much more aggressive in making sure the water and sewerage bills were paid (The local Water and Sewerage companies adopted a policy that if the Tenant did not pay a bill, the next months bills went to both the Tenant and the Landlord).

Thus the problem is long term tenants and absentee landlords, both of whom expect the other to pay the water and sewerage bills. How do you make sure the bill is paid? I am sorry, the policy that such water and Sewerage bills always be in the name of the Landlord should be adopted so that if the bills is NOT paid, either the rent has not been paid or the Landlord will lose the rental unit for non payment of the water and sewerage bills. Remember if the rent had not been paid, the Landlord has the right to evict the Tenant, thus if rent is paid the Landlord has the MONEY to pay the water and sewerage bills.

[notadmblnd]

14. I know in Michigan that the water bill goes with the house

making the owner responsible for the bill ultimately. Landlords can and do increase rents annually (usually). All that would need to be done if a landlord is stuck with a water bill at the end of the year, would be to include the cost of water in the rent . The renter then has the choice to pay the increase or move.

If the city of Detroit tied the water bills to the taxes, then if they were not paid up, foreclosure would be the next step.

[sweetapogee]

12. Great Idea!!!

(response intended for notadmblnd #9) You left out one small detail. Refund also the monies paid by those who paid their water bills as required. How far back to do you want to go? Otherwise, great advice for the Mayor!

[notadmblnd]

15. Thanks, but did you see how my idea was shot down by negative nellie there?

I know that it is a very effective solution in the Michigan community that I live in. And I believe it could work for Detroit too.

I don't understand the refund question you asked though.

[wordpix]

6. you can buy a nice house there for $750! That's not a typo

Of course, you might not have water...

http://www.realtor.com/realestateandhomes-detail/6203-Woodhall-St_Detroit_MI_48224_M36311-58447?row=21

[fasttense]

7. Just wait until GE decides to export our water to Dubai

"International free trade agreements may serve to protect foreign or multinational corporations' rights to export U.S. water supplies to other nations." The General Agreement on Tariffs and Trade ("GATT&quot and the North American Free Trade Agreement ("NAFTA) support the international treatment of water as a tradable good or commodity for which prohibitions on transfers could be deemed impermissible export restrictions."

http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=1027&context=wmelpr&sei-redir=1&referer=http%3A%2F%2Fwww.google.com%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3Dexamples%2520of%2520water%2520privatization%2520

Soon ALL our water will go up for trading as just another commodity (thanks to the Supremes). Then it wont be just Detroit that has NO WATER.

[happyslug]

11. To expensive to ship FRESH water to Dubai, but exporting of water is possible.

One of the uses of Free Trade Agreements is NOT only to permit exports to other countries, but to reduce domestic restrictions so to be "Able to compete", i.e. permit export of Mississippi Water to Arizona, for that is NOT that much different then shipping that water to Mexico.

As to Dubai, the cost in fuel to export water from the US would exceed the cost of using distillation techniques to get that same water from the Ocean. Thus exporting of Water from the US to the Middle East is not going to occur (except for exotic "Water" shipped the Dubai, like some rare wine). One the other hand, export of fresh water to the south west is something Dubai may want to invest in, and use the fact they invested in such a plan prevent such plans from being stopped for environmental purposes.

[Judi Lynn]

8. Kick, Rec. n/t

[Franker65]

13. Poor Old Detroit

A friend of mine visited the place recently (even though he was nervous beforehand) but he said the people were really nice and he actually had a great time. Sad to see a city with such a great history slide so much. Nearly half the people there are living in poverty: http://www.statista.com/chart/2493/detroit-comes-first-for-poverty-in-the-united-states/