Detroit Water Crisis & Bankruptcy Update

What's been going on with Detroit's created water crisis? Plenty! And the entire shade of bankruptcy seems to be deteriorating.

Stepping back to last month, on July 15 in Bankruptcy Court:

One of the objectors asked the judge to halt water shutoffs that have been taking place as the city's water department -- which is responsible for a large portion of Detroit's debt -- takes a more aggressive approach to collecting on overdue bills.

Rhodes asked a city attorney to prepare an explanation of the water shutoff process, but said he isn't sure whether he has any jurisdiction in the matter --- Mlive

Detroit's Emergency Manger Kevyn Orr, acting on behalf of Governor Snyder found Bankruptcy Court Judge Steven Rhodes wasn't too impressed with the Water Shutoff Program and ordered a halt to the program for 15 days from July 21 to August 4.

“We need to time to make sure our aggressive communications efforts reach customers,” the deputy director of the Detroit Water and Sewerage Department, Darryl Latimer, told Detroit’s bankruptcy judge, Steven Rhodes, this morning in federal court. --- Detroit Free Press

In turn the Emergency Manager passed the situation to Mayor Mike Duggan, an elected official on July 29.

Emergency Manager Order 31 grants to the Mayor authority to manage DWSD and make appointments to the Board of Water Commission. The order amplifies the authority given to the Mayor to manage City operations and make appointments as outlined in Order 20. --- Tell Us Detroit

As the end date for the hold on water shutoffs came around on August 4th, an extension to August 25 was announced through the Mayor's office. Additional details regarding collecting overdue water bills was provided today, as discussed further in the article.

The shut-off program is working to collect $91.7 million in residential overdue accounts (about 52%). Adding overdue commercial accounts (about 55%) to this brings the amount over $175 million.

The Detroit Water Board approved a $5.6 million, 730 day contract with Homrich Wrecking April 24, Contract No. DWS-894, “Water Shut-Off/Turn-On Project,”according to the Board’s minutes.

“The Detroit Water and Sewerage Department (DWSD) is initiating this project to reduce DWSD’s delinquent water accounts,” DWSD Director Sue McCormick said in a letter to the Board. “As part of the overall plan to increase DWSD’s revenue collection, the Department will increase its efforts of water shut-offs for customers with a 60-day or more past-due balance. . . This project will target approximately 70,000 residential accounts throughout the City of Detroit over a period of two (2) years.” --- Voice Of Detroit