Historic Water Deal Means Higher Rates for Suburbs

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Macomb County casts dissenting vote in deal, which Oakland County exec calls a monopoly, but the best deal possible under circumstances.

Water customers in Macomb, Oakland and Wayne counties will see higher rates under a historic deal signed Friday that leases Detroit’s water and sewage system to a regional authority for 40 years.

The formal vote establishing the Great Lakes Water Authority does give suburban leaders a long-sought voice in the operation of the troubled department, which serves 4 million metro Detroit customers, The Detroit News reports.

It’s unclear how much rates will increase under the deal, which was approved, 5-1. The deal calls for annual payments of $50 million, plus another $50 million a year for pension costs and to create a fund to help struggling customers pay their bills.

The deal was negotiated in secret by a federal mediator after tensions over the past months threatened to derail the talks. Oakland and Macomb leaders were skeptical about the lease. On Friday, Detroit Mayor Mike Duggan said the deal is historic step toward “resolving decades of conflict between Detroit and our suburban neighbors.”

At a news conference, Oakland County Executive L. Brooks Patterson said the deal creates a monopoly, but was the best deal the suburbs could make.

“There is a sense of reality that really encompassed the whole 200 days of negotiation, and that was, there is only one game in town,” Patterson said. “If you want water, you have to buy it from Detroit. It is a monopoly. We are trapped in it. So knowing that, we tried to carve out the best deal that we could.”

The lone dissenting vote came from Brian Baker, Macomb County’s representative on the five-member water authority board.

“Unless someone can tell me this bad deal is better than no deal and the alternative will be worse, I cannot vote in favor of the agreement,” said Baker, who is also the budget director for the city of Sterling Heights. “A bad deal doesn’t help the region.”

Macomb County Executive Mark Hackel, who has criticized the lack of transparency in the negotiations, said Friday he was disappointed the deal went through.

“I’m not comfortable with this at all,” he said. “Our local communities aren’t comfortable with it either and they’re the ones who should have been dealing with this from Day One.”

In a statement, Wayne County Executive Warren C. Evans said the decision gives Wayne County” a voice in how the system is managed, and an important voice in how we can best protect our most vulnerable customers.”

The deal “is far from perfect,” he said, but added he is “satisfied that the due diligence that has been done provides a well-negotiated deal that paves the way for us to move the water and sewer systems forward together.”

The water authority board will assume operations of the water and sewage system Jan. 1.

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