WATER - When Kevin Orr leaves in Sept. 2014

I think absolutely nothing changes regarding WATER
when Keven Orr leaves Michigan.

The mayor of Detroit Mike Duggan and DWSD Director Sue McCormick
will continue business as usual with Oakland, Wayne, and Macomb.

The Board of Water Commissioners will remain in place
http://www.dwsd.org/pages_n/bowc.html
as well as Drain Commissioners Jim Nash for Oakland County
and Drain Commissioner Anthony Marrocco for Macomb County .
along with Terry Spryszak for Wayne County

Other cities had 2 arms of State power when an Emergency Manager left.

- A transition Advisory Board that met monthly
- A full time City Administer [[which is a state created position)
to serve as overseer in place of the emergency manager.

Veolia is not new to DWSD, they have been partners in the past

From a 2011 contract discussion PC-781 regarding BIOSOLIDS
https://redrundrain.files.wordpress....act-pc-781.jpg

http://dwsdupdate.blogspot.com/search/label/PC-781

Quote:

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Originally Posted by Willi

I think absolutely nothing changes regarding WATER
when Keven Orr leaves Michigan.

The mayor of Detroit Mike Duggan and DWSD Director Sue McCormick
will continue business as usual with Oakland, Wayne, and Macomb.

The Board of Water Commissioners will remain in place
http://www.dwsd.org/pages_n/bowc.html
as well as Drain Commissioners Jim Nash for Oakland County
and Drain Commissioner Anthony Marrocco for Macomb County .
along with Terry Spryszak for Wayne County

Other cities had 2 arms of State power when an Emergency Manager left.

- A transition Advisory Board that met monthly
- A full time City Administer [[which is a state created position)
to serve as overseer in place of the emergency manager.

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I disagree with you, though I admit that any opinions right now are merely speculation. We'll just have to see how it turns out after it happens. One thing I do agree with you on is that any substantive changes with the DWSD won't necessarily take place simultaneously with Kevyn Orr's departure. There may be a basic structure in place, but the whole thing might still take a few months to finalize -- if it even happens at all.

My predictions:

[[1) City of Detroit, which owns the DWSD, leases the water department to a regional governmental authority.
[[2) The new authority, unlike the DWSD, will not have enough seats for Detroit to exert majority control over the management.
[[3) The new authority will make annual lease payments to the city in exchange for losing control. [[The pmts are reported to nearing $40MM/yr, but we will have to see if it happens). Unlikely current money from the DWSD operations, this $40MM could be used toward Detroit's general operating budget.
[[4) In exchange for the $40MM, the suburbs [[and really, the entire region), will avoid a private operator or outright sale of the system.
[[5) The $40MM would not have to result from increased rates, rather, attaching the State of Michigan as a cosigner to the new bonds will lower the interest rates and borrowing cost of the regional authority. The remainder of the $40MM will come from eliminating waste by cutting unnecessary employees from the system.
[[6) Rate hikes will occur., and they cannot be avoided, as there is much deferred maintenance that needs to take place. But they will be capped.
[[7) No one will be happy with the deal, but from a consumer point of view, it is a far better result than letting the DWSD go private.

That's my prediction. But I could be wrong. We will see.

Nolan Finley in an Op Ed piece from Detroit News sheds light on ""re-financing"" it all.
http://www.detroitnews.com/article/2...NION/308180021

The state will step in , since DWSD couldn't sell a bond to anyone in the world.
Snyder has the ability to access revolving funds
from a federally subsidized loan bucket loaned out for capital projects.