Shores considers water options
Much like Grosse Pointe Woods several months ago, the Shores now faces a decision on where to draw its water.
The Shores is currently purchasing water from Detroit, but is facing a steep rate increase and a minimum 30-year contract to continue the arrangement. Three representatives from Hubbell, Roth & Clark, Inc. gave a presentation to city council Tuesday night showing the new city's other options, which include contracting with the Farms or the Woods.
Right now Shores’ residents are paying $12.89/mcf (1,000 cubic feet) for water from Detroit but are facing a 12 percent price increase to $14.40 in 2010. If the Shores signs the contract with Detroit, the 2010 rate will drop immediately to $13.70/mcf instead of $14.40.
Over 66 percent of Detroit’s contracts with local communities have expired, including Grosse Pointe Shores.
“Until you negotiate with them on a contract, you’re paying the highest rate,” said Jamie Burton, of HRC. “There’s actually also a penalty in there. Detroit’s not in any hurry if you want to take you time, but you’re going to pay the higher rate.”
“Detroit is such a wild card,” said councilmember Victoria Boyce. “They’re investing in their infrastructure, but it’s an aging system, and they’re losing their revenue base. It makes me a little uncomfortable to be looking at 30 year projections based on what’s happening with them.”
Burton said one option many cities are considering is a tower reservoir, because it eventually pays for itself and would lower initial rates.
A tank would cost the Shores $1.7 million and hold 300,000 gallons. With a tower, the city can draw water during non-peak hours and use the stored water during peak hours to reduce the water rates. HRC said a tank has an average lifespan of 50 years, but with proper care, could last many more. The potential building site is near the Department of Public Works.
The Shores originally signed with Detroit over 30 years ago because of low rates and pressure problems with the Farms’ system.
Burton said the Shores has argued over water rates with Detroit for 10 years now. The Woods is getting a lower rate from Detroit, yet both are drawing water from the same main in the same location.
Until around 2030, the Woods’ water rates are generally the lowest of the four proposed options, and although the Farms shows the lowest projected rates after that point, the Shores would have to pay money that would go towards plant upgrades.
City Manager Brian Vick said the water rate discussion wasn’t held sooner due to the transition of council, but the finance committee will be looking at the rate numbers further and reporting back to council with their recommendations.
