FeedsWater rates could drop in city
Staff Writer
Northville citizens could see a dip in water prices if a new deal with the Detroit Water and Sewerage (DWSD) is finalized.
At the city council meeting Monday night, Director of Public Services Jim Gallogly presented a new contract between Northville and DWSD. If approved, Northville would be the first of 85 communities to sign the contract, which includes a water pressure guarantee and a ‘Me, Too’ clause guaranteeing all communities the most lucrative deal possible.
“In the early 2000s most community contracts with the DWSD expired,” Gallogly said. “Our goal was to create a new deal, so that no one community had a special deal with them. Two years ago we added controls to our water source, that helped us monitor our flow at the source, and as a result of that we’ve been able to reduce our current water rate and negotiate a really good contract.
“It also has a ‘Me, Too’ Clause,” he added. “If we approve this contract, we will be the first of 85 communities to approve this. If, down the road, someone else makes a change to that contract we would automatically get it, if it would benefit us. It seems to be a very good starting point.”
The 30-year contract carries the opportunity for 10-year extensions, with an ability to renegotiate after two years if it proves less then amenable. The contract specifies that existing tanks will not exceed a maximum day flow of 1.59 million gallons per day, and a maximum peak hour flow of 2.22 million gallons per day.
The contract also includes an “exemption window”, which allows citizens to draw all the water they want without impacting negotiated flows from 11 p.m.- 5 a.m. each day. DWSD would also commit to maintaining adequate water pressure for the committed flow rate in Northville.
Council Member Nancy Darga said that she felt that the contract offered a lot of attractive options, but pointed out that high early termination costs implied little wiggle room later on.
“This early termination clause is kind of a ‘death do us part’ clause, because we could never afford the early termination fees,” Darga said. “I’m very impressed with the combined legal efforts to protect the city, and everyone trying to get on the same legal page. I also think the ‘Me, Too’ clause is fabulous. If someone gets a better deal, everyone gets a better deal.”
Mayor Pro Tem Jim Allen worried that although the contact punished the city for exceeding committed flow rates, there was no definitive action against DWSD if water pressure fell below contracted levels.
“What happens if we don’t get enough pressure from Detroit?” Allen said. “If we exceed our flow rate we’re penalized. Where’s the culpability?”
Gallogly said that the innovative new control system made controlling those rates a lot easier.
“We’re not using a significant amount less,” Gallogly said. “We’re just controlling the peaks so that they can’t charge us those high peak prices. The innovative control system we’ve installed directs water into a reservoir and we can set any flow we want. Once it reaches a certain flow rate we close the valve down. We’ve been experimenting with how low we can go and still meet the needs of the community.”
Mayor Chris Johnson said that the contract seemed like a solid one, and thanked Gallogly for his involvement in getting the valuable control system installed.
“Water has been an issue,” Johnson said. “It’s been an outstanding job for a small community, and I want to thank you for what a good job you’ve done. You’ve really been pro-active in this.”
