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Detroit Goes Dry

by Marie Mason and Priscilla Dziubek
Sweetwater Alliance Detroit
 

Detroit has been providing water to its residents since 1836, when it first established its water department.  Over the years, the system was expanded to service the growing city and the new suburban communities. One of the unfortunate effects of this was to facilitate flight from the city proper by businesses and former residents by supplying the water needed to support those new population centers.  The Detroit Water and Sewerage Department now supplies high-quality drinking water to 4.3 million people who live and work in Detroit, as well as 125 other communities in southeast Michigan.

Throughout this past decade, many legislative attempts have been made to take control of the water from the residents of Detroit.  Detroit’s water department has been under consistent attack from suburban state representatives. These representatives sponsored House Bill 5788, which would regionalize the department and open the way for large-scale privatization. In many ways, this effort epitomizes a racist lack of confidence in the ability of a predominantly African-American city government to supervise such an important service to the city and surrounding areas. Just as control of Detroit public schools was wrested away from Detroiters by force, this current campaign to diminish the city’s power over its own resources is part of a larger problem with the interactions of the city and the state. The water workers union, Local 207, has loudly labeled the takeover “racist” because first off, it clearly is, but also to urge suburban ratepayers to disassociate themselves from it.

As if this were not enough, it now appears that Detroit’s city government is also willing to move control of the water from the public to the private sector.  The new policy at the water board is summed up by the comments of water department spokesman George Ellenwood, “People need to understand that the days when water bills could go unpaid for great amounts of time are over”.   Last June, Victor M. Mercado was named Director of the Detroit Water and Sewerage Department.  He has worked for a number of major corporate players in international water privatization.  He previously served as Vice President of Thames Water North America, and President and General Manager of Thames Water Puerto Rico (1999-2002), Vice President and General Manager of United Water Delaware and President of United Water Bethel and United Water Virginia (1997-1999).  “We’ve got a vision, and plan to make DWSD a world-class utility”, said Mercado.  Apparently, you can’t be a world-class system if you aren’t a profitable system.

In an effort to make DWSO a more “profitable” (as opposed to more service-oriented), Director Mercado has implemented such austerity measures as: eliminating 598 vacant, budgeted positions; holding managers accountable for their budgets and refinancing capital debt through bond issues. The good director claims that this can be done “without compromising service to DWSO customers”. If managers are held personally accountable for their budgets, is there not a considerable pressure on them to cut off overdue accounts? How can a shut off be in any way described as “good service”?  In a time when Detroit is desperately in need of more decent jobs, can eliminating budgeted public service positions be a responsible measure? Finally, if their bad management practices have in fact brought them to the brink, why should they be allowed to bail themselves out at the public’s expense? This is wrong, especially if they have arbitrarily changed their mission from one of public service to one of private profit.

More moves towards profitability include current and proposed rate hikes for both city and suburban customers. DWSD announced that these rate increases (proposed to begin July 1, 2003) will average about nine percent. These rate hikes make it harder for the poorest among us to have access to clean, safe drinking water.

A major expansion is planned for the system as well. The city has contracted Montgomery Watson to help design and build its record-breaking Water Works Park II. When completed in 2004, this fully automated (read: no jobs), 240-million-gallons-per-day water treatment plant will become a major supplier of potable water to about 4 million people in a 1,000-square-mile service area. This facility, at a cost of $300 million, would also be able to bottle this water for subsequent sale. The idea floated by ex-director Stephen Gordan, and would put Detroit in the position of cutting some residents off of municipal water and then offering that same water for sale to anyone who could pay.

At the same time, an unprecedented water cut-off to delinquent accounts was ordered to occur during the sub-freezing weather of January.  Bear in mind that many Detroit homes are steam heated, losing water meant losing heat.  Also bear in mind that Social Services uses a water shut-off as a deciding factor for removal of children from the premises. The people most affected by these shut-offs are the poor, the elderly, children and the disabled.  As Maureen Taylor of Michigan Welfare Rights Organization says “It's an extreme time we live in when the public utility is cutting off something we all need to live: water. This is a crime against humanity...and what are we going to do [but] fight.  Fight for justice till everyone's water is turned on and never turned off again."

The policy of deregulation of the energy industry has not only led to high, sometimes even exorbitant, prices, but has also lent itself to concealment of shutoffs. Utilities do not report shutoffs in real time, and there are no regulatory agencies that monitor the energy business. We must work to maintain basic human services for all citizens.  That means keeping all public utilities “Public”, where jobs and profits from these services stay in the community.  We must demand that service, and not profit, is the motivating force that defines our utility policy. We must demand a city where people have access to and are provided with clean drinking water, as well as all essential services.

The last thing Detroit needs is a privatized water system.  There are so many examples of the suffering that privatization the community brings to a community.  In Atlanta, they experienced: degradation in water quality, lacking and long coming upgrades and repairs, as well as interrupted availability. This community is currently trying to get out of its contract, as they are so unhappy with the results of privatization. Why repeat the mistakes of other communities?

It is predicted by the United Nations that in 20 – 25 years we will be fighting worldwide water wars. Our children and grandchildren will inherit a frightening future if we do not deal with the water issue now. In the water wars of the future, the Great Lakes will represent the third largest supply of fresh water in the world.  This precious resource will be coveted and targeted by myriads of corporations. If we do not take steps now to protect our water as a common good, to protect access to clean safe water as a basic human right, then we will lose to the corporate interests who want to redefine water as a commodity that only the wealthy can access.

 

 
 

Sweetwater Alliance | 206 S. Oak Street, Traverse City, 49684|  Email: contact@waterissweet.org | Phone: 231-228-5489