Royal Oak Awaits Word on Water-Rate Hike

Final word on just how much Royal Oak residents will pay this year for water is “just a meeting away,” according to those responsible for the city’s system. 

Word was expected to come Jan. 18 but will now likely come during the Feb. 9 Southeastern Oakland County Water Authority meeting, Royal Oak Recreation and Public Service Director Greg Rassel said. 

“That’s most likely when we’re going to find out,” said Rassel, who sits on the multi-government agency’s board. 

SOCWA, which also includes Birmingham, Clawson and Southfield, among other communities, buys water from the Detroit Water and Sewerage Department. Communities purchasing Detroit water are bracing for an average 7.5 percent increase for water service and 11.5 for sewer service, according to previously announced information. New rates are expected to go into effect July 1. Rates vary for member communities due to a variety of factors, including the distance water needs to be pumped to reach their individual lines.

“Forty-five of 61 communities in this county have some service, water or sewer or both, from Detroit Water and Sewerage Department and they're going to see dramatic increases in their rates,” Oakland County Water Resources Commissioner John P. McCulloch said.    

Royal Oak resident Jeff Butts hopes the news will be a little better than that for his community. “It’s always a concern when you’re talking about an increase,” he said. “It depends on just what it will look like.” 

Suburban communities such as Royal Oak have for decades bought water from Detroit, but many recently have demanded a greater say in the price-setting process. 

Fellow resident Muriel Versagi said she wondered whether suburbanites would ever have greater say over the water they buy. “I know there’s a movement to give us more control,” Versagi said. “It’s going to be interesting to see what happens with that.”

The Feb. 9 meeting is set for 8:30 a.m. at the Beverly Hills Council Chambers, 18500 W. 13 Mile. Other SOCWA members include Berkley, Bingham Farms, Huntington Woods, Lathrup Village, Pleasant Ridge and Southfield Township. For more on SOCWA, visit www.socwa.org. 

On its own, Royal Oak is considering implementing a new meter reading system that could eliminate water bill overcharges for some residents. That computerized system would provide instant, accurate information right to city hall. 

“You wouldn’t see the guys going through your neighborhood reading meters anymore,” Rassel said. That system, however, would also require new meters and city officials have yet to determine how they would be paid for, how soon they could be implemented or even whether they should be installed at all. 

Countywide, McCulloch has joined with other officials in calling for a new regional water authority, but Detroit has long resisted. A 2003 plan passed in the state Legislature, but was vetoed by then-Gov. Jennifer Granholm. Adding fuel to the fire, ex-Detroit Mayor Kwame Kilpatrick and four co-defendants were arraigned Jan. 11 in Detroit, charged in a 38-count indictment from a years-long investigation into corruption – much of it centered on the Water and Sewerage Department. Among Kilpatrick’s co-defendants are Victor Mercado, former head of DWSD, and Kilpatrick’s longtime friend Bobby Ferguson, a contractor whom the government alleges got tens of millions of dollars in rigged contracts for city work – including sewers. Mercardo is charged with forcing legitimate contractors to pay Ferguson as if Ferguson had done work.

“The immediate issues that need to be dealt with would be best handled in the federal court,” McCulloch said. “It’s been a huge battle in the courts and the Legislature, and now it’s time for a meaningful solution. With the suburbs paying the majority of the bills for this system, these communities have a right to have a voice in the operation.”