From rate increases, to mass shut-offs and city worker lay-offs, to privatizing and sub-contracting, the water department under Mercado’s control has failed to serve the citizen’s needs as a public utility.

On February 8th, 2007, City Council held two public hearings about the Detroit Water and Sewerage Department (DWSD). As in the past, citizens spoke out against the proposed rate increase, with complaints that included inaccurate bills, absent customer service, water shut-offs, and water left running in abandoned properties. As in the past, union members stood up to protest the outsourcing, cuts in hours, and lay-offs. As in the past, Mercado stood up and told the City Council that the department needed yet another increase in rates, though the level of service continues to decline while his salary goes up. And, as in the past, the City Council was to hold a vote about whether or not to increase water rates. But this time, things ended differently: the Council voted the rate increase down.

One reason for the change was undoubtedly the work of Michigan Welfare Rights and Call Em Out!!!, whose roving pickets over several weekends last spring visited City Council members who voted in favor of the last water rate hike. Councilperson Kwame Kenyatta, the target of the March 19th picket, spoke out strongly against another rate increase at the afternoon hearing—an announcement met with applause from the citizens present.

All in all, it seems that the council’s trust in Mercado has gone down since the last time rates were reviewed. The Water Affordability Plan that was passed by the council last summer has continued to be stalled by DWSD. According to a press release from the water workers’ unions, AFSCME Locals 207 and 2920, “They now claim that they can only implement the program if this year’s rate increases on Detroiters are more than double the increases on the suburban wholesale rate.” On top of this, the closed door meetings being held to discuss a regional takeover of Detroit’s water system has caused an even larger rift between City Council and DWSD.

Federal District Judge John Feikens (who was given authority over DWSD back in 1977 to monitor the waste water treatment plant’s compliance with the Clean Water Act) has ordered the department to pay consultant Thomas Lewand hundreds of dollars an hour to be “Special Master” of a Working Group that is creating a plan for regional takeover of the water system. It is composed of many of the most powerful political and business forces in Michigan. The working group is being assisted by the Infrastructure Management Group (IMG), that specializes in privatizing the water systems of cities in distress, and will likely manage the Detroit Water and Sewerage Authority.

These meetings are taking place behind closed doors, and not even City Council members know the details of the discussions. At the public hearing on February 8th, council members repeatedly asked Candia Milton, a representative from Mayor Kilpatrick’s office, what had been going on at the meetings. His response was the same every time: “It wouldn’t be prudent for me to discuss what my understanding [of the meetings] are. All I can say is that Mayor Kilpatrick is against the takeover and is making his position known.” He went on to say that Detroit had no intention of giving up any control of the water system, and that they would rather be able to make a profit off of it, possibly by bottling and selling city water.

Confused? So is everybody else. John Riehl, President of AFSCME Local 207, believes that the results of these closed meetings will be announced in the spring, around the time that the city budget is being discussed. “It will be more likely that people are going to be willing to talk about a takeover if they think the department is in trouble,” he said, “if they think they are in a crisis situation.”

AFSCME Locals 207 and 2920 have issued a set of demands to be met before any more water rate increases are implemented. They include stopping water shut offs, ending the subcontracting of city jobs, an end to the use of tax payer money for discussions of a takeover, and the firing of Victor Mercado and the IMG consultants. For more information, contact AFSCME Local 207: 313-965-1601 or AFSCME Local 2920: 313-964-0685