DWSD Water Master Plan to Reduce Costs

At a special joint meeting Wednesday, July 8, officials with the Great Lakes Water Authority – the new regional water authority – and the Detroit Water and Sewerage Department received an update on the Detroit water department’s master plan.

The five-year master plan is projected to save the city about $40 million annually in operating costs. These savings would come from closing operations at one of five water treatment plants, and scaling back energy costs and implementing similar changes designed to accommodate declining water sales.

Jim Fausone, Fausone Bohn partner and chairman of the DWSD Board of Water Commissioners, says a primary benefit of the plan is helping leaders in Detroit and the suburbs avoid future water rate hikes. Jim was quoted in the Detroit Free Press Wednesday saying, “The best we can do is drive out of the cost structure any excessive costs. That’s part of what the water master plan does.” Jim says it is reasonable to expect the DWSD board to take up the master plan in September. 

Canton Could Save $10 Million with Joint Water Venture

Jim Fausone, managing partner of Fausone Bohn and the Chair of the Board of Water Commissioners for the Detroit Water and Sewerage Department (DWSD), helped arrange the latest round of talks that could result in a savings of almost $10 million for Canton, Michigan.

The savings could be realized if Canton held off on a proposal to build its own water-storage facility and instead opted to lease or buy a portion of a DWSD station on the township’s north end. Rather than spending as much as $10 million to build a water tower or ground-level storage facility, Supervisor Phil LaJoy said Canton may spend as little as $1 million through the proposed joint venture.  

Fausone says that in addition to Canton trimming its costs, DWSD could offset operational costs under a long term lease.

The talks of a Canton-DWSD joint venture come on the heels of an announcement of a new regional water authority, which holds promise to address the problems that have long plagued DWSD. Under Fausone’s leadership the past several years, DWSD has already made great strides in its internal operations.

The soon-to-be Great Lakes Water Authority will build upon the progress, providing suburban customers with greater control and stability in their water rates. Though many suburban officials have long eyed DWSD with suspicion, Fausone implored local leaders to judge the department by what is happening now rather than focusing on past mistakes.

If you have environmental, municipal or water related issues, you can contact Jim Fausone at (248) 380-1818.

To read more on this story, check out the Canton Observer’s Report:

http://www.hometownlife.com/story/news/local/canton/2014/09/17/canton-water-storage-rates/15771693/

Detroit Water and Sewerage Department Announcement

Matthew Worley

Our own Jim Fausone, Chair of the Detroit Water and Sewerage Department’s Board of Water Commissioners, took part in an important announcement yesterday.  The Department is making some bold changes – changes that are expected to result in annual savings of $149 million.

Mayor Dave Bing, Director Sue McCormick, and the Board proposed a broad restructuring of the department.  This includes the elimination of about 1,600 of its 1,978 jobs over the next five years.  The plan also provides for job redesign, outsourcing, technology improvements, and new training.

Part of the inefficiency now is that department employees have inflexible and narrow job descriptions.  The new plan increases efficiency by cross-training employees to perform multiple functions. 

Presently, the department anticipates annual rate increases for its customers to be around 8%.  After putting this plan in to place, that number is expected to decrease substantially.  In other words, these measures will limit the annual increases in water rates for everyone.

As expected, there is some resistance from the local 207 union of State, County, and Municipal Employees who oppose the plan because of the jobs that will be eliminated.

To learn more or see the original article, please visit:

http://www.wxyz.com/dpp/news/region/detroit/detroit-mayor-looks-to-save-149-million-annually-with-job-cuts-and-restructuring-water-dept