Still no mediation in water dispute
ALPENA — A mediator who will lead negotiations between the City of Alpena and Alpena Township over water and sewer rates has been hired. Face-to-face talks have yet to begin, however, and if they don’t begin soon both sides may need to return to court.
Late last year 26th District Court Judge Michael Mack set a timeline that required the city and township to hire a mediator and an addition 120 days to reach an agreement over water and sewer rates the city charges the township. He said if a deal wasn’t reached he would consider sending the issue to trial, but also would be open to an extension if both sides were making progress. The deadline for a deal is in April.
The two parties met the first deadline by agreeing to hire Mark Beauchamp of Utility Financial Solutions of Holland. Beauchamp has been requesting information and data about water and sewer and as a result no official meetings have taken place. Because of this, it is likely the city, and township will need to seek an extension from Mack.
Alpena Township Supervisor Nathan Skibbe said although the process is moving slowly, he hopes mediation will help find a solution that will please both sides and avoid going to trial.
“We need to come to a resolution as soon as possible and to be sure the people of the city and township don’t continue to pay these exorbitant fees,” Skibbe said. “I want to reach a resolution and move on to other important issues.”
Alpena City Manager Greg Sundin said he doesn’t feel comfortable predicting when Beauchamp would begin mediation, but said he anticipates an extension from the court would be needed.
“He has yet to set any firm date on when the parties will get together,” Sundin said. “The mediator will have to process the information we provided him and he may have follow-up questions. This is really going to flow according to his schedule. When he feels he’s ready, we’ll likely begin.”
Sundin said both parties are splitting the cost of Beauchamp’s hourly rate, as well as any lodging and travel expenses he has.
When the city raised water and sewer rates in 2014 the township protested and claimed it was a wholesale customer and were entitled to a discount from other customers. It continued to pay the old rates and as a result has amassed a past due balance of $2,961,599, including late fees, as of Dec.1.
Mack ordered a joint, escrow account be created and the township deposit the difference between the old rates and the new ones into it. The city wanted the late fees added to the amount that needs to be deposited, but Mack denied the request. Sundin said the township has been making the deposits as ordered by the court.
“There was a deposit from the last billing cycle,” he said.
Skibbe said during a conference call before the holidays, Beauchamp explained how he would be figuring his calculations to determine what a flat rate for water and sewer would be. He said a flat rate is something that is used by other municipalities.
“We need to have a logical approach in calculations,” Skibbe said. “We feel there has been some disparity over the years.”
As the deadline for a deal approaches, Skibbe said he will work hard to make sure the litigation doesn’t go to trial. He said residents in the city and township have paid enough money in water and sewer rates and fees to pay for the legal battle.
“I will do everything in my power to find a solution that will prevent this from going to trial,” Skibbe said. “I don’t want to string this along any longer than what we need to.”
Steve Schulwitz can be reached via email at sschulwitz@thealpenanews.com or by phone at 358-5689. Follow Steve on Twitter ss_alpenanews. Read his blog, Upon Further Review … at www.thealpenanews.com.