ALPENA — A Michigan Court of Appeals ruling this week has essentially sent the years-long water and sewer rate fight between Alpena and Alpena Township back to square one.

The appellate ruling on Tuesday goes against the township’s claim that the two sides agreed on a methodology for determining rates after a day of trial in 2018. The ruling ensures the case will drag out even longer – and become more costly – if a deal isn’t reached between the two sides outside of the courtroom.

Meanwhile, the roughly $3 million in township water and sewer payments deposited in an escrow account during the fight will stay there until another court intervention or an agreement is reached.

The township buys water and sewer services for many of its residents from the city. The two sides have battled in court since 2014, when the city raised rates and the township balked, saying it should be treated as a wholesale customer.

The case was sent to the Court of Appeals after both sides appealed a September 2018 local court ruling that a March 2018 deal between the city and township should stand.

Tuesday’s action by the appeals court leaves three possible avenues for the township:

∫ Resume the trial in 26th Circuit Court where it left off, with a new judge, and wait for a ruling,

∫ request reconsideration with the appeals court, or

∫ ask the Michigan Supreme Court to consider the case.

The township has 21 days to file for a reconsideration by the appeals court or 42 days to appeal to the Supreme Court.

Township attorney Bill Fahey said he believes the appeals judges misunderstood a portion of the facts and arguments. There was an agreement during the local court case, but the city tried to add to it after both boards had voted to approve it, Fahey said.

City attorney Bill Pfiefer said the city is pleased with the court’s ruling and is now waiting to see how the township responds.

Now that it appears the case is back to its beginning, the best way to end the issue quickly is for both sides to reach a deal, Pfeifer said.

“I would hope this would lead back to the table, because the courts can’t order the parties into a long-term agreement,” Pfeifer said. “If we are going to get a deal, it is going to have to be through negotiations. Both sides probably aren’t going to be happy with everything they may get, but we have to find a way to make a deal.”

Township Supervisor Nathan Skibbe said it is likely the township board will determine which direction it wants to go by the end of the month.

“Our timeline as a board will be to discuss this as soon as possible and weigh all of our options,” Skibbe said. “The reality is, however, that both municipalities will have to work together to find resolutions.”

Over the years, both the city and township have claimed the other side refused to bargain. On several occasions, court mediators were hired to help, to no avail.

Steve Schulwitz can be reached at 989-358-5689 at sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpenanews.com.

Michigan Court of Appeals ruling on Alpena, Alpena Township water-sewer fight by Justin Hinkley on Scribd