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UPDATED: Alpena, Alpena Township to meet on water litigation

News Photo by Steve Schulwitz An employee of State Street Auto Wash in Alpena sprays dirt off a car while at work on Monday. Tonight, the Alpena Municipal Council and the Alpena Township Board of Trustees will meet in closed session together to discuss the ongoing water rate litigation that has been ongoing since 2014.

ALPENA — The Alpena Municipal Council and the Alpena Township Board of Trustees will meet in closed session together today to discuss the ongoing water rate litigation that has been ongoing since 2014.

Township Supervisor Nathan Skibbe and Alpena Mayor Matt Waligora had no comment on why the two boards will meet or what will be discussed or considered.

Skibbe said it is likely a joint press release could be issued at some point after the meeting.

In 2014, the city sued the township after the township refused to pay a rate increase. Township officials believed the township should be considered a wholesale customer, entitled to lower fees because of the volume of water it purchases from the city for township residents.

Over the last few years, the two municipalities have worked together with the goal of establishing a water authority and reached an agreement on a water and sewer authority draft agreement early in 2022.

They are now awaiting the results of a rate study from a consultant. The findings from the study are expected soon.

The idea of a water authority isn’t a new one. The city put the option on the table in 2014, but the township shot the proposal down.

Most of members on the township board of trustees and department heads at the time have been replaced since then and a partnership via the authority has been a priority since.

In 2017, the Alpena County Circuit Court ordered the two sides into mediation. That lasted only one day, however, as city officials didn’t see enough progress being made to continue.

A settlement appeared imminent early in 2018, however, when both governing boards voted to approve “principal terms” for an agreement. That vote wasn’t on a deal on rates, but on seeking a process for establishing rates that could end the dispute.

After continuing negotiations failed to yield a deal, the local court essentially ordered the two sides to adhere to the “principal terms” they’d reached earlier in the year.

Shortly afterward, however, the township appealed a portion of that ruling to the Michigan Court of Appeals, and the city filed a cross appeal. The appellate court also ordered mediation, which also yielded no agreement.

The appeals court ruled that the proposed agreement being considered earlier was non-binding, which the township appealed to the state Supreme Court, which declined to hear the case, and sent it back to circuit court in Alpena.

So far, more than $2 million has been spent on attorney and consultant fees during the litigation.

The closed session is part of the council’s regular meeting, while the township called a special meeting to be able to meet with the city.

Waligora said he didn’t expect any action to be taken after both boards return to open session.

The council meeting is slated to start at 6 p.m. with the closed session beginning about 7 p.m.

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