News Photo by Steve Schulwitz A resident washes her hands in Alpena on Friday. The cost of using water for things like handwashing continues to climb in Alpena and Alpena Township while both municipalities battle over how much the township should pay the city for water and sewer services. Beginning Wednesday, the two local governments will be in court for a trial over the issue.

ALPENA — After more than a decade of litigation and bargaining, the battle over how much Alpena Township pays Alpena for water and sewer services could soon wrap up.

After a trip from Alpena’s 26th Circuit Court to the Michigan Court of Appeals and back, a civil trial between the two municipalities is slated to begin Wednesday.

Judge Ed Black will preside over the trial, which is scheduled to begin at 8:30 a.m. on Wednesday, continue on Thursday and Friday, and resume April 9 to 11.

“The city and its council are hopeful that the trial will finally resolve the longstanding rate dispute between the parties,” city attorney Bill Pfeifer said in a statement.

Alpena Township did not provide a comment for this story.

Alpena Township buys water and sewer services from the city to provide those services to many of its residents. Township officials have refused to pay rate increases instituted by the city because township officials believe the city should treat the township as a wholesale customer because of the volume of water the township purchases.

Litigation began in 2014 after the expiration of an agreement that established a formula the city used to determine rates charged to the township and the city decided the township should pay the same rate as the rest of its customers. The township balked at that idea.

As the litigation moved forward, the two parties continued to bargain on the side, but made little to no progress over the years.

The two sides have spent millions of dollars on attorney and consultant fees.

In 2017, the circuit court ordered the two sides into mediation. That lasted only one day, however, as city officials didn’t see enough progress to continue.

A settlement appeared likely early in 2018, however, when both governing boards voted to approve “principle terms” for an agreement. That vote wasn’t for 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 terms they’d reached earlier in the year.

Shortly after, 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 again yielded no agreement.

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

During the initial hearing in circuit court, then-judge Michael Mack ordered the opening of an escrow account in the name of both governments. Mack required the township to deposit into that account the difference between the old rates the township had paid and the higher rates the city set for all of its customers.

The township’s latest audit shows $3.6 million in that account as of March 31, 2023.

The audit says Alpena wants the township to pay about $13.5 million in late fees.

Over the last few years, the two municipalities have worked together toward establishing a new authority that would oversee water and sewer operations for both governments.

The two sides reached a draft agreement on a water and sewer authority early in 2022. However, in July, that plan fell apart, setting the stage for the trial.