Alpena, Mich. — A long-standing dispute over water and sewer rates between Alpena and Alpena Township remains ongoing after more than a decade of legal battles. The latest court decision, issued by 26th Circuit Court Judge Ed Black, deemed the proposed water rates unreasonable for Alpena Township, while the sewer rates were upheld. The conflict, laden with escalating attorney fees and community tension, persists as officials seek a resolution.
The litigation, stretching back to a disagreement initiated in 2013 over the abandonment of a 1977 contract formula for setting rates, saw the township protesting increased fees, asserting that the city’s rates exceeded reasonable bounds. The proposed water rates discussed in court ranged from $3.80 to $4.10 per 1,000 gallons for the township for the years 2014 through 2018. Sewer rates were slated to be between $3.60 and $3.75 per 1,000 gallons. Alpena Township criticized these rates as being excessively high, considering they didn’t utilize the full extent of the city-owned water and sewer systems.
During a recent court session, Judge Black pointed out that the water rates suggested by the city provided a higher than reasonable rate of return, prompting a need for revised proposals. The city will again propose water rates at an evidentiary hearing scheduled for November 22, with a potential follow-up date in December if needed. Despite these developments, Judge Black expressed his desire to resolve the dispute before the year concludes.
In the midst of this prolonged litigation, the communities have borne substantial legal and consultant costs. Records indicate that the township’s latest audit, dated March 31, 2023, disclosed $3.6 million sitting in an escrow account established to cover the disparity between old rates and the increased rates imposed by the city.
Adding to the complexity of negotiations, the appellate court previously tossed an initial agreement deemed non-binding, leading to further appeals and mediation attempts that have so far failed to yield a resolution. The state Supreme Court’s refusal to hear the case has returned it to the lower court for continued adjudication.
Moreover, the municipalities have explored options to mitigate the ongoing conflict, including the potential establishment of a new authority to oversee water and sewer operations for both governments. A draft agreement reached in early 2022 fell through, moving the resolution back into judicial hands.
As the communities gravitate towards the end of this conflict, the financial implications are vast, with millions already spent on attorney and consultant fees. A settlement or conclusive court decision could provide the needed roadmap for future operations and community planning pertaining to water and sewer services.
This case highlights the complexities involved in municipal service management and the often intricate legal landscape that can accompany changes to longstanding agreements. The Alpena and Alpena Township dispute underscores the potential for lengthy litigations when consensus on public utility rates fails to be achieved.
In light of ongoing developments, residents and stakeholders are urged to stay informed as the proceedings move towards a hoped-for resolution in the coming months.
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