Sunday, July 20, 2014

Detroit Water Department to Present New Options for Struggling Customers Amid Backlash Over Cutoffs
Detroit solidarity demonstration against water shut-offs, emergency
management, pension cuts and privatization.
Actor Mark Ruffalo joined a large demonstration of activists protesting water shutoffs in Detroit on Friday, July 18, 2014. The gathering was fueled by attendees of the annual conference of the group Netroots Nation, a liberal political organization focused on activism through the Internet. The subject matter of the demonstration expanded beyond the water issue, with members of the crowd chanting "We got sold out, banks got bailed out," expressing opposition to proposed pension cuts and privatization of public services and calling for a "Robin Hood tax."

By Khalil AlHajal | kalhajal@mlive.com
July 18, 2014 at 7:21 PM

Thousands of demonstrators marched from Cobo Center to Hart Plaza to protest water being cut off from Detroit residents with overdue bills on July 18, 2014. The gathering was fueled by attendees of the annual conference of the group Netroots Nation, a national organization focused on progressive activism through the Internet.

DETROIT, MI -- As thousands of demonstrators marched through Downtown Detroit on Friday protesting water disconnections executed at thousands of households with overdue bills, a spokesperson for the city's water department said new options for struggling customers will be presented in court Monday.

Protesters called the water cut-off policy a violation of basic human rights in a massive demonstration fueled by a national gathering of liberal political activists at the annual Netroots Nation conference taking place at Cobo Center this week.

With about 90,000 city residents and businesses behind on their water bills, the Detroit Water and Sewerage Department began more aggressively collecting debt in late March, said DWSD spokesman Gregory Eno.

U.S. Bankruptcy Judge Steven Rhodes took interest in the matter this week after hearing complaints from objectors to Detroit's plan for adjusting $18 billion in debt.

Rhodes summoned water officials to explain the cutoff policy on Tuesday, and ordered the department to present more options by Monday for customers who can't pay.

Eno said Friday that the department will present new options to Rhodes on Monday, but couldn't disclose details.

The department launched an aid program for low-income customers earlier this month.

Eno said about 400 qualifying applicants are participating.

"We continue to urge residents who are having affordability issues to reach out to us for help ASAP," he said.

Most of the households that have been cut off since the collection push began have had their water restored within 48 hours after making payments or arranging payment plans, according to Eno.

In May, about 46,000 notices were delivered to non-paying customers and water was cut off to about 4,500 of them, Eno said.

Shutoffs and reconnections take place every day, and the latest number of homes cut off from water was 4,400 in late June. Some of those were abandoned houses, he said.

Protesters marched from Cobo Center to Hart Plaza in a demonstration that started over the water issue and expanded to various other topics, with members of the crowd chanting "We got sold out, banks got bailed out," expressing opposition to proposed pension cuts and privatization of public services and calling for a "Robin Hood tax."

"We will not allow them to keep pushing the working class towards the bottom," said Rev. Charles Williams II, head of the Michigan chapter of the National Action Network.

"We will stand up and fight back. We will march from Detroit to Lansing until residents have water."

Wanda Hill, a retired water department worker who participated in the march, said the department could do a better job communicating options for low-income customers.

"My job was to listen to the residents who couldn't pay their water bills," Hill said.

"We had to be stern, couldn't make any exceptions for anyone saying they couldn't pay. My concern with the department is they don't educate residents. They don't tell you you can get a payment plan or go to social service programs to help pay. They don't share that."

A panel of United Nations experts last month called the lack of water access for some Detroiters a violation of international human rights.

The city's massive water system is responsible for a large portion of the $18 billion in debt that Detroit is trying to address in bankruptcy court.

A proposal to turn the system over to a regional authority as part of Detroit's complex debt adjustment plan has been stalled in part because the department's difficulty collecting fees from customers within the city.

Suburban leaders have called for assurances Detroit can pay its share for infrastructure improvements if the city were to shift from being a provider to a customer of the water system.

(Related: Suburban water official: Regional deal shouldn't hurt Detroit, but must be fair)

Rhodes is preparing for an August trial that will determine the fate of Detroit's bankruptcy plan for slashing its debt and restoring a healthy level of city services.

MLive reporters Gus Burns, Ryan Zuke and photographer Elaine Cromie contributed to this report.

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