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Leaky taxpayer-funded agency faces $3 million water bill

The Lakefront Management Authority has been trying to fix major water leaks for most of the past decade.

NEW ORLEANS — Shockingly high Sewerage & Water Board bills are nothing new in New Orleans, but rarely has anyone seen anything like the $3 million bill one customer received in October.

And, making matters worse, the customer is a taxpayer-funded public agency, the Lakefront Management Authority.

The agency operates public properties outside the flood protection system, including New Orleans Lakefront Airport, South Shore Harbor and Orleans Marina. It’s been trying to fix major water leaks on the airport property for much of the last decade, but even the authority’s leadership was shocked to see $3,042,089 in outstanding charges on one of its two meters.

It usually pays about $16,000 a month for the meter on the west side of the airport, which is listed at the address 0 Downman Road. But that meter showed nearly a million gallons of water used per day in September and October, triggering almost $1.1 million in usage fees for a little over two months.

“The LMA has repaired numerous leaking lines in recent years and has limited resources to address the problems on a comprehensive basis,” LMA Executive Director Louis Capo said, adding that he would be meeting with Sewerage & Water Board officials on Monday to talk about adjusting the bill and finding better ways to monitor for leaks.

LMA officials could not provide a separate bill for the water meter at the address 0 Hayne Blvd., which serves the east end of the airport and the South Shore Harbor marina. But Capo acknowledged it is also higher than normal. In 2019 and 2020, the authority was paying about $8,000 a month for that water line.

Those bills already reflected some leaking lines, according to records provided to WWL-TV in response to a public records request. In September 2020, the authority sent letters to the Sewerage & Water Board asking for its fees to be adjusted. The letters included photos and invoices showing the authority had paid for repairs to leaks on the Downman Road and Hayne Boulevard water mains, proof required for a sewer fee adjustment.

“While we must hold our customers accountable to their water consumption, the Billing Department is able to give a credit for sewer charges caused by water leaks if the customer is able to show – via a plumber’s report or contractor’s report – that the water did not pass through the sewerage system,” the Sewerage & Water Board said in a statement.

“As we strive to do with all our customers, we are working to find a path forward and get the Lakefront Airport/Lakefront Management Authority account in good standing.”

The Sewerage & Water Board has had a number of issues with its billing software that produced erroneous bills. The LMA said it’s trying to determine if the $3 million bill is entirely due to leaks or a combination of the leaks and a billing issue on the S&WB’s end.

But there’s no doubt that infrastructure problems continue at the airport and South Shore Harbor just to the east.

Almost immediately after completing a major runway repair and repaving project, a large sinkhole opened up in a drainage line under the runway, requiring additional repairs. Then, a water line broke under Stars and Stripes Boulevard. Another water line broke under the parking lot at South Shore Harbor, forcing the authority to use a hose from a different line to deliver potable water to the harbor master’s offices.

And just over two weeks ago, on Nov. 30, Airport Manager Chris Henderson sent an email to businesses operating there, notifying them about a water leak on the west ramp and a sewer line that had “collapsed” in front of the historic Art Deco terminal building. The letter informed tenants at multiple airplane hangars that their water would be shut off for several hours.

The sewer line repairs under the main terminal parking lot continued Friday.

LMA board minutes show the agency had to negotiate a settlement with Sewerage & Water Board back in January 2012, to pay off a $325,000 bill after a series of leaks were fixed.

And nearly 10 years later, the problem appears to be getting worse, with taxpayer money going to repairs and outstanding water and sewer bills that are hitting new heights.

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