Marine City manager gives water project update

$10 million in capital improvement bonds sought

By Barb Pert Templeton

A Safe Drinking Water Project in Marine City, that began in February, has nearly two phases completed but the plan to tackle phase three early next year is prompting concerns from officials due to a lack of funding.

City Manager Michael Reaves gave the city commission an update on the project at an Aug. 7 meeting. He very candidly stated the city had no money for phase three so he was seeking approval to take out $10 million dollars in bonds for the project.

“We are in the midst of getting close, almost three quarters of the work for phase one and phase two, are complete,” Reaves said, noting hookups at individual residences and repairs on specific streets are being completed. He said they will likely do some paving in many areas as well.

Plans for phase three are being completed and that will be a section between the two rivers in the city, he said.

Reaves said while phase one and two were in progress, at the same time, they did immediate repair plans for issues they discovered. He said that’s not the way to go about it but it was the only method available to them.

“What we’d like to do going forward is be able to have an idea of what problems were going to face, get them to a point where we can produce paperwork to allow multiple firms to bid on them and then hopefully get better pricing,” Reaves said. “We’ll also have an understanding of what the repairs will entail.”

Reaves said the engineering piece of the project has begun. It involves taking the CTV material and putting into a recordable format so a contractor can bid on the repair work for sanitary and storm. He said they had a number of groups bid on the engineering.

The lowest bidder was AEW Engineering at $11,200 and Reaves asked the commission to accept that bid.

“It seems to be a little low based on my experience in the first phase and the second phase however they’ve had all our SAW information and they are handling our infrastructure GIS program so they have all the material they needed to make an informed decision,” Reaves said. “So, I’m happy that you would hopefully accept that bid, $11,200, for the engineering portion.”

The commission unanimously approved the bid as recommended by Reaves.

The other two bids for the project were one for $41,000 from Spicer Group and one from A&E Engineering at a bid of $18,700.

The commission also approved a bid from Michigan Pipe Inspection, Inc. of $276,344 for

Jet Vac Cleaning Services and CCTV SAW work. The other two bids for the work were Tel-Vac Environmental for $427,950 and Plummers Environmental Services for $312.200.

So many surprises underground

Under new business on the meeting agenda, number 11 h, Reaves was seeking approval for engagement letters for 2025 Capitol Improvement bonds.

“The two proposals that you just voted on and awarded, I have no money available to pay for those,” Reaves said. “In addition, all the work that will be generated out of those two professional firms, in terms of identifying sanitary and storm issues, we have no funds available to correct those issues.”

Once the ground has been opened up and they find sanitary lines that have collapsed, as was the case in the first two phases, Reaves said then the city is under the gun and mandated to do those repairs before they close the roads and pave over them.

“And we expect many more issues between the rivers in phase three than we saw in phases one and two,” he added.

There are concerns that they will find areas that are dead headed, active lines they aren’t even aware of and even some lines that are original and made of wood.

As part of that processes Reaves said he can’t even put a number on how much all of those repairs will cost or even what the issues will be.

“As we get into it, it’s too late to go out and find funding because then I’m right at the point where I have to have the repairs done and I may have to have additional water valves inserted in order to control our system,” Reaves said, noting that one of the problems that the city has had on this side of the river is an inability to throttle down the system.

As an example, he said just the other day they had a significant water break, an eight-inch main broke free and they were unable to throttle it down.

“A significant portion of the city lost water and we couldn’t get on it,” Reaves said. “We were going out 10, 12 to 15 blocks trying to close off valves to see it that would solve the issue.”

Where to get the money?

The city manager then asked the commission to approve $10 million in capital improvement bonds to cover the upcoming expenses including work at the waste water treatment plant.

The funds would be earmarked for the water project only and should they only utilize $8 million they could utilize the other $2 million for more sewer and sanitary work.

“It can’t be used for anything else other than that,” Reaves said. “Capitol improvement bonds are probably the far best avenue that we have, they sell well and there cheapest. We can get a period of 20 to 30 years.”

Reaves said it’s important to do the process quickly so he will bring the engagement letters at the next commission meeting with a resolution and the process will kick off over a 45-day period.

The bonds will allow Reaves to get his ducks in row in terms of lining up the contracts with the repair crews prior to their scheduled February start date.

“I think this is the safest route because one way or another that moneys going right back into that utility and it’s money we’d have to spend anyway,” Reaves said.

“There’s no getting around it, unfortunately,” Mayor Pro Tem Lisa Hendrick said.

Reaves asked for alternative suggestions and said he’s tried other avenues including grants but it’s just not going to happen.

“At this point here, I need these funds like yesterday,” the city manager said.

Commissioner Jacob Bryson asked when the city would see the bond money, perhaps by November. Reaves said if they stick to the cycle he’s pushing it’s a 75-day process, so yes.

The commission then approved the engagement letter and a formal resolution will be presented at the Aug. 21 meeting.