Haulers warn closure of septage receiving at Alpena plant could force small companies out of business

Local septic contractors and county health officials told the Alpena City Council on May 5 that the city’s decision to stop or restrict acceptance of septage at the wastewater plant will create regional disposal challenges and economic strain for small haulers.

Rich Gillespie, general manager of Alcona Septic Service, said the decision presents a looming operational and financial burden for small septic companies and their customers. Gillespie asked the council for more time or a phased transition, saying some haulers have not yet secured land‑application sites and that costs to customers are already rising. “If we could buy some time…maybe if you could stay open through part of most of the summer,” he said.

Ron (last name not specified) of Oscoda Septic said operators only received notification by letter at the plant and that contractors had limited opportunity to participate before the city raised the per‑gallon rate and moved toward closure. He described haulers’ experience as “wham‑bam” notification and urged the city to lower the recently raised surcharge if the facility will close soon anyway.

Clyde Collins, Alpena Water Utility director, told the council the utility recommended limiting or stopping septage acceptance after reviewing potential state requirements. Collins said forthcoming state oversight from the Michigan Department of Environment, Great Lakes and Energy (EGLE) could require manifesting, sampling and holding of each incoming load, potentially adding holding tanks, on‑site sampling, and long storage times before a load could be accepted. He estimated PFAS testing costs at roughly $350–$550 per composite sample with an eight‑day turnaround and warned the additional sampling and storage could cost “millions” and increase monthly operating costs.

Collins said the utility recommended one of several options: (1) cease accepting septage; (2) cap monthly incoming volume (the utility suggested a cap at 100,000 gallons per month); or (3) accept only septage generated within Alpena County. He said the utility had previously increased the per‑gallon charge to discourage outside loads and to reduce volume in anticipation of higher regulatory costs.

Haulers gave several estimates and concerns during public comment: Gillespie said the city’s surcharge increase (15 cents per gallon) and an earlier rate raise could push typical pumping bills toward about $400 per tank; he estimated roughly 2,000,000 gallons per year had been brought to the plant by haulers but said volumes are not precisely documented in the public record. Gillespie and others warned small businesses that rely on septage disposal could face layoffs or closures if regional receiving options disappear.

Council members indicated they had previously voted on changes to septage acceptance; at the May 5 meeting at least one council member said the council had given contractors time to find alternatives and said they were not changing that prior vote. City staff and the utility did say letters had been mailed to permitted contractors. The city did not vote on a new deadline or extension during the May 5 meeting.

The city did not announce a new mitigation plan (for example, temporary storage investment or coordinated regional disposal agreements) at the meeting; haulers asked the council to consider extending the acceptance period while contractors secure land‑application arrangements or alternative receiving facilities. City staff signaled concern that continuing to accept external septage without additional infrastructure or sampling would expose the wastewater system, and therefore ratepayers, to new regulatory and cleanup costs if contaminants such as PFAS entered the treatment stream.

The item remains under council review; no new council motion or vote to change the previously announced schedule was recorded on May 5. Contractors and the utility requested clearer timelines and specific technical and financial estimates to plan next steps.