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Council hears $20M bonding plan for water and sewer repairs; staff lists priority projects
Summary
City staff reviewed a prioritized list of water and sewer infrastructure projects they recommend funding through a not-to-exceed $20 million bond issue and told council the water fund can cover the projected annual debt service.
City staff reviewed a prioritized list of water and sewer infrastructure projects they recommend funding through a not-to-exceed $20 million bonding proposal and told council the water fund can cover the projected annual debt service.
Public Works staff outlined major items: a Huntington-area sewer connection to the Downriver wastewater tunnel (bids opened; low bidder $5.2 million), Lonsdale (Loneswell) pump-station repairs and wet-well work, structural lining for large-diameter sewers, targeted manhole rehabilitation, and multiple water-main replacements including Clark Avenue and Dundee Street. Staff said the Huntington connection was selected after modeling and studies showed it was the most feasible solution to repeated basement backups; staff said the last event affected about 40 basements.
Staff said bond counsel projects an interest rate of roughly 4.25% for a 20-year issue and estimated annual debt service around $1.5 million, which would be funded through the water fund and incorporated in the budget. Staff noted about $10 million in existing cash flow in the fund would mitigate near-term impacts. The proposed bonding measure triggers a notice-of-intent and a 45-day citizens’ petition window; staff said residents would need to collect signatures from 10% of voters in the last election to force a referendum on the measure.
Council members asked technical and legal questions: how the projects respond to specific flood events, whether the city coordinates road and utility work, manhole rehabilitation techniques and pilot tests for interior manhole spray liners, and whether federal appropriation routes had been pursued. Staff said the SAW (sewer and wastewater asset management) grant helped prepare the CIP and noted federal grants are possible but carry procurement and ‘‘Buy America’’-style requirements that can limit material choices.
No formal action to issue bonds was taken at the meeting; staff said the next step would be to place a notice-of-intent on the next council agenda for a not-to-exceed $20 million bond so the council can begin the 45-day process and, if desired, move to publish and schedule the bond sale following required steps.
