Commission approves notice of intent for up to $42 million in sewer revenue bonds for wastewater project

Traverse City’s commission voted Feb. 17 to adopt a notice of intent resolution to issue sewer system revenue bonds not to exceed $42,000,000 to support a large wastewater treatment plant project and to proceed with the Clean Water State Revolving Fund loan process.

Art Krueger, Director of Utilities, told commissioners the $42 million ceiling reflects updated cost estimates, inflation and unforeseen technical design requirements discovered during the 90% design phase. Krueger cited higher foundation and ballast requirements for 20‑foot clarifiers after updated geotechnical information showed high groundwater that may require additional concrete and steel to prevent flotation when vessels are drained for maintenance. He said the estimate also includes a 6% contingency and construction engineering estimates.

Krueger said earlier bond authority of $30 million approved in 2022 was based on then-available data; about $2.75 million of that ceiling was used for prior sewer relocations and wall reinforcement projects. Staff said they will bring more detailed cost and design reports to the commission in early March before final bonding and bid decisions, and that some approved preliminary design costs were being fronted by the sewer fund and could be reimbursed by loan proceeds.

Commissioner Warner moved adoption of the notice of intent resolution to authorize the additional bonding ceiling; the motion passed on voice vote.

Commissioners also asked about odor control; Krueger said odor‑control options had been discussed but significant odor‑control upgrades would increase project costs and that a separate study on odor control is being proposed.