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Committee hears redesign after Ross Township withdraws; EGLE loan and corporate hookup push reduce project cost
Summary
Ross Township opted out of the FY25 DWSRF project, prompting a redesign of Richland Township loops. The committee heard that the city has signed a fourth-quarter loan closing with EGLE, and Georgia Pacific will attempt a drive to fund hookups in parts of Cooper Township; staff estimate about $10 million lower project cost from recent adjustments.
Ross Township's decision not to participate in the FY25 DWSRF project prompted staff to redesign the Richland Township portion of the project to close distribution loops, Kalamazoo city staff told the Utility Policy Committee on Jan. 9.
James Baker, the city's Public Services director and city engineer, said the redesign requires some private easements but does not change the overall grant or grant amounts. The city has completed preliminary design submitted to the project engineer (Eagle) and has signed an agreement with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for a fourth-quarter loan closing.
Baker said the revised design still includes the same amount of new pipe to connect affected residential wells and the city's lead-removal and station consolidation projects in the city remain unchanged. "We've submitted and signed agreement with EGLE for a 4th quarter loan closing. So we're moving forward with everything with EGLE on that and we're meeting all milestones currently," Baker said.
Committee members were also told that Georgia Pacific plans a renewed outreach to customers in parts of Cooper Township where the company previously funded water service: GP will make another effort to pay hookup costs and encourage residents to connect at no cost. James Baker said that corporate push would likely reduce the city's project cost and estimated current revisions reduce the project cost by about $10,000,000.
On PFAS, Baker said detections and regulatory thresholds have changed and Michigan now has its own MCLs in force. He said only three monitoring wells currently have detections above the existing Michigan thresholds; federal EPA regulation expected in 2029 could change regulatory limits and open new funding opportunities. "When the new regulations come out in 2029 for PFAS, there's likely gonna be additional funding opportunities," Baker said.
No formal vote was required; staff said the redesign and EGLE loan closing preserve project milestones and funding. Committee members asked staff to continue to monitor PFAS sampling results and regulatory developments and to pursue easements needed for the Richland loop closures.
Ending: Staff will pursue required easements, continue coordination with EGLE, and report progress at future UPC meetings.
