Committee approves issuing up to $45M in revenue bonds for wet‑weather control projects

The Lansing City Council Committee of the Whole voted unanimously Jan. 13 to approve a bond resolution authorizing issuance of sewage disposal system revenue bonds to fund the next phase of the city's wet‑weather control program.

Mark Jones, Public Service Department, told the committee the bond resolution covers the 2025 project bonds for the Lansing Avenue Pump Station and Equalization Basin and the Combined Sewer Overflow (CSO) O‑19 area. He said the work is being carried out "pursuant to the 2019 administrative consent order." The O‑19 area was described as roughly bounded by West Maple Street to the north, West Saginaw to the south, North Chestnut Street to the west and North Grand Avenue to the east.

Jones said the projects are expected to take about two years. The loan in the resolution is for an amount not to exceed $45,000,000. Total construction cost for the two projects is approximately $51,000,000, of which $44,000,000 is State Revolving Fund (SRF)‑eligible. Jones said the city expects roughly $4,200,000 in principal forgiveness on the loan. He also reported partner contributions: Lansing Board of Water and Light participation at $2,700,000 and Michigan Department of Transportation participation of about $2,200,000. The remaining funds will come from local street, major street, sanitary and general funds.

Bids for the O‑19 project were scheduled to open Jan. 14; Lansing Avenue pump station bids were due Jan. 30. Jones said final bond amounts will be determined after bid results are evaluated. He noted SRF loan interest rates are generally under 2 percent and the loans would be repaid over 30 years.

Vice President Carter moved the bond issuance resolution; the committee approved it unanimously. No additional public testimony on the bond resolution was taken at the Jan. 13 meeting.