Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure topic
No spam. Unsubscribe anytime.
Council authorizes bonds and tentatively awards construction contracts for multi‑million dollar wastewater upgrades
Summary
City council approved bond ordinances, tentatively awarded two major wastewater construction contracts and authorized related limited‑tax bonds to cover ineligible SRF costs; projects are largely funded through the Clean Water State Revolving Fund and are shared cost allocations among East Lansing, MSU and Meridian Township.
East Lansing city council approved multiple actions Tuesday to advance a package of wastewater treatment and sewer‑collection projects totaling roughly $48.5 million in project costs and authorized related financing and contractor awards.
Council adopted an ordinance authorizing revenue bonds (series 2025) in an amount not to exceed $46,000,000 to fund improvements to the city’s wastewater treatment and collection systems; the ordinance contains an amended findings paragraph addressing covenant tests on historical net revenues. City financial advisers indicated the projects will be financed in part through the Clean Water State Revolving Fund (CWSRF) program at a subsidized interest rate (about 2.5%) and other portions will be covered by limited‑tax general obligation bonds for costs ineligible for SRF financing.
Public Works Director Ron Lacoste outlined two bundled projects: project W2 (operational facilities and treatment optimization improvements at the Water Resource Recovery Facility) and project C2 (partial sewer separation, new stormwater outfall along the Red Cedar River, flow‑control features and sewer improvements in the Milford–Wilmarth–Woodmere areas). Bid results and cost allocations are as follows:
- Project C2: Low bidder Dunigan Brothers, $19,829,116.70 (total project costs include engineering and construction); responsibility for the project splits approximately 93.7% to East Lansing and 6.3% to Meridian Township for applicable portions.
- Project W2: Low bidder FH Paschen, $22,649,000 (bid amount reported); W2 costs will be split approximately 26.67% East Lansing, 40% Michigan State University, and 33.33% Meridian Township.
Staff said both low bidders have relevant experience, and the city’s engineer and consultant reviewed the bids and recommended tentative awards. Council approved tentative awards to Dunigan Brothers and FH Paschen and authorized the city manager to sign the construction contracts contingent on final loan closing and EGLE (state) approvals. Staff said the final SRF loan closing is expected in late August and that SRF financing will cover eligible costs; East Lansing will issue limited‑tax general obligation bonds for ineligible portions, with a separate resolution authorizing up to $6,000,000 in GO limited tax bonds for those costs.
Council also approved a supplemental ordinance to allow the issuance of the revenue bonds and adopted a specific paragraph intended to satisfy prior bond‑test language. Council passed all bond and tentative award actions unanimously.
City staff and bond counsel said the anticipated SRF program loan will be purchased by the state (the bonds will be held by the state under the CWSRF program) at the subsidized interest rate; ineligible costs will be financed by general obligation limited tax bonds sold competitively on the market.
