Petoskey hears regional water, wastewater capacity report; officials warned of five‑year strain

Petoskey City Council members on March 17 heard a presentation from Hubbell, Roth & Clark on a regional water and wastewater capacity study that found the city's system is nearing planning thresholds and could require new wells, storage and transmission mains within five to 20 years as township growth increases demand.

The report, presented by Doug Bucherhart, a consultant with Hubbell, Roth & Clark, and Jason Fait, Petoskey's public works director, said the system's six‑year average daily demand is about 1,600,000 gallons per day (gpd), with a historical maximum year pumpage of nearly 2,000,000 gpd and a single‑day peak of about 4,000,000 gpd in 2018. Bucherhart said the city's current operating capacity is approximately 5,000,000 gpd and that the average maximum‑day demand now represents roughly 72% of operating capacity; with projected new connections the report projects the maximum‑day percentage will exceed EGLE's 80% planning threshold within about five years.

Why it matters: Exceeding the 80% planning threshold prompts planning or control measures to avoid supply shortfalls during peak periods such as dry summers. The study lays out short‑term actions and longer‑term infrastructure needs so Petoskey and neighboring townships can sequence investments before demand outstrips capacity.

Key findings and recommendations - Short term (about five years): develop and integrate existing wells at the Anderson well site and construct associated transmission and distribution mains to accommodate near‑term growth areas identified by Bear Creek and Resort townships. - Long term (20‑year planning horizon): additional storage in the upper (east) district and new transmission/distribution mains; the report lists an East District water main and storage tank as the single largest line‑item, shown in the draft estimates at about $19,000,000 and attributed in the presentation to growth located in Bear Creek Township. - Wastewater treatment: the plant as currently constructed has sufficient capacity for the projected 20‑year flows, but staff should continue routine maintenance and monitor organic/solids loads and inflows to avoid process overloads as township flows are added. - Administrative (non‑capital) measures: the consultants and staff recommended demand‑management practices for peak periods such as irrigation restrictions, public education campaigns, odd/even or alternating irrigation schedules, and mailers to reduce summertime irrigation peaks.

On predictability and design standards, Bucherhart said engineers use factors for maximum daily demand and noted weather and irrigation drive large seasonal variance: "one of the things that you'll notice ... it is very affected by the seasons," he said. He recommended planning using maximum‑day analyses while recognizing average‑day metrics for some baseline planning.

Who pays and intergovernmental agreements Fait and the presenters said the city has existing sewer and water agreements with neighboring townships that require the township to bear the cost of upstream upgrades tied to their growth; historically those costs have been passed to developers. "Correct, agreements state that with the township state that it's the township's responsibility, whether they pass that on to developers," Fait said. After construction the city typically accepts the infrastructure and covers ongoing maintenance through water and sewer rates, with outside‑of‑city customers charged higher rates than city residents.

Council questions and public comments Council members pressed staff on administrative controls, rate‑setting and equity of costs. One council member asked whether the city has a plan to implement administrative controls if needed; staff replied no formal plan exists now but said the city manager and legal counsel could prepare a ready‑to‑deploy approach. Residents asked about aquifer impacts from activating the Anderson wells; the presenters said drawdown tests would be performed and capacity limits set by test results to avoid adverse impacts on neighboring private wells.

Other issues raised included biosolids disposal and PFAS: staff noted that land application currently keeps disposal costs lower for Petoskey but that changes in state or federal limits could force landfilling of biosolids, roughly doubling disposal costs per pound in some jurisdictions and increasing rates. Operators said current sampling shows levels within limits.

Votes at a glance - Consent agenda (approval of March 3 minutes, revenue/expenditure report and other routine items): motion passed; roll call recorded as 5–0 in favor (mover: Ms. DeMora; second: Mr. Shields). - Appointment: reappointment of William (Bill) Brown to the Zoning Board of Appeals: motion passed (mover: Ms. DeMora; second: Mr. Shields; roll call recorded as yes). - Collective bargaining: authorized the city manager to execute a collective bargaining agreement with Teamsters Local 214, 2025–2028 (excluding public works employees): motion passed 4–0 (mover: Mr. Shields; second: Ms. Walker).

What's next The report gives Petoskey and the townships an inventory of where wells, tanks and mains are located and preliminary cost estimates for scenarios of growth. Staff said the city is in the process of a rate‑setting cycle and recommended updating a formal rate study about every five years to align user charges to long‑term capital and maintenance needs. Townships and developers will continue to be the primary payers for growth‑driven mains and well development under current agreements, while the city will cover ongoing maintenance from utility funds after acceptance of facilities.

The consultants and staff offered to provide the full study and supporting maps to the council and acknowledged some numbers (cost estimates, service area projections) are preliminary and tied to township master‑plan inputs.