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Hamtramck approves $5.6M water bond, awards contracts to replace lead service lines
Summary
Council approved a $5.6 million water/sewer revenue bond with roughly half principal forgiveness and awarded construction and management contracts to replace hundreds of lead service lines, with city staff describing a low-interest 30-year loan structure and a plan to replace roughly 590–700 lines.
Hamtramck’s City Council approved a package of actions to fund and execute a lead service-line replacement program after staff outlined a state loan and grant arrangement and presented recommended contract awards.
The CFO told the council the financing would be structured as a $5.6 million revenue bond with roughly 50% principal forgiveness and a low interest rate of about 1% over 30 years; staff said the project will replace several hundred lead service lines (staff cited figures of about 590–700 lines at different points in the discussion). The council then approved the final step to authorize issuance of the bonds.
Council also voted to award two construction contracts to the low bidder, Super Construction, and to retain Hennessy Engineers to provide construction management. Staff listed contract amounts (including 6% contingency) and described the procurement process: the two construction contracts were read into the record at approximately $2,140,249 and $2,423,173 (each including contingency); the engineering/construction-management assignment was presented with a not-to-exceed figure the agenda showed as roughly $319,439.
Staff said the project is funded through the Drinking Water State Revolving Fund (DWSRF) with principal forgiveness on roughly half of the eligible costs, reducing the city’s net debt service. Once the council approved authorization, staff said they would submit final application materials to rating agencies and proceed to closing steps.
Speakers: the CFO reviewed financing terms and staff described bid results; council approved the packages in recorded roll calls. Several council members asked for exact counts and asked staff to clarify differences between the “593” and “700” figures cited for service-line counts; staff agreed to reconcile and provide a final project scope and line count.
Provenance: statements and votes for the bond and contract awards were recorded in transcript segments beginning with the CFO presentation of bond terms (topicintro SEG 1679) and continuing through the contract-award roll calls and construction-management approval (topfinish SEG 1865).
