Sewer Moratorium Lifted; Fewer New Connections Allowed
By Karen Gould

The sewer moratorium placed on Mackinac Island residents and business owners last August was lifted by the city council in late January, two days before it was set to expire. At the same time, council agreed to return to the Island's sewer allocation plan, although it further reduced the number of allowable annual connections. By restricting new sewer connections, say city leaders, it would stretch out the limited capacity of the wastewater treatment facility long enough to complete work needed at the aging plant.

The plant went into operation in 1971.

The decisions were reached during a special meeting between Council and the Board of Public Works Tuesday, January 29. With no boats running and dense fog halting air travel, the meeting was arranged as a six-way conference telephone call.

Also, under consideration by the city is a 10-year, $9.8 million repair and maintenance project at the wastewater treatment plant the board wants to start in 2009. The project includes an increase in the capacity of the facility. The board plans to sell bonds and increase rates to pay for the project.

"I want to make it clear for the record," said Alderman Jason St. Onge at the meeting, "we're only talking about lifting the moratorium today and not exactly what we're going to do at the plant."

Acting on BPW recommendations to lift the sewer moratorium with the condition that the allocation plan be reduced from 15 REUs to 10 REUs a year, during the January 29 meeting, Council also agreed to reduce the minimum number of REUs available for residential use from three REUs to two REUs annually. Under this plan, a commercial development could receive a maximum of eight REUs a year, leaving two for detached single-family homes. REUs are given out on a firstcome basis.

An REU, or residence equivalent unit, is the amount of water a typical four-person household would use. It also equals the 2.8 motel rooms or 250 square feet of restaurant space.

"We if look at the number of REUs we've been actually giving out," said BPW Chairman Tom Lewand, "we've really been averaging about eight or nine a year for the last three of four years."

Alderman Mike Hart cautioned, however, that the past average is no reflection on what could happen in the future.

"I don't want us to find ourselves three years from now with nothing left," he said.

Mr. Lewand then offered to prepare a report for the city council on the number of REUs given out each year. The report would be given to council when the DPW presents its annual budget and the city council would then decide on the REU allocation for the coming fiscal year.

Alderman Dan Wightman questioned the current policy, which offers REUs on a firstcome basis.

Mr. Lewand said it was up to Council if it wanted to place a limit on the number of REUs allocated to a project during a year.

"We discussed it, debated it," said Mr. Lewand, "and decided our recommendation is that there be no change in that."

After setting aside 150 REUs for undeveloped subdivision lots and 10 for public use a few years ago, the city treatment system now has about 70 REUs left before capacity is reached. The amount is not enough to get the city through the next 10 years. To overcome the shortfall in available REUs, the city plans to borrow from the unused subdivision units, returning them once the plant capacity is increased.

The $9.8 million project under consideration would come in two phases. The first phase comes with a $4 million price tag over the next four years and would address the oldest and most critical components of the wastewater treatment facility, although it will not increase the plant's capacity.

"We said to the engineers, 'we can't afford to do everything now," said Mr. Lewand. "'What's the minimum we can do right now and how long can we stretch it out in order to have the least amount of impacts on our rates?'"

Selling bonds to finance the $4 million phase in 2009 and increase water and sewer rates up to 3.5% annually is being considered, said Mr. Lewand, who is working with city accountants. The financial plan and budget would be presented to the city council in March. The city's fiscal year begins April 1.

"We've got to spend the $4 million. It doesn't make sense to try and jump the rates 20% or 30% now to pay for it, we might as well spread it out over the next 30 years, because that's the useful life of the improvements," he said. "So let's bond for it and let's spread out the rest of the repair and replacement to 10 years, because that's as far out as we can stretch it."

City leaders also say they will hold a public hearing, probably in March, to discuss the entire $9.8 million project, which would add approximately 350 REUs to the system at the end of the 10 year project. The increase could extend the life of the facility more than 25 years, officials believe.

"I want complete and total public input in this process," said Mr. St. Onge.

Mr. Lewand agreed to hold the public meeting when the Department of Public Works budget is given to Council. He said they could ask for comments on the future of the wastewater plant, the $4 million bond issue, and rate increases.

"We're happy to present all of that to the public," said Mr. Lewand.

Of the new 350 REUs, about 150 will be held for homes, apartments, and dormitories in Harrisonville, which now are on septic systems. City leaders have been concerned that if the state required Harrisonville properties to connect to city sewer, the facility would not be able to handle the additional load.

An REU is sold to users for $5,587, and Mr. Lewand said it was the BPW's recommendation that the price not be raised. Some people could argue newcomers to the Island should pay a higher cost as the price of having the facility available, he said. There also are Island residents who could have to connect to the system, however, and a higher price could be a financial burden.

The Board of Public Works is exploring options and legalities, he said, including a two-tiered REU cost structure or the availability of grants that would pay REU costs for existing Island residents, who now are on septic systems.

Participating in the joint meeting Tuesday were city council and public works board members, the city attorney, city accountant, and project engineers for the wastewater plant project. In council chambers on Mackinac Island were Mayor Margaret Doud and council members Frank Bloswick, Jr., Mike Hart, Armand "Smi" Horn, Dan Wightman, Jason St. Onge, and Armin Porter. Joining them were BPW members Andrew Doud and Jim Pettit, and Department of Public Works (DPW) Clerk Ellen Putnam. Mr. Lewand telephoned from his Detroit office and board member Victor Callewaert also called from Detroit. From the St. Ignace office of city attorney Tom Evashevski by telephone were BPW member Ron Dufina, DPW Director Bruce Zimmerman, city building inspector Dennis Dombroski, and the Town Crier reporter. Accountants Michael Konicki and Michelle Hadley of Rehmann Robson of Cheboygan participated by telephone, as did project engineer Jack Rafter of Fishbeck, Thompson, Carr and Huber of Grand Rapids.

Concerned that the $9.8 million project would require additional state park land, Mackinac Island State Park Commission Director Phil Porter asked for plan details at a Moratorium Committee meeting January 16. The existing treatment facility is on state land, and any expansion could require more land. Mr. Porter said the park commission would need to approve the use of additional park property.

"If it requires more land," said Mr. Zimmerman, "it is just minimal amounts. I don't know how many square feet that means, but we're talking square feet."

Mr. Porter also asked the Board of Public Works to address the odor that comes from the plant and affects Island visitors and residents, especially those traveling to restaurants, hotels, and homes along Stonecliffe Road.

Mr. Zimmerman said the odor issue would be addressed, although he is not sure when work on the plant would help improve it. He said he will consult project engineers for a solution.

Also at the January 16 meeting, Moratorium Committee member Dan Wightman said he and Island residents are concerned about paying for the project. He said that rate increases could force some people to move off the Island and commute from the mainland to their Island jobs.

"This is going to come back on the people," he said. "I don't want to be paying $10 million to fund some development somewhere. People on this Island paid for the last water and sewer project here. Every time you turn around, someone has their hand out, saying, 'fix this so someone else can build something.'"