Plan Would Remedy Mackinac Island's Wastewater Woes
Preliminary Suggestions: Fewer Connections, Annual Rate Hikes
By Karen Gould

Allowing fewer new connections to Mackinac Island's sewer system and annually increasing rates are part of a preliminary plan being considered by the Board of Public Works. The plan, which is expected to be modified in the next couple of weeks, would help fund a $9.8 million project to maintain and upgrade the Island's aging wastewater treatment facility and increase its capacity.

Under a 10-year plan, residents could see rates rise from $6.33 per 1,000 gallons to $21.82 by 2018. To prolong the usefulness of even a new treatment facility, the board is proposing lowering the number of REUs that can be purchased each year. 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.

Meeting for the second time in a week, the board discussed the twostep plan Wednesday, January 16, in which it will recommend the city's 180 day sewer connection moratorium be lifted January 31 and that the annual allocation of REUs be lowered from 15 to 10. The current allocation dictates that three of the 15 REUs be reserved for residential use. The new plan will reduce that to two.

"This would allow a reasonable amount of growth over the next 10 years," while preparing for $5.8 million in improvements, said Chairman Tom Lewand, who participated in the meeting by telephone.

After setting aside 150 REUs for undeveloped subdivision lots and 10 for public use, the city treatment system has about 70 REUs left before capacity is reached.

To meet their plan of plan to allocate 10 a year for the next 10 years, board members say they will borrow from the unused subdivision units.

When the 10-year expansion project is finished, the plant's capacity will increase by approximately 350 REUs. Of those, about 150 will be held for homes, apartments, and dormitories in Harrisonville, which now are on septic systems.

The recommendation to lift the moratorium will be presented to the city council at its January 30 meeting, and the Board of Public Works also hopes to have a final plan for the wastewater treatment plant upgrades, if all the figures can be reviewed by then.

"I want to be sure we've kicked the tires on these numbers," said Mr. Lewand, "before City Council takes action."

The complete plan 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.

The cost would be charged to sewer users, not water users, some of whom are on septic systems. Victor Callewaert, who also participated in the January 16 meeting by telephone, suggested the rate increase be spread to both water and sewer users, since septic system users will eventually benefit from the improvements being made.

"The truth is we wanted to split it up because some of the increases cover increases in expenses, which are appropriately water expenses, including some of the salaries, some of the repair and maintenance items," said Mr. Lewand. "But when we get down to it, the capital expenditures are almost 100% sewer side."

Mr. Callewaert argued that part of the reason for the plant expansion is to cover sewer connections in Harrisonville that the state may require someday. The cost of the project, he said, should be the responsibility of those now using the system and those who may need to it. Both water and sewer fees should be increased about 3% to support the project, rather than a 5% increase only to current sewer users.

The plan is preliminary and changes are expected, said Mr. Lewand, who agreed that Mr. Callewaert's suggestion would be considered as accountants review the numbers before presenting a final proposal on how the work and capacity increase will be funded.

"It does make sense to have everyone pay fully," said Mr. Lewand, "because they may tap in some day."

Under the current plan, however, a 5% increase in sewer rates would begin this year and continue through 2014. In 2018, the rates would rise by 35%, followed by 5% increases yearly, with no anticipated end to the hikes.

If adopted, the rate this year for the average residential user would increase by 32¢, from $6.33 per 1,000 gallons of water used to $6.65.

The plan is based on flat revenue growth, said Mr. Lewand, a trend for the last two years and likely to continue in the weak economy. Rates, he said, could be adjusted with fluctuating revenues.

"I guess the worse case scenario would be in 10 years, we'd have to raise rates 35%," said Mr. Lewand, who asked city attorney Tom Evashevski to look into the legalities of raising impact fees, which is a charge assessed to a new customer connecting to the sewer system. A report is expected at the board's next meeting.

The board is expected to meet before January 30, although a meeting date has not been set.

Bruce Zimmerman, director of the Department of Public Works, updated the city council on the pending recommendations during Council's meeting the same day.

"I think at this point, it is imperative the engineers come up and address Council," said Mayor Margaret Doud. "I think there are still a lot of questions and I think Council has a lot of questions."

Fishbeck, Thompson, Carr and Huber, Inc. of Grand Rapids is the engineering firm working on the project.

Alderman Jason St. Onge suggested the city council consider holding a public hearing on the project plan.

Earlier in the day, at a meeting of the Moratorium Committee, other questions about the sewer expansion were asked.

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. 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.

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.'"