The citizens of St. Ignace will be asked for their opinions and concerns regarding a proposed fouryear plan to incrementally increase sewer rates, owing to a decision by City Council Monday, March 15, to hold a public hearing at 8 p.m. April 19 at the St. Ignace Public Library. Council also heard updates on a spring paving project on Chambers Street, a grant request to fund the construction of a fire hall, accepted a bid for an old police car, and renewed a taxicab operator's license.

The proposed rate increase, which would gradually increase sewer rates for most residential customers by 18% over the four-year period, is needed to pay back a $2.7 million U.S. Department of Agriculture (USDA) bond the city is applying for so the city can make improvements to its wastewater treatment plant.

The plant, Public Works Director Les Therrian said, has been building up sludge left over from treated sewage since it was built, and now the city needs to find a way to periodically remove and dispose of this sludge.

To do this, Mr. Therrian has suggested shutting down one of the treatment ponds at the plant that has proved too shallow for effective use, and building a new, deeper pond. He also suggests building sludge drying beds that will allow the plant to drain water from the sludge and mix it with the city's street sweepings before disposing of it, which he said would be cheaper in the long run.

The reason this is the best time to take out a loan, said City Manager Eric Dodson, is that the USDA is offering a 35% interest rebate through the Build America Bonds program, on top of an already-low interest rate of 2.8%.

“The issue is not if we have to do this project, but when,” Mr. Dodson said. Mr. Therrian agreed, saying that a backup pond like the one he has suggested building is crucial in case there is a problem with the sewer system and sewage needs to be diverted.

He said this yearly rebate would refund the city about $30,000 of the $160,000 yearly payment the city would need to make on the bonds.

Councilman Tom Della-Moretta agreed that the low interest rate and yearly interest rebate would make such a project much easier to fund, but stipulated that a rate increase would need to be approved to make payments on the bond.

“We have the opportunity to do something less financially distasteful than it could be, but we need to get our ducks in a row to do that,” Mr. Della-Moretta said.

Mr. Therrian stipulated that the city has not yet been approved to use the USDA bond program at the sewage treatment plant, but that it is approved for the funding for a different project and are now awaiting a response to a request to transfer the funds to this project. He said he expected a response before the end of March.

The greatest expense in the project, he said, would be removing the about one million gallons of sludge and the vinyl liner in the shut-down treatment pond, and he estimated the improvements at the treatment plant would cost between $1.5 and $1.8 million. The remainder of the $2.7 million USDA loan could be used to make improvements to the sewage lift pumps at Reagon Street, which is 20 years old and has already experienced operational problems.

The city would need to collect $4.75 more a month for the average residential customer in 2013 to pay for the treatment plant work, according to preliminary estimates.

This estimate is based on an average residential use of 3,000 gallons a month and proposed increases of 25¢ per 1,000 gallons in use fees for all four years and increases of 50¢ in the flat rate for the first three years and an increase of 25¢ in the flat rate in 2013.

Comparing the average sewer bill of $26.04 per month for residential users with an average bill in 2013 of $30.79 per month, the gradual rate increase would mean most residential customers would pay 18% more in 2013 than in 2009, an increase of about 4.5% each year. These rate increases are still preliminary estimates and have not been approved by the city council.

St. Ignace City Council voted Monday, March 1, to authorize an expense of $7,500 to allow the engineering firm C2AE of Escanaba to complete a preliminary engineering plan for the project.

Council member Willie LaLonde said he felt it is important to hold the public hearing and to properly inform the citizenry of St. Ignace why they are considering raising sewer rates.

“The public needs to know everything,” Mr. LaLonde said. “They need to know exactly what is going to be done with those higher rates.”

Mr. Dodson said he wants to hold the public hearing late enough in the year to catch any residents who don't live in the city during winter months, but early enough that business owners may still be able to incorporate rate increases into their prices for the upcoming tourist season.

“Timing is a big concern,” he said. “This is an opportunity for public to come and talk about this and the impact and what it means to them individually.”

Council has agreed to hold three meetings each year at locations other than city hall, which is why the Monday, April 19, public hearing and Council meeting will be held at the public library. All City meetings, not just public hearings, are open to the public.

Chambers Street Paving Begins

This Spring

Motorists in St. Ignace will see a freshly paved portion of road along Chambers Street between US-2 and Fitch Street, Mr. Dodson reported, owing to the approval of $46,000 for the project by the Bureau of Indian Affairs (BIA). The project was initially budgeted for $41,400, but the BIA approved additional funds to pay for the improvements.

The street is on the Sault Ste. Marie Tribe of Chippewa Indians' list of roads having a direct impact on the tribal population. The reason it is on this list is because Chambers Street connects tribal housing adjacent to the McCann field to a major road, US-2.

Payne and Dolan of Sault Ste. Marie has been awarded the bid for the project and plans to start in May, Mr. Therrian said.

Fire Hall Would Be

at Chambers and Marley

if Funded by Grant

Since the city is under consideration for a $1.58 million stimulus grant from the federal government to build a new fire hall at the intersection of Marley and Chambers Streets, Mr. Dodson said city crews would use the opportunity of the Chambers Street paving project to make other improvements above and beneath the roadway.

The improvements, Mr. Dodson said, would include converting the intersection to a T-type crossing with a stop sign on Marley Street, installing sewage and water lines in case the fire hall is built, and placing a fire hydrant near the intersection that could be used if the section of land becomes the city's new fire hall.

Fire Chief John “Bucky” Robinson said some applicants for the federal grant have already been eliminated, which is a good sign for St. Ignace, but he has not received official denial or approval for the funds yet.

Retired Police Car Sold

to Highest Bidder

A bid of $350, from Jake Gustafson of St. Ignace, was accepted by Council Monday for the sale of a 2001 Ford Crown Victoria, formerly a St. Ignace Police Department car. The bid was accepted because it was higher than the one other bid, $277 from a Chicago-based company that turns police cars into taxicabs. Jake Gustafson is of no relation to City Council member Don Gustafson.

The City will also begin accepting bids on another old police car, a 2003 Ford Crown Victoria with 167,410 miles on it. The police department recently replaced both of these cars with used cars purchased from the Sault Tribe Police and the Mackinac County Sheriff.

The city will also receive proposals until Friday, April 9, at 5 p.m. from companies interested in contracting to replace lighting at the city's Dock #3 park. These lights were damaged by recurring high winds, and the city is now considering different ideas to replace the park's lighting system.

Taxicab License Renewed

Council approved the renewal of a taxicab operator's license in the city to Michael Gustafson, the operator of Straits Taxi Company.

These licenses need to be approved every two years, and St. Ignace Police Chief Mark Wilk asked that Council stipulate that a license holder will need to submit to a twice-yearly inspection of the vehicle by his department. This requirement is included in the ordinance covering taxi licenses, Mr. Wilk said, but has not been enforced in the past.