3-02-2021 1:18am

Council Approves Resolution to Borrow $8.3 Million for Sewer System Improvements

The Saline City Council officially kicked off efforts to improve the city's sanitary system at Monday's meeting, voting 7-0 to approve a resolution bond for up to $8.3 million for several projects.

The money would help the city:

Improve the "east belt" sanitary sewer that runs along and beside Maple Road, north of Michigan Avenue. A study conducted in 2018 showed the sewer line was overcapacity in several areas. The sewer line serves the eastern portion of the city, including the industrial park. Improving the line was a requirement for the building of Layher Farms, a new development joining the city off Maple Road. The city plans to replace the sewer line, replace a water main and reconstruct the pavement for a total cost of $3.5 million.
Replace deteriorated sanitary sewers under Hillcrest, Lawson and Highland streets at a cost of $1.8 million.
Install pipe lining in the 12-inch water main that runs from Michigan to Faurecia. The main was installed in 1965 and has had several breaks, including the one that emptied the city's water towers a couple of years ago. This project is estimated to cost $610,000.
Construct a relief sewer from Hillcrest to Ann Arbor Street at a cost of $873,500.
Improve the central belt at a cost of $555,000.
Improve sanitary sewer pump stations at Maplewood, Woodland and the south side for a cost of $380,000.

The total cost of the projects was is $7.7 million. City staff initially asked the council to approve $7 million, with the other $700,000 in funding coming from local sources, the local street millage and county road millage. At the council table, however, Councillor Janet Dillon suggested the city should also consider improving the west belt sewer line.

Dillon suggested the city could save money with economies of scale and take advantage of the low-interest rates.

Councillor Dean Girbach disagreed, saying the city might overextend itself, trying to accomplish all of these projects, especially since it's still looking for a DPW Director and wastewater treatment superintendent. Girbach also pointed out that the city was also in the process of planning an expansion and rehabilitation of its wastewater treatment plant. Phase one of that project is expected to cost more than $30 million.

Council went along with the idea of raising the potential bond request from $7 million to $8.3 million after learning the city would not be locked into borrowing the higher amount.

City residents opposed to the plan to borrow $8.3 million will have 45 days after the date of publication of a legal advertisement to petition for a referendum on the plan.

Mayor Brian Marl asked bond counsel Warren Creamer if he anticipated borrowing the funds would harm the city's bond rating. Creamer said he did not think it would hurt.

"We have run the city through S&P credit builder and we at this time are not anticipating any change in the city's rating," Creamer said.

Marl said he was proud of the city's improved bond rating and said there are times when debt is required.

"I want as an organization to refrain as much as possible from incurring additional debt, but there are times when it is prudent inappropriate and I believe that this is an example of when it is in the city's interest and in the city's residents' interests to incur some additional debt to fund some vital infrastructure projects," Marl said.

A lowered bond rating would make the wastewater treatment plant project more expensive.

City engineer Jeff Fordice said the east belt improvements were deemed necessary in the 2018 SAW grant study.

"We can't really add any additional flow to that line. This was one of the high-priority projects that came out of the SAW study," Fordice said.