Grosse Pointe Farms
February 21, 2012
Farms to start first phase of sewer system work
City could issue bonds for multi-million dollar project in March
By K. Michelle Moran
C & G Staff Writer
GROSSE POINTE FARMS — Officials are moving forward on a project they hope will prevent future basement sewage backups in the city.
The City Council unanimously approved a resolution Feb. 6 that would enable the city to issue up to $4.5 million in bonds for the first phase of a project that includes improvements to the city’s Kerby Road sewage pumping station and system. City Manager Shane Reeside said the resolution enables the city to issue the bonds 45 days after notification.
Tom Biehl, executive vice president of the consulting engineering firm of Hubbell, Roth & Clark Inc., outlined the improvements planned for the first phase of work, which would likely begin this year. It includes use of the existing 450-kilowatt generator and automatic transfer switch for pumps one through three; the purchase and installation of a considerably larger, 2,000-kilowatt generator for big storm pumps seven and eight, as well as for pumps four through six, along with an automatic transfer switch; upgrades to the dry well sump pump; replacement and extended wiring for the eight pump starters; new shafts, motors and other improvements to pumps five and six; new energy-efficient windows for the pump station and a new roof to correct existing leaks; installation of Supervisory Control and Data Acquisition, or SCADA, equipment to allow for remote pump reading and control, as well as improved backup power capabilities; new lighting, ventilation, gas and smoke/heat detection devices in the wet well; plumbing and backflow prevention; and switch-gear modifications that would alleviate the possibility of multiple switchovers during short-term power interruptions.
As proposed, Phase I improvements were estimated, at press time, to be $4.368 million, according to HRC calculations. Those figures include engineering costs and construction contingencies. Because they found a generator large and powerful enough to run pumps four through eight, Biehl said, they were able to bring the costs down somewhat; engineers had previously expected the city would need to purchase two new generators, not one.
The 2,000-kilowatt generator — estimated at $1.78 million — is the big-ticket item of this project, and its purchase and installation is likely to take some time. Biehl said they need to prepare shop drawings and order this piece of specialized equipment. In a best-case scenario, he said, the city could have the generator in by August.
Because the pump station — built in 1929 — is on the historic registry, city officials need to preserve its exterior architectural features to maintain its appearance, City Council member Joseph Leonard said. Biehl told the council the engineers were aware of this stipulation and intended to present their plans to the city’s Historical Commission for approval.
Phase II improvements, slated for the future, would include partial storm sewer separation for the Inland District.
Mayor James Farquhar pointed out that the notice of intent to issue bonds didn’t commit the city to actually issue them now. Reeside concurred, saying that the notice gives officials the opportunity to issue such bonds.
Financially, the city is in a good position to issue new bonds. City Controller/Treasurer John Lamerato said the Farms has more than $50 million in bonding capacity. He said the formula is based on taxable values. Reeside said the city has a bond rating of AA-plus and only has $17.5 million out in existing bonds.
“It’s a very good rating, so we should get a very good interest rate (on bonds),” City Council member Lev Wood said.
The city has two sewer separation bonds — from separation of the Lakeside District — that will be paid off in about nine to 10 years, Lamerato said. The remaining outstanding bonds — for projects at Pier Park and the harbor — will be paid off around 2025, City Council member Louis Theros said. Theros said the city’s Budget and Audit Committee has looked at usage fees and flat rate charges to come up with a way to even out the additional charge on household water and sewer bills. The city might switch to a bimonthly billing cycle, and if they do, Theros said, residents would probably be looking at paying another $10-$15 per bill.
If the city goes forward with the bond as proposed, Reeside said, the additional cost per household would be about $40 during the first year of issuance and up to $80 annually for the rest of the bond’s duration. However, he cautioned that those figures are “just an estimate,” and city officials are hoping for an even better interest rate, which would decrease those figures.
At press time, Reeside said the city was still in discussions with Wayne County officials about an inspection of the Fox Creek enclosure in Detroit, where sewage flows from the Farms, Grosse Pointe Park and City, and part of Detroit are directed. The enclosure is under the jurisdiction of the Wayne County Drain Commission. Biehl said sediment in that pipe could create capacity issues during extreme storms. Reeside said Farms officials were slated to meet again with county officials Feb. 21 to talk about the timing and cost allocation for such an inspection. It’s expected to cost about $158,000 to perform the inspection, he said. At a previous meeting, Biehl said the Fox Creek enclosure hasn’t been inspected in about 35 years and likely needs to be looked at.
Winter is the best time of year for such an inspection because it requires walking through the enclosure, he explained.
Reeside said the city wants to get going on Phase I as soon as possible, especially because they’re renting a large backup generator now, at considerable cost. Once they get more solid cost estimates, he said, they hope to set a timeline for the second phase of the project.
You can reach C & G Staff Writer K. Michelle Moran at kmoran@candgnews.com or at (586)498-1047.