By David Fleet
dfleet@mihomepaper.com
Atlas Twp. —   On Tuesday night, the township board of trustees voted 5-0 during a special meeting to adopt an amendment to a resolution regarding cost overruns of the Kearsley Creek Interceptor sewer project.
The requested sewer units for the township are earmarked for the primary purpose of improving existing developments and not intended for new developments.
In 2021 Genesee County began the KCI Interceptor project with a cost of $35 million, with Atlas, Davison and Grand Blanc townships along with the Village of Goodrich. In 2023 the unified contract was sent out. The bids were opened in 2024 and five bidders responded for all the phases.
“They were good competitive bids,” said John O’Brien, deputy director of water and waste services for the Genesee County Drain Commission. “We got hit with inflation, significant ARPA funds that are out there in the market. Contractors can increase their price because there is now so much work out there. The cost of all the material is through the roof.”
As a result, there was a 45% increase in construction costs, said O’Brien.
“We are over budget,” he said.
There is authorization for up to 10% more than the $35 million, which has been exceeded. The cost has now swelled to $58,811,896.
In March, the township agreed to purchase 800 REUs, with financing through the State of Michigan State Revolving Fund, 40 years at 1.85% interest rate. The number of REUs or Residential Equivalent Units are for the future and current needs of the community. Atlas Township’s share of the bonds will not exceed $2,086,000 of the estimated cost of the project.
“The original plan for 800 units will be reduced to 593 units, the other 207 units will be funded by the Genesee County Drain office,” he said. “Those units will be held in reserve to use at a later date by the township. It’s not a perfect situation, but we are trying to control future debts. The township will have the first right of refusal for those units.”
The county currently has $16 million in ARPA funds which will be drawn down first. The first payment will be due in 2026.
The project will begin this September when contracts are awarded followed by eight to 16 weeks to compile materials. Construction will begin in the spring of 2025 and take about two years to complete.
Similarly, on Monday night the Goodrich Village Council approved the change from 300 units down to 219 with 81 held by the county in reserve. The village had bonded for $769,102 for their portion of the project. The village had reserved $198,000 in ARPA funds to be applied to the costs.