QUINNESEC - The Breitung Township Board of Trustees on Monday voted to discontinue an application with U.S. Rural Development Loan Grant for Phase II of the sanitary sewer project.
About 50 residents were in attendance at the two-hour meeting. After much discussion, the township will not be moving forward with Phase II of financing from Rural Development.
Many residents were opposed to the project because of its costs.
Township Superintendent Perry Franzoi said the township would have only gotten 45 percent of the project cost from the loan, and could not have moved forward without at least 75 percent funding from Rural Development.
Trustee John Gaudette asked what discontinuing the application means for the township.
Franzoi said the township was unable to document environmental contamination from septic systems to get the amount of the funding they needed from the grant.
The total cost of the project would have been $8.5 million.
Treasurer Anne Cahee said they said there is good soil for septic systems.
Olson added the lots are small, and there are new specifications for putting in sewers.
"How are we going to replace your septic system? Some lots are only 50 feet wide," he said.
Olson said it is not feasible to go forward unless the township were to get the 75 percent grant.
Franzoi added Phase I of the sewer project is mainly from the 2007 Farm Bill, which has different regulations than Phase II, which would have been stimulus money.
Phase I is for sanitary sewers for the area of U.S. 2 from the Iron Mountain city limits to Town & Country Ford in Quinnesec. Phase I is still pending.
Phase II would have been for sanitary sewers in Quinnesec.
"So we not going to have access to stimulus money after this year," said Franzoi.
Franzoi added if the township were to go forward with funding for Phase I, a notice would be in the paper about a bond for a capital improvement project. Funding would then come from different sources.
He added the issue could put to a vote if residents follow the proper procedures and submit a petition for a referendum.
During public comment, Leila Canavera of Quinnesec said sanitary sewer was brought up in the early '90s and every board member was recalled, except the clerk and treasurer.
Supervisor Denny Olson said the township conducted surveys six years ago and three years ago, and the response about a sanitary sewer system was very strong - the residents wanted infrastructure.
"As elected officials, if we didn't look into the long term we wouldn't be doing our jobs," Olson said.
Bruce Aderman of Quinnesec said the issue of a dedicated millage on the November ballot was rejected by 70 percent of the people.
"We had our say," he said.
Franzoi said the dedicated millage was looked at as a method of financing road improvements and other projects in the township. He said the benefit of the sanitary sewer is for the environment and for development. It would increase the tax base and control the sanitary sewer much more effectively than septic, he said.
During a second citizen time at the end of the meeting, several residents spoke on the sewer projects, among other issues.
Bonnie Pelke of Quinnesec questioned the safety of the speed limit on U.S. 2. She was told the state has the ultimate say in what the speed limit should be.
Pelke also asked if the sewer system is going to cost residents anymore money.
Franzoi said it will not add to the township residents water bills, but could come in the form of special assessments or additional user fees.
"There might be," said Gaudette. "A bond has the potential to impact all residents. It depends on the funding formula."
Olson added nothing will be done without public hearings.
Willy Erickson of Breitung Township said the township should be focusing more on fixing the water pipes, before trying to build up more infrastructure.
"We're losing 45 percent of the water because it is leaking into the ground. Something is not right," he said. "I think we need to fix it."
Rita Luri of Quinnesec said three years ago and six years ago, township residents were financially better off than they are now.
"Why not take monies and put them toward the East Kingsford project? You're asking Breitung Township residents to pay for commercial property. I'd rather see East Kingsford get their pipes in order," she said.
Luri added she enjoys her septic tank and doesn't have extra money to pay for sewer.
Ben Peterson of Quinnesec asked what they are doing about the patrol car that is not being used.
Olson said he is in discussions with the Dickinson County sheriff. The sheriff's department wanted to purchase the squad car and the township is not interested in selling it at this time.
In other action, the board:
- Increased the East Kingsford water rate 48 cents per 1,000 gallons. Breitung Township buys water from the city of Kingsford, who recently increased its commodity cost 42 cents per 1,000 gallons. Franzoi said the city marks it up 15 percent for the township, and the rate is effective April 1. A decision will be made in April on a $1.1 million project to repair the system to reduce the water loss to be funded by a grant.
The East Kingsford water system is currently at a loss ratio of 50 percent due to pipes that are old and need to be replaced. East Kingsford has debt service payment loan (water lines project from 1996) on the system until 2017 and will be in the red if they do not increase rates now. To meet the current bill the township has to have a 48 cent increase per 1,000 gallons. The cost will be $3.96. The water board will meet in April to discuss taking action on the East Kingsford water system.
- Authorized to have a survey and map drawn up as preliminary engineering for a utility easement for Home Depot property. This is for an access road to be built from Storeheim's to Home Depot. Home Depot's corporate office was looking for additional information about the pipes and the road. Olson said the road should have been put in before businesses were built to make it safer to get onto U.S. 2. Gaudette added the township is working with Iron Mountain on how to improve safety of that area to the mobile home park.
- Directed the township attorney to prepare easements for the Northland Beagle Club and Lakes Gas Co. through the township property located on the south side of Breitung Cut Off Road. The property owners would be responsible for costs. The easement is for access into those businesses.
- Authorized Bill Bailey, water operator, to attend the semi annual U.P. Waterworks Training on April 27-28 at the Island Resort & Casino with the use of a town truck and meals paid.
- Approved any board member to attend the MTA Capital Conference in Lansing April 21 with lodging and registration paid.
- Donated 1885 newspapers in Swedish from Chicago to the Dickinson County Genealogy Society.
- Heard from Shelly Kaminski of Adams Street regarding a variance issue. She said because the township zoning board of appeals granted a set-back variance to Rick Nelson on July 1, 2009 for a 20-foot by 36-foot garage, his property is encroaching on their land. They are unable to sell their home, can't get title insurance and its value has gone down, she said. Olson said this issue is being discussed.
Lisa M. Hoffmann's e-mail address is lhoffmann@ironmountaindailynews.com.
