IM updates utility billing to include inactive properties
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IRON MOUNTAIN -- All properties with an available water connection in Iron Mountain will be subject to fixed monthly charges totaling about $34 for a typical residence, regardless of whether the service is active.
Formerly, the fixed charges were discontinued if the water service was turned off at the curb stop. The Iron Mountain City Council approved the change in the billing policy Monday as the city undertakes significant utility upgrades requiring higher debt payments.
The current fixed monthly rates are $15.95 for water, $7.70 for sewer and $10.10 for garbage collection. Water and sewer fixed charges are higher for properties with meters larger than those at a typical residence.
"All properties with an available connection should pay the fixed charges because shutting off water service stops consumption, not the ongoing costs and obligations associated with a property’s connection," City Manager Jordan Stanchina said in a memo to the council.
"These obligations include maintaining and eventually replacing mains, hydrants, meters, valves, service lines, pumps, and lift stations; paying debt service and insurance; and meeting regulatory compliance, sampling, and monitoring requirements," he said.
The council's approval came with minimal discussion. The new policy states:
"The applicable minimum water service charge, sanitary sewer service charge and garbage charge, based on the size of the customer's water meter, shall continue for each billing period during which the service connection remains installed and available to serve the property, notwithstanding that water service has been shut off, discontinued, locked, or otherwise unavailable for use at the request of the customer, because of nonpayment, for vacancy, for repairs, or for any other reason."
Stanchina said the new policy is commonly known as a "readiness-to-serve charge," adding it may take some pressure off consumption rates as the city finances ongoing improvements. "We're undertaking a lot of projects, some of it state-mandated," he said.
The ongoing work includes replacing every galvanized water service line containing a lead "gooseneck" connection, as well as water and sewer main replacements for pipes more than 100 years old.
"Low-interest borrowing was necessary to complete this essential maintenance work, and debt payments do not decline simply because a customer uses less water in a particular month," Stanchina said in his memo.
Also approved were revisions in the city's policies for reminder notices and termination notices.
The city ended utility shutoffs for homeowners in 2024, instead transferring delinquent accounts to the property tax roll as a special assessment. This essentially renders reminder notices unnecessary, as they were intended to help prevent shutoffs, Stanchina said.
For renters, if an outstanding balance exceeds $350, they may enter into a 30-day payment plan to avoid shutoff. Given the current unreliability of timely mail delivery, termination notices for such customers will be delivered as a door hanger, rather than mailed. The notices state that termination will happen within five days unless paid in full.
In other action, the city council --
-- Approved the purchase of a Vivax fixed-head sewer camera from Jack Doheny Co. for $14,352. Staff also reviewed pan-and-tilt camera options costing more than $32,000. Although more useful, it was determined pan-and-tilt maintenance costs would be much higher. Other bidders were Midway Rentals and Sales, Core & Main Supply, MacQueen Group and MidAmerican Technology.
-- Authorized $66,928 in additional work by Bacco Construction Co. at the intersection of West A and Foster streets. As Bacco did reconstruction it was observed a sewer line was backing up. In trying to clean the line, public works encountered sand and pieces of clay tile. Stanchina said he expects the work can be funded from the contingency account of the city's $7.63 million Rural Development loan for sewer improvements. "By the sound of it, if you don't do it now, you'll be there in January," council member David Farragh said. The price is based on line items in the Iron Mountain firm's $15.4 million water and sewer utilities contract.
-- Received an update on Bacco's overall progress, including completion of West Hughitt Street reconstruction, with landscape restoration to be finished soon. West A Street reconstruction on the 800 and 900 blocks will be the final ones before the season ends, while East C Street is expected to be completed this year.
-- Accepted a $45,500 quote from Moyer Excavating of Vulcan to replace a 270-foot storm sewer line within the Hemlock Street right-of-way between Wells and Fleshiem streets. Moyer's quote was the lowest among several solicited. The degraded pipe was discovered after a sinkhole appeared. If the repair is not completed before winter it could result in substantial erosion or flooding, Stanchina said. There may be a savings of about $1,000 if the city purchases the pipe directly, he added.
-- Updated its approval of manhole cover repairs on South Stephenson Avenue to accommodate added costs for mobilization, traffic control and new castings. The city is responsible for four sanitary sewer manholes, while the Michigan Department of Transportation can be billed for seven storm sewer manholes. The city's cost will be $12,618 and MDOT's cost is $22,082. Bacco will use a Whirlygig riser/collar system to create a precise fit with the road grade.
--Scheduled a public hearing for 6 p.m. Monday, Nov. 2, on a request from Hector LaVigne to vacate right-of ways for 213 feet between Ludington and Brown streets, as well as 87 feet for Ludington Street near LaVigne's Greenhouse. Staff has reviewed the request and expressed no concerns outside of a stormwater discussion, Stanchina said.
-- Will apply for State and Local Cybersecurity Grant Program funding for a well house generator, a portable generator and potentially water system software and hardware upgrades.
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Jim Anderson can be reached at 906-774-2772, ext. 85226, or janderson@ironmountaindailynews.com.