Traverse City Record-Eagle

Archive: Friday

October 16, 2009

Septage plant investigation up in the air

Company, project manager would be subjects of probe

BY BRIAN McGILLIVARY

TRAVERSE CITY -- Money concerns could again derail an investigation into whether the project manager and company behind Grand Traverse County's septage treatment plant are liable for its ongoing financial problems.

The proposed probe would examine if engineering firm Gourdie-Fraser Inc. is liable for overbuilding the plant based on its own faulty septage volume projections, and if project manager Michael Houlihan improperly waived up to $500,000 in damages because the plant was not substantially completed on time.

Estimates from two engineering firms for the review came in around $20,000. The Grand Traverse County board pledged half the amount, leaving $10,000 for the townships of East Bay, Garfield, Acme, Peninsula and Elmwood. The five townships guaranteed the $7.8 million bond for the plant and oversaw its construction through a public works committee.

Pat Pahl, chairman of the county Board of Public Works, wants the county to force the townships to cover an estimated $200,000 shortfall in an upcoming bond payment for the plant if they won't fund the investigation. Supervisors in Peninsula, Acme and Elmwood have voiced reservations it's just the first phase of the investigation and it's already twice what was budgeted.

"Some hard decisions have to be made and I don't know how else to get those decisions made," Pahl said. "I've been beating my head against the wall to get this investigation to proceed, and I think this is the only way."

Chuck Korn, Garfield Township supervisor, called Pahl's plan "a noble idea" that won't work.

"I think he's just trying to get people to think, to drive home to the townships that have been reluctant to participate in the past do they want to write a small check or would they like to start writing big checks," Korn said. "Call us crazy, but Garfield has pretty much indicated we would rather avoid the big checks."

Korn said he doubts the county will force the issue.

Some county commissioners who voted for the investigation are reluctant to pressure the townships.

"We've already agreed to make the bond payment and I can't see us backing down on that," Commissioner Larry Inman said. "Let's hope everybody can agree to come together ... because we have to move forward with this investigation."

The five township supervisors will discuss the probe and how to pay for it in a special meeting at 8:30 a.m. today at the Garfield Township Hall. Pahl also will ask the county board to discuss his request at its Oct. 20 meeting at 5 p.m. in the Governmental Center.

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