Traverse City Record-Eagle

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June 26, 2009

Divided board to partially fund probe

TRAVERSE CITY -- A divided Grand Traverse County board quibbled, but ultimately agreed to partially fund a probe into whether the developers of Grand Traverse County's septage treatment plant committed professional negligence.

The board this week balked at chipping in $5,000 for the review, then voted 5 to 4 to fund $1,666 of the $10,000 probe cost. The decision sends the funding question back to officials from five townships that oversaw construction and guaranteed bonds for the $7.8 million plant.

The ultimate say rests with the county's Board of Public Works, which initiated the review.

"If we kick this back (without funding) I think it will get lost in the shuffle, which I think is what some people who are voting against this want to happen," said county Commissioner Ross Richardson, who supports an investigation of the financially troubled septage plant.

Commissioners Beth Friend, Larry Inman, Christine Maxbauer and Mike Stepka joined Richardson in supporting the lesser contribution to the septage plant probe.

Commissioners Addison Wheelock Jr., Larry Fleis, Dick Thomas and Bruce Hooper voted against both motions. Hooper said he doesn't think there's much support for an investigation among residents of the county's townships.

"There are people's reputations at stake here, and there's the businesses that are being implicated here unjustly, and I'm really dubious about the quality of this investigation and what it's going after," Hooper said.

The Board of Public Works wants to hire engineers and attorneys to investigate whether former BPW attorney Michael Houlihan and engineering firm Gourdie-Fraser Inc. committed professional negligence in plant design and construction.

Houlihan was project manager, and he and Gourdie-Fraser made septage volume projections that led to an oversized construction project that doesn't generate adequate revenue to keep it from piling up losses.

The plant faces a projected $2.4 million loss over the next five years because septage flow numbers are far below what developers estimated.

Inman cast the swing vote. He wants Garfield, East Bay, Acme, Elmwood, and Peninsula townships "to share some leadership" by dipping into their general funds for $1,666 each.

Garfield Township Supervisor Chuck Korn called Inman's offer to pay one-sixth "disingenuous," considering Elmwood Township officials said they wouldn't pay for the investigation.

Inman said the board will reconsider if any townships refuse to pay a share.

BPW chairman Pat Pahl said the county board's actions will cause a "bunch" of delays and the investigation may not survive.

"The way it's heading is they are trying to kill it by lack of financial support," Pahl said. "I think people need to (contact) their county commissioners and let them know how they feel on this issue," he said.

The county board will meet at 6 p.m. Tuesday in the Governmental Center to discuss the septage plant, possible financial solutions, and who eventually should own it.

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