Sewer and Water

Oshtemo Township Sewer Expansion

Expansion Goals

  • There are several reasons why Oshtemo chose to pursue this project and they all relate back to improving the health, safety, and welfare of the community. This project was undertaken to protect public health and environmental stewardship through the closure of aging and failing private, on-site septic systems. Many properties within the township are on their third or fourth septic system. This is a serious concern since new septic systems and replacement of failed drainfields are expensive. The cost to replace a septic system can range from $10,000 to $35,000 or more. Several properties within the township possess small configurated lots. This creates a health and safety concern when lots are not large enough to situate a septic system with new drainfields/drywells. Additionally, mature trees and other landscaping often need to be removed to install a septic system and drainfields.

Septic system studies

  • The Kalamazoo County Environmental Health Department states that more than half of existing septic systems in the township are below standards and not up to current health code requirements and are in failing condition. All of the township’s water is sourced (either public water or private wells) from groundwater. Aging septic systems create health hazards to the township’s source of water (groundwater) by being contaminated with nitrates from human waste. Consequently, there can be serious health issues associated from this cross contamination.
  • Many people do not keep their septic system well-maintained. Some residents have not pumped out their septic system in more than 30-40 years. A well-maintained system should be pumped every 3 to 5 years. Additionally, Michigan is the only state in the nation which does not have an inspection program for on-site sewage treatment systems. This means the Kalamazoo County Environmental Health Department only inspects at time of installation and not on a regular schedule. The only time the County conducts an inspection after installation is when a failed septic system results in sewage seeping to the surface. Not all septic system failures result in visual, surface exposure, yet allow sewage and household chemicals to migrate into groundwater. With no inspection process in place, there is no way for the Township to resolve the issue because no one knows it is taking place.

Sewer vs Septic System Treatments

  • A wastewater treatment plant, through mechanical aerobic and activated carbon filtering processes, removes nitrates, phosphorus, and other compounds, releasing 95-98% better water. Even brand new septic systems only improve wastewater by 30-40%.

Timing for the Expansion

  • Oshtemo’s population is near 23,000 and rapid growth continues. The Township is making efforts to manage current/future growth and development as sanitary sewer systems become more of a necessity. Sewer projects require years to complete and are expensive. The Township is preparing for additional growth as well as preventing a health crisis, and taking advantage of unprecedented low bond rates. To address these reasons, the Township must act now.

Expansion Locations

  • A map of the sewer projects which are part of the current loan application is available on the Township website. These projects are identified in the pre-application project list and represent about 60% of the sewer extensions needed in the Township.  As a growing community, additional sanitary sewer system needs have been identified in the Township’s Capital Improvements Plan in subsequent years.

 

News and Updates

Public Notices

Phase 1 Information

Phase 2 Information

Connection Fees and Expansion Costs

FAQ: WHAT ARE THE ACTUAL COSTS OF THIS PROJECT TO ME? 

 First, it is important to understand all the components of the connections and use consistent terminology:

Public Connection Fee: portion from sewer main in the road to the Right-of-Way/property line

  • Benefit Fee: $2,000.00 for single-family homes (1 benefit unit)

There would be more benefit units for different and larger users

  • Parcel Fee: Each parcel, regardless of size or use, pays the same $7,000.00 – this is equitable for larger parcels that may have smaller frontage, every parcel is the same fee.
  • Frontage Fee: $25 per foot of frontage along the road, with a maximum of 200 feet
  • Note these fees were 2018 rates and were frozen for USDA expansion areas
  • These are the same components that make up a connection fee where sewer already exists or in new development around the Township outside Phase 1 and 2

Private Connection Fee: portion from Right-of-Way/property line to where sewer exits the home (and currently leads towards septic tank)

  • Recommend contacting local excavating contractors for quotePrivate-sewer.png
  • Costs will verify depending on
    • Location in front or back of house or distance from road
    • Patios, decks, pools, fences, sheds to construct around
    • Tree removal, ask contractor if trees can be avoided

 

Utility Bill: Bill from City of Kalamazoo, owner and operator of Wastewater treatment plant and contracted with Township for Operation and Maintenance of system

  • Like receiving quarterly bill for Water that covers availability and usage (see current rate sheet) payment goes directly to City
    • Flat fee based on water meter size for service availability
    • Metered Fee based on usage
  • Includes Surcharge (OSH – SURCHARGE – SEWER)

Surcharges: Charge by Township for their ownership of system, administration, capital improvements, etc. Surcharges can increase for capital improvements, inflation, or emergencies

  • Currently 2% surcharge on sanitary sewer bills for Oshtemo Residents using public sewer
  • Surcharge rates will vary over the 40-year USDA loan, averaging 13.3% or $4.29 per month on average for typical single-family home, for both Phase I and II of expansion project. Some months will be higher, and some will be lower. 

COST EXAMPLES FOR OSHTEMO RESIDENTS WITH PUBLIC SEWER & PRIVATE SEPTIC

My home is already connected to public sewer and I receive a quarterly bill from the City of Kalamazoo:

  • Your connection fees are already paid
  • Your taxes are not increased as a result of the bond
  • The debt service paid (listed as OSH – SURCHARGE – SEWER on your current bill) would on average, over the 40 year life of USDA loan, increase approximately $4.29/mo (13.3%) for typical single family home with both Phase I and II sewer expansions
  • General Fund road dollars will be used on your road at some point, just as they will be used in the sewer expansion neighborhoods
  • Your road will be maintained by the Township and the Road Commission as needed

I am buying a home or building on a lot in a new development in Oshtemo Township where sewer is available:

  • The developer, and in turn the new homeowner, pay the connection fees just like the fees in the sewer expansion neighborhoods, at the current year rate table
  • You will begin service and pay a sewer bill at City of Kalamazoo rates with Oshtemo surcharge (currently 2% and increases 13.3% on average, over the 40-year life of USDA loan) with both Phase I and II sewer expansion
  • Your taxes would not increase as a result of the bond
  • You pay for the cost of the new road in front of your house through the cost of your lot/development
  • Your road will be maintained by the Township and the Road Commission as needed

I live in a neighborhood where sewer would be expanded:

  • Your sewer costs would be as follows:
    • $37.38 average/month for public connection fees (using Twp financing with USDA loan/bond for 40 years @ 2.375%) *assuming average public connection fee of $11,500.00
    • You will begin service and pay a sewer bill at City of Kalamazoo rates with Oshtemo surcharge (currently 2% and increases 13.3% which is $4.29/month on average, over the 40-year life of USDA loan) with both Phase I and II sewer expansion
    • $3000 – $6000 average for private connection *assuming typical home with septic in front yard
      • $34.92/mo (for private 15-year financing @ 4.5% for $4500)
        • In summary, your monthly cost if you pay the private connection ‘in full’ and finance only public connections is $41.67 (plus utility bill based on household usage)
        • In summary, your monthly cost if you finance the public and private connections is $76.59 (plus utility bill based on household usage)
      • You may have options to apply for financial support from USDA, State of Michigan and Oshtemo Township assistance programs
      • Your deteriorated road will be reconstructed when the sewer is built with contribution of General Funds as is used on all roads in the Township

I am buying a home or building on a lot in a new development in Oshtemo Township where sewer is not available:

  • Your home will require construction of a septic system
  • $15,000 cost estimate would be paid to your builder for septic system
  • You do not pay a bill to the City of Kalamazoo
  • Your taxes would not increase as a result of the bond
  • You pay for the cost of the new road in front of your house through the cost of your lot/development
  • Your road will be maintained by the Township and the Road Commission as needed

 I live in a neighborhood or area on an existing private septic system and there is no planned sewer currently:

  • Your cost to periodically replace your septic system in an emergency will be ~$15,000. Costs will vary; $15,000 is a conservative average.
  • Your monthly cost if you finance the septic replacement is $116.30/mo (private 15-year financing at 4.5% interest)
  • Your cost to properly maintain your septic system is ~$300/every 3 years 

 

 

 

USDA Rural Development Loan

The application for the USDA Rural Development loan(PDF, 25MB)  for Phase I has been accepted by the USDA.  USDA provided conditional approval of the Phase I loan for 40 years at 2.375% interest rate.  If the rate is lower at the time of closing, the Township will receive the lower rate. To close the Phase I loan, Oshtemo must complete the engineering design of the sewer system, receive USDA approval to proceed to contract bidding, receive bids, and select a contractor.  That process will establish the amount of the loan.  The notional schedule for Phase I is as follows:

  • Complete engineering design of Phase I sewer extension – Spring 2019
  • Receive USDA approval to proceed to bidding – January 2020
  • Receive contractor bids and award contract – Spring 2020
  • Receive detailed construction schedule from contractor – Summer 2020
  • Construct sewer in Phase I areas – Fall 2020

The Phase II loan application has been accepted by the USDA.  The USDA is waiting for Congress to determine the USDA 2021/22 funding levels to determine if they can fund the Phase II loan in 2021 or wait until 2022.  Oshtemo intends to complete sewer engineering design in the Summer/Fall 2020 to ensure the project is ready to go once USDA funding has been determined.

In preparation for Phase I of the project, Oshtemo Township had been hosting neighborhood focused community meetings. The informational packet being distributed during those meetings can be found here: Community Meeting Informational Packet(PDF, 3MB)

 

Sewer Expansion FAQ and Resources

 

 

 

 

 

 

 

 

  

 

  

 

  

 

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