GLADSTONE — The City of Gladstone will be accepting a loan from the U.S. Department of Agriculture (USDA) to replace critical infrastructure that delivers water to Gladstone homes and is about 100 years old, give and take, depending on the section. The loan of around $8 million would be paid back over a period of 40 years. The amount of a rate increase to customers will likely be decided after the project goes to bid next year.

“Defiencies” were identified a few years ago to the ancient water intake system, the only water supply in the city. If it failed, thousands of residents would be without water.

“The most recent inspection report indicates the intake crib is in poor condition. Portions of the intake pipe are exposed on the lakebed and holes were observed in the exposed pipe. Zebra mussel colonization was observed on the intake crib and pipe,” read a document sent to the city by the Department of Environment, Great Lakes and Energy (EGLE)’s Drinking Water and Environmental Health Division in May of 2022.

The portion under the lake is original, probably dating to 1895, while an onshore section which has been rehabbed was built in the 1930s, said Gladstone Water Superintendent Rob Spreitzer.

Aiming to complete a project would replace the old water intake, crib assembly and tank, plus install a second 12-inch water main to the reservoir on the bluff, the city put out public notice in April 2024 that they intended to apply for federal financial assistance and held a public hearing. The water department was then authorized to apply for assistance through USDA Rural Development (RD).

Last month, Gladstone received a letter from the USDA stating that the project was eligible or funding. Last week, further communication emerged from the USDA outlining the terms of the loan, which is estimated to hit a total of $7,927,000 and will be administered on behalf of the State of Michigan’s Rural Utilities Service (RUS) and the USDA RD.

Milestones that the city will have to meet are as follows: plans, specifications and designs must be done by August 2025; permits completed by December 2025; initial advertisement for bids, February 2026; start of construction, June 2026; final completion, July 2027. If one of these landmarks cannot be met, the city must give notice to the USDA 30 days prior.

Engineer Scott Nowak mentioned that actual dates will be contingent on some factors not in the city’s control. Permits for working under the lake will have to come from the Army Corps of Engineers, and the Michigan State Historic Preservation Office (SHPO) will have to determine the best way to work around a shipwreck in the bay.

Annual repayments on the loan are expected to amount to roughly $364,000 for a period of 40 years. Gladstone customers will certainly see a rate increase, but until definite numbers are established when the project goes to bid and a rate study is completed, the scale of the hike and when it might take effect are yet unknown.

However, Gladstone City Commissioners noted how crucial it is that this project is completed to ensure that residents continue to have water and that it should have very long-lasting results.

“This is a great investment in infrastructure by our residents,” said Commissioner Steve O’Driscoll.

“It’s a multi-generational investment,” added Mayor Pro-Tem Brad Mantela, referring to the fact that the previous assembly had held up for a century and that Gladstone would be paying off the project gradually for four decades.

The discussion of the intake project and the decision to authorize either Mayor Joe Thompson or Mantela to sign the forms and letter of intent to meet the conditions set by the USDA was one agenda item at the regular meeting of the Gladstone City Commission on Monday, June 23. Other business at the meeting included:

– payment of $9,443.11 to Compass Minerals for road salt and $5,985.22 to CHemTrade Chemicals for wastewater treatment chemical aluminum sulfate.

– brief discussion of a district new to Gladstone, an Industrial Facilities Tax district, which temporarily waives taxes on certain developing properties to incentivize new businesses to come to town. A public hearing about the matter will take place on July 14.

– acceptance by the commission of a $92,730 bid from MJ Electric for electric pole replacements. Though MJ was the middle bidder of three, the city decided that the low bidder was risky as they did not have teams in the Upper Peninsula already.

– city support to reroute U.S. Bicycle Route 10 and the Iron Belle Trail. Because Bay Shore Drive to P Road is considered unsafe, an alternative route will follow Bay Shore Drive in Masonville and Brampton Townships and North Lake Shore Drive, 9th Street and Lake Shore Drive in Gladstone.

– bid review for wastewater collection system sanitary sewer improvements. It is a requirement that the city make certain improvements to the system, which will take place this fall and next year. 7,300 feet of main on Minnesota, Michigan and North 17th Street will be replaced, and 8,600 feet of sewer main are to be lined on Superior, Delta and Minneapolis Avenues. The project was awarded to Barley Trucking and Excavation; their bid of $5,129,901.41 was the lower of the two received.