TRAVERSE CITY -- Two township supervisors with their taxpayers on the financial hook for the Grand Traverse County septage plant won't spend $10,000 to potentially seek up to $500,000 from parties that developed the problem-ridden operation.
Acme Township Supervisor Wayne Kladder and Elmwood's Jack Kelly surprised some of their fellow officials when they voted last week against a probe into possible negligence in connection with the design and construction of the plant.
Five townships, members of the county's sewer and water committee, guaranteed bond payments for the $7.8 million plant, which partially collapsed soon after it opened.
"I don't understand why anybody wouldn't want to know if something wasn't done properly," said Pat Pahl, Blair Township supervisor and chairman of the county's sewer and water committee and the Board of Public Works. "It shocks me people wouldn't want these questions answered knowing what a mess we have in front of us."
The plant lost money three of the four years it's been open and Grand Traverse County had to advance more than $40,000 in April for a bond payment. A recent study projects it will continue to bleed money and run about a $2.4 million deficit over the next five years.
"Before I tax my citizens to pay for this plant I want some answers," said Garfield Township Supervisor Chuck Korn, who supported the inquiry along with East Bay Township Supervisor Glen Lile.
Peninsula Township Supervisor Rob Manigold initially voted against the inquiry, but supported it when the cost was capped at $10,000.
The Board of Public Works voted last month to investigate whether plant developers and consultants engaged in conduct that would allow the county to recover monetary damages. Michael Houlihan, former BPW attorney, was project manager from planning through construction, and Gourdie-Fraser Inc., an engineering firm, made the projections that determined the size of the plant.
Attorney and BPW member Chris Bzdok told the committee that based on his review of documents, the county and townships should limit their inquiry to two issues of possible negligence.
"If you say we want to do an investigation, that's like fat city for a law firm or an engineering firm," Bzdok said. "By narrowing the scope ... it's fairly inexpensive."
Kelly said the Elmwood Township Board voted unanimously against spending any money on the investigation. Since the Board of Public Works approved the investigation without asking the townships, Grand Traverse County should pay for it, Kelly argued.
"You're very ready at every drop of the hat to let the residents of this county pay for things," Pahl told Kelly.
Elmwood Township is in Leelanau County.
Bzdok said the county needs independent experts to determine whether Gourdie-Fraser/Christman LLC, the partnership that designed and built the plant, owes the BPW about $500,000 in penalties because it didn't meet the substantial completion deadline called for in its contract.
The contract included a daily $850 penalty if the plant was not able to accept grease, septage and holding tank waste by April 30, 2005. The plant couldn't take grease until August, 2007 and other parts of the plant weren't yet operational when Houlihan issued a certificate of substantial completion in May 2005, Bzdok said.
Bzdok, a Traverse City commissioner, said the county needs experts to determine if Houlihan's issuance of the certificate ended the penalties, and if so, did he act with reasonable professional care when he signed off.
Scott Jones, representing Gourdie-Fraser/Christman LLC, said the facility was substantially complete in May 2005, because it could accept septage and generate revenue for the county.
A portion of the plant collapsed a month later.
Bzdok said the other question involves the projections of future septage volume made by Gourdie-Fraser.
Bzdok said no one disputes the projections were faulty. The issue is whether engineers exercised reasonable professional care in making the projections, and if Houlihan properly supervised that aspect of the project.
Bzdok said Gourdie-Fraser will need to turn over the rest of its files relating to its survey of haulers used to make the projections.
Jones, who works for Christman, said they would cooperate with the inquiry.
Lile said the investigation is doing a favor for the plant's designers and developers.
"I just want the questions answered, and if there's no merit to it, this will no longer be a distraction for the rest of us," Lile said.
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