Macomb to Prepay $2.8 Million for Interceptor Drain Repair

By paying off a $2.8 million tab 20 years early, Macomb Township can expect to save more than $800,000 on its portion of construction costs for Contract 3-Segment 2 of the Oakland-Macomb Interceptor Drain.

The 21-mile long interceptor provides service for 830,000 residents in 24 communities throughout Macomb and Oakland counties. Contract 3-Segment 2 will include preliminary rehabilitation efforts including flow control, leak sealing, grouting of potential voids and spot repairs to the OMI sewer system.

The total finance, design and construction of Contract 3-Segment 2 is estimated at $42 million, to be split among the communities the system serves.

"Each municipality has the option of paying their entire assessment for this segment of the project (in October)," said Karen Goodhue, township treasurer. "However, in order to prepay, the district must have a certified copy of a resolution from the municipality's board attesting to the fact that the municipality would like to prepay their entire assessment."

The board approved such a resolution be written and submitted to the Oakland County Water Resources Commissioner during its June 22 meeting.

The township will be billed for its entire assessment, $2,836,890, on Oct. 1.

Goodhue said by prepaying the entire amount 20 years early, the township will avoid the 2.5 percent interest assessed every year by the payment schedule and save $802,628.

The $2.8 million will come from the Water & Sewer Fund.

"That's exactly why we have those reserves ... so we are able to do this, to take part in this process and still save the township $800,000," said Clerk Michael Koehs.

The interceptor starts at Eight Mile Road east of Van Dyke in Detroit, runs north through Warren and Sterling Heights, heads northwest starting at 15 Mile Road in Sterling Heights and finishes in Oakland County near Dequindre and 22 Mile Road.