Ludington City Council to OK bonds, contract for treatment plant

February 24, 2019

The Ludington City Council on Monday will consider approving more than $23 million in federal bonds to fund the city’s wastewater treatment plant and sewer upgrade, as well as finalize the project’s $20.6 million construction contract.

The council will decide on approving three bond resolutions — for $9 million, $8,079,000 and $6,014,000, respectively — totaling $23,093,000, which would be borrowed from the USDA Rural Development Agency and repaid to the agency during a 40-year period at annual interest rates of 2.25 and 2.5 percent, according to Acting City Manager Jackie Steckel.

At its last meeting, on Feb. 11, the council passed resolutions allowing Steckel and City Clerk Deborah Luskin to sign for the three bonds. If the council approves the bond resolutions Monday, then officials will have the go ahead to begin the bond closing process.

The council will also decide on officially awarding the bid to Davis Construction Inc. to build the renovations for the wastewater treatment plant for a contract of $20.6 million.

On Jan. 14, the council approved conditionally awarding the bid to Davis Construction, but the agreement was dependent on the project’s finances being secured.

Another item on the council’s agenda related to the treatment plant financing is considering approving a deal with House of Flavors, Inc. for the company to pay the City of Ludington a total of $1.7 million. House of Flavors’ ice cream manufacturing facility is a major industrial user of the wastewater treatment plant.

Since part of the plant’s upgrade is to increase its capacity to treat a type of waste that House of Flavors is the primary cause of, city officials have negotiated an agreement for House of Flavors to pay Ludington an extraordinary service fee of $1.7 million, spread out in five equal installments, at an annual interest rate of 3.375.


The council will hear annual reports from the city’s water treatment plant, the wastewater treatment plant and utility maintenance departments.

The council will consider rescheduling the annual Ludington Triathlon for July 28.