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February 22, 2023

Re: Midland Footing Drain Disconnect Program –

Recommendation for Incorporation of Footing
Drain Opt-Out Charge Project No. 210177.02

Mr. Jared Driscoll

City of Midland
333 West Ellsworth Street
Midland, Michigan 48640

Dear Mr. Driscoll:

The City of Midland has adopted an ordinance relative to the implementation of a Footing
Drain Disconnect Program. The Footing Drain Disconnect Program (FDDP) initially
includes 370 houses spread amongst two neighborhoods (Moorland and Whitewood). The
program is designed to help the City meet the EPA limits for clean water entering the
sanitary system during the 25-year, 24-hour rain event. The City has committed to
reimbursement of plumbers up to certain amounts for the inspection and installation of
sump pumps and disconnects within the identified program area. The program also
includes provisions for an “Opt-Out Charge” for non-participation of residents with homes
that include potential connections of the footing drains into the sanitary infrastructure.

The residents have the option to have the inspection completed to determine if they are
connected or not. If they are connected, they have the option to participate in getting
disconnected and having this paid for by the City within the reimbursement limits. If they
are not connected, there is no further action. If the residents choose not to disconnect
once identified, or choose to opt out of participation in the program, a charge will be
imposed on their sewer bill.

In other Michigan communities with similar programs such as the City of Grand Rapids,
and the City of Grandville, these Opt-Out Charges are based on avoided claims, avoided
conveyance and treatment costs, penalties for sewer overflows, avoided future (or
alternate) project costs, and administration costs. In the development of the program for
Midland, the City staff have elected to simplify this calculation to only include avoided
conveyance/treatment costs, and avoided future projects.

The costs for conveyance and treatment were calculated by taking the difference between
the annual dry weather and wet weather flows that were recorded by flow monitors in the
program area, multiplying this by the costs to convey and treat the wastewater at the same
level of service that Concept 5 provides, and then dividing by the number of homes in the
program area.
1. Avoided Costs to treat the additional flow generated by footing drains
Flow Estimate
Dry Weather Flow 44684 gal/year Average generation rate per house
Wet Weather Flow 9130 gal/year Average generation rate per house
Total 53814 gal/year Average per house
Unit Conveyance & Treatment Costs
Annual Average FD flows for pilot area 0.0538 MG/yr/house Average per house
1A. Conveyance $ 188.28 per MG Unit conveyance cost
1B. Treatment $ 1,900.00 per MG Unit treatment cost (per WWTP budget 2021)
Conveyance & Treatment $ 2,088.28 per MG
Annual Cost $ 112.38 per yr/customer Annual cost for a connected FD

2020 Monroe Avenue NW | Grand Rapids, MI 49505-6298

T [616] 363 9801 | F [616] 363 2480 | W mbce.com
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Mr. Jared Driscoll
February 22, 2023
Page 2

Moorland FDD homes connected 201 homes homes built pre-1987

Total Moorland DWF from FDDs 9 gpm From sewer modeling
Total Moorland WWF from FDDs 130 gpm Assumption from sewer modeling - average rain event
Wet weather days per year 5 days assumption from rain data
Dry weather days per year 360 days

Whitewood FDD homes connected 169 homes homes built pre-1987

Total Whitewood DWF from FDDs 7 gpm From sewer modeling
Total Whitewood WWF from FDDs 105 gpm Assumption from sewer modeling - average rain event
Wet weather days per year 5 days assumption from rain data
Dry weather days per year 360 days

The costs for avoided capital was calculated by taking the increased capital for upsizing
certain system pipes and adding offline storage in the system, and then subtracting the
avoided costs of the FDD program to get the net. This was then taken over an annualized
basis and divided by the number of homes in the program area.

2. Avoided Capital Costs to Upgrade System to Equal Level of Service as FDDP

Pipe Up-sizing & Offline Storage

Capital costs to up-size pipe / off-line storage
Costs Avoided for FDDP
2. Net Additional Costs to Provide the Same Level of Service
Annualized cost
Annualized cost per home
$ 7,490,275.00
$ 2,775,000.00
$ 4,715,275.00
$ 386,326.36
$ 1,044.13 per year/FDD customer Annualized Cost per home
Assumed interest rate 2.5%
Loan period 20

Once these annual amounts per house were determined, they were then added, and
divided by 12 months. The current calculation of the monthly Opt-Out Charge is detailed
below:

Annual Cost Summary

1. Avoided Conveyance and Treatment $ 112.38 per year/customer

2. Avoided Future Projects $ 1,044.13 per year/customer

Total Monthly Opt-Out Cost $ 96.38 per month/customer

These amounts should be reviewed each year when setting sewer rates, and should be
adjusted to reflect increases or inflation that would be seen in these categories.

The City is hoping to drive involvement in the program with the reimbursement amounts
considered for participation, and as discussed during program development, it is
recommended that the City implement this Opt-Out Charge to help further incentivize
participation in the program.

Sincerely,

Brian J. Hannon, P.E.

Project Manager