Mount Clemens (Mt. Clemons) – City Water Bond: A Complete Guide

Mount Clemens, Michigan, is making a historic transition in its water infrastructure. For over 130 years, the city operated its own water treatment facility. However, due to aging infrastructure and rising costs, city officials decided to decommission the old system and connect to the Great Lakes Water Authority (GLWA). This transition is a significant investment in the future of the city’s water supply, ensuring that residents receive clean, reliable, and affordable water.

To successfully complete this project, the city has secured financing and awarded contracts, and contractors are required to meet strict bonding requirements to ensure compliance and project completion. This article provides a comprehensive overview of the Mount Clemens Water System Project, including its history, financing, construction process, environmental impact, regulatory considerations, and bonding requirements for contractors.

Why Mount Clemens is Upgrading Its Water System

For over a century, Mount Clemens operated an independent water treatment plant, which provided drinking water to residents. However, in recent years, the system faced multiple challenges:

• Aging Infrastructure: Much of the system’s equipment and pipelines were outdated, requiring extensive upgrades.

• Regulatory Compliance: New environmental regulations set by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) made compliance more difficult.

• Financial Constraints: The estimated cost to build a new water treatment plant was $45 million, exceeding the city's bonding capacity of $49 million.

• Operational Costs: Maintaining an independent water system was becoming increasingly expensive compared to joining a regional system.

After weighing the costs and feasibility, the Mount Clemens City Commission voted to connect to the Great Lakes Water Authority (GLWA).

The Transition to GLWA: Project Overview

Why GLWA?

The Great Lakes Water Authority (GLWA) is one of the largest water providers in the United States, serving more than 4 million people in Southeast Michigan. By connecting to GLWA, Mount Clemens will benefit from:

✔ Consistently high water quality
✔ More stable water rates
✔ Less financial burden on the city
✔ State-of-the-art infrastructure

Key Components of the Project

The project involves multiple phases and includes:

• Building a new booster station and water storage tank to regulate water pressure and ensure a consistent supply.

• Installing new water mains to replace old pipes and improve distribution.

• Upgrading underground water lines to meet modern safety and efficiency standards.

Project Funding and Cost Breakdown

How Is the Project Being Funded?

The total cost of the transition to GLWA is estimated at $42 million. To finance the project, Mount Clemens secured a low-interest loan through the Drinking Water State Revolving Fund (DWSRF).

Key Financing Details:

• Total Loan Amount: $42 million

• Loan Forgiveness: $20 million (does not need to be repaid)

• Remaining Balance: $22 million (low-interest repayment)

This financial structure ensures that the city can afford the transition without significantly raising water rates for residents.

Construction Timeline and Milestones

Project Timeline

The Mount Clemens Water System transition is a multi-year project with several key milestones.

Phase

Estimated Completion Date

Project Planning

2023

Contract Awarded

July 2024

Design Finalization

September 2025

Construction Begins

Early 2026

Project Completion

End of 2028

During construction, residents may experience occasional service disruptions, but the city is committed to keeping the public informed.

Regulatory and Environmental Considerations

Regulatory Compliance

Mount Clemens must comply with multiple federal and state regulations to ensure water quality and safety. These include:

• Safe Drinking Water Act (SDWA) – Sets national water quality standards.

• Michigan Department of Environment, Great Lakes, and Energy (EGLE) Guidelines – Regulates public water systems.

• Environmental Protection Agency (EPA) Lead and Copper Rule – Ensures safe lead levels in drinking water.

Environmental Benefits of the Upgrade

The transition to GLWA has several environmental benefits:

• Reduces energy consumption by eliminating the need for local water treatment.

• Lowers the risk of contaminants entering the water supply.

• Minimizes wastewater pollution, improving overall water quality in Southeast Michigan.

Bonding and Insurance Requirements for Contractors

For contractors working on the Mount Clemens Water System Project, obtaining the proper surety bonds is a crucial requirement. Bonding protects the city, taxpayers, and subcontractors by ensuring that the project is completed on time and according to the contract.

Required Bonds for the Mount Clemens Water Project

The city mandates the following bonds for all contractors and subcontractors:

1. Performance Bond – 100% of the contract value
   
   

   • Guarantees that the contractor will complete the project as agreed.

2. Payment Bond – 100% of the contract value
   
   

   • Ensures that subcontractors, suppliers, and workers are paid.

3. Maintenance Bond – 100% of the contract value
   
   

   • Protects against defects in workmanship and materials after the project is completed.

These bonds provide financial security to the city and residents by ensuring that work is completed professionally and without unnecessary delays.

How Axcess Surety Can Help Contractors

At Axcess Surety, we specialize in helping contractors, suppliers, and stakeholders secure the bonds and financial assurances needed to work on municipal projects like the Mount Clemens Water System Upgrade.

Why Choose Axcess Surety?

✅ Expert Bonding Guidance – We help contractors navigate the bonding process.
✅ Fast Approvals – Get bonded quickly to meet project deadlines.
✅ Competitive Rates – We offer the best bonding terms available.
✅ Ongoing Support – From application to project completion, we’re with you every step of the way.

If you are a contractor, subcontractor, or supplier interested in working on the Mount Clemens Water Project, Axcess Surety can ensure you meet all bonding requirements with speed and efficiency.

The Future of Water in Mount Clemens

Mount Clemens’ decision to transition to the Great Lakes Water Authority (GLWA) is a transformative step that will provide the city with a reliable and high-quality water supply for decades to come. This project:

✔ Improves water quality and safety.
✔ Ensures compliance with state and federal regulations.
✔ Reduces long-term costs for residents.
✔ Provides opportunities for contractors and businesses.

For contractors and suppliers, this project is a significant business opportunity, but proper bonding is essential to participate.

🔹 Need help securing the required bonds? Contact Axcess Surety today and ensure you're fully prepared for this exciting opportunity!