News Photo by Steve Schulwitz The Alpena Township Board of Trustees had a special meeting to address a recent water rate increase and why it was needed. The service lines in the township are failing at an alarming rate and Township Supervisor Nathan Skibbe said the increased revenue is needed to invest in the infrastructure.

ALPENA — Little was resolved during a special meeting of the Alpena Township Board of Trustees regarding the water rates customers in Alpena Township pay and the amount the township pays the City of Alpena for providing water to the township.

Last week, the township approved a 6% rate increase for water and sewer, but little was said Monday about why the township hasn’t paid several rate increases the city has implemented.

Currently, township customers pay double what the township pays the city for water.

Trustee Russ Rhynard did request staff revisit the increase and suggested the township pay the city’s rate increase which was about 2% for all of its customers.

Township Supervisor Nathan Skibbe, said last week part of the reason a rate hike was needed was because the city increased rates. City and township officials told The News that the township has paid the same rates to the city since 2019.

Skibbe was careful not to discuss the city’s rates or what the township pays because of ongoing litigation, but outlined the cost and consequences of the township’s water system, which is failing.

The city and township have fought in court for more than eight years over water and sewer rates and continue to discuss creating a new water authority to oversee water and sewer operations for both governments.

Skibbe said for the last 18 months, there has been a long string of service line breaks and expenses have soared as a result. He said in the late 1970s and early 1980s a material called Polybutylene — also known as blue-poly — was used for service lines.

Now, the pipes are breaking and it is projected the lines will continue to fail until they can be swapped out with copper lines.

The township is awaiting word on a $15.8 million, 40-year, low-interest loan from the state which would allow the township to replace all of its service lines. If approved, the money for the loan would come from the state’s Drinking Water State Revolving Fund.

Still, Skibbe said, the township needs the revenue from another rate hike to cover the cost of future repairs and rising costs. Skibbe said material costs have ballooned by 30% and current rates aren’t enough to prevent falling into the red and having the water and sewer systems fail further.

“Our revenues are falling behind our expenses and if you have ever run a business, you know that is not a good side to be on,” he said. “Right now we are chasing our tail with the blue-poly and it makes up almost every single service line. They were all put in during a four-year window, and seemingly are all deciding to fail in a very similar window.”

Rhynard said he expects more information about rates at a future meeting and said perhaps paying the city its rate increase is the right thing to do.

Skibbe said he would arrange a meeting between himself, Rhynard, and Bill Fahey, the lead attorney in the litigation over water rates. There was no commitment that the topic would be on next month’s agenda.

Trustee Cash Kroll said the township has been taking action to improve the failing water system. He said there was a class action lawsuit against the company who created blue-poly, but township leaders at the time didn’t seek damages from the company.

Now, Kroll said, the board is playing catch up.

“Unfortunately, we are paying for the sins of the past,” he said. “I don’t know what else we can do but to move forward and fix these things.”