Ann Arbor Applies for SAW Funds

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In action taken at its Nov. 7, 2013 meeting, the Ann Arbor city council has applied for six different state grants to support capital water projects. The applications were made under state legislation passed in 2012 that forms the statutory framework of the Stormwater, Asset Management and Wastewater (SAW) program – a grant program.

The legislation funds grants and loans for what the staff memo accompanying the resolutions describes as “asset management plan development, stormwater management plan development, sewage collection and treatment design plan development, and state-funded loans to construct projects identified in the asset management plans.” [.pdf of FAQ by the State of Michigan on the SAW program] [PA 511 of 2012] [PA 560 of 2012] [PA 561 of 2012] [PA 562 of 2012]

Although communities that are awarded grants can receive a maximum of $2 million in total grant funds through the SAW program, the city of Ann Arbor is applying for the following six grants, on the idea that it will maximize its chances if the state uses a lottery type system. The first $1 million has a 10% local match requirement, and the second $1 million of grant money has a 25% local match requirement.

The city is applying for funding for some projects that have already been started, because money awarded through the SAW program can be spent retroactively as early as Jan. 2, 2013. The council passed six resolutions corresponding to grant requests from the Michigan Dept. of Environmental Quality for the following projects.

  • Asset Management Plan for the Sanitary System ($1.1 million): Local match requirement is 10% of first million ($100,000) plus 25% of second million ($25,000) for a total of $125,000.
  • Asset Management Plan for the Stormwater System ($1.1 million): Local match requirement is 10% of first million ($100,000) plus 25% of second million ($25,000) for a total of $125,000.
  • Sanitary Sewer Wet Weather Evaluation Project (retroactive) ($1.2 million): Local match requirement is 10% of first million ($100,000) plus 25% of second million ($50,000) for a total of $150,000.
  • Stormwater Model Calibration Project (retroactive) ($750,000): Local match requirement is 10% of first million ($75,000) or 25% of second million ($187,500) for a maximum of $187,500.
  • Wastewater Treatment Plant (WWTP) Asset Management Program ($350,00): Local match requirement is 10% of first million ($35,000) or 25% of second million ($87,500) for a maximum of $87,500.
  • Asset Management Plan for the Wastewater Treatment Plant and the Sanitary Sewer System ($1.5 million): Local match requirement is 10% of first million ($100,000) plus 25% of second million ($125,000) for a total of $225,000.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow.