‘First Come, First Served’ Check Valve Reimbursements Approved: Sign Up ASAP (UPDATED)

UPDATE: This article was originally published on Dec. 21, 2021. The City has now released information about the program, and you can find that information by clicking here.

The program to use $500,000 of American Rescue Plan Act (ARPA) funds to reimburse East Lansing property owners for the installation of sewer check valves was approved on Dec. 21 by City Council as part of their consent agenda. 

And any homeowner who has gotten a check valve installed already should submit their documentation ASAP, as the program is on a “first come, first served” basis, and the half million dollars could run dry before everyone eligible can be reimbursed. Up to $3,000 are available per property/property owner — that distinction is foggy, but explained further below.

Here are answers to some homeowners’ questions.

How do I get in line to be reimbursed for having a check valve installed?

According to the now-approved policy resolution creating the program, property owners must submit at least the following documentation that establishes “Eligible Cost:” 

• contractor invoices, 
• proof of payment, 
• a copy of the plumbing permit from the City of East Lansing, 
• and proof of an approved final inspection by the City’s Building Department.  

The documents are to be submitted to City Manager George Lahanas or “his designee,” though there has not been a designee assigned for this program. The City reserves the right to not reimburse a property owner if they determine the documentation is insufficient to establish that the property owner incurred and paid for the eligible cost. 

It’s important to note that the resolution approved by Council states that “the installation must be performed by a licensed contractor, and the property owner’s contractor must obtain a plumbing permit from the City’s Building Department.”

The program is also back dated, meaning anyone who installed a check valve in the City of East Lansing from March 3, 2021, and onward, is eligible. 

And again, the reimbursements are “first come, first serve” as “the City recognizes that the ARPA funds allocated to this program are not sufficient to reimburse all property owners for all installations of backflow prevention valves in the City,” according to the policy resolution.

How much money can I actually get reimbursed?

That depends. While the program allows for up to $3,000 to be reimbursed to a property owner for a check valve installation, the only way someone would get that much money is if they spent more than $3,000 on installation.

Basically, the way the City plans to reimburse these expenses is similar to tax brackets: The first $1,000 spent are eligible to be fully reimbursed, and any dollar beyond the first thousand is eligible to be reimbursed at $.75 on the dollar, with a $3,000 hard cap on total reimbursement. 

The City provides the example that if someone paid $2,500 — often floated as a generic cost for installing a check valve, though it varies from property to property — they’d be reimbursed $2,125. To get to the $3,000 reimbursement, the total cost would need to be around $3,700.

Also, no matter how many properties one person owns, or whether multiple people are owners on a property, it seems the policy will only pay for, effectively, one check valve installation per person.

The policy resolution addresses the matter as such: “Reimbursement is limited to one total payment of $3,000 per property owner and per property. If two or more individuals or businesses jointly own property, the total maximum reimbursement for that property is $3,000. If an individual or business owns more than one property, the individual or business is entitled to a total maximum reimbursement of $3,000, regardless of the number of properties owned.”

Plus, due to the “first come, first served” nature of the program and current available funds — $500,000 — it doesn’t seem likely to cover all the potential applicants, potentially leaving some people with money out of pocket which they expected to be reimbursed for. 

However, Mayor Pro Tem Jessy Gregg did acknowledge at a recent Council meeting and during a meeting of the Council of Neighborhood Presidents that this program, if demand is high, will likely not be a one-time deal, with potential for future rounds of funding to not leave residents holding the bag for a check valve they thought they’d be reimbursed for.

What did Council have to say about this?

Since the item was approved via the consent agenda, there wasn’t any real discussion of the program. However, it has been discussed at various meetings throughout the City, including at prior City Council meetings and Council member Lisa Babcock’s flooding town hall. 

The most recent discussion of the plan — and the only discussion of this iteration of it — came a week ago at City Council’s Dec. 14 discussion-only meeting. 

Interim Director of Public Works Nicole McPherson offered the broad overview and took a handful of questions from City Council members.

The newest Council member, George Brookover, who was elected amid these plans being formed, directed a question at Lahanas, asking whether only individuals would be eligible, or would businesses also be able to capitalize on this reimbursement?

McPherson answered, saying the distinction of “property owners” in the resolution should allow for businesses to apply and receive reimbursements. Lahanas affirmed that was correct, and business owners — basically someone with property attached the City sewer system — would be eligible to apply.

“So I can get one [a reimbursement for a check valve] for my office that had three inches of water in it?” Brookover asked. Lahanas nodded in affirmation.

Brookover then asked about a building that has more than one outlet or drain, and would in theory need multiple check valves. McPherson said that some, larger developments might have multiple sewer connections but it’s not common and could be dealt with on a case-by-case basis.

“I think we need to think that one through, George,” Brookover said to Lahanas.

Babcock then asked if someone had both a business and house, could they pick which one to be reimbursed. The answer was that one can choose. She then asked about someone who owned multiple residential units, like a landlord. Lahanas interjected.

“I actually think we may want to consider, if it’s commercial and there’s multiples, maybe we want to consider a limitation so there’s enough money available for multiple homeowners,” Lahanas said. “Because some people may own 50 houses in the City.”

Brookover added that he had similar concerns and wanted to ensure that the policy wouldn’t allow a few people — or rental companies — to eat up all the funds. It seems that will not be the case, given the limitation of one reimbursement per person regardless of the number of properties owned that was worked into the resolution that Council passed.

“My only point is if you’re thinking of having us vote on something next week, I just think we need to consider that before we start voting on something,” Brookover said on Dec. 14.

Council voted on the resolution, approving it in a 4-0 vote as part of the consent agenda, on Dec. 21. Council member Lisa Babcock was absent from the meeting.

This article was updated on at 7:30 a.m. on Dec. 22, 2021 to more accurately reflect how Council voted on this item.

UPDATE: This article was originally published on Dec. 21, 2021. The City has now released information about the program, and you can find that information by clicking here.