Ashland County committee votes to seek bid approval for Madeline Island shoreline work, contingent on attorney review of federal-funding clause

The Ashland County Highway Committee voted to authorize moving the Madeline Island shoreline riprap project toward public bidding while requiring legal review of contract language that would allow the county to back out if federal funding is rescinded.

Committee member Marty made the motion and Tom Reimer seconded it; the motion passed after discussion.

The project is currently designed and awaiting permitting with the Wisconsin Department of Natural Resources, and the county has a $900,000 FEMA grant allocated for riprap work on Madeline Island. County staff said there is also a county-funded portion budgeted — including about $300,000 identified for county costs — and that engineering work already under way will cost the county roughly $75,000 regardless of whether construction proceeds.

Highway Department staff said they are concerned about the federal funding’s stability. A staff member said, “My problem with it is what’s happening at the federal level is making me nervous if this grant is still going to be there when we want it.” Committee members discussed whether bids could include a clause allowing the county to decline award if federal dollars are rescinded. A committee member asked, “Can we put a clause in there when we bid it that provided we get the grant?” and staff answered that they believed a contract condition of that nature was possible but recommended attorney review.

County staff said SEH has produced design work and would handle bidding; the project still needs DNR permits. If bids are issued and federal funding is later withdrawn, the county board — not the committee alone — would have to approve any decision that would put the county on the hook for substantial construction costs. A staff member said, “If we don’t get the grant, both finance committee and the county board are going to have to approve it because we’re potentially putting the county on the hook for a million dollars.”

The committee directed staff to consult the county attorney (Max or Katie were named as contacts) to confirm whether bid documents may include a withdraw/force-majeure clause tied to federal funding and to coordinate with Wisconsin Emergency Management for status updates before bidding.

The committee recorded a formal motion to advance the project to bidding provided the county attorney confirms contract language that allows withdrawal if federal funds are rescinded; the motion passed by voice vote.

Staff said they would seek a status update from Wisconsin Emergency Management and recommended bringing any unresolved legal or funding risk to the finance committee or full county board if needed.