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Commission approves $20.8 million in water contracts and authorizes $30 million bond; adopts city manager job profile

2325027 · February 4, 2025
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Summary

The Battle Creek City Commission approved three construction contracts for water-main and lead-service-line work totaling roughly $20.8 million, authorized a bond ordinance not to exceed $30 million for water-system projects, and adopted a city-manager job profile.

The Battle Creek City Commission approved three lowest responsive bids for water infrastructure projects and authorized a bond ordinance to secure financing, and separately adopted a job profile to guide a city-manager search.

Madam Clerk read resolution 69, which accepts Hoffman Brothers Incorporated’s lowest responsive bid for Contract B (post-addition water-main and lead service-line replacements) in an estimated amount of $15,334,966.29; the city may authorize change orders up to 5% in aggregate for city-initiated, preapproved unforeseen field conditions. The clerk said the project is funded through the Drinking Water State Revolving Fund (DWSRF). The motion to approve resolution 69 was moved and supported and the chair announced that resolution 69 “has been approved.”

Resolution 70, for Contract C (Verona Wellfield power and control improvements), accepted Centennial Electric LLC’s bid in a not-to-exceed amount of $4,134,400; the city again authorized up to 5% aggregate change orders for unforeseen field conditions. The commission moved, supported and approved resolution 70.

Resolution 71, for Contract D (neighborhood lead-service-line replacements), accepted Hunter Prowell Company’s estimated bid amount of $1,358,683 with unit prices prevailing, and adopted the same 5% aggregate change-order authorization; the commission approved resolution 71.

Separately, the commission approved resolution 73, a bond ordinance authorizing issuance of water and wastewater system junior-lien revenue bonds in an amount not to exceed $30,000,000 under the Revenue Bond Act of 1933 (Act 94, Public Acts of Michigan 1933). The clerk stated the full project amount was included although the eventual loan and repayment amount will be less; the resolution said the projects are funded through the DWSRF.

During public comment earlier in the meeting, resident John Kenneffick questioned the use of loans and cited a figure he said represented the total taxpayer cost of three water-related resolutions: “$20,828,049.29,” and raised concerns about interest costs and broader borrowing by the city. The clerk’s readings of the contract estimates align with that aggregate total. Commissioners did not amend the contract awards; one commissioner asked whether state reimbursement might be available for lead-pipe replacement work.

Finally, the commission approved resolution 74, which adopts a job profile for the city-manager search based on commissioner and stakeholder feedback.

All motions for resolutions 69, 70, 71, 72, 73 and 74 were moved and supported in the meeting record; the clerk announced each resolution as approved on the record.