Jackson County told major Verigee energy upgrades will miss March substantial-completion date; landfill ownership and courthouse access cited as causes

Jackson County commissioners heard a detailed progress report from Verigee on a multi-site energy-efficiency and infrastructure project and were told several major components — including geothermal work at the courthouse and a wastewater treatment installation at the county landfill — will not meet the contract's March 31, 2025, substantial-completion date and are now expected to finish later in the year.

The update, delivered during a public study-session item, covered completed work (LED lighting retrofits and HVAC replacements at multiple county facilities), near-term installations (solar canopies and controls) and problem areas that Verigee said have pushed the schedule back: extensive coordination with the city on a courthouse parking-lot reengineering, utilities encountered around Wesley Street, permitting and an ownership dispute over part of the landfill parcel that requires state action before county permitting can proceed.

Why it matters: the delay affects active county operations and carries potential cost consequences. Commissioners raised concerns that missed milestones could increase county expenses (for example, continued leachate hauling from the landfill) and asked whether the county or Verigee would bear those costs. Verigee and county administration told commissioners they are pursuing solutions, including pushing an asset transfer through the state legislature so county permitting for the landfill can move forward.

Verigee's reported progress and problems Verigee told the board it has completed LED lighting retrofits across county buildings and has replaced or upgraded substantial HVAC systems at sites including Northlawn, the youth center and the Wesley Street jail; the contractor said the new jail systems are code-compliant and include modern controls. "100% of that has been addressed," Verigee said in response to a question about replacing improvised controls at the jail.

Solar work is in place at several sites. Verigee reported rooftop arrays at the event center and the youth center are operating and that the airport installation is roughly 90% complete. The contractor said panels were sized to meet building loads rather than to export meaningful energy to the grid because current rules and rates (net-metering changes and wholesale buyback rates) reduce the financial return of oversizing arrays.

Work that remains and reasons for delay Verigee said it is about 50% complete on geothermal installations and related HVAC upgrades at the Health and Human Services Building (HSB) and the courthouse. At the courthouse, Verigee cited two primary constraints: scheduling around court operations (which limits access to ceilings and service spaces) and a requirement to reengineer a nearby parking lot before drilling the geothermal field beneath it. The contractor also reported striking a water main while working near Wesley Street; facility staff and the contractor resolved that issue.

The landfill wastewater-treatment work is further behind. Verigee said roughly 10% of that scope is complete and that the project was delayed when the team discovered an ownership split: approximately half the landfill parcel remains state-owned while the county owns the other half. Verigee said county legal and administration staff engaged state agencies and the county's state representative; a planned legislative transfer of the property to the county "for a dollar" remains before the state legislature, and Verigee said permitting cannot proceed fully until that transfer and related approvals are complete. Verigee estimated that the ownership and permitting issues pushed the landfill schedule by about six months but said it still intends to complete the remaining work by the end of the year.

Commissioners press on schedule, cost and oversight Commissioner Bair told the contractor that "substantial completion is often equated to beneficial occupancy" and pressed why the work was not nearer completion with 75 days until the March 31 contract milestone. Bair repeatedly pressed the administration and contractor for rationale and for earlier communication about the delays.

Other commissioners asked whether delays change the economics of the arrangement for county funds used to run some facilities (for example, the road commission facility funded by Act 51 dollars) and whether the county had a mechanism to allocate project costs and benefits across non-general-fund accounts. Administration said it would review allocation questions and work with commissioners to assess financial impacts.

Several commissioners said they expect administrators to consider withholding or adjusting contractor compensation if the project fails to meet contract expectations rather than passing cost increases to county taxpayers.

Formal actions and votes taken during the meeting - The board approved the study-session minutes for Jan. 7, 2025 (moved/second not specified in the transcript); the motion carried on voice vote. - The board voted to move into a closed session under MCL 15.268; the motion was moved by Commissioner Kennedy and supported by Commissioner Snell. The clerk called the roll and the motion passed with a majority of commissioners voting yes. - During the closed-session portion the board voted to "concur with the recommendation of attorneys" (motion text in the transcript: "Motion is to concur with the recommendation of attorneys that we will set for."). A roll-call vote recorded six or seven yes votes and one recorded no vote by Commissioner Behr; the motion passed.

Next steps and outlook Verigee and county staff told commissioners they are pursuing the state-level property transfer, continuing permitting steps with EGLE (Michigan's environment permitting authority referenced in the discussion), and coordinating structural and electrical engineering reviews (including stamped drawings required for interconnection agreements). The contractor reiterated a target to finish outstanding items by year-end, but commissioners signaled they expect written schedule and financial impact updates and said they will review contract remedies if necessary.

The meeting moved afterward into the closed session authorized under MCL 15.268 and later adjourned.