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Council approves CWSRF change order and pay resolution, contingent on EGLE sign-off

2352216 · February 20, 2025
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Summary

Ishpeming City Council approved change order No. 3 for the Combined Water and Sewer Rehabilitation Fund (CWSRF) project and a related pay resolution, with both actions made contingent on approval by the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

The Ishpeming City Council on Feb. 18 approved Change Order No. 3 to the city's CWSRF project and a related pay resolution, but both were adopted contingent on final approval by EGLE. City staff said the change order rebalanced contract quantities, added a few new pay items and moved some work to nonparticipating status so those costs would be covered by the city rather than the state loan fund.

Council heard from Chris (city engineer) and Grant (interim city manager) on the change order and pay resolution. Chris said the change order “is a balancing change order” that adjusts quantities and adds a few items after unforeseen site conditions, and that two items related to work on Prairie and Mather streets were being made nonparticipating so they would be paid from local sewer funds rather than the CWSRF loan. Grant told the council that the pay resolution includes $234,854.92 from CWSRF funds and roughly $33,785 from the sewer fund as nonparticipating work.

Council approved the change order and the pay resolution with motions that explicitly made each action contingent upon EGLE’s approval, and members voted in favor. Staff said EGLE must approve all change orders before the city can request reimbursement of those costs from the CWSRF program.

Chris also reported that preconstruction work for the spring water project is underway and that contractors and staff discussed scheduling; biweekly and, if necessary, weekly coordination meetings will be held once construction starts. Councilors discussed delaying work until after July 4 to avoid rushing preparations and to coordinate related street work on Third Street, which will require council direction on design options such as medians or street-side parking removal.

Grant reminded council that standard retainage practices would remain in place: retainage would be held until final verification of completed work in spring. Council also approved one pay application for Second Street storm sewer work conditional on contract signatures and verification of final quantities.

The actions put the CWSRF project forward for the construction season while keeping final state approval as a condition for payment and reimbursement.