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Penobscot County weighs pausing Franklin Street and HVAC work as contractors await payment
Summary
County staff told commissioners that invoices totalling several hundred thousand dollars are pending for building HVAC work and the Franklin Street project; commissioners directed staff to negotiate with contractors and to use ARPA funds for short‑term payments while verifying federal grant eligibility.
Penobscot County commissioners spent a major portion of their Dec. 17 meeting reviewing cash‑flow risks on two construction projects and directing staff to negotiate short‑term payment arrangements with contractors.
Director McDonald told the board that contractors performing HVAC work at the county building and work on Franklin Street will likely not submit another invoice until mid‑ to late January and that the county is facing invoices now totaling roughly $680,000. “We have invoices right now totaling 680,000,” he said, noting the largest single equipment invoice was dated Nov. 30 and that Mechanical Services warned a late payment could place pressure on their suppliers.
The commissioners discussed several options for covering near‑term costs, including drawing on ARPA‑designated funds that staff said are available to the county. One commissioner summarized the concern: paying a large invoice without secured financing could force the county to borrow from other internal accounts; staff responded that ARPA money earmarked for these projects could be used to satisfy the immediate $60,000 Benchmark invoice while longer‑term financing is arranged.
Commissioners also discussed the operational risks of stopping work and the likelihood contractors would reprice work if suspended for months. Director McDonald said contractors are aware of a possible shutdown and that delaying work risks increased costs: if work is suspended until spring, he said, contractors may reprice supplies and labor when work resumes.
On federal funding, staff raised an outstanding federal energy grant they described in the $80,000–$85,000 range that could offset part of the Franklin Street HVAC costs but said Department of Energy contacts had undeliverable email addresses and that Davis‑Bacon federal labor rules apply. Commissioners asked staff to verify the grant terms and to invite the grant administrator to the Dec. 23 meeting to confirm voucher availability.
As a next step the board directed administration to contact Benchmark and Mechanical Services, tell them the county can commit roughly $60,000 now and ask whether they can continue work on that premise; staff said they would email commissioners and follow up after contractor meetings. The board did not adopt a formal stop‑work order at the meeting; rather, commissioners sought to avoid a mid‑project stoppage and to give vendors courtesy notice if work would be suspended after the next billing cycle.
County officials said they will return to the board with contract‑level guidance and, if needed, a legal review of stop‑work obligations under the contracts.
