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Ishpeming council trims water project scope, approves change orders to protect reserves
Summary
The Ishpeming City Council approved change orders and a reimbursement resolution amendment tied to external approval, removing some street and sidewalk work to preserve contingency and avoid drawing on water/sewer reserves. The moves leave roughly $240,000 in contingency and make a $752,000 contract deduction.
The Ishpeming City Council on Monday approved a set of change orders and an amended reimbursement resolution for the city’s Drinking Water State Revolving Fund (DWSRF) project, cutting some street and sidewalk work to protect utility reserves.
City staff described the measures as an interim quantity adjustment to rebalance work remaining on Division Street and D and E Street and to avoid repeat change orders as underground issues were encountered. "It brings you back into more of a what do we have left to do and gives them cushion so I don't have to come back next month and say hey we got another change order," said Christopher, a city staff member explaining the Pay & Dolan change order.
Why it matters: The adjustments reduce near-term spending and leave the city with contingency money to finish prioritized segments, but they also postpone work residents may have expected this construction season.
Council approved change order number two for Pay & Dolan, which staff said better reflects current quantities after encountering unanticipated storm-sewer and underground conditions. The body then adopted Resolution No. 4-2026 (reimbursement packet No. 10) with an amended "therefore" clause making the reimbursement contingent on Eagle's approval of change order number two; staff said several items in the pay request rely on that change order.
The council also approved Lindberg change order number three, a deduction of about $752,000 that removes Park Street work from the current contract and scales back some sidewalk replacement. Staff said removing those items and rebalancing quantities should leave roughly $240,000 in combined contingency across the two contracts. City staff identified approximately $140,000 in sidewalk work taken out of the immediate scope (Third Street south from Michigan to Park), while maintaining required curb and driveway work so roads can be restored properly.
Gray, a city staff member, placed those decisions in broader fiscal context, saying the city previously "went out and we got an additional $4 million in bond funding for this project," but that staff wanted to preserve unmatched funds and avoid dipping into water and sewer reserves until additional match funding can be secured.
Staff said they expect to return with the remaining PND contract package for Southbury in March, combining water and sewer elements so the council can review the full scope before additional work moves forward.
The council’s votes finalize the change orders and the amended reimbursement resolution; the meeting record shows the motions were supported and recorded as passed.
