Ishpeming tentatively awards Payne & Dolan bid for 2026 wastewater work, caps city contribution at $2 million

The Ishpeming City Council tentatively awarded the construction contract for the 2026 wastewater system improvements to Payne & Dolan and amended the award to cap the city’s contribution at $2,000,000, including contingency, as part of resolution 16‑2026.

Randy and staff described the project as a reallocation of remaining CWSRF (Clean Water State Revolving Fund) dollars away from a second river crossing and into sewer and water work in the Salisbury area. Staff said the total project relies on approximately $850,000 in loan or grant dollars with the remaining balance to come from the city sewer fund — roughly $1.5–$1.6 million before contingency.

Greg (speaking about finance) said the sewer fund currently holds just over $3 million in cash reserves and recommended retaining about $1 million as a floor, noting the city’s policy thresholds and recent infrastructure demands. Council discussed contingencies and asked that the city contribution be capped; the motion was amended to specify a not‑to‑exceed $2,000,000 contribution from the city, including contingency. Chris confirmed a change order for the second river crossing would be brought forward separately and staff expect to return with final numbers at the July meeting if available.

The council voted to adopt resolution 16‑2026 as amended and to tentatively award the construction contract to Payne & Dolan. The award remains contingent on outside approvals and final paperwork.