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Munising approves reduced final pay draw as USDA federal funds remain frozen

Munising City Commission · February 5, 2025
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Summary

Commission approved a reduced final contractor pay draw for a street project after staff said USDA federal funds were frozen; the city received a $97,000 deposit from USDA but full federal draw remains pending while change orders are finalized.

The Munising City Commission approved a reduced final pay draw to a contractor on a street project after staff reported that federal USDA funds were frozen during the agency’s file review.

Staff said the contractor’s full final pay draw would have been larger but USDA would not release the full federal amount because two change orders were not signed by all parties. According to staff, USDA did deposit $97,000 of remaining project funds while the parties work to complete required signatures and documentation. Commissioners approved the contractor draw shown in the meeting materials; the transcript records the approved figure for the final pay draw as $3,339 to Drew Excavating.

Staff explained this allocation is an internal reallocation within the water fund: money set aside for the Bayshore wellhouse was shifted to ensure the contractor for the Varnum (or Farrum) Street project could be paid the available local portion and to keep projects moving while federal issues are resolved.

Next steps: staff will continue to coordinate with USDA and the project representative to secure remaining federal funds and complete contract closeout documentation; the commission will receive updates when USDA releases the balance.