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Munising commission authorizes publication of intent to issue water and sewer revenue bonds, approves related engineering and legal agreements

Munising City Commission · February 5, 2025
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Summary

The commission voted to publish notices of intent to issue revenue bonds for water and sewer improvements, approved engineering contracts and legal services needed for USDA loan closings, and began the 45-day referendum period for the bond publications.

The Munising City Commission voted to publish notices of intent to issue revenue bonds for planned water and sewer system improvements and approved related engineering and legal agreements needed for anticipated USDA loan closings.

City staff told commissioners the water resolution lists a maximum issuance amount of $265,000 (about 20% more than the USDA application to allow flexibility for cost changes before closing). The two bond publications start a 45-day referendum period required by state law for revenue bond notices. The commission moved and adopted the resolutions to publish notice of intent to issue revenue bonds and a declaration of intent to reimburse for both systems.

Commissioners also approved separate engineering agreements for the sewer and water projects. The sewer engineering package with Coleman Engineering included three fee components: basic services (listed in the packet at $130,400), resident construction engineering (noted at $9,500 for a full-time inspector May–November 2025), and additional services (soil borings, material testing and Build America/Buy America compliance) bringing the cited total in the presentation to roughly $324,000. Staff said the Build America/Buy America requirement is new and may require waivers for some foreign-sourced items. The commission adopted the sewer engineering agreement with the attached fee schedule and then approved a similar water engineering agreement.

The commission approved legal services agreements with the city attorney (listed as Oda Nordine and Pickins in the packet) to review USDA-standard contracts and to certify right-of-way maps required for bond closings. Staff emphasized the city attorney’s role in contract review and right-of-way certification; the agreements include hourly and not-to-exceed provisions and were approved by roll call.

The vote to publish the bond notices and the related contracts was carried by majority roll call. The resolutions’ publication begins the statutory referendum clock; staff said closing on bonds is still contingent on final USDA and bond-counsel processes.

Next steps: staff will proceed with required publication notices, finalize engineering scopes and the legal paperwork for closing, and return with final bond-authorizing documents when the city is ready to close.