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Sault Ste. Marie OKs $40M bond ordinance and tentatively awards SRF wastewater contracts
Summary
The commission adopted a bond ordinance capped at $40 million and tentatively awarded the Phase 3 wastewater-plant construction contract to Myron Construction for $34,110,606 and the Power Canal sanitary contract to Pipeline Management Company for $904,424.42; Donahue & Associates' engineering contract was increased by $2,145,405.
Sault Ste. Marie's City Commission on July 6 gave first approval to a bond ordinance authorizing up to $40 million in water-supply and sewer-disposal revenue bonds to finance SRF-eligible improvements and tentatively awarded construction and engineering work for the wastewater-plant Phase 3 project.
Finance director Kallie Perrin told the commission the project budget is $35.1 million; the $40 million cap in the bond ordinance provides leeway while bids and state SRF approvals were finalized. When bids arrived, value-engineering trimmed some items to keep the project within budget, Perrin said.
City engineer David Boyle and project staff recommended tentative awards and contract actions required by SRF timelines: a tentative award to Myron Construction Company for the wastewater-treatment-plant improvements ($34,110,606), a tentative award to Pipeline Management Company for the Power Canal sanitary Phase 2 work ($904,424.42), and an amendment No. 1 to Donahue & Associates' engineering services increasing that contract by $2,145,405 for a revised total of $4,000,405 to support construction administration. Commissioners voted unanimously on the motions.
Engineers explained some material substitutions (for example, aluminum tank covers instead of stainless steel) and other value-engineering adjustments that reduce long-term longevity modestly but keep the project within SRF budget constraints. Final contract awards will return to the commission for formal authorization after SRF paperwork and bid openings are complete.
The city said the tentative awards are necessary to meet SRF submittal timelines; final contract awards and any further budget adjustments will be brought back to the commission for action.
