Commission moves ahead with summer project plan

By RALPH ANSAMI

ransami@yourdailyglobe.com

Ironwood — The Ironwood City Commission on Monday took care of some Phase 4 sewer-water project business so a loan closing can begin.

Meeting in a special session, resolutions and contracts for the summer’s infrastructure project were approved.

The commission approved a resolution for a U.S. Department of Agriculture Rural Development loan of $2,701,000 for the water project and $422,000 for the sewer work.

City manager Scott Erickson noted the $422,000 loan will be matched by a $1,263,000 federal grant.

The borrowed money for both the water and sewer work will be repaid over a 40-year period at an interest rate of 1.625 percent.

“These items here today are all related. They’re all required by USDA for us to go ahead with the loan closing,” Erickson said.

Mike Foley, of Coleman Engineering, said after the meeting the plan was to publish a two-page notice in Wednesday’s Daily Globe so the project could proceed as soon as possible.

An ordinance to provide for the issuance and sale of water and sewer revenue bonds was approved.

A $3,378,980 contract between the city and Ruotsala Construction, LLC was also approved, including a change order adding around $160,000 to the project, since the bid came in lower than expected.

The project boundaries are Lake Street to Luxmore Street, and south of U.S. 2, behind Red’s Auto, to Ayer Street.

In addition to the infrastructure work that will require street paving, an added benefit to the project, Erickson noted the project also includes work on a second water line that extends to the city’s wellfields in Ironwood Township.

A public hearing will be scheduled after the loan is closed.

All of the Monday items were passed on 3-0 votes, with commissioners Rick Semo and Kim Corcoran absent.

Erickson said some expenses that have already occurred, such as legal fees and the cost of the publishing notice, will be reimbursed to the city after the loan closing.

Because the bids came in lower than expected, the city will also be able to do work on Francis Street, from Lowell to Lawrence, as part of the project. Erickson said that block will probably be done next year.