By Iron Mountain

Daily News staff

KINGSFORD — A $13.4 million water project in Kingsford is eligible for grant and loan assistance, but the city must still try to gain $4.4 million in additional funding, council members learned this week.

The project in the Ford Addition and Heights areas would replace more than 343 water access lines and more than 23,000 feet of water mains.

According to City Manager Mike Stelmaszek, the state has changed its funding distribution parameters and is now offering 50% in grant funding — rather than 75% — combined with a $2,274,000 loan at 2% interest rate over 40 years.

The proposed project has an estimated cost of $13,425,000, which means the city would be underfunded in the amount of $4,438,410, Stelmaszek said.

He’s pursuing other funding options, but if unsuccessful the city may need to bond on the open market.

Ryan Morgan of GEI Consultants said they have built in higher estimated costs for materials and labor to ensure bids don’t come in higher than budgeted, as happened on a Heights project slated to begin in the spring.

Bids for that $8.4 million project came in almost $1.3 million higher than expected, which forced the city to find some additional funding sources.

Kingsford has increased its water and sewer rates substantially in recent years, although its charges still rank among the lowest in the Upper Peninsula.

The new project would take place in parts of the Ford Addition, as well as areas west of the work that’s planned for the Heights. Payne & Dolan of Gladstone is the contractor for the Heights project scheduled for Wilson Avenue, Harrison Street, Cleveland Avenue, Saratoga Street and parts of Bell Court and Rexford Avenue.

The state has required communities to replace aging lead pipes and water access lines. Some of the water mains being replaced are 100 years old. With completion of the two projects, the city would be ahead of the state’s timeline to have the lines replaced.

The grant and loan assistance offered to Kingsford is through the Drinking Water State Revolving Fund administered by the Michigan Department of Environment, Great Lakes, and Energy.

In other business Monday, the council:

— Learned that the city will host its second-annual Christmas Tree Lighting at 4:30 p.m. Dec. 7. After the large attendance last year, the tree lighting will take place at City Hall but all the other events will be at the Michigan National Guard Armory. There will be hot cocoa, sweet treats, games and a visit from Santa and Mrs. Claus. They are also coordinating with the Breitung Township Schools and the National Guard.

— Noted the East Breitung Avenue project is underway on two blocks of Woodbine Avenue. This is part of a project that will reconstruct Breitung Avenue from Carpenter to Woodbine and two blocks of Woodbine. It includes replacing the water main and water main access lines to the residents and businesses along this stretch of roadway in conjunction with road reconstruction. FA Industrial Services of Iron River is the contractor for the $1,064,112 project that’s aided by a state transportation grant of $280,000.

— Accepted the low bid that meets specifications for removal of 15 stumps. Bids were received from 1st Down Tree Service of Iron Mountain for $1,645 and Richard Victorson Stump Removal of Iron Mountain for $2,960.

— Learned auditor Scott Sternhagen of CLA and his staff will be at the city Oct. 9-12 to gather information for the annual audit.

— Approved a fireworks permit request from Todd Dooley for a show at the regular season’s final home Kingsford High School football game Oct. 13 at Flivver Field.

— Scheduled a hearing for 6:45 p.m. Oct. 16 on a retail store variance request.