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GRWA Gets Record Stimulus Package

Snow Country Low Bidder on Township Project

Ramsay - July 17, 2009

The Gogebic Range Water Authority received good news. It will be the recipient of nearly 11 million dollars of American Recovery Act Funding.  The money will mostly go to paying off prior debt of the Authority. It is believed that the funding package is the highest single  funding award by the ARA to date.  The U.P. has been one of the largest recipients of stimulus money in the entire country (ed. note - we know, it's about time!)

The package also includes funds for the Ironwood Township Lake Road Water Project and the sinking of a new well field in the township.

Coincidentally, the news came just hours before the scheduled bid opening for the Lake Road Project. On hand at the opening were Verbos, GRWA Administrator, Walt Rickard, Board Chairman, several interested bidders and three members of the Township Board of Trustees, Steve Boyd and Bob Fredrickson and Township Supervisor Kim Mattson.

The 10 bids received,  ranged from Snow Country's low bid of $3,599,000 to a high bid of  $5,100,000 from Peterson Excavating in Hurley. Contractors from Minnesota, Wisconsin and Michigan all sought the project.

Background information provided by Jean Verbos

Gogebic Range Water Authority (GRWA) was created in 1982 and is a Michigan
Municipal Corporation made of the following members:

Bessemer Township
Wakefield Township
Charter Township of Ironwood
City of Bessemer
City of Wakefield

The GRWA operates with an I I member board; 2 members from each community plus
an at-large member appointed by the GRIW? Board. GRWA hires an administratorro
handle the day-to-day operations of the authority. The GRWA Board acts as a unit on
issues involving water supply and delivery. It was created in an attempt to consolidate
services to achieve economies of scale. Recently the GRWA, through franchise
agreements, has taken over the operations of the township's water systems.

Project Costs:
Phase I -2000
USDA Loan: $2,833,000

Phase 2 - 2003
USDA Loan: $2,798,000

Comet/Jackson - 2005
USDA Loan: $726,000

USDA Grant: $3,172,000
USDA Grant: $1,502,000 EDA Grant: $g50,000

Oak Lane - 2005
Federal Emergency Water Assistance Grant: $300,000 (Obtained through USDA)

Wal-Mart Water Main 2007
Paid for by Wal-Mart: $220,000

Anvil/Indianhead - 2008
USDA Loan: $1,550,000 USDA Grant: $150,000

Water Storage Tank - 2008
USDA Loan: $652,000 - USDA Grant: $150,000 - Grand view Hospital: $35,000 and
contribution of land for tank site.

USDA Loan: $2,780,000

USDA Grant: $2,250,000

Total project costs through the proposed Ironwood Township project:
Loans: $11,339,000 Grants and other contributions: $8,629,000
Grand Total: $19,968,000 (43.2% gan|

Which will have constructed:
l0 Miles of 16" water main -6.5 Miles of 12" water main - 5.6 miles of 8' & l0" water
main; 2 wells; a treatment plant; 2 booster stations and a 250,000 gal. water storage tank.

 

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