Title
Reissuance of Loan Agreement and Promissory Note for Clean Water State Revolving Fund (CWSRF) Loan 083 as amended in Ordinance No. 712, pending ordinance effective date, for the construction of the White Rock Water Resource Reclamation Facility (WRRF).
Recommended Action
I move that County Council approve reissuance of the amended CWSRF 083 Loan Agreement and Promissory Note pending Ordinance No. 712 effective date, and authorize the County's Utilities Manager to sign the final documents.
Utilities Manager Recommendation
The County Manager recommends that Council approve the motion as presented.
Board, Commission or Committee Recommendation
The BPU recommends that Council approve the motion as presented.
Body
The Clean Water State Revolving Loan #CWSRF 083 was executed on April 12, 2019, to fund the design and construction of the project. The design contract was executed on July 31, 2019, in the amount of $2,199,144 (including NMGRT). The remaining funds in the loan for construction is $14,800,856 (which is the current approved budget for the project.) Upon completion of design in May 2021, the engineer's construction estimate for the project was $16,173,717 (including NMGRT) which when combined with the design costs was $1,384,387 over the $17,000,000 loan.
This year, DPU is experiencing significant cost overruns on other utility projects due to the COVID-19 pandemic. Impacts causing material shortages and supply chain delays have led to significant cost increases. DPU received two bids on October 11, 2021, for Bid No. IFB 22-27 for the purpose of the White Rock Water Resource Reclamation Facility (WRRF) Construction Project. While the bid results are still under review, both bids well exceeded the engineer’s estimate and budget authority for the project. Next, DPU approached the NMED Construction Programs Bureau, who administers the CWSRF loan, about other funding opportunities and the possibility to increase the existing loan amount. NMED has...
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