Title
Approval of NMFA Binding Letter of Commitment for the Denver Steels Phase II Water Service Line Replacement Project in the Amount of $525,000.00
Recommended Action
I move that the Board of Public Utilities recommend Approval of the New Mexico Finance Authority (NMFA) Binding Letter of Commitment and EPA Form 4700-4 for DWL-6651 and Authorization to Submit Documents Required By the Terms and Conditions of the Letter.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
The County is currently constructing the Denver Steels Project - Phase II, funded under DWSRF Loan No. 6651. During active construction, the on-site contractor identified multiple existing galvanized water service lines that are severely corroded and actively leaking. While replacing these lines is vital for public health and system integrity, this specific scope of work is ineligible for financial reimbursement under the terms of the existing DWSRF Loan No. 6651 agreement. This dedicated Lead Service Line Replacement (LSLR) funding that also applies to replacing galvanized service lines will allow the current on-site contractor to immediately replace the failing infrastructure, avoiding mobilization delays and reducing overall project costs. The targeted scope of work includes installing new PEX service lines from original residential meter location to the new meter location at the property line.
Alternatives
If not approved, this will halt the immediate replacement of leaking lines. The County or homeowners would bear higher future replacement costs, and public health risks from corroded lines would persist. Any further delay of the project will increase contractor standby costs and miss the current construction window.
Fiscal and Staff Impact
The original project financing consisted of a $2,102,000.00 repayable Drinking Water loan and a $625,000.00 fully subsidized grant (totaling $2,727,000....
Click here for full text