Title
Approval of Budget Revision 2022-28 for the Construction of the White Rock Wastewater Treatment Facility Pending Finance through the Clean Water State Revolving Fund
Recommended Action
I move that County Council approve Budget Revision 2022-28 as summarized on attachment A, pending financing through the Clean Water State Revolving Fund via Ordinance 712. I further move that attachment A be made a part of the minutes of this meeting.
Utilities Manager Recommendation
The Utilities Manager recommends that Council approve the motion as presented.
Board Recommendation
The Board of Public Utilities reviewed this request at their November 17th meeting. The BPU unanimously endorses approval of the motion as presented.
Body
The Department of Public Utilities is requesting approval of Budget Revision 2022-28 for the construction of the new White Rock Wastewater Treatment Facility.
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. Prior to issuing the bid, staff’s plan to fund the shortfall between the established budget and Engineer’s Estimate was to seek $1.1 Million in County ARPA Funds that County Council tentatively approved DPU to request and fund the remaining balance with reserves.
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. Bid results well exceeded the engineer’s estimate and b...
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