Title
Approval to take a resolution for approval by Council authorizing an application to modify loan agreement DW-5456 to increase the loan amount by $928,000.00, for a revised loan amount of $3,780,444.02 (which amount includes $79,832 program subsidy which is not required to be repaid), and a revised loan ordinance and supporting loan documents in a form acceptable to the County Attorney’s office, to provide increased funding for the Otowi Well #2 Pump House and Equipment and Otowi Well #4 Motor Control Center (MCC), required because the final bids came in over the original estimated project cost and loan amount.
Recommended Action
I move the Board of Public Utilities authorize staff to take a resolution for approval by Council authorizing an application to modify loan agreement DW-5456 to increase the loan amount by approximately $928,000.00, for a revised loan amount of approximately $3,780,444.02 (which amount includes approximately $79,832 program subsidy which is not required to be repaid), and a revised loan ordinance and supporting loan documents in a form acceptable to the County Attorney’s office, to provide increased funding for the Otowi Well #2 Pump House and Equipment and Otowi Well #4 Motor Control Center (MCC).
Staff Recommendation
Staff recommends approval of the motion as presented.
Body
As a separate agenda item this evening, BPU will consider award of the contract with RMCI for the Otowi Well #2 Pumphouse and Equipment and Otowi Well #4 MCC. As noted in that discussion, the low bid came in significantly above the initial engineer’s estimates, upon which the original loan for the project was based. The explanation for the higher project costs is discussed in that agenda item and is not repeated here. The NMFA has acknowledged that they have seen similar escalation in most of the projects they have provided funding for, have acknowledged that they have additional loan funds available, and are working to expedite modifying loan agree...
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