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Commission tables vote on KDHE loan increase for Junction City water-plant project
Summary
City staff told commissioners an addendum from KDHE to expand a $15 million loan by $2.7 million had not been received; commissioners voted to table the ordinance until the addendum and HDR/KDHE representatives can appear for questions.
The Junction City Commission voted to table consideration of an ordinance that would authorize an addendum increasing a KDHE revolving loan for the city’s water-plant project.
City Manager Ibarra told the commission staff had not yet received the addendum from the Kansas Department of Health and Environment (KDHE). According to the presentation, the existing loan is $15,000,000, and KDHE has approved an increase that would add $2,700,000 for a combined principal of approximately $17,700,000. The original $15,000,000 portion carries an interest rate identified in the record as 1.4 percent; the additional $2,700,000 would carry a higher rate, described as 2.48 percent.
Ibarra said the city has not yet received the signed addendum in hand and that staff had requested more details and amortization tables from KDHE and from HDR, the engineering firm assisting the project. He told commissioners the addendum had been mailed to Mr. Wilcox (staff) but that no final document had been received for council review.
Commissioners raised questions about what the additional funds would pay for and whether the scope of work tied to the added money had already been approved. The presentation included staff remarks that part of the additional cost relates to piping and a wet well elbow that could not be patched and must be replaced.
Given the absence of the finalized addendum and amortization tables and to allow KDHE and HDR to be present for detailed questions, a commissioner moved and another seconded to table the item to a future meeting. The commission voted “aye,” and the chair declared the motion carried; no deadline from KDHE was stated on the record.
Staff said that if the addendum arrives before the next meeting they will circulate the document and any amortization tables to commissioners and notify members if KDHE imposes a firm deadline.
The ordinance listed on the agenda was identified as S3305 (KDHE revolving loan increase).
