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Newton accepts NCDEQ loan offer for West A Street sewer rehab; project cost estimate exceeds loan amount
Summary
Newton accepted a $597,875 NCDEQ State Reserve Loan offer for rehabilitation of 2,515 feet of sewer on West A Street but staff reported updated eligible costs of $1,061,073 and said the city will seek additional funds if bids exceed the loan offer.
Newton City Council voted Feb. 16 to accept an NCDEQ State Reserve Loan offer of $597,875 to rehabilitate 2,515 feet of 8-inch clay sewer and 11 manholes along West A Street, while acknowledging updated project estimates now exceed the loan amount.
Finance Director Vickie Thomas told the council the original loan offer (0% interest, 20-year term, 2% closing fee) matched the grant application estimate of $597,875. She said the estimated eligible cost for sewer rehabilitation is now $1,061,073 because additional engineering, mobilization, pavement repair, water-line relocation and traffic control costs previously expected under an NCDOT LAPP grant must be accounted for.
Thomas recommended council adopt a resolution accepting the offer “with the understanding that if project bids are received that exceed the original loan offer amount, the City shall submit a modified budget application for additional funds, and upon approval by DEQ, accept the additional funding.” The council adopted the resolution unanimously.
The resolution authorizes staff to accept the SRP loan and proceed with procurement; staff said they will return to the council with revised funding requests if necessary once bids are received.
