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Greendale board approves water-main materials and conditional loan plan, tables contractor award
Summary
The board approved purchasing materials for an Avenue water-main replacement ($204,375.95) and agreed to seek a short-term transfer/loan from electric cash reserves to finance the project up front; the contractor award was tabled for two weeks pending reference checks and follow-up.
The Greendale Board of Public Works voted to accept the recommended materials for the Avenue water-main replacement and authorized moving forward contingent on council approval of short-term borrowing from the electric cash reserve.
Staff said Core & Main was recommended as the material supplier and that the material order totals $204,375.95. They also explained that water operating funds could cover $500,000 of the project and operating reserves currently hold approximately $900,000. To accelerate work and capture savings, staff requested permission to borrow from the electric cash reserve and repay the amount once rates and cash-flow adjustments are in place.
At the same time, board members raised concerns about the apparent lowest contractor’s references. The board voted to table the contractor award for two weeks so staff can request references and allow the bidder an opportunity to respond; however, members expressed a preference to start work as soon as funding is secured because delay could increase costs.
"We're going to pay for $500,000 out of water operating for this, and we're going to council tonight to discuss borrowing the remaining amount from electric cash reserve," a board member said during the discussion. The motion to accept materials conditional on council approval of funding passed on a voice vote.
Next steps: staff will present funding paperwork to council, finish contractor reference checks and return with a contractor recommendation at the next board meeting.
