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City staff outline $6M loan for water-line replacement; $3M forgiveness tied to timely completion
Summary
Public works staff said the city has identified a $6 million loan to rehabilitate aging water lines; $3 million would be forgivable if the project meets schedule/milestones. Design work is underway and spending/timeline details will be included in updated budget sheets.
Public Works Director Gary told the committee the city located a loan program that would provide $6,000,000 for water-line replacement; project completion on schedule would qualify the city for $3,000,000 in loan forgiveness. "We found a program that gives us a $6,000,000 loan. If we finish the project on time, they forgive $3,000,000 of it," Gary said.
Staff said the loan will not replace every line but will cover a significant portion of needed replacements; engineering design is in progress and staff will prioritize the work to get the most value for the funds. Gary noted the work must be contracted out (not done in-house) and that the spending deadline for the loan program requires projects to be completed by around July 1, 2029.
Committee members asked about contractor performance guarantees and timeline enforcement; staff said contracts will include deadlines and liquidated damages or fines for missed milestones. Staff will provide a project timeline, allocation plan, and updated capital sheets at the next meeting.
