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Council approves $270,599.36 payment for water-plant work; staff reports large change order and potential LDH loan
Summary
The council approved partial payment No. 12 of $270,599.36 to Preferred Mechanical LLC for water treatment plant improvements; staff reported the contractor is ~51% complete and noted a separate change order (for replacement of lime-silo equipment) that increases the contract and that the city plans to request an LDH loan that may include partial forgiveness.
Item 16: staff recommended approval of partial payment No. 12 in the amount of $270,599.36 payable to Preferred Mechanical LLC for work performed in July on the water treatment plant improvement project. Staff reported the contractor is approximately 51 percent complete and that schedule catch-up is expected over the next months.
Staff also reported that a prior council-authorized addition (replacement of lime silo equipment) produced change order number 8, which increases the contract amount (staff reported an increase in the order of several hundred thousand dollars). Staff said the city will request a loan from the Louisiana Department of Health (LDH) and that the loan appears to offer about 49 percent forgiveness; staff noted exact loan terms and final contract reconciliation remain subject to the loan process and grant reconciliation.
