By Chris Frost
Eagle Times News Editor
The Claremont City Council has approved borrowing an additional $700,000 to cover cost overruns incurred upgrading the city’s wastewater treatment facility.
The council voted unanimously June 28 to approve a sewer loan agreement amendment from the Clean Water State Revolving Fund.
Councilor Spencer Batchelder read the resolution, which was seconded by Councilor Andrew O’Hearne.
The electrical upgrade project began in 2020. By February 2021, it had a $2.8 million total cost thanks to inflation in building and material costs. The electrical industry also experienced production delays, leading to additional construction cost increases.
The approved resolution funds a shortfall in the now $4.1 million project. Public Works Director Alex Gleeson said the estimated loan payment will increase increase from $210,887 to $251,447 a year.
Kristen Lemasney from Wright-Pierce Engineering said they submitted the loan agreement at the tail end of COVID before the price hike.
“The best course of action is to move forward with a loan amendment,” Lemasney said. “There is a likelihood the additional $700,000 will be subject to a portion of principal forgiveness, up to 10 percent of the original loan agreement. Of the $3.469 million, 10 percent will be forgiven from the original loan agreement,” meaning the city won’t have to pay back almost $350,000 it borrowed for the project.
Gleeson said the supplies for the project are moving slowly and steadily and Wright-Pierce is doing preliminary work.
“We’re working out some agreements for things like the transformers and the power company,” he said. “We’re trying to figure out how to tie solar into this. It’s a work in progress and moving along smoothly.”
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