Commission OKs change order to pay full price for street sweeper, then seek $200,000 loan reimbursement

The City Commission approved a change order to increase the purchase order for a street sweeper from Texas Waste Equipment to $239,414, allowing staff to pay the vendor up front and recover $200,000 from an existing New Mexico Finance Authority (NMFA) loan afterward.

A staff presenter said the city's previous plan had been to apply the city's $39,000 contribution up front and have the vendor receive the NMFA funds directly, but the city's new loan officer recommended buying the sweeper first and then applying for the $200,000 reimbursement. "Our loan officer has indicated their preference now would be that we just pay for the street sweeper, and then we apply directly and get our $200,000 back," the Staff member said. City leaders said the streets department has sufficient cash on hand to cover the purchase temporarily.

Commissioners voted to approve the single change-order request; staff noted the procurement contract and vendor remain unchanged and that the loan is available to reimburse the city after purchase. The staff presenter estimated the city would hold the $200,000 outlay for less than a week because the funds are ready to be returned once the reimbursement paperwork is processed.

The approval covers the revised payment process only; the underlying contract with Texas Waste Equipment and the procurement terms were not altered.