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The total engineering project costs fall below 10 percent of the estimated construction costs. A normal expectation for engineering costs can range between 15 to 18 percent of the construction cost. I am, therefore, satisfied that the proposal received from Hakanson Anderson, Inc. is a reasonable price. Construction of Well No. 3 The rapid growth of our water utility has reached a point where the utility does not have the "f'mn well" capacity to supply the system demand on a peak day. Firm well capacity is defined as the amount of water that can be delivered to the system with the largest producing unit out of service. In the case of our water utility, the largest source is the emergency interconnect with the City of Anoka. It would be highly desirable to have the new well available for service this summer since this is the period during which the peak day usage will occur. It is also desired to have Well No. 3 be the initial well constructed in the west well field, since this will have the benefit of greatly increasing the reliability of the system. (The system would have an alternate source if something catastrophic would happen to the Xkimo Street well house which services Well #'s 1 and 2.) The west well field would also provide better fire flow capacities to the developing industrial areas than would the same well capacity placed in the eastern well field. It would be desireable to have this well in place for the lawn sprinkling season which represents the peak usage period. Adidfional time will be required in siting this well because of the need to perform geological testing and exploration; therefore, work should commence as soon as possible on this well. In selecting a consultant for this work, I would recommend that the City request proposals from several engineering consulting fn-rns and award this work based on a) price, b) experience with similar projects; and c) ability to perform the work within a compressed time schedule. I would recommend we solicit proposals from the following engineering fu'ms: 1. Bonestroo, Rosene, Anderlik & Associates This firm prepared the utilfies comprehensive water plan. Progressive Consulting Engineers Inc. - This f'mn practice is devoted exclusively to water utility related work. They have recently performed work for the neighboring cities of Anoka and Blaine and have expressed great interest in working for the City of Ramsey. 3. Hakanson Anderson, Inc. - This firm designed our current wells and well house and is locally based in Anoka. 4. John Oliver Inc. - This fn'm is locally based in Elk River and has been performing an increasing amount of work in the City of Ramsey. 5. OSM Inc. - This firm has recently expressed an interest in performing work in Ramsey. This RFP would be the fn'st such offer to this firm. .Extension of McKinley Street a Distance of 1,000 feet East of Uranium Street At the present time, we are finalizing a development agreement with EDM Inc. for the development of an industrial lot on the northeast comer of Uranium and McKinley Streets. Their site plan, which is being presented at tonight's meeting, calls for a track entrance off of McKinley Street a distance of approximately 300 feet east of Uranium. Currently, the