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revolving fund would contribute a total of $1,206,697 and leave a fund balance estimate at year <br />end 2012 of $1,762,050. Using the extra $210,000 from the equipment fund would make the <br />project budget positive by $74,000. <br />City Administrator Ulrich asked what is the industry standard for a project contingency. <br />Interim Engineer answered it is usually 5 -10% but he has seen it as high as 15 %. <br />City Administrator Ulrich noted if there would have been a budget, it would have included a <br />contingency. <br />Interim Engineer Nelson stated that is typical and most always something is encountered during <br />the project that you didn't anticipate. <br />Councilmember Elvig stated as he recalls, the budget was $5.35 million and it looks like this <br />project is a "run away freight train" with $400,000 in overages and more add -ons are being asked <br />for tonight. <br />Mayor Ramsey asked why the project is over budget. <br />Councilmember Wise stated it sounds like the engineer presented $5.642 million, not $5.35 <br />million, so the project is within 10 %. <br />Councilmember McGlone stated everybody approved what the former City Engineer handed out <br />so the project is not over by $400,000 and is still within the contingency and standard protocol. <br />Interim Engineer Nelson displayed a map exhibit depicting areas where changes occurred during <br />construction and described each modification. <br />Mayor Ramsey asked whether the cost of Change Order #4 is included in these figures. <br />Interim Engineer Nelson stated it is within the calculations he presented but not yet approved by <br />the Council. Change Order #4 is on the Council's agenda for tonight. <br />Councilmember Wise asked whether the issue with the drain field at 8019 146 Avenue was a <br />survey error and should be covered by the contractor, not the City. <br />Interim Engineer Nelson stated he is not sure any of the fault is with the contractor but <br />questioned whether the design engineer should have been aware of the drain field in that area. <br />He explained if the contractor is culpable, that would have to be pursued elsewhere. <br />Councilmember McGlone asked if the City Engineer approved the ultimate plans and how long it <br />took Interim Engineer Nelson to discover the issue and figure it out. <br />Interim Engineer Nelson stated they found the location of the drain field in about 10 minutes. <br />City Council Work Session / October 23, 2012 <br />Page 4 of 11 <br />