Agenda - Council - 09/26/2023 - Laserfiche WebLink

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required. These changes are necessary to meet all building codes. The attached letter from AE2S also summarizes all known construction contingency expenses at this time to assist the City of Ramsey in better understanding the current contingency status. As construction progresses, AE2S will continue to provide cost updates and will coordinate closely with the City on all issues impacting project costs. AE2S will also continue to support and track the progress of the WTP and will provide updates as necessary for the City of Ramsey to make responsible decisions on the progress of the WTP. Notification: Notifications are not required for this case. Observations/Alternatives: Alternative # 1: Motion to adopt Resolution #23-226 approving Construction Contingency Expense No. 1 for Improvement Project #21-09, Centralized Water Treatment Plant. Funding Source: Project cost impacts due to Construction Contingency Expense No. 1 total $76,446.53 . The original Construction Contingency amount is $950,000. By approving Construction Contingency Expense No. 1, the available construction contingency will be reduced to $873,553.47. Funding sources and amounts for the WTP project are currently proposed as follows: . $33,500,000 from sewer ($8,900,000) and water ($24,600,000) utility funds . $9M from bonding (estimated) The actual amount of bonding needed will be determined after bids are received for the WTP trunk watermain improvements in November. The actual bonding amount will determine how much sewer and water rates will need to increase. The City is also currently working to fully understand project cost impacts related to the grant funding appropriated to the project during the 2023 Legislative Session, as well as project cost savings related to sales and use tax exemptions (HF 1177 & SF 1197). Funds received from the legislative session will have the direct result of reducing bonding needs and the possible reduction of double-digit utility rate increases. The status of these legislative requests is not yet fully understood. Recommendation: Staff and AE2S recommend approving alternative # 1. Action: Motion to adopt Resolution #23-226 approving Construction Contingency Expense No. 1 for Improvement Project #21-09, Centralized Water Treatment Plant. AE2S Letter Resolution 23-226 Attachments Form Review Inbox Reviewed By Date