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The attached letter from AE2S identifies project cost impacts due to Construction Contingency Expense No. 2 <br /> totaling $135,654.02 and includes supporting documentation. <br /> The original Construction Contingency amount was $950,000. By approving Construction Contingency Expense <br /> No. 2,the available construction contingency will be reduced to $737,899.45. <br /> Funding sources and amounts for the WTP project are currently proposed as follows: <br /> • $33,500,000 from sewer($8,900,000) and water($24,600,000)utility funds <br /> • $9M from bonding (estimated) <br /> The actual amount of bonding needed will be known when the WTP trunk watermain improvements bids are <br /> accepted and approved on November 28, 2023. The actual bonding amount will determine how much sewer and <br /> water rates will need to increase. <br /> The City is also working to fully understand project cost impacts related to the grant funding appropriated to the <br /> project during the 2023 Legislative Session, as well as project cost savings related to sales and use tax exemptions <br /> (HF 1177 & SF 1197). Funds received from the legislative session will have the direct result of reducing bonding <br /> needs and the possible reduction of double-digit utility rate increases. The status of these legislative requests is <br /> not yet fully understood. <br /> Recommendation: <br /> Staff and AE2S recommend approving alternative#1. <br /> Action: <br /> Motion to adopt Resolution#23-277 approving Construction Contingency Expense No. 2 for Improvement <br /> Project#21-09, Centralized Water Treatment Plant. <br /> Attachments <br /> Resolution 23-277 <br /> AE2S Ltr CCE 2 <br /> Form Review <br /> Inbox Reviewed By Date <br /> Brian Hagen Brian Hagen 11/09/2023 02:23 PM <br /> Form Started By:Bruce Westby Started On: 11/06/2023 07:50 AM <br /> Final Approval Date:11/09/2023 <br />