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May 15, 2024 <br />Bruce Westby <br />City of Ramsey <br />7550 Sunwood Drive NW <br />Ramsey, MN 55303 <br />Re: Water Treatment Plant — Project Budget Status <br />Dear Mr. Westby: <br />AE2S continues to oversee the construction of the City of Ramsey's new WTP. City staff have requested <br />that AE2S review the status of the general construction contingency allowance and the WTP project cost <br />to provide some guidance to the City of the projected WTP budget. <br />The original WTP was bid on March 9, 2023 with a low bid of $31,528,500 (minus Bid Alternate No. 1). <br />Within that lump sum bid, the contractor was asked to carry a cash allowance of $1,300,000 with $950,000 <br />of that allowance to be a general construction contingency allowance for the use by the Owner for Owner <br />requested changes or additions. To date Ramsey has approved the following expenses that have utilized <br />that allowance. <br />Expense No. <br />General Construction Contingency Amount <br />Original Contingency: $950 000.00 <br />Expense No. 1 <br />$76,446.53 <br />Expense No. 2 <br />$135,654.02 <br />Expense No. 3 <br />$99,095.63 <br />Expense No. 4 <br />$102,023.36 <br />Expense No. 5 <br />$39,361.69 <br />Net Expenses to Date: <br />$452,581.23 <br />Available Construction Contingency: <br />$497,418.77 <br />In addition, the city has processed one change order to the total project cost that is summarized below. <br />Since this change order was initiated for funding purposes and not for construction conformity, it is not <br />considered a constructed required cost. <br />Change Order No. <br />Change Order Cost <br />CO No. 1 - Prevailing Wage Adjustments <br />$794,153.71 <br />Net Change Orders to Date: <br />$794,153.71 <br />Updated Total Contract Price: <br />$32,322,653.71 <br />In total, the project contract cost is now $32,322,653.71. With $452,581.23 of the $950,000 general <br />construction contingency utilized, a balance of $497,418.77 remains. If this remaining allowance is not <br />utilized during construction, the balance will be deducted from the Final Payment. Based on the status of <br />the project AE2S feels that the bulk of the change order costs have been identified. There will likely be <br />future change orders that arise for smaller field coordination items, but these tend to be smaller and less <br />significant. <br />Advanced Engineering and Environrnental Services, Inc, <br />6901 East (wish Lake Road, Ote'24 « 'v atei Tovver Place BUsiness Ceiite « MaplEI Grove, Ml`� 55369 - 763.463L 5036 <br />