Agenda - Council - 01/28/2025 - Laserfiche WebLink

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Costs associated with Construction Contingency Expense No. 8 total $31,463.77. The original Construction Contingency amount was $950,000. Approving Construction Contingency Expense No. 8 will reduce the available construction contingency amount to $416,890.92, which equals 43.9-percent of the original contingency amount. Attached to this case is a project budget status letter prepared by the project engineers at AE2S. As is noted in the letter, AE2S feels the construction of the water treatment plant is progressing well and is not likely to require additional funding to cover change orders beyond what is already reserved in the construction allowances. However, this letter also states that over the last six months, AE2S invoices to the city have averaged $31,000 per month and at that current bum rate they expect to run out of budget by August 2025, which will likely leave them short on budget to provide the necessary start up assistance at the new Substantial Completion date of July 28, 2025. Staff will therefore meet with AE2S to discuss reducing their efforts on -site or amending their fee to ensure enough budget remains to complete the project. Recommendation: Staff and AE2S recommend approving Construction Contingency Expense No. 8 for reasons summarized in this case and the attached letter. Outcome/Action: Motion to adopt Resolution #25-031 approving Construction Contingency Expense No. 8 for Improvement Project #21-09, Centralized Water Treatment Plant. Resolution 25-031 AE2S Letter CCE8 WTP Budget Status Letter Attachments Form Review Inbox Reviewed By Date Brian Hagen Brian Hagen 01/23/2025 01:49 PM Form Started By: Bruce Westby Started On: 01/22/2025 08:27 AM Final Approval Date: 01/23/2025