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<br />Public Works Director Olson replied the only down side is that there are two wells nearly <br />completed and ready for production to get into the distribution system. The City is struggling to <br />maintain an adequate water supply with the wells they currently have, and there has been an <br />increased amount of enforcement with the watering ban. The basic disadvantage to not moving <br />forward is the timing and the additional three weeks to re-bid the project. <br /> <br />Mayor Pro Tem Elvig noted this cost does not only involve the structure; there is equipment <br />involved too. He is disappointed the estimate missed the earmark, but the costs are the costs, <br />there are funds to handle this, and the other bids are even higher yet. <br /> <br />Councilmember Jeffrey inquired about the possibility of the 5 to 10% reduced cost that was <br />offered if the City were to allow more flexibility in the construction schedule. <br /> <br />Public Works Director Olson replied a savings of 5 to 10% would equal $20,000 to $30,000, and <br />it is possible. There was a need for the production capability from the water towers. as soon as <br />possible. If staff were to discuss the schedule flexibility with the low bidder this would need to <br />be brought back to the July loth City Council meeting. <br /> <br />Mayor Pro Tem Elvig requested clarification that the $286,000 includes the components inside <br />the building. <br /> <br />Public Works Director Olson replied yes, it includes the building, site work, and mobilization to <br />get there. Everything is outlined on the bid summary included in the staff report. <br /> <br />Interim City Administrator Nelson advised in order to re-bid this there should be a change in the <br />specification to yield the benefit of the re-bidding process. <br /> <br />Public Works Director Olson indicated if the well house was not going to be up and running <br />before the summer water demand the project could be re-bid for bids to be opened in January. <br />He advised with this project, Wells No.7 & No.8 and the pump house ar~ still under the <br />engineers estimate for the entire project. <br /> <br />Councilmember Look inquired about the breakdown in the $286,000 between the building and <br />the components. <br /> <br />Public Works Director Olson replied the building cost is approximately $100,000. <br /> <br />Councilmember Look stated he finds $100,000 for a 1,000 square foot stick built facility to be <br />high. <br /> <br />Public Works Director Olson indicated the $100,000 cost is a savings of over $200,000 from a <br />block building. <br /> <br />Councilmember Strommen pointed out that the three bids came in fairly close. <br /> <br />City Council / June 26, 2007 <br />Page 35 of 38 <br />