|
2
<br /> The rock excavation line item is paid at $120 per cubic yard of rock excavated, so adding an
<br /> additional rock excavation amount of 3,873 cubic yards will increase the construction costs by
<br /> $464,760. This estimate is based the best available data and is conservatively estimated to be
<br /> sufficient to cover all rock for the rest of this project. This project has a unit price contract so
<br /> that a contractor is paid per unit, in this case cubic yards, as the rock is excavated. The
<br /> contractor will only be paid for the amount of rock excavated, regardless of the amount
<br /> available in the budget for that particular line item.
<br /> The project is being funded by a State Revolving Fund (SRF) Loan. The current available loan
<br /> amount is $774,904. The original construction contract was for $597,813, and the engineering
<br /> design and construction oversight was $94,200, leaving $82,891 to cover ancillary costs and
<br /> contingency. To date, there have been change order requests from the contractor and other
<br /> ancillary costs against this contingency in the net amount of approximately $40,000, leaving
<br /> approximately $42,891 to go towards the extra rock excavation cost.
<br /> Additionally, $57,814 was appropriated to cover costs of the project which cannot be
<br /> reimbursed through loan proceeds, such as the loan origination fee and easement costs. This
<br /> amount will still be sufficient to cover the costs for which it was budgeted.
<br /> FINANCIAL IMPACT: This project currently has a construction contract in the amount of
<br /> $597,813. Adding the rock allowance contingency as outlined above would increase the
<br /> construction contract by $464,760. These extra funds would come from remaining contingency
<br /> of $42,891 and a requested increase of $421,869 in the SRF loan financing this project.
<br /> Budget Amendment #9-E provides for the additional funds of $421,869 from SRF proceeds,
<br /> and amends the Capital Project ordinance as follows:
<br /> McGowan Creek Outtall — Project# 30043
<br /> Revenues for this project:
<br /> FY 2013-14 June 17, 2014 FY 2013-14
<br /> Current Amendment Revised
<br /> Budget Budget
<br /> SRF Loan Proceeds $774,904 $421,869 $1,196,773
<br /> Article 46 Sales Tax Proceeds $57,814 $0 $57,814
<br /> Total Project Funding $832,718 $421,869 $1,254,587
<br /> Appropriations for this project:
<br /> FY 2013-14 June 17, 2014 FY 2013-14
<br /> Current Amendment Revised
<br /> Budget Budget
<br /> Professional Services $94,200 $0 $94,200
<br /> Construction $680,704 $421,869 $ 1,102,573
<br /> Easements, Loan Orig., misc. $57,814 $0 $57,814
<br /> Total Costs $832,718 $421,869 $ 1,254,587
<br /> RECOMMENDATION(S): The Manager recommends the Board-
<br /> 1. Approve Budget Amendment #9-E adding $464,760 in rock contingency to the
<br /> McGowan Creek Outfall project construction contract and authorizing the request for an
<br /> additional $421,869 in SRF loan funding; and
<br /> 2. Authorize the Manager to sign on behalf of the Board the change order for the additional
<br /> rock allowance and any documents related to the pursuit of additional SRF loan funding
<br /> as outlined in Item 1.
<br />
|