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<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 Outfall — Project # 30043
<br />Rcvannac
<br />Mr thic nrnipet
<br />annrnnriatinnc fnr thic nrniect:
<br />FY 2013 -14
<br />Current
<br />Budget
<br />June 17, 2014
<br />Amendment
<br />FY 2013 -14
<br />Revised
<br />Bud et
<br />Professional Services
<br />$94,200
<br />$0
<br />$94,200
<br />SRF Loan Proceeds
<br />$774,904
<br />$421,869
<br />$1,196,773
<br />Article 46 Sales Tax Proceeds
<br />$57,814
<br />$0
<br />$57,814
<br />Total Project Funding
<br />$832,718
<br />$421,869
<br />$1,254,587
<br />annrnnriatinnc fnr thic nrniect:
<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 />+ FY 2013 -14
<br />Current
<br />Bud et
<br />June 17, 2014
<br />Amendment
<br />FY 2013 -14
<br />Revised
<br />Budget
<br />Professional Services
<br />$94,200
<br />$0
<br />$94,200
<br />Construction
<br />$680,704
<br />$421,869
<br />$ 1,102,573
<br />Easements, Loan Orig., mist.
<br />$57,814
<br />$0
<br />$57,814
<br />Total Costs
<br />$832,718
<br />$421,869
<br />$ 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 />
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