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Feasibility Report Northeast Lino Lakes Drainage Improvement Project WSB Project No. 2029-790 Page 14 5. FINANCING 5.1. Opinion of Probable Construction Cost A detailed opinion of probable cost is included in Appendix F of this report. The opinion of probable cost is based on projected construction costs for 2017 and includes a fifteen percent (15%) construction contingency and twenty-five percent (25%) indirect costs. The indirect costs include engineering, legal, and administrative costs associated with the project. Project costs have been separated into assumed construction phases. The first phase will consist of the Peltier Lake outlet improvements and new channel from Peltier Lake Drive to 20th Avenue. It is anticipated that after the outlet culvert is replaced, the new crossing under I-35E will be constructed as the second phase. The third phase would consist of constructing storm sewer connections from the new I-35E crossing upstream, and along, the future Otter Lake Trail extension. Future phases will include additional volume control and water quality BMPs, outlet control structures, and storm sewer connections, as development in the study area progresses. The total project costs, by construction phase, are summarized below. Table 3. Northeast Lino Lakes Drainage Improvement Summary of Cost Development Phase Cost Phase 1 – Peltier Lake Outlet Improvements $2,248,023 Phase 2 – I-35E Crossing $750,914 Phase 3 – Otter Lake Trail Storm Sewer Extension $639,925 Phase 4 – Future Improvements $557,491 TOTAL COST $4,196,353 5.2. Funding Sources Funding for the project will be through surface water management fees collected through development, and potential grants from Rice Creek Watershed District (RCWD), Minnesota Board Water and Soil Resources (BWSR), and the Public Facilities Authority (PFA). The surface water management fees per the City’s current rates and proposed land use are estimated to be between $2 and $2.5 million for this area. The City could consider developing a specific fee related to this area to ensure costs are covered. If the City is eligible, a RCWD grant could be up to $50,000, and a PFA grant could be twenty- five percent (25%) principal forgiveness on Phases 1 and 2. The BWSR has various grant programs, and an estimated grant amount is unknown at this time.