09/17/1981 Council Minutes - Laserfiche WebLink

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74 was this is an obligation of the Engineers to prepare this report and present to the Council. Mayor Gourley asked Mr. Locher if this constitutes any problem with the hearing process taht we held as a mojor project? Mr. Locher said he had talked to Bond Counsel about this, and 1) must have an outlet, 2) this does not change the area being assess, and 3) if it is within 100 of the cost that is built into the law. September 17, 1981 Mr. McLean felt the numbers are inadequate. He said he did not know what the figure $2,150,000.00 represented. Mr. Millelstead saod this is an estimated cost to include contingencies. All he could say was that the costs of the connection was included in the feasibility costs. 1 Mr. Jaworski asked, in your initial plans, alternative plans were taken into consideration - and when the costs to connect to Blaine were computed - both these alterantives were included in the original feasibility sutdy? Mr. Mittelstead said that was correct. Mr. Jaworski, is that the construct- ion costs? and Mr. Mittelstead said, No Sir, that includes the total cost of the entire cost of the project. Mr. Jaworski asked Mr. Locher, if the sale of the bonds were to proceed and he bonds were sold and the Council ordered Plans and Specifications - ordered bids to be taken - at the time the bids were in, the Council does not have to accept those bids, if the Council did not wat to - is that correct? Mr. Locher said, Yes, that is correct. All bids can be accepted or re- jected. This is automatically a part of the ad. Mr. Jaworski, said at that point the Council would have an extra cost of the project? Mr. Locher, said in theory - the final costs are not know until the project is completed. There is a 10o variable for unexpected conditions that could be encountered. 1 Mr. McLean said there are costs the City would have to pay in case the project did not proceed - the additional costs for plans and specifications - which is approximatelsy what? Mr. Mittelstead said plans and specifications preparation is approximately $80,000.00 to $89,000.00 - that includes all the necessary preliminary work and the work done during the actual construction of the project. Mr. McLean said if the bids for the bonds are accepted tonight and plans and specifications are ordered, the City automatically commits itself to pay 80/90,000.00. Mr. Jaworski pointed out to Mr. McLean that one thing he is not taking into consideration is that if the project fails, the City would have $2,150,000.00 in the bank collecting interest which would pay for that cost. Mr. Schumacher reported that this Council has three years before this money must be spent. Mr. Schumacher said he had calculated teh difference between what the interest on the bonds would be and what he could invest that money for - he had used a figure of 4% which he felt was conservative - this difference would in approximately one year earn enough to pay for these plans and specifications.