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<br /> Page 2 of 5 <br /> <br /> <br />D. CONSTRUCTION ADMINISTRATION, OBSERVATION, AND TESTING <br />The County shall be responsible for the construction administration, inspection, and for the observation and <br />testing for all construction items. <br /> <br />E. COST PARTICIPATION ITEMS AND ESTIMATED COSTS <br />The City’s costs related to the Project will be determined in accordance with the “Washington County Cost <br />Participation Policy #8001 for Cooperative Highway Improvement Projects”, which is incorporated into this <br />Agreement by reference. As a pavement rehabilitation project, the City’s costs include only pay items <br />related to the work needed for the City watermain improvements. The City’s cost participation is set forth in <br />Table 1 and is broken down into three categories which are: 1) Construction; 2) Design Engineering; and 3) <br />Construction Engineering/Contract Administration. <br />1. Construction <br />Construction costs shall be the cost to construct the Project. The County has prepared a statement of <br />estimated quantities and cost splits hereto attached as Exhibit B. The City shall pay to the County its <br />share of the total cost as shown in Exhibit B and set forth in Table 1. After the County has awarded the <br />construction contract, Exhibit B will be updated to reflect the actual contractor’s unit prices. <br /> <br />2. Design Engineering <br />Design engineering costs shall be all professional design engineering services related to the work needed <br />for the City watermain improvements located within the County right-of-way. The City shall pay the <br />identified cost of design engineering for the City’s construction items. After the County has closed the <br />design contract, Exhibit B will be updated to reflect the actual design engineering cost. <br /> <br />3. Construction Engineering/Contract Administration <br />Construction engineering/contract administration costs shall be construction observation, construction <br />testing, construction administration, staking, conducting and recording the pre-bid, pre-construction <br />and weekly construction meetings, reviewing monthly pay estimates, labor compliance, and other <br />administrative functions necessary for the Project. Construction engineering/contract administration is <br />8% of the construction cost. The City shall pay 8% of the City’s share of the construction cost for <br />construction engineering/contract administration as set forth in Table 1. After the County has awarded <br />the construction contract, Exhibit B will be updated to reflect the estimated construction <br />engineering/contract administration cost. <br /> <br /> <br />4. The costs and shares attributable to the City and payable to the County as shown in Table 1 are merely <br />estimated and a final reconciliation of costs as set forth in Section G below shall be done at the end of <br />the Project. Actual City costs and shares are based on the following: <br />a. Construction shall be based on the contractor's unit prices and final quantities at Project <br />completion, including all contract changes. <br />b. Design engineering shall be based on the consultant fee at Project completion. <br />TABLE 1 – ESTIMATED COSTS <br />City of Lake Elmo Cost Summary <br />ITEM TOTAL COST CITY <br />SHARE CITY COST <br />Construction $3,246,408.72 See Exhibit B $50,310.00 <br />Design Engineering $300,700.00 See Exhibit B $3,000.00 <br />Construction Engineering/Contract Administration $259,712.70 <br />8% of <br />Construction <br />Cost Share <br />$4,024.80 <br />TOTAL ESTIMATED COST $3,806,821.42 $57,334.80