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LAKE ELMO CITY COUNCIL MINUTES 12-4-84 PAGE 6 <br />the past the State and Federal grants had been extended in the same <br />percentages to cover those increased costs. Usually that amendment to <br />our grant does not take place until after the bids are received; <br />however, because we have to bond for our interim financing and do <br />other financial planning, he has asked the MPCA for a preliminary <br />determination as to whether the grant would be extended to cover the <br />increased costs. The MPCA has verbally given approval to the City <br />Administrator that the grant will be amended. <br />The Engineer further reviewed his letter of November 29, 1984 in which <br />he addresses the Step 2 Engineering Costs for the 201 Program. <br />Work for the Step 2 portion of the 201 program is essentially <br />complete. The only work remaining will be to incorporate any of the <br />MPCA's suggestions into the plans and specifications based upon their <br />review. <br />In October of 1983, TKDA and the City of Lake Elmo entered into an <br />agreement to provide engineering services for Step 2 work. This <br />agreement set $103,000 as the maximum cost for the work, subject to <br />certain adjustments. Based upon the construction cost of $360,000 <br />estimated in the Facilities Plan, the grant allowance the City would <br />receive for Step 2 work was $22,600. This would leave a cost to the <br />City for Step 2 work at $80,400 ($103,000 - $22,600). <br />It appears that the actual cost of completing the Step 2 work with no <br />increase in fixed fee will be approximately $152,000. <br />Since the construction cost is now estimated to be approximately <br />$1,404,000, the Engineer expects that the grant will be amended at the( i <br />time of bid opening so that the Step 2 allowance that the City will <br />receive will be approximately $82,150; therefore, the cost to the City <br />for Step 2 will be substantially less. <br />The engineering agreement provides that the terms of the original <br />agreement may be changed by consent of both parties if the level of <br />work effort required or the cost of the project changes significantly. <br />Since the City's cost is expected to decrease because of the increased <br />allowance and since the additional engineering expense is directly <br />related to the increased project cost, the engineer stated that it <br />seems fair to ask that TKDA be reimbursed for its additional expenses <br />out of the additional grant allowance. <br />The Engineer asked that the City Council move to amend the engineering <br />agreement at this time but that no additional costs be paid until such <br />later time when the bids are received and the grant is amended to <br />adjust the Step 2 allowance. This amendment to the engineering <br />agreement would allow the engineer to be reimbursed for its additional <br />cost up to a maximum such that the local share of Step 2 costs (Step 2 <br />costs less grant allowance) does not exceed the originally estimated <br />local share of $80,400. <br />Morgan/Fraser - To amend the the agreement for engineering services <br />between the City of Lake Elmo and the firm of Toltz, King, Duvall, <br />Anderson & Associates, Incorporated for performance of Step 2 <br />