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As shown in the previous table, while the overall low bid is 22.24% higher than <br />the Engineer’s Estimate, the portion of the construction to be performed in the <br />City of Mounds View is only 17.6% higher than the Engineer’s Estimate. <br />The reason for the difference is directly attributable to the increase in oil prices <br />over the 5-week period from when the Engineer’s Estimate was prepared on May <br />8, 2008 to when bids were received on June 17, 2008. Staff has researched the <br />prices of crude oil, and found that the average price of a barrel of oil increased <br />19.18% over that time period. This is very comparable to the 17.6% increase <br />seen between the Engineer’s Estimate and the low bid. <br />It must also be noted that the preceding discussion has concerned construction <br />cost only. Additional costs will also be incurred on the project, for engineering, <br />legal, administrative, and other activities. A summary of the total estimated <br />project cost for the City of Mounds View based on the low bid is shown in the <br />following table: <br />2008 Street Maintenance Project <br />Mound View Portion – Based on Low Bid <br />Item Amount <br />Construction Cost – Per Low Bid $159,656.60 <br />Estimated Engineering Cost (17%)27,141.62 <br />Estimated Legal, Fiscal, & Admin (13%)20,755.36 <br />Total Estimated Project Cost $207,553.58 <br />Budget: <br />As reviewed in the previous Staff Report of April 28, 2008, the adopted 2008 <br />budget has $217,000.00 allotted for this project: <br />x $170,000 in the Street Improvement Fund (account 285-4470- <br />7050) for the overall project, including City Hall parking lot. <br />x $23,000 in the Special Project Fund (account 280-4180-7050) for <br />the Mounds View Community Center parking lot. <br />x $22,000 in the Park Dedication Fund (account 251-4470-7050) for <br />Silver View and Greenfield Park parking lots. <br />x $2,000 in the Pavement Management Fund (account 100-4470- <br />4010) for crack sealing <br />Therefore, even though the low bid is higher than the Engineer’s Estimate, the <br />overall project costs are still anticipated to be within the adopted 2008 budget.