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89 <br /> As indicated in the above summary, there are two items that have been highlighted for <br /> • discussion. These items are the anticipated costs to complete the 2000 Street Reconstruction <br /> (29`h Avenue) and the anticipated revenue from the Minnesota Department of Natural Resources <br /> in 2002. The asterisks indicate that the cost to complete the 2000 Street Reconstruction may <br /> increase over the $261,000 indicated. This project is currently in litigation over extra costs <br /> incurred by the contractor in working around or with Qwest and Minnegasco utilities. The <br /> dollar amount indicated includes some settlement, engineering,.and legal fees associated with <br /> resolving this issue. The exact dollar amount will not be known until later this year. This dollar <br /> amount could significantly increase or decrease, depending on the settlements between the City <br /> and the contractor, the City and utility companies, and the contractor and utility companies. <br /> Two years ago, the City of St. Anthony anticipated a need of$700,000 from the Minnesota <br /> Department of Natural Resources Flood Hazard Mitigation Grant Program to complete flood <br /> improvements. We anticipate the need to increase this request by an additional$1.1 million to <br /> offset additional costs associated with land acquisition, construction costs, and utilities <br /> litigation. The current$1.9 billion shortfall anticipated in the State of Minnesota budget may <br /> impact the City's ability to secure all of these funds in 2002. <br /> We are currently in the process of preparing a grant request to the Minnesota Department of <br /> Natural Resources for$1.8 million. This is the amount that is anticipated to be necessary to <br /> complete the St. Anthony Flood Hazard Mitigation Grant projects. It is anticipated that a <br /> meeting with the DNR will occur during the third week of January 2002. <br /> If you have any questions, I will be present at your January 8, 2002 Council Meeting to answer <br /> them, or please call me at (763) 287-7182. <br /> Sincerely, <br /> WSB & Associates,Inc. <br /> Todd E. Hubmer, P.E. <br /> Associate <br /> nm/lm . <br /> • <br /> F:\WPWIN\1065-15\010202 hmc.doc <br />