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MEMORANDUM DATE: September 29, 2003 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: PUBLIC FACILITIES - SOIL CONTAMINATION & FIRE STATION I performed an analysis to determine if funds are available to support the cost of correcting the soil contamination issue at Public Works and the higher costs for the Fire Station. The original budget for the project included: Public Works Facility $2,481,750.00 Fire Station $1,757,750.00 Land Acquisition $ 500,000.00 Architect—Oertel $ 340,000.00 Kraus Anderson (CM) $ 126,000.00 Bond Issuance/Insurance $ 138,000.00 Bond Discount $ 186,500.00 Total $5,530,000.00 The initial budget did not include contingency funding for soil contamination issues or bids coming in.higher than projected. At the time the budget was set, it was felt that the construction bids would be considerably less than the projected costs and would serve as a funding source for unforeseen costs such as contaminated soil problems or higher costs. As we are aware, the bids for Public Works came in very near the budget allocation, creating a need to research alternative funding to correct the soil contamination issues. Also, the bids for the Fire Station were higher than projected which requires the appropriation of additional funding or trimming back on the quality of the building. When trying to determine what funds might or might not be available, one of the first options is to check existing projects to determine if funds could be accessible and redirect those funds to support the deficit of another project. Upon researching our current projects, funds (up to $390,000) are available from the Water/Sewer Revenue Bonds Projects that could be transferred to the Public Facilities Project to fund the deficits.