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• In March, the City sold a$2.2 million bond(funded by water rate increase) to support <br /> four water and sewer improvement projects: <br /> 1) Water Main Replacement/Kenzie Terrace $ 630,000 <br /> 2) 27th Avenue Sewer Replacement $ 440,000 <br /> 3) Water Filtration/Chemical Room Upgrade $ 960,000 <br /> 4) Up-Grade Electrical System/Wells 3,4 & 5 170,000 <br /> $2,200,000 <br /> Because of a favorable bidding climate, WSB & Associates combined the Kenzie Terrace <br /> Water Main Project and the 27th Avenue Sewer Project. By doing so, the actual cost was <br /> $850,000 compared to the projected cost of$1,070,000. <br /> Because the remaining funds $220,000 are associated with Public Works activities such <br /> as maintaining the water and sewer system, Council could authorize the unused funds to <br /> fund another public works project. <br /> I contacted Todd Hubmer, WSB & Associates, to inquire if he had any concerns <br /> regarding use of the funds for another project. Mr. Hubmer's only concern was that, if <br /> these funds were transferred to another project, we establish a contingency plan for the <br /> possibility that costs for the Chemical Room Upgrades could come in higher than the <br /> • adjusted budget. <br /> If the actual costs of the projects did come in higher than expected, my recommendation <br /> would be to transfer reserves or interest earnings from the water filtration funds to offset <br /> a deficit in funding. <br /> An additional, $170,000 could be made available by deferring the budget of the Electrical <br /> System Improvements for Wells 3,4 & 5. Future funding options would include: <br /> 1) If the Chemical Room Upgrades came in under budget, <br /> the funds could be used to complete the electrical <br /> improvements to the wells. <br /> 2) As part of the 2003 water rates, Council approved an increase <br /> of 5 cents per 100ccf to fund non-recurring maintenance costs. <br /> These funds could be designated to fund some or all of the <br /> electrical improvements. <br /> Consideration: <br /> To balance the budget for the Public Facilities/Public Works Site, Council authorizes a <br /> transfer of$157,000 from the Water& Sewer Projects to finance the soil corrections. <br /> • <br />