City Council Minutes 2015 05 19 - Laserfiche WebLink

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City Council Meeting Minutes May 19, 2015 Page 30 of 34 on that equipment selection, staff recommends the contract amount for award to MWH be reduced to $26,968,534. The majority of funding for this project will be provided through a State Revolving Fund Loan with a subsidized interest rate. The remaining costs will be covered by the Utility Fund cash reserve and grant proceeds. Staff and consultants completed a financial plan update that accounted for the cost of this project and Council adopted wastewater service rates based on that plan to ensure a sustainable utility and repayment of the loan from the Wastewater Plant Upgrade account. The total project cost, including design fees, modeled with the latest financial plan update was $31,249,305, while the current project estimate is $31,746,907, after it has been reduced by $1,000,000 to account for the grant the City received. The total loan amount modeled was $25,800,000, with the current estimate of the required loan amount being $26,686,367, which is $886,367 higher. The Utility Fund cash reserve contribution required to cover this costs is $3,881,200 and, in addition to the design costs already spent, is $118,800 under the $4,000,000 modeled in the financial plan. These costs are within the parameters of the utility rate study and staff and consultants believe the loan proceeds, remaining grant revenues and revenue from adopted and proposed utility rates will be sufficient to cover all requirements. Staff recommended City Council award the construction agreement to MWH Constructors, Inc. for $26,968,534 and authorize staff to contract addenda up to $2,696,853 for additional work and project contingency, as well as authorize the Mayor and City Clerk to sign and execute contract documents on behalf of the City, all subject to the requirement that the notice of award and contract not be issued or signed until after closing of the CWRPDA loan for the project. COUNCIL COMMENT Mayor Muckle called for Council discussion. Council member Stolzmann noted she is anxious for the removal of ammonia and phosphorous from the water and looks forward to the completion of this project. City Attorney Light noted there was an amended staff direction to not award the contract until after the closing of the loan. MOTION: Mayor Muckle moved to award the construction agreement to MWH Constructors, Inc. for $26,968,534 and authorize staff to contract addenda up to $2,696,853 for additional work and project contingency, as well as authorize the Mayor and City Clerk to sign and execute contract documents on behalf of the City, all subject to the requirement that the notice of award and contract not be issued or signed until after closing of the CWRPDA loan for the project. Seconded by Council member Stolzmann. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Absent: Mayor Pro Tem Dalton and Council member Loo.