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fees related to the southwest pump station, and <br />water main extensions dependent on Homart's <br />development, and those dollars could then be <br />shifted in to this project. This could be a <br />potential option that council may consider. <br />Hundley described the difference in the 20 year <br />budget scenario actually budgeted and the new <br />estimates as a $324,447 increase for the entire <br />project. The totals of the items that could be <br />cut from 1985 projects amount to $332,160. <br />The impact of carrying over these projects into <br />subsequent years would have to be assessed. <br />Hundley brought to council's attention the <br />lower tap fee income in 1984 than was projected <br />and consequently lower interest income than was <br />projected. In 1985, in order to complete this <br />project as well as Harper Lake, a bond issue of <br />$1.2 million as opposed to $500,000 would be <br />needed. <br />If reductions are made in other areas of the 1985 <br />budget, this could reduce the bond issue amount <br />to $900,000. But this is a major adjustment in <br />terms of the City's bonded indebtedness in <br />order to accommodate this project as well as <br />what was budgeted for the Harper Lake project. <br />Council's inquiries with regard to negotiating <br />with the bidders was a point of discussion <br />and prompted Rautenstraus to relate the <br />possible legal entanglement of negotiating with two <br />prospective contractors as opposed to awarding <br />a bid and negotiating the reduction of whatever <br />amount council deemed necessary. <br />If actual rebidding took place, it is RMC's <br />opinion that the bids would not come in any lower <br />unless there is a major change to the scope of the <br />project. <br />Rautenstraus recommended that either new bids <br />be called for or .an actual award be made and <br />negotiate for a reduction in construction costs <br />through contract analysis. <br />RMC advised council that the contract is written <br />such that the City can go to Notice of Award, then <br />negotiate a change=_ in the contract, as the contract <br />allows for a chan;;e up to 25~ of the total without <br />any readjustment of other costs. If in fact, it <br />4 <br />