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4.7. SR 03-05-2012REQUEST FOR ACTION TO ITEM NUMBER Ma or and Ci Council 4.7 AGENDA SECTION MEETING DATE PREPARED BY Consent March 5, 2012 Justin Femrite, Ci En ' eer ITEM DESCRIPTION REVIEWED BY Additional Trunk Utility Funding of Elk River Municipal Tim Simon, Finance Director Utilities Well 9 Raw Water Improvements REVIEWED BY Cal Portner, Ci Administrator ACTION REQUESTED Approve Elk River Municipal Utilities' request to fund additional costs associated with Well 9 Raw Water Improvements project in the amount of $29,627.08. BACKGROUND/DISCUSSION The Elk River Municipal Utilities' (ERMU) has made written request of the City of Elk River to allow the use of Trunk Water Main Funds for additional project costs associated with the Well 9 Raw Water Improvements. This is above the amount previously approved by the City Council in July 2011. The written request and supporting documentation is attached. Staff reviewed the request in accordance with the Trunk Utility Fund Policy that was developed in August 2008. Staff finds the request in accordance with that policy and supports the request made for the funding of this project. FINANCIAL IMPACT The original ERMU request was in the amount of $284,568.06. The additional project costs are in the amount of $29,627.08. The balance available in the Trunk Utility Fund (eastern area) is satisfactory to cover the additional request. ATTACHMENTS ^ Elk River Municipal Utilities written request to use Trunk Water Funds Action Motion by Second by Vote Follow Up P B Nf E 1 Et IR ~ `U kk( t'" 13UG9 Orono Parkway ~ P.O. Box. ~3U ElkRiaer, i1~IN" 55330-043U 1'h one: 763.44 ]..2021? Fax: 763.441.8099 tvww. elkrverutil ties.com Thee. City of Elk River February 24 2412 Attu; Mr. Cal Portner-City Administrator I306~ Crorta Farkway Elk: River, MN 55334 Subject: Request for Approval flf Additional T'runlt Utility Funding'for the Well #9 Water Main: Improvements Project.. Mr. Partner, On July l8 20I l at the request of the .Elk River Municipal Utilities Commission, the City Council approved the transfer of $284,568.Ob in water trunk funds to Elk River Municipal Utilities,. This transfer was intended to cover the costs associated with a water main mpa-overnent proj~t far the Utilities' Well #9 in the. vicinity of Twin Lakes Raad and Twin Lakes Parkway. This. project has been cornpleted;and has added approxmatety2,600 feet of water main to the water distribution: system, The original request for funding. uFas not sufficient to cover the costs associated with this project, During the construction of this water main there were-extra cost that were incurred that vrere unforeseen during project planning. There were also costs that were not included in the original. request for transfer of water trunk funds that were related to this project. These additional casts were: l . Modification and're-routing of water main at the Well:.#9 site. $ 5,985.71 2. Water main teak detection and. repair related to project.. $ 7,771.76 3. Installation and materials for addition of 8" Gate Valve.. $ '2,56.08 4. Engineering fees and. SCADA system costs not originally $I3,3U5.50 included in request. Total Additional $z9,6z~,a8 Elk River Municipal Utilities requests the transfer of $29,62?.08 in additional trunlt utility funding to cover the ad~iitianat cost. Supporting documentation is attached. Best Regards; ., ~~:. Troy Adains, P'.E. Utilities Director Cc: 1-3avid Berg - ~lati~r Si~perintettdent Jz~stin Pemrite, F.1;. - ~ity~ngineer~ Tis~r :~itr~ort -City l?inai3cial Director :file. r