CCP 02-26-1996 - Laserfiche WebLink

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. ~. CITY OF ARDEN HILLS MEMORANDUM I DATE: February 21, 1996 . TO: Brian Fritsinger, City Administrator . FROM: Terrance Post, City Accountant @) I SUBJECT: SWM Perry Park Proieet Fundinl! Background I At the regular meeting of January 29, 1996, the Arden Hills City Council approved a Perry Park project funding level of$27,315.60 from the Surface Water Management (SWM) utility. This action was supported by a recommendation from City Engineer Stonehouse. I Issue The funding recommendation by the City Engineer assumed an overhead factor of 30%. Given I the nature of this type of non-assessable improvement project, overhead costs largely consist of project engineering fees. Thus far, through pay estimate number four, $26,780 in engineering costs have been incurred in support of$303,011.65 in contractor costs. Current project .. engineering costs expressed as an "overhead" against contractor costs approximate 9%. I Ifa 9% overhead cost factor for this project were used instead of the previously approved 30%, $1,891 of engineering costs would be transferred to SWM ($21,012 · .09) instead of$6,303.60 (21,012 · .30) I Discussion This issue was discussed under Council comments at the February 20, 1996 worksession. I Councilmember Malone supported the chargeout of overhead costs incurred rather than estimated for projects of this nature. I Recommendation At the February 26, 1996 regular Council meeting, Council should consider approving a revised chargeout amount to the SWM utility for the Perry Park renovation project of $22,903 .00 I ($27,315.60 - $22,903.00 = $4,412.60 ; $6,303.60 - $1,891.00 = $4,412.60) under the Consent Calendar. I I .e .