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Council details SDWRF grant, contingency and budget adjustments for water project
Summary
Council heard staff explain how engineering fee reductions, permitting changes and a modified dredging method lowered project costs and how the city will preserve larger contingencies while committing up to $165,000 in additional contingency if needed.
Council discussion on the SDWRF-funded water project focused on why the project's revised construction budget exceeded earlier figures and how staff negotiated savings.
Public works staff explained that the city's submission to the funding agency originally showed smaller construction-only figures; the full project budget includes permitting, design and construction. "If you look at the graph on the bottom, you can see the 1st column, that's the amount and the budget," the public works director said, and later added that environmental-review and permitting fees were reduced because the project will not discharge water over land. Staff also explained funding-agency rules requiring a contingency of 10% of construction cost and told council the city would commit up to an additional $165,000 from the water fund if necessary, while seeking to preserve the 2627 water fund contingency balance.
Council members pressed for clarity on which line items caused the difference between earlier 2.5M figures and the new funding numbers; staff reiterated that the 2.5M was the construction portion of a larger project budget that also includes design and permitting.
