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<br />Cass 17 Project Discussion <br /> <br />Attachment 2 <br />5/15/08 <br /> <br />Bids were opened on the Cass 17/Cass 6 project this morning. 'rhe bids were <br />significantly higher than the funds we have budgeted for the project. <br /> <br />Construction Cost Estimate IIi story of Project: <br /> <br />SRf Consulting Estimate dated 6/15/2007 <br />County Budget 1"(.11' projectlll11 2007 <br />SRF Consulting Estimate dated 5/112008 <br />Cass County Staff revised SRF estimate May 08 <br />Lov.' Bid 5/15/08 <br /> <br />$2,141,966 <br />$3,000,000 <br />$3,248.525 <br />$3.857,700 <br />54.130,214 <br /> <br />Last summer's budget number 01'$3 million seemed conservative based on the SRF <br />estimated cost of$2.1 million. I realized then there would likely be some escalation and <br />their estimate didn't include incidentals such as any utility relocation costs and 1 <br />budgeted accordingly. <br /> <br />We ended 2007 with a small surge in gas tax revenue and some lower expenditures <br />during the later part of the year so our 2007EOY fund balance of$1,720A45 left us with <br />some room but the bid on Cass 17 is still problematic in vie\v of other considerations. <br /> <br />We didn't get as much right of way purchased in 2007 as anticipated so some of the carry <br />over balance from 2007 was used to purchase right of way in 2008. We now expect the <br />2008 right of way costs to be about $850,000 which is $650,000 more than budgeted in <br />2008. Utility relocation costs for the Cass 17 project are estimated at $200,000. <br /> <br />This leaves us with a number of not very attractive options involving eith(~r cutting <br />projects, transferring money from other funds into the highway fund, barrowing money or <br />a combination. <br /> <br />If we award the Cass 17/6 project and the ('ass 10 overlay (80% Federal Aid) project and <br />no other projects, we still end up with a negative fund balance projection of nearly <br />$200,000 at the end of the year. I should also plan on at least $100,000 in fuel cost <br />overrun this year making the negative fund balance projection about $300,000. <br /> <br />I'd like to get this information in today's mail cven though thcrc is an unsolved problem <br />so I'm mailing this without a recommendation at this time. I will discuss alternatives <br />with the Commission on Monday at the Road Advisory meeting Monday. <br /> <br />Keith Berndt <br />