|
5. FINANCING
<br />5.1 Opinion of Probable Cost
<br />A detailed engineer's opinion of probable costs for the proposed improvements is included in Appendix B
<br />of this report. The opinion of probable cost incorporates bid prices from the 2021 and 2022 construction
<br />seasons including a 10% construction contingency. Indirect costs were budgeted at 20% ofthe construction
<br />cost and include engineering, legal, financing, and administrative costs. The indirect costs do not include
<br />the funding required to purchase necessary easements. Table 5.1 and 5.2 below provide a summary of the
<br />opinion of probable costs to extend water and sanitary sewer service to the study areas. The cost estimates
<br />are based on current market conditions and shall be used for preliminary planning purposes only. Market
<br />conditions are rapidly changing, and unit prices should be updated prior to proceeding with the projects
<br />recommended by this study.
<br />Table 5.1 — Opinion of Probable Cost to Extend Water Service (2040 planning timeline)
<br />Proposed Improvement Northeast Areas Northwest Areas
<br />Bonds, Insurance, and General Conditions $ 1,042,000 $ 1,448,500
<br />Mobilization/Demobilization $ 2,084,000 $ 2,897,100
<br />Trunk Watermain $ 4,543,000 $ 7,748,000
<br />Pressure Regulating Infrastructure $ - $ 1,222,000
<br />Wells and Treatment $ 9,500,000 $ 12,000,000
<br />Storage Infrastructure $ 4,750,000 $ 4,750,000
<br />Other (hydrants, valves, and fittings) $ 2,046,500 $ 3,250,600
<br />Construction Sub-Total $ 23,965,500 $ 33,316,200
<br />Construction Contingency (10%) $ 2,396,550 $ 3,331,620
<br />Construction Total $ 26,362,100 $ 36,647,800
<br />Indirect Costs (20%) $ 5,272,420 $ 7,329,560
<br />Total Cost $ 31,635,000 $ 43,977,000
<br />Table 5.2 — Opinion of Probable Cost to Extend Sanitary Sewer Service (2040 planning timeline)
<br />Proposed Improvement Northeast Areas Northwest Areas
<br />Bonds, Insurance, and General Conditions $ 432,900 $ 505,100
<br />Mobilization/Demobilization $ 865,800 $ 1,010,200
<br />Trunk Gravity Sewer and Manholes $ 1,611,000 $ 674,000
<br />Trunk Lift Stations $ 2,865,000 $ 2,840,000
<br />Air Release Valve Manholes $ 80,000 $ 25,000
<br />Pressurized Forcemains and Testing $ 4,096,400 $ 6,557,000
<br />Connecting to Existing System $ 6,000 $ 6,000
<br />Construction Sub-Total $ 9,957,100 $ 11,617,300
<br />Construction Contingency (10%) $ 995,710 $ 1,161,730
<br />Construction Total $ 10,952,800 $ 12,779,000
<br />Indirect Costs (20%) $ 2,190,560 $ 2,555,800
<br />Total Cost $ 13,143,000 $ 15,335,000
<br />In addition to the costs for the new infrastructure to be located in the two expansion areas, improvements
<br />will need to be made to the existing sanitary sewer infrastructure at the wastewater treatment plant to
<br />receive the new waste. These improvements include a receiving station estimated to cost $2,000,000 and
<br />a headworks (basin and receiving structure) estimated to cost $6,000,000.
<br />Feasibility Report
<br />Northeast & Northwest Urban Service Area Expansion Study
<br />City of Elk River, MN
<br />WSB Project No. 020010-000
<br />Page 22
<br />
|