16- Award Phase I of the Wastewater Treatment Plant to Thalle Construction & related items

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the project from $65,118,950.00 to now $62,852,642.00. We therefore recommend approval of Change Order #1. 3. Item #3 is to approve an amendment to our Utility Rates in order to raise the needed funds to support the annual payments for the additional long term financing we must issue in Item 44 below. An ordinance has been prepared that identifies the new rate increases, beginning January 1, 2023, as well as the timeline for additional rate increases that will occur after this. Those changes will take place automatically upon passage of this ordinance and are designed to cash flow our annual financing payments. 4. Item #4 is to issue new long term financing in the approximate amount of $26.2 million (the actual amount will be known the day of the Council meeting as our financial advisors will pull data that day to lock in rates). This additional financing will support the Thalle Construction bid. Assuming the above are all approved, this will allow us to move towards construction of the project which is estimated to be completed within 24 months of implementation of the agreement. Garver Engineering is under contract to provide third party on-site inspection services. There may be additional documents to approve in the near future, such as an agreement with Thalle, which will be brought back at a future time. BUDGET: Thalle Construction's bid, including the Change Order #l, will total $62,852,642.00. The City will issue long term financing in the approximate amount of $26.2 million (to be finalized the day of the council meeting) to supplement the approximate $46 million bond taken in 2020 (which supports construction, engineering, and observation). The City will adjust utility rates pursuant to the attached ordinance to fund the payments for the long term financing. The City will pursue a Phase II for the WWTP within the next two years which is currently estimated at an additional $40 million. RECOMMENDATION: 1. Award the bid to Thalle Construction, approve Change Order #1, approve an ordinance to adjust the utility rates, and approve an ordinance to issue new long term financing. 2. Request additional information on any of these four items and/or reject any of these four. ADDITIONAL THOUGHTS: 1. Award the bid to Thalle Construction, approve Change Order #1, approve an ordinance to adjust the utility rates, and approve an ordinance to issue new long term financing.