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The total fee for the construction management and inspection service for 1-680/Bemal Avenue Interchange will be$254,794.77. The construction management and inspection service for the two interchange projects will have separate invoices and will be paid from their respective project accounts. Budget A summary of the project budget is presented in Attachment 2. As indicated in this attachment, a total of $1,514,422 in funding has been provided for this project to date. Expenses and encumbrances to date total $1,284,456, resulting in current available funding of $229,966. With a construction budget estimated at $2,125,376, there are insufficient funds for the subject construction and related construction support services. BIC is required to make up the existing $1,895,410 funding shortfall in the Bernal Interchange Account to pay for the interchange improvement work as well as any construction change orders. BIC is also responsible for the funding of the future landscaping and overlay projects and has agreed to pay an additional $2,604,590 to fund these projects. Staff has reviewed and confirmed that this amount is sufficient for these future projects. These two amounts ($1.895M + $2.604M) total $4,500,000, and BIC will make this $4.5M payment for BIC's remaining obligation to fund the Bernal interchange improvements. Staff recommends that the construction contingency percentage for this project be set at a value of$284,700 (approximately 20% of the contract amount)for necessary related project work. Staff recommends this level of contingency due to the complicated nature of the project, including the archaeological concerns in the Bernal area. Schedule The proposed schedule for the subject project is as follows: Approval of Plans and Specifications and Award of Contract: 6/3/14 Start of Construction: 7/8/14 End of Construction: 2/9/15 Letter of Agreement.for Pavmentbv Developer As described above, the City and GHC Bernal Investors, LLC (BIC) entered into a Preannexation and Development.Agreement regarding the dedication of approximately 330 acres by BIC to the City, in exchange for development rights for BIC. As part of that agreement, BIC also is required to fund portions of the Bernal interchange improvements. The proposed letter of agreement (see Attachment 4, Exhibit A), would provide that BIC makes a lump sum payment of $4.5 million to the City to meet its obligation as set forth in Section 3.6(a) of the agreement. As discussed above, staff recommends that this amount be accepted as sufficient to meet BIC's obligations. Staff recommends that the Council adopt the resolution (Attachment 4) to approve the letter of understanding for this payment of $4.5M by BIC to the City for BIC's share of the Bemal interchange improvements. Page 5 of 6