(2)

Difference between United (A) and (B) alternative $164,450.80
Difference between United (A) and Dillingham (A) 24,632.80
Construction supervision estimate 32,270.00

Total 221,555.60
10% Contingency 22,135.36

Total $243,488.96
Say $250,000.00

The bylaw autherizing the above funds has now received three readings
and was subject to a final reading on January 3, 1978.

It is understood that the figure of $250,000 shall not be exceeded for

the construction of local authority works without further approval from
City Council. It is considered that the actual works shall be constructed
at a cost less than $250,000.

Regarding payments on the contract it is suggested that the following apply:

1} Progress Estimates, as certified by Crippen Engineering Ltd. and subject
to review by the Province, will be processed for payment by the Province.
These: will include for non-Program costs.

Non-Program works, payable by the City, will be itemized by the Consultant.
After approval and payment to the Contractor by the Province an invoice
will be forwarded to the Local Authority for payment to the Contractor
within 30 days. This amount will then be reflected as a credit on the
subsequent Progress Estimate.

To simplify the payment of construction supervision costs we would advise
the local authority that billing of these costs would be based on the
percentage of the value of the Local Authority work to the total capital
cost of the project. The difference of $164,450.80 when expressed as a
percentage of $3,547,4350.10 is equivalent to approximately 5%. On the
hasis of the above, the City will be billed for 5% of the engineering
supervision costs whereas the Program will absorb the remaining 95%.

The City will reimburse the Consultant directly on a monthiy basis. Any
necessary adjustment will be completed at the end of the contract once
the total project cost is known.

We will advise at a later date how the Local Authority will submit the
sum of $24,632.80 to the Provincial Treasury. The figure of $24,632.80
being the difference between Dillingham (A) and United (A).

- /3