Agenda - Parks and Recreation Commission - 01/14/2010

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performing the more complex construction aspects on other days (after rink maintenance), and organizing the boardwalk construction for Monday's. Funding As indicated, the purchase cost for the boardwalk materials and bituminous would be an estimated $241,136. Labor if performed by a contractor is projected to be $40 per foot for the boardwalk or $84,000; for a total project value of$325,136. Staff is proposing the following 'formula' for funding the project. The original $39,440 dollars in Trail Fees would be credited to the total value of $325,136, leaving $285,696 to be deducted from the Letter of Credit. However, the other Letter of Credit eligible expenses may be addressed first, (if, as an example, they are determined to be an even $100,000, this would leave a balance of $219,000). Under the labor-included scenario above, there remains a modest deficit in the purchased cost of the boardwalk and bituminous and the Letter of Credit balance. While the in-house labor is probably not recouped under this proposal, these hours are provided for by the general fund budget and the boardwalk can still be completed - something that is in everyone's interest. Over the course of the next two weeks, staff will attempt to get firmer numbers and also determine the amount of available Escrow monies there may be for Sweetbay Ridge (that can be used for administrative time to bring to completion Phase 1 improvements). If City Council chooses to approve city forces for the labor needed to complete this project, the bituminous and boardwalk purchase cost only - then it is likely that this improvement can indeed be accommodated by calling upon the Letter of Credit ($241,136 minus the $39,440 in Trail Fee credit = $201,696, which may correlate with the final balance of the Letter of Credit). Recommendation: Staff recommends that the Park and Recreation Commission recommend that City Council consider the proposal outlined above: If approved at their January 26th, 2010 meeting, boardwalk construction could begin in mid-February and continue as boardwalk components are produced and assembled through the frozen ground conditions into March - with paving and project completion in May 2010. Commission Action: Motion to recommend City Council call upon Sweetbay Ridge's Letter of Credit and any Escrows to fulfill the boardwalk obligation as called for in the 2006 Development Agreement. Reviewed by: Finance Officer Environmental Coordinator Associate Planner P&R: 1/14/10