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Agenda Item 8HAGENDA ITEM # 8H MAY 23, 2011 STAFF REPORT City of Atlantic Beach Commission Meeting AGENDA ITEM: Tideviews Boardwalk/Dock Extension Bids DATE: May 13, 2011 SUBMITTED BY: David E. Thomps`bn; Asst. City Manager BACKGROUND: In 2009, the City Commission authorized staff to seek grant funding from the Florida Inland Navigation District (FIND) to enhance the Tideviews Preserve by extending the boardwalk/dock, and by adding a kayak/canoe launch/landing. An application was submitted and subsequently approved by FIND for designing, engineering, and permitting these additional amenities. The design cost was $61,535.20, and FIND committed to reimbursing 50% of the design costs (after a construction contract is awarded). After the appropriate selection processes, Bowen Civil Engineering (BCE) was selected to provide the designing, engineering, and permitting services for this project. Based on estimates from BCE, an application for $193,580 was submitted to FIND in 2010 for the construction costs for building the designated features and structures. The application was approved by FIND for 50% of the total construction costs. On March 30, 2011, bids were advertised for the construction of the boardwalk extension and kayak/canoe launch/landing. On May 4, 2011, eight (8) bids were received for the project, and the lowest bid was $257,670. This exceeded the budget by $64,090. The average bid was $324,025 which was $130,445 over budget. Based on the information above, staff is seeking guidance from the City Commission relative to proceeding with this project. BUDGET: In the past, the City Commission has indicated that Convention Development Tax revenue would be utilized to fund this project. No General Fund money was allocated for this project. If the City Commission approves the award of the bid to the lowest bidder for $257,670, then FIND will provide $96,790 for the construction costs. The current balance in the budget for this project is $186,569. This means that approximately $72,000 must be added to the present budget to award the bid to the lowest bidder. Although the present Convention Development Tax fund does not have sufficient funding to cover this balance, it is acceptable to borrow from the General Fund, and then reimburse the funding to the General Fund next year when the Convention Development Tax funds are replenished. AGENDA ITEM # 8H MAY 23, 2011 Other Considerations: 1. It is likely that rebidding this project in the future will result in higher prices. The lowest bid was $52,271 lower than the nearest competitive bid, and it was $130,445 less than the average bid. If we competitively bid this project in the near future, we may not be fortunate enough to receive such a low price from a vendor. Additionally, the present economic climate has kept construction prices at low levels. If this project is delayed for a year or longer, then the construction prices are likely to rise. 2. Convention Development Tax funding is intended for a specific purpose. Although it has been suggested that Convention Development Tax money could be utilized for other park projects, there are limitations as to the use of this funding. Specifically, this funding is intended to be used for projects that encourage tourism i.e. visitors from outside of Duval County and the State of Florida.. The Atlantic Beach parks and marshes on the Intra - Coastal Waterway are part of a larger system of paddling trails that encourage tourism. Utilizing Convention Development Tax funding for Tideviews, Dutton Island, and Riverbranch preserves has a clear nexus to tourism in the community. If this project is postponed or cancelled, then the funding cannot simply be reallocated to any other project in an Atlantic Beach park. The City would still be obligated to dedicate the funding to a project that is clearly connected to promoting tourism. 3. Presently, FIND has authorized a reimbursement of $30,767 for the costs of design, engineering, and permitting. This reimbursement to the Convention Development Tax fund will be available as soon as the City authorizes a contract for construction. RECOMMENDATIONS: To award the bid for construction to the lowest bidder, (J.D. James, Inc. for $257,670), and to authorize the transfer of $72,000 from the General Fund to the Tideviews project budget to cover the cost of construction, with the direction to reimburse the General Fund from the Convention Development Tax Fund when the funding is available to do so (See Budget Amendment in this agenda). ATTACHMENTS: Bid Tabulations REVIEWED BY CITY MANAGER• AGEN ITEM NUMBER: 1 q , 1 1�7 VA - P411111 � � II � � I I ®r �. " �� I 19 i-M r' I I� -�� II i� I� I I II �., � � � I � I �� ��� � ~ � 14 1, • ��� �' � w L � 1 �� I Ai XV �11 I Oil I I I � � R r� -: , � '; � ill • � ���� +�_ �� � �� I I �� �I ,�.1. s ,a en � 'a (.II - fir' `�i 'j pill 'j