HomeMy WebLinkAbout33. 21-613DECEMBER 14, 2021 21-613 RESOLUTION
(CARRIED__7-0____ LOST_______ LAID OVER_______ WITHDRAWN_______)
PURPOSE: APPROVE FUNDING FOR THE LAKESHORE PARK 4 SEASONS
BUILDING
INITIATED BY: FINANCE DEPARTMENT
WHEREAS, the City of Oshkosh heretofore advertise bids for a Lakeshore Park 4
Seasons Building with the lowest bid of $4,464,887; and
WHEREAS, the total cost for the project is $5,100,000 which includes construction
management and design expenditures; and
WHEREAS, proceeds from the sale of the golf course were designated for park
improvements, of which the remaining funds total $2,000,750; and
WHEREAS, the City Council needs to approve additional funding for the project.
NOW, THEREFORE BE IT RESOLVED by the Common Council for the City of
Oshkosh that the following amounts be transferred into the Lakeshore Park 4 Seasons
building ( Acct # 0325-0610-7216) from the following accounts:
Remaining funds from other Parks Projects $ 175,000 0325-0610-3460
Design of Rainbow Memorial
Park Improvements $ 300,000 0325-0610-7216-62015
Remaining funds from Oshkosh
Avenue Corridor Project $ 1,700,000 0571-0750-7470
Reschedule Bradley Road Project $ 220,000 0321-0410-7206
Reduce Contingency $ 204,250 0323-0071
Remaining funds from Rainbow Memorial
Park Trail $ 200,000 0323-0740-7216
Reschedule a portion of Menominee Park
Road / Pratt Trail $ 300,000 0325-6610-7216
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Russ Van Gompel, Finance Director
DATE: December 8, 2021
RE: Approve Funding for Lakeshore Park 4 Seasons Building
BACKGROUND
Bids for the Lakeshore Park Four Season building were opened on Tuesday, November 9, 2021.
The city received three bids for the project. The low bid was $3,807,322, next lowest was
$4,464,887 and highest bid was $4,601,555. On Thursday, November 11, 2021, city staff was
contacted by the apparent low bidder requesting to withdraw their bid due to an “error in the
calculation of the bid” as they discovered an omission of costs associated with site utilities and
various building components. City staff requested further information, clarification and
documentation of this error and determined that it was an honest mistake so their bid has been
withdrawn. The next lowest bid of $4,464,887. The total cost of the project including
construction management and design expenditure is $5,100,000.
At the City Council meeting on November 23, 2021 the Council discussed the following options:
1. Add to the previous approved list of projects to be funded by the issuance of debt in
2022. This would make the potential debt issuance $21,500,000 instead of $20,000,000.
2. Keep the debt issuance at $20,000,000 and delay or push back $1,500,000 of other
projects.
3. Consider the use of ARPA funds. This project was not on the original list presented to
Council, however Council could consider adding it to the list of projects.
4. Consider rebidding the project at a later date. However, it is not guaranteed to
provide any different result plus there will be additional cost to rebid the project.
5. Do not move forward with the project. If this option is selected, Council needs to
recognize that $271,710 was already spent on the design and bidding of the project.
Council directed staff to identify potential funding sources to allow the project to move forward
and to seek input from the Advisory Parks Board in relation to potentially postponing other
park projects to allow this project to move forward.
ANALYSIS
City staff had previously identified funding for the building project coming from the following
sources: proceeds remaining from the sale of property to Oshkosh Corporation ($2,000,750),
funds remaining from past parks projects completed under budget ($175,000), funds remaining
from the Oshkosh Avenue Corridor project ($1,700,000), and funds available from deferring the
Rainbow Memorial Park improvements design work ($300,000). This funding totals $4,175,750.
Therefore $924,250 is needed to complete the Lakeshore Pavilion project.
Staff is recommending that the following be considered to provide the final funding ($924,250)
for the project:
Postpone or delay the planned improvements for Bradley Road ($220,000),
Reduce the contingency for capital financing by $204,250 (originally the contingency was
$699,100),
Remaining funds from the Rainbow Memorial Park Trail ($200,000); and
Reducing the funding for Menominee Park Road/Pratt Trail reconstruction ($300,000).
In addition to the above mentioned funding options, staff also considered other reductions to
the 2022 Capital Improvement Plan projects fund by the issuance of debt. These projects include
the remaining $700,000 for Menominee Park Road / Pratt Trail, the delay or rescheduling of the
extension of East 9th Ave ($1,601,500), delay the design contract for Pioneer Riverwalk extension
($300,000 budgeted for design work), the acquisition of properties along S. Main St. ($250,000),
delaying improvements at the Zoo ($100,000), using more of the contingency ($494,850), and the
use of ARPA funds. These projects could be used to substitute some of the recommended funds
for the 4 Seasons building; however, given the uncertainty over the bids for the Parks Operations
Building, it may be prudent to hold these funding ideas in abeyance until bids are opened for
that project.
FISCAL IMPACT
There is little fiscal impact in the decision since the recommendation simply delays or postpones
other projects to help fund the shortfall for the Lakeshore Park 4 Season building. The decision
is merely a reallocation of limited resources. In addition, some of the funding comes from
projects which have been completed and have balances remaining.
RECOMMENDATION
Staff recommends that Council adopt this resolution.
Respectfully Submitted, Approved:
Russ Van Gompel Mark Rohloff
Finance Director City Manager
ADVISORY PARK BOARD
DECEMBER 6, 2021
Present: Amy Davis, Scott Greuel, Devon Hudak, Deborah Martin, Becky Metz, Koby
Schellenger (Alternate Board Member)
Excused: Lauren Bartelt, Tony Dirth, Lester Millette, Lori Palmeri, Joseph Stephenson (Alternate
Board Member)
Staff: Ray Maurer, Parks Director; Stacy James, Recording Secretary
CALL TO ORDER & ROLL CALL
Chair Davis called the meeting to order at 6:00 P.M. A quorum was determined to be present.
APPROVAL OF MINUTES
Motion by Davis for approval of the November 8, 2021 minutes. Seconded by Martin. Motion
carried 6-0.
NEW BUSINESS
1) DISCUSS/RECOMMEND 2022 PARKS DEPARTMENT CAPITAL IMPROVEMENT
PROGRAM (CIP) PROJECTS TO POTENTIALLY DEFER
Mr. Maurer reviewed that bids for the 4-season building at Lakeshore Park opened on November 9
and the City had previously earmarked $3 million for the project. The current low bid is at $4,464,887.
Material costs are a big factor in this bid coming in over budget. On November 23 the Common
Council discussed the project and agreed that the project should move forward and asked city staff to
identify funding sources. Initial discussions took place regarding current 2022 approved CIP projects
and the most likely project to potentially defer and utilize the funds was the Menominee Park Pratt
Trail road reconstruction. Because this decision would affect parks and the fact that the Advisory Park
Board had previously requested this project in 2023 and 2024, the Common Council requested that the
Board provide input into this decision. Mr. Maurer reviewed the other projects that have been
approved for 2022.
One project in 2022 is the new Parks Admin/Operations building. Initially it was discussed that the
city would borrow money for this project over a three year period, however Council decided to fund it
entirely in 2021 and 2022. It is anticipated that bids on this project will almost likely come in over
budget as well. Bids will go out in January/February and staff will know more at that time.
Mr. Maurer has been working with the City Manager and the Finance Director to review possible
funding sources for both the Lakeshore Park 4-season building as well as the Parks Admin/Operations
ADVISORY PARK BOARD
MINUTES PAGE TWO DECEMBER 6, 2021
building. At this time they have not identified options for fully funding the 4-season building,
however they are hopeful that they will be able to fund this building without having to defer the Pratt
Trail project. Multiple departments in the city have come together to help suggest funding for the
building. However, the funds for the Pratt Trail project may have to be used for the Parks
Admin/Operations building.
With regards to the other projects that are approved for 2022, the Lakeshore Park developments are
not able to be deferred because these are matching funds for a DNR grant that the city has been
tentatively awarded. The Menominee Park beach bathhouse project is potentially being funding by
public/private partnerships so this project is not easily deferred. The zoo improvements that have been
approved have already been deferred multiple times and it is to a point that these improvements need
to be made. The remaining projects (Westhaven Circle Park lighting and park trails) are nominal
amounts given the amount of funding needed.
Mr. Greuel questioned whether ARPA funding could be used for the project. Mr. Maurer responded
that the funding is a potential option however it would ultimately be up to Common Council to make
that decision. Staff suggests the board recommend keeping the Pratt Trail reconstruction project fully
funded at this time and recommend that the funds could be used for the Parks Admin/Operations
building project if necessary. The Pratt Trail reconstruction project could then be deferred to 2023/2024
as originally recommended by the Board.
Because the bids for the 4-season building are good for 60 days there is a deadline of January 9 to
award the bid. As such, Council intends to make a decision on how to move forward at their
December 14 meeting. If funding is made available, the city can award the bid and work would begin
early spring with completion of the project anticipated in fall of 2022.
Ms. Metz asked if it would be beneficial to bid the project out once more. Mr. Maurer responded that
the city could deny all bids and go through the process again, however it is anticipated that material
costs will only continue to rise and in that case bids would come back even higher than they currently
have. Historically this time of year is the best time to get reasonable pricing for projects.
Motion by Greuel to recommend to not defer Menominee Park Pratt Trail road reconstruction
at this time and if necessary defer it to help fund the Parks Admin/Operations building.
Seconded by Hudak. Motion carried 6-0.
ADJOURNMENT
Motion by Davis for adjournment; seconded by Martin. Motion carried 6-0.
The meeting adjourned at 6:21 P.M
Respectfully submitted,
Stacy L. James
Stacy L. James, Recording Secretary