SUBJECT/RECOMMENDATION:
Title
Approve an increase and proposal from Kokolakis Contracting, Inc., of Tarpon Springs, FL., for the construction of the Clearwater Beach Marina (21-0008-MA) in the amount of $43,469,475.00 bringing the total to $43,568,739.00 pursuant to Request for Qualifications (RFQ) 19-22; approve a not to exceed loan of $18,000,000.00 from the Capital Improvement Fund to the Marine Fund and authorize the appropriate officials to execute same.
Body
SUMMARY:
The City of Clearwater has operated a marina at Clearwater Beach since the 1940’s. Historical aerials confirm the Beach Marina was built prior to 1951 and was expanded by 1965 to essentially what exists today. Over the past 50 years the marina has been repaired but never refurbished or fully replaced. In 2005, the City considered a replacement of only the docks at an estimated cost of $8 million dollars. That project was never initiated. The existing marina infrastructure has reached the end of its serviceable life and needs to be replaced.
In October of 2021, due to the advanced age of all overwater structures and utilities, City Council authorized Moffatt & Nichol, of Tampa, FL., to begin the design and permitting process to replace these components and incorporate a vision that integrated Beach Walk with the Beach Marina, creating “Marina Walk.”
Moffatt & Nichol gave a presentation to the City Council Work Session on October 3, 2022. The engineer’s estimate of probable construction cost at the time of presentation was approximately $28 million dollars. At that time, City Council recommended the design be completed with an emphasis on quality of form and function including, but not limited to, a new seawall and a combination of fixed and floating docks.
Council also gave direction at the council meeting on October 6, 2022, for the addition of a Supplemental Work Order for Moffatt & Nichole to research parking needs and for staff to consider a preliminary design option for a parking garage to ensure coordination with the final marina design. The supplemental Work Order was completed, and a pro-forma and design costs have been established. Staff are working on the parking garage at the Beach Marina as a separate project but seeking to incorporate construction into the phased construction of the Beach Marina and will present that option to Council at a later date. The parking garage will provide the necessary parking and upland support needed for the commercial operations at the Beach Marina.
On January 12, 2023, Council authorized the contract and pre-construction phase proposal with Kokolakis to renovate the Beach Marina in the amount of $99,264.00 pursuant to Request for Qualifications (RFQ) 19-22.
On November 13, 2023, Moffat & Nichol gave the final design presentation to Council’s work session. The reconstruction of the Beach Marina will include a wide variety of resiliency features including the raising of the seawall, updating all utilities, dredging, floating dock structures, and the future ability to add boat charging stations for electric boats. The engineer’s opinion of probable construction cost for the final design was raised to $35.1 million dollars.
The Clearwater Beach Marina will maintain our current slip count of 165 slips (83 recreational slips, 59 commercial slips, and 23 transient slips). The fuel dock will be able to accommodate all tenants as well as visitors and residents of Clearwater. Two (2) ferry slips are included, and they will be able to accommodate the new ferry vessels that will be operational in early 2025. The Marina Walk will include 24 kiosks available for the commercial fleet to lease and conduct sales from.
Construction of the Beach Marina is expected to begin in October 2024 and is scheduled to be completed the spring of 2026. The construction GMP is $43,469,475.00, and the total project budget is estimated to be $46.5 million. This project is currently underfunded with a total of $28,492,258.00 currently available. The increase in budget is the result of labor (10-15% increase in last 18 months) and material cost escalations exceeding that accounted for during the construction cost estimate exercises. For example, the cost of concrete used for the floating docks and marina walk has risen sharply by 40% since 2020 as reflected by the producer price index for cement and concrete. Similarly, the cost of electrical equipment and conductors has risen drastically. The cost of aluminum and copper has increased by 25% and 26% in the last 4 months. Other increases are the results of upgrading existing site grade conditions for stormwater runoff, cost of phasing the project to allow continuity of commercial operations ($1,000,000), and specialty marine products (cleats, pedestals, etc.) increased by 20-30% in the last 18 months.
Currently there is an outstanding grant application in process with the Tourist Development Council (TDC) to help supplement the funding needed for this project. The remaining funding needed will be provided by a 10-20-year 0% interest not to exceed loan of $18 million from the Capital Improvement Fund, to be reduced by the award of grant funding (payment structure TBD based upon amount of grant award). A 1-year deferral of payment (from project completion) will allow time to implement new rates for slip rentals and to reestablish revenue levels/profitability.
APPROPRIATION CODE AND AMOUNT:
A third quarter budget amendment will provide an increase of $18,000,000.00 in capital project C1905, Beach Marina Upgrade, which will provide the remaining funding needed to establish the total project budget. Once amended, sufficient funding/budget will be available in capital improvement project C1905, Beach Marina Upgrade to fund this GMP proposal.
STRATEGIC PRIORITY:
High Performing Government
1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
Economic & Housing Opportunity
2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports eco-friendly enterprises, and encourages high-quality job growth.
2.3 Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
