AGENDA #4b
MEMORANDUM
TO: Mayor and Town Council
DATE: April 10, 2000
The attached resolution would accept the negotiated
bid of R & G Construction Company in the amount of $255,157 and establish a
project budget within the 1996 Parks bond fund of $284,000 for this project.
The resolution would also authorize the Manager to execute an agreement that
would accept a $40,000 contribution from Ryan’s World of Chapel Hill, Inc., the
current concessionaire/operator of the Chapel Hill Skate Park, to be used for
construction of the Chapel Hill Batting Cage.
The attached budget ordinance would increase the
1996 Parks bond fund by $40,000 to reflect Ryan’s World’s contribution.
On February 23, 1998, the Council authorized the
Manager to submit a Parks and Recreation Trust Fund (PARTF) grant application
that, if it had been awarded, would have partially funded a batting cage
facility. The cost estimate for batting cage construction presented to the
Council was $196,000, with additional costs including contingency, design,
testing, and other costs totaling $256,000. The Town did not receive the grant.
On September 16, 1998, the Parks & Recreation
Commission petitioned the Council to authorize the start of design work for a
batting cage facility at Homestead Park.
On September 28, 1998, the Council authorized the
staff to begin planning for a batting cage facility at Homestead Park. The
staff presented revised cost estimates based on telephone surveys of owners of
recently completed batting cage facilities. At that time we estimated
construction and design costs to be about $200,000. The Council authorized the
staff to use remaining funds from the Lincoln restroom, Northside Gymnasium,
and Homestead Park projects for the design and construction of the batting
cages. The Council also authorized the use of additional 1996 Parks bonds for
this project.
On October 27, 1999 the Council authorized the
execution of a concession agreement with Ryan’s World of Chapel Hill Inc. for
operation of the Chapel Hill Skate Park and the batting cage facility (if
built).
On November 22, 1999, the Council rejected the Batting Cage construction bids that were received on October 15, 1999, and authorized the re-bidding of the project. The low bid was $299,500.
The project was re-bid with a bid opening on
February 8, 2000.
The Notice To Bidders was published in The Chapel
Hill News and the News & Observer on Wednesday, January 5, 2000,
and the Challenger Newspaper on Thursday, January 6, 2000. Bid notices were mailed to nineteen (19)
vendors, and two (2) minority business organizations in North Carolina. Four (4) bids were received on Tuesday,
February 8, 2000, 3:00 p.m., and were publicly opened and read as follows:
VENDOR BID
Patriot Building Co., Inc. $299,400
Hillsborough, NC
KAD Construction, Inc. $317,000
Raleigh, NC
Polovich Construction Co.,
Inc. $295,400
Raleigh, NC
R & G Construction
Company $268,980
Charlotte, NC
The four (4) bids have been reviewed by Town staff. We found that the bid proposals met the criteria listed in the bid instructions. R & G Construction Company’s bid price of $268,980 was the lowest bid.
We have since discussed the bid price with R & G Construction and have been able to identify $13,823 in savings. The attached resolution would authorize the construction of the batting cage for the negotiated price of $255,157. The reduction is in line with the Parks & Recreation Commission’s recommendation. Please see attached memorandum from the Parks & Recreation Commission.
DISCUSSION
The site of the proposed Chapel Hill Batting Cage was originally proposed to be used for tennis courts. However, in the past several years, tennis court use has declined somewhat and stabilized at a level that we believe does not warrant the construction of new courts in Town.
In 1998, the Parks and Recreation Commission recommended that a revenue producing facility be built on the site in conjunction with the skate park. The Council authorized the construction of a concession/restroom building that could be used to service both the skate park and a possible batting cage facility. Also in 1998, the Council authorized the staff to pursue the batting cage project.
Benefits of Construction of a Batting Cage Facility
We believe that if the batting cage facility is constructed that it would provide the following benefits to the Town:
· The batting cage would be a unique public facility in the Chapel Hill/Carrboro area that would serve both youth and adult users, including many persons in Town athletic leagues.
· The batting cage, if built, would be operated by the same concessionaire that currently operates the Chapel Hill Skate Park. The concessionaire would be responsible for all expenses including maintenance, salaries, and utilities and bearing the business risk.
· The concession/restroom building was designed for the addition of a possible future batting cage. Once built, the facility could be managed from the current building with no additional capital costs.
· The batting cage facility could provide a second revenue generating business adjacent to the skate park. Under the terms of our current agreement with the skate park operator, the Town would receive 10% of all revenues produced from the batting cage facility.
· Batting cage revenues combined with Skate Park revenues would increase the likelihood of financial success of the concessionaire-as-operator concept.
· The concessionaire/operator has offered to contribute $40,000 toward the cost of construction of a batting cage in order to bring the Town’s direct costs closer to original estimates.
Costs of Building a Batting Cage Facility
We believe that the major issues related to construction of the batting cage are:
· The anticipated $244,000 in Town funds recommended for a project budget could be used for some other project, including a proposed aquatics facility.
· The funds used for building a batting cage facility could be held in reserve in the event that replacement turf is needed on the two ballfields.
· In the event that the concessionaire elects to terminate the current agreement the Town would be responsible for managing the facility.
· The 16,500 square feet of land could be used for a number of other projects such as tennis courts, in-line hockey court, or a carousel. Those opportunities would be lost if the batting cage facility is built.
BUDGET
If the Council chooses to authorize construction of the Batting Cage facility we would propose the following project budget, which we believe would allow us to respond to unanticipated field conditions, especially the possibility of dealing with excessive rock. During construction of Homestead Park we removed excessive rock from several areas near the site of the proposed batting cage facility.
Proposed
Budget
Construction (negotiated bid price) 255,000
Additional Rock Allowance 10,000
Materials, Soil and Rock Testing 5,000
Legal 1,000
Contingency (5%) 13,000
Total
Budget $284,000
If the Council chooses to pursue this project, we
believe the following sources of funds would be best way to pay for the
construction of a batting cage facility.
Remaining Funds Homestead
Park 101,000
Remaining 1996 Parks Bond
funds 143,000
Contribution from Concessionaire: Ryan’s World of Chapel
Hill, the current concessionaire for the Chapel Hill Skate Park (and any future
batting cage facility) has offered to contribute $40,000 toward construction of
the batting cage facility. Please see the attached letter from the
concessionaire. Ryan’s World proposes to pay for its contribution over a period
not to exceed 40 months. Payments would be the greater of $1,000 per month or
an 70% of the gross receipts from the batting cage (in addition to the payments
required by the existing agreement), until the $40,000 total is achieved. At
this time, it appears that Ryan’s World will not be able to provide a bond or
other form of guarantee of the $40,000 contribution. Without a bond there would
be no guarantee that Ryan’s World would make all or any of their scheduled
payments. However, preliminary research of other batting cage facilities indicates
that the cash flow from the batting cage might be sufficient to raise the
needed cash in 40 months or less. The attached Resolution contains a provision
that the acceptance of the bid is contingent upon successful execution of an
agreement between the Town and the concessionaire.
Remaining Funds Homestead Park: The Council budgeted a total of $4,607,000 for the completion of
Homestead Park from a number of sources including 1996 Parks bond, Capital
Improvements Program, 1997 Orange County Parks bonds, payment in lieu of
recreation area, and gifts. We now have approximately $175,000 remaining in the
Homestead Park project account; all of it from the 1996 Parks bond proceeds.
Most of the Homestead Park project is complete,
however we do anticipate several remaining expenditures including park signs,
electric panels and timers for the athletic fields, court surfacing, and
replacement of cracked sidewalks. These projects are anticipated to cost about
$74,000. We believe that this would leave about $101,000 in the Homestead Park
project account at the conclusion of the remaining work.
In addition, it is possible that problems with the
turf on the two Homestead Park ballfields may require treatment that could cost
in excess of $100,000. The fields have been seeded and sprigged with Bermuda
grass. We hope that with proper fertilization and maintenance the turf will be
adequate for our purposes. However, the soils at Homestead Park are very poor
and may ultimately require the importation of sod. The Council authorized the
use of sod for the two soccer fields because of the type of play expected for
soccer fields. We should have a better idea whether or not the current
ballfield turf will prosper by mid- summer.
Remaining 1996 Parks Bond Funds: This proposal would use
$143,000 of the currently unallocated $1,364,000 in 1996 Parks Bond funds.
Although the Council has not formally allocated
these funds the Council has indicated that they would be used for a proposed
aquatics facility at Homestead Park. We would have $2,219,000 for the proposed
aquatics center if all the Town’s remaining 1996 Parks Bond funds were combined
with the $855,000 remaining from the $1,000,000 portion of the 1997 Orange
County Parks bond that was committed to Homestead Park. The County has already
authorized the use of $145,000 for use in the Homestead Park project. We
believe that an aquatic facility would cost a minimum of $3.5-4.5 million. A
citizens committee is currently preparing a conceptual plan report for an
aquatics facility, which is anticipated to be ready for presentation to the
Council in September 2000.
SCHEDULE
If the Council chooses to proceed with this project
we would expect to use the following schedule:
Begin Construction June
Complete Construction August
Open Facility September
The skate park was originally designed to
accommodate a batting cage facility. The design would allow both facilities to
be operated by a single manager. We continue to believe that the best use of
the site would be a revenue producing amenity that could be operated jointly
with the skate park. We believe the current concessionaire is capable of
managing both facilities in a manner that would bring a positive revenue flow
to the Town. We also believe that the batting cage would serve a wide range of
participants including both youth and adults. The current skate park
concessionaire has offered to contribute $40,000 toward construction of the
batting cage over a period not to exceed 40 months. However, it appears that
there will be no bond to guarantee that all or any of the payments will be
made.
If the Council builds the batting cage facility,
funds would be spent that could be used for other projects including a proposed
aquatics facility, or if necessary, the addition of sod to the Homestead Park
ballfields.
Parks &
Recreation Commission’s Recommendation: At its February 16, 2000 meeting the Parks
and Recreation Commission voted unanimously (7-0) to recommend that Council
accept the low bid on the batting cage project with the understanding that
staff will work with the low bidder to reduce the cost by $12,000 to $15,000.
The Commission also understands that a private donor will give $40,000 for the
project. This recommendation is contingent on the Town negotiating an agreement
with a concessionaire for the Town to receive 10% of revenue and on setting
user fees based on comparable regional rates.
The Commission reiterated its strong support of the
project and stressed the importance of constructing the batting cages as soon
as possible.
Manager’s Recommendation: That the Council adopt the attached resolution which would accept
the bid of R & G Construction Company for the negotiated amount of $255,000
for the construction of the Homestead Park batting cage, contingent upon the
successful execution of an agreement with Ryan’s World of Chapel Hill for the
provision of $40,000 to be used for the construction of the batting cage
facility.
1.
Parks
& Recreation Commission Recommendations
2.
Letter
from Frank Noel
A RESOLUTION TO AWARD THE BID FOR THE HOMESTEAD PARK
BATTING CAGE (2000-04-10-/R-3)
WHEREAS, the Town of Chapel Hill has solicited
formal bids by legal notice in The Chapel Hill News and the News
& Observer, January 5, 2000, and the Challenger Newspaper,
January 6, 2000, in accordance with N. C. General Statute 143-128 for
construction of the batting cage; and
WHEREAS, four (4) bids were received on Friday 8,
2000, at 3:00 p.m., and opened:
VENDOR BID
Patriot Building Co., Inc. $299,400
Hillsborough,
N. C.
KAD
Construction, Inc. $317,000
Raleigh, N.
C.
Polovich
Construction Co., Inc. $295,400
Raleigh, N.
C.
R & G
Construction Company $268,980
Charlotte, N.
C.
WHEREAS, the low bidder R & G Construction
Company has agreed to a negotiated price of $255,157;
NOW, THEREFORE, BE IT RESOLVED by the Council of the
Town of Chapel Hill that the Town accepts the bid of R & G Construction
Company for the negotiated amount of
$255,157 for the construction of the Homestead Park Batting Cage
facility contingent upon successful execution of an agreement with Ryan’s World
of Chapel Hill that would provide a $40,000 contribution to the Town toward
construction of the facility.
BE IT FURTHER RESOLVED by the Council that the
Manager is authorized to establish a project budget of $284,000 using $244,000
in 1996 Parks bond funds and a $40,000 contribution from Ryan’s World of Chapel
Hill, Inc.
BE IT FURTHER RESOLVED by the Council that the Manager
is authorized to execute an agreement with Ryan’s World of Chapel Hill for the
purpose of securing a $40,000 contribution to the Town for construction of a
batting cage facility at Homestead Park and establishing rates for use of the
batting cage facility that are comparable to other batting cage facilities
located in the Triangle.
This the 10th day of April, 2000.
AN ORDINANCE
TO AMEND THE 1996 PARKS BOND PROJECT ORDINANCE
(2000-04-10/O-0.1)
BE IT ORDAINED by the Council of the Town of Chapel
Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of
North Carolina, that the capital projects ordinance for various capital
projects funded from a variety of sources is hereby amended as follows:
The capital projects as authorized by the Town Council includes various capital projects funded from grants, the Capital Improvements Program funds, and other miscellaneous sources of revenue for a variety of projects extending beyond one fiscal year.
The Manager of the Town of Chapel Hill is hereby
directed to proceed with implementation of these projects within terms of funds
appropriated here.
Revenues anticipated to be available to the Town to
complete the project are as follows:
Current
Budget Revised
Interest
Earnings 19,600 19,600
Other
Revenues 217,200 257,000
Amounts appropriated are for
the project as follows:
Parks and Recreation Facilities 5,236,88 5,276,800
SECTION IV
The Manager is directed to report annually on the
financial status of the project in an informational section to be included in
the Annual Budget, and shall keep the Council informed of any unusual
occurrences.
Copies of this projects ordinance shall be entered
into the Minutes of the Council and copies shall be filed within 5 days of
adoption with the Manager, Finance Director and Clerk.
This the 10th day of April 2000.