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Home My WebLink AboutCOM 0848.000 2004-2006 William Takaba Harry Kim Wayor W' Drrrcmr - • Nancy F. Crawford ~r•:; e'~ Depup'Uirermr Sri u~'M~« County of Hawaii Finance Department 25 AUpon i .Street, Room 118 • Hilo, Hawaii 96720 (808) 961-8234 • Fax(808)961-8248 April 19, 2006 Stacy K. Higa, Chairman and Members of the Hawai'i County Council Hawai'i County Council 25 Aupuni Street Hilo, Hawai'i 96720 Re: Capital Budget Enclosed is a bill for an ordinance amending the Capital Budget by appropriating an additional $3,600,000 to the Ahalahui/Pohoiki Bay Beach Parks project, thus increasing this fiscal year's funding from $2,000,000 to $5,600,000. Part of this overall project is the expansion and improvements to the Isaac Hale Memorial Park. Initially, the prime consultant and architect estimated the entire project would cost $900,000. In light of the current construction boom and corresponding inflated costs, $2,000,000 was appropriated in the current fiscal year's CIP budget. However, when bids were opened on April 131h, the apparent low bid was at $5,527,500. In accordance with State procurement rules, the County has 60 days following bid opening in which to issue a letter of award to the apparent low bidder. Failure to issue said award letter results in invalidation of the bid or allows the contractor to negotiate for inflation in costs arising from the delay. In order to issue the award letter, sufficient funding must already be in place and all negotiations with the contractor completed. To enable the County to meet this 60 day deadline, the Department of Parks and Recreation respectfully request for waiver from the Finance Committee and to have this bill heard at the Council Meeting scheduled for May 2, 2006. If there are any questions, please do not hesitate to call the Department of Parks and Recreation. William Taka a Director of Finance APPROVED: 3VE Harry Kim Mayor Comm, No, Ref. I Enc. Ref, Dote cc: Parks & Recreation / 1 a, Hawaii County 1s an Equal Opportunity Provider and Employer Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: PARKS & RECREATION DATE: 4/19/2006 STAFF CONTACT: James Komata, Park Planner PHONE: 961-8531 A. REQUEST: We are requesting an increase to the existing 2005-06 CEP appropriation entitled "Ahalanaui/Pohoiki Bay Beach Parks" in the amount of $3,600,000.00 (from $2,000,000 to $5,600,000) which was originally created by Ordinance 05-87 and was assigned account Number 110.599.5590.41.115. We respectfully request Finance Committee waive consideration of this action and allow it to be heard at the next County Council meeting. The County has a limited timeframe to negotiate and award the construction contract to the prospective low bidder. Failure to act accordingly within 60 days of the bid opening may result in invalidation of the bid and requires the entire project be bid over resulting in scheduling delays with potential impacts on permits and approvals already obtained for the project as well as a Land & Water Conservation Fund Grant secured two years ago. It also results in additional time the community must endure without the proposed improvements. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): Council action is required to increase the subject appropriation to fully fund the construction of the Expansion & Improvements to Isaac Hale Memorial Park project, Job No. B-3512 The project's contract drawings and specifications were prepared by prime consultant and architect James M. Mckeague of Hilo who estimated this phase of the project would cost the County approximately $900,000. In deference to this estimate, our department budgeted $2,000,000 to accomplish the project in light of the current construction boom, the scarcity of material and labor resources, increased material and fuel costs and corresponding inflated bid prices. The bids for this project were opened on April 13, 2006 and the apparent low bid was $5,527,500.00. In accordance with State procurement rules, the County has 60 days following bid opening in which to issue a letter of award to the apparent low bidder. Failure to issue said award letter results in invalidation of the bid or allows the contractor to negotiate for escalation in costs arising from the delay. In order to issue the award letter, sufficient funding must already be in place and all negotiations with the contractor completed. (Background and Justification continued on next sheet) SIGNED: DATE: .Aepa ent Head Form B-52 7/18/91 B. BACKGROUND AND JUSTIFICATION (Continued): The requested additional funding provides for the entire project to be awarded/constructed and allows a contingency of approximately $500,000 (roughly equivalent to 9% of the project, less than the 15-20% we would typically plan for) to hold in the inevitability that change orders are required during the construction process to successfully accomplish the project. This project was set up as the first increment of two that will result in a fully developed beach and family recreational park site for the Puna district. Because the project's primary purpose was to replace the park facilities and amenities lost to inundation by the lava flows from Kilauea, reducing the scope of the current project is not a consideration. Also, delaying the construction of all or portions of the project will only result in increased costs and delayed use and enjoyment of the proposed improvements by the Puna community. ~p o O ro b «'~-O b R O P ~ o C rv 0 O A> O i z o. O O N 7 Q ~ o G v O v F O a 3 Y v 9 o h a ~ N N N ~ C VI a ro p N N ~ r1 0 L N~' G rC Y _ O O LQ L .J R d v~ O i 0 C p C O C o 'Y 2 v avio i. i' , c ° _ N O ~ ~ U d U N i ~ 1 o a v = C y a o Y~~ 5 0 °01 .ro > R y 3 a U id G C D O 'C ~ p O ~ ~ O ~L u y .F fA w ~ E N 0. N L R O ti> ro c n, o a 3 0, °o ~ 0. ~ .E _ ~ 9 O « o oa E v aroi d ~ ~ v o i h = 'O YO u 'f a. 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PILAGO •tiOiM~ GARY SAFARIK HAWAII COUNTY COUNCIL County of Haivai 'i Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 April 20, 2006 Stacy K. Higa, Chair Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 RE: Bill No. 276 An Ordinance amending Ordinance No. 05-87, as amended, relating to public improvements and financing thereof for the fiscal year July 1, 2005 to June 30, 2006. Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawaii, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sincery, jj~_4 Vv U~ Virginia 11S ell, Chair Committee on Finance Approved/Date/Waive to Council: Disapproved/Date/Refer to FC: Stacy K. Higa, air Stacy K. Higa, Chair Hawaii County Council Hawaii County Council V I/smc Hawaii County Is An Equal Opportunity Provider And Employer