Presentation given to Oak Harbor City Council during workshop on April 11, 2018.

1. Guaranteed Maximum Price
Amendment #13
City Council Workshop – April 11, 2018

2. • Purpose
• GMP #13 overview
• Windjammer Park
• Funding and Procurement Strategy
• GMP #13 Cost
• Impact to Clean Water Facility
• FAQ
Agenda
4/11/2018City Council Workshop 2

3. • Update City Council on the development of GMP #13
• Discuss the overlap between the CWF and Park
Improvements
• Discuss the cost development for GMP #13
• CWF project cost impacts / rate impacts
• Discuss Windjammer Park Phase 1 options
Purpose
4/11/2018City Council Workshop 3

4. • GMP #13 overview
Agenda
4/11/2018City Council Workshop 4

5. • GMP #13 includes the following elements
• Clean Water Facility Improvements (Must Have Items)
• Mitigation / Restoration
• Fencing
• Paving
• Water Main
• Demolition
• Windjammer Park Phase 1 improvements
(Implement Windjammer Park Integration Plan)
Guaranteed Maximum Price
Amendment #13
4/11/2018City Council Workshop 5

6. 6

7. 7

8. 8

9. • Windjammer Park
Agenda
4/11/2018City Council Workshop 9

10. 10
Decembe
r 2015
Januar
y 2016
February
2016
March
2016
April
2016
May/
June
2016
Council and CAG Process
• Provide
feedback on 3
concept
alternatives
• Present WPIP
concept to
community
• Gather community
feedback (Public
Open House and
Online Open
House)
• Review preferred
plan to be
presented to City
Council
• Provide final
feedback
• CAG forms
• CAG provides
feedback on
design
guidelines
• Introduce CAG
and WPIP to
community
• Gather
community
feedback (Public
Open House)
COUNCIL
• Programming
priorities
• Approves CAG
COUNCIL
Report:
Alternatives and
Public feedback
COUNCIL
Approves plan
COUNCIL
CAG formation update
and initial priorities list/
design guidelines
4/11/2018
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City Council Workshop

11. What We Heard
4/11/2018 11
• “Given” elements must be included (e.g. – restrooms,
kitchens, parking, playgrounds, waterfront trail, sport courts)
• Family-friendly elements should be prioritized
• Current RV park standards are not an efficient use of the
park space
• Views of the water are important
• The ballfields should be relocated in the long term
City Council Workshop

12. Proposed
Phase 1
4/11/2018 12
Original Phase
1
To include
part of
Phase 2 & 3

13. Windjammer Park Phase 1
4/11/2018 13
• Includes Clean Water
Facility mitigation and
restoration
• November 15, 2016 –
City Council amended
Carollo’s contract to
include design

14. Windjammer Park Phase 1
Open House 1
4/11/2018 14
• 167 community members attended
in-person and online open houses in
January 2017
• 97 community members provided
input on park character and theme
City Council Workshop

15. What We Heard
4/11/2018 15
• Highest priority elements are restrooms, walkways, a
nature play area, park furnishings, and a splash
park
• Participants preferred a natural, simple aesthetic
• Park spaces should be flexible and multi-purpose
• Thoughts on style inspirations for specific elements
City Council Workshop

16. Windjammer Park Phase 1
Open House 2
4/11/2018 16
• 290 community members
attended in-person and online
open houses in
August/September 2017
• 79 community members provided
general comments, thoughts on
the park design, and priorities for
future park phases
City Council Workshop

17. What We Heard
4/11/2018 17
• Excitement for the splash park
• Appreciation for the future
park’s design aesthetic
• Requests to add pickle ball
courts
City Council Workshop

18. • Funding and Procurement Strategy
Agenda
4/11/2018City Council Workshop 18

19. • Both Sewer and General Funds will be used
• How do we distinguish which fund pays for what?
• 7 bid packages
• Base Bid = Sewer Fund
• Bid Alternates = General Fund
Funding and Procurement Strategy
4/11/2018City Council Workshop 19

20. • GMP #13 Cost
Agenda
4/11/2018City Council Workshop 20

21. Element Sewer Fund General Fund Total
Bid Items $8,072,220 $3,764,023 $11,836,243
Self Performed $1,169,774 $814,694 $1,984,468
NSS $223,156 $275,093 $498,249
Sub-total $9,465,150 $4,853,810 $14,318,960
GMP Risk Contingency @ 3.0% $283,955 $145,614 $429,569
Owner Design Contingency @ 2.0% $189,303 $97,076 $286,379
GMP #10 Allowance Adjustment $850,000 $0 $850,000
Specified General Conditions $165,000 $220,000 $385,000
Sub-total $10,953,408 $5,316,500 $16,269,908
GCCM Fee @ 4.28% $468,806 $227,546 $696,352
GMP Sub-total $11,422,214 $5,544,046 $16,966,260
Sales Tax @ 8.7% $993,733 $482,332 $1,476,065
GMP #13 Total w/Sales Tax $12,415,947 $6,026,378 $18,442,325
GMP #13
4/11/2018City Council Workshop 21

22. • Defer Maintenance Building to future phase
• Reduce depth of top soil
• Don’t line sewer manholes in CWF yard
• Do not import soil to balance site
• Select which general fund items are constructed
with this phase
Value Engineering
4/11/2018City Council Workshop 22

23. • Some value engineering items may not be realized
until after award due to public works bidding
Value Engineering
4/11/2018City Council Workshop 23

24. • Impact to Clean
Water Facility
Agenda
4/11/2018City Council Workshop 24

25. Clean Water Facility Financials
4/11/2018City Council Workshop 25
EXPENDITURES
CONTRACTED/ESTIMA
TED BUDGET
PROJECT TO
DATE ACTUAL BALANCE
ACQUISITIONS 3,396,325.69 3,351,387.42 44,938.27
ADMINISTRATION 692,852.01 461,262.01 231,590.00
CONSTRUCTION 116,738,780.95 75,301,350.80 41,437,430.15
FINANCE 258,638.16 216,172.66 42,465.50
PROFESSIONAL SERVICES – DESIGN 10,191,581.88 6,830,374.85 3,361,207.03
PROFESSIONAL SERVICES –
CONSTRUCTION 9,447,726.92 9,234,154.69 213,572.23
TOTAL PROJECT EXPENDITURES 140,725,905.61 95,394,702.43 45,331,203.18
CASH SURPLUS (DEFICIT) 5,223,392.09 2,489,402.93 2,733,989.16
TOTAL FINANCING/TSFR 3,798,088.98 2,489,402.93 1,308,686.05
ESTIMATED CASH REMAINING 1,425,303.11 0.00 1,425,303.11

26. • Funding needed:
• Cash Available @ 3/31/18 $ 1,425,303
• Increase use of System Development + 1,000,000
• GMP #13 ($12,415,947 - $5,300,000) - 7,115,947
• Funds needed $ 4,690,644
Clean Water Facility
4/11/2018City Council Workshop 26

27. • Sewer Fund Cash Reserves
• $4,690,644 can be used from fund balance
• By using this it draws available balance from approx. $11.9M down to
$6.4M
• Reserved fund balance holds an additional $1.2M or 25% of expenditure
budget
How to pay for the increase
4/11/2018City Council Workshop 27

28. Windjammer Park – General Fund
4/11/2018City Council Workshop 28
FUNDING DETAIL 2017 2018 Proposed Total
Program Income in WJP 382,235 1,500 383,735
General Fund - Sales Tax 915,574 177,633 1,093,207
126 Community Park 212,731 50,824 263,555
127 Park Impact Fees 63,985 39,258 103,243
311 REET I 87,500 120,525 208,025
312 REET II 87,500 101,435 188,935
Legislative Grant 727,500 727,500
Total Funding 1,297,809 1,358,349 312,042 2,968,200
Budgeted Expenditures in
WJP 916,662
Cash Available 2,051,538
Full GMP#13 - GF
Portion 6,026,378
Funds Needed (3,974,840)

29. Windjammer Park - Optional Items
4/11/2018City Council Workshop 29

30. 30

31. Feature Cost
Hardscape, Landscape, Electrical $1,704,067
Splash Park $941,784
West Kitchen $1,168,904
Pavilion Structure $698,820
Maintenance Building $876,013
Landscape Maintenance $32,135
Picnic Tables and Litter
Recepticals
$66,427
Windjammer Park - Optional Items
31

32. • Balance in Stability Fund (before 12/31/17 adjustment)
• $3,800,699
• Questions~
• How much should be left for the emergency fund?
• Are there any other Council priorities that the stability fund
might be used for?
• Should use be covered under OHMC 3.09?
Windjammer Park – Stability Fund?
4/11/2018City Council Workshop 32

33. Rates – January 2018 Estimated
4/11/2018City Council Workshop 33
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2010 Base Case $40.00 $42.00 $47.00 $52.00 $57.50 $64.75 $72.85 $81.95 $92.20
2010 Ord 1587 $40.00 $42.00 $47.00 $52.00 $57.50 $64.75
March '16 Estimate $77.70 $89.36 $102.76 $118.17 $135.90
2016 Ord 1760 $77.70 $89.36 $102.76
Sept '16 Estimate $77.70 $89.36 $102.76 $110.98 $119.86
Jan '18 Estimate $77.70 $89.36 $102.76 $106.36 $110.08
$77.70
$89.36
$102.76 $106.36 $110.08
$-
$20
$40
$60
$80
$100
$120
$140
$160
ResidentialUtilityRate
In January 2018, rates were checked
with current funding and an
Estimated Total Project Cost of
$140M

34. Rates – April 2018 Estimated
4/11/2018City Council Workshop 34
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2010 Base Case $40.00 $42.00 $47.00 $52.00 $57.50 $64.75 $72.85 $81.95 $92.20
2010 Ord 1587 $40.00 $42.00 $47.00 $52.00 $57.50 $64.75
March '16 Estimate $77.70 $89.36 $102.76 $118.17 $135.90
2016 Ord 1760 $77.70 $89.36 $102.76
Sept '16 Estimate $77.70 $89.36 $102.76 $110.98 $119.86
Jan '18 Estimate $77.70 $89.36 $102.76 $106.36 $110.08
April '18 Estimate $77.70 $89.36 $102.76 $107.38 $117.27
$77.70
$89.36
$102.76
$107.38
$117.27
$-
$20
$40
$60
$80
$100
$120
$140
$160
ResidentialUtilityRate
Rates have been checked with
current funding and an Estimated
Total Project Cost of $147M

35. • Previously we planned to use Sewer Fund Balance for rate
stabilization during this rate analysis
• Expenditures were planned to exceed rate revenue and to
use the fund balance so rates would not be artificially
increased until fund balance was brought down
• The use of fund balance to cover GMP #13 bid amounts
could create a need for rate increase between 2020-2023
Rate Structure
4/11/2018City Council Workshop 35

36. • Things to keep in mind:
• This is a check-in – when the project is completed we will use
actual cost to determine rates
• There won’t be changes to the rate structure until the CWF
project is completed
• The estimated Operating & Maintenance Budget is a
conservative projection
Impact on Rates
4/11/2018City Council Workshop 36

37. • Continued…..
• If there is a growth in the customer base it may offset the need
for a rate increase
• Debt service is required to be 1.25x debt service coverage and
we have that estimated as covered through 2020
• Further detail will be provided by Shawn Koorn on 5/1/2018
Impact on Rates
4/11/2018City Council Workshop 37

38. • FAQ
Agenda
4/11/2018City Council Workshop 38

39. • What happens if we delay GMP #13
• Schedule delays (delayed CO)
• Increased cost
• May need to rebid
• Material costs could go up
• Change orders on existing GMPs
• Mobilization / de-mobilization required to work in 2019
What do we do?
4/11/2018City Council Workshop 39

40. • Discussion
Agenda
4/11/2018City Council Workshop 40

41. • Staff will proceed with VE efforts
• Discuss potential funding sources
• Ideas on how to fund optional items
Discussion
4/11/2018City Council Workshop 41

42. • Continue to seek ways to keep project cost and
rates down
• Continue communicating with community
Next Steps
4/11/2018City Council Workshop 42

43. What to Expect in 2018
4/11/2018City Council Workshop 43

44. Questions?
4/11/2018City Council Workshop 44

45. 4/11/2018City Council Workshop 45