Memorandum 12-147 Nick Dudiak Fishing Lagoon Dredging Appropriation

CITY OF HOMER
PUBLIC WORKS TELEPHONE (907)235-3170
3575 HEATH STREET HOMER, AK 99603 FACSIMILE (907)235-3145
 

MEMORANDUM 12-147

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: September 18, 2012

RE: Nick Dudiak Fishing Lagoon Dredging
Appropriation/Funding Recommendations
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During the last legislative session, $100,000 was appropriated in the form of a grant to the City for the dredging of the Fishing Lagoon. The City had originally requested $255,000, the estimated cost of returning the Lagoon to its original depth. Public Works, with the assistance of the Harbormaster, has prepared a plan and submitted for the required environmental permits to allow for the work to proceed this Fall.

We estimate that to return the Lagoon to its original depth, approximately 25,000 CY of material will need to be removed. At $10.20/CY the total cost of the project is $255,000.

Total Project Cost = $255,000
Legislative Grant = $100,000
Additional Appropriation Required = $155,000

Not all of this additional required funding will be needed. The 25,000 cubic yards of material can be sold at $5 per yard, which will generate approximately $125,000 (especially if the Council authorizes the use of the material off the Spit).

Additional Funding Required = $155,000
Revenue from Sale of Material = $125,000
Actual Additional Funds Required = $ 30,000

Although $155,000 needs to be appropriated for the project; only $30,000 will ultimately need to be spent to complete this project. The construction contract will be offered to potential bidders with the ability for the successful bidder to take ownership of the material as part of the bid price (which would reduce the contract amount significantly, but still require some additional City funding)

Recommendations: The City Council pass an ordinance amending the 2012 Operating Budget appropriating $155,000 from the General Fund for the completion of the Nick Dudiak Fishing Lagoon Dredging project.