Published: January 10, 2008 09:22 am      

Clinton Marina contract OK'd

CLINTON — The Clinton City Council has approved a $2.3 million contract bid for work on the Vision Iowa Marina Dock Improvements Project.

During a public hearing on the plans, specifications, form of contract and estimate of cost for the marina dock improvements project, Vision Iowa Project Manager Leo Foley on Tuesday recommended the council accept the low bid on the project from Clinton Engineering Co. for $2,299,859. He noted the bid was one of four “very tight bids” received, ranging from $2.3 million to $2.6 million. He advised the council that in his opinion, the city received good bids that were reflective of the market.

Foley explained the city has a project budget shortfall of $599,859. He advised the bids were higher than the design estimate, but noted much of the bid is supplies and material costs. Foley stated the costs of steel and electrical materials have risen significantly in the last two years and commented that Clinton Engineering indicated the electrical contractor would not hold the bids beyond Jan. 16 and then would want a 15 percent increase.

“Material costs have gone up significantly on these projects,” said Foley.

He stated City Administrator Gary Boden presented the council with an initial bonding presentation of $1,650,000 in September, but that estimate was now $600,000 higher and a total bond of $2,350,000 would be required. Foley advised that on a 20-year bond at an estimated 4.19 percent, the city would repay the bond at a rate of $173,724 per year. He explained that potential revenues for bond repayment of up to $204,096 annually include an estimated $73,100 per year from slip rentals of the 96 new dock and 44 north end docks, $120,996 per year in revenues from the leasing of the Amenities Building restaurant at $1.50 per square foot per month and winter storage revenues of approximately $10,000.

Foley told the council that cost savings of up to $532,380 could be achieved by making cuts to the project, such as using treated decking versus engineered wood saving $90,000, scrapping plans for a fuel dock saving $145,000 or making $40,000 in electrical changes. He also noted the city could skip building the Amenities Building deck, which would save $100,380, or forego dock roofs saving $165,000 off the total cost of the project. Foley warned that those two line items are revenue generators and would be “functional cuts.” He stated suggested cuts would cost the city in future maintenance or a loss of potential revenue.

Foley said if the city builds the marina as planned, it would be a “first-class marina” and “a jewel on the riverfront for Clinton.” He said it could be potentially the best marina around and provide tremendous value to the city.

He stated a delay in a council decision would not allow for new docks to be realized for the spring boating season.

Marina Committee member Mark Schroeder said the marina is a signature piece of the Vision Iowa project and he believes the city’s risk is small in going forward with the project; he commented the projected revenue stream estimates were very conservative. He noted the market is ripe for social boating in the area and he has no fear the new marina would be a viable revenue stream, saying he thinks the marina will do as much for the city as a new industry or business.

“I feel right now that the number that’s before you, is fair, is reasonable. I would do it in a heartbeat if I was sitting in your chair,” he said.

At-Large Councilman Ron Mallicoat asked Schroeder to advise the council what the original project budget was and Schroeder recalled the cost was in the $5 million range. Mallicoat said that he felt the project costs were under control until the project was “tampered with” and “delayed,” resulting in a cost increase.

“I’m not going to be cornered into voting yes. So that’s my answer, I will vote no,” said Mallicoat. “I feel that the council is being put in a bad position. At this point tonight, we’re between a rock and a hard place and that’s not really a good place to be. We either vote to go forward with this or the cost is going to go up. That’s not a good place to be cornered.”

Schroeder replied the city is at the point now where the difference is doing the project right or not and said that hopefully, future generations could look back and say the city did the right thing. He reiterated that revenues would be coming in to support the debt, not leaving the cost to the taxpayer.

At-Large Councilwoman Bette Oakley said she didn’t feel cornered into voting to approve the contract and stated she would find it wrong not to move forward with the project. Schroeder agreed, saying the project would result in additional revenue for the city in that visitors would come to the city via the river and spend tourism dollars.

“I don’t see where we can lose on this,” he said.

First Ward Councilman Bob Soesbe said that Vision Iowa has spurred many great improvements in Clinton, including a wonderful ballpark and improvements to the RV park and playground. He said the city probably has the best riverfront of any city along the Mississippi River and he would like to see Clinton have a first-class marina.

“In the past, I think what we’ve done in Clinton, just we haven’t set our sights high enough. We said, oh let’s cut back on this and cut back on this, so we end up with a lot of second-rate stuff and I want to see Clinton be first-class,” Soesbe said. “I’ll certainly vote yes on this.”

At-Large Councilman Mark Vulich asked what the city would do if it realized a bond repayment shortfall from less than expected revenues. Boden stated the city would backload the payment structure to allow for development of the restaurant business and noted the revenue estimates were “extraordinarily conservative.”

After the public hearing was closed, the council approved a resolution accepting the Clinton Engineering bid for the project by a vote of 6 to 1, with Mallicoat voting no.