City of Chelan J.A. Brennan Associates, PLLC in association with Reid Middleton | Coast & Harbor Engineering The Watershed Company | Shannon & Wilson Nelson Geotechnical Engineer | Northwest Archaeological Associates Don Morse Park Phase 1 – Project Progress Update Shoreline Restoration & Beach Enhancement City Council Presentation, February 9, 2012 (Bid Results) - Improving a treasured shoreline resource

City of Chelan Phase 1 Budget Analysis The Phase 1 implementation budget is as follows: RCO Grant Marina (BFP) Funding:$1,000,000 City Match: $1,200,000 Total Implementation budget Marina (BFP) Grant: $2,200,000 RCO Grant Upland Beach (WWRP) Funding:$500,000 City Match: $500,000 Total Implementation budget Upland Beach (WWRP) Grant: $1,000,000 Total Implementation budget Phase 1: $3,200,000 Design Fee: Permitting, Design (20% of budget):$640,000 Total Construction Implementation Budget: $2,560,000 Construction Budget Calculation: Total Implementation Budget: $2,560,000 Construction Contingency 10%: $256,000 Original Maximum Allowable Construction Cost (MACC)$2,304,000 (w/ sales tax) Subtract pre-purchase of pea gravel $121,000 with tax. $2,304,000 minus $121,000 = New MACC $2,183,000.

City of Chelan Phase 1 Project –Bid Item 1 (base bid) Cost = $1,998,044

City of Chelan Phase 1 Project – Bid items, 1, 2, &5 Cost = +/- $ 2,114,760

City of Chelan Phase 1 Project – Bid item 2 Gravel Beach

City of Chelan Phase 1 Project – Bid Items 1, 3, & 5 Cost = $2,297,233

City of Chelan Phase 1 Project – Bid Items 1, 4, &5 (Dream Plan) (Connected beach from Natatorium to Marina Breakwater) Cost = $2,355,066

City of Chelan Phase 1 Project - Dream Plan Section

City of Chelan Phase 1 Project - Dream Plan Cost Choices 1.Fixes failing wall 2.Sand in the backshore 3.Natatorium improvements 4.Cover over wall 5.Project exceeds funded area 6.Project costs higher 7.Improved revenue 8.Enhanced recreation

City of Chelan Don Morse Park – Lowest Bids Bid Alternate Options Base Bid-Item #1OPTION A Bid Item #1, #2, #5 1 ½” rock beach in front of portion of wall & Natatorium OPTION B Bid Item #1,#3,#5 Extended pea gravel beach +/- 550’ & Natatorium OPTION C Bid Item #1,#4,#5 Dream Plan & Natatorium OPTION D Bid Item #1, #5 Base bid & Natatorium Lowest Bid$1,998,044$2,114,360$2,296,833$2,355,066 $2,005,071 Pea Gravel Bid$121,000 Total Construction Cost$2,119,044$2,235,360$2,417,833$2,476,066 $2,126,071 Construction Budget (MACC) $2,304,000 Extra Budget Available (with 10% contingency) $184,956$68,640-$113,833-$172,066 $177,929 Remaining of Total Construction Budget (before subtracting contingency) $440,956$324,640$142,167$84,334 $433,929 Construction Contingency Available 22%15%6.2%3.6% 26%

City of Chelan Phase 1 Budget – (from last council meeting) The Phase 1 implementation budget is as follows: RCO Grant Marina (BFP) Funding:$1,000,000 City Match: $1,200,000 Total Implementation budget Marina (BFP) Grant: $2,200,000 RCO Grant Upland Beach (WWRP) Funding:$500,000 City Match: $500,000 Total Implementation budget Upland Beach (WWRP) Grant: $1,000,000 Total Implementation budget Phase 1: $3,200,000 Design Fee: Permitting, Design (20% of budget):$640,000 Total Construction Implementation Budget: $2,560,000 Construction Budget Calculation: Total Implementation Budget: $2,560,000 Construction Contingency 10%: $256,000 Maximum Allowable Construction Cost (MACC)$2,304,000 Base BidDream Plan Total Engineers estimate for Alternatives $2,304,000$3,240,442 Construction Budget (MACC)$2,304,000 Additional funding needed for additional project elements 0$ 936, Percent extreme low bid scenario* Not guaranteed +/- $1,843,200+/- $2,592,355 Additional funding needed (extreme low bid scenario) +/- $288,355

City of Chelan Phase 1 – Beach Maintenance Costs The Phase 1 implementation budget is as follows: RCO Grant Marina (BFP) Funding:$1,000,000 City Match: $1,200,000 Total Implementation budget Marina (BFP) Grant: $2,200,000 RCO Grant Upland Beach (WWRP) Funding:$500,000 City Match: $500,000 Total Implementation budget Upland Beach (WWRP) Grant: $1,000,000 Total Implementation budget Phase 1: $3,200,000 Design Fee: Permitting, Design (20% of budget):$640,000 Total Construction Implementation Budget: $2,560,000 Construction Budget Calculation: Total Implementation Budget: $2,560,000 Construction Contingency 10%: $256,000 Maximum Allowable Construction Cost (MACC)$2,304,000 Base BidOption C Dream Plan Options A&B (Approxim ate) Material loss annually 5 Cubic yards/ year80 Cubic yards/ year 95 Cubic yards/ year Annual Maintenance Costs (Depends on re-nourishment cycle and amount placed per cycle) +/- $2635/ year +/- $4216/ year +/-$5006/ year

City of Chelan Factors to Consider Tourism Infrastructure Potential revenue increase from marina, boat launch, parking, and campground Potential tax revenue from economic development Permits will expire Construction costs are low now Desired length of time to complete project Safety Issues Cost to City and taxpayers