AGENDA PARKS AND RECREATION COMMISSION MILLER ACTIVITY COMPLEX (MAC) WEDNESDAY, JANUARY 21, 2015

NOTE: THIS MEETING IS OPEN TO THE PUBLIC. THREE OR MORE COUNCIL MEMBERS MAY ALSO ATTEND THIS MEETING, DURING WHICH THE ITEMS LISTED HEREIN WILL BE DISCUSSED. TIMES SHOWN ARE APPROXIMATE AND MAY BE ADJUSTED DUE TO CHANGES TO THE AGENDA.

5:00 P.M. I. CALL TO ORDER ADDITIONS/DELETIONS/MODIFICATIONS TO THE AGENDA

5:05 P.M. II. PUBLIC COMMENT DURING THIS TIME, MEMBERS OF THE PUBLIC ARE INVITED TO ADDRESS THE COMMISSION AND STAFF ON ITEMS THAT ARE NOT ON THE AGENDA. COMMENTS SHOULD BE LIMITED TO NO MORE THAN FOUR (4) MINUTES.

5:10 P.M. III. MINUTES OF THE REGULAR MEETING REVIEW/APPROVAL OF THE DECEMBER 17, 2014 MEETING MINUTES

5:15 P.M. IV. PROPOSED 2015 COMMISSION CALENDAR – JOINT MEETING WITH DOUGLAS COUNTY PARKS ADVISORY BOARD, SEPT. 14, 2015 PRESENTED BY JENNIFER MARTIN, BUSINESS SUPPORT SUPERVISOR

5:20 P.M. V. MILLER ACTIVITY COMPLEX (MAC) OPERATIONAL UPDATE PRESENTED BY EILEEN MATHESON, RECREATION MANAGER

5:30 P.M. VI. UPDATE ON PHILIP S. MILLER PARK PHASE TWO PRESENTED BY JEFF SMULLEN, PARK PLANNING AND CONSTRUCTION MANAGER

6:15 P.M. VII. UPDATE FROM TAG REPRESENTATIVE GABRIEL QUINTANA

6:20 P.M. VIII. PARKS AND RECREATION DIRECTOR COMMENTS ROB HANNA, DIRECTOR

6:25 P.M. IX. COMMISSION COMMENTS

6:30 P.M. X. ADJOURNMENT

NEXT MEETING: WEDNESDAY, FEBRUARY 18, 2015 MILLER ACTIVITY COMPLEX (MAC) 1375 W. PLUM CREEK PARKWAY CASTLE ROCK, CO 80104 MEETING STARTS AT 5:00 P.M.

MINUTES OF THE REGULAR MEETING Castle Rock Parks And Recreation Commission December 17, 2014

CALL TO ORDER: The meeting of the Parks and Recreation Commission was held on December 17, 2014 at Red Hawk Ridge Golf Course, Castle Rock, CO. Tim Miller called the meeting to order at approximately 5:00 p.m.

COMMISSION MEMBERS: Tim Miller (Chair) Kevin Cochran (absent) Aaron Nagel (Vice Chair) Rebecca Erickson Christi Hilgenkamp (absent) Michael Brumbaugh Gabriel Quintana (absent)

COUNCIL LIAISONS: Mark Heath Jennifer Green

STAFF MEMBERS: Rob Hanna Jennifer Martin Jeff Brauer Eileen Matheson Jeff Smullen Curt Williams (absent)

I. ADDITIONS/DELETIONS/MODIFICATIONS TO THE AGENDA

II. PUBLIC COMMENT

None.

III. MINUTES OF THE REGULAR MEETING (REVIEW / APPROVAL)

ACTION: Approve the minutes from the November 19, 2014 joint meeting with Douglas County Parks, Trails and Building Grounds Board as transcribed. MOTION: Aaron Nagel SECOND: Michael Brumbaugh Motion passes 4-0

Motion passes 6-0

IV. COMMENTS FROM THE DIRECTOR Presented by Rob Hanna, Director of Parks and Recreation

The next Parks and Recreation Commission meeting will be held on Wed., Jan. 7 instead of Wed., Jan 21 beginning at 5 p.m. ay the MAC. The meeting date has

- 1 - MINUTES OF THE REGULAR MEETING Castle Rock Parks And Recreation Commission December 17, 2014

been moved to accommodate the timing of a recommendation from staff to be presented to the Commission on the Philip S. Miller Park Phase 2 bid process prior to being presented to Town Council on January 27, 2015.

V. COMMISSION COMMENTS

None.

VI. ADJOURNMENT

- 2 -

Meeting Date: Wednesday, January 21, 2015

AGENDA MEMORANDUM

To: Parks and Recreation Commission Members and Staff

From: Jennifer Martin, Business Support Supervisor

Thru: Rob C. Hanna, Director of Parks and Recreation Jeff Brauer, Assistant Director

Title: Proposed 2015 Commission Calendar - Joint Meeting with Douglas County Parks Advisory Board on Monday, September 14, 2015 and cancel the September 16, 2015 meeting

Executive Summary

Douglas County Parks Advisory Board has requested the presence of the Town of Castle Rock Parks and Recreation Commission and staff to join them for a joint meeting on Monday, September 14, 2015 (Highland Heritage Regional Park – 9651 S. Quebec Street, Littleton, CO 80130; subject to change). The County will provide dinner at 5:00 p.m. and the meeting will begin at 5:30 p.m.

The purpose of the meeting is to discuss projects that both The Town of Castle Rock and Douglas County are working on.

Parks and Recreation Commission will have the option of canceling the September 16, 2015 meeting in lieu of the September 14 joint meeting or have the option to have both meetings in September.

Proposed Motion

I move to approve the Joint Meeting with Douglas County Parks Advisory Board on Monday, September 14, 2015 and to cancel the regularly scheduled Parks and Recreation Commission on Wednesday, September 16, 2015.

Or

I move to approve the Joint Meeting with Douglas County Parks Advisory Board on Monday, September 14, 2015 and to confirm the regularly scheduled Parks and Recreation Commission meeting on Wednesday, September 16, 2015.

Meeting Date: January 21, 2015

MEMORANDUM

To: Parks and Recreation Commission Members and Staff

From: Rob Hanna, Director of Parks and Recreation Eileen Matheson, Recreation Manager

Title: Miller Activity Complex (MAC) Operational Update

Executive Summary

The purpose of this agenda memo is to provide Commission l with an update and analysis for the Miller Activity Complex (MAC) from its opening date on October 26, 2014 through December 31, 2014. While it has only been a little over two months the MAC has been open, it is still important to evaluate operational efficiencies to help with future decisions and outcomes.

In an attempt to provide high quality programming and amenities to the community, staff recognizes the importance of reviewing and analyzing data from the first few months of operation in regards to such areas as revenue, attendance, usage patterns, expenses, partnerships, and programming. In addition, challenges that have been encountered and future options have been addressed as well.

The MAC has been extremely successful with 18,963 daily admission visits in just over two months. The majority of the users have been youth; not only enjoying the amenities such as the trampoline and climbing sturcture but also participating in programs. Although there has been many visitors at the MAC, this has not negatively impacted the admissions to the Recreation Center to date. In fact, when comparing the same timeframe of attendace at the Recreation Center from 2013 and 2014, the total number of visits increased in 2014 even with the opening of the MAC.

The revenue thus far has exceeded expectations with the total revenue for all admissions, programs and rentals being $281,113. The trampoline and play structure have been the most popular amenity and the fields are utilized most of the day, especially on nights and weekends. Other extremely popular programs include birthday parties and fitness classes. In analyzing the operational effeciencies, some challenges have emerged such as staffing, equipment maintenance and pricing structures, which is being closely monitored and addressed when needed.

Overall, staff is encouraged with the postive feedback it has received on the operation of the MAC and the success that has been apparent thus far.

Discussion

Overall, from an operational standpoint and based on the feedback received from the community, the success of the MAC has been evident. While staff recognizes that the data is only based on a few months of being in operation and understands that there is always a “newness factor” to any new facility, it is encouraging to see the high revenue and attendance numbers, partnerships formed, etc., and to hear the positive comments.

Attendance Staff analyzed attendance numbers in regards to total number of visits for the MAC from its opening date on October 26 through December 31. In addtion, attendance numbers for the Recreation Center were also compared for the same time period in 2013 and 2014 to determine what the impact of the opening of the MAC had on the Recreation Center.

October 26 - December 31, 2014 MAC Attendance Breakdown

Senior 2% 245

Adult 36% 6,909 Youth 62% 11,809 Total Attendance 18,963

2014 Recreation Center 2013 Recreation Center Attendance Breakdown Attendance Breakdown

Youth Youth Senior 5,515 Senior 6,129 11,740 12% 9,827 14% 27% 23%

Adult Adult 27,041 Total 27,201 Total 63% Attendance 61% Attendance 44,456 42,997

The comparison of the MAC attendance versus the Recreation Center in 2013 and 2014 and breakdown of percentages indicates that the highest usage for the MAC is with youth (62%) and for the Recreation Center; it is adults (61%) and seniors (27%). One of the main reasons for this is due to the fact that the majority of amenities within the MAC are geared toward youth (i.e. trampolines, play structure, turf fields).

The numbers also indicate that the overall attendance at the Recreation Center was not negatively impacted by the opening of the MAC. In fact, the total attendance of daily admission in 2014 of the Recreation Center was 44,456 visits, which is an increase compared to the 2013 daily admission with 42,997 visits. The increase was seen in senior and adult visits as they went up slightly while the youth was only down 1%. This can be attributed to the fact that many individuals still utilize the Recreation Center for amenities not included in the MAC, such as, the fitness equipment and studio, gymnasium, racquetball courts, hot tub and steam room. In addition, the majority of our Silver Sneakers classes are still held at the Recreation Center.

In reviewing attendance, staff also looked at usage patterns for the MAC. The highest usage times for the facility are between 4:00 p.m. to 7:00 p.m. on weekdays and between 10:00 a.m. and 8:00 p.m. on weekends. On the weekends, the elementary school age children attend earlier in the day, while the middle school children and teenagers begin showing up around 2:00 p.m. and continue to participate until the facility closes. In addition, while school is in session, the MAC is used exclusively by toddler age children up to kindergartners. These children are drop-in admission along with our swim lessons and toddler gymnastic programs.

Revenue and Expenses

Revenue Prior to the opening of the MAC, staff researched similar facilities, compared data and made estimations on revenue that would be obtained in the first few months of operation. The below information compares the revenue budgeted amount versus the actual revenue obtained.

Description Actual Revenue Revenue Budget Pro Shop Sales $ 3,62.37 $ 540.00 Vending $ 1,200.00 $ 750.00 Daily Admissions $ 98,146.30 $ 25,000.00 Passes $ 46,731.91 $ 17,000.00 Facility Rental $ 51,039.38 $ 19,800.00 Birthday Party $ 25,905.48 $ 3,000.00 Youth Athletics $ 30,036.00 $ 3,500.00 Adult Athletics $ 20,449.11 $ 2,000.00 Individual training and Lessons $ 7,243.00 $ 5,000.00

Total $ 281,113.55 $ 76,750.00

The actual revenue clearly exceeds the revenue budgeted, indicating how popular and successful the MAC has been in all areas. The total actual revenue ($281,113) is $204,000 more than what was budgeted ($76,750) for the first few months of operation.

In looking at these numbers, there are a few areas that should be noted. The daily admission revenue includes visits to the facility in addition to the payment of individuals to use the trampoline area. The play structure and trampolines are the most popular amenities for drop in admissions. There were over 6,500 trampoline admissions for a total revenue of $43,000. The trampoline revenue was 44% of the total daily admission revenue.

The punch cards and passes have generated over $46,000 in revenue in the first two months. The majority of these purchases are for punch cards with 407 punch card purchases compared to 49 passes.

The facility rental revenue comes from the rental of the golf simulator, batting cages, room rentals, pool rental and field rentals. The majority of the revenue can be attributed to field rentals, which accounted for $33,695 of this line item. The limited structured programming on the fields for November and December allowed many teams to take advantage of our availability for their practices. The main sport utilizing the fields is soccer but and /softball teams have also booked practice times.

Due to the popularity of the turf, the batting cages have unfortunately been rarely available for public use. The revenue generated by the batting cages has been minimal. However, there are field rentals by baseball teams that utilized the cages as part of their rental.

On the other hand, the golf simulator has been a popular amenity at the MAC with 154 users since the grand opening and has provided a revenue of $3,089. In addition, the golf league had 30 participants between junior, high school, women’s and men’s leagues. Staff has received many good comments on the simulator and the leagues have really assisted in showing off the amenity to patrons.

One of the most popular programs is birthday parties. There are several types of themed birthday parties available to the public. Among these are leisure pool with climbing structure, trampoline, jumping castle, dodge ball, sports theme turf party, batting cages, and a variety of various combinations. The most popular party is the leisure pool/climbing structure party, with the themed parties being used by older children. We hosted155 birthday parties and in just over 2 months had a revenue of close to $26,000. The Recreation Center also hosts birthday parties, with fewer options available, and in the same time period hosted 45 parties. This is a little less than the number of parties held there during that time last year. While there was a slight decrease, the opening of the MAC did not negatively impact it enough for staff to be concerned.

Adult and youth athletics combined for just over $50,000 in revenues. Youth programs included soccer, sport camps and gymnastics. Adult programs including soccer and all of the fitness classes run in the MAC. There are several different fitness classes offered during the morning hours at the facility including TRX, boot camps and trampoline aerofit. All of these classes sold out and more classes were added to the schedule to meet the demand.

The individual training and lessons actual revenue in Aquatics is only slightly higher than budgeted. The reason for only the slight increase is that only one reduced swim lesson session was held during the timeframe being analyzed. Staff highly anticipates the revenue in this area to increase as the majority of swim lessons will be held at the MAC beginning the first of the year. Staff did recognize a benefit to the one swim lesson session that was held at the MAC, in that it allowed for less crowding at the Recreation Center pool. Staff was able to offer some drop-in lap swim times during the weekday evening prime-time hours, which is something that the public has been requesting for years. As more individuals utilize the pool at the MAC, staff is confident that this trend will continue.

Overall, the revenue of the MAC has been extremely high for the first few months of operation because it is a new facility and everyone wants to experience what there is to offer. While this is encouraging, staff recognizes that this pattern will most likely level out and not continue to exceed projected revenues at such a high percentage. As the year progresses, staff will continue to monitor revenues and evaluate how various factors such as different seasons, school breaks, new programming, etc., impact the number of visitors and revenue earned. Expenses In reviewing the revenues obtained from the operation of the MAC, it is also important to look at the expenses as well. The below information is a comparison between the budgeted expenses versus the actual expenses.

Description Actual Expense Expense Budget Personnel $ 95,578.00 $ 90,795.00 Supplies $ 60,078.00 $ 57,950.00 Services $ 13,644.00 $ 5,220.00

Total $ 169.300.00 $ 153,965.00

The total projected expenses ($153,965) is just slightly less than the actual amount spent on expenses ($169,300). This is only a difference of $15,335. This difference can be attributed to more staffing needs during peak usage times, as well as, contract labor for referees for more athletic programs being held than initially expected. Overall, staff has been diligent in all areas of determining what is needed in the facility and for programs and obtaining needed equipment, supplies and resources while staying close to budgeted expenses.

One of the main goals for the MAC was that it achieve one hundred percent cost recovery. During the first few months of operation, this has been achieved. The overall cost recovery between October 26 through December 31, 2014 exceeds the 100 percent goal with the total revenue being $281,113 and expenses being $169,300. While this is encouraging for the first three months of operation there is no expectation that this percentage will be able to be maintained at such a high rate as the year continues.

Partnerships In reviewing and analyzing information, staff recognizes that the measure of success goes beyond just attendance and revenue numbers. As the MAC is a Town facility and is becoming a community pillar, it is important to identify the relationships and partnerships that the Parks and Recreation Department has forged due to the opening of this facility. The MAC currently has working relationships with various organizations, which include:

Denver Dynamite Semi-pro soccer group, which is affiliated to the PASL (Premier Arena Soccer League), has officially named the MAC as their home location for all practices and games. They practice around 1 – 2 times per week from December – February and holds four evening games and they all take place after facility hours so that we can provide service to our youth teams.

R.O.C. – Reach. Overcome. Conquer. Sport specific training for youth and adults on an individual, group or team basis instructed by ex-NFL players. They typically train their clients on the half turf during our slower periods of 3-5 p.m. As more individuals witness this program, more clients are registering and it is continuing to grow.

Bump Soccer New activity that puts a spin on traditional soccer by wearing a large inflatable suit, which allows you to bounce off your opponent, the wall, the ground or a teammate. We offered a few drop in days to allow users to try it out and it was very popular. With the encouraging response from these days, staff is planning to provide leagues in the future.

Play It Again Sports We held a few bat demo nights for them to highlight their products. Staff is continuing to work with them to schedule additional demonstrations for various sports.

Skyhawks/My Gym/Soccer Buddies/Rugby/Fencing Academy All these groups are providing a service to our community on the fields in the format of camps and clinics. Many of them have been very successful with established waitlists to enter into the programs.

WASA – Western Alternative Sports Association They primarily promote the nontraditional sports of dodge ball, bump soccer, kickball, etc. They have a very large young adult (20-30 year olds) following that provides some competitive events with a large social aspect to target that particular market.

Staff is extremely encouraged by the partnerships that have already been established and look forward to more opportunities as programming and facility usage grows.

Challenges Although the majority of the operation of the MAC has been successful, as with any new facility there are “growing pains” and challenges that have been encountered.

The staffing of the facility has had to be adjusted to accurately accommodate what is needed. For example, due to high teen use during school breaks additional staff has been added to manage the usage throughout the facility. In addition, aquatics staffing has been a bit of a struggle, as the opening of the MAC required almost doubling our staff requirements. Determining the most efficient and effective way to manage both the MAC and Recreation Center pools, their respective work teams and hire enough qualified staff will take a little bit of time to manage.

Another challenge has been keeping the equipment in great shape for teams and patrons to use. With the amount of youth patrons in the facility they tend to wear out the equipment very quickly and it seems that on the daily walk through staff find equipment in need of repair.

One of the main areas that staff is keeping a close eye on and has made a few adjustments to is in regards to pricing. There have been both negative and positive feedback regarding the pricing structure. Prior to opening, staff analyzed data, conducted a market analysis, and analyzed cost recovery scenarios to determine the pricing structure of the MAC. The prices are in line with market and are very reasonable for the value patrons receive from utilizing the entire facility. Regardless of this fact, staff did receive comments from patrons in the first few weeks of operation that they believed the admission fee to be too high. Staff did communicate with these individuals and showed them comparisons on pricing from similar facilities. Once the majority of patrons recognized this and understood the pricing structure comparison, they felt more comfortable paying the fee for the MAC. In fact, there have been very few complaints about this issue since the first month of opening. Another reason that there has been minimal complaints regarding this is due to the fact that an additional pricing option was implemented after the first month of operation. A one-month pass was added as an option for patrons. Patrons that buy the pass end up paying less per visit then just buying a daily admission each time they enter the MAC. Individuals that recognized that they would be visiting the facility numerous times a month have opted to pay for the one-month pass and are satisfied with the savings they are receiving.

Other comments that have been expressed to the staff in regards to pricing involve the need to pay for the trampoline separately and that it is not included in the general admission price. To help resolve this issue, a trampoline 20-punch card option was incorporated into the pricing structure. This allowed customers to purchase larger quantities at a reduced price. The response has been positive and since this option was added the beginning of December; 55 trampoline punch cards have been sold.

The other major pricing change suggestion that has been made would be to not require adults to pay if they are bringing in their children to play. Patrons feel as though they should not have to pay an admission price if they are not using the amenities and are just watching their children. Staff has spent many hours analyzing this scenario and evaluating the various options. At this point, changes have not been made because this current policy is consistent with our other facilities, including the Recreation Center. For instance, if an adult visits the Recreation Center and brings their children to use the leisure pool, each member of the family is required to pay, not just the children. In keeping consistent, the same policy applies to the MAC. This policy also allows for a high cost recovery achievement rate for the MAC.

In response to all the pricing issues outlined, staff is continuing to evaluate attendance numbers, the current pricing structure and the impact it has on usage, and listen to feedback. As we continue to do this, an analysis will be made if any changes need to occur after the facility has been open at least six months to get a better gage during that timeframe.

In addition to looking at prices, staff has analyzed usage patterns and the impact on the hours of operation. For example, in the evenings and on weekends, many customers are still using the pool at 7 p.m. that were required to leave due to the pool hours ending at 7 p.m. The same has occurred for the teenagers using the facility on weekends. Because of this, staff determined that hours need to be extended during these timeframes. With only a small operational expense impact, staff was able to meet the community need and demand, by changing the hours of the MAC, which became effective on January 1, 2015.

Commission Input While there have been a few challenges and some complaints since the MAC has opened, in general it has been an overwhelming success. Staff continually gets positive feedback from patrons and organizations that utilize the facility. The biggest compliment that is received on almost a daily basis is the uniqueness of the facility in that there are so many amenities that are not available anywhere else in Castle Rock and how the facility is able to accommodate so many different age levels. While staff is able to hear from a portion of the community, we are hoping to get feedback from Commission on what they believe is both positives and negatives and what has been communicated to them from their constituents concerning the MAC. With this input and future planning, staff is confident that they will be able to make positive changes where needed and continue to be operationally efficient and effective as the year progresses.

Meeting Date: January 21, 2015

AGENDA MEMORANDUM

To: Parks and Recreation Commission Members and Staff

From: Rob Hanna, Parks and Recreation Director

Title: Discussion / Direction – Philip S. Miller Park Phase Two Bid Results and recommendations

Executive Summary

In October of 2014, the Town of Castle Rock unveiled the first phase of Philip S. Miller (PSM) Park and the Miller Activity Complex (MAC) with over 10,000 community members attending. The resounding success of this new adventure park and multi- faceted recreation facility has been instrumental in advancing community goals of providing family opportunities within Castle Rock, close to home.

Through the 2015 Budget process, Town Council and the Parks and Recreation Commission have determined through community feedback that the park should be the priority for capital construction dollars over the next three years. The Philip S. Miller Park Master Plan includes additional amenities that may be considered for phase two, including a core plaza, amphitheater and millhouse with pond. This memo defines the construction costs for each of those elements and a palette of funding options presented for Town Council consideration.

$2.5 Million was included in the 2015 budget for phase two construction. Town Council has been advised of the relatively healthy condition of the Town financial condition; therefore, the bid process was set up to include additional elements outside of the 2015 budget, which are described in the following format:

1. Base Bid (included in the 2015 budget): Core plaza, four pavilions with fireplace, restroom/ splash pad, irrigation and landscaping

2. Add Alternate No. 1 : Amphitheater and parking lot; landscaping

3. Add Alternate No. 2 : Millhouse, pond, waterfall and stream

The Master Plan items listed above were competitively bid on January 13, 2015. MW Golden Construction, a Castle Rock general contractor, provided the low responsive bid, which was separated by the major park elements described above in order to provide options for Town Council. The base bid included the core plaza area because of its prominent placement in the Park and because it is part of the program elements supported by the Parks and Recreation Capital (Impact Fee) Fund. MW Golden’s base

Page 1 bid cost for the core plaza is $2,342,805, which falls within the approved 2015 budget allocation.

MW Golden also provided the low bid for Alternate Bid #1 – Amphitheater, trail and parking - $2,284,734 and Alternate Bid #2 Millhouse and pond - $3,324,617. These costs are considered within three options presented for Parks and Recreation Commission consideration, which include:

OPTION 1 – Fund a phase of the construction that is within approved 2015 Budget:

MW Golden Base Bid $2,342,805 Fees and Contingency $ 184,805 2015 Budget $2,500,000

OPTION 2 – Fund phase two including core plaza, amphitheater, and millhouse with some value engineering and additional funding:

Base Bid – Core plaza $2,342,805 Add Alternate #1 – Amphitheater and parking $2,284,734 Add Alternate #2 – Millhouse and pond $3,324,617 Combined Project (Deduct) ($ 55,654) Value Engineering (Deduct) ($ 500,000) MW Golden Contract (Subtotal) $7,396,502

Permits, Inspections and System Development Fees $ 250,000 Construction Administration $ 200,000 Materials Testing $ 50,000 Contingency $ 500,000 Subtotal $1,000,000

Total Project Cost $8,396,502 Combined Funding $8,400,000

OPTION 3 – Fund only the portion of the project that is within the revenues received through 2017:

Base Bid – Core plaza $2,342,805 Add Alternate #1 – Amphitheater and parking $2,284,734 MW Golden Contract (Subtotal) $4,627,539

Permits, Inspections and System Development Fees $ 200,000 Construction Administration $ 100,000 Materials Testing $ 30,000 Contingency $ 300,000 Subtotal $ 630,000

Total Project Cost $5,257,539 Revenues through 2017 $6,500,000

Page 2

Of these three options, staff is recommending the approval of OPTION 2, which requires additional funding and minor design changes, which include:

1. Value engineering of $500,000 from the project; 2. Having the community center contribute $500,000 of unobligated fund balance to fund a portion of the millhouse and amphitheater; 3. Having the General Fund contribute $1,000,000 to help fund the millhouse and amphitheater and short term (<5 years) inner fund loans including $2M from Community Center Fund and $500,000 from Employee Benefits Fund and $1.5M from the General Fund. This will enable us to construct phase 2 with one contract (complete by end of 2015) and still provide for the design ($150,000) of the next park priority in 2017 and construct up to a $1.5M project in 2018.

Park staff is recommending that option 2 in the amount of $8.4 million be approved for several reasons. First, this option will minimize the duration of disturbance and impacts to park patrons. Finishing the park sooner will also bring in additional revenues to the Town through millhouse operations and will bring new special events, such as concerts to Town residents sooner. Construction cost is also a major consideration for the option 2 recommendation. Constructing improvements now protects against future inflation. In addition, the bid provided by MW Golden at $1,123,968 lower than the nearest bid is extremely competitive. Recent experience has shown that construction costs are continuing to rise and while we cannot predict whether this trend will continue, taking advantage of this price now appears to provide the best value to the Town of Castle Rock.

Notification and Outreach Efforts

The master planning for Philip S. Miller Park included extensive public outreach, including open houses, surveys, public meetings and presentations. The improvements planned for phase two were included in this process.

History of Past Town Council, Boards & Commissions, or Other Discussions

During the 2015 Budget discussion, Town Council and Parks and Recreation Commission determined Philip S. Miller Park to be the priority for park capital development over the next three years.

Discussion

Phase one of the Philip S. Miller Park project included park infrastructure, the Miller Activity Complex, trails, challenge staircase, outdoor athletic field, adventure playground and the public private partnership (P3) elements such as zip lines, aerial trekking and artificial snow park. Phase one is substantially complete with the exception of the Snowflex P3 agreement, which is ongoing and the sod and landscape material for the adventure playground, which will be installed in early spring 2015. The remaining elements included in the park master plan that have yet to be developed include, the core plaza (picnic pavilions, outdoor fireplace, restroom and equipment building, splash pad, play elements, central gathering plaza, seat wall, lighting and landscape improvements), the outdoor amphitheater (additional parking, central 12’ trail with

Page 3 emergency access to Wolfensberger Road, amphitheater with covered stage and landscaping) and the millhouse, pond and water feature.

$2.5 million available for capital funding in 2015 was budgeted for the next phase of development. This second phase was not defined by Town Council so park staff and the design team created bid packages for the three major components listed above (Core plaza, amphitheater and parking, millhouse and pond) and distributed these for competitive bidding to provide flexibility to Council for the selection of phase two improvements. In addition, finance and park staff members have been working to identify all available park and recreation related capital revenues over the next three years to create a financing package that would allow Town Council to expand phase two beyond available 2015 funds.

Bid Process

On December 3, 2014, an invitation to bid was distributed on the Rocky Mountain electronic purchasing website. A mandatory pre-bid conference was held on Tuesday, December 9, 2014 with twelve general contractors in attendance. A bid opening was scheduled for Tuesday, December 23, 2014; however, staff received calls by nearly every bidder to inform the Town that many of the subcontractors required to build the job were unresponsive and all were supportive of a time extension. As a result, the bid opening was extended until Tuesday, January 13, 2015.

On January 13, five general contractors submitted bids: MW Golden Construction $7,896,502, Rocky Mountain Excavating $9,020,470, American Civil Constructors $10,164,890, Turner Construction $10,726,000 and White Construction $10,866,700. MW Golden’s competitive bid of $7,896,502 was $1,123,968 less than the next lowest provided by Rocky Mountain Excavating. MW Golden Construction is a Castle Rock Contractor who has completed several successful projects for the Town of Castle Rock, most recently the Burgess Pool design / build project. This contractor has an excellent reputation with Owner’s, design consultants and other General Contractors. MW Golden’s bid was broken down as follows: Base bid – core plaza - $2,342,805, Alternate Bid #1 – amphitheater, trail and parking - $2,284,734, Alternate Bid #2 millhouse and pond - $3,324,617. In addition to these bid numbers, contractors were asked to provide pricing if a contract for the entire package was awarded. MW Golden’s deduct for completing the base bid and alternates was $55,654.

Potential Options for Phase 2 Construction

Staff has analyzed three potential options for Town Council consideration regarding what can be accomplished in a second phase of construction, which are listed below.

OPTION 1 – Fund a phase of the construction that is within approved 2015 Budget:

There is $2.5 million budgeted in the 2015 Budget as a placeholder of available revenues. We could award a contract for the core plaza ($2,342,805 plus fees and contingency) without any additional funds or budget amendment. Additional phases will be constructed as funds are available, i.e. amphitheater in 2016 and millhouse in 2017.

Page 4

OPTION 2 – Fund phase two including core plaza, amphitheater, and millhouse with some value engineering and through the use of additional funding:

We could construct all of phase two elements by implementing the following three recommendations: (1.) value engineering $500,000 from the project without compromising program elements, which includes items like replacing some of the Rhyolite stone with manufactured stone, eliminating a portion of the landscaping budget and redesigning the millhouse water feature by simplifying the pond or eliminating the waterfall to be more cost effective; (2.) having the Community Center Fund contribute $500,000 of unobligated fund balance to fund a portion of the millhouse and amphitheater; (3.) having the general fund contribute $1,000,000 to help fund the millhouse and amphitheater and short term (<5 years) inner fund loans including $2M from Community Center Fund and $500,000 from Employee Benefits Fund and $1.5M from the General Fund. This will enable us to construct phase two with one contract (complete by end of 2015) and still provide for the design ($150,000) of the next park priority in 2017 and construct up to $1.5M project in 2018.

OPTION 3 – Fund only the portion of the project that is within the revenues received through 2017:

We could construct the core plaza ($2,342,805) and amphitheater ($2,284,734) with associated fees and contingencies. Still able to design and construct the next park priority as listed on OPTION 2. Millhouse and pond timing would be determined as a matter of priorities and revenue; however, additional funding outside of current park and recreation capital funds or a delay in the next neighborhood park construction project would be required to complete these elements.

Staff Recommendation

Of the three options presented above, park staff is recommending that option 2 be approved. This option would allow for the completion of all major master plan elements at one time at the earliest date possible. Philip S. Miller Park is already extremely popular and use will continue to grow. Completing improvements now will minimize the duration of disturbance to park patrons and provide critical finished space and parking for special events. Finishing the park sooner will also bring in additional revenues to the Town through millhouse operations and will bring new special events, such as concerts to Town residents. Construction cost is also a major consideration for the option 2 recommendation. Constructing improvements now protects against future inflation. In addition, the bid provided by MW Golden at $1,123,968 lower than the nearest bid is extremely competitive. Recent experience has shown that construction costs are continuing to rise. While we cannot predict whether this trend will continue, taking advantage of this price now appears to provide the best value.

Proposed Motion

“I move to approve Option 2, fund phase two including core plaza, amphitheater, and millhouse with some value engineering and additional funding.“

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Attachments

Attachment A: Phase Two Bid Tabulation Attachment B: Site Renderings

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Attachment A

White MW Golden American Civil Rocky Mountain Turner Construction Construction Constructors Excavating Construction Item Description Lump Sum Price Lump Sum Price Lump Sum Price Lump Sum Price Lump Sum Price Base Bid - Core Plaza, Interactive Water Feature, Restrooms & Pavilions 1 Demolition, Temporary Controls, Traffic Control $81,700 $28,882 $36,440 $11,417 $0 2 Landscape $349,000 $280,785 $273,730 $232,741 $224,000 3 Irrigation $43,000 $49,293 $99,207 $55,076 $50,000 4 Park Architecture and Pre-Engineered Structures $747,000 $665,034 $1,303,000 $710,160 $1,068,000 5 Earthwork and Utilities $309,000 $171,740 $497,489 $212,796 $180,000 6 Interactive Water Feature $661,000 $430,883 $687,741 $481,497 $620,000 7 Playground $77,000 $80,399 $80,621 $67,732 $68,000 8 Hardscape $608,000 $350,879 $721,660 $789,250 $1,082,000 9 Site Furnishings $80,000 $48,850 $34,826 $54,581 $50,000 10 Mobilization and General Conditions $528,000 $236,060 $64,861 $283,220 $321,000 Lump Sum Price $3,483,700 $2,342,805 $3,799,575 $2,898,470 $3,663,000

Alternate Bid #1 - Amphitheater, Trail and Parking 1A Demolition, Temporary Controls, Traffic Control $51,000 $32,014 $5,275 $2,973 $0 1B Landscape $609,000 $423,623 $291,070 $323,108 $319,000 1C Irrigation $158,000 $153,520 $145,695 $170,834 $156,000 1D Amphitheater Stage Cover $331,000 $289,419 $501,135 $282,270 $342,000 1E Earthwork and Utilities $288,000 $188,684 $389,910 $250,685 $287,000 1F Hardscape $1,371,000 $1,000,027 $1,137,945 $1,662,843 $1,703,000 1G Site Furnishings $15,000 $11,654 $15,350 $13,021 $11,000 1H Mobilization and General Conditions $267,000 $185,793 $39,585 $261,080 $54,000 Lump Sum Price $3,090,000 $2,284,734 $2,525,965 $2,966,814 $2,872,000

Alternate Bid #2 - Mill House and Water Feature 2A Demolition, Temporary Controls, Traffic Control $50,000 $19,065 $1,500 $1,185 $0 2B Landscape $327,000 $256,145 $231,620 $201,334 $177,000 2C Irrigation $42,000 $43,676 $44,765 $48,801 $44,000 2D Mill House Building $1,329,000 $1,224,229 $1,953,000 $1,174,725 $1,826,000 2E Earthwork and Utilities $91,000 $94,888 $298,910 $127,265 $151,000 2F Water Feature $1,196,000 $1,133,032 $480,590 $899,880 $1,115,000 2G Hardscape $857,000 $325,912 $702,760 $482,834 $636,000 2H Mill House Pedestrian Bridge $150,000 $16,097 $57,395 $52,091 $138,000 2I Site Furnishings $36,000 $53,483 $57,640 $59,758 $52,000 2J Mobilization and General Conditions $365,000 $158,090 $35,170 $254,403 $52,000 Lump Sum Price $4,443,000 $3,324,617 $3,863,350 $3,302,276 $4,191,000 Total Base Bid and Alternates $11,016,700 $7,952,156 $10,188,890 $9,167,560 $10,726,000

Savings if Base Bid and Alternate Bid Item #1 are built concurrently $75,000 $0 $12,000 $72,395 $0 Savings if Base Bid and Alternate Bid Items #1 and #2 are built concurrently $150,000 $55,654 $24,000 $147,090 $0 Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B