PROPOSED RESOLUTION NO. R16-089 - Approve an increase of $129,043 to the reimbursement to Skye at Boynton Beach, LLC for upsizing utility lines and installing new utility lines for the 500 Ocean project per the executed Developer's Agreement, for a total reimbursement of $444,419.

A Developer’s Agreement was executed in June 2015 between the Developer, Skye at Boynton Beach, LLC, and the City of Boynton Beach for the 500 Ocean project.  As part of the Developer’s Agreement, the City agreed to reimburse Skye at Boynton Beach, LLC for upsizing certain utility lines and installing new utility lines that are adjacent to the property and were requested by the City, but were not required to provide service to the project.  The upsized lines include 12-inch and 16-inch water mains and a 12-inch reclaimed water main, and these lines will provide capacity for future redevelopment in the downtown area.

Exhibit 1 of the Developer’s Agreement contained the estimated construction cost for each improvement, along with the City’s share and Developer’s share of each cost.  The construction of the underground utilities has been completed, and Skye at Boynton Beach, LLC has submitted the actual construction costs, which have increased since the original estimate.

The City’s share of the costs increased from $315,376 to $444,419 based upon changes during construction that were required due to unforeseen conditions.  The increase in cost also includes a change to the scope of work for upsizing an existing 6-inch water main to an 8-inch main along Federal Highway.  This portion of the work was shown as the Developer’s cost in the original estimate; however, this was based on the assumed pipe material and an anticipated conflict with the adjacent stormwater piping, which did not occur during construction.  The pipeline was still upsized to provide additional future capacity, and the City’s share is based on the pipe diameter size increase and associated hydraulic flow.

The upsized water mains and reclaimed water main provide increased capacity in the downtown area, which will support future redevelopment along Federal Highway, Ocean Avenue, and Boynton Beach Boulevard.

The total requested reimbursement is $444,419.  Funding is available in Utilities.

Not approve the additional reimbursement to the Developer.