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HomeMy WebLinkAboutO-2008-3059 second amendment to agreement/Sylvan Beach Fishing Pier, increasing the Escrow Fund for pier repair and replacement c REQUEST FOR CITY COUNCIL AGENDA ITEM ApprOf)fiation Sylvan Beach Fishing Pier Rq>air Escrow Fund Agenda Date Requested: Janu Requested By Department: Parks & Recreation Acc't Number: Report: _Resolution: _Ordinance: -L Amount Budgeted: NfA Exhibits: Second Amendment to Lease Agreement Amount Requested: N/A Exhibits: Marine, Inc. Cost Estimate Bud eted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION When the City of La PortelHarris Coooty rebuilt and reopened the pier in 1995, an Escrow Food was set up using the revenues from the pier, to repair or replace the pier in the event it was damaged or destroyed again. The Escrow Fund was originally set at $60,000, plus annual ~t ofIiving increases. It was increased to $150,000 pl11S c.o.L. in the First Amendment to Lease Agreement in 1999 after the lighting and electrical system was installed. The Sylvan Beach Fishing Pier was damaged by high tides during a storm in late 2006. The 2006 storm caused damage that was repaired in the amooot of $105,580. Fooding for the Escrow Food comes from pier use revenues shared by both Harris Coooty and the City of La Porte. After discussion with Harris COlmty, the decision was made to forego distrIbution of the 2006 revenues and to place the funds in the Escrow to offset the anticipated cost of storm damage repair. So, net revenue generated in 2006 ($52,000) was added to the escrow amOlmt of $184,000 making the Escrow Flmd total approximately $230,000. Since the $105K in repairs was relatively major in relation to the amooot available for pier replacement, it was evident that the Escrow Food was ooderfunded. Staff obtained a replacement cost estimate from llfarine, Inc. for the pier at +1- $450,000. Harris County has agreed that the Escrow Food amooot needs to be increased to provide adequate funding for replacement in the future, should a storm or other disaster require it to be replaced. Staff recommends approval of the Second Amendment to Lease Agreement between the City of La Porte and Harris Coooty to accomplish the Escrow Food increase. The City/Coooty share of pier revenues generally come in at about $60,000 per year. So, fully funding the Escrow Fund at the increased amount will take approximately five years, provided there are no additional repairs needed over that time period. ~!~ ORDINAc~CE NO. 2008- 30:5'1 AN ORDINANCE APPROVING AND AUTHORIZING A SECOND AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY FOR SYLVAN BEACH FISHING PIER, ACCORDING TO THE TERMS OF THE AGREEl\'IENT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal ofthe City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place, and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereofhas been discussed, considered and formally acted upon. The City Council further ratifies, approves, and confirms such written notice and the contents and posting thereof Page 1 of2 Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AL~D APPROVED, this 14TH day of Jfu~UARY, 2008. CITY OF LA PORTE (\ ~i \0 ~t-). \ ~.~ By: Alton E. Porter, Mayor ATTEST: Lfr!tZtlltlLeX/t W Martha Gillett, City Secretary APPROVED AS TO FORM: ~7 M~~ ark T. Askins, Assistant City Attorney Page 2 of2 Exhibit #1 Second Amendment to Lease Agreement City of La Porte Harris County Sylvan Beach Fishing Pier SECOND AMENDMENT TO LEASE AGREEMENT THE STATE OF TEXAS S S COUNTY OF HARRIS S THIS SECOND AMENDMENT TO LEASE AGREEMENT, made and entered into pursuant to TEX. GOy'T CODE ANN. 9791.001 et. seq. (Vernon 2004) (the Interlocal Cooperation Act), by and between HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter sometimes called "the County," and the CITY OF LA PORTE, a municipal corporation under the laws of the State of Texas, hereinafter sometimes called "the City"; WIT N E SSE T H: WHEREAS, on or about April 12, 1994, the County and the City entered into a Lease Agreement for the construction, operation and maintenance of the fishing pier at the Sylvan Beach Park, hereinafter called "Lease Agreement"; and WHEREAS, pursuant to the Lease Agreement, the City maintains an escrow account that is to be used to pay for the repairs to and restoration of the pier in the event of damage to or destruction of the pier; and WHEREAS, the County and the City intended for the balance in the escrow account to be maintained in an amount that would produce buying power equivalent to $60,000.00 in the year 1993; and WHEREAS, after it became apparent that the cost of replacing the pier would exceed the equivalent of $60,000.00 in the year 1993, the County and the City, on or about October 6, 1998, entered into an Amendment to Lease Agreement for the purpose of increasing the balance in the escrow account to an amount that would produce buying power equivalent to $150,000.00 in the year 1998, and requiring the purchase of insurance by the City to cover any deficiency in such account; and WHEREAS, it has become apparent that the cost of replacing the pier would exceed the buying power equivalent to $150,000.00 in the year 1998; and WHEREAS, the County and the City desire to increase the balance in the escrow account to an amount that produces buying power equivalent to $450,000.00 in the year 2007; NOW, THEREFORE, the County and the City, in consideration of the mutual covenants and agreements herein contained, do mutually agree as follows: I The portion of Paragraph IV of the Lease Agreement, as amended, which reads as follows: "(a) (1) For the period commencing on April 1, 1994 and ending on August 31, 1998, City will establish an escrow account, into which City shall deposit two thirds (2/3) of all gross receipts from patrons using the pier. The purposes of this escrow account is to establish a self-insured fund for the future repairs to the pier, or for restoration of the pier in event of damage or destruction to the pier, either from natural or other causes, which repairs and restoration the City shall perform. City will continue to deposit, into the escrow account, two thirds (2/3) of all gross receipts from patrons using the pier, until the escrow account reaches a balance in an amount that produces buying power equivalent to $60,000.00 in the year 1993, said balance being hereinafter called 'the $60,000.00 equivalent'. During the term of this agreement, the $60,000.00 equivalent, as used herein, shall mean an amount that would produce buying power equivalent to $60,000.00 based on the change, if any, in the Houston, Texas, Average Consumer Price Index - All Urban Customers ("CPI-U"). The calculation of the increase, if any, is set forth in subparagraph (f) below. In the event the balance in the escrow account falls below the $60,000.00 equivalent, the City shall promptly commence depositing two-thirds (2/3) of all gross receipts into said escrow account so as to increase the balance to the $60,000.00 equivalent. After the escrow account reaches a balance of the $60,000.00 equivalent, the City shall pay to County one-third (1/3) of the gross receipts, as hereinafter defined. On or before the tenth (loth) day of January, April, July, and October, during the term of this Agreement, the City shall compute and pay to the County, without demand, at the Office of the County Treasurer, the County's one-third (1/3) portion of the 4ross receipts which are not required to be deposited by City into the escrow account, covering the immediately preceding three month period. City shall accompany each payment with a sworn statement, certifying as true and correct, the amount of gross receipts collected pursuant to this Agreement for the immediately preceding three month period. (a) (2) For the period commencing September 1, 1998 and ending March 31, 2026, City will establish an escrow account, into which City shall deposit two thirds (2/3) of all gross receipts from patrons using the pier. The purposes of this escrow account is to establish a self-insured fund for the future repairs to the pier, or for restoration of the pier in event of damage or destruction to the pier, either from natural or other causes, which repairs and restoration the City shall perform. City will continue to deposit, into the escrow account, two thirds (2/3) of all gross receipts from patrons using the pier, until the escrow account reaches a balance in an amount that produces buying power equivalent to $150,000.00 in the year 1998, said balance being hereinafter called 'the $150,000.00 equivalent'. During the term of this agreement, the $150,000.00 equivalent, as used herein, shall mean an amount that would produce buying power equivalent to $150,000.00 bases on the change, if any, in the Houston, Texas, Average Consumer Price Index - All Urban Customers ("CPI-U"). The calculation of the increase, if any, is set forth in subparagraph (f) below. In the event the balance in the escrow account falls below the $150,000.00 equivalent, the City shall promptly commence depositing two-thirds (2/3) of all gross receipts into said escrow account so as to increase the balance to the $150,000.00 equivalent. After the escrow account reaches a balance of the $150,000.00 equivalent, the City shall pay to County one-third (1/3) of the gross receipts, as hereinafter defined. On or before the tenth (1oth) day or January, April, July, and October, during the term of this Agreement, the City shall compute and pay to the County, without demand, at the Office of the County Treasurer, the County's one- third (1/3) portion of the gross receipts which are not required to be deposited by City into the escrow account, covering the immediately preceding three month period. City shall accompany each payment with a sworn statement, certifying as true and correct, the amount of gross receipts collected pursuant to this Agreement for the immediately preceding three month period." 2 is hereby amended to read as follows: "(a) (1) For the period commencing on April 1, 1994 and ending on August 31, 1998, City will establish an escrow accoll...'lt, into which City shall deposit two thirds (2/3) of all gross receipts from patrons using the pier. The purpose of this escrow account is to establish a self-insured fund for the future repairs to or restoration of the pier in event of damage or destruction to the pier, either from natural or other causes, which repairs and restoration the City shall perform. City will continue to deposit, into the escrow account, two thirds (2/3) of all gross receipts from patrons using the pier, until the escrow account reaches a balance in an amount that produces buying power equivalent to $60,000.00 in the year 1993, said balance being hereinafter called "the $60,000.00 equivalent." During the term of this agreement, the $60,000.00 equivalent, as used herein, means an amount that produces buying power equivalent to $60,000.00 based on the change, if any, in the Houston, Texas, Average Consumer Price Index - All Vrban Customers ("CPI-V"). The calculation of the increase, if any, is set forth in subparagraph (f) below. In the event the balance in the escrow account falls below the $60,000.00 equivalent, the City shall promptly commence depositing two thirds (2/3) of all gross receipts into said escrow account so as to increase the balance to the $60,000.00 equivalent. After the escrow account reaches a balance of the $60,000.00 equivalent, the City shall pay to County one third (1/3) of the gross receipts, as hereinafter defined. On or before the tenth (10th) day of January, April, July, and October during the term of this Agreement, the City shall compute and pay to the County, without demand, at the Office of the County Treasurer, the County's one-third (113) portion of the gross receipts that is not required to be deposited by City into the escrow account, covering the immediately preceding three-month period. City shall accompany each payment with a sworn statement, certifying as true and correct, the amount of gross receipts collected pursuant to this Agreement for the immediately preceding three-month period. (a) (2) For the period commencing September 1, 1998 and ending December 31, 2007, City will establish an escrow account, into which City shall deposit two thirds (2/3) of all gross receipts from patrons using the pier. The purpose of this escrow account is to establish a self-insured fund for the fuhlre repairs to or restoration of the pier in event of damage or destruction to the pier, either from natural or other causes, which repairs and restoration the City shall perform. City will continue to deposit, into the escrow account, two thirds (2/3) of all gross receipts from patrons using the pier, until the escrow account reaches a balance in an amount that produces buying power equivalent to $150,000.00 in the year 1998, said balance being hereinafter called "the $150,000.00 equivalent." During the term of this agreement, the $150,000.00 equivalent, as used herein, means an amount that produces buying power equivalent to $150,000.00 based on the change, if any, in the Houston, Texas, Average Consumer Price Index - All Urban Customers ("CPI-V"). The calculation of the increase, if any, is set forth in subparagraph (f) below. In the event the balance in the escrow account falls below the $150,000.00 equivalent, the City shall promptly commence depositing two-thirds (2/3) of all gross receipts into said escrow account so as to increase the balance to the $150,000.00 equivalent. After the escrow account reaches a balance of the $150,000.00 equivalent, the City shall pay to County one third (1/3) of the gross receipts, as hereinafter defined. On or before the tenth (loth) day of January, April, July, and October during the term of this Agreement, the City shall compute and pay to the County, without demand, at the Office of the County Treasurer, the County's one-third (1/3) portion of the gross receipts that is not 3 required to be deposited by City into the escrow account, covering the immediately preceding three-month period. City shall accompany each payment with a sworn statement, certifying as true and correct, the amount of gross receipts collected pursuant to this Agreement for the immediately preceding three-month period. (a) (3) For the period commencing January 1, 2008 and ending March 31, 2026, City will establish an escrow account, into which City shall deposit two thirds (2/3) of all gross receipts from patrons using the pier. The purposes of this escrow account is to establish a self-insured fund for the future repairs to or restoration of the pier in event of damage or destruction to the pier, either from natural or other causes, which repairs and restoration the City shall perform. City will continue to deposit, into the escrow account, two thirds (2/3) of all gross receipts from patrons using the pier, until the escrow account reaches a balance in an amount that produces buying power equivalent to $450,000.00 in the year 2007, said balance being hereinafter called 'the $450,000.00 equivalent'. During the term of this agreement, the $450,000,00 equivalent, as used herein, means an amount that produces buying power equivalent to $450,000.00 based on the change, if any, in the Houston, Texas, Average Consumer Price Index - All Urban Customers ("CPI-U"). The calculation of the increase, if any, is set forth in subparagraph (f) below. In the event the balance in the escrow account falls below the $450,000.00 equivalent, the City shall promptly commence depositing two thirds (2/3) of all gross receipts into said escrow account so as to increase the balance to the $450,000.00 equivalent. After the escrow account reaches a balance of the $450,000.00 equivalent, the City shall pay to County one third (1/3) of the gross receipts, as hereinafter defined. On or before the tenth (10th) day of January, April, July, and October during the term of this Agreement, the City shall compute and pay to the County, without demand, at the Office of the County Treasurer, the County's one-third (1/3) portion of the gross receipts that is not required to be deposited by City into the escrow account, covering the immediately preceding three-month period. City shall accompany each payment with a sworn statement, certifying as true and correct, the amount of gross receipts collected pursuant to this Agreement for the immediately preceding three-month period." II The portion of Subparagraph (f) of Paragraph IV of the Lease Agreement, as amended, which provides as follows: "(f) (1) On each of the first four anniversary dates of this agreement, the $60,000.00 equivalent will be adjusted by multiplying $60,000.00 by a fraction, the numerator of which is the CPI-U for the immediately preceding calendar year, and the denominator of which is the CPI-U for the year 1993. The resulting number shall be the $60,000.00 equivalent for the year commencing on said anniversary dates. In the event the Consumer Price Index is discontinued, the Consumer Price Index shall thereafter mean such index of prices published by the U.S. Government as most nearly approximates the Consumer Price Index now published. (f) (2) On the 5th through and including the 31 st anniversary dates of this agreement, the $150,000.00 equivalent will be adjusted by multiplying $150,000.00 by a fraction, the numerator of which is the CPI-U for the immediately preceding calendar year, and the denominator of which is the CPI-U ,1 -t for the year 1998. The resulting number shall be the $150,000.00 equivalent for the year commencing on said anniversary dates. In the event the Consumer Price Index is discontinued, the Consumer Price Index shall thereafter mean such index of prices published by the U.S. Government as most nearly approximates the Consumer Price Index now published." is hereby amended to read as follows: "(f) (1) On each of the first four anniversary dates of this agreement, the $60,000.00 equivalent will be adjusted by multiplying $60,000.00 by a fraction, the numerator of which is the CPI-U for the immediately preceding calendar year, and the denominator of which is the CPI-U for the year 1993. The resulting number shall be the $60,000.00 equivalent for the year commencing on said anniversary dates. In the event the Consumer Price Index is discontinued, the Consumer Price Index shall thereafter mean such index of prices published by the U.S. Government as most nearly approximates the Consumer Price Index now published. (f) (2) On the 5th through and induding the 13th anniversary dates of this agreement, the $150,000,00 equivalent will be adjusted by multiplying $150,000.00 by a fraction, the numerator of which is the CPI-U for the immediately preceding calendar year, and the denominator of which is the CPI-U for the year 1998. The resulting number shall be the $150,000.00 equivalent for the year commencing on said anniversary dates. In the event the Consumer Price Index is discontinued, the Consumer Price Index shall thereafter mean such index of prices published by the U.S. Government as most nearly approximates the Consumer Price Index now published. (f) (3) On the 14th through and including the 31 st anniversary dates of this agreement, the $450,000.00 equivalent will be adjusted by multiplying $450,000.00 by a fraction, the numerator of which is the CPI-U for the immediately preceding calendar year, and the denominator of which is the CPI-U for the year 2007. The resulting number shall be the $450,000.00 equivalent for the year commencing on said anniversary dates. In the event the Consumer Price Index is discontinued, the Consumer Price Index shall thereafter mean such index of prices published by the U.S. Government as most nearly approximates the Consumer Price Index now published." III The portion of Paragraph XIII of the Lease Agreement, as amended, which reads as follows: "F or the period commencing on April 1, 1994 and ending on August 31, 1998, in which the balance of funds in the escrow account is an amount less than the $60,000.00 equivalent, the City shall also maintain fire and extended coverage insurance in an amount sufficient to cover the cost of materials and labor to rebuild the pier in the event of damage or destruction of same, either from natural or other causes. For the period commencing September 1, 1998 and ending March 31, 2026, in which the balance of funds in the escrow account is an amount less than the $150,000,00 equivalent, the City shall also maintain fire and extended coverage insurance in an amount sufficient to provide, when added to the balance in the escrow account, a total of the $150,000,00 equivalent, for the 5 cost of materials and labor to rebuild the pier in the event of damage or destruction of same, either from natural or other causes." is hereby amended to read as follows: "F or the period commencing on April 1, 1994 and ending on August 31, 1998, in which the balance of funds in the escrow account is an amount less than the $60,000.00 equivalent, the City shall also maintain fire and extended coverage insurance in an amount sufficient to cover the cost of materials and labor to rebuild the pier in the event of damage or destruction of same, either from natural or other causes. For the period commencing September 1, 1998 and ending December 31, 2007, in which the balance of funds in the escrow account is an amount less than the $150,000.00 equivalent, the City shall also maintain fire and extended coverage insurance in an amount sufficient to provide, when added to the balance in the escrow account, a total of the $150,000.00 equivalent, for the cost of materials and labor to rebuild the pier in the event of damage or destruction of same, either from natural or other causes. For the period commencing January 1, 2008 and ending March 31, 2026, in which the balance of funds in the escrow account is an amount less than the $450,000.00 equivalent, the City shall also maintain fire and extended coverage insurance in an amount sufficient to provide, when added to the balance in the escrow account, a total of the $450,000.00 equivalent, for the cost of materials and labor to rebuild the pier in the event of damage or destruction of same, either from natural or other causes. " IV All other terms and provision of the Lease Agreement, as amended, remain in full force and effect as originally written. EXECUTED this I t.fJI- day of ;]1rVoJ ~ 200(. APPROVED AS TO FORM: MIKE STAFFORD ~;~ . WILLIAM R. BRUYERE Senior Assistant County Attorney I/LAPORTE2 07RPD0252 HARRIS COUNTY ~..... By ED EMMETT, County Judge CITY OF LA PORTE (\. .~ V-L~ 0., \ lr~/ TON E. PORTER, Mayor ATTEST: vm~ MARTHA 01 LETT, ity Secretary cf ~TE~ -v.':~(2)q,rE S~ 0, Illt.".l!'il C.itY Manager , ' /', Ii Ilf Af~/,n()lS $ (J:'/f/V' 1..:>0 t C/.J .; APPROVED AS TO FORM: K 6 THE STATE OF TEXAS ~ COUNTY OF HARRIS ~ The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the day of 2007, with the following members present, to-wit: Ed Emmett El Franco Lee Sylvia R. Garcia Steve Radack Jerry Eversole County Judge Commissioner, Precinct No.1 Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: constituting a quorum, when among other business, the following was transacted: ORDER AUTHORIZING EXECUTION OF SECOND AMENDMENT TO LEASE AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE TO INCREASE THE SYLVAN BEACH PARK PUBLIC FISHING PIER ESCROW ACCOUNT BALANCE Commissioner motion that the same be adopted. motion for adoption of the order. prevailed by the following vote: introduced an order and made a Commissioner seconded the The motion, carrying with it the adoption of the order, Yes No Abstain Judge Emmett 0 0 0 Comm. Lee 0 0 n LJ Comm. Garcia 0 0 0 Comm. Radack 0 0 0 Comm. Eversole 0 0 0 The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: WHEREAS, on or about April 12, 1994, Harris County ("County") and the City of La Porte ("City") entered into a Lease Agreement for the construction, operation and maintenance of the fishing pier at the Sylvan Beach Park, hereinafter called "Lease Agreement"; and WHEREAS, pursuant to the Lease Agreement, the City maintains an escrow account that is to be used to pay for the repairs to and restoration of the pier in the event of damage or destruction to the pier; and WHEREAS, the County and the City intended for the balance in the escrow account to be maintained in an amount that would produce buying power equivalent to $60,000.00 in the year 1993; and WHEREAS, after it became apparent that the cost of replacing the pier would exceed the equivalent of $60,000.00 in the year 1993, the County and the City, on or about October 6, 1998, entered into an Amendment to Lease Agreement for the purpose of increasing the balance in the escrow account to an amount that would produce buying power equivalent to $150,000.00 in the year 1998, and requiring the purchase of insurance by the City to cover any deficiency in such account; and WHEREAS, it has become apparent that the cost of replacing the pier would exceed the buying power equivalent to $150,000.00 in the year 1998; and WHEREAS, the County and the City desire to increase the balance in the escrow account to an amount that produces buying power equivalent to $450,000.00 in the year 2007; NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: Section 1: The recitals set forth in this order are true and correct. Section 2: County Judge Ed Emmett is hereby authorized to execute for and on behalf of Harris County, a Second Amendment to Lease Agreement by and between Harris County and the City of La Porte to increase the Sylvan Beach Park public fishing pier escrow account balance, said Agreement being incorporated herein by reference for all purposes as though fully set forth word for word. 2 Exhibit #2 Cost Estimate for Pier Replacement Marine, Inc. " FRQrf : /~ c/ From unknown Page 2/2 Date: 6/20/20079:18:53 AM F8X NO. : Jun. 20 2007 09:17AM P2 . if L~ MARINE, INC. ,. - GENERAL CONTRACTOR ~ ;~ ' J 1Y ~~~ I}, 402 BAY AVENUE S. - KEMAH, TEXAS 77565 - PHONE (281) 334~1655 - FAX (281) 334-5306 (. I. June 20, 2007 Steven Barr Parks & Recreation Department City of La Porte Per your request: Cost estimate to rebuild the existing fishing pier at Sylvan Beach $ 262.00 Per Ft. Add $36.00 per foot to use stainless steel fasteners. There could be additional cost In debris removal. Marine, Inc. Cost Estimate for Pier Replacement, Sylvan Beach Pier June 20, 2007 Cost per foot for pier rebuild Stainless steel fasteners, per foot Total estimated cost per linear foot $262 $36 $298 Length in feet, of Sylvan Beach Fishing Pier, including T -head 1,150 ft. Estimated cost, materials and labor, to replace Sylvan Beach Fishing Pier $342,700 Estimate to remove existing pier, pilings, per Jim Flanagan, Marine, Inc.; incidental costs. $100,000 Total Cost, including removal of old pier and debris $442,700