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Newark shifts $80,000 park grant to city funds after prevailing-wage finding raised costs
Summary
Deputy Parks Director Jeff Martindale told council that a new Department of Labor interpretation would have made an $80,000 ORPT grant uneconomical because prevailing-wage requirements would apply to nearly the whole project; council approved using cash-in-lieu park funds to replace the grant at 6-0.
The Newark City Council on May 12 approved a capital-budget amendment to replace $80,000 in Outdoor Recreation Parks and Trails (ORPT) grant funds with city cash-in-lieu parkland funds after a Department of Labor determination expanded prevailing-wage coverage for park projects.
Deputy Director of Parks and Recreation Jeff Martindale told council that a recent labor-agency determination altered how prevailing wages would apply to park projects statewide and would effectively impose more than $150,000 in additional labor costs if the city accepted the $80,000 ORPT grant for two ongoing park projects at Dickey Park and George Reid Park. Martindale said the grant administrators were caught off guard and staff will continue appeals and discussions with the grant program, but recommended the city not accept funds that would increase total project labor costs.
Martindale proposed using the city’s cash-in-lieu of parkland account to cover the $80,000 shortfall so the work could continue without changing the parks’ plans. Council members asked clarifying questions about the duration of any administrative remedy and were told the Department of Labor’s initial ruling escalated the prevailing-wage threshold for new construction versus renovation; an amended determination then clarified thresholds in ways that expanded coverage for projects located within named parks. Martindale said staff and ORPT administrators are pursuing channels to overturn or better understand the decision.
Councilmember questions were limited; one member said the issue was confusing for residents but thanked staff for identifying the fiscal impact. The council then voted 6-0 to amend the 2025–2029 capital improvement program (CIPs K2202 and K2305) to use $80,000 from cash-in-lieu of parkland funds in place of the ORPT grant, with staff to pursue appeals and return with updates as needed.
Martindale and staff emphasized that the amendment does not change the parks’ design or scope but reflects a bookkeeping and funding-source substitution because of the labor-cost determination. The city will continue to pursue resolution with the Department of Labor and ORPT administrators, and staff said if the state’s position changes the city would seek reimbursement or reallocate funds accordingly.
The action was procedural and funded from existing city cash-in-lieu parkland reserves; no new tax or bond authorization was required at this meeting.
