CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-01 (CIP 301-678)
RECREATION CENTER REBUILD (2017-2018)
Project Category: A
Project Description:
On January 23, 2019, the City Council by Minute Order No. 1585 accepted the Final Recreation Center Master Plan Conceptual Design Report. On January 31, 2022, the City Council received an update that included the results of a Community Survey to validate the Community Input that had been received in the extensive community engagement that was completed, pre-pandemic, in 2017. The City Council adopted Minute Order 1832, directing staff to 1) Accept the Recreation Center and Parks System Survey results, confirming staff has satisfied the City Council’s interest in validating programming and usage assumptions; 2) Proceed with a “build-to-budget” option for the Recreation Center in an amount not-to- exceed $55 million; and 3) Proceed with utilizing $36 million from the Capital Asset Acquisition and Replacement Fund and $19 million from the General Fund Reserves for the total not-to-exceed budget of $55 million for rebuilding the Recreation Center.
At the City Council regular meeting on November 21, 2022, the City Council awarded an agreement with Group 4 Architecture, Research + Planning, Inc. (“Group 4”) for professional design, bidding, and construction support services. The design phase began in January 2023 with the award of a construction management contract going to Griffin Structures. The construction management firm’s early involvement to assist with constructability review of the design plans will help provide a seamless design to construction process.
At the regular City Council meeting on September 18, 2023, staff and Group 4 presented to City Council a full schematic design presentation which included an estimate of probable construction costs and a list of bid alternatives with cost information for City Council’s consideration. The City Council accepted the schematic design budget estimate of $63,356,000 for the Project and provided direction on additional project enhancements to be included resulting in an increase to construction estimate by $2,172,000.
In addition, the City Council approved the temporary facilities and transition plan for the Project at the regular City Council meeting on November 6, 2023, resulting in an increase to the Project budget. When accounting for this increase, the increase to the construction budget estimate with the added Project enhancements, contingency and escalation factors, the current Project budget estimate is $65,943,000.
Following the City Council meeting on September 18, 2023, which showed the schematic design, the City Council directed staff to return to an upcoming meeting to present funding options that would help address the additional funding that the Project would require to address the budget shortfall, which is $10,568,750, the difference between the Project budget appropriation of $55,374,250 and the current Project budget estimate of $65,943,000.
At the regular City Council meeting on January 16, 2024, the City Council provided direction on various strategies to address the Project budget shortfall. These strategies include a mix of revenue opportunities such as grants and development impact fees, as well as elimination and re-prioritization of other capital projects to free up funds to address the funding gap. The City Council’s action to eliminate the Bocce Court Expansion project from both the Project scope and budget reduced the Project budget by $1,009,000 resulting in the current budget shortfall of $9,559,750.
The funding sources outlined in the table below reflect the City Council actions at their regular meeting on January 16, 2024, as well as others identified by staff since the meeting.
1. Fund (301) includes funding from the Bocce Court Expansion Project (CIP 301-655) that resulted from the elimination of budget and scope from the Project, Gilead Grant Funding of $500,000, and $5,000,000 from the remaining Levee project funds which the City Council released and appropriated to the Project.
City of Foster City's FY 2024-25 Preliminary Budget
2. Transfer of $1,861,400 from the Building Maintenance Fund (505) which were funds set aside for replacement of the current Recreation Center components such as the Roof, HVAC, Flooring and Paint.
3. Park Impact Fees totaling $1,061,000 which include $560,000 authorized and appropriated by the City Council from the Gilead building at 331 Lakeside Drive, and an additional $467,000 anticipated in year two of the Project for 388 Vintage Park Drive.
The design is anticipated to be completed in the Spring of 2024. Construction is anticipated to begin in September 2024 and is estimated to take 22 months.
Estimated Project Schedule:
Design: FY 2022-2023 through FY2023-2024
Construction: FY 2024-2025 through FY2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 104 - Park-In-Lieu $745,000 $0 $0 $0 $0 $745,000
Fund 142 - Impact - Parks
Facilities $560,300 $467,000 $0 $0 $0 $1,027,300
Fund 301 - CIP - City $5,926,050 $0 $0 $0 $0 $5,926,050 Fund 505 - Building
Maintenance Fund $1,861,400 $0 $0 $0 $0 $1,861,400
Total Funding Sources $9,092,750 $467,000 $0 $0 $0 $9,559,750 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $7,906,700 $394,300 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $11,800 $0 $0 $0
Total $7,906,700 $406,100 $0 $0 $0 $1,246,950 $9,559,750 City of Foster City's FY 2024-25 Preliminary Budget