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0 DATE: September 16, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Waqas Hassan, Assistant Finance Director
Derek Schweigart, Parks and Recreation Director
DEPARTMENT: Finance
Parks and Recreation
SUBJECT: TRANSFER OF ESTIMATED EXCESS FUNDS IN THE AMOUNT OF $3,490,558 FROM THE CITY CIP FUND (FUND 301)
RECREATION CENTER REBUILD PROJECT (301-678) TO THE
CAPITAL ASSET ACQUISITION AND REPLACEMENT FUND
(FUND 326)
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing a transfer of estimated excess funds in the amount of $3,490,558 from the City CIP Fund (Fund 301), originally appropriated for the Recreation Center Rebuild Project (CIP 301- 678), to the Capital Asset Acquisition and Replacement Fund (CAAR Fund 326).
EXECUTIVE SUMMARY
On September 3, 2024, the City Council approved the award of a construction contract with BHM Construction, LLC in the total amount of $44,626,000 which includes the base bid amount of $40,647,000 plus $3,979,000 for the inclusion of six approved bid alternates. The total project cost Estimate at Completion (EAC) which consists of design, construction, construction management and inspection, contingencies, and miscellaneous costs is estimated to total $61,034,770. Based on the favorable bids received, the approved project budget in the amount of $64,525,328 appears more than adequate to cover all project costs. As a result, the City Council directed staff to transfer the estimated excess funds of $3,490,558 back to the CAAR Fund. The
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0 attached resolution formalizes the transfer of the respective funds from City CIP 301, originally appropriated for the Recreation Center Rebuild Project (CIP 301-678), to CAAR Fund 326.
BACKGROUND/ANALYSIS
Discussions related to the future of the current Recreation Center began in 2016. Given the age of the Recreation Center and infrastructure improvements needed, the City Council considered whether to invest this funding in the existing facility or to create a new, enhanced recreational facility. After an extensive outreach effort over the course of the next few years and consideration of funding options, at the regular City Council meeting on January 31, 2022, the City Council directed staff to proceed with the “build- to-budget” option for the Recreation Center Rebuild Project (Project) in an amount not- to-exceed $55 million and to proceed with utilizing $36 million funding from CAAR Fund 326 and $19 million from General Fund Reserves. On March 21, 2022, the City Council adopted Resolution No. 2022-26, authorizing the transfer and use of these funds for a total of $55.3 million for the Project.
At the regular City Council meeting on January 16, 2024, the City Council received a Project budget update and directed several actions to address the Project budget shortfall between the approved budget of $55,374,250 and the design team’s estimate of $65,943,000. Following the direction received at the January 16, 2024 City Council meeting, additional budget allocations authorized as part of the FY24-25 budget process, as of date, the total project budget for CIP 301-678 is $64,992,328, out of which $64,525,328 has already been approved by the Council and the remaining $467,000 (from future Park Facility Impact Fees) is programmed for FY 2025-26 which staff will bring forward for the Council’s consideration as part of next year’s budget process.
At the regular City Council meeting on September 3, 2024, the City Council adopted a resolution awarding a construction contract to BHM Construction, LLC for the Base bid amount of $40,647,000 plus the following Bid Alternates:
a. A1. Expanded Entry Canopy ($773,000)
b. A3. Fitness Room Operable Partition ($176,000)
c. L1a. Playcraft Playground and Rubberized Safety Surface ($513,000) d. L2. Event Terrace Glass Wind Screen ($256,000)
e. L3. Bocce Court ($1,043,000)
f. E1. Photovoltaic Panel System (PV) without energy storage ($1,218,000) The total revised estimated cost of the Project including design, construction, construction management and other ancillary costs is estimated to be $61,034,770.
Below is a chart presenting the itemized estimated cost. 4 5
0 Based on previous actions and the estimated cost of the Project, the current approved project budget is $64,525,328, resulting in a difference of $3,490,558 ($64,525,328 - $61,034,770) in excess funds that are estimated to remain unused at the end of the project. Based on Council direction received at the September 3, 2024 City Council meeting, the estimated excess funds of $3,490,558 will be transferred back to the CAAR Fund.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
Per Council’s direction, a transfer of estimated excess funds will be initiated in the amount of $3,490,558 from Fund 301, originally appropriated for CIP 301- 678, and returned to the CAAR Fund 326, resulting in the post transfer CAAR Fund balance of $8,503,765 as of date.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – Resolution
1 CONCEPT DESIGN - PUBLIC OUTREACH 242,172
2 ARCHITECTURE & ENGINEERING 6,208,207
3 SURVEYS 0
4 ENVIRONMENTAL 70,000
5 SPECIAL INSPECTION AND TESTING 871,520
6 DIRECT CONSTRUCTION COSTS WITH RECOMMENDED
ALTERNATES A1, A3, L1a, L2, L3, E1 49,088,600
7 TEMPORARY FACILITIES - SERVICES - RELOCATION 492,416
8 FIXTURES, FURNISHINGS, & EQUIPMENT (FF&E) 1,190,000
9 ELECTRONIC SYSTEMS AND SPECIAL EQUIPMENT 115,000
10 CONSTRUCTION MANAGEMENT 2,173,500
11 UTILITY COMPANY CONNECTION SERVICES AND FEES 235,000 12 CITY FEES AND ADMINISTRATION 161,142
13 CONTINGENCY 168,863
14 CATHODIC PROTECTION 18,350
TOTAL PROJECT COSTS WITH ALTERNATES $61,034,770