such as, but not limited to, the Oxnard Financing Authority and the Successor Agency to the Oxnard Redevelopment Agency).
4. The City Manager, the Chief Financial Officer, and other officers of the City are hereby authorized and directed, jointly and severally, to execute such instruments and do any and all things which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken by such officers and staff are hereby ratified and confirmed.
PASSED AND ADOPTED THIS 3rd day of April, 2018 by the following vote:
AYES:
NOES:
Councilmembers Flynn, Ramirez and MacDonald.
Councilmember Perello.
ABSENT: Councilmember Madrigal.
ABSTAIN: None.
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Tim Flynn, Mayo
APPROVED AS TO FORM:
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Stephen M. Fischer, City Attorney
630
Resolution No. 15,105
CITY OF OXNARD
DEBT MANAGEMENT POLICY
I. INTRODUCTION
The policies set forth in this Debt Management Policy ("Policy") have been developed to provide clear and comprehensive guidelines for the issuance and financial management of the debt portfolio of the City of Oxnard and its related entities (such as the City of Oxnard Financing Authority and the Successor Agency to the Former Redevelopment Agency). This policy confirms the commitment of the City Council, management, staff, and other decision makers to adhere to sound financial management practices, including full and timely repayment of borrowings, achieving the lowest possible cost of capital within prudent risk parameters. This Policy is not intended to be so restrictive that it interferes with the City of Oxnard's legitimate efforts to prudently provide public services and facilities. The Policy is also intended to comply with Government Code Section 8855(i), effective January 1, 2017.
The guidelines established by this Policy will govern the issuance and management of all debt funded for long-term capital financing and cash flow needs. The City recognizes that changes in the capital markets and other unforeseen circumstances may require exception to this Policy, upon approval by the City Council. The Policy may be amended by the City Council as it deems appropriate from time to time in the prudent management of the debt of the City. Any approval of debt by the City Council that is not consistent with this Policy shall constitute a waiver of this Policy.
As used in this Policy, "City" shall mean the City of Oxnard and/or its related entities. As used in this Policy, "debt" shall be interpreted broadly to mean bonds, notes, certificates of participation, financing leases, or other financing obligations. The use of such term in this Policy shall be solely for convenience and shall not be interpreted to characterize any such obligation as an indebtedness or debt within the meaning of any constitutional debt limitation where the substance and terms of the obligation falls within exceptions to the constitutional debt limitations. This Policy shall apply to all debt issued or sold to third party lenders or investors as well as pertaining to City internal borrowing. The Policy does not pertain to any unfunded accrued liabilities relating to employee benefit obligations including but not limited to the Public Employee's Retirement System (PERS), Other Post-Employment Benefits (OPEB) and compensated absences nor does it pertain to certain obligations related to the City's landfill closure, post-closure or corrective actions.
II. OBJECTIVES OF DEBT ISSUANCE
The purpose of the Policy is to provide a functional tool for debt management and capital planning, as well as to enhance the City's ability to manage its debt obligations in a conservative and prudent manner. In following this policy, the City shall pursue the following objectives:
1. The City shall issue debt only for capital improvements or special non-recurring expenditure projects that cannot be financed from current revenues. The City will not use debt for current operations.
2. The City shall issue debt only if it is the most cost-effective funding means available, taking into consideration cash flow needs, fund reserves, risk, and other funding alternatives.
Exhibit A
631
Resolution NO. 15,105
3. The City shall, when issuing debt, assess financial alternatives to include new and innovative financing approaches such as categorical grants, revolving loans, and/or other State and Federal aid, in order to minimize the contribution from the City.
4. The City shall take all practical precautions and proactive measures to avoid any financial decision that will negatively impact current credit ratings on existing or future debt issues.
5. The City shall endeavor to attain the best possible credit rating for each debt issuance in order to reduce interest costs while preserving financial flexibility and meeting capital funding requirements.
6. The City shall obtain the shortest debt period feasible taking into consideration the debt structure, debt type, and amount. Debt period shall not exceed the expected useful life of the asset.
7. The City shall be mindful of its statutory debt limit in relation to assessed value growth and the tax burden needed to meet long-term capital requirements. The City shall consider the impact of new debt on overlapping debt of local, state and other governments that overlap with the City.
Prior to the issuance of debt to finance a project, the City will carefully consider the overall longterm affordability of the proposed debt issuance. The City shall not assume more debt without conducting an objective analysis of the City's ability to assume and support additional debt service payments. The City will consider its long-term revenue and expenditure trends, the impact on operational flexibility, and the overall debt burden on taxpayers. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and/or maintain debt levels consistent with the City's current and future operating and capital needs. The City will limit the debt ratio of annual principal and interest due during a Fiscal Year, such that it shall not exceed 10% of the General Fund budget.
Ill. ACCEPTABLE USE OF DEBT PROCEEDS
The City will consider long-term financing for the acquisition, substantial refurbishment, replacement, or expansion of capital assets. Specifically, acceptable uses of debt include:
1. Acquisition and/or improvement of land, right-of-way, or long-term easements.
2. Acquisition of a capital asset with a useful life of three years or more.
3. Construction, reconstruction or expansion of a facility.
4. Preconstruction costs including but not limited to project planning design, engineering, and other preconstruction efforts.
5. Project-associated furniture fixtures and equipment.
6. Capitalized interest, when applicable.
7. Original issue discount, underwriters' discount, and other costs of issuance, when applicable.
IV. TYPES OF DEBT
There are numerous types of financing structures and funding sources available, each with specific benefits, risks, and costs. The City shall review all potential funding sources within the context of this Policy and the overall portfolio, to ensure that any financial product or structure is consistent with the City's objectives. Regardless of which financing structure is utilized, due diligence review shall be performed for each transaction.
The following are types of debt the City can issue:
Exhibit A
632
Resolution No. 15,105
1. New Money Debt: New money debt is debt issued to finance the cost of capital improvement project or other large and extraordinary costs.
2. Refunding Debt: Refunding debt is debt issued to refinance (refund) previously issued outstanding debt. The City may issue refunding debt to refinance the principal and interest on outstanding bonds or other debt to achieve debt service savings, restructure schedule debt service or convert from variable to fixed interest rate, change or modify the source(s) of payment and security for the refunded debt, or modify covenants otherwise binding upon the City. Refunding may be issued on either a current or advance basis under federal tax law. See section VII for further detail.
3. Revenue Debt: Revenue debt is generally issued for enterprise funds that are financially self-sustaining without the use of general fund revenue sources and therefore rely on the revenues collected by the enterprise fund to repay the debt.
4. Land-Secured Debt: Examples of land-secured debt include special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes. Land-secured debt is payable from special taxes or assessments that the City will levy on the secured property tax roll.
5. General Obligation Bonds: General obligation (GO) bonds require a supermajority voter approval. Most GO bonds are backed by the issuer's ability to level ad valorem tax in amounts sufficient to meet debt service.
6. Lease Financing: Lease revenue bonds, certificates of participation (COPS), and leasepurchase transactions are examples of lease financings.
7. Bond and Grant Anticipation Notes: This type of debt is issued to finance a project in anticipation of other funding sources becoming available at a later time.
8. Tax Increment Financing: Tax increment financing may be used to the extent available under California law.
9. Conduit Financing: The City may agree to provide conduit financing for specific public purposes, such as financings for affordable rental housing, qualitied 501{c)(3) organization, other governmental agencies and/or joint power authorities. In a conduit financing, the debt is typically repaid with non-City revenues.
10. Inter-fund loans: The City may use available fund from another City fund to finance the cost of a capital project. A formal promissory note shall be established and shall include a specific interest rate. The interest rate can be market average, weighted average of the City's investment portfolio, or other logical and justifiable rate as determined by the Chief Financial Officer. Regardless, the interest rate shall be no less than the current interest yield percentage paid by the Local Agency Investment Fund {LAIF).
Debt is typically issued under either a competitive or a negotiated sale, but also may be sold in a private placement. The City shall have the flexibility to determine which method of sale is appropriate for each debt issuance. Determination of the appropriate method of sale will rest collectively with the City Manager, Assistant City Manager, and Chief Financial Officer. There are a number of market factors that will affect the success of a debt offering and each should be carefully considered before selecting a method of sale. These factors include, but are not limited to:
1. Market perception of the City's credit quality,
2. Interest rate volatility,
3. Size of the proposed issue,
Exhibit A
633
Resolution No. 15,105
4. Complexity of the proposed issue, and
5. Competition with other issuers for investor interest (bond supply).
V. DEBT TERM
The City Council recognizes that new debt obligations may impact the long-term affordability of all outstanding debt and any future planned debt, as well as budgetary impacts associated with the maintenance and operating costs of debt-financed facilities.
The debt will be structured for the shortest period possible, consistent with a fair allocation of costs to current and future beneficiaries or users. As already discussed, debt shall not be issued for a term that exceeds the useful life of the debt-financed asset.
The City generally prefers level debt service payments over the term of the debt. However, the cost of capital, financial risk, current economic conditions, future financial flexibility, credit rating, and available cash flow will be evaluated to determine the most appropriate method of debt amortization for each debt issue. Back loading of debt service (debt service payments are lower in the initial years of a debt term and higher toward the later years of a debt term) is not authorized in this Policy and can occur only by City Council waiver from this policy.
VI. DEBT MANAGEMENT
The Chief Financial Officer shall employ appropriate internal controls, including but not limited to:
1. Perform redundant review to ensure all approved contracts and expenditures are consistent with the terms of the bond sale and ballot language by following the City's established workflow procedures.
2. Monitor the use of debt proceeds and the use of debt-financed assets (e.g., facilities, furnishings or equipment) throughout the term of the debt (and in some cases beyond the term of the debt) to ensure compliance with covenants and restrictions set forth in applicable City resolutions and Tax Certificates. The Chief Financial Officer, or their designee, shall report apparent deviations from the intended use in debt proceeds to the City Manager for further discussion, and if the City Manager determines appropriate in consultation with legal counsel (which may be bond counsel or the City Attorney or both), to the City Council.
3. Maintain records identifying the assets or portion of assets that are financed or refinanced with proceeds of each issue of debt.
4. Consult with Bond Counsel, Municipal Advisor and other professional expert advisers in the review of any contracts or arrangements involving use of debt-financed facilities to ensure compliance with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates.
5. Maintain proper accounting records for any contracts or arrangements involving the use of debt-financed facilities as might be necessary or appropriate to document compliance with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates.
6. Meet at least annually with personnel responsible for debt-financed assets to identify and discuss any existing or planned use of debt-financed assets to ensure that those uses are consistent with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates.
Exhibit A
Page4
634
Resolution No. 15,105
7. Report feedback from rating agencies to City Council, when and if available, regarding the City's financial strengths and weaknesses, and areas of concern relating to the City's existing credit ratings.
VII. REFUNDING GUIDELINES
The Chief Financial Officer shall monitor all outstanding debt obligations for potential refinancing opportunities, particularly in declining interest rate environment. The City will consider refinancing of outstanding debt to achieve annual savings, to shorten the period of the debt amortization, or to remove an undesirable covenant, condition, or restriction.
The City will generally seek to achieve debt service savings that, on a net present value basis, are at least 3% of the debt being refinanced. The net present value assessment shall factor in all costs, including issuance, escrow, and foregone interest earnings on any contributed funds on hand. Any potential refinancing shall additionally consider whether an alternative refinancing opportunity with higher savings is reasonably expected in the future. Refunding that will produce a net present value of less than 3% will be considered on a case-by-case basis.
Notwithstanding the foregoing, a refunding by the Successor Agency to the former Redevelopment Agency of Oxnard shall be based on the requirements stated in California Health and Safety Code Section 34177.5.
VIII. ARBITRAGE REBATE
The use and investment of tax-exempt debt proceeds shall be monitored to ensure compliance with arbitrage restrictions. Existing regulation require that issuers calculate rebate liabilities related to tax-exempt debt issues, with rebates paid to the Federal Government every five years and otherwise required by applicable provisions of the Internal Revenue Code and regulations.
The Chief Financial Officer shall contract with a specialist to ensure that proceeds and investments are tracked in a manner that facilitates accurate, complete calculations and, if necessary, timely rebate payments.
IX. RELATIONSHIP OF DEBT WITH OTHER CITY POLICIES
The City is committed to long-term capital planning. The City intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the City's capital budget and the capital improvement plan.
The City will integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City's public purposes.
The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management and budget administration.
X. DEBT MANAGEMENT AND DISCLOSURE POLICY
The Chief Financial Officer shall review this Debt Management Policy at a minimum of every five years or as required by law and recommend any changes to the City Manager and City Council.
Exhibit A
635
City of Oxnard Adopted Budget Fiscal Year 2022-23
252 Budget Schedules
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Z^нWZ^Ϳ ϭϲ͕ϳϲϬ͕ϴϴϱ ϭϴ͕ϯϱϱ͕ϯϱϬ ϭϴ͕ϱϴϬ͕ϳϯϴ ϭϵ͕ϲϬϳ͕Ϯϳϵ ϭϵ͕ϭϲϵ͕ϵϮϲ ϭϵ͕ϭϭϵ͕ϯϭϰ ,ĞĂůƚŚͬ/ŶƐƵƌĂŶĐĞͬĞŶĞĨŝƚƐ ϮϬ͕ϴϮϱ͕ϰϰϵ ϭϳ͕ϭϲϭ͕ϭϴϯ Ϯϭ͕ϰϱϬ͕ϮϭϮ ϮϮ͕Ϭϵϯ͕ϳϭϴ ϮϮ͕ϳϱϲ͕ϱϯϬ Ϯϯ͕ϰϯϵ͕ϮϮϲ ZĞƚŝƌĞĞDĞĚŝĐĂů Ϯ͕Ϭϲϲ͕Ϭϳϱ Ϯ͕ϭϬϭ͕ϯϱϵ Ϯ͕ϭϰϯ͕ϯϴϲ Ϯ͕ϭϴϲ͕Ϯϱϰ Ϯ͕ϮϮϵ͕ϵϳϵ Ϯ͕Ϯϳϰ͕ϱϳϵ tŽƌŬĞƌƐŽŵƉͬ^ĂĨĞƚLJWƌŽŐƌĂŵ ϳ͕ϴϰϰ͕ϰϬϴ ϲ͕ϲϯϬ͕ϯϰϲ ϲ͕ϳϲϮ͕ϵϱϯ ϲ͕ϴϵϴ͕ϮϭϮ ϳ͕Ϭϯϲ͕ϭϳϲ ϳ͕ϭϳϲ͕ϵϬϬ KƚŚĞƌWĞƌƐŽŶŶĞůŽƐƚƐ ϵϵ͕ϰϱϴ ϵϮ͕ϭϱϴ ϭϬϭ͕ϰϰϳ ϭϬϯ͕ϰϳϲ ϭϬϱ͕ϱϰϲ ϭϬϳ͕ϲϱϳ sĂĐĂŶĐLJ^ĂǀŝŶŐƐ Ͳ ;ϲ͕ϭϲϲ͕ϱϴϴͿ ;ϳ͕ϳϱϵ͕ϮϱϯͿ ;ϴ͕ϭϭϲ͕ϴϵϲͿ ;ϴ͕ϯϱϱ͕ϮϮϵͿ ;ϴ͕ϲϬϬ͕ϲϬϵͿ ^ƵďƚŽƚĂůWĞƌƐŽŶŶĞů ϭϭϳ͕ϳϲϯ͕ϲϴϮ ϭϮϰ͕ϴϲϭ͕ϬϬϯ ϭϮϲ͕ϰϴϲ͕ϲϳϭ ϭϯϭ͕ϵϲϵ͕Ϭϯϴ ϭϯϰ͕ϱϭϲ͕ϵϮϮ ϭϯϳ͕ϱϯϵ͕ϯϳϭ ^ĞƌǀŝĐĞƐΘ^ƵƉƉůŝĞƐ ϮϬ͕ϯϯϵ͕ϭϬϴ ϭϴ͕ϭϱϯ͕ϲϬϯ ϮϬ͕ϳϰϱ͕ϴϵϬ Ϯϭ͕ϵϬϯ͕ϯϬϴ ϮϮ͕ϯϰϭ͕ϯϳϰ ϮϮ͕ϳϴϴ͕ϮϬϭ /ŶƚĞƌŶĂů^ĞƌǀŝĐĞ ϭϱ͕ϵϰϲ͕ϳϱϮ ϮϬ͕ϲϭϰ͕ϯϳϳ Ϯϭ͕ϮϯϮ͕ϴϬϴ Ϯϭ͕ϴϲϵ͕ϳϵϮ ϮϮ͕ϱϮϱ͕ϴϴϲ Ϯϯ͕ϮϬϭ͕ϲϲϯ hƚŝůŝƚŝĞƐ ϰ͕ϲϱϳ͕ϮϰϮ ϰ͕ϰϵϵ͕ϲϬϱ ϰ͕ϱϴϵ͕ϱϵϳ ϰ͕ϲϴϭ͕ϯϴϵ ϰ͕ϳϳϱ͕Ϭϭϳ ϰ͕ϴϳϬ͕ϱϭϳ ŶŝŵĂů^ŚĞůƚĞƌ Ϯ͕ϭϱϲ͕ϭϱϵ ϭ͕ϵϯϴ͕ϯϴϲ Ϯ͕Ϯϲϯ͕ϵϲϳ Ϯ͕ϯϳϳ͕ϭϲϱ Ϯ͕ϰϵϲ͕ϬϮϯ Ϯ͕ϲϮϬ͕ϴϮϰ KƚŚĞƌ
džƉĞŶƐĞ ϭ͕ϵϯϮ͕ϵϬϰ Ϯ͕Ϯϴϰ͕ϱϭϲ Ϯ͕ϯϯϬ͕ϮϬϲ Ϯ͕ϯϳϲ͕ϴϭϬ Ϯ͕ϰϮϰ͕ϯϰϲ Ϯ͕ϰϳϮ͕ϴϯϯ Ğďƚ^ĞƌǀŝĐĞ Ϯ͕ϰϬϬ͕ϲϴϵ ϭ͕ϴϳϱ͕ϲϴϵ ϭ͕ϴϳϱ͕ϲϴϴ ϭ͕ϴϳϱ͕ϲϴϴ Ͳ Ͳ >ĞĂƐĞWLJŵƚĂƉ'ƌŽǁƚŚ&ĞĞƐ ϭ͕ϬϮϴ͕Ϭϴϯ ϭ͕Ϭϭϯ͕ϳϰϵ ϭ͕ϬϬϰ͕ϲϭϲ ϵϴϴ͕ϲϭϭ ϵϳϯ͕ϴϴϭ ϵϲϮ͕Ϯϵϱ ĂƉŝƚĂůKƵƚůĂLJ ϱϮϴ͕ϬϬϬ ϭ͕ϳϬϵ͕Ϯϭϱ ϱϯϴ͕ϱϲϬ ϱϰϵ͕ϯϯϭ ϱϲϬ͕ϯϭϴ ϱϳϭ͕ϱϮϰ dƌĂŶƐĨĞƌƐKƵƚͲƐƐĞƐƐŝƐƚƐ ϭϵϳ͕ϰϬϳ Ϯϲϯ͕ϳϲϲ ϭϵϳ͕ϰϬϳ ϭϵϳ͕ϰϬϳ ϭϵϳ͕ϰϬϳ ϭϵϳ͕ϰϬϳ dƌĂŶƐĨĞƌƐKƵƚͲ'ƌĂŶƚƐ ϱϬ͕ϭϯϴ ϭϲϲ͕ϵϴϰ ϱϬ͕ϭϯϴ ϱϬ͕ϭϯϴ ϱϬ͕ϭϯϴ ϱϬ͕ϭϯϴ dƌĂŶƐĨĞƌƐKƵƚͲĞďƚ^ĞƌǀŝĐĞ ϲ͕ϴϮϲ͕ϭϳϴ Ϯ͕ϵϵϬ͕Ϯϵϭ ϭϬ͕ϴϱϱ͕ϭϬϮ ϭϭ͕ϵϮϴ͕ϭϬϰ ϭϭ͕ϱϭϱ͕ϵϳϲ ϭϮ͕ϱϬϲ͕ϭϴϯ dƌĂŶƐĨĞƌƐKƵƚͲ^ƚŽƌŵǁĂƚĞƌ ϭ͕ϳϭϲ͕ϳϳϴ ϭ͕ϱϲϲ͕ϭϳϮ ϭ͕ϳϱϭ͕ϭϭϰ ϭ͕ϳϴϲ͕ϭϯϲ ϭ͕ϴϮϭ͕ϴϱϵ ϭ͕ϴϱϴ͕Ϯϵϲ dƌĂŶƐĨĞƌƐKƵƚͲĂƉŝƚĂůKƵƚůĂLJ ϭϮ͕ϴϰϵ͕ϯϳϳ ϳ͕ϳϰϵ͕ϯϰϴ ϴ͕ϱϭϱ͕ϴϲϱ ϳ͕ϴϭϱ͕ϴϲϱ ϲ͕ϵϲϱ͕ϴϲϱ ϱ͕ϯϬϬ͕ϬϬϬ dƌĂŶƐĨĞƌƐKƵƚͲ/^&ͬKWdƌĂŝŶŝŶŐ ϭϯϮ͕ϵϯϱ ϭϯϮ͕ϵϯϱ ϭϯϮ͕ϵϯϱ ϭϯϮ͕ϵϯϱ ϭϯϮ͕ϵϯϱ ϭϯϮ͕ϵϯϱ /ŶĨƌĂƐƚƌƵĐƚƵƌĞhƐĞ&ĞĞZĞƉĂLJŵĞŶƚ ϱ͕ϬϬϬ͕ϬϬϬ ϭϬ͕ϬϬϬ͕ϬϬϬ ϵ͕ϱϬϬ͕ϬϬϬ Ͳ Ͳ Ͳ ŽŶƚŝŶŐĞŶĐŝĞƐ ϭ͕ϰϯϬ͕ϲϲϵ ϲ͕ϭϴϰ͕ϲϮϴ ϵ͕ϵϵϮ͕ϲϰϱ ϴ͕ϮϬϯ͕ϭϳϰ ϭϬ͕ϵϲϱ͕ϲϬϰ ϭϬ͕ϴϵϰ͕Ϯϵϰ dŽƚĂů
džƉĞŶĚŝƚƵƌĞƐ ϭϴϰ͕ϴϯϬ͕ϳϮϭ Ϯϭϲ͕ϭϮϵ͕ϲϰϳ ϮϮϮ͕Ϭϲϯ͕ϮϬϵ Ϯϭϴ͕ϳϬϰ͕ϴϵϭ ϮϮϮ͕Ϯϲϯ͕ϱϱϭ ϮϮϱ͕ϵϲϲ͕ϰϴϭ ZĞĨĞƌƚŽƚŚĞŶĞdžƚƉĂŐĞĨŽƌhŶĚĞƌůLJŝŶŐƐƐƵŵƉƚŝŽŶƐŽĨ'ĞŶĞƌĂů&ƵŶĚ&ŽƌĞĐĂƐĞƚƌĂů&ƵŶĚ&ŽƌĞĐĂƐƚ Budget Forecast General Fund
636
City of Oxnard Adopted Budget Fiscal Year 2022-23
Budget Schedules 253
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E
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&zϮϬϮϭͲϮϮ
^d/Dd
z
ZͲ
E
&zϮϬϮϮͲϮϯ
KWd
h'
d
&zϮϬϮϯͲϮϰ
WZK:
d
&zϮϬϮϰͲϮϱ
WZK:
d
&zϮϬϮϱͲϮϲ
WZK:
d
&zϮϬϮϲͲϮϳ
WZK:
d
EĞƚZĞǀĞŶƵĞͬ;ĞĨŝĐŝƚͿ ϭϴ͕ϯϵϭ͕Ϯϭϲ ;ϳ͕ϵϯϰ͕ϰϳϮͿ ;ϴ͕ϱϬϬ͕ϮϲϱͿ ϵϲϵ͕ϰϳϮ ϯ͕ϲϭϯ͕ϵϵϭ ϱ͕ϱϴϱ͕ϳϮϳ ĞŐŝŶŶŝŶŐ&ƵŶĚĂůĂŶĐĞ ϰϬ͕ϴϵϲ͕ϳϬϲ Ϯϵ͕Ϯϵϵ͕Ϯϵϯ ϯϰ͕ϴϲϯ͕ϱϵϲ Ϯϲ͕ϯϲϯ͕ϯϯϭ Ϯϳ͕ϯϯϮ͕ϴϬϯ ϯϬ͕ϵϰϲ͕ϳϵϰ WƌŽũĞĐƚĞĚ/WĂƌƌLJŽǀĞƌƚŽ&zϮϯ Ͳ ;ϲ͕ϳϵϯ͕ϴϬϯͿ Ͳ Ͳ Ͳ Ͳ WƌŽũĞĐƚĞĚ/WĂƌƌLJŽǀĞƌƚŽ&zϮϰ ϭ͕ϵϬϭ͕ϯϲϮ Ͳ
ŶĚŝŶŐ&ƵŶĚĂůĂŶĐĞ ϯϰ͕ϴϲϯ͕ϱϵϲ ϰϬ͕ϴϵϲ͕ϳϬϲ Ϯϲ͕ϯϲϯ͕ϯϯϭ Ϯϳ͕ϯϯϮ͕ϴϬϯ ϯϬ͕ϵϰϲ͕ϳϵϰ ϯϲ͕ϱϯϮ͕ϱϮϭ hŶĂƐƐŝŐŶĞĚĂůĂŶĐĞĂƐйŽĨdŽƚĂů
džƉ ϮϮ͘ϭй ϭϲ͘ϭй ϭϭ͘ϵй ϭϮ͘ϱй ϭϯ͘ϵй ϭϲ͘Ϯй
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CITY COUNCIL AGENDA REPORT
REPORTS
AGENDA ITEM NO. K.7
DATE: January 17, 2023
TO: City Council
FROM: Ashley Golden, Assistant City Manager, (805) 385-7478, [email protected] SUBJECT: Revision of the Approved Conceptual Design for South Oxnard Aquatics Center and Professional Services Agreement Amendment with the design architect, ELS Architecture + Urban Design. (40 minutes)
RECOMMENDATION
That the City Council:
1. Approve a revision to the approved conceptual design for the South Oxnard Aquatics Center (SOAC) Improvement Project (Project No. 225502) to include a 30-meter pool;
2. Approve an amendment to the professional services agreement with ELS Architecture + Urban Design in an amount of $75,000 for a total not to exceed amount of $3,975,057 and extend the contract terms to July 24, 2026; and
3. Find this project is currently undergoing California Environmental Quality Act Mitigated Negative Declaration (CEQA - MND) study pursuant to Title 14 of the California Code of Regulations Sections 15070 through 15075.
The CEQA - MND will be completed and ready for final review and approval by the City Council at the time of construction award.
(This item did not originate in Committee as this is a capital improvement project specifically listed in the Capital Improvement Program budget, which was previously approved by the City Council.) Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/9KYczziHsQg
BACKGROUND
EXECUTIVE SUMMARY
At the September 6, 2022, City Council meeting, the Council selected Conceptual Plan Alt B for the SOAC. This concept plan includes a 6-lane lesson pool, a 50-meter stretch deep water pool, splash pad, fun water pool with zero beach and lazy river, a double slide, and bleacher seating. The interior spaces of the concept plan include administrative offices, lifeguard office, first aid room, training room, multi-use space, concessions, locker rooms, equipment and program storage, as well as the required mechanical and chemical storage areas. Since the September 6, 2022, Council date, the architect has further developed the schematic design plans with more details, which has allowed a clearer understanding of the estimated costs for the approved plan. Additionally, more details resulting from the geotechnical investigation of the proposed site have identified further soil remediation that should be included in the project as a risk-mitigation effort.
The costs of the project continue to grow due to various unforeseen conditions and construction escalation. As such, staff recommends the City Council approve a new concept plan, which includes approximately $8,926,970 in reductions for 638
value engineering options. Those value engineering options include a 30-meter in place of a 50-meter pool.
BACKGROUND
The SOAC will service the City’s youth, adults, and seniors and provide for the expansion of recreation, water fitness, and competitive aquatics opportunities. The SOAC will equip the residents of Oxnard, a coastal community, with water safety knowledge and provide a family-friendly environment for the residents of Oxnard.
The primary goal of the SOAC is to design and construct a community-based aquatics center that provides an opportunity for water safety by teaching the community of all ages to swim. Secondary to that goal, the SOAC is intended to create a love of the water through active and passive recreational opportunities for Oxnard youth, adults, seniors, families, swimming groups, swim teams, and water polo.
On September 6, 2022, Council was presented with seven design options for the SOAC, inclusive of an aspirational design and a staff-recommended design. The estimated costs for the seven designs ranged from $50,395,500 - $67,162,500. Each of these options had varying water feature options and a wide variety of programming opportunities to service the youth, adults, seniors, families, special populations, and swim and water polo teams. Ultimately, the City Council approved Conceptual Plan Alt B with a total project budget estimated at $59,305,500.
Capital Improvement Project (CIP) Reference: Project No. 225502 – Oxnard Aquatic Center - CIP 2021-2026 - Adopted May 18, 2021 – Page 51.
DISCUSSION
Council selected Conceptual Plan Alt B, which includes a 6-lane lesson pool, 50-meter stretch deep water pool, splash pad, fun water pool with zero beach and lazy river, double slide, and bleacher seating. Interior spaces include administrative offices, lifeguard office, first aid room, training room, multi-use space, concessions, locker rooms, equipment and program storage, and the required mechanical and chemical storage areas. The estimated cost for Conceptual Plan Alt B was $59,305,500.
As discussed in the September 6th staff report, the project was still in the preliminary planning phase. At that time, no detailed design work (soil contamination, geotechnical, architectural, civil, mechanical, and electrical) had been completed, and that information, along with the budgetary cost estimate presented at that time, was subject to change as more details were vetted, reviewed, and revised. The following two sections outline the adjustments that are now more refined and should be accounted for in the project. These adjustments total $9,518,070, increasing the cost of Conceptual Plan Alt B to $68,823,570. Because of these cost increases, staff recommends value engineering options, which include replacing the 50-meter pool with a 30-meter pool.
September 6th Budgetary Cost Estimate $59,305,500
Schematic Design Cost Estimate + $4,828,200
35% Soft Costs +$1,689,870
Geotechnical & Soil Remediation +$3,000,000
Total Estimate $68,823,570
DETAILED DESIGN RELATED ADJUSTMENT
As previously described in the September 6th report, some of the increased cost from the original project estimate to the budget provided for the schematic design phase ($59.3 million) can be attributed to items such as price increases on all building materials as a result of inflation, ongoing supply chain issues, and labor shortages in the construction industry.
Additionally, there is a large influx of federal and state funding, which typically leads to further increased construction cost escalation since there is an abundance of construction work available.
After moving into the schematic design phase, which includes a more detailed architectural and engineering design, the 639
construction cost estimates have increased by $4,828,200. When taking into consideration the associated soft costs, such as construction contingency, design fees, permits, project management/construction management and inspections, there is another increase of $6,518,070. This increase is attributed to the size of the buildings, activity pool, splash pad & deck areas, landscape areas, and more specific costs related to competition equipment and the activity structures.
GEOTECHNICAL AND SITE ENVIRONMENTAL ASSESSMENT RELATED ADJUSTMENT With more detailed geotechnical and engineering reports developing during the schematic design phase, it was discovered that the proposed area for construction is in a liquefaction zone. Therefore, additional geotechnical engineering work will be necessary. This resulted in a strong recommendation for ground stabilization to account for the liquefaction zone. The recommendation includes soil stabilization to allow the buildings and pools in the aquatics center to be usable, with minimum damage, after a higher level of seismic event, above what is minimally required by the Building Code. Because of the significant amount of investment in the SOAC by the City, staff recommends conducting the soil stabilization work to provide a higher level of probability that the SOAC will be useful after a high-intensity seismic event. This is estimated to cost $2,000,000.
In addition to the liquefaction zone, the preliminary hazardous material report suggests that the area needs potential soil remediation for possible soil contaminants. This includes the potential for herbicides, pesticides, and fuel leaked into the ground from suspected prior agricultural use of this site. The project’s hazardous material investigation (Environmental Site Assessment Phase II) has a defined scope of work, including standard soil core samples and laboratory testing. Staff anticipates this work will take about three months to complete. As such, until a final hazardous material report is complete, staff estimates the cost of soil remediation to be about $1,000,000. This is based on the size of the project site to be improved and some level of soil remediation. However, until the Environmental Site Assessment Phase II is finalized, this is a rough-order magnitude cost estimate. Because the prior use of the parcel and ownership history before the City acquired 50.5 acres of College Park in the late 1960s is not available in detail, there is a level of uncertainty about what may be found during the Environmental Site Assessment Phase II. It should be noted that the City transferred the 50.5 acres to the County in the early 1980s for development purposes and reacquired the 75-acre College Park in 2000.
If the Environmental Site Assessment Phase II defines a larger and significant remediation requirement, the cost could be much higher, in the range of $5,000,000-$10,000,000. Staff recommends using the $1,000,000 cost estimate for now to address any possible soil remediation. If the final Environmental Site Assessment Phase II defines remediation work in excess of the $1,000,000 estimate, staff will return to the City Council with options.
The estimate for soil stabilization and remediation noted above brings the estimated total soil-related cost adjustments to $3,000,000.
VALUE ENGINEERING AND STAFF RECOMMENDED DESIGN
The balancing point continues to be to provide a place that allows all Oxnard residents to gain water safety skills and recreational opportunities, accounting for the community input received, while also being financially responsible for the many needs of the City, today and into the future. This balancing point includes ensuring that what is ultimately constructed can be well maintained, staffed, and managed into the future from an operating budget standpoint.
Staff and the design consultant began to consider various value engineering (VE) options to the City Council selected Conceptual Plan Alt B to stay within the approved concept plan costs ($59,305,500), and, if possible, reduce the costs further.
Staff kept the following core principles of the SOAC top of mind when analyzing the VE options:
1. The primary goal of the SOAC is to design and construct a community-based aquatics center that provides an opportunity for water safety by teaching the community of all ages to swim.
2. Secondary to that goal, the SOAC is intended to create a love of the water through active and passive recreational opportunities for Oxnard youth and seniors, families, swimming groups, swim teams, and water polo.
3. Financial responsibility for the many needs of the city. 640
Based on these principles, staff could not recommend the inclusion of VE options associated with the reduction of the fun water zone elements, which included items such as the elimination of the spray pad, elimination of one of the slides, or reduction in the activities pool. The fun water zone is where people of all ages and abilities will be able to build their love of water and confidence to use the 25 meter and deep water pool.
The value engineering options include building reductions, removal of redundant functions or areas not specific to SOAC’s mission (office, training, equipment storage), and tightening up the overall site improvements to minimize any extraneous areas (parking, landscape area, etc). Ultimately, there is limited ability to reduce the project costs to what Council approved in September ($59.3 million) without the replacement of the 50-meter pool with a 30-meter pool. A 30- meter pool allows further reductions in the deck, building, and landscaping options without affecting programming (with the exception of the long course the 50-meter pool provides).
Including a 30-meter pool, the VE options total $8,926,970. Below is a summary of the recommended VE options.
Value Engineering Recommendations
Building Reductions -$4,068,860
Pools & Deck Reductions -$2,540,110
Landscape Reductions -$2,318,000
Total Savings -$8,926,970
To analyze the recommendation by looking at total costs, this table provides the estimated costs for the adjustments and value engineering option considered:
Item Alt. B (9/6/22) New 30-Meter Pool
Rough Order of Magnitude $43,930,000 $43,930,000
Value Engineering ($8,926970)
New Schematic Design Cost Increase $4,828,200
Sub-total $39,831,230
Soft costs $15,375,500 $13,940,931
Geotechnical & soil remediation *$3,000,000
Total $59,305,500 $56,772,161
*cost for soil remediation is still a rough estimate until the Environmental Assessment Phase II report is available The VE recommended design closely aligns with the Council selected Conceptual Plan Alt B and provides learn-to-swim activities for all ages, splash pads that engage those who might be new to water activities among many others, and a fun pool with beach entries, slides, and lazy rivers. In addition, a 30-meter pool provides for competitive swimming. As discussed at the September 6th meeting, the advantage to a 50-meter pool is the ability to run long course (typically a summer program only). Without moving to a 30-meter pool, many of the fun water amenities would need to be eliminated or significantly reduced, which affects programming. Furthermore, the fun water amenities allow for the development of a safe, loving relationship with being in the water. That relationship can develop the confidence to move towards swimming in larger and deeper pools, and possibly even competition swimming.
ALL- ELECTRIFICATION ANALYSIS
The Climate Action and Adaptation Plan (CAAP) does not require City facilities to be designed or operated as electric and electrification of municipal buildings is not quantified via greenhouse gas (GHG) reductions to meet the 2030 Statemandated target. Despite electrification not being required by the CAAP, staff had ELS complete an All Electrification 641
analysis for the SOAC. The upfront costs for All Electric are estimated at $2,557,000, with a payback period of approximately 25 years. This payback period does not take into consideration additional costs on replacement or repairs during that payback period. Although all electric facilities are common in Florida, only a couple of recent aquatics centers have been approved as all-electric in the State of California, none are actually completed or in operation in California. In California, there are not as many companies or tradespersons, nor the City’s expertise, to operate and maintain an all-electric facility at this time. Because of the uncertainty of engineering and operations, as well as the upfront budget impacts, which would require eliminating aquatic elements such as the slide and splash pad, staff does not recommend all electric in any design concept selected. However, the SOAC will adhere to CAL Green (Title 24) requirements related to higher efficiencies (CAAP Table 3-1 Annual GHG Reductions from Local Strategies by 2030).
AMENDMENT OF DESIGN AGREEMENT
Due to the City’s requests for extra services, as provided for in the agreement, there has been the issuance of multiple Notice to Proceeds to ELS, which have depleted the ELS’s contingency to a lower than normal level at this stage of the project. These additional services have included the hiring of consultants to perform market and pool operations analysis, perform a study for an all-electric facility, additional environmental reviews and documentation to satisfy Federal & State grants, other miscellaneous surveys, and geotechnical investigatory work. As a result, staff recommends approval of an amendment to the professional services agreement with ELS in an amount of $75,000 for the design contingency for future unforeseen needs for a total not to exceed $3,975,057 and extend the contract terms to July 24, 2026.
NEXT STEPS & PROJECT SCHEDULE
The increased cost estimates and analysis of the VE options have already caused approximately a 1.5 month delay in the project schedule. This is due to the fact that the schedule to start the Design Development Phase (DD) was December 1, 2022, and now the DD phase will start on January 18, 2023, if the Council approves the staff recommendation. Therefore, the overall schedule is extended by about 1.5 months for ELS to finish the DD phase.
The project is expected to be further delayed by the need to conduct additional construction and remediation related to the geotechnical and hazmat studies. These delays are estimated to be up to nine months; however, it is possible that any necessary remediation work could take place concurrently with other phases of the project. Staff and ELS are committed to reducing the overall project schedule and would still like to aim for a July 2025 opening, but with the unknowns associated with the geotechnical and hazmat studies and associated construction requirements, the project schedule is as follows and contingent upon environmental clearance as well as securing funding:
Activity Original Schedule Revised Schedule
Design & Permits * Spring 2023 Summer 2023
Construction Start * Fall 2023 Winter 2024
Construction Complete** July 2025 Winter 2026
*Contingent upon environmental clearance
**Contingent upon successful construction award
Regardless of which plan is selected, the next step is for ELS to refine the project concept and proceed to the Design Development stage of the project. The current schedule to start the Design Phase of the project was December 1, 2022, and now the Design Phase will begin around January 18, 2023. As a result, the schedule is extended by a minimum of 1.5 months to complete the remaining phases of the project.
STRATEGIC PRIORITIES
This agenda item supports the Quality of Life strategy. The purpose of the Quality of Life strategy is to restore and increase quality services and programs that enrich Oxnard's diverse community, promotes safe neighborhoods, encourages community engagement, and supports our residents in their efforts to improve their quality of life.
FINANCIAL IMPACT
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The design and engineering services are contracted with ELS for an approved amount not to exceed $3,900,057. As described earlier, due to City requests for extra services, the ELS contingency has been depleted to a lower than normal level at this stage of the project. As a result, staff recommends approval of an amendment to the professional services agreement with ELS in an amount of $75,000 for the design contingency for future unforeseen needs for a total not to exceed $3,975,057 and extend the contract terms to July 24, 2026. There is sufficient funding available from an existing appropriation of $5M in State grant funds (Fund 219) in the South Oxnard Aquatic Center Improvement Project (Project No. 225502) for this phase of the project.
The CIP Budget approved by the City Council has identified a future General Fund Secured Bond for the construction of the SOAC. As discussed at the September 6th meeting, from a bond capacity, changes or higher construction project costs for the SOAC limit future financing affordability of other City projects (e.g. fire stations, senior center, seawalls, etc.).
This is an important factor considering the many City facility needs. Based on today’s interest rates, which are subject to change, the annual debt service for the originally estimated $30 million bond would be $2.0 million, presented on September 6, 2022, and assuming a $50 million bond at today’s rates, would result in an annual debt service of $3.4 million dollars.
COMMITTEE OUTCOME
This item did not originate in Committee as this is a capital improvement project specifically listed in the Capital Improvement Program budget, which was previously approved by the City Council.
Prepared by: Ashley Golden, Assistant City Manager
ATTACHMENTS
1. September 6, 2022 City Council Staff Report
2. Second Amendment to Professional Services Agreement with ELS Architecture + Urban Design
3. Presentation
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CITY COUNCIL AGENDA REPORT
REPORTS
AGENDA ITEM NO. N.3
DATE: September 6, 2022
TO: City Council
FROM: Ashley Golden, Assistant City Manager, (805) 385-7478, [email protected] SUBJECT: Approve the Conceptual Design for South Oxnard Aquatics Center. (15/10/10)
RECOMMENDATION
That the City Council approve the conceptual design, Recommended Option, for the South Oxnard Aquatics Center Improvement Project (Project No. 225502). The Aquatics Center will be located within College Park. (This item did not originate in Committee as this is a capital improvement project specifically listed in the Capital Improvement Program budget, which was previously approved by the City Council.) Presentation will be live upon consultant’s request.
BACKGROUND
On July 30, 2021, the City, with the assistance of State Senator Monique Limón, was awarded $5,000,000 from the State of California (State) to design and construct the South Oxnard Aquatics Center within 7 acres of currently vacant Cityowned property within College Park. The grant funds allowed the City to conduct community outreach and the architectural/engineering design of the aquatics center.
Following the grant award, the City surveyed residents in order to determine the types of aquatics activities the community is interested in having at the new aquatics center. This occurred during a community meeting on December 11, 2021 as well as during afterschool programs across 20 of Oxnard’s primary and secondary schools.
On May 5, 2022, the Department of Public Works, Engineering & Transportation Mobility issued a Notice to Proceed to ELS to conduct additional public outreach and participatory community design, cost analysis, architectural and engineering design, and preparation of plans and specifications for the South Oxnard Aquatics Center Improvement Project (Project No. 225502).
Capital Improvement Project (CIP) Reference: Project No. 225502 – Oxnard Aquatic Center - CIP 2021-2026 - Adopted May 18, 2021 – Page 51.
DISCUSSION
The proposed South Oxnard Aquatics Center (SOAC) will service the City’s youth, adults, and seniors and provide for expansion of recreation, water fitness, and competitive aquatics opportunities. The SOAC will equip the residents of Oxnard, a coastal community, with water safety knowledge and provide a family-friendly environment for the residents of Oxnard.
The primary goal is to design and construct a community-based aquatics center that provides an opportunity for water safety by teaching the community of all ages to swim. Secondary to that goal, the SOAC is intended to create a love of 644
the water through active and passive recreational opportunities for Oxnard youth and seniors, families, swimming groups and swim teams.
ELS, using the community feedback from 2021, prepared three concept site plan designs that conformed with the City’s programming goals and needs. These site plan designs were shared and further refined based on community input at two community engagement meetings held on June 29th & August 1st, 2022. The meetings resulted in unanimous support for Concept Plan No. C is (Aspirational Plan).
That Aspirational Plan includes a 6-lane lessons pool, 50 meter stretch deep water pool, splash pad, fun pool, lazy river, double slide, bleacher seating, and a picnic area with decking. Interior spaces include administrative offices, lifeguard office, first aid room, training room, multi-use space, concessions, locker rooms, equipment and program storage, as well as the required mechanical and chemical storage areas.
The assigned budgeted in the FY 21/22 City Council approved CIP budget for the SOAC was $40,000,000. Based on total Rough Order of Magnitude (ROM) project cost estimates, the community’s Aspirational Plan option is now estimated at $67,162,500 over $27,000,000 over the budgeted amount. The total estimated ROM Project Cost include Construction Cost, Construction Contingency, Project/Construction Management, Inspection, Testing, Permit Fees, Art Fees, Furniture, Fixtures, Equipment and other miscellaneous Costs. There are several factors that can be attributed to the latest ROM cost. Some of the increased cost of construction can be attributed to items such as price increases on all building materials as a result of inflation, ongoing supply chain issues, and labor shortages in the construction industry.
Additionally, there is a large influx of federal and state funding and as such, this typically leads to increased construction costs since there is an abundance of construction work available. Furthermore, since there is higher than normal inflation occurring, the ROM cost estimate needs to include that as a possible trend moving forward into the anticipated midpoint of construction, which is about 24 months from now.
Due to the higher-than-anticipated ROM construction cost estimate, City staff requested that ELS provide the City with a range of options that meet the goals of the SOAC project - to teach residents to swim and water safety while expanding recreational opportunities. With this core focus in mind, ELS provided seven (7) design alternatives ranging in estimated ROM construction costs of $37,330,000 to $49,750,000. Each of these options have varying water feature options and a wide variety of programming opportunities to service the seniors, youth, families, special populations, and swim and water polo teams.
DESIGN ALTERNATIVES AND ESTIMATED TOTAL PROJECT COSTS
In addition to ROM estimated construction costs, the total estimated project cost also needs to include Construction Contingency, Design and Engineering Consulting Fees, Project/Construction Management, Inspection, Testing and Indirect Costs (collectively “Soft Costs”). A breakdown of these additional costs is included below:
• Construction Contingency ~10%
• Design and Engineering Consultant Fees ~10%
• Estimated Project/Construction Management ~7%
• Estimated Inspection ~5.5%
• Estimated Indirect Costs (Public Art & Permits, Furniture, Fixture, Equipment & IT) ~2.5% Total Estimated Soft Cost Increase ~35%
The total estimated Soft Costs (35%) is applied to each alternative design option and a breakdown of the ROM project cost estimate is provided in the table below:
Design Option (ROM)
Construction Cost
Estimate from
ELS
Total Soft Cost
including Construction
Contingency (35%)
Total (ROM) Project Cost
(including 35% for Soft
Costs)
Aspirational $49,750,000 $17,412,500 $67,162,500
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Recommended Option $39,850,000 $13,947,500 $53,797,500
Other Alternatives Explored
Alt. A $44,080,000 $15,428,000 $59,508,000
Alt. B $43,930,000 $15,375,500 $59,305,500
Alt. C $39,900,000 $13,996,500 $53,986,500
Alt. D $39,080,000 $13,678,000 $52,758,000
Alt. E $37,330,000 $13,065,500 $50,395,500
The staff recommended option closely aligns with the Aspirational Plan and provides learn-to-swim activities for all ages, splash pads that engage those who might be new to water activities among many others, and a fun pool with beach entries, slides, and lazy rivers. These amenities allow for the development of a safe loving relationship with being in the water which can develop the confidence to move towards swimming in larger and deeper pools, and possibly even competition swimming.
It should be noted that the project is still in the preliminary planning phase. As such, no detailed design work (architectural and engineering) has been completed. This means that information being presented now, inclusive of the ROM and estimated Total Project Costs is subject to change as more details are vetted, reviewed, and revised. It is also possible the changes may include different sized amenities and elements to areas such as the deep water pool, splash pad, fun pool, and interior spaces. The balancing point is to provide a place that allows all Oxnard residents to gain water safety skills and recreational opportunities, accounting for the community input received, while also being financially responsible for the many needs of the City, today and into the future. This balancing point includes ensuring that what is ultimately constructed can be well maintained, staffed, and managed into the future from an operating budget standpoint.
COMMUNITY OUTREACH TO DATE
December 11, 2021 – Community Engagement at College Park June 29, 2022 – Community Workshop 1
August 1, 2022 – Community Workshop 2
August 24, 2022 - Parks, Recreation and Community Services Commission (PRCSC).
The conceptual design was presented to the PRCSC as informational. The four Commissioners present at the August 24th meeting all expressed support to include a 50m pool in the final design.
NEXT STEPS
An economic analysis for both programming scope and an operation & maintenance plan is underway. Once the economics analysis, the schematic design and the construction cost estimate are complete, staff will review and refine the project concept prior to proceeding to the Design Development stage of the project.
PROJECT SCHEDULE
The project schedule is as follows and contingent upon environmental clearance as well as securing funding:
Design & Permits * Spring 2023
Construction Start ** Fall 2023
Construction Complete** July 2025
*Contingent upon environmental clearance
**Contingent upon successful construction award
STRATEGIC PRIORITIES
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This agenda item supports the Quality of Life strategy. The purpose of the Quality of Life strategy is to restore and increase quality services and programs that enrich Oxnard's diverse community, promotes safe neighborhoods, encourages community engagement, and supports our residents in their efforts to improve their quality of life.
FINANCIAL IMPACT
The design and engineering services are contracted with ELS for an approved amount not to exceed $3,900,057. There is sufficient funding available from an existing appropriation of $5M in State grant funds (Fund 219) in the South Oxnard Aquatic Center Improvement Project (Project No. 225502) for this phase of the project.
The current CIP Budget (FY 22/23 and 23/24) approved by the City Council has identified a future General Fund Secured Bond issuance of $30 M for construction of the South Oxnard Aquatics Center. As noted above, the current cost estimate is greater than what is identified in the CIP budget. As such, the bond issuance amount, subject to the City Council’s subsequent review and approval, will be net of total project cost after applying any grant amount available for the project. From a bond capacity, it should be noted that changes or higher construction project cost for South Oxnard Aquatic Center will limit future financing affordability of other City projects (e.g., aquatic center, fire stations, senior center, seawall, etc).
COMMITTEE OUTCOME
This item did not originate in Committee as this is a capital improvement project specifically listed in the Capital Improvement Program budget, which was previously approved by the City Council.
Prepared by: Tatiana Arnaout, City Engineer, Julie Estrada, Recreation Coordinator
ATTACHMENTS
1. Conceptual Design Options
2. Aquatics Center Amenities and Program Comparison Chart 08.2022 647
Agreement No. A-8456
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
This Second Amendment (“Second Amendment”) to the Agreement for Professional Services (“Agreement”) is made and entered into in the County of Ventura, State of California, this ______ day of ___________, 2022, by and between the City of Oxnard, a municipal corporation (“City”), and ELS (“Consultant”). This Second Amendment amends the Agreement entered into on April 25, 2022, by City and Consultant.
City and Consultant agree as follows:
1. The amount in Section 6 of the Cover Page of the Agreement is hereby amended to “$3,975,057.”.
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (V-01-17-19)) 2023 3.
2. The date in Section 5 of the Cover Page of the Agreement is hereby amended to "July 24, 2026".
2. As so amended, the Agreement remains in full force and effect. [Signatures on next page]
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Agreement No. A-8456
IN WITNESS WHEREOF, the parties hereto have executed the Amendment on the date first written above.
CITY OF OXNARD ELS
☒ John C. Zaragoza, Mayor1 Date Clarence Mamuyac, President2 Date ☐ Alexander Nguyen, City Manager
☐ Jennifer Yates, Purchasing Manager
☐ ___________, Buyer
Gerald Navarro, Secretary Date
ATTEST:
Rose Chaparro, City Clerk Date
(only if Mayor signs)
APPROVED AS TO FORM:
Stephen M. Fischer, City Date
Attorney (always required)
2The City requires the following for any contract:
● For a corporation, the signatures of the Board President, CEO or Vice President and of the Board Secretary, Assistant Secretary, CFO or Assistant Treasurer;
● For an LLC, the signatures of at least two managers of the LLC; or ● For a partnership, the signature of a partner. If the partnership is a limited partnership, the signer must be a general partner.
If the company has a different structure, or if the above-listed persons are not the appropriate signers, please submit to the City Attorney legally-binding documentation stating who can sign and bind your company. 1The City Council must authorize and the Mayor must sign any agreement over $200,000 annually. The City Manager may authorize and sign any agreement over $100,000 but up to $200,000 annually. The Purchasing Manager may authorize and sign any agreement up to $100,000 annually. A Buyer may authorize and sign any agreement up to $25,000 annually.
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (V-01-17-19) 01/05/23 01/05/23
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City Council
January 17, 2023
Revision to the Conceptual Design for the
South Oxnard
Aquatics Center
1 For January 17th Meeting:
• Goals of the South Oxnard Aquatics Center
• Costs of the Alt B Concept Plan
■ Design (increases) & Geotechnical (new)
■ Value Engineering Recommendations
• Electrification
• Contract Amendment
• Financial Impact & Bonding
• Schedule
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Community Driven GOALS for the South
Oxnard Aquatics Center…..
- Provide ample learn-to-swim opportunities; Develop a
love for Water!
- Deliver diverse aquatics programming
- Ensure equity and access to large water
- Seek grants
- Strike a balance of construction investment and future operating cost
3 Selected Concept Plan -
Sept. 2022
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Costs for the SOAC
September 6th Budgetary Cost
Estimate
$59,305,500
Schematic Design Cost estimate + $4,828,200
35% soft costs +$1,689,870
Geotechnical & Soil Remediation +$3,000,000
Total Estimate $68,823,570
5 Geotechnical & Soil Remediation - $3M
Proposed area for construction is in a liquefaction zone - Recommenda ground stabilization to provide a higher level of probability that the SOAC will be useful after a high-intensity seismic event. - This is estimated to cost $2M.
Preliminary hazardous material report suggests a need for soil remediation - Until a final hazardous material report is done, staff estimates the cost of soil remediation to be about $1M.
- If the Environmental Site Assessment Phase II defines a larger and significant remediation requirement, the cost could be much higher, in the range of $5M-$10M.
- If remediation work is in excess of the $1M estimate, staff will return to the City Council with options
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7 Value Engineering Recommendations
Building Reductions -$4,068,860
Pools & Deck
Reductions* -$2,540,110
Landscape Reductions -$2,318,000
-$8,926,970
*Inclusive of a 30-meter pool in place of
a 50- meter pool
Value Engineering (VE)
Recommendations
7 8
-Maintains majority of Council
Selected elements programming
-Provides ample learn-to-swim
opportunities; Develops a love for
water!
-Delivers on diverse aquatics
programming
-Ensures equity and access to
large water
-Presents grant opportunities
-Strikes a balance of construction
investment and future operating
cost
Best Community Value:
Revised Concept Plan Jan. 2023
653
Programs
Youth
Parent & Me Swim Toddler Time Learn to
Swim Swim Team Diving
Water Polo Jr. Lifeguards
Summer Camps
Competition (Short and Long Course)
Adults
Lap Swim
Adult Swim Classes Aqua Yoga
Ahi Chi Aqua Spin
Deep Water Running Shallow Water Running
Aqua Fitness/Water Aerobics Masters
Seniors and Individuals with Mobility Limitations
Ahi Chi
Aqua Spin
Shallow Water Running
Aqua Fitness/Water Aerobics Summer
Walking Club (Lazy River)Aqua
Fitness/Water Aerobics Summer Walking
Club (Lazy River)
Special Populations
Partner Swim
Sensory Sensitivity in the Fun Water Learn to Swim
Challenger Swim Team
Amenities
Site Work
Public Environment (unsecured)
Entry Plaza (Hardscape) Plaza
Fountain
Softscape Parking
Aquatics Environment
Built-in Bleachers
Pool Decking (Hardscape) Softscape
Picnic Decking
Building
Administration (Offices) Training
Room
Multi-Use Room Public
Spaces
Maintenance/Back of House Wet
Storage
Pools
50mx25yrd Stretch
Lessons Pool
Separate Spray Ground
Fun Water Pool (Zero Beach + Lazy River)
Double Slide
9 Costs for the Revised Concept
10 Item New 30-Meter Pool
Rough Order of Magnitude $43,930,000
Value Engineering ($8,926,970)
New Schematic Design Cost Increase $4,828,200
Sub-total $39,831,230
Soft costs $13,940,931
Geotechnical & soil remediation *$3,000,000
Total $56,772,161
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All Electric - Not recommended
‒ Upfront budget impacts would require eliminating aquatic elements or increasing the budget
‒ The Climate Action and Adaptation Plan does not require or rely on City facilities to be designed or operated as electric and electrification ‒ The estimated upfront costs for All Electric are estimated at $2,557,000 with a payback period of approximately 25 years
‒ A couple recent aquatics centers have been approved as all-electric in the State of California, none are actually in operation in California ‒ Uncertainty of engineering and operations in California and for the City ‒ The SOAC will adhere to CAL Green (Title 24) requirements related to higher efficiencies (CAAP Table 3-1 Annual GHG Reductions from Local Strategies by 2030).
11 Financial Impact
- Current Agreement with ELS: $3,900,057.
○ ELS contingency has been depleted to a lower than normal level for this stage of the project due to City requests for extra services. ○ Increase Contract amount by $75,000; Total of not to exceed $3,975,057
○ Extend contract terms to July 25, 2026.
○ Sufficient funding available from an existing $5M appropriation in State grant funds for this phase of the project.
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Bonding
- CIP Budget approved by the City Council has identified a future General Fund Secured Bond for construction of the SOAC.
○ Changes or higher construction project costs for SOAC limit future financing affordability of other City projects
■ e.g. fire stations, senior center, seawall
○ Based on today’s interest rates (subject to change), the annual debt service for the originally estimated $30M bond would be $2M ○ Sept 6th Option Alt B with a $50M bond at today’s rates, would result in annual debt service of $3.4M.
○ This is an important factor considering many City facility needs. 13 Completed:
∙ 12.11.2021 Community Event at College Park
∙ 06.29.2022 Community Workshop #1 + Survey
∙ 08.01.2022 Community Workshop #2
∙ 08.24.2022 Parks, Recreation and Community Services Commission ∙ 09.06.2022 City Council Meeting
**
Contingent upon environmental clearance
Construction start contingent upon funding
Next steps:
Activity Original Schedule Revised Schedule
Design & Permits * Spring 2023 Summer 2023
Construction Start * Fall 2023 Winter 2024
Construction
Complete**
July 2025 Winter 2026
Schedule
14 *Contingent upon environmental clearance
**Contingent upon successful construction award
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Recommendation
That the City Council:
1) Approve a revision to the approved conceptual design for the South Oxnard Aquatics Center (SOAC) Improvement Project (Project No. 225502) to include a 30-meter pool;
2) Approve an amendment to the professional services agreement with ELS Architecture + Urban Design in an amount of $75,000 for a total not to exceed amount of $3,975,057 and extend the contract terms to July 24, 2026; and
3) Find this project is currently undergoing California Environmental Quality Act Mitigated Negative Declaration (CEQA - MND) study pursuant to Title 14 of the California Code of Regulations Sections 15070 through 15075.
The CEQA - MND will be completed and ready for final review and approval by the City Council at the time of construction award. 15 657