City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01410 8/20/2024 Consent Item 5.
Establish Capital Improvement Projects (CIP) and Appropriation of Funds for Playground Replacement at Steve Jones Park and Mark Hopkins Park Projects File ID: 2024-01410
Location: District 8, Represented by Councilmember Mai Vang Recommendation: Adopt a Resolution: 1) establishing new Capital Improvement Projects (CIP) for:
a) Steve Jones Park Playground Replacement Project (L19164100); and b) Mark Hopkins Park Playground Replacement Project (L19139500); 2) authorizing the City Manager or the City Manager’s designee to reduce the Fiscal Year (FY) 2024/25 Human Resources Department operating budget by $198,000 from the Risk Fund (Fund 6502) and increase the FY2024/25 Youth, Parks and Community Enrichment (YPCE) Department operating budget by $198,000 (General Fund, Fund 1001) to establish appropriate transfer between the two funds and transfer from YPCE operating budget: a) in the amount of $99,000 (Fund 1001) to Steve Jones Park Playground Replacement Project (L19164100); and b) in the amount of $99,000 (Fund 1001) to Mark Hopkins Park Playground Replacement Project (L19139500); 3) authorizing the City Manager or the City Manager’s designee to transfer from available fund balance (Park Impact Fee, Fund 3204): a) in the amount of $414,445 to Steve Jones Park Playground Replacement Project (L19164100); and b) in the amount of $235,370 to Mark Hopkins Park Playground Replacement Project (L19139500); and 4) make the appropriate budgetary adjustments necessary to return the Park Impact Fee funds to available fund balance upon receipt of third-party insurance reimbursements for the projects.
Contact: Jason Wiesemann, Park Planning, Design and Development Manager, (916) 808-7634, [email protected], Department of Youth, Parks, & Community Enrichment Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The playground structure and play equipment at Steve Jones Park were destroyed by fire in June 2024. City staff recommend establishing the Steve Jones Park Playground Replacement Project (L19164100) and increasing the expenditure budget in L19164100, up to $513,445, based on
File ID: 2024-01410 8/20/2024 Consent Item 5.
insurance proceeds received by the City. The first $99,000 will be used to begin the demolition and removal of the burnt structures, and to develop construction documents for the replacement of the playground and play equipment.
The playground and shade structure at Mark Hopkins Park were destroyed by fire in July 2024. City staff recommend establishing the Hopkins Park Playground Replacement Project (L19139500) and increasing the expenditure budget in L19139500, up to $334,370, based on insurance proceeds received by the City. The first $99,000 will be used to begin the demolition and removal of the burnt structures, and to develop construction documents for the replacement of the playground and shade structures.
Policy Considerations: City Council approval is required to establish CIP projects.
Providing parks and recreation facilities is consistent with the City’s strategic plan to enhance livability in Sacramento’s neighborhoods by expanding park, recreation, and trail facilities throughout the City.
Council Resolution No. 2024-0193. Sections 6.3 and 10.10 require that all appropriation changes exceeding $250,000 in total by fund from available fund balance and any project must be approved by resolution of the City Council.
Economic Impacts: None.
Environmental Considerations: The projects have been reviewed the for compliance with the requirements of the California Environmental Quality Act (CEQA) and determined that they are exempt from the provisions of the CEQA pursuant to Section 15302 of the CEQA Guidelines, as they involve the replacement and reconstruction of existing facilities.
Sustainability: Not Applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The City is the named insured on the insurance policies covering parks and expects to receive insurance proceeds due to the fires.
Financial Considerations: The reconstruction of the Steve Jones playground and replacement of play equipment is expected to cost approximately $513,445. The City is self-insured for the first $99,000 of the property loss. To begin the demolition and removal of the structure, a CIP is needed as well as budgetary authority to transfer $99,000 from the Risk Fund (Fund 6502) through the department budget to the Steve Jones Park Playground Replacement Project (L19164100), Fund 1001. An additional transfer of $414,445 from Park Impact Fee Fund (Fund 3204) available fund balance to the Steve Jones Park Playground Replacement Project (L19164100) is also needed to
File ID: 2024-01410 8/20/2024 Consent Item 5.
complete the project.
The additional cost above the first $99,000 will be reimbursed by the City’s third-party insurance provider and the amount of the reimbursement will be budgeted in the project. The $414,445 budget in Park Impact Fee Fund will be returned to Park Impact Fee Available Fund Balance when and if the third-party reimbursement is received.
The reconstruction of the Mark Hopkins playground and replacement of play equipment is expected to cost approximately $334,370. The City is self-insured for the first $99,000 of the property loss. To begin the demolition and removal of the structure, a CIP is needed as well as budgetary authority to transfer $99,000 from the Risk Fund (Fund 6502) through the department budget to the Mark Hopkins Park Playground Replacement Project (L19139500), Fund 1001. An additional transfer of $235,370 from Park Impact Fee Fund (Fund 3204) available fund balance to the Mark Hopkins Park Playground Replacement Project (L19139500) is also needed to complete the project.
The additional cost above the first $99,000 will be reimbursed by the City’s third-party insurance provider The $235,370 budget (less deductible) in Park Impact Fee Fund will be returned to Park Impact Fee Available Fund Balance when and if the third-party reimbursement is received.
Local Business Enterprise (LBE): Not Applicable.
RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
ESTABLISH CAPITAL IMPROVEMENT PROJECTS AND APPROPRIATE FUNDING
BACKGROUND
A. The playground structure at Steve Jones Park was destroyed by fire in June 2024.
B. The playground and shade structure at Hopkins Park were destroyed by fire in July 2024.
C. City Council approval is required to establish capital improvement projects (CIP).
D. The initial fund transfer will be used to begin the demolition and removal of the burnt structures and to develop construction documents to replace the playgrounds and shade structure. Once the insurance proceeds are received, the replacement projects will be implemented.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The following new CIPs are hereby established:
a) Steve Jones Park Playground Replacement Project
(L19164100);
b) Mark Hopkins Park Playground Replacement Project
(L19139500).
Section 2. The City Manager or the City Manager's designee is authorized to reduce the Fiscal Year (FY) 2024/25 Human Resources Department operating budget by $ 198,000 from the Risk Fund (Fund 6502) , increase the FY2024/25 Youth, Parks and Community Enrichment (YPCE) Department operating budget by $ 198,000 (General Fund. Fund 1001) to establish appropriate transfer between the two funds.
Section 3. The City Manager or the City Manager’s designee is authorized to:
a) Transfer $99,000 (General Fund, Fund 1001) from YPCE operating expenditure budget to the Steve Jones Park
Playground Replacement Project (L19164100).
b) Transfer $99,000 (General Fund, Fund 1001) from YPCE operating expenditure budget to the Mark Hopkins Park
Playground Replacement Project (L19139500).
Section 4. The City Manager or the City Manager's designee is authorized to transfer:
a) $413,445 from available fund balance (Park Impact Fee Fund, Fund 3204) to the expenditure budget in Steve
Jones Park Playground Replacement Project
(L19164100).
b) $234,370 from available fund balance (Park Impact Fee Fund, Fund 3204) to the expenditure budget in the Mark
Hopkins Park Playground Replacement Project
(L19139500).
Section 5. The City Manager or the City Manager's designee is authorized to make the appropriate budgetary adjustments necessary to return the Park Impact Fee Funds (Fund 3204) to available fund balance and increase the funding in the projects following third-party insurance reimbursements for the Projects.