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Report regarding a resolution approving a budget amendment appropriating $1,800,000 from the 2022A Bond Interest Fund in fiscal year 2026-27 to the Orange Memorial Park Aquatic Center Project (Project No. pk2310) (Philip Vitale, Deputy Director of Capital Projects)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving a budget amendment (Budget Amendment number to be supplied) appropriating $1,800,000 from the 2022A Bond Interest Fund to the Orange Memorial Park Aquatic Center Project (pk2310), increasing the total project budget from $49,852,792 to $51,652,792.
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BACKGROUND/DISCUSSION
The Orange Memorial Park Aquatic Center Project (pk2310) includes construction of a new aquatic facility at Orange Memorial Park. The project’s original budget was $49,000,000. As part of the adopted fiscal year 2026-27 Capital Improvement Program, the City increased the project budget by $852,792 using unspent bond proceeds from the Orange Memorial Park Sports Field Project (pk2309), for a current approved project budget of $49,852,792. On February 29, 2024, the City Council awarded the construction contract to Wickman Development & Construction (Wickman), and construction began in April 2024. The project is being delivered in two phases. Phase 1 is construction of the new aquatic facility. Phase 2 is demolition of the existing pool building and completion of remaining site improvements including parking-lot, landscape, and the Veterans Memorial.
Early in construction, the project experienced delays associated with permitting and unforeseen geotechnical conditions, as previously reported to the City Council. The construction schedule has since extended further. This has resulted in extended general conditions costs, additional construction management and consultant support, and change orders for added scope and for clarifications to the construction documents. Extended general conditions costs to date have been absorbed within the existing project budget.
The requested $1,800,000 appropriation will apply as follows:
Item Amount
Potential and unknown change order contingency $1,400,000
Soft cost/project costs $400,000
Total Requested Appropriation $1,800,000
The change order contingency amount covers pending change orders and potential future change orders as construction moves into Phase 2 demolition and remaining site improvements, where unforeseen conditions may arise. The soft cost/project cost covers extended construction management, consultant, and other project support costs through completion. Staff does not necessarily expect the full amount to be spent. Any unused funds will be returned to the Bond Interest Fund at project closeout.
Opening of the new aquatic facility is anticipated in early 2027, with full project completion, including Phase 2, anticipated in spring 2027. Staff will continue to review all change orders and consultant requests for scope, merit, and cost reasonableness, and will continue to enforce the terms of the construction contract.
FISCAL IMPACT
Approval of this budget amendment will appropriate $1,800,000 from the 2022A Bond Interest Fund to the Orange Memorial Park Aquatic Center Project, increasing the total project budget from $49,852,792 to $51,652,792. The Aquatic Center is an eligible project under the 2022A bond issuance, and interest earnings on bond proceeds must be used for eligible capital projects. This action uses existing interest earnings, does not require new bond proceeds, and has no impact on the General Fund. Approximately $6,000,000 in bond interest is currently available. Following this appropriation, approximately $4,200,000 will remain.
Because of the Workday implementation and data conversion blackout period, the budget amendment number will be assigned after data conversion is complete.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
This action supports the “Welcoming and Connected Community” major focus area through continued partnerships and advance policies related to youth, families, and seniors. Completing construction of the Orange Memorial Park Aquatic Center will give South San Francisco families, youth, and seniors a modern, accessible, year-round aquatic facility. It will host learn-to-swim and water safety instruction, recreation and fitness programs, therapy and senior aquatics, and other wellness activities.
ASSOCIATED DOCUMENTS
Resolution 26-2351