HomeMy WebLinkAbout2021-09-28 e-packet@5:00Tuesday, September 28, 2021
5:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
TELECONFERENCE MEETING
Budget Standing Committee of the City Council
Special Meeting Agenda
September 28, 2021Budget Standing Committee of the
City Council
Special Meeting Agenda
TELECONFERENCE MEETING NOTICE
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE
GOVERNOR’S EXECUTIVE ORDERS N-29-20, N-63-20 AND N-08-21 ALLOWING FOR
DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT &
PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED
MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT
NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL
GOVERNMENTAL FUNCTION.
The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff
and the public while allowing for public participation.
Mayor Addiego, Councilmember Nicolas and essential City staff will participate via Teleconference.
PURSUANT TO RALPH M. BROWN ACT, GOVERNMENT CODE SECTION 54953, ALL VOTES
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Page 2 City of South San Francisco Printed on 9/29/2021
September 28, 2021Budget Standing Committee of the
City Council
Special Meeting Agenda
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Page 3 City of South San Francisco Printed on 9/29/2021
September 28, 2021Budget Standing Committee of the
City Council
Special Meeting Agenda
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MATTERS FOR CONSIDERATION
Motion to approve the Minutes for the meeting of August 19, 2021.1.
Study session regarding two Capital Improvement Projects (CIP) at Orange Memorial
Park; the Sports Field Project and Pool Replacement Project with recommended bond
funding strategies. (Sharon Ranals, Assistant City Manager, and Janet Salisbury,
Finance Director)
2.
Adjournment.
Page 4 City of South San Francisco Printed on 9/29/2021
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:21-747 Agenda Date:9/28/2021
Version:1 Item #:1.
Motion to approve the Minutes for the meeting of August 19, 2021.
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Call to Order. Time: 5:00 p.m.
Roll Call. PRESENT: Councilmember Nicolas and
Mayor Addiego.
AGENDA REVIEW
No changes
REMOTE PUBLIC COMMENTS
None
MATTERS FOR CONSIDERATION
1. Motion to approve the Minutes for the meeting of May 24, 2021.
Motion – Councilmember Nicolas / Second –Mayor Addiego: to approve the minutes. Councilmember
Nicolas submitted a minor correction to the minutes. The motion carried unanimously.
2. Overview of the South San Francisco Sewer Fund and structuring the next five-year sewer rate
plan. (Mike Futrell, City Manager, Janet Salisbury, Finance Director, and Brian Schumacker,
Plant Superintendent)
Plant Superintendent Schumacker introduced the item and provided an overview of the Sewer Fund,
current Sewer Rate Plan, Ten Year Sewer Rate History, Infrastructure Investments, and Five-Year Rate
Plan Scenarios. Sewer rates fund ongoing operation and maintenance and capital improvement projects
required to collect and treat wastewater. The City’s sewer rate was approximately 37% below the San
Mateo County average. Since Fiscal Year (FY) 2011-12, the City had only increased sewer fees by 3.5%
each year (on average) while making mandates and infrastructure maintenance needs. The City had
reduced or waived previously-adopted annual rate increases in two of the past five years due to savings
realized through operational efficiencies. The City shared some of those costs with partner agencies.
MINUTES
SPECIAL MEETING
BUDGET STANDING
COMMITTEE
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
THURSDAY, AUGUST 19, 2021
5:00 p.m.
Teleconference via Zoom
Housing Standing Committee conducted this meeting
in accordance with California Governor Newsom’s
Executive Orders N-25-20 and N-29-20 and COVID-
19 pandemic protocols.
SPECIAL BUDGET STANDING COMMITTEE MEETING AUGUST 19, 2021
MINUTES PAGE 2
Bartle Wells Associates (BWA) completed a comprehensive Sewer Rate Plan Study in 2021 and
developed five-year rate projections under two scenarios:
Recommended Scenario
2022-23 2023-24 2024-25 2025-26 2026-27
Maximum Increase 3% 3% 3% 3% 3%
Reduced Scenario
2022-23 2023-24 2024-25 2025-26 2026-27
Maximum Increase 2% 2% 2% 2% 2%
The maximum recommended 3% increase per year provided the following benefits:
• Generates an additional $4 million in sewer fund revenues over the next five years, providing
additional funding for capital needs while minimizing impacts to existing fund balance; and
• The compounding effect of the marginal increases over five years lends itself to continued low
rate increases in future years.
The most recent Comprehensive Annual Financial Report showed a sewer fund balance of approximately
$25 million. Both scenarios assumed a partial drawdown of fund balances for capital project funding
needed in upcoming years.
• The 3% maximum per year rate plan draws down approximately $5 million.
• The 2% maximum per year rate plan draws down roughly $8.4 million.
Under both scenarios, South San Francisco’s residential rates would remain among the lowest in San
Mateo County. Based on the BWA Sewer Rate Plan Study and the benefits mentioned, staff supported
the Recommended Scenario.
Mayor Addiego inquired how rainwater entered the sewer system. Plant Superintendent Schumacker
stated the City had a sewer system that is called a closed system. There were two methods that the water
finds its way into the system, 1) inflow, and 2) infiltration. Direct inflow was when the rainwater finds its
way into a manhole towards downspout from somebody that is connected. Infiltration was when
rainwater gets into the underground cracked pipes. As the rainwater gets through the soil it finds its way
into those pipes that are compromised and works its way into the collection system and mixes with the
sewage.
Mayor Addiego queried whether monies in the budget fund reserves had any benefits sitting there. Plant
Superintendent Schumacker stated the fund reserves were required by the loans. He advised that the loans
required roughly $12 million to remain unused and above $12 million are cashed assets.
Councilmember Nicolas inquired whether budget fund reserves could also be used towards needed
upgrades and how often were upgrades needed pertaining to California requirements. Plant
Superintendent Schumacker confirmed that fund reserves could also be used toward upgrades and
advised upgrades were needed about every 10 years.
Councilmember Nicolas queried the amount a commercial user pays over a residential user. Plant
Superintendent Schumacker stated commercial users could see an amount six to ten times higher than a
residential user. He added that on the residential side, it was a fixed amount, every resident is the same,
except for multifamily. The commercial side was based on flow and strength of the wastewater.
SPECIAL BUDGET STANDING COMMITTEE MEETING AUGUST 19, 2021
MINUTES PAGE 3
City Manager Futrell stated staff recommends a five-year sewer rate plan with maximum annual
increases of 3%. In any year, Council could come lower than 3% giving Council the flexibility to go as
high as 3%.
Mayor Addiego inquired about the amount the City of San Bruno contributes to the operation of the
sewer system. Plant Superintendent Schumacker advised San Bruno shared 25% of all the capital
improvement projects at the plant. They also shared roughly the same amount of all the operation and
maintenance costs.
Budget Standing Committee members recommended to increase the FY 2022/23 rate 2% and for the next
four years after could be up to the maximum 3%.
ADJOURNMENT
Being no further business Mayor Addiego adjourned the meeting at 5:43 p.m.
Submitted by: Approved by:
Gabriel Rodriguez Mark Addiego
Deputy City Clerk Mayor
Approved by the Budget Standing Committee: / /
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:21-746 Agenda Date:9/28/2021
Version:1 Item #:2.
Study session regarding two Capital Improvement Projects (CIP)at Orange Memorial Park;the Sports Field Project and
Pool Replacement Project with recommended bond funding strategies.(Sharon Ranals,Assistant City Manager,and
Janet Salisbury, Finance Director)
RECOMMENDATION
It is recommended that the City Council Budget Subcommittee consider and provide direction regarding
two Capital Improvement Program (CIP)projects at Orange Memorial Park,including potential
funding strategies:construction of a synthetic turf multi-use sports field,which has previously been
approved as a CIP project and is in the final design phase;and the proposed replacement of Orange Pool
with an Aquatic Center, possibly at a new location within the park.
BACKGROUND
The two projects at Orange Memorial Park which are the subject of this Study Session,a synthetic turf sports field and
the proposed replacement of the Orange Pool,are being considered together in this report since their construction could
occur within a similar time frame, and both involve significant funding commitments.
This report and presentation will discuss each project, including the following:
-Status of the Sports Field project, which was approved as a CIP project in 2018/19;
-Urgent need to replace the existing pool;
-Results of feasibility study exploring alternative locations for a new Aquatic Center;
-Cost comparison of constructing a new Aquatic Center at the current pool location versus a new
location;
-Recommended Aquatic Center location at the corner of Tennis Drive and West Orange Avenue;
-Aquatic Center design and construction process and timeline;
-Estimated project costs and cash flow needs over the anticipated
design/construction time frames;
-Forecast of anticipated Parks Impact Fees,which have traditionally been the primary funding source for
park projects; and
-Recommended combined bond funding for these projects.
Orange Memorial Park Sports Field Project
The Sports Field project will conserve water,provide for year-round play,significantly expand the number of
hours of play that can be scheduled,improve safety for players,and enhance the appearance and beauty of
Orange Memorial Park.The project was approved in the 2018/19 Capital Improvement Program and includes:
one adult /full size baseball field,one softball field,and two youth baseball fields;one adult soccer field,two
junior soccer fields,and four youth soccer fields.Amenities include synthetic turf,lighting and electronic
scoreboards,30 foot chain link backstops with netting,aluminum bleachers,a restroom/concession building,
bullpens, dugouts, batting cages, portable goals and fencing, and landscape enhancements.
Sports Field Project Duration and Timing of Expenditures
In November 2020,City Council awarded a contract to Verde Design to develop construction documents,
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In November 2020,City Council awarded a contract to Verde Design to develop construction documents,
bidding and construction observation services for the Sports Field project,which continues to track to a $14
million total budget.The project is scheduled to go out to bid in early 2022 with construction to begin in
spring 2022 to align with Engineering’s early-2022 projected completion of the Orange Memorial Park
Stormwater Capture Project.Based on this schedule,staff expects the sports fields to open in late summer
2023.
Orange Pool/Aquatic Center
Orange Pool is South San Francisco’s only indoor municipal swimming pool.Opened in 1970,it continues to
serve as a community-wide destination for residents of all ages.The pool,which prior to the COVID-19
pandemic of 2020/21 was in operation year-round,seven days a week,offers critical life-skill/safety learn-to
swim programs,recreation,fitness,therapy,health and wellness activities.A list of the programs offered at the
pool includes the following:
·Open recreational swimming - includes dedicated time slots for parents with babies or toddlers, adults
only (ages 18 years and up), all ages, and Friday Family Swim Nights;
·Sauna - adults 18 years and up;
·Lap swim - adults 16 years and up;
·Aqua-Zumba, aquatic exercise, and water aerobics (fitness exercise with music);
·Swimming lessons and classes for children and adults scheduled on a quarterly basis;
·Swimming lessons/recreational swim;
·Summer Camp programs for P&R and Boys and Girls Club;
·Red Cross lifeguard certification classes;
·Red Cross health and safety classes;
·Volunteer swim aide, instructor training;
·First responder rescue trainings;
·Private pool rentals;
·Co-sponsored competitive swim team, SSF Aquatics Club (SSFAC).
User Data/Number of Participants
Prior to COVID-19,over 100,000 visits were made to Orange Pool annually (including duplicated
individuals).The pool serves over 600 users per day during the summer,when program offerings are
expanded to serve the demand for more youth programming due to children being out of school for the
summer,and to serve swimming lessons and recreation swim offered through summer camp.During the fall,
winter,and spring there are approximately 325 swimmers daily when lessons are in session.When lessons
are not in session,which is about a two-week period between each quarter,the pool continues to serve
between 180-250 swimmers daily with lap swim and open recreation swim programs.
The average daily attendance of pool patrons by age group is as follows:
Age Group # Swimmers
Children 0 - 4 10 - 40
Youth 5 - 18 80 - 450
Adults 18 - 65 30 - 90
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Age Group # Swimmers
Children 0 - 4 10 - 40
Youth 5 - 18 80 - 450
Adults 18 - 65 30 - 90
Seniors 65 and up 40 - 60
Average daily attendance by program,which varies seasonally,is as follows:lap swim,40;adult recreation swim,50;
the SSF Aquatics Club,80;exercise classes,25;swim lessons,130 (290 summer);summer recreation swim (daily),140;
and weekend recreation swim, 70.
Program # Swimmers
Lap Swim 40
Adult Recreation Swim 50
SSF Aquatics Club 80
Exercise Classes 25
Swim Lessons 130 (290 summer)
Summer Recreation Swim (daily)140
Weekend Recreation Swim 70
Prior to the pandemic,public demand for aquatic programs has grown year over year,well beyond the
pool’s capacity.There were a total of 4,124 spaces requested on waiting lists for swimming classes and
programs in 2019,which represents 1,112 unduplicated individuals,many of whom were on multiple
waiting lists.
Annual Maintenance Costs
Operational costs are approximately $150,000 -$200,000 per year in personnel and materials for
maintenance of the pool systems,not including daily custodial work,which is approximately an additional
$50,000 per year.This does not include periodic capital improvement costs for various repairs that have
been made over the years,such as replacing the pool’s plaster and ceramic tile bottom,locker and fixture
replacement,HVAC system,etc.However,budget requests in recent years for significant renovations have
not moved forward, pending a decision on the future of the building.
Facility Description/Existing Conditions
The one-story building has a floor area of approximately 11,500 square feet,and contains a lobby,a 25-yard
long six-lane swimming pool,locker rooms,staff offices,and mechanical room.Constant maintenance and
ongoing repairs have certainly been made during the pool’s 51-year history,and much effort is expended to
keep the pool as functional and pleasant as possible.However,high humidity,chlorine vapors,and heavy
public use create a very harsh environment.Since its construction,the facility has not undergone any major
rehabilitation.Today,the deteriorated condition is obvious upon even casual observation.Issues include
crumbling and worn finish materials,dry-rotted wood,rusting steel structural and non-structural elements,
deteriorated light fixtures,cracked,uneven and sometimes slippery floors,corroded aluminum window sashes,
and large expanses of non-safety glass.Nearly every architectural element and mechanical/electrical system
in the pool is due for replacement, except for the filters, which were recently replaced.
In recognition of these conditions,and the fact that the typical life expectancy of an indoor aquatic facility is 40
-50 years,a professional feasibility study was conducted in 2016 by Marcy Wong Donn Logan Architects.Due
to the size of the document,it has not been attached to this report,but is available for review in the City
Council office.The study’s conclusions,architectural concept design studies,and preliminary rough-order-of-
magnitude (ROM)opinions of probable costs are based upon findings from a number of sources,including
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magnitude (ROM)opinions of probable costs are based upon findings from a number of sources,including
industry experts.Interviews were taken with Parks and Recreation personnel and other city staff.Comments
were solicited and documented at several public forums.Input from Orange Pool users and community
members was taken via survey forms.Multiple site visits were made by the consultant team for the purpose of
technical condition assessments of the existing facility,and remediation recommendations.The existing
facility’s spatial layout and square foot areas were assessed.A space program for a renovated or new pool was
developed based on all of these sources.
The consultant team examined all structural and architectural systems,including mechanical,lighting,
plumbing,floor and wall finishes,water treatment systems,and windows and glazing.The report confirms
that the building’s design and construction are typical of the late 1960’s to early 1970’s.By today’s standards,
Orange Pool’s architectural,structural and other building systems are significantly below current building
code requirements and building owner expectations for seismic resistance,energy efficiency,water efficiency,
indoor air quality and comfort,architectural lighting,room acoustics,ADA accessibility,daylight control,
sustainability,and a range of family/user accommodations.The existing facility is not compliant with
California Title 24 and federal ADA requirements for accessibility and energy efficiency.The building design
is well over a dozen code editions behind current applicable building code standards.
Typical of 1970’s construction,the building is not energy efficient.The exterior curtain walls and storefronts
have the original single glazed windows in aluminum frames.The majority of the building is comprised of
uninsulated CMU walls and concrete slab floors.The building’s lighting and electrical systems,mechanical
units and plumbing systems do not meet current water and energy conservation standards.
Timing for Replacement
Despite the City’s attentive custodianship of the building,overall,the building’s age and heavy use have
resulted in very worn condition of the shell and interior.As noted previously,virtually every observable
component and system named above is part of the original construction and is well beyond the point of
meriting replacement.
Based on a recent review of the feasibility study,and the known condition of systems in place to date,staff
expects the facility will need to be closed within the next 0 to 5 years unless there is significant capital
investment or wholesale replacement.
Prior to COVID,Orange Pool was used seven days per week,year-round,with the exception of annual
maintenance closures,typically for two to three weeks in December.Understanding the great community
benefit provided to residents of all ages,abilities,socio-economic backgrounds,and ability to pay for
programs,the City subsidizes aquatics programs,and has adopted affordable and inclusive fees.The Parks and
Recreation Department also maintains a donation-backed scholarship fund to provide financial assistance to
those unable to pay full fees,and works with customers as much as possible to avoid turning anyone away if
unable to afford full fees.In addition to its adult and youth learn to swim and fitness programs,the pool has a
large senior aquatic therapeutic and fitness program.
Location Options for Aquatic Center Replacement
In April 2021 staff presented to the Budget Sub-Committee the Wong and Logan Feasibility Study with
recommendation of the construction of a new two-pool facility.In May 2021 staff engaged Group4 Architects
from the City’s on-call architecture firm list to explore alternative Aquatic Center locations within Orange Park
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from the City’s on-call architecture firm list to explore alternative Aquatic Center locations within Orange Park
and validate construction costs.
Working from the two-pool facility approach identified in the Wong and Logan study,Group4 refined the
program to include an 8-lane/25-meter pool,separate teaching pool,swimmer’s lounge,rentable multi-
use/party room,staff and pool director offices,locker rooms and support spaces for mechanical equipment
within a 28,500 SF single-story facility.
With input from staff and Callander Associates,the consultant developing the Orange Park Master Plan,
Group4 assessed Orange Memorial Park to identify six (6)alternative pool locations.See Attachment 2,Site
Options.Using an evaluation matrix that considered the facility,site,capital costs and operational costs for
each of the 6 alternative locations as well as the current location were evaluated by staff.
The corner of Tennis Drive and West Orange Avenue was identified as the best alternative location for a new
facility for several reasons:
1.Comparable cost to current location;
2.Offers high visibility to those passing by and entering the park;
3.Convenient access with connection to both West Orange Avenue and Tennis Drive;
4.Opportunity to utilize the existing parking lot north of Tennis Drive;
5.Good solar orientation with a wall of glass to the South and views across the lawn;
6.Synergy between park buildings and elements;
7.Opportunity to relocate the Veterans Memorial into an accessible plaza space;
8.Minimal disruption to operations anticipated, phased construction will allow the existing pool to remain
operational during construction of new facility with minimal closure due to move, commissioning and
training.
Attached to this report is a diagrammatic plan of the building,plaza and parking layout along with a
conceptual rendering of the Aquatic Facility.A new facility could be designed to complement the architecture
of the Fernekes Recreation Building, and create a campus feel to this quadrant of the park.
Aquatic Center Project Duration and Timing of Expenditures
With a projected total project budget of $33.75 million,including escalation of 4%per year to mid-
construction of Q3 2023,the overall project cost would be similar for a new facility were it to be constructed
in the existing location or at the proposed Tennis Drive and West Orange Ave.location.Staff anticipates a
preliminary project timeline as follows:
Programming and Planning July 2021 - March 2022
Design April - December 2022
Bid January - March 2023
Construction April 2023 - September 2024
Close-Out October - December 2024
If City Council directs staff to move forward with design of a new facility in October 2021,a new Aquatic
Facility could open early 2025.With construction of the facility at a new location,the existing pool facility
could remain open,allowing for uninterrupted aquatic service to the community.Upon completion of
construction of a new pool facility the existing pool facility would be demolished and a parking lot
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construction of a new pool facility the existing pool facility would be demolished and a parking lot
constructed in its place.
FUNDING STRATEGIES
The above project(s), if approved by Council, require a comprehensive funding plan.
Parks Impact Fees
Parks Impact Fees can provide partial funding for these projects.Authorized by the Mitigation Fee Act
(Government Code 66000,et seq.),the City of South San Francisco imposes impact fees on new development
projects in order to mitigate the impacts caused by new development on public services.While the City has a
number of impact fees,the impact fees related to parks consists of two separate categories:Park Construction
Fee and Parkland Acquisition Fee (together, the “Parks Impact Fee”).
The following is the available unappropriated Parks Impact Fee fund balances as of June 30, 2021:
Parks Construction:$5,171,284
Parks Acquisition:$ 561,161
TOTAL Available:$5,732,445
The following table shows the projected Park Impact Fee revenues over the next five fiscal years (“FY”) based
upon the development projects that are expected to be completed:
Table 1: Five Year Parks Impact Fee Projection through FY2025-26
FY Estimated Revenue*
21-22 $ 4,278,364
22-23 $ 3,664,986
23-24 $ 3,640,800
24-25 $ 4,701,362
25-26 $ 7,322,383
*Estimated based on current forecast of development environment; subject to change.
While the above revenues are dependent upon the size,scale and timing of the private developments
throughout the City,based upon current forecasts,it is expected that an additional $23.6 million may be
available by June 30,2026.With the $5.7 million already available in the Parks Impact Fee Funds,that is an
estimated total of $29.3 million in Park Impact Fees.
Park Impact Fees for Aquatic Center and Sports Field Improvements
At the April study session earlier this year,Council expressed an interest to pursue both the Orange Memorial
Park Aquatic and Sports Field Improvements.The expected total cost for both the Aquatic Center and Field
Projects (“Projects”) is $48 million:
Sports Field Project:$ 14,000,000
Orange Pool Project:$ 34,000,000
Total Capital Need:$ 48,000,000
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Version:1 Item #:2.Sports Field Project:$ 14,000,000
Orange Pool Project:$ 34,000,000
Total Capital Need:$ 48,000,000
For the $14.0 million Sports Field Project,we already know that a $1.7 million Caltrans grant is available
stemming from the Storm Water project that is already underway.Therefore,the estimated net capital need to
fund both projects is $46.3 million:
Sports Field Project: $ 14,000,000
Less Caltrans Grant:($ 1,700,000)
Orange Pool Project: $ 34,000,000
Total Capital Need: $ 46,300,000
A possible funding source for a portion of the Sports Field and Orange Pool Projects is Parks Impact Fees,
which is discussed in the previous section.There is $5.7 million of unencumbered cash in the fund,plus the
expectation that the completion of development projects will add an additional $23.6 million over the next
five years,for a combined total of $29.3 million ($5.7 million plus $23.6 million).However,there are three
key considerations/risks to the use of the Parks Impact Fees:
1.Revenue Risk.Impact Fees,in general,are a notoriously unreliable revenue source as the timing of the
collection is fully dependent upon the developer.If the development project is halted for any reason,
there is real risk that the City may not realize the anticipated revenue.Relying on the availability of all
$29.3 million to fund all of the Sports Field and a portion of the Orange Pool Project may risk the
completion of the project itself if monies are not available.
2.Timing Considerations.The Sports Field Project is slated to be completed in summer/early fall of
2023,with the aquatic facility,if approved,to be completed by the end of 2024.Based upon the impact
fee projections,only $17.3 million is expected to be available by the fall of 2024 between the $5.7
million already available in the fund plus the projections in years one through three (FY 21-22 through
FY 23-24).Even if Council elected to fully fund just the Sports Field on a pay-as-you-go basis from
the Parks Impact Fees,there may be a mismatch between when bills need to be paid and when
revenues are collected.
3.Other Parks Projects.By committing all of the near-term availability of the Parks Impact Fees
towards these two projects,capital work for other parks projects,like those identified under Parks 11,
may need to be delayed.
Measure W Lease Revenue Bonds for Aquatic Center and Sports Field Improvements
Given the above,the sale of a third tranche of Measure W Lease Revenue Bonds may be the best option to
guarantee that funding is fully in place to ensure the successful completion of both projects.
As the Budget Subcommittee members are aware,the City issued the first tranche of Lease Revenue Bonds in
March 2020 to finance the Police Station.The City issued the second tranche of Lease Revenue Bonds in June
2021 to finance the (a)Library,Parks and Recreation (LPR)Building;(b)Streets Program,and (c)solar roofs
for LPR and the Corp Yard.
The chart below shows a projection of Measure W revenues against all known existing expenditure
obligations.
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Chart 1: Measure W Revenues vs. Current Debt Service
Through FY 2023-24,the difference between Measure W revenues and expenditures (represented by the striped
green bar)is reserved and will be used towards the Civic Campus project.However,after FY 2023-24,the City
does have the financial capacity to absorb the debt service of a third bond financing.Given the $48 million cost
for both Projects, the following is the current funding recommendation:
Lease Revenue Bond Proceeds (Series
2022A - 3rd Tranche)
$ 41,000,000
Parks Impact Fee $ 5,300,000
Caltrans Grant $ 1,700,000
Total Capital Need for Projects:$ 48,000,000
The allocation of $5.3 million from the already available Parks Impact Fees would allow the project team to
have enough cash flexibility in the early stages of the Projects as it awaits the issuance of the third tranche of
Lease Revenue Bonds, which would be issued in summer/fall of 2022, if approved.
The following chart shows the projection of Measure W revenues against all expenditures obligations,
including the proposed third tranche of Lease Revenue Bonds:
Chart 2: Measure W Revenues vs. Current Debt Service and Proposed 3rd Tranche
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As shown above,Measure W revenues are expected to exceed any debt service obligations,even with the
issuance of another $41 million of debt,with enough of coverage (revenue to debt service)ratio.The
following table shows the detailed numbers through the next 10 fiscal years:
Table 2: Measure W Revenues vs. Total Debt Service through FY 2030-31
1 Assumes 1.00% growth in sales tax receipts from FY 2021-24 and 3.00% growth rate thereafter.
2 Assumes all-in total interest cost of 3.00% with 1st amortization in FY 2024-25.
Staff would work to refine the numbers above to adjust to the capital markets conditions should the City
Council decide to move forward with the discussed capital projects.
CONCLUSION
The two park and recreation assets described in this report,the Orange Park baseball/softball field,and the
Orange Pool,have served the community extremely well,providing recreation,fitness,and wellness
opportunities for thousands of residents for decades.Both are now well beyond their useful lives,and exhibit
all of the challenges that come with antiquated resources.This includes insufficient capacity for a growing
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all of the challenges that come with antiquated resources.This includes insufficient capacity for a growing
population,high maintenance and repair costs,safety concerns,ADA issues,poor energy and water efficiencies,
and poor aesthetics.
Although it would be possible to construct the Sports Field project alone using Park Impact Fees,current
economic conditions make the timing of development projects and the receipt of impact fees uncertain.Staff
recommends the sale of approximately $41 million of Lease Revenue Bonds,which would allow the City to
fund both the Aquatics Center and Sports Field Projects.This would provide financial certainty that the funds
will be available when needed.Addressing both of these needs at the same time is an extraordinary opportunity
to create safe,modern,efficient,environmentally sustainable,functional,and beautiful public assets that will be
transformative for Orange Memorial Park,and which will serve South San Francisco residents for generations
to come.
Attachments:
1.Presentation for City Council Study Session
2.Site Options
3.Preferred Site Option Plan
4.Preferred Site Option Rendering
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Orange Memorial Park
Aquatic Center
Budget Sub-Committee
Tuesday, September 28, 2021
Pool Feasibility Study 2017
Scenarios
A -Renovate the Existing Facility: $10,522,275 (2017)
B -Construct a Separate New Warm Pool Facility: $21,380,835 (2017)
C -Construct a New Two-Pool Facility: $22,363,600 (2017)
April 2021 -Budget Sub Committee Presentation
Construct a New Two-Pool Facility: $22,363,600 (2017)
Explore Alternative Pool Location
Group4 Architects
BACKGROUND
3
GROUP 4 ARCHITECTURE RESEARCH + PLANNING
Prepare a focused Feasibility Study to explore alternative locations
for the Orange Memorial Park Swimming Pool Facility
4
SITE PLAN
Site Boundary
Parking Lots
Playground
Existing Orange Pool
Recreation Building
Tennis Courts
Skate Park
Basketball Courts
SITE PLAN
5
5
3
1
4
6
2
Existing Playground
Tennis / Orange
Artists’ Studios
South End of Parking Lot
1
2
4
5
North End of Parking Lot3
Mazzanti Property6
Current locationE
E
SITE OPTIONS
6
CURRENT LOCATION TENNIS / ORANGE
EXISTING
PLAYGROUND
NORTH PARKING
LOT
SOUTH PARKING
LOT
EXIST ARTIST
STUDIO
MAZZANTI
PROPERTY
FACILITYOPERATIONS –o +–o +–o +–o +–o +–o +–o +
SYNERGY –o +–o +–o +–o +–o +–o +–o +
FLEXIBILITY –o +–o +–o +–o +–o +–o +–o +SITEVISIBILITY –o +–o ++–o +–o +–o +–o +–o +
PLACEMAKING –o +–o +–o +–o +–o +–o +–o +
ACCESS –o +–o +–o +–o +–o +–o +–o +
PARKING –o +–o +–o +–o +–o +–o +–o +
COMMUNITY IMPACT –o +–o +–o +–o +–o +–o +–o +
SITE SOLAR ORIENTATION –o +–o +–o +–o +–o +–o +–o +
FIT/ UTILIZATION –o +–o +–o +–o +–o +–o +–o +OTHERCOMMENTS
Factor in expense of
replacing playground
in a new location
Takes away parking
and needs to be
placed at another
location
Takes away parking
and needs to
be placed at
another location
E
EVALUATION CRITERIA
7
POOL + NATATORIUM
MULTIPRURPOSE
ROOMS
LOBBY
STAFF
LOUNGE + SUPPORT
BUBBLE DIAGRAM
8
2017 STUDY
9
P
Memorial
PREFERRED SITE OPTION: FINAL PHASE -ROOF
10
2021 SITE OPTION
11
•Create landmark, strengthen civic presence
•Synergy between park buildings and elements
•Relocation of sculpture and memorial
•Minimal disruption to operations anticipated, phased construction will
allow existing pool to remain operational during construction of new facility
with minimal closure due to move, commissioning and training
PREFERRED OPTION: ADDITIONAL CONSIDERATIONS
12
PRECEDENT IMAGES
13
PRECEDENT IMAGES
14
PRECEDENT IMAGES
15
Overall Project Schedule
Programming and Planning July 2021 –March 2022
Design April –December 2022
Bid January –March 2023
Construction April 2023 –September 2021
Close-Out October –December 2024
Programming and Planning Schedule
Budget Sub-Committee September 2021
City Council Study Session October 2021
Selection of Architect November –December 2021
Preliminary Design & Outreach January –March 2022
SCHEDULE
16* Similar construction budget for new building at existing site or corner of Tennis/Orange Ave
PROJECT BUDGET
Orange Pool Building (28,500 SF) Hard Costs
(Includes demoloition, furniture, fixtures, equipment, signage, technology)$18,316,980
Hard Costs Contingency $2,683,020
Site Costs
(Includes site preparation, hardscape and landscape, parking)$1,526,250
Site Costs Contingency $273,750
Soft Costs $7,500,000
Project Budget
(08/2021)$30,300,000
Total Project Budget $33,756,000*
17
▪Mitigation Fee Act →Parks Impact Fees
▪Total Parks Impact Fee Available (6/30/21) = $5.73 million
➢Parks Construction = $5.17 million
➢Parks Acquisition = $0.56 million
▪5-Year Forecast for Parks Impact Fees
▪Projected $29.3 million by June 30, 2026
▪Subject to Development Risk
Fiscal
Year
Estimated Park
Impact Fee
21-22 $ 4,278,364
22-23 $ 3,664,986
23-24 $ 3,640,800
24-25 $ 4,701,362
25-26 $ 7,322,383
PARK IMPACT FEE & PROJECT COSTS
18
▪Sports Field Project
➢Considerations
–Projected Cost = $14 million
–Timing = Project Completion by Summer/Fall 2023
▪Orange Memorial Aquatic Center
➢Considerations
–Projected Cost = $34 million
–Timing = Project Completion by Fall/Winter 2024
▪Sports Field + Aquatic Center
➢Total Cost = $48 Million
➢Funding Recommendations
–Measure W Lease Revenue Bonds ($41 million)
–Parks Impact Fee ($5.3 million)
–Caltrans Grant ($1.7 million)
PROJECT COSTS AND CONSIDERATIONS
19
▪Voters approved Measure W ½ cent Sales Tax in 2015
▪Measure W revenues and expenditures outside of General Fund
1
9
Fiscal Year Ended 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
REVENUES $1,493,425 $8,886,653 $11,162,238 $12,644,947 $11,704,090 $13,379,292
EXPENDITURES
Civic Campus 211,992 382,776 4,925,872 8,793,377 10,255,536 16,440,209
Street Paving Program -495,162 4,122,270 1,189,851 127,882 949,678
Debt Service ----407,156 2,767,200
Payroll -----267,867
TOTAL EXPENDITURES $211,992 $877,938 $9,048,241 $9,983,229 $10,790,573 $20,424,954
Revenues Less Expenditures $1,281,433 $8,008,716 $2,113,996 $2,661,719 $913,518 -$7,045,662
FUND BALANCE $1,281,433 $9,290,149 $11,404,145 $14,065,864 $14,979,381 $7,933,719
OVERVIEW OF MEASURE W
20
Month FY 2019-2020 FY 2020-2021 Difference
July $ 930,148 $ 1,025,771 $ 95,623
August 1,450,260 1,527,732 77,472
September 821,445 498,476 (322,969)
October 958,425 1,017,094 58,669
November 1,056,673 1,389,937 333,264
December 1,239,905 932,921 (306,984)
January 790,642 885,528 94,886
February 1,186,204 1,424,181 237,977
March 713,987 870,466 156,479
April 714,606 924,602 209,996
May 1,397,081 1,507,996 110,915
June 444,714 1,374,588 929,874
TOTAL $ 11,704,090 $ 13,379,292 $ 1,675,202
MEASURE W FUND MONTHLY REVENUE COMPARISON
21
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
FY19 Measure W Receipts = $12.6 million
FY20 Measure W Receipts = $11.7 million
Estimated FY21 Measure W Receipts = $13.3 million
Civic Campus Cash
Expenditures
SERIES 2020A –POLICE STATION DEBT SERVICE
SERIES 2021A Bonds Principal
Measure W Projected
Revenues
SERIES 2021A Bonds Interest
MEASURE W CASHFLOW (REVENUE LESS EXPENDITURE)
22
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
FY19 Measure W Receipts = $12.6 million
FY20 Measure W Receipts = $11.7 million
Estimated FY21 Measure W Receipts = $13.3 million
Civic Campus Cash
Expenditures PROPOSED SERIES 2022A Bonds –Estimated Debt Service
SERIES 2021A Bonds Principal
Measure W Projected
Revenues
SERIES 2021A Bonds Interest
MEASURE W CASHFLOW (REVENUE LESS EXPENDITURE)
23
Date Estimated Sales Tax
Receipts
(Measure W)1
Series 2020A:
Debt Service
(Police Station)
Series 2021A:
Debt Service
(LPR, Street Paving,
Solar Roofs)
PROPOSED
Series 2022A:
Debt Service
(Ballfield and Pool)2
Remaining
Measure W Funds
Debt Service
Coverage Ratio
6/30/22 $ 13,513,085 $ 2,765,450 $ 5,522,383 -$ 5,225,252 1.63x
6/30/23 13,648,216 2,766,450 5,523,000 -5,358,766 1.65x
6/30/24 13,784,698 2,764,950 5,521,800 -5,497,948 1.66x
6/30/25 14,198,239 2,765,950 5,522,200 2,544,700 3,365,389 1.31x
6/30/26 14,624,187 2,764,200 5,524,000 2,543,100 3,792,887 1.35x
6/30/27 15,062,912 2,764,700 5,522,000 2,543,500 4,232,712 1.39x
6/30/28 15,514,799 2,762,200 5,526,200 2,541,200 4,685,199 1.43x
6/30/29 15,980,243 2,764,800 5,521,200 2,543,600 5,150,643 1.48x
6/30/30 16,459,651 2,765,200 5,519,200 2,544,000 5,631,251 1.52x
6/30/31 16,953,440 2,763,400 5,523,800 2,542,300 6,123,940 1.56x
1 Assumes no growth in sales tax receipts from FY 2021 –2024 and 3.00% CAGR thereafter
2 Assumes all-in true interest cost of 3.00%.
PROJECTED CASHFLOW DETAIL
24
CONCLUSION/SUMMARY
•Possible to fund Sports Field with Park Impact Fees
•Current economic climate makes timing of Impact Fees uncertain
•50+ year old pool beyond useful life
•Extraordinary opportunity to provide two legacy projects
•Measure W Revenues expected to safely exceed debt service obligations
•Staff recommends sale of $41M Lease Revenue Bonds
THANK YOU
26
CURRENT
LOCATION TENNIS / ORANGE
EXISTING
PLAYGROUND
NORTH PARKING
LOT
SOUTH PARKING
LOT
EXIST ARTIST
STUDIO
MAZZANTI
PROPERTY
CAPITAL COSTSCOST
DIFFERENTIATORS
▪Replace existing
parking (22
spaces)
▪Relocate
sculpture and
memorial
▪Replace existing
playground
▪Potentially
relocate sewer
line
▪Replace existing
parking (Approx.
50 spaces)
▪Replace
existing parking
(Approx. 50
spaces)
▪Additional
parking
required,
because of
distance to
existing lots
▪Additional
parking
required,
because of
distance to
existing lots
$$$$$$$$$$$$$$$$$$$$$$$$$$ $
CONSTRUCTION –o +–o +–o +–o +–o +–o +–o +
PHASING –o +–o +–o +–o +–o +–o +–o +OPERATIONALCOSTCOST –o +–o +–o +–o +–o +–o +–o +
INTERRUPTION OF
SERVICE
–o +–o +–o +–o +–o +–o +–o +
COMMENTS
E
EVALUATION CRITERIA
27
DRAFT PROGRAM QTY SF/ SPACE PROPOSED SF
1 ENTRY 800 SF
1a Lobby 1 550 SF 600 SF
1b Reception 1 250 SF 200 SF
2 MULTIPURPOSE ROOM 2,100 SF
2a Rentable Multi-use/Party room 1 2,100 SF 2,100 SF
3 AQUATICS 15,980 SF
5a 8-Lanes 25 yd. lap pool 1 5,025 SF 5,025 SF
5b Teaching pool 1 2,400 SF 2,400 SF
5c Deck 1 7,755 SF 7,755 SF
5d Swimmer's Lounge 1 800 SF 800 SF
4 STAFF 740 SF
6a Staff + Pool Director Offices 1 740 SF 740 SF
5 SUPPORT SPACES 4,905 SF
Men’s and Women’s locker rooms, Family restroom, showers, Lobby restroom, Staff restrooms,
Pool storage, Pool mechanical room, Building mechanical room, Electrical room
8 NON-ASSIGNABLE 3,475 SF
TOTAL 28,500 SF
PARKING 11 Spaces
Additional spaces needed 16,718 SF 56
Excess Parking on Site (45)
PROGRAM
7
5
3
14
6
2
Existing Playground
Tennis / Orange
Artists’ Studios
South End of Parking Lot
1
2
4
5
North End of Parking Lot3
Mazzanti Property6
Current locationE
E
SITE OPTIONS
14
P
Memorial
PREFERRED SITE OPTION: FINAL PHASE -ROOF
15
2021 SITE OPTION