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HomeMy WebLinkAboutItem 4d: Dana Middle School Joint Use Gymnasium ProjectSTAFF REPORT Recreation and Community Services Department DATE: September 15, 2009 TO: Mayor and City Council ~S FROM: Sara Somogyi, Director of Recreation and Community Services SUBJECT: DANA MIDDLE SCHOOL JOINT USE GYMNASIUM PROJECT UPDATE Recommended Action: Provide direction SUMMARY In April 2006, the City and the Arcadia Unified School District (AUSD) received a State grant to fund the construction and operation of a gymnasium at Foothills Middle School. Unfortunately, this site was abandoned because a geological evaluation revealed that the proposed location of the gymnasium at Foothills Middle School was located on or near an active earthquake fault line. Due to the need for a community gymnasium in Arcadia, on January 15, 2008, the City Council agreed to reapply for a new State grant with AUSD to construct a joint use gymnasium at Dana Middle School. AUSD put together the application and submitted the project to the State on behalf of both AUSD and the City. At this time, the District is awaiting confirmation from the State that the project has received funding. In January 2009, the design of the gymnasium was submitted to the Division of the State Architect (DSA) and staff has been informed that DSA has approved the plans. District staff has informed City staff that they might want to move forward in bidding the project before hearing whether we were awarded the grant. The District feels that the current bidding environment would be favorable and that the project would most likely come in under the engineer's estimate. City staff felt that it was necessary to inform the City Council of the District's intentions prior to giving the District our approval. DISCUSSION In the past, the City of Arcadia and AUSD have jointly pursued State grant funding for joint use projects to enhance and build facilities for educational and recreational activities. The most recent cooperative project began in April 2006 for a joint use gymnasium at Foothills Middle School. However, during the application process, it was determined that Foothills Middle School was not a viable location because a geological evaluation revealed that the school was on or near an earthquake fault line. It was then agreed by the City Council and AUSD re-apply for a new grant to fund the joint-use gymnasium for the new location at Dana Middle School. In January 2008, the District reapplied to the State for SB Prop 50 grant funds for the new gymnasium at Dana Middle School. At this time, the District is awaiting final confirmation that the project will receive funding. Similar to past grants, the State will contribute up to fifty (50) percent of the approved project costs, not to exceed one million five hundred thousand ($1,500,000) for building construction. The City and the District wiN -equally share the remaining costs, if the funding is approved. The estimated cost of the Project, including both soft costs and hard costs, is $5,500,000 and therefore the estimated financial contribution for the City will be two million ($2,000,000) dollars (the City Council appropriated $2 million for the project, which was $500,000 more than earlier estimates). However, the current bidding environment is very favorable and the project could come in lower than the estimated cost. In January 2009, final design of the gymnasium was presented to the Arcadia City Council, Arcadia Unified Board of Education and the Recreation and Parks Commissioners with no objects. It was also submitted to the Department of State Architect (DSA), who are responsible for providing design and construction oversight for schools. The design of the Dana Middle School Joint Use Gymnasium has been approved by the DSA. The District would like to now bid the project and it is anticipated that construction will begin November 2009 and completed November 2010. When the construction of the gym is completed, the City and AUSD will equally share in all costs associated with maintaining and operating the gymnasium. The proposed joint use gymnasium will be approximately 8,000 square feet with integrated restroom facilities, storage rooms, office and ancillary spaces. It will have six (6) basketball hoops and a wood floor with plates to allow poles to be set up for volleyball, badminton, and other net sports. The City will have exclusive use of the gymnasium from 5:00 p.m. until 10:00 p.m. on weekdays and from 7:00 a.m. until 10:00 p.m. on weekends and holidays when school is not in session. Conversely, the District will have exclusive use of the gymnasium for students on days that school is in session from 7:00 a.m. until 5:00 p.m. There are two concerns with proceeding with the project before final approval of the grant. First, if the project commences construction before final approval of the grant, would grant funding be jeopardized? With some grants, a requirement is that no funds, even local, can be expended prior to start of construction. The second concern is that with the state fiscal crisis, is there a possibility that the state will ultimately not approve the grant? If that should occur, the project could face a potential $1.5 million shortfall, and based on the 50/50 sharing agreement, the City could be faced with a $750,000 added appropriation. District staff has indicated that neither scenario should be a problem; however City staff has not received anything in writing confirming this position so there is concern that the City's cost could be higher if the grant is not approved. RECOMMENDATION Staff is requesting direction from City Council on whether to proceed if the concerns raised cannot be resolved. APPROVED: ,err-s-4;'L M.+•~ Donald Penman, City Manager