NEAR TERM PLANNING FOR CAPITAL PROJECTS

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Conejo Recreation & Park District GENERAL MANAGER Jim Friedl DATE: September 7, 2017 TO: Board of Directors FROM: Jim Friedl, General Mana eAPITAL SUBJECT: NEAR TERM PLANNING PROJECTS BOARD OF DIRECTORS George M. Lange, Chair Susan L. Holt, Vice Chair Joe Gibson, Director Ed Jones, Director Chuck Huffer, Director GENERAL MANAGER EMERITUS Tex Ward As we begin the 2017/18 Fiscal Year in earnest, it seems appropriate to provide an overview of some of the financial challenges staff has identified. While the improved economy helps CRPD in other ways, staff finds that the capital projects we have put out to bid are coming in higher than we expected, in some cases materially so. On tonight's agenda, staff recommends reprogramming $450,000 from two other budgeted capital projects, as well as using $25,000 of the $102,000 available of the $2 million unrestricted resources the board had approved in 2016 for upcoming capital projects, to provide sufficient funding to award the lowest bid for the Banyan Neighborhood Park project. Also tonight, staff recommends the Board reject the dog park bids and that the rebid be in two pieces, which will allow staff to assess priorities for the project and review availability of funding for Installation of parts or the complete project. While Sapwi Trails Community Park bids are within range of the engineer's cost estimate, additional funds need to be appropriated to cover contingency, and related fees; additionally, miscellaneous construction by others and some Lang Creek clean-up and remediation work which was (intentionally) not included in the scope of work for the Sapwi Trails project. As the economy has continued to improve from the Great Recession, there seems to be more private - sector construction and development projects underway, and in the very near future, the State of California and many cities will really ramp -up public works transportation infrastructure projects enabled by the recently approved transportation taxes. Although it's too soon to tell, it is not unreasonable to expect future projects to be even more expensive as a result of expected construction due to Hurricane Harvey repairs in Houston. In short, the construction cost pendulum seems to be swinging in favor of contractors and higher cost construction projects. Of course, like all capital projects, once these new capital projects are built, the District will have additional operating expenses associated with the new facilities. On the operating side, the district recently undertook a study of its Therapeutics program, the results of which staff anticipates will be presented at an October board meeting. Implementing the report's recommendations can range from reprogramming existing resources (at a minimum), all the way to significant increased ongoing funding (in the six -figure range). ADMINISTRATIVE OFFICES 403 West Hillcrest Drive - Thousand Oaks, CA 91360-4223 (805) 495-6471 • FAX: (805) 497-3199 - Email: parks@crpd.org • Website: www.crpd.org