A number of goals, policies, and action statements from the Recreation Sub-Element apply in some fashion to the subject matter of this report. This report is most directly supported by the following Sub–Element statements.

Goal C. develop and enhance the operation of the community recreation fund, maintaining sound financial strategies and practices that will enable the city to provide an array of recreation programs, facilities, and services to a maximum number of citizens while minimizing the impact upon the general fund.

Policy C.3. Utilize available pricing and promotional tools in order to maximize participation and/or use related to programs, facilities, and services, without jeopardizing the integrity and infrastructure of related facilities.

Action Statement C.3.a. Utilize market-based pricing in the establishment of fees, and continually evaluate the effectiveness of pricing strategies.

Action Statement C.3.c. Offer and implement multi-use discount programs where feasible and appropriate.

From the conceptual beginning of this project, it has been clear that the estimated total construction cost was a moving target, one that fluctuated as the architectural plans developed and the contract bidding environment changed. The total cost figure has risen from the original estimate of $1,000,000, to $1,400,000, then to $1,600,000 and now to the current estimate of $1,797,104.42.

As indicated in a Report To Council on May 2, 2000, staff was unsuccessful in efforts to negotiate an agreement that would place a cap on the City’s financial exposure or allow it to terminate the agreement unilaterally, should costs exceed a certain amount.

Council is aware that this increased cost will require either additional contributions from the General Fund, or reductions in existing services to offset costs (Community Recreation Fund cannot absorb it).

The construction cost is distinctly different from the on-going maintenance costs and is strictly related to actual construction of the pool, pool deck, fencing, filter room, swim building and related equipment. As indicated in a previous Report to Council (RTC 00-095 May 2, 2000), staff was unable to negotiate a fixed cost or a maximum total cost with the District. Staff also stated that, if approved, the project cost could and likely would increase.

In the FY 2000/2001 Budget, $1,600,000 was identified for the Fremont Swim Pool Construction Project.

To date, the District has billed the City for $1,728,038.42 for construction costs. The City has only paid the $1,600,000 currently budgeted, leaving $128,038.42 as an unpaid balance.

The District has also revised the estimated project cost which will further increase the City’s share by $69,066 or a total overall project cost to the City of $1,797,104.42.

While the total additional amount to complete this project is currently estimated to be $197,104.42, a number of construction items have not been completed and the final costs could be even higher. By contractual agreement, the City is still obligated to pay 49% of any additional construction costs.

Staff is proposing a budget modification of $210,000 be added to the Fremont Swim Pool Project No. 821640, increasing it to a total allocation of $1,810,000. This amount will cover the increased costs (known and estimated) and provide a small reserve. At the completion of the project, any remaining funds from the reserve will be returned to the General Fund.

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the City Clerk’s office, Parks and Recreation Administration office, Community Center, Senior Center, Library and at the Sunnyvale Swim Center at Fremont High School Pool.

2. Other action as determined by Council.

Reviewed by:
Robert Walker
Director, Parks and Recreation