DATE:        February 21, 2003

TO:             Honorable Mayor and City Councilmembers

FROM:       Robert Paternoster, Director of Community Development

                   Marvin Rose, Director of Public Works

                   Robert Walker, Director of Parks and Recreation

THROUGH: Robert S. LaSala, City Manager

SUBJECT:   Downtown Plaza

The June 11, 2002 Council approval of the construction budget included revenues from several sources, such as Proposition 40 and almost $600,000 from unidentified sources. Staff believes that in the current fiscal situation both of those sources are questionable.

Because some of the previously identified revenue sources may not be available, and because construction costs appear to be higher than originally estimated, staff requested Amphion to prepare three lower cost alternative designs. From the Council discussion on February 4, 2003 staff understands that the Council is interested in completing a plaza as soon as possible. This memo provides details of three of the options Alternative "A", "B" & "C" in comparison to the original June 2002 Council approved project.

The Downtown Plaza project had a balance of $5,984,612.47 on July 1, 2002. To date of this fiscal year the expenses charged to the project have included the contract with Amphion (the construction design consultant), Project Administration staff and expenses, and costs authorized by City Council in 2001 to increase the load limits. Also note that when the project was approved by City Council in June 2002 $599,654 had no specific source of funding. Given these expenses (and no source for a portion of the project funding) staff calculates the balance in the Downtown Plaza project as $4,525,558. This amount includes $487,000 of Proposition 40 funding. Considering that Proposition 40 funds are questionable at this time, $ 4,038,558 is the project balance available.

The original Council approved project and three plaza project alternatives are discussed below and shown graphically in the Attachments.

Staff does want to impress upon Council the impact of its ultimate decision regarding this capital project on the City’s overall park system, particularly given the current budget crisis. Council should bear in mind that a significant portion of the capital dollars to be spent on this project (e.g., park dedication fees, Proposition 12 monies) are the same capital dollars which could fund numerous other enhancements to the City’s existing park system. A number of other park projects which under normal circumstances would appear in the City’s ten year Capital Improvement Program to enhance the usability and/or attractiveness of neighborhood parks will not appear if this project is funded—at least not until the City’s financial posture improves. All projects related to the maintenance of the park infrastructure, and to park visitor health and safety, however, continue to be fully funded.

Second, Council is reminded that this recommended project represents a commitment to add funds to the parks operating budget, at a time when the Parks Division is being asked to propose significant reductions in its operating budget for possible consideration by Council at a later date. Those reduction options will include visible impacts to the attractiveness and usability of the existing neighborhood park system (e.g., cleanliness, height of lawns, etc.). In other words, the funding of the operation of this new park will also have a negative impact on the service levels provided in other parks. With this in mind, staff recommends that if the Plaza project is approved by Council, that the Plaza’s projected operating costs and service levels be considered for possible reduction along with all other park costs and service levels.

Attachments (Attachments available at City Clerk's Office)

Original Council Approved Plaza- June 2002
Alternative "A" Plaza Project
Alternative "B" Plaza Project
Alternative "C" Plaza Project