CITY COUNCIL SPECIAL MEETING AGENDA PACKET 2

Page 5 of 7 adding $2.0 million to the R&R program over the next two years to address the increased maintenance in addition to the following larger projects: #1 Dolores Bengtson Aquatic Center (DBAC): $500,000 for 50-meter pool and locker room repairs The DBAC is in need of $5-6 million for major renovation of the plaster, decking and mechanical equipment (pumps and filters) that have exceeded service life and has already required many repairs due to corrosion. When/if this money is identified, the facility will have to be closed for up to one year to complete the work. The temporary investment of $500,000 recommended at this time may “bandaid” the operation of the pool for up to 3-5 years; however, this approach will increase the risk of the pool being out of service should other known issues become more severe or critical to address. Concurrently, staff is working to identify a strategy for the pool’s ongoing sustainability that could include philanthropic or other funding options for the larger capital needs, and possibly revisiting usage fees to sustain long- term operations. #2 Fire Station 2: $350,000 for kitchen and exterior repairs A report was completed in 2012 showing that Fire Station 2 was in need of a complete remodel or replacement; however, no significant investments were made in the last 13 years and the facility’s condition has worsened since that time. The $350,000 recommended at this time will address a kitchen that can no longer be maintained and paint the building to seal cracks in the stucco. This proposed “band aid” approach does nothing to address the Station's outdated and inadequate facilities (e.g. gang showers and barracks sleeping quarters, lack of gender balance in the facility) or needed site access, driveway and sidewalk improvements. As a facility at or near the end of its useful life, this Station needs to be replaced, at an estimated cost of approximately $30.0 million. There is no funding source and no reserve at this time to address this need. #3 Bernal Synthetic Fields: $500,000 - $750,000 to replace high-use segments Bernal Community Park includes three synthetic turf fields. These well-used fields are approximately eight years old, are no longer under warranty, and are at the end of their useful life. At this time, there is an increased risk of injuries as the turf deteriorates from UV exposure and use. The estimated costs for replacement of the three fields is $6.0 million. Replacing the high-use areas will extend the useful life for areas of the turf that have broken down. Without mitigation of the most worn areas, the fields will need to be closed. No money has been set aside for the turf replacement project. While these are pressing examples, there are many more needs that are currently unfunded. These specific projects are recommended to extend asset life; however, these investments will not guarantee long-term operability. Conclusion Current capital funding levels are inadequate to meet identified critical needs. The AMP will provide data to guide future investments; when that work is complete, the City’s known capital funding needs will be greater. With the current lack of available General Fund dollars and anticipated (minimal) General Fund contributions toward capital needs for the coming years, the City will not be able to keep key facilities operating. Given the General Fund Operating Budget structural deficit, staff does not recommend using Capital Improvement Program and Repair & Replacement Program General Fund dollars to supplement operating costs. Doing so would further deplete the CIP Page 35 of 40