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HomeMy WebLinkAboutAgenda - 06-27-2006-9b1ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 27, 2006 Action Agenda Item No. ~. b - 9 SUBJECT: Central Orange Senior Center Design; Triangle Sportsplex Modifications DEPARTMENT: Purchasing PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 6-21-06 Memorandum with Diagrams Revenue Impacts From Sportsplex Alternatives INFORMATION CONTACT: Pam Jones, Purchasing, (919) 245-2652 PURPOSE: To consider approving the plans for the Central Orange Senior Center and Sportsplex modifications required as a result of the design; and authorizing staff to move forward to develop plans in order to present a Construction Manager at Risk (CM at Risk) proposal after the Board's summer break. BACKGROUND: On June 22, 2006 the Commissioners saw plans for the proposed Central Orange Senior Center and changes/additions to Sportsplex space that would replace the space lost to the Senior Center, as well as enhance the Sportsplex operation. As a reminder, the proposal included: • Approximately 10,000 square feet of newly constructed space for Senior Center use; and • Approximately 5,000 square feet of space in the existing Sportsplex that would be converted to Senior Center space; and • Approximately 4,100 square feet of space that would be converted from Sportsplex operations space for use as the Adult Day Health Center (ADHC); and • Approximately 7,000 square feet for Sportsplex operations would be created through the construction of a mezzanine to be built in the ice rink area. John Stack, managing partner of Recreation Factory Partners (RFP), the firm with whom the County contracts for Sportsplex management, notes that the while the mezzanine area is less than the area being lost to the Senior Center, the ability to create a better flow with the newly constructed space would offset the reduction in space and allow more efficient use. Note that a mezzanine could also be constructed in the pool area to provide approximately 7,000 s.f, for future expansion for Sportsplex programs at such time the Commissioners deem such construction affordable and advisable. It is not included in the current recommendations. The information in the attached memorandum presented on June 22, 2006 contains additional information regarding the development of the overall project. Commissioners expressed interest in additional information in two specific areas: the projected impact that the development options may have on Sportsplex revenues and the impact of phased constn~ction on development costs. John Stock, has projected that the Sportsplex will lose approximately $1,365,000 over athree- yearperiod if the space to be allocated to the Senior Center is not replaced. In contrast, he estimates that the Sportsplex revenue could grow approximately $272,500 if they are able to reclaim the space through the construction of a mezzanine over the ice rink. As cited earlier in this abstract, there is also an option to add a second mezzanine in the pool area for use as Sportsplex program space. Should the second mezzanine be constructed, Stock estimates revenues could increase by approximately $720,000 over athree-year period. The attached spreadsheet reflects the projected revenues by function, The issue of phasing was considered, but not actively pursued primarily because of the cost. Over the past year, the Board has seen multiple examples of steeply rising construction costs for County, School and Community College projects. The competition from the global community far raw materials and finished building products is not likely to change in the foreseeable fiiture. What this would seem to indicate is that even though current building costs have increased dramatically, they are most certainly to be less now than they will be at any point in the future. The Adult Day Health Center (ADHC) is a primary driver for creating additional space for Sportsplex operations. Aside from the synergy between the Senior Center and the ADHC, relocating the ADHC program to owned space at the Sportsplex would allow the rent to terminate at their existing location upon completion of the new senior center. The current rent for 6,000 square feet of space is approximately $83,000 per year. The ADHC has indicated a need far 4,000 square feet of program space. Assuming they would continue to rent at their current location at the Meadowlands after the senior center is relocated, rent payments would cost an estimated $55,000 per year, at the current rent rate. As a point of reference, $55,000 per year would support approximately $500,000 in debt service. Preliminary estimated renovation cast far the space proposed far the ADHC program in the Sportsplex is approximately $550,000--$575,000. Staff continues to work with consultants to determine the projected impact of phased construction. The information will be provided at the June 27, 2006 meeting. FINANCIAL IMPACT: Additional information regarding the projected cast of phased construction will be provided at the June 27, 2006 meeting. RECOMMENDATION(S): The Manager recommends that the Board approve the plan as cited herein and authorize the staff to proceed with project development such that a CM at Risk proposal may be presented after the summer break. Memorandum TO: County Commissioners From: Pam .lanes, Director of Purchasing and Central Services RE: Central Orange Senior Center/Sportsplex Proposed Design Date June 21, 2006 This matter is being brought to the Board for review at this time to assure timely approval of the plan so that work may proceed with finalizing the design and cost elements over the summer. The Board will recall that the Triangle Sportsplex facility was purchased by Orange County in December of 2005, Based on studies conducted in 2004 and 2005, the Sportsplex was acquired in anticipation of adding the Central Orange Senior Center facility to the existing Sportsplex facility in order to bring operating efficiencies to the overall site and to provide the citizens of Orange County, especially its Seniors, with a unique facility. From January through May 2006, the Board-appointed Central Orange Senior Center Design Committee worked with Corley Redfoot Zack (CRZ), the project architect to formulate design plans for the new Center, As a reminder, the design committee includes approximately fifteen citizens, (several of whom are seniors who will utilize the facility), Commissioners Halkiotis and Jacobs, County Manager John Link and several other staff members. The proposed design is presented for Board of Commissioners approval. Early on the project contemplated construction of approximately 10,000 square feet of new space for the Senior Center, with approximately 5,000 square feet of existing activity area to be used by both the Senior Center and the Sportsplex, However, it became apparent during the initial meeting of the design committee that the amount of programming envisioned by the seniors would preclude sharing space. The seniors also expressed a strong desire to not share the space, As a result, the space plan proffered for discussion includes 10,000 square feet of newly constructed space and 5,000 square feet of space within the Sportsplex that will be dedicated exclusively to the senior center. The plan presented also includes approximately 4,166 square feet of space for the Adult Day Health Center (ADHC), presently co-located with the Central Orange Senior Center in leased space at the Meadowlands, Not only will this maintain the synergy between ADHC and the senior center programs, the County will experience significant savings in rent over the life of the building. These design assumptions will effectively reduce the amount of square footage available for the Sportsplex operations by approximately 7,500 square feet, Programs that would be adversely impacted include, but are not limited to: fitness classes (aerobics for example), Kidsplex, summer and seasonal camp programs and locker rooms for hockey teams that use the facility, The revenue for the Sportsplex would be significantly impacted if this amount of space were permanently eliminated since many 1 ~-1 of the current offerings could no longer be accommodated within the facility. Further, it is likely to impact future revenues by negatively affecting our ability to market the Sportsplex as a viable sports/fitness club option in the community.. To ensure that the Sportsplex maintains sufficient program space for existing and future membershiplprogram growth, a plan to create a mezzanine within the ice rink area is submitted for Board consideration. The mezzanine idea has been used successfully in similar venues in Charlotte and is considerably less expensive than adding to the building structure. John Stock will present summary information on the state of the Triangle Sportsplex and its future potential during Thursday night's meeting. The Board will recall that John is the Managing Director of Recreation Factory Partners, the County's management contractor at the Sportsplex. Looking forward to the next steps of project development, it is notable that the intent to utilize the construction-manager-at-risk (CM at Risk) method of building the project has been-; recommended as the preferred approach to the construction of this project. Assuming the Board will see fit to approve and release the project for further development on June 22, 2006, a proposal, complete with pricing, could be brought forward for the Board's consideration in August. Preliminary estimates for the scope of work-°including the 15,000 square foot senior center, the approximately 4,100 square feet for the ADHC program and the construction of a mezzanine to replace the space lost for Sportsplex operations/programs- register at over 2.5 times the initial estimate of $1.8 million presented in March 2005. It is notable that while much of the cast increase is related to the increased square footage being proposed, much of it is also attributable to the;ever-increasing cost of construction materials. StafF'°will work with consultants and contractors to ensure the project is value engineered to an acceptable level before bringing the matter back for Board approval. Further, staff will provide at that. time a funding plan that considers not only the debt service that would be incurred as a result of this project, but also the offsetting revenues that could be expected through such avenues as increased Sportsplex revenue and reduced lease expenses.. The Board is asked to approve the plan as cited herein and authorize staff to proceed with the development such that a CM at Risk proposal may be presented after the summer break. Should you have questions or comments in advance of the June 22 meeting, please let me know. 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