HomeMy WebLinkAboutORD-2014-040 OC Sportsplex Lobby Budget Amendment #2-B1
ORD- 2014 -040
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 21, 2014
Action Agenda
Item No. 6 -e
SUBJECT: Orange County SportsPlex Lobby Budget Amendment #2 -B
DEPARTMENT: Asset Management Services, PUBLIC HEARING: (Y /N) No
Finance, Department of
Environment, Agriculture,
Parks and Recreation, Orange
County SportsPlex
ATTACHMENT(S): INFORMATION CONTACT:
Jeff Thompson, (919) 245 -2658
Clarence Grier, (919) 245 -2453
David Stancil, (919) 245 -2522
John Stock, (919) 644 -0339
PURPOSE: To approve Budget Amendment #2 -B re- purposing appropriated SportsPlex funds
for improved ice skate compatible flooring and restroom partitions.
BACKGROUND: The Orange County SportsPlex is currently undergoing lobby renovations to
add a second fitness studio; expand the existing main studio; and install a girls /women's hockey
change room. These renovations are supported by incremental programmable revenues and
are scheduled to be complete in the fall of 2014.
The Board awarded the construction bid for the SportsPlex lobby renovations in June of this
year. In 2012, the lobby project was originally designed as a cosmetic renovation involving
primarily new paint and improved ice skate compatible flooring. Upon further examination by
SportsPlex staff, the focus of the renovation transformed from solely a cosmetic improvement to
one addressing the significant need for more programmable space to accommodate its current
and future growth.
Originally, $165,000 was appropriated by the Board to address the cosmetic renovation. The
project designer, Ben Burke, estimated the cost of the revised, programmable space at
$330,000, well within the total appropriated budget of $440,000 for the scope elements involved
in the design.
The awarded bid for the project to Riggs- Harrod Builders of Raleigh was for $429,500, just
under the appropriated $440,000 for the project. This bid award did not include the skate
compatible flooring and the restroom partition improvements as these elements were deferred
for future replacement.
SportsPlex staff has since evaluated other project appropriations. Within the FY2013 -14
Capital Investment Plan (CIP), the Board appropriated $125,000 for the replacement of the
2
original Ice Rink Dehumidification System and $100,000 to replace fitness equipment that has
reached the end -of- useful life. A recent comprehensive preventative maintenance evaluation of
the Dehumidification unit concluded that all of its main operating components were in very good
working order and that the need for replacement was not imminent. Additionally, a full pricing
work -up of replacement fitness equipment indicates that only $80,000 of the budgeted
$100,000 is needed.
Staff recommends that $120,000 ($100,000 from the rink Dehumidification unit plus $20,000
from the fitness equipment) be reallocated to replace the ice skate compatible flooring as well
as the bathroom dividers, with the work completed as part of the current Lobby project to
achieve the financial and timetable synergies of performing the work while renovations are
already in progress. $25,000 in surplus funds may return to the SportsPlex fund balance or
may be treated as a contingency fund for these projects.
FINANCIAL IMPACT: The SportsPlex Capital project fund has adequate funds for this budget
amendment and will be supported by the projected revenues generated. The projected
incremental 5 year net income resulting from the lobby renovations (including the flooring and
restroom partition replacements) amounts to $537,500 — an estimated 5 year payback for the
investment.
The proposed Budget Amendment #2 -B is as follows:
RECOMMENDATION(S): The Manager recommends the Board approve Budget Amendment
#2 -B re- purposing appropriated SportsPlex funds for improved ice skate compatible flooring and
restroom partitions.
FY2013 -14
CIP
Requested
Adjustment
Adjusted CIP
Dehumidification Replacement
$125,000
($125,000)
$0
Exercise Equipment
$100,000
($20,000)
$80,000
Lobby, Restroom Flooring
Replacement
$0
$100,000
$100,000
Restroom Stall Divider Replacement
$0
$20,000
$20,000
Sportsplex fund balance or project
contingency fund
$0
$25,000
$25,000
Total
$225,000
$0
$225,000
RECOMMENDATION(S): The Manager recommends the Board approve Budget Amendment
#2 -B re- purposing appropriated SportsPlex funds for improved ice skate compatible flooring and
restroom partitions.