TITLE
Recommendation to authorize City Manager to proceed with the entitlements for the revised baseline programmatic requirements for the proposed Belmont Beach and Aquatics Center, incorporate the recommendations from the Stakeholder Advisory Committee, and to increase permanent, indoor spectator seating from 650 seats to 1,250 seats with an additional estimated cost of $4.7 million, for a total estimated project cost of $103.1 million. (District 3)
DISCUSSION
The City of Long Beach has an opportunity to construct a new Belmont Beach and Aquatics Center (BBAC) to replace the seismically unsafe Belmont Olympic pool. This new facility will be an asset to the entire community, serving primarily as a recreational facility for our residents and to continue the City's proud history of aquatic excellence. As this project will be constructed in the coastal area, the City has the opportunity to utilize Tidelands dollars for this project, which are restricted for uses along the coast. The facility, while primarily constructed to enhance public recreation, may also have the potential to generate economic impact for the City by bringing in competitive events to the City. The ability to host those competitive events will be predicated on the size and configuration of the facility, the impact they will have on the surrounding neighborhood, and must be balanced with the availability of the pool to primarily serve public recreation.
On June 17, 2014, City Council conducted a study session on the programmatic requirements and conceptual plans for the BBAC. The City Council suggested that a community stakeholder committee be convened to prioritize optional components of the conceptual plan for the City Council to consider for approval, prior to proceeding with the entitlements process.
Stakeholder Advisory Committee Process
A BBAC Stakeholder Advisory Committee was convened in July 2014. Staff, the project team, and the Stakeholder Advisory Committee conducted three workshops in July and August 2014 and explored myriad issues related to the pool in a collaborative discussion. The selection process, committee makeup, goals and guiding principles of the Stakeholder Advisory Committee, are detailed in the attached memorandum dated September 3, 2014 (Attachment A).
The following revisions to the baseline programmatic requirements were vetted through the Stakeholder Committee:
• Added indoor separate deep well diving pool
• Added indoor movable floor in 50 meter pool
• Deleted Community / Banquet Facility
• Deleted 1,250 (all) permanent outdoor spectator seating
• Reduced indoor permanent spectator seating from 1,250 to 650 seats
• Reduced size of restaurant from 5,000 SF to 2,500 SF
• Reduced size of therapy / teaching pool from 1,225 SF to 900 SF
The resulting Stakeholder Advisory Committee recommended conceptual plan, adhering to a $99 million project plan, includes:
• Indoor Pools:
o 50 meter x 25 yard pool, with movable floor system to create adjustable
deep / shallow end
o Separate deep water diving well
o Teaching / therapy pool (900 SF)
o Large, general use whirlpool and smaller diver whirlpool
• Outdoor Pools:
o 50 meter by 25 meter pool
o Outdoor recreational pool • Other amenities:
o 650 permanent indoor spectator seats in natatorium
o 2,500 square foot restaurant space
Along with these components, the revised project plan of $99 million also provides for $1.3 million in escalation due to redesign and construction cost escalation, and a set aside of $500,000 for 10 years of proactive maintenance of the proposed movable floor system. Additionally, the Stakeholder Advisory Committee felt strongly that, should the City be able to identify the resources, seating should be increased to accommodate the larger events. However, as the Committee was asked to recommend a design within the identified resources for the project, their design included the 650 seats. The Committee also suggested a relocation of the therapy/teaching pool and general use whirlpool to a dedicated space, as well as a reconfigured shape of the outdoor recreational pool.
Public Meeting
On September 17, 2014, staff, the Stakeholder Advisory Committee, and the project team conducted a public meeting at Rogers Middle School to present the Stakeholder Advisory Committee recommended baseline programmatic requirements, and to receive public comments and questions on the project. Approximately 150 to 200 people attended. Written comments were received during and after this community meeting, via both comment cards provided to the meeting attendees and, subsequently, from the "Speak UP Long Beach" public outreach website. A matrix summary of the comments received, and actions recommended by staff to address each comment is attached (Attachment B).
Economic Impact Study
Concurrent with these outreach efforts, staff engaged the services of local economist Joseph Magaddino to study the economic impacts of the proposed baseline programmatic requirements, and optional enhancements (Attachment C). The report indicates the facility could generate $3.7 to $30.6 million dollars of annual economic activity in Long Beach. The potential economic impact increased with the number of seats, from a low of 650 seats to a high of 1,250. Additionally, every fourth year, the facility could generate an additional $13 to $19.9 million, depending on whether the facility had 1,250 or 1,500 seats. The impact is primarily generated by out-of-town visitors, including athletes, coaches, spectators, and families, who spend money on lodging, food, and retail. For the City, visitor expenditures generate revenue from TOT and sales taxes. The analysis rests on several assumptions, primarily that the City is successful in attracting every aquatic event, including large but infrequent competitions, such as NCAA Division Championships. It is unlikely that the facility would attract every event. Furthermore, scheduling and hosting competitive events must be balanced with preserving the pool's primary function as a public recreational facility. In addition, the City must consider the impact large events have on the surrounding neighborhood, and strive to maintain a high quality of life for residents while also supporting our thriving aquatic community. These factors notwithstanding, this analysis demonstrates the SUbstantial potential economic impact of the competitive events hosted at the public facility.
Impact of Seating Constraints on Events
The number and magnitude of events that the facility will attract are primarily impacted by the number of permanent spectator seats and the available indoor pool deck space. As detailed above, the $99 million plan includes 650 permanent indoor seats. This amount will accommodate most local and some regional competitive events. This amount, however, will limit the facility's ability to attract several national and international events.
The majority of comments and input received to date, including from the Stakeholder Advisory Committee, indicate that an indoor aquatics facility of this magnitude would be best served with 1,250 permanent indoor spectator seats. Seating is identified as the primary limiting feature to hosting larger scale events. If the City's desire is to have a facility that can accommodate competitive events, while balancing the recreational needs and public use of the facility, a minimum of 1,250 seats is recommended.
25 Meter verses 25 Yard Width of Indoor Pool
A suggestion raised through the public input process was to increase the width of the indoor pool from 25 yards to 25 meters. Additional information on the difference between 25 yard pools and 25 meter wide pools is attached (Attachment D). After significant review of the issue, City staff and the design team recommend a 25 yard pool width forthe indoor facility and a 25 meter width for the outdoor pool. This will maximize flexibility, maximize the use of the indoor facility for the largest amount of users (25 yard swimming is the most frequently used length), and continue to accommodate water polo as well. This option will also maximize the amount of deck space available inside the facility, which is an important feature for attracting larger competitions. If the project included a 25 meter wide pool indoors, the cost would be an additional $1.9 million. Staff do not recommend shrinking the available deck space due to the impacts on potential competitive events. Given the resources available for this project, staff recommend investing any available dollars in seats, as a 25 yard wide pool can accommodate nearly every competitive event if sufficient seating is available.
Coastal Commission
A key factor that the City must consider is input from the Coastal Commission, which must ultimately approve this project as it sits partially within the Coastal Commission's jurisdiction. The Coastal Commission has stated their preference for a public facility where the entire facility is primarily for public recreational use that can accommodate private and/or competitive uses when public recreational demand is low. The design of the building should not be primarily for private and exclusive and/or competitive use, and that the Commission places a high priority on low-cost public use, rather than exclusive private use (regardless of the use). City staff have had an informal discussion with local Coastal Commission staff about the Stakeholder Advisory Committee's recommendation to ensure it is in line with Coastal Commission staff's goals for the project. Upon initial review, Coastal Commission staff are supportive of the direction of the recommendation. They informed City staff they are supportive that the facility will primarily serve public recreation needs, but has the ability, through the movable floor and seating, to support competitive events. Formal input on the project from the Coastal Commission will occur later in the process.
Staff Recommended Baseline Programmatic Requirement
Staff has, therefore, included the following recommendations for City Council:
• Approve the recommendations of the Stakeholder Advisory Committee
• Modify the location of the indoor therapy/teaching pool to better align it with the outdoor recreation pool and improve the use of deck space
• Modify the conceptual shape of the outdoor recreation pool, which will be further developed in the design phase of the project
• Include 1,250 permanent indoor seats
• Retain the indoor 50 meter pool width at 25 yards
The total estimated project cost, including these modifications, totals $103.1 million (see Attachment E for staff's recommended design and cost breakdown).
Funding Options
Currently, the City has identified $99 million in Tidelands resources available to fund the design and construction of the facility, provided that assumptions on the price of oil remain constant. As the recommended project is $103.1 million, an additional $4.7 million must be identified. Staff recommend the following modifications to fund the difference:
Amount Description Impact
$1,550,000 Utilize half of the FY 16 Capital This would result in no additional
Plan amount intended for projects for Council District 3 in FY 16.
miscellaneous projects
$600,000
$2,550,000 Redirect funding from These impacted projects would need to
previously budgeted projects be re-budgeted in a future year when
in Council District 3. funding becomes available.
The restaurant would still have a full commercial kitchen, yet this would eliminate all indoor seating. The restaurant would be considered "Fast Casual", with the ability to order at the window and be delivered to the table. Staff believe this is the lowest level of restaurant that will still be able to provide quality food and attract a quality long-term vendor.
Reduce project costs by reducing the size of the restaurant by 1,000 square feet resulting in a 1,500 square foot restaurant with outdoor seating only
Additional detail on the projects that would have funds redirected and would need to be re-budgeted in a future year are listed in Attachment F.
This matter was reviewed by Deputy City Attorney Linda Vu on October 7, 2014 and by Budget Management Officer Victoria Bellon October 8, 2014.
SUSTAINABILITY
It is expected that the new facility will be designed to meet LEED Gold equivalence. The current estimated costs include achieving LEED Gold certification. A LEED Gold equivalence is in keeping with existing City Council policy to design new facilities to be sustainable buildings, as well as help to reduce future operating costs associated with the facility. The decision whether to proceed with the LEED Gold certification process or not will be included in a future Council action. In addition, the facility will be constructed in accordance with current seismic safety standards.
TIMING CONSIDERATIONS
City Council action on this matter is requested on October 21, 2014, in order to proceed with the entitlement phase of the project and avoid construction cost escalation. It is estimated that, based on the size of the facility, construction costs escalate by approximately $400,000 per month, so a timely decision on the baseline programmatic requirements is necessary. The construction contract is currently expected to be awarded, at the earliest, in November 2015.
FISCAL IMPACT
$99 million in Tidelands Fund resources has been identified to fund the baseline costs for the Belmont Beach and Aquatics Center. Of the $99 million identified, $55.3 million has been appropriated in the Tidelands Operations Fund (TF401) and remains available. This amount is comprised of $0.5 million in FY 2012, $15.5 million in FY 2013, $7.8 million in FY 2014, $39.0 million in the FY 2015 Adopted Budget, less costs of about $7.5 million previously allocated for the temporary outdoor pool and for preliminary costs associated with getting the project to its current status.
The remaining balance of $43.7 million (out of the $99 million original baseline cost) has been reserved and is available for future appropriation when needed. However, due to the potential for an oil revenue shortfall, there is significant risk that cash will not be available for all Tidelands Fund projects as shown in the 5-Year Capital Plan, including the Belmont Beach and Aquatics Center. The City Manager is planning to develop an alternative FY15 Tidelands Capital Budget and 5- Year Capital Plan by the end of December to address this changing situation. Attachment G provides a more detailed explanation of the oil revenue situation and an update on Tidelands Capital Project Funding.
Since 2012, the State Lands Commission has approved Tidelands expenditures of $19.8 million for the Belmont Pool Rebuild. Additional appropriations to support the final estimated project costs will be requested after the State Lands Commission approves the total project budget, and as required to support contractual commitments as they are considered for approval by the City Council.
Approval of this recommendation will provide continued support to our local economy.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
APPROVED:
PATRICK H. WEST
CITY MANAGER