CC 2016-03-22_09g Funding Reallocation Womans Club Kitchen MEMORANDUM
TO: CITY COUNCIL
FROM: JOHN ROGERS, DIRECTOR OF RECREATION SERVICES
GEOFF ENGLISH, DIRECTOR OF PUBLIC WORKS
SUBJECT: CONSIDERATION OF REALLOCATION OF FUNDING FOR THE WOMAN’S
CLUB CENTER KITCHEN REMODEL PROJECT
DATE: MARCH 22, 2016
RECOMMENDATION:
It is recommended the City Council reallocate $40,000 from the Elm Street Community
Center Upgrade project to the Woman’s Club Center Kitchen Remodel project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no net impact to the General Fund; however, achieving the goals of the Elm Street
Community Center project will be deferred until additional funding is allocated.
BACKGROUND:
The Woman’s Club kitchen remodel project was approved by City Council in 2013, and
$20,000 was committed from the City’s General Fund to assist with the project. The
Arroyo Grande Lion’s Club and the Woman’s Club of Arroyo Grande committed to lead
fund raising efforts to complete the project.
Several fund raising activities were held over a two year period, including a Celebrate
Arroyo Grande event, a huge yard sale, and a Dedicate-A-Brick program. A total of
$55,000 has been raised. Combined with the $20,000 from the City, the total funding is
currently $75,000.
Construction plans were developed and sent out recently for a project estimate. The
estimated cost of the design came back at approximately $125,000. This was not
anticipated and has put the project in jeopardy. The cost estimate was higher than
anticipated due primarily to state prevailing wage requirements.
The Kitchen Remodel Committee met to discuss options. Both the Woman’s Club and
Lion’s Club groups have indicated they need to resume fundraising for their main missions,
and cannot commit to additional fundraising for the kitchen project. The Committee
decided to review the construction plans with the goal of value engineering to decrease the
cost of the project. A total of approximately $20,000 in savings was identified. This leaves
an estimated total cost for the project of approximately $105,000. This is still significantly
higher than current funding totals.
Item 9.g. - Page 1
CONSIDERATION OF BUDGET REALLOCATION FOR THE WOMAN’S CLUB CENTER
KITCHEN REMODEL PROJECT
MARCH 22, 2016
PAGE 2
In the 2015-16 City budget, $40,000 was earmarked for development of design for
replacement of the Elm Street Community Center with a new modular building. At the
budget hearings, the Council voiced a preference not to replace the Elm Street Community
Center with a new modular building, but look for a more permanent construction solution.
Since there is currently not a funded alternative, it would likely take several years to
develop and fund a viable project to replace the Elm Street Community Center.
ANALYSIS OF ISSUES:
The City will be the biggest beneficiary of this kitchen remodel project. The design adds to
the overall quality of the facility, making it more desirable for special event rentals. The
design of the new kitchen also includes upgrades that will meet the SLO County Health
Department’s requirements for commercial kitchen designation. This status would enable
the City to rent the kitchen for some commercial uses, and allow culinary classes to be
held at the Woman’s Club Center. Both of these opportunities would increase the
possibilities for revenue generation to support overall facility costs.
It is likely that a viable project to replace the Elm Street Community Center is a number of
years away. The $40,000 currently earmarked for design of the Elm Street Community
Center replacement could be used to fill the funding gap for the Woman’s Club Kitchen
Remodel Project, which has immediate need, and will benefit the City and the many users
of that facility.
Funding for design work for any future Elm Street Community Center replacement project
could be addressed in a future budget, when funding for a more permanent facility is
identified.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve the recommended actions
2. Do not approve the recommended actions;
3. Provide direction to staff.
ADVANTAGES:
Remodeling the Woman’s Club Center kitchen will enhance the facility and provide additional
amenities to the community, leveraging the funds raised by the Lion’s Club and Woman’s
Club groups.
DISADVANTAGES:
The goals of the Elm Street Community Center project will be deferred until additional funding
is allocated.
Item 9.g. - Page 2
CONSIDERATION OF BUDGET REALLOCATION FOR THE WOMAN’S CLUB CENTER
KITCHEN REMODEL PROJECT
MARCH 22, 2016
PAGE 3
ENVIROMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, March 17, 2016. The Agenda
and report were posted on the City’s website on Friday, March 18, 2016. No public
comments were received.
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