SUBJECT
Title
GENERAL SERVICES - APPROVE LONG-TERM SHARED USE AGREEMENT AND AMEND CONSTRUCTION MANAGER AT RISK CONTRACT FOR MIRA MESA EPICENTRE PROJECT (DISTRICT: 3)
Body
OVERVIEW
In 2021, the County of San Diego (County) Board of Supervisors (Board) directed the Department of Parks and Recreation (DPR) to negotiate an agreement with the City of San Diego (City) to launch a capital project to rehabilitate the Mira Mesa Epicentre, located at 8450 Mira Mesa Boulevard, San Diego, California (Property), as a County-operated community center offering programs, activities, classes, and events that benefit residents of all ages, interests, and abilities, with a special focus on youth and teens.
To best serve the community of Mira Mesa, facility users’ feedback on the future facility’s design and programming was collected through engagement with community members during community meetings and events from 2022 to 2024. On July 17, 2024 (07), the Board approved a 45-year lease agreement with the City (Lease) for the rehabilitation, operation, and maintenance of the Mira Mesa Epicentre. In accordance with the Lease, County will refurbish and operate a portion of the Property as an open recreation center for youth, with programs that serve the needs of the community, including tutoring, mentoring, career counseling, performing and visual arts, gardening, cooking, various recreational classes, provision of rentable space for meetings and events, and intergenerational programs. Design features of the facility include the community’s preference for a lounge area, game tables and consoles, workstations and a homework area, a music room, fitness equipment, a stage, a demonstration kitchen, and a multi-purpose space. Preferred exterior amenities include central gathering areas, open turf areas, garden areas, and outdoor sports courts. Construction of the project is currently underway through County Contract #570756, a Construction Manager at Risk (CMAR) contract with Balfour Beatty, Inc. (Contract).
Today’s request is for the Board’s approval of the long-term shared use agreement negotiated between the City and County, which allows users of the Mira Mesa Epicentre to park in the City-owned parking lot adjacent to the leased site. This request also includes authorization to amend the Contract for the Mira Mesa Epicentre project to allow for expenditure of $11,500,000, the full capital-project funded amount.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find the proposed long-term shared use agreement with the City of San Diego for the use of property adjacent to County of San Diego leased site is exempt from the California Environmental Quality Act (CEQA) Guidelines, pursuant to CEQA Guidelines Section 15301.
2. Approve and authorize the Director, Department of General Services, to execute the proposed long-term shared use agreement with the City of San Diego for the use of the property adjacent to the County of San Diego leased site at 8450 Mira Mesa Boulevard, San Diego, California.
3. In accordance with Board Policy A-87, Competitive Procurement, Administrative Code Section 401, and Public Contract Code Section 20146, authorize the Director, Department of Purchasing and Contracting, to amend County Contract #570756 with Balfour Beatty Construction LLC to increase the Budget Not-to-Exceed amount up to $11.5 million.
EQUITY IMPACT STATEMENT
Investing in today’s youth who will become tomorrow’s leaders is a high priority for the County of San Diego Department of Parks and Recreation (DPR) and the San Diego/Safe Destination Nights (SD Nights) program. The rehabilitation and operation of the Mira Mesa Epicentre will activate a highly visible public space and improve public safety in the community. The facility will serve as headquarters for DPR’s SD Nights program and regional teen center hub, in which staff will coordinate events for teens in urban areas to keep them engaged in safe activities during critical hours. The Mira Mesa Epicentre will operate with the intention of diverting youth away from potentially negative behaviors by bringing them into a positive environment that equips them with social, physical, and educational tools that can help them lead healthy and productive lives.
SUSTAINABILITY IMPACT STATEMENT
The construction of the Mira Mesa Epicentre contributes to many of the County of San Diego’s Sustainability Goals: providing just and equitable access by improving the layout and wayfinding of the building to accommodate diverse physical and mental abilities, transitioning to a green, carbon-free economy by reducing the building’s energy demand by 50%, protecting health and well-being with natural daylight, enriching landscaping, and use of non-toxic materials, protecting water through responsible stormwater construction practices, and reducing pollution and waste. The refurbishment of the Mira Mesa Epicentre will provide community members of all ages access to a safe and positive environment that promotes health and well-being through various programming opportunities, including mentoring, career counseling, performing and visual arts, gardening, cooking, recreational classes, and intergenerational programs.
Because the Mira Mesa Epicentre is an existing facility within an urban environment, it will support sustainable land use practices. It is located adjacent to Mira Mesa Community Park, Mira Mesa Senior Center, Mira Mesa Library, and Mira Mesa High School and is surrounded by residential and commercial uses. The central location of the facility and its proximity to nearby public transit allows for multi-modal accessibility. Additionally, the facility will be rehabilitated to meet the latest California Green Building Standards and will strive to meet net-zero energy goals in-line with both the City of San Diego’s and County’s greenhouse gas emission reduction goals.
FISCAL IMPACT
Funds for the rehabilitation project are included in the Fiscal Year (FY) 2024-25 Operational Plan in the Capital Outlay Fund for Capital Project 1024823 Mira Mesa Epicentre Youth and Community Center. If approved, this request will result in total rehabilitation project costs and revenue of $11.5 million in FY 2024-25. The funding sources are General Fund fund Balance (GFFB) ($8.0 million) and General Purpose Revenue (GPR) ($3.5 million). There will be no change in net General Fund cost and no additional staff years from either approval of the long-term shared use agreement or the authorization to amend the existing County Contract #570756 in FY 2024-25.
The facility is projected to open in FY 2025-26. Upon completion of the rehabilitation project, funds for the initial purchase of minor equipment and start-up costs are included in the FY 2025-26 CAO Recommended Operational Plan in the Department of Parks and Recreation (DPR). If approved, this request will result in estimated costs and revenue of $100,500 in FY 2025-26. The funding source is GPR allocated to DPR and park user fee revenue.
In addition, funds for ongoing operations are included in the FY 2025-26 CAO Recommended Operational Plan in DPR. If approved, this request will result in estimated costs and revenue of $508,363 annually starting in FY 2025-26, which will include an estimated $209,763 for two existing full-time staff, $152,920 for programming costs, $145,680 for facility maintenance and utilities. No new positions will be added for this facility, two current DPR positions will be reallocated from other programs to staff this facility. The funding source is GPR allocated to DPR and park user fee revenue.
There will be no change in net General Fund cost and no additional staff years in FY 2025-26.
BUSINESS IMPACT STATEMENT
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Details
ADVISORY BOARD STATEMENT
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BACKGROUND
The Mira Mesa Epicentre, owned by City of San Diego (City) and located in the heart of the community, served Mira Mesa from 1977 to 2016. Originally built as a library, the Mira Mesa Epicentre facility later served as a community and teen center. Since the facility’s closure in 2016 due to financial hardship experienced by the operator, the facility has been vacant except for a portion occupied by the San Diego Police Department Retired Senior Volunteer Patrol.
On March 16, 2021 (24), the County of San Diego (County) Board of Supervisors (Board) identified the Mira Mesa Epicentre as a high-priority capital project and community investment that could advance equity, inclusion, youth development, and arts and educational opportunities. The Board directed the Department of Parks and Recreation (DPR) to negotiate an agreement with the City to launch a capital project that would rehabilitate the facility to ultimately operate a youth and community center, including programs for teens, like the San Diego/Safe Destination Nights (SD Nights) program. On May 18, 2021 (19), the Board directed funds to support and begin the redevelopment process of the Mira Mesa Epicentre. Following a facilities conditions assessment in February 2022, the rehabilitation scope was defined, and the planning, outreach, and design of the facility commenced.
Community feedback was incorporated in the building design through the inclusion of facilities that can host a wide variety of programming opportunities recommended and supported by community members. This feedback was gathered through multiple inputs. DPR staff held public meetings and events to gather community feedback on rehabilitation concept designs and programming preferences. These meetings included meetings open to the public as well as an event where students at Mira Mesa High School were asked to share feedback. This extensive outreach informed the construction and programmatic designs.
DPR intends to open the facility for residents of all ages, interests, and abilities via a wide variety of activities, programs, events, and meetings, with an emphasis on youth, and through collaboration with neighboring City parks, senior center, libraries, schools, the San Diego Police force, and community organizations.
From the programming feedback received, the Mira Mesa community preferred to have programs such as tutoring, mentoring, career counseling, performing and visual arts, gardening, cooking, various recreational classes, daily drop-in recreational and social opportunities, and intergenerational programs. Preferred interior amenities include a lounge area, game tables and consoles, workstations and a homework area, a music room, fitness equipment, a stage, a demonstration kitchen, and a multi-purpose space. Preferred exterior amenities include central gathering areas, open turf areas, garden areas, and outdoor sport courts. The community facility will also function as a central gathering space for youth in the Mira Mesa community and serve as a regional hub for DPR’s ongoing youth and teen programs, such as DPR’s Safe Designation/San Diego Night (SD Nights) program.
For DPR to rehabilitate, operate, and maintain the Mira Mesa Epicentre, the City and County negotiated a lease agreement (Lease) for a portion of Assessor’s Parcel Number 311-041-07, 8450 Mira Mesa Boulevard, San Diego, California, which includes the existing Mira Mesa Epicentre building and surrounding exterior site (Premises). The lease agreement acknowledges the County’s significant investment in the rehabilitation of the facility through a lease term of 45 years in which the County will be the sole operator of the facility. The lease agreement was approved by the Board on July 17, 2024 (07).
The County’s contemplated use of the Premises requires the use of the parking lot and waste receptacles, as well as ingress/egress rights (collectively, Shared Uses) over an adjacent City-owned property. Such Shared Uses are essential to County’s long-term use of the Premises. Accordingly, County staff negotiated a shared use agreement between the two agencies which, once executed, will allow the Shared Uses for the duration of the Lease. The shared use agreement requires County to contribute fifty percent of the costs relating to operation, maintenance, and repair of the property.
Construction of the project is underway through a Construction Manager at Risk (CMAR) contract with Balfour Beatty, Inc. The implementation of Public Contract Code section 20146 allows a county, with approval of the board of supervisors, to utilize CMAR contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the county. The CMAR delivery method allows the County to hire a construction manager early in the process to work collaboratively with the County’s design team, which is contracted for separately under Board of Supervisors Policy F-40, Procuring Architectural, Engineering, and Related Professional Services, and later with the general contractor. This collaborative effort between the CMAR, general contractor, and the design effort allows for design reviews and suggested cost saving alternative methods of construction at an earlier stage in the design process.
On May 4, 2021 (30), the Board authorized the Director, Department of Purchasing and
Contracting, for a period of five years, to take any action authorized by Article XXIII, Section 401, et seq. of the Administrative Code and Public Contract Code Section 20146 to advertise and award Construction Manager at Risk contracts up to $10 million.
On March 5, 2024, after a successful RFP, the County awarded County Contract #570756 (Contract) to Balfour Beatty Construction, LLC for the Mira Mesa Epicentre project. At the time of award, the expected construction budget under the Contract was $7,234,173. Throughout the project’s design and to ensure that all community-desired amenities be built, the funding allocation was increased to $11.5 million. Additional Board approval is required to increase funding beyond the $10 million threshold.
Amending the existing Contract will allow the contractor to add the community-requested outdoor amenities into the current construction phase. Inclusion of the outdoor amenities under the current Contract permits the County to leverage economies of scale, ensures that the work can be performed in sequential order, and minimizes the disruption, confusion, and increased overhead costs, that result from having multiple prime contractors on site. This schedule will also allow DPR to open the facility in the Summer of 2026.
Today's action requests the Board to authorize an amendment to the Contract to increase the Budget Not-to-Exceed amount to $11.5 million and to approve the shared use agreement.
ENVIRONMENTAL STATEMENT
The proposed shared use agreement is exempt from review pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines because it involves the license of an existing parking lot involving negligible or no expansion of the existing use.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve the long-term shared use agreement and construction CMAR amendment for the Mira Mesa Epicentre supports the Equity and Community Initiatives in the County of San Diego’s 2025-2030 Strategic Plan by promoting an environment where the community has a safe space to access recreation and enrichment opportunities.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
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