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HomeMy WebLinkAbout2026-05-12; City Council; 05; Increase to City Manager or Designee’s Authority to Approve Change Orders for the Monroe Street Pool Renovation and Replacement Project and Appropriate Additional FundingCA Review TL Meeting Date: May 12, 2026 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Steven Stewart, Municipal Projects Manager steven.stewart@carlsbadca.gov, 442-339-2938 Kyle Lancaster, Parks & Recreation Director kyle.lancaster@carlsbadca.gov, 442-339-2941 Subject: Increase to City Manager or Designee’s Authority to Approve Change Orders for the Monroe Street Pool Renovation and Replacement Project and Appropriate Additional Funding District: 1 Recommended Action Adopt a resolution authorizing an increase to the City Manager or designee’s change order approval authority and appropriation of additional funding for the Monroe Street Pool Renovation and Replacement Project. Executive Summary Carlsbad voters approved Measure J in November 2022, which authorized the city to spend up to $24 million in city funds, adjusted annually based on the regional construction cost index, to renovate and replace the aging Monroe Street Pool facility. The City Council then awarded the construction contract for the Monroe Street Pool Renovation and Replacement Project to Edwards Construction Group, Inc. on Jan. 14, 2025, in an amount not to exceed $14,126,653. The City Council also authorized the City Manager to approve construction change orders associated with the pool replacement of up to $1,695,198, for a total potential construction contract cost of $15,821,851, well below the voter-approved spending cap of $24 million. During construction, which began in March 2025, the contractor uncovered unexpected and substantial termite and wood rot damage to the roof structure of the pool’s administrative building, which required a complete replacement of the structure. Much of the project’s contingency funds went into this and similar unforeseen and unanticipated construction costs. May 12, 2026 Item #5 Page 1 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 As such, to complete the project by the target date of late summer/early fall 2026, staff are requesting that the City Council authorize an additional appropriation of $800,000 to the project budget and increase the City Manager’s authority to approve construction change orders in an amount not to exceed an additional $800,000 for a total change order authority of $2,495,198. Staff do not anticipate any new issues given the status of the construction. However, if an issue arises, this money can be used to cover costs so the opening date of the pool will remain on schedule. Explanation & Analysis Background In 2022, the city found that given its age and use, the Monroe Street Pool, at 3401 Monroe St., needed significant renovation and expansion. Because the remodeling work would cost more than $1 million in general city funds to complete, the proposed work and associated costs needed to first be approved by Carlsbad voters. In November 2022, voters approved Measure J, which authorized the city to spend up to $24 million in city funds, adjusted annually based on the regional construction cost index, to replace and expand the aging pool. Following an exhaustive construction bidding process, the City Council awarded the contract for the project, Capital Improvement Program Project No. 4724, to Edwards Construction Group, Inc. in an amount not to exceed $14,126,653 on Jan. 14, 2025. A total of $1,695,198 in additional contingency was included in the budget to cover construction change orders, for a total potential project cost of $15,821,851, well below the $24 million cap imposed by voters. Because the total construction cost was less than the appropriated amount, the City Manager returned $1,402,074 in excess appropriations from the project budget back to the General Capital Construction, Infrastructure Replacement and Park-In-Lieu Fees Northwest Quadrant funding sources. Requested additional funds Construction work for the Monroe Street Pool facility started on March 31, 2025, with an anticipated completion date in summer 2026. During the course of construction, however, previously unforeseen conditions were encountered, resulting in unanticipated costs and work delays. The most significant cost impact was due to substantial termite and wood rot damage found in the roof structure of the pool’s administrative building, which needed to be completely replaced. Another cost arose when the existing water service to the site was found to be insufficient to support the new pool, showers and restrooms, which required the unplanned replacement of that infrastructure. Yet another unanticipated cost was due to asbestos-containing irrigation pipes which required abatement. To complete the project by the late summer/early fall target date, staff are requesting that the City Council authorize an additional appropriation of $800,000. Staff are also requesting that the City Council authorize an increase in the City Manager’s authority to approve construction change orders for the project up to an additional $800,000 for a total change order authority of $2,495,198 to fund the unanticipated additional costs and maintain the established project schedule. May 12, 2026 Item #5 Page 2 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 Staff do not anticipate any new issues arising given the status of the project. However, if an issue arises, this money can be used so the opening date of the pool will remain on schedule. Fiscal Analysis When the contract was awarded, the City Manager returned excess appropriations in the amount of $1,402,074 to the General Capital Construction, Infrastructure Replacement, and Park-In-Lieu Fees Northwest Quadrant funding sources, which funded the project. There are sufficient funds available in these funding sources for the additional appropriation requested. Funding for Monroe Street Pool Renovation and Replacement Project Capital Improvement Program Project No. 4724 Total appropriation to date $20,164,977 Total expenditures and encumbrances to date -$19,568,673 Total available balance $596,304 Public art and outreach, special inspections and testing, furnishings and staff oversight time (estimated) -$421,313 Unanticipated project costs -$975,000 Total remaining project costs -$1,396,313 Remaining balance -$800,009 Additional appropriation needed (rounded) $800,000 General Capital Construction Fund (53%) -$424,000 Infrastructure Replacement Fund (34%) -$272,000 Park-in-lieu fees – Northwest Quadrant (13%) -$104,000 Because certain projects costing over $1 million in general city funds require voter approval, the City Council put a measure on the ballot for the Monroe Street Pool Renovation and Replacement Project in November 2022, which was approved. Measure J authorized the city to spend up to $24 million, adjusted annually based on the regional construction cost index, which tracks inflation specifically for the construction industry. These annual adjustments would ultimately authorize a project cost of up to $26,861,883 (as of January 2026). The project’s construction cost, including the additional $800,000 in appropriations, is currently significantly less than the amount authorized by Measure J. Next Steps With the City Council’s approval, staff will appropriate additional funding in the total amount of $800,000 to the project budget, and the funding will be used as needed to substantially complete the project in late summer/early fall 2026. With the City Council’s approval of the City Manager or designee’s increased contract change order authority of up to an additional $800,000, staff will continue to process construction change orders for unanticipated costs and for progressing on the established project schedule. May 12, 2026 Item #5 Page 3 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 Any funding remaining upon completion of the project will be returned to the respective funding sources. Environmental Evaluation On July 19, 1977, the City Council certified the Environmental Impact Report (EIR-380) for the Monroe Street Pool, at the time identified as the “community swimming pool.” The project is within the scope of the prior environmental document and no further environmental documentation is required per California Environmental Quality Act Guidelines Section 15162. The conditional use permit, CUP-158, and the certified environmental impact report, EIR-380, for the Community Swim Complex allowed for larger pool(s), building(s) and parking lots than what was originally constructed. All applicable mitigation measures contained in the prior environmental document have either been satisfied previously and/or were made conditions of approval of the project’s approved conditional use permit. There have not been substantial changes to the circumstances under which the project is undertaken and there have been no new significant environmental effects that would modify or change any mitigation measures. The pool operates in conjunction with the existing school facility, and the proposed changes do not result in new significant impacts or a substantial increase in the severity of previously identified impacts because the site and neighborhood context have not changed. Projects constructed by the school district since the pool was constructed have not impacted pool operations. The changes to the pool will have no impact to the adjacent school facilities. The mitigation measures to reduce impacts remain in place and are adequate to maintain the same level of significance studied in the previous EIR, therefore, none of the situations in Section 15162 (a) exist and no additional environmental review is necessary. The certified environmental impact report and mitigation measures are on file for review at the Planning Division. The City Planner determined on Feb. 7, 2023, that design Concept 3 was consistent with the approved conditional use permit for the Community Swim Complex (the former name of the Monroe Street Pool), as shown in Exhibit 2. Exhibits 1. City Council resolution 2. Location map May 12, 2026 Item #5 Page 4 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 Exhibit 1 RESOLUTION NO. 2026-089 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING AN INCREASE TO THE CITY MANAGER OR DESIGNEE’S CHANGE ORDER APPROVAL AUTHORITY AND APPROPRIATION OF ADDITIONAL FUNDING FOR THE MONROE STREET POOL RENOVATION AND REPLACEMENT PROJECT WHEREAS, on Jan. 14, 2025, the City Council adopted Resolution No. 2025-003, awarding a construction contract to Edwards Construction Group, Inc., in an amount not to exceed $14,126,653 for the Monroe Street Pool Renovation and Replacement Project, Capital Improvement Program Project No. 4724, or Project; and WHEREAS, Resolution No. 2025-003 authorized the City Manager or designee to approve construction change orders for the Project in an amount not to exceed $1,695,198; and WHEREAS, at the time of contract award, the City Manager returned excess appropriations in the amount of $1,402,074 from the Project budget back to the respective funding sources; and WHEREAS, construction of the Project commenced on March 31, 2025, and is progressing towards a completion date in late summer 2026; and WHEREAS, an additional appropriation in the amount of $800,000 to be funded with $272,000 from the Infrastructure Replacement Fund, $424,000 from the General Capital Construction Fund, and $104,000 from the northwest quadrant Park-In-Lieu Fees is needed to complete construction of the Project due to unanticipated project costs and for progression on the established project schedule; and WHEREAS, certain projects over $1 million of general city funds require voter approval; and WHEREAS, the City Council put a measure on the ballot for the Monroe Street Pool Renovation and Replacement Project in November 2022, which was approved; and WHEREAS, Measure J authorized the city to spend up to $24 million, adjusted annually based on the regional construction cost index, which tracks inflation specifically for the construction industry, for the Project; and WHEREAS, the $24 million adjusted annually per the regional construction cost index is now up to $26,861,883 as of January 2026; and WHEREAS, the total anticipated Project cost of $20,964,977, which includes the requested $800,000 additional appropriation, is well below the authorized amount of $26,861,883; and May 12, 2026 Item #5 Page 5 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 WHEREAS, staff are requesting that the City Council authorize an increase in the City Manager or designee’s authority to approve change orders for the Project by $800,000 for a total change order authority of $2,495,198; and WHEREAS, the City Council has determined that it is in the best interest of the city to appropriate additional funding and authorize an increase in the City Manager’s authority to approve construction change orders. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.On July 19, 1977, the City Council certified the Environmental Impact Report (EIR-380) for the Monroe Street Pool, at the time identified as the “community swimming pool.” The project is within the scope of the prior environmental document and no further environmental documentation is required per California Environmental Quality Act Guidelines Section 15162. The conditional use permit, CUP-158, and the certified environmental impact report, EIR-380, for the Community Swim Complex allowed for larger pool(s), building(s) and parking lots than what was originally constructed. All applicable mitigation measures contained in the prior environmental document have either been satisfied previously and/or were made conditions of approval of the project’s approved conditional use permit. There have not been substantial changes to the circumstances under which the project is undertaken and there have been no new significant environmental effects that would modify or change any mitigation measures. The pool operates in conjunction with the existing school facility, and the proposed changes do not result in new significant impacts or a substantial increase in the severity of previously identified impacts because the site and neighborhood context have not changed. Projects constructed by the school district since the pool was constructed have not impacted pool operations. The changes to the pool will have no impact to the adjacent school facilities. The mitigation measures to reduce impacts remain in place and are adequate to maintain the same level of significance studied in the previous EIR, therefore none of the situations in Section 15162 (a) exist and no additional environmental review is necessary. The certified environmental impact report and May 12, 2026 Item #5 Page 6 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 mitigation measures are on file for review at the Planning Division. The City Planner determined on Feb. 7, 2023, that design Concept 3 was consistent with the approved conditional use permit for the Community Swim Complex (the former name of the Monroe Street Pool). 3.That the City Manager, or designee, is authorized to appropriate a total additional amount of $800,000, to be funded with $272,000 from the Infrastructure Replacement Fund, $424,000 from the General Capital Construction Fund, and $104,000 from the northwest quadrant Park-In-Lieu Fees to the Monroe Street Pool Renovation and Replacement Project, Capital Improvement Program Project No. 4724. 4. That the City Council authorizes an $800,000 increase in the City Manager or designee’s authority to approve construction change orders for a total change order authority of $2,495,198 for the Monroe Street Pool Renovation and Replacement Project, Capital Improvement Program Project No. 4724. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of May, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) May 12, 2026 Item #5 Page 7 of 8 Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 LOCATION MAP NOT TO SCALE PROJECT NAME MON ROESTREETPOOLREPLACEMENTP ROJECT PLOTIFJJ BY: SCOTT £VANS PLOT DATE:2/6/19 PATH:D: \CITY FACILJ11£S\AUTOCAD MAPS\LOCA110N MAPS\COl,/MUN/TY SIii/,/ COMPl£X LOCA110N MAP -MONROE.DWG Exhibit 2 EXHIBIT 2 May 12, 2026 Item #5 Page 8 of 8 MONROE STREET POOL RENOVATION AND REPLACEMENT PROJECT Docusign Envelope ID: AC15F855-BA16-4B53-8897-11831A46C422 From:Alexandra Wallock To:City Clerk Subject:Monroe Street Pool Date:Tuesday, May 12, 2026 1:28:01 PM I am forwarding the email below to correct email address: Dear Carlsbad City Council Representative, I'm writing today to express my concern regarding the construction timeline for the Monroe Street Pool. I am a mother of 2 water polo players. We have been driving to the William Wagner Aquatic Center in Oceanside for practices for over a year now while Monroe has been under construction. The roundtrip drive is over an hour and the practice times are very late, due to the lack of pools available in North County. My request is that we put any and all efforts available into the completion of the Monroe Street pool as the community depends on this establishment for swim, dive and water polo practices. In addition, the Freshman at Carlsbad High will only be able to take Aquatics P.E. if the pool is completed before school resumes this Fall. We are so excited for the finished product, and we are so grateful the council approved the pool remodel for our community. Thank you for all you are doing for Carlsbad! Alexandra Wallock Carlsbad resident since 2010 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. All Receive - Agenda Item #_____ For the Information of the: CITY COUCNIL Date: ___________ CA ____ CC____ CM ____ ACM ____ DCM (3) ____ 5 5/12/2026 x x x x x