San Bruno to OK new rec center

A majority of the overall cost will be paid with $50 million from the San Bruno Community Foundation, which was charged with managing the restitution payment from Pacific Gas and Electric following the Crestmoor gas pipeline explosion.

The foundation also spearheaded the community outreach effort leading up to the decision by city officials four years ago to spend the money earmarked for improving the city’s quality of life on a new recreation center.

Mayor Rico Medina expressed his enthusiasm over the opportunity to move toward construction of the landmark project after years of planning.

“This is a big step for the city, the residents and the council,” Medina said.

A former city employee who had worked previously in the center, Medina said he considered it a bittersweet moment to see a building with so much history nearing the end of its useful life.

He balanced that perspective though by noting the new building will be a critical resource for the next generation of San Bruno community members.

“We are all very excited by the prospect of this,” he said.

To that end, he suggested officials should pursue the project if they hope to be able to afford it.

“I think we all know that in today’s world, if you don’t do it now and want to put it off for five years, it’s going to cost that much more,” he said.

Lathrop is recommended to win the construction bid over five other applicants — BHM Construction, Thompson Builders Corporation, S.J. Amoroso Construction Company, Swinerton Builders and Overaa Construction.

The Lathrop bid was the third lowest received by the city, with Thompson Builders and BHM Construction coming in lower. But upon further analysis, the lower bidders did not meet prequalification standards and were excluded from consideration, according to a city report.

“In its evaluation of Lathrop Construction, the No. 3 low bidder, the city found their bid to be responsive and their prequalification status intact and therefore deemed Lathrop Construction the lowest responsive and responsible bidder,” according to the report.

Lathrop’s base bid amounts to basically $40 million, which allowed for roughly $3 million worth of additional amenities and design features to be included in building plans while remaining under the $50 million cap.

The overall project cost considers the building bid, as well as $6.4 million to Group 4 for design work, $4 million for contingency costs, $1.2 million for construction management and almost $5 million in other work and fees.

To fulfill the budget, officials are planning to build on top of the $50 million from the community foundation with $4.5 million paid by YouTube as part of the corporation’s campus expansion proposal.

Additionally, $1.7 million will be drawn from the city’s park in-lieu fund, $1 million in settlement funds paid by PG&E to the city, $900,000 in residual money from the funds set aside to rebuild the Crestmoor neighborhood and about $2.8 million in contributions from various other city funds.

Regarding the proposal to spend the money from YouTube, Medina said he felt it was appropriate to direct those resources paid as a community benefit into a facility improving the quality of life for residents.

“If the council wants to use the YouTube payment, that is a huge step,” he said. “That is one-time money that will be invested in a municipal facility that will serve the community for decades to come.”

For his part, Medina said he holds no reservations or concerns with the proposed plans. But he expected that fellow officials would dissect the financing strategy during deliberations.

“I don’t have any immediate concerns. But I do believe there will certainly be questions. And I expect it will be a good, important discussion,” he said.

Ultimately, Medina said he looks forward to working through the proposal with his colleagues and delivering a cherished amenity.

“I think we will be able to find what is best for the community and I think the council will come together and assure this is a successful project,” he said.

austin@smdailyjournal.com