At our last meeting the Board reviewed bids for the platform tennis warming hut. Our agreement with the platform tennis club specified that the two new courts and the hut would not cost more than $350,000 and if the bids came in higher than that then the contract states than the park district can to decide to either change the design to cut costs or cancel the project. The new courts are in place and cost $140,000, leaving $210,000 for the hut. The lowest qualified bidder was $220,000 but that did not include the sewer line for the hut, which is estimated to cost $30,000 to $50,000. It also did not include locks and keys for the hut, necessary safety screening around the deck, grass seed or sod, or any fixtures or furniture for the hut.
The Board was also informed that the Glen Ellyn Parks Foundation now plans to donate $30,000 to the platform tennis warming hut. The mission statement of the Foundation is to raise money for scholarships and capital projects. Every year the Park District offers scholarships to needy children who would otherwise not be able to participate in our programs. The demand for scholarships has risen dramatically in the past few years. Last year the Park District spent $33,000 on scholarships, of which the Foundation donated $5,000. There is a finite pool of available donor money. If the Foundation chooses to spend funds on the platform tennis warming hut, then these funds are not available for scholarships or other projects. Without making cuts elsewhere, an expansion of the warming hut project, even with Foundation funds, increases the total spending of Park District funds.
The Foundation is an independent group and should choose how to direct their funds. Likewise, it is the purview of the Park District Board to choose how to direct their funds, to choose what projects to undertake and dictate the scope of those projects. In the case at hand, we have entered into a contract with the platform tennis club that sets the maximum cost of the project. The Foundation has every right to raise funds to put towards the project cost. However, I do not believe that it is appropriate for the Foundation to use its funds to push the Park District to expand the scope of the project beyond what we have already approved.
The estimated costs for the warming hut exceeds the maximum contract amount so I believe the Board should either:
1. Go back to the architect and change the scope of project to reduce the total project cost to no more than $210,000. This provision is specified in our existing contract with the platform tennis club.
2. Cancel plans to build the warming hut. This provision is specified in our existing contract with the platform tennis club
3. Renegotiate our contract with the platform tennis club to secure additional donations for the project.
The Park District should not spend additional dollars beyond the funds we have already committed to this project. The Park District is in a difficult financial position. Our fund reserves are being rapidly drained. We have no ability to take on additional non-referendum bonds. We have a very large liability on our hands fixing the Ackerman complex, and will have little left over for other unforeseen maintenance expenses. I am afraid that our problems at Ackerman have the potential to put the park district into a financial crisis in the very near future. This means that we do not, in my opinion, have the luxury of expanding nonessential capital projects.
The Board meets again on Tuesday, April 5 at 7:00 p.m. This topic is likely to be on the agenda.
Tuesday, March 29, 2011
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How much do you anticipate the Ackerman complex roof repair will be?
ReplyDeleteWhat activities by the park district do you support. If no spending is available because of our financial situation then what will you be doing as a board memeber?
I would love to discuss the costs of the Ackerman roof, but the Board is still in executive session on this matter, so I cannot. Hopefully, we will be able to inform the community about this soon.
ReplyDeleteI support all of the activities of the park district. We have great programs and facilities for our community. I will work to keep these going.
Board members should be doing a lot more for our community than just spending taxpayer money. We will continue to set policy, approve the budget, operate transparently and look at big-picture items like long term financial planning and capital planning.