PenMet carrying over much of 2022 capital budget to 2023

Posted on November 2nd, 2022 By:

Peninsula Metropolitan Park District’s 2023 capital budget will look much like this year’s. In fact, the district didn’t spend $29.2 million of the $34.5 million in its 2022 capital budget.

The district is carrying that money over, staff described during a public hearing Tuesday night at Gig Harbor Civic Center.

Much of the carryover is from $23.7 million budgeted in 2022 for the community recreation center. The district will instead spend much of that $23.7 million in 2023.

Through September, PenMet spend $829,000 on the CRC this year. In 2023, PenMet is allocating another $1.6 million to complete the project at the former Performance Golf Center.

Sketch of PenMet Parks' community recreation center looking from the north with the existing Performance Golf building in the background.

Sketch of PenMet Parks’ community recreation center looking from the north with the existing Performance Golf building in the background. Courtesy of PenMet Parks

“The CRC is a good example of a project that is funded over multiple years,” said Executive Director Ally Bujacich. “We started funding this project in 2019 or 2020. We’re working at aggregating multiple years to reach that funding.”

Total cost of the project is targeted at $31.6 million, not including the 17-acre site that PenMet bought in 2019 for $4.3 million.

Phase 1 coming along, set to open in early 2023

Phase 1 comprises renovating the existing building, which will become PenMet headquarters and a multipurpose community space. That work is under way and expected to be completed in early 2023, said Bujacich.

The tee box demolition is almost complete and interior work is in progress, said Director of Park Services Dennis Ryan.

Interior design of PenMet Parks' future community recreation center.

Interior design of PenMet Parks’ future community recreation center. Courtesy of PenMet Parks

The second phase will be a 58,300-square-foot building containing an indoor turfed soccer/football field, three multipurpose gymnasium courts, an elevated walking/jogging track and more community space. Design is 90% complete and the district expects to submit the permit application to Pierce County in a couple weeks, Ryan said.

“We need to work through the permitting process and the bidding process,” Bujacich said. “To some extent we’re at the mercy of material lead time. We think it’s reasonable to anticipate completing the project sometime in the first part of 2024.”

Listed separately in the 2023 budget is $147,000 to replace the roof on the existing building and $80,000 to upgrade the mini golf course there.

Other big projects for 2023

Also being carried over is much of the $1.5 million renovation of Rosedale Hall, which is in the design phase.

Among big-money projects on the 2023 capital budget is $1.7 million to develop a master plan for DeMolay Sandspit and implement the highest priorities it reveals, which will include determining what to do with the concrete block building and improving accessibility.

“Beyond that, we’ll take a fresh look at that site and learn from the community what their priorities are,” Bujacich said.

front of Rosedale Hall

The renovation of Rosedale Hall is in the design phase. Construction will take place in 2023.

Madrona Links Golf Course will receive $500,000 for yet-to-be-determined improvements.

When prioritizing projects for the capital budget, the district weighs safety, deferred maintenance, planned major maintenance and strategic initiatives.

“We do approach this capital plan strategically every year and work hard to get the most bang for the district’s buck,” Bujacich said.

The district plans another public hearing on Nov. 15 at the Civic Center, after which its board will adopt the capital and operating budgets.

2023 Capital Budget

  • Develop master plan, address highest priorities for DeMolay Sandspit: $1,690,489
  • Community Recreation Center: $1,584,667
  • Madrona Links Golf Course work to be determined: $500,000
  • Capital campaign initiatives for CRC: $311,443
  • Repair and repave Narrows Beach access road: $285,000
  • Fox Island Fishing Pier accessible ramp and handrail: $275,400
  • Replace roof of existing CRC building: $147,000
  • Upgrades to Tubby’s Trail Dog Park: $118,000
  • Replace park entry gates: $90,000
  • Upgrade mini golf course at CRC: $80,000
  • New operations vehicle: $52,000
  • Deferred maintenance of single-family homes at Sunrise, Narrows: $50,000
  • Planned major maintenance TBD: $50,000
  • Replace top rail at Fox Island Fishing Pier: $20,000
  • Total: $5,253,999
  • 2022 carried forward: $29,239,628
  • Total 2023 capital budget: $34,493,627

PenMet to collect $8.4 million in property taxes

PenMet held another public hearing Tuesday about property tax collections for 2023, and the board later voted to adopt them.

The district is authorized to collect property taxes of 75 cents per $1,000 of assessed value but is limited to 1% more than the amount it received the previous year. Voters approved a six-year levy lid lift in November 2017 that bumped the cap from 1% to 6% through 2023.

In 2022, the levy will reap $7.8 million. A 6% increase will preliminarily result in an $8.4 million take in 2023, a $466,000 increase, said Finance Director Stephanie Buhrman. Property taxes would comprise about 83% of PenMet’s general fund revenues.

Public hearing documents were included in the agenda packet posted to PenMet’s website and notice was published in The News Tribune/Peninsula Gateway, but nobody came Tuesday.

Change order of $372,000 approved for CRC work

Also Tuesday, the PenMet board approved a change order of $372,000 for Phase 1 of the community recreation center after the scope of work changed. The $943,000 contract with Grenlar Holdings, which began work on July 28, was bumped to $1.3 million.

Grenlar was tasked with replacing the portion of the existing building’s roof where it was disturbed during tee box demolition. The district determined that replacing the rest of the roof while they’re at it ($120,000) would save $25,000 in the long run.

A Pierce County plan review revealed a second outside stairway from the second floor ($100,000) is required and that the main entrance must be modified ($75,000) to meet fire code.

Sketch of the front entrance to the PenMet community recreation center.

Sketch of the front entrance to the PenMet community recreation center. Courtesy of PenMet Parks

PenMet decided that traditional hard walls separating offices from community space would be more cost-effective than a soft barrier ($30,000). Grenlar was contracted to paint just the north side of the building, but the district decided that painting the entire exterior would extend its life and look better ($30,000).

Grenlar will also add data cabling ($12,000) and modify existing sprinkler heads that weren’t installed properly ($15,000). Changes to the electrical system will save $10,000.

The contingency fund covers all the added costs except the roof (a separate line item in the proposed 2023 budget) and the walls (shifted from the project’s soft cost budget).

Ribbon-cutting event for Arletta Schoolhouse Nov. 14

Bujacich announced a public ribbon-cutting ceremony on Nov. 14 for the Arletta Schoolhouse renovation project at Hales Pass Park. The event will include an open house and book drive from 3-5 p.m., Harbor History Museum presentation at 4 p.m. and ribbon-cutting and speeches at 4:30 p.m. The park is at 3507 Ray Nash Drive.

Arletta Schoolhouse

The renovation of Arletta Schoolhouse will be celebrated on Nov. 14.

The event “will honor the building’s history as a schoolhouse and revolve around schoolhouse activities,” such as art and PE classes and the museum’s history class, Bujacich said. “It’s a great way for the public to come and see the finished product that will be available for public use.”

PenMet seeking input from public

PenMet is inviting community members to attend a workshop to help evaluate the benefits of its programs and services. Residents have three opportunities to attend — two in-person and one virtual. The meetings will be facilitated by a consulting firm that is helping PenMet develop a cost recovery philosophy and policy based on the community’s values for recreation programs and services.

The workshops are Nov. 16 from 5:30-7 p.m. and Nov. 17 from 8:30-10 a.m. at Sehmel Homestead Park and virtually on Nov. 17 from 11:30 a.m.-1 p.m.

Demolition work to cause limited park closures

A contractor will demolish old structures at DeMolay Sandspit, Narrows and Sunrise Beach parks and at the Peninsula Gardens property between Nov. 30 and Dec. 9. The work requires limited closures. Watch the PenMet website for updates.