The Cambria Skatepark Project is located adjacent to 1043 Main Street on a vacant parcel, APN 013-101-072. The Skatepark Project is comprised of a concrete skatepark, an adjoining parking lot, and a single-stall bathroom with an exterior drinking fountain. It will be a valued recreational asset for local youth and visitors; however, the project currently faces significant challenges, including a construction funding deficit and the need for long-term sustainability. Given these financial constraints and the ongoing development of the East Ranch Community Park Plan, staff has explored potential alternatives to address these concerns and provided a detailed project timeline.

As stated in presentations at the Special Board meetings on October 30 and November 20, 2021, the Skatepark Project faces challenges related to parking requirements, storm basins, environmental factors, various setbacks, and restrooms.

On November 30, 2021, former President Steidel suggested that a resolution be brought forward for a commitment of $177,000 toward the Skatepark Project to augment privately raised funds. At the November 30, 2021, agenda review meeting, this item was discussed, and former President Steidel and former Vice President Howell, in conjunction with former General Manager Weigold, agreed to place the item on the agenda with the funding amount increased to $178,000.

On December 9, 2021, the Board of Directors discussed and considered the terms and conditions for reaching the targeted goal of $178,000, including, but not limited to, the District’s annual contribution goal and any other budgetary considerations, and adopted Resolution 49-2021 establishing an annual budget to achieve a target of $178,000 for development of the Cambria Skatepark. Skate Cambria agreed that they would raise additional funds required for the Project.

On January 13, 2022, the Board of Directors formed a Board Skatepark Ad Hoc Committee to oversee the project, which was tasked with presenting a report on project funding to the Board for its discussion and consideration. The Board also discussed directing District Counsel to prepare a Memorandum of Understanding (MOU) between the District and the Cambria Community Council for the future funding of the Skatepark Project. Ultimately, this issue was deferred to February 10, 2022.

On February 10, 2022, the Board of Directors received, accepted, and filed the attached Skatepark Ad Hoc Committee Report. The Board understood that an operating and maintenance fund must be established before beginning the construction phase. The Board instructed District Counsel to prepare an MOU to address funding of the Skatepark Project.

On March 28, 2022, the CCSD and Cambria Community Council (CCC) entered into an MOU for Skatepark Funding to set forth how and when the CCC will disburse the funds raised for the Skatepark Project to the various project phases, which include design, permitting, bidding and construction, and operation and maintenance. As set forth in the MOU with the CCC, the bidding and construction phase of the Skatepark Project is contingent upon all the funds necessary to construct the Project having been raised by Skate Cambria, which will include funds sufficient to create a reserve fund for operation and maintenance of the Skatepark.

On April 14, 2022, the Board of Directors approved an agreement with Civil Design Studio to assist the District with permitting and construction design services for the Cambria Skatepark project. After much discussion and coordination with the County Planning and Building, and Public Works Departments, the project plans incorporated the County’s preliminary review comments into the current design. Geotechnical, Archeological, and Land Surveys were also completed to inform the design, and those results were also incorporated into the design. The design package was then ready to be submitted to the County Planning and Building Department to move forward with the permitting process. Although the permitting process does not require a cost estimate, staff included an engineering estimate for this stage in the design. It is important to note that the engineering cost estimate will most likely change based on any modifications from the permitting process and other factors. Also, note that the construction contractor bids for the project almost always differ from the engineering costs. The current engineering cost estimate is $1,020,461 for planning and budgeting purposes. The preliminary cost estimate presented on Oct 31, 2021, was $661,000. The increased cost of materials, labor, off-site improvements, and the need to construct an all-gender accessible restroom per the County Building Code are some of the reasons for the cost increase. Staff believes the current design is ready to officially submit the land use permit application to County Planning and Building to start the permitting process. If approved to submit the permit application, the permitting process will include Planning and Building, Public Works, and Environmental Review. It must go to various review boards, including the County Planning Commission, as design exemptions for parking and setbacks are being requested.

On April 21, 2022, the Board of Directors approved an MOU with the Cambria Lions Club to memorialize their offer to contribute $1000 per year for five years to help fund the cost of maintaining the Skatepark once it has been constructed. The bidding and construction phase of the Skatepark Project is contingent upon and will not commence until all of the funds necessary to construct the Project have been raised and have been deposited with the CCC, which will include funds sufficient to create a reserve fund for operation and maintenance of the Skatepark.

On November 17, 2022, the Board of Directors received a staff update on the Cambria Skatepark Project and directed staff to proceed with the permitting process. On May 11, 2023, the CCSD and CCC entered into an Amendment to the MOU for Skatepark Funding to address issues related to potential grant funding for the project.

On May 18, 2023, the Board of Directors approved Resolution 31-2023. This Resolution required the District to restrict approximately $843,784 of General Fund Reserves with the grant application. With the acceptance of this grant, the District will be able to release $47,500 of the previously restricted General Fund Reserves for the Cambria Skatepark Project.

On May 25, 2023, the Board of Directors approved the Land and Water Conservation Fund Grant (LWGF) Application for the Cambria Skatepark Project.

On September 14, 2023, the Board of Directors approved and entered into an Agreement for Local Area Grant Funding with the County of San Luis Obispo on behalf of the San Luis Obispo County Tourism Business Improvement District (CBID) for the bathroom at the Cambria Skatepark. The District received $47,500 in grant funding (non-matching) from the County on behalf of CBID to offset the cost of the bathroom.

On November 9, 2023, the Board of Directors approved an Intent to Serve Letter for the Cambria Skatepark restroom. The current cost for the Skatepark Project is estimated at $1,020,461. Since there is a likelihood that material and construction costs will escalate due to inflation, staff thought it would be prudent to provide a contingency for the project to bring the budget to $1,200,000. As indicated, the District has an MOU with the CCC to share costs up to $178,000 for the project and holds $24,334 of the CCC funds to cover expenses already contracted. As of the date of this report, the CCC has raised $406,882 to help support this important project, including $75,000 worth of pledges. This type of grant program requires a 50/50 match and is a reimbursement-based grant program. This grant program also requires all project cost funding to be committed at the time of the application submission. The deadline for applying is June 1, 2023. If the Board decides to apply for this grant, the District must restrict approximately $768,784 of General Fund reserves. Grant awards are expected in late 2025. Expenses would be reimbursed at an 80% rate during construction, and the remaining 20% would be due upon the filing of notice of completion. Construction is expected to take six months. As funds are spent or more fundraising dollars are obtained, the General Fund reserves restricted for the project could be unrestricted. After discussing this grant opportunity with then-acting General Manager Ray Dienzo and the CCSD Board-appointed Skatepark Ad Hoc Committee, consideration of this application went before a special meeting of the PROS Commission on February 14, 2023; the Commission agreed that the District should participate in this grant program and referred it to the Finance Committee for further consideration. The Finance Committee initially discussed this item at their February 28, 2023, meeting, where they requested more information and then met again on March 28, 2023, for further discussion. Concerns raised at the Finance Committee's March 28, 2023, meeting are summarized as follows:

• Potential risks of setting aside reserve funds for an estimated 2-3 years for the project completion.
• There is potential for alternative needs for funds that could impact the feasibility of investing and committing funds for this project's lengthy period.
• Risks of cost overruns or construction overruns are always uncertain.
• Other projects may require additional funding sooner rather than later, such as modernizing the Vets Hall or addressing emergency issues that may arise. However, the possibility of borrowing funds was raised as an alternative in an emergency.

After discussing these issues, the Committee voted 4-1 (Cindy Steidel dissenting) to recommend to the Board that the District apply for the LWCF grant for the Skatepark Project for the grant application total of $1,200,000. As LWCF understands that unexpected financial issues may arise through no fault of the District, staff has verified with LWCF staff that the District can withdraw its application from the grant process at any time if there is an unexpected emergency. In that event, the District would be required to send an email or letter from its authorized representative requesting to withdraw the application and explaining its reasoning. This can occur during the grant review process or when the project is recommended for funding. The grant application is due by June 1, 2023. Staff continues to work towards completing the appropriate requirements, including fulfilling the California Environmental Quality Act (CEQA) environmental compliance requirements. If the Board approves submitting this grant application, staff will work with LWGF staff regarding CEQA compliance.

The Skatepark Project faces a funding shortfall due to increased construction costs, maintenance needs, and limited available grants. The funding gap has raised concerns regarding the project's viability in its existing location and scope. Current funding sources include:

• Private Donations: Contributions have been received, though ongoing fundraising efforts continue to close the funding gap.
• Grants: The District has secured a $600,000 matching grant, the funding of which is pending at the federal level.
• District Budget: Due to competing priorities, District funds available for the skatepark are limited.

To date, the District has spent approximately $123,944 on preliminary costs. Upon application submittal, the District must restrict General Fund reserves in the amount of approximately $768,764 until construction begins. Grant funds would be reimbursed at an 80% rate during construction, and the remaining 20% would be due upon filing of a notice of completion.

At the March 13, 2025 regular Board meeting, the Board of Directors considered alternatives for completion of the Cambria Skatepark Project, including changing its location. The Board determined that the Skatepark location should not change and considered concerns that had been raised by staff regarding funding shortfalls for the Project. The concerns are based on the current cost estimates for the Skatepark Project, and the fact that there is a likelihood that material and construction costs will escalate further due to inflation and other economic factors. The District has been approved for a $600,000 Land and Water Conservation Fund Grant (LWFG), which requires a 50/50 match. The District has previously established its share of Project costs at $178,000 and also holds $24,334 of funds from the CCC, which funds are to cover expenses already contracted for. Thus far, the CCC has raised $406,882, which includes $75,000 in pledges. The total amount of funds currently available for the Project (including the LWFG) is as follows:

The District has obtained four estimates of the cost of the Skatepark Project, two engineering estimates (Cannon and Civil Design Studios), and two from general contractors (Coastline and Chaves) as follows:

The contractors’ mock bids submitted for the Skatepark construction do not include any contingencies; however, the engineering estimates above include a 15% contingency. The staff has removed the 15% contingencies from the above engineering estimates, averaged the costs of the four estimates, and believes the Board should discuss and consider the desired funding contingency to cover unexpected costs that arise during the construction of the Project.  The average of the four Project cost estimates is $1,263,381.96. Staff believes that the Board should consider this figure in analyzing how best to move forward, including how to determine the current shortfall or “gap” between Project cost and money available. Based on these two figures, the gap is currently $249,104.02.

After considering the matter at the March meeting, the Board determined that the District will accept the LWGF Grant and enter into an additional amendment with the CCC to clarify that a funding shortfall is anticipated and that the CCC will bear the risk of any cost overruns. Accordingly, staff has prepared the attached Second Amendment to MOU, which includes express language that the anticipated funding shortfall will be the responsibility of the CCC and that the CCC understands that work on the Project may need to be suspended in the event of any funding shortfalls once construction contracts have been awarded. It also provides that any such suspension of work, which will likely result in additional costs and claims from the contractor, will also be the responsibility of the CCC.

On March 13, 2025, the Board of Directors unanimously approved to receive funding of the current grant, specifically and definitively define the gap, provide the number, and also clarify who bears the risk of cost overruns by a new MOU or amendment. When the Community Council has that amount of funds, and has that gap closed, we go out to RFP, and the Skatepark will remain at Assessor's Parcel Number (APN) 013-101-072.

On April 10, 2025, the Board of Directors unanimously approved  Board of Directors execution of the Second Amendment to Memorandum of Understanding with the Cambria Community Council for Skatepark Funding.