Join Club

Peter’s Take: Aquatics Center’s Soft Costs Escalate While Arlington Expects Hard Fiscal Landing

Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.

On Tuesday (Jan. 29), the County Board approved a contract for a new A/V system for the Aquatics Center.

It first appeared from a reading of a county staff report (Item 23 at pp. 2-3) that the “soft costs” of the new A/V system were being paid for out of a total of $3.2 million in “new funding.”

Background

When the County Board approved the Aquatics Center’s design-build contract in Nov. 2017, $7.5 million was included for soft costs (at p. 12) to cover “construction administration, county staff time, permits, other consultants, FF&E, technology, and public art.”

The staff report before the Board last night said that these soft costs had escalated 42.7 percent to $10.7 million (at pp. 2-3). Of the additional $3.2 million, the only new soft cost specified was a $450,700 expenditure for new A/V system:

“soft costs include construction management, project management, County staff time, permits, other consultants, FF&E, audio-visual, and public art. The funding for the audio-visual package was funded from the $10.71 million in associated soft costs, from the following funding source and account: Pay-As-You-Go (PAYG) capital funds (313.480001.80001.LBAD.0649.0000).”

The staff report does not explain how the remaining $2,749,300 of costs are allocated among all the other items noted, such as for staff time or consultant fees.

Payment for the additional soft costs

A vote on the new A/V system was pulled from last Saturday’s consent agenda by Katie Cristol after the Board received a letter from John Vihstadt questioning the expenditure.

Last night, staff members from Arlington’s Department of Parks and Recreation (DPR) said that the $3.2 million in PayGo capital used as the source for the funding of these additional soft costs had been in last year’s CIP for the Aquatics Center all along. Therefore, they claimed, using these funds for the new soft costs did not represent any increase in the total project cost for the Aquatics Center. That total cost had been $70.7 million all along, not the $67.5 million the community had assumed.

Based on what it heard, the Board voted last night to approve the new contract for the A/V system.

The right talk, but not the right walk

The Board should not have approved the A/V contract in these fiscally austere times.

At its Jan. 2 organizational meeting, the County Board prepared the community for anticipated tough fiscal times this year: “The only responsible course is fiscal austerity, County Board Chairman Christian Dorsey said….”

Late last year, the County Manager had already warned about projected major shortfalls facing us in his proposed FY 2020 budget: “In all, the county’s combined budget deficit [including APS] could be as large as $78 million.”

Canceling the Aquatics Center project entirely still makes fiscal sense

In a June 2018 column, I explained why Arlington should cancel the Aquatics Center project entirely. The county manager’s protestations that contractors would no longer bid on Arlington contracts if we cancelled lacks credibility. So long as we meet our contractual obligations (paying the cancellation costs), contractors will continue to line up for our business.

As to the argument that cancellation would be a breach of faith with the long-time Aquatics Center advocates, we must weigh their great disappointment against the long-lasting costs to the entire Arlington community of moving forward — the opportunity cost of devoting $70.7 million in total capital funding to this project.

For the next decade, we are bumping up against our 10 percent debt service limit. Cancelling the Aquatics Center project entirely and paying off some of that debt would give us much needed wiggle room. Closing an FY 2020 budget gap of up to $78 million will preserve the priorities of the entire Arlington community far better if we cancel the Aquatics Center.

Conclusion

Canceling the Aquatics Center offers two alternatives. The Board could choose to repay the debt, giving us more flexibility in capital spending. Or it could redirect the net post-cancellation savings to other legally permissible uses.

The manager has confirmed that the County Board legally could reprogram the approved Aquatics Center bond funds for other park and recreation priorities, including these:

  • land acquisition for new parkland (the current CIP contains $0 for acquisition of new parkland over the next 10 years)
  • park infrastructure (including a smaller community pool) at Long Bridge or elsewhere

Peter Rousselot previously served as Chair of the Fiscal Affairs Advisory Commission (FAAC) to the Arlington County Board and as Co-Chair of the Advisory Council on Instruction (ACI) to the Arlington School Board. He is also a former Chair of the Arlington County Democratic Committee (ACDC) and a former member of the Central Committee of the Democratic Party of Virginia (DPVA). He currently serves as a board member of the Together Virginia PAC-a political action committee dedicated to identifying, helping and advising Democratic candidates in rural Virginia.

Recent Stories

Good Thursday evening, Arlington. Today we published articles that were read a total of 21133 times… so far. 📈 Top stories The following are the most-read articles for today —…

This past week saw 22 homes sold in Arlington. The least expensive condo, single-family home or townhouse sale over the past seven days was $275,000 while the most expensive was…

Many parents of children at Key Elementary School are outraged at the way a possible threat of gun violence by a student was handled by administrators.

We could tell you how great CarCare To Go is. We could tell you about how they are transforming the way people care for their cars with free valet pick-up…

The Arlington-Aachen High School exchange is returning this summer and currently accepting applicants.

The sister-city partnership started in 1993 by the Arlington Sister Cities Association, which seeks to promote Arlington’s international profile through a variety of exchanges in education, commerce, culture and the arts. The exchange, scheduled June 17th to July 4th, includes a two-week homestay in Aachen plus three days in Berlin. Knowledge of the German language is not required for the trip.

Former participants have this to say:

_”The Aachen exchange was an eye-opening experience where I was fully immersed in the life of a German student. I loved biking through the countryside to Belgium, having gelato and picnics in the town square, and hanging out with my German host student’s friends. My first time out of the country, the Aachen exchange taught me to keep an open mind, because you never know what could be a life changing experience.” – Kelly M._

Read More

Submit your own Announcement here.

Learn about the new assessment of Arlington’s urban tree canopy and the many ecological and social benefits trees provide. Staff from the Green Infrastructure Center (GIC) will share study results and compare canopy cover for different areas of Arlington.The webinar will include assessments of ecosystem services such as stormwater mitigation, air quality, carbon uptake, and urban heat islands. For background on Arlington trees see the “Tree Benefits: Growing Arlington’s Urban Forest” presentation at http://www.gicinc.org/PDFs/Presentation_TreeBenefits_Arlington.pdf.

Please register in advance to assure your place at the webinar, https://attendee.gotowebinar.com/register/29543206508863839.

About the Arlington County Civic Federation: The Arlington County Civic Federation (“ACCF”) is a not-for-profit corporation which provides a forum for civic groups to discuss, debate, inform, advocate and provide oversight on important community issues, on a non-partisan basis. Its members include over ninety civic groups representing a broad cross-section of the community. Communications, resolutions and feedback are regularly provided to the Arlington County Government.

The next meeting is on Tuesday, February 21,2023 at 7 pm. This meeting is open to the public and will be hybrid, in-person and virtually through Zoom. Part of the agenda will be a discussion and vote on a resolution “To Restore Public Confidence in Arlington County’s Governance”. For more information on ACCF and this meeting, go to https://www.civfed.org/.

Read More

Submit your own Announcement here.

Valentine Pop-Up at George Mason University

Valentine gifts for someone special or for yourself are here at George Mason University from noon -4pm on February 14, 2023. Satisfy your sweet tooth with Kingsbury Chocolates, find a handmade bag from Karina Gaull, pick up treats from Village

Standup Comedy Showcase Starring Matt Ruby (Comedy Central)

Dead Horse Comedy Productions brings together top comedians from the DMV and beyond for a live standup comedy show!

Matt Ruby, Headliner

Matt Ruby is a comedian, writer, and filmmaker from New York City. His comedy has been filmed by

×

Subscribe to our mailing list