City weighs pulling back on new library after construction bids double; council asks staff to seek extension and return in March

City staff told the Yucaipa City Council on Feb. 10 that bids to build a proposed new library have pushed the project cost from an earlier $18 million estimate to roughly $25 million, increasing the city’s anticipated contribution to about $10 million. That figure would use roughly two‑thirds of the city’s reported $14.5 million in unrestricted reserves, staff said.

Joe Pedeto, the project manager, said the city received 10 design‑build responses and the average estimated construction price among top submitters was about $25 million. “So that brings the city's expected contribution to about $10,000,000,” Joe Pedeto told the council. Staff and project partners had previously secured $6 million in matching funds from county and tribal partners and the city had been planning a $3 million contribution; the higher bids create a significant funding gap.

Phil White, director of finance, said the city’s unassigned or “unrestricted” reserves are the municipality’s financial runway. “That unassigned is the lowest level. It can be used for anything. And, again, it's the most important number, because everything else is spoken for,” White said, explaining that using $10 million would leave the city with approximately $4.5 million in unassigned reserves and would not account for the current year operating deficit.

Staff recommended that the council not proceed with the project as submitted because the cost increase would significantly deplete reserves. The presentation outlined options staff has explored to bridge the gap, including asking for additional state or federal funds, private foundation grants and reducing project size; staff said those sources were unlikely to net the remaining $7 million needed in the short grant deadline.

The project has a state construction grant of $9 million that requires a 100% local match for eligible costs. The grant’s schedule calls for project completion by March 2026; that deadline shaped staff’s recommendation to pursue a design‑build delivery method to save time. Staff said the State Library had not granted an extension to the project timeline but was open to request and discussion.

Contractors who submitted proposals told staff they were concerned about the grant timeline. Bianca Nunez, representing one design‑build team, told councilmembers the interview process would have allowed contractors to discuss design‑delivery options and value engineering that might lower costs.

After public comment urging the council to continue pursuing the project and suggestions to explore land sales, phased construction or other revenue sources, the council debated whether to accept staff’s recommendation. Several councilmembers urged staff to continue seeking options, and Council Member Chris Venable moved that staff pursue a plan and request an extension from the State Library and return with a report at the council’s first meeting in March. The motion carried on a majority voice vote with one council member recorded as voting no.

The council did not approve construction or commit additional city funds at the Feb. 10 meeting. Instead, it directed staff to: (1) seek an extension from the State Library, (2) revisit alternatives such as phased development, property sale or other financing strategies, (3) meet with project partners to re‑examine the delivery approach, and (4) return to council at the first meeting in March with a strategy update.