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HomeMy WebLinkAbout07-28-1998sp CITY OF AUBURN SPECIAL CITY COUNCIL STUDY SESSION JULY 28, 1998 4:30 PM Minutes The Auburn City Council met in special session on July 28, 1998 at 4:30 p.m. in the Council Work Area located in the Mayor's office of City Hall. Mayor Booth called the meeting to order at 4:40 p.m., and the following Councilmembers were present: Rich Wagner, Jeanne Barber, Gene Cerino, Sue Singer, Fred Poe, Pete Lewis, and Trish Borden. Staff members present included: Finance Director Diane L. Supler, Police Chief Dave Purdy, Fire Chief Bob Johnson, Planning Director Paul Krauss, Grant Accountant Joe Guinasso, Public Works Director Christine Engler, and City Clerk Danielle Daskam. Guests present included Randy Young with Henderson, Young and Company. I. INTRODUCTION Mayor Booth announced the purpose of the meeting is to review the Capital Facilities Plan. Mayor Booth indicated that this is a continuation of the Capital Facilities Plan review and introduced Finance Director Diane L. Supler. II. CAPITAL FACILITIES PLAN (1998-2003) Ms. Supler began with a supplementary analysis of the hangar rentals at the airport shown on pages 31 through 33. Since the last meeting, staff reduced the cost of the project to $28,000 per unit. It is likely that the City will receive $800,000 for site preparation from the Federal Aviation Administration (FAA) in conjunction with the construction of the hangars, 'Hangar rental income was compared to similar sized facilities. The figures are based on the assumption of construction of the project in 1999 with occupancy taking place in 2000, with a rental rate of $260 per month. The majority of the rental income would be used for repayment of the debt service. The improvements to the airport facility should mitigate costs for operation and maintenance for some time. A positive cash flow is anticipated into the year 2006, which should begin to cover depreciation expenses. The hangar improvement project should be possible with a Revenue Bond issue, but may need to be a Limited Tax General Obligation Bond. Special City Council Meeting July 28, 1998 Page 2 In response to questions from Councilmember Wagner, Mr. Krauss stated that the proposed hangar rental fees are comparable to other small airports. In relation to some of the comparisons, the City of Auburn has the advantage of location. Ms. Supler stated that the current rental fee is $185. The new rental rates will vary with the size of the hangar. Ms. Supler referred to page 39 for review of the Cemetery. The land acquisition · in the amount of $400,000 for the five-acre site has been moved to the year 2000 The cost has been reduced to $133,500, which is the appraised value. This will be funded with' $75,000 from the endowed care and $58,500 from current operations. This will be the first of three five-acre sites that the Cemetery needs for future development. Ms. Supler shared information she accumulated regarding Voted General Obligation Bonds. Ms. Supler displayed a graph of bond issues and explained the popular types of issues with the highest voter preference and the various types of funding sources. Ms. Supler explained that according to the Revised Code of Washington, if the County has less than a countywide port district located within its boundaries, it can create its own port district. The Port of Seattle is a countywide port district and the City of Auburn is already paying property taxes to them. Ms Supler concluded her presentation and introduced Randy Young with Henderson, Young and Company. Mr. Young began with the unfunded projects, which are referred to in the Capital Facilities Plan as new revenues. Mr, Young distributed a list of projects with new funding but without commitments for Council review. Mr. Young explained that the information will be used to determine the dollar amounts and priority of the projects. Ms. Supler stated that an additional project for Valley Communications Center needs to be added to the list. The preliminary estimate for construction is approximately $21,000,000. As a joint owner in the center, the City has a vested interest of 23.09% of the total construction costs which creates an estimated $5,000,000 obligation in 1999. Construction is anticipated to begin in the latter part of 2000. Fire Chief Bob Johnson stated that the Valley Comm construction costs are still in the review process. The costs include moving the center from the liquefaction .Special City Council Meeting July 28, 1998 Page 3 valley floor tQ isolate it from possible earthquake damage. Chief Johnson emphasized that this project will require in-depth review by the City Council. In response to questions from Councilmembers Lewis and Wagner, Ms. Supler stated that the cities of Renton, Tukwila, and Kent are also partners in the Valley Communications Center (Valley Com). Valley Com collects a surcharge from those areas receiving service that are not partners in the center. Mr. Young displayed the scoring system used to pdoritize the projects by overhead projector. Mr. Young explained that projects are scored by various criteria, which can receive 0-2 points. The criteria include level of service, whether the law' requires it, whether it is public health or safety related, whether the environment requires it, whether it is city-wide, whether it is in or out of the Comprehensive Plan, what it will do to the quality of services, what it will do to the level or quantity of services; whether there are other inter-locking projects, how it affects the future operating budget, and public support. Mr. Young distributed an informal score sheet to Councilmembers. Mr. Young clarified that the score sheet is a tool used to determine the priority of the projects listed. The projects are separated under general government projects and enterprise projects. Mr. Young emphasized that the score sheets are not a final determination, but an exercise to rate unfunded Capital Facilities Plan projects. Mr. Young reviewed the projects listed on the score sheet. A brief discussion followed. Mayor Booth recessed the meeting at 5:15 p.m. for a shod break. Mayor Booth reconvened the meeting at 5:25 p.m. Mr. Young presented the results of the informal survey on the Capital Facilities Plan projects. Project Name Keep the Project Delete the Project Fire Station 7 0 Pavement Preservation 7 0 OIson Canyon Farmstead 2 5 Fulmer Field 3 4 Les Gove Park 4 3 GSA Park 2 5 Isaac Evans Park 3 4 Municipal Jail/Court 4 2 (1 abstention) Community Center 4 3 Special City Council Meeting July 28, 1998 Page 4 Project Name Keep the Project Delete the Project Rotary Park 1 6 Senior Center Renovation 7 0 Public Art 5 ' 1 (1 abstention) "1" St. Development Area 6 1 City Park 3 3 (1 abstention) Terminal Park 2 4 (1 abstention) Street Tree Program 2 4 (1 abstention) Game Farm Wilderness Park 3 4 Cameron Park 1 6 Downtown Redevelopment 6 1 Police Headquarters Expansion 6 1 Ballard Park 1 6 Skootie Brown Park 2 5 · Neighborhood Grants 5 2 Gateway Projects 4 3 Undergrounding of Utilities 3 3 (1 abstention) Interurban Trail 3 4 Mr. Young stated that securing funding for the six projects receiving a majority vote should be dealt with immediately. In response to questions from Councilmember Wagner, Mayor Booth stated that the public art project listed in the questionnaire would be in addition to the funds dedicated to artwork required for every public project. In response to discussion from Councilmembers, Mr.' Krauss stated that under neighborhood restoration, staff has implemented social programs for developing parenting skills, tenant education, and public safety, which have been in effect for several years. What is being introduced now is a program that would issue grants to neighborhoods that come together and identity specific, low cost improvements that would greatly improve the neighborhood. This is currently being done in the City of Bellevue, and it has had very good results. The Planning Department envisions assisting with small improvements that enhance such things as beautification, sidewalk repair, traffic revisions, or public safety within the neighborhoods. Councilmember Borden pointed out that matching funds are available from the state and local level for those types of projects. Mr. Krauss asserted that neighborhood projects also create positive working relationships between the citizens and the City. Special City Council Meeting July 28, 1998 Page 5 In response to questions from Councilmember Wagner, Mr. Krauss stated that a number of projects for the downtown redevelopment project and development by the public sector would be a catalyst to create unity in the development and ownership pattern and the infrastructure. Mr. Krauss stated that other communities have invested funds into their downtown areas which encouraged private development. This not only revitalized the downtown area but created additional employment as well. Discussion followed regarding the parks projects listed on the questionnaire and the various avenues and methods of funding them. Chief Johnson gave a brief review of the history of the Valley Communication Center facility and the need to include it in the Capital Facilities Plan. The new facility has become a necessity due to the growth of the City and the surrounding areas that are serviced by it. Police Chief Dave Purdy stated that it is anticipated that the new facility will be considered by the operating cities next week. A twenty-year plan has been designed for the new center to anticipate future growth and to allow for expansion. In response to questions from Councilmember Singer, Mayor Booth stated that three options are being considered for a new jail facility. One option is to cooperate with the City of Federal Way to construct a modular type facility. The second option would be to construct a new jail with the cooperation of some surrounding cities. The third option would be to build a facility that would accommodate more than fifty inmates. Chief Purdy stated that the City could also forego a new facility and transport prisoners to the King County Regional Justice Center. This method could cost the City up to $1,900,000 per year, depending on the number of prisoners. In response to questions from Councilmember Borden, Mayor Booth stated that the upgrades to the present Municipal Court building were unavoidable due to the conditions of the facility. Ms. Supler pointed out that if a new facility is built outside the area, significant increases in costs for prisoner transport to the court will occur. Locating the court and the jail together would reduce costs. The current court building would provide the police department space for growth and expansion. Mr. Young referred to a graph display and suggested various methods of funding for some of the Capital Facilities Plan projects for Council consideration. Special City Council Meeting July 28, 1998 Page 6 Councilmembers discussed numerous project-financing strategies proposed by Mr. Young. Ms. Supler stated that the Real Estate Excise Tax (REET) implies that it cannot be used for the repayment of debt. Ms. Supler suggested $4,000,000 in councilmanic bonds for the library could be paid from the general fund and the REET could be used for other purposes. Ms: Supler recommended that the $660,000 from REET be could be used as follows: $400,000 for street preservation for six years; $200,000 in 1999; $200,000 for two years toward the renovation of the old library/senior center; and to obligate the remaining $50,000 for parks. In response to questions from Councilmember Cerino, Ms. Supler stated that the Six-year Transportation Improvement Program (TIP) is not fully funded. It is out of balance by approximately $1,600,000. Using the REET money would bring the TIP into balance. Mayor Booth stated that the total cost for the senior center project is estimated at $2,000,000. The project will be completed in two phases. The estimated cost for the first phase is $800,000. Ms. Supler stated that a mitigation fee of approximately $419 per home would be collected from The Lakeland Company. An effort has been made to gather construction information from The Lakeland Company for evaluation purposes. The necessary figures should be available late summer or early fall of 1999. There is the potential of partial funding for the fire station project with mitigation fees. Mayor Booth pointed out that once the infrastructure is in place the construction process in the Lakeland area should accelerate. Ms. Supler requested that, in addition to evaluating the general fund with the Finance Committee, a special work session with the Public Works Committee be scheduled to evaluate the utility section. Discussion followed regarding the format of the information and project totals to be submitted for the Capital Facilities Plan. Councilmembers Lewis and Poe commented on improvements that might be considered concerning the golf course and the clubhouse project. Special City Council Meeting July 28, 1998 Page 7 III. ADJOURNMENT There being no further business to come before the Council this evening, the meeting adjourned at 7:04 p.m. Approved on the/,.,~.,/4i (,~~ ' dayof ,1999 · r Danielle Daskam, City Clerk