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.
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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