HomeMy WebLinkAbout02-12-2009 Special
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C1TY OF * * CITY COUNCIL
SUMMARY OF RETREAT
WASHINGTON February 12, 2009
The Auburn City Council met in a special session on February 12, 2009 in order
to conduct its annual retreat to discuss City projects and other topics related to
Council vision and goals, and conduct an executive session regarding property
acquisition. The session was conducted at the Dumas Bay Centre, 3200 SW
Dash Point Road in Federal Way, Washington.
Mayor Lewis called the meeting to order at 8:30 a.m. and welcomed the following
Councilmembers: Rich Wagner, Sue Singer, Gene Cerino, Nancy Backus, Bill
Peloza and Lynn Norman. Councilmember Virginia Haugen arrived at 8:32 a.m.
Staff members present included: Planning, Building and Community Director
Cindy Baker; Public Works Director Dennis Dowdy; City Attorney Daniel B. Heid;
Finance Director Shelley Coleman; Information Services Director Lorrie
Rempher; Parks, Arts and Recreation Director Daryl Faber; Human
Resources/Risk Manager Brenda Heineman; Chief of Police Jim Kelly; Economic
Development Manager Dave Baron; Communications Manager Dana Hinman;
Executive Assistant Tamie Bothell; Government Relations Manager Carolyn
Robertson, Community Services Manager Duanna Richards, Human Services
Manager Michael Hursh, and City Clerk Danielle Daskam.
Mayor Lewis provided an introduction and recalled last year's retreat where there
was productive discussion regarding City projects. However, due the current
economic climate, there are questions and concerns whether the projects will
come to fruition. Mayor Lewis stated that while the national economy worsens,
it has not fully impacted the Puget Sound Region, although impacts have been
detected in some pockets of the local economy, for example new car sales and
real estate listings.
Mayor Lewis reported that the 2009 Budget includes approximately sixteen
positions that are unfilled and the first budget revision will include the removal of
the positions from the budget.
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CITY HALL ANNEX
Referring to the Council's agenda packet, Finance Director Coleman reviewed a
comparison of the City Hall Annex lease (first five years) versus purchase of the
space financed through a 30-year bond at 5.50% interest. Director Coleman
stated that a purchase would be the most advantageous in the long term. In the
first five years of the lease, the lease is $175,000 more expensive that the
purchase option. The lease terms provide for a fifty year, lease with a lease rate
adjustment every five years. Additionally, the City would be responsible for
property taxes.
Director Coleman stated that the bonding is based on $24.5 million purchase
price. The full price of tenant improvements including furniture, equipment and
Emergency Operations Center (EOC) is approximate $3.5 million. The debt
payment would be approximately $2 million per year on $28 million and $1.68
million per year on $24.5 million. Director Heineman advised there are plans to
apply for grants for construction of the EOC.
Director Coleman reviewed the possible sources of funds for the annual debt
service. Approximately $750,000 will be born by utilities, but the remaining
amount does not have a funding stream earmarked. Director Coleman referred
the Council to her handout entitled Uncommitted Funding Sources, specifically
uncommitted cash balances (pages 2 and 3) and REET funds (page 27). REET
is an ongoing revenue stream and shows a 2009 commitment to the Community
Center.
COMMUNITY CENTER
Director Coleman referred the Council to separate handouts regarding Les Gove
Park. The most recent construction estimate provided by the Robinson
Company is $7,385,429 for the community center and $11,178,586 for the
community and activity center. Other soft costs include sales tax and design and
architectural costs. Director Coleman also referred to a separate handout of
potential construction and design savings which would bring the total cost of
construction to approximately $10,700,000. Director Coleman stated that the
totals do not reflect the costs for the demolition of the YMCA building.
Director Coleman stated that a possible source of funds for the Community
Center construction is $5 million from REET 1, $1 million from solid waste, with
$5 million financed. The debt service on a$5 million bond issue would be
approximately $420,000 per year, which could come from the REET 1 revenue stream; however, if the REET 1 funding does not maintain the needed level of
funding, funding would need to come from general government funds or a voted
general obligation bond.
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SCORE
Finance Director Coleman referred the Council to a memo in the agenda packet
which updates the financing options for SCORE (South Correctional Entity).
Mayor Lewis briefly commented on King County's policy to remove all cities'
misdemeanants from King County Jail facilities by 2010 and the subsequent
formation of the Jail Advisory Group to study other jail alternatives. Council
spoke about the impact of the philosophy of current and future judges and
commitments of misdemeanor offenders.
SCORE has selected a jail site owned by the Port of Seattle which is located in
Des Moines. A Public Development Authority will be formed on February 25,
2009 among the member cities. An initial capital contribution from each city will
be required in March 2009. The total contribution for all the cities is just under
$5.2 million. SCORE anticipates receiving $3.18 million from the proceeds of
selling the Bellevue jail site property. Auburn's total share for the 2009
contribution is $1.514 million before receipt of its share from the Bellevue
property sale. The initial cash contribution reimbursement, bond issuance,
project administration, start up, site, design and construction costs are estimated
to be just under $100 million, of which Auburn's share is 29%. The annual debt
service is approximately $6.9 million and Auburn's share would be approximately
$2 million.
Finance Director Coleman directed the Council's attention to a funding model
contained in the agenda packet. The model assumes other agencies will rent
unused beds. The City's commitment is to 115 beds. The annual cost to Auburn
could be more or less than the model reflects. It is solely dependent on the
number of beds rented, beds available to be rented, and Auburn's actual daily
population. The model reflects that Auburn's share of the maintenance and
operation plus debt costs will be just under $7 million with anticipated revenue
from rented beds at $2.3 million. The model is based on Auburn using 115 beds
and successfully renting 146 beds at the rate of $150 per day. The current cost
of jail costs is approximately $4.5 million per year. There may be additional
costs for a south end holding facility.
(Councilmember Haugen left the meeting at approximately 9:30 a.m. during
discussion of the SCORE project.)
GSA ACCESS -
Mayor Lewis reported that the language of the deed for the GSA property
requires that the City provide a separate access and sever the utilities from the
remaining GSA properties along C Street SW. This requires the City to find
access over Boeing and Safeway owned properties. Total estimated
construction costs of the access are $1,037.000 and traffic signal installation
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costs (if necessary) are $370,000. The site is currently used by Public Works,
Code Enforcement, and HR/Facilities staff. Police also use the site for storage.
The Valley Regional Fire Authority is also on the site. Mayor Lewis also spoke
about potential use of the site as an underground firing range. Finance Director
Coleman stated that funding for the cost of the access construction could come
from REET 2 and traffic mitigation fees.
Mayor Lewis recessed the meeting at 10:07 a.m. for a brief intermission. The
meeting reconvened at 10:17 a.m.
PROMENADE .
The promenade project would consist of a full reconstruction of Division Street
from 1St Street NW/NE to 3rd Street SW/SE complete with expanded decorative
sidewalks and crosswalks, textured intersection circles, street lighting, street
trees, decorative potted plants, modifications to a traffic signal, and new water,
sewer and storm utilities. The estimated project cost is $7.9 million. The
anticipated funding source is a$3 million Economic Development Administration
grant and a potential LIFT bill. The grant would require a matching share.
Finance Director Coleman described the workings of a LIFT project: the City
issues debt, the State assesses tax revenues in the Revenue Development
Area, then the state looks at any incremental revenue received over the base
year and allows a tax credit. The City is ultimately responsible for the debt.
Mayor Lewis stated that the promenade project occurs if there is a developer.
CITY HALL PLAZA
On February 10, 2009, the Downtown Redevelopment Committee approved the
final preliminary plan for the plaza. The total cost for the short range vision is
$688,000 with much of the work being done in-house. The Downtown
Redevelopment Committee recommends proceeding with short range goals.
The cost of the long range vision is an additional $860,000 for a total project cost
of $1.5 million. An updated spreadsheet of the City Hall Plaza Final Preliminary
Plan was distributed separate from the agenda packet.
Councilmember Norman, chair of the Downtown Redevelopment Committee,
reviewed elements of the plan including removal of trees from the north and west
sides of the plaza to improve visibility of City Hall, improved lighting, removal of
the raised bed at the corner of the block, removal of grass and addition of
seating and vegetation, a water feature, rain garden, and basalt columns.
Mayor recessed the meeting to executive session at 10:58 a.m. for thirty minutes
in order to discuss real estate acquisition pursuant to RCW 42.30.110(1)(b). At
11:30 a.m. Mayor Lewis extended the executive session an additional fifteen
minutes.
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Mayor Lewis reconvened the meeting at 11:46 a.m.
ARTERIAL STREET PRESERVATION Public Works Director powdy stated there are 29 miles of a rterial/col lector
streets (out of 77 miles total) in need of work to bring them up to at least a
pavement condition index of 70. Director powdy indicated there is no urgent
need to address arterials in the annexation areas, and local streets in annexation
areas are covered by the SOS program. Director powdy stated that in order to
bring the entire 29 miles of arterials in need of repair up to 70 PCI would require
$40 million. e
Mayor Lewis recommended to not bond against the $1.5 million per year
allocated for arterials for overlay projects from utility taxes, but to continue using
the $1.5 million to crackseal arterials (approximately eight miles per year). After
2009, any overlays would be accomplished by grants.
Public Works Director powdy spoke briefly regarding the M Street Grade
Separation Project.
Councilmember Wagner suggested canceling the M Street Project since the
Freight Mobility Strategic Investment Board (FMSIB) is threatening to pull their
funding if construction is not started by July 1, 2011. Councilmember Wagner
also questioned whether the project was warranted if there is only a five minute
delay to traffic.
Mayor Lewis spoke about possible increase in rail traffic.and the impact to local
traffic.
ARTERIAL STREETS AND TRUCK ROUTES
Council discussed funding for preservation of truck routes. Mayor Lewis spoke
about City of Fife's efforts to implement a door tax. Mayor Lewis stated there is
currently no other funding source for this project other than through a door tax.
Director powdy reported that there are approximately 4,400 doors in the
industrial corridors; doors in commercial areas have not been counted yet. It
was noted that in the City's draft ordinance, the first finro doors are exempt.
Councilmembers spoke in favor of implementing a$125 per door annual fee with
a schedule to increase the door tax in the next two ensuing years to $250 and
$375. The City would have to pursue regional, state and federal funding to fund
the remaining improvements.
At 12:20 p.m. Mayor Lewis recessed the meeting for a lunch break. Mayor Lewis
reconvened the meeting at 1:07 p.m.
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ROBERTSON PROPERTIES
Public Works Director powdy referred the Council to the memo included in the
agenda packet regarding NE Auburn/Robertson Properties Group (RPG) and
their Auburn Gateway Project. Director powdy recalled that at the Council's
2008 retreat, Councilmembers spoke favorably regarding contributing $1 million
in infrastructure costs. Director powdy noted that the project is in the floodplain
and is currently delayed due the current 100-year FEMA floodplain moratorium
related to endangered species issues and the FEMA proposed revision of the
floodplain maps.
Councilmember Wagner referred to RPG's matrix/revenue proposal and
indicated he is unwilling to contribute to the infrastructure costs due to the time it
would take to recoup the funding.
Public Works Director Dennis stated that RPG is proposing a phased
development.
Councilmembers spoke against contributing $1 million in General Fund funds
over and above the paybacks and current schedule.
SOS PROGRAM
Public Works Director powdy referred to Save Our Streets Program Funding
Schedule in the agenda packet. Director powdy estimated it would take
seventeen years to complete all rebuilds of local streets (not including
annexation areas) in need of work with the present cash flow. At the beginning
of 2009, 21 miles of local streets (out of 83 miles total) are in need of work to
bring them up to a pavement condition index of 70. Where utilities need to be
upgraded, utilities will pay their proportionate share.
The current level of funding is $2.2 million per year for the SOS Program. $2.2
million will bond up to $22 million on a 15-year bond issue. Mayor Lewis
suggested putting the entire project out to bid including project management.
Councilmembers discussed the coordination and cost of upgrading utilities in
conjunction with street reconstruction.
Councilmembers expressed support for proceeding with bonding the entire
project with Council establishing parameters.
Finance Director Coleman reminded Council of staff's recommendations at last
year's Council retreat regarding the most beneficial debt structure, which was
issuing three separate bond issues.
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Following further discussion, Mayor Lewis agreed to look at options to complete
the project in a one to three year period or a three phased program taking into
consideration what utility work is scheduled.
AUBURN AS AN ENTERTAINMENT CENTER
Councilmember Norman recalled discussions at the Council's 2008 retreat
regarding Auburn as an entertainment center. She stated that if the City wants
to build its image as an entertainment center, then the City needs to decide to
promote development that supports the image. Mayor Lewis suggested
including the topic in a Committee of the Whole meeting with possible
presentations from agencies such as 4Culture, the Washington State Convention
Bureau and the Washington State Festivals Association.
PARTNERSHIP WITH BOYS AND GIRLS CLUB
Councilmembers briefly spoke regarding a possible partnership with the Boys
and Girls Club for construction of a gymnasium at Les Gove Park.
A/B CORRIDOR
Public Works Director powdy referred to the A/B Corridor briefing paper
contained in the agenda packet. The secured funding amounts to $7.6 million
with a funding shortage of $4.6 million. The current funding would open the
corridor from the Mohawk property to 10th Street. To open the remaining section
to the post office requires another $4 million ($3 million of which comes from
other sources). Assuming the City receives the requested $2 million in federal
transportation appropriations, the City's contribution to the project will be $1
million. Director powdy anticipates that the environmental documentation and
permits will be complete and approved by July 2009.
M&O EXPANSION
Public Works Director powdy reviewed proposed improvements to the M&O
facility to accommodate future growth. The estimated cost of the improvements
is approximately $4 million. The improvements can be phased. Councilmember
Wagner stated he can support some of the projects but not the entire list. Public
Works Director powdy reviewed the funding sources as outlined in the agenda
materials. Following further discussion, staff agreed to prepare an abbreviated
list.
Mayor Lewis recessed the meeting at 2:08 p.m. for a brief intermission. Mayor
Lewis reconvened the meeting at 2:23 p.m.
PRIORITIZATION AND FUNDING
City Hall Annex
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Councilmembers spoke in favor of purchase versus lease of the annex. Finance
Director Coleman reviewed the following breakdown of costs associated with the
purchase of the annex space:
$24,500,000 annex space purchase price
$ 3,150,000 tenant improvements
( 2, 000, 000) cred it .
$ 1,750,000 equipment and furniture
$28,000,000 Total Cost
Finance Director Coleman identified $6 million in REET funding, $11 million in
funding from utilities, which leaves $11 million in need of funding sources.
Director Coleman stated that $420,000 annually from REET could service the
debt for the project. Council could also elect to buy down a portion of the debt.
Options to buy down the debt include:
$1,100,000 from downtown revitalization
$1,100,000 from the "other" category
$ 700,000 from interest
$1,300,000 REET cash
If the above amounts are applied to the annex condo purchase, the remaining
balance is $6.8 million.
Finance Director Coleman noted that the building developer has advised that he
will be able to turn over the facility to the City in November 2009 when the condo
shell will be complete. However, the City cannot exercise the purchase option
until January 2011. The developer may be open to adjusting the window for the
purchase option.
Approximately $470,000 annually is required from the General Fund to finance
the remaining $6.8 million to purchase the annex space.
SCORE
Mayor Lewis indicated that SCORE is self-funding.
SOS and Arterial Streets
Mayor Lewis indicated that SOS and arterial streets funding is self-funding.
Councilmembers discussed their priority projects other than the annex.
Councilmembers Wagner and Peloza identified the Community Center as their
priority project. Councilmembers Backus, Cerino, and Norman identified
downtown redevelopment as their priority project. Deputy Mayor Singer
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identified downtown development together with other property acquisition
discussed in executive session as her priority project. Councilmember Peloza
agreed that downtown red evelopment/p rope rty acquisition should be as high a
priority as the Community Center.
To acquire the property for downtown redevelopment would require
approximately $2.5 million. Councilmembers discussed possible funding
sources, including $2 million from the cumulative reserve.
Councilmembers briefly discussed the Stratford and Spence Alpert
developments.
Councilmember Norman suggested using $4.8 million in REET funds for the
annex rather than for the Community Center.
Councilmembers discussed financing options for the annex and/or the
Community Center.
Mayor Lewis recessed the meeting at 3:37 p.m. for a brief intermission. Mayor
Lewis reconvened the meeting at 3:50 p.m.
Councilmembers discussed opportunities to utilize Community Development
Block Grant funds to acquire property for historic preservation, economic
development, and other eligible community purposes.
Mayor Lewis summarized the financing of the City Council annex. The City will
use $470,000 annually from REET 1 to fund the debt service. Also, if the
Stratford property does not develop, the City will use $2.5 million from
Cumulative Reserve to purchase the property. Any sale of the acquired property
would be used towards the construction of the Community Center together with
$2 million from REET 1. Additionally, staff will investigate the opportunity to use
Community Development Block Grant funds to acquire other properties. SOS
projects will be funded in one project or a three-phased project. Arterial streets
will continue to be cracksealed.
Finance Director Coleman reminded Council that any use of REET funding must
be included in the Capital Facilities Plan.
Councilmembers discussed funding for the GSA access and utility connections.
Finance Director Coleman suggested utilizing $250,000 from the Sidewalk LID
Fund for the GSA access property acquisition.
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Councilmembers discussed utilizing Fund 328 sidewalk LID funds for the City
Hall plaza project.
Director powdy stated there is no urgent need for any of the M& O
improvements and the project can be deferred. Director powdy also spoke
about potential sharing of the decant facility with the City of Pacific.
(Councilmember Peloza left the meeting at approximately 4:30 p.m. in order to
attend a WRIA 9 meeting.)
Councilmembers indicated no interest in acquiring the triangle of property
befinreen Auburn Way North and Auburn Avenue.
Councilmember Wagner reported that he has received citizen feedback that the
City is implementing too much traffic calming measures. Councilmember Cerino
agreed.
Deputy Mayor Singer stated that she would like to revisit the use of funds
received from red light photo enforcement.
Councilmember Norman spoke regarding community needs during a downturn in
the economy and the importance of being able to provide recreation and
entertainment outlets for all generations.
Mayor Lewis suggested bringing in someone from the Board of the One Stop
Service Center to give a presentation on their status to the Council.
Mayor Lewis advised that he recently spoke to the Army Corps of Engineers
regarding the status of the depression discovered in the right abutment of the
Howard Hanson Dam. The Corps has reduced the pool level and will increase
the level of the pool in moderate storm events. Mayor Lewis stated that the
river's maximum flow in Auburn is 13,000 cubic feet per second; however, the
Corps is committed to releasing up to 17,500 cubic feet per second in any event.
There is no funding at this time to repair the dam. The City is prepared to
evacuate residents in a major flooding event.
There being no further discussion, the meeting adjourned at 5:18 p.m.
APPROVED THE DAY OF MAY, 2009.
~~•'Peter B. Lewis, Mayor Danielle Daskam, City Clerk
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