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HomeMy WebLinkAboutITEM II-BCITY OF AGENDA BILL APPROVAL FORM * WASHINGTON Agenda Subject: Date: Approval of Minutes November 30, 2010 Department: Attachments: Budget Impact: Public Works Minutes from November 8, 2010 $0 Administrative Recommendation: Public Works Committee to approve the minutes of the November 8, 2010 Public Works Committee Special meeting. Background Summary: W1206-2 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&0 ❑ Airport ❑ Finance ❑ Cemetery ❑ Mayor ❑ Hearing Examiner ❑ Municipal Serv. ❑ Finance ❑ Parks ❑ Human Services ❑ Planning & CD ❑ Fire ❑ Planning ❑ Park Board ®Public Works ❑ Legal ❑ Police ❑ Planning Comm. ❑ Other ®Public Works ❑ Human Resources Action: Committee Approval: ❑Yes ❑No Council Approval: ❑Yes ❑No Call for Public Hearing I l Referred to Until I l Tabled Until I I Councilmember: Wa ner Staff: Dowd Meetin Date: December 6, 2010 Item Number: k t + •1~ ~ CITY OF AUBURN PUBLIC WORKS COMMITTEE IT 0~ SPECIAL MEETING November 8, 2010 ~HIITOI DRAFT MINUTES I. CALL TO ORDER Chairman Rich Wagner called the meeting to order at 1:30 p.m. in Conference Room #2, located on the second floor of Auburn City Hall, One East Main Street, Auburn, Washington. Committee members present were: Chairman Rich Wagner, Vice-Chair Bill Peloza, and Member Virginia Haugen. Also present during the meeting were: Public Works Director Dennis Dowdy, City Engineer/Assistant Director Dennis Selle, Utilities Engineer Dan Repp, Traffic Engineer Pablo Para, Traffic Operations Engineer Scott Nutter, Finance Director Shelley Coleman, Senior Accountant Michelle Surdez, Citizen Wayne Osborne, and Administrative Support Clerk Tina Kriss. II. DISCUSSION AND INFORMATION A. UTILITY PROJECT BONDING PLAN Director Dowdy reported that the City's contract with Water District No. 111 will be renewed however the contract with Covington Water District will not be renewed and they will not be purchasing water from the City of Auburn in 2011. This reduces the revenue stream by approximately $350,000.00 and Finance Director Coleman will not be able to report the amount to certify coverage on the utility bonds however Director Dowdy stated that Water District No. 111 will be purchasing more water. Finance Director Coleman said that staff had been discussing the ability to use the subsidy from the Build America Bond as part of the gross revenue but Coleman said the City probably will not need to do that now. Coleman provided addition explanation of the Build America Bond subsidy for the Committee. Coleman stated, in order to encourage municipal governments to issue taxable debt, the Treasury Department offered a 35% subsidy rebate on the interest portion municipality's debt service. For example, if the City's interest on debt service was $100,000.00, the Treasury Department would rebate $35,000.00 which lowers the City's effective interest rate. Coleman stated that the total interest cost for the utility bond debt issue is an estimated 3.2%. Chairman Wagner asked if the subsidy is paid out in a lump sum. Finance Director Coleman answered that the subsidy is paid out 30 -45 days prior to the debt service payment in lump sum. The Committee and staff reviewed the Utility Project Bonding Plan. Utilities Engineer Repp stated that the initial plan included $28M worth of bonds sales. The number of projects included has been reduced and now the total is $20M. Utilities Engineer Repp discussed some of the largest areas of change between the previous and current plans. The water supply changes were reduced from $7M to $3M, which staff feels is a reasonable numberthat supports the City's immediate water needs. The $3M will be used to purchase 1.5 MGD of year-round water through the intertie and this block of water includes the ability to take peaking flow during the summer months. The cost would be approximately $2.5M and the remaining $500,000.00 would allow the City to purchase an additional block of peaking water if needed. The Committee and staff discussed the water payment schedule to the City of Tacoma for the water. Page 1 Public Works Committee Minutes November 8, 2010 DRAFT MINUTES Utilities Engineer Repp said that staff also recommends removing the construction of the Academy Booster Pump Station, funding only the design of the station with bond proceeds This reduces the bond funding $2.5M to $500,000.00. Chairman Wagner asked if there are any developments that would be concerned with delaying the project. Repp answered that there are none. In the Storm Utility, staff removed a few projects including the S 296t" Street Pond, 2nd and G Street Bypass, and removed the Peasley Canyon soft costs. The West Valley Highway amount was reduced from $1.2M to $800,000.00 based on revised construction estimates. The Committee requested staff keep the project from being delayed. In the Sewer Utility, the bond amount for repair and replacement projects was reduced by approximately $100,000 and soft costs for Dogwood Pump Station were removed. The projects removed from the Utility Project Bonding Plan are not necessarily postponed they are just not being obligated with the bond money. Within the utilities accounts there is still a level of funding available. Staff is now working with the Finance Department, reviewing the Capital Facilities Plans. Some of the projects will still be able to be completed. Utilities Engineer Repp provided clarification on the scope of the 2nd and G Streets Bypass project, in response to a request by Chairman Wagner. The project basically corrects a drainage problem caused by low grades in the area. Chairman Wagner stated that the staff recommendations seem reasonable and asked if there will bean adjustment of capital in the projects. Mayor Lewis stated that staff will bring the review of the Capital Improvement Plans after the updates are made. Vice-Chair Peloza requested a project summary forthe projects included in the plan. Finance Director Coleman stated that there may not be time to provide the summary requested. The Committee concurs that the plan should move forward. ADDITIONAL DISCUSSION The Committee and staff discussed the 8t" Street NEIR Street NE Signal Project and the previous suggestion that improvements be made at the intersection of 8t" Street NE and 104t" Avenue to allow u-turns. Assistant DirectorlCity Engineer Selle discussed the option of constructing an interim improvement to accommodate east-bound u-turns at the at the intersection of 8t" Street NE and 104t" Avenue that will fit in the future build-out footprint for the intersection. Traffic Engineer Para discussed the conceptual interim plans for the intersection with the Committee showing the basic improvements that it would take to modify the intersection to allow for u-turns, including widening the street, right-of-way acquisition, moving the signal poles, etc. The Committee had some discussion with staff regarding the potential impacts to the property located at the NW corner of the intersection. The Committee requested staff to add the potential 8t" Street NE and 104t" Avenue u-turn project to the next Committee agenda and be prepared to address project costs, schedule, property acquisition impacts, and assess how the interim u-turn project would work the future planned improvements for the intersection. Page 2 Public Works Committee Minutes November 8, 2010 DRAFT MINUTES Assistant Director/City Engineer Selle stated that at the next Public Works Committee Meeting, staff will provide the Committee with an estimate. III. ADJOURNMENT There being no further business to come before the Public Works Committee, the meeting was adjourned at 2:10 p.m. Approved this day of , 2010. Rich Wagner Tina Kriss Chairman Administrative Support Clerk Page 3