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HomeMy WebLinkAbout11-08-2010 CITY OF AUBURN CITY OF PUBLIC WORKS COMMITTEE _ SPECIAL MEETING * November 8, 2010 WASHINGTON _ MINUTES L CALL TO ORDER Chairman Rich Wagner called the meeting to order at 1:30 p.m: in Conference Room #2, located . on th'e second floor of Aubum City Hall; One East Main Street, Aubum, 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 Osbome, and Administrative Support Clerk Tina Kriss. II. DISCUSSION AND INFORMATION A. UTILITY PROJECT BONDING PLAN Director powdy 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 amounf to certify coverage on the utility bonds however Director powdy 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 govemments 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 re6ate $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 su6sidy 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 discus"sed some of the largest areas of change between the previous and current plans. The wafer supply changes were reduced from $ZM to $3M, which staff feels. is a reasonable numbec that 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 Gommittee and staff discussed the water payment schedule to the City of Tacoma for the water. : Page 1 Public Works Committee Minutes November 8, 2010 MINUTES Utilities Engineer Repp said that sfaff also recommends removing the construction of the ` Academy Booster Pump Station, #unding 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 #hat there are none. - In the Storm Utilify, staff removed a few projects including the S 296"' Street Pond, 2"d and G Street Bypass, and removed#he 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 appcoximately $100,000 and soft costs for pogwood Rump 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 Flans. Some of fhe projects will still be able to be completed. Utilities Engineer Repp provided clarification on the scope of the 2"d and G Streets Bypass projecf, in response to a request by Chairman VVagner. 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 be an 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 for the projects included in the plan. Finance Director Coleman stated that there may not be time to provide the summary requested. The Committee concurs thatthe plan should move forward. ADD/TIONAL DISCUSSION The Committee and staff discussed the 8th Street NE/R Street NE Signal Project and the previous suggestion that improvements be made at the intersection of 8th Street NE and 104tn Avenue to allow u-turns. Assistant Director/City Engineer Selle discussed the option of constructing an interim improvement to accommodate easf=bound u-tums at-the at the intersection of 8th Street NE and 104"' Avenue that will fit in the future build-out footprintfor 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 pofential impacts to the property located at the NW corner of the intersection. The Committee requested staff to add the potential 8"' Street NE and 104th Avenue u-turn project to the next Committee agenda and be prepared to address project costs, schedule, propeity acquisition impacfs, and assess how the inferim u-tum project would work. the future planned improvements foe the intersection. Page 2 Pu61ic Works Committee Minutes November 8. 2010 MINUTES Assistant Director/City EngineerSelle stafed that at the next Public V1lorks Committee Meeting, staff.will provide the Committee with an estimate. , 111. ADJOURNMENT ~ There being no further business to come before the Public Works Committee, the meeting was adjourned at 2:10 p.m. . Approved this 60 day of December, 2010. . , . , ' • Rich Wagner Tina Kriss . Chairman Administrative Supp'ort Clerk ; ; . ; ~ I - i ~ , i ~ , .i. ; Page 3 . i ; ,