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Home My WebLink About02-06-2013 2-6-2013 CITE`OF AliBURN' Peter B. Lewis, Mayor WASHINGTON 25 West Main Street * Auburn WA 98001-4998 * www.auburnwa.gov * 253-931-3000 ! Les Gove Community Campus ci r�•c0 1 February 6, 2013 - 5:00 PM AB'U R.I 1 Annex Conference Room 2 i tVAiI—iINt.,'l0N ; MINUTES ..... ........ ................................................................................ ._....................... ... ..............................5............_................... ................................................................._.............................. .. I. CALL TO ORDER Following a brief delay due to technical difficulties, Chair Rich Wagner called the meeting to order at 5:18 p.m.in Annex Conference Room 2 located on the second floor of the One Main Professional Plaza, One East Main Street, Auburn, Washington. A. Roll Call Chair Rich Wagner, Vice-Chair Largo Wales and Member Wayne Osborne. Staff members present were Mayor Pete Lewis; Advisor to the Mayor Michael Hursh; Parks, Arts and Recreation Director Daryl Faber; Finance Director Shelley Coleman; Planning and Development Director Kevin Snyder; Project Construction Manager Steve Burke, and Planning Clerk Bobbie Hodgkinson. Members of the public present were Councilmember John Partridge; John Finke, Senior Director, NDC-HEDC; Misty Baskett, Director, NDC-HEDC; Meredith Messmer, Project Manager, Lorig Associates; Joe Borden, Director of Development, Lorig Associates; Ron Harpel, AIA, Principal, BLRB; and Scott Pondelick, Auburn resident. B. Announcements There were no announcements. C. Agenda Modifications There were no agenda modifications. II. CONSENT AGENDA A. Minutes - December 11 , 2012 (Snyder) Member Wayne Osborne moved and Vice-Chair Largo Wales seconded to approve the December 11 , 2012 minutes as written. Motion carried unanimously. 3-0 Page 1 of 4 AUBURN * MORE THAN YOU IMAGINED III. DISCUSSION ITEMS A. Auburn Community Center at Les Gove Community Campus (Snyder) Copies of the Les Gove Community Center Analysis & Recommendations prepared jointly by the National Development Council and Lorig Associates were distributed. Joe Borden, Director of Development, Lorig Associates, provided a brief overview of the project and began the PowerPoint presentation by summarizing the Project Observations. He noted that the project is well designed with essentially construction ready documents and appears to meet its general program objectives. Mr. Borden stated that this kind of facility is better suited to H-metal framing as opposed to wood framing and a small premium was included to move to metal framing construction. Mr. Borden noted that due to the readiness of the design, the project could be ready for this round of NMTC allocations; it would take about 4 to 5 months of start up to get the project retuned and it fits nicely with the financing process. He clarified for the Committee that a comprehensive value engineering exercise was done by the team who designed the project, and a major evaluation process would not be productive in saving a lot of money. The Committee discussed the possibility of significant impact to the project resulting from state and international building code changes. Mr. Borden responded that extra contingency money was included recognizing that there may need to be some work done to bring the building design a little more closely in tune with building codes. In reviewing the Development Budget - Hard Costs, Mr. Borden stated that some growth in construction costs over the next 12 to 24 months is expected. He noted that in the model presented, the 7.0% base line contingency ($561 ,280) is associated with unknown conditions, and the 5.0% Design Contingency ($400,914) is related to codes and design elements recognizing that the design will have to be updated and the need to determine whether all project design elements are still relevant and available. In reviewing the Development Budget - Soft Costs, Planning Director Snyder clarified that the City would not charge itself for the building permit but would charge impact fees and system development charges. Director Snyder added that the Mayor has the authority to exclude City projects from permitting fees. Mr. Borden stated the developer fee is essentially the risk premium; the City's agreement with NDC will be to provide a guaranteed maximum price so any cost risk or overruns do not go to the City. John Finke, Senior Director, NDC-HEDC, clarified that if the project comes in under budget, the Page 2 of 4 savings flow back to the City. Director Snyder pointed out that NDC project management fee of 1 .0% is the first of two instances where NDC is paid. Mr. Borden stated they believe that the project is doable at the total development cost shown with possibly 7% to 10% cost savings as the contingencies move to certainties and the budget is refined. In reviewing the Financing — New Market Tax Credits (NMTC) Status Update, Mr. Finke stated that Congress extended the NMTC program for 2 years at 3.5 Billion per year, down from $5.0 Billion per year, with awards made to Community Development Entities (CDEs) in April or May and commitments to individual projects in May, June and July. Misty Baskett added that there will likely be a need to look at CDEs that have smaller allocations so the project may end up receiving two allocations rather than one allocation. Mr. Finke stated in order to begin construction in August/September of 2013, it is important to be committed with plans, costing, and financing in place. He stated if the financing is available and there are two CDEs with NMTC financing, it is possible to fast track and close in approximately two 2 months. Mr. Finke stated that the project is already listed in two NMTC CDEs, specifically Kitsap Housing Authority and King County Housing Authority. He added that if the project were to get all of the NMTC from King County Housing Authority, it could expect to do better than the 21% funding allocation. In connection with financing, Mr. Finke explained the NMTC Flow of Funds for the Committee focusing on timing, debt structure and funding sources. He stated that finding and structuring the debt in a timely fashion is most important. Mr. Finke explained that the project will require a loan that will go to the investment fund and because the investment fund puts equity into a CDE, equity by Treasury's definition is not secured by risk. Therefore, the loan to the investment fund cannot be secured by debt on the project. The project will need to secure a loan that will not need project-specific real estate to secure it. He noted that there are two sources of getting this debt either through a bank loan or by the City lending the money — the latter potentially being the most economic route. Mr. Finke discussed the potential for the City to establish a Public Development Authority (PDA) for the lending of money and recommended that the City speak with qualified legal counsel regarding formation of and lending to a PDA. Mr. Finke, at the request of Chair Wagner, provided a more detailed explanation on the seven (7)-year interest only program. He discussed that when the project goes back to the City in 7 years the City will have to retire that debt -- simply, this is to get $2.5 Million dollars of free money. Therefore, it would be ideal for the City, in this Page 3 of 4 market where rates are very low, to look at taking long-term money out in order to have those proceeds. Meredith Messmer, Project Manager, Lorig Associates stepped the Committee through the Operating Model income and expenses, which assumes the City would self-manage line items above the dashed line. She indicated that it is possible to have a hybrid approach to reduce the debt service. Mr. Finke explained that NDC-HEDC will need to have a conversation with King County in connection with exemption for post- construction property taxes. Planning Director Snyder pointed out that the Asset Management Fee is the second time NDC will be paid for its services. He further stated that the Liability Insurance and Annual Inspections are pass-through costs to other third parties. The Committee reviewed the Project Schedule. Ms. Messmer pointed out that the timeline is tightened up to make this year's round of NMTC funding with one month to approve this current project to avoid starting over on the design or put the project on hold for another year. The Committee concluded it will have discussions with the Mayor and staff over the next couple of weeks and will need to have a workshop to educate the rest of the City Council sometime in February or early March. Following these discussions, the Committee requested that Lorig Associates and NDC representatives return to answer any questions the Committee may have. B. Committee Matrix (Snyder) Director Snyder asked the Committee to let staff know of any exceptions, additions or changes to the matrix they would like staff to amend. Director Snyder noted he will correct the formatting related to the 9/26/2012 dates. IV. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned at 6:43 p.m. APPROVED THIS day of 2013 Rich Wagner, Ch it Bobbie Hodgkinson, Pla ning Clerk Page 4 of 4 ' LGCC 03.27.13 III.D. Programs/Costs Submitted by:Daryl Faber Preliminary Program Models COMMUNITY CENTER Community/Multi-purpose Room A large 3-bay community room (multi-purpose space) designed to accommodate events for approximately 384 people (banquet seating) 550 (theater seating) will address some of the need for meeting and banquet space in Auburn. Space will feature modern technology for training and workshops intended for Community,Veteran and Human Service advancement in the community. Physical support spaces include storage as well as a catering kitchen which is sized relative to the meeting room space. Will also be used for recreation/enrichment classes. Classrooms 2 multi-use and program specific classrooms are included in the facility design based on existing programs, anticipated programming space needs. Classrooms will accommodate lecture space for up to 30 participants, recreation,education and enrichment classes,martial arts, birthday parties, senior classes, and also will be available for rental. Lobby/Lounge Area The lobby/lounge area will serve all populations for social gathering, informal activities,waiting for transportation as well as registering for seminars, training, activities and rentals. Friendship/Storage Area The Friendship area will be set-up to allow for outside organizations to set-up and develop their events/activities in a dedicated/secure classroom/storage area. Office Space The Majority of the Recreation and Arts staff currently located at the Parks and Recreation Administration Building will operate out of the new Community Center. This will allow for the development of a renovated Teen Center in the existing Administration Building. In addition office space may be available for internal and external Community and Human Service Organizations. Specifics-Banquet Room • 6915 square feet • Commercial kitchen • Outdoor terrace • Beautifully appointed • Piano available • Capacity: 384 seated at round tables; 550 theater-style • Dividable into 3 sections(2, or 3 room combo required for Fri-Sunday rental) Rates • Damage and cleaning deposits apply. • Discounts are available for non-profit organizations. • A late/early staff charge of$2030/hr will be added to any rental hours outside of normal building operating hours. • Rates for linens • Rate for allowing alcohol in facility • Rate for kitchen use Friday: $36020 for a 4-hour block of time between 4 p.m. and 10 p.m. Additional time: $130 per hour before midnight; $200 from midnight-1 a.m. Saturday: $1200050 for an 8-hour block of time between the hours of 10 a.m.-midnight Additional time: $1530 per hour before midnight; $200 from midnight-1 a.m. Sunday: $3620 for a 4-hour block of time between noon and 6 p.m. Additional time:$130 per hour before midnight;$200 from midnight-1 a.m. The fee for 2 room combo is 75%of posted rental rates. The refundable damage%leaning deposit is$250. Other available amenities include: Piano, $50 per rental DJ service,$75 per hour(2 hour minimum) Cleaning Service$7550 per hour(2 hour minimum) Catering (Kitchen Fee)$30/hour;Alcohol Fee($100/event); Linens$4 each Resource Classroom(s): 35-person capacity.TV/DVD is available and a white board and sink. $75 for a 2-hour rental. $50 for each additional hour Public Conference Room: 14-person capacity.TV/DVD is available and a white board. $45 for a 2-hour rental $30 each additional hour $50 refundable damage/cleaning deposit) ° off of the pe Medf 44 DE1]. i • Auburn Community Center Operating Pro-Forma Fiscal Years 2014 - 2023 Revenues 20141 2015 2016 2017 2018 2019]-2020 2021r-20221 2023 Recreation Programs 45000 47250 49613 52093 54698 57433 60304 63320( 66485 69810 Contract Services/Rentals 68062 71465 75038 78790 82730 86866 91210 95770 100559 105587 Misc. Revenue 200001 21000 220501 23153 243101 25526 268021 28142 29549 31027 Total Revenues 133,062 139,7151 1467011 154,0361 161,738 169,8251 178,3161 1872321 196,593 206,423 Expenditures 2014 2015 2016 20171 2018 2019 2020 2021 1 202291 2023 Salary/Benefits 47750 49183 50658 52178 53743 55355 570161 587261 60488 62303 Supplies 21400 21828 22265 22710 23164_ 23627 24100 245821 25074 25575 Contracted Services 27000 28350 29768 31256 32819 34460 36183 37992 39891 41886 M & O 1 133000 136990 141100 145333 149693 154183 158809 1635731 168480 173535 Minor Equipment 8000 8160 8323 84901 8659 8833 90091 91891 9373 9561 Total Expenditures 237,150 244,511 252,113 259,966 268,078 276,458 285,117 294,063 303,307 312,859 Net Cost to City -104,088 -104,795 -105,4121 -105,930 -106,340 -106,634 -106,8011 -106,831 -106,714 -106,437 Note the following assumption were made in calculating the project operating budgets: 1) 3% annual increase in salaries due to inflation 2% annual increases in supplies and minor equipment Note: it is assumed that existing full time employees will be transferred, additional part time staffing will be needed for extended hours/classes. Revised: 3/27/13