Council MIN 04-08-1997 Special
FEDERAL WAY CITY COUNCIL
Special Meeting
Council Chambers - City Hall
April 8, 1997 - 7:30 p.m.
MINUTES
I.
CALL MEETING TO ORDER
Mayor Priest opened the special meeting of the Federal Way City Council at 7:30 p.m., in
Council Chambers, City Hall, Federal Way, Washington.
City Council present: Mayor Skip Priest, Deputy Mayor Hope Elder, Councilmembers Jack
Dovey, Mary Gates, Ron Gintz, Mike Park, Phil Watkins.
City Staff present: City Manager Ken Nyberg, City Attorney Londi Lindell, City Clerk Chris
Green.
II.
PLEDGE OF ALLEGIANCE
Mayor Priest invited Boy Scout Troop #300 to lead the flag salute.
III.
CITIZEN COMMENT
H. David Kaplan - clarified the intended usage of Celebration Park sports fields by stating the
open space areas will serve as multi-use fields for all citizens.
Dan Casey - encouraged the Council not to lose focus on establishing a positive image for the
downtown area; not only improving the city's overall appearance by reducing the visual clutter
of poles, wires and signs, but also encouraging growth for Class A office spaces.
Mayor Priest noted the recent passing of citizen Lynne Schow, and requested that a letter be sent
to Senator Schow and his family expressing the city's concerns and condolences.
IV.
COUNCIL DELIBERATIONS ON RECOMMENDATIONS OF
CIVIC INVESTMENT ADVISORY COMMITTEE (CIAC)
MOTION BY COUNCILMEMBER GINTZ TO ACCEPT THE REPORT OF THE CIAC, NOT
NECESSARILY THE COMMITTEE'S RECOMMENDATIONS; second by Councilmember
Gates. The motion passed as follows:
Gates
Park
Gintz
Priest
yes
yes
yes
yes
Watkins
Dovey
Elder
yes
yes
yes
ORIGINAL
FEDERAL WAY CITY COUNCIL SPECIAL MEETING MINUTES
APRIL 8, 1997 - PAGE 2 OF 4
A copy of the CIAC report and recommendations is attached hereto and marked as Exhibit" A" .
Mayor Priest thanked those members of the Civic Investment Advisory Committee present, Bob
Wroblewski, Bill Feldt, Betty Huff, David Head and Steve Lewis, as well as members of the
various committees making recommendations to the CIAC.
The Mayor then asked Management Services Director Iwen Wang to report on the 1997
community investment program. Ms. Wang first introduced Bond Counsel Nancy Neraas and
Financial Consultant Susan Musselman; both were invited to respond to Council questions during
deliberations on the proposed bond issue. There are two decisions to be made at this time; (1)
the community investment program in terms of dollar amounts and (2) the financing of the
program and term of the bond.
As the first order of business, Ms. Wang reviewed her memorandum dated April 7, 1997, which
explained the proposed investment alternatives 3 and 4, providing two variations of possible
investment programs, that being in addition to the initial Council proposal and the CIAC
committee's recommendation. She also detailed the three financing options. Memorandum from
Ms. Wang dated April 7, 1997, is attached hereto and marked as Exhibit "B"; this reflects
investment alternatives for Council consideration. The 1997 proposed Community Investment
Program Options is attached hereto and marked as Exhibit "C", identifying Table I (Investment
Alternatives) and Table 2 (Financing Options).
Ms. Wang responded to a variety of Council financing questions; Council also discussed the
possibilities of obtaining matching transportation funding from the RT A and other sources.
MOTION BY COUNCILMEMBER GINTZ TO APPROVE INVESTMENT ALTERNATIVE
3 AND FINANCING OPTION 3, WITH $16.15 IN IMMEDIATE FUNDING; second by
Deputy Mayor Elder.
Council discussion ensued with respect to financing options for the various projects.
DEPUTY MA YOR ELDER CALLED FOR THE PREVIOUS QUESTION; second by Council-
member Gintz. Motion failed as follows:
Gates
Park
Gintz
Priest
no
no
no
no
Watkins
Dovey
Elder
no
no
no
Following the failed motion to end discussion on the main motion, the Council continued
discussing the various financing possibilities. Ms. Wang explained that Financing Option 3
needs to be adjusted to reflect borrowing $4.5 million over 15 years, with a call provision of
no later than 10 years; and borrowing $11.65 million over 10 years; Councilmember Gintz
concurred in adjusting Financing Option 3 figures on his main motion.
FEDERAL WAY CITY COUNCIL SPECIAL MEETING MINUTES
APRIL 8, 1997 - PAGE 3 OF 4
Following the clarification for financing, the Council indicated they were ready to vote on the
main motion.
THE MAIN MOTION APPROVING INVESTMENT ALTERNATIVE 3 AND FINANCING
OPTION 3; AS ADJUSTED TO REFLECT BORROWING $4.5 MILLION OVER 15 YEARS,
WITH A CALL PROVISION OF NO LATER THAN 10 YEARS; AND BORROWING $11. 65
MILLION OVER 10 YEARS PASSED AS FOLLOWS:
Gates
Park
Gintz
Priest
yes
yes
yes
yes
Watkins
Dovey
Elder
no
yes
yes
v.
COUNCIL BILL #170/COMMUNITY FACILITIES BOND
ENACTMENT ORDINANCE/APPROVED ORDINANCE NO. 97-292
Mayor Priest announced Council would now move to suspend the rules to enable action to be
taken at a special meeting of the Federal Way City Council on Council Bill #170; such action
requires a two-thirds vote.
MOTION BY COUNCILMEMBER DOVEY TO SUSPEND RULES TO ENABLE ACTION
BY COUNCIL ON COUNCIL BILL #170, "AN ORDINANCE OF THE CITY OF FEDERAL
WA Y, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE OF LIMITED TAX
GENERAL OBLIGATION BONDS IN THE SUM OF $16,150,000"; second by Deputy Mayor
Elder. Motion passed as follows:
Gates
Park
Gintz
Priest
yes
yes
yes
yes
Watkins
Dovey
Elder
yes
yes
yes
As clarification, Mayor Priest explained this ordinance allows the city's financial and bond team
to go out for the offering. The actual vote on the bond sale will occur on April 22, 1997.
MOTION BY COUNCILMEMBER DOVEY TO APPROVE COUNCIL BILL #170, "AN
ORDINANCE OF THE CITY OF FEDERAL WAY, WASHINGTON, PROVIDING FOR THE
ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE SUM
OF $16,150,000"; second by Deputy Mayor Elder. Motion passed as follows:
Gates
Park
Gintz
Priest
yes
yes
yes
yes
Watkins
Dovey
Elder
no
yes
yes
FEDERAL WAY CITY COUNCIL SPECIAL MEETING MINUTES
APRIL 8, 1997 - PAGE 4 OF 4
Mayor Priest announced a special meeting of the Federal Way City Council will be held on
April 22, 1997, at 7:00 p.m., for examination of the bond issuance. The City Clerk was
directed to advertise such meeting per requirements.
Mayor Priest said the next item of business before Council is to define the expedited review
process. Deputy City Manager Philip Keightley provided guideline information for both the
civic theater and sports fields; a copy of Mr. Keightley's memorandum dated April 8, 1997, is
attached hereto and marked as Exhibit "D".
Councilmembers expressed a desire to complete all project phases as soon as possible. City
Manager Nyberg assured Councilmembers that every effort will be made to complete the
projects in a timely manner, respecting existing laws. He advised the project will be continually
monitored for cost and completion of projects, taking into consideration the community's needs.
Staff will also be cognizant of areas where changes can be made to provide efficiency for future
governmental processes.
MOTION BY COUNCILMEMBER DOVEY TO APPROVE THE EXPEDITED PROCESS
WITH ACCOMPANYING COSTS; second by Deputy Mayor Elder. Motion passed as follows:
Gates
Park
Gintz
Priest
yes
yes
yes
yes
Watkins
Dovey
Elder
yes
yes
yes
Mayor Priest thanked Mr. Keightley, Ms. Wang and other city staff who have been working
with the citizen committees on this very important project.
Mayor Priest proposed a one-day image workshop to include full Council, the CIAC and
members of the downtown committee for purposes of identifying plans for downtown
revitalization. He asked Councilmembers and staff to establish a convenient time within the next
few weeks for the workshop; a smaller working committee will then be identified. Discussion
of time specifics will be scheduled for the next regular meeting on April 15.
Staff reminded Council that approval of the lAC Grants for sports fields will also be an agenda
item for the special meeting on April 22, 1997.
VI.
ADJOURNMENT
There being no further business to come before the Council, Mayor Priest adjourned the special
meeting of the Federal Way City Council at th our of 9:20 p.m.
(
N. hristine Green, CMC
City Clerk
COMMUNITY FACILITIES PROGRAM
CIVIC INVESTMENT ADVISORY COMMITTEE (CIAC)
REPORT
&
RECOMMENDATIONS
March 21, 1997
David Head, Co-Chair
Steve Lewis, Co-Chair
Committee Members:
Bill Feldt
Bob Griebenow
Betty Huff
Dean McColgan
Sandy Novak
Bob Wroblewski
III
EXHIBIT 'Í
V.
VI.
Table of Contents
Page
I.
Introduction ........................................ 1
II.
Values, Choices, Impacts ..............................1
III.
Specific Project Recommendations. . . . . . . . . . . . . . . . . . . . . . . 4
AsphaltOverlayProgram...............................4
Sports Fields at Celebration Park ........................5
CivicTheaterVRCC ..................................8
PublicSafetyBuilding ................................11
Downtown Revitalization ..............................12
IV.
Consolidated Financial Plan ...........................14
Work to be Done ....................................15
Conclusion.........................................16
Appendices (separately bound)
A.
B.
C.
D.
E.
F.
G.
H.
City Council mission, parameters and products requested of the Committee
Civic Theater Report
Sports Fields Committee Report
Downtown Revitalization Committee Report
Public Safety Facility
Asphalt Overlays
Chamber of Commerce Letter
Financial Overview for Community Investment Program
I. INTRODUCTION
The Civic Investment Advisory Committee is pleased to submit our unanimous
recommendations for a Community Facilities Program. This recommendation to the City
Council provides a spending plan to accompany the recently enacted increase in the
City's utility tax. '
In January, the City Council created four citizen committees to work on this plan
development. The mission statement for each is included as Appendix A. The mission
of the CIAC was to receive and review recommendations of the Sports Field, Civic
Theater and Downtown Revitalization Committees along with proposals for a public
safety facility and for a continuing program of asphalt overlays. The individual
committee reports are included as Appendices B, C and D. The staff-developed reports
on the public safety facility and asphalt overlays are included as Appendices E and F.
The CIAC met in formal session nine times. We are extremely appreciative of the
intensive work of the three supporting committees and of the exceptional staff support
that we have received throughout the course of this effort. We were demanding of
committees and staff throughout and they were quickly and fully responsive.
This report has four sections. Briefly those sections include an overview of values,
choices and impacts, details on eacli of the plan components, a consolidated financial
plan, and an identification of follow-up actions necessary for the successful
implementation of the program.
II. OVERVIEW: VALUES, CHOICES, IMPACTS
Early in our work, we identified tests that we would apply to each project proposal. We
sought to give highest rank to projects and project combinations which:
~ serve multiple goals;
~ could be a catalyst for private investment;
~ contribute to a positive community image and sense of place;
~ expand opportunities;
~ have a positive economic impact;
~ have broad appeal to taxpayers;
~ show specific, visible results and impacts.
With that framework in mind, we could better compare and evaluate the multiple
proposals and proposal variations before us. From what at first seemed to be a series
of seemingly disparate projects has come a coherent, connected package which will
have a dramatic effect on the shape and sense of this community in the next decade
and beyond.
I. Sports Fields and Civic Theater This package is for and about this community. The
investments proposed for the development of Celebration Park and for a civic theater at
the Visitation Retreat Center serve multiple goals:
They are solid additions to the inventory of options available to this community.
A classic test of a good place to live, work and play is the availability of such
options. The development of Celebration Park strongly supplements a good City
parks program accessible to all. The sports field development at that Park
responds to a sharply felt need for additional soccer and softball fields in this
community with its higher-than-average percentage of under-18 population. The
creation of a civic theater fills a community void in performing arts facilities.
This City made a substantial investment in the Celebration Park and the
Visitation Retreat Center properties. The lack of capital development money has
meant no return on investment, especially for Celebration Park. This proposal
will make these properties a contributing part to the life values of this community
as places to gather, play, participate and to watch and enjoy.
In addition, the development has substantial eco.nomic ramifications. The
combination of a marketable tournament level sports field complex at
Celebration Park and the existence of a quality small civic theater at the
Visitation Retreat Center will attract some $8,000,000 annually into this
community.
2. Roads. Federal Way is further served by the important commitment to prudent long-
term management of a vital part of its infrastructure, its roads. The supplement for
asphalt overlays provided in this program ensures that our city streets will remain in
acceptable to good condition throughout the next decade and that Federal Way will not
be faced with a cataclysmic emergency repair requirement at the end of that period.
3. Public Safetv Building. Similarly, the reservation of funds for a public safety building
is prudent preplanning of an investment necessary to fill out and complete the
commitment to effective police service to this community. The program allows time to
be more precise as to actual space needs as police operations and policy mature and
also to consider possible economic and operational merits of co-location with a City
Hall facility.
4. Downtown "Revitalization" Finally, this program recognizes that a central effort - the
"vitalization" of the downtown, as one CIAC member put it - is going to be a "work in
progress." We recommend reserving the balance of available funds for projects which
will be developed and detailed over the next six months through the continuing work of
the Downtown Revitalization Committee. Clearly those projects will target street lighting
for the city core and frame, beautification of South 320th, and support for economic
development coordination and image development. A great many other interesting and
exciting options exist but they need time to be refined and they will require funds.
2
The Council must confront a key issue here. The CIAC was directed to provide two
options, one which provided for the funding of a North access road to Celebration Park
out of utility tax funds and one which presumed that funding for that road would come
from other sources. The cost of this road is $790,000. The CIAC strongly recommends
that other fund sources be used. If not, the funds available for the downtown
revitalization are reduced by one-third and that would severely limit the City's ability to
respond to broadened development opportunities as the events of this decade unfold.
5. Private Investment This package of recommendations challenges the arts
community, the parks community and the business community to invest both time and
money in achieving best quality and best results in the park, theater and downtown
undertakings. The yield will be significant. The public moneys committed to this effort
will provide a significant base to build upon.
+
III. SPECIFIC PROJECT RECOMMENDATIONS
In this section of the report, we provide further details on each project we support.
Those details include a brief description of our recommendations and the rationale
behind them, a general description of the financing plan associated with the project,
and a statement regarding maintenance and operations costs.
A.
Asphalt Overlay Program -1997 throuah 2006
The CIAC recommends an annual $800,000 supplement for the asphalt overlay
program for the 1997-2006 period.
+
Rationale: To provide sufficient funding for the asphalt overlays of city streets
so that they may be continuously maintained in reasonable condition. The CIAC
believes that such a program is a core requirement of city government.
Inadequate funding of preventive maintenance borrows from the future when
cost to repair damage becomes significantly greater.
The amounts recommended, in combination with currently budgeted funds for
asphalt overlays, will allow Federal Way streets to be maintained at an
acceptable, though declining level, through 2006. The current pavement "rating"
for all local public streets is 79. This would decline to about 70 at the end of ten
years which is still considered "good", but at the low-end of that grouping. There
would be an attendant increase in deferred cost of rehabilitation of about $7.3
million in that period.
The CIAC notes that if the City Council chooses to extend its current funding for
the full decade, that amount plus this recommended supplement would sustain
the road quality and deferred rehabilitation cost at levels very close to the
present.
+
Financing Plan: Allocate $800,000 of cash flow from the Utility Tax beginning in
1997 and continuing through 2006. This would supplement the existing
$740,000 annual budget allocation and the special budget allocation of
$200,000 for 1997 and 1998.
Maintenance & Operations: This supplemental annual allocation of $800,000
for ten years is considered an M&O cost.
4
.
SPECIFIC PROJECT RECOMMENDATIONS
B.
Sports Fields at Celebration Park
The CIAC recommends a total project of $7.54 million to develop a sports field
complex, including 4 lighted batting fields and 4 lighted soccer fields at
Celebration Park, together with an amenity package which will make the Park
open and attractive to the general community. This figure does not include costs
for a North access road but assumes such a road will be built and financed from
other sources. Specific details of the project components are shown in Table 1.
.
Rationale: The original target guideline for sports fields development was $5.5
million which would have provided a basic, unlighted sports facility complex with
no other development. The Sports Field Committee argued persuasively that
the lighting of fields ($1.3 million) would substantially boost the marketability of
the complex for tournament usage and projected upwards of $8 million in
economic benefits to the City annually from tournament play. The lighting will
also maximize or increase community use as well. A north road access to the
downtown would facilitate out-of-town players and their families spending money
for food and lodging with businesses in the downtown core. The Downtown
RevitaJization Committee was later to agree with that positive assessment and
joined in support of portions of the development.
The CIAC strongly felt that limiting development to the sports complexes would
limit park use to the broader community. We added an amenity package which
will make the site a magnet for residents and visitors to use the passive open
spaces, to participate in organized athletic activities, and open the park for
walking, picnics, environmental education, festivals, and other community
functions that require open space.
This package meets high demand for additional playing fields. It creates a large
social and economic return on a City investment that, to date, has yielded
nothing. It is for all the community and of special benefit to the business
community.
.
Financing: Allocate $7.19 million of the bond issue supported by the increased
Utility Tax for this development. Of this amount, $50,000 will be made available
as a match for the first $100,000 raised privately. In total, the CIAC expects
$350,000 from private sources. Funds raised above this amount could be used
for further upgrade of the sports fields. Such items are identified in Table 1 B.
The anticipated timing of investment is 15% of the funds in 1997; 65% in 1998;
followed by completion in 1999.
Maintenance & Operations: Allocate $50,000 from annual Utility Tax cash flow
to help meet the operating expenses of the park. The recovery rate is projected
to be 86%, but it is felt that an annual allocation of up to $50,000 will allow the
facilities to be well maintained and operated.
5
TABLE -1
Sports Fields at Celebration Park
Construction Cost Estimate
Items: Est. Cost
Total
Site Worl\:.de!)1olition, grading, erosion control, earthwork 1,366,700
wetland nutlgatlon
Utilities: storm sewer, sanitary sewer, water, power 650,000
South En~ RQad / Parking / Wall~f/u: pafij~1f extruded curb, 995,515
stripmg, tr c signs, gates, seeding, paning, ig Ing
Structures:
Batting Field Restrooms 273,240
Soccer Field Restrooms 182,160
Maintenance Building 75,900
Battin1 Fields' Incoming p~wer ¥fazafaving (asphalJ)' dugout 1,077,743
payinã asphalt), backstops smätJ ood, fencing, sub rainage,
Imga on, seeding
Soccer Fields: Sub drainage, irrigation, goals 645,500
~e Fur.Dishing: P(lT.k signs, trash receptacles, benches, 38,300
I ormation signs, bike racks
Tree Planting: 106,200
Batting Field Lights: 645,500
Soccer Field Lights: 651,900
Play Areas: 68,300
Informal Use Areas: 98,800
Woodland Area: 149,300
Basketball Court: 25,000
Volleyball: 15,200
Traffic Mitigation: 386,194
2% for Arts 90,285
I Total: CIAC Recommendation I 7,541,737 I
6
Table - 1B
Sports Fields at Celebration Park
Other Costs
Other Costs recommended by Sports Field Committee, bnt
not included in the CIAC recommendation.
Topsoil and paved curb (related to entry road construction) 31,903
Batting Field items: 394,257
Concrete paving
Scoreboard
Retaining Walls
Bleacher asphalt
Bleacher & Rails
Ticket booth
Total Other Cost: ,426,160
7
.
SPECIFIC PROJECT RECOMMENDATIONS
C.
Civic Theater at the Visitation Retreat and Cultural Center
The CIAC recommends $2.07 million for the development of a Civic Theater at
the Visitation Retreat and Cultural Center, plus continuing M&O costs of no more
than $100,000 per year. 25% of the anticipated capital will come from outside
sources.
.
Rationale: The CIAC recommendation does three things: 1.) It uses the original
target money of $1.5 million for the development of a workable Civic Theater; 2.)
Provides an incentive for vigorous fund raising to raise the quality of theater
(and its marketability); and, 3.) Provides an annual support of not to exceed
$100,000 toward operating expenses. For this theater to operate effectively, a
full time experienced manager and an adequate marketing campaign will be
required. If this is achieved, we can expect a recovery rate of 40%, comparable
to that experienced by small theaters in Seattle.
The theater will provide a gathering place and enhance a sense of community. It
will provide opportunities for youth participation, involvement, and employment.
The cultural options within Federal Way will increase and benefit the entire
community. The presence of a viable performing arts theater will generate
additional economic revenues for community businesses.
.
Financing Plan: Allocate $1.55 million of the bond issue supported by the
increased Utility Tax for the public portion of funding for the Civic Theater.
Additional sources of financing include a potential grant for $140,000 from King
County, and $380,000 from private fund raising. Of the $1.55 million, $50,000 is
reserved as a match for the first $100,000 raised from private sources. Over
25% of the funds for capital investment will come from sources other than the
City.
The total project will be bid with deduct alternatives for costs to be covered by
the private fund raising. This approach will allow construction to go forward and
the project scope to be adjusted as the private funds are raised (see Table 2 for
details).
An established non profit organization will gear up an aggressive fund raising
campaign as soon as the City Council approves this recommendation so that all,
or the majority of the private funds, are available during construction. Assuming
Council approval, this project would go to bid by the end of October with a target
completion date of August, 1998.
Maintenance & Operations: Allocate $100,000 from the annual Utility Tax cash
flow to help meet the operating expenses of this facility as explained in the
rationale. The recovery rate in the second year would be 40% which is generally
comparable to the recovery rates experience by small theaters in Seattle.
8
TABLE-2
Civic Theatre at VRCC
Construction Cost Estimate
Items: Est. Cost
Total
General: demolition, disposal, shoring, layout 90,114
Si~e :Work: ~idewal!;:, curb, drop zone, landscape, 187,161
eXIsting parking lot Improvements
Concrete: foundation and slabs 24,000
Metals: canopy, columns, catwalk, misc. steel 49,469
Wood and Carpentry: beams, framing, sheathing 99,301
ThermallWeather Protection: roofing, insulation 59,092
Windows and Doors: frames, glazing, hardware 33,720
Finishes: walls, ceilings, floors 120,062
Specialities: acoustic panels, extinguishers, code signs 6,240
Cabinets and Accessories: built-ins, counters, mats 10,152
Me~ha!lical: heatj~ air conditioning, plumbing, 99,884
ventIlatIOn, fire spn er
Electrical: panels, lighting, power, fire alarms 84,466
General Conditions: construction facilities, supervision, 54,379
tools
Rehearsal and Practice Room: 139,000
Theatre seating: (225 fixed seats - 25 removable front 36,000
row)
Curtain, drapery and rigging: 40,000
Theatre lighting and controls: 60,000
Sound system: 11,000
Hearing impaired enhancement system: 5,000
Lobby furniture: 5,000
Contract Administration: 132,143
Sub Total: 1,346,183
9
Items: Est. Cost
Total
Upgrades prioritized by the Committee
1. Wooden Sprung Floor for Rehearsal room 13,200
2. Complete Sound System 30,000
3. Complete Stage Rigging, Lights and Control Equipment 62,800
4. Multi-media equipment 46,000
5. Rehearsal room upgrade to multi-use room 45,000
Estimated Building Construction Cost and Equipment: 1,543,183
Washington State Sales Tax: 8.2% 126,541
Federal Way 2% for the Arts 30,864
Estimated Construction Cost & Sales Tax / 2% Arts: 1,700,588
Professional Services Fees: 366,500
(Architectural and Engineering)
Grand Total: CIAC Recommendation 2,067,088
Table - 2 (continues)
10
SPECIFIC PROJECT RECOMMENDATIONS
D.
Public Safetv Building
The CIAC recommends that $3.0 million of the bond issue supported by the
increased utility tax be reserved for the eventual construction or purchase of a
Public Safety Building. This reserve would be supplemented by funds already in
the existing annual budget for the Public Safety Department and could be
increased by other sources if a larger space were desired to accommodate other
units of government.
.
Rationale: The CIAC is persuaded that the current leased Public Safety space
is inadequate for long-term use in both operational and security terms. We
consider that a new facility, built or purchased, will contribute to the efficiency
and effectiveness of the police and that is to the benefit of the community. We
cannot, at this time, make definitive statements as to the size or siting of such a
new facility, nor as to the merits of co-location with other units of government.
We think that judgment can better be made within 18 months when the Public
Safety Department's facility needs can be more accurately evaluated and
defined. Reservation of funds makes sense.
.
Financing Plan:
a.) $3,000,000 from the bond issue supported by the utility tax, plus $1.5.
million in the existing annual budget for the Public Safety Department
which is the present value of the current lease over 10 years; and
b.)
An additional $1 million bond issue that would be supported by income
from space leased to others if a 50,000 square foot building were to be
built or purchased.
Should a 50,000 square foot building be acquired or constructed, the Committee
notes that $5.5 million borrowed on a 15 year term instead of 10 years would
allow the full borrowing amount to be repaid without the risks associated with
lease income.
.
Maintenance and Operations: Any M&O expenses would be covered by the
existing budget of the Public Safety Department.
It
SPECIFIC PROJECT RECOMMENDATIONS
E.
Downtown Revitalization
The CIAC recommends that an amount of $2.4 million be reserved for Downtown
Revitalization investment as follows:
... Beautification of 32Oth Street (SR 99 to 1-5) $1,000,000
including a concept landscape plan.
... Adding street lighting for the City Center and frame. 460,000
... Economic coordination and image development 150,000
... Reserve for additional street improvements
and emerging development opportunities 790000
Total $2,400,000
If the City Council determines that the North access road to Celebration Park
must be funded from the utility tax increase rather than from other sources, the
CIAC would - most reluctantly - recommend that the $790,000 reserve be
sacrificed with the attendant loss of opportunities to positively affect the
downtown core.
.
Rationale: This was a most difficult challenge for the CIAC. The CIAC believes
strongly that maximum funds need to be committed to this work although specific
projects are not yet detailed, costed or phased. The Downtown Revitalization
Committee came up with a long list of possible investments associated with
appearance or activity or other stimulus. This is a work in its infancy and is
expected to mature over the next six months of continuing deliberations by the
Downtown Revitalization Committee. The decision on funding of the North
access road is critical. The CIAC, as does the Downtown Revitalization
Committee, recognizes that the access road contributes economic benefit to the
businesses in the core. But funding that road through other sources would
significantly widen downtown investment options.
A vigorous program to improve the appearance and sense of the city core will
certainly make the downtown more attractive and friendly and that will increase
use of the area. Maintaining and improving the vitality of businesses in the
downtown contributes to the City's tax base and supports improvements in our
citizens' quality of life.
.
Financing Plan:
Utilize a source of funds other than the Utility Tax to fund construction of the
north access road for Celebration Park. Allocate $1.9 million of the bond issue
supported by the increased Utility Tax and $500,000 in investment earnings
projected from the total bond proceeds to fund Downtown Revitalization. The
pacing of expenditure will depend on specific project choices emerging from the
Downtown Revitalization Committee's continuing work.
12
If the north access road for Celebration Park must be funded from the Utility Tax,
allocate $1.61 million of the proceeds of the bond issue to the first three items
listed above.
#
Maintenance & Operations: Allocate $100,000 from the annual Utility Tax
cash flow to meet the expenses of the additional street lighting and maintaining
additional landscaping.
13
IV. CONSOLIDATED FINANCIAL STATEMENT
The individual projects recommended by the CIAC total $17.51 million in capital
investment and $1.05 million in annual M&O.
Table 3 summarizes the consolidated package by specific project and source of funds.
Please note that the consolidation assumes $3.87 million from sources other than the
Utility Tax. This amount is explained in the footnotes to the table.
The calculations include a slight upward adjustment in utility tax capital from $13.5 to
$13.64 million. This adjustment occurred through a recalculation of debt service
payments based on an adjustment of expected borrowing rates.
TABLE 3 - CAPITAL AND M&O FUND SOURCES/USES
Project: Annual M&O $ Utility Tax Capital Private & Other Capital Total Capital
$ $ $
Asphalt Overlay $ 0.80
Sports Fields at $ 0.05 $ 7.19 $ 0.35 , $ 7.54
Celebration Park
Civic Theater $ 0.10 $1.55 $0.52 2 $2.07
Public Safety Bldg. $ 3.00 $2.50 3 $ 5.50
Downtown $0.10 $1.90 $ 0.50 4 $ 2.40
Revitalization
Total $ 1.05 $13.64 $ 3.87 $17.51
1 $350,000 from private fund raising
2 $140,000 from King County grant; $380,000 from private fund raising
3 $2,500,000 represents $1.5 million from capitalized lease expense currently in the budget, and
$1.0 million in lease income from 20,000 sq. ft. of excess space should a 50,000 sq. ft. building be
acquired
4 $500,000 from interest on proceeds of bond issue
We are pleased to report our recommendations can be funded by the increase in
the Utility Tax without exceeding the City Council's approved maximum of 5%.
Appendix "H" shows this in tabular form.
14
V. WORK TO BE DONE
The CIAC has identified the following "work to be done" which will require either
Council, Commission, and/or staff action.
1. Development of Imaae. We believe that immediate work needs to be done in this
area as a prelude to a range of decisions particularly affecting the downtown such as
name changes, street lighting, beautification, and marketing of Federal Way. We favor
using a citizen-City Council committee, professionally assisted, to convene for not more
than one day to refine a sense of image to give a framework for detailed strategies and
work programs. At least two members of the Downtown Revitalization Committee
should be included to ensure connection to that Committee's subsequent work.
2. Downtown Revitalization. The charter for the Downtown Revitalization Committee, in
current or adjusted form, needs to be extended for a minimum of six months. In that
period of time, that Committee should be expected to refine, detail, cost and phase a
work program which is consistent with the desired City image and objectives and within
the funds allocated in the CIAC proposals.
3. Aggressive Grantsmanship. Within the CIAC recommended program are targets for
grants and other income resulting from revenue raising efforts. These efforts need to be
organized and initiated immediately. The City staff should take responsibility for the
aggressive identification of grant sources and for the timely filing of grant applications.
The arts community will form a campaign committee to run its corporate and private
fund raising activities in support of the civic theater. A similar structure is advised for
the Parks Commission to seek added support for Celebration Park.
4. Public Art. The several capital investment programs will generate approximately
$120,000 in funds from the 2% for the arts program. Approval of the expenditure and
distribution of this amount lies with the Arts Commission. The CIAC presumes that such
funds would be utilized solely in connection with projects identified. in this program. Of
these projects, the CIAC believes that the downtown area should benefit from the major
share of arts money in its beautification efforts and would encourage the Arts
Commission to support this approach.
5. Field Operations Issues. There are a number of field operations issues and
concerns which need to be addressed by the Parks Commission. These include such
matters as policies on allocation of field use, event scheduling, and fee structures.
These are detailed on page 10 of the Sports Field Committee Report (Appendix C).
6. Impact of RTA Investment. This community's face will be dramatically affected by
RT A development. The siting of the transit station will have particular effect on the
nature of and activity in the downtown core. This needs early review to ensure the best
result for Federal Way.
15
CONCLUSION
A City evolves over time taking on a sense, flavor, and character that makes it much
more than a postal address. The quality of that evolvement depends on long-term
vision, public choices, and private involvement.
This investment program, because of its scope and time dimension, is one of the
most significant issues to come before the City Council. The decision taken will be
of weight similar to that of the adoption of the City's Comprehensive Plan. In fact, it
is a major translation of parts of that vision into projects and programs that will be
quickly visible and surely felt by the community to its benefit.
The CIAC feels very strongly about the value, balance, and impact of its
recommendations. The program as recommended, will make a dramatic
contribution to a çhanging sense of place for Federal Way. It is financially feasible
and prudent. It will bring substantial economic benefits to the community. It is a
program for the whole of the community.
16
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
April 7, 1997
Federal Way City Council
From:
Subject:
Iwen Wang, Management Services Director
1997 Community Investment Program
u
Attached are sample options that Council may use for further consideration and for your
discussion at tomorrow night's special meeting on the Community Investment Program.
Essentially, there are two decisions to be made at the meeting:
I) The amount of the community investment program;
2) The schedule of Bond issues (one lump sum or in phases).
Table I, investment alternatives, provides two variations of possible investment programs
in addition to the initial Council proposal and the CIAC committee's recommendation.
Alternative 3 sets the amount designated for a public safety facility at $4.5 million,
adds the North Road, uses $500,000 in carry forward funds, and sets aside the
$725,000 balance as opportunity funds for transportation grant matching, or if
needed, provides addtional funding for the public safety facility or downtown
revitalization. This alternative requires issuing $16.15 million in bonds, with a
portion ($5.5 million) amortized over 15 years.
Alternative 4 also provides $4.5 million for a public safety facility, includes the North
Road, uses all $615,000 of the carry forward funds available, and reduces the funding
for downtown from $2.4 million to $2.1 million. Only $15 million in bonds will be
required, to be paid offin 10 years.
Table 2 shows the differences in phased vs. a single bond issue. The differences are
primarily due to the length of time the bond proceeds can be invested before project
expenditures, and the higher bond rates assumed in the next two years. Either option 2 or
3 would provide sufficient investment interest earnings which are included as project
funding sources.
Should you have any questions, please do not hesitate to contact me at 661-4060 prior to
the meeting.
k:lFinanco\'IBONDOPThi.DOC
11{3 'i
EXHIBIT
1997 Community Investment Program Options
Table 1: Investment Alternatives:
Alternative 1: Council Original Alternative 2: CIAC Alternative 3 Alternative 4
Project Bond Other Total Bond Other Total Bond Other Total Bond Other Total
Civic Theater 1,500 350 1,850 1,550 520 2,070 1,550 520 2,070 1,550 520 2,070
Sports Fields 5,500 - 5,500 7,185 350 7,535 7,185 350 7,535 7,185 350 7,535
Public Safety 5,000 - 5,000 5,500 - 5,500 4,500 4,500 4,500 - 4,500
Downtown:
Revitalization 3,000 - 3,000 1,900 500 2,400 1,900 500 2,400 1,590 515 2,105
N. Road - - - - - 290 500 790 175 615 790
Opportunity Fund' - - - 725 725
Total 15,000 350 15,350 16,135 1,370 17,505 16,150 1,870 18,020 15,000 I 2,000 i 17,000
Notes Other Sources: Other Sources: Other Sources: Other Sources:
Private fund raising $3S0K Private fund raising S870K, Private fund raising $870K, Private fund raising $870K,
Investment Interest S500K. investment interest $SooK, Investment interest S515K,
. North Road to be funded from other Carry Frwd: S500K. Carry Frwd: SS15K.
unidentified sources
. Opportunity Fund can be used for 1) Transportation project grant matching; 2) Public Safety Facility; and/or 3) Downtown Revitalization projects.
Table 2: Financing Options
~
~
Option 1 Option 2 Option 3
Item 1997 199B 1999 1997 1998 1999 1997 1998 1999
Bond Issue $5,000 $5,000 $5,000 $10,000 $5,000 $- $15,000 $- $-
Terms (years) 10 9 8 10 9 10
Current Issue Debt Svcs' $653 $738 $808 $1,305 $738 $- $1,958 $- $-
Annual Debt SelVice Requirement $2,198 $2,043 $1,958
Issue Cost (1) $70 I $70 i $70 $130 $70 $- $188 i $- I $-
Investment Interest (2) $138 $523 $743
Total P & I (3) $19,623 $19,688 $19,575
Total BorrowinQ Cost (1-2+3) $19,695 $19,365 $19,020
. Assume 1998 and 1999 interest rates are 1% higher than AprilS, 1997.
~
~
OPTION-XLS option 4f7197 4:54 PM
~~
~ERFlL
DATE:
8 April 1997
TO:
Kenneth E. Nyberg, City Manager
Philip J? Keightley, Deputy City Manager c;]tL
Civic Theater & Sports Fields Schedules
FROM:
SUBJECT:
The following is a brief summary of the fast track schedules for the civic theater at Visitation
Retreat Center (14 months) and for the sports fields at Celebration Park (13 months pus 8
months sports field grass establishment):
Civic Theater.
* Design phase April through July (4 months).
* Building Permit approval in August (1 + month).
* Bid phase in September and October (1.5 months actual).
* Construction November 1997 through May 1998 (7 months).
Note: 1. The restrooms project should be completed about the end of July 1997.
2. The parking lot addition should be completed about the end of October 1997.
*
Sports Fields.
* Land Use permitting phase May through July (3 months).
* Building permit approval in August (I month).
* Bid phase in September and October (1.5 months actual).
* Construction November 1997 through April 1998 (6 months). Weather during the winter
months may effect this schedule and require no construction during the worst weather.
Grass establishment May through December 1998 (8 months). This is the time before ball
playing can be allowed on the grass.
The fast track schedule above is similar to that used for World Vision and other major private
projects. Because this requires the use of outside contractors the additional cost to do this may
be about $75,000. Disruptions at the Visitation Retreat Center to already booked events, those
being aggressively sought and the already scheduled recreation programs will result in some loss
in revenues. These are presently being estimated. The City Council by accepting this fast track
schedule needs to agree to the following for the civic theater and sports fields projects:
1.
Modify Council capital projects policy to only review these projects at a combined
Commission/Committee/Council meeting for 85% design and for Council to award bids.
2.
Approve the use of contractors to expedite the review process.
II...,...
RXH11U1' ..J/ 1/