HomeMy WebLinkAbout2006-017 Central Business District Capital Improvement Fund Appropriation; Budget Amendment and Appropriations ORDINANCE NO. 2006 - 17
AN ORDINANCE amending the 2006 budget for the City of Yakima; and
making an appropriation within the 321 - Central Business
District (CBD) Capital Fund and other various funds for
expenditure during 2006 to provide for construction of
Downtown Futures Initiative projects
WHEREAS, the 321 - Central Business District (CBD) Capital Fund and other
various funds contain Unappropriated Fund Balances available for appropriation and
expenditures during 2006 in various amounts as detailed in the attached Schedule I to
provide for construction of Downtown Futures Initiative projects, and
WHEREAS, at the time of the adoption of the 2006 budget it could not
reasonably have been foreseen that the appropriation provided for by this ordinance
would be required, and the City Council declares that an emergency exists of the type
contemplated by RCW 35 33.091 and that it is in the best interests of the City to make
the appropriation herein provided, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA.
Section 1. Appropriations are hereby made, for expenditure during 2006, from
Unappropriated Fund Balances in the 321 - Central Business District (CBD) Capital Fund
and other various funds to the various accounts and in the various amounts, to provide
for construction of Downtown Futures Initiative projects, all as specified in the Schedule
attached hereto and incorporated herein
Section 2. This ordinance is one making an appropriation and shall take effect
immediately upon its passage, approval and publication as provided by law and by the
City Charter
PASSED BY THE CITY COUNCIL, signed an • • proved is 8th
day of April , 2006 ;
DAVID EDLER, MAYOR
ATTEST
CITY CLERK
First Reading 4 -4 -2006
Publication Date 4-21 -2006
Effective Date. 4-21 -2006
Cepperson 3/31/2006
SCHEDULE
Appropriations
Fund 321 - Central Business District (CBD) Capital Fund Resources Appropriations
Expenditures
Phase I - Yakima Avenue 321 - 321 - 321 - 2116 - 59570 -650 $585,000
N Front Street Improvements 321 - 321 - 321 - 2103 - 59570 -650 $211,000
Phase 2 - Yakima Avenue 321 - 321 - 321 - 2165- 59570 -650 $3,615,000
Revenues
2006 WSDOT Grant -Phase I 321- 321 -699- 2116- 33403 -6DT $225,000
2006 WSDOT Grant -Phase 2 321 - 321 -699 -2165- 33403 -6DT $2,275,000
2005 CTED Grant -Phase 1 321 -321- 699- 2116- 33404 -2DC $80,000
Federal EDA Grant -N Front St 321 - 321 - 699 - 2103 - 33114 -2ED $196,000
Bond Proceeds 321 - 321 -699- 0000 - 39110 -BND $1,500,000
Transfer from REET 2 Fund 321- 321 - 699 - 2116- 39700 -OPT $130,000
Transfer from Transit Capital 321 - 321 - 699 - 2116 -39700 -OPT $30,000
Total CBD Capital Fund $4,436,000 $4,411,000
Fund 343 - REET 2 Capital Fund
Transfer to CBD Capital Fund 343 - 343 - 348 - 2116- 59700 -550 $130,000
Fund 364 - Transit Capital Fund
Transfer to CBD Capital Fund 364- 364- 518 - 2116- 59700 -550 $30,000
Page 1 cje 3/31/2006
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No
��
For Meeting of April I P, 2006
ITEM TITLE. Consideration of Report Regarding a Downtown Yakima Futures
Initiatives (DYFI) Financing Plan to Accomplish the Full Length of the
Project on Yakima Avenue from 9th Street to 7th Avenue including the
North Front Street Historic District:
A. A Motion to Amend the Financing Plan, and,
B An Ordinance Amending the 2006 Budget
SUBMITTED BY Dick Zais, City Manager
CONTACT PERSON/TELEPHONE Dick Zais, City Manager 575 -6040
Chris Waarvick, Director of Public Works 576 -6411
Michael Morales, Asst. CED Director 575 -3533
Cindy Epperson, Financial Services Mgr 575 -6070
SUMMARY EXPLANATION.
Background.
The 2006 adopted budget anticipated pedestrian way safety and lighting improvements on
Yakima Avenue from 9th Street to Front Street and the North Front Street Historic District.
Design work had begun back in 2005 following the successful effort to secure state Capital
Budget ($4 million) and Transportation ($870,000) grant funding by our Legislative delegation
and City Council
In the ensuing time, two issues have arisen causing needed changes to be considered in the
project financing plan: 1 ) The West Yakima Avenue phase (Front Street to 7th Avenue) of the
DYFI was awarded $2 5 million in state Transportation funding, and 2.) The bid on the first
Yakima Avenue phase (9 St. to 1 St.) came in above available grant resources
(Continued )
Resolution Ordinance X Other (Specify) Amended Financing Plan
Contracts to (name and address)
Funding Source Project Budgeted in 321 C D Capital Fund _
APPROVED FOR SUBMITTAL. n City Manager
STAFF RECOMMENDATION: Staff respectfully recommends the following actions.
A. A Motion to approve the amended financing plan regarding the construction of the
Downtown Futures Initiative project for Phase I (including N Front St.), and Phase II
B. Read the Appropriation Ordinance by title only at the April 4, 2006 meeting Pass
Ordinance after second reading at the April 18, 2006 meeting.
BOARD /COMMISSION RECOMMENDATION: The Downtown Futures Oversight
Committee was briefed on 3/23/06, and recommended bringing this issue forward .for full
Council action Senator Alex Deccio also supports this plan, as it completes this Downtown
project as originally presented to the legislature The leadership of the West Side Merchant's
Association has also been briefed and appreciates the proposal to complete Phase II to 7th
Avenue, as originally envisioned.
COUNCIL ACTION. First reading of ordinance; second reading scheduled 4- 18 -06.
4 -18: Ordinance passed. ORDINANCE NO. 2006 -17
Downtown Yakima Futures Initiatives
April 4, 2006
Page 2 of 3
In using the "real bid unit pricing" approach to project costs, and in analyzing our financing
needs for the North Front Street and West Yakima Avenue phases, staff and consultants have
determined that the second phase of the project would also likely cost in excess of available
grant resources. As a result, the City Council directed staff to present a project financial
analysis and funding solution to this overall project. A number of options were examined and
reviewed with the Economic Development Committee, and are hereto attached
Recognizing Council's vision to consider Yakima Avenue (9 Street to 7th Avenue) and the
North Front Street Historic District as one, unified Downtown redevelopment project, it was
recommended that leaving pieces incomplete or deferring to a future date would not serve the
project's basic intent: a significant, current investment into the public infrastructure contributing
to the renaissance of the downtown
As proposed, the financing plan offered herein for Council consideration accomplishes the
Yakima Avenue (9th Street to 7th Avenue) and the North Front Street Historic District project
elements ($9 4 million current estimate) of the larger DYFI plan with a local match to state and
federal grants of only 22% ($2.06 million) Our legislative delegation has indicated that this
action, if approved by City Council, would make funding possibilities for the remaining DYFI
plan elements much more achievable in future legislative sessions.
Alternative Financing Plan.
Because of recent escalation in construction /material costs and strong competition from other
projects statewide among a limited pool of qualified contractors, real project costs exceeded
available grant revenues. As a result, it was necessary to identify other revenue sources.
Several other local and Federal revenue sources are presented for Council consideration.
The attached spreadsheet summarizes the amended financing plan by listing the estimated
project costs and the proposed revenue sources Following this spreadsheet is the engineers
project summary, which identifies the original plan (currently in the 2005/2006 budget), the
deficiency based on actual bid pricing for Phase I, and a summary of Phase II estimated costs
and resources.
To arrive at the local share recommendation, there were several components of the project
that could qualify for funding from other City operations. In addition to these operational
commitments, growth in the 2nd %4% Real Estate Excise Tax (REET 2) is recommended to
assist the project in two ways — 1) The 2005 growth of this tax more than the year -end
estimate is being proposed for current Phase I project support; and 2) Future growth above
currently identified REET 2 funded programs could be used to support a proposed 15 -year
Councilmanic General Obligation Bond, beginning in 2007 (Debt service on a $1 5 million
bond is estimated to be about $150,000 annually) Staff believes that REET 2 will remain
adequate to support both current obligations of the fund and the proposed bond issue In the
unlikely event that REET 2 is not sufficient to make future debt service payments, it would be
proposed that REET I be used as a supplemental revenue source, so that general tax
resources would not be tapped REET 1 and REET 2 dollars are intended for capital
improvement projects, and cannot be used for operations and maintenance
The timing of when the bond would be issued is still in discussion It could be as soon as this
fall, as this would likely result in lower interest rates and would provide cash flow for the
project. However, it may also be advantageous to defer the bond issue until early next year,
after bid prices for Phase II are known
Downtown Yakima Futures Initiatives
April 4, 2006
Page 3 of 3
The attached appropriation would amend the CBD capital budget for the additional costs
needed for Phase I and the entire estimate for Phase II It also adds the new revenue sources
to the capital budget, and authorizes the transfers that are not related to savings /redirection of
budget in the other City funds. (i.e REET 2 and Transit contributions are from revenue gains
in the 2005 budget, and are therefore included in the appropriation ordinance) Other fund
contributions will be re- allocated from their existing 2006 budgets for project elements, which
qualify for consideration from those operating divisions
Summary and Recommendation.
Given Council's commitment to invest in infrastructure to support the revitalization of
Downtown and the positive effects this project would have on the City's economy and image,
staff is recommending this amended financing plan. Senator Alex Deccio is strongly
recommending that the project scope remain as originally presented, so that the City's
commitment to the project is demonstrated to the legislature The leadership of the Westside
Merchant group has been apprised and were pleased to be informed of the plan Upon
Council approval of this amended financing plan, the City Manager would then proceed with
the awarding of bids for Phase I (including N. Front Street), and would set a date for the
official ground breaking ceremony
City of Yakima
Amended Financing Plan
Downtown Yakima Futures Initiative, Phases I and II
Yakima Ave Yakima Ave
Phase I N Front St Phase II Total
Estimated Cost
Professional Services $ 776,535 $ 493,927 $ 800,000 $ 2,070,462
Construction Costs 2,793,944 1,728,858 2,815,000 7,337,802
Total Project Costs 3,570,479 2,222,785 3,615,000 9,408,264
Estimated Revenue
State & Federal Grants.
2005 CTED 2,138,000 1,862,000 4,000,000
2005 WSDOT 870,000 870,000
2006 State 225,000 2,275,000 2,500,000
Federal EDI 196,000 196,000
Total Grants 3,233,000 2,058,000 2,275,000 7,566,000
Local Share
CBD Capital 75,000 75,000
Wastewater 20,000 165,000 185,000
Water 35,000 35,000
Telecommunications 40,000 40,000
REET 2 - Streets 130,000 130,000
Transit 30,000 30,000
Streets 60,000 60,000
Councilmanic Bond 1,500,000 1,500,000
Total Local Share 390,000 165,000 1,500,000 2,055,000
Total Revenue $ 3,623,000 $ 2,223,000 $ 3,775,000 $ 9,621,000
Additional Contingency Balance $ 52,521 $ 215 $ 160,000 $ 212,736
Prepared by C Epperson 4/1/2006