HomeMy WebLinkAbout04/18/2000 Adjourned Meeting 1 326
CITY OF YAKIMA, WASHINGTON
APRIL 18, 2000
ADJOURNED MEETING
The City Council met in session on this date at 7:30 a.m., in the
2nd Floor Training Room, at the Police Station /Legal Center, 200
South 3rd Street, Yakima, Washington. Mayor Mary Place, presiding,
Council Members John Puccinelli, Clarence Barnett, Lynn Buchanan,
Larry Mattson, Bernard Sims, and Henry Beauchamp were present. Dick
Zais, City Manager; Glenn Rice, Assistant City Manager; Marketa
George Oliver, Administrative Assistant to the City Manager; Rita
Anson, Director of Finance and Budget; Chris Waarvick, Director of
Public Works; Ray Paolella, City Attorney; Bill Cook, Director of
Community & Economic Development; Cindy Epperson, Accounting Manager;
Tim Jensen, Accountant, were also present. Others present included:
Senator Alex Deccio; Kathy Coffey, Director of the Visitors and
Convention Center Bureau; Commissioner Jim Lewis, Advisory Board
Member; Don Schusler, Advisory Board Member; Dick Ostrander,
Advisory Board Member; Mel Lewis, Advisory Board Member; Curtis King,
Advisory Board Member; Skip Semon, Advisory Board Member; and Aubrey
Reeves, Mayor of Union Gap (after 8:00 a.m.).
REVIEW OF PUBLIC FACILITY DISTRICT
Mayor Place called the meeting to order at 7:30 a.m.
Don Schussler, Convention Center Advisory Board Member, provided a
summary and some background information of the public facilities
district concept. He discussed the value of the Convention Center
and the need for its expansion. He talked about the success that
West Side cities had experienced using public facilities district
legislation.
Council Member Barnett asked about the composition of the board for
the district and the 33% match requirement, and what the public and
private sources were for the funding the match. Mr. Schussler
answered that the Visitors and Convention Center (V &C) Board could do
whatever it takes to meet the match requirement; whether they pledge
the income or other resources. Mayor Place asked if the revenue that
is generated is pledged already and what funding sources are used to
operate the facility. Kathy Coffey, Executive Director of the V &C
Bureau, said that maintenance and operations are taken care of with
increased revenues. She suggested additional questions be directed
to City Finance and Legal. Rita Anson, Director of Finance and
Budget for the City of Yakima, said that her staff is looking into
the matter carefully at the moment. Mayor Place asked what happens
to the hotel /motel tax. Ms. Anson said that her current
understanding is that Yakima would continue to receive the
hotel /motel tax. They would use the existing facility as the match
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ADJOURNED MEETING
and then ownership would turn over to the Public Facilities District
(PFD). The City would then pay for debt service on the bonds for the
existing facility. She said that there needed to be more legal
discussions for clarification on exactly how this worked. It is
unclear whether or not the City would continue to receive any amount
of money over what is necessary to pay for the bonds.
Mayor Place asked about the dissolution provision in the Vancouver
ordinance that was included in the packet. She questioned whether or
not it was permitted and if there could be similar provisions in a
Yakima ordinance. Ray Paolella, City Attorney, said that direct
language regarding dissolution of a PFD was missing from the state
statutes. He stated there are two interpretations of what that
means. First, like Vancouver, some take the view that if it is not
in the statute, then it is not specifically prohibited and therefore
may be undertaken. The other view is that it cannot be included
because it is not referenced in the PFD statute. He said he is
continuing to research the issue. Mr. Schussler pointed out that the
group forming a PFD is free to fashion bylaws and articles of
incorporation, however, they would like to address those kinds of
legal issues.
Commissioner Lewis wondered if Yakima, Selah, and Union Gap form a
PFD and the County also forms a PFD, are they in conflict. He asked
what would happen to the bonding authority. He is concerned about
the autonomy of the board of a PFD with regard to the authority they
have to tax without oversight by the legislative authority. There
was a discussion about the Board composition and designation.
Mr. Schussler talked about interlocal agreements that could be
drafted to resolve some jurisdictional issues. Parking requirements
were also discussed and Mr. Cook said the expansion would probably
require another 200 spaces.
Mayor Place asked about the Spokane ordinance and whether or not they
have been contacted to see how their PFD is structured and working.
Ms. Coffey said it is a county PFD.
Council Member Barnett asked about ideas on financing and wanted to
know if the new Board could go to the voters to impose the sales tax.
Ms. Coffey said that as a board, they had only looked at the State
sales tax rebate. Council Member Barnett asked if that would be
adequate and Ms. Coffey responded that City Finance was researching
and analyzing the issue. Mayor Place asked if the PFD could bond for
enough money based on the sales tax rebate. Skip Semon, V &C Advisory
Board Member, said that the rebate was worth about $400,000 per year •
and does not increase anyone's taxes; it simply redirects money to
Yakima that was going to Olympia. Council Member Barnett asked if it
was possible to limit the Board's activities by Council ordinance.
Mr. Paolella said Council couldn't do that if there were specific
statutory authority for the activity.
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Council Member Puccinelli asked what the projected cost of the 3rd
phase is. City Manager Zais answered that the cost is self - limiting
by what funding source is chosen. There was discussion about debt
service and Tim Jensen, City Accountant, discussed some information
contained in the report prepared by City staff members. Mr. Zais
pointed out that with the bonding and the match, the project must
reach the $10 million threshold as set forth in the statute. Mayor
Place asked what happens to the PFD after 25.years. Ms. Coffey said
that would depend on how the ordinance is written. Vancouver, for
example, had dissolved the PFD and ownership of the facility will
revert back to the City after 25 years.
Council Member Beauchamp questioned if it was possible to build a
basic structure, but not entirely complete it to save money and then
finish it when the money becomes available. Bill Cook, City Director
of Community & Economic Development, responded that one of the
problems would be that revenue from the Center is needed to operate
it. If it were not complete, there would be no revenue.
Dick Ostrander, V &C Advisory Board Member, said the Convention Center
has been a sterling success. In the final analysis, there is no
other way to do the project, except by using the legislation setting
forth the PFD requirements. He stated that the group is presented
with a great opportunity because of Senator Deccio's hard work. He
said the Advisory Board is the City Council's commission, and they
are looking for the Council's leadership.
Council Member Puccinelli asked if it is known how much revenue would
be generated by charging for parking. Mr. Semon said that is an
issue subsequent to the decision of whether or not to build the
expansion. Mr. Puccinelli suggested using the revenue for matching
funds, but Mr. Semon thought the revenue would be an inconsequential
amount.
Council Member Barnett raised concerns about ownership and whether or
not the Board of the PFD would undertake actions with which the
Council would not agree. Mr. Ostrander said the Board is appointed
by the City Council. Further, if the Council was concerned
specifically about ownership of a facility, there is the possibility
to work with Senator Deccio to amend the legislation and address that
issue. Council Member Sims asked what would happen if there was a
conflict of interest for use between the Boards (of the PFD and of
the Convention Center.) Ms. Coffey said that the Convention Center
and the Advisory Board share all of the concerns being raised by
Council. She further stated the PFD Board could lease the facility
to the City who could hire a management company to operate it,
similar to how it is currently operated.
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Commissioner Lewis suggested developing a small task force comprised
of representatives from the City, County, Fairgrounds, and Convention
Center and maybe the Conference of Governments to look at a variety
of issues. They should look at forming a County -wide PFD and then
have Yakima, Selah and Union Gap form a sub -PFD if that is possible.
Mayor Place asked Mayor Reeves, from Union Gap, if his Council had
undertaken these discussions. He said his Council would be happy to
talk about this opportunity. Council Member Sims asked what the
timeframe was to create a PFD. Ms. Coffey responded that it had to
be started by January 2003. Mr. Schussler said that he is concerned
about the timeframe. Mr. Semon concurred that although it may seem
like a few years away, the process is exhaustive and extremely time
consuming. It is important to begin as soon as possible.
Mayor Place commented that City and County staffs need to continue to
find answers to the questions Council asked. Mayor Place asked if
she was hearing a consensus to form a subcommittee. Commissioner
Lewis recommended beginning with Yakima, Selah, the County,
Fairgrounds, and Union Gap representatives.
Mr. Schussler said this is a City of Yakima PFD and said they have
the project and urged everyone to move forward with it. Mr. Semon
agreed and said there was nothing to preclude adding other people as
needed as the project progresses.
Mayor Place said the consensus was to move forward with the project.
Senator Deccio said that the bill first came forward from Clark
County, the fastest growing county in the State and he thought it
would benefit Yakima also. He worked to make it a viable vehicle
through which Yakima could finance a project. He thinks Union Gap
needs to get more involved than they have been. He said the area is
in poor straits as far as economic survival is concerned. Yakima was
the only county in the State of Washington where there was no
economic growth during 1999. The PFD is another step forward in
trying to get people to come to. Yakima.
Council Member Puccinelli said that he wanted to set a meeting to
come back with some answers to the questions brought up at the
meeting. Mr. Zais suggested working with the Council Economic
Development Committee. Mayor Place wants Mayor Reeves of Union Gap
included, as well as Selah and someone from the County. Council
Member Barnett said 'to be careful not to slow the progress by
bringing in too many other people.
Mayor Place set a meeting for Wednesday, April 26th at 1:00 p.m. for
the Council Economic Development Committee at the Convention Center,
if it was not booked. She said she would like to have
representatives from the City's Legal and Finance departments there.
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ADJOURNED MEETING
Council Member Barnett and Ms. Coffey thanked the staff members who
worked on the report and complimented them for their efforts.
The meeting was adjourned at 8:30 a.m. to 11:30 a.m. today at the
Police Station /Legal Center, 2 Floor Training Room, to meet with the
Regional Planning Commission.
READ AND CERTIFIED ACCURATE BY:
�OUNCIL MEMBER DATE
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ATTEST:
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City Clerk Mary Place, Mayor
Minutes prepared by Marketa George Oliver. An audio of this meeting is available in
the City Clerk's Office
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