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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 3.2 7. APRIL 18, 2000 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. 2 328 APRIL 18, 2000 ADJOURNED MEETING 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. 3 329 2 APRIL 18, 2000 ADJOURNED MEETING 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. 4 330 APRIL 18, 2000 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 i ,��, ►!:� � . , . �.. �) 5 6 -- r: DATE ATTEST: �°( City Clerk Mary Place, Mayor Minutes prepared by Marketa George Oliver. An audio of this meeting is available in the City Clerk's Office • 1 5