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HomeMy WebLinkAbout08/26/2008 Adjourned Meeting 279 CITY OF YAKIMA, WASHINGTON ADJOURNED MEETING OF THE CITY COUNCIL AUGUST 26. 2008 — 8:00 A.M. YAKIMA CONVENTION CENTER 1. Roll CaII . Present: Council: Mayor Dave Edler, presiding, Assistant Mayor Micah Cawley, Council Members Kathy Coffey, Rick Ensey, Norm Johnson, Bill Lover and Neil McClure Staff: City Manager Zais, Director of Public Works Waarvick, and City Clerk Moore Selah: Council Members Denise Nichols, Herb Schmidt, and John Tierney Union Gap: Council Members Dave Matson and Jim Lemon County: Commissioners Mike Leita and Rand Elliott 2. Study Session regarding Yakima Aquatic Center Feasibility Study Mayor Edler and Council Member Coffey gave brief introductions of the study. City Manager Zais spoke about the efforts by Denise Nichols, when she was the Parks & Recreation Manager, as well as the Parks and Recreation Commission's role in the project. They looked into the changing demographics of Yakima and the features available that would attract visitors. He emphasized that this is a whole new concept for enjoying aquatics and requires a major investment. Chris Waarvick, Director of Public Works, explained that during the decisions to close pools, one decision was to invest $75,000 for an aquatics study. Consultant Greg McCracken of USKH, Inc. described the efforts and results of the study that took over a year working with community leaders and the Parks and Recreation staff. They discovered tremendous potential in Yakima for an aquatics center. • They toured potential sites • They did demographic and market analyses • Service areas; 190,000 people within a 15- minute drive. The secondary service areas of Ellensburg and the Tri -Cites were not included in the analysis for daily load and use fees — a conservative approach. • Climate, population base, geography and travel access all support the idea of an aquatics center. Mr. McCracken detailed the in -depth aquatic analysis and itemized the options: 1) Do nothing — limited capital costs but would still require maintenance of Lions and Franklin pools. 2) Outdoor facility only - keep Lions pool open to support year -round indoor swimming 3) Indoor /outdoor facility — allows closing both Lions and Franklin pools and replaces them with a year -round facility. It will also attract competition swimming, fitness, and instruction all year. 1 • 2 8 ':0 STUDY SESSION — AQUATICS CENTER AUGUST 26, 2008 The study supports Option 3. Although it has a significant capital impact, it would benefit the community over a 50 -year life expectancy. The conceptual development was reviewed and features were described. Mr. McCracken then reviewed the cost analysis considering both capital and operating costs. He noted that if the site were to require special needs, those costs are not included in the analysis and would require investigation. The task force began considering about ten sites and the Boise Cascade site came out on top. There are some technical and environmental concerns and due diligence is recommended on that property. Mr. McCracken then reviewed frequently asked questions and noted that all of this information was in the handout provided. City Manager Zais spoke about partnerships and financing. He listed partnering with the Public Facilities District, Selah, Union Gap, the County, YMCA, Rotary, the Visitors and Convention Center, the Chamber of Commerce, New Vision, Yakima Resources, New Leaders, CDY, and Parks & Recreation. He then reviewed packet material on the possibilities for paying for a facility. Outside resources, e.g. federal and state grants as well as other private organizations, are being researched. Other methods are fairly limited. Each entity could issue bonds but there must be a revenue source to pay for them. There is also the option of a public vote for a public property tax bond. It would require 60% approval. That would be difficult to sell with multiple competing issues. A utility tax could be presented to the voters, but those have not been successful in the past. Another method being explored is the development of a Public Facilities District taxing authority. Rita DeBord, Director of Budget & Finance, gave an overview of potential revenue sources and how we might finance construction. The preferred method for a revenue source appears to be a voted sales tax. The City of Yakima does not have legislative authority to do that; however, the Yakima Regional Public Facilities District does. It requires all three participating cities ( Selah, Union Gap, and Yakima) to agree to put the item on the ballot. If it went on the ballot, the voters would vote on imposing a sales tax on the three member cities. Mrs. DeBord and Mr. Zais discussed the details of interim financing methods, operational expenses, and funding shortfalls. The point was made that if it went to an election and did not pass, the election costs would need to be covered elsewhere. Mr. Waarvick discussed operating costs of the existing pools with their increasing maintenance needs. There are no reserve funds to cover any significant maintenance problems that could happen. The next item discussed was operating expenses. Mr. McCracken explained that operating expenses were projected on 2010 costs, a significant portion of which is full and part-time staff. The revenue was based on admission fees and results in an operation shortfall. Mr. Zais said that was based on the assumption that the City of Yakima would be operating the facility. The Council Committee has offered the concept of contracting the operation to a non - profit agency, e.g. the YMCA. A competitive proposal process would be required if that was pursued. 28 .1 STUDY SESSION — AQUATICS CENTER AUGUST 26, 2008 Michael Morales, Deputy Director of Community & Economic Development, gave an overview of the two top sites. He admitted that they are more knowledgeable on the Boise Cascade property as the State Fair Park site is a latecomer and further analysis needs to be done. They will have environmental considerations and geo- technical analysis to do with either site. They have been looking into infrastructure financing on the Boise Cascade site and expect to know the results within a month. The State Fair Park site already has many amenities available while the Boise Cascade site has challenges as far as infrastructure and access. Those infrastructure costs are not included in the costs presented today and will be the City's responsibility as they try to develop the area. Both sites have single ownership making it much easier. Another consideration will be the secondary impacts of the center, proximity of hotels, shopping, etc. and how we can make this the best that it can be to receive the full benefit. Because of the full risk for bond repayment, ultimately the City Council will make the final site selection. Mayor Edler restated that the City of Yakima believes the deficit risk is entirely theirs but is interested in involving elected officials in all aspects of the project. Commissioner Leita emphasized that the focus of the project is beyond just Yakima as the benefits expand beyond the City of Yakima. He referred to Selah, Toppenish, Wapato, and Naches who already have pools and are making their own investments in their maintenance. He asked those communities to consider accommodating their citizens to use the aquatics facility and saving the operating and capital outlays on their own pools. Selah Council Member Schmidt said they deal with operating and maintenance costs for the pool every year and felt that their quality of life can be greatly improved by a facility of this nature. Even with the huge investment necessary, it would pay many dividends economically. Selah Council Member Nichols spoke based on her involvement in the project while working for the City. They worked with the consultant on expandability of the site, e.g. if there could be other recreational components such as an ice rink. There is potential for a recreation corridor running from the Boise Cascade site to downtown. The tourism that will result from the facility is a tremendous bonus. When Moses Lake put, in their facility, they discovered that 80% of the participants are from outside ;; of their zip code area. Council Member Ensey queried Mr. McCracken on his company's (USKH, Inc.) experience with this type of project. He then pursued questions regarding life of the facility and revenue versus expense as it ages. Commissioner Leita spoke about the synergy that would be created around an aquatic center and surrounding businesses such as the hotels, wine tourists, sporting events, etc. 3. Audience Comments Dr. James Dodge spoke in support of the facility. He suggested there be a 50- meter pool to attract more competition visitors. He also spoke about financing and how to mitigate some of the costs. He recommended researching the use of alternative energy and was assured it would be. 282 STUDY SESSION — AQUATICS CENTER AUGUST 26, 2008 Jar Arcand spoke in support of the project, but raised two major concerns. He is afraid that it will not pass if it is presented to the voters. He also felt the idea needs to be greatly expanded and we should make it the largest theme park in the northwest. He urged the team to step out of the box and not be limited by our economic situation. He summarized by saying we need to concentrate on how to sell our assets instead of raising taxes for a smaller scale version. Denise Nichols responded that it was a challenge to balance economics in the community and provide swimming opportunities to residents who cannot afford private, for - profit swimming centers. She shared that many west side people travel to Moses Lake, because of the low admission rates and they can stay in a hotel and go to the water park a number of times for the price they would pay for one day at their local water park. But, she warned that if we were to focus strictly on tourism we would lose our local people. Mr. Arcand suggested offering discounted entry to local residents. Jeff Louden referred to the project as a "screaming no- brainer" and that the value of the tourism aspect is being underestimated. It is important to be conservative but the tourism benefit is huge. He said that the direct income would be a major number and you are handicapping the project with voters if we don't put those numbers out there. 4. Adjournment JOHNSON MOVED AND COFFEY SECONDED TO ADJOURN. The motion carried by unanimous voice vote. The meeting adjourned at 10:17 a.m. READ AND CERTIFIED ACCURATE BY AZ fil`� t.., I- L` 'r COUNCIL MEM w DATE COUNCIL MEMBER DATE ATTEST: `jam / CITY CLERK DAVID EDLE, MAYOR Minutes prepared by Deputy Clerk Watkins. A CD and DVD of this meeting are available in the City Clerk's Office.