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.
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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.
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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.
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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:
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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.