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Home My WebLink About04/08/2014 02 Capital Project Bond OptionsBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: 4/8/2014 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ITEM TITLE: SUBMITTED BY: SUMMARY EXPLANATION: Capital Project Bond Options Tony O'Rourke, City Manager Cindy Epperson, Finance Director Ken Wilkerson, Parks Manager Joan Davenport, Strategic Project Manager The City of Yakima has the opportunity to issue a capital project bond for up to $13 million. Three projects are presented as possible options that were previously identified as strategic priorities by the City Council: 1. North First Street Revitalization Project 2. Aquatic Center 3. Downtown Plaza Resolution: Ordinance: Other (Specify): Contract: Contract Term: Start Date: End Date: Item Budgeted: Amount: Funding Source/Fiscal Impact: Strategic Priority: Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: Improve the Built Environment City Manager RECOMMENDATION: Review the study session materials and provide direction to staff. ATTACHMENTS: Description Upload Date Type memo 4/3/2014 Cover Memo Spokane Valley YMCA Example 4/1/2014 1Baollcup Mate HI all North First Street Revised Design 4/1/2014 1Baollcup Mate HI all M EM ORANDUM TO: Honorable Mayor Cawley and Members of the City Council FROM: Tony O'Rourke, City Manager Cindy Epperson, Director of Finance and Budget Scott Shafer, Director of Public Works Joan Davenport, Strategic Project Manager DATE: April 8, 2014 SUBJECT: Council Study Session on Capital Project Options Summary of Study Session Issues The City has the opportunity to issue a capital project bond for $13 million. Three projects are presented as possible options that were previously identified as strategic priorities by the City Council: 1. North First Street Revitalization Project - $8 Million to $11 Million 2. Aquatic Center - $6.6 Million to $8 Million 3. Downtown Plaza - estimate not available, Financial Overview On January 21, 2014 an updated Five -Year Financial Plan for General Government operations was presented to Council. In that presentation, the 2014 and 2015 Forecasts are estimated to remain balanced. As we go forward, budget expenditures will be managed to stay in that position. The following is the summary chart included in the Plan, updated for 2013 actual results. General Fund (Millions) 2013 2014 Actual Budget 2015 Forecast 2016 2017 Forecast Forecast 2018 Forecast Revenues $63.5 $66.9 $68.9 $71.1 $73.3 $75.5 Expenditures $63.5 $66.6 $68.9 $72.1 $74.0 $75.7 Budget Gap Operational Efficiencies ($0.0) $0.2 Cost Reduction --- $0.0 Element ($1.1) $1.1 ($0.7) $0.7 ($0.2) $0.2 Net $0.2 $0.0 $0.0 $0.0 $0.0 2013 2014 Actual Budget 2015 Forecast 17 Forecast 2018 Forecast Operating Reserve % of GF 17.1% 16.7% 16.5% 16.0% 15.5% 15.1% Total Reserve $10.9 $11.1 $11.3 $11.3 $11.3 $11.4 The Plan included $1,000,000 debt service on a future bond issue in 2016. In accordance with Council direction, we contacted our bond underwriters and asked them to estimate the size of a debt issue that would be repaid at $1,000,000 annually for 20 years. Using an interest rate estimate that is slightly higher than current rates, we could issue bonds to generate $13 million of project funds. In order to determine that we are staying within our non -voted debt capacity limit as set forth in state law, we projected that annual calculation out to 2020. We also compared the limit to our Financial Management policy that states that we should avoid using more than 70% of the capacity, leaving 30% in reserve for emergencies. Page 1 of 7 The debt capacity calculation includes: 1) the $14 million street bond to be issued in the next few months; 2) the $13 million bond issue under consideration at this study session; and 3) an estimate to begin construction in 2017 of the street projects within the Yakima Redevelopment Area using the Local Infrastructure Financing Tool (LIFT) for debt service. The City is projected to stay within the limits set by state law through 2020, and slightly exceed our internal policy only in the first year of the debt issuance for the LIFT project. Project 1: North First Street Revitalization Project The North First Street Corridor Revitalization project includes the reconstruction of the street, sidewalk and landscape environment from I-82 to Martin Luther King Jr. Boulevard (MLK Blvd). North First Street is a Primary Arterial street which carries in excess of 18,000 average vehicle trips daily (ADT) with one of five freeway interchanges to Yakima. The corridor is classified as a T-3 Truck route by Washington State Department of Transportation. The infrastructure on North First Street is old and in poor condition. North First Street is a former state highway (replaced by I-82) and has an aged concrete base, covered in asphalt. Sidewalks are in poor condition with extensive driveways creating congestion and conflict along the corridor. Utility poles in the corridor are old wood, in disrepair on both sides of the corridor with massive overhead utility lines. Today, there are two parallel domestic water lines located in the sidewalk area between 70 and 100 years old, made of galvanized steel pipe which need to be replaced. Much of the corridor does not have a storm water drainage system and a new piped system is planned in conjunction with this project. Funding of the first phase of the project has been awarded from Federal Surface Transportation Program Funds (STP) for $3 Million which is expected to be obligated and ready for construction in 2015. Funding and construction for Phases 2 and 3 is estimated at approximately $8 million which may take up to 6 years as funding commitment is not secured at this time. The current project does not include removal of the concrete street base, storm water, and the undergrounding of all aerial utility lines or full piped utility replacement. This would increase the project cost by $3 million for a total project cost of $14 million. We recommend consolidation of the three phases in order to complete the project in approximately 2 years. The City will submit an application for at least $10 million in Federal funds under the Transportation Investment Generating Economic Recovery (TIGER) program for the North First Street project in 2014. The design of the North First Street project has been updated by our landscape architect. The proposed design includes approximately 15 mid -block median islands of approximately 100 feet in length, placed in locations that do not conflict with turning movements at street intersections and most driveways. A short PowerPoint presentation will be given at the Council study session for review. Project 2: Aquatic Center Project Aquatic Centers are becoming increasingly popular throughout the United States. Individuals and families are looking for great recreation and exercise opportunities. Aquatic centers have many different functions. The core aquatic center activities consist of a rectangular swimming pool that is used for swimming laps, springboard diving, water walking and water aerobics. Other amenities include a lazy river that can be floated on inner tubes or used for water walking. Other possible water features include water playgrounds, spa areas, water slides of various lengths, spray toys, zero depth entry, snack areas and climbing walls. See attached example of an aquatic center built in Spokane Valley by the YMCA. Indoor Aquatic Centers — General Information • Indoor Aquatic Centers range in cost of construction per square foot from $180 - $280. • Cost is driven by the amenities placed within the facility. [e.g. A 30,000 square -foot indoor aquatic center would cost $6,600,000 at $220 per square foot.] • Indoor Aquatic Center component costs o 25 meter by 25 yard 6 -lane lap pool cost estimates range is $850,000 - $1,200,000. Page2of7 o Lazy river that is 500' X 18' costs $1,500,000 - $2,000,000. Cost can be decreased by decreasing the length and width. o Water playgrounds can vary greatly in cost directly related to size. Water playground cost estimates are $150,000 to $300,000. o Locker room costs are estimated at $171 per square foot. A 30' X 24' locker room would cost $119,700 X 2 locker rooms = $239,400. Shower areas and restroom facilities cost $220 to $240 per square foot. A 500 square -foot men's and a 500 square -foot women's shower area would cost an estimated $230,000 to construct. o Space is also required for mechanical systems, air handling system, staff office space, deck space, spectator seating, etc. Location Location for an aquatic center is critical. Studies have shown that an aquatic center can be a great place for local residents to enjoy and can also be a regional draw. The geographic population center of Yakima is Tieton Drive and 32nd Avenue. A site in this vicinity would be ideal for public convenience and be within approximately a 10 minute drive for most Yakima citizens. Access from highways is an important factor to consider and ease of travel is also to be considered. If an aquatic center is difficult to get to, that becomes a deterrent to participation. -. :; .- �. ly \f Rive FJ a 1 • A, E ISI✓= .". 1 is is t" I • castlwale Rd—e l' a z fie 1 O. l L 0 t D/ • Apple Tree s r 1 Gal Carse -1- Wal Gat Cease Handal Park -W' Wasnin-laa•JW1-r Temmalkallwa I Fm e-_mr - L L *Manton Rd Summltvle. Ave Frani. erlelon Dr Tanana CemaaY V MI .1.011 la1DmA PSP F[a Terrace N ♦a 1 1 ^rs Rd 1 Yabma 1 Spmbmn ♦, Iae Pat Nob H,11-01va ry w±-..yl.r.ar aran.n.pd W Aetanum Valey l_ 141101 rot (I, al" = i SOWr.Fn. Ce..mP tavaQparmm. Wan.. PC 1.1GS.MPo. r1 S.IWCAV. GereiiP..GH. Ka6 We'T4 Def nc. Suva Fold... Pert U1AllCara lmnglarry>d meDeuer Comma Possible Sites • Fisher Park Golf Course: Fisher Park Golf Course was purchased in 1961 and is located on 40th Avenue and Arlington. The property is approximately 18 acres. • Lions Pool: Lions Pool current facility is 17,400 square feet X $220 = replacement cost of $3,828,000. Lions Pool current facility is located on 3.21 acres and has 125 parking spaces • N. 16th Avenue, 6.74 acres. This property is currently on the market. • 3714 W. Nob Hill Blvd — former USDA Ag research site of 9.15 acres • 4211 W Nob Hill Blvd — former drive-in theater site of 7.39 acres Page 3 of 7 Area Needed The area needed for an aquatic center must take into consideration the size of the building, which would include a lobby area, locker rooms, reception area, office space, filtration equipment and storage space in addition to the water facilities and parking. Cost Cost can greatly vary on an aquatic center. The best way to estimate cost of construction is by the square foot of construction cost method. It is important to determine the needed size of the area for the aquatic center. Aquatic centers can vary greatly in size, and cost of construction is directly related to the size of the facility. Industry standard construction costs range from $180 - $280 per square foot. A 30,000 square foot facility would cost an estimated $6,600,000 at a square -foot cost of $220 per square foot. The cost of indoor versus outdoor aquatic facilities The costs for developing outdoor aquatic facilities are generally lower than for indoor aquatic facilities. One obvious reason for the price difference is the expense incurred for building a structure to house the indoor facility. Building costs range from $180 to $250 per square foot. Year-round operation and maintenance also boost the costs. Required systems like dehumidifiers can be costly for indoor aquatic facilities. The most basic element of all water commands a price of $90 to $120 per square foot. A number of communities have constructed new aquatic centers with public — private partnerships. The City of Yakima could also enter into a joint agreement with a Yakima based non-profit for a facility construction and operation. An excellent model is Boise where the City and the YMCA jointly constructed and share in the operation costs. Project 3: Yakima Central Plaza Project A plaza for downtown events and public open space is proposed in the heart of the downtown. The City Council approved consulting contracts to develop conceptual plans and cost estimates for a plaza, as well as a parking and circulation study. The development of conceptual plans will involve a public review process to involve stakeholders, interested citizens and property owners. The conceptual design of the plaza and cost estimate will take approximately 6 months to develop. Parking and circulation issues will also be addressed in this conceptual study. The Downtown Plan Implementation Committee which includes three City Council members are participating in the oversight of the design of the plaza concept. The plaza/park may include both active and passive space that can also function as a community event space. The concept design will include the following features: • Shade, • A performance area and/or stage, • Water feature, • Seating, • Event area suitable for typical farmer's market and other gatherings, • Narrowing of adjoining streets along with a curb -less street frontage, • Area that could be converted from plaza to weekday parking, • Lighting features, • Enhanced with power supply and other amenities suitable to an event plaza, • Retail kiosk, • Public restroom/storage building, • Reflects the character of historic buildings and downtown aesthetic features. Until the preparation and review of a conceptual plan and preferred site is complete for the plaza and related improvements, the construction costs cannot be estimated. Page 4 of 7 C it ofYakin a ,W ashiigton North First Street Revitalization Project The revitalization of the sidewalk, landscape and pedestrian environment for North 1St Street is one of the City Council Economic Development Priorities, since it is a major gateway into the City. The current project design is proposed to include approximately 15 mid -block median islands of an average length of 100' with trees and ground cover, as well as street trees and a 7 -foot wide sidewalk on both sides of the street. These smaller median islands would be placed in locations that would minimize turning conflict at driveways and street intersections. Preferred Corridor Option mon ED ^�^^- Plan Median Enlargement MAO kb* Kr maw SeWhol Street Mee Preferred Corridor Option Green Corridor The City of Yakima was awarded $250,000 of Surface Transportation Program funds (STP) to prepare the engineering design plans for Phase 1 of the project. Phase 1 covers North 1St Street from I-82 ramps to N Street, a distance of 2,450 feet. Additionally, in January 2013 the City of Yakima was awarded $2,718,000 of STP funds for construction of this project. There is a 13.5% local match required for this project, which is $424,200, making the project total $3,470,000. This project funding does not include funding for construction of new storm water facilities, replacement of water and sewer lines or street surface reconstruction. One of the current objectives of this project is to relocate power and other overhead utilities to an underground location. To the extent possible given funding, this goal will be pursued. Additional funds through grants and other means will be pursued. Construction of this Phase 1 project will begin in early 2015. Future Phases of the North 1St Street Revitalization Project If constructed in phases, completion of the North First Street corridor (slightly more than one mile in length) would likely take until 2019 at an additional cost of nearly $8 Million. A fully funded project, including the street scape improvements, removal of the concrete street base, reconstruction of the street, storm drainage facilities, and necessary utility replacement for the entire corridor is estimated at nearly $14 million (including Phase 1). Page 5 of 7 C it ofYakin a ,W ashiigton Community Indoor Aquatic Center Project The idea to build a community indoor aquatic center in Yakima has been discussed for many years. An initial attempt at bringing the vision of a community indoor aquatic center to reality began in the early 2000s. The economic downturn had a hand in putting that idea back on the shelf. It is time, once again, to begin dreaming about the possibility of a community indoor aquatic center in Yakima. * Encouraging Partnership Investment — The development of an aquatic center will encourage new businesses to open and will encourage nearby businesses to invest in their facilities in order to capture new customers as they visit the center. The estimated cost to build an indoor aquatic center is about $7 million or approximately $220 per square foot. However, actual construction costs will depend on the size of the facility and amenities included in the project. IMF • 1111111M111 U11-11 I_. * The WOW! Factor - An aquatic center will provide a year-round opportunity for people of all ages to exercise and just have fun. The center will draw not only Yakima community members, but will serve as a destination for visitors as well. Contemporary aquatic center designs are attractive and have proven that they have amenities that are enjoyable to everyone. A warm water therapy pool, water slides, lazy rivers, zero entry pools, and water playgrounds are lots of fun for everyone. * Location — Several potential sites for an aquatics center are being considered, including near the center of the city, further west, and nearer to Yakima's southern border. The amount of space needed for an aquatic center is between 8 and 10 acres, which includes the required number of parking spaces. Easy access from a major highway is desirable due to the convenience of travel for out-of-town visitors, although a facility that is centrally -located is also desirable. * A Game Changer — Building a state-of-the-art aquatic center in Yakima will send a message that our community is progressive, vibrant, and robust. The investment made today in an aquatic center will pay dividends for many years to come and serve as jewel in Yakima's crown. * Accessible and Attractive — Accessibility is a central focus of contemporary aquatic center design. For example, aquatic center zero depth entry pool areas are specifically created to be wheelchair accessible. Additionally, no matter where the aquatic center is located in Yakima, its modern design is sure to enhance its surroundings. * A Place to Gather — A well-designed aquatic center will draw people together and encourage them to interact. Common areas in an aquatic center are natural gathering spots that create opportunities for people to converse. * Current Aquatic Replacement Costs — Current estimates of the repair costs over the next 20 years for Franklin Pool are $2,230,000 and $2,980,000 for Lion's Pool. These costs include replacement of mechanical and filtration systems, bath house renovations, deck and pool tank replacement, etc. Page 6 of 7 C it ofYakin a ,W ashiigton Yakima Central Plaza Project The City of Yakima has initiated the public process to help design a Central Plaza in downtown Yakima. The City Council has selected an international firm with strong Yakima heritage to lead the design process. The creation of a new public space in the heart of the downtown will provide a flexible area for community events and a destination space for new retail and restaurants. The need for safe and convenient parking will be part of the design process. Encourages Private Investment. The development of a vibrant, lively Central Plaza will attract new investment into the Downtown area. The preferred location has a unique opportunity for redevelopment along the perimeter area and along Chestnut Avenue to Front Street, creating new commercial areas. In the vicinity of the Central Plaza the Downtown Master Plan estimated private investment could be $77.5 Million. • Private Investment Potential • Retail 110,000 SF $27.5 MIL • Office 100,000 SF $26.0 MIL • Housing 115 DU $24.0 MIL • Total $77.5 MIL • WOW! Factor. The project team hired by the City Council has created public spaces in Seattle, Chicago, London, Amsterdam and Washington, DC, yet has hometown ties with the key staff. The design approach used to create the new space will use public input to develop a space that reflects local heritage, materials and place. • Location in the Downtown Core. The preferred plaza location and the alternative site are both in the heart of Downtown Yakima, just a half -block from the newly updated street scape of Yakima Avenue. • Game -Changer. The Central plaza will be the catalyst to encourage new investment and bring Yakima residents back Downtown to enjoy and participate in community events. • Accessible and Attractive to All. As part of the Plaza design process, the parking strategy will be reviewed to ensure the area is accessible and convenient to the public. The design approach will be collaborative with the community, led by a professional team. Key principals to the Plaza design are the importance of a water feature, the importance of the community and the importance of authenticity and climate. • Participatory. The plaza will include areas for active and passive enjoyment, ranging from community events to quiet areas. • A People to Gather and Interact. The Central Plaza concept has been described as "Yakima's Living Room" — providing a public gathering space in a beautiful and inviting environment. The proximity of the Plaza to existing significant Downtown features, such as the Capital Theater and the opportunity to accommodate events like the Farmer's Market or festivals encourages the interaction. • Financially Sustainable. The development cost, management and maintenance of the Central Plaza will be a key issue in the feasibility study. We want a community asset for the next 100 years in Yakima. Page 7 of 7 Yakima City Council Study Session on Capital Project Options April 8, 2014 EXHIBIT: Spokane Valley YMCA Information The following pictures and drawings are the Spokane Valley YMCA Page 1 of 2 Page 2 of 2 HBB LANDSCAPE ARCHITECTURE North First Street Corridor Revitalization Preferred Option April 8 2014 Location of cross section Days Inn A: GJD SYCA1pNEAVENUE --- 0641C AVENUE 1,2 SYCAMORE AVENUE 77--TTTTTTTTTTTT NORTH North First Street Corridor Revitalization Preferred Option HBB LANDSCAPE ARCHITECTURE April 8 2014 Existing Corridor *a 8' Sidewalk 16' Lane .5' curb 10.5' / 10.5' Lane Tum lane 84' 10.5' Lane 10.5' Lane 7' Shoulder .5' curb 6' 1I Sidewalk Landscape zone Right of Way North First Street Corridor Revitalization Preferred Option HBB LANDSCAPE ARCHITECTURE April 8 2014 2011 Committee Recommended 4'x6' Tree grate 7' Sidewalk 14' Snow storage 11' 11' 11' Snow storage 14' Lane f 4 f .5' curb Landscape/ Amenity zone Lane Turn lane 84' Lane Lane .5' curb 7 4'x6' Tree grate Sidewalk 4 Landscape/ Amenity zone Right of Wav North First Street Corridor Revitalization Preferred Option HBB LANDSCAPE ARCHITECTURE April 8 2014 , 4' HBB LANDSCAPE ARCHITECTURE Preferred Corridor Option 4'x6' Tree grate flimm 7' 14' Sidewalk , 4' 11' 11' 11 Landscape/ Amenity zone Lane Lane Landscape Lane Median 5' curb 5' curb 14' Lane 84' 4'x6' Tree grate 7' Sidewalk Landscape/ Amenity zone Right of Way Green Corridor North First Street Corridor Revitalization Preferred Option April 8 2014 HBB LANDSCAPE ARCHITECTURE Preferred Corridor Option 4'x6' Tree grate -; Sidewalk 14' \ Lane �, 4' , ` .5' curb Landscape/ Amenity zone 11' 11 4'x6' Tree grate ti• tr 1♦ 11 Lane Left Turn Pocket 84' Lane 14' Lane 5' curb Landscape/ Amenity zone 7' Sidewalk 4' Right of Way Green Corridor North First Street Corridor Revitalization Preferred Option April 8 2014 Preferred Corridor Option 100' Typical Median Length Elevation Drought tolerant — small and medium shrubs Accent groundcover with cobbles Columnar deciduous trees Median Enlargement 20' Typical Tree Interval Plan Bowhall Maple Acer rubrum 'Bowhall' Height: 50'-70' Width: 12'-15' Street Tree LANDSCAPE ARCHITECTURE April 8 2014