CCMinutes - 01/28/04 WS - Laserfiche WebLink

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effort and to provide the information requested subsequent to the Supplemental Budget 1 process. He referred the council to page 1-4 in the chapters of the master plan. He explained the yard facility was located at the southeast comer of Roosevelt Boulevard and Garfield Street and presently housed the majority of Public Works staff, equipment and materials. Most of the buildings were constructed in the 1940s, having formerly been occupied by the Lane County Public Works Department. He stated that the City had purchased the property in 1978 and had invested a considerable amount of work into upgrading it. He said there was an initial facilities plan prepared for the site in 1989, and updated in 1991 and 1995, contemplating property purchases in the adjacent areas. Currently, 216 employees work out of the Roosevelt Yard site. Mr. Corey described the remaining parcel that the Public Works Department sought to purchase, 4.8 acres of leased commercial warehouse property that currently generates $160,000 per year. He reported that the negotiated purchase price was $1,625,000, a market-based price arrived at in an appraisal prepared by a locally certified, mutually agreed upon appraiser. Mr. Corey underscored that the policy issue before the City Council was the necessary council approval for the interfund loan. He explained that the financial aspects of the proposal involved funding from five different funds: General Fund; Fleet Fund; Road Capital Fund; Stormwater Fund; and local Wastewater Fund. He said approximately $515,000 had been identified as an available cumulative fund balance, but the balance of just over $1.1 million would remain and was proposed to be paid with a loan from the Fleet Reserve Fund, with proposed repayment over a course of three years to be offset by the lease revenue. The budget action's effect on service delivery would in general lower the balance available in the two-month operating reserves in the funds. He said the exception to this was the approximate $35,000 General Fund component, which would be absorbed by the Parks and Open Space existing service budget for that period of time. Mr. Corey added that the Road Capital Fund would be impacted by approximately $40,000 per year for three years and that fund was derived from interest earnings and ending balances from completed projects. This specific proposal would not affect the proposal to be made in the annual budget on the operating or capital sides. He related that the Stormwater Capital Fund would be impacted by approxi- mately $15,000, reflected as a lesser balance available carried forth in the budget. Mr. Corey added that after three years, the property would bring revenue into the budget until it was developed for use. Mr. Corey called the property purchase an opportunity, noting that the seller was willing and the price would only rise from this point. He stressed that the financial impact was manageable and the funding was dedicated and not available for other areas of City government. Ms. Bettman, seconded by Mr. Poling, moved to authorize the City Manager to move forward with the purchase of the property as soon as possible using the fi- nancing plan described in the Agenda Item Summary (ALS) and to include the interfund loan and other necessary appropriation changes for the purchase in the next supplemental budget. Mr. Pap~ remarked that in difficult budget times, this property purchase was not a high priority for him. He called it a presentation ~in a void." He said he would like to look at the whole picture prior to approving such a sizable purchase. Mr. Meisner underscored that there were two questions before the council, that of the interfund loan and that of an implicit approval of the master plan. He asked if the rent revenue was gross or net. He