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HomeMy WebLinkAboutItem D-2E: Resolution Planing PROS Bond on Ballot ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4869 Calling a City Election on November 7, 2006, for the Purpose of Referring to the Legal Electors of the City of Eugene a Measure Authorizing the Issuance of a Maximum of $25,490,000 of General Obligation Bonds for Parks, Recreation, and Open Space Projects Meeting Date: May 22, 2006 Agenda Item Number: D-2E Department: Public Works Staff Contact: Johnny Medlin www.eugene-or.gov Contact Telephone Number: 682-4930 ISSUE STATEMENT At the April 10, 2006, City Council work session, the council provided direction to develop a $25 million General Obligation bond measure for the November 2006 ballot for acquisition of park lands, partnership funding for the West Eugene Wetlands Environmental Education Center and partnership funding for the construction and replacement of synthetic sports fields with Eugene and Bethel school districts. BACKGROUND In response to a City Council request to provide project ideas for a potential parks bond focused on time- sensitive items and projects with low operations and maintenance costs, staff developed a potential project list consisting of three tiers. These three tiers of projects were discussed at a work session on February 13, 2006. The discussion resulted in a decision to focus the bond efforts on park land acquisition ($18.25 million) and the West Eugene Wetlands Environmental Education Center ($1.75 million) for a total of $20 million. At the April 10, 2006, City Council work session, the council asked for the bond measure to be increased to $25 million. The additional $5 million was targeted to partner with Bethel and Eugene school districts in the construction of new synthetic turf sports fields and for the City portion of costs for the replacement of surfacing at the four existing City/district partnership synthetic turf sports fields. The four existing City/district partnership synthetic sports fields were built on Eugene School District property but are jointly funded and maintained by the district and the City on roughly a 50/50 basis for both capital and maintenance costs. Use of the fields is jointly managed by the City and school district with input from the Synthetic Turf Sportfield User Committee, made up of members from the City, school district, community user groups, and neighborhood representatives. The district coordinates school use of the fields and the City coordinates the community use of the fields. The goal for expansion of this city/school partnership to develop additional synthetic fields is intended to follow this model. In discussions with Eugene (4J) and Bethel (#52) school districts, a number of locations have been identified as potential sites for the synthetic turf fields. 4J identified Cal Young and Madison middle L:\CMO\2006 Council Agendas\M060522\S060522D-2E.doc schools as their priority sites, with Jefferson, Roosevelt, and Spencer Butte middle schools as subsequent candidates. Bethel identified Willamette High School and two sites at Meadowview Middle School as candidates. One of the potential Meadowview sites would span portions of land owned by the school district and by the City at the north end of Bethel Community Park. Assuming passage of the City bond measure and with 4J funding already identified, it is anticipated that at least three of the fields could be build within the next two years. However, the total number of additional synthetic turf fields that can be developed or their timing for construction is unknown at this time due to the uncertainty of when additional partnership funding would be available from the two districts. The City’s portion of annual maintenance costs for the synthetic fields is estimated at $15,000 per field constructed. Some of the proposed sites currently have restrooms that can serve the fields and others do not. Additional annual maintenance costs will be incurred by the City for locations where new restrooms are built to serve the fields or where existing restroom services are required to expand. The City share of the annual restroom maintenance cost is estimated to be approximately $10,000 per restroom. Recreation Division annual operating costs to schedule the community use of the existing synthetic turf fields is approximately $3,000 per field. The City share of the annual lighting cost is approximately $4,000 per field. The City receives approximately $4,000 in rental and $2,000 in light revenue per field annually. The revenue potential of the proposed new fields is currently unclear. An evaluation of revenue potential will need to be conducted after locations are finalized. The range of future operating and program costs for the projects included in the bond measure is summarized in the table below. The total ongoing costs for the sports fields are shown in a range, and will depend on the number of fields constructed and whether the fields have restroom facilities or lights. These costs represent a commitment of future General Fund resources. Maintenance and Program Costs Acquire Land for Future Parks $26,000 Acquire Natural Areas $65,000 West Eugene Wetlands $20,000 Education Center Artificial Surface Sports Fields $115,000 – $165,000 Total $226,000 - $276,000 The size of the bond measure would include not only the project costs, but also the costs for issuing debt. The cost of issuing a $25 million bond is $490,000 for a total bond of $25,490,000. The resolution to place this bond measure on the 2006 ballot is included as Attachment A. The estimated tax rate in the first year (FY08) would be $0.30 per $1000 of assessed value, while the average tax rate over the 20-year repayment would be $0.14 per $1000 of AV. The estimated cost to the median homeowner in the first year would be $44, while the average cost over the 20-year repayment would be $26. According to the Lane County Assessor’s Office, the median home had an assessed value of $137,961 as of this fiscal year. L:\CMO\2006 Council Agendas\M060522\S060522D-2E.doc The City can issue this amount of debt and remain within the debt policy limit of 1.0% of real market value. The estimated debt to real market value ratio as of FY06 is 0.3%, and this ratio would increase to 0.4% in FY08 with the issuance of $25 million of PROS bonds. In 1998, Eugene voters approved a $25.3 million G.O. bond with a 66% approval margin. Implementation of the bond funded projects is nearing completion, with just a few projects remaining that are scheduled for construction in 2006. Results of the bond implementation have met or exceeded expectations in all project categories. RELATED CITY POLICIES The PROS Comprehensive Plan was adopted by Council Resolution on February 13, 2006. COUNCIL OPTIONS A.Adopt the attached resolution placing a PROS bond measure on the November 2006 ballot. B.Decline to adopt the attached resolution and instruct staff to take no further action at this time. C.Direct the City Manager to modify the attached resolution and return it to the council at a future date. CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of the attached resolution placing a PROS bond measure on the November 2006 ballot. SUGGESTED MOTION Move to adopt Resolution 4869 calling a City Election on November 7, 2006, for the purpose of referring to the legal electors of the City of Eugene a measure authorizing the issuance of a maximum of $25,490,000 of General Obligation Bonds for parks, recreation, and open space projects. ATTACHMENTS A. Proposed Resolution B. Proposed Project List FOR MORE INFORMATION Staff Contact: Johnny R. Medlin Telephone: 682-4930 Staff E-Mail: johnny.r.medlin@ci.eugene.or.us L:\CMO\2006 Council Agendas\M060522\S060522D-2E.doc ATTACHMENT A RESOLUTION NO. _______ A RESOLUTION CALLING A CITY ELECTION ON NOVEMBER 7, 2006, FOR THE PURPOSE OF REFERRING TO THE LEGAL ELECTORS OF THE CITY OF EUGENE A MEASURE AUTHORIZING THE ISSUANCE OF A MAXIMUM OF $25,490,000 OF GENERAL OBLIGATION BONDS FOR PARKS, RECREATION, AND OPEN SPACE PROJECTS. The City Council of the City of Eugene finds as follows: A. Parks and open space provide a place for citizens to enjoy time with family and friends and to meet other community members. Parks provide opportunities for youth and adult recreation that have a positive relationship to community health and public safety. The preser- vation of natural areas in and around Eugene provides needed habitat for wildlife and places for citizens to contemplate nature and find tranquility in their daily lives. B. This bond measure is intended to address the most critical needs in Eugene’s parks and natural areas. Acquisition of new park land is important to meet future goals related to parks, recreation and open space and avoid lost opportunities due to development pressures. Land should be acquired for neighborhood parks in the following areas of the City: Bethel, River Road/Santa Clara, south Eugene, Willakenzie, and Willow Creek. In addition, land should be acquired to create a community park in Santa Clara and expand Amazon Park and park land in front of the Shelton-McMurphey-Johnson House. Land also needs to be acquired for natural area parks, including land near the Ridgeline Trail, the Willamette River and Gillespie Butte. Approximately $18,250,000 from this measure should be used to acquire new park land. C. The West Eugene Wetlands Environmental Education Center is an opportunity to partner with other organizations including the Bureau of Land Management, Eugene School Districts 4J and Bethel 52, U.S. Fish and Wildlife Service, U.S. Army Corp of Engineers and the nonprofit organization, Willamette Resources and Educational Network to create and support a world-class education center. The Education Center would focus on celebrating and encouraging stewardship of natural resources through broad-based community involvement and resources. Approximately $1,750,000 from the measure should be used to help create the Education Center. D. Joint development of synthetic surface ball fields on school district property or City park property immediately adjacent to school district property presents another opportunity to partner with other public entities. The City, together with the Bethel and 4J school districts, has a history of working cooperatively with the schools to construct and maintain these facilities in the past. Working together with the 4J and Bethel schools districts would enable the resurfacing of the existing fields as well as the development of new fields on property owned by those districts and on City parkland adjacent to school property. Development of new fields could include auxiliary projects, such as constructing restrooms, lights and bleachers, as well as expanding parking lots. This opportunity is one that may not exist in the future. Approximately $5 million from the measure should be used for the development of new fields, resurfacing of existing fields and construction of auxiliary projects. E. The City Council agrees that a measure authorizing the issuance of General Obligation Bonds to finance these parks, recreation and open space projects should be referred to the electors of the City. NOW, THEREFORE, based upon the above findings, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. A city election is called for the purpose of submitting to the qualified voters of the City a measure authorizing the issuance of a maximum of $25,490,000 of General Obligation bonds to be used for parks, recreation and open space projects, including purchase of land for parks and preservation of open space, construction and resurfacing of all weather sports fields and auxiliary projects on school district property and on City parkland adjacent to such property, and construction and equipping of the West Eugene Wetlands Environmental Education Center. Section 2. The City Council orders this city election to be held in the City of Eugene, th Oregon, concurrently with the general election on the 7 day of November, 2006, in accordance with the provisions of Chapter 254 of the Oregon Revised Statutes, and the ballots shall be counted and tabulated and the results certified as provided by law. Section 3. The City Recorder is directed to give not less than ten days notice of the = city election by publication of one notice in the Register Guard, a newspaper published in the City and of general circulation within the City. Section 4. If approved by the electors, the proceeds from the sale of the bonds will be used only for costs related to parks, recreation and open space projects, including purchase of land for parks and preservation of open space, construction and resurfacing of all weather sports fields and auxiliary projects on school district property and on City parkland adjacent to such property, construction and equipping of the West Eugene Wetlands Environmental Education Center, and payment of bond issuance costs. Section 5 . This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted the ______ of day of May, 2006. __________________________________________ City Recorder Potential PROS Bond List May 8, 2006 project descriptionproject costs ACQUIRE LAND FOR FUTURE PARKS$10,500,000 Neighborhood Park Sites: 4-Bethel 3- River Road/ Santa Clara 1- South Eugene 2- Willakenzie 3- Willow Creek Community Park Sites: Santa Clara Community Park Skinner Butte Access Amazon Park Inholdings ACQUIRE NATURAL AREA PARKS$7,750,000 Ridgeline Trail- 60 - 100 acres River Frontage- 30 - 45 acres Natural Area Access PARTNERSHIP OPPORTUNITIES$6,750,000 Wetland Education Center School Synthetic Surface Sportsfields TOTAL$25,000,000