HomeMy WebLinkAboutItem 5 - Res./Bond MeasureEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Action: Adoption of Resolution 4801 Calling a City Election on
November 2, 2004, for the Purpose of Referring to the Legal Electors of the
City of Eugene a Measure Authorizing the Issuance of a Maximum of $6,790,000
of General Obligation Bonds to Partially Fund the Civic Center Vision Project
Meeting Date: July 26, 2004 Agenda Item Number: 5
Department: Central Services Staff Contact: Sue Cutsogeorge
www. cl. eugene, or. us Contact Telephone Number: 682-5589
AGENDA ITEM SUMMARY
The purpose of this item is to place a bond measure on the November 2004 ballot.
BACKGROUND
Council Action History
On November 17, 2003, staff presented the Multi-Year Financial Plan to the Budget Committee.
This plan identified both the capital and operating needs for the entire organization over a six-
year period. A new police building was identified as a high priority need in the MYFP, and
replacement of City Hall was also included as a project.
On November 19, 2003, the council held a work session on sequencing of financial measures to
be presented to the voters. The staff materials for that work session indicated that a bond
measure for a police building would be the next potential item to be presented to voters in
November 2004. A parks, recreation and open space bond measure was being considered for the
November 2006 ballot. The council discussed the materials, but did not provide any direction.
On July 14, 2004, the council held work sessions on the Civic Visioning Committee Report
follow-up and on the parks, recreation and open space bond issue discussion. The council
adopted a revised set of Civic Center policy principles and determined that a City Hall and Police
Building would be located on City-owned property on 8th Avenue. The council also declined to
have staff develop a November 2004 bond proposal for parks, open space and recreation
projects.
On July 21, 2004, the council continued discussion of a potential bond measure for the
November 2004 ballot. The council directed the City Manager to develop a resolution to place a
measure on the ballot based on the Civic Center Option A+, which would combine near-term
space needs with modest Civic Center amenities.
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Policy Issues
Should the council place a bond measure on the November 2004 ballot that would add expansion
space, social service space and civic center amenities to a Community Safety Building funded
with internal resources?
Council Goals
The civic center project relates to the council goals of an effective, accountable municipal
government, a safe community, and sustainable community growth and change.
Financial and/or Resource Considerations
The potential financial impacts of a Civic Center bond measure to the organization and the
taxpayers was discussed at the July 21 work session. Attachment B includes a description of
Option A+, which is the option the council directed staff to develop for possible placement on
the November ballot.
Other Background Information
None.
Timing
The council will need to take final action on a resolution no later than August 9, 2004, to place a
measure on the November 2004 ballot.
OPTIONS
1. The council can approve the resolution as written.
2. The council can requested changes to the resolution.
3. The council can decide not to place a measure on the November 2004 ballot.
STAFF RECOMMENDATION
The staff recommendation is to approve a resolution to place the Civic Center Option A+
measure on the November 2004 ballot measure, and approve motions to authorize expenditure
for a voter's pamphlet and appoint members to the voter's pamphlet committee.
SUGGESTED MOTIONS
Move to adopt Resolution 4801 calling a city election on November 2, 2004, for the purpose of
referring to the legal electors of the City of Eugene a measure authorizing the issuance of a
maximum of $6,790,000 of general obligation bonds to partially fund the Civic Center Vision
Project.
Move to authorize the expenditure of not more than $10,000 from the General Fund Contingency
account for neutral public information related to the proposed measure for the November 2004
election.
Move to appoint , and to the proponent committee for the
measure.
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ATTACHMENTS
A. Resolution
B. Description of Civic Center Option A+
FOR MORE INFORMATION
Staff Contact: Sue Cutsogeorge, Financial Analysis Manager
Telephone: 682-5589
Staff E-Mail: sue.l.cutsogeorge~ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO.
A RESOLUTION CALLING A CITY ELECTION ON NOVEMBER
2, 2004, FOR THE PURPOSE OF REFERRING TO THE LEGAL
ELECTORS OF THE CITY OF EUGENE A MEASURE
AUTHORIZING THE ISSUANCE OF A MAXIMUM OF $6,790,000
OF GENERAL OBLIGATION BONDS TO PARTIALLY FUND
THE CIVIC CENTER VISION PROJECT.
The City Council of the City of Eugene finds that:
A. The City's Police Headquarters has been located at the present City Hall
since it opened in 1964. As the City has grown, so have the functions and needs of the
department.
B. Concerns about the ability of City Hall to withstand an earthquake were
raised in a 1992 City Facilities Condition Report. Additional studies and actions between
1995 and 2003 continued to support the need to provide safe and adequate facilities to
house Police Department services. The Council also created a Council Committee on
City Hall Alternatives in 1999 charged with recommending a plan for developing options
to relocate functions in City Hall in the event that site was chosen for a new federal
courthouse site. The Committee's key finding was that the existing City Hall was not an
appropriate facility for housing public safety functions due to the seismic vulnerability of
its structural systems.
C. Mayor Torrey appointed the Police and Fire Stations Task Force in 2000
to develop a recommendation for the City Council on providing safe and adequate
facilities for Police and Fire services. One of the most important recommendations of
this Task Force was that a new Police facility should be located within the downtown
area to best address functional proximity to courts, the jail, and other City offices, service
delivery issues, and growth management goals.
D. In April 2001 the Council began to consider a long-range downtown city
space plan that would include both long-term and short-term actions that would
eventually result in replacement of City Hall, and has held numerous work sessions on
this topic over the course of the last three years.
E. Commencing in fiscal year 2001 the Council identified and began to set
aside one-time money each year for replacement of downtown City office space. In the
fiscal year 2003 budget the Council began systematically setting aside funds from
department budgets for this purpose.
City Council Agenda page 223
Resolution- 1
F. In May 2002 the first step in removing functions from City Hall so that it
could be replaced was taken when voters approved a bond measure to relocate Fire
Station #1 from City Hall to a new downtown fire station at 13th and Willamette Street.
The Council also approved using internal funding from the Facility Reserve for a
Forensics Evidence Unit and Property Control Unit facility to be built at a site on
Roosevelt Boulevard in May 2002 in order to relocate personnel that were working in the
basement of City hall into a safer and more suitable working space.
G. The policies in the Downtown Plan were adopted by the City Council in
April 2004, after a four-year process to develop the plan. In 2000, the City Council
appointed a Committee for Greater Downtown Visioning to explore the future of
downtown. The vision that emerged promoted downtown as a thriving, active urban
center with ties to our rich natural heritage, a variety of intermingled activities, and safe,
inviting streets. This vision was used as a basis for updating the Downtown Plan, which
included the concept of a "Civic Street" that would link a series of existing and planned
open spaces, and be the first choice for future civic buildings, including a new city hall or
police headquarters.
H. Mayor Torrey initiated the formation of a Civic Facilities Visioning
Committee in January 2004 that was charged with developing a coordinated vision of
civic building and infrastructure needs downtown and to submit recommendations to the
Council on how to implement that vision.
I. The Mayor's Civic Facilities Visioning Committee presented its report to
the City Council in June 2004 that set out a vision for future development of a Civic
Center, policy principles to guide the development, and recommendations on how the
vision could be implemented. The Council adopted a revised set of policy principles in
th
July 2004 that included a consolidation of City functions, reinforcement of 8 Avenue as
the Great Civic Street, enhancement of open space, development of partnerships,
inclusion of public safety services, provision of adequate transportation alternatives,
employment of sustainable cost-effective development approaches, and a plan for mixed
use development.
J. During June and July 2004 the City Council considered a number of
options for implementation of the Civic Center Vision, and determined that the vision
should be implemented in a phased approach with a Community Safety Building being
the first step in creating the new Civic Center Vision. The first phase would include
space for the Police Department's estimated needs for the next 10 years, a back-up 911
center, space for social service agencies to co-locate with the Police Department,
expansion of and improvements to the downtown park blocks, and street enhancements to
achieve the "Civic Street" concept recommended in the Downtown Plan. The City's
existing internal resources are sufficient to fund a Community Safety Building with a
back-up 911 Center, but are not sufficient to include space for social service agencies to
co-locate with the Police Department, provide additional space to meet needs for the next
10 years, or fund expansion of and improvements to the downtown park blocks, or street
City Council Agenda page 224
Resolution - 2
enhancements to achieve the "Civic Street" concept recommended in the Downtown
Plan. The cost of the entire first phase is estimated to be approximately $35.9 million,
and about 81% of that cost would be paid using internal City resources, with about 19%
to be requested from the voters in the form of General Obligation Bonds.
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 $6,790,000 of
General Obligation bonds to be used to provide additional funding for the first phase of
the Civic Center Vision project. The first phase would include not only the Community
Safety Building with a back-up 911 Center, but also space for the Police Department's
estimated needs for the next 10 years, space for social service agencies to co-locate with
the Police Department, expansion of and improvements to the downtown park blocks,
and street enhancements to achieve the "Civic Street" concept recommended in the
Downtown Plan, with the City's internal resources funding approximately 81% of the
total cost.
Section 2. The City Council orders this City election to be held in the City of
Eugene, Oregon, concurrently with the general election on the 2nd day of November,
2004, 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 (10) days'
notice of the City election by publication of one (1) 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 of capital construction and capital improvements related to the
purposes described in Section 1 of this Resolution, including payment of bond issuance
and interim financing costs.
Section 5. This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted the 26th day of July, 2004.
City Recorder
City Council Agenda page 225
Resolution - 3
ATTACHMENT B
DESCRIPTION OF CIVIC CENTER OPTION A+
COMBINING NEAR-TERM SPACE NEEDS WITH
MODEST CIVIC CENTER AMENITIES
Option A+ is a 92,000 square foot building which includes 77,000 square feet to support Police
functions through 2015, plus 15,000 square feet of general office space to accommodate part-
nerships with social service agencies. The social service agency partners would be responsible
for tenant improvements, and would pay the O&M costs but not the capital cost for their space
(since the voters would pay the capital costs through the GO Bond). The building components of
Option A+ are estimated at about $31.2 million for Police functions and $2.6 million for addition
of office space to support service partnerships.
Additional project elements in Option A+ include the extension of the "Civic Street" pedestrian
amenities along 8th Avenue from Pearl Street to Ferry Street, rehabilitation of the existing Park
Blocks and the re-establishment of a portion of the historic Park Block on Lane County property
at the northwest corner of 8th Avenue and Oak Street. This option would leave the Butterfly lot
in County ownership, so no replacement of County parking on another site would be required.
Total project cost for Option A+, including these additional elements, is estimated at $35.9
million.
Option A+ has the advantage of addressing a number of the policies adopted in the Downtown
Plan, as well as supporting the principles developed as part of the Mayor's Civic Facilities
Visioning Committee. Improvements to the current Park Blocks, re-establishment of the historic
park block on the Northwest corner of 8th Avenue and Oak Street, and the improvement of 8th
Avenue as the major Civic Street linking open spaces between the Park Blocks and Cannery
Square, are all policies adopted in the Downtown Plan. In terms of the Civic Center Vision prin-
ciples, Option A+ retains civic facilities along 8th Avenue, reinforces its character as a civic
street, enhances open space, supports the development of partnerships by providing shared space,
and provides parking for public safety vehicles and staff and potentially "frees up" dedicated
parking under City Hall for public use. It also asks for a minimal amount of funding from the
voters, and maximizes the use of internal resources to pay for the facility. Option A+ does not
include 20 year expansion space, however, nor does it increase the consolidation of Police
functions, as the FEU/PCU units would remain at Garfield until a future addition to the
Community Safety Building is constructed.
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Design Components - Option A+
COMPONENT Size (sf) Cost
City Hall Components Full Consolidation (CMO, Court, HRRS, Finance, -- --
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Moving & tempora~ relocation costs ....
Community Safety Base building w/parking for 2008 need ....
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.................................................................................................................................... '.~.~!y!~...~tr~[~7....!~p[px~[.~......r....[...~.!.p.q~ ..................................................................................... r.r .............................................. ~.?.,.PPQ ......
Moving costs -- $50,000
..... q~s...q~[e.r...q~p.~.e~.L........s.9q~[.5.~q~...5~.~...~...~.~[~..~?p~.~ ........................................................ [.~.,.PP? ............................ 5.}~.~PP.,.PPP ......
Purchase 1/8th Block for No~h Park Block ....
................................................................................................................................... P.~p~.~..~u~...(~SP....~p.~.~) ................................................................................................................ :.: .................................................... :.r ...............................
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Develop new No~h Park Block & improve 2 $750,000
................................................................................................................................... ~.~..?.~r¢..~p~
"Civic Street" improvements- 4 blocks -- $1,000,000
Sfi~ als i0~00 000
Finance Costs $390,000
Finance Plan
The finance plan for Option A+ is summarized below. A $6,790,000 General Obligation Bond
measure would result in an estimated tax rate in the first year of $0.08/$1000 of assessed value
and would cost the average taxpayer $14. The 20-year average cost would be lower, with a tax
rate of $0.05/$1000 of assessed value and an average taxpayer cost of $10. The issuance of
$6.79 million for the Civic Center vision would have an impact on the City's debt burden. The
current debt to real market value ratio is 0.4%, and it would rise as high as 0.44% as a result of
issuing the bonds. This is within the debt policy limit of 1.0% of real market value, as approved
by the Budget Committee earlier this year.
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Finance Plan - Option A+
Option A+
General Obligation Bonds $6,790,000
Limited Tax Bonds --
Facility Reserve 11,395,000
Telecommunications Funds
1X$ from Settlements 10,200,000
On-Going Telecom Funds 788,000
ROW Revenues in General Fund 5,200,000
Sale of Assets --
Urban Renewal Agency Funds 750,000
Interest Earnings on Cash Balances 750,000
Other Miscellaneous Sources 50,000
Totals $35,923,000
Operating & Maintenance Costs
Although not part of the plan for financing the capital costs, it is important to include the esti-
mated operating and maintenance costs for the new building. The preliminary estimate of the
ongoing O&M costs for Option A+ is about $1.2 million. About half of the O&M cost
represents daily building custodial, energy and other out of pocket costs for operating the
building. The other half represents the longer-term preservation of the building, which includes
preventive maintenance funded by facility maintenance rates and building preservation projects
funded from the General Fund capital budget.
The social service agencies would pay lease costs equal to the O&M on their space, so there
would be partial funding for the added cost. Given the City's structural budget imbalance, there
is no obvious source of funding for a new on-going commitment of General Fund dollars of any
net increase in O&M costs, however. If the council decides to authorize construction of this
project, and assuming no change in the health of the General Fund, a future year budget process
may have to reallocate existing General Fund dollars to the net increase in O&M on this facility.
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