HomeMy WebLinkAboutItem B: Capital Project Funding for Washington-Jefferson Skatepark
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Capital Project Funding for Washington-Jefferson Skatepark
Meeting Date: May 23, 2012 Agenda Item Number: B
Department: Public Works Staff Contact: Neil Bjӧrklund
www.eugene-or.gov Contact Telephone Number: 541-682-4909
ISSUE STATEMENT
This item is in response to a council poll in support of a work session to discuss the question “should the
City Council direct Parks and Open Space to allocate approximately $600,000 from the 2006 Parks
Bond toward Washington-Jefferson Skatepark construction and related park improvement costs?”
BACKGROUND
General
The Parks, Recreation and Open Space (PROS) Project and Priority Plan, adopted by the City Council in
2006, includes a City Center Skatepark as a Priority 1 project to be built in Washington-Jefferson Park.
The City has provided $292,000 in Parks systems development charges (SDC) Funds toward the design
and development of the skatepark. The 2008-2013 Capital Improvement Plan estimated the construction
cost at $400,000, with the City providing $292,000 and private fundraising providing the remaining
$108,000.
A donation and partnership agreement was signed by Parks and Open Space Division (POS) and Skaters
for Eugene Skateparks (SES) in early 2009. In the agreement, SES committed to raising $200,000
towards the construction of the skatepark by the end of 2009. Following signing of the agreement, the
Eugene Rotary also agreed to partner with SES to assist with private fundraising. The City’s funding
paid for the design process for the skatepark, which began in spring 2008 and was completed in spring
2010.
During the design process, both the scope and estimated unit costs of the project increased and the final
estimated cost of construction rose to $893,000 for the entire project, which includes four phases. While
the partnership agreement was not revised at that time, staff communicated to SES and the public that
the City had only committed to provide the $292,000 in Parks SDC Funds. This leaves approximately
$600,000 to be generated through private fundraising in order to build all four phases. SES began its
fundraising campaign in early 2009. To date, SES and Eugene Rotary have raised approximately
$90,000 towards construction of the skatepark.
Status of Partnership Agreement
Under the partnership agreement, in addition to the City’s contribution of $292,000 in Parks SDC Funds,
the City’s contribution was also to include providing on-going maintenance of the new facility. At
present, POS does not have adequate operations and maintenance resources to maintain a major new
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skatepark facility. Since neither POS nor SES have been able to meet the commitments outlined in the
2009 partnership agreement, it will need to be revised or rescinded in order for the project to move
forward.
O & M Budget Impacts
The POS Division’s inability to maintain a new skatepark is due to POS Division participating, over
several fiscal years, in repeated budget reductions across the organization required to balance the
General Fund. These General Fund reductions have diminished the POS Division’s capacity to maintain
the existing assets in the park and open space system. At the same time, significant new park assets
have been added to the system, yielding a gap of more than $1.7 million between resources available for
maintenance and the resources needed for maintenance of the park and open space system. As reported
to the council at an October 11, 2010, Work Session, since 1998 more than 1,000 acres of park land
have been acquired and 18 new parks have been developed while maintenance funding has declined.
Allocation of Park Bond Funds
The council has raised the specific question of whether funds from the 2006 PROS Bond should be
allocated toward Washington-Jefferson Skatepark construction and related park improvement costs. The
City Attorney, after consultation with the City’s Bond Counsel, has indicated that allocation of funds
from the 2006 Parks, Recreation and Open Space Bond for construction and construction-related costs
for the City Center Skatepark in Washington-Jefferson Park would be unlikely to survive a court
challenge (see memo attached).
Alternative Capital Funding Sources
Given the analysis provided by the City Attorney, the council may choose to consider and discuss
alternative funding strategies for construction of the City Center Skatepark. There are a number of
alternative capital funding sources available, which are described in Chapter V of the Parks, Recreation
and Open Space Comprehensive Plan (attached).
RELATED CITY POLICIES
As noted above, the Parks, Recreation and Open Space Project and Priority Plan, adopted by the City
Council in 2006, includes a City Center Skatepark to be built in Washington-Jefferson Park as a Priority
1 project.
On May 22, 2006, the council passed Council Resolution No. 4869 (May 22, 2006) calling for a city
election for the purpose of submitting to the voters a measure authorizing up to $27,490,000 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, purchase of land and construction of improvements at Golden
Gardens Park, construction and resurfacing of all-weather sports fields and auxiliary projects on school
district property and on City parkland adjacent to Meadow View School and construction and equipping
of the West Eugene Environmental Education Center.” A copy of Resolution No. 4869 is attached.
COUNCIL OPTIONS
1.The council can take no action, and allow the continuation of the public-private partnership effort to
pursue matching funds for the City’s Parks SDC Funds previously allocated. In this case, the project
would not go forward until additional private fundraising can be garnered to adequately support the
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project.
2.The council can direct staff to bring back information on alternative funding options for discussion
and consideration. The following categories of information may be helpful to support a council
discussion on this topic:
Description of process needed to utilize each funding source
Timing implications for utilizing each funding source
Funding implications for other projects resulting from utilizing each funding source
Other impacts and considerations resulting from utilizing each funding source
Strategy for operating the facility following construction
Strategy for funding maintenance of the facility following construction
3.Other, as directed by council.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends Option 2.
SUGGESTED MOTION
Move to direct staff to bring information on alternative funding options back to the council for
discussion and consideration, including:
Description of the process needed to utilize each funding source addressed
Timing implications for utilizing each funding source
Funding implications for other projects resulting from utilizing each funding source
Other impacts and considerations resulting from utilizing each funding source
Strategy for operating the facility following construction
Strategy for funding maintenance of the facility following construction
ATTACHMENTS
A. Memo from City Attorney, dated May 14, 2012
B. Council Resolution No. 4869 (May 22, 2006)
C. Ballot Measure 20-111 (approved by voters November 7, 2006)
D. PROS Comprehensive Plan, Chapter V, Funding Options
FOR MORE INFORMATION
Staff Contact: Neil Bjӧrklund, Parks and Open Space Planning Manager
Telephone: 541-682-4909
Staff E-Mail: neil.h.bjorklund@ci.eugene.or.us
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