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HomeMy WebLinkAbout05/21/2007 Work Session City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, MAY21, 2007 The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday, May 21, 2007 at 6:02 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken and Councilors Lundberg, Wylie, Ballew, Ralston, Woodrow and Pishioneri. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City Attorney Joe Leahy, City Recorder Amy Sowa and members of the staff. Mayor Leiken announced that Don Lutes had passed away this afternoon from cancer. He noted the many contributions Mr. Lutes had made to this community. He asked Mr. Leahy ifthere was any information yet on a service. Mr. Leahy said no date had been set yet, but the family thought it might be mid-week next week. 1. Two Resolutions Amending Fees for Fiscal Year 2007-2008. Budget Officer Bob Brew presented the staff report on this item. The Resolutions being presented contain inflationary and other adjustments to fees currently charged by the City of Springfield Development Services, Fire and Life Safety, and Public Works Departments. Each year, the City Council reviews and establishes the rates for local wastewater and stormwater user fees. These rates are established to provide adequate revenue to fund operation and maintenance (O&M) of Springfield's sanitary sewer and stormwater systems, and a portion of the Capital Improvement Program (CIP). The Council also adopts the user fees set by the Metropolitan Wastewater Management Commission (MWMC) for the Regional Wastewater Program. The City Council reviewed options for a proposed local wastewater user fee increase at its May 7, 2007 work session. At that time, the Council directed staff to prepare a schedule of user charges for a public hearing on May 21 st, based on a 6% increase in the local wastewater user fees. In addition, the Council was informed that the MWMC adopted an 8% increase in regional wastewater user fees that also needs to be incorporated into the schedule of user charges for FY 07~08. No changes are proposed for the stormwater user fee rates. The Council Briefing Memorandum reviewed at the May 7th work session is provided as Attachment B for additional background and reference. Attachment A, a resolution establishing the local and regional wastewater user fees and stormwater fees for FY 07-08, is provided for Council consideration. It is requested that the Council consider acting on the resolution following the public hearing. Mr. Brew discussed several of the fees that were included on the schedule and explained them to Council. City of Springfield Council Work Session Minutes May 21,2007 Page 2 Councilor Pishioneri asked if Fourth of July sales were considered street vendors. Mr. Grimaldi said they would be transient merchants. Councilor Ballew asked why we didn't have a street vending license fee, because they were issued a license. She asked for staff to come back with a proposal for a charge for that business license. Councilor Ralston asked about the alarm system fee and said the $100.00 renewal fee seemed steep. Mr. Brew said he would check on what type of alarm that referred to. It may only apply to commercial. (response given during regular meeting later that evening) Councilor Woodrow asked if there were any restrictions on Council raising the liquor license fee. Mr. Brew said OLCC had specific charges, but he didn't find anything in Oregon Rules related to City charges. He could ask the City Attorney to look further into it. Councilor Woodrow asked Mr. Brew to check into whether or not the City was allowed to charge a different liquor license rate for different types of businesses, such as package stores versus open container type businesses. Councilor Ballew noted that the new fees didn't always equate to a 3.5 percent increase. She asked about the technology fee. Mr. Brew explained. She discussed cost recovery and asked what percentage of cost recovery the City currently received. Mr. Brew said staff hadn't done that type of analysis recently except on planning fees. Councilor Ballew said she would like to have that discussion again soon regarding cost recovery on all fees. She asked if the new computer system would do better tracking staff time. Mr. Brew said the new timecard system would be in about October. He said it could assist in tracking time, but would be up to each department how that was utilized. Councilor Ballew would like to see how that system tracked time and how it computed. Councilor Pishioneri asked what the difference was between Christmas Tree Sales and a Transient License. There was quite a disparity in the fee for similar businesses. Mr. Brew said he would have to go back to see if there was a specific code. Councilor Pishioneri said it seemed to be a similar business to Fourth of July Fireworks Sales. He also asked why the street vendor was not charged a fee. Mr. Brew referred back to the question about the technology fee. He explained the technology fee and what that fee would fund. City of Springfield Council Work Session Minutes May 21,2007 Page 3 Councilor Pishioneri said it seemed that each year the Fourth of July sales had increased the number of banners, balloons, and signs advertising their business. He said if they wanted to do that type of advertising, they needed the right kind of permits. CouncilorWoodrow said it seemed that $35 for renewal ofa Liquor License was very low. He also noted that $75 for the change was not consistent with $100 for the initial license. He asked ifthe Council would like to raise those so they were all three $100. Councilor Lundberg said she did not want to raise themall. She said the liquor license was only a small part of the license fees for a business. ' Councilor Woodrow said it would make sense that if a new form was filled out to make a change, the business should be charged the same $100. It seemed it would be the same amount of paperwork, so the City should charge the same. Councilor Ballew said she would like.to see what it did cost the City before charging any additional amounts. Councilor Pishioneri agreed. He would only want to consider changes if they were for cost recovery. Mayor Leiken asked staff what the Oregon Liquor Control Commission (OLCC) charged businesses. Councilor Lundberg said about $250 - $500. That information would be beneficial for Council to determine. Discussion was held regarding tobacco vending machines and if that fee was relevant. Councilor Ballew said planning and public works often reviewed their rates. She asked how often other rates got scrutinized. She would like to have some system in place where fees were reviewed each year to make sure they were appropriate. Councilor Ralston said there were a lot of questions and this was going to public hearing tonight. Councilor Ballew said she was in favor of approving the schedule, and adjustments could be made later after further research. Councilor Pishioneri asked if the City did public fingerprinting. No. He asked if the City could get a digital machine to offer that service for $25 per person. Chief Smith said they hadn't provided that service because of staffing. Most people that needed fingerprinting went to Lane County. Councilor Pishioneri said it could be something to consider as a possible revenue source. He listed all of those that went to the County for that service. He noted the cost of the machine. Mayor Leiken suggested monitoring the services the County was considering cutting that the City could provide. City of Springfield Council Work Session Minutes May 21,2007 Page 4 Chief Smith said they would look into that possibility. 2. Thurston Fire Station #1. Project Manager Carole Knapel, Finance Director Bob Duey and Fire Chief Dennis Murphy presented the staff report on this item. On April 2, 2007, the Council received a report from staff regarding Thurston Fire Station #1. At that time staff was directed to return to Council with a proposal to move forward with the replacement of the existing facility. The timing for the immediate need to construct a replacement fire station results in limited options for financing. Attachment A describes two options for seeking financing from a commercial bank. Option 1 would use this method to provide for the entire cost. Option 2 would limit the amount of financing by supplementing the cost with existing City resources. The design and construction for Thurston Fire Station #1 must proceed as expeditiously as possible. To facilitate an accelerated schedule, the project team recommends that a .5 FTE Assistant Project Manager be added within Public Works. This position would be responsible for coordinating and managing all design and construction on the project. The position would also assist in the completion of the Fire Station #3 remodel project. The position would be of limited duration, lasting until the completion of construction of Fire Station # 1; Funding for the position will be included as a component of the construction financing package as described in Option 1 and 2 in Attachment A. In order to move forward with the replacement of Thurston Fire Station #1, staff developed a Request for Proposals (RFP) for Architectural Services. The RFP was electronically transmitted to more than 175 firms and was advertised in accordance with City procedures. Seven proposals were received through this solicitation. A Selection Committee was formed to include representatives from Fire and Life Safety, Public Works, Development Services and the City Manager's Office. The written proposals were reviewed and the Committee interviewed Paul L Bentley, Architect, Berry Architects, Pivot Architecture and SS&W Inc. Engineers. Of the four firms, the Committee gave two firms the highest ranking. After extended discussions of the firms' qualifications and experience, staff recommends that the Council authorize negotiations with Paul L. Bentley Architect. This recommendation is based on several factors. Although fees are not the sole basis for selection of a professional consultant, the hourly rates for this firm are the lowest. This firm successfully completed the design of Fire Station #5 and it is most familiar with both the existing site and Fire and Life Safety operations and management. Because of these factors, staff believes that this firm can proceed with the design on the most accelerated schedule. Councilor Pishioneri referred to the chart on Attachment A, page 2 of 2 in the agenda packet and asked about the savings shown for a bank loan amount of $1,250,000 versus $2,000,000. Mr. Dueysaid the bank used in the example used the declining balance method so the savings changed. When getting the final quotes, several options would be considered to save the most money. City of Springfield Council Work Session Minutes' May 21, 2007 Page 5 Councilor Pishioneri asked if it would be worth depleting the reserves in the long run in order to take out a lesser loan. Mr. Duey said either option had advantages and disadvantages. Councilor Pishioneri said he had inquiries from people in the Thurston area that were concerned about the design of the structure. He would like some type of citizen involvement or committee involved. Ms. Knapel said that could be done. In addition to the design process, staff would go through a site plan review allowing additional public input. Councilor Ballew said reserves were held for this type of need, so she had no problem spending reserves. She liked the combination of using some reserves and getting a loan forthe remainder. Councilor Ralston said the real question was how much interest the money would make if it were kept in reserves and left to gain interest. He would prefer not to spend reserves if it made sense. Mayor Leiken asked about the fire, station and what type of appreciation that asset had over the course of time. That needed to be weighed in to the equation. Mr. Grimaldi said the real appreciation would be more for the land. The building would be umque. Mayor Leiken asked about the increase in value of the Gateway Fire Station. He would like an idea from an appraiser. Mr. Duey said the City didn't book current value for the fire stations. Mayor Leiken said if it was a private venture, he would take Option 1 and save reserves. Discussion was held regarding maintaining the reserves or using part' of them on this project. Mr. Duey referred to other funds: Booth Kelly had the ability to grow; Bancroft was decreasing; and the General Fund was staying the same. Mr. Duey said consideration should be taken regarding the funds that would be used to make the payments on the loan. At this point, General Fund property tax dollars would be used. Mayor Leiken suggested a combination of Option 1 and 2, using some reserves to reduce our debt burden. Mr. Duey said the principal amount had not yet been determined. As more detailed figures came forward, staff would determine how much to borrow and how much to use. He would time the Request for Qualification (RFQ) to go out close to the time of awarding the contract so the dollar amount was locked down. Prior to submitting the RFQ, Mr. Duey would meet with various banks to see which ones may be interested in bidding on this loan. City of Springfield Council Work Session Minutes May 21, 2007 Page 6 Mayor Leiken said this had been a good discussion. Councilor Ballew made a good case about using reserves. He was concerned that the reserves were getting down too low, so he would suggest using less of the reserves than originally recommended.' It was not an expected expense, so it was fortunate reserves were available. Councilor Woodrow suggested using up to twenty-five percent of the cost from reserves and financing the rest. Councilor Ballew asked staff to bring back some options (twenty percent, thirty percent, etc.) when the figures were more accurate. Mr. Duey said the banks would tie the rate to the Federal rate, so it would change until the City locked in. Councilor Pishioneri said Council seemed comfortable using some reserves, so he suggested Mr. Duey use his judgment with Council limiting the percentage of reserves used. Discussion was held regarding the different rates available for this project. Councilor Ballew said she was concerned about adding additional staff for this proj ect. Mr. Grimaldi said existing employees could be used, but it would be difficult. Councilor Ballew said it was a special project, but there were a lot of priorities that had been moved to accommodate some of the other projects. She was confused as to why this position was needed. Mr. Grimaldi said he felt the additional staffing was needed due to the nature ofthe project. Hiring an extra staff person could help avoid mistakes. Mayor Leiken asked when staff would be able to come back with a solid figure. Ms. Knapel said as soon as the architect was on board, a program would be developed giving an initial cost estimate. Her intent would be to have a cost estimate and schematic design from the architect in about four or five months. She wasn't sure if Mr. Duey would get firmer figures from a contractor before going out to bid on a loan or if the architect's estimates would be used. Councilor Pishioneri asked if there were pre-existing fire station projects from other municipalities that could be used, such as plans that could be purchased to fit our needs. He asked if that would save time and money. ' Ms. Knapel said it was difficult to say. The site was different than any other site', so the structural design needed to be done unique to the site. If a pre-existing plan was used, there would still be time required to design the structural system. She discussed the shape of the site, access, roads arid driveways. All those factors could potentially require a number of changes to the plan that could, in affect, cost additional time. Staff felt that by recommending Paul Bentley, timing would be maximized because of his familiarity with the Springfield Fire Department and the requirement for Springfield's fire stations. City of Springfield Council Work Session Minutes May 21, 2007 Page 7 Councilor Pishioneri asked if any other plans had been looked at that might work. Ms. Knapel said they hadn't looked, but she could check with the architect. Departments operate differently so the design needed to best fit the functions of this department. Councilor Wylie thought using a pre-existing plan was good, but understood the uniqueness of the site. Co~cilor Ralston asked if the $2M estimate included the .5 FTE and the architect. Ms. Knapel said the early estimate included an estimate for architectural fees, but did not include any City costs to manage the project. The figure was not broken down into design fees. That would be included in the proposal from the architect. Mr. Duey said the figures weren't intended to include specifics. Councilor Ralston said the architect would know where to go to find plans with his experience. If that could save the City a substantial amount of money, he would like to go that way. Councilor Ballew assumed the .5 FTE position would be about $100,000 full time. Ms. Knapel said the position was about $90,000 full time, so would be about $45,000 halftime. Councilor Ballew asked how long this person would be needed. Ms. Knapel said no more than two years at half time. Councilor Wylie asked how soon they would need to hire this position. Ms. Knapel said as soon as possible in order to move forward quickly once the architect was hired. Councilor Wylie asked if they had any candidates for this position. Ms. Knapel said notice of position had been posted on the City website contingent on Council approval. She said they would be looking for someone with experience managing a construction project. Councilor Pishioneri asked if this person would be eligible for full benefits. Ms. Knapel said they would qualify for part time benefits. Councilor Pishioneri asked what would happen to this person at end of project. Ms. Knapel said the position was advertised for limited duration and was tied to the project. It was being made clear that the position would be eliminated after the proj ect was completed. If City of Springfield Council Work Session Minutes May 21,2007 Page 8 another position was open when the project ended, that person could apply for the new position, but there was no intention to absorb this position into staff. Councilor Pishioneri asked if there would be enough to keep this person busy. Yes. He reiterated that he felt there should be some effort to look into previous plans that could work. He would like staff to find the most expeditious and cost effective process. Mayor Leiken reminded Council that they could encourage staff to look at all options, but as policy makers they needed to be careful. They needed to rely on the best judgment of the staff. Ms. Knapel had a strong background in this type of project. Citizens could contact Ms. Knapel with questions. Mr. Grimaldi said this would come to Council during tonight's regular session for direction. Councilor Ballew asked how much City staff would be involved in this project. Chief Murphy said he didn't plan on spending overtime, but would have staff involved in the design process. ADJOURNMENT The meeting was adjourned at 7:02 pm. Minutes Recorder - Amy Sowa ~~ ~4a~~~~h~~~R- Christ' ~~Y6~ Council Presi e Lundberg Attest: Am~-bwl-- City Recorder