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HomeMy WebLinkAbout10794RESOLUTION NO. 10794 A RESOLUTION AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE AND DELIVER AN APPLICATION TO THE DEPARTMENT OF LOCAL AFFAIRS FOR STATE ENERGY AND MINERAL IMPACT ASSISTANCE PROGRAM FUNDS FOR THE CONSTRUCTION OF THE PUEBLO MUNICIPAL COMPLEX/COMMUNITY DEVELOPMENT AND PUBLIC WORKS BUILDING BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: The President of the City Council is hereby authorized to execute and deliver the attached application requesting State Energy and Mineral Impact Assistance Funds in the name of the City, to the Department of Local Affairs to fund the construction of the Pueblo Municipal Complex /Community Development and Public Works Building. BY Jeff Chostner Councilperson APPROVED: a President of City Council ATTESTED BY: CITY CLERK INTRODUCED August 14, 2006 nL E Background Paper for Proposed RESOLUTION AGENDA ITEM # DATE: AUGUST 14, 2006 DEPARTMENT: COMMUNITY DEVELOPMENT /JIM MUNCH PLANNING DEPARTMENT /JIM MUNCH TITLE A RESOLUTION AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE AND DELIVER AN APPLICATION TO THE DEPARTMENT OF LOCAL AFFAIRS FOR STATE ENERGY AND MINERAL IMPACT ASSISTANCE PROGRAM FUNDS FOR THE CONSTRUCTION OF THE PUEBLO MUNICIPAL COMPLEX/COMMUNITY DEVELOPMENT AND PUBLIC WORKS BUILDING ISSUE Should the City Council submit an Energy and Mineral Impact Assistance Fund application to the Department of Local Affairs requesting $500,000 in financial assistance to fund construction of the Pueblo Municipal Complex/Community Development and Public Works Building? Approve the Resolution. BACKGROUND To eliminate site restrictions, which will result in a more efficient utilization of the site for the design and construction of the new Police and Municipal Court building, the City will remove the building currently occupied by the Planning, Land Use and Public Works Departments, and the trailer occupied by the Sanitary Sewer and Stormwater Enterprises. The preferred location for the new Community Development and Public Works facility is across "D" Street to the north of the existing facility on Main Street between "D" Street and vacated "E" Street and adjoining the new parking facility, please see attached graphic. This building is envisioned to be approximately 20,000 sq. ft. and will house the Departments of Planning and Land Use Administration and the Bureau of Public Works and its associated operations including the Sanitary Sewer and Stormwater Enterprises. The estimated cost of this building is approximately $6.0 million. The City is requesting $500,000 from the Department of Local Affairs. This building is a component of the Municipal Service Complex. FINANCIAL IMPACT The estimated cost of the facility is approximately $6.0 million. It is anticipated that the facility will be funded using Certificates of Participation. The annual payment for these Certificates will come from the general fund, from rent payments by the Sanitary Sewer and Stormwater Enterprise funds and Urban Transportation Planning. The annual payment from the general fund will be a portion of the approximately $1.3 million debt service payment which will become available with the retirement of the debt. It is anticipated there will not be a net increase in the cost of operation. $6,008,000 Total Project Cost - 500,000 DOLA Grant - 280.000 CDOT Enhancement (Requires 20% match) 5,228,000 522,800 Annual Estimated Debt Service Payment (10 %) - 66.000 Annual Payment from Stormwater Utility, Wastewater Utility, Urban Transportation Planning based on 5,500 sq. ft. x $12.00 sq ft. $456,800 Estimated Annual Payment from General Fund Rev. 11/04 STATE OF COLORADO # (For Use by State) Department of Local Affairs ENERGY AND MINERAL IMPACT ASSISTANCE PROGRAM APPLICATION Public Facilities/Public Services /Community Development Projects (Refer to back page for application filing information) A. GENERAL AND SUMMARY INFORMATION 1. Namelritle of Proposed Project: Municipal Complex – Community Development and Public Works Building 2. Applicant: City of Pueblo (In the case of a mufti- jurisdictional application, name of the "lead" municipality, county, special districts or other political subdivision). In the case of a multi - jurisdictional application, names of other directly participating political subdivisions: If applying on behalf of a non - profit corporation, the eligible local government must assume responsibility for the administration of any funds awarded. Name of the non - profit corporation: 3. Chief Elected Official (In the case of a multi- jurisdictional application, chief elected official of the "lead" political subdivision): Name: Michael Occhiato Title: President of City Council Mailing Address: 1 City Hall Place, Pueblo. CO 81003 Phone: (719) 553 -2655 E -mail Address: mocchiato[D Pueblo. us Fax: (719) 553 -2698 4. Designated Contact Person for the Application: Name: Steven Meier Title: Senior Planner Mailing Address: 211 East "D" Street. Pueblo, CO 81003 Phone: (719) 553 -2259 E -mail Address: smeier(ccDpueblo.us Fax: (719) 553 -2359 5. Amount requested: $500.000 Does the applicant jurisdiction have the ability to receive and spend state grant funds under TABOR spending limitations? Yes X No If no, please explain. M 7. a. Local priority as assigned by county -wide impact team (if applicable), or if more than one application from the same local government (e.g., 1 of 2, 2of 4, etc.). 1 of 1 Page 1 of 6 Pages Brief Description of Proposed Project (loo word, or leas): The City of Pueblo has identified as a critical infrastructure need the replacement of a number of its aging public facilities. To achieve the need. the City has placed itself in a position where it will be able to make a significant investment in its building infrastructure. This investment will B. DEMOGRAPHIC AND FINANCIAL INFORMATION 1. Population a. What was the 2000 population of the applicant jurisdiction? City: 102.121 County: 123,051 b. What is the current estimated population for the applicant jurisdiction? City: 104,031 County: 149,728 (Currentimost recent lottery distribution estimate is acceptable.) What is the source of the estimate? Colorado Economic & Demographic Information System ( CEDIS), 2004 c. What is the population projection for the applicant in 5 years? City: 109.000 County: 166.131 (2010) What is the source of the projection? City of Pueblo Planning Deot./ CEDIS (2004) 2. Financial Information (Provide for all municipalities, counties, and political subdivisions directly participating in the application and for any entity on whose behalf the application is being submitted. Attach additional sheets if necessary). Entity Name ❑ ❑ a. Assessed Valuation (Year 2005) $584,501,517 b. Mill Levy /Annual Revenue 15.441/$9,071,732 c. Sales Tax Rate ( %) /Annual Revenue 3.51$48,099,175 d. Long -Term Finance Obligation, by Type /Amount (See attached) e. Annual Budget (relevant fund) Fund❑ General Year 2006 Total Amount $65,840,711 Fund Cash Balance (as of 1111 $17,932,444 f. Water❑ (water projects only) Tap Fee $2,533 Avg. Monthly User Charges[] $26.31 Number of Taps Served by Applicant 38,756 Fund Cash Balance (as of 1/1/ $16,887,000 g. Sewer[] (sewer projects only) Tap Fee $1,150 Avg. Monthly User Charges❑ $11.96 Number of Taps Served by Applicant 34,820 Fund Cash Balance (as of 12/31/05 $7,516.15 ❑ For fund most relevant to application (e.g., General Fund, Sewer Fund, etc.). ❑ Use only in the case of multi jurisdictional or on- behalf -of applications to provide the requested information for other directly participating entities. O Not required if not relevant to application. V Divide sum of monthly residential revenues by number of residential taps served. Page 2 of 6 Pages C. PROJECT BUDGET & FUNDING SOURCES PROJECT EXPENDITURES PROJECT REVENUES Project Budget Line Items: Total Impact Other Funds Requested or Committed (Examples: architect, engineering, Cost Assistance equipment, construction etc.) Amount Source Unit Cost Status* Building Construction 3,900,000 500,000 3,400,000 Gen Fund Committed (20,000 sq. ft. @ $195 sq. ft.) (COPS) Site Improvements 250,000 250,000 CDOT Application to Enhancement be submitted Construction Contingency 830,000 830,000 Gen Fund Committed (COPS) Land Acquisition /Demolition 220,000 220,000 Gen Fund Committed Testing & Environmental Mitigation 50,000 50,000 Gen Fund Committed (COPS) Building Architect & Engineer 468,000 468,000 Gen Fund Committed (COPS) Site Architect & Engineer 30,000 30,000 CDOT Application to be submitted Enhancement Fees 40,000 40,000 Gen Fund Committed (COPS) Subdivision &Survey 25,000 25,000 Gen Fund Committed (COPS) FF & E 195,000 195,000 Gen Fund Committed (COPS) TOTAL 6,008,000 500,000 5,508,000 `e.g., committed, in application stage, etc. D. RELATIONSHIP TO ENERGY /MINERAL IMPACT. The statutory purpose to the Energy and Mineral Impact Assistance program is to provide financial assistance to "political subdivisions socially or economically impacted by the development processina or enemy conversion of minerals and mineral fuels This section of the application is intended to provide an opportunity for the applicant to describe its energy /mineral impacts, both direct and indirect, and the relationship of application to those impacts. 1. Explain how this project is directly or indirectly related to energy /mineral impacts, including whether ft mitigates any adverse impacts. The City of Pueblo has historically been both directly and indirectly impacted by the fluctuation in the steel industry, railroad industry and recently the energy industry with the construction of the 750 mega -watt expansion at the Comanche generating plant. The City will invest a portion of the money derived from the recent up turn in these industries to construct these new facilities within a Municipal Service Complex. This will allow the City to provide improved services at the most efficient cost to the citizen and place the City in a better position to handle future economic fluctuations in these industries. Page 3 of 6 Pages 2. a. What direct energy /mineral impacts are being experienced by the applicant? Examples of direct impacts include: road /bridge /culvert damage, fire protection/emergency medical services, dust suppression, sound /visual mitigation, weed control, economic boom/busts and other direct physical, social or economic impacts. The direct energy /mineral impacts experienced by the City are those related to the economic boom and bust cycle which resulted in associated social and economic impacts. The City is still suffering from the economic bust of the 1980s and 1990s as many of the steelworkers, who were laid off, lost their pension funds, and found subsequent employment with little or no retirement benefits, are now retiring. A recent study found the City has a population of 100,000, but the purchasing power of a community of 60,000. b. What types and amounts of local funds and resources are being used by the applicant to address direct energy /mineral impacts? Examples of funds and resources include: road and bridge funds, Highway User Trust Fund allocations, industry assessments or contributions, sales or property taxes, staff time, etc. Pueblo has a 0.5 -cent sales tax, which is used to attract primary jobs, and we use numerous funding sources to create affordable housing and community amenities. 3. List energy /mineral activities (past, present and future) affecting the applicant. Be as specific as possible by listing company names, locations, production levels, employment levels, etc. Include not only production projects (e.g., oil, gas, carbon dioxide, coal, molybdenum, gold, etc.), but also processing, transmission (e.g., oil /gas pipelines, electric transmission lines, etc.), transportation (e.g., roads, rail lines, etc.) and energy conversion facilities (e.g., coal and gas -fired electric generating facilities). Following the 1997 steelworkers' strike, RMS reduced its workforce by 300 for seven years. The company has reduced its product line diversity, reopened the seamless tube mill and has recently been hiring again, with a focus on highly trained workers. Abandonment of rail lines located E/W through Pueblo as a result of the UP/SP rail merger resuted in a loss of approximately 139 workers and shipment of ENV coal through Pueblo. The expansion of Xcel's Comanche coal -fired generating facility is resulting in an additional 1000 construction jobs over a 4 -year period and an additional 30-40 permanent jobs created to operate the facility. Please see attached "Related Employment" data. 4. Are energy /mineral companies that impact the applicant jurisdiction aware of and supportive of this request? Yes No X Attach supporting documentation when appropriate. They are not directly aware of this request. Xcel energy is aware of how the funds generated by their expansion will be expended. 1. Why is the project needed? What are the specific goals of the project? The City has numerous public facilities which are located throughout the community. The idea of the Municipal Service Complex is to bring related municipal facilities into one centralized location to both increase the operating efficiency of the departments and also to help create one stop centers for the convenience of the public. Through the efficiency gained, the City goal is to stabilize costs while improving service. The relocation of the Police and Municipal Court facility will also make additional land available for developments along the HARP channel. The shared use parking facility will provide 300 parking spaces for the Municipal Service Center, 297 parking spaces for a new employer along the HARP Channel and an additional 160 parking spaces for new private sector development. 2. How were the cost estimates arrived at? Have preliminary architectural /engineering studies been completed? What additional design work must still be completed? (Attach preliminary engineering reports, architectural drawings, cost estimates, detailed project budget.) Preliminary schematic architectural studies have been completed and the preliminary cost estimates were derived from these studies. The City will still will need to complete design development and prepare construction drawings. Page 4 of 6 Pages 3. a. Describe local commitment to the project, including local fees or regulations altered to ensure project success, local taxing efforts to address continuing development and maintenance needs, and local citizen support. Describe any in -kind contributions, by type and value, in support of this project. The City will fund the new Community Development and Public Works facility through the sale of Certificates of Participation. The source of annual payment will be the City's general fund, the City's Sewer and Stormwater Enterprise Funds and Urban Transportation Planning Division. Acquisition of additional property required for the project will be through the general fund. The parking structure adjoining the building will provide parking for the Municipal Service Center, the general public and for private sector development along the HARP Channel. b. Was the cash value of the in -kind contributions calculated into the Project Budget (C)? Yes _ No X 4. What other funding alternatives have been explored? General Obligation Bond Financing 5. Has the applicant jurisdiction been subject to any refund under TABOR or statutory tax limitations? Has the applicant sought voter approval to keep revenues above fiscal spending limits ?Yes _ No X If yes, please explain. When required, the City has sought voter approval to keep revenues above fiscal annual spending limits. Only once has the City not received voter approval. In 2003 a broad based citizen initiative to remove the City from TABOR spending limits failed. 6. If the applicant jurisdiction is classified as an enterprise under TABOR, will acceptance of a state grant affect this status? Yes _ No X Please explain. 7. If the project is funded, what on -going operational obligations will be incurred? What is the applicant's plan for addressing these additional costs? (Attach a detailed budget showing annual operating revenues and expenses, by amounts and sources.) The City will fund the ongoing operation of the facility through the general fund. It is anticipated the increased efficiency of a new structure will stabilize existing operating costs. 8. When do you expect the project to start? Spring 2007 When will it be completed? Spring 2008 9. Indicate below whether any of the proposed project activities: a. Will be undertaken in flood hazard areas. Yes No X List flood plain maps /studies reviewed in reaching this conclusion. Describe alternatives considered and mitigation proposed. b. Will affect historical, archeological or cultural resources, or be undertaken in geological hazard area? Yes _ No X Describe alternatives considered and mitigation proposed. c. Create or fail to address any other related public health or safety concerns? Yes _ No X Describe. Page 5 of 6 Pages ♦'.l tR' kf` kf-f M1- I�- tlRt1`htktkk/�MMMI'MfvkkbhlnFYe M' h' kAMfe* MYiRInF11nFM1tt+ tl lf,!! f( Nl f�R43fel fll fMt3 tl!'!t! �/ ftRtR4tR' i' kfr0' hfifF' h' M1tA' YtA#'k *A'1eR'k1n4kMIfeRMRltf,RM To the best of my knowledge and belief, the statements and data in this application are true and correct. Sig ature hief Elected Official Michael Occhiato Name (typed or printed) President of City Council Title August 14, 2006 Date Please submit one original and three copies to Sue Schneider Department of Local Affairs 222 South Sixth Street #409 Grand Junction, Colorado 81501 Also submit: ► 1 copy to the local Council of Governments or Regional Planning Commission ► 1 copy to the local county impact (prioritization) team (if applicable) Attachments List (check and submit if applicable; one set per application): ► Preliminary Engineering Reports ► Architectural Drawings ► Cost Estimates ► Detailed Budget ► Map showing location of the project Page 6 of 6 Pages