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HomeMy WebLinkAbout2010.08.09 Council Workshop Packet AGENDA PASCO CITY COUNCIL. Workshop Meeting 7:00 p.m. August 9,2010 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Tri-Cities Visitor & Convention Bureau Presentation. (NO WRITTF,N MATERIAL ON AGENDA) Presented by Kris Watkins, President & CEO, Tri-Cities Visitor & Convention Bureau. (b) Water Production Presentation. (NO WRITTEN MATERIAL ON AGENDA) Presented by Reuel Klempel, Plant Division Manger. (c) Lewis Street Overpass Design Concepts: 1. Agenda Report from Stan Strebel,Deputy City Manager dated July 30, 2010, 2. Lewis Street Overpass Concepts 1-4. 3. Slopes vs. Walls. (d) 3'd Avenue Improvement: 1. Agenda Report from Gary Crutchfield,City Manager dated July 29,2010. 2. Vicinity Map. 3. Map of Proposed Improvement Area. (e) Appointments to Regional I-Iotel/Motel Commission: 1. Agenda Report from Gary Crutchfield, City Manager dated August 6, 2010. 2. Letter from Tri-Cities Hotel and Lodging Association dated 7/21/10_ 3. Section 5,Interlocal Agreement for Tri-City Regional Tourism Promotion Area. (f) Golf Course Lease Amendment No.4: 1. Agenda Report from Gary Crutchfield,City Manager dated August 6,2010. 2. Proposed Lease Amendment. (g) Capital Improvement Plan: 1. Agenda Report from Gary Crutchfield,City Manager dated August 3, 2010. 2. Proposed Capital Improvement Plan 2011-2016 (Council packets only; copy available for review in the City Manager's office, Pasco Library or on the city's website at http,//ww« u%�sco-wa.Gov/ eneralinfo/financeaccountin ). 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT REMINDERS: 1. 12:00 p.m., Monday, August 9, Pasco Red Lion — Pasco Chamber of Commerce Membership Luncheon. ("24 Ways to Improve the Small Business Climate in Washington"; presented by Chris Cargill, Eastern Washington Policy Center Director. "Fostering Growth and Development of Young Professionals in the Tri-Cities'; presented by Kayla Pratt&Traci Severson-Jao.) 2. 10:00 a.m., Tuesday, August 10, Senior Center — Senior Citizens Advisory Committee Meeting. (COUNCILMEMBER TOM LARSEN, Rep.;BOB HOFFMANN, Alt.) 3. 7:00 p.m., Thursday, August 12, Transit Facility—Ben-Franklin Transit Board Meeting. (MAYOR MATT WATKINS,Rep,; COUNCILMEMBER MIKE GARRISON, Alt.) AGENDA REPORT FOR; City Council July 30, 2010 TO; Gary Crutchfie C't anager Workshop Mtg,: 8. 9/10 Regular Mtg.: 8/16/10 FROM: Stan Strebel, D Duty City Mana SUBJECT: Lewis Street Overpass Design Concepts 1. REFERENCE(S): 1 , Lewis Street Overpass Concepts 1-4 2, Slopes vs. Walls ll. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 8/9: Discussion 8/16: MOTION: I move to adopt (option ) with (walls/slopes) as the preferred design concept for the Lewis Street Overpass. 111. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) JUB Engineering is proceeding with design of the Lewis Street Overpass project with a target to complete final design submittal by May 30, 2011. JUB presented four alternative design concepts for Council discussion and consideration on July 26. Discussion also included the alternatives of using slopes or walls to retain the fill necessary for the structure. V. DISCUSSION: A) Council's direction on the preferred concept for the structure alignment, flow and support is requested to guide the consultant in completing design work. 4(c) • ,y A � $ AiIx '. ..s PIT t OR 82 ST . I LU o n —' � l•- Q u y{ OPT-1 { 7e ! •� sD �1F i � t �R r" N � SOON D 1 t m ! E • LEw1S S��_ _.. .. �� t5 ci �M1 y r, {• ; :•fir � � . r U OPT-2 _ �t v '� >• wr - INV F A Y6 amw a --_- - Jk ; ti ,a Ilia cs � � F ir go PIP —44 i OPT-3 717" �� fig Lo r z j Fes . Ll 4• ` 44 2 to w a � w eoe� �. � ,rr!� �• n 1 � j U ,0 � RtilNAtlla ` t ,, OPT-4 Walls vs Slopes i Ila AM LANDSCAPE CONCEPT 1 ,:bFt-- F LANDSCAPE CONCEPT 2 AGENDA REPORT TO: City Council July 29, 2010 FROM: Gary Crutchfie i ' Manager Workshop Mtg,: 8/9/10 SUBJECT: 3rd Avenue Im ovement I. REFERENCE(S): 1. Vicinity Map 2. Map of Proposed Improvement Area 11. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 8/9: Discussion III. FISCAL IMPACT: $15,000 (City Street Fund) IV. HISTORY AND FACTS BRIEF: A) In planning for the North 41h Avenue Corridor Improvement Project, the PUD has considered long-term changes for its operations facility, situated on the east side of 0 Avenue between the extension of Jan Street and 1-182 (sec map #2), Specifically, the PUD desires to close off its existing entrance on 0 Avenue in favor of a new route from 3`d Avenue at the south end of the site, That route (extending from 4`k' Avenue on Pearl Street then north to the south line of the PUD facility) is presently an unimproved right-of-way. The estimated cost of improving the designated route, in accordance with typical city-street standards, would approximate $65,000 (excluding curb and gutter). B) With the increase in cost of oil and its effect on the cost of asphalt, combined with the constrained revenues of cities and counties, some cities have begun to use "chip seal" roadway improvements in lieu of the asphalt standard. The estimated cost differential is substantial, as the cost for improving the designated route as a chip seal would approximate $15,000 (representing a savings of about $50,000), V. DISCUSSION: A) The proposed project route requires adequate improvement to function as a public street. The cost of asphalt makes it problematic for either the PUD or the city to ,justify, as the adjacent properties are already being used or are unlikely to develop in a fashion that would use the street; thus, there is little probability of recovering any investment in the street improvement. B) Given the localized need for the street improvement (not an arterial function), this project offers an opportunity to see how a chip seal improvement will perform. The result will be beneficial information to determine if using the chip seal option may be a good one for other areas of the city. C) The new route for the PUD operations yard access will improve the North 4`h Avenue corridor enhancement project, The PUD; in exchange for the city's commitment to improve the new route (as a chip seal project), will commit to undergounding the remaining section of overhead power lines in that immediate vicinity. Such an improvement will substantially enhance the effect of the 0' Avenue corridor project (as urged by the new Corridors plan) and will represent a mutually-beneficial partnership (one that results in impacts that benefit both the public in general and the agencies in particular), D) Staff requests Council authorize the $15,000 chip seal of the "Pearl, 3rd and Jan" route as a demonstration project. 4(d) ROAD 4 4 - I l � f - x 2dTH AVE O H kp rA 513 - -t VE � M D' / ND-VIM i:4 Mini in N. 4TH AVE IQ , ...: N. 3RD AVE r 11 77 u � 4 r ' 1 i AGENDA REPORT l'O: City Counci August 6, 2010 FRONT: Gary Crutch - 1 v Manager Workshop Mtg.: 8/9/10 Regular Mtg.: 8/16/10 SUBJECT: Appointments o Regional Hotel/Motel Commission I. REFERENCE(S): 1. Letter from Tri-Cities Hotel and Lodging Association dated 7/21/10 2. Section 5, Interlocal Agreement for Tri-City Regional Tourism Promotion Area II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 8/9: Discussion 8/16: MOTION: 1 move to appoint Vijay Patel (Holiday Inn Express) to a two-year term on the Tri-Cities Regional Hotel/Motel Commission; term to expire 8/31/12. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: A) Pasco, along with the cities of Kennewick and Richland, entered into an interlocal agreement in June 2004 to create a regional "Tourism Promotion Area" (TPA). The TPA is an organization formed as authorized by state law to levy special assessments for the use of lodging facilities within the respective area. In the case of the Tri- Cities, all hotels/motels within the boundaries of the three cities are required to collect from users of their facilities the fee of$1.50 for each room night used. That fee is remitted by each of the hotels/motels to the state; the state, in turn, distributes the funding back to the respective cities within which it was collected (much like the long-standing 2% hotel/motel tax) and the cities distribute it to the TPA for expenditure in accordance with the business plan and budget established by the Regional Hotel/Motel Commission. B) The Regional Hotel/Motel Commission is established under Section 5 of the Interlocal Agreement. The Commission consists of six voting members; two appointed by each of the three cities from nominees offered by the Tri-City Hotel Lodging Association. Any vacancy is to be tilled by the respective city from a list of nominees offered by the Association. C) The Tri-Cities Hotel Lodging Association recommends, as evidenced by the July 21 letter, that Vijay Patel (manager of the Holiday Inn Express) be appointed. V. DISCUSSION: A) Mayor Watkins recommends that City Council appoint Mr. Patel as recommended by the Tri-Cities Hotel Lodging Association, without interview. 4(e) Trli-Gilles Jr a l (CC)C'I?'r'H'AL.L JUIL 2 6 ?040 CITY MANAOEWS - OFFICE NIMMONNON P.O. Box 1739 Richland,WA 99352 July 21, 2010 Mr. Gary Crutchfield Third Floor 525 N. Third Ave Pasco, WA 99301 Dear Mr. Crutchfield: This letter is in reference to the Pasco TPA Commissioner position, currently held by Monica Ham erberg from the Red Lion Hotel in Pasco. Ms. Hammerberg term expires J&tq 31, 2010 and she is not eligible for re-election. w The Tri-Cities H tel & Lodging Association has nominated Vijay Patel from the Holiday Inn Express to serve a two year term. General Manager Amy Riner from the Holiday Inn Express & Suites in Pasco was nominated as the alternate candidate. If you have any questions regarding this issue, please do not hesitate to contact me at 509-942-9400. Si A_6rel t y �r�er Preside Tri-Cities Hotel & Lodging Association Cc Kris Watkins—President CEO Td-Cities Visitors&Convention Bureau 5. Creation of Tri-City Regional Hotel-Motel Commission. A. It is understood and agreed that it is hereby created, pursuant to RCW 35.101.130 (1), the Tri-City Regional Hotel and Motel Commission ("Commission") to advise the Cities on the expenditure of Special Lodging Assessment revenues to fund tourism promotion within the Tri-City region. B. The Commission shall consist of six (6) voting Members and three (3) ex officio Members. Two voting members shall be selected by the Kennewick City Council from a list of nominees prepared by the Tri-City Hotel and Lodging Association from Operators of Lodging Businesses within the city limits of the City of Kennewick. Two (2) voting members shall be selected by the Pasco City Council from a list of nominees prepared by the Tri-City Hotel and Lodging Association from Operators of Lodging Businesses within the city limits of the City of Pasco. Two voting members shall be selected by the Richland City Council from a list of nominees prepared by the Tri-City Hotel and Lodging Association from Operators of Lodging Businesses within the city limits of the City of Richland. In no event shall fifty percent (50%) or more of the voting membership of the Commission be selected from the same Lodging Ownership or Management Company within the Tri-City Regional Area. The City Manager or his or her Designee from each of the three Cities shall serve as an ex officio member. All Commission members, voting and ex officio may participate in all discussions regarding proposed activities and programs by the Tri-City Regional Tourism Promotion Area for promotion and marketing of tourism. Ex officio members shall not have voting rights, except in the event of a tie vote among the voting members at which time, each ex officio member may cast a vote to break the tie. Any vacancy on the Tri-City Regional Hotel and Motel Commission shall be filled by the appointing City, from a list of nominees prepared by the Tri-City Hotel and Lodging Association for voting memberships within thirty (30) days from the date the vacancy occurs. C. It is understood and agreed that the initial voting members of the Commission shall serve staggered terms, with one member serving a one-year term and the second member serving a two-year term. The length of the term for each individual voting member of the initial Commission shall be chosen by lot at the first meeting of the Commission. Thereafter, all voting members subsequently appointed to the Commission shall serve a term of two years. No voting member shall serve more than two consecutive terms as a Member of the Commission unless such subsequent term is separated by at least twelve (12) months from the last date of service as a Member of the Commission. A Member may be removed from the Commission by three- fourths (3/4)1affirmative vote of the Commission for actions deemed to be adverse to the interest of the Commission. Such actions may include unexcused absences from three meetings of the Commission within a twelve (12) month period; failure to perform assigned duties and responsibilities; and conduct detrimental to the best interests of the Commission. Succeeding and replacement voting members shall be selected by each City as provided above for the selection of the initial voting members of the Commission. AGENDA REPORT TO: City Council August 6,2010 FROM: Gary Crutchfi 1 Regular Manager Workshop Mtg.: 8/9/10 Mtg,: 8/16/10 SUBJECT: Golf Course L ase Amendment No. 4 I. REFERENCE(S): I. Proposed Lease Amendment 11. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 8/9: Discussion 8/16: MOTION: I move to approve Amendment No. 4 to the Golf Course Lease Agreement and, further, authorize the Mayor to sign the Amendment. III. FISCAL IMPACT: $45,000 increase in City revenue for 2011; growth of at least $5;000 per year each year thereafter. IV. HISTORY AND FACTS BRIEF: A) The city entered into a 10-year lease Agreement with iRl Sun Willows Associates, 11C, beginning in 2001. The 10-year lease agreement specified rcpt and other concession payments due to the city for the privilege of operating the golf course "for profit," The 10-year lease included a provision whereby the lessee could elect to extend the lease for an additional five years, subject to mutual agreement on rent for the additional five-year period. 13) Staff and 1RI have discussed over the past four months an appropriate adjustment for the income to the city from the course over the additional five years (expiring at the end of 2015). The proposed amendment reflects the tentative agreement of the lessee. V. DISCUSSION: A) The proposed amendment increases the base rent and concession payments by 20%. The annual threshold is increased by $30,000 (to $180,000) and the concession payment is increased by $15,000 (to $90,000). Each year thereafter, an additional 2% is added to the two thresholds (representing a combined increase annually of at least $5,400), The effect of the changes is to bring the annual rent payments to the city in line with the payments initially received at the beginning of the lease, after adjusting for inflation. B) The increased rent obligation on the part of the lessee will add pressure to increase golf course fees. Given the existing lease provisions, the "green fees" (those charged for daily play) can be increased by the lessee; those are limited so as not to exceed the average of the same fee experienced at Canyon Lakes and Columbia Point golf courses. Season ticket fees may also increase, but Pasco, residents receive a 15% discount; thus, Pasco residents would pay no more than 85% of the average of the other two courses. C) Given the public investment in the construction and renovation of the course, the public (via the city) should receive market value for the operation of the course. The proposed amendment will better accomplish that, while maintaining the discount for Pasco season ticket holders. 4(f) AMENDMENT NO. 4 GOLF COURSE LEASE AGREEMENT THIS FOURTH AMENDMENT is entered into this _ day of August, 2010, by and between the CITY OF PASCO, a Washington municipal corporation, hereinafter referred to as "City", and IRI SUN WILLOWS ASSOCIATES, LLC, a Delaware limited liability company, hereinafter referred to as "Lessee". WHEREAS, the City and the Lessee entered into a Golf Course Lease Agreement on the 27th day of December, 2000 for the lease of real property owned by the City for the exclusive use as a golf course; and WHEREAS, the City and the Lessee have entered into three (3) prior Amendments to the Golf Course Lease which to the extent not inconsistent herewith, are continued in full force and effect; and WHEREAS, the parties have entered into a Supplemental Agreement dated January 8, 2010 as to additional terms which supplement or modify the Golf Course Lease Agreement as amended which in addition, acknowledged and accepted Lessee's written notice of its intent to renew the Lease for a renewal term of five (5) years, and which terms are, to the extent not inconsistent with this Amendment and the Escrow Agreement entered into between the parties on the 81h day of January, 2010 are continued in full force and effect. NOW, THEREFORE, in consideration of the mutual covenants, contained herein and value, the parties agree to enter into this Fourth Amendment to the Golf Course Lease Agreement and those sections specifically identified below with deletions indicated by interlineations and additions by underlying as follows: Section 1 Annual Lease Pavment Section 2.2(a) "Golf'Course Annual Lease Payment" is hereby amended and shall read as follows: G) Lessee agrees to pay an annual lease payment (the "Annual Lease Payment") commencing as of January 1, 2011, in the amount of $180,000.00. Thereafter, commencing on January 1, 2012, the annual lease payment shall be increased by two percent (2%) each year during the renewal term of this Lease (by way of illustration, commencing January 1, 2012, the annual lease payment will be $183,600.00). (ii) Lessee agrees to pay the Annual Lease Payment in installments payable on or before the 5"' day of each calendar month during the renewal term of this Lease, commencing on January 1, 2012 according to the following schedule: Months Lease Payment January $ 0.00 February $ 8,000.00 March $18,000.00 April $35,000.00 May $35,000.00 June thru December $12,000.00 Each year thereafter, commencing on January 1, 2012, the monthly installment payment shall increase by two percent (2%) from the following year. By way of illustration, the monthly installment payments for 2012 shall be: Months(s) Lease Pa lment January $ 0.00 February $ 8,160.00 March $18,360.00 April $35,700.00 May $35,700.00 June thru December $12,240.00 with such increases applying to each year thereafter during the renewal term. Section 2 Section 2.2 (c) "Golf Concession Fee" is hereby amended and shall read as follows: (i) Lessee agrees to pay, for the right to offer golf related merchandise for sale, lessons and other golf related services, an annual concession fee commencing on January 1, 2011 in the amount of$90,000,00 (the "Annual Concession Fee"). Thereafter, commencing on January 1, 2012, the annual concession fee shall be increased by two percent (2%) each year during the renewal term of this Lease (by way of illustration, commencing January 1, 2012, the annual concession fee will be $91,800.00). (ii) Lessee shall pay the Annual Concession Fee during the renewal term, commencing January 1, 2011 on or before the 5"' day of each month of the renewal term according to the following schedule: Fourth Amendment to Goff Course Lease Agreement Page 2 Months Concession Fee January $ 0.00 February $ 3,000.00 March $ 8,000.00 April $15,000.00 May $15,000.00 June thru December $ 7,000.00 Each year thereafter, commencing on January 1, 2012, the monthly installment payment shall increase by two percent (2%) from the following year. By way of illustration, the monthly installment payments for 2012 shall be: Month(s) Concession Fee January $ 0.00 February $ 3,060.00 March $ 8,160.00 April $15,300.00 May $15,300.00 June thru December $ 7,140.00 with such increases applying to each year thereafter during the renewal term. Section 3 RemaininL- Terms All remaining terms of the Golf Course Lease Agreement as amended by Amendments Nos. 1 through 3, the Supplemental Agreement, and Escrow Agreement. of January 8, 2010 to the extent that they are not in conflict with any of the provisions of this Fourth Amendment, shall remain in full force and effect and fully enforceable by either party, DATED the day and year first written above. CITY OF PASCO Matt Watkins,Mayor Date ATTEST: APPROVED AS TO FORM: Debbie Clark, City Clerk Leland B. Kerr, City Attorney Fourth Amendment to Golf Course Lease Agreement Page 3 LESSEE: IRI SUN WILLOWS ASSOCIATES, LLC, a Delaware limited liability company Its Manager: BY: GOLF/MARK CORPORATION, a Delaware corporation, Its General Partner Jeffrey M. Silverstein, President Date Fourth Amendment to Golf'Course Lease Agreement Page 4 AGENDA REPORT TO: City Council August 3, 2010 FROM: Gary Crutchfi it 'Tanager Workshop Mtg.: 8/9/10 SUBJECT: Capital Improv ment Plan I. REFERENCE(S): I. Proposed Capital Improvement Plan 2011-2016 (Council packets only; copy available for review in the City Manager's office, Pasco Library or on the city's website at hLLV://ww�v.Pasco-wa.,ov/Gencrallnto/F'inancei cg, tir . II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 8/9: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS: A) The city spends several million dollars annually on a wide variety of capital expenditures necessary to deliver or improve municipal. services to its citizenry, Whose capital expenditures range from parks, streets and utilities to buildings, fire engines and computers. B) Some of the capital improvement projects require debt financing. Given the constraints on operating revenues, it is important to properly plan for additional debt service obligations. Development of a six-year Capital Improvement Plan, which identifies the various capital projects expected to be undertaken each year and the method of financing for each, is essential to effective financial planning for the city. It is also beneficial to the general public, which can reasonably anticipate when certain improvements are expected to occur. C) Development of the annual Capital Improvement Plan occurs as a prelude to the annual budget; the first year of the approved Capital Improvement Plan is then incorporated into the subsequent annual budget document. Thus, review and discussion of the Capital Improvement Plan should be carried out with the notion that the conclusions reached represent guidance to staff in developing next year's budget. V. DISCUSSION: A) Staff will be prepared to answer questions about any of the projects included in the proposed Capital Improvement Plan at the Workshop. It is recommended that Council gain a thorough understanding of the document through discussion at the Workshop. Staff expects Council to take formal action approving the Capital Improvement Plan in September so that it can be used to develop the 2011 fiscal year budget during September/October. 4(9)