Councilmembers present: Dwight Thompson, Mayor pro tempore, Alan Kiest, Carolyn Armanini, Mary Jane Goss, Nate Herzog, Ed Sterner, Roger Olstad
Staff present: Douglas Jacobson, City Administrator; Michael Ruark, City Attorney; John Hawley, Finance Director; Susan Stine, City Clerk; Evelyn Jahed, Deputy City Clerk
Others present: Eight visitors
CALL TO ORDER
Mayor pro tempore Dwight Thompson called the special meeting to order at 7:33 p.m. Thompson announced that Mayor Hutchinson will not be at the meeting due to family responsibilities.
Thompson noted that the purpose of this special meeting is to consider Resolutions 600, 601 and 603A and 603B related to proposed ballot measures for park and open space bonds and a levy for operation of the interim city hall as a community center. No other issues will be discussed or action taken.
Thompson said that a redraft of Resolution 601 regarding a bond measure for parks and open space has been prepared by bond counsel Lee Voorhees in response to a proposal by Cmbr. Ed Sterner. This version with the footnote 50198647.03 has been distributed tonight, and Thompson requested that councilmembers take five minutes to read and review the Resolution 601 redraft.
Following review of the redrafted Resolution 601, Cmbr. Armanini moved to table indefinitely Resolution 600 regarding a bond measure to retain the interim city hall property for use as a community center and Resolution 603A and B regarding a levy for the maintenance and operation of the interim city hall property as a community center or for parks and open space generally.
Cmbr. Olstad seconded.
Sterner said he supports this motion. He stated that he had believed that the city was faced with a "now or never" situation regarding the future of the interim city hall property due to financing needed for the new city hall project. He said discussion with city staff and Mr. Voorhees has led him to understand that the city’s needs could be met by the bond measure as proposed in the redrafted Resolution 601. The city could retain the interim city hall property while the proposal regarding its use as a community center and the associated costs is studied more fully, and a bridge loan for the necessary construction funds would meet the financing needs for the new city hall project. He said he believes it makes sense to place a proposition regarding parks and open space on the ballot as represented in Resolution 601 as redrafted.
Armanini concurred with Cmbr. Sterner’s remarks on the motion to table Resolution 600. She said with respect to Resolutions 603 A and B, there was great interest on the part of many councilmembers that the bond be contingent upon passage of a levy for operation of the interim city hall as a community center. She said that several issues will have more clarity in the coming months, and that council should concentrate on Resolution 601.
Olstad said he concurred with the remarks made by his colleagues, and he noted that the issue of retention of the interim city hall property should not be allowed to drift indefinitely.
Cmbr. Goss said she is disappointed that the idea of tabling the resolutions regarding the interim city hall is coming at the same time as the proposal for a ballot measure for a parks and open space bond. She said she understands the reasoning and will agree with the tabling. Regarding borrowing from city funds voter approved park bond funds, she would like to see this happening only in the case of an emergency. (Council approved 9/14/00)
In response to questions from Thompson, Jacobson said the new city hall will be done by September/October 2001, and that funds will be needed for the project late in the first quarter 2001. He added that once work has started, construction financing will be needed and funds from the sale of the interim city hall property were anticipated to be used to complete the new city hall project.
In response to Thompson, Jacobson said the administration in conjunction with the Parks and Recreation Commission will develop a proposal for use of the interim city hall grounds and buildings for presentation to council by approximately March 31, 2001.
Jacobson said that he expects that outside expertise should be involved in the process of developing a proposal and that the administration will prepare a request for proposal in 60 days.
Thompson requested that the September 14, 2000 agenda include council consideration of a motion to direct the administration to provide a report in conjunction with the Parks and Recreation Commission on the interim city hall property by March 31, 2001 and to authorize advertising for a consultant by November 15. He said the council would provide further direction regarding expectations regarding this process during the discussion on September 14.
The motion to table Resolutions 600 and 603A and 603B carried unanimously.
Armanini moved to accept version 50198647.03 of Resolution 601 as the working document for council consideration.
Cmbr. Herzog seconded. The motion carried unanimously.
Lee Voorhees, municipal bond counsel with the firm of Foster Pepper & Shefelman, said he has been working with the city on the measure remaining on the agenda for this special meeting. He said that he learned on Monday, August 27, of a concept to increase the amount of the parks and open space bond requested for approval and to temporarily use a portion of the funds for an interfund loan to complete construction of the new city hall. He said Finance Director John Hawley had asked him to revise the resolution after he had received a detailed message from Cmbr. Sterner.
Voorhees noted that the proposed changes to Resolution 601 are blacklined in the version under consideration.
Voorhees said he has consulted with public finance experts in his firm, and he reviewed the importance of considering tax implications and of taking the necessary steps regarding this process.
In response to a question from Kiest, Voorhees discussed issues related to arbitrage and the three-year time limit for expenditure of bond funds. Kiest expressed concern regarding the time limitation for expenditure of the bond funds and noted the city’s experience with lengthy negotiations for property. Voorhees discussed options including the issuance of bonds totaling less than $3,500,000, or issuing bonds in series rather than at one time. Voorhees noted that he is fully confident that Mr. Bill Tonkin, a nationally recognized authority on issues related to bonds, will be a good resource for the council when he returns from sabbatical.
Voorhees cautioned the council from considering any use of the bond funds at the interim city hall site at this time.
In response to a question from Goss, Voorhees said that the three-year time limit would be in effect from the date that the bonds are paid for and delivered.
In response to a question from Olstad, Jacobson discussed various financing options for the new city hall project if the bond did not pass.
Voorhees discussed options available for construction loans, specifically interim construction financing.
In response to questions from Sterner, Voorhees discussed the proposed amendment regarding possible investment of the funds or use as an interfund loan.
In response to a question from Herzog, Voorhees discussed the language used regarding an emergency in the resolution.
Sterner moved to amend Resolution 601 as follows:
Page 3, lines 30-31: "to finance and acquire acquisition and development of parks and open space."
Olstad seconded.
Kiest stated that it sounds like the city will only acquire parks where in the past we have acquired open space and parks.
Armanini said she didn’t have a problem with the amendment because reference is made to open space in the next sentence.
After some discussion on the amendment, Voorhees suggested that the proposed amendment read as follows:
"to finance parks and open space." and acquire acquisition and development of parks and open space.parks and open space.
The maker and seconder accepted this as a friendly amendment.
Olstad noted that several members of the Parks and Recreation Commission are present this evening, and he would like to give them an opportunity to comment if council concurs.
The motion to amend carried with six votes (Armanini out of chambers).
Bob Simmons, 3815 NE 182nd Street, said the use of the words "parks and open space" is confusing and felt that all properties purchased would be parks. He felt that it should be a park bond and not an open space bond.
Goss asked for clarification on the use of parks and open space language, and Voorhees stated that this language is included in the state statutes and recommends using the words parks and open space. Armanini said this is a compelling reason for keeping "open space" in the bond language.
There being no objection, Resolution 601 was advanced to final action calendar as amended.
Sterner moved to adopt Resolution 601/Placing Parks and Open Space Bond on Ballot Parks and Open Space Acquisition and Development as amended.
Armanini seconded.
Herzog said he is happy with the proceedings and believes that this is the best compromise at this time. However, he believes that this resolution still needs some fine-tuning to get the cost down. He said he supports the concept of a bond measure for parks and open space, but he cannot support this resolution tonight.
The motion to adopt Resolution 601 as amended carried 6-1 (Aye Thompson, Kiest, Armanini, Goss, Olstad, Sterner; Nay Herzog).
Armanini complimented Cmbr. Sterner for developing a creative solution that has the support of the mayor and the majority of the council, and she thanked him for all of his work in this issue.
Thompson noted that Finance Director Hawley distributed rules and guidelines relating to preparation of voters’ pamphlet materials for council information.
Voorhees noted that the final form of Resolution 601 will have to be signed and filed with King County as soon as reasonably possible and no later than September 22nd.
ADJOURNMENT
There being no objection, the meeting was adjourned at 9:05 p.m.
Susan Stine, City Clerk
APPROVED:
Dwight Thompson, Mayor pro tempore
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