Loading...
2. Kidsports Permanent EasementCITYOF k`F City of Kalispell OFFICE OF THE CITY MANAGER I TMaz MONTANA TO: Mayor Fisher and Kalispell City Council FROM: Doug Russell, City Manager SUBJECT: Funding mechanism alternatives for the Kidsports permanent easement MEETING DATE: December 10, 2012 Attached to this memo is a sample memorandum of understanding with Kidsports, a copy of the draft map for build -out improvements, and an estimate for the improvements to 4-Mile Drive. III 11101 As has been discussed at previous meetings, Kidsports, the City of Kalispell, and the State of Montana have negotiated the framework that would allow for the acquisition of a permanent easement for the ground which currently hosts the Kidsports facility. Kidsports (through the City of Kalispell) pays an annual lease (approximately $44,000) to the state for the use of the ground. In 2016, the lease payments will likely increase significantly when a new appraisal takes effect. At previous meetings, there has been consensus support for acquiring the permanent easement from the state. This would establish a permanency to the use of the land and remove the concern regarding escalating and unaffordable lease payments. Once the easement is acquired, the lease payments to the state cease. NOVEMBER 26' WORK SESSION DISCUSSION: The initial recommendation was to use Airport/Ballfield Redevelopment TIF funds to acquire the permanent easement. Discussion at the last work session further investigated this concept, along with additional options, including the potential of using a general obligation bond and a mixture of the two options. It was requested that this topic return at a work session for further discussion on these three alternatives. These alternatives are summarized below, understanding that these were the options most supported by the council at the work session. Modifications to these options, or the addition of a new concept, could certainly be brought forward at the work session. ALTERNATIVES: 1) Using TIF funds to fully acquire the permanent easement a. Pros i. Relocation of ballfields was identified in the Urban Renewal Plan ii. Funding is available to acquire the easement in totality iii. Kidsports would establish a new memorandum of understanding with the City in which they would intend to match the contribution dollar for dollar with private fundraising to build out the facility, including access and parking improvements www.kalispell.com b. Cons i. Concern expressed by members of the Urban Renewal Agency that this funding should be used in the south end of town ii. Concern that should a project emerge, including the airport upgrade project, the cash reserve would no longer be there and the project would need to be debt financed with future increment from the district iii. Objection by some that the relocation of the fields has already been accomplished 2) Use of a General Obligation Bond a. Pros i. Vote of the people would ratify support for the expenditure ii. Creates a revenue source versus using existing resources iii. Provides a mechanism to fund additional improvements, such as 4-Mile Drive b. Cons i. Could hinder fund raising efforts on the part of Kidsports (i.e., seeking donations from those who are contributing through the debt service may be difficult for Kidsports) ii. Bond elections create a degree of unknown and take time to establish iii. Using this mechanism creates the question of whether the City fulfilled its obligation under the Urban Renewal Plan to relocate the fields using resources of the district 3) Use of a mixture of TIF funding and GO bonds (e.g. the permanent easement could be split: $800,000 TIF, $1,400,000 GO) a. Pros and cons i. The pros and cons for this option essentially are the mix between the two options above, with the amount supplied through the TIF being based on identified cost centers within the Urban Renewal Plan 4) Other initiatives as defined by Council (loan, disbursement, etc.) RECOMMENDATION: It is recommended that council discuss the alternatives and provide staff direction for an action item at the December 171h meeting. Respectfully Submitted, Memorandum of Understanding between CITY OF KALISPELL A Montana Municipal Corporation and KIDSPORTS A Montana Charitable Corporation without Members 1. Purpose and Scope The purpose of this Memorandum of Understanding [MOU] is 1) to procure a permanent easement from the State of Montana Department of Natural Resources and Conservation [DNRC] for real property currently leased by the City of Kalispell [the City] and managed by Kidsports as a youth sports complex; and 2) to further develop a master plan for the completion of the facilities comprising the youth sports complex, including sports fields, parking, transportation and other amenities; and 3) to establish a financing/donation program in which the City and Kidsports cooperate in an effective public/private partnership to accomplish the completion of the master plan developed by the parties. 2. Recital of Facts A. The City entered into a special lease of state lands under MT State Agreement No. 3053189 on May 9, 1997 for the term of 40 years and for the purpose of leasing 138 acres located in the City of Kalispell in the SE1/4 of Section 36, an area bounded by Four Mile Drive, Highway 93 and West Reserve Drive. The sole purpose of the lease is for a youth athletic complex. B. The City entered into an Agreement with Kidsports on December 19, 1997 for the same term of the above described lease and for purpose of defining "the public - private partnership between Kalispell and Kidsports regarding the planning, development, financing, operation and maintenance" of the above -described property. C. The City and Kidsports have negotiated with DNRC for the City to exchange its lease rights in the above described property for a permanent easement, a property right opportunity that was not available when the lease was negotiated. The easement agreement is attached hereto as Exhibit "A" and delineates the new footprint for the athletic complex as well as the funding arrangement decided upon pertaining to the commercial development of property previously leased by the City. Page 1 of 5 3. MOU Term The term of this MOU Agreement is TWENTY (20) years commencing upon the execution of this Agreement. 4. Master Plan of Youth Athletic Complex The parties agree that existing master plan of the youth athletic complex will be amended to reflect the altered footprint of the facility. This master plan shall include full build out of athletic fields with all associated infrastructure, i.e. fencing, irrigation, storm water conveyance, sanitary sewer, electric, telephone and gas utilities, concession and storage facilities, restrooms and seating. It shall also include transportation infrastructure, i.e. parking and roadways, required to adequately serve the facility, both inside the facility as well as directly leading to the facility. The parties shall agree upon a reasonable timeline for accomplishing the various phases of the master plan. Representatives of the parties shall meet to draft the master plan which shall be considered and approved by the governing bodies of each party. 5. City Responsibilities The City shall undertake the following activities during the duration of the MOU term: a) The City, as owner of the permanent easement, shall pay the purchase price for the easement. b) The City shall undertake to maintain and repair: a. The athletic fields, including turf and landscaping b. Roads and parking areas c. Sewer, potable and irrigation water distribution systems d. All other ground cover (non -turf) e. Permanent fencing f. Trash collection g. Winterizing of water systems 6. Kidsports Responsibilities Kidsports shall undertake the following activities during the duration of the MOU term: a) Kidsports shall be the developer of the athletic complex and shall be responsible for the placement and construction of the infrastructure in accordance with the agreed upon master plan to include the fencing, irrigation, storm water conveyance, sanitary sewer, electric, telephone and gas utilities, concession and storage facilities, restrooms and seating. Page 2 of 5 b) Kidsports agrees that its development activities shall be consistent with the master plan and that it will maintain liability coverage covering those activities which names the City as an additional named insured. Kidsports shall ensure that user groups of the athletic complex will also maintain liability insurance for their athletic activities which also names the City as an additional named insured. Coverage amounts will not be less than $750,000 per occurrence or less than $1.5 million aggregate and shall be written on a "primary —noncontributory basis." Each coverage shall be obtained from an insurance company that is duly licensed and authorized to transact insurance business and write insurance within the state of Montana, with a minimum of "A.M. Best Rating" of A-, VI, as will protect the City and its officers, employees, agents, and representatives from claims for bodily injury and/or property damage which may arise from operations and completed operations under this Agreement. c) Kidsports shall have the primary responsibility for: a. Electric and telephone utilities b. Maintenance of concession stands and restrooms c. Metered water charges (not including irrigation) d. Game preparation of fields e. Temporary fencing f. Maintaining clean grounds d) Kidsports may assign or contract out to third parties any of the responsibilities in subparagraph c) above. 7. Funding The City shall provide the funding to accomplish the acquisition of the permanent easement. Kidsports shall maintain a capital campaign in an effort to complete the build out of the master planned athletic complex on the timeline established in the master plan. It is anticipated that the capital campaign will be greater than or equal to the amount contributed by the City for the permanent easement. 8. User Fees. Kidsports may establish fees to be paid to it by users (e.g. associations, tournament participants, individuals etc.), visitors (e.g. admission fees to events, etc.), advertisers (sponsors, fence ads, etc.), or others using or frequenting the complex. Funds raised by Kidsports pursuant to this paragraph may be used toward development and/or maintenance costs associated with Kidsports. The parties recognize that Kidsports and the user groups may engage in fund raising activities (e.g. those just mentioned, plus concession stand sales, etc.), and neither the fund raising activities and the subsequent use of those funds are subject to this agreement. Page 3 of 5 Kalispell may charge fees to persons or groups not charged fees by Kidsports. City of Kalispell fees on persons or groups charged fees by Kidsports will be implemented only by joint concurrence of Kalispell and Kidsports. It is anticipated that these fees will be utilized only for maintenance or improvements of the complex, and will not be eligible for recreation programs or any other facilities under the jurisdiction of Kalispell's Parks and Recreation Department. If a user or prospective user disagrees with fees established by Kalispell or Kidsports, representatives of Kalispell and Kidsports will confer and agree upon an appropriate fee. Nonpayment of a user fee may be grounds for denial of use of the complex. 9. Independent Contractor The parties agree and acknowledge that in the performance of this Agreement and the completion of its development responsibilities hereunder, Kidsports shall render services as an independent contractor and not as the agent, representative, subcontractor, or employee of the City. The parties further agree that all individuals and companies retained by Kidsports at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of the City. 10. No Third -Party Beneficiary This Agreement is for the exclusive benefit of the parties, does not constitute a third - party beneficiary agreement, and may not be relied upon or enforced by a third party. 11. Modification and Termination a) This agreement may be cancelled or terminated without cause by either party by giving (30) calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation and include any final performance and/or payment invoicing instructions/requirements. b) Any and all amendments must be made in writing and must be agreed to and executed by the parties before becoming effective. 12. Effective Date and Signature This MOU shall be effective upon the signature of the City and Kidsports authorized officials. It shall be in force from January 1, 2013 to December 31, 2033. The City and Kidsports indicate agreement with this MOU by their signatures. Page 4 of 5 Signatures and dates Authorized Signature of the City Authorized Signature of Kidsports Doug Russell, City Manager Date Date Page 5 of 5 2012 KYAC Master Plan'!rw;, ENGINEER'S PRELIMINARY ESTIMATE OF COST 4 MILE ROAD EXTENSION - RURAL NO. DESCRIPTION UNIT QUANTITY PRICE COST 1 MOBILIZATION LS 1 $79,000.00 $ 79,000.00 2 CLEARING AND GRUBBING ACRE 4 $ 6,763.70 $ 23,672.95 3 REMOVAL OF STRUCTURES AND OBSTRUCTIONS LS 1 $ 2,300.00 $ 2,300.00 4 REMOVAL OF FENCE LF 6,200 $ 0.40 $ 2,480.00 5 ASPHALT REMOVAL SY 300 $ 3.20 $ 960.00 6 UNCLASSIFIED EXCAVATION CY 15,000 $ 3.40 $ 51,000.00 7 HAUL CYMI 4,403 $ 1.70 $ 7,485.80 8 TOPSOIL STORING CY 4,600 $ 1.60 $ 7,360.00 9 TOPSOIL PLACING CY 4,600 $ 2.00 $ 9,200.00 10 TOPSOIL BORROW CY 1,000 $ 7.90 $ 7,900.00 11 SEEDING SY 17,500 $ 1.20 $ 21,000.00 12 EROSION CONTROL BLANKET SY 5,000 $ 2.10 $ 10,500.00 13 SUBBASE CY 5,200 $ 22.70 $ 118,040.00 14 CRUSHED BASE CY 3,500 $ 31.50 $ 110,250.00 15 PLANT MIX PAVEMENT TON 3,500 $ 75.00 $ 262,500.00 16 PLANT MIX PAVEMENT APPROACHES EA 3 $ 1,000.00 $ 3,000.00 17 RCP 30 IN FT 60 $ 101.00 $ 6,060.00 18 RCP FIE SECT 30 IN EA 2 $ 807.50 $ 1,615.00 19 FENCE TYPE B (WOOD POSTS) FT 6,200 $ 2.50 $ 15,500.00 20 IBRACE PANELS EA 20 $ 126.90 $ 2,538.00 21 INSTALL STREET LIGHT EA 16 $ 7,710.80 $ 123,372.80 22 SIGN POSTS, WOOD 4 X 6 IN EA 20 $ 11.40 $ 228.00 23 SIGN PANELS, ALUMINUM EA 20 $ 138.00 $ 2,760.00 24 DELINEATORS, TYPE I EA 124 $ 36.30 $ 4,501.20 25 TRAFFIC CONTROL LS 1 $10,000.00 $ 10,000.00 SUBTOTAL 1 $ 883,223.75 CONTINGENCIES (15% SUBTOTAL 1) $ 132,483.56 SUBTOTAL 2 $ 1,015,707.31 DESIGN ENGINEERING (10% SUBTOTAL 2) $ 101,570.73 CONSTRUCTION ENGINEERING (10% SUBTOTAL 2) $ 101,570.73 PROJECT TOTAL $ 1,218,848.77 ENGINEER'S PRELIMINARY ESTIMATE OF COST 4 MILE ROAD EXTENSION - URBAN NO. DESCRIPTION UNIT QUANTITY PRICE COST 1 MOBILIZATION LS 1 $107,000.00 $ 107,000.00 2 CLEARING AND GRUBBING ACRE 4 $ 6,763.70 $ 23,672.95 3 REMOVAL OF STRUCTURES AND OBSTRUCTIONS LS 1 $ 2,300.00 $ 2,300.00 4 REMOVAL OF FENCE FT 6,200 $ 0.40 $ 2,480.00 5 ASPHALT REMOVAL SY 300 $ 3.20 $ 960.00 6 UNCLASSIFIED EXCAVATION CY 25,000 $ 3.40 $ 85,000.00 7 HAUL CYMI 7,339 $ 1.70 $ 12,476.33 8 TOPSOIL STORING CY 4,600 $ 1.60 $ 7,360.00 9 TOPSOIL PLACING CY 4,600 $ 2.00 $ 9,200.00 10 ITOPSOIL BORROW CY 1,000 $ 7.90 $ 7,900.00 11 SEEDING SY 17,500 $ 1.20 $ 21,000.00 12 GRASS SOD SY 4,200 $ 18.80 $ 78,960.00 13 EROSION CONTROL BLANKET SY 5,000 $ 2.10 $ 10,500.00 14 SUBBASE CY 6,600 $ 22.70 $ 149,820.00 15 CRUSHED BASE CY 4,800 $ 31.50 $ 151,200.00 16 PLANT MIX PAVEMENT TON 4,500 $ 75.00 $ 337,500.00 17 PLANT MIX PAVEMENT APPROACHES EA 3 $ 1,000.00 $ 3,000.00 18 STORM INLET EA 4 $ 3,000.00 $ 12,000.00 19 RCP 30 IN FT 60 $ 101.00 $ 6,060.00 20 RCP 18 IN FT 60 $ 43.30 $ 2,598.00 21 RCP FE SECT 30 IN EA 2 $ 807.50 $ 1,615.00 22 FENCE TYPE B (WOOD POSTS) FT 6,200 $ 2.50 $ 15,500.00 23 BRACE PANELS EA 20 $ 126.90 $ 2,538.00 24 INSTALL STREET LIGHT EA 16 $ 7,710.80 $ 123,372.80 25 SIGN POSTS, WOOD 4 X 6 IN EA 20 $ 11.40 $ 228.00 26 ISIGN PANELS, ALUMINUM EA 20 $ 138.00 $ 2,760.00 27 ITRAFFIC CONTROL LS 1 1 $ 10,000.00 $ 10,000.00 SUBTOTAL 1 $ 1,187,001.08 CONTINGENCIES (15%SUBTOTAL 1) $ 178,050.16 SUBTOTAL 2 $ 1,365,051.24 DESIGN ENGINEERING (10% SUBTOTAL 2) $ 136,505.12 CONSTRUCTION ENGINEERING (10% SUBTOTAL 2)1 $ 136,505.12 PROJECTTOTAL $ 1,638,061.48