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02. Resolution 4547 - Resolution Placing Aquatic Facility Bonds on November BallotCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 REPORT TO: Honorable Mayor and City Council FROM: Michael Baker, Director of Parks & Recreation SUBJECT: City of Kalispell Leisure Aquatic Facility and Skate Park MEETING DATE: August 20, 2001 BACK GROUND: In June, 2000 the City of Kalispell retained Interstate Engineering to review the condition of the Bruckhauser Pool. The purpose of the review was to evaluate and comment on the present condition of the pool and to make recommendations for improvements, if any, and to describe available options. In general, the findings indicated a failure of the fiberglass shell forming the pool tank, aging components of the filtration and treatment system, and deterioration of the concrete deck, tank and foundation. The bath house is in good physical condition but is too small in many areas, providing for cramped and potentially dangerous conditions. The options considered included rehabilitation of the existing facility, construction of a new pool at the existing site with use of the existing bath house, and to build a new pool complex in a different location. The first two options will require the loss of a swim season, will not alleviate parking problems at the site, nor provide for an adequate replacement because of limited space. The City of Kalispell is now proceeding with preliminary design work to proceed with option three, replacement of the facility, intending to place this issue on the November ballot 2001 special election. In order to gain public input, the planning team and City staff hosted an open house for public review and comment. Forty-five people attended, all spoke in favor of the proposed aquatic facility and skate park. Subsequently a written petition is being circulated indicating a positive response throughout the community. The reoccurring comment was to include the proposed skate park with the aquatic project. The booming growth in skateboarding is being fueled not by parents and coaches, but rather by the passion and enthusiasm of the kids themselves. The need for a facility for these skateboarding enthusiasts has been demonstrated many times in the Courts and the downtown sidewalks. To accomadate the skateboarders and provide relief to the local merchants (planters and sidewalks), the skate park was developed as part of the overall project. Honorable Mayor and City Council Report Compiled August 15, 2001 Page 2 The enclosd exhibits 1 through 4 itemize the project finances. The total project cost, including the bond financing, is $3,675,000 as listed on Exhibit 1. Based on historic data collected on the existing pool, projected yearly operations would total $156,000 (inclusive of an escalated concession operation - see Exhibit 2). Exhibit 3: Revenue projections were estimated by the consultants from 10 years of historic attendance and participation numbers. Daily entrance and attraction fees are based on comparable fees for like aquatic facilities. The City general fund contribution of $50,000 consists of the current 1.5 mils being collected and an additional $20,000 of operational dollars that is currently subsidizing the pool operations and maintenance. The total projected revenue of $260,880 is an estimated figure based on the listed entrance fees and historic visitation numbers. Exhibit 4 identifies bond amount projection based on a total 20 year bond of $3,675,000. The annual payment due is $281,000. When the pool revenue is applied to debt reduction, the payment is reduced to an estimated $176,120 or 8.6 mils. In today's aquatic environment, there are a variety of ways to provide a community with an aquatic facility that meets its recreational needs, caters to the entire community from toddlers to seniors, competitive swimmers to kids having fun, while creating a revenue -producing recreation venue for the community. Public aquatic facilities deliver value to users and the community if they are planned well, designed well, and meet the public's expectations of total health and safety. This project has put an emphasis on fun, family and features, while encouraging greater attendance and longer stays. The proposed aquatic facility was designed to complement the community insuring a partnership between the municipality and residents of Kalispell. RECOMMENDATION: It is my recommendation to create a resolution submitting to the qualified electors of the City of Kalispell. The question of issuing general obligation bonds in the amount of $3,675,000 for the purpose of designing, construction and equipping an Aquatic Recreational and Skate Park facility in Honorable Mayor and City Council Report Compiled August 15, 2001 Page 3 Woodland Park, and paying the costs associated with the sale and issuance of the bond recitals. FISCAL EFFECTS: Create municipal bonds for the design and construction of an Aquatic Facility and Skate Park in the amount of $3,675,000. ALTERNATIVES: As Council recommends. Respectfully submitted, r A Michael Baker, Director of Parks Chris Kukulski, City Manager Report Compiled August 15, 2001 Attachments - Exhibits 1 - 4 PROJECT COST Pool $ 1,334,200 Bath House $ 969,800 Concessions $ 92,700 Pump House $ 111,000 Site Development $ 555,300 Fees $ 283,700 Miscellaneous $ 58,600 Skate Park $ 130,000 Administrative Contingency $ 20,000 Construction Contingency $ 94,700 Bonding $ 25,000 Total $ 3,675,000 _1 P. ry Pnd PoOLIM¢9uEllem e� City of Kalispell Leisure Aquatic Facility & Skate Park Kalispell, Montana Exhibit Architects Design Group L J F. EXPENSES Operations $ 130,000 Concession $ 26,000 Total Projected Expense $ 156,000 City of Kalispell Leisure Aquatic Facility & Skate Park Kalispell, Montana Exhibit Architects Gu ����J Group i 1 REVENUE PROJECTIONS Days of Operation [Existing Pool] 82 Average Daily Attendence 324 PROJECTION PARAMETERS Days of Operation 85 Average Daily Attendence 400 City Usage [60%] 240 Non -City Usage [40%] 160 Daily Entry Fee City $2.00 Daily Entry Fee Non -City $3.00 Daily Attraction Fee City $2.00 Daily Attraction Fee Non -City $5.00 Total City & Non -City Entry Fees $81,600 Total City & Non -City Attraction Fees [60%] Total $65,280 Sub -Total Entry & Attraction Fees $146,880 Lessons: 1500 Students x $22 $33,000 Concessions Revenue $ 31,000 City General Fund Contribution $50,000 TOTAL PROJECTED REVENUES $260,880 TOTAL PROJECTED EXPENSE [$156,000] = - NET REVENUE $ 104,880 City of Kalispell Leisure Aquatic Facility & Skate Park:w� . Kalispell, Montana Exhibit � f �1 Architects I //, I Design ����J Croup BOND AMOUNT PROJECTION Project Cost $3,675,000 Interest Rate 5% Term 20-Years Annual Payment $ 281,000 Pool Revenue Use [$ 104,8801 Net Annual Cost To Homeowners $ 176,120 Approximate Cost Per $100,000 Home / Yr $31 ILL �Nr w City of Kalispell Leisure Aquatic Facility & Skate Park �m M Kalispell, Montana Exttibit a+.'iimbi Architects � %� Design ����J Group L _1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF KALISPELL, MONTANA, THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS IN AN AMOUNT OF THREE MILLION SIX HUNDRED AND SEVENTY FIVE THOUSAND AND NO/100 DOLLARS ($3,675,000) FOR THE PURPOSE OF DESIGNING, CONSTRUCTING AND EQUIPPING AN AQUATIC RECREATIONAL FACILITY AND SKATE PARKIN WOODLAND PARK, AND PAYING COSTS ASSOCIATED WITH THE SALE AND ISSUANCE OF THE BONDS RECITALS. WHEREAS, Bruckhauser Pool, which has served the residents of the City of Kalispell, Montana (the "City") for over seventy years, was renovated in 1984, but has recently shown signs of age and is obsolete as a true aquatic center for residents of the City; and WHEREAS, the City Council (the "Council') of the City, after examining the options of again renovating Bruckhauser Pool or building a new aquatic center, determined that the residents of the City would be best served by a new facility to be located within Woodland Park; and WHEREAS, the City has engaged the firms of Architects Design Group, Interstate Engineering, Carver Engineering and Sitescape Associates (the "Firms") to provide a schematic design and construction estimates for said proposed aquatic center and skate park; and WHEREAS, the Firms have completed the schematic design and construction estimates and presented the Council with a report detailing all items; and WHEREAS, the public has had an opportunity to examine the plans and cost estimates and comment on the report; and WHEREAS, the Council intends to proceed with the proposed aquatic center and skate park project and fund said project through the issuance of general obligation bonds; and WHEREAS, a city or town is authorized pursuant to Section 7-74221, M.C.A., to issue general obligation bonds pledging the general credit of the City for that purpose upon approval of the electorate of the city or town, provided that such indebtedness will not cause the total indebtedness of the city to exceed 1.51% of the total assessed valuation of taxable property of the city, determined as provided in Section 15-8-111, M.C.A., ascertained by the last assessment for state and county taxes; and WHEREAS, a city or town is authorized pursuant to Section 7-16-4104, M.C.A., to incur indebtedness upon the credit of the city or town for the purpose of procuring by purchase, construction or otherwise for various cultural, social and recreational purposes upon approval of the electorate of the of the city or town, provided that the amount of indebtedness contracted for that purpose does not exceed 0.9%of the total assessed value of taxable property, determined as provided in Section 15-8-111, M.C.A., subject to taxation by the City as ascertained by the last completed assessment for state and county taxes prior to this date; and WHEREAS, a city council is authorized pursuant to Section 7-7-4223, M.C.A., to call a bond election by adopting a resolution to that effect; and WHEREAS, the Council has determined that the issuance of general obligation bonds in the amount of $3,675,000.00 will not cause the City to exceed its general statutory indebtedness limitation, which as currently calculated is $9,401,423.00; and WHEREAS, the Council has determined that the issuance of general obligation bonds in the amount of $3,675,000.00 will not cause the City to exceed its indebtedness for the recreational facilities, which as currently calculated is $5,603,497.00; and WHEREAS, the Council has determined there should be submitted to the electors of the City qualified to vote at bond elections the question of whether or not the Council shall be authorized to issue and sell general obligation bonds of the City in order to obtain funds for the purpose of designing, constructing and equipping an aquatic recreational facility and skate park in Woodland Park, and paying costs associated with the sale and issuance of the bonds; and WHEREAS, it is the judgment of the Council that the sum of Three Million Six Hundred Seventy - Five Thousand and No/100 Dollars ($3,675,000.00) will be necessary to carry out the purposes set forth above; and WHEREAS, it is the judgment and determination of the Council that such bonds will be payable during a term not to exceed twenty (20) years and shall be redeemable on any interest payment date after one-half of the term for which they are issued. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: Section 1. Calling of the Election. The Council of the City hereby calls and directs that there be submitted to the electors of the City at the general city election to be held on November 6, 2001, the following question: Shall the Council be authorized to issue and sell general obligation bonds of the City in the amount of Three Million Six Hundred Seventy -Five Thousand and No/l00 Dollars ($3,675,000.00), bearing interest at a rate to be determined by the Council, payable semiannually during a term of not to exceed twenty (20) years and redeemable on any interest payment date after one-half of their term for the purpose of designing, constructing and equipping an aquatic recreational facility and skate park in Woodland Park, and paying costs associated with the sale and issuance of the bonds? Section 2. Conduct of Election. All qualified electors of the City shall be entitled to vote at the bond election. The Flathead County Election Administrator is hereby requested to close registration, give notice thereof and upon close of registration to prepare printed lists of the electors in the City entitled to vote in the election in the City and to conduct the election in the form and manner prescribed by law. Section 3. Notice of Election. The County Election Administrator is hereby authorized and requested to cause notice of the call and holding of the election to be given by publishing notice at least once a week for the three consecutive weeks before the election in the Daily Inter Lake, a newspaper of general circulation in Flathead County. The notice of election as published shall read substantially as shown on Exhibit "A". Section 4. Ballots. The Election Administrator is hereby requested to prepare suitable ballots for use at the election at the polling places, together with the precinct lists. Section 5. Form of Ballot. The ballot shall be printed in substantially as shown on Exhibit Section 6. Notice to County Election Administrator. That a copy of this resolution will be provided to the Flathead County Election Administrator as soon as possible after its adoption and approval in order to inform her of the details of the election and the pertinent requests and authorizations as to the conduct of the election. Section 7. Reimbursement Expenditures (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. (b) Other than (i) expenditures to be paid or reimbursed from sources other than the bonds, (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-20)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1. 15 0-2(f)(2) of the Regulations, or (iv) expenditures in a "de minimus" amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the project have been paid by the City before the date 60 days before the date of adoption of this resolution. (c) The City reasonably expects to reimburse the expenditures made for costs of the project out of the proceeds of bonds in an estimated maximum aggregate principal amount of $3,675,000.00 after the date of payment of all or a portion of the costs of the project. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations. (d) As of the date hereof, there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long- term basis or otherwise set aside) to provide permanent financing for the expenditures related to the project, other than pursuant to the issuance of the bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. (e) The City's financial officer shall be responsible for making the "reimbursement allocations" described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the project. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the bonds or the project and shall specifically identify the actual original expenditure being reimbursed. 17[eX��7:� �i �.Z�1�/:17:1'tl ll:l x� M�ZK�111�[�l U1:��ilt�Y[ef�l �ij:3i�l li:i� MAYOR THIS DAY OF AUGUST, 2001. Wm E. Boharski Mayor Attest: Theresa White City Clerk EXHIBIT "A" NOTICE OF GENERAL OBLIGATION BOND ELECTION City of Kalispell, Montana November 6, 2001 NOTICE IS HEREBY GIVEN by the City Council (the "Council') ofthe City ofKalispell, Montana (the "City"), that pursuant to a certain resolution duly adopted at a regular meeting of the Council on August _, 2001, the following question will be presented to the registered voters of the City at the November 6, 2001 election: Shall the Council be authorized to issue and sell general obligation bonds of the City in the amount of Three Million Six Hundred Seventy -Five Thousand and No/100 Dollars ($3,675,000.00), bearing interest at a rate to be determined by the Council, payable semiannually during a term of not to exceed twenty (20) years and redeemable on any interest payment date after one-half of their term for the purpose of designing, constructing and equipping an aquatic recreational facility and skate park in Woodland Park, and paying costs associated with the sale and issuance of the bonds? The polls shall be open between the hours of 7:00 a.m. and 8:00 p.m., and the polling places for the election shall be the normal polling places for City residents during a general election. Absentee ballots may be obtained at the office of the Flathead County Election Administrator at the Flathead County Courthouse, 800 South Main Street, Kalispell, Montana until 12:00 Noon, November 5, 2001. DATED this _ day of 2001. City Clerk Publish: 12001 ,2001 .2001 U.: OFFICIAL BALLOT CITY OF KALISPELL BOND ELECTION INSTRUCTIONS TO VOTER: Make an X or similar mark in the vacant square before the words "BONDS - YES" if you wish to vote for the bond issue. If you are opposed to the bond issue make an X or other similar mark in the square before the word "BONDS - NO". Shall the City Council of the City of Kalispell be authorized to issue and sell General Obligation Bonds, pledging the general credit of the City of Kalispell, in an amount not to exceed payable over a period of not to exceed twenty (20) years, for the purpose of constructing an aquatic recreational facility and skate park in Woodland Park, City of Kalispell? BONDS -YES- for authorizing the issuance of General Obligation Bonds for the construction of an aquatic recreational facility and skate park in Woodland Park, City of Kalispell. EJBONDS -NO- against authorizing the issuance of General Obligation Bonds for the construction of an aquatic recreational facility and skate park in Woodland Park, City of Kalispell.