CITY OF SALEM. Legislation Text. November 2016 Police Facility General Obligation Bond Measure Resolution
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1 CITY OF SALEM 555 Liberty St SE Salem, OR Legislation Text File #: , Version: 1 TO: THROUGH: FROM: Mayor and City Council Steve Powers, City Manager Dan Atchison, City Attorney SUBJECT: November 2016 Police Facility General Obligation Bond Measure Resolution Ward(s): All Wards Councilor(s): All Councilors Neighborhood(s): All Neighborhoods ISSUE: Shall the City Council adopt Resolution No , which calls for a measure election to be held on November 8, 2016, to submit to the voters of the city the question of issuing general bonded indebtedness not to exceed $82,088,000 to finance the development of a new Police Facility and related costs? RECOMMENDATION: Adopt Resolution No , which calls for a measure election to be held on November 8, 2016, to submit to the voters of the city the question of issuing general bonded indebtedness not to exceed $82,088,000 to finance the development of a new Police Facility and related costs. SUMMARY AND BACKGROUND: Salem s Police Department is located in 27,000 square feet on the first floor of the Salem Civic Center. The Civic Center was built in 1972 when Salem s population was half of today s 159,265. The space is inadequate for the 187 sworn officers and 118 civilians who operate Salem s large, multi -functional and urban-based Police Department 24-hours a day, seven days a week. Some critical operations, such as the crime lab and emergency dispatch center, are currently housed off-site in 21,000 square feet of leased space. Recognizing the limitations of the current Police space, the City Council has been working to address the goal of building a new headquarters for the Salem Police Department since In 2015, the City selected a consultant team led by DLR Group, a national design firm with experts in CITY OF SALEM Page 1 of 4 Printed on 7/14/2016 powered by Legistar
2 File #: , Version: 1 public safety facility design to: (a) update existing analyses of Police Department space needs to benefit work flow and safe community access to police services; (b) develop evaluation criteria to assess site feasibility; (c) create conceptual sketches with high level cost estimates of up to three sites to support Council-decision making; and (d) refine a more detailed conceptual design and cost estimate for the preferred location. On August 31, 2015, the City Council appointed Mayor Peterson and Councilors Bednarz, Dickey and McCoid to the Police Facility Council Subcommittee to assist and guide staff and the consultant team in moving the proposed Salem Police Department headquarters facility forward. Councilor Bennett was appointed to the Council Subcommittee as an alternate. The Council Subcommittee met three times to receive briefings from DLR on the space needed by police and recommended size of the proposed facility for the next 30 years, discuss proposed siting criteria, and review feasibility of 30 possible sites for the new facility. Minutes and materials from the Council Subcommittee discussions were forwarded as information reports to Council. At their February 29, 2016 public hearing on the topic, the City Council selected the former O Brien Auto Group site (located at the intersection of Division and Commercial St. NE) as the preferred site for a new police facility. At the April 4, 2016 City Council Work Session on the Police Facility, staff and the DLR Group presented City Council with refined designs for the O Brien site, preserving the Mill Creek Plaza property on the north end of the site. Staff also presented a smaller, reduced Police Facility program (without the Call Center), parking, and revised cost estimates for the proposed Police Facility. Council confirmed the Police Facility should be designed for the O Brien site only, and directed staff to proceed with facility planning for both the recommended and the reduced program (without the Call Center) at that site. Council further directed that Urban Renewal funds should be used for the adjacent street improvements to facilitate traffic movement through the area. At the June 1, 2016 City Council Work Session, staff and the consultants presented a comparison of the design and cost estimates for the recommended Police Facility program and the reduced program for the O Brien site; a summary of the findings from the March 2016 poll of registered Salem voters; and details related to the proposed future need for the call center and parking at the proposed new Police Facility. Prior to the June 1, 2016 Work Session, an updated set of frequently asked questions concerning the planning for the proposed new Police Facility was published (Attachment 1). On June 8, 2016, the City Council held a public hearing regarding the potential new police facility, and voted to direct staff to prepare for Council s consideration a resolution referring a measure to submit to Salem voters the question of issuing general bonded indebtedness not to exceed $82,088,000 to finance the development of a new Police Facility and related costs. The June 8, 2016 public hearing was the culmination of a multi-year process to move forward on the siting and development of a police facility that will serve the needs of the Police Department and the community for the next forty years. CITY OF SALEM Page 2 of 4 Printed on 7/14/2016 powered by Legistar
3 File #: , Version: 1 FACTS AND FINDINGS: Council directed that the resolution include the following particulars: The total not to exceed amount of the bond shall be $82,088,000; Identification of the location of the proposed police facility; The use of the bond funds shall include site acquisition and development of the police facility and related costs; That related costs include site acquisition and preparation, and abutting street improvements; An estimate of the effect of the measure on the property tax liability for a representative residential property owner; That the police facility will be approximately 148,000 square feet of building area, and include the Willamette Valley Communication Center, and; That any savings realized after completion of the project may be used for renovation and improvements to the space at the Civic Center vacated by the Police Department. Resolution No contain the elements included in Council s direction. The form and specific wording of the Project Summary (Exhibit A to the Resolution) and the Measure (Exhibit B to the Resolution) have been drafted to meet the requirements of State election law, and the requirements for bond measures set forth in Oregon Revised Statutes Chapter 287A. Use of potential bond savings. Council s direction was to include in the measure a statement that any saving may be used for renovation and improvements to the space at the Civic Center vacated by the Police Department. Staff now recommends that this language as it appears in the Resolution and exhibits be written more broadly to read: Any funds remaining would be used to fund improvements to the Salem Civic Center, such as renovations to the spaces vacated by the Police Department upon its move to the new Police Facility. It is highly likely that the cost of renovating the space vacated by the Police Department will be in excess of any bond savings. However, in the event that excess funds remain, the proposed language will allow those saving to be used to fund improvements throughout the Civic Center, which includes the Library. Identification of the proposed location. Council also directed that the location of the proposed police facility, as determined by Council, be included in the Resolution. The location of the police facility has been a central theme throughout City s consideration of the police facility, and at a February 29, 2016 public hearing, Council selected the former O Brien Auto Group site (located at the intersection of Division and Commercial Streets, NE, as Council s preferred location for the facility. Including the location of the proposed facility in the Measure has the effect of excluding other CITY OF SALEM Page 3 of 4 Printed on 7/14/2016 powered by Legistar
4 File #: , Version: 1 potential locations for the police facility, and reducing the City s flexibility in choosing a different location, if for unforeseen reasons the preferred location cannot be used. However, given that Council has selected the specific location, and the community s interest in identifying the specific location prior to the vote on the bond measure, the Measure does identify the specific location. Bond Structure. During the June 8, 2016 public hearing, Council discussed potential bonding and debt structures to provide adequate on time funding for voter approved bond projects, while ensuring the least impact on tax payers. The targeted and combined level levy is one debt management strategy where multiple issuances target a levy rate that remains consistent over a period of time. As assessed value grows and debt is retired, additional capacity is achieved by holding the combined levy rate constant. The targeted and combined level levy would allow the City to provide on time funds for the development of the police facility and would result in lower annual tax rates. Under this approach, it is estimated that the proposed FY 2017/18 tax rate would increase 36 cents per $1,000 of assessed value with the passage of the bond. The anticipated combined City general obligation levy would be approximately $1.25 per $1,000 assessed value, 24 cents more than the current combined levy of $1.01. The future levy rate attributable to the Police Facility bond will vary due to changes in assessed value and the strategy to level the combined general obligation tax rate. The Measure seeks authorization to issue bonds in one or more series that would mature in 31 years or less. Next Steps If Council adopts Resolution No , the City Attorney will draft the ballot title. The City Recorder will publish the ballot title in the Statesman Journal. Members of the public may file an objection to the form of the ballot title with the Municipal Court. When the ballot title is in final form, it, along with the measure and other election documents will be submitted to the Clerks of Marion and Polk Counties, which certify the Measure for election. At that point, the Measure will appear on the ballot for the November 2016 General Election. The City will have until September 8, 2016 to withdraw the Measure from the election. Attachments: 1. Resolution No Measure - Exhibit A 3. Police Facility Project Summary - Exhibit B 06/16/2016 Dan Atchison City Attorney CITY OF SALEM Page 4 of 4 Printed on 7/14/2016 powered by Legistar
5 RESOLUTION NO A RESOLUTION OF THE CITY OF SALEM, OREGON, CALLING A MEASURE ELECTION TO SUBMIT TO THE ELECTORS OF THE CITY THE QUESTION OF CONTRACTING GENERAL OBLIGATION BONDED INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $82,088,000 TO FINANCEA NEW POLICE FACILITY AND OTHER CAPITAL COSTS; DECLARING INTENT TO REIMBURSE EXPENDITURES; AND RELATED MATTERS Whereas, the City Council of the City of Salem, Oregon (the City ), has determined that a need exists for the City to finance a new police facility and other capital costs, as more fully described in Exhibit A, which is attached hereto and incorporated herein by reference (the Police Facility Project ); through the issuance of voter-approved general obligation bonds, as authorized by ORS Chapter 287A (the Bonds ); and Whereas, the City anticipates incurring expenditures (the Expenditures ) to finance the costs of the Police Facility Project, including bond issuance costs, and wishes to declare its official intent to reimburse itself for any Expenditures it may make on the Police Facility Projects from its general funds from the proceeds of tax-exempt Bonds; and Whereas, the costs of the Police Facility Project and related costs, including bond issuance costs, to be funded through the issuance of voter-approved general obligation bond proceeds are estimated to be not more than $82,088,000 (the Principal Amount ); and Whereas, the issuance of bonds in the Principal Amount will not result in the City exceeding the debt limitation set forth in ORS 287A.050(2); Whereas, upon construction of the Police Facility Project the Police Department will vacate the spaces currently utilized by the Police Department at the Salem Civic Center, and Whereas, SRC Chapter 11 contains certain requirements for the conduct of City elections; NOW, THEREFORE, the City Council of the City of Salem resolves as follows: Section 1. Measure Election Called. A measure election is hereby called (the Measure Election ) for the purpose of submitting to the electors of the City the question of authorizing the City to issue general obligation bonds in a principal amount of not more than $82,088,000 to finance a new police facility and other capital costs ( Exhibit B ). Section 2. Election Conducted by Mail. The Measure Election shall be held in the City on the 8th day of November, As required by ORS , the Measure Election shall be conducted by mail by the County Clerk of Marion County, Oregon, according to procedures adopted by the Oregon Secretary of State pursuant to ORS Section 3. Delegation. The City authorizes the City Manager, or the City Manager s designee, (the Authorized Representative ) to act on behalf of the City and to take such further action as is necessary to carry out the intent and purposes set forth herein, in compliance with the applicable provisions of law. RESOLUTION Page FILE
6 Section 4. Preparation of Ballot Title. The City Attorney is hereby directed to prepare the ballot title for the measure, and deposit the ballot title with the City Recorder within the times set forth in SRC Section 4. Publication of Notice of Ballot Title and Rights to Appeal. The City Recorder shall publish in The Statesman Journal, or in some other newspaper of general distribution within the City, a notice of receipt of the ballot title, including notice that an elector may, pursuant to SRC , appeal the ballot title to the municipal judge, by filing a written appeal with the City Recorder no later than five business days after the date the ballot title is deposited with the City Recorder, requesting a different ballot title and stating why the ballot title is unsatisfactory. Section 5. Filing with County Elections Office. Pursuant to ORS (2), the City Recorder shall deliver the Notice of Measure Election to the Elections Officers of Marion County, Oregon and Polk County, Oregon on or before September 8, 2016, which is a date not later than sixty-one days prior to the election. Section 6. Reimbursement Declaration. The City hereby declares its official intent to reimburse itself with the proceeds of the Bonds for any of the Expenditures incurred by it prior to the issuance of the Bonds. Section 8. Effective Date. This resolution is effective upon adoption. Adopted by the City Council this 27 th day of June, ATTEST: City Recorder Approved by: City Attorney RESOLUTION Page FILE
7 CAPTION CITY OF SALEM POLICE FACILITY GENERAL OBLIGATION BOND AUTHORIZATION QUESTION Shall the City issue up to $82,088,000 in general obligation bonds for a new police facility? If the bonds are approved, they will be payable from taxes on property or property ownership that are not subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution. Question Word Limit: 20 Word Count: 16 SUMMARY If approved, this measure would finance a police facility and other capital costs. This measure would provide funds to: Acquire a site located generally at the 700 Block of Commercial Street, NE in central Salem. Site preparation and construction, furnishing and equipping of a police facility approximately 148,000 square feet in size, and associated onsite parking. Provide space for a City call center serving multiple agencies in the region. Make adjacent street improvements. Any funds remaining would be used to fund improvements to the Salem Civic Center, such as renovations to the spaces vacated by the Police Department upon its move to the new Police Facility. Bonds may be issued in one or more series and each series would mature in 31 years or less from its issuance date. It is estimated that the FY 2017/18 proposed tax would result in a rate of $0.36 per $1,000 of assessed property value. For a home assessed at $200,000, the estimated property tax for the bonds would be $72 per year. Summary Word Limit: 175 Word Count: FILE
8 Exhibit B POLICE FACILITY PROJECT SUMMARY The City is proposing to construct a new facility for the Salem Police Department ( Police Facility ). The Police Facility would be constructed on a currently vacant site, approximately 3.49 acres in size, located generally at the 700 Block of Commercial Street, SE, that was formerly location of an auto dealership that has vacated the site. The Police Facility would be approximately 148,000 square feet in size, and would provide a central location for the Salem Police Department s administration, officers and staff. The Police Facility would also provide parking for Police vehicles, visitors, officers and staff. The Police Facility would also contain the Willamette Valley Communications Center (aka 911 dispatch center ), which is a City 911 dispatch center serving Salem and approximately 27 other regional public safety organizations. The City estimates that the Police Facility would consolidate all Police programming in a central location, meet the city s and Police space and programming needs for approximately 40 years, and would be constructed to current building code and seismic standards to allow public safety operations to continue after an earthquake. The Police Facility is estimated to cost $82,088,000, and would be funded by general obligation bonds approved by Salem Voters. Any funds remaining after payment for construction of the Police Facility and related bond costs would be used to fund improvements to the Salem Civic Center, such as renovations to the spaces vacated by the Police Department upon its move to the new Police Facility.
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