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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 11/20/2007 (3) • KENT Public Facilities District W♦HNINOTON November 20, 2007 Board Members Present: Mike Miller, Lew Sellers, Greg Haffner, Randall Smith, and Cass Prindle. Others Present: Suzette Cooke, John Hodgson, Tom Brubaker, Bob Nachlinger, Ben Wolters, Chris Hills, Brenda Jacober and Julie Pulliam from the City; Brad Tong and Ken Johnson of Shiels Obletz Johnsen; and Colin Campbell of the Seattle Thunderbirds. I. Call to Order a. Introductions. Miller called the meeting to order at 8:00 a.m., and introductions were made. b. Approval of Minutes. Haffner moved to approve the minutes of the special meeting of September 14, 2007. Sellers seconded and the • motion carried. U. Project Overview and Update a. Project Budget. Wolters gave an update on the budget, and noted that the project is approximately 11% complete. b. Project Schedule. Wolters noted that the project is approximately two weeks ahead of schedule in terms of site work, utilities and underground work. He added that delivery of steel will begin in December and go through March. C. Status of Construction. Brad Tong reviewed the Monthly Budget Report provided to the Board. He noted that the contractor has spent very little of the contingency and explained that most of the contingency comes back to the City if it is not used by the contractor. He added that approximately 73% has been bid out to subcontractors. Questions regarding pile driving testing, builders risk insurance, and the cost of the Environmental Impact Statement and Transportation Impact Analysis were answered. Tong distributed copies of a design and construction timeline showing which activities have been completed and noted that the next step is selection of the operator which is scheduled for December. He pointed out that on July 1, 2008, Mortenson must advise whether they will take an acceleration • Public Facilities District November 20, 2007 Page Two incentive of $50,000 a week for four weeks to complete the project early. d. Selection of Operator. Wolters noted that representatives from Global Spectrum, SMG, Benu Works, and IFG attended a pre-submittal conference, and that bids will be received on November 30. He added that interviews are tentatively scheduled for the week of December 10 and work is tentatively scheduled to begin on January 16. It was noted that no local firms submitted bids. Wolters explained that the proposed length of the contract would be 4.5 or 5 years, three of which would be operation including one year of helping with pre- opening, two years of operation, and an option for a two year extension. It was noted that John Christensen, Executive Director and CEO of the Washington State Trade and Convention Center, has been involved in the design of the project and has been retained to staff the selection process. Wolters stated that Feld Entertainment, which operates the Barnum and Bailey Circus and Disney on Ice, has requested dates in 2009 and 2010, and named others who have • expressed interest in using the facility. Hodgson emphasized that the facility does not have a convention component. e. Status of Design and Marketing. Wolters reported that the design advisory group has provided input on the interior design and said final design and artistic renditions are expected in January. He added that final design of the plaza will be done if the budget allows. Traffic improvements and design components were then discussed. Colin Campbell commented that there is a lot of excitement about the project, and talked about the marketing and cost of club seats and suites, and about corporate advertising. III. Financial Report a. Financial Update. Finance Director Bob Nachlinger noted that approximately $12,000,000 has been spent, and that bonds need to be sold. b. Implementation of PFD Tax Collection by Department of Revenue. Nachlinger noted that the PFD tax will be instituted on January 1, 2008, and that the first money will be received on March 20, 2008. He added that it will be received for twenty-five years. Public Facilities District November 20, 2007 • Page Three C. Strategy to Sell Bonds. Nachlinger provided information on interest rates and said he is anticipating issuing one bond issue with three series of bonds: Series A would be the sales tax funded bonds, Series B would be the taxable portion of the bonds, and Series C would be the tax exempt portion of the bonds. He explained that because of the type of pledge of PFD and City revenues to this facility, debt service costs come before operations and maintenance costs, but that money is being budgeted to a renewal and replacement fund for this project. d. Selection of Bond Underwriter. Nachlinger explained the selection process and announced that Lehman Brothers Wachovia Securities and Piper-Jaffrey have been selected as the underwriting team. e. Selection of Financial Advisor. Nachlinger stated that Seattle Northwest Securities has been selected as the Financial Advisor, and that they have expertise in marketing Washington bonds. • IV. Action Items a. Contingent Loan and Support Contract. Tom Brubaker explained that the proposed resolution authorizes various bond and financing issues. He explained that the reason for an interlocal agreement between the City and the PFD is because they are so closely tied together, and noted that it lays out the terms so that assurance can be given to the bond issuers that the bonds are properly backed and will be paid off. It was clarified that any major changes would be brought to this group, but that small changes could be handled by the Chair. Sellers moved to enact Resolution 2007-5 approving the "Contingent Loan and Support Agreement" regarding financing for the Kent Special Events Center between the PFD and the City, and authorizing the Chair of the Board of Directors to execute the agreement subject to approval of the final terms and conditions by the City Attorney. Haffner seconded and the motion carried. V. Other Business ADDED ITEM - Washington Governmental Entity Pool Membership. The City's Risk Manager Chris Hills requested that this item be added to the agenda. Haffner moved to waive the notice requirement, Sellers seconded and the motion carried. Public Facilities District November 20, 2007 Page Four Hills explained the Washington Governmental Entity Pool and the benefits of membership. He provided a copy of an Interlocal Agreement for the purpose of providing property and liability insurance coverage for the District. Haffner moved to adopt Resolution 2007-6 authorizing membership with the Washington Governmental Entity Pool for the purpose of providing liability and property insurance for the district; approving an interlocal governmental contract and authorizing execution thereof; and accepting a memorandum of insurance coverage under such contract. Smith seconded and the motion carried. a. Tour of Construction Site. Wolters noted that Julie Pulliam will set up tours for individual Board members, or for two at a time. ADDED ITEM - Next Meeting Time. It was determined that there is no urgent business at this time and that the next meeting will be in January. Agenda items will include an update on the bond sale and setting a time for regular meetings. • VI. Executive Session No Executive Session was held. VII. Adjourn Sellers moved to adjourn at 9:50 a.m. Prindle seconded and the motion carried. Brenda Jacober, CMC City Clerk 0