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HomeMy WebLinkAboutTB Study Session 2013-01-22Town of Estes Park, Larimer County, Colorado, January 22, 2013 Minutes of a Regular meeting of the TOWN BOARD STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in Rooms 202/203 in said Town of Estes Park on the 22nd day of January, 2013. Board: Mayor Pinkham, Mayor Pro Tem Blackhurst, Trustees Elrod, Ericson, Koenig, Norris, and Phipps Attending: Mayor Pinkham, Mayor Pro Tem Blackhurst, Trustees Elrod, Ericson, Koenig, Norris, and Phipps Also Attending: Town Administrator Lancaster, Assistant Town Administrator Richardson, Town Attorney White, Dir. Zurn, Coordinator Winslow, and Deputy Town Clerk Deats Absent: None Mayor Pinkham called the meeting to order at 4:30 p.m. STALL BARN / MULTI-PURPOSE EVENT CENTER (MPEC) BIDS. Town Administrator Lancaster provided the Board with financial background as it relates to funding for capital projects. He stated that based on the 2013 adopted budget, $2,311,736 in unencumbered funds is available for capital projects; and noted that anything over that amount would require reducing fund balance, selling assets, or borrowing money. Dir. Zurn reported that a bid opening for the 100-stall barn and the MPEC was held on January 15, 2013. The bid results are as follows: Bidder Schedule A MPEC Schedule B Stall Barn Schedule C Schedule A & B including Alternates Dohn Construction, Inc. $3,629,000 $1,464,000 $5,171,500 Heath Construction $3,870,000 $1,517,000 $5,481,000 Taylor Kohrs LLC $3,955,513 $1,634,205 $5,714,518 Krische Construction, Inc. $4,071,000 $1,598,000 $5,741,000 Sampson Construction Co., Inc. $4,187,000 $1,715,000 $5,988,400 McCauley Constructors, Inc. $4,239,600 $1,622,500 $5,797,400 Buildings by Design LLC $4,982,985 $1,840,224 $6,823,289 Growling Bear Co., Inc. $5,300,000 $2,136,000 $7,621,700 Due to a competitive private sector market, favorable bids for the stall barn (including alternates) and the MPEC were received with Dohn Construction, Inc., being the apparent low bidder on the structures, both individually as well as in combination. The bids do not include site work which is estimated at $67,000 for the stall barn and $140,000 for the MPEC. Construction of the MPEC will require the addition of off-site turn lanes at an estimated cost of $250,000, bringing the total for both buildings, including site work and 10% contingency, to $6,187,550. This total does not include landscaping or furniture, fixtures, and equipment (FF&E) for the buildings. Dir. Zurn stated construction of the stall barn would take eight to nine months, and the MPEC from ten to 12 months to complete. Dir. Zurn also noted that the design of the MPEC is grandfathered under the 2003 codes until March 2013. If the project is not awarded by that date, the project will have to be redesigned to the 2009 codes and potentially re- bid. Discussion is summarized: alternates could be removed from the stall barn plan and Town Board Study Session – January 22, 2013 – Page 2 reduce the cost of construction; restrooms at the stall barn and the MPEC are designed to be accessible 24/7, or controlled access; using the MPEC to house horses may result in odor problems; the MPEC was originally designed to accommodate 140 horse stalls during the summer as a temporary solution while additional stalls were being built; need the stall barn and the multi-use building; changing uses in the building would be labor intensive, but possible; and a multi-use building will increase the ability of Stanley Park Fairgrounds to increase revenues. Coordinator Winslow said that the ventilation system is designed to handle odors and dust associated with agricultural uses, and said mats would be used to cover the stall floors in both the barn and the MPEC, with the mats being removed for cleaning on an annual basis. He stated that staff’s preference is for a non-sloped, smooth floor in the MPEC facility to provide a firm, flat surface for vendors and participants. Trustees Elrod and Norris said that staff at The Ranch advised against building an equestrian/multi-purpose event center indicating that the two uses are not compatible. Trustee Norris requested additional conversations with representatives of The Ranch to continue to discuss the topic of compatibility. Mayor Pro Tem Blackhurst said that having received favorable bids for the stall barn and the MPEC, a review of the MPEC pro forma and financing options to build both buildings is a next step. He noted construction would overlap budget years possibly making some 2014 funds available for the project as well. He said he understands there are some concerns but with the guidance of professionals the compromise to build a multi-use facility can work. MULTI-PURPOSE EVENT CENTER (MPEC) PRO FORMA. Johnson Consulting was retained to conduct an economic and feasibility study for the development of a multi-purpose event center. A draft pro forma report was provided to the Board. Assistant Town Administrator Richardson called the report comprehensive and noted that it identifies operating costs, revenues, and economic benefits to the community. Assistant Town Administrator Richardson compared the model to the business model used prior to the construction of the Conference Center and said that the report indicates that the facility would most likely operate at a negative balance for the first ten years, and possibly longer, however, the economic impact to the community in new business would cover the net operating losses. The estimated taxable spending generated by the MPEC could result in collected sales tax for the Town of approximately $750,000, and $45,000 for the Local Marketing District. He added that the expenses calculated into the pro forma did not include debt service. The Trustees were asked for comments and/or concerns that would require follow-up by the consultant prior to finalizing the pro forma report for formal presentation at a regular Town Board meeting. Trustee Koenig said the report speaks to revenue from business sent to Estes Park from the facilities at The Ranch and noted that no contract exists to provide for that collaboration. Mayor Pinkham stated that even now some cooperation exists between The Ranch and the Fairgrounds. Discussion included: how solid are the marketing numbers?; marketing the facility would be essential, as well as coordination with VisitEstesPark; and a business operating plan would need to be created. The Trustees also voiced concern about achieving the projected level of events by 2015, and asked for specifics related to “state of the art communication technology.” Trustee Norris said he is satisfied that the size of the MPEC facility is correct, but questioned the qualifiers related to marketing the facility included in the report, and the level of support the community will give the project. He noted that the 2011 citizen survey showed a higher level of community support for stall barns, open space, and street improvements. Mayor Pro Tem Blackhurst said it is time to get the project in front of the community at a Town Board meeting, as well as look at available financing options. Town Board Study Session – January 22, 2013 – Page 3 Finance Officer McFarland said the prevailing interest rate for a ten-year certificate of participation (COP) is 2.25% and 3.5% for a 20-year certificate of participation. He said interest paid on a $5 million ten-year COP would equate to approximately $600,000; and approximately $2.5 million for a 20-year COP. Finance Officer McFarland will prepare financial scenarios for the Board to consider. The Board requested scheduling representatives from The Ranch and Johnson Consulting for the next meeting to continue discussion. TRANSPORTATION GRANTS. Current transportation funding legislation, Moving Ahead for Progress in the 21st Century (MAP-21), through the Federal Lands Access Program under the Office of Federal Lands Highway has provided the Town with a grant opportunity for funding to address transportation needs between the Town and Rocky Mountain National Park. The program goal is to improve state and local transportation facilities that are within, adjacent to, or that provide access to, federal land. As requested at the December 11, 2012, Town Board Study Session, staff is bringing forward additional information regarding this opportunity based on research of three possible projects that fit within the grant criteria. The projects are: 1. A one-way couplet utilizing the existing state highway through downtown and an additional one-way alignment in the Riverside Drive area. 2. A two-way state highway redirected to the Riverside Drive area and eliminating the state highway designation downtown. 3. A multi-use trail from the downtown area along the Big Thompson River to the entrance of Rocky Mountain National Park (RMNP). Representatives of Felsburg, Holt & Ullevig stated that the elements of analyses for the projects included refining alignments, evaluating impacts related to property acquisition, economics, and the environment; and estimating costs of construction, rights-of-way, and easements. Option #1 – One-way Couplet: westbound traffic would remain on Elkhorn Avenue and Moraine Avenue. A new roadway would begin at the intersection of Moraine Avenue and Crags Drive and proceed east bound to Ivy Street to East Riverside and intersect with Elkhorn Avenue. This option has the potential to displace one to three businesses, one residence, and cost an estimated $11,750,000 to $13,100,000. Option #2 – Two-way Roadway: realigns state highway away from Elkhorn Avenue eliminating the state highway designation downtown. • Option #2a –Two-way traffic travels on new alignment beginning at Moraine Avenue and Crags Drive and at Elkhorn Avenue and East Riverside Drive with the roadway cantilevered over the river. This option has the potential to displace five plus businesses, one residence, and cost an estimated $26,300,000. • Option #2b – Two-way traffic travels on new alignment beginning at Moraine Avenue and Crags Drive and at Elkhorn Avenue and East Riverside Drive with no cantilever. This option has the potential to displace 5 plus businesses, 17 residences, and cost an estimated $19,500,000. • Option #2c – Two-way roadway with split alignment with two lanes traveling both westbound and eastbound. This option has the potential to displace three to five businesses, one residence, and cost an estimated $15,300,000 to $16,700,000. Option #3 – Multi-Use Trail – Estes Park to Beaver Meadows: A trail could be constructed from downtown to Marys Lake Road, however, the Park Service will not be ready to construct the remainder of the trail, which will be located on federal land, until approximately 2020. Depending upon the route chosen for the trail, the number of easements necessary and the properties impacted varies. The cost is estimated at Town Board Study Session – January 22, 2013 – Page 4 $7,400,000. Roadway realignment has the potential to ease congestion and stimulate economic development along corridors created by new traffic patterns, as well as allow for the closure of Elkhorn Avenue for local events. Dir. Zurn stated that the realignment options could remove between 1.8 and 2.2 lane miles from the state’s highway system which could spark interest within CDOT to help offset the matching funds for the grant. Dir. Zurn said at this point the grant is described as annual, however, this is subject to change. He and Town Administrator Lancaster concurred that few grant opportunities exist for roadway projects, whereas, the trail project would qualify for open lands and/or GoCo funds. Mayor Pro Tem Blackhurst said that the Town recently invested money in the transit hub to help with downtown congestion. He stated the roadway projects would have significant community impact including property acquisition and business relocation, and voiced concerns about development along Moraine Avenue stating guests like to stay in the downtown core. He said additional discussion about the human impact of these projects, as well as funding, is necessary. Discussion will continue at an upcoming Town Board Study Session. FUTURE AGENDA ITEMS. Item not discussed due to a shortage of time. There being no further business, Mayor Pinkham adjourned the meeting at 6:50 p.m. Cynthia Deats, Deputy Town Clerk