City of Ketchum
P.O. Box 2315
480 East Avenue N.
Ketchum, Idaho 83340
"Small Town, Big Life"

February 16, 2016
In This Issue
A Message From Mayor Nina Jonas: Answering Your Questions

I am encouraged by the growing conversation around a proposed general obligation bond for new essential services facilities. This week's newsletter addresses many questions I am hearing around town to offer further clarity.
 
Last year, the city contracted an Idaho-based firm to conduct a space study for police, city operations/emergency communications and fire needs now and into the future.  The study identifies the space needs, the feasibility of locating that identified space on two city-owned properties and a cost estimate.
 
Space needs were gained after lengthy interviews with staff. Two city-owned properties were only utilized to calculate the cost estimate. The not-to-exceed cost estimate includes construction of two new facilities plus soft costs. Construction of a new police and city operations/emergency communications facility is estimated at $10.2 million, and a new fire station at $6.5 million.
 
There are many issues with the current building. Read about them in the Q&A that follows. And come see city hall for yourself during one of the weekly scheduled tours.
 
This week's tours are Wednesday, Feb. 17, at 5 p.m. and Thursday, Feb. 18, at noon.
 
It is an honor to serve you.
 
Nina 

ASK NINA
Today's article (Jan. 27) in the Express shows how complicated the construction of a new city hall promises to be. Has anyone at the city seriously considered approaching the U.S. Postal Service about purchasing the post office and remodeling it? While I'm sure we all know what John McDonald would say, the higher-ups in Salt Lake City (who are concerned about the USPS budget crunch) could be more open to an offer from the city.

The city cannot contemplate alternative locations for a police, city operations/emergency communications and fire facilities until funding is secured through a general obligation bond. If the city were to do so, the city could be accused of inverse condemnation. If a bond were secured, the city would form committees and explore several creative options for new facilities, such as the U.S. post office. The space study was based on properties the city owns in order to establish a cost estimate. 

Do you have a question for Mayor Nina Jonas? AskNina@ketchumidaho.org

Note: If you submit a question to "Ask Nina," your name may be published unless you request that it be withheld.
ESSENTIAL SERVICES FACILITIES GENERAL OBLIGATION BOND Q&A
wHAT IS AN ESSENTIAL SERVICES FACILiTY?
Ketchum's essential services facilities are; police; city operations, inclusive of emergency communications; and fire. They are defined in the 2015 International Building Code as buildings or other structures that are intended to remain operational in the event of extreme environmental loading from flood, wind, snow or earthquakes.

Essential facilities, or critical facilities, as identified by Federal Emergency Management Agency , commonly include all public and private facilities that a community considers essential for the delivery of vital services and for the protection of the community. They usually include emergency response facilities (fire stations, police stations, rescue squads and emergency operations centers), emergency shelters, communications facilities and any other assets determined by the community to be of critical importance for the protection of the health and safety of the population. The adverse effects of damaged critical facilities can extend far beyond direct physical damage. Disruption of health care, fire and police services can impair search and rescue, emergency medical care and even access to damaged areas.

WHAT IS A GENERAL OBLIGATION BOND?
A general obligation bond is a debt instrument issued by states and local governments to raise funds for public works. What makes general obligation bonds unique is that they are backed by the full faith and credit of the issuing municipality using legally available resources, including tax revenues, to repay bondholders.

HOW LONG HAVE NEW POLICE, CITY OPERATIONS/EMERGENCY COMMUNICATIONS AND FIRE FACILITIES BEEN EVALUATED?
The city determined there was a need for new facilities in 2001. Studies were prepared in 2001, 2002, 2003, 2005 and 2016. All concluded that the existing building is substandard and becoming structurally unsafe for police, city operations/emergency communications and fire. These new facilities have been a priority for City Council since 2014. In the FY2014/15 budget, the Ketchum Urban Renewal Agency provided the city funding to conduct a new space study. Since 2001, the conditions have worsened and the cost has nearly doubled.

WHAT ARE THE MAJOR ISSUES WITH THE CURRENT BUILDING?
The existing building, built over 40 years ago, was not designed to be an essential services facility. 
  • The building is inaccessible to people with mobility issues. The doors are not wide enough for wheelchairs, there is no elevator to access the second floor and the building cannot be retrofitted to meet the requirements of the Americans with Disabilities Act.
  • Working areas in the police department are the worst in the building. The police department is housed in cramped, deteriorating, windowless areas. Nine male and three female police officers share a small locker room and bathroom. The current records, evidence and weapons storage space is substandard, as are the interview and work areas. The compromising health environment and unacceptable working conditions impact daily operations, and recruitment and retention of staff.
  • Fire department facilities are substandard. Obsolete facilities impact basic readiness and response time. In addition, 37 male and 12 female firefighters and volunteers share outdated living quarters. During a four-person shift, one firefighter must sleep on a Murphy bed in the middle of a small, multi-purpose office/kitchen/living room area.
  • The building lacks technology infrastructure. This limits the efficiency of staff and increases costs to taxpayers. The network lines serving the police department are inadequate, increasing the probability of computer failure. Providing adequate public access to city documents is difficult, given the technology limitations.
  • Safety and structural problems. Police, city operations/emergency communications and fire facilities are essential and must be able to operate during a major emergency or catastrophic event. The existing building houses the most important functions of the city, yet the building is likely to incur major unrepairable damage in the event of a storm, earthquake or other disaster.
WHAT IS A SPACE STUDY?
A space study determines the size, configuration and cost for new buildings. This study was performed primarily to determine the size and configuration of new police, city operations/emergency communications and fire facilities that will be adequate for 50 to 70 years, and obtain a cost estimate. This information is necessary to determine the best way to proceed with new facilities. Most important was to obtain an accurate cost estimate. The study did not address the design of the building and was not intended to do so.

WHERE IS THE BUILDING DESIGN?
There are no designs. It makes no sense to spend funds for designs unless funds for design and construction are available.

WHEN WOULD THE PUBLIC BE ABLE TO PARTICIPATE IN THE DESIGN AND LOCATION OF THE BUILDINGS?
It is premature to move forward with any design until the voters have supported a bond measure. If that occurs, the public will be asked to provide input on the location and design of the buildings.

WHO IS ZGA ARCHITECTS AND PLANNERS?
The city identified and interviewed several design firms throughout Idaho with experience in performing space studies and constructing police, city operations/emergency communications and fire facilities. These are not typical design and construction projects; they are specialty projects that require specific design expertise. ZGA Architects and Planners is a team experienced with government facilities, as well as architecture, planning, construction and cost estimating. It is an Idaho firm and could deliver the project within our time frame and budget.
 
If we secure funding for the proposed projects, the next step will be to issue a request for qualifications or request for proposals for architectural services. 

WHAT WOULD THE COST BE FOR NEW ESSENTIAL SERVICES FACILITIES?
Today's estimate is approximately $23.1 million, a $10 million increase since 2003, and consists of the following components:
  • Police and City Operations/Emergency Communications Building                $10,185,350
  • Fire Station                                                                                                       $6,540,000
  • Demolition*                                                                                                          $250,000
  • Temporary Facilities **                                                                                         $963,000
  • Other Costs ***                                                                                                  $5,182,335
The budget line items represent an estimate of costs for 2016. For each year delayed, an annual escalation rate of approximately 4 percent (approximately $1 million) is anticipated. 

*Demolition costs could be higher if hazardous materials are found. 
**The required level of temporary facilities would be evaluated in the proposal process.
***Other costs include architectural and engineering plans, utility connections, furniture, fixtures and equipment, proposals for construction and contingencies.

HOW WOULD IT BE PAID?
Costs would be paid through a voter-approved property tax levy to support a general obligation bond. The project is estimated to take approximately three years. The upper limit on the voter-approved bond would be $23.1 million, and would give the city the right to borrow. The actual project costs could be less as a result of design and proposals for architecture and construction. Following are two payment options: 
  • City could issue the entire bond amount of $23.1 million if the voters approve the bond
  • City could choose to use bond anticipation notes*  to incrementally fund the project         

*A bond-anticipation note is a short-term debt instrument issued by a state or municipality to borrow against the proceeds of a bond. A bond anticipation note is often used to initiate the funding of a large construction project. Notes would be issued as project costs were incurred and for amounts needed for specific elements of the project. If the city were to select this option, it is anticipated that the first assessment would be sometime in 2019, after the project is completed. 

 

HAVE OTHER FINANCING OPTIONS BEEN EXPLORED?
The mayor and staff have been exploring options for the past two years. The city does not have the financial capability to lease, purchase or construct new facilities. The following funding options were considered:
  • General Obligation Bond                                                                                              General obligation bonds are debt instruments, issued by states and local governments to raise funds for public projects. What makes a general obligation bond unique is that it is backed by the full faith and credit of the issuing municipality using legally available resources, including tax revenues, to repay bondholders. A general obligation bond finances projects that do not produce income but provide services for the entire community. 
  • Revenue Bond
    Revenue bonds are secured by a designated revenue stream. They finance income-producing projects. The income generated by these projects pays bondholders their interest and principal. Projects funded by revenue bonds serve only those in the community who pay for their services. Examples would be toll roads or water and wastewater utilities. Essential services facilities do not qualify.
  • Local Improvement District (LID)
    A local improvement district is a method of financing capital improvements that provide a benefit only to the properties within the boundary of the district. Essential services facilities do not qualify.
  • Urban Renewal Agency Financing
    The Ketchum Urban Renewal Agency (KURA) is a separate agency and must vote and agree to all funding commitments. Urban renewal agency funding for city hall facilities has been a controversial issue in Idaho for several years. Currently, urban renewal agencies in Idaho are allowed to fund "public buildings," which includes city halls. Urban renewal agencies are also permitted to fund studies, plans and infrastructure for public facilities. The KURA has funded the space study for this proposed project. Ketchum's urban renewal agency is small and has less than $1 million in its capital improvement budget.
  • Lease to Own
    The city can legally enter into a contract for a duration of no more than one year. If the city wanted to consider a long-term lease, it would have to go to the voters for approval. The approval of a long-term lease is not feasible because there is no revenue stream to support it.
  • Local Option Tax (LOT)
    The local option sales tax prohibits using funds for this capital project. Voters could approve an amendment to the local option tax to add essential services facilities, thus giving the city a dedicated revenue source. However, there would be no guarantees on the revenue because of the fluctuation in the tax, which would put the city at risk for monthly payments.
  • Two-Year Override Levy
    A temporary two-year override levy could provide a total of $6,470,250, with an estimated yearly impact of $258.81 per $100,000 of taxable value on Ketchum property owners. The amount is less than is needed for the essential services facilities. However, the city could propose an override levy, exceeding the maximum levy allowance of .004, or a permanent property tax increase, both of which must be approved by voters.
WHAT WOULD THE INCREASE IN TAXES BE?
If City Council approves placing the bond measure on the May 17 ballot at its Feb. 16 meeting, the possible terms of the bond would be discussed and determined. The anticipated annual cost to taxpayers for each $100,000 of property value could be as follows:
  • $47.81 per $100,000 over a 30 year period,
  • $51.77 per $100,000 over a 25-year period, or
  • $59.17 per $100,000 over a 20-year period
COULD WE REMODEL THE EXISTING BUILDING?
The available space cannot accommodate the current space needs of all city operations. Money has been spent remodeling the building over the past several years. Another remodel will not correct the issues, some of which are listed below:
  • Building cannot be retrofitted to meet the requirements of the Americans with Disabilities Act as it could not accommodate an elevator
  • There is no structural capacity to add a third floor
  • The building footprint does not maximize the space of the property
  • Plumbing, electric and other mechanical systems would need to be replaced
COULD OFFICES BE MOVED TO ANOTHER BUILDING IN TOWN?
Police, city operations and the emergency operations center could move to another location, however, there are specific requirements that must be met.  For security reasons identified by the Federal Emergency Management Agency, parking adjacent to or under an essential services facility must be restricted and the proximity and type of tenants that share a building must be controlled. Also, best management practices advocate co-locating staff, which improves communication and increases productivity. Finally, shared space avoids the need to provide duplicate systems, saving taxpayer dollars. These factors make it difficult to convert an existing building to an essential services facility.

WHY WERE CITY PROPERTIES ASSUMED FOR THE NEW FACILITY LOCATIONS?
The 2016 space study considers demolishing the existing building and constructing a new building for police and city operations/emergency communications at the current site at East Avenue and Fifth Street. The study (as did the 2001 study) identifies a city-owned property in the light industrial district for the fire department.
 
These two city-owned properties were considered for two reasons: 1) to achieve the lowest cost estimate, and 2) until the city has funding, there is no ability to enter into discussion or consideration of other properties.

IS IT IMPORTANT FOR POLICE AND CITY OPERATIONS/EMERGENCY COMMUNICATIONS TO BE DOWNTOWN?
As shown in the Ketchum 2014 Comprehensive Plan, citizens overwhelmingly identified downtown as the center for employment, cultural, commercial and civic uses. Ketchum is one of the city's largest employers, bringing a year-round workforce that supports the city's economy. An average of 75 people per day visit the police department, city clerk, planning and building department and administrative offices.
 
Police Chief Dave Kassner emphasizes the importance of the police department being located downtown. Officers practice community policing, are approachable walking and biking through town, visit the schools and conduct safety programs for children. 

WOULD THE NEW FIRE STATION LOCATION SLOW RESPONSE TIME SINCE IT'S NOT IN THE DOWNTOWN?
The Fire Chief has conducted an analysis and determined that the proposed location will not impact response times within the community. The new fire station will be state of the art and better support the city's firefighting services now and in the future. 

WOULD THE NEW BUILDING INCLUDE A PARKING GARAGE FOR PUBLIC PARKING?
No, because parking adjacent to or under an emergency services facility must be restricted for security reasons identified by the Federal Emergency Management Agency.

WOULD THE PUBLIC BE ABLE TO USE THE FACILITIES FOR MEETINGS?
Yes, the lobby, chambers and conference space would be flexible public space. This type of centrally located space also would provide opportunities for meetings that existing facilities cannot accommodate.

WHAT IS THE SIZE AND USE OF THE CURRENT cOUNCIL CHAMBERS?
The current Council chambers seats 50 and is out of compliance with the Americans with Disabilities Act. The room is used by a variety of organizations. Some are listed below:
  • Blaine County Housing Authority
  • City Council
  • City meetings and workshops
  • Emergency Operations Center*
  • Fire Department training
  • Idaho Mountain Express Pizza and Politics
  • Inter-agency emergency communications training 
  • Ketchum Arts Commission
  • Ketchum Energy Advisory Committee
  • Ketchum Urban Renewal Agency
  • Mountain Rides
  • Planning and Zoning Commission
  • Public educational meetings
  • Sun Valley Air Service Board
  • Town Hall Meetings with Federal Representatives and State Legislators
  • Webinars
*Council chambers was used as the Emergency Operations Center during the Castle Rock fire. The Bureau of Land Management, U.S. Forest Service, Homeland Security, Law Enforcement and County officials gathered to provide support to incident command. The Castle Rock fire burned for 20 days across 48,520 acres of Smoky Mountain backcountry.

WHERE WOULD CITY OFFICES BE WHILE THE BUILDINGS ARE CONSTRUCTED?
This would be determined once there is funding. The space study considered relocating all city functions to a city-owned lot for the purposes of estimating costs. Modular offices/trailers could house administrative offices. Examples of those types of buildings can be seen on this link.

The police and fire department vehicles and equipment could be stored in a modular or tent-type temporary facility. Click here for an example of these types of structures. Emergency services response times would remain the same and potentially improve.

IS STAGING OR PHASING THE PROJECT AN OPTION?
Phasing construction of the police, city operations/emergency communications and fire facilities has been suggested as a way to reduce the project cost. At this time, it is premature to say if phasing will save money. The answer will come when the project is put forth to contractors for a proposal. Contractors will be asked to provide alternate proposals; one to phase construction of the projects, and one to proceed with both at the same time. This process will provide a definitive answer if phasing will reduce projects costs.

WHO IS ELIGIBLE TO VOTE?
All Ketchum registered voters are eligible to vote.

tours
We invite you to tour the facilities. To schedule a tour, call 726-7803 or email participate@ketchumidaho.org . The 2015/16 Ketchum Essential Services Facilities space study can be found at ketchumidaho.org/ESF.

BUSINESS NEWS
Buy Local 
Thanks to the Sun Valley Film Festival, which is encouraging visitors to shop locally through its Pass Perks program. The city is providing Buy Local gift tags and window signs and would be glad to do so for other similar promotions. Contact participate@ketchumidaho.org for tags!

Increased Air Services Brings More Visitors, Revenue
Increased air service during 2015 brought 12,500 first-time visitors, according to Fly Sun Valley Alliance. The total estimated economic impact of air travelers was $115 million, according to a recent survey.

Attend Mountain Rides Board Meeting 
The Mountain Rides board meets the third Wednesday of every month at 12:30 p.m. This month's meeting will be Feb. 17 at Ketchum City Hall. View meeting agenda here
 
WHAT WE'RE READING
NEWS AT A GLANCE
Mayor Jonas on  KDPI Radio - "For A Cause" 
Tune in to KDPI-FM 88.5 to hear from Mayor Nina Jonas. The half-hour program is held on Tuesdays following Council meetings from noon to 12:30 p.m. This week's show will be on Tuesday, Feb. 16, at noon, prior to the City Council meeting because of the holiday. Listen live at 88.5 or at www.kdpifm.org.

City Receives Grant to Improve River Access
The city of Ketchum, in partnership with the Idaho Conservation League, has received a $14,900 grant from American Rivers to improve public access to the Big Wood River. The "Happy Trails" project will improve trails and riverside conditions, remove noxious weeds, add signage, mark parking areas and reroute unsustainable trails. Funds will also be used to create a map of river access points. Click here for press release.
 
Susan Buxton Named to New Position
City Attorney Susan Buxton has been named administrator at the State Division of Human Resources. The city greatly appreciates the expertise and service Ms. Buxton has provided over the past years. The city will be issuing a proposal for legal services. 
 
Climate Change Report Set for Next Week
A report on the Big Wood Alternatives Futures Project, conducted by the Pacific Northwest Climate Impacts Research Consortium, will be given at the Blaine County Community Campus in Hailey on Thursday, Feb. 18, from 2-4 p.m. Click here for the agenda. The city of Ketchum has been participating in the study.

Property Tax Reduction Filing Deadline
The deadline for filing property tax reduction applications with the county assessor's office is April 18.  Call 788-5535 or visit the   State Tax Commission for more information.

MEETING INFORMATION
City Council 
Attend the next City Council meeting at 5:30 p.m. on Tuesday, Feb. 16. City Council meetings are held on the first and third Mondays of each month, and on Tuesdays after a Monday holiday, in Ketchum City Hall. Click here to see the agenda and staff reports or scan the QR code.

Planning and Zoning Commission 
Attend the next Planning and Zoning Commission meetings at 5:30 p.m. on Monday, Feb. 22. Planning and Zoning Commission meetings are held on the second and fourth Mondays of each month, and on Tuesdays after a Monday holiday. Click here for agendas and staff reports or scan the QR code.

Public Comment 
If you cannot attend the Council or P&Z meetings and have an opinion, please submit your comments via email to participate@ketchumidaho.org. Your input and engagement is encouraged. All comments will be reviewed. 
Subscribers
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City of Ketchum
208-726-3841