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HomeMy WebLinkAbout 09-26-22 Work Session MinutesDUBLIN CITY COUNCIL WORK SESSION MONDAYSEPTEMBER 26, 202 COUNCIL CHAMBER 5:00 PM I Present were: Ms. Alutto, Ms. Amorose Groomes, Vice Mayor De Rosa, Mayor Fox, Keeler, Ms. Kramb, and Mr. Reiner. I Staff present were: Mr. McDaniel, Ms. Readier, Mr. Stiffler, Ms. Kennedy, Ms. Murray, Ms. Hoffman, Ms. O'Callaghan, Mr. Ranc, Ms. Rauch, Ms. Weisenauer, Chief Paez, Ms. Blake, Mr. r';rar, Mr. Hammersmith, Ms. Noble . CaDital Improvements Program (CIP) Part II Mr. Stiffler shared information on two follow up items: the cost to delay debt financed projects and CIP placeholders. Debt Financing There are two variables to consider with debt financing. One variable is the financing costs (interest rate projection), and the other is the construction costs including labor and materials. Interest rates are still historically low even with recent increases. The best predictors for future rates is the Federal Reserve fund rate. Consensus is that rate will be at 4%+ with no reductions in 2023. That does not directly translate to interest rates that Dublin would pay, Additionally, construction salary increases in June 2022 increased in an annual rate of 4.3%. The rate of growth is slowing. Vice Mayor De Rosa clarified that this does not indicate a drop in price for construction materials, but rather a slow growth. Mr. Stiffler shared debt financing cost examples. $10 million debt financed for 20 years in 2023 with a base estimate of 3.5% would amount to $13,919,033. He provided a table showing project costs for delaying a project 1 to 4 years. The tables demonstrate that costs will likely not decrease. Vice Mayor De Rosa asked if there are any other projects that should be considered for debt financing other than Riverside Crossing Park. Mr. Stiffler stated that there are items that could be added for discussion. Mr. McDaniel stated if there are other projects Council is Council Ifork bession September 26, 2022 Page 2 interested in, this is the process in which to discuss those. Vice Mayor De Rosa asked about Fiber to the Home. Mr. Stiffier stated that it was in last year"s CIP and it is in process. Vice Mayor it Rosa •i that she could see progress happening in 2023 and 2024 but it is not included in this CIP. Mr. Stiffier stated that Fiber to the Home is underway and will come to Council for a decision as soon as reasonable. If Fiber to the Home is something Council wishes to bring forward faster, staff can look into that as part of the CIP process and possibly financing that in year 2 or 3 instead of year 5. 10 0 W INNIM rRIMIGIRM - -WINI-W-9 go 141MV4016 01041111L! 0 0 # .' . Mal tournaments, etc. for sports fields. We do not know exactly what the project is yet. The earliest under construction would maybe be 2025. CIP is a plan and items can shift based on priorities and needs. Ms. Kramb stated that this is still at least one year out. Mr. Reiner stated that we will have the Parks Master Plan in January and different priorities may arise from that. He likes the idea of having the money available. Mr. Keeler agreed with his colleagues and stated that the CIP is a planning document that is subject to change. Aspirationally, he would like to see the $7 million placeholder move up. He would like to accelerate that project. He sees a decent return on investment. If he could move Riverside Crossing Park dollars to Darree Fields or a sports complex, he would do so. Bridge Park is already leaps and bounds ahead of other communities and we are grossly lacking in the athletic complex area, Ms. Kramb suggested making the placeholder broader like a park enhancement. Ms. Amorose Groomes stated that this is a wise conversation if we really intend to d# something relative to the is study. Tic&,Tlayor De Rosa stated that she is in favor of moving it forward. Ms. Alutto agreed. — Consensus was provided to staff to advance "'park enhancements" two years from 2027 to 2025 and share the impacts. Mr. Stiffier confirmed Council is in favor of being more aggressive with revenue assumptions in lieu of Vice Mayor De Rosa stated that she would prefer to see the absorption ra�e. It could be a combination. Mr. McDaniel asked Council to consider any obvious changes they could suggest to staff, Mr. Keeler stated that staff is feeding Council the information in order for Council to make decisions. Ms. Kramb asked about fiber to the home and future funding. Mr. Stiffier stated that the appropriation has already been made but if there is a new funding source, that would have to be input. She asked about the crossing over 270 and any matching grants. Mr. Stiffier stated at this point, funding has been put in that is necessary for the land acquisition. We will have an opportunity to revisit the funding in the next 2 years. There is a lot of revenue that is not in this CIP. TIF and tax revenues are fairly conservative. Mr. Stiffler asked Council to consider any project with funding of more than $600,000 in 2025 through 2026. Mr. McDaniel stated that there continue to be very positive discussions with the responders to the request for proposals (RFP). More details will be forthcoming. 100! 0154 0 . - • c-Tul I —orf�-S—ess fo–n- September 26, 2022 Page 4 a regional study approximately two years ago and the City of Dublin then conducted a local housing study. Much of the discussion this evening will be a data analysis. Isaac Kwon, Principal, Urban Partners, provided an overview of the preliminary findings from the housing study. A longer document will be presented to Council with their final findings. Guidance received from Council was to do an inventory of existing housing and do a deep dive into the data. Urban Partners used a study area which includes an area larger than cor orate limits. They spoke with 70+ stakeholders ettin a diversi f # Uo--uncl'FTTZrK Session September 26, 2022 Page 5 September 26, 2022 Page 6 Dublin is forecasted to add 11,000 residents by 2040. In order to keep pace, Dublin will need Lo build 4,850 housing units. Dublin's senior households will grow by 38% by 2040. Mr. Kwon shared the 5 draft action strategy themes and looked for feedback. 1. Planning for Future. 2. Ensuring economic competitiveness. 3. Accommodating seniors. 4. Optimizing land use, 5. Enhancing the sense of community, Council Work Session September 26, 2022 Page 7 P PresidVOfficer6*or rk o ouncil