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HomeMy WebLinkAboutCity Council Committees - Parks and Human Services - 11/14/1990 M -^ CiMare le�kJens'*n ' L� � LB � C D CITY of 10ENT JAN -3 1991 PARKS AND RECREATION DEPARTMENT CITY OF KENT November 14, 1990 CITY CLERK Councilmembers Present: Steve Dowell, Chair; Jon Johnson. Staff Present: Ed Chow, Barney Wilson, Don, Olson, Helen Wickstrom, Jack Ball, Cheryl Fraser, Robyn Bartelt, Lea Britting, Tom Brubaker, Carol Morris, Karen Ford, Becky Fowler, Rose Nelson, Robb Dreblow, Alana McIalwain, Steve Szydel and Pam Rumer. Others Present: Tom Philpot; Donald Baer, Computer Place; Doug Schwab, Riverbend Men's Club; and Lyle Price, Valley Daily News. PROPOSED CITY OF DENT ICE ARENA Mr. Philpot told the Committee that driving his ten year old daughter to Highland Skating Rink in North Seattle five mornings each week prompted him to come before the Parks Committee with the idea of an ice arena in Kent. Philpot said that Kent is such a progressive and rapidly growing area, it is hard to comprehend that Kent does not have such a facility. ' He said *there are 53 facilities in the metropolitan area in the Minnesota-St. Paul area, which is no larger than Seattle's circumference. When asked if there is a facility at the south end, Philpot said there is Sprinker Arena in Spanaway, which is 'run bar Pierce County Parks and Recreation Department. " Philpot suggested that in 'order to arrive at a break-►even budget, the City could augment funds by renting out concessions and bingo. He spoke with the engineering firm which built Spri,nker, and they reported the cost ,for the building and rink, exclu4#g land costs, to be $5,000,000. Wilson reported that he had staff collect rotation. He contacted Pro Ice and received an estimate of $2' #000 to build an arena in this area with 1,500 seats. Wilson ,' that he has opened a new filel' on this issue. Dowell suggested that the Parks Department continue to expand information on the arena to see if the need is , feasible, what financing possibilities there are and what tho interest is. Johnson concurred. k, Parks Committee Minutes November 14, 1990 Page Two Wilson said that he will have the file updated for the January Parks Committee meeting. Philpot added that he would like to see the arena a* a bond issue rather than out of" the operating budget. In response to Wilson's question, Philpot answered that he pays a fee of $5 per child per hour for use of the ice rink;., a fee of $9 per 15 minutes for the ice coach; and commuting expenses. Philpot mentioned that the cost for teams to rent a;i ice arena is $135 per hour. Dowell advised Philpot to keep in touch with; the Parks Department for further information. GOLF COMELEX FEE QTRUCTURE Wilson said that staff began talking some time ago about what is happening at the golf course. The Department promised bonding people that the course would clear $560;000 a year after maintenance and operations and it is doing that. Wilson said that the complex will be at $1,000,000 after taxes this year. Wilson explained that the complex started out in hole with the ' construction cost overrun, start-up of merchaildise, building fixtures for the ' Driving Range, Kent sign, paym nt of the old contract from the Par-3 and Driving Range; $50,,0'00, to Finance, $10,000 to Law; and $10,000 to Personnel •a year.. Wilson feels that if staff can pay the $56000 .j;jthey should be complimented. He; pointed out that Riverbend pokxliuore in taxes a year than some courses make ($200,000) . Wilson said that it is nice to round off fees at the register but the complex is losing 8.2% per green fee in sales tax. He covered the existing and proposed rates (see attachment) . ' Wilson said he feels that the growth of the comply will increase lot in operatip�n next year (the complex a*i6ipates less maintenance costs) . He calculated that if tax apdjan 8% growth were added, the result would be a $4,000 growth in,, income for next year. I Parks Committee Miputes November 14, 1990 ; Page Three Wilson stated that'he. is not in a position to propoge that the- tax be added at this time. He suggested that if the Personnel, Law and Finance Departments could hold their charges until the course becomes an established enterprise .fund, and the City would make a loan to be paid bagk over a 5-year period., the complex', would be in better shape. In response to DowelllIs question, Wilson stated that; the revenue this year 'is $2.1 . million before taxes, and expenses are $1.6 billion. He pointed out that the $1.6 billion in ex1penses does not include charges by Finance, Law and Personnel, for, the , bonded indebtedness. Dowell asked Wilson for the figure for construction overrun. Helen Wickstrom did not have the exact figure, but Wilson listed what' it entailed for Dowell: merchandise . $196,000 tee-time $, 21,000 roof repair $ 18,000 renovation of driving range building $ 12,000 tees and mats $ 15, 000 tables and display equipment $, 12, 000 fixtures and other displays $ 12,000 -software and cash registers $ 10,000 Total $300,000 Don Baer commented that it is not a question of whetter the City is adding tax, as the complex has been adding tax all along. He said that the question is if the complex should increase the fees. He encouraged the City to approach the issue that way* Dowell said that he feels the City is being shortchanged when the we say that the price is $16.50, and then back the tax out of that. Wilson introduced Doug Schwab, who reported thAt ,most courses include tax as a whole price. He said that $ ' ,presented the proposal to the Meri's Club as a formalized addi"i.q ,t,s4les tax, and it went over well,. ' Dowell said that ,the City got into a bind on thy.* cause of the assumption of soma that rates would add'up to a coItain figure at the end of the yeor, but than sales tax,had to be tauten from that figure. Wilson pointed out that the complex has adAi400al play and ` maintenance costs to pick up because staff 11 di-jet expect the course to make $1 million the first year, when , #v# it is making $2 million. ;' Parks Committee Minhtes November 14, 1990 Page Four r Dowell requested some additional figures. Wilson suggested that the committee needs to act on this by the first of the year so that the rates will become 'effec` ive. He said that in all fairness, it should be placed on the Pecember Parks Committee agenda and public input invited. Dowell Ooncurred. Johnson suggested ihat the complex also needs to 16ok at ways to reduce expenses. Wilson mentioned that the costof aaJ�ntenance is reduced each year. Johnson further suggested that the Kent sign should have, never been charged to the golf course budget, as the sign does _riot benefit the golf course. Dowell said that he doubts if the City would save the $70,000 in charges for Law, Finance, and Personnel if the golf ,course was not there. He suggested that the City take a close look at the figures, so that there is no problem when the Council looks at them. He stated- that unless one understands the accounting procedures, it can'be difficult for a councilmember to, make .proper judgments on something being done in the Parks Department or at the golf course. Johnson pointed out that the golf course is a capital asset, and once the bonds are, paid off, it will generate a lot of revenue for - the City that will' not be spent on the golf course but throughout the City. In response to Dow4ll's question, Wilson answered th!4t ,the $560,000 per year expense includes principal and interest. Dowell also questioned whether land interest is included. He pointed out that the city's method of accounting does not show land as an asset. He stated that 'the City would realize a !return if, it were to sell a portion of the land. Johnson suggested i that the City also needs to ,look;-at the golf course as open spice that is generating revenue, . i Dowell clarified for Chow that he feels that the•,,';d t should be paid off but should be realistically painted on p*por. He feels that there are a number of things that the paperwork does not show and that wrong decisions will be a detriment to the Parks Department, the City 'and citizens. y r Parks Committee MiMtes November 14, 1990 Page Five Schwab added that the golf complex is a revenue generating project to the City and that it would serve the interest of the City and community to take a broader view. He feels the City should spend the money now, as the complex needs to be mainta-4n4d. Schwab commented that Kent is far ahead in the golf industry and word is getting around. He, said that the figures do not loot good now, but the City and staff are doing an excellent job there. Dowell questioned whether improvements to the driving range made the budget cut. B4rtelt answered that improvements' made the cut, but were not recommended to be funded because the golf complex is an enterprise fund. Dowell stated that he is concerned that the Council, priortizes issues lower. Johnson stated that if he had to make the decision now, he would not support increasing the golf fees because he feels there will be enough growth in use of the course to bring in enouo revenue. He also suggested that the City should look at some t Ungs that are charged to the golf course budget that should not- be. Bartelt pointed out that the complex will , be agile to reduce expenses because of one-time equipment purchases and improvements. Dowell requested that staff get more numbers an&,-paint a good picture. Baer suggested that the City should look at prices realistically to keep up with the market. If* not, he said that the City is leaving money on the table. IOOF HALL UPDATE Wilson said that the City has several opt'ons rernig purchasing the IOOF Hall. He reported that Tony M CarthY' .d ' Pets that the City not consider Option 3 (see attachm t) . Said that he and Chow have discussed that no matter wat ha ' 1' 'the City has affected the lessees in that building. Wilson discussed the total estimated budget. The , id fellows are asking $250,000 for the land and building. Wilson reminded the Committee that the purchase of the IOOF Hall has been a target issue since 1962. f k' Parks Committee Minutes November 14, 1990 - Page Six r Wilson recommended that the City choose Option 1. 0e suggested working with the leessees and, phasing it out when *,t is best for them. Wilson also mentioned liability of the condition of; the building. He underlined that the City will have some respons4mility to keep the outside of the building in shape as long as the lessees are there. Dowell asked if the; present lessees can sublease. W ,spn responded that there is nothigng that rules against it, but frco talking with the oddfellows, they will not allow that. Wilson mentioned the disadvantage of relocating ,tho tenants, and recommended leaving them there. Robb Dreblow agreed that the more practical option iso %tcility ion 1. He suggested that the Arts Commission could use thei for events, as they are; currently renting non-City facil*tires. Dreblow pointed out that the facility is centrally locatesi', in Kent. He mentioned that some Parks Department classes are c*rtently being held in non-City oVned facilities. Wilson said that he did not list all of those advant4gea because he hasn't had a 'structural engineer investigate the lbx4l4ing yet. Wilson noted that Councilmember Woods would like the,,,,,issue to go on to Council for their decision. Wilson pointed out that the 'City had a late look,,at the leases because he did not, have access to them until the ; uncil showed some interest in purchasing the building. Wilson mentioned that the sales agreement is date d vOmber 30 and that the City has Out it off as long as possiblo. Dowell asked if there are any plans for the buil as far as how the property sho4ld be used. Wilson resp at he can visualize a 20' walkway, with two private eft there. Dowell questioned ! if November 30 is a firm 31e. Wilson reported that the real estate agent and thefellows- are expecting it to be ;on the council agenda for theLaegcnd meeting in November. Dowell asked where the City would get the monq � � Chow answered that the City has $450,000 as contingency in a ,"2.P. and that the City may deplete that if the Counciliso ,de :114,em", '� I 'A . .7a. Parks Committee Mirtes November 14, 1990 Page Seven Tom Brubaker commented that he is concerned that tho building may not meet code. He again mentioned the considerab�,,w expense to maintain the building if it does not. ; Johnson questioned how it will affect the less'Oe6 if it is determined by building officials that the buiUUd heeds to be condemned. He asked if the City can evict the lesnoso or if they are grandfathered in. Wilson responded that the CiV Will have to buy out their leases. Brubaker suggested that a structural inspection be cc p�eted before the Council makes a decision. Johnson asked if the City will, have to remove bostos if it becomes �a propertyrowner, as. it will be a major dis imption to the lessees. Helen Wickstrom reported that the asbestos Iinppector said the City will not have to remove asbestos to contipuO use of the building. It will have to be removed only if thee! City• does any remodeling. Dowell again expressed his concern with the November 30 deadline. Chow suggested writing and submitting to Councils 4$; an option an Earnest Money Agreement with acceptance based uppfi ,th+ structural inspection. Wilson said that he will meet with the Oddfellowo and the real estate agent at thl latter part of the week. He cxo ¢tented that the issue can always be .pulled from the agenda if 'tl ;City is not ready. Don Baer commented, that the downtown merchants hav, real concerns with the project. They are not opposed to the i0a, but would like for the City to meet certain conditions. He .,requested that the City have a plttn for the grand scheme and urged„toe Council to set aside monies for 1991, or when it is most adva#tageous to the community. He suggested that the City create a p4pt{ure/plan for the project. The Committee consented that the City should h ° ;stse schematic plan of the possibilities for the project. r i k Parks Committee Minutes J3 " November 14, 1990 ' Page Eight IV. SALARY Wilson showed on overheads what has happened since 19 f 6 to the four major departments in the City (Police, Parks, Firo,, lic Works) . He pointed out that the Parks Director's salary%i,' has slipped $600/month behind ot-her •major departments and questaion0d why this has happened. Wilson reported that Parks Department revenue cont*nues to grow since 1985. He noted that the consultant only spent eight minute0 to interview him, •and that the interviewer was actually one of th'�'" consultant's subordinates. After talking with the interviewer, WiIs n found out that he called Auburn and asked what the city pail heir Parks Director. He stated that the ;interviewer had � zo,,L ,Aoea whether Auburn has a •Senior Center, G©lf Course, etc. to ru . Wilson said that this is the first time he felt i�� necessary to come and talk about; his own salary. He found it iooz ', difficult to do. He pointed o-qt that he is not asking for his' ,_salary to be increased but for his position to be left at a Leve4, 2,. Wilson discussed several reasons why he feels the ,Pa:� Department is a major department- number of purchase orders v,88J!fu11-time and 286 part-time employees; budget expenditures; and -�-.eVenues. He suggested that the parks Department should be clusterod j with Public Works, Police and ?ire. When compared to ojther cities, Wilson reported tha# Kent's Parks Department has•mores income than Auburn and Renton put together. He feels that income , is directly related to the fuc#ion of the department. Wilson stated that outside funding is a big part of ,a department's function, and pointed out that•Kent has never had a-;;,bond issue: 12%; City funds 88%ioutside funds Wilson said that regarding scope, Bellevue is taw, city which compares to the Ci y.of Kent. He stated that at I `; •' oungsters, the Kent School District is one-half the size, o ;, �ie City of Seattle. M 1 L � Parks Committee Min tes November 14, 1990 , ��' Page Nine r Don Olson commented that he received the report fro � Xr- Kenny on October 30 and took� it to the department heads on, 3N'o4apber 13. He added that the report was also taken to Operations (vo Noovember 13. Olson reported that the Internal Personnel Committa"o recommended that City go with the recommendations of -Kenny Cons*,t�ng. Wilson said that he;has considered leaving the City o ,Xent, but at his age, he would like to finish some of the thiiitgs oe has started and remain a part of the team', here. Chow stated that eaoh department head had an opportun140d ty to express dissatisfaction with the original findings. III a that the process was followed ind the department heads coosq-1ted with the consultants. Dowell asked if Gilson had an opportunity to meet with the consultant personally. Wilson responded that the derrtment heads met as a group with the consultant. Dowell asked the ;names of members of the In 7. Personnel Committee. He questioned why two members of the Inge ^hal Personnel Committee were allowed to vote and confirm a ch nge in their classifications. Dowell said that the determinations have an efkectj,on� the morale and attitudes of epployees. He requested that Doi*-Olson and Ed Chow meet with Wilson before the next Council meet n4 to try and resolve the issue. • a COMPLETION OF ERNICTS Helen Wickstrom informed the Committee that the dop I; �ment will be submitting as Consent Calen4or items the Resource 'c�hen Remodel and Handicapped Accessibility projects and the Kiw�g� Tot Lot #4 project as complete on a future Council agenda,. � ere was no objection by the Committee. l�' I a tw I Mti 'a PARKS Cq dITTLP MSRTUS , NoveMbO 14, 1990 Attendance Name AddressIDepartient mue No. 2 3. 4. A Ei�l FL• 2� d ;��..' �� 5 -TO-M Pk+ I L tv 6. 7. 8. _3 77 `f 9. 6s ewL 3 3 10. oh SAQ, C�� MC16 C h G ,4 9 3 - bly5 13 _ 0n4-N-p n'i r 14. 15. 16. 17. 18. 19. 20. k ' 21. 22. 23. ; I ry�9a�Ft I e " I RIVPRB D GOLF COMPZiBX • '' � CU*RENT AND ,PROPOSED- FEED - 199,1,1 INCLUDXNGS SALTS TAX CURRENT INCREASED REVENUE 18-HOLE COVRSE GREEN FEES Weekday For 18 holes 15.00 16. fl For 9 holes 10.00 ll.,001 Weekend and Holiday For 18 holes 18.00 19. fl ', 77,528.00 For 9 holes 12.00 13.'901 Monday and Tussday- Senior Rates For 18 holes 12 .00 13.60 For 9 holes 8.00 9.00 POWER CARTS For 18 holes 16. 00 �.$. 0 10,358. 00 For 9 holes 8.00 9.� 01 CLUB RENTAL 10.00 1240 1,016.00 PULL CARTS For 18 holes 3 .00 4*001 6,563.00 For 9 hole$ 1.50 "0 95,465.00 • r 'S�3 RIVERSEND GOLF C04PLEX ( CURRENT AND PROPOSED FEES - 1991 INCLUDING SALES TAX CURRENT PROPOSM INCREASED REVENUE PAR 3 COURSE GREEN FEES Weekday First 9 holes 4.00 5.00 Second 9 holes 3.00 4:00 Seniors Over 62 and Students Under 16 First 9 holes 3 . 00 4.00 19,500.00 Second 9 holes 2. 00 3.00 Weekend and Holiday First 9 hales 5.00 6.00 Second 9 holes 4.00 5.00 CLUB RENTAL . 3.00 5.00 5,229.00 BAG RENTAL 1. 00 3.00 42. 00 PULL CARTS 1. 00 2.00 2,943.00 TOTAL $ 27,714. 00 DRIVING RANGE BUCKET OF BALLS 3.50 4.00 60,936.00 CLUB RENTAL 1.00 2.00 5, 016.00 MINIATURE GOLF Adults 2.50 3 .00 h Children- under 12 1.50 2.'00' . 7,544. 00 Seniors over 65 1.50 2. .; TOTAL,, $ 73,496.00 GRAND TOTAL, $196,675.00 s: � ► ' r r � � y r �> ra �'• 1 t c+� f��`F J �Ug I 14 , .~ •, F A Miry i CITE' OF KENT PA�KS AND REC� EATIQN DEPPTI ENt, i a 3j , t� October 30, 1990 TO: Mayor;, City Council and C4ty Administratton "! Members of the Internal Budget Committee' ' , 1 - FROM: Barney Wilson, Director of Parks and Redreat�oo SUBJECT: IOOFiHALL PURCHASE 1' In early 1960, the JohniGraham Plan suggested the purchase A .F lition of the IOOF Building (TitusvOle Building) located at 316 West Npmvleet in Kent. In the past, any attempt to purchase the building has beeq,, ,wJth resistance from the IOOF members. , ;` Al Update: The Titusville Lodge No. 34 (IOOF) has now signed :',soles agreement to sell the building to the City for $250,000, The King County assessod value of the building and lot is :$27,4j,4,00 You should be aware that the size of the building is ther;sr9**00 ,for the high value. The City plans .to demolish the building after-all obli it i�ons to the two lessees are met. The present sales agreement is null and void after Novembers G. 1990. A realistic budget forJhe project would be: j $ 2$0,000.00 Purchase 542.48 Closing Cost $01 000.00* Lessee Buyout a04, Rqlocation g0,000.00* Asbestos Removal 32,000.00 Building Demolitlga;,� 5,QOO.00 Contingencies $ 3p87,542.48 Total EstimateO,, t * estimated Mayor, City Council , City Administration Members of the Internal Budget Committee October 25, 1990 Page Two As I view the Kent City Council's 1990 Target Issues, I see the proposed project .� relates to the following issues: Top Priority 2. Renew and Revitalize Downtown 3. Develop a Park System 4. Plan for Kent's Future Hirsh Priority 5. Enhance Community Safety 2. Promote City Pride and Image In closing, may I compliment the Administration and City Council for their . continued interest in downtown Kent. . I believe this project would complement the past and future improvements of our downtown core area. Public space is essential to downtown survival . t CITY OF KENT 'x�` ' PARKS AND RECREATION DEPARTMENT,,, ' ISSUES AND OPTIONS IOOF BUILDING PURCHASE PROPOSAL: Purchase building and lot. OBJECTIVES AND FACTS: 1. The City has had interest in purchasing the building i .0e* past. 2. The building and lot are now for sale. 3. One lessee (No. l) has three years with two- five year;joptions to renew. 4. Second lessee (No. 2) has three years with one- five yew,I opt.ion to renew. 5. Both lessees (tenants) now contribute to our downtown bwjinjess activities. 6. Lessee No. 1 pays $425 per month and has indicated,t dOsiretto stay. He wants to be downtown. 7. Lessee No. 2 pays $400 per month and . has indiatl' hat she likes downtown. She likes the amount of rent she now pAy$` ' j she has an interest in relocating to the East Hill of Kent. 8. We have several options with advantages and disadvoltaoisjto consider. a ,a a 1 ,df OPTION I: City buys the building and allows the lessees to continue. ADVANTAGES: 1. No cost to the City to buy out lessees and/or relocate tho, two businesses. 2. City, as landlord, would receive $825 per month from th ..lessees. 3. The City would utilize the upstairs portion of the building., 4. Keeps the two business operations- downtown. 5. No disruption to the present operation of the two businesses. DISADVANTAGES: 1. The value of this project will not be realized until the building is demolished. 2. Any repairs (outside- for example, the roof),would be, a responsibility of .the City. 3. The building is an eye sore. 4. The building does not meet code. This is my opinion and.-not official . We would need to check out the insurance situation. 5. Local merchants ;'are expecting the building to be 4ml,41 fed if and the City,purchases it. t i 6. The City would hive to pay 12,.8% leasehold tax to ,tj,,.,� on all income received for lease payments. This would total '$1�,i, '; r year. 7. The City's,purchose of the building and the lot woul them from the tax role, $3,699.26 per year. l �I OPTION II: City buys the building and demolishes it immediately. ADVANTAGES: a 1. Immediate impact; to downtown revitalization. 2. No maintenance upkeep or liability to the City. . 3. Could be a positive step in helping the Centennial Bu' lld" '!be successful . 4. Consideration could be given to selling a portion ',of th lrlleared property to private enterprise. 5. Helps in pedestrian movement in our downtown area. 6. Helps to beautify downtown. 7. Helps to make downtown safer i ' 8. Helps to show pride and image.- "Kent Cares." DISADVANTAGES: 1. The City would be obligated to buy out and/or rei oote-4,j two lessees. 2. The- City would play the costs '�of asbestos removal and, ll eg demolition. 3. The City would oot have the monthly income. 4. The -City would not have upstairs area to use. ��'� i.T + 1 i 1�� Ia, , OPTION III: City negotiates another sales agreement with the IOOF Lodge- to buy on time. ADVANTAGES: .a 1. Would allow the City to spend less money- upfront. 2. Could allow for other adJustments in the sales agreement'.th4t would be of benefit to the City. F DISADVANTAGES: 1. The IOOF Lodge could decide not to sell . ' 2. City would pay interest on thi contract. ; 41, I 9 i t;l" or 9 'd {' OPTION IV: a, City drops the project. ADVANTAGES: . I. No cost to the City. 2. No decisions have to be made regarding tenants. ; 7 ' DISADVANTAGES: 1. No progress on Target Issues of•City Council . 2. Our interest shown in purchasing the building arW arty, and our investigation and findings on the lessees may advers yI' fect what the lessees can do with their businesss in the future. 3. We may lose an opportunity to e� revitalize downta '...' ,r !{ i .'j 4 - - - - --- ---- - - - ----- -- - - - - - -- - ----__.ter_ : -- -