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HomeMy WebLinkAboutCity Council Committees - Parks and Human Services - 11/17/1992 e Brend "ober City 4rk Parks Committee Minutes November 17, 1992 Councilmembers Present: Jon Johnson and Christi Houser. Staff Present: Tony McCarthy, Barney Wilson, Roger Lubovich, May Miller, Helen Wickstrom, Robyn Bartelt, Patrice Thorell , Tim Bond, Wayne McDonald, Joseph Bartlemay, K R Schamber, Ted Neff, and Pam Rumer. Others Present: Ted Loudenbach, Jim Freitag, Jean Parietti , Bill Doolittle and Don Wickstrom. MANAGEMENT SERVICES CONTRACT PROPOSAL FOR RIVERBEND GOLF COMPLEX Because Councilmember Bennett was not present due to illness, discussion of the Management Services Contract Proposal was deferred to the next Parks Committee meeting. FINANCIAL ANALYSIS OF RIVERBEND GOLF COMPLEX ALTERNATIVES Tony McCarthy reported that because of a downturn in revenues at Riverbend, the Finance Department cut back the 1993 forecast for the complex. He anticipates an operating income of $772,730 this year at Riverbend. McCarthy explained that his analysis is based upon the Golf Advisory Board's assumption that the City would generate an additional $100,000 in revenue under a Golf Director. He said that the only way a Golf Director can save the City money is to cut salaries, and added that the City will not know if a Golf Director can save money until an R.F.P. is sent out and proposals are received. Ted Loudenbach was concerned that the original purpose of the Golf Advisory Board's study was to improve the entire complex, but emphasis has shifted solely on the financial aspect of the complex. He said the City is giving away money that belongs to the citizens of Kent if a contractor is hired. Barney Wilson said that if Riverbend were allowed to operate in an efficient and businesslike manner, the complex could bring in even greater profits. He quoted a source which indicated that the profit of a self-operated facility should be at least 20%, and that a leased facility will hardly ever produce more than 15%. Wilson reported that Riverbend's profit is 30.4% and increasing. Wilson proposed ways in which City operation could reduce expenses and increase revenues, such as reducing administrative costs, stabilizing maintenance costs, and increasing participation. He suggested ways to accomplish each of these, and discussed his one page proposal . Wayne McDonald commented that the Men's and Women's Clubs are pleased with the service they receive and the merchandise at Riverbend. The only improvements they would like to see are to the condition of the golf course. � f Parks Committee Minutes November 17, 1992 Page Two Bill Doolittle suggested that perhaps the City should run the complex the way it is and subcontract out the maintenance. Wilson agreed that it is a possibility. Loudenbach told the Committee that they have raised some serious concerns with the citizens of Kent regarding the golf complex. The meeting adjourned at 7:10 PM. e Brenda.caher City 4rk Parks Committee Minutes November 17, 1992 Councilmembers Present: Jon Johnson and Christi Houser. Staff Present: Tony McCarthy, Barney Wilson, Roger Lubovich, May Miller, Helen Wickstrom, Robyn Bartelt, Patrice Thorel1 , Tim Bond, Wayne McDonald, Joseph Bartlemay, K R Schamber, Ted Neff, and Pam Rumer. Others Present: Ted Loudenbach, Jim Freitag, Jean Parietti , Bill Doolittle and Don Wickstrom. MANAGEMENT SERVICES CONTRACT PROPOSAL FOR RIVERBEND GOLF COMPLEX Because Councilmember Bennett was not present due to illness, discussion of the Management Services Contract Proposal was deferred to the next Parks Committee meeting. FINANCIAL ANALYSIS OF RIVERBEND GOLF COMPLEX ALTERNATIVES Tony McCarthy reported that because of a downturn in revenues at Riverbend, the Finance Department cut back the 1993 forecast for the complex. He anticipates an operating income of $772,730 this year at Riverbend. McCarthy explained that his analysis is based upon the Golf Advisory Board's assumption that the City would generate an additional $100,000 in revenue under a Golf Director. He said that the only way a Golf Director can save the City money is to cut salaries, and added that the City will not know if a Golf Director can save money until an R.F.P. is sent out and proposals are received. Ted Loudenbach was concerned that the original purpose of the Golf Advisory Board's study was to improve the entire complex, but emphasis has shifted solely on the financial aspect of the complex. He said the City is giving away money that belongs to the citizens of Kent if a contractor is hired. Barney Wilson said that if Riverbend were allowed to operate in an efficient and businesslike manner, the complex could bring in even greater profits. He quoted a source which indicated that the profit of a self-operated facility should be at least 20%, and that a leased facility will hardly ever produce more than 15%. Wilson reported that Riverbend's profit is 30.4% and increasing. Wilson proposed ways in which City operation could reduce expenses and increase revenues, such as reducing administrative costs, stabilizing maintenance costs, and increasing participation. He suggested ways to accomplish each of these, and discussed his one page proposal . Wayne McDonald commented that the Men's and Women's Clubs are pleased with the service they receive and the merchandise at Riverbend. The only improvements they would like to see are to the condition of the golf course. Parks Committee Minutes November 17, 1992 Page Two Bill Doolittle suggested that perhaps the City should run the complex the way it is and subcontract out the maintenance. Wilson agreed that it is a possibility. Loudenbach told the Committee that they have raised some serious concerns with the citizens of Kent regarding the golf complex. The meeting adjourned at 7:10 PM.