Loading...
HomeMy WebLinkAboutCity Council Committees - Parks and Human Services - 11/24/1992-ax " Brenda Jacober 1- Cit0erk dy Parks Committee November 24, 1992 Councilmembers Present: Jim Bennett, Chair; and Jon Johnson. Staff Present: Tony McCarthy, Barney Wilson, Roger Lubovich, Tim Bond, Robyn Bartelt, Helen Wickstrom,K R Schamber,Ron Leak,Herb Vess, Walt Bardsley, Carl Carlson, David Owen, Mark Leigh, and Pam Rumer. Others Present: See attached list. MANAGEMENT SERVICES CONTRACT PROPOSAL FOR RIVERBEND GOLF COMPLEX Roger Lubovich explained changes made in the proposal since the November 17 draft. He said that Bond Council will want another review of the contract. Concerns of the Bond Council were incorporated into the proposal. Those concerns include: • All revenues received at the golf complex must go to the City, with appropriate payment to the contractor; • Incentive (variable) fees cannot be greater than the fixed fee; • The Golf Director's term cannot go longer than five years. • Lubovich pointed out that the draft is only a model contract, and is not necessarily the one to be used. He stated that the City should have some input as to operating policies of the golf complex. The proposed fee compensation in the draft is based upon Portland's model. Lubovich said that the City will want to look at the mix of fees with great interest. Councilmember Johnson explained for a member of the audience that the golf course was set up as an enterprise fund and is expected to cover its expenses. However,he said the entire complex cannot cover its expenses. Doug Schwab gave some background on the process the Golf Advisory Board went through to arrive at their recommendations. The Board was challenged with determining how to integrate a Golf Director into the present structure at Riverbend in order to provide for a more efficient operation- Schwab said the easiest thing to do was to hire a Golf Director and integrate that individual into the present system, but the question arose as to whether that would solve other problems at Riverbend. The Board then decided to recommend that the City use the management contract approach to contract with someone for those services which the City will decide upon. A member of the audience pointed out that Portland is seventy-five years old, paid for, and does not have the bonded indebtedness that Riverbend has, and questioned why the Board compared Riverbend to Portland. Schwab responded that bonded indebtedness is not an issue. Wilson said that • the City would have money in its hands if Riverbend were not paying for the 1981 bonds. Parks Committee Minutes November 24, 1992 Page Two Schwab said the contract does not turn over control of the golf complex to the Golf Director. It was his opinion that it is in the City's best interest to maintain control of maintenance at the complex. Schwab said that it cost the City $125,000 to subsidize the merchandise operation for the first two years the City was in the merchandise business. Tim Bond responded by reporting that the complex sold$625,000 in merchandise this year. He did not agree that it costs the City$125,000 to subsidize merchandising,nor did he agree that the complex is losing money on the merchandise operation. He requested to see a chart with a line to show what staff are doing. Wayne McDonald questioned how the golf complex will bring in$40,000 more in lesson revenue next year under the Golf Advisory Board's recommendations. Schwab answered that this will be accomplished by hiring two more instructors who will bring in$20,000 more each. McDonald opined that there is not enough room there now for those who are already taking lessons, as there is a conflict between members of the public who want to use hitting stalls at the driving range and those who are taking lessons. Barney Wilson said that he and a financial person met to determine if the City could afford to purchase Riverbend Golf Course by selling bonds. He explained that they studied every contract in the northwest they could, and determined it would be best if the Parks Department ran the complex. Wilson pointed out that the bond covenance says the golf course must be operated by the Parks Department, and in his opinion, if it is contracted out, it is not being operated by the Parks Department. He told the Committee this will be challenged by bond holders. Wilson said the recent publicity and the bickering regarding this issue have hurt Riverbend. He suggested that Council should take a long look at the contract before making any decisions. Helen Wickstrom said she is concerned that the City will be giving away the Finance Department's projected profit at Riverbend to someone else if services are contracted out. Schwab said the contract is structured so it will reduce operating costs. He hoped the City will not take a lot more time on this decision, as he felt it is putting a lot of burden on Riverbend staff. Councilmember Johnson moved to accept the recommendations of the City of Kent Golf Advisory Board as set forth in its report to the Parks Committee, and to adopt the organizational structure for the Riverbend Golf Complex as set forth in organizational chart A-1 of the report, including the snack bar operation and janitorial operation, and further to direct staff to develop an RFP based on a contract similar to the management services contract in order to implement the Golf Advisory Board's recommendation, and to submit the RPF and proposed contract to the Parks Committee for approval. Councilmember Bennett seconded the motion. The motion passed with a 2-0 vote, as Councilmember Houser was not present. • Bennett announced that this issue will be brought before the full Council at the December 1 City Council meeting. 41 a - PARKS COMMITTEE MEETING November 24, 1992 Attendance Name Address/Department Phone No. 1. 2. J f 4 . 5. 7 8. 0 O C� 9. �?-53 11. `OP�7 d�G 12 . 13 . �% 111 ��,►�, ,���,_, � 7, 14.5. 16. 17. r� e 395 18 C7 c-" G z1-F C h 19. t 20. 21. 22 . 23 . " Brenda Jacober 1 Cit erk Parks Committee . November 24, 1992 Councilmembers Present: Jim Bennett, Chair; and Jon Johnson. Staff Present: Tony McCarthy,Barney Wilson, Roger Lubovich, Tim Bond, Robyn Bartelt, Helen Wickstrom,K R Schamber,Ron Leak,Herb Vess, Walt Bardsley, Carl Carlson, David Owen, Mark Leigh, and Pam Rumer. Others Present: See attached list. MANAGEMENT SERVICES CONTRACT PROPOSAL FOR RIVERBEND GOLF COMPLEX Roger Lubovich explained changes made in the proposal since the November 17 draft. He said that Bond Council will want another review of the contract. Concerns of the Bond Council were incorporated into the proposal. Those concerns include: • All revenues received at the golf complex must go to the City, with appropriate payment to the contractor; • Incentive (variable) fees cannot be greater than the fixed fee; • The Golf Director's term cannot go longer than five years. • Lubovich pointed out that the draft is only a model contract, and is not necessarily the one to be used. He stated that the City should have some input as to operating policies of the golf complex. The proposed fee compensation in the draft is based upon Portland's model. Lubovich said that the City will want to look at the mix of fees with great interest. Councilmember Johnson explained for a member of the audience that the golf course was set up as an enterprise fund and is expected to cover its expenses. However,he said the entire complex cannot cover its expenses. Doug Schwab gave some background on the process the Golf Advisory Board went through to arrive at their recommendations. The Board was challenged with determining how to integrate a Golf Director into the present structure at Riverbend in order to provide for a more efficient operation. Schwab said the easiest thing to do was to hire a Golf Director and integrate that individual into the present system, but the question arose as to whether that would solve other problems at Riverbend. The Board then decided to recommend that the City use the management contract approach to contract with someone for those services which the City will decide upon. A member of the audience pointed out that Portland is seventy-five years old,paid for, and does not have the bonded indebtedness that Riverbend has, and questioned why the Board compared Riverbend to Portland. Schwab responded that bonded indebtedness is not an issue. Wilson said that • the City would have money in its hands if Riverbend were not paying for the 1981 bonds. Parks Committee Minutes November 24, 1992 Page Two Schwab said the contract does not turn over control of the golf complex to the Golf Director. It was his opinion that it is in the City's best interest to maintain control of maintenance at the complex. Schwab said that it cost the City $125,000 to subsidize the merchandise operation for the first two years the City was in the merchandise business. Tim Bond responded by reporting that the complex sold $625,000 in merchandise this year. He did not agree that it costs the City$125,000 to subsidize merchandising,nor did he agree that the complex is losing money on the merchandise operation. He requested to see a chart with a line to show what staff are doing. Wayne McDonald questioned how the golf complex will bring in$40,000 more in lesson revenue next year under the Golf Advisory Board's recommendations. Schwab answered that this will be accomplished by hiring two more instructors who will bring in$20,000 more each. McDonald opined that there is not enough room there now for those who are already taking lessons, as there is a conflict between members of the public who want to use hitting stalls at the driving range and those who are taking lessons. Barney Wilson said that he and a financial person met to determine if the City could afford to purchase Riverbend Golf Course by selling bonds. He explained that they studied every contract in the northwest they could, and determined it would be best if the Parks Department ran the complex Wilson pointed out that the bond covenance says the golf course must be operated by the Parks • Department, and in his opinion, if it is contracted out, it is not being operated by the Parks Department. He told the Committee this will be challenged by bond holders. Wilson said the recent publicity and the bickering regarding this issue have hurt Riverbend. He suggested that Council should take a long look at the contract before making any decisions. Helen Wickstrom said she is concerned that the City will be giving away the Finance Department's projected profit at Riverbend to someone else if services are contracted out. Schwab said the contract is structured so it will reduce operating costs. He hoped the City will not take a lot more time on this decision, as he felt it is putting a lot of burden on Riverbend staff. Councilmember Johnson moved to accept the recommendations of the City of Kent Golf Advisory Board as set forth in its report to the Parks Committee, and to adopt the organizational structure for the Riverbend Golf Complex as set forth in organizational chart A-1 of the report, including the snack bar operation and janitorial operation, and further to direct staff to develop an RFP based on a contract similar to the management services contract in order to implement the Golf Advisory Board's recommendation, and to submit the RPF and proposed contract to the Parks Committee for approval. Councilmember Bennett seconded the motion. The motion passed .with a 2-0 vote, as Councilmember Houser was not present. Bennett announced that this issue will be brought before the full Council at the December 1 City Council meeting. My j lw PARRS COMMITTEE MEETING November 24, 1992 Attendance Name Address/Department Phone No. 1. 2. � Y 3 . , r� c.� Cv,�► �l�x `�Sri- yovv 4 5 6. 8. 9. 10. 11. `17 2ocG � 12. 14. � 5. 16. l +` 7 /? - u c 17. — 2,V1 s� 395 v 20. 21. 22 . 23 .