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HomeMy WebLinkAboutCity Council Committees - Parks and Human Services - 09/19/2013 Parks and Human Services Committee KENTW�SNINGTON Meeting Minutes for September 19, 2013 Council Committee members Present: Chair Debbie Ranniger, Dana Ralph, Elizabeth Albertson Chair Debbie Ranniger called the meeting to order at 5:03 p.m. Item 1: Minutes of July 18, 2013 - Approve MOTION: Committee member Ralph moved to approve the minutes dated July 18, 2013. Committee member Albertson seconded. The motion passed 3-0. Item 2: 2014 Washington State Arts Commission Proiect Support Grant — Accept Superintendent of Recreation and Cultural Programs Lori Hogan shared that once again the amazing staff in our Cultural Division applied for and received the Washington State Arts Commission (WSAC) program support grant for 2014. Kent Arts Commission will use the funding to support the presentation of performances and educational outreach activities by Keola Beamer, Moanalani Beamer and R. Carlos Nakai (world music and dance), as well as California Guitar Trio and Montreal Guitar Trio (classical and world guitar) as part of the Spotlight Series. MOTION: Committee member Albertson moved to recommend accepting the $3,950.00 grant from Washington State Arts Commission and approving the expenditure of funds in the Kent Arts Commission's budget. Committee member Ralph seconded. The motion passed 3-0. Item 3: New Connections Lease Agreement — Authorize Superintendent of Facilities Alex Ackley reported that New Connections, a nonprofit agency serving Kent residents, has been a tenant in the city-owned building located at 412 West Titus Street since June, 2003. The condition of the current location is no longer adequate to run the tenant's programs, therefore, the tenant will be moving to the city-owned building located next door at 422 W. Titus. In consideration of this 5-year agreement, the Lessee pays all costs associated with or arising out of the maintenance, operation, and agreed upon tenant improvements (Exhibit B) of the leased premise, in lieu of paying rent. The Lessee will also pay a monthly Leasehold Excise Tax in the amount of $267.30 based on an estimated fair market value rental of $2,349.00 per month. Through an agreement with DSHS under their Career Path Services Program, New Connections provides six to twelve months of training for individuals in their office (paid for by DSHS) and working with the Police Department and Corrections staff. During the last year, New Connections trained several individuals in work and office Page 1 skills and gained valuable (no-cost) employees which allowed them to provide extremely low cost assistance. The motion was corrected by eliminating "St. Vincent de Paul" from the lessee name. MOTION: Committee member Ralph moved to recommend Council authorize the Mayor to sign the Lease Agreement with New Connections to rent the city-owned building located at 422 West Titus Street, subject to final terms and conditions acceptable to the City Attorney and the Parks Director. Committee member Albertson seconded. The motion passed 3-0. Item 4: GreenPlay Agreement — Authorize Parks Director Jeff Watling and Superintendent Lori Hogan reiterated that at the 2013 City Council Retreat, Council identified a number of priority items from the Efficiency Study, conducted by BERK and Associates, to further explore and discuss. One of those items under Level of Service was the review of recreation programs to better understand and determine cost recovery. Watling recapped that staff introduced an approach to this task proposed by GreenPlay LLC at the June 20 Parks Committee meeting. GreenPlay would utilize a pyramid methodology to develop a cost recovery model and resource allocation philosophy for recreation programs. The pyramid methodology has been successfully applied to several cities and agencies throughout the country Hogan spoke to Council's questions on the cost recovery of recreation programs and services. The process begins with a series of workshops with city staff, elected officials, business leaders, and residents. This group will meet 4-5 times in the next 5-6 months and talk in depth on what recreation services are offered, as well as the impacts, values, and prioritization of these services. Discussion will include the current fee structure and whether it is right-priced, or whether the fees need to be adjusted. The intention of this process is to come away with a cost recovery model and a philosophy that the Parks Department can apply to current and future programs, services, and projects. Committee member Ralph voiced concern for the staff time involved to implement this scope of services. She feels that staff time is already limited. Hogan thanked Ralph for her concern and agreed that it will take time to manage through the process. She is hopeful that much of the information needed can be pulled from the current registration system. It will be a big investment of time initially, but she hopes that the resulting product will be well worth it and give us a better path forward when it's done. Watling feels that this will be a great management tool with existing programs and can be used when considering programs in the future as well. Hogan added that GreenPlay is very willing to work with the city. They have taken into account staff time and spread the process over the calendar to accommodate staff schedules. Page 2 Committee member Ralph said it feels like an efficiency study and again is concerned that staff is already so lean. She wants to make sure the study looks at the value of current programs. Hogan feels that it won't be a report on efficiencies, and that the focus of the study will result in a product that shows; our programs are serving a broad community, our services are right-priced, and that there is a need and a value to our services in the community. Hogan noted that, if we find there is an area that needs revisiting, then we will. She reiterated that it will be a valuable tool to assist in measuring the value of our services. Watling said, as we price the services, we understand there is a spectrum of city investment. The intent was to address Council's questions on how we are investing in recreational programming. He does feel this is an exercise of reviewing efficiencies and not what can we get out of the business of doing. Committee Chair Ranniger commented that the contract doesn't reference re-directing the city's resources to some other focus. Elizabeth felt that it does and referred to the pyramid model, focusing on the community benefit piece. Hogan remarked that it would be a surprise if at the end of this analysis, there are services that need to be removed. But, if that is the case, this model will be an effective tool for Council to use in deciding what happens next. Councilmember Ralph asked if this is the best use of $34,000. Watling responded yes, it gives staff the tools and the opportunity to go deeper into how we analyze costs. It's an investment that is well served. Committee Chair Ranniger was not concerned with the size of the contract and felt the price was low. Committee member Albertson liked that this method offers a process and a structure to set up guidelines. She appreciates the public involvement process to get input on creating the model that matches community needs. It's an opportunity for outside opinions from a new perspective. Committee member Albertson moved to recommend Council authorize the Mayor to sign the agreement with GreenPlay in the amount of $33,950.00 for consulting services, subject to final terms and conditions acceptable to the City Attorney and the Parks Director. Committee member Ralph seconded and the motion passed 3-0. Council member Ralph requested this item be moved to Other Business on the agenda so that the original goals can be discussed by full Council. Item 5: Riverbend Golf Complex — INFO ONLY Chair Ranniger stated that this informational item is more exploratory information on the Riverbend Golf Complex and an endeavor to continue this conversation to bring the golf complex to a more stable mode and still provide that asset to the community. The report will explore some different financial structures and provide next step guidance in the exploration for sustainability. Page 3 Parks Director Watling stated that, as a follow-up to the September 3 City Council Workshop discussion on Riverbend, three options were presented to address the current financial issues within the Golf Fund. This presentation includes an overview of each option, as well as an assessment of the advantages, disadvantages, and policy implications for each of the three options to address. Watling noted the three challenges within the golf fund: 1. Debt Repayment 2. Funding Capital Needs 3. Operational Sustainability Options: 1. Enterprise — Outsource Management / Operations Management Contract - Outsource • Hire a management company to operate all aspects of Riverbend Advantages: • No change to Riverbend Complex • Costs may be reduced due to labor cost reductions • City relieved of day-to-day operation Disadvantages: • City funds all capital improvements • City funds all debt re-payment • Less control than self-operation • Usually does not provide guaranteed income to owner Policy Implications: • This option does not directly address two of the most significant issues within Golf Fund — debt re-payment and capital reinvestment • Impact to current employees (both represented and non-represented) Interim CAO Tom Brubaker interjected that, as an example, the city has a management agreement with SMG for the Event Center. The city doesn't know the entertainment business, so a company was contracted to operate the facility. The city pays SMG to operate the facility and we are responsible for the maintenance and repair of the facility, as well as making up the difference if revenue is down. Lease Agreement - Outsource • Lease the facility to a private operator in exchange for an annual lease payment to the City (similar to Riverbend's restaurant lease) Advantages: • No change to Riverbend Complex • Burden of risk is partially shifted Page 4 • City relieved of day-to-day operation • Lessee could contribute to needed capital improvements • Lessee to maintain equipment Disadvantages: • City has limited control. Public access is impacted. • Laborissues • Revenue constraint to City • Longer term contract • Unexpected golf market downturns • Debt service re-payment may not be directly addressed. We need a $400- 600K return. A third party wants to make money. Policy Implications: • This option may not directly address two of the most significant issues within Golf Fund — debt re-payment and capital • Impact to current employees (both represented and non-represented) • Balancing the roles of public asset and enterprise Watling said there is always a challenge with striking the balance to push revenue and encourage access. Whenever there is a third party involved in the operation of an asset, the third party is in it to make money. As we noted from the public meetings, entry point into golf is a core value. The city's role with public space is to encourage public access. In a lease agreement, that is a delicate balance with a partner. Committee member Albertson referenced the role between municipal an all access golf course and a private country club golf course. It's not the same market and we play a different role in the industry. Hybrid Management Contract • In the 1980's and 1990's Riverbend was operated with a hybrid management contract. • Combines some aspects of both. Usually shorter term (3-5 years) and may include all or part of the operations 2. Enterprise — Re-size the Operation • Reduce the size of the Golf Complex • Reduce operational costs • Proceeds from sale would pay off debt and fund capital improvements • Ensure Golf Complex remains accessible for all ages and all abilities Advantages: • Improve operational sustainability • Proceeds from sale pay off interfund loan • Proceeds from sale fund current and future capital investments • Riverbend remains a public facility for all ages and abilities Page 5 Watling reported that 48% of revenue comes from the 18-Hole, 42% from the driving range/ pro shop and 10% of revenue comes from the Par 3. He commented that, if we consider resizing, how we would provide current services. Watling displayed conceptual maps that showed the potential of turning property on the Par 3 side that would accommodate 3 holes and multiple tee boxes - which provides six different practice areas, plus a chipping and practice area. Riverbend Golf Complex Superintendent Pete Petersen commented that, comparing the lengths of the holes on the proposed conceptual design, two different tees and two flags would offer the junior and senior groups a similar experience to the Par 3. Watling responded to the concern of 9-hole players feeling intimated by the 18-hole course. He spoke of incorporating the national program played on18- hole courses called, "Tee it Forward" which creates a set of tees that are pushed way forward. This produces a golf experience for the beginners, juniors, and seniors who want to play a shorter course. Staff hopes these options stay true to our goal of remaining a public facility for all ages and abilities. Disadvantages • Loss of public property • Is there commercial interest in that property? • Represents Change Policy Implications: • What would be the City's vision of re-development of this site? • How does the City ensure an appealing project that will benefit the community including public access into the site and along the Green River? • How does the City and Community work through the change that this option would bring? 3. General Fund Budget — Transition Riverbend into the General Fund Budget Annualized Costs • Total Annualized Costs: $665,000 - $1,075,000 o Debt Repayment of $2.25m • 5 years: $475,000 per year • 10 years: $265,000 per year o Capital Needs: $350,000 - $400,000 o Operational Sustainability: $50,000 - $200,000 • Identify Funding within the General Fund o Increase revenues, and/or o Reduce/eliminate other General Fund programs Page 6 Advantages: • No change to Riverbend Golf Complex • Interfund loan could be repaid through the General Fund • Current and future capital needs could be addressed (depending on funding and prioritization with other capital needs) Disadvantages • General Fund budget is currently very tight. Adding the golf complex will likely mean the reduction or elimination of other general fund services • Impact transferred to other services • Operational sustainability may not be met • Current and future Capital needs may not be addressed due to funding priorities and availability within the broader Capital Budget Policy Implications: • Where does Riverbend fit into the General Fund Services priority now and in the future? • Shall funds from the Strategic Opportunity Fund be used? If so, how much? • What other services will be reduced or eliminated within the General Fund? CAO Brubaker commented that the city needs to look at other funds besides one- time money for an ongoing issue. We need to look for reliable source. Parks Director Watling referenced Council member Perry asking about using the One Time Strategic Fund to pay the debt. Brubaker said this shouldn't be handled through a one-time fund. Committee member Albertson said it could eliminate the $2.25M debt, but doesn't address the other financial issues. CAO Brubaker referenced the challenges with the Seattle Public Utilities partnership and the Highlands property. He said the city has been very successful with selling city-owned property, such as Kent Station and The Platform and guaranteeing a development fit. The city has good control in what happens with post sale; when we are the seller. Committee member Albertson understands the need to reduce the Par 3, but still has a hard time with selling property when we haven't replaced the Commons fields yet. She also understands it could be a wonderful community asset like Kent Station and Town Square Plaza, with a public space that incorporates the river. She doesn't have an answer as to where else the city can find the funds for the debt service or a source for capital improvements. Committee member Ralph agrees with Albertson, she's torn. She commented that it's an amazing piece of property and an asset to the community. Business wise, reducing the footprint makes sense and it would provide the funds for the city if Page 7 sold, but her heart says she's not sure if it's the best choice and she hasn't come to a resolution yet. Committee Chair Ranniger senses that, before going any further, the city needs to decide what the vision looks like and find out if there is any interest in developing the property. Committee member Albertson agreed that we need to know if there is interest developing the property into a signature gateway — a river walk with restaurants and public spaces. Adding that it would have to provide a civic benefit. Albertson asked about creating a PUD. Watling felt the group isn't in a place to make any decisions and more information is needed. He feels the next step is to define the city's goals and vision, as well as research market interest. After that, work with Economic Development to see if there is market interest that matches these goals and vision, if we were to consider development. Committee member Ralph stated that the design needs to include the golf educational portion as well. Watling shared that during his conversations with the youth golf groups, First Tee voiced their interest in being a part of the re-sized model and design. Interim CAO Brubaker referenced an appraisal that was done on the property. Based on the appraisal amount, he said it is likely the sale price would pay for the debt service, the capital projects, and the operational efficiencies. If the property is sold, it probably wouldn't be in one lump sum, but in payments. Brubaker will check with Economic Development to look at options and see the possibilities of how the payments would be structured. Committee Chair Ranniger stated that we need to keep moving forward. We need to review proposals from the interest groups and talk to Economic Development to see if there is a market for the kind of vision that meets everyone's needs. Watling reiterated next steps; review proposals from interest groups, define the vision for potential development if the Par 3 is re-sized, and work with Economic Development to see if there is commercial interest in the property. Brubaker agreed that we need to find out if there is a development that meets the vision of Council and the community. Committee member Albertson referenced Tarragon Management and asked Brubaker when the housing project will be completed. He plans to meet with Tarragon to discuss the parameters of the development agreement. Page 8 Item 6: Director's Report • As outlined in the Asset Analysis, the Wilson Playfields Turf Replacement project is our number one capital project in the 2013/2014 budget. Staff found a way to fund project through a compilation of REET and other budget funds. Also, the US Soccer Foundation invited us to apply for a grant (up to $200,000) to help fund the Wilson Turf Replacement project. • Kent Valley Loop Trail The community and staff are very excited about the Valley Loop Trail project. We have experienced a very strong response to the online survey with over 250 comments offering input on the project. The consultants will attend the October Parks Committee meeting to assist staff in updating the committee. • Spotlight Series Concerts kicked off this weekend with Late Night Catechism. • Fall volunteer events begin September 28 with National Trails Day at Park Orchard Park. We are fortunate to have huge participation in our volunteer events. Without the support of our volunteers, Jeff feels we couldn't steward our park system. Chair Debbie Ranniger adjourned the meeting at 6:20 p.m. Respectfully submitted, Teri Petrole TeY,� Pefivo(e Council Committee Secretary Page 9