HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 09/03/2013 11 � KENT
Kent City Council Workshop
September 3, 2013
The meeting was called to order at 5:33 p.m. by Council President Dennis Higgins.
Councilmembers present: Thomas, Boyce, Perry, and Ralph. Councilmember Ranniger
arrived at 5:59 p.m.
Council President Higgins discussed Council workshop meeting procedures.
Riverbend Golf Complex. Parks and Community Services Director Jeff Watling
discussed the Riverbend Golf Complex and highlighted the community open meetings.
He stated that there is a degree of public value that has been derived from the
facility. He pointed out that the staff at the Riverbend have communicated that the
target audience for the facility is beginner, youth, and senior golfers. He communi-
cated that the policy question that needs to be answered is whether the Council wants
the facility to continue as an enterprise or as a general fund/park facility. He stated
that the issues surround addressing some debt repayment, paying for capital needs,
and how to obtain operational sustainability. Council President Higgins confirmed that
the golf course was established as an enterprise since its inception and that it has
never been sustained through the general fund.
Watling verified that the course was built in 1989 and that the City purchased the
Par 3 in 1984 from a private owner.
Watling continued and discussed debt repayment and reviewed the interfund loan
history. He noted that the current debt is $2.25 million and by law it must be paid
back.
Councilmember Ralph communicated that the original debt to build the course was
paid off in 2010.
Councilmember Boyce confirmed that $2.25 million is the balance owed in 2013. He
communicated that the operating loss from 2009 - 2011 negatively affected the
interfund loan balance.
Watling highlighted the facility's capital needs and noted that all of the improvements
would cost the City $2.36 million and that some of the assets that need replacing
have been retained for more than double their lifecycle.
Councilmember Ralph verified that the water bill is about $90,000 per year and
Brubaker communicated that the source is a fire hydrant, so the need to drill a new
irrigation well is critical.
Watling added that none of these items are currently funded.
Councilmember Ralph verified that the capital needs on the list are for the entire
Riverbend Golf Complex.
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Kent City Council Workshop Minutes September 3, 2013
Watling continued and discussed operational sustainability. He noted that the revenue
was $2.6 million and expenses were just under $2.8 million.
Council President Higgins inquired if there were opportunities to divert costs related to
fleet, city attorney fees, etc that the complex pays for and receives from the City.
Watling communicated that it would be a policy decision.
Councilmember Ralph verified that the full 5 percent admissions fee increase didn't
occur and Councilmember Thomas noted that in order to run the facility some fees
need to be increased.
Watling discussed business model revisions and he said selling the Par 3 is a hard
decision, but it would pay for the capital needs and reduce the footprint.
Council President Higgins noted that intent is to save the golf course and it seems
that a possible sale of the Par 3 might be the way to save it.
Watling discussed the annualized costs. Councilmember Ralph interjected and
communicated that the full capital needs for 2014 are $1.23 million.
Watling communicated that outsourcing the facility still means that the City would
have to come up with the capital to run the facility.
Brubaker questioned if the City should use the general tax payments of 120,000
residents to operate the golf facility and Councilmember Thomas added that he
couldn't see residents wanting the Council to hold off the hiring of more police officers
to run a golf course.
Councilmember Perry discussed the interfund loan and confirmed with Brubaker that
the golf course could be funded by the general fund, but the City would have to
explicitly communicate to the auditor how the City would pay the loan back.
Council President Higgins inquired if there was another way for the City to go about
this without using the general fund and keeping the complex as an enterprise.
Watling replied that fee increases could possibly keep the entity in the black.
However, Brubaker communicated that he doesn't think keeping it would work.
Brubaker asked the Council how they wanted to proceed.
Councilmember Perry communicated that enterprise funds entities aren't profitable.
Brubaker stated that the golf course is operating in the red and it either needs to be
kept a business, or if it goes to the general fund something has to be cut.
Councilmember Boyce confirmed that $650,000 will need to be cut from the general
fund to keep the Riverbend Complex in operation in the general fund.
Council President Higgins summarized the discussion.
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Kent City Council Workshop Minutes September 3, 2013
Watling responded to Council President Higgins and stated that it would be ideal to
find an organization that could operate it and repay the debt.
Councilmember Ralph noted previous discussions about what surveys that note what
ShoWare Center brings to the City and inquired what the golf course brings in.
Watling replied that a similar study hasn't been done yet.
Council President Higgins stated that he doesn't want to see the golf course funded
from the general fund. He said he doesn't want to sacrifice police or any other basic
services.
Councilmember Boyce communicated that he also doesn't feel moving the golf course
into the general fund is the way to solve the issue.
Councilmember Perry communicated that the golf course it is a community asset and
it is the debt of the City. She felt having it as an enterprise fund isn't the way to go.
She felt the course should be a part of the parks system. She stated that golf is an
upward mobility sport and general fund revenues should be used to maintain it.
Council President Higgins noted that he wants the course saved and wants to work to
save it.
Councilmember Perry communicated that she wants the entire Riverbend Golf
Complex retained.
Councilmember Thomas communicated that it may make sense to sell a part of the
course to retain most of it. He reviewed its capital needs.
Councilmember Ralph communicated that she isn't comfortable with moving the golf
course into the general fund. She added that she also is uncomfortable with giving up
the rights to the property. She said she is interested in generating revenues and is
curious to find out what other municipalities are doing. She said she isn't ready to
give up on this.
Councilmember Ranniger expressed interest in the strategic opportunities and how
the general fund could absorb the course without cutting other areas and services.
Councilmember Perry stated that the strategic opportunities fund is the best fit for
this.
Brubaker added that the staff will bring forth something concerning this for the
Council to review. He added that there are several parks that need repairs and
moving to draw from other sources for this will delay other park's needs.
Watling inquired if the next step is to explore this in the Parks Committee and look at
options under the enterprise model and determine what could be funded through the
general fund.
Council President Higgins said he wanted to have this wrapped up by the end of his
term.
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Kent City Council Workshop Minutes September 3, 2013
Watling and Brubaker stated that the staff would give the Council a context on how all
of this would work.
Transportation Town Hall Meetings. Council President Dennis Higgins
communicated that the Senate is holding seven open public meetings on the
transportation budget. He wants the Council to send a letter to the Senate or have
someone attend them to ensure Kent's priorities are communicated.
Councilmember Perry communicated that the Lodging Tax Advisory Council authorized
contracts for marketing and the City is working with focus groups in Kent to develop
Kent's brand. She noted that neighborhoods, the Chamber of Commerce, and the
Kent Development Partnership will be contacted. Specifically, the firm will work on the
websites of the city, chamber, school district, and all public entities in Kent. The
focus, she said, is to create a Kent brand, tagline, look, and a new logo. This will
include ensuring all Kent entities have the same "look" on their websites.
The meeting adjourned at 6:41 p.m.
Ronald F. Moore, MMC
City Clerk
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