HomeMy WebLinkAboutCity Council Meeting - Council - Regular Minutes - 3/7/2023 (2) Approved
City Council Workshop
• Workshop Regular Meeting
KENT Minutes
WASH IN G 7 0 N
March 7, 2023
Date: March 7, 2023
Time: 5:00 p.m.
Place: Chambers
I. CALL TO ORDER
Council President Boyce called the meeting to order.
Attendee Name _ Title _ Status Arrived
Bill Boyce Council President Present
Brenda Fincher Councilmember Present
Satwinder Kaur Councilmember Excused
Marli Larimer Councilmember Remote
Zandria Michaud Councilmember Present
Toni Troutner _ Councilmember Present
Les Thomas Councilmember Present
II. PRESENTATIONS
1 Riverbend Complex Update Parks Staff 60 MIN.
Half Lion
Representatives
Parks Director, Julie Parascondola introduced the update to the Riverbend
Golf Complex.
Riverbend Golf Complex completed adjustments in their business model and
is now operating at sustainable profit and will need another 2 years to
officially confirm user and financial trends.
Revenue, expenses, profit and number of rounds for years 2017-2022 were
reviewed.
• Success is due to a combination of more/new golfers, strategic pricing and
increases, new driving range and hard work
• Paid off 100% of the general fund loan to support past golf operations
• Per City Policy, the Riverbend Golf Fund should maintain a 16% fund balance
equal current year budgeted expenses or $400,000, whichever is higher
• Capital fund balance for 2022, heading into 2023 = $1,193,000
• Hard work and intentional policy decisions helped turn the golf course around
into a profitable business with no general fund (taxpayer) reliance
• Finally have stability in a long-term restaurant concessionaire with Half Lion
Public House
• 67% of 12 months were profitable (8 of 12)
• Riverbend Men's Club is hovering around the 300-350 members yearly and to
City Council Workshop Workshop Regular March 7, 2023
Meeting Kent, Washington
Minutes
......................................................................................................................................................................................................................................................................................................._...............................................................................................................................................................................................................
date this year, membership is up 29 % over 2022
• Riverbend Ladies Club is hovering around 100-125 members and have seen
significant growth in members and tournament participation in recent years
• Riverbend hosted over 100 small groups/ tournaments in 2022, inclusive of the
Seattle Fire Department and the Fir State Golf Club
• Riverbend does not track golfer demographics, however, golfers range in age
from 5 years old up to mid-90's, of all races/cultures. We have seen an influx of
"new" golfers during and after the pandemic and are working diligently to retain
their repeat business
• Half Lion Original Lease Terms
• Opened Half Lion Public House June 2019 (6 months later the pandemic hit)
• 2022 is the first year they've been open a full year with no operating restrictions
• Lease Term = 10 Years plus three (5) year options to renew
• Rent = $3,000 per month = $36,000 per year
• Utility consumption in addition to lease payment, based on formula
• Tenant responsible for all taxes and fees, including 12.84% leasehold tax
• $5,000 security deposit on file
• 3% CPI growth each annual renewal
• At each option to for extension, a market adjustment is reviewed (3-6%
increase)
Formal Lease Amendment in August 2021 to address pandemic impacts:
• Lease waiver until 2 months after full restaurant restrictions relaxed - $54,000
loss to Riverbend
• Suspended CPI inflation adjustment until 2023. This begins in June, 2023.
• Utility deferment and payback (5 years with 8% interest)
• Total utility deferment of$36,013 and as of 11112023 they still owe $26,232.
• The payback schedule is for 60 months or 5 years at a rate of $730.22 per
month.
• Half Lion hasn't missed a payment and has paid back 28% of their deferment
to date.
Jason Nelson, Owner of Half Lion Public House talked about his appreciation
of the support Half Lion has received from the City and community and
talked about the great partnership and collaboration with Riverbend staff.
Nelson announced the unveiling of the new style of beer cans - Albert's
Amber - named after his grandfather.
Pete Peterson, Manager at the Riverbend Golf Complex presented key
accomplishments:
• First full year of a complete operation for the Golf Complex since 2017
• First year that the Golf Complex was profitable under the Golf Complex Business
Plan
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Page 2 of 4
City Council Workshop Workshop Regular March 7, 2023
Meeting Kent, Washington
Minutes
......................................................................................................................................................................................................................................................................................................._...............................................................................................................................................................................................................
• Over 65,000 rounds of golf were played at the 18 Hole Golf Course
• New fleet of golf carts
• Hosted the Washington Junior Golf Association World
• Partnered with the Kent School District and hosted our first Cross Country meet
in October (goal to begin expanding public use, outside of golf, when applicable)
• Riverbend hosted the Half Lion/Green River College fundraising tournament
• Riverbend also hosts the DGA Golf League, the Holeouts Golf League(Boeing),
the BB League, the Aero Golf League(Boeing), the City of Kent Golf League and
the Highline Golf League.
• Riverbend is the home course for four local area high school golf teams (Kent
Meridian, Thomas Jefferson, Mount Rainier, and Seattle Christian)
• There were more than 8,000 volunteer marshal hours
• Over the past 22 years, the Riverbend 18 Hole Golf Course continues to be one
of the busiest and most popular golf courses in the Northwest
2022 Operating Challenges:
• March 4th the 14th hole was flooded for several days
• Poor weather in May with nearly twice the normal rainfall
• June 17th the Driving Range's west entrance was smashed into resulting in a
loss of over $10,000 in inventory and damage to the facility
• July 25th there was a fire in the one of the back offices at the Driving Range
resulting in over $85,000 of damage
• October 2nd the on-course restroom on the 15th hole was damaged by fire
• November 9th the well pump shed was stolen
• Golf course was closed for 15 days in December due to weather
• December 24th the golf course was flooded out
Driving Range Performance:
• The Driving Range Remodel Project started in February of 2020 and was
completed in August of 2021.
• Total cost of the three-phase driving range improvements = $4,640,315
• Paid for Riverbend's portion of the Meet Me on Meeker frontage
improvements
• Took up significant portion of original Par 3 sale - capital allocation (due to 3
phases)
• The Driving Range now has over 50 stalls, an enlarged range field, new
lighting, and a remodeled Pro Shop
• In 2022, there more than 9,400,000 balls hit at the Driving Range
• In 2022, the Driving Range exceeded budgeted revenue expectations by more
than 20%
2023-2024 Work Plan Highlights:
• Operating the course 364 days a year, targeting over 65,000 golf visits
• Operating policy updates to address SAO audit feedback
• New Point of Sale System (GolfNow), estimated launch in June
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Page 3 of 4
City Council Workshop Workshop Regular March 7, 2023
Meeting Kent, Washington
Minutes
......................................................................................................................................................................................................................................................................................................._...............................................................................................................................................................................................................
• Re-branding of the Golf Course, giving it a new look
• New flags, flagsticks, tee markers, tee signs, and yardage posts
• New benches, garbage cans, and divot mix containers
• Drainage improvements to the front of greens
• Irrigation control system upgrades
• Sprinkler head replacement
• Resurfacing and leveling tee boxes
• Additional bunker sand
• Parking lot and clubhouse landscaping improvements
• Replace the on-course restrooms
• Cart path repairs
• Driving range field improvements
• Driving Range net repairs
Petersen recognized all of the Riverbend staff and expressed appreciation of
their hard work and dedication to the golf complex.
Petersen indicated they need to do a survey to see where golfers reside.
Councilmembers expressed appreciation of the work of Parascondola and her
team in making Riverbend a sustainable model.
Meeting ended at 5:40 p.m.
K6mb,orLey A. Kotnoto-
City Clerk
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Page 4 of 4
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RIVERBEND GOLF COMPLEX
CITY COUNCIL WORKSHOP, MARCH T 2023
k _
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General
i4 .4
■ Riverbend Golf Complex completed adjustments in their business model and is now operating at
sustainable profit
■ Will need another 2 years to officially confirm user and financial trends
a y A large percentage of the 2017 Business Plan strategies are still valid;
however, staff did update the financial proforma from the original plan to
forecast in a ten-year window, 2023-2033 -
-- - Updates will coincide with the City's biennium budget process, every two years to
confirm trends and performance
■ Riverbend staff performs dynamic spend plan management - budgets are broken out
by monthly allocations, staff track monthly actuals and re-forecasts remainder of the
year, where applicable
■ Financial proforma will inform both operating and capital decisions in the
short-term future
■ ■
2022 Riverbendi nancia
2022 Revenues vs. Expenses
6 Year Revenue - Expense Summary
2017 2018 2019 2020* 2021* 2022 2023(F)**
REVENUES $2,527,079 $2,402,096 $2,493,146 $2,152,266 $2,520,912 $3,347,728 $3,372,200
EXPENSES $2,827,953 $2,467,667 $2,472,859 $2,229,519 $2,586,087 $2,917,900 $2,978,640
PROFIT ($300,874) ($65,571) $20,287 ($77,253) ($65,175) $429,828 $393,560
TOTAL ROUNDS 59,546 62,587 59,596 60,522 68,027 65,279 65,000
Note: *2020-2021 Covid 19 Pandemic. **2O23(F) Does not include 2023 COLA, profit will drop by appropriate %.
Final numbers are draft until year end financial close out of 2022.
■ Success a combination of more/new golfers, strategic pricing and increases, new driving range and hard work
■ Paid off 100% of the general fund loan to support past golf operations
■ Per City Polic the Riverbend Golf Fund should maintain a 16% fund balance equal current year budgeted
expenses or L00,000, whichever is higher
■ 16% of 2023 $2,978,640 Expenditures = $476,582
■ Built a Cash Reserve Fund, separate from overall fund balance = $500,000
■ Ending fund balance for 2022, heading into 2023 = $656,000
■ Capital fund balance for 2022, heading into 2023 = $171937000
0 Combination of Par 3 sale, ARPA and Admissions Tax
Rmiverbend
■2022 nancials
■ Hard work and intentional policy decisions helped turn the golf course around into a profitable business with no
general fund (taxpayer) reliance
■ Finally have stability in a long-term restaurant concessionaire with Half Lion Public House
■ 67% of 12 months were profitable (8 of 12)
t
■ Riverbend Men's Club is hovering around the 300-350 members yearly and to date this year, membership is up
29 % over 2022
■ Riverbend Ladies Club is hovering around 100-125 members and have seen significant growth in members and
tournament participation in recent years
■ Riverbend hosted over 100 small groups/ tournaments in 2022, inclusive of the Seattle Fire Department and
the Fir State Golf Club
■ Riverbend does not track golfer demographics, however, golfers range in age from 5 years old up to mid-90's,
of all races/cultures. We have seen an influx of "new" golfers during and after the pandemic and are working
diligently to retain their repeat business
Half ion Pubimic House
Half Lion Original Lease Terms
• Opened Half Lion Public House June 2019 (6 months later the pandemic hit)
• 2022 is the first year they've been open a full year with no operating restrictions
• Lease Term = 10 Years plus three (5) year options to renew
• Rent = $3,000 per month = $36,000 pear year
• Utility consumption in addition to lease payment, based on formula
• Tenant responsible for all taxes and fees, including 12.84% leasehold tax
• $5,000 security deposit on file -
• 3% CPI growth each annual renewal
• At each option to for extension, a market adjustment is reviewed (3-6% increase) , -
Reminder. not a gross profit model, not tied to profit or loss - more simplified landlord/tenant relationship
Formal Lease Amendment in August 2021 to address pandemic impacts:
• Lease waiver until 2 months after full restaurant restrictions relaxed - $54,000 loss to Riverbend
• Suspended CPI inflation adjustment until 2023. This begins in June, 2023.
• Utility deferment and payback (5 years with 8% interest)
• Total utility deferment of$36,013 and as of 11112023 they still owe $26,232.
• The payback schedule is for 60 months or 5 years at a rate of$730.22 per month.
• Half Lion hasn't missed a payment and has paid back 28% of their deferment to date.
Half Publ 'Ic House
Jason Nel!znn , Owner of Half 1 ,ion Public House
Nq
■ Good partnership and collaboration with Riverbend staff - -
■ Driving Range - next steps
■ Community / City Owned Properties
Introducingand unveilin tonight . . . I g
LN
as IIII�I�lI, 109
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2022 Key
■ First full year of a complete operation for the Golf Complex since 2017
■ First year that the Golf Complex was profitable under the Golf Complex Business Plan
■ Over 65,000 rounds of golf were played at the 18 Hole Golf Course
■ New fleet of golf carts
■ Hosted the Washington Junior Golf Association World
■ Partnered with the Kent School District and hosted our first Cross Country meet in October (goal to begin
expanding public use, outside of golf, when applicable)
■ Riverbend hosted the Half Lion/Green River College fund raising tournament
■ Riverbend also hosts the DGA Golf League, the Holeouts Golf League(Boeing), the BB League, the Aero
Golf League(Boeing), the City of Kent Golf League and the Highline Golf League.
■ Riverbend is the home course for four local area high school golf teams (Kent Meridian, Thomas
Jefferson, Mount Rainier, and Seattle Christian)
■ There were more than 8,000 volunteer marshal hours
■ Over the past 22 years, the Riverbend 18 Hole Golf Course continues to be one of the busiest and most
popular golf courses in the Northwest
2022 Operatming
■ March 4th the 14th hole was flooded for several days
■ Poor weather in May with nearly twice the normal rainfall
■ June 17th the Driving Range's west entrance was smashed into resulting in a loss of over
$10,000 in inventory and damage to the facility
■ July 25th there was a fire in the one of the back offices at the Driving Range resulting in over
$85,000 of damage (active claim with City's risk/insurance division)
■ October 2nd the on-course restroom on the 15th hole was damaged by fire
■ November 9th the well pump shed was stolen
■ Golf course was closed for 15 days in December due to weather
■ December 24th the golf course was flooded out
■ All year, continually dealing with escalating vandalism/damage, break-in attempts
■ ■
Driving Performance
■ The Driving Range Remodel Project started in February of 2020 and was
completed in August of 2021.
■ Total cost of the (3) Phase Driving Range Improvements = $476407315 .aw Jt�'
■ Paid for Riverbend's portion of the Meet Me on Meeker frontage improvements -
■ Took up significant portion of original Par 3 sale - capital allocation (due to 3 phases) j
■ The Driving Range now has over 50 stalls, an enlarged range field, new lighting, J
�j��
and a remodeled Pro Shop -- fl
■ In 2022, there more than 9,400,000 balls hit at the Driving Range
■ In 2022, the Driving Range exceeded budgeted revenue expectations by more
than 20% /
■ Significant influencer on Riverbend's long-term sustainability, adding double the driving range
revenue from 2019 (pre-pandemic and pre-improvement) at almost 50% increased revenue.
■ Ex: 2019 Revenue = $431,966 increased to 2022 Revenue = $859,107
2023�2024 Work P Highlights 0
■ Operating the course 362 days a year, targeting over 65,000 golf visits h
■ Operating policy updates to address SAO audit feedback
■ New Point of Sale System (GolfNow), estimated launch in June
■ Re-branding of the Golf Course, giving it a new look - -
■ New flags, flagsticks, tee markers, tee signs, and yardage posts
■ New benches, garbage cans, and divot mix containers
■ Drainage improvements to the front of greens
■ Irrigation control system upgrades
■ Sprinkler head replacement
■ Resurfacing and leveling tee boxes
■ Additional bunker sand - M yopu-ffinowe
■ Parking lot and Clubhouse landscaping improvements If a Riverbend golfer decides to walk the
course while playing and not use a golf cart,
■ Replace the on-course restrooms they will walk between 5-6 miles and burn
■ Cart path repairs around 1300-166 calories! This contributes
to Kent Parks' and the City's goal of
■ Driving Range field improvements providing healthy opportunities to be active
and to combat Kent's highest causees of
■ Driving Range net repairs death which is diabetes and heart disease,
bot mostly preventable by lifestyle choices.
Rmiverbend S
THANK YOU to the Riverbena staff! 221 combined years of experiience and
commitment to Riverbend Golf Complex and the City of Kent!
Lloyd Abraham - Maintenance Field Supervisor (39 Years)
Eric Hinrichs - Head Golf Professional 18 Hole Golf Course (22 Years)
■ Josh Immordino - Golf Professional 18 Hole Golf Course (17 Years)
■ Jeff Lewis - Maintenance Work III (26 Years)
■ Melanie Manning - Golf Accounting Supervisor (35 Years)
■ Marti O'Neill - Head Golf Professional Driving Range (23 Years)
■ Pete Petersen - Golf Complex Manager (29 Years)
■ Pat Sims - Mechanic (36 Years)
■ Over 20 part-time staff
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