City Council Minutes 2014 01 14 SP

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City Council Special Meeting Minutes January 14, 2014 Page 5 of 14 golf, secondary are the ancillary uses for the course. He explained it would depend on the marketing of the golf course and noted some golf courses are very aggressive in marketing their facilities during the off season, especially during the holiday season for receptions and parties. During the golf season there may be a conflict with the golfers. Council member Jasiak felt the City could set the precedent that golf is not the only game in town and was interested in the course having the ability to host receptions and parties or have a classy new restaurant and be a revenue generator for the City. Parks and Recreation Director Stevens stated there were plans to expand the club house for such events, but the Golf Course Advisory Board felt the priority should be for golf. Council member Keany voiced his concern there may be a perception the City is competing with for-profit businesses. Council member Lipton asked if there would be any contracted services within the golf course. Parks and Recreation Director Stevens stated it would be a blend much like the City's recreation programs and similar to the Western Golf programs with the high schools. He noted the City has utilized the course for some ancillary use and worked very hard to bring the Pac 12 Cross Country Championships to the golf course as well as working with the school district for cross country. They have committed to continue the 4th of July event at the golf course and there has been discussion about bringing in food trucks and having events and festivals at the course. The Open Space Advisory Board and the Horticultural Advisory Board believe the golf course provides great educational opportunities to observe wild life and the riparian area. The Parks and Recreation Divisions are cross-training on parks and recreational programs. Council member Lipton inquired about the business model and the working capital for the first year and how it fits in with the budget. Parks and Recreation Director Stevens stated the initial figures for startup are $750,000 to $1 million. Council member Lipton stressed the importance of the business model and asked when the Council will have an opportunity to review the document. City Manager Fleming explained the expenditure projections incorporated in the City Council packet reflect $1 million dollars startup capital; $900,000 ongoing staffing costs and a total operating cost of $1.8 million. There are no revenue projections for 2014, but in 2015, revenues are projected at $1.8 million and escalating in the future. Parks and Recreation Director Stevens stated the revenue projections will be refined depending on the opening date of the golf course in 2015. Council member Lipton inquired about the debt service for the golf course. City Manager Fleming explained there will be no revenue for 2014 to repay the Water Fund and in 2013 the City only received $90,000 from Western Golf. Those payments will be delayed until 2015, and increased to get back on schedule. The staff and the Golf Course Advisory Board will provide the City Council with detailed operating costs based on both the history and the number of rounds projected, greens fees and revenues from different areas.