DRAFT

CITY OF ROCKY RIVER

JUNE 16, 2004

Parks and Recreation Committee

The meeting of the Parks and Recreation Committee was called to order by the Chairman, Mrs. Bobst, at 4:00 p.m. in the Council Chambers.

Parks and Recreation Committee Members Present: Mrs. Bobst, Mr. Hagan, Mr. Hurtuk,

Mr. Potterfield

Council members present: Mr. Gollinger, Mrs. Bartolozzi

Administration: Mayor Knoble, Mr. Patterson

Law Director: Not requested or required.

Recreation Facilities Task Force members present: John Cipriani, Tom Harper, Christine Jurs,

Mary Mathewson

Mrs. Bobst thanked members of the Recreation Facilities Task Force who were in attendance, and Director Patterson for all his work on the project to expand the Civic Center and improve the ice rink.

Mr. Patterson introduced Mark Dodds and Alex Pesta representing City Architecture, for a power point presentation giving details of the final preliminary plan. In giving a short background of the project, Mr. Patterson noted that the process had been ongoing for 15 months, with an especially busy time during the last 2 ½ months working with City Architecture on a preliminary design. During that time, the scope of the project has been defined, the square footage determined, cost estimates confirmed, revenue estimates calculated, and ice rink needs enumerated, among others. Two public meetings have attracted 350 participants. The consultant listened to public comments and questions, and changes were made to the plan between the two meetings.

Mr. Dodds voiced his appreciation to the City, noting that he had enjoyed working with Rocky River in trying to develop a strategy to expand the existing gym and community facilities. He then proceeded with the presentation, prepared originally for the second Task Force public meeting held on May 25. Bringing out points such as the benefits of retaining current residents and attracting new ones, he pointed out that inner ring suburbs are more competitive and their aim is to increase property values. He quickly reviewed the elements considered necessary by the Task Force and then presented images representing those elements taken from various existing facilities.

• •Lobby. This would be an extension of the existing lobby with the climbing wall as the focal point. The corridors to the other elements would be seen as streets.

• •Fitness Center. The equipment would be mostly cardio-vascular and would feature weight machines and possibly free weights. It would be staffed by an attendant who could explain the machinery to users.

• •Aerobics Rooms. There would be two, one with a harder surface, another with more resilience, allowing a variety of programs.

• •Teen Drop-in Center would be located immediately off the lobby in populated areas. The room would have games and be open to view from all directions so that it could be monitored without seeming to be.

• •Babysitting. This would be for parents using the facilities and actually in the building.

• •Aquatic Center. This would be a leisure/exercise pool, but not for competitive swimming. Four contiguous lanes would have deep water at one end which could accommodate a one-meter board and be used for water exercise or scuba. The second area would be a two-lane lap pool. Another area would have a zero depth entry with interactive water play equipment for younger users. This would also make it handicapped accessible. The water slide would allow for many users as turns would go quickly. The current stream/therapy channel would have multiple uses both as a lazy river and as exercise walking against the current.

• •Ice Rink. Both repairs and renovations were projected. A new roof has been needed for a long time and the old one has been frequently patched. Some steel on the mansard is also rusted. Mr. Dodds suggested changing the style at the same time which would give the building a more up-to-date appearance. If dormers, louvers or windows were added, it would add light and ventilation. The dasher boards need to be replaced and made taller. In this plan, the lobby would be renovated with a new desk. The locker room capabilities should also be increased. At present, there is no facility for women who play hockey. Larger and better storage facilities are also needed, as much equipment is inadequately stored. The rest rooms need to be enlarged and made ADA accessible.
  
  

Mr. Dodds then discussed the siting of the expansion. Using a map, he showed the first thoughts, adding to the gym area. After consideration, it was decided that the eastern side to the north was a better site because it was a greater distance from residences and had mature trees and vegetation to buffer it from those houses. A curved window will face south in the Aquatic Center and give natural light to the swimming area. The addition will have two levels, and the architecture has been designed to blend with the original, but in an updated manner. There will be only one entrance to the building. The second level will contain the Fitness Center and aerobics rooms.

Mr. Dodds finally discussed costs and revenues. The total project development budget is $9,941,000, with approximately $1.3 million of that allotted for the Hamilton Ice Rink. The projected cost to operate the facility will be $577,000 annually, and the projected revenue is $662,000. Not included in those revenues are user fees or rentals.

Mrs. Bobst thanked Mr. Dodds and asked for questions from Council members:

Mrs. Bartolozzi asked about the types and quantity of physical fitness equipment that were planned. Mr. Dodds said that a 5000 sq. ft. area is planned with 55-60 stations. When asked if the existing machines would be kept around the track, Mr. Dodds indicated that they had advised against it. It is mostly distracting to joggers or runners to have people crossing the track to and from the fitness facility.

Mrs. Bobst asked how the City Architecture arrived at the projected membership and retention numbers. Mr. Dodds responded that a very detailed plan was assembled and a special consultant was given census data and other materials. In making projections, they always try to be very conservative, estimating high operating costs and lower in revenue. Mr. Patterson added that his department had called Westlake, Strongsville, Middleburg Hts and Solon. He had asked for their membership and retention numbers and projected those percentages onto our population. Those figures showed that we can expect from 33% to 50% membership. Westlake currently is breaking even, and Middleburg Hts. has a high percentage of its population as members, although it has a different fee structure, due to subsidy by the local income tax..

Mrs. Bartolozzi asked about revenues from the current gym and track. Mr. Patterson reported that the figures have gone up from $45,000 in memberships to $60,000. He pointed out, however, that rates are low because facilities are limited.

Mr. Potterfield pointed out that currently there are approximately 2000 members and projected figures indicate that with a swimming pool and other facilities, the projection is that the figure will more than double with 3300 more members. Mr. Patterson reiterated that this is a conservative figure based upon the experience of others. Middleburg Hts. has been open for 3-4 years and Westlake is expanding.

Mr. Hagan explained that he was acting as devil's advocate when he asked two questions: why? and why now? He said that he has the impression that those outside the City believe that this is definitely going to happen, but he has not heard an outcry from residents that this is something that we need, and that not having it will decrease property values. He further questioned whether now is the right time. The City has recently been spending a good deal on capital improvements to the infrastructure. He considers these needed and wanted. While he agrees that something must be done to repair and maintain the ice rink, there is a huge leap from dire need to wanting. He is truly interested in this good idea, but in the absence of residents clamoring for it, he wonders if now is the time.

• •Mrs. Bobst pointed out that with the work of the Task Force, there has been momentum built up by the thoughtful consideration of the entire process, beginning with a survey of the community. This is certainly a "want", not a "need" like sewers or repaving, but at meetings, it is clearly an issue that raised interest and comments on both sides. She said that it is not up the City Council, but that Council's decision is whether the issue will go to the ballot. The further question is how financing will be done. After passing legislation for $7.6 million for infrastructure improvements and now looking at a potential $10 million, the financing question must be carefully considered.

She also expressed concern about the $577,000 which will be required to operate. If revenue projections do not hold, it could mean that almost $600,000 would be added to the operating budget of the City. These figures are conservative, but she feels that Council must be very honest in informing voters of the City's financial condition and what this undertaking may mean. The work of the Task Force has been completed in a timely manner, and there is some expectation that it will appear on the ballot.

Mr. Potterfield indicated that he didn't wish to duplicate Mr. Hagan's well-stated remarks, but he commented that, outside the meetings held on the subject, the feedback he has received is 75% to 80% from residents who have no interest in the project and do not wish to pay increased taxes to support it.

• •Mrs. Bobst pointed out that if the issue goes to the ballot, these residents will have the opportunity to vote against it.

Mr. Potterfield asked why it should be on the ballot when there are more pressing needs of streets, sidewalks and sewers.

Mr. Hurtuk, also playing devil's advocate, commented that in spending $7.6 million on the infra-structure, he received not one call on the need to do that. He feels that Council needs to focus on 2005-06-07 operations. With 2000 members paying an average $30 fee currently, future needs and projections will be much greater. He is concerned about the operating side. The current outdoor pool has had an attendance of about 34,000 and an operating cost of $180,000 to $190,000. With the planned enhancement, the operating cost for 2005 is expected to rise by $100,000 and the number of passes which will be sold is an unknown. With this new project, he would feel more comfortable with more history. He is sure that many residents would support it, but he feels we must be sure that revenues will be more than $500,000 because the City cannot underwrite more expense.

• •Mr. Patterson pointed out that historically, a gymnasium does not generate revenue. Because program scheduling is really the only way to create revenue, our gym has been very aggressively programmed, and the general fund subsidy has not had to be increased since the facility has opened.

Mr. Dodds agreed that gyms usually lose money because people do not feel they should pay to play in a gym. He also noted that fitness centers and aquatic facilities generate funds and programs with rentals and parties add to it.

Mr. Hurtuk then asked if we are up-to-date on the experiences of other communities.

• •Mr. Patterson said that Solon is ahead of schedule, that Westlake and Brunswick break even. Middleburg Hts. has a different philosophy, believing that recreation should be subsidized, so fees are low.

Mr. Hurtuk then asked about City Architecture's previous involvement with aquatic centers. Mr. Dodds responded that they have planned three natatoriums: Brunswick, Solon, and Punderson for the ODNR. To be sure that their budget figures were accurate, they sent their programs and sketches to a company prominent in the field which does 20 pools a year. That company confirmed City Architecture's figures for building costs. Mr. Dodds noted that some escalation in costs is being seen now, especially as steel prices spike, but he looks for things to calm. Mr. Hagan asked about the significance of the steel component, and Mr. Dodds said that it was 10-12% of the total.

Mr. Gollinger repeated the Mr. Hagan's question, Why now?

• •Mr. Patterson commented that the City has had the Civic Center for three years, and even when built, adding on was anticipated. The Triad survey came back strong. Public meetings were well-attended and interest is high.

Mr. Gollinger asked if any consideration has been given to the large senior population.

• •Mr. Patterson remarked that the Recreation Department wants those people in the building.

Mr. Gollinger pointed out that with the number of hundred-year storms the City has weathered, priorities have had to change. He suggested that this project could be more appropriately timed in a couple of years. He wondered how a delay would change cost estimates.

• •Mr. Dodds answered that for the last few years, the escalation has been at a modest 4%-5%. Whether or not it is affordable in the future is an unknown. He noted that a smaller facility could be built with the funds available at that time.
• •Mr. Patterson added that there will be a window of opportunity now as no school issue will be on the ballot this year. Further, the ice arena needs help.
  
  

John Cipriani, an RFTF member, added his comments: this year will be a good opportunity for a city-wide vote because it is a presidential election year and more voters will go to the polls. Momentum for this project has been building. In other communities, Avon Lake will be voting on a facility, and Westlake is seeking to expand. Interest rates are low and costs will increase in time. Because there will be so many voters, it will be a true representation of the opinion of the City.

Mrs. Bobst reviewed the steps in the process:

• •Council must decide whether or not to put the issue or any portion of it on the ballot, as well as the dollar amount to be spent.
• •Legislation is prepared, passed, and sent to the County Auditor.
• •The Auditor certifies it, calculates the millage necessary to raise the funds, and returns it to the City.
• •Another ordinance for the ballot issue is prepared which must be passed by Council
• •That ordinance is due at the Board of Elections no later than 4:00 p.m. on August 19.
  
  

Tom Harper, an RFTF member and resident since 1974, added his experiences. He said that he had been lukewarm on the project until he and other RFTF members visited area rec centers and saw new facilities, and the number of people using them. Rocky River does not have a town center. A building like this could be a center where people go frequently; it would raise their sense of community. He now supports this100%.

Mayor Knoble added that if you were to ask Mayor Patton of Fairview Park what her community needs the most, she would say a recreation center.

Mrs. Bobst indicated that committee members had a lot to digest. She suggested that the committee try to get closer to a conclusion at the next Committee-of-the-Whole as appropriate legislation must be drafted in time. The next meeting will provide an opportunity to discuss financing, review materials, and do further research.

Mr. Potterfield asked if the matter would be discussed at the Committee-of-the-Whole or in the Parks and Recreation Committee with a recommendation to Council. Mrs. Bobst felt that this is a large issue and that discussion of the Council is appropriate, but she said the decision could be made by the members present.

That will be decided at the conclusion of the meeting to follow.

The meeting was adjourned at 5:27 p.m.

_______________________________ _______________________________

Pamela E. Bobst, Chairman Misao Kurokawa

Parks and Recreation Committee Clerk of Council

Please note: This is a draft copy of the minutes of the Parks & Recreation Committee of June 16, 2004. These minutes may be amended or revised at the next meeting.

DRAFT

CITY OF ROCKY RIVER

JUNE 16, 2004

Finance Committee

The meeting of the Finance Committee was called to order by the Chairman, Mr. Hurtuk, at 5:27 p.m. in the Council Chambers.

Finance Committee Members Present: Mr. Hurtuk, Mrs. Bobst, Mr. Gollinger

Council members present: Mr. Potterfield, Mrs. Bartolozzi, Mr. Hagan

Administration: Mayor Knoble, Mr. Patterson

Also present: Mark Dodds, City Architecture

Law Director: Not requested or required.

Mr. Hurtuk introduced the topic by saying that his committee would consider options for financing the proposed improvements and expansion to the City's recreation facilities. Expressed simply, how to pay for the project. He asked the Mayor for his thoughts.

Mayor Knoble felt that his views were accurately reported in the Plain Dealer, and he has remained consistent: he feels the issue deserves to go to the voters. He does not believe that the renovation of the ice rink should be part of the same financing issue, but should be entirely separate. He sees the renovations to the ice rink as a maintenance issue. The voters should have the right to vote on a levy especially designated for the additions to the Civic Center. The remainder can be worked out in short term notes. He likes the project and would like to see it on the ballot.

Mr. Hurtuk wondered if the issue were to be successful on ballot, when taxes to support it would be increased. The Mayor responded that bonds would be issued in the first half of 2005 and the increase would be effective January 2005. Taxes bills will be issued in December 2005 and collected in the first quarter of 2006. Mr. Hurtuk concluded that the center would be opening as the increased tax bills were received.

Mr. Dodds added that the decision would be made in November. If successful, an effort would be made to begin construction in the spring of 2005 if resources are available to cover a 12-month project.

Mr. Hurtuk then asked Mr. Gollinger for his comments. Mr. Gollinger indicated that he had listened to Mr. Hurtuk and the Mayor. In looking at what other cities had done, it appeared to him that if Rocky River wishes to do this equitably in terms of people who are using the facility paying for it, he favors some form of income tax increase rather than property tax. He cautioned that if it is not put together properly, it will fail. If it goes to ballot, Council should be sure that it has a good chance of success since it carries their recommendation. Whatever happens will affect City Council members. He feels that an income tax would work best. He wondered what percentage of seniors use the services at the Senior Center.

Mr. Hurtuk wondered if those paying income tax would be more likely to use recreation facilities than those paying real estate tax. He asked if the Administration knows what percentage of people work in the City but don't live here. Mrs. Bobst mentioned that the question had been asked, but as yet, not answered. Mr. Hurtuk added that our payroll tax has remained constant.

Mr. Potterfield commented that the financial aspect is the bottom line. Residents are looking for information on how it impacts them.

Mr. Hurtuk has looked at the initial cost, but what worries him are future expenses that could be incurred.

Mrs. Bobst commented that the senior population will be encouraged to use the new facilities, and that many features of exercise and rehabilitation were selected to address their needs. She is not sure that she agrees that the income tax is the best option, but is considering the property tax. If the income tax option should be chosen, she favors a credit for residents. She thinks that actual users, through membership fees, should pay the largest share. As to the ice rink, she feels that there is more renovation than repairs and maintenance. Some of the larger renovations might be appropriate for the ballot issue.

Mrs. Bartolozzi felt that there were too many ideas to process at this time, and will consider the possibilities before the Committee-of-the-Whole

Mr. Hagan understands the Mayor's views. He would like to see how the options being considered have served suburbs which have recently constructed facilities. He asked if the income tax increase being considered would be 1/4%, and the conclusion was that that was accurate. He said that he would also like to see a comparison of the income tax with a bond levy to see which is the less expensive option. His first impression is the bond issue.

Mr. Hurtuk would like to know what will appear on the 2005 budget. He is concerned about overall operations because he realizes that the $7.6 million bond issue now being arranged will add $450,000 to $500,000 a year for 25 years at 4% to 5% interest. The Mayor noted that .1% of additional income tax will net about $750,000 per year. Mr. Hurtuk commented that it is not necessary to put anything on the ballot, but if it chooses to do so, Council needs to be focused on the total cost of operating the City, not just a single point of time when construction occurs. As to timing, steel prices may not go down and the cost to build may be different in the next several years. For now, he feels that focus on a recommendation is necessary, and he will follow up with Ms. Wollenzier and Mr. Thomas for numbers that can be analyzed. Mr. Patterson has already provided information on other communities, but if something from the past year is available, Mr. Hurtuk would find it helpful. The Mayor also observed that it is possible that a higher income tax might discourage business owners from locating in the City. This warrants a full discussion. The property tax could be geared to authorize the bonds, and only that amount over a specific period of time. Only the amount necessary to retire the bonds would be collected.

Mayor Knoble also believes that seniors will use the facility because it is designed that way. At one time, it was thought best to totally detach the Senior Center. What we are seeing now is seniors meeting with Parks and Recreation working on joint programs and there is a great deal more crossover.

Mr. Gollinger asked about the number of seniors who would use the facility versus those that own property.

• •The Mayor responded that we do not know the number of non-resident property owners that are in the City. He explained that a person could own a home here, pay taxes, but be a resident of Florida, for example, so unable to vote here. They would benefit without any payment if the income tax were chosen.

Mr. Gollinger asked if landlords pay income tax.

• •The Mayor said that they do if they operate a property as a business. The Code requires income tax on the net profits.
  
  

As the meeting was drawing to a close, Mr. Hurtuk asked Council members with questions or ideas to call him during the week. On Monday, current bonding needs of $7.6 million will be discussed, and the refinancing of our current $6 million bond. An investment advisor will need to do some sophisticated analysis to determine savings.

It was also decided that the recreational and financial issues will be discussed next week at the Committee-of-the-Whole rather than in individual committees.

The meeting was adjourned at 6:00 p.m.

_______________________________ _______________________________

Brian A. Hurtuk, Chairman Misao Kurokawa

Finance Committee Clerk of Council

Please note: This is a draft copy of the minutes of the Finance Committee of June 16, 2004. These minutes may be amended or revised at the next meeting.