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HomeMy WebLinkAboutAgenda CC 10.27.2009 WorkshopNotice of Meeting of the Governing Body of the City of Georgetown, Texas OCTOBER 27, 2009 The Georgetown City Council will meet on OCTOBER 27, 2009 at 4:00 P.M. at the Council Chamber at 101 E. 7th Street If you need accommodations for a disability, please notify the city in advance. Policy Development/Review Workshop - A Presentation and discussion on Lake Georgetown Project -- Kimberly Garrett, Parks and Recreation Director and Randy Morrow, Community Development Director B Presentation of "Community of Choices" DVD -- Patty Eason, Councilmember District 1 and John Marler, President of MarFam Computer Solutions Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. C Sec.551.071: Consultation with Attorney 1. Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including this week's agenda items 2. First Citizens Bank & Trust Company v. City of Georgetown,Cause No. D-1-GN-08-02325, 53rd Judicial District, Travis County, Texas D Sec 551.072: Deliberation about Real Property - 1. Discussion concerning the acquisition of a 31.61-acre parcel of land in fee simple for road right-of- way and a 0.487-acre parcel for a permanent utility easement, both parcels being out of a 164-2/3 acre tract of land owned by James David Honeycutt described in Document No. 199983673 of the Official Records of Williamson County, Texas, in connection with the Southeast Arterial One Roadway Project - Terri Glasby Calhoun, Real Estate Services Coordinator and Jim Briggs, Assistant City Manager for Utility Operations - 2. Discussion concerning the acquisition of 0.180-acre parcel of land for a permanent utility easement and a 0.468-acre parcel of land for a temporary construction easement out of a tract of land described as Parcel 5, a called 12.50-acre tract of land owned by Delia Cocke Griffin and Fayette Francis Griffin, husband and wife, as described in Document No. 2002072799 of the Official Records of Williamson County, Texas, in connection with the 16" Sun City Irrigation Line Project - Terri Glasby Calhoun, Real Estate Services Coordinator and Jim Briggs, Assistant City Manager for Utility Operations - 3. Discussion concerning the acquisition of a 30-foot-wide permanent wastewater utility easement consisting of 1.59 acres and three (3) 20-foot-wide temporary construction easements adjacent thereto consisting of (1) 1.062 acres along the entire eastern boundary of the easement; (2) 0.695 acres along a portion of the western boundary of the easement; and (3) 0.045 acres along a portion of the northern boundary of the easement; all on land owned by APW Corporation described as "Drainage and Park Area" in University Park, Section, a subdivision of record in Cabinet G, Slide 163, Plat Records of Williamson County, Texas, in connection with the SPG-1 Wastewater Line Project - Terri Glasby Calhoun, Real Estate Services Coordinator, Jim Briggs, Assistant City Manager for Utility Operations E Sec. 551.074 Personnel Matters - Discussion regarding the goal setting criteria for the City Manager F Sec.551.086 Competitive Matters - Discussion regarding a Memorandum of Understanding (MOU) between the City of Georgetown and City Public Service (CPS Energy) of San Antonio related to power supply issues -- Jim Briggs, Assistant City Manager for Utility Operations Adjournment Certificate of Posting I, Jessica Hamilton, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the _____ day of _________________, 2009, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. __________________________________ Sandra Lee, City Secretary City of Georgetown, Texas October 27, 2009 SUBJECT: Presentation and discussion on Lake Georgetown Project -- Kimberly Garrett, Parks and Recreation Director and Randy Morrow, Community Development Director ITEM SUMMARY: This workshop will give an overview of the report the City of Georgetown received on the Lake Georgetown Project from an independent consultant in the camping industry. In April 2009, the Mayor and Council directed staff to continue pursuing options with the Corp of Engineers at Lake Georgetown on a long term lease to operate the lake parks. Staff contacted Brian Schaeffer, President of Texas Advertising and Executive Director of the Texas Association of Campground Operators to give the City an independent report of the feasibility of the project. On July 28, 2009, Brian Schaeffer along with City staff and Parks Board members Kent Buikema and Bill Mateja toured Russell Park, Cedar Breaks Park and Jim Hogg Park. The Parks and Recreation Advisory Board reviewed the report at their October 8, 2009, board meeting. Mr. Schaeffer’s report is very favorable in pursing a long term lease in operating the parks at Lake Georgetown. Mr. Schaeffer’s recommendation is to meet with the Corp of Engineers Regional Offices to discuss specific options on a plan that would work for the City of Georgetown. FINANCIAL IMPACT: SUBMITTED BY: Kimberly Garrett, Parks and Recreation Director ; Randy Morrow, Director of Community Services ATTACHMENTS: Lake Georgetown Report Website References Cover Memo Item # A Texas Advertising. net Lake Georgetown Project Upscale RV Park/Campground Presented for: Kimberly Garrett, Director Georgetown Parks and Recreation October 7, 2009 Presented by: Brian Schaeffer, President Texas Advertising Attachment number 1 Page 1 of 13 Item # A 2 Background The Corps of Engineers recently approached the City of Georgetown in the hopes of securing a partnership / long term lease. Similar to arrangements like the cities of Grapevine, Lewisville and several other Texas cities and Corps of Engineer lakes where a separate entity would operate and maintain lake parks in the form of an upscale RV campground to include various types of revenue streams and services to the local community and travelers who would bring added income to the area. The Corps of Engineer is very interested in the City of Georgetown partnering to upgrade, market and maintain a campground-type / meeting facility / robust recreation area on Lake Georgetown in the vein of mutual trust and adequate funding. In the case of the City of Grapevine, they took over the Vineyards Campground on Lake Grapevine in 2005 with a series of six month leases while operating the campground. A CO bond was issued for the improvements and paid back through revenue on the campground. An enterprise fund was established to pay back the bond as part of expense and debt service. Operational duties like landscaping were contracted out. Attachment number 1 Page 2 of 13 Item # A 3 The pros of operating a campground / recreational venue, from the cities perspective, are the opportunity to use current facilities as a means to attract residents for recreational opportunities as well as special events providing additional revenue opportunities. The cons, also from the cities perspective, will be the necessary upgrades needed to the infrastructure as well as taking over maintenance and having to manage staff contracts. As far as potential stoppages, Mother Nature, through droughts and floods can be a problem. However, park areas at Lake Georgetown are set on high bluffs so a potential flood should not inhibit the parks operation. As for drought, the ramps are constructed to be open even under severe conditions like those experienced in the past year. As far as issues pertaining to the City of Georgetown specifically, there are not many opportunities to develop new recreation areas with a venue like Lake Georgetown. Therefore, taking advantage of existing opportunities is important. That opportunity has materialized in the form of a potential, city / Corps of Engineers partnership on Lake Georgetown. Attachment number 1 Page 3 of 13 Item # A 4 Current Environment There is currently day use offered at Russell Park on Lake Georgetown. However, there is a desire to be more versatile from the Corps of Engineers but funds are an issue. Camping at Lake Georgetown facilities has been very stable despite the closing of some ramps on the lake, which was the first time that had ever happened. In revenue, the current operations come close to breaking even every year. An interesting side note is that the Corps must honor various deep discounts (up to 50%) whereas a partnership would provide higher, more stable fees. There is an existing clientele in place for future operations should an upscale campground be developed. Furthermore, the lake is located near a major area (Austin) with a large population that needs to recreate and that brings in activities like corporate retreats, family reunions and various community events involving kayaking, rowing, boating, etc into play. Funding Funding, significant improvements and extensive maintenance are tough at the moment which is why the Corps of Engineers is very interested in a partnership regarding maintenance and funding of upgrades. A partnership with the city, which has already proven successful on another project, has less risk than a private enterprise needing to fund the project through a bank. Attachment number 1 Page 4 of 13 Item # A 5 However, it will be up to the city, the corps and perhaps an outside consultant to fully review options for partnerships. The mutual goal is to provide a better consumer experience and enhance the community standing through existing assets while exploring untapped opportunities. A key goal is to keep funds within the local project rather than having them go to various ‘general’ funds. The RV Industry To properly analyze the RV industry, one must analyze every step of the RV purchasing and owning process. The campground segment as a whole has not seen the same volatility as the rest of the economy over the past 12-15 months. Certain businesses did see a decline in business but those were largely related to RV dealers and manufacturers. However, even this worst performing sector has seen a recent increase in business. RV shipments from manufacturers increased 16% in August 2009 over July 2009 (USAToday.com, 9/30/09) and 5.3% from August 2009 to August 2008 (Dow Jones, 9/28/09). In fact, recent RV consumer shows around the country over the last six months have set records for attendance. So the life style appetite is as strong as ever. However, it’s important to remember that RV sales and shipments do not correlate to RV campgrounds. People still own RV’s, and in some cases, were prevented from selling them because of the economy. Regardless, RV’ers still chose to use their motor homes and travel trailers as much or, in Attachment number 1 Page 5 of 13 Item # A 6 some cases, more than ever before because camping is still the ‘best- value’ family vacation or staycation. The two largest RV park and campground operating companies (franchisors), Kampgrounds of American (KOA) and Leisure Systems, Inc (Yogi Bear Jellystone) both expect increases over last year’s occupancy in the amount of 1.1% and 5% respectively (WisBusiness.com, 9/30/09). A more relevant indicator would be campground business in Texas which is experiencing strong occupancy numbers and revenue with some parks seeing a 13% increase (San Antonio Business Journal, 9/29/09). It is worth noting that parks with the most robust activities scheduled and the widest variety of amenities are the parks whose business has increased 10-20% annually over the last three years – despite the economic downturn. Cabin and Cottage Rentals Lake Georgetown currently utilizes a few primitive cabins for lodging use. However, these cabins are currently being, or will be, upgraded and be completely furnished with beds and linens along with other furniture. By raising prices to between $80.00-$120.00 per night, the cost of upgrading the current cabins should be made up between 12-18 months. Additionally, Attachment number 1 Page 6 of 13 Item # A 7 by adding additional furnished cabins (park models) and slightly increasing the nightly rate, the costs should be recouped in 24-36 months. The cabins bring in business such as family reunions, church retreats, corporate retreats, etc. These are folks looking to experience the camping life style without an investment in an RV. This would also increase usage of meeting rooms, pavilions, and other facilities on Lake Georgetown which should be priced separate with discounts tied to the number of cabins or camp sites being used. Kayaking, Rowing and Golf Carts Kayak rentals are another revenue stream to be investigated. For example, the Vineyards Campground purchased four kayaks for the past summer season at a total cost of approximately $2,400. During the summer season, rental fees collected were approximately $3,000 putting the park in a pure profit position going forward. Attachment number 1 Page 7 of 13 Item # A 8 Rowing clubs and state, regional, and national events are another source of revenue as these visits result in cabin rentals, RV site rentals and revenue to camp stores throughout the development. In a project that is spread out like Lake Georgetown, it affords the opportunity to rent two-person and four-person golf carts. These are particularly popular with family reunions and group rallies. Marinas Attachment number 1 Page 8 of 13 Item # A 9 The surface acreage of Lake Georgetown is approximately 1310 or 18% of Lake Grapevine’s 7280. Currently, Lake Grapevine has approximately 1,300-1,400 commercial boat slips operated by Marinas International. This company feels there is potential for commercial marinas on Lake Georgetown, although the process would be expensive and time- consuming; we believe that a feasibility study should explore this revenue stream as well. In addition to the income from the marina, there may also be income derived from boat trailer storage areas. Constructing marinas including fuel and food options is an expensive proposition, but if done right, by the right partners – these type of amenities can elevate the project to a whole other level of operations and profitability. Attachment number 1 Page 9 of 13 Item # A 10 Camp Stores At locations such as Lake Georgetown, the presence of camp stores can prove very helpful to patrons and profitable to the operators. Although Lake Georgetown is close to the city, it is a proven fact that many RVers, campers, and day-use clients like the convenience of having a camp store on-site. As a side benefit, many campground rating institutions, such as Woodall’s and Trailer Life allow extra ‘points’ within their rating system for developments that have camp stores. Camp stores are a proven revenue stream, particularly within franchised operations such as KOA and Yogi Bear Jellystone Parks. Initial Assessment – Lake Georgetown The consultant recently visited the area to assess the feasibility of greatly improving / renovating / building an upscale RV park / campground facilities / various ancillary revenue streams. In the initial tour, it appears that all potential locations have good roads, shelters and infrastructure which will greatly expedite the construction / upgrading process. There is also a base of business that exists that has been Attachment number 1 Page 10 of 13 Item # A 11 developed with minimal marketing. The upside potential of the project is almost limitless, especially if the right partnership is struck. This would include a balance of funds for upgrades, maintenance, marketing and general operations. The Next Step There would have to be some initial feasibility work done but not near as much as a project from scratch. The reason being there are current facilities along with prior examples of city / Corps partnerships. Any feasibility study would ultimately dove-tail into a Request for Bids process. What must occur first is a determination of what type of specific mechanism would be used to establish a partnership between the City of Georgetown and the Corps of Engineers. Options might include a standard parks and recreation lease, wherein the Corps would be removed from operations and funding which would give the city maximum control over the project but also encompasses the most risk. On the other hand, an association partnership, wherein the city and Corps would work together and a new entity / association (typically in the form of a 501 (C) 3 corporation - controlled by the city) could take advantage of Corps funding, city funding, and added revenue streams to maximize improvements, maintenance, marketing and day-to-day operations. The latter concept is being used more often in current city / Corps projects Attachment number 1 Page 11 of 13 Item # A 12 partly due to changes in regulations effecting Corps properties and standard leases and it allows all funds from all sources to stay with the project. It is also possible to mix and match arrangements within a project of this scope. It should be noted that developing a new 501 (C) 3 corporation can take a couple of years, so time is of the essence. Bottom line, the consultant recommends that meetings occur with Corps of Engineers regional offices in Lewisville and specific options be laid out with some general projections included for further consideration by the city. In effect, this would be a miniature feasibility study focused primarily on the best method of moving forward. The Corps does not require ‘feasibility studies’ – they are looking for a ‘logical plan’ – as is the City of Georgetown – further exploration should provide these answers. A final word regarding timing is that the advantages of moving forward at this time is that over the next couple of years the cost of raw materials should be lower than they have been in the past due to the economic down turn. In addition, the cost of labor should be lower and more readily available in the short term. Finally, the campground sector (as noted above) has been, for the most part, recession-proof while related RV industries have seen an uptick in business. Waiting until a full economic Attachment number 1 Page 12 of 13 Item # A 13 recovery is a possibility but material, labor and financing costs would most likely be higher. Attachment number 1 Page 13 of 13 Item # A Attachment number 2 Page 1 of 5 Item # A Attachment number 2 Page 2 of 5 Item # A Attachment number 2 Page 3 of 5 Item # A Attachment number 2 Page 4 of 5 Item # A Attachment number 2 Page 5 of 5 Item # A City of Georgetown, Texas October 27, 2009 SUBJECT: Presentation of "Community of Choices" DVD -- Patty Eason, Councilmember District 1 and John Marler, President of MarFam Computer Solutions ITEM SUMMARY: This video is shown to all new Main Street Managers in Texas (The Main Street Program is a national program designed to promote economic development through Historic preservation). Chris Dyer at the Williamson Museum showed this DVD at the Museum for the whole month of May, which is Preservation Month. This video shows how communities can benefit economically by maintaining their unique character. It gives examples of how towns have worked with national chain stores and restaurants to build local establishments that blend in with the communities. It does not have to be a choice between economic development and compatibility with the communities unique character. FINANCIAL IMPACT: SUBMITTED BY: Patty Eason, Councilmember District 1 Cover Memo Item # B City of Georgetown, Texas October 27, 2009 SUBJECT: Sec.551.071: Consultation with Attorney 1. Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including this week's agenda items 2. First Citizens Bank & Trust Company v. City of Georgetown,Cause No. D-1-GN-08-02325, 53rd Judicial District, Travis County, Texas ITEM SUMMARY: FINANCIAL IMPACT: SUBMITTED BY: Jessica Hamilton, City Secretary Cover Memo Item # C City of Georgetown, Texas October 27, 2009 SUBJECT: Sec 551.072: Deliberation about Real Property - 1. Discussion concerning the acquisition of a 31.61-acre parcel of land in fee simple for road right-of-way and a 0.487-acre parcel for a permanent utility easement, both parcels being out of a 164-2/3 acre tract of land owned by James David Honeycutt described in Document No. 199983673 of the Official Records of Williamson County, Texas, in connection with the Southeast Arterial One Roadway Project - Terri Glasby Calhoun, Real Estate Services Coordinator and Jim Briggs, Assistant City Manager for Utility Operations - 2. Discussion concerning the acquisition of 0.180-acre parcel of land for a permanent utility easement and a 0.468-acre parcel of land for a temporary construction easement out of a tract of land described as Parcel 5, a called 12.50-acre tract of land owned by Delia Cocke Griffin and Fayette Francis Griffin, husband and wife, as described in Document No. 2002072799 of the Official Records of Williamson County, Texas, in connection with the 16" Sun City Irrigation Line Project - Terri Glasby Calhoun, Real Estate Services Coordinator and Jim Briggs, Assistant City Manager for Utility Operations - 3. Discussion concerning the acquisition of a 30-foot-wide permanent wastewater utility easement consisting of 1.59 acres and three (3) 20-foot-wide temporary construction easements adjacent thereto consisting of (1) 1.062 acres along the entire eastern boundary of the easement; (2) 0.695 acres along a portion of the western boundary of the easement; and (3) 0.045 acres along a portion of the northern boundary of the easement; all on land owned by APW Corporation described as "Drainage and Park Area" in University Park, Section, a subdivision of record in Cabinet G, Slide 163, Plat Records of Williamson County, Texas, in connection with the SPG-1 Wastewater Line Project - Terri Glasby Calhoun, Real Estate Services Coordinator, Jim Briggs, Assistant City Manager for Utility Operations ITEM SUMMARY: FINANCIAL IMPACT: SUBMITTED BY: Jessica Hamilton, City Secretary Cover Memo Item # D City of Georgetown, Texas October 27, 2009 SUBJECT: Sec. 551.074 Personnel Matters - Discussion regarding the goal setting criteria for the City Manager ITEM SUMMARY: FINANCIAL IMPACT: SUBMITTED BY: Jessica Hamilton, City Secretary Cover Memo Item # E City of Georgetown, Texas October 27, 2009 SUBJECT: Sec.551.086 Competitive Matters - Discussion regarding a Memorandum of Understanding (MOU) between the City of Georgetown and City Public Service (CPS Energy) of San Antonio related to power supply issues -- Jim Briggs, Assistant City Manager for Utility Operations ITEM SUMMARY: FINANCIAL IMPACT: SUBMITTED BY: Jessica Hamilton, City Secretary Cover Memo Item # F