THE PARKS, PUBLIC
UTILITIES, AND TECHNOLOGY
COMMITTEE WILL COME TO
ORDER ALSO KNOWN AS PUTC.
WILL THE CLERK PLEASE CALL THE
ROLL?
>> COUNCILMEMBER KETTLE?
>> HERE.
>> COUNCILMEMBER RIVERA?
>> PRESENT.
>> COUNCILMEMBER STRAUSS?
COUNCIL PRESIDENT NELSON?
>> PRESENT.
>> CHAIR HOLLINGSWORTH?
>> I'M HERE.
>> THERE ARE FOUR
COUNCILMEMBERS
PRESENT.
>> THANK YOU SO MUCH, BEST CLERK
IN THE WORLD.
TODAY THE COMMITTEE IS GOING
TO HEAR AND CONSIDER THE
APPROVAL OF AN APPLICATION FOR
CURRENT USE OF TAXATION.
WE ALSO ARE GOING TO HEAR AN
APPROVAL OF PARKS GOLF
COURSE MANAGEMENT AND OPERATION
AGREEMENT, AND WE WILL END
WITH A 2024 AUDIT FOR THE
SEATTLE PUBLIC UTILITIES.
TODAY. AND WE'RE GOING
IF THERE ARE NO OBJECTION, THE
AGENDA WILL BE ADOPTED.
HEARING NONE, THE AGENDA IS
ADOPTED. WE ARE GOING TO NOW
MOVE TO
PUBLIC COMMENT.
I'M GOING TO -- THE
PUBLIC COMMENT PERIOD -- HYBRID
PUBLIC
COMMENT PERIOD, SHOULD BE
RELATED TO ITEMS ON
TODAY'S AGENDA OR BE WITHIN THE
PURVIEW OF THE COMMITTEE.
THERE'S A PUBLIC HEARING
FOR ITEM COUNCIL BILL 120997 AND
THE PUBLIC HEARING WILL
BEGIN SHORTLY AFTER THE PUBLIC
COMMENT PERIOD.
IF YOUR COMMENTS RELATE TO
ITEM NUMBER ONE, PLEASE
HOLD YOUR COMMENTS UNTIL WE ARE
--
UNTIL WE OPEN THE PUBLIC
HEARING.
BEFORE WE BEGIN, LET THE
RECORD REFLECT WE'RE JOINED
BY COUNCILMEMBER STRAUSS.
WELCOME.
>> THANK YOU. GOOD AFTERNOON.
>> CLERK, HOW MANY SPEAKERS
DO WE HAVE?
>> WE HAVE ONE IN PERSON AND
ONE SIGNED UP REMOTELY.
>>
AWESOME. EVERY SPEAKER WILL GET
TWOTWO
MINUTES.
AND I'LL READ THE INSTRUCTIONS.
THE PUBLIC COMMENT PERIOD
WILL BE MODERATED IN THE
FOLLOWING
MANNER.
SPEAKERS WILL BE CALLED IN
THE ORDER IN WHICH THEY
REGISTERED ON THE COUNCIL'S
WEBSITE AND
SIGNUP SHEET HERE IN THE COUNCIL
CHAMBERS STARTING WITH IN-
PERSON SPEAKERS FIRST.
IF YOU HAVE NOT REGISTERED TO
SPEAK BUT WOULD LIKE TO, YOU
CAN SIGN UP BEFORE THE END OF
THE PUBLIC COMMENT PERIOD ON
COUNCIL'S WEBSITE.
THE LINK IS LISTED ON
TODAY'S END, OR YOU CAN SIGN UP
WITH THE
SIGN- IN SHEET.
WHEN SPEAKING, PLEASE BEGIN
BY STATING YOUR NAME AND THE
ITEM YOU ARE ADDRESSING WITHIN
THE PURVIEW OF THE COMMITTEE.
SPEAKERS WILL HEAR A CHIME -
- THIS IS IMPORTANT -- YOU'LL
HEAR A CHIME.
THAT MEANS YOU HAVE TEN
SECONDS LEFT OF THE ALLOTTED
TIME.
IF SPEAKERS DO NOT END
THEIR COMMENTS AT THE TIME
ALLOTTED, THE SPEAKER'S
MICROPHONE WILL
BE MUTED SO WE CAN CALL ON THE
NEXT
PERSON.
THE FIRST PERSON FOR PUBLIC
COMMENT WILL NOW BE CALLED,
AND YOU WILL GET TWO MINUTES.
I'M ASSUMING IT'S MS. MALONE?
>> CORRECT.
>> PLEASE.
MS. MALONE, WELCOME.
>> I'M CAROLYN MALONE AND MY
COMING UP IS VERY IMPORTANT,
THE MALIGNANT RACISM HERE AT
CITY
HALL.
I EXPERIENCE EACH TIME I COME IN
BECAUSE I PROTEST AGAINST
POLICE BRUTALITY FROM SECURITY
TO
STAFF PEOPLE TO SARA NELSON,
THE COUNCIL PRESIDENT.
WHENEVER I GO ACROSS THE
STREET, PROTEST DIRECTLY IN
FRONT OF
THE POLICE DEPARTMENT, SARA
FINDS
A LITTLE NICHE TO MONITOR ME
PROTESTING, EXERCISING MY CIVIL
RIGHT, MY LEGAL CONSTITUTIONAL
RIGHT.
ON ONE SIDE OF CITY HALL IS A
LARGE UKRAINIAN FLAG.
I SUPPORT THE UKRAINIANS.
ON THE OTHER SIDE IS A POSTER
STATING, LET IT BE NO
QUESTION WE -- BLACK LIVES
MATTER.
APPARENTLY MINE DOES NOT HERE.
AS SOON AS I WALK INTO THE
BUILDING, I SEE THE SAME PEOPLE
COMING OUT TO MONITOR,
PHOTOGRAPH, ME.
THE SECURITY PERSON IS ONE OF
THEM. AND IT GOES ACROSS
DIFFERENT
ETHNICITIES OF SECURITY.
PEOPLE MONITORING, WATCHING MY
BEHAVIOR.
I'M NOT A VIOLENT PERSON.
BUT ONE PERSON COMES IN, ALEX
TSIMERMAN, HE CURSE, GIVES THE
GERMAN HITLER SALUTE.
HE'S TOLD
THAT'S NOT APPROPRIATE, AND
HE'S
TREATED LIKE ROYALTY.
I'M TREATED LIKE A PARIAH.
AND AT SOME POINT I LOOK
FORWARD TO TALKING TO THE MAYOR
ABOUT IT
AND THE NEW CHIEF OF POLICE,
BECAUSE THERE'S NO REASON TO
TREAT ME DIFFERENTLY.
I HAVE A CONSTITUTIONAL RIGHT
TO PROTEST
POLICE BRUTALITY IN A NONVIOLENT
MANNER.
>> THANK YOU, MS. MALONE.
BEAR NOW WE'RE NOW GOING TO
MOVE TO
VIRTUAL PUBLIC COMMENTERS.
ONCE YOUR NAME IS CALLED,
PLEASE PRESS STAR 6 TO UNMUTE
YOURSELF, AND, MR. DAVID
HAYNES, YOU ARE OUR ONLY PUBLIC
COMMENT
SPEAKER ON LINE.
STAR 6 TO UNMUTE YOURSELF
AND YOU CAN GO AHEAD WITH YOUR
PUBLIC COMMENT.
>> WHY IS IT THERE'S TWO
MANAGEMENT COMPANIES FOR THE
GOLF COURSES?
ARE THEY MAKING MILLIONS OF
DOLLARS OFF OF THE PUBLIC GOLF
COURSES? I MEAN, I LIKE THE IDEA
THEY WOULD MANAGE IT BETTER THAN
THE
GOVERNMENT, WHO REALLY
CAN'T MANAGE ANYTHING PROPER.
IT'S JUST THE QUESTION AS TO
HOW
MANY MILLIONS OF DOLLARS DO THEY
MAKE OFF THE FOUR GOLF COURSES.
ANYWAY, I'M KIND OF CONCERNED
ABOUT THE FACT THAT YOU'RE ALL
GOING TO GIVE SOME SORT
OF PROPERTY TAX VALUE DISCOUNT
FOR ONE PARTICULAR PROPERTY,
AND INSTEAD OF GIVING A REPRIEVE
ON
EVERYBODY, YOU'RE JUST GOING TO
DUMP THAT RESPONSIBILITY OF THAT
PROPERTY TAX AND JUST
MAKE OTHERS AROUND THE
NEIGHBORHOOD PAY FOR IT.
I MEAN, THAT'S KIND OF TWISTED.
BUT, ANYWAY, I CAN'T FIND MY
SPEECH, SO I JUST WANT TO
BRING UP THE FACT THAT COUNCIL
STILL HASN'T ADDRESSED THE FACT
THAT YOU HAVE A SERIOUS PROBLEM
AT PROBLEM AT THE PARK ABOUT
DEVIANT
PREDATORY, PERVERTED,
LIKE, NAKED PEOPLE.
JUST BECAUSE THE TE
LAW ISN'T CLEAR, THE CITY
COUNCIL CAN
BE CLEAR ABOUT, YOU'RE NOT
ALLOWED TO DO THAT ANYMORE.
IT'S OBVIOUS THE CITY COUNCIL
IS AFRAID OF THE LGBTQ
VOTING BLOCK BECAUSE THEY LIKE
TO BE
ABUSIVE AND MEAN- SPIRITED AND
COUNCIL IS
CONSTANTLY PULLING THE
PUNCHES EVEN WHEN THEY WANT TO
PERSECUTE
INNOCENT CHRISTIANS.
I THINK THE COUNCIL NEEDS TO BAN
THE NUDE AND LEWD ACTS AT THE
PARK.
THANK YOU.
>> THANK YOU, MR. HAYNES.
SO THE PUBLIC -- IF THERE'S
NO OTHER PERSON SIGNED UP TO
SPEAK, THEN THAT WILL END OUR
PUBLIC
PERIOD.
WE ARE GOING TO MOVE ON TO THE
ITEMS OF BUSINESS.
AGENDA ITEM NUMBER ONE.
COUNCIL BILL 120997,
AN ORDINANCE RELATING TO
CURRENT USE TAXATION, APPROVING
AN APPLICATION FOR CURRENT
USE TAXATION
OF PROPERTY LOCATED AT 9666 51st
STREET AVENUE
SOUTH UNDER THE KING COUNTY
PUBLIC BENEFIT RATING SYSTEM.
THIS IS FOR PUBLIC HEARING,
BRIEFING, DISCUSSION, AND
POSSIBLE VOTE.
SO I NEED TO, AS PRESIDING
OFFICER, I AM NOW OPENING THE
PUBLIC HEARING
ON COUNCIL BILL 12099.
CLERK, HOW MANY
SPEAKERS DO WE HAVE SIGNED UP?
>> ZERO IN PERSON AND ZERO
REMOTE SPEAKERS.
>> OKAY, SO THERE'S NO PUBLIC
COMMENTERS. WE WILL NOW END THE
PUBLIC
COMMENT PERIOD.
AND SO THERE'S NOT ANYONE
PRESENT ON CB 120997, AND SO THE
PUBLIC HEARING IS NOW CLOSED.
THANK YOU, KARINA.
YOU ARE MORE THAN WELCOME
TO JUMP INTO YOUR PRESENTATION,
AND
WE WILL DISCUSS WHAT WE ARE --
THE CURRENT
TAXATION.
>> THANKS SO MUCH.
GOOD AFTERNOON, COMMITTEE
MEMBERS.
I'M KARINA BULL WITH CENTRAL
STAFF, AND TODAY I'LL BE
PRESENTING INFORMATION
ON COUNCIL BILL 120997 WHICH
WOULD
APPROVE AN APPLICATION FOR THE
USE TAXATION
PROGRAM THAT REDUCES PROPERTY
TAXES
IN EXCHANGE FOR LONG- TERM
OPEN SPACE PRESERVATION.
THIS PARTICULAR APPLICATION
IS FOR A 1. 4 ACRE PROPERTY
IN DISTRICT 2 THAT IS OWNED BY
THE INDIGENOUS CREATIVES
COLLECTIVE, AN
INDIGENOUS-LEAD NONPROFIT
ORGANIZATION.
ALL RIGHT. AS FAR AS BACKGROUND
ON THE
CURRENT USE TAXATION
PROGRAM, IT IS ESTABLISHED BY
STATE LAW
AND PROVIDES AN INCENTIVE
FOR PROPERTY OWNERS TO
VOLUNTARILY
MAINTAIN OPEN SPACE BY TAXING
IT THE PROPERTY AT A LOWER
RATE BASED ON ITS CURRENT USE
RATHER THAN THE POTENTIAL MARKET
VALUE FOR ITS MOST PROFITABLE
USE SUCH
AS RESIDENTIAL OR COMMERCIAL
PURPOSES. IN RECENT YEARS THE
CITY
HAS APPROVED PROPERTIES IN
SEATTLE FOR THIS PROGRAM THAT
INCLUDE
HAZEL HEIGHTS AND NEAR
JUDKINS PARK AND THE OPEN SPACE
SURROUNDING A CITY LANDMARK IN
THE UNIVERSITY DISTRICT.
FOR ALL OF THESE PROPERTIES
IN SEATTLE INCLUDING THIS ONE
THAT
IS SUBJECT TO THE COUNCIL BILL
APPLICATIONS BENEFITS RATINGS
SYSTEM
THAT IS ADMINISTERED BY THE
KING COUNTY DEPARTMENT OF
NATURAL
RESOURCES AND PARKS.
PROPERTIES WITH HIGHER
POINT TOTAL VALUES FOR THE OPEN
SPACE
RESOURCES, WHETHER IT
BE WATERSHED PROTECTION AREA
OR URBAN OPEN SPACE OR
SIGNIFICANT
WILDLIFE RECEIVE LARGER
REDUCTIONS ON PROPERTY TAXES.
THIS MIGHT BE A GOOD MOMENT
TO SEE IF BILL BERNSTEIN IS PART
OF
THE PRESENTATION, THE
REPRESENT TETCH FROM THE KING
COUNTY
DEPARTMENT OF NATURAL RESOURCES.
>> HI, BILL.
I APOLOGIZE.
I FORGOT TO ACKNOWLEDGE BILL WAS
ONLINE.
MY APOLOGIES. GO AHEAD, BILL.
>> OH, NO, I'M HAPPY TO BE
HERE.
IF YOU HAVE ANY ADDITIONAL
QUESTIONS AFTER
THIS PRESENTATION TO CLEAR UP
ANY
QUESTIONS YOU MIGHT HAVE,
I'M HAPPY TO HAVE SOME
CONVERSATION.
>> AND MY BAD, I SHOULD HAVE
ACKNOWLEDGED BILL EARLIER,
ALSO, BEFORE LAUNCHING IN.
ALL RIGHT.
SO AFTER BILL, AS REPRESENTATIVE
OF THE DNRP ISSUES A REPORT ON
THE APPLICATION'S POINT
TOTAL, BOTH KING COUNTY COUNCIL
AND CITY COUNCIL MUST
EACH SEPARATELY HOLD A PUBLIC
HEARING AND TAKE LEGISLATIVE
ACTION TO
APPROVE THE APPLICATION.
AN APPROVAL OF THE
APPLICATION RESULTS IN LOWER
PROPERTY
TAXES FOR THE APPLICANT AND
SHIFTS
THETHE SAVINGS TO OTHER
PROPERTY OWNERS AT A MARGINAL
RATE
OF INCREASE WITH NO IMPACT
TO THE TOTAL TAX COLLECTIONS.
THIS PARTICULAR
APPLICATION THAT WOULD BE
APPROVED BY THIS
COUNCIL BILL IS LOCATED AT
51 AVENUE SOUTH, AND IT IS NORTH
OF THE KUBOTA GARDEN IN
THE RAINIER BEACH AREA.
THE APPLICANT ACQUIRED
THIS PROPERTY A COUPLE YEARS AGO
WITH ASSISTANCE FROM THE
CITY'S EQUITABLE DEVELOPMENT
INITIATIVE
AND IS USING IT AS A
COMMUNITY GARDEN AND GATHERING
SPACE WITH
WALKING PATHS AND A GREENHOUSE.
AS YOU CAN SEE FROM THE SLIDE,
IT IS LARGE FOR THAT AREA.
IT CONSISTS OF NINE DIFFERENT
PARCELLS. PARCELS, THERE IS A
CREEK
RUNNING THROUGH IT.
THERE ARE INVASIVE SPECIES
IN THE CREEK AND THE APPLICANT
HAS
COMMITTED TO REMOVING THOSE AND
RESTORING THE AREA.
THE DNRP RECOMMENDED 38
POINTS FOR ASSESSING THE
PROPERTY
WHICH, IF APPROVED, WOULD
RESULT IN A 90% REDUCTION IN
THE TAXABLE VALUE FOR THIS
PROPERTY.
AND TO PUT THIS INTO
CONTEXT USING 2024 NUMBERS,
THIS REDUCTION WOULD DECREASE
THE
TOTAL TAXABLE VALUE FROM $1. 85
MILLION TO 185,000 RESULTING
IN A PROPERTY TAX AMOUNT OF
ABOUT
$1,500. IN COMPARISON THE
ACTUAL PROPERTY TAX AMOUNT IN
2024
WAS A LITTLE OVER $17,000.
IF APPROVED FOR THE PROGRAM, THE
APPLICANT WOULD NEED TO
MAINTAIN THE OPEN SPACE IN THE
SAME OR
BETTER CONDITION OF
ENROLLMENT, SUBMIT REQUIRED
MONITORING
REPORTS, AND IF IT WERE EVER
DISQUALIFIED FROM THE
PROGRAM, THERE ARE INCENTIVES TO
KEEP IT
ENROLLED, WHICH WOULD BE THAT
DISQUALIFYING OR BEING
REMOVED WOULD RESULT IN NEEDING
TO
PAY THE TAX THAT WOULD HAVE BEEN
DUE FOR UP TO A MAXIMUM PERIOD
OF
SEVEN YEARS PLUS A POSSIBLE 20%
PENALTY.
PROCEDURALLY THIS APPLICATION
HAS ALREADY HAD A PUBLIC
HEARING BY THE KING COUNTY
HEARING EXAMINER AND ON MAY 20th
IT WAS
APPROVED BY THE KING COUNTY
COUNCIL.
AND IF THIS COUNCIL APPROVES
IT, IT WOULD BE ELIGIBLE FOR
THE PROPERTY TAX REDUCTION
BEGINNING
IN 2026.
>> AWESOME.
THANK YOU SO MUCH FOR THAT
OVERVIEW, KARINA.
AND I DON'T KNOW, BILL,
IF YOU HAVE ANY THOUGHTS OR
ANYTHING TO
ADD.
>> UM, NO, NOT SO MUCH
OTHER THAN JUST TO SAY THIS IS
A REALLY UNIQUE PIECE OF
PROPERTY.
IT'S GOT A LOT OF GREAT
OPENOPEN
SPACE VALUE ASSOCIATED WITH
IT, HENCE THE POINTS THAT I HAD
BEEN RECOMMENDING TO DETERMINE
ITS TAX DEDUCTION.
THE OWNERSHIP IS GREAT.
THEY ARE REALLY COMMITTED TO
MAKING THIS A NATIVE
DIVERSE OPEN SPACE OASIS IN THE
CITY, AND I HOPE THAT YOU ALL
SEE
IT THE SAME WAY AND I THINK
IT'S WONDERFUL THEY'VE APPLIED
TO
THE PROGRAM.
>> AWESOME.
THANK YOU SO MUCH FOR THAT.
THE COUNTY AND THE CITY WORKING
TOGETHER. WE LOVE TO SEE IT.
SO I WILL PAUSE HERE TO SEE
IF ANYONE HAS ANYANY QUESTIONS.
COLLEAGUES, COUNCILMEMBER
STRAUSS?
>> LOOKING BACK AT THE
SLIDE WITH THE
MAP. I JUST WANTED TO ADDRESS
SOME CLARIFICATION QUESTIONS
HERE.
THE PARCELS IN YELLOW WOULD BE
THE PARCELS THAT RECEIVE THE
DISCOUNTED TAX ASSESSMENT, IS
THAT CORRECT?
>> THAT IS CORRECT.
>> AND THAT IS NOT NECESSARILY
THOSE PARCELS COMING INTO
PARKS DEPARTMENT CONTROL, RATHER
IT
IS PRIVATELY CONTROLLED WITH THE
AGREEMENTS THAT HAVE BEEN PUT
IN PLACE?
>> THAT IS CORRECT.
THIS WILL CONTINUE TO BE
PRIVATELY OWNED PROPERTY.
I WILL ADD JUST BY GOING TO
THE NEXT SLIDE THAT KING COUNTY
DID RECOMMEND ADDITIONAL POINTS
FOR
UNLIMITED PUBLIC ACCESS.
YOU'LL SEE THAT THERE, FIVE
POINTS. SO IT'S NOT GOING TO BE
PART OF
THE PARKS PROGRAM, ALTHOUGH
CLOSE TO SEATTLE PARKS,
ADJACENT TO IT, BUT IT WILL BE
OPEN TO
THE PUBLIC.
>> OKAY.
AND LET ME ASK SOME MORE
CLARIFYING QUESTIONS AND
MAYBE I'LL GET ON MY SKIS AND
I'LL BE
BACK TO CHAT WITH YOU OFFLINE.
THE AREA THAT IS BOTCH THE
WHITE DOTTED LINE THAT SAYS
SEATTLE PARKS AND RECREATION
PROPERTY,
IS THAT DIFFERENT THAN KUBOTA
GARDENS?
>> THAT IS A QUESTION I WILL
HAVE TO GET BACK WITH YOU.
>> IF I COULD
INTERJECT, COUNCILMEMBER
STRAUSS, WOULD IT
BE HELPFUL IF ONE OF THE PARKS
STAFF CAME TO THE TABLE
TO ANSWER THAT?
>> ARE WE VOTING ON THIS TODAY?
>> IF PEOPLE FEEL COMFORTABLE,
BUT, IF NOT --
>> I'M HAPPY TO VOTE
ON THIS TODAY AND --
>> COULD WE HAVE PARK --
>> THIS IS THE TYPE OF THING I
WOULD LOVE TO HAVE A BRIEFING
ABOUT BEFORE THE MEETING.
I'LL SING A LITTLE SONG.
>> UNDERSTOOD.
>> BECAUSE THE ISSUE HERE --
I'M ALL FOR GIVING THIS TAX
BREAK TO
KEEP OPEN SPACE PRESERIN PLACE.
GARDENS IS A HIGHLY MAINTAINED
PARK THAT IS VERY SPECIFIC IN
PARTICULAR. IS THIS OPEN SPACE
ADJACENT TO
THAT PARK IN COLLABORATION
WITH WHAT'S GOING ON THERE OR
IS
IT IN CONCERT OR IS IT NEXT TO
AND NOT COORDINATED?
IF WE ARE NOT COORDINATING
BETWEEN ONE OF OUR
SPECIFIC PARKS AND OPEN SPACE,
WHAT IS
THE CONNECTION BETWEEN THEM?
I'M HAPPY TO FOLLOW UP
WITH THOSE QUESTIONS OFFLINE,
AND I'M
HAPPY TO VOTE ON THIS TODAY,
CHAIR.
>> THANK YOU, COUNCILMEMBER
STRAUSS. NO WORRIES.
AND, COLLEAGUES, IF YOU ALL
AREN'T COMFORTABLE VOTING AND
MOVING, WE'RE MORE THAN HAPPY
TO KICK IT TO THE NEXT MEETING.
I WANT TO MAKE SURE EVERYONE
IS BRIEFED AND READY.
SO THANK YOU, COUNCILMEMBER
STRAUSS.
I SEE COUNCILMEMBER
RIVERA FOLLOWED BY COUNCILMEMBER
KETTLE.
>> THANK YOU, CHAIR.
KARINA, SO THIS POINT ON
SLIDE ONE SHIFTS TAX SAVINGS TO
OTHER PROPERTY OWNERS WITH NO
IMPACT TO TOTAL TAX COLLECTIONS.
DOES THAT MEAN THE SURROUNDING
PROPERTY OWNERS PAY MORE TO MAKE
UP FOR THE LOWER --
>> YEAH, SO THE --
>> HOW DOES THAT WORK?
>> THOSE THAT ARE OWED
ARE SPREAD OUT ACROSS ALL
PROPERTY
TAX OWNERS IN SEATTLE.
SO YOU COULD SAY IT'S
THE SURROUNDING PROPERTY OWNERS,
BUT THE MARGINAL RATE OF
INCREASE
WOULD BE SPREAD OUT ACROSS
ALL OF THE PROPERTY OWNERS IN
THE
CITY.
>> SO THEY'RE GETTING A
LOWER TAX BREAK AND EVERYBODY
ELSE PAYS A LITTLE MORE TO MAKE
UP
THE DIFFERENCE?
>> THAT'S MY UNDERSTANDING, YES.
>> WHO WOULD KNOW HOW THAT
WORKS?
>> THAT IS A
FACT.
>> SORRY, THE WAY YOU POSED
IT, YOU'RE LIKE, THAT'S
MY
UNDERSTANDING.
I'M LIKE, IS THAT TRUE? OKAY.
THAT WAS MY QUESTION.
>> THANK YOU, COUNCILMEMBER
RIVERA.
>> THANK YOU, CHAIR.
THIS IS A RELATIVELY NEW
PROGRAM FOR ME.
IT'S INTERESTING, IT'S VERY
IMPORTANT FOR A NUMBER
OF REASONS PARTICULARLY
WHEN WE HAVE ADJACENT PROPERTIES
BUT ALSO FOR CANOPY GOALS AND
THE LIKE WHAT DEFINES LONG- TERM
OPEN SPACE PRESERVATION?
AS I WAS LOOKING AT THE MAP,
I THINK IT'S GREAT FOR THE
REASONS I JUST MENTIONED, BUT
FOR
THE CANOPY PIECE TO ENSURE,
LIKE, THE HEALTH OF THE
TREES, FOR EXAMPLE, IS THIS KIND
OF LIKE,
OKAY, WE'VE DONE THIS AND IT'S
BASICALLY GOING TO FOLLOW OR IS
THERE ACTIVE MANAGEMENT OF THE
TREES, LIKE IF THERE'S DISEASED
TREES, ARE THEY TAKEN DOWN?
ARE THEY REPLACED WITH
ADDITIONAL PLANTINGS?
THIS KIND OF GOES TO THE CANOPY
PIECE.
I GUESS IT'S THE DEFINITION OF
LONG- TERM OPEN SPACE
PRESERVATION.
HOW ACTIVE IS THAT?
HOW IN- DEPTH IS THAT ASPECT OF
IT?
>> YEAH, I WILL START
ANSWERING THAT QUESTION AND
THEN, BILL, IF
YOU WANT TO PROVIDE MORE
CONTEXT, SINCE YOU ARE
THE SUBJECT MATTER EXPERT ON
THIS.
BUT THE LENGTH OR THE TERM
OF THE OPEN SPACE WOULD
BE AS LONG AS THE PROGRAM IS
ENROLLED IN
IT.
SO FOR THAT PROGRAM
THE APPLICANT IS SEEKING A LOWER
TAX BURDEN, LOWER TAX PAYMENT,
AND SO THE LONGER THAT THEY'RE
IN
IT, THEN THAT'S GOING
TO INCENTIVIZE THEM TO STAY
ENROLLED.
AND EVERY
YEAR THERE IS A REQUIRED
MONITORING REPORT.
I'M NOT SURE OF THE CONTENT,
BUT I KNOW FOR THE RESTORATION
PIECE, THE IVY AND
THE BLACKBERRIES THAT ARE IN
THAT
WATERSHED BUFFER ZONE, THEY
MUST SUBMIT A RESTORATION REPORT
FOR
THE FIRST FIVE YEARS FOR THAT
AREA.
I WOULD IMAGINE THAT WOULD
APPLY.
WE'LL FIND OUT FROM BILL AS
TO THE REST OF THE
PROPERTY AS WELL.
>> YES, SO I CAN JUST JUMP IN.
YEAH, THERE'S TWO COMPONENTS.
WITH THIS PROPERTY ONE OF
THE CRITERIA THAT IT'S
QUALIFYING FOR IS THAT
RESTORATION
PIECE, AND SO THAT IS ALREADY
A COMMITMENT THAT THIS OWNER
IS MAKING TO NOT ONLY KEEP THE
PROPERTY DIVERSE AND NATIVE
THROUGHOUT THE LONG- TERM
COMMITMENT OF THE
PROPERTY'S PARTICIPATION BUT
ALSO TO
ENSURE THAT ANY AREAS OF THE
PROPERTY,
AND THERE ARE SOME, THAT ARE
IMPACTED BY ANY KIND OF
INVASIVE NONNATIVE SPECIES ARE
ADDRESSED AND REPLACED WITH
NATIVE
PLANTINGS.
AND SO THERE IS KIND OF THE
CATEGORY SPECIFIC REQUIREMENT
TO ENSURE NATIVE VEGETATION
AND THEN THE OVERARCHING
PROGRAM GOALS AND REQUIREMENTS
WHICH BASICALLY REQUIRE ANY
OWNER THAT'S PARTICIPATING IN
THISTHIS TO MAINTAIN AND
ENSURE GOOD STEWARDSHIP
PRACTICES TO
MAKE SURE THAT PROPERTY STAYS
NATIVELY VEGETATED, HEALTHY,
LONG TERM FOR THE MANY,
MANY YEARS
THEY LIKELY WILL PARTICIPATE.
>> THANK YOU.
THANK YOU FOR THAT.
THAT'S HELPFUL.
I'M COMFORTABLE WITH THIS
AND I COULD VOTE ON IT, CHAIR.
BUT I'M ALSO -- I'LL JUST
THROW OUT A DIFFERENT KIND OF
ANGLE
ON THIS.
I THINK THIS IS
GREAT. I UNDERSTAND THE POINT,
BUT
I ALSO UNDERSTAND
PRESERVATION SOMETIMES TAKES
DIFFERENT
TYPES OF CHALLENGES, AND I'M
THINKING ABOUT THE WEST QUEEN
ANNE
GREENBELT AND IS A DIFFERENT
TOPIC, BUT THESE ARE THE
THINGS WE NEED TO ENSURE AS
WELL.
BUT I APPRECIATE THE ANSWERS
TO THIS AND THE UNDERSTANDING,
SO
THANK YOU AND, YES, CHAIR, I CAN
VOTE TODAY.
>> AWESOME, THANK
YOU, COUNCILMEMBER KETTLE.
COUNCILMEMBER NELSON?
>> THANK YOU.
THIS SEEMS LIKE A NO- BRAINER TO
ME, BUT I WON'T SAY IT LIKE
THAT. IT LOOKS LIKE THE COUNCIL
HAD TO
SIGN OFF ON THAT AND THAT IS,
IN PART, DRIVING OUR SCHEDULED.
THEY SIGNED OFF -- THEY APPROVED
THIS ON MAY 20th.
AND AS I'M LOOKING AT THE
FISCAL
NOTE, YOUR MEMO, THE VALUE OF
THIS PROPERTY RIGHT NOW IS
OF THESE NINE PARCELS IS 1.
85 MILLION AND THAT IS
UNDEVELOPED, AND IF IT WERE TO
BE
DEVELOPED INTO HOMES OR ANYTHING
ELSE, THEN THAT PROPERTY WOULD
BE
WORTH A LOT MORE.
HERE WE ARE GETTING OPEN
SPACE THAT WILL PRESERVE CANOPY
AND THERE IS ONGOING MAINTENANCE
OF NATIVE SPECIES, ET CETERA, SO
I SEE THE PUBLIC GOOD AS
FAR OVERWHELMING THE DECREASE IN
THE PROPERTY TAX THAT THE CITY
WILL
RECEIVE FROM THE
ATION OF THE 38 POINTS EQUALLING
A
10% VALUATION.
SO I FEEL COMFORTABLE AT
THIS BECAUSE IT IS IN ITS
PROXIMITY TO UBOTA GARDENS
BECAUSE ANY
IMPERVIOUS SURFACE WOULD
ADD RUN-OFF.
I REALLY THANK PARKS FOR
WORKING THIS OUT AND I FEEL THIS
IS
A POSITIVE THING FOR
US TO DO FOR THE SURROUNDING
AREA.
>> THANK YOU, COUNCIL PRESIDENT.
COUNCILMEMBER RIVERA.
>> THANK YOU, CHAIR.
SORRY, POINT OF CLARIFICATION.
JUST SO, FOR THE PUBLIC,
THE LOWER TAX BENEFIT IS IN
EXCHANGE FOR THE PUBLIC BENEFIT
OF KEEPING THE LAND OPEN SPACE,
AND THEN, AT A CERTAIN POINT, IF
THE LAND IS NO LONGER OPEN
SPACE, THEN I IMAGINE IT COMES
BACK
FOR REEVALUATION OF HOW IT WOULD
MOVE FORWARD.
FOR A CERTAIN AMOUNT OF
TIME THAT THEY ARE CARE TAKING
THE
LAND.
>> YES.
AND I WILL CLARIFY THAT THE
TAX EXCHANGE -- WHAT THE CITY
WILL COLLECT -- IS NOT GOING TO
BE
REDUCED.
THAT AMOUNT IS GOING TO BE THE
SAME.
IT'S HOW IT'S SPREAD OUT
ACROSS THE PROPERTY TAX PAYERS.
>>
RIGHT.
>> THIS PARTICULAR PROPERTY
TAX PAYER WILL PAY LESS.
OTHER PROPERTY TAX PAYERS
WILL PAY A MARGINAL AMOUNT MORE.
>> AND THOSE TAXPAYERS CAN
UTILIZE THE SPACE BECAUSE IT
WILL BE OPEN TO THE PUBLIC --
>> THAT'S RIGHT.
>> -- AND THAT'S THE
PUBLIC BENEFIT WE'RE GETTING
BACK.
I WANT TO MAKE IT CLEAR TO THE
PUBLIC, WE'RE ALL GETTING
A BENEFIT BACK BY WAY OF
HAVING MORE OPEN SPACE.
SO IT'S A MUTUALLY ADVANTAGEOUS
ARRANGEMENT.
CHAIR, I BELIEVE THERE'S
SOMEONE
ONLINE WHO CAN SPEAK TO THE
RELATIONSHIP WITH KUBOTA GARDENS
AND I WANTED TO FLAG THAT
BECAUSE I SEE THAT IN THE CHAT.
OOPS, SORRY.
>> CAN I RESPOND?
I WANTED TO THANK YOU FOR THAT
CLARIFICATION.
I HAD IT IN MY MIND OF THE
RELATIONSHIP BUT, THANK
YOU, IT'S JUST SPREAD OUT.
THANKS.
>> THANK YOU.
AND I'D LOVE TO HEAR FROM THE
--
>> YES.
SO WE HAVE SOMEONE FROM
CREATIVES COLLECTIVE.
THANK YOU, COUNCILMEMBER RIVERA.
HELLO.
>> EVERYBODY, MY NAME IS A'JA
TEO. I'M A CITIZEN OF THE
CHEROKEE NATION OF OKLAHOMA,
BORN
AND RAISED HERE IN SEATTLE, AND
I
AM THE DIRECTOR OF THE
INDIGENOUS
CREATIVE
COLLECTIVE. I DID WANT TO ANSWER
SOME
OF COUNCILMEMBER STRAUSS'
QUESTIONS, IF I CAN.
I'M NOT THE OFFICIAL
PERSPECTIVE ON THIS, OF COURSE,
BUT MY
UNDERSTANDING IS ON THAT MAP
THERE'S KUBOTA GARDEN AND THE
OTHER GREEN SPACE IS MARKED
AS
PARKS PROPERTIES. THOSE ARE WHAT
ARE TERMED THE
BUFFER PROPERTIES, SO
THEY PROTECT THE VIEWS IN KUBOTA
GARDEN.
THEY PROTECT THE CREEK.
THEY ARE NOT OPEN OR
ACCESSIBLE TO THE PUBLIC, AND
THEY ARE
NOT PART OF KUBOTA GARDENS.
THEY ARE STEWARDED BY
GREEN SEATTLE PARTNERSHIP.
AND I'M ALSO HAPPY TO SAY THAT
WE'VE HAD LOTS OF GREAT
MEETINGS WITH THE KUBOTA FAMILY
FOUNDATION AND THE PARKS
REPRESENTATIVES AT THE
GARDENS, AND WE'RE TALKING EVEN
ABOUT
HAVING THINGS LIKE PATHWAYS THAT
CONNECT OUR SITES,
COLLABORATIVE EVENTS AND
STEWARDSHIP
OPPORTUNITIES, MAKING SURE THE
CREEK IS FLOWING BETWEEN ALL THE
PROPERTIES AND SALMON BEARING
HABITAT.
WE ARE REALLY EXCITED ABOUT
ALL THOSE OPPORTUNITIES
FOR COLLABORATION AND
THE RELATIONSHIP BUILDING.
AND I'M
HAPPY TO ANSWER ANY OTHER
QUESTIONS IF THERE ARE
ANY.
>> AWESOME.
THANK YOU SO MUCH.
I DON'T KNOW IF THERE'S ANY
OTHER QUESTIONS FOR ANY ONE OF
OUR PANELISTS AT ALL?
LOOKING LEFT, RIGHT, NO?
AWESOME.
>> CAN I --
>> COUNCILMEMBER RIVERA, YES.
>> I JUST REALLY THANK CREATIVE
COLLECTIVES FOR JOINING AND
GIVING THE PERSPECTIVE ON THE
RELATIONSHIP, BECAUSE IT WAS
AN IMPORTANT QUESTION, SO THANK
YOU, COUNCILMEMBER STRAUSS,
FOR ASKING IT AND GETTING THAT
ANSWER, AND ALSO, CHAIR, IS
ADD TO
THIS CONVERSATION BEFORE WE
TAKE THE FINAL VOTE OR THE VOTE?
>> MORE THAN HAPPY.
THEY'RE IN THE AUDIENCE.
I DON'T KNOW IF PARKS HAS
ANY OTHER WORDS.
YOU CAN COME UP TO
THE MICROPHONE SO YOU DON'T
HAVE TO
COME UP TO THE TABLE IF
THERE'S ANYTHING ELSE.
I SEE A NO FROM EVERYONE.
OKAY. I SEE A NO.
>> THANK YOU, CHAIR.
>> THANK YOU.
A COUPLE THINGS -- THANK YOU,
KARINA, FOR THIS, AND THANK
YOU, EVERYONE, BILL AND A'JAA'JA
JOINING US AND EXPLAINING THE
PROPERTY. I'M FAMILIAR WITH
THIS.
I KNOW THIS IS IN THE SOUTH
END, AND, IF I REMEMBER
CORRECTLY,
MY PARENTS LIVE ON 49th SO I
KNOW, BUT YOU HAVE THE CHIEF
SOUTH
TRAIL THAT RUNS JUST ON
THE OTHER SIDE OF THE STREET,
AND
IT'S A BEAUTIFUL GARDEN.
SO ANYTIME THERE CAN BE
A COLLABORATION TO EXPAND THE
JAZZ THAT COMES FROM THE PARK
DURING THE SUMMER AND DO
SOMETHING
THERE, THAT WOULD BE GREAT.
I WANT TO PUT THAT PLUG IN
THERE.
OKAY, SO MOVING FORWARD,
IF THERE'S NO OBJECTION, AND I
CHECKED, EVERYONE SEEMS PRETTY
COMFORTABLE ABOUT VOTING FOR
THIS, BUT NOTED, COUNCILMEMBER
STRAUSS, BRIEFING ABOUT THIS
BEFORE. SO YOU'RE COMFORTABLE.
I HEARD YOU THERE.
IF THERE'S NO OBJECTION,
THE COUNCIL RULES WILL BE
SUSPENDED TO ALLOW THE COMMITTEE
TO VOTE
ON THE BILL ON THE SAME DAY THE
COMMITTEE HAS HELD A PUBLIC
HEARING. HEARING NO OBJECTIONS,
THE RULES
ARE SUSPENDED AND WE
WILL PROCEED WITH A COMMITTEE
RECOMMENDATION, AND SO I'M
GOING
TO GO AHEAD AND MOVE THAT THE
COMMITTEE RECOMMENDS PASSAGE OF
COUNCIL BILL 120997.
IS THERE A SECOND?
>> SECOND.
>> THANK YOU.
THERE IS A SECOND, THIRD,
FOURTH, FIFTH.
IT HAS BEEN MOVED AND
SECONDED TO RECOMMEND THE
PASSAGE
OF COUNCIL BILL.
I WILL CALL THE ROLL ON
RECOMMENDING COUNCIL BILL
120997.
I'M GIVING OUR CLERK A BREAK
TODAY.
SHE DESERVES IT.
COUNCILMEMBER KETTLE?
>> AYE.
>> COUNCILMEMBER RIVERA?
>> AYE.
>> COUNCILMEMBER STRAUSS?
>>
YES.
>> CHAIR HOLLINGSWORTH?
YES. WE'RE ALL IN FAVOR.
IT WILL GO TO TUESDAY,
JUNE 17th, CITY COUNCIL COUNCIL
MEETING.
THANK YOU, COLLEAGUES.
I APPRECIATE THAT AND
LOOKING FORWARD TO ANSWERING ANY
OTHER QUESTIONS BEFORE IT GETS
MOVED TO FULL COUNCIL SO WE
FEEL COMFORTABLE AS WELL.
CLERK, WILL YOU GO AHEAD
AND READ AGENDA ITEM NUMBER TWO
INTO THE RECORD?
>> YES.
AGENDA ITEM TWO 120999 AN
ORDINANCE RELATING TO SEATTLE
PARKS AND RECREATION AUTHORIZING
THE SUPERINTENDENT
OF SEATTLE PARKS AND RECREATION
TO
ENTER INTO A GOLF COURSE
MANAGEMENT AGREEMENT WITH
PREMIER GOLF
CENTERS, LLC, FOR THE
OPERATION OF THE CITY OF
SEATTLE'S MUNICIPAL GOLF
COURSES LOCATED
AT JACKSON PARK GOLF
COURSE, BILL WRIGHT GOLF COMPLEX
AT
JEFFERSON PARK, INTERBAY GOLF
CENTER, AND WEST SEATTLE GOLF
COURSE AND THEIR RELATED
FACILITIES. FOR BRIEFING,
DISCUSSION AND POSSIBLE VOTE.
>> SO JUST -- THANK YOU -- FOR
CLARIFICATION, WE'RE NOT
VOTING ON THIS TODAY.
I TALKED TO SOME COUNCILMEMBERS
JUST WANTING MORE
INFORMATION, SO WE WILL PUSH A
SECOND MEETING
FOR THIS AGENDA ITEM, SO
WE'RE ALL ON THE SAME
PAGE. I WANTED TO LET YOU ALL
KNOW
THAT.
AND WE ARE SO HAPPY TO
HAVE PARKS HERE.
SO THANK YOU ALL FOR BEING HERE.
I'VE HAD A BRIEFING AND HAD A
GREAT DISCUSSION WITH YOU
ALL. AND SO I JUST WANT TO THANK
YOU. AND THANK YOU TO CENTRAL
STAFF, THE ILLUSTRIOUS, AMAZING
TRACY.
THE SAME WITH YOU, KARINA.
I WOULD HAVE
GIVEN YOU THE SAME
INTRODUCTION. I DON'T WANT TO
SHOW FAVORITES
HERE. THANK YOU ALL FOR BEING
HERE.
AND THEN ONCE YOU GET
YOUR PRESENTATION UP, WE CAN GO
AHEAD AND TALK ABOUT MY FAVORITE
GOLF COURSE OF ALL TIME, THE
BILL WRIGHT GOLF COMPLEX WHERE
I LEARNED HOW TO PLAY GOLF
WITH THE AMAZING MR. FRED
>> REALLY?
>> SHOUTOUT TO RED BIRD GOLF
CLUBS. I SEE SOME HEAD NODS.
JAY.
>> CHAIR?
>> YES?
>> WAS THAT AN EXAMPLE OF
NAME
DROPPING?
>> YOU
CAN LOOK ON MY SOCIAL
MEDIA. HE KNOWS ME BY MY FIRST
NAME.
WE ARE TEXTING BUDDIES.
I CAN TEXT HIM RIGHT NOW.
I
DON'T WANT TO DROP NAMES IT
BUT, YOU KNOW.
BUT, YES, HE WAS MY FAVORITE
ATHLETE GROWING UP.
HE WAS.
AND WE WILL PAUSE
IF WE'RE HAVING SOME I.T.
ISSUES.
THAT'S FINE.
WE CAN GO AHEAD AND
ROLL WITH THE PUNCHES.
WE'RE GOING TO BE AT EASE RIGHT
NOW AS COUNCIL, SO I WILL
LET SEATTLE CHANNEL KNOW WE WILL
BE AT EASE WHILE WE ARE TRYING
TO NAVIGATE OUR I.T. STUFF, AND,
IF NOT, I CAN GO
AHEAD AND SHARE IT ON MY
COMPUTER.
NO. SAYING THAT WILL NOT HELP.
THAT'S FINE.
WELL, WE LOVE OUR GOLF
COURSES HERE IN SEATTLE.
DO ANY OF MY COLLEAGUES PLAY
GOLF?
>> CHAIR, YES, UNTIL MY
SHOULDER SURGERY.
>> UNDERSTOOD.
COUNCILMEMBER STRAUSS, INTERBAY?
>> I PLAYED THE NINE HOLES ONCE.
>> NICE.
ONE TIME?
>> THE DRIVING RANGE MORE OFTEN.
FUN FACT, IT'S ON A
LANDFILL, AND THERE WAS ONCE A
PROPOSAL
TO TURN IT INTO A SMALL
AIRPORT BEFORE IT BECAME A GOLF
COURSE.
ALSO, HOME OF
ONE OF MANY PEA PATCHES IN THE
CITY.
>> GOOD AFTERNOON.
WE'RE GOING TO ROLL HERE AND
I'M
GOING TO TRY TO MANAGE THIS
AND PRESENT TO YOU OUR
MANAGEMENT AND GOLF OPERATOR
AGREEMENTS,
SO COUNCILMEMBERS, THANK YOU
FOR ALLOWING PARKS AND
RECREATION
TO APPEAR BEFORE YOU TODAY TO
TALK ABOUT OUR IMPENDING GOLF
OPERATOR AGREEMENT.
I'M AP DIAZ, THE
SUPERINTENDENT OF SEATTLE PARKS
AND
RECREATION JOINED BY MY
COLLEAGUES ANDY
SHEFFER, YOU'RE
DEPUTY SUPERINTENDENT AND
PATRICK
MERRIAM AND CORY MYERS IS
OUR STRATEGIC ADVISER AND HAS
WORKED
TIRELESSLY ON THIS GOLF RFP
AND THEN MANAGEMENT AGREEMENT.
AND SO REALLY WANT TO THANK
THOSE INDIVIDUALS AND THEN LATER
ON WE HAVE WITH US
TODAY REPRESENTING THE TROON
ORGANIZATION, STEVEN OUTLAW AND
RYAN WHITNEY. AND THEN FROM
PREMIER GOLF
MICHAEL.
I WILL LEAD INTO OUR
PRESENTATION TODAY WHICH IS
GOING TO GO OVER A SYSTEM
OVERVIEW AND THE
LEGISLATION THAT'S BEFORE YOU
FOR
PRESENTATION. BEFORE WE JUMP IN
I WILL TAKE
A MOMENT TO CONTEXTUALIZE BOTH
IN
THE PARKS AND RECREATION SYSTEM.
YOU ALL FAMILIAR WITH
OUR MISSION WHICH IS TO
EQUIPMENT
EMPLOYEES IN THE PUBLIC FOR
WELL-BEING AND SUPPORT THROUGH
A VARIETY OF ACTIVITIES TO
CREATE
HEALTHY PEOPLE, A
THRIVING ENVIRONMENT AND VIBRANT
COMMUNITY.
AS YOU'LL HEAR MORE TODAY
SPR'S GOLF PROGRAM IS ALIGNED
WITH OUR
ORGANIZATIONAL MISSION AND ALSO
A WELL- BELOVED PART OF
THE SEATTLE LIFESTYLE THAT WE
ENJOY
HERE.
THE INTENT OF THIS SLIDE IS
JUST TO GIVE CONTEXT OF WHERE
GOLF FALLS WITHIN OUR PORTFOLIO
AND WHY IT'S IMPORTANT TO HAVE
A FOCUSED OPERATOR FOR OUR GOLF
PROGRAM.
SPR'S PROGRAM IS A
SIGNIFICANT LINE OF BUSINESS FOR
US AND
IT IS ALSO ONE OF MANY PROGRAMS
AND SERVICES WE PROVIDE TO THE
COMMUNITY, WHICH IS WHY WE
ARE COMMITTED TO FINDING AND
KEEPING
THE RIGHT GOLF PROGRAM OPERATOR.
ONE THAT HAS BOTH A
DEEP EXPERTISE AND IS ALSO
ALIGNED WITH OUR ORGANIZATIONAL
AFFIRMATIONS AND THE THINGS
THAT YOU ALL AS CITY
COUNCILMEMBERS REQUIRE OF OUR
CITY.
SO SEATTLE -- SOME BACKGROUND ON
OPERATING ASSUMPTIONS ON
HOW GOLF WORKS IN SEATTLE TODAY.
CURRENTLY SPR PARTNERS
WITH PREMIER GOLF TO OPERATE ITS
FOUR PUBLIC GOLF COURSES, WHICH
ARE SHOWN HERE.
I KNOW YOU ARE FAMILIAR
WITH THESE UP IN THE
NORTHEAST, JACKSON PARK GOLF
COURSE.
WE HAVE THE INTERBAY GOLF
CENTER OVER IN WEST SEATTLE,
WEST SEATTLE GOLF COURSE AND
THEN
THE BILL WRIGHT GOLF COURSE
THAT CHAIR HOLLINGSWORTH JUST
MENTIONED. THESE FACILITIES
ARE GEOGRAPHICALLY DISPERSED
AND UTILIZED FOR BOTH ACTIVE AND
PASSIVE RECREATION BY COMMUNITY
MEMBERS. THESE 500 ACRES OF
PARKLAND ALSO
PROVIDE MANY
ENVIRONMENTAL BENEFITS TO THE
CITY
RANGING FROM STORM WATER
RETENTION TO
WILDLIFE HABITAT, TREE CANOPY
MAINTENANCE, ALL OF WHICH WE'LL
TOUCH ON MORE IN SLIDES TO COME.
LET'S GIVE YOU A LITTLE BIT OF
A
BACKGROUND OF OUR MUNICIPAL
GOLF COURSES HERE IN SEATTLE.
THE RECENTLY RENAMED BILL
WRIGHT GOLF COMPLEX ON BEACON
HILL
HAS BEEN AROUND FOR OVER 100
YEARS HAVING OPENED ITS DOORS
FIRST
IN
1915. THEN CAME THE JACKSON PARK
GOLF COURSE AT THE NORTHERN EDGE
OF SEATTLE IN 1930.
TEN YEARS LATER WEST
SEATTLE GOLF COURSE OPENED IN
1940, AND
OUR NEWBIE IS THE INTERBAY
GOLF CENTER HAVING HOPED IN
1997.
EACH LOCATION IS UNIQUE AND
WELL LOVED BY THE COMMUNITY IT
SERVES.
SOME OF OUR BACKGROUND
THAT ALIGN WITH OUR STRATEGIC
PILLERS, AS HIGHLIGHTED EARLIER
THE PROGRAM IS INTEGRAL TO
SPR'S MISSION AND AS TO THE
TEAM -- AS
SUCH THE TEAM CONDUCTED AN
RFP PROCESS TO DETERMINE THE
NEXT
OPERATOR. THEY FOCUSED ON
CERTAIN STRATEGIC PILLARS TO
GUIDE THE
PROCESS AND MAKE SURE IT WAS
ACCESSIBLE TO GOLFERS OF
ALL AGES AND ABILITIES AND THAT
THE COURSES WERE VIEWED WITHIN
THE BROADER MISSION OF
THE DEPARTMENT BY SUPPORTING
NONGOLF USES AS WELL SUCH AS
WINTER
FUN ON SNOW DAYS AND HIGH
SCHOOL CROSS-COUNTRY MEETS,
MULTIUSE
ABILITY.
NEXT, WE WANTED TO LOOK FOR
AFFORDABILITY BECAUSE WE
ARE MUNICIPAL GOLF, AND THE
TEAM WANTED TO ENSURE WE HAD
AN OPERATOR WHO WAS ALIGNED WITH
OUR GOALS OF PROVIDING
SOMETIMES FREE OR LOW- COST
PROGRAMS
TO YOUTH THAT WILL HAVE LOWER
RATES
FOR SENIORS AND ADJUST
FEES BASED ON SEASON, DEMAND, TO
ENCOURAGE ACCESS RATHER
THAN STICKING TO A RIGID
PRICING SCHEME YOU OFTEN SEE AT
PRIVATE GOLF COURSES.
ANOTHER BIG PART
OF ACCESSIBILITY IS
CREATING AN ATMOSPHERE OF
INCLUSION
BY ENGAGING IN OUTREACH
ACTIVITIES AND ACTIVITIES THAT
INVITE PEOPLE IN TO THESE PUBLIC
SPACES. YOU'LL HEAR A LITTLE
BIT
LATER HUGH WE ARE ALIGNED WITH
THOSE
VALUES AND ARE LEVERAGING THAT
NATIONAL RESURGENCE OF
GOLF SINCE THE PANDEMIC TO BRING
NEW PROGRAMS AND PEOPLE TO
SEATTLE'S COURSES AND TO
ENCOURAGE THE NEXT GENERATION OF
GOLFERS
THROUGH OUR YOUTH.
AND FINALLY AS PUBLIC STEWARDS,
THE TEAM ALSO FOCUSED ON
ENSURING OUR GOLF PROGRAM
PRIORITIZES BOTH
ENVIRONMENTAL AND FINANCIAL
SUSTAINABILITY.
PREMIER HAS A TRACK RECORD
OF FINANCIAL ACCOUNTABILITY
AND COMMUNICATES
TRANSPARENTALLY WHEN ISSUES
ARISE SUCH AS THE
IMPACT OF HAZARDOUS AIR QUALITY
LEVELS FROM FOREST FIRES
TO PARTICIPATION RATES AND
REVENUES. OUR COLLECTIVE
APPROACH
TO FINANCIAL SUSTAINABILITY
IS BUILT ON THE WISE
POLICY DIRECTION PROVIDED BY
YOUR COUNCIL PREDECESSORS WHEN
THEY ADOPTED A RESOLUTION
OUTLINING GOLF FINANCIAL
POLICIES IN 2006.
AS WE'LL TOUCH ON IN THE NEXT
SLIDE, SPR
RETAINS RESPONSIBILITY FOR
COURSE
MAINTENANCE, SO WE ARE
DIRECTLY ABLE TO INTEGRATE OUR
ENVIRONMENTAL VALUES INTO OUR
APPROACH TO LAND MANAGEMENT.
PATRICK MERIAM, AS GOLF MANAGER,
HIS KNOWLEDGE IS COMBINED WITH
THE EXPERTISE OF A SMALL
BUT MIGHTY TEAM OF GOLF
COURSE SPECIALISTS AT EACH
LOCATION
TO DELIVER THE KAWHIEST QUALITY
PRODUCTS. GOLF COURSES THAT ARE
FUN TO
PLAY WHILE ALSO
SUPPORTING CARBON SEQUESTATION,
STORM WATER
RETENTION AND
SUPPORTING WILDLIFE IN OUR TREE
CANOPY
AND ALONG OUR URBAN CREEKS.
AS JUST MENTIONED
SPR PROVIDES COURSE MANAGEMENT
WITH A
SMALL BUT MIGHTY TEAM, 23 FULL-
TIME
EMPLOYEES, MOST OF WHOM ARE
REPRESENTED BY LOCAL 242.
PREMIER PROVIDES FULL
MANAGEMENT OF OTHER OPERATIONS,
OPERATING
THE PRO SHOPS AND
RESTAURANTS, MANAGING SPECIAL
EVENTS
AND OFFERING LESSONS AND
PROGRAMS AND MANAGING OTHER
AMENITIES SUCH AS MINIATURE
GOLF.
OR WHAT SOME PEOPLE CALL
PUTT-PUTT.
WE'RE TALKING ABOUT PUTT- PUTT
IN
A SUBJECT MATTER THAT HAS
PUTTING IN IT.
>> CHAIR, POINT OF ORDER.
THE REST IS NOT PUTT-PUTT.
>>
I MAY HAVE TAKEN GOLF DOWN A
WHOLE LEVEL.
>> COUNCILMEMBER KETTLE, YOU ARE
RECOGNIZED.
>> WE SHOULD RECOGNIZE THE
COMEDIC EFFORT THERE.
SOMETHING THE TEAM
CAN FURTHER
EXPOUND ON.
>> THANK YOU, COUNCILMEMBER
KETTLE.
>> SUMMARIZING THE LEFT SIDE OF
THE SLIDE, YOU'LL SEE THAT
PREMIER COLLECTS AND THEY
ARE SET WITH APPROVAL FROM THE
SUPERINTENDENT. IN RECENT YEARS
WE'VE SET
A MAXIMUM RATE AND THE PREMIER
IMPLEMENTS AN APPROACH TO
ENCOURAGE THE ACCESS
WE DISCUSSED EARLIER.
THOSE THROUGH THE COFFER AND
SPR
REIMBURSES GOLF RELATED
SERVICES.
PREMIER MEETS THE
REQUIREMENTS IN THE UNLIKELY
EVENT
IT EXPERIENCES ANY ISSUE WITH
CREDIT CARD USE.
I'LL HIGHLIGHT PREMIER HAS A
SMALL BUT MIGHTY TEAM OF
PROFESSIONAL STAFF
WHO COLLABORATE THROUGH OUR CITY
GOLF MANAGER.
HERE IS THE PROVERBIAL MONEY
SLIDE, GOLF'S FINANCIAL
PERFORMANCE.
LET'S START WITH THE CHART
ON THE
RIGHT. THE YELLOW LINE AT THE
TOP OF
THE CHART TRACKS TOTAL
REVENUES FROM 2020 TO 2024.
YOU CAN SEE A STEADY
INCREASE SINCE THE PANDEMIC.
THE GREEN COMPONENTS
REPRESENT THE COMBINED GOLF
OPERATING EXPENSES WITH PREMIER
IN THE
DARK GREEN AND SPR IN THE
LIGHTER GREEN SECTIONS.
THE SMALL ORANGE
SECTION REPRESENTS THE
INCREMENT COVERING SPR'S
INDIRECT COST
TO SUPPORT THE PROGRAM, 3.
5% CONSISTENT WITH THE GOLF
FINANCIAL POLICIES.
THE ORANGE CROSS SECTION OF
EACH BAR SHOWS THE EXCESS AMOUNT
OF REVENUES OVER OPERATING
COSTS THAT IS THEN TRANSFERRED
TO
SUPPORT NEEDED
CAPITAL IMPROVEMENTS DIRECTLY AT
THE GOLF COURSES, AND IF YOU'VE
BEEN TO OUR GOLF COURSE
FACILITIES, YOU'LL KNOW THEY
COULD USE A
LITTLE MORE OF THIS KIND OF
LOVE AND TRANSFERS THIS TO THE
GOLF
CIP PROJECT HAVE RANGED BETWEEN
1. 3 MILLION TO 2 MILLION SINCE
2020.
SO USING 2024 AS AN EXAMPLE
THE TOTAL OPERATING
EXPENSE, INCLUDED SPR OVERHEAD
WAS ABOUT 17 MILLION WITH
REVENUES
OF ABOUT 19 MILLION TOTAL
LEAVING
$2 MILLION DIRECTLY TO GO INTO
CAPITAL.
REVENUES HAVE GROWN ON AVERAGE
AND COVER RISING
EXPENSES INCLUDING THEIR LABOR
INCREASES AS WELL AS THE
CITY'S SIGNIFICANT WAGE
INCREASES
MOST RECENTLY IN 2024 AND 2025,
WHICH WE KNOW IS THE AWI.
SO THAT COVERS WHERE WE ARE NOW.
LET'S MOVE TO WHERE WE ARE
HEADED.
THE LEGISLATION BEFORE YOU TODAY
WOULD AUTHORIZE SPR TO
ENTER INTO A NEW AGREEMENT
WITH PREMIER TO CONTINUE
OPERATING
THE GOLF COURSES ON BEHALF OF
THE CITY IN PARTNERSHIP WITH
THE CITY.
THE AGREEMENT COVERS ROLES AND
RESPONSIBILITIES IN TERMS
OF SERVICES AND PROGRAMS,
DESCRIBES
FINANCIAL AND PUBLIC
BENEFIT REQUIREMENTS AND SETS
THE FRAMEWORK FOR REPORTING.
WHILE WE'LL GET A LITTLE MORE
SPECIFIC ON THE NEXT SLIDE,
I TO ACKNOWLEDGE THAT THE
NEW AGREEMENT HAS MINIMAL
CHANGES FROM
THE CURRENT ARRANGEMENT WITH
SOME ADDED BENEFITS.
THE NEW AGREEMENT IS SIMILAR
TO THE CURRENT AGREEMENT BUT
WE'VE HIGHLIGHTED A FEW
NOTEWORTHY MODIFICATIONS HERE IN
BLUE.
THE GRAY SUMMARIZES THE
KEY FINANCIAL TERMS,
BUT THEY ARE EITHER NOT CHANGING
OR ARE MORE
TECHNICAL IN NATURE.
WE HAVE NEGOTIATED A
SOMEWHAT LONGER TERM IN THIS
CURRENT CONTRACT RECOGNIZING
PREMIER HAS
MADE A CAPITAL COMMITMENT OF
$1.5 MILLION OVER THE COURSE
OF THE TERM WHICH
IS APPROXIMATELY $100,000 PER
YEAR.
PAYMENT CARD INDUSTRY PCI
BEST PRACTICE HAS
CHANGED SIGNIFICANTLY SINCE WE
NEGOTIATED OUR LAST CONTRACT.
IN THE RFP FOR THIS CONTRACT
A MINIMUM REQUIREMENT WAS THAT
THE OPERATOR HOLD THEIR OWN TIER
ONE
AT A STATION OF COMPLIANCE, AOC,
UNDER THE CURRENT CONTRACT
PREMIER IS UNDER THE
CITY'S ATTESTATION OF
COMPLIANCE
PROGRAM. IT FOLLOWS BEST
PRACTICES
AND REDUCES THE CITY'S
LIABILITY
ON CREDIT CARD TRANSACTIONS AND
FRAUD.
A CENTRAL ELEMENT OF THIS
NEW AGREEMENT WITH
PREMIERPREMIER TO
FORMALIZE A PUBLIC
BENEFIT REPORT WHICH WE'LL
COVER
IN THE NEXT TWO SLIDES.
FINALLY, WE'D LIKE TO BRING
YOUR ATTENTION TO THE CAPITAL
INVESTMENT PREMIER IS MAKING.
THEIR CAPITAL COMMITMENT OVER
THE INITIAL TERM OF
THE AGREEMENT PROVIDES A MUCH-
NEEDED PREDICTABLE INVESTMENT IN
THE
CITY'S GOLF COURSES AND
FACILITIES WITH THE
POTENTIAL
FOR ADDITIONAL FUTURE
INVESTMENTS.
THE CITY'S BEST PRACTICE
RELATED TO PUBLIC BENEFITS HAS
ALSO CHANGED SINCE THE LAST
AGREEMENT.
AND WHILE THIS AGREEMENT
OUTLINES THE TERMS
AND CONDITIONS FOR OUR
PROGRAM OPERATOR WE SOUGHT,
RATHER
THAN A LEASE OR CONCESSION
AGREEMENT IN WHICH PUBLIC
BENEFITS
MAY OFFSET A PORTION OF ANNUAL
EXPENSE, WE STILL WANTED
THIS AGREEMENT TO INCLUDE
CLEAR EXPECTATIONS AND
REQUIREMENTS
AROUND PUBLIC BENEFITS AND
ACCESS.
UNDER THIS NEW PROPOSED
AGREEMENT, PREMIER AGREES
TO CONTINUE PROVIDING
PUBLIC BENEFITS IN THE AREAS OF
PUBLIC
ACCESS, EVENTS, DISCOUNTED
LESSONS, CAPITAL
IMPROVEMENTS, ET CETERA.
AND A NEW SECTION WAS ADDED
SPECIFICALLY TO PUBLIC BENEFIT
REPORTING.
THE AGREEMENT NOW
REQUIRES PREMIER TO ESTABLISH
ANNUAL TARGET METRICS AND
PROVIDE
A CLEAR PUBLIC BENEFIT
REPORT WITHIN 60 DAYS AFTER THE
END
OF EACH FISCAL YEAR.
THE REPORT IS TO INCLUDE
A DESCRIPTION OF PUBLIC
BENEFITS DELIVERED AS MEASURED
AGAINST THE PLAN TARGET.
IT ALSO REQUIRES ANNUAL
REVENUE FOR POTENTIAL
ADJUSTMENTS TO
FUTURE PUBLIC BENEFITS AND
METRICS. THIS IS IMPORTANT AS
THE
CITY'S PRIORITIES WILL EVOLVE
AND
THIS ALLOWS SPR TO ENGAGE
WITH PREMIER ON OPPORTUNITIES TO
SUPPORT EVOLVING
PRIORITIES EITHER NOW OR IN
YEARS TO COME.
AN EXAMPLE OF THIS DURING THE
CURRENT CONTRACT'S TERM
SPR'S RELATIONSHIP WITH FIRST
TEE TRANSITIONED FROM THEM
PURSUING APPROVAL TO CONSTRUCT A
FACILITY AT JEFFERSON PARK TO
REQUESTING USE OF SPACE AT THE
BILL
WRIGHT GOLF COMPLEX CLUBHOUSE.
PREMIER HAS COLLECTED --
COLLABORATED WITH FIRST TEE TO
ALLOW THAT USE IN 2025 AND
ADDED PROGRAM COLLABORATION AT
INTERBAY.
FINALLY, BEFORE I ASK
OUR PARTNERS FROM PREMIER TO
SPEAK, I WANT TO RECOGNIZE THAT
WE ARE
REQUIRING THE OPERATOR TO
GENERATE REVENUES TO COVER
ALL ASSOCIATED COSTS AND ASK
THEM TO BE MINDFUL OF THIS
AND HONEST WITH US AS THEY PLAN
FOR
AND PROPOSE THEIR ANNUAL PUBLIC
BENEFITS.
PREMIER HAS DONE THIS WELL OVER
THE YEARS, AND THE NEW
AGREEMENT FORMALIZES AND
INCREASES
THE TRANSPARENCY OF THIS
PROCESS.
SO NOW I WILL TURN OVER THE
BATON TO PREMIER, TO OUTLINE AND
BE AVAILABLE FOR ANY
QUESTIONS ABOUT THE PUBLIC
BENEFIT
DETAILS.
ACTUALLY, I'M GOING TO WALK
YOU THROUGH THOSE.
I THINK I HAVE THAT, RIGHT?
ARE YOU READY TO DO THIS SLIDE?
>> SURE.
>> OKAY, PERFECT.
THANK
YOU.
>> I'M NOT SURE IF THIS IS ON.
>> YES, IT'S ON.
YOU'RE ALL
GOOD.
>> MY NAME IS MICHAEL,
THE DIRECTOR OF OPERATIONS WITH
PREMIER GOLF.
I'VE BEEN WITH SEATTLE PARKS
AS A PARTNER FOR ALMOST TEN
YEARS
NOW. THIS IS THE FUN PART OF OUR
JOB IS BEING ABLE TO GIVE BACK.
AS YOU KNOW, GOLF IS EXPLODING
IN POPULARITY, AND IT
IS EXPLODING IN AREAS THAT WERE
NEVER REALLY SEEN AS
PEOPLE PLAYING GOLF BEFORE.
SO IT'S YOUTH, IT'S PEOPLE OF
COLOR, IT'S WOMEN THAT ARE
TAKING UP THIS GAME IN
GREATER NUMBERS THAN EVER
BEFORE.
SO OUR PUBLIC BENEFIT HAS
ALWAYS BEEN IN LOCK STEP
WITH SEATTLE PARKS AND
RECREATION, BUT
THIS IS A FORMALIZATION OF
ACTUALLY
DOCUMENTING AND TARGETING
PUBLIC BENEFITS SO THAT WE ARE
ACTUALLY
REACHING THE RIGHT PEOPLE.
ONE OF THE THINGS THAT WE
ARE LOOKING TO DO IS LATE NIGHT
EVENTS, YOUTH EVENTS AT THE
BAY, SO TO SPEAK.
SO WE WOULD PROVIDE NO-
COST OPPORTUNITIES FOR OUR YOUTH
AND OUR COMMUNITY CENTERS
TO EXPERIENCE GOLF FOR THE FIRST
TIME. WE STARTED THAT PILOT
PROGRAM WITH THE JEFFERSON
PARK COMMUNITY CENTER TWO YEARS
AGO.
THE FIRST YEAR WE HAD SEVEN
PARTICIPANTS.
THE SECOND YEAR WE HAD 35.
SO THERE'S A TREMENDOUS DEMAND,
AND WE ARE ABSOLUTELY
COMMITTED TO PROVIDING ACCESS
AND
OPPORTUNITY FOR THESE YOUTH AND
PEOPLE WITHOUT THE ECONOMIC
MEANS TO TAKE UP GOLF.
ONE OF THE THINGS WE
RECENTLY DID WAS A SEATTLE SWING
EVENT,
A COMMUNITY BENEFIT.
WE HELD THAT AT ALL OF
OUR GOLF CENTERS ON APRIL 29th.
WE PROVIDED FREE GOLF
LESSONS, FREE TOP TRACER, FREE
RANGE BALLS AND DISCOUNTED GREEN
FEES AT ALL FOUR LOCATIONS.
WE CALCULATED THE PUBLIC BENEFIT
FOR THAT ONE DAY ALONE AT
$17,000.
SO WE'RE EXCITED AND
COMMITTED TO PROVIDING MORE AND
MORE
OF THESE OPPORTUNITIES.
THE SLIDE THAT YOU SEE UP
THERE IS AN EXAMPLE OF THE
THINGS THAT
WE HAVE BEEN DOING, AND WE
ARE GOING TO CONTINUE TO DO WITH
THE
FORMALIZED AGREEMENT, WE WILL BE
REPORTING ON THOSE AND WILL
BE WORKING WITH SPR TO COME UP
WITH NEW IDEAS FOR PUBLIC
BENEFIT AS THE GAME EVOLVES AND
OUR COMMUNITY
EVOLVES. OUR GOLF COURSE
FACILITIES ARE
TRULY COMMUNITY CENTERS, AND
WE ARE SO HAPPY THAT GOLF IS
ACTUALLY A METHOD AND A VEHICLE
TO BRING SAFE RECREATIONAL
OPPORTUNITIES FOR OUR
COMMUNITIES.
ANY QUESTIONS FOR THE
PUBLIC BENEFIT TABLE?
>> IF YOU RAISE YOUR
HAND, WE WILL GO AHEAD AND ASK
--
COUNCILMEMBER KETTLE?
>> THANK YOU, CHAIR
HOLLINGSWORTH.
THANK YOU VERY MUCH FOR COMING.
THANK YOU, MR. DIAZ, FOR
THE PRESENTATION AS WELL.
ONE QUESTION, I'M IN SUPPORT
GENERALLY OF THIS.
I'VE ALREADY MADE THAT
KNOWN, BUT I'M CURIOUS IN TERMS
OF THE
PARTNERSHIP PIECE.
I WAS KIND OF THINKING OF THE
COURSES AS KIND OF STANDALONES,
BUT THE LEVEL OF
PARTNERSHIP, AND I'M THINKING
ABOUT FOR
INTERBAY, FOR EXAMPLE, MAGNOLIA
AND QUEEN ANNE COMMUNITY
CENTERS, AND I WENT
THERE REGULARLY WHEN MY DAUGHTER
WAS YOUNG WITH THE PLAY AREAS
AND NOW
SHE'S IN THE PARKS AND REC
BASKETBALL LEAGUE, GOING THERE
FOR THE BASKETBALL GAMES.
I'VE NOT SEEN ANYTHING
THAT WOULD SUGGEST, LIKE, THE
GOLF
COURSE BEING PART OF THAT.
SO WHAT'S THE LEVEL OF
INTEGRATION WITH THE COMMUNITY
CENTERS AND REALLY
THE ADVERTISING AND KIND OF
MAKING IT LIKE YOU REFERRED A
COMMUNITY CENTER, A GOLF
COURSE/COMMUNITY
CENTER.
I THINK THAT'S A GREAT WAY
TO DESCRIBE IT.
AND I CAN SEE A
NATURAL PARTNERSHIP WITH THE
QUEEN
ANNE AND MAGNOLIA ONES.
OBVIOUSLY IT'S MORE THAN THAT
--
BALLARD.
I DON'T WANT TO LEAVE OUT MY D-
6 COLLEAGUE.
I'VE NOT SEEN IT AND I JUST
WANT
TO CHECK.
>> SURE.
WE STARTED WITH
JEFFERSON COMMUNITY CENTER AND
THAT
LEAGUE AS A PILOT.
IT'S PROVEN EXTREMELY
SUCCESSFUL, AND WE'RE LOOKING
TO
EXPAND THAT TO THE
COMMUNITY CENTERS AROUND THE
OTHER COURSES
IN THE UPCOMING THREE TO FIVE --
WITHIN THE UPCOMING THREE
TO FIVE YEARS.
THERE'S A TREMENDOUS
OPPORTUNITY TO SUPPORT OUR YOUTH
AND
GIVE THEM A REPRIEVE FROM THE
CITY AND OUR GOLF COURSES IN
THE SPORT, IN THE ENVIRONMENT,
IN
THE
CITY. THIS IS KIND OF HUGE FOR
MENTAL
WELLNESS.
AND, FRANKLY, THAT WAS OUR FIRST
CONVERSATION WHEN WE
ENTERED CITY HALL AND MET TROON
WHAT
CAN WE OFFER IN THE WAY OF GOLF,
AND WE WERE IMMEDIATELY BRAIN
STORMING, IT'S TOP OF MIND,
IT'S TOP PRIORITY FOR US.
EVERYONE IS, FRANKLY,
EXCITED ABOUT IT, AND WE'VE
BEEN
COMMUNICATING THROUGHOUT THIS
WEEK WITH OUR TEEN LIFE CENTERS
TO FURTHER
THAT EFFORT.
>> EXCELLENT.
THAT WOULD EXPLAIN WHY I'VE NOT
SEEN ANYTHING, A.
B, YOU'RE HIGHLIGHTING
SOMETHING, BEYOND THE
PHYSICAL EXERCISE AND THE LIKE
BUT,
ALSO, KEEPING MINDS AND BODIES
ENGAGED. WE MAY HAVE A POSITIVE
PUBLIC
SAFETY IMPACT BECAUSE THERE'S
A CHALLENGE THAT WE HAVE, AND SO
I APPRECIATE THAT POINT.
AND WE DO HAVE TO HAVE A DIVERSE
MULTIPRONGED APPROACH ON
THIS, SO I SEE THIS FITTING INTO
THAT.
AND I'LL KEEP MY EYE
OUT. I THINK INTERBAY SHOULD BE
NEXT.
FOR THE
RECORD. THANK YOU, CHAIR.
>> THANK YOU, COUNCILMEMBER
KETTLE. AND I THINK WE HAVE
ONE MORE SLIDE AFTER THIS, OR IS
IT JUST
QUESTIONS?
>> IT'S JUST THE QUESTIONS.
>> OH, AWESOME.
SO WE'RE AT THE END OF THE
PRESENTATION. MY APOLOGIES.
I WILL PAUSE HERE FOR
OTHER COUNCILMEMBERS TO
SEE IF THEY HAVE ANY QUESTIONS.
COUNCILMEMBER RIVERA?
>> THANK YOU, CHAIR.
JUST TO THANK PARKS FOR
THIS PRESENTATION, AND I HAD
RECEIVED A BRIEFING LAST WEEK, A
VERY THOROUGH BRIEFING.
I APPRECIATE THIS PROGRAM.
I REMEMBER A TIME NOT THAT
LONG AGO WE WERE CONSIDERING
WHAT DO
WE DO WITH THESE GOLF COURSES?
AND I WAS REALLY HAPPY TO SEE
THERE'S BEEN THIS RENEWED
ENERGY FOR MAINTAINING AND
KEEPING THESE COURSES, AND NOW
FOLKS
ARE REALLY UTILIZING THEM, AND
KIDS
IN PARTICULAR.÷÷IN ONE PIECE OF
THE
CONVERSATION THAT'S REALLY
IMPORTANT AND,
COUNCILMEMBER KETTLE, THIS DOVE
TAILS INTO SOMETHING YOU WERE
SAYING.
THERE'S A MENTAL HEALTH
COMPONENT TO GOLF AS WELL.
I KNOW THAT FOLKS THAT DO
GOLF EXPRESS THIS.
IT'S NOT ONLY JUST THE
PHYSICAL HEALTH BUT A MENTAL
HEALTH BENEFIT THAT COMES FROM
PLAYING THIS SPORT, AND SO
THE IMPORTANCE OF PROVIDING THIS
ACCESS TO KIDS AND DOING
THAT, AND WE TALKED WITH PARKS
ABOUT,
YOU KNOW, DOING SOME OUTREACH AT
SEATTLE PUBLIC SCHOOLS, ET
CETERA, TO GET KIDS
MORE INTERESTED IN THIS
PARTICULARPARTICULAR BECAUSE IT
DOES HAVE
THAT MENTAL HEALTH COMPONENT,
AND
I KNOW PARKS IS WORKING ON THAT.
SO I VERY MUCH APPRECIATE THAT.
AND THANK YOU, CHAIR, FOR
HAVING THIS PRESENTATION TODAY.
>> ARE THERE OTHECOUNCILMEMBERS
HAVE QUESTIONS OR COMMENTS?
I THINK THAT'S AN
OLD HAND. COUNCIL PRESIDENT, DID
YOU HAVE
ANY COMMENTS?
>> NOPE.
>> AWESOME.
BACK TO YOU, COUNCILMEMBER
STRAUSS.
THAT'S AN OLD HAND.
>> I THINK THERE'S A NEW HAND.
>> OH, IT'S A NEW HAND.
THAT'S WHAT I'M SAYING.
>> I APOLOGIZE.
>> I JUST WANTED TO FOLLOW UP --
>> COUNCILMEMBER KETTLE.
>> I WAS QUESTIONING ON THAT
SPECIFIC SLIDE BUT, IN
GENERAL, I COME FROM THE
GENERATION WHERE IT WAS THE
WHITE GUY'S SPORT AND
ALL THE THINGS THAT PLAYED
INTO CADDYSHACK AND ALL THE
REST.
>> "CADDYSHACK.
"
>> I CAN QUOTE HALF,
THREE- QUARTERS OF THAT MOVIE,
BUT I WON'T.
DISCRETION. BUT WHAT'S
IMPORTANT IS THIS
TRANSFORMATION AND
UNDERSTANDING THE DIFFERENT
PIECES IN THIS TO
WHAT WE WERE JUST TALKING ABOUT
BUT, ALSO, THE ENVIRONMENTAL
PIECES.
I THINK THAT IS
MASSIVELY IMPORTANT.
SIR,
WHEN YOU WERE HERE BEFORE, THE
POINTS YOU WERE MAKING
ON THAT WERE VERY IMPORTANT, AND
THAT SHOWS THAT THE
EVOLUTION, SO WE'VE MOVED AWAY
FROM THAT SO
THERE'S THE YOUTH PIECE,
THE ENVIRONMENTAL PIECE, THE
MULTIUSE, SEASONAL ASPECTS
THAT IS ALL ENCOMPASSED.
IN ADDITION TO TREE CANOPY
GOALS AND THE LIKE.
AND SO I THINK THAT IS
SOMETHING THAT WE SHOULD BE FROM
MESSAGING AND WE SHOULD BE
HIGHLIGHTING
THOSE DIFFERENT ASPECTS.
AND SO I SUPPORT THIS AND
WE SHOULD CONTINUE THE
ENVIRONMENTAL PIECES, TOO, LIKE
INTERBAY IS VERY IMPORTANT
IN TERMS OF THE SOUTH SLOPE
WHERE
WHEELER IS, WHERE IT CONNECTS
TO BASICALLY A RAIL YARD ROAD
THAT IS SO IMPORTANT TO
MAINTAINING THAT SOUTH EDGE OF
INTERBAY
WHICH THEN GOES INTO THE GENERAL
AREA JUST SOUTHWEST OF THE
P-PATCH.
AND SO THESE -- THIS IS WHERE
IT MAKES A DIFFERENCE.
AND SO I JUST ASK THAT, YOU
KNOW, WE MAINTAIN THOSE KIND
OF ADDITIONAL ENVIRONMENTAL
SUPPORTS, BECAUSE THAT'S REALLY
IMPORTANT, PARTICULARLY IN
INTERBAY.
SO THANK YOU.
THANK YOU, CHAIR.
>> CAN I ADD ONE THING?
>> PATRICK, PLEASE.
>> WE HAVE OVER 7,000 ROUNDS
OF YOUTH GOLF THIS YEAR ALREADY.
THE OPPOSITE IS HAPPENING FOR
US, WE CAN ADVERTISE
COMMUNITY CENTER PROGRAMS FOR
THOSE KIDS
BECAUSE THEIR AGES WHATEVER TO
17, THE FREE LUNCH, THE FREE
SWIM. WE NEED BROCHURES OR
KIOSKS
TO ADVERTISE OTHER OPPORTUNITIES
IN, PA, SO WE'RE WORKING ON
THAT AS WELL.
>> THANK YOU.
PATRICK DOESN'T GET ENOUGH
CREDIT. HE'S PHENOMENAL,
SERIOUSLY, PHENOMENAL AT YOUR
JOB AND
MANAGING ALL OF THIS AND ALL
THE PROGRAMS AND DEVELOPMENT
THAT
YOU'VE DONE.
SO DEFINITELY WANT TO GIVE
YOU YOUR SHOUTOUT AS WELL.
AND HE DID NOT PAY ME FOR THAT.
COUNCILMEMBER STRAUSS.
>> THANK YOU, CHAIR.
AND I HAVE TO ECHO THOSE
KUDOS OF PATRICK.
IT WAS IMPRESSIVE TO GET TO MEET
WITH YOU EARLIER AND
LEARN ABOUT WHAT YOU DO ON
BEHALF OF THE
CITY OF SEATTLE AND
THOSE VISITING SEATTLE.
IT'S TRULY IMPRESSIVE.
I DID NOTICE IN THE BACKGROUND
OF YOUR OFFICE, DID IT
SAY PATRICK MERRIAM COMPLEX?
>> NO.
MY LAST NAME IS MERRIAM, NOT
MERRIMAN.
IT'S AT MAGNUSON PARK
AND NAMED AFTER MY BROTHER, A
LARGE ADVOCATE BRINGING
SPONSORSHIPS AND LOW INCOME,
SELECT BABLG WHERE THEY DIDN'T
HAVE AN
OPPORTUNITY.
TRYING TO CREATE AFRICAN
AMERICAN LEAGUES IN
BASEBALL BECAUSE IT'S MOSTLY
YOUNG WHITE
FOLKS, SO THEY NAMED
THE FACILITY AFTER HIM.
THE SIGN IS IN MY OFFICE.
I THINK ABOUT HIM EVERYONE
DAY.
>> IS THERE ALSO A SIGN ON THE
COMPLEX?
>> OH, YEAH.
>> OKAY.
>> A ROCK, A SIGN, AND IT WAS
DESIGNED BY
THE BEST LANDSCAPE ARCHITECT WE
EVER HAD, ANDY
SHEFFER.
>> ANDY, DID YOU PAY HIM TO SAY
THAT?
NO.
WE DON'T DO THAT AROUND HERE.
THEY'RE ALL JOKES ABOUT THAT.
I JUST WANT TO ALSO CORRECT THE
RECORD.
EARLIER I SAID GREEN LAKE WAS
PUTT- PUTT, IT IS PITCH AND
PUTT.
EXCUSE ME.
I SEE THE HEADS SHAKING AT ME.
YES, IT IS IN D- 6 AND I'VE
BEEN
PASSING IT MY ENTIRE LIFE.
REAL
QUICK, THOUGH, FOR
SUPERINTENDENT, AND SORRY TO
PUT YOU ON THE SPOT, IS THAT
A CONCESSION AIR PERMIT, WHY
THAT IS DIFFERENT THAN THE
GOLF COURSE PERMITS?
>> CORRECT.
BECAUSE GOLF MANAGEMENT
MANAGEMENT
CONTRACT, SO
IT'S A LITTLE BIT
DIFFERENT.
>> FANTASTIC.
AND IT'S IMPRESSIVE.
YOU SAID AROUND 500 ACRES OF
PARKLAND DEDICATED TO GOLF.
COLLEAGUES, THAT IS ABOUT
THE SIZE OF DISCOVERY PARK.
JUST FOR CONTEXT.
AND SO THANK YOU, ALSO, FOR
NOT PUTTING THIS TO A VOTE
TODAY.
WE HAD THE BRIEFING WITHIN
48 HOURS AGO, AND WORKING
WITH TRACY ON POTENTIAL
PUBLIC BENEFIT AMENDMENTS HERE.
AND WHAT I DON'T WANT TO DO
IS PUT SOMETHING ON THE TABLE
TODAY WITHOUT WORKING WITH THE
PARKS
DEPARTMENT AND PREMIER TO
MAKE SURE THAT IT IS WORKING FOR
EVERYONE.
WITH OVER 500 ACRES OF PARKLAND
DEDICATED TO GOLF, TWO THUMBS
UP. I'M FINE WITH THAT.
AND GOLF DOESN'T GO 24/7, SO
HOW CAN WE WORK AROUND
THAT? I'M NOT GOING TO PROPOSE
ANYTHING THAT ISN'T AGREED
UPON, AND I WOULD ALSO LIKE TO
SEE WHAT OTHER PUBLIC BENEFITS
WE CAN WORK INTO THIS.
THANK YOU, CHAIR.
>> THANK YOU, COUNCILMEMBER
STRAUSS.
JUST AN INTERESTING FACT, IF YOU
PLAY THE SHORT NINE AT
BILL WRIGHT COMPLEX, YOU PLAY
NEXT
TO PEOPLE PLAYING FRISBEE AS
WELL. SO THERE ARE A LOT OF
AWESOME
OPPORTUNITIES. I ALWAYS PRAY FOR
THE
PEOPLE PLAYING NEXT TO ME WHILE
I'M HITTING A BALL AND
THEY'RE THROWING THE FRISBEE.
I DON'T KNOW THAT YOU
WANT TO BE NEXT TO ME, BUT
LOOKING FORWARD TO WORKING WITH
YOU, COUNCILMEMBER STRAUSS,
AND ALSO -- AND I APOLOGIZE, I
DID NOT RECOGNIZE TRACY WHO
IS AT THE TABLE.
DID YOU HAVE ANYTHING TO
ADD ABOUT ANY OF THIS FROM
CENTRAL STAFF PERSPECTIVE?
>> THE ONLY THING I WOULD
ADD, AND IT GETS TO THE PILLARS
OF THIS COUNCIL ABOUT FINANCIAL
SUSTAINABILITY. THIS IS THE ONE
RECREATION
PROGRAM THAT IS OPERATED
BY PARKS THAT IS ENTIRELY
SELF-SUFFICIENT.
IT DOES NOT GET A DIME OF
GENERAL FUND OR MPD FUNDS.
IT GENERATES THE REVENUE
TO COVER THE MAINTENANCE COSTS
OF THE CITY, THE OVERSIGHT THAT
THE CITY PROVIDES TO THE
PROGRAM,
SO IT IS A PROGRAM THAT
GENERATES A
LOT OF GOOD FOR THE CITY AT
NO COST TO THE GENERAL FUND,
WHICH
IS IMPORTANT IN THESE DAYS
WHERE WE'RE FACING THOSE
CONSTRAINTS.
>> ABSOLUTELY.
NO, THANK YOU FOR THAT,
BECAUSE I KNOW THAT PEOPLE %
ALWAYS
WANT TO KNOW ABOUT THAT WHEN
THEY'RE ADVOCATING FOR
DIFFERENT USES
OF THE GOLF COURSE OUTSIDE OF
MAYBE THE ATHLETIC RANGE AND
WHAT NOT.
IT'S GOOD TO KNOW THIS IS
SELF-SUSTAINING.
AND THEN I ALSO WOULD LIKE
TO ADD JUST REAL QUICK, THIS IS
MY LAST THING BECAUSE I
KNOW WE HAVE TO MOVE ALONG HERE,
BUT
I ALSO WANT TO ADD THE PUBLIC
BENEFIT OF THE KIDS PIECE
IS INCREDIBLY IMPORTANT.
SOUTH SEATTLE IS 12% OF OUR
POPULATION, 30% OF THE GUN
VIOLENCE, AND THERE'S A LOT
OF KIDS THAT UTILIZE THE
BILL WRIGHT GOLF COURSE.
AND YOU HAVE TO GIVE KIDS
RESOURCES, EXPOSURE AND
OPPORTUNITY.
AND HAVING THE EXPOSURE TO
GOLF AT 5 YEARS OLD, I MIGHT
ADD,
REALLY PUT ME ON A
DIFFERENT PATHWAY IN LIFE.
WHEN YOU DO THAT FOR KIDS,
THEY GET TO BE ABLE TO DO
SOMETHING THEY'VE NEVER -- THAT
IS
RIGHT THERE IN THEIR BACKYARD
AND HAVE
THAT OPPORTUNITY TO PLAY.
WHEN YOU ARE ON THESE GOLF
COURSES, YOU FEEL LIKE YOU ARE
IN A FOREST, YOU ARE IN ANOTHER
WORLD.
YOU ARE NOT IN A CITY, AND YOU
CAN CREATE REALLY MAGICAL
MEMORIES.
AND IT'S ALSOALSO
INTERGENERATION INTERGENERATION,
WHICH I
THINK IS IMPORTANT WHEN KIDS ARE
ABLE TO CONNECT WITH OLDER
ADULTS AND
HAVE THAT ENVIRONMENT.
WE NEED MORE OF THAT.
THOSE ARE SPACES WHERE YOU
HAVE OLD FOLKS, YOUNG FOLKS,
THEY
CAN COME TOGETHER AND PLAY A
SPORT EVEN IF THEY RIDE AROUND
IN
A GOLF COURSE LIKE MY DAD
BECAUSE HE DOES NOT WALKWALK
GOLF
COURSE ANYMORE.
SHOUTOUT, DAD.
ALL RIGHT, THANK
YOU. I THINK THAT'S THE END OF
OUR
PRESENTATION.
>> THANK YOU.
>> THANK YOU ALL SO
MUCH. AND LOOKING FORWARD TO YOU
ALL
COMING BACK.
WE WILL NOW READ AGENDA
ITEM NUMBER THREE INTO
THE RECORD.
WHAT WE ALL HAVE BEEN WAITING
FOR.
>> AGENDA ITEM THREE SEATTLE
PUBLIC UTILITIES REPORT ON
2024
AUDITS FOR BRIEFING AND
DISCUSSION.
>> AWESOME, THANK YOU ALL FOR
BEING HERE.
OUR FAVORITE A- WORD, AUDIT.
I WANT TO THANK MOSS ADAMS FOR
ALL THEIR WORK.
WE KNOW THAT SEATTLE
PUBLIC UTILITIES IS SUCH A BIG
DEPARTMENT, AND I'VE JUST
BEEN REALLY IMPRESSED WITH
GENERAL MANAGER LEE AND THEIR
STAFF ON THE TRANSPARENCY
THAT THEY'VE HAD, YOU KNOW,
SINCE I'VE
STARTED WORKING WITH THEM, AND
I KNOW MY OTHER COLLEAGUES HAVE
PROBABLY WORKED WITH THEM
LONGER, BUT JUST REALLY
IMPRESSED WITH THE AMOUNT OF
AUDITS THEY HAVE
AND DOUBLE-CHECKING AND THE
CHECKS
AND BALANCES THAT THEY HAVE
BEEN DOING WITHIN THEIR
DEPARTMENT
AND LOOKING FORWARD TO
HEARING WHAT ARE THE FINDINGS
THAT
MOSS ADAMS HAS FOUND WITH
THEIR EXTERNAL AUDIT.
AND THANK YOU, NINA, FOR
ALL YOUR HELP.
I APPRECIATE YOU.
I KNOW IT'S A LOT WITH THE I.T.
THANK YOU.
>> THANK YOU.
>> AND PLEASE STATE YOUR
NAME FOR THE RECORD AND JUMP
RIGHT
IN.
>> THIS IS LAURIE TISH AND
I'M HERE WITH KEITH SIMOVIC AND
ANNA
WALDREN. WE ARE REPORTING BACK
WITH THE COMMITTEE CHARGED
WITH GOVERNANCE OVER THE
SEATTLE PUBLIC UTILITIES AND
THOSE
AUDITS. THE RESULTS OF THE 2024
AUDITS.
SO, FIRST OF ALL, LET
ME DESCRIBE THE SCOPE OF
SERVICES.
WE DO ISSUE SEPARATE AUDITS
ON EACH OF THE THREE UTILITIES,
WATER, DRAINAGE AND WASTE
WATER AND SOLID WASTE.
AND, TO BE CLEAR,
OUR RESPONSIBILITY IS TO
ACTUALLY PERFORM THE AUDIT AND
TO
ENSURE IN OUR REPORT TO PROVIDE
YOU TO
ENSURE THE FINANCIAL RESULTS
ARE IN ACCORDANCE WITH
GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES.
SPU MANAGEMENT, HOWEVER,
IS IN CHARGE OF THE PREPARATION
AND THE
FAIR PRESENTATION OF THOSE
FINANCIAL STATEMENTS. A FULL SET
OF DRAFTED STATEMENTS
ARE PROVIDED TO US WITH
THE AUDITING SCHEDULES THAT BACK
UP
THE FINANCIAL STATEMENTS
THEMSELVES.
KEITH AND ANNA ARE GOING TO
GO INTO A LITTLE BIT MORE
DETAIL,
BUT I DO WANT TO EXPLAIN THAT
IN ADDITION TO ACTUALLY
AUDITING EACH FINANCIAL
STATEMENT LINE
ITEM, THERE'S A LOT THAT
GOES BEHIND THAT.
THERE'S A SET OF
INTERNAL CONTROLS THAT SUPPORT
THOSE FINANCIAL NUMBERS, AND
PART
OF OUR AUDIT IS TO ENSURE THAT
WE
TEST THOSE INTERNAL CONTROLS.
NOW OUR REPORTS DO COVER THE --
LET ME BACK UP.
KEITH WILL GO INTO THIS
MORE, BUT OUR REPORTS ARE GOING
TO COVER NOT ONLY THE FAIRNESS
OF
PRESENTATION OF THOSE
FINANCIAL STATEMENTS BUT ALSO
THE
INTERNAL CONTROL.
WE DO ISSUE
AN INTERNAL CONTROL REPORT
RELATED TO THOSE AS WELL.
NOW THE PURPOSE OF OUR AUDIT
IS SEVERAL FOLD.
IT IS TO INFORM YOUR
TAXPAYERS AND YOUR RATE PAYERS
AND
OTHER INTERESTED STAKEHOLDERS
WITH RESPECT TO THE FINANCIAL
STATUS
AND FINANCIAL POSITION OF THE
UTILITIES.
WE ALSO MAKE SURE THAT
THERE'S NO DUPLICATION OF
EFFORTS
WITH THE STATE AUDIT OFFICE.
THE STATE AUDITOR'S OFFICE IS
IN
CHARGE OF AUDITING THE CITY OF
SEATTLE. THESE FINANCIAL
STATEMENTS ACTUALLY ROLL UP INTO
THE CITY'S
SET OF FINANCIAL STATEMENTS,
AND THE STATE AUDITOR RELIES ON
OUR
AUDITS, AND THERE IS
NO DUPLICATION OF EFFORTS.
IN FACT, WE DO HELP EACHEACH
AS FAR AS THEY ARE
AUDITING OFTENTIMES THE TREASURY
AND
THE CASH SYSTEMS THAT THE
SEATTLE PUBLIC UTILITIES SHARE,
AND SO
WE RELY ON THEM TO DO THAT
PART OF THE AUDIT, AND THEY RELY
ON US TO DO, OF COURSE, OUR
AUDIT ON THE SEPARATE SET OF
FINANCIAL STATEMENTS.
ANOTHER VERY IMPORTANT USAGE
OF OUR AUDIT REPORTS AND THESE
FINANCIAL STATEMENTS IS FOR
THE BOND OFFERINGS AND
THE BONDHOLDERS THAT EACH OF
THE SEATTLE PUBLIC UTILITY
ENTITIES HAVE THEIR OWN BONDS.
SO, WITH THAT, KEITH, I
THINK YOU WERE GOING TO COVER
THE ACTUAL RESULTS OF THE AUDIT
REPORTS.
>> ALL RIGHT.
CAN YOU HEAR ME OKAY?
PERFECT.
THERE'S SOME GOOD NEWS ON HERE,
ALTHOUGH I HAVE TO TELL YOU
I WISH WE HAD SOME GOLF
PICTURES ON HERE OR SOMETHING.
THAT'S ALL I HAVE ON MY MIND
RIGHT NOW.
WE HAVE SOME GOOD NEWS
IN TERMS OF WHAT OUR FINAL AUDIT
REPORTS
SAY, SO THROUGH, NOW THAT WE'RE
WITH
THE AUDIT AND WE FINALIZED OUR
REPORTS, WHAT DOES IT ACTUALLY
MEAN WHEN WE'RE GIVING AN
UNMODIFIED OPINION ON
THE FAIRNESS AND ACCURACY OF
THE FINANCIAL STATEMENTS.
THROUGH ALL THE TESTING THAT
WE DO OVER SEATTLE PUBLIC
UTILITIES,
INCLUDING INDIVIDUALLY THE
WATER, DRAINAGE
AND WASTE WATER, AND THE
SOLID WASTE FUNDS.
EACH ONE OF THOSE
INDIVIDUAL AUDIT REPORTS WE'RE
GIVING
UNMODIFIED OPINION,
ANY REPORTING ON THOSE, THE CITY
AS A WHOLE, THE STATE
AUDITOR'S OFFICE WANT TO KNOW
YOU HAD
THAT AUDIT DONE, IT WAS DONE BY
AN INDEPENDENT CPA FIRM LICENSED
TO
DO THE WORK AND YOU GOT AN
UNMODIFIED OPINION, RIGHT,
SO THEY CAN PLACE RELIANCE ON
THE WORK WE'RE DOING AND
INCORPORATE THAT INTO THE
CITY'S
FINANCIAL STATEMENTS AS A WHOLE.
SO VERY GOOD NEWS AND THROUGH
ALL THE DETAILED TESTING
THAT WE'RE DOING BACK TO
CONTRACTS,
AGREEMENTS, INVOIPS VOICES, YOU
NAME IT, DOCUMENTATION TO
SUPPORT WHAT'S BEING
REPORTED AND CAPTURED ALL
THROUGHOUT
THE YEAR BY THE FINANCE STAFF AT
SPU IS REFLECTED AND
CAPTURED TOGETHER AND REFLECTED
IN YOUR
FINANCIAL STATEMENTS IN A FAIR
AND ACCURATE MANNER.
SO THAT'S EXACTLY WHAT
YOU'RE LOOKING
FOR. ON TOP OF THAT OUR
GOVERNMENT AUDITING STANDARDS
REPORT,
WHERE WE WOULD NOTE ANY
SIGNIFICANT
FINDINGS SO THE RED
FLAG LANGUAGE THAT YOU WANT TO
BE
ON THE LOOKOUT FOR, WERE THERE
ANY MATERIAL WEAKNESSES
OR SIGNIFICANT DEFICIENCIES
AND INTERNAL CONTROLS, MEANING,
HEY, DID WE FIND ANYTHING WHERE
WE
FEEL LIKE THERE'S A SIGNIFICANT
LACK OF CHECKS AND BALANCES IN
PLACE, RIGHT, WHERE
SOMETHING COULD SLIP THROUGH THE
CRACKS
WHETHER A SIGNIFICANT ERROR OR
FRAUD AND NOT BE CAUGHT BY
THE CURRENT SYSTEM IN PLACE.
SO WE DID NOT HAVE ANY
MATERIAL WEAKNESSES WHEN
YOU READ THROUGH THAT REPORT
THAT YOU'LL SEE.
WE DID NOT HAVE ANY
SIGNIFICANT DEFICIENCIES TO NOTE
AS WELL,
SO EXACTLY WHAT YOU'RE LOOKING
FOR THERE.
WE FINALIZE THE REPORTS
BACK AT THE TAIL END OF APRIL,
WHICH
IS WHAT WE TYPICALLY AIM FOR
EACH AND EVERY
YEAR. GO AHEAD AND ADVANCE THE
SLIDE.
LOTS OF WORDS ON HERE, I
UNDERSTAND.
I'M NOT GOING TO GO THROUGH
ALL OF THOSE.
BUT THIS IS TO SUMMARIZE
OUR DIFFERENT
RESPONSIBILITIES LAURIE WENT
THROUGH SOME OF
THOSE AND OUR REPORTING
RESPONSIBILITIES THERE IN
BOX ONE TO GIVE AN OPINION OVER
THE
FINANCIAL STATEMENTS, BOX
TWO HAS TO DO WITH FOLLOWING
PROFESSIONAL STANDARDS,
SO WE HAVE CERTAIN PROFESSIONAL
STANDARDS WE HAVE TO FOLLOW
THAT DICTATE HOW WE GO ABOUT OUR
AUDIT, CERTAIN PROCEDURES
THAT WE HAVE TO PERFORM
EACH AND EVERY YEAR AS WELL.
SO OUR FINAL REPORTS SAY THAT
WE'RE PERFORMING THE AUDIT
IN ACCORDANCE WITH OUR
PROFESSIONAL STANDARDS.
BOX THREE HAS TO DO WITH
OUR EVALUATION OF INTERNAL
CONTROLS, VERY KEY
PART OF OUR INITIAL RISK
ASSESSMENT,
SO WE ACTUALLY SEPARATE THAT
FROM OUR FINAL TESTING OF THE
NUMBERS FOR THE YEAR ENDED, AND
GET
AN IDEA OF WHAT ARE THOSE
SYSTEMS OF CHECKS AND BALANCES,
HAVE
THEY CHANGED AT ALL FROM LAST
YEAR?
WE'RE
ABLE TO DO DETAILED TESTING FL
THOSE AND GET A GOOD
IDEA IF THERE'S A STRONG
SYSTEM OF INTERNAL CONTROLS AND
IF WE'RE FINDING THERE'S A
LACK
OF INTERNAL CONTROLS IN
CERTAIN AREAS THAT MIGHT
TRIGGER ADDITIONAL TESTING SO WE
CAN
FEEL COMFORTABLE AND GIVE AN
UNMODIFIED OPINION AT THE END OF
THE DAY IS THE GOAL.
BOX FOUR, OUR RESPONSIBILITY
THERE IS TO COMMUNICATE ANY
FINDINGS, RIGHT, AND COME BEFORE
YOU AS A RESPONSIBLE PARTY
FOR THE SPU'S FINANCIAL
STATEMENTS
AND REPORTING OUT OUR FINDINGS
HERE.
ALL RIGHT.
THE NEXT COUPLE OF SLIDES JUST
SUMMARIZE THE DIFFERENT AREAS
OF AWED AT THIS TIME EMPHASIS.
THIS ISN'T EVERYTHING
WE'RE LOOKING AT.
WE GO THROUGH EVERYTHING IN
THE FINANCIAL STATEMENTS LINE BY
LINE AND RISK ASSESS EACH
ONE AND COME UP WITH AN
INDIVIDUAL AUDIT PLAN FOR HOW WE
AUDIT CASH
INVESTMENTS AND ACCOUNTS AND
RECEIVERABLES.
SOME OF YOUR BOND RELATED
ACCOUNTS. THESE ARE JUST THE
ONES WE SPEND
THE BULK OF OUR TIME
DEPENDING ON THE LEVEL OF
COMPLEXITY,
THE SIZE OF THE BALANCE, THE
AMOUNT
OF ACTIVITY GOING THROUGH
THE AREAS IN A GIVEN YEAR THAT
CAN CAN KIND OF RAISE THE RISK
PROFILE OF A POTENTIAL ERROR
OR SOMETHING LIKE THAT AND
REQUIRE US TO DO ADDITIONAL
TESTING
THERE. SO THIS IS WHERE WE SPEND
KIND OF THE BULK OF OUR TIME.
THE NEXT SLIDE YOU'LL SEE A
FEW MORE LISTED ON THERE AS
WELL INCLUDING YOUR
OVERALL OPERATIONS STATEMENTS,
YOUR REVENUES AND EXPENSES
RUNNING THROUGH DURING THE YEAR
AND
YOUR OVERALL ENDING NET POSITION
OR
EQUITY THERE.
ALL RIGHT.
WITH THAT I'M GOING TO TURN IT
OVER TO ANNA, AND SHE'S GOING
TO
GO THROUGH SOME OF
OUR ADDITIONAL REQUIRED
COMMUNICATIONS.
>> ALL RIGHT.
SO WE DO HAVE SOME REQUIRED
COMMUNICATIONS THAT ARE
OUTLINED TO BE COMMUNICATED TO
THOSE CHARGED WITH GOVERNANCE.
WE SPEND A SIGNIFICANT PART
OF OUR TIME ALSO FOCUSED ON
THE ACCOUNTING POLICIES AS WELL
AS MANAGEMENT ESTIMATATION
THAT GOES INTO CREATING THE
FINANCIAL STATEMENTS.
WE WILL CALL YOUR ATTENTION
TO THOSE THAT ARE LOCATED IN
NOTE ONE OF THE FINANCIAL
STATEMENT SO DEFINITELY A GOOD
PLACE
TO READ TO GET AN UNDERSTANDING
OF
JUST THE OVERALL
ACCOUNTING POLICIES OF SPU.
WE DO REVIEW THOSE, LOOK FOR ANY
SIGNIFICANT CHANGES, ANY
INCONSISTENCIES OVER TIME.
NO SIGNIFICANT CHANGES FOR THIS
YEAR. AS I MENTIONED MANAGEMENT
ESTIMATION'S AN IMPORTANT
PART OF OUR AUDIT PROCEDURES.
THAT'S NOT NECESSARILY
SOMETHING YOU CAN TIE TO A
CONTRACT OR
INVOICE THAT REQUIRES A LITTLE
BIT OF JUDGMENT, CAN CHANGE
OVER TIME, AND SO WE DO SPEND
A SIGNIFICANT AMOUNT OF TIME
AUDITING MANAGEMENT'S
ESTIMATES, THE SIGNIFICANT ONES,
FROM
THE LIST HERE I WOULD CALL OUT
AS ALLOWANCES RELATED TO
ACCOUNTS
RECEIVABLE, THE
DEPRECIABLE CAPITAL ASSETS,
DEFINITELY ENVIRONMENTAL
LIABILITIES,
LITIGATIONS, ANY ONGOING
CONTINGENCIES AS WELL
AS OBLIGATIONS
AROUND CLOSURE CARE FOR
LANDFILL.
AND SOME GOOD NEWS HERE
JUST REPORTING BACK THAT WE DID
NOT
ENCOUNTER ANY SIGNIFICANT
DIFFICULTIES WHEN WORKING
WITH MANAGEMENT AND BEING ABLE
TO COMPLETE OUR AUDIT
PROCEDURES.
I'LL JUST ECHO THE TEAM
NOTES THAT WORKING WITH SPU IS
A WONDERFUL EXPERIENCE.
IT'S A LOT OF REQUESTS
AND QUESTIONS THAT WE HAVE,
SO REALLY APPRECIATE
THE SMOOTH PROCESS IN WORKING
WITH THEM.
NO DISAGREEMENTS WITH
MANAGEMENT IN TERMS OF
ACCOUNTING CONCLUSIONS THAT WE
WOULD NEED
TO CALL OUT.
CONTINUE THE GOOD NEWS, NO
MISSTATEMENTS, NO
IDENTIFIED CORRECTED
MISSTATEMENTS.
AND THEN WE DO REQUEST
CERTAIN REPRESENTATIONS BE MADE
BY MANAGEMENT AS PART OF
FINALIZING
OUR AUDIT ENGAGEMENT.
THAT'S A LETTER THAT COULD
BE MADE AVAILABLE TO THE
COMMITTEE
AS NEEDED.
AND THEN A CALLOUT
THAT THERE WAS ONE NEW
STANDARD THAT WAS REQUIRED TO BE
ADOPTED THIS
YEAR RELATED TO ACCOUNTING FOR
COMPENSATED ABSENCES IMPLEMENTED
IN 2024.
MANAGEMENT PREPARED A MEMO
ANALYZING THE IMPACT
ULTIMATELY CONCLUDED THAT THEY
WERE ALREADY -- THEIR
ACCOUNTING POLICIES WERE ALREADY
CLOSELY ALIGNED WITH WHAT WAS
REQUIRED
UNDER GATSBY 101.
THE ACCOUNTING POLICY FOR A
AGAIN
COMPENSATED ABSENCE IS IN
FINANCIAL DISCLOSURES.
AND NO CONSULTATIONS WITH OTHER
ACCOUNTANTS THAT WE'RE AWARE
OF.
THE SPU IS SUBJECT TO POTENTIAL
LEGAL PROCEEDINGS.
WE MEET WITH
DIFFERENT PARTIES WITH ONGOING
LEGAL CLAIMS
TO UNDERSTAND IF THERE'S ANY
EXPOSURE THAT SHOULD BE
DISCLOSED IN THE
FINANCIAL STATEMENTS AND THEN
YOU
JUST WANT TO CALL OUT AGAIN THAT
WE
ARE INDEPENDENT OF
MANAGEMENT, THAT'S WHY YOU AS A
GOVERNANCE ARE ABLE TO RELY ON
OUR FINDINGS
FROM THE AUDIT.
>> SO, WITH THAT, WE'RE GOING
TO WRAP THINGS UP AND I WANT TO
SAY THANK YOU TO ALL THE STAFF
THAT PLAYED A BIG PART IN THIS.
AS ANNA SAID, THERE'S A LOT OF
REQUESTS, PROBABLY HUNDREDS, IF
NOT THOUSANDS OF PIECES
OF DOCUMENTATION WE PULL
TOGETHER EACH YEAR AS PART OF
THE
PROCESS SO THAT WE CAN GET TO
THIS
POINT AND RIGHT ON TIME WITH
PREVIOUS
YEARS, WHICH IS PRETTY AMAZING.
SO REALLY APPRECIATE ALL THEIR
EFFORTS NOT ONLY DURING
THE AUDIT PROCESS BUT THROUGHOUT
THE
YEAR TO HAVE A GOOD SYSTEM
OF INTERNAL CONTROLS THAT
THEY'RE FOLLOWING THROUGH ON
THAT WEWE
RELY ON AND GET THROUGH
OUR TESTING IN A QUICK MANNER
OVERALL AS FAR AS AUDITS GO.
I APPRECIATE THEIR HELP.
AND ONE MORE THING THAT
WE WANTED TO GO THROUGH, JUST
TO DISCUSS A LITTLE BIT
ABOUT WHAT'S GOING ON WITH OUR
FIRM, SOME NEWS JUST BRIEFLY AS
MOSS
ADAMS IS NOW BECOMING
BAKER TILLY AS WE MERGED WITH
ANOTHER SIMILAR SIZED FIRM.
YOU MAY
OR MAY NOT HAVE HEARD OF, BUT
BAKER TILLY IS ANOTHER
FIRM HEADQUARTERED OUT OF
CHICAGO, MAINLY LOCATED IN
THE UPPER MIDWEST AND INTO THE
EAST AND DOWN INTO THE SOUTH A
LITTLE BIT AS WELL WHEREAS MOSS
ADAMS HAS BEEN WEST COAST, INTO
THE SOUTHWEST AND TEXAS.
SO VERY COMPLEMENTARY IN
TERMS OF THE FOOTPRINT THAT WE
OVERALL.
EY ARE VERY INDUSTRY FOCUSED
JUST LIKE WE ARE, SO THEY
ALSO HAVE A GOVERNMENT SERVICES
PRACTICE, AN ENERGY AND
UTILITIES PRACTICE AS WELL, SO
VERY EXCITED TO CONTINUE TO
KIND OF GET TO MEET MORE OF
OUR COLLEAGUES OVER AT BAKER
TILLY AND TAP INTO SOME OF
THEIR EXPERTISE AND SOME OF THE
CLIENTS AND EXPERIENCES
THAT THEY'VE HAD AS WELL AND
BRINGING
THAT TO OUR HERITAGE MOSS ADAMS
CLIENTS. WE DON'T EXPECT THERE
TO BE ANY
IMPACTS TO ANY OF OUR TEAMS.
WE'RE GOING TO CONTINUE TO
WORK ON THIS ENGAGEMENT,
STAFFING THIS OUT OF OUR SAME
OFFICES WITH OUR SAME PEOPLE
HERE LOCALLY.
NO CHANGES FROM THAT STANDPOINT.
WE DID WANT TO LET YOU
KNOW THERE IS A BIT OF A CHANGE
FROM OUR
STANDPOINT. ALL RIGHT.
>> THANK YOU ALL SO MUCH
FOR YOUR THOROUGH PRESENTATION.
OBVIOUSLY I KNOW THAT WE HAD
A BRIEFING ABOUT THIS, AND
YOU ANSWERED ALL MY
QUESTIONS REGARDING SPU AND ANY
CONCERNS THAT WE HAD AND JUST
REALLY APPRECIATE THAT.
I WILL PAUSE HERE TO SEE IF
MY COLLEAGUES HAVE ANY QUESTIONS
REGARDING THIS.
COUNCILMEMBER KETTLE?
>> THANK YOU, CHAIR
HOLLINGSWORTH.
NO QUESTIONS.
I JUST WANTED TO SAY THANK YOU
FOR THE OVERSIGHT, TO ASSIST --
THE GOOD GOVERNANCE PIECE THAT
WE LIKE TO TALK ABOUT.
SO THANK YOU VERY MUCH.
I APPRECIATE IT.
GREAT COMPLEMENT TO OUR GOLF
DISCUSSION.
>> AWESOME.
THANK YOU, COUNCILMEMBER KETTLE.
THE GOOD GOVERNANCE YOU TALKED
ABOUT.
COUNCIL PRESIDENT NELSON?
ANYONE?
NO?
AWESOME.
THAT WAS PRETTY STRAIGHTFORWARD.
I REALLY APPRECIATE YOU
ALL FOLLOWING UP ON THAT AND
ALSO WITH GOOD NEWS THAT OUR
SEATTLE PUBLIC UTILITIES
DEPARTMENT IS
RUNNING HEALTHY AND
ABOVEBOARD, SO THANK YOU ALL.
THANK YOU ALL FOR BEING HERE.
AND WITH THAT , IF
THERE'S NO OTHER FURTHER
BUSINESS TO COME
BEFORE THE COMMITTEE, I JUST
WANT TO THANK YOU ALL FOR TODAY.
IF THERE'S NO FURTHER
BUSINESS, THIS IS GOING TO
CONCLUDE OUR
JUNE 11th MEETING OF THE PARKS,
PUBLIC UTILITIES, AND TECHNOLOGY
COMMITTEE.
OUR NEXT MEETING IS GOING TO
BE SCHEDULED FOR WEDNESDAY, JUNE
25th, AT 2:00 P.M.
AND HEARING NO FURTHER BUSINESS,
IT IS 3:24 P.M.
THANK YOU SO MUCH. THIS MEETING
IS ADJOURNED.