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HomeMy WebLinkAbout100625 City Council Business Meeting PacketPORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. October 6, 2025 • Attend in person or virtually via computer or tablet at 11.E E,s: // 000m.us/ /98187633367 enter the Webinar ID 98187633367 • Phone only (muted - listen -only mode) United States: Local Dial In — 1(253)215- 8782„981876333674 • Submit public comment to be included in the meeting record to: 11.1.t1as://laublicconinient.lilloul.con //cityofpI • If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clers2La ort cr cit oft'' I. Call to Order II. Roll Call III. Changes to the Agenda IV. Proclamation(s) or Special Presentation(s) A. Oath of Office- Police Officer B. Friends of the Library Week Proclamation C. Indigenous Peoples' Day Proclamation D. Port Townsend Golf Park Presentation V. City Manager's Report VI. Comments from the Public (re consent agenda items and items not on the agenda) (Each person has 3 min. to comment- City Clerk will signal at 2 min. 30 sec.) A. Public comment B. Staff or Council response, as needed VI I. Executive Session — Pursuant to RCW 42.30.110(1)(i) Discussion with legal counsel about current or potential litigation (Approximately 20 minutes) VIIL Consent Agenda Action: Move to adopt the consent agenda andlor request to remove any individual item from the consent agenda. A. Approval of Bills, Claims and Warrants B. Approval of Minutes: February 18, 2025 (Updated), August 18, 2025, September 2, 2025 IX. Old Business A. Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations Proposed Action: Move to approve Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action B. Ordinance 3353 Relating to Bonds for City Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Official Bonds, in the Port Townsend Municipal Code (PTMC); and Adopting a New Section in 2.10.050 in the PTMC Proposed Action: Move to approve Ordinance 3353 Relating to bonds for city Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Official Bonds, in the Port Townsend Municipal Code (PTMQ; and Adopting a New Section in 2.10.050 in the PTMC i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action X. New Business A. Ordinance 3355 Repealing and Replacing Port Townsend Municipal Code Chapter 3.50 Relating to the City's Public Arts Program; Providing for Severability; and Establishing an Effective Date Proposed Action: Move to approve first reading of Ordinance 3355 Repealing and Replacing Port Townsend Municipal Code Chapter 3.50 Relating to the City's Public Art's Program; Providing for Severability; and Establishing an Effective Date i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action XI. Presiding Officer's Report XII. Suggestions for Future Agendas XIII. Comments from Council XIV. Adjourn 0 Z W U) Z 3: W U_ U- U- 0 U- 0 0 0 ` r z O z U ///_ � L 4— LL 0 4- O W �+ U) O U 0 0 CU � L O 4- O O U 70 — C cu CU CU U-0� L� o C cu o 7C) cu 70 cv cB o cn w U) .V U)E-oocu 0 � � V a) E`'_ O O 0 � cn 4- 4- cu -0 O to c J a) CU 70 (Cf O 70 O — 0) CU E~-0E(n (n CU O L cu U O 0— CU CU O � o (n 0-0 E E � (n o.— a) E= m� a 0 cu cu O w O a) 4— L O O -0 o +- to O � L U�-j O uj cu— > cu O O w N O N a) O U O O A cu CD a) O a) O O c cu a) U U) Ci ! 0 { (rt ' Townsein PROCLAMATION WHEREAS, Port Townsend Library Friends & Foundation raises money that enables our library to move from good to great —funding programming, book club kits, support for all -ages summer reading, library capital facilities projects, the annual Community Read, and special events throughout the year; WHEREAS, the work of the Friends continually highlights that our library is the cornerstone of the community, offering opportunities for all to engage in the joy of lifelong learning and to connect with the thoughts and ideas of others from ages past to the present; WHEREAS, the Friends understands the critical importance of well -funded libraries and advocates for our library to receive the resources it needs to provide a wide variety of services to all ages, including access to print and electronic materials and expert assistance in research, advice for readers, and children's services; WHEREAS, the Friends' gift of time and commitment to the library sets an example for all in how volunteering leads to positive civic engagement and the betterment of our community; NOW, THEREFORE, I, David J. Faber, Mayor of the City of Port Townsend, proclaim October 19-25, 2025 as Friends of Libraries Week in Port Townsend and urge everyone to join the Port Townsend Library Friends and Foundation and thank them for all they do to make our library and community so much better. David J. Faber, Mayor City part ,. Townsen WHEREAS, Indigenous Peoples have lived in the lands that would later become known as the Americas since time immemorial; and WHEREAS, Port Townsend is built upon the same land as the S'Klallam principal village of gatdy, an area where many tribes congregated during their travels; and WHEREAS, the S'Klallam Chief Chetzemoka understood that working with the early European settlers would produce better results than making war, he worked to improve relations between Native and non -Native residents of Port Townsend; and WHEREAS, the Cicmehan Trail through Port Townsend provides education and tells of this history at 16 stops throughout the City; and WHEREAS, Port Townsend has been honored as a landing stop for the annual Tribal Canoe Journey; and WHEREAS, the City values and honors these and many other contributions made to our community through the knowledge and culture of the indigenous peoples of this area; and WHEREAS, Indigenous Peoples' Day was first proposed in 1977 by a delegation of Indigenous Nations to the United Nations -sponsored International Conference on Discrimination Against Indigenous Populations in the Americas; and WHEREAS, in 2011 the Affiliated Tribes of Northwest Indians, representing 59 Tribes from Washington, Oregon, Idaho, Northern California, Western Montana and some Alaskan Tribes, passed a resolution to "Support to Change Columbus Day (2nd Monday of October) to Indigenous Peoples' Day"; and NOW, THEREFORE, I, David J. Faber, Mayor of the City of Port Townsend, declare Monday, October 13, 2025 to be Indigenous Peoples' Day in the City of Port Townsend and encourage all citizens to celebrate the foundational role of local indigenous peoples in our community David J. Faber, Mayor City0f Port ' m�10 Townsen Agenda Bill AB25-095 Meeting Date: October 6, 2025 Agenda Item: Special Presentation IV.D ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Melody Sky Weaver, Community Services Director and Michael Todd, Facilities and Parks Manager Date Submitted: October 1, 2025 Departments: Community Services Department Contact Phone: 360-344-3054 SUBJECT: Special Presentation by City Staff and the Friends of the Port Townsend Golf Park CATEGORY: BUDGET IMPACT: $ ❑Consent ❑ Resolution Expenditure Amount: ❑xStaff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑x ❑ Contract Approval ❑x Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: The City went through a robust community process to determine the uses and future of the municipal golf course now known as the Port Townsend Golf Park. The City entered into a 22-year lease with the Friends of the Port Townsend Golf Park to operate the nine -hole course and increase access to the general public. When City Council authorized the lease and throughout the robust community discussion, the property was called the Port Townsend Golf Course and then was officially renamed by City Council as the "Port Townsend Golf Park." The Friends decided to do business as (DBA) "The Camas Prairie Golf Park." This is not the official name but a DBA so the Friends can create branding and identity. After nearly two years into the 22-year lease with the Friends of the Port Townsend Golf Park ("The Friends") to operate the Port Townsend Golf Park, we are meeting to present on the metrics of the lease due to the lease opener, the evolution of the partnership between the Friends and the City, and the successful future of an inclusive municipal golf park to serve all ages in our community and visitors for many generations to come. Background On September 25, 2023, the City Council directed staff to negotiate a lease with the Friends for operations and public access of the land operating as a golf course. The Friends is a non-profit organization that negotiated and agreed to a lease to sustainably support and operate the golf park with enhanced access to this publicly - owned land. City Council met on November 6, 2023, and discussed the following principles of the lease- 1 . Operate the golf park in an environmentally sustainable manner. 2. Operate the golf park in a financially sustainable manner. 3. Improve and operate a 9-hole golf course. 4. Define lease term length. 5. Increase access for the general public. 6. Incorporate trails for a north to south and east to west connection, possible perimeter trails. 7. Collaborate with the City to install a playground. 8. Explore moving the Recyclery to the golf park. 9. Provide opportunity for permanent affordable housing along Blaine Street, planning in 2030, breaking ground in 2035. The attached lease represents all of the above, defining a 2+20-year term lease, with the City paying for water for the first two years, then sharing the costs, free rent for the first two years, phased enhancement to public access with metrics in Exhibit G, and allowing some exploration with the Recyclery. The Friends have completed a business plan that targets financial sustainability at five years. The City Council discussed this lease on December 6, 2023. Council sought to add more metrics and clarify reporting requirements including volunteer hours, include an evaluation at the two-year mark to extend the lease another 20 years, identify a timeline to give notice to the Friends when the City is interested in adding housing or other amenities, and retain City control to add additional amenities if the City decides it is in the public interest. The City also agreed with the Friends to introduce metrics/outputs to measure the amount of public access. These concerns have all been addressed in the signed lease, including adding an Exhibit H that demonstrates where any future housing may be located, if proposed. At the December 11, 2023, business meeting, City Council authorized the City Manager to sign the lease with Friends for the operations of the Port Townsend Golf Park. 2024-Present Since January 2024 when the Friends took the responsibility of operations, City staff, Friends board members, and staff have met one to two times monthly to discuss operations, the lease, the metrics, financial reporting, and business plan requirements. Some of the lessons learned are around how we worked together to learn and correct issues around the pond maintenance, permitting, and required certifications. Lease Phasing and Milestones W Phase I: 2024-2025 2-Year Study Period Business Improvement Accomplishments Met: Planning and Initial Public Needed/Made Yes or No Access Actions & Metric Park Operations Goals Initial Yes Initial renovations and improvements have improvements are completed; been made and maintenance operations are new equipment underway; needed equipment is secured secured; train operations staff & volunteers Financial Planning & Submitted thorough Yes Governance and timely reports Data collection and tracking of by each deadline operations; prepare business and including the capital investment plan; develop business plan marketing & fundraising plans; 2- year milestones are reached and a 20-year commitment in place Metric: Produce a business plan that projects financial sustainability on an achievable timeline and lays out the metrics for subsequent phases Community Access Trail heads are clearly Community access Yes Improve community access marked but could be has been through near term successes; more defined by significantly evaluate trial course play closure markers once you increased through times; install E/W trail; verify trail enter the park. partnerships, plan locations. Utilize the driving regular events, range and welcome center building First Sundays, to hold seasonal concerts and trails have been events. The City, in collaboration started and are with the Friends, reserves the right open to the public to continue to explore and select an available location for other municipal purposes, provided that it will not interfere with the area set aside for possible future housing, other recreational opportunities planned for the Golf Park nor hinder the Friends' ability to operate a successful business model for the golf course operations. Metric: E/W trail will be installed and open to the public; signage for the trail will be installed; a plan for the layout of the N/S trail and subsequent trails will be produced; the golf course will be closed to play for at least the equivalent of 6 full days a year for public access; at least 4 community events will be held a year during first 2 years; produce a plan that sets thresholds for increasing community usage for metrics in subsequentphases Expand Recreation Uses Design Disc golf is Yes and fund miniature golf; continue installed, First and expand the cross-country Sundays offer team and other uses; school and programming, family programs defined; disc and funds secured for a foot golf are integrated into future miniature operations golf setup Metric: Disc and foot golf targets are installed to allow for rounds of golf by these user groups; plans for additional programming will be produced Build Partnerships Develop uses Partnerships and Yes and agreements with service committees clubs, tribes, schools, Native Plant established and Society, and other community exceeds the groups; convene technical minimum metric advisory committee; continue the practice of holding fundraising tournaments to benefit local organizations Metric: Invitations will be sent to as many local groups as possible with the goal of a minimum of 4 groups to be in partnership with the Golf Park Facilities Improvements Main Making sure to obtain The club house has Yes buildings cleaned and updated: necessary permits and been renovated welcoming entry, pro shop, first submit letter to City with a pro shop, floor and basement improvements; before beginning site successful expand meeting and community improvements rebranding, and a uses; maintenance buildings new restaurant that cleaned and in full use is open to the public. Metric: The existing "clubhouse" will be refurbished & rebranded as a welcome center; it will be publicly advertised that it is available for rent for community use by organizations & private individuals Grounds and Turf Superintendent Grounds and turf Yes Initial irrigation upgrades; initial needed to obtain an are great improved tee and greens improvements, per applicators license and well David Hein Report before using maintained chemicals. The Metric: Improved condition of the Superintendent did golf course; updated irrigation eventually obtain the installed; native areas will be license and let the enhanced by 10% per year; turf Parks & Facilities management plan will be produced Manager know when by the superintendent which will chemicals are applied determine the metrics in and posts signage. subsequentphases Environmental Stewardship The wetland area Working close with Yes Identify and expand native and where the pond is the native plant prairie planting areas; adopt located was over groups. sustainable turf management mowed. The Friends Superintendent practices; wildlife plan for course are aware of oversight using more wide enhancements and are letting the sustainable vegetation regrow. practice. Creation Metric: turf & grounds Part of the master of the management plan produced by the planning of the park Environmental superintendent to include details includes identifying Stewardship on transition to sustainable buffer delineation lines Committee. practices to help guide us in future maintenance of the pond. Technical Advances Obtained donation Yes New electronic controls for to upgrade electric sprinklers; transition to electric carts to solar power equipment and carts Other Capital Improvements RCO grant award Yes Friends to work collaboratively with for a small inclusive the City on locating and applying playground fora grant for a nature playground Affordable Housinq Maintain an ongoing The City is Yes Evaluate golf course design and partnership as the City currently operations in collaboration with assesses long-term addressing housing City housing initiatives and site housing needs across as part of the planning, if underway. the City. Comprehensive Planning Process City's Responsibilities: The City agrees to the following maintenance and repair responsibilities Responsibilities Improvement Accomplishments Met: Needed/Made Yes or No The City will maintain Friends did have to City has done annual Yes the structural aspects remind staff to give 24 maintenance, yearly and systems of the hours' notice to annual inspections. clubhouse and other inspecting or working City/Friends of Port on the property. Staff Townsend Golf Park have been giving 2024-2046 existing proper notification of at buildings, including the least 24-hour notice. two sheds (for example, the roof, foundation, and exterior walls, and heating, electrical, and plumbing systems), except that the Friends shall be responsible for incidental maintenance and repairs (for example, replacement of faucet washers, etc.), and damage caused by the Friends or the Friends's customers (for example, damage to carpet from golf shoes) The City will maintain Yes, this has been Yes the native plant done as part of routine preserve signs, Chief parks maintenance. Chetzemoka statue, and cicmahan Trail signs and features. The City will be The City will provide Water well is being Yes responsible for regular updates about maintained, City reasonable capital water usage to improve provides up to 9 million improvements and our communication. gallons of water for maintenance to the irrigation annually. driveway and parking area (but not incidental cleanup which is the Friends's responsibility.) The City will be responsible for and maintain the water well. The City will be responsible to maintain the playground, if constructed, and any other facilities constructed by the City that are not a part of the Friend's leasehold interests. The City shall not be No issues encountered Yes responsible for any interruption or disturbance of the Friends's business or occupancy because of City's maintenance or repair of any items or for any damage, injury, or loss for failure to maintain or repair of any items. The City, in No exploration at this Yes collaboration with the time Friends, reserves the right to continue to explore and select an available location for other limited municipal purposes, provided that any such location will not be within the area set aside for future housing (Exhibit H); will not inhibit other public recreational opportunities planned for the Golf Park by the Friends; will not impact the golf course operations; and will not restrict or hinder the Friends' ability to operate a successful business model for the golf course operations nor any other facilities operated by the Friends The City and Friends have been in frequent communication having worked through and continue to work through the challenges of the care and maintenance of nearly 59 acres of public open space. The City has provided financial support for capital improvements to the clubhouse, covered hazardous waste removal left by the previous operators, and provided assistance from Parks and Facilities staff, including help with electrical issues in the clubhouse and annual mowing of the Camas Prairie. The Community Services Department had their first annual all staff training and team building at the golf park as well to learn about the history, vision, native plants, and experience the recreational opportunities there. The City and Friends are excited to celebrate the recent announcement of a successful Washington State Recreation and Conservation Office (RCO) grant for the City's first small inclusive playground for $350,000. The total project cost is nearly $500,000 with the City providing the required match of $150,000. This small inclusive playground will be located on the golf park. The City and Friends are also in discussions to master plan all elements of the golf park property together with the City as the project lead and property owner. Master planning together will be an exciting way to make the outcomes and aims of the lease agreement, and the full potential of this municipal open space come alive - while ensuring the resources and partnership is well coordinated. Next Steps 7 Based on the terms of the lease and staff assessment of the metrics, staff have determined continuation for the full 20-year term. As per the lease staff will write a letter to the Friends before October 31, 2025, confirming that the lease will continue for the Friends to operate the golf park another 20 years. The City and Friends will discuss the process to initiate a City led master planning process. The City and Friends will continue to follow the existing lease agreement. Appreciation The City of Port Townsend staff expresses appreciation and gratitude to the Friends for their hard work to transform the golf course into an inclusive multiple use municipal golf park. This journey together has been challenging and rewarding, and City staff looks forward to another 20 years of successfully working together in partnership to best serve our residents and visitors. ATTACHMENTS: • Friends of the Port Townsend Golf Park Business Plan • Signed Lease CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: No action ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑x Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Business and Capital Introduction This Business and Capital Investment Plan (Plan) builds on the century -old heritage of the Port Townsend Municipal Golf Park (now branded as Camas Prairie Park), with a recent change to nonprofit management and stewardship by the Friends of the Port Townsend Golf Park. The Plan weaves together historical context, market insights, operational tactics, and investment priorities --ensuring the plan is both richly detailed and action -oriented over the next 5 years and lays out a 20-year blueprint for future growth and development. Executive Summary Port Townsend Golf Park has stood on its original 1904 site for more than 120 years, earning recognition as Washington's oldest continuously operating golf course on its original site. On October 24, 2023, Friends of Port Townsend Golf Park formed as a nonprofit to enter into a 22- year municipal lease, assuming management on January 1, 2024. This Plan articulates how Friends of Port Townsend Golf Park will steward a historic public asset into a vibrant, sustainable community and ecological hub for the next 20-years. It combines detailed operational strategies, market insights, financial projections, and capital investment priorities with a narrative that connects Port Townsend's rich golfing and cultural heritage to its future as Camas Prairie Park. Our mission is to preserve (and steward) this 58-acre open space, offer affordable golf and multi- use recreation, increase public access, achieve environmental sustainability, and ensure long- term financial sustainability. To accomplish this mission, over our first 18 months, we • Invested in course improvements, • Launched new programs, 2 • Significantly increased public access opportunities. • Expanded native prairie and natural areas. • Increased rounds of golf played by nearly 25%, driving revenue up by 35%. • Cultivated driving range use and saw revenue increase by 27%. • Established an 18-basket disc golf course • Increased youth and family activities and programs The financial section of the Plan (Section 8) summarizes our detailed 5-year financial analysis which projects that Friends will reach a `break even' point in revenue versus operating expenses within 3 to 4 years, assuming a base level of donation support. The growth we have experienced in just our first 18 months of operation, along with our review of golf industry trends and market conditions in chapter 5, supports our conclusion that we are a `financially sustainable' operation. The Key Performance Indicators (KPIs) - established and described in Section 8 - are how we will track our progress toward our goal of financial sustainability. With our large corps of volunteers, our extensive donor support base, and our widening national connections in the industry, we are confident that we will create a destination facility and will be financially successful, while at the same time increasing public access and programs and environmental stewardship. Notably, our financial projections are based on the financial reality that we have come to better understand in the last 18 months: the golf course must remain `a competitive 9-hole course' in order for us to reach the revenue necessary to sustain our operations and to achieve financial sustainability. In other words, we cannot lose holes 5 and 6. This assessment, and the due diligence and consultation with golf course experts that have led to us reaching this conclusion, are summarized in this plan. Additionally, in conducting our due diligence, Friends reviewed and analyzed the deed restrictions associated with golf park properties, that included a legal opinion we obtained from legal counsel. As further described within this Plan, the findings are that the majority of golf park properties along Blaine Street are also deed restricted "for municipal purposes only," which in 1927 did not include housing. The inclusion in the Lease to allow housing creates a significant roadblock to further development and operation of the golf park, and as further explained in this Plan, it is requested that this provision be removed from the Lease. 3 A Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis embedded in this Plan (See Section 9) highlights internal and external factors affecting park success. The Plan lays out a five-year direction to grow golf rounds by 10-15% annually, diversify non -golf offerings, and secure critical private philanthropic support. It also outlines goals and capital plans spanning the next two decades, restoring infrastructure, developing new amenities, and pioneering ecological stewardship. Importantly, per Section 2 of our lease, the submission of this Plan to Staff and the attached 2-year metric summary in Appendix E, provides documentation that Friends have accomplished our initial two-year lease metrics and can achieve financial sustainability, which culminates in a lease extension in late 2025 and setting in motion a robust, future 20-year collaborative partnership with the City of Port Townsend. As a further highlight, Friends is building a close relationship with the National Links Trust of Washington D.C. The NLT is a like-minded non-profit overseeing the operation of 3 golf courses for the National Park Service with similar goals of broader public access and environmental protection. Their mission includes leveraging what they have learned in their DC operations to help guide the efforts of other municipal golf courses across the country. In August we hosted a golf course designer and Founder of the National Links Trust who will be preparing a master plan for our Golf Park and continue to explore partnership strategies. Finally, and significantly, Friends recently received confirmation from the IRS of the approval of our application as a 501(C)(3) tax-exempt non-profit charity, which means donations to Friends qualify as tax deductible charitable contributions (see page 10 for details), as well as contributions from donor retirement accounts. Also, Friends can now receive grants from foundations that contribute to charitable organizations. Friends qualify as a charitable organization for the IRS under the following purposes that were stated in our application: 1. For lessening of the burdens of government. 2. Youth Sports 3. Sports Education 4. Public Parks Support 5. The Prairie Reserve protection and enhancement Building on our momentum, in late July we received a $250,000 grant from a major philanthropic organization to design and construct a natural putt -putt (miniature) golf course, targeted to serve youth and families. 0 Table of Contents 1. Historical Legacy and Cultural Context p.5 2. Recent Background and Planning Context p.7 3. Nonprofit Organization Overview p.8 4. Our First 18 Months of Operation — What We Have Accomplished and What We Have Learned p.12 5. Golf Industry Trends and External Influences p.22 6. Marketing Strategy for Camas Prairie Park p.27 7. Operational Plan p•32 8. Financial Plan p.35 9. Capital Investment Plan (CIP) p.40 10. Metrics p.46 11. Conclusions p•47 12. Appendices p.49 6.", 1. Historic Legacy and Cultural Context While golf has existed at the present site since 1904, the Port Townsend Golf Club was formally established in 1927 and the course constructed in its current configuration. The course at 1948 Blaine St. has welcomed generations of golfers to its 9-hole layout providing sweeping views of the Olympic Mountains. The property's pastoral fairways sit within one of the last coastal prairie remnants the Kali Tai Prairie Reserve — whose camas bulbs once provided food and habitat for local tribes. The western edge of the property served as part of the portage route used by the indigenous cultures. Camas Prairie Park's land carries millennia of Indigenous stewardship, once managed for camas bulb cultivation. Port Townsend Golf Park traces its origins to 1904, when a group of local golf enthusiasts led by Clarence Ide crafted an informal course on the vacant lands along San Juan Avenue, sparking a tradition that endures today. A portion of the current Golf Park property boundary was deeded to the City by the Hastings Company in 1906. The majority of the property that comprises the Golf Park was deeded to the City in 1927 in land transactions organized by George Welch and other community members, specifically for the construction of a golf course. Mr. Welch served as the first president of the newly formed Port Townsend Golf Club course. The first golf course lease was signed with the Port Townsend Golf Club on June 27, 1927, embedding both civic purpose and recognition of limited municipal resources. The original lease clarified the `municipal purpose' restriction listed on the deed: "Whereas the City, has acquired title to the real property hereinafter described, for golf links, athletic, recreation, aviation and other like municipal uses and purposes." The original 1927 lease also established the reality that the City did not have the resources to operate the course, and that the Port Townsend Golf Club would raise the funds to do so and would welcome the general public to the course. To quote from the lease: "Whereas, the City is unable to raise by taxation, or by other methods, sufficient money, to commence the development and improvement of such lands within any reasonable 0 definite time in the future so that the same may or could be put in a condition, as to be used by the citizens of said city and its visitors for any of the purposes for which such lands have been acquired by the City," Thus began a continuous, nearly 100-year tradition of community golf and partnership with the City on this property. Initially privately operated from 1904, it became a public facility in 1927 with the new lease arrangement and city ownership of the land; the 1927 lease states that the course is "to be used by the citizens of said city and its visitors." The Port Townsend Municipal Golf Course offers players a classic 9-hole golf experience. Originally a links style course — open with few trees separating fairways -it has been marked by Lombardy poplars lining the fairways since 1932. Numerous trees were planted in the 1980's to define and separate the fairways. This tree planting changed the course from its link's origins, but at the same time added new challenges in playing the course. The course can be played as an 18-hole course by re -looping the 9-holes using a second set of tees on each hole, serving as an attraction for golfers seeking either a 9-hole or 18-hole experience. In 1967, the Elks Lodge attempted to acquire part of the property, but a 4-3 City Council vote kept the land in public hands, demonstrating early community commitment to preserving the course. The park's rebranding by the Friends to Camas Prairie Park in 2024 reflects its dual role as a recreation facility and steward of the land, including the Kali Tai Prairie Reserve, one of the last remnants of coastal camas prairie that sustained indigenous tribes. VI 2. Recent Background and Manning Context The golf course condition and its operations were assessed in recent history by Southwick Associates in 2004. Mr. Southwick's extensive report inventoried the condition of the facilities, mapped the property deeds within the course boundary, outlined its potential, and identified clubhouse redesign and other modifications that would improve its financial success. At that time the golf park was operating under a lease with Mike Early. In response to declining physical condition and limited market support, the National Golf Foundation (NGF) was retained by the City to assess the current condition of its municipal golf course. The NGF estimated in 2019 that $935,000 to $1.2M in capital improvements would be needed to modernize irrigation, clubhouse, and course amenities, a recommendation the City deferred due to budget constraints. Instead, in 2020 the Council pursued a two -pronged strategy: issuing an RFP for three-year golf operations while exploring alternative uses, a process that included extensive community engagement through PROS Plan surveys and stakeholder meetings from October 2020 to September 2022. The "Envision Port Townsend Golf Course and Mountain View Commons" framework was launched in June 2022, which was guided by a 20 some -member volunteer stakeholder committee and the PROS Advisory Board. After 12 stakeholder meetings and multiple public events, feedback coalesced around three options: continue golf with park enhancements, convert to a central park, or adopt a hybrid model combining golf elements with new recreational and ecological features. In September 2023, the City Council directed the development of a modified hybrid concept, which included nonprofit operational proposals led by the Friends of Port Townsend Golf Park, culminating in a Council authorization of the lease with Friends on December 15, 2023. 765 . M 3. Nonprofit Organization Overview Friends of Port Townsend Golf Park Facing deferred maintenance and waning use at the Golf Park, dedicated local community leaders formed Friends of Port Townsend Golf Park, which was incorporated as a Washington non-profit on October 24, 2023. Their goal: combine historic course preservation with expanded public amenities and public access and environmental stewardship. Following City Council approval on December 11 and lease signing on December 15, Friends launched operations January 1, 2024. Subsequently, in its first year of operation, the Friends reenvisioned a new brand of the municipal golf park as a golf course within a park. From this, the Friends branded the Golf Park as the Camas Prairie Park and the Camas Prairie Golf Course at Camas Prairie Park. With this branding, the nonprofit united golfing and other outdoor recreation, environmental protection, and community gathering under one mission. Mission Statement The Friends of Port Townsend Golf Park seek to develop, manage, and operate a comprehensive public Golf Park that: • Provides affordable, inclusive golf and recreation for all ages • Serves as a vibrant gathering place, integrating trails, events, and cultural programming • Upholds environmental stewardship, protecting and expanding the Kah Tai Prairie Preserve and local native plant and wildlife habitats • Achieves financial sustainability through user fees, philanthropy, and partnerships, thereby reducing the City's fiscal burden for maintaining the property. Guiding Principles To achieve this mission, the following guiding principles were established: • To ensure the Golf Park will be financially self-sustaining. • To prioritize ongoing protection and expansion of the Kali Tai Prairie Reserve ("camas prairie") and enhancement of other native habitat areas. • To transition grounds maintenance to the use of sustainable turf management methods. • To continue the tradition of affordable and accessible golf for the public • To provide affordable activities for youth, families and non -golfers. • To expand community access, wayfinding, and pedestrian trail connections through the Golf Park. • To implement technological conservation enhancements such as electric vehicles, solar power and solar lighting • To increase tourist and visitor use by partnering with visitor promotion organizations. • To incorporate education, heritage, and cultural opportunities. • To collaborate with the City to incorporate new community activities and uses. 0 Vision The vision that Friends hold is to: • operate a premier, historic 9-hole municipal golf course; • be a provider of broader outdoor recreational opportunities for families in the community; • be a welcoming community gathering space; • and be caretakers and stewards of the land to preserve the critical habitats of this 58-acre open space. To achieve this vision, our 5-to-10-year strategic objectives include: • Within 5 years we envision that the golf course will be more fully upgraded (tees, greens, fairways, bunkers, turf management) so that residents and visitors alike will be drawn to this historic, competitive 9-hole course and that many residents will join the ranks of new golfers that will take up the sport. • Within 5 years, with further improvements and enhancements, the course will draw out- of-town visitors from across the country who will seek it out for its unique layout and playability, historic character, and its competitive rates • We envision continuing active and supportive youth camps and women's programming • Within 2 to 4 years, we envision that a new `natural design' mini golf will be providing families with a new recreational enjoyment. • Within 2 years we envision that disc golf and other similar activities, while already functioning well, will be more fully integrated. • Within 2 to 5 years, depending on grant or donation funding, we envision that at least one golf simulator and other technology will be added to the driving range. • Within 10 years, depending on grant or donation funding, we envision that a covered driving range will be constructed with modern electronic simulators, tracking and feedback systems • Within 3 to 5 years, we envision that the restaurant and clubhouse will be a hub of community gatherings for regular socializing as well as for special events and community organizations. • Within 5 years we envision that a walking trail will encircle the park and connect north/south to the City's extensive trails system, in addition to the new east/west connection • Within 10 years we envision that environmental, historical, and Tribal education facilities and features will be developed and integrated, with special programming added that highlights the history and ecology of Camas Prairie Park. 10 Key responsibilities of Friends Friends' principal activities include: • Lease management and operations of golf course, driving range, and clubhouse • Programming, marketing, and membership services • Capital maintenance and ecologically sensitive improvements • Community outreach and partnerships for inclusive recreational offerings • Stewardship of Kali Tai Prairie and natural areas Organizational Structure An independent nine -member Board of Directors, including golf and disc enthusiasts, community leaders, business experts, and environmental stewards, provides strategic oversight of all Camas Prairie Park operations and activities. Day-to-day operations are managed by the executive committee of the board, who work with the general manager and course superintendent who are then supported by staff and volunteers in golf operations, marketing, nonprofit development, and ecological management. A committee structure has been developed that reports to the executive committee and to the board and consists of fundraising and marketing, finance, events and all things golf, volunteer coordination, LTAC coordination, and environmental stewardship. The organization and staff are supported by an active corps of volunteers: hospitality, grounds maintenance, marketing, fund raising, technology integration and many more areas of unique experience and specialty (See Appendix A) As the park marked its 120th anniversary on May 4, 2024, Friends hosted a Birthday and Opening Day celebration that drew over 600 people in rainy weather to see the unveiling of the new name and logo for the golf course —Camas Prairie Golf Park. The Golf Park bridges past and present - offering a living connection to the town's golf architecture and a testament to the community's resolve in preserving its open space and park area. Non -Profit Tax -Exempt Status Friends very recently received notice from the IRS that our application for 501(C)(3) tax-exempt status was approved (Approval Date: June 30, 2025). Significantly, donations to the Friends are now tax deductible for the contributor (and retroactive to our formation on October 18, 2023) and donations from retirement accounts are also eligible for contributions. In addition, significant new funding sources are now available to Friends such as grants from charitable foundations and IRA rollovers. Friends qualified as a charitable organization under the 501(C)(3) rules for the charitable purposes of: 1. Lessening of the burdens of government. To qualify: a. an organization's activities must be activities that a governmental unit considers to be its burdens, and b. the activities of the organization must lessen such governmental burdens. 2. Youth Sports - the organization is formed to teach children a specific sport. 11 3. Education -is organized and operated to teach a particular sport to children by holding clinics conducted by qualified instructors in schools, playgrounds, and parks, and by providing free instruction, equipment, and facilities 4. Public Parks - a nonprofit organization formed to help preserve, beautify, and maintain a public park located in the City and whose support is derived from membership dues and contributions from the general public 5. The Prairie Reserve, currently protected land by easement, will be maintained, enhanced and expanded. Further, the land is ecologically significant, undeveloped, and public access will be provided on walking trails and through limited engagement within protected areas As described later in this Plan (See page 15 Non -Profit Operations and Tax -Exempt Status), Friends is one of the very few non-profit organizations that operate a municipal golf course. 12 4. OJ ur First 18 Months of Operation —what We have Accomplished and What We Have Learned Financial Performance In the first half of 2025 versus the same period in 2024, rounds played increased by nearly 25%, golf -rounds revenue rose by 33%, and total top -line revenue grew by 30%. These financial gains directly correlate with targeted investments in course improvements, staffmg, and guest experience. Programmatic and Recreational Expansion In our first 18 months, in addition to our course improvements, we focused on new programs: Introduced disc golf and further completed an 18-basket Disc Golf course within our 9- 11 golf Launched youth golf initiatives for Sundays at the park at the driving range, engaging a new generation of players 13 Held youth golf summer camps • Hosted the high school golf team • Held evening women's golf clinics • Secured funding to design and build a mini -golf course, further diversifying active outdoor recreation • Constructed the East-West Trail through the Golf Park for recreational use • Began and continued "First Sundays in the Park" that have offered recreational activities such as Corn Hole, Croquet, youth recreational activities, and fun mini golf games • The Disc Golf community has provided instructional sessions for young and old on how to play and improve at Disc Golf Skilled golfers provide golf instruction to beginners as well as more experienced golfers 14 • Other non -profits and businesses have included fun runs, golf tournaments, and Disc Golf tournaments Community Engagement and Outreach Our commitment to increase community connection to the park is evidenced by: "First Sunday" events welcomed over 3,000 visitors in 2024, giving the community Logged more than 12,000 volunteer hours in Year 1, reflecting deep local enthusiasm and ownership Attracted nearly 200 private donors contributing $250,000 to support ongoing operations outside of capital campaigns Created a website, social media announcements, sent out Newsletters, and created an email list to provide specific announcements to those on our email list 15 Sponsored the Rhody Parade Float unveiling as the culmination of a fund-raising golf tournament Community Access We have worked to change the culture at the golf park from one that discourages non -golfers to one that welcomes them to enjoy their 58-acre park. It is not easy to change a culture and mindset, but we are firm in our commitment to do so. • Trails are being established to make connections through the park, and the East-West Trail was just recently made available to users • Visitors are frequently seen walking the cicmohan trail and visiting the cicmohan statue and gatay prairie • Visitors relax in the areas outside the restaurant and enjoy the sweeping views. • Walkers walk the course with a careful eye on the coexisting recreational activities • The new restaurant and dining area have been completed, and a new food and beverage service is up and going, and patrons are coming and using our new facilities • A local corn hole group has used our facilities as a competitive opportunity • A local theater group is using our facilities for an improv session • First Sundays opening of the Park have significantly increased community access • YMCA, Swan School, Salish Coast elementary golf and disc golf sessions have been held for children Ecological Stewardship Our land stewardship model has been initiated with: • Expanded native prairie and naturalized areas, while also designating significant turf to be un-mowed occasionally mowed for managed naturalized areas • Demonstrated a coexistence between a competitive golf course and prairie restoration, reinforcing our ecological mission • Chemical usage is minimal, and our Superintendent has obtained his applicators license • Working with the City, many chemicals left over from the last operator were removed and appropriately disposed of • Created an Environmental Stewardship Committee including a wide variety of interests and expertise to advise the Friends on environmental decisions and concerns (Trees, chemical usage, turf management, wildlife, and other natural functions of Golf Park • A High School Student working with the Rainshadow Bird Alliance built and installed bird houses along the 16 pond to encourage native bird nesting for her senior project A current UW intern is preparing a Cap Stone report and recommendations on environmentally sustainable golf course management practices for our use Operational Capacity and Infrastructure Friends have invested in our future: Hired grounds maintenance staff and invested nearly $100,000 in grounds and building improvements and equipment to ensure professional maintenance and volunteer coordination, significantly improving the course conditions Fully remodeled the on -site restaurant into a welcoming community center RIEWININNUMONEW Rebranded as Camas Prairie Park with guidance from a nationally recognized consultant to reflect the site's unique historical and ecological character Strategic Partnerships and Expertise Many local, as well as national, strategic partnerships have been explored and developed, which provide many opportunities for the Friends to gain insights and information on operations, programs, and successes of others in the field, and for us to coordinate and work cooperatively with many other local non -profits, organizations, agencies, and businesses Coordinated with the caretakers of the Kali Tai Prairie Reserve (Washington Native Plant Society) and local native plant society, including first Sunday tours 17 • Coordinate with the Native Connections Work Group and Rainshadow Bird Alliance, including coordinating the installation of birdhouses adjacent to Hastings Pond as a High School Student's senior project • Coordinated with our two local School Districts offering free use of the Golf Park for High School Golf team (In 2025 12 boys and 9 girls, one girl who went to State. Note, HS Golf Team members not only use the course for free, but use range balls for free and can play for free all season long at not team times) and Cross -Country team • Tours with the YMCA and local schools • Established contacts with the Rotary, Tuesday Morning Club, Saltfire Theater Group • Applied for and received LTAC grant funds to promote tourist visitation and usage of the Golf Park, including Stay and Play opportunities through local tourist accommodations • Cemented a partnership with National Links Trust, sharing best practices in historic golf course restoration under nonprofit management • Engaged a University of Washington student intern to research and implement environmentally sustainable maintenance practices for her Capstone project • Collaborated with internationally recognized golf course designers to refine our operations and course layout plan • Created opportunities for people in our community with Intellectual Developmental Disabilities — such as volunteer community supported driving range ball pick up, job training interns, and golf learning opportunities • Worked with numerous other Golf Courses within the Region for advice, expertise, assistance, purchase of used equipment, and communication of shared concerns and approaches of operations Year -Over -Year Performance (Jan —,dune 2024 vs. 2025) Our year -over -year performance from the first half of 2024 to the first half of 2025 brings us a sense of optimism that our efforts are paying off and that financial sustainability is an achievable goal. By the numbers: Metric Jan —Tun 2024 Jan —Jun 2025 % Change Annual passes sold 34 58 +70% Rounds by annual -pass holders (9-hole eq.) 1,259 1,597 +27% Rounds by annual -pass holders (18 holes) 406 385 —5% Daily greens -fee rounds (9-hole) 1,705 2,206 +30% Daily greens -fee rounds (18-hole) 183 195 +7% Total rounds 3,553 4383 +24% Youth rounds (ages 12-18) 165 Disc golf rounds 100 400 +300% Revenue Annual pass sales $40,000 $58,000 +45% Greens -fee revenue (incl punch cards) $35,000 $44,000 +27% M.* Metric Disc golf revenue Driving range income Electric cart rentals Total Golf Revenue Jan —Jun 2024 Jan —Jun 2025 % Change $0 $1,700 $11,000 $14,000 $5,000 $10,000 $91,000 $127,700 Total Revenue 125,000 162,000 Gross Profit (before expenses and after COGS) 104,000 147,000 +27% +100% +40% +30% +42% (Golf revenue does not include pro shop or Food and Beverage sales, Data on youth and disc golf rounds reflects our tracking of broadened offerings) Non -Profit Operations and Our Tax -Exempt Status Nationally there are approximately 3000 publicly owned golf courses (less than 20% of all golf courses). Of these publicly owned golf courses, only a rare few -- perhaps half dozen to our knowledge -- are operated directly by a non-profit corporation. The Friends' undertaking -- as reflected in our Articles of Incorporation and Mission -- is therefore highly unique in. golf course management. Our tax-exempt non-profit status allows Friends to receive tax-deductible charitable donations and thus, significantly reduce the City's financial burden of maintaining the park. Our 501(C)(3) non-profit also allows charitable foundations to donate to Friends (a huge funding opportunity for us) and for IRA pass-throughs, as well as other tax benefits for some donors. We are now uniquely set up to provide affordable and accessible golf to all, as well as other attractions and forms of recreation for non -golfers. Most golf courses are operated by the government entity itself, or by a golf course management firm under contract to the public agency. Friends is a unique operation as a 501(C)(3) tax exempt non-profit golf park operator. We are excited as well with our newly developed partnership with the National Links Trust in Washington D.C., who has a similar and broader mission of restoring historic golf courses through non-profit enterprises and, in addition, to opening these parks for the broader benefit of the communities they serve. National Links Trust: Recently, Friends established a critical partnership that promises to strengthen our organization's ability to attract donations, provide cost-effective design N 1r11 A- improvements and continue the local legacy of public golf. National Links Trust, a 501(C)(3) non-profit, advocates for municipal golf in the U.S. and operates three golf courses for the National Park Service, including Rock Creek Park in Washington DC. The founders of this Trust are designers from nationally recognized golf course design firms. They have designed improvements and new putting courses for the DC courses. And they have agreed to assist the Friends in our operations and in the design of a mini golf course as well as to prepare a Master Use Plan to guide our future (See Chapter 9). Impacts of the City's Blaine Street 1-lousing Proposal 19 To address the lease requirement in Section I Oa Housing, Friends engaged von Hegge, Smelek & Baril (VHSB) as independent consultants to evaluate two scenarios: Relocating holes 5 and 6 onto the driving -range footprint thus eliminating the driving range entirely Reducing the course to an executive or par-3 layout VHSB's report concluded that neither option could preserve a commercially viable, standard - length `competitive' nine -hole course within the 58-acre site. It also concluded that reducing the course below a full-length nine -hole layout would have a severe financial impact and would: Slash revenue by at least 35%, according to our projections, while expenses (staff, utilities, maintenance) remain fixed Undermine our ability to achieve the 18,000 nine -hole rounds per year needed for break- even performance. Result in loss of the driving range that provides 10 to 12% of current golf revenue, (and the potential for significant future increases with driving range enhancements). The driving range plays a critical role in: • Growing the game —introducing youth and adult beginners to golf fundamentals • Generating energy —creating a social and family -friendly gathering spot that spills over into on -course play ■ Growing our revenue — providing opportunities to significantly increase revenue from the range Supporting events —serving as a flexible venue for concerts, community fundraisers, and "First Sunday" activities In addition, the City's own consultant David Hein in his Reported dated May 24, 2023, (A Report commissioned by the City during the City's visioning process), underscores this point: ".... If the golf course is to remain in any form that would provide the city with a revenue stream, it would need to continue as a 9-hole golf course. Reduction to an executive or par-3 golf course would dramatically limit the revenue potential needed to cover the basic costs of the city." Based on both the David Hein and VHSB reports, Friends have determined that a full-length, competitive nine -hole course must be preserved to sustain financial viability. Furthermore, driving -range operations are indispensable to our revenue model and mission of growing the game, youth programs, and access for all. Covered range and technology enhancements are a growing market trend in the US and will significantly increase the number of users and revenue from the driving range in the future. Accordingly, our studies conclude that housing plans for the Blaine Street parcel would have to be designed outside the core golf footprint —retaining the existing course configuration and range — in order for us to maintain a financially -viable, competitive 9-hole golf course. �7 The Friends' own first-hand experience in its first phase (I8-months)of operation confirms the VHSB and David Hein conclusion. The `market trends described in Chapter 5 further accentuate how critically important it is to preserve this current layout to meet the needs and demands of the golfing community and attract golfers to play this historic course. Analysis of the deeds on the Leased Golf Park Property In the Fall of 2023, Friends were actively engaged in developing our proposal to the City to operate the Golf Park, reviewing and negotiating the lease, developing our non-profit charter, assembling a Board and other critical activities. Before January 1, 2024, Friends needed to hire staff, purchase equipment, restaurant appliances, and a point -of -sale system, set up a pricing sheet, and be prepared to open our doors on January V. With such limited time Friends did not have the time nor the expertise to consider all of the ramifications that meant that the City included the ability to establish housing on the southernmost Golf Park parcel. And it was indicated that housing would be 8 to 10 years into the future. Nor did we undertake a background review of the underlying deeds. Since that time and in order for the Friends to consider whether a `competitive 9-Hole Golf Course could exist in losing hole #5 and likely Hole #6, in addition to consulting professional golf course designers described above, Friends obtained deed and lease documents for the property under lease. Friends reviewed and analyzed the deeds and early lease history from when the deeds were transferred to the City in 1927 and subsequently hired an attorney to provide us with a legal opinion on the validity of these deeds and whether housing is a 'municipal purpose' on the southern -most parcel of the Golf Park. The Friends have provided our research and legal opinion to the City. The legal opinion and information we researched indicates there is a deed restriction on most of the lots in the Estate Addition blocks along Blaine Street, and it is the same restriction that applies to the large parcel Tax 63. Most of the lots in the blocks along Blaine Street were transferred to the City in the same deed as Tax 63 (deed 2211) and the restriction on the deed applies to all of these lots as well, that being, ".... all the foregoing property is deeded for municipal purposes only." (See page 5 for a detailed description of the beginnings of the golf course and the concurrent deed transfers) In 1927, at the time when the deeds were transferred to the City, municipal purposes were stated in the first lease with the Port Townsend Golf Club as "for golf links, athletic, recreation, aviation and other like municipal uses and purposes." Further, the first Lease in 1927 for operating the Golf Course included language that the City did not have the financial resources to operate the golf course and that the golf course Lease was for ".... The necessary purpose of developing and improving the same for a municipal golf course and links thereon." The legal opinion we obtained confirms that a large part (25 of 32 lots) of the parcel along Blaine Street that is referenced in Section 1 of our lease as 949818301 is also restricted "to municipal purposes only" and that housing would not have been considered a municipal purpose at the time of the deed transfer in 1927. 21 Key Insights and Takeaways from the First 18 Months The following are some of the key learnings and insights from our first 18 months of operation that guide the development of the financial projections and marketing strategies that are outlined in this Plan. • Maintaining a competitive 9-hole golf course — the course as currently configured — is essential for revenue generation to reach a goal of financial sustainability • A hybrid model —combining current core golf operations with diversified outdoor recreation —drives both financial stability and broader community appeal • Private donations are essential to underwrite day-to-day operations for the next 3 — 4 years and for future major equipment purchases and capital improvements, • Our own 501(C)(3) tax-exempt status and our partnership with National Links Trust cements the opportunity for sustained philanthropic support, which in the future can be more directed to programming that can continue to serve a broader community of interests 22 5. Golf Industry Trends and External Influences To assist in evaluating financial viability, developing a marketing plan and preparing a 5-year financial projection, we completed research into current market trends. The following are key findings of note that feed our optimism for the future of Camas Prairie Park and guide our marketing focus: • More and more golfers are playing 9-holes versus 18 holes • Participation in the game of golf is growing, particularly with women and minorities • Golfers can now post scores from 9-hole rounds to receive a handicap (GHIN) rating • More and more recreational golfers are choosing to post scores and obtain a handicap • Historic course from the 1880's through 1920's — the golden Era — have a special attraction for golfers — a marketing opportunity for Port Townsend • The USGA and the golf industry are addressing the need for golf courses to be more accessible and fun and environmentally sustainable • Golfing is becoming more popular, especially after Covid, for young people. Emerging Industry Trends Recent information gleaned from the United States Golf Association (USGA) 2024 Annual Report (available online at USGA website: Qoll.Jo wl,a L)$QA includes: • "Unprecedented interest in golf across all demographic groups has driven several key metrics to historic highs accelerating the momentum the game has enjoyed..." (page 4) • A record 14.1 million 9-hole scores were posted for handicaps, a 40% increase over 2020 (page 9) (This matches the trend Friends have see our own data for past 18 months) • 95% of postings for handicap are recreational golfers, dispelling the myth that a handicap index is only for high level competitors. (page 9) • There has been a 57% increase in golf participants on and off the course in the 10 years since 2014. (page 5) In an interview with Sports Business Journal on April 8, 2024, Mike Whan, CEO of the USGA discussed the growth in golf and the growth in diversity of golfers: "The game of golf is 40% bigger than it was five years ago. We've added 13 million more participants... The juniors are up 36%, females are up 25%, nonwhites are up 27%. That's pretty amazing." 23 In a May 29, 2024, interview on the Golf Channel at the 2024 U.S. Women's Open, Mike Whan reported on what he described as an "explosion" in golf participation and in participation by women. To quote from the interview w "The explosion in participation in golf in the last 10 years is higher than any other sport" "And 60% of that increase is being driven by women." "When 100 new people tee it up (ref those who play for the first time), 42 of them are women" e "1000 new girls high school golf teams added in the last 10 years. There are almost as many girl's golf programs as there are girl's soccer programs." In his March 4, presentation on the Future of Golf, the President of the USGA reported: Diversity Gains: Youth, women, and golfers of color saw a more than 40 percent growth since 2019, with women accounting for 60 percent of that growth Financial Health: With the increase in golfers coming to the game, golf courses have experienced better financial footing. o Only 4 percent of public courses report poor financial health, much improved from 25 percent reporting poor financial health in 2014. 0 70% percent of public courses now say they are in good or excellent financial health, well up from only 23 percent 10 years ago. Well -Being and Lifestyle Drivers Golf s appeal increasingly rests on mental and social benefits — especially among younger players seeking wellness and connections. Lightspeed, a golf course point of sale provider, reports on the following trends in younger golfers (as reported by Golf Business Technology February 10, 2025 Now E ra..Q f.Goit Shaping., h ping..11.� Next Q r� r�,,q.f ,ci of �f .r :.1 i ��_1_ pe. _ r..Sbo _.I Q �f' �a.sines 1 ���� 1) M 51 percent of Gen Z cite mental health as their primary reason for playing golf Solo golf rounds are on the rise as a personal refuge and stress relief Flexible membership and pass options resonate with Millennials and Gen Z as cost- effective value drivers Value is at the front of decision -making for younger golfers Facilities that emphasize their natural beauty and setting and foster a sense of community with unique events and experiences position themselves as local destinations for more than just a place to play golf 24 Municipal Golf Course Challenges and Opportunities Even though a small percentage of municipal golf courses currently report financial hardship, the financial pressures remain — particularly in small market size like Jefferson County — to provide crucial affordable recreation. Rising costs for water, labor, turf management, and equipment strain already tight local government budgets. Many cities debate whether subsidizing underperforming public facilities remains defensible amid broader fiscal shortfalls. Of note, the National Golf Foundation (ngf.org) reported on March 28, 2024: • There has been a net gain of 5% since 2006 in the number of municipal courses in operation, while the number of private courses has dropped in the same time -period. At that time of reporting, 2939 municipal courses were in operation, representing 18% of all golf courses. • "Close to 75% of all public -agency golf courses collect enough revenue to cover on -site labor and maintenance expenses" and "almost three-quarters of municipal facilities indicate they are in `good' or `excellent' health, a proportion that's up in recent years." • Making a profit isn't necessarily the primary motivation. In many situations a course is subsidized just like public parks, the county pool, local senior center, tennis complex or basketball facilities Municipal golf facilities "are often where golfers play for the first time and where golf is most affordable and accessible." Chances are you'll find a customer base that looks like a divers cross section of local residents of all ages. The Friends business model with our non-profit, tax- exempt status, our large core of volunteers and our widespread community support therefore offers a unique opportunity for success with an historic community course, where others struggle. Private Funding and Nonprofit Interventions Adam Schupak, in an article in "Links Magazine" titled The Future of Municipal Golf (available online), states that municipal golf is the lifeblood of the industry. They are an oasis of open space. To that end, a grassroots movement has emerged to rescue historic municipal courses through private philanthropy and nonprofit partnerships. Some of golf s most respected architects have offered pro-bono renovation support, signaling broad industry commitment to public -sector courses. National Links Trust advocates for golf affordability and accessibility to all. (An association has been established with Friends and the NLT board of golf course designers). • Some of the game's most prominent architects (s (Ben Crenshaw, Gil Hanse, Tom Doak, Tiger Woods) have agreed to waive or reduce their fees to help restore classic municipal course architecture. • Public -private collaborations are saving courses from neglect and reinforcing municipal golf s role as community open space. 25 National case studies on the restoration of municipal courses include: Bethpage State Park (NY); Harding Park (CA); Jackson Park (Chicago); and Weequahic Park (Newark, NJ) and Winter Park (Florida). In his article, Mr. Schupak further quotes Ed Brockner, executive director of First Tee (a national organization "empowering kids and teens through the game of golf') based on their participation in renovation of a public course in Newark: « While the facility has undergone some restoration work, the investment in maintenance infrastructure has been the most important thing. ...irrigation and drainage are what allow courses to produce quality conditions, use less resources, and open up more quickly after a storm. This allows these courses to be financially sustainable while maintaining affordability" "As urban space becomes more scarce, these mums prove their value. Combined with education/community programs like the First Tee and historic preservation/improvement efforts, munis can make this case as being an important, inclusive open space to all" Classic Historic ;Municipal Golf Courses are a Unique Market Draw The Port Townsend Golf Course has a marketable niche in the golf world in that golfers travel to play the classic courses from the late 1880's and early 1900. The 1920's were a golden era of golf course construction with courses that create historic interest with their classic design, most notably in selecting sites and creating a layout conforming with the natural landscape, before modern earth moving equipment was available to reshape the landscape. There are over 25 courses from that era in Washington State; however, the Port Townsend course stands out as the oldest golf course in the state that is operating on its original site (from 1904) and as a 9-hole course — one of the few public courses from that era and as the only one operated by a non-profit corporation. +w Recently the author of the blog "Fore Stories' traveled to Port Townsend to play our historic course. Mr. Sickles travels from California in his spare time away from his day job to visit a half dozen historic courses a year, mostly on the east coast where there are courses from the late 1800's. With no courses that old in the Northwest, he traveled to our course in July due to its 1904 beginnings and recognition as the oldest course in Washington. He and his partner stayed for two days in hotels, played our course with us and was impressed that the condition of the course was as good as it is. He stated that the Camas Prairie Park was his best tour location so far, largely with the welcoming spirit and sense of volunteerism. Other Trends with Golf Course Facilities :Beyond Just Golf Camas Prairie Park has many other features and future plans that address social and market trends and provide a source of future income: 26 Many golf courses, with their restaurants, banquet space and outdoor areas rent out their facilities to host weddings and other private events, o Our facility with a restaurant upgrade and work on our downstairs meeting space, as well as improvements to the immediate areas outside of the restaurant has a large upside potential to generate significant revenue from hosting events and renting space as well as providing space for our community partnerships o Mini golf courses — which we expect to have operating within a year — rent their facilities for private parties and events In surveys performed for parks and recreation, walking trails always rank near the top of the list of desired features o The Golf Park is providing, and will be providing, more connections to the city's extensive trail system — as well as a destination and rest stop for walking with its expanding restaurant and outdoor community areas. We will be working with our National Links Trust partners through preparation of a Master Plan on improving the ability to walk the surroundings while golf is underway, with the open Scotland courses, the home of golf, as a model. Market size and Market demographics for Golf While Jefferson County, with a population of 34,000 and three golf courses, and the surrounding region with several courses, would at first appear too small of a region to operate a financially successful golf park, there are several factors that argue for renewed interest and financial success for our course, including: • A growing interest in playing a 9-hole course • The fact we are a working person's Golf Course, with the lowest rates around and a welcoming approach for families with working parents • We have discovered a young population (Gen Z, X, ...) exists in the area who are drawn to the flexible rates and possibilities for social connection • Our summer youth golf camps outsell our capacity • Our large corps of volunteers — 1000 plus hours per month — who's hours help support us financially and keep our labor costs down • The additional social amenities that we are adding such as the restaurant, miniature golf putting green, disc golf, events and First Sundays, as well as other opportunities for social connection. 27 Marketing Strategy for Cameras Prairie :Park Market Context: The Rise of Public Golf Public golf in the U.S. is experiencing a remarkable resurgence. Over the past five years, overall participation has increased by 23%, with 9-hole handicap postings up 40% since 2020. This growth isn't limited to traditional demographics —women, youth, and players of color now account for 60% of new entrants. The momentum reflects shifting recreational preferences, demand for inclusive pricing, and interest in shorter, more flexible play formats. These trends match our own data that we have been collecting: total 9-hole rounds of golf played increased by approximately 25% in the first half of 2025 versus 2024, while growth of 18-hole rounds remained flat. Driving range revenue increased 27% over the same January to June period, even with our half-price driving range offer in January and February (These trends indicate that golfers just want to spend an hour on the course, not the 5 hours it takes for 18 holes). And while we have no specific age use data, our observation is that a good percentage of our 25% growth in course usage has been in the 20-to-50-year age bracket, in youth, and in adults bringing children to the course and to the driving range. Against this backdrop, Camas Prairie Park emerges as a model municipal golf facility —blending affordability, ecological stewardship, and community -driven programming within the center of Port Townsend's bustling and growing town of 10,400 people and a growing County of 34,000. Based on the emerging trends, an important focus for our marketing strategy includes: • Lower annual pass rates (18% lower) for those under 45 years old • After -work leagues and social events • Driving range enhancements to accommodate the "one -hour" trip to the course and to encourage family use (Top Golf model) o We observe groups of young adults who come to the range not only to `hit balls" but also to socialize • Expanded youth and youth camp offerings • Weekly clinics in the summer introducing women to golf and creating a supportive social network • Financial assistance to those who cannot access golf due to financial hardship Positioning Camas Prairie: A Municipal Model for the 21St Century Situated a short drive and a 15-minute walk from downtown Port Townsend's shops, galleries, and waterfront, Camas Prairie Park leverages cultural heritage and civic engagement in equal measures. Its historic nine -hole layout invites precise, short -form play and flexible programming --contrasting sharply with the other trend in golf toward destination resorts. In a golf market with a high percentage of courses being private and resort courses, the 3000 municipal golf courses in this country and, more importantly, Camas Prairie Park's mission of m affordability, inclusivity, and land stewardship, presents a compelling alternative and a story of `golf, and so much more'. Regional Landscape & Course Comparison To gauge Camas Prairie Park's positioning, we analyzed private and municipal courses within 50 miles —focusing on those within a 25-mile radius for direct competitive context. Port Townsend's primary strengths are its low 9-hole fee ($24), friendly community spirit and management, and integrated recreation offerings. In addition, the investments we are making in improving the course conditions — particularly our focus on the restoration of the greens for our first two years and our revised, more natural mowing patterns— are drawing golfers from other courses to play at Camas Prairie. Another key competitive advantage is related to the course geology. We recently received a report that the soils throughout much of our course — in addition to the 2-acre camas prairie preserve — are soils that support the growth of the camas bulb. These are well draining soils that do not become saturated with heavy rainfall. Therefore, our course is playable throughout the winter and spring when our closest competitor — Discovery Bay — experiences `soggy' playing conditions that contribute to difficulty in mowing course play areas. Key Differentiator Camas Prairie Park Advantage Ownership & Municipal land: operated by nonprofit with local engagement focus and Stewardship many hours of volunteer support Our community -supported mission inspires our committed maintenance Improvement in staff and volunteers to `go the extra mile' to improve our course course condition conditions Accessibility & Our course is easy to access by car and is a destination with a15-minute Proximity walk to downtown shops, lodging, waterfront, and eateries Restored and expanding prairie, electric carts, new mowing patterns that Ecological Integrity leave natural areas, native plantings, carbon sequestration, reduced chemical usage Multi -Use Amenities Disc golf, mini golf (funded and in planning stage), trails, events, driving range, Historic Significance Washington's oldest original -location 9-hole course Our Prairie Soils Our well -drained soils allow year-round play when other courses have fairways that become too wet to play Camas Prairie now offers improved golf conditions over its competitors. In addition, Camas Prairie does not just offer golf — it offers a value -driven alternative that appeals to evolving recreational and lifestyle needs. 29 Competitive Landscape: Standing Out in a Crowded Field With several golf and disc golf courses within 30 miles, the regional golf market is competitive. However, Camas Prairie commands strategic advantages across pricing, condition of the course, programming, and brand identity. Regional courses that are open to the public and are within 25 miles and a 40-minute drive and that are our main competition are listed below. Also included is Cedars at Dungeness which is 38 miles and nearly an hour's drive: Course Camas Prairie Park Discovery Bay GC Distance from PT 0.5 mi 9 mi Port Ludlow GC 22 mi Cedars at 38 mi Dungeness Rates — Prime Amenities 9(18) hole $24 ($36) Driving range, disc golf, mini golf, events, restaurant $28 ($43) Limited driving range $40 ($80) Lodge, marina, restaurant $39 ($75) Restaurant, pro shop Audience Segmentation: leaching Diverse Visitors Our marketing strategies are being developed to reach a diverse audience:. • New and Returning Golfers: 9-hole rounds and value -driven rates along with the driving range to develop skills and provide for a short golf encounter and social event • Women and Youth: Clinics, junior programs, tailored tee locations • Tech -savvy Gen X/Z: Simulator nights, booking apps, flexible annual passes and rate options • Heritage Golfers: Historical tours, interpretive signage, legacy events, destination • Disc Golfers & Foot Golf Fans: Weekly tournaments, low-cost programming • Families & Walkers: Trails, mini golf, restaurant offerings, events, concerts, family days • Tourists & Corporate Groups: Stay -and -play packages, event hosting • Environmental Enthusiasts: Native restoration exhibits, prairie tours Strategic Marketing & Sales Strategy Our strategies to reach these audiences include: Digital Outreach: Geo-targeted ads, CRM-driven email campaigns, SEO-tuned website updates, weekly Constant Contact newsletters Local Partnerships: Collaborations with hotels, restaurants, LTAC, and visitor bureaus; co -marketing with downtown businesses Event Programming: Flagship tournaments, quarterly charity events, simulator socials, "First Sunday" community mixers 30 Annual Pass/Membership Innovation: Tiered packages, referral bonuses, twilight leagues, discounts for under-45s Venue Activation: Influencer tastings, meeting/event showcases, weddings, and banquets Sales Optimization: Bundled golf -dining packages, early -bird incentives, pro shop demo tie-ins, streamlined booking systems Disc Golf & Multi -Use Integration Disc golf continues to surge, with 18 million off -course participants nationwide in 2023. Camas Prairie hosts 18 baskets and weekly doubles, with the upcoming 2025 disc golf tournaments poised to attract serious attention. With minimal overhead and high usage, disc golf and other multi -use amenities (Foot Golf - In planning stage, Golf, restaurant offerings, concerts, trails) offer vital revenue, visibility and branding opportunities - especially during the off-season when traditional golf play dips. Tourism Integration & Regional Appeal Camas Prairie Park anchors a growing recreational corridor. Our proximity to downtown and natural assets makes us ideal for tourism bundling: • Stay -and -Play Packages with hotels, B&Bs, and inns o We are already reaching visitors who come for overnight stay and to play the oldest course in Washington State • Tour Itineraries combining golf, dining, local history, and waterfront activities • Festival & Event Co -Promotion with LTAC, city staff, local nonprofits, and cultural organizations Strategic Marketing Focus By embracing modern marketing tools, curating high -impact visitor experiences, and doubling down on what makes the Golf Park exceptional, we can grow revenue and reinforce the park's status as a regional destination for recreation, nature, and community events. We will activate multiple channels to drive awareness, participation, and financial sustainability. Core Revenue Objectives that drive marketing focus: Target Area Golf Round Growth Annual Pass Growth Annual Pass Ages 20-45 Clubhouse/F&B Revenue Goal (Next 24 Months) +15% annually 10-15% annually +25% increase +20% YOY increase Tournaments Hosted Expanded charity/corporate events Visitor Rounds from Outside Area 1,000 rounds per year By weaving its historic charm, ecological mission, and inclusive ethos into every aspect of operations, Camas Prairie Park positions itself not only as a public golf course but as a multi -dimensional community asset. In a 31 regional landscape dominated by private and resort -style golf course operations, the Park's stewardship model and pricing strategy resonates with locals, attracts heritage tourists, and garners strong civic support --ensuring resilience and relevance in the 21 st-century recreation market. 32 7. Operational Plan Staffing Structure Based on what we have learned to date, and to stay within our `means' as reflected in our revenue projections, the financial plan outlined in the next chapter allows for a staffing level of 3.25 FTE. (not including food and beverage operations) The following roles comprise the core team responsible for daily operations and long-term maintenance: • General Manager: Oversees park operations, budget, and strategic planning; is staff and advisor to the Friends Board (0.75 FTE) • Pro Shop Manager: Manages retail sales, tee -time bookings, and customer service; coordinates pro -shop volunteers and covers when volunteers are unavailable (0.75 FTE) • Grounds Superintendent: Leads turf care, course setup, and course maintenance priorities (1.0 FTE) • Part -Time Grounds Crew: report to the superintendent and supports mowing, clean up, irrigation checks, and basic maintenance and repairs (0.75 FTE) • Volunteers: 50+ active volunteers contribute over 1,000 hours monthly (including board members) in areas such as turf maintenance, event planning and support, pro -shop staff, marketing and fund raising, software and technology integration, data input and analysis, and administration and staff oversight Maintenance Staff Training and Support An important aspect of golf course grounds maintenance is keeping up with current standards of practice. This starts with information available at the national level from the USGA as a source for emerging trends in sustainable management, but more importantly at the state and local level. Our superintendent has established relationships with superintendents at other courses in the area and with the superintendent's association. Following the current best management practices for golf courses attracts golfers to our course. This is accomplished through: • Membership in the Western Washington Golf Course Superintendents Association • Attending biannual meetings with other superintendents • Mentorship with other experienced superintendents who we can call for questions and support • Training toward golf course superintendent certification • Consultation with our professional golf design consultant from von Hagge, Smelek and Baril Connection with the National Links Trust Equipment Requirements Reliable equipment is essential for maintaining 58 acres of mixed turf, native prairie, and wetlands. In addition to staff costs, a big financial hurdle for Friends is the cost to purchase and maintain equipment to maintain the park land. We have found that purchasing used equipment is 33 cost-effective for our initial entry into operations; however, used equipment requires a higher amount of maintenance, parts, and staff time — taking time from the activities of our maintenance crew. New equipment is a large capital investment. Our large initial round of start-up donations allowed the purchase of an essential core set of used equipment. Long term, more reliable equipment is desirable. Going forward, a capital investment of $50,000 per year is a desirable goal to secure the assets listed below. A well -maintained course using proper equipment is essential to attract golfers to meet our growth projections. Reliable equipment allows us to keep up on maintenance with fewer FTE employee hours. Based on our financial forecast, this equipment must be purchased with donated funds outside of our regular revenue sources and the projected minimum donation levels and break-even operating costs. That is, this equipment is purchased through additional targeted donations or can be added only in the event our future revenue stream and yearly donations exceed our projections. Future equipment needs include these categories: * Equipment to mow the park grounds — Rough and fairway mowers o Including mowers that allow us to properly manage `natural areas' * Greens mowers — o Improvements to the condition of the greens is the primary focus that attracts golfers to play our course. New walking mowers reduce the maintenance costs of our used mowers; riding mowers reduce staff hours to mow greens. The fringe along the greens requires a different mower from the greens themselves. * Improving greens and turf conditions also requires use of an aerator, top -dressed and broadcast spreader * Root pruning — we have learned that roots growing into greens and fairways can consume large amounts of our irrigation water and impact turf quality. Our professional golf designer has recommended that Friends purchase or lease root pruning equipment and tractors to allow us to cut roots extending into our turf management areas and thereby reduce and be more efficient in our irrigation water usage * A front-end loader and utility vehicles allow us to better maintain trails, pick up tree limbs and debris from the course, and handle other typical parkland maintenance requirements Course Maintenance and Turf Management Trends To enhance sustainability and playability, Camas Prairie Park has prepared and will periodically update a turf management plan. The Park will follow leading turf -management practices recommended by USGA agronomists and others, such as: Turf Reduction: Identify turf areas to remove irrigation to conserve water and create visual variety. Infrequently mowed natural area zones enrich the landscape and reduce maintenance costs. They also provide a colorful visual contrast and natural beauty to the park grounds and a `links style course' appeal. Reduced Overseeding: Limit winter overseeding to only high -traffic areas. This approach saves water while preserving green playing surfaces for off-season golfers. 34 Alternative Grass Varieties: Consider durable species such as zoysia grass for its year- round color and resilience. Though initial establishment can be costlier, these grasses reduce winter overseeding needs. The Superintendent has consulted with turf specialists that have taken soil measurements that provide important information related to soil moisture, chemical balance of the soil, and other information that makes our turf management more scientific and environmentally friendly. Technology Investments Over the next few years, as part of our sustainable turf management efforts, we will be investigating: • Drone imagery for real-time aerial assessments • Soil moisture sensors to guide precise irrigation • Subsurface drip irrigation on tees to cut water use by up to 80% Golfers and other Users — Engagement and Stewardship A collaborative relationship between the superintendent and the golfing community, environmental interests, and citizens interested in the flora and fauna of the Golf Park is vital for long-term resource conservation: • Open Communication: Host quarterly "meet the superintendent" sessions to explain maintenance plans and gather feedback • Shared Responsibility: Educate golfers and other interests on the benefits of reduced mowing, seeding and conservation practices we are undertaking and explain "brown - course play" and tall grass areas. • Conservation Advocacy: Highlight course sustainability efforts in newsletters and on - course signage, inviting players to champion these practices • Provide appropriate notice when chemicals are used on the Park, which right now is very limited and only conducted by our certified Superintendent 35 8. Financial Plan Prior to Friends' operation of the Golf Park, little reliable data was available on customer base, market/demographics served, or even the basic metric of golf rounds played. As David Hein stated in the May 2023 "Analysis of the Port Townsend Golf Course": It has proven difficult to evaluate financial results from both the lessee and lesser because of the very limited data on the daily, monthly and annual revenue and expenses as well as missing numbers of actual rounds played. From its first day of operation, Friends set in place a Point of Sale (POS) system and tee sheet ledger for pro -shop staff and volunteers to input all revenue and all golf rounds, range use and other data that is vital to assess financial performance. Through our first year and a half of operations, Friends has collected detailed financial data, evaluated our competition, assessed our market strengths and have learned what it takes to ensure a financially successful golf park operation. We have gained this knowledge from the collection of our own operating data and as well as from our contacts with other courses and experts in the field. The collection of data and information from our first year and one half forms the basis for the development of the financial projections in this Plan. The Financial Goal for the Friends for the operation of the Golf Park: The operation of the Golf Park must be financially sustainable from user fees and must be successful in attracting capital investment and annual financial support. Now in the second year of operations, the Friends are seeing the benefits of the investments we have made in the course and turf conditions with significant increases in year -over -year usage and revenue. For the year 2024: • Approximately 8500 equivalent 9-hole rounds of golf were played (18 holes = 2 rounds) versus the David Hein report from 2023 estimating 3711 rounds played • 1450 unique customers visited and paid for services at the Park, with 6900 total return visits • Nearly 250 customers visited more than 10 times in the year • Approximately 200 Rounds of golf were played by youth 12-18 • It is clear that the driving range is an important revenue source and training ground but also an attraction that brings golfers to play golf and importantly, to socialize 36 Recent performance To evaluate `how we are doing" and to assess our potential for growth, we have compared use and revenue between our first 6 months of operation in 2024 and our January to June figures in 2025 (see Appendix Q. As outlined in Section 5, this 6-month year -over -year comparison shows the following: • Rounds played increased nearly 25% • Golf rounds revenue rose 33% • We saw a 45% jump in annual pass sales • Disc golf grew from 100 to 400 rounds, generating enthusiasm and new income streams Financial conclusions from Friends first 18 months We have reached several important conclusions from usage and financial data that lead to developing our key performance indicators and that are necessary to reach our financial sustainability goals 1. Rounds of golf must increase to somewhere between 15,000 to 18,000 9-hole rounds per year in order to be financially viable in the long term. Continued private donations will be required to meet our day-to-day operations until that threshold is reached. 2. The rounds of golf played can only be increased if the Friends continue to invest in improving the physical condition of the course — which had been neglected for many years — to attract golfers to play on our course versus the other available courses in the area. 3. Friends must actively engage in the marketing and promotional activities described above to increase revenue and to address the market trends in the industry. 4. The Friends must invest in revenue -generating facilities and items such as electric golf carts and covered driving range areas with ball tracking and technology 5. The course must remain `a competitive 9-hole course' in order to achieve financial sustainability. 6. The driving range is a significant source of the revenue for the Friends with the potential to grow revenue at a faster rate than the greens fees. More importantly it is, and in the future will be more so, a large part of the golfing experience and social network for young and novice golfers 7. The Course must differentiate itself from the competition though superior customer service, well -maintained course conditions, below market greens fees, as well as (and not any less import) attracting non -golfers who support the values of the land ethic that the Friends embrace to preserve the environmental features of the 58-acres of land and to steward the land wisely 8. It is critical that Friends expands the activities at the Golf Park to a full range of ages and abilities, and draw patrons with new items like disc golf, mini golf, foot golf, fling golf, 37 events, movies, other sports, the views, trails, and importantly the food and beverage service. These additions, some of which have already been implemented or in the planning stage, will create much greater public use and in many cases more revenue that will greatly increase our financial viability. 5-year financial projection The detailed usage and financial information allow us to confidently develop a 5-year financial forecast, including consideration of the market trends and other factors noted in previous chapters of the Plan. Given the above, our 5-year financial projections are based on the following Key Performance Indicators that we track now and will continue to monitor to establish if we are on target. We believe these are very achievable KPI targets; should we exceed these targets, our financial position will be even better than we project. On the revenue side, our financial KPI's for the next 5 years are: Revenue Category 2025 2026 2027 2029 2029 Rounds of golf played — daily Base +15% +15% +10% +10 +10% greens fees and punch cards year Number of Annual Passes Sold +15% +10% +10% +5% +5% Green Fee Rate Increase (while +10% +5% +5% +5% +5% remaining well below the prevailin market rates Drivin Range Use +15% +15% ..... +10% +10% +1P......... _..Cart Rentals . . . ..... . . . . .... +15% +15% +10%+10%+1........ : On the Expense ledger: • Staffing will include 3.25 FTE with salary and benefit costs increasing 6% per year • General operating and maintenance expenses will increase at an inflation -driven rate of 4% per year If we meet these very reachable KPI's, we will reach the break-even point in revenue versus operating expenses within 3 to 4 years, after which our net operating income grows to a projected $50,000 in 2030. However, in addition to the operating revenue that the course generates: • The operation of the property will require continuing private donor support at a minimum of $50,000 to $70,000 per year for the next 3 to 5 years to maintain operations, outside of major capital investments, and to build up reserves Private donations beyond the level of $70,000 per year will be dedicated to first building cash reserves and then to investing in our major equipment and capital expenditure needs, RN and additional staffing. These future capital investments will also have a revenue benefit. Donations beyond basic operating needs will also be directed to programming and to financial assistance. Revenue Model and Projections Our detailed 5-year financial projection model, using the above KPI's, is included in Appendix D. The results of that projection are highlighted below: Rev. Cate ory 2025 2026 _ 2027 2029 2029 2030 Annual passes 65,000 78,000 89,700 98,670 108,537 113,964 Greens Fees 96 509 122,084 147,417 _._ 170,266 196,657 _ 227,139 Driving Ran e 31,250_ 35,938 41,328 45,461 50,007 55,008 Disc Golf 4,000 4,800 5,520 6,072 6,679 7,347 ... s _ Electric Carts 20,000 23,000 450 26,� 29,095 32,005 ___......... 35 205 Total Golf 216,759 263,822 310,415 349,564 393,885 438,663 Total Sales rev 295,759 347,172 404 040 453,647 509,465 562,438 Gross Profit 265,759 332,272 388,195 436,809 491,585 543,465 Donations ............... _. .-..�......... ��.... 113,000 -_ 70,000 ._ 50,000 ....... ... 50,000 50,000 50,000 Operating Costs, Personnel Costs and Net Operating Income Cate o 2025 2026 ...... 2027 2028 2029 2030 Personnel Personas 210,000 230,000 243,800 258,428 273,934 290,370 Other 151,000 160,390 168,372 183,694 192,027 200,778 Ex enses Rent to Cites 13,887 16,162 18,146 202379 22,498 Net -95,241 -72,515 -40,138 -23,459 5,246 29,820 operating income/loss Likely break-even ............. _. ear �. 39 Financial Summary Break Even Analysis: Achieving our KPI targets will secure break-even operations by Year 4 and full self-sufficiency by Year 5, enabling expanded capital programs. Sensitivity Analysis: A reduction in growth rate of 10% below our year 5 projection increases the break-even year to Year 5, underscoring the importance of flexible membership models and diversified revenue and of following the marketing and other strategies outlined in other chapters of this Plan. N 9. Capital Investment Plan (CIP") Business Plan Findings & Recommendations Reflecting on our first 18 months of operations under nonprofit management, we distilled operational insights and identified strategic revenue sources that underpin our capital investment needs. We have identified general capital projects that will improve our operations and maintenance and increase our revenue position. Capital cost estimates are only order -of -magnitude at this level of planning. Preparation of a Capital Improvement Plan will refine these estimates. This Plan will be a targeted, data -driven capital improvement roadmap for the next 5 years and for the 20-year horizon. Our Phase 2 operation of the Golf Park beginning January 2026 will include the preparation of the detailed Capital Improvement Plan. The second half of Phase 2 and continuing into Phase 3 will be the Major Capital Investment stage. SWOT Analysis The Board and staff conducted a SWOT analysis to help guide our governance, operations, marketing, and capital investment plan priorities. Strengths - Unique transformation from municipal golf course to community -driven park - Strong leadership with strategic, legal, and financial expertise - Robust volunteer and partnership network - Ecological restoration as a core value and differentiator - Inclusive, multi -use programming for all ages - Community support and municipal alignment Opportunities - Strategic partnerships with local businesses and civic groups - Master Use Golf Plan to guide capital investment and improvement - Expanded events (golf, disc golf, weddings, retreats) for regional draw - Integrated city/hotel marketing campaigns Weaknesses - Deferred maintenance across core infrastructure - Limited internal capacity to manage growing operational demands - Reliance on seasonal revenue and event -based income - Limited marketing budget and regional brand awareness - Complexity of balancing golf and non -golf audiences - Resource constraints in staff, time, and capital Threats - City rezone for housing development threatens financial viability and core facilities and green space - Volunteer burnout in a resource -constrained environment - Financial sustainability risks without major capital influx; dependence on fundraising success - Changing recreational trends and providing for those new needs 41 - Positioning as a hub for ecological - National economic uncertainty education and civic engagement Key Findings that impact the Capital Improvement Plan Key findings from our first 18 months of operation and as discussed within this Business and Capital Improvement Plan that specifically relate to the development of our Capital Improvement Plan over the next two years are described below. Rezoning any or a portion of the golf park property for future housing development — and thereby reducing the size of the course from "a competitive 9-hole course" - would significantly reduce our revenue stream and revenue growth and seriously limit our ability to be financially sustainable. Therefore, a Capital Improvement Plan project will assume that the full historic course is protected, and improvements made to this course (irrigation, mowing and maintenance equipment, and overall course improvements that will attract golfers — such as greens, tee boxes, bunkers, fairways, focused irrigation areas, items to maintain naturalized areas) will be made to the existing 9 holes. Any other configuration would seriously reduce our ability to draw golfers to play our historic course — which is our base income source -and therefore would have no payback potential for the investments made in the course. The Capital Improvement Plan must assume the driving range is available for major investment and programming. There are huge programmatic opportunities for the driving range that are discussed above under `golf trends.' The technology for swing assessment and opportunity to play other courses on Al monitored technology is a huge market potential and learning opportunity (ref. Top Golf, Inc.). Our golf course consultant studies concluded that reducing the golf course layout would eliminate reduce revenue -generating opportunities. and the trends toward 9-hole golf. Investment in course improvements and facilities will be directed to 9-hole golfers, to hold competitive tournaments, attract corporate sponsors of those tournaments, as well as youth and young adults who are the core of our marketing and our market growth. The Park's transition to nonprofit management yielded stronger branding, website and digital booking improvements, and volunteer engagement —but revealed a sizable deferred - maintenance backlog across park irrigation, buildings, and grounds which must be addressed by our project development assessment and Capital Improvement Plan. Continued City capital budgeting is critical to eliminating significantly deferred capital investments to the buildings and facilities at the golf park. This City funding is one part of the capital investment funding that the Friends anticipate needing. Planning logically and prioritizing our high impact investments in key purchases of critical maintenance equipment will bring high value-added economic return on donor investments. 42 Sequential planning for capital improvements will ensure that we don't build new amenities atop failing infrastructure. Initial operating data show promising revenue and usage increases from events, the mini - golf course, and further improvements to the restaurant and the lower -level meeting space. We will be translating these signals into dedicated capital lines —like the mini -golf expansion and restaurant remodel —that amplify proven revenue streams. To finance these projects our recent IRS designation as a charitable organization greatly assists us in these efforts. The Capital Improvement Plan will identify funding sources for proposed improvements. Beyond local donors, it will assess grant funding opportunities from government agencies and foundations. It is clear that revenue sources such as donations and grants (e.g., $250K for mini -golf) create excitement for new initiatives, and that our projections show that earned revenue from golf course operations might eventually cover operating costs; however, it is likely that operational revenues will not adequately cover capital projects for necessary course improvements and equipment(e.g., irrigation improvements, new tractor(s) and other park equipment). The Capital Improvement Plan development must consider cash -flow uncertainty. The Friends understand that a major focus is to develop and maintain a strong donor and grant program in order to enact a viable capital investment program. That finding drives our push for diversified funding targeted grants, phased fundraising, corporate sponsorships, and earned -revenue enhancements —so capital budgets rest on multiple stable pillars. Additionally, City capital investment responsibilities, as detailed in the Lease, will be necessary to implement a capital investment program. These findings and insights lead directly to our recommendation: To prepare a Capital Improvement Plan within 2 to 3 years —so that roles, accountabilities, and capital needs align with the park's ambitions, which will define more clearly future year metrics and projects. Business Plan Conclusion Regarding Capital Projects and Investment The findings above, reinforced by our SWOT assessment, underscore the imperative to move forward in Phase 2 toward a structured, long-term capital investment and financial return -on -investment planning process. By rooting capital investments in measurable financial outcomes, community benefits and stakeholder engagement, we seek to ensure that every dollar earned or raised advances our mission, mitigates risk, provides the necessary financial return and amplifies community value. With these findings, every capital recommendation in future phases traces its origin back to concrete evidence, community feedback, and operational learnings. 43 Phase 1 of our operation has been initial startup, initial equipment investment, collecting data and learning the details of key success factors for our operations. These are all outlined in the Plan and conclude with our financial sustainability model. It is only from the knowledge and experience gained from our 18 months of operation that we have information and tools to move to Phase 2 of our operation (and our metrics): our Capital Investment Planning Phase. Our outline for entering into Phase 2 is as follows: Capital Improvement Plan Port Townsend Golf Park (2026-2030) Introduction For Phase 2 we will undertake a refined, data -driven strategy to develop a clear picture of capital needs, returns and any needed modification to the metrics. This plan targets with a shared 20-year vision co -created through the CIP Our objectives and timeline for a Capital Investment Plan 1. Launch a Two -Year Capital Investment Planning process to engage our stakeholders and City staff and deliver a plan by December 31, 2028. 2. Align Capital Investments to Business Objectives: Concentrate Phase 2 (2026-2030) investments on revenue drivers, deferred -maintenance remediation, and community programs, informed by initial 18-month data. 3. Institute SMART (Specific, measurable, achievable, relevant and time -bound) capital projects: Define clear targets in Capital Investment Plan and include updates in Lease required annual reports to the city. 4. Diversify Funding & Partnerships Combine targeted grants, thematic community fundraising, and public/private sponsorships to stabilize capital project funding. This 20-year strategic CIP will deliver: • A visionary, community -aligned roadmap for phased capital investments. • Robust financial modeling tied to verifiable revenues, grants, and philanthropy. CIP Strategic Objectives The process of creating a CIP will be based on the following strategic objectives: 1. Stabilize Financial Foundations 2. Rehabilitate and Activate Assets 3. Amplify Community Value 4. Strengthen Political & Community Support 5. Modernize for Resilience & Sustainability The planning process will research other similar facilities and operations at other courses (e.g. NLT), funding sources, and specific implementation timelines. Master planning and identified capital projects will include: acklc : Deferred irrigation, aging facilities, trail work, continued course upgrades and aging infrastructure electrical, buildings, etc.) FrontM-Loadi revenue Generating Projects: Restaurant, meeting room, and outside seating area upgrades, paired with targeted marketing to shore up cash flow. Elevating Community New gathering spaces, event infrastructure, and youth programs transform the Golf Park into a year-round hub. Local hotels and retailers benefit from tournaments that generate out-of-town visitors, including overnight stays (Stay and Play). Modemizing for resilience & Sustainabili Electric cart fleets, solar canopy installations, and native habitat expansions showcase stewardship —unlocking sustainability grants and in - kind partnerships. 20-Year Draft Capital Plan Summary We have begun a 20-year capital plan that will serve as the initial capital investment plan draft that will be further fleshed out and developed during the CIP planning process The following table is our initial outline of capital improvements to be programmed in this 20-year CIP Phase Years Key Investments Sprinkler system; maintenance equipment; clubhouse & restaurant 2024— 1 upgrades; branding; E/W trail; mini -golf planning, professional golf course 2025 designer evaluation of course with recommendations Irrigation upgrades; restaurant remodel; N/S trail; putt -putt construction; 2026— 2 terrace & stage; driving range prep; solar & cart shed; parking & signage; 2030 sustainability & marketing plans 2031— Covered driving range (Top Tracer); park lighting & safety; wayfinding; 3 2035 event enhancements 2036— TBD—refined after I0-year review and CIP guidance. Opportunities 4 2046 include outdoor and environmental education, enhanced event space The following Table's primary focus is for Phase 2 (2026-2030) and contains detailed strategic priorities: Strategic Priority Key Investments Infrastructure Repair • Irrigation upgrades & drainage, Trail surfacing 45 Clubhouse & Community . Welcome Center remodel, Restaurant & kitchen upgrades Hub Recreation • 18-hole mini -golf completion, Expanded Disc & Fling Golf Diversification offerings Digital Services • Website overhaul, Targeted promotional campaigns Sustainability Initiatives • EV cart fleet completion, Solar canopy installation, Native prairie planting expansion Volunteer Support « Stipend programs, Equipment grants, Training workshops Sequencing these strategic priorities should reduce financial risks and deliver visible progress. For example, concurrent clubhouse and restaurant enhancements catalyze event revenue. Partnerships with the City and LTAC amplify marketing reach. Recreation diversification and digital upgrades deepen engagement and boost ROI. Volunteer support structures prevent burnout and sustain momentum. Overall, we expect this Golf Park Capital Improvement Plan will be prepared and submitted to the City be December 31.2028 and will outline the capital projects, anticipated funding sources and timelines. Included will be updated site plan maps, concept designs and financial analysis. 1 O.Metrics The City — Friends Lease includes a table that lines out metrics over four phases • Phase 1: January 1, 2024 — December 31, 2025 • Phase 2: January 1, 2026 — December 31, 2030 • Phase 3: January 1, 2031 —December 31, 2035 • Phase 4: January 1, 2036 — December 31, 2046 Included in Appendix E is a Table of the metrics for Phase 1 and details how the Friends have met those Metrics. While as of July 31", the metrics are met, efforts will continue in this Phase 1 period to further add achievements to these metrics. Included in Appendix F is a recommended metric table for Phases 2, 3, and 4 that makes changes to the metric table found in the Lease. These changes are based on our experience operating the Golf Park over the last 18-months and are intended to continue our implementation and improvements for public access and benefit, environmental sustainability, partnerships, accountability, and financial sustainability. 47 . Conclusion Friends of Camas Prairie Park have demonstrated the capacity to run a thriving, fiscally responsible municipal golf park operation that deepens community bonds and honors ecological values. We respectfully request the City's formal endorsement of this unified plan, confirming our conclusion of financial sustainability, and enabling us to secure grants, engage contractors, and finalize partnerships. Together, we will ensure that Camas Prairie Park remains a sustainable, inclusive community resource for generations to come, and that it is a major achievement and success for the City, the Friends, and most importantly, for the Community, and a success that lessens the costs the citizens of Port Townsend would otherwise bear without the operation of the Camas Prairie Park by the Friends non-profit. In addition, we respectfully request the City remove the Blaine Street housing development proposal from our Lease and from any rezone or Comprehensive Plan amendment —for now and into our 20-year operation and management lease. As we have discussed throughout the Plan, it is a financial necessity for Friends to remain a competitive 9-hole golf course if we are to continue on our forward path to financial sustainability, with a win -win asset and ground- breaking long-term partnership with the city. Our financial analysis indicates that we achieve a `break-even' financial point in 3 to 4 years with marketing of our unique and historic course. Further, as we are now moving into Phase 2, we recognize the need for a more thorough assessment of future capital project's needs, the cost and the timing and phasing of these improvements based on all that we have learned in our Phase 1 operations. Over the next two to three years we will prepare a Capital Improvement Plan in concert with Michael McCartin, a golf course architect and one of the Founders of the National Links Trust, that will include site planning, will define capital improvement needs, address public access, may potentially propose revised metrics, and will align Friends, City staff, Council, and the public around data -driven capital improvements for the future. Front -loaded capital improvements that provide revenue enhancements, proactive projects that enhance maintenance and environmental sustainability, and robust governance will optimize investments and cash flow and reduce risk for the investments —for us all. Simultaneously, a newly remodeled restaurant, new gathering spaces, expanded recreational activities, youth programs, accessible trails, and green infrastructure will elevate community support, pride and park ecological stewardship. The goal for both Friends' and the City is to provide public benefit by the use of the Camas Prairie Park and provide public access so that the 10,000 plus City resident owners of the park have use of and enjoyment of the park, rather than a very small contingent of golfers. Great progress has been made in the year and one-half of the Friends' operation, and with the approach lined out in this Business Plan and our proposed phase 2 capital assessment and investment plans, the Friends believe the potential of Camas Prairie Park is vast. Our efficient operations, dedicated employees, well-credentialed and enthusiastic volunteer corps, and investment in a welcoming environment for the community, along with our proposals for the future, including the CIP process presents a compelling roadmap to transform Port Townsend Golf Park into a nationally recognized model of municipal park recreational, ecological, and financial sustainability. We conclude with a quote from Section 5 Trends on lifestyle drivers: "Facilities that emphasize their natural beauty and setting and foster a sense of community with unique events and experiences position themselves as local destinations for more than just a place to play golf. " Camas Prairie Park clearly provides and seeks to enhance all of those attributes for our community. We look forward to co -creating this 20-year PT Golf Park vision with the City of Port Townsend and our community partners. Prepared by: Friends of Camas Prairie Park Port Townsend, Washington Appendices Appendix —supporting documents: A. Friends of Port Townsend Golf Park Organization B. Year over year P&L comparison: Jan — June 2024 vs Jan — June 2025 C. Statement of Activity October 2023 — December 2024 D. 5-year financial projection pro forma - E. Metrics Compliance — Phase 1, the First Two Years F. Updated 20-year metrics table 2026-2046 FY Restaurant Manager City of Port Townsend General Manager Pro Shop Manager Restaurant Staff NjI ProShop Staff Appendix B Friends of Port Townsend Golf Park Statement of Activity Comparison January - June, 2025 Total Jan -Jun, 2024 Jan - Jun, 2025 (Pl) % Change Revenue Annual Pass - Membership 57,916.59 39,502.73 46,61 % Cart Rentals 10,499.24 5,159.45 103.50% Cart Storage 3,524.98 4,225.00 -16.57% Club House Rentals 899.36 Club Membership Dues 3,522.00 -100.00% Driving Range 14,435.53 11,413.34 26.48% Events- Public & Clinics 115.00 -100.00% Interest Income 5.21 Pro Shop Sales 15,961.68 10,823.13 47.48% Restaurant Sales 6,464,70 9,714.86 -33.46% Rounds 46,219.63 34,662.86 33.34% Square / Deposit Adjustment -2,254.57 100.00% Square Deposits 0.00 0.00 Tournaments 6,488.24 8,117.91 -20.07% Total Revenue $ 162,415.16 $ 125,001.71 29.93% Cost of Goods Sold Event Expense 3,091.97 450.00 587.10% Pro Shop Costs 7,744.24 12,772.44 -39.37% Restaurant Cost of Goods 2,441.43 7,854.00 -68.91 % Tournament Costs 1,983.29 Total Cost of Goods Sold $ 15,260.93 $ 21,076.44 -27.59% Gross Profit $ 147,154.23 $ 103,925.27 41.60% Expenditures Grounds 49,613.52 37,810.98 31.21% Operations 39,721.26 31,302.55 26.89% Staffing & Payroll Taxes 108,381.22 49,990.54 116.80% Total Expenditures $ 197,716.00 $ 119,104.07 66.00% Net Operating Revenue 60,561.77 b 15,178.80 -233.11% Other Revenue Public Support 36,078.19 98,194.96 -63.26% Special Event Sponsor 10,250.00 -100.00% Total Other Revenue $ 36,078.19 $ 108,444.96 -66.73% Other Expenditures Building Repair 5,730.82 Restaurant Equipment Buyout 7,000.00 Restaurant/Remodel Costs 34,253.19 2,274.06 1406.26% Special Event Expense 11,449.00 -100.00% Total Other Expenditures $ 46,984.01 $ 13,723.06 242.37% Net Other Revenue 10,905.82 $ 943721.90 -111.51% Net Revenue $ 61,467.59 $ 79,543.10 -177.28% Appendix C Friends of Port Townsend Golf Park Statement of Activity October 2023 - December 2024 Total Revenue Annual Pass - Membership 51,895.03 Cart Rentals 14,224.38 Cart Storage 4,825.00 Club Membership Dues 3,522.00 Driving Range 24,859.73 Events- Public & Clinics 1,325.00 Pro Shop Sales 21,719.76 Restaurant Sales 24,678.85 Rounds 82,065.12 Square / Deposit Adjustment 84.99 Square Deposits 0.00 Tournaments 15,744.76 Total Revenue $ 244,944.62 Cost of Goods Sold Event Expense 4,725.00 Pro Shop Costs 25,420.06 Restaurant Cost of Goods 12,970.26 Total Cost of Goods Sold $ 43,115.32 Gross Profit $ 201,829.30 Expenditures Grounds 75,462.00 Operations 69,400.32 Staffing & Payroll Taxes 132,073.91 Total Expenditures $ 276,936.23 Net Operating Revenue ,$ 75,106.93 Other Revenue Public Support 282,630.72 Special Event Sponsor 10,250.00 Total Other Revenue $ 292,880.72 Other Expenditures Restaurant/Remodel Costs 2,766.03 Special Event Expense 12,949.00 Total Other Expenditures $ 15,715.03 Net Other Revenue $ 277,165.69 Net Revenue $ 202,058.76 Appendix C Friends of Port Townsend Golf Park Statement of Activity October 2023 - December 2024 Total Revenue Annual Pass - Membership 51,895.03 Cart Rentals 14,224.38 Cart Storage 4,825.00 Club Membership Dues 3,522.00 Driving Range 24,859.73 Events- Public & Clinics 1,325.00 Pro Shop Sales 21,719.76 Restaurant Sales 24,678.85 Rounds 82,065.12 Square / Deposit Adjustment 84.99 Square Deposits 0.00 Toumaments 15,744.76 Total Revenue $ 244,944.62 Cost of Goods Sold Event Expense 4,725.00 Pro Shop Costs 25,420.06 Restaurant Cost of Goods 12,970.26 Total Cost of Goods Sold $ 43,115.32 Gross Profit $ 201,829.30 Expenditures Grounds 75,462.00 Operations 69,400.32 Staffing & Payroll Taxes 132,073.91 Total Expenditures $ 276,936.23 Net Operating Revenue -$ 75,106.93 Other Revenue Public Support 282,630.72 Special Event Sponsor 10,250.00 Total Other Revenue $ 292,880.72 Other Expenditures Restaurant/Remodel Costs 2,766.03 Special Event Expense 12,949.00 Total Other Expenditures $ 15,715.03 Net Other Revenue $ 277,165.69 Net Revenue $ 202,058.76 Appendix D Friends of Port Townsend Golf Park oct'23 Financial Projection - 5 Year to dec '24 2024 2025 Actuats Estimate Rounds of Golf (Note: 9-hole equivalent) Number of Annual Pass Holders 30 60 Number of Annual Pass Holder Rounds 4200 5040 +20% Paid Rounds of Golf 4300 5332 +24% 2026 2027 2028 2029 2030 69 15% 76 10% 83 10% 88 5% 92 5796 15% 6376 10% 7013 10% 7364 5% 7732 6132 15% 7052 15% 7757 10% 8532 10% 9386 TOTAL #ROUNDS 8,500 10,372 11,928 13,427 14,770 15,896 17,118 Rates Annual Pass 1,200 $1,260.00 5% $1,323.00 5% $1,389.15 5% $1,458.61 5% $1,531.54 9-Hole Fee (Summer) $22.00 $24.00 $ 26.40 10% $27.72 5% $29.11 5% $30.56 5% $32.09 Average Per Round Fee $17.70 $18.10 $ 19.91 10% $20.91 5% $21.95 5% $23.05 5% $24.20 Revenue/Sales Golf Rounds (green fees + punch cards) $79,808 $96,509 21% $122,084 $147,417 $170,266 $196,657 $227,139 Annual Pass $55,417 $65,000 17% $78,000 20% $89,700 15% $98,670 10% $108,537 10% $113.964 Cart Rental $14,224 $20,000 41% $23.000 15% $26,450 15% $29,095 10% $32,005 10% $35,205 Driving range $24,859 $31,250 26% $35,938 15% $41,328 15% $45,461 10% $50,007 10% $55,008 Tournaments $15,745 $20,000 $20,600 3% $21,218 3% $21,855 3% $22,510 3% $23,185 DISC Golf $2,257 $4,000 $4,800 20% $5,520 15% $6,072 10% $6,679 10% $7,347 Clinics & Lessons $1,325 $2,000 $2,400 20% $2,640 10% $2,772 5% $2,911 5% $3,056 Pro Shop Sales- Golf Items $6,220 $10,000 $10,500 5% $11,025 5% $11,576 5% $12,155 5% $12,763 Pro Shop - Merchandise $10,554 $12,000 $12,600 5% $13,230 5% $13,892 5% $14,586 5% $15,315 Pro Shop Food & Drink $4,945 $5,000 $5,250 5% $5,513 5% $5,788 5% $6,078 5% $6,381 Beverage - B/W $24,679 $30,000 F&B Service Net (see separate FB fin plan) $0 $30,000 $36,000 20% $43,200 20% $51,840 20% $57,024 over/under $85 Events/Club house rentals - net $2,000 $4,000 $5,000 $5,500 10% $6,050 Gross Sales $ 240,118 $ 295,759 $ 347,172 $ 404,040 $ 453,647 $ 509,465 $ 562,438 Cost of Goods Sold Pro Shop - golf related $7,383 $7,000 $7,350 5% $7,718 5% $8,103 5% $8,509 5% $8,934 Merchandise Cost $16,277 $8,000 $8,400 5% $8,820 5% $9,261 5% $9,724 5% $10,210 Food/drink - pro shop $1,761 $3,000 $3,150 5% $3,308 5% $3,473 5% $3,647 5% $3,829 Beverage - B/W $12,970 $16,000 Eventexpense $4,725 Total COGS $ 43.116 $ 34,000 $ 18,900 $ 191845 $ 20,837 $ 21.879 $ 22,973 Net Operating Inc $197,002 $ 261,759 $ 328,272 $ 384,195 $ 432,809 $ 487,585 $ 539,465 Cart Storage - Rentals $4,827 $4,000 $4,000 $4.000 $4,000 $4,000 $4,000 Gross Profit $201,829 $265,759 $332,272 $388,195 $436,809 $491,685 $543,465 25% 4% City Rent based on Gross Sales $ $ 13,887 $ 16,162 $ 18,146 $ 20,379 $ 22,498 Gross profit after Rent Paid to City $ 265,769 $ 318,385 $ 372,034 $ 418,663 $ 471,207 $ 520,968 Expenses Staffing -salary+indirect $132,074 $210,000 Business Manager.75 FTE $60,000 $63,600 6% $67,416 6% $71,461 6% $75,749 Course Superintendent 1.0 FTE $80,000 6% $84,800 6% $89,888 6% $95,281 6% $100,998 Pro Shop Manager .75 FTE $45,000 6% $47,700 6% $50,562 6% $53,596 6% $56,811 Grounds Crew .75 FTE $45,000 6% $47,700 6% $50,562 6% $53,596 6% $56,811 TOTAL Staff Expense $230,000 $243,800 $258,428 $273,934 $290,370 Grounds Equipment $5,346 $8,000 $10,000 $10,400 4% $10,816 4% $11,249 4% $11,699 Small Tools, Equipment $2,556 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Turf/greens Supplies $3,700 $6,000 $6,240 4% $6,490 4% $6,749 4% $7,019 4% $7,300 Irrigation Supplies $12,763 $10,000 $10,400 4% $10,816 4% $11,249 4% $11,699 4% $12,167 Fertilizer, Chemicals $5,083 $5,000 $5,200 4% $5,408 4% $5,624 4% $5,849 4% $6,083 Maintenance, Repairs, Supplies $8,125 $10,000 $10,400 4% $10,816 4% $11,249 4% $11,699 4% $12,167 Fuel $4,136 $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Tree Removal Services $1,909 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Other Grounds Expense $1,000 $1,040 4% $1,082 4% $1,125 4% $1.170 4% $1,217 Water use - well water $1.5/1000 gal) $7,500 $8,000 4% $16,000 4% $16,640 4% $17,306 Signage, Amenities $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Golf Cart Costs $4,177 $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Driving Range Expense $3,153 $8,000 $5,000 4% $5,200 4% $5,408 4% $5.624 4% $5,849 Utilities & Water $11,281 $15,000 $15,600 4% $16,224 4% $16,873 4% $17,548 4% $18,250 Insurance $11,948 $14,000 $15,400 10% $16,324 6% $17,303 6% $18,342 6% $19,442 Other Course Expenses $1,000 $1,040 4% $1,082 4% $1,125 4% $1,170 4% $1,217 Excise to City $1,284 Operations Accounting $1,644 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Legal $3,506 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Website & Email Accounts $3,653 $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Marketing $2,450 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Advertising $8,076 $8,000 $8,320 4% $8,653 4% $8,999 4% $9,359 4% $9,733 Memberships & Dues $3,522 $1,000 $1,040 4% $1,082 4% $1,125 4% $1,170 4% $1,217 Bank Charges & Fees $4,910 $8,000 $8,800 10% $9,680 10% $10,648 10% $11,713 10% $12,884 Postage $169 $1,000 $1,040 4% $1,082 4% $1,125 4% $1,170 4% $1,217 Office Expense & Supplies $1,425 $1,500 $1,560 4% $1,622 4% $1,687 4% $1,755 4% $1,825 Computers, Hardware, Printers $884 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Software $1,811 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Printing $4,429 $1,000 $1,040 4% $1,082 4% $1,125 4% $1,170 4% $1,217 Business Taxes $2,321 $1,000 $1,040 4% $1,082 4% $1,125 4% $1,170 4% $1,217 Other Op Costs $918 $1,500 $1,560 4% $1,622 4% $1,687 4% $1,755 4% $1,825 Contract help $12,356 $3,000 $3,120 4% $3,245 4% $3,375 4% $3,510 4% $3,650 Restaurant Equipment $14,000 $8,000 $5,000 4% $5,200 4% $5,408 4% $5.624 4% $5,849 Building Furnishings $1,500 $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Trails & Sitework $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Filingfees, Permits $1,517 $2,000 $2,080 4% $2,163 4% $2,250 4% $2,340 4% $2,433 Fundraising Exp./vol. recog. $1,308 $4,000 $4,160 4% $4,326 4% $4,499 4% $4,679 4% $4,867 Total Expenses w/o payroll $276,934 361,000 $160,900 $168,372 $183,694 $192,027 $200,778 Total Expenses including payroll $390,900 $412,172 $442,122 $465,961 $4919147 Operating Net Income/Loss -$75,105 -95,241 0-$72,515 $0 -$40,138 $0 -$23,459 $0 $5,246 $0 $29,820 Capital Expenses Grounds Maintenance Euipment $45,000 25,000 Golf Carts $25,000 Restaurant - Equipment $15,000 Restaurant, Clubhouse $12,000 $40,000 Total Capital Expenses $82,000 $80,000 Net Inc. for year including capital exp. -$157,105-$175,241-$72,515-$40,138-$23,459 $5,246 $29,820 Donations - non -directed $230,651 $25,000 Events $10,250 pass through $1,980 Donations - directed to specific items $25,000 $18,000 Yearly donation target- unreceived $70,000 $70,000 $50,000 $50,000 $50,000 $50,000 Fund Balance - including donations $110,776 $48,535 $46,020 $55,882 $82,423 $137,669 $217,490 Directed donations unspent $25,000 Appendix E — Metrics Compliance — First Two Years Metrics The Following table demonstrates that the Friends have met their metrics through our Phase 1 of operations. We note that these metrics have been reported to the City Quarterly as per the terms of the lease. The following is the compilation and status of our Phase 1 metrics. _............. Appendix ....... Phase 1: 2024-2025 Business Planning and Initial Public Access Actions _..... Lease Metrics to me_... et in Phase 1 - Report on meeting Lease Metrics Park craations Goals .... ............ ........ ......... All of these goals have been met as demonstrated by the Initial renovations and improvements are increase in usage (25% more golf rounds); basic maintenance completed; maintenance operations are equipment has been purchased and is being operated to underway; needed equipment is secured; train maintain the grounds; the paid staff and volunteers are operations staff & volunteers running a positive organization. There are no specific metrics for this Goal _. _...� � .. F"in anci l Pl�anniaa c. Governance Fri.._.. 'ends financial and operating data is being collected Data collection and tracking of operations; through point of sale (POS) software; prepare business and capital investment plan; develop marketing & fund-raising plans; 2- year ear milestones are reached and a 20-year commitment in place Metric: Produce a business plan that projects Metric: Business and Capital Investment Plan is submitted by financial sustainability on an achievable August 1. It lays out the Key Performance Indicators for timeline and lays out the metrics for financial sustainability and projects that operations can be subsequent phases self-sustaining within a minimum of 4 to 5 years. A metrics table for future phases is contained in Appendix F. Coma unity c ces.y Improve community access through near term successes; evaluate trial course play closure times; install E/W trail; verify trail plan locations. Utilize the driving range and welcome center building to hold seasonal concerts and events. The City, in collaboration with the Friends, reserves the right to continue to explore and select an available location for other municipal purposes, provided that it will not interfere with the area set aside for possible future housing, other recreational opportunities planned for the Golf Park nor hinder the Friends' ability to operate a successful business model for the golf course operations. Metric: E/W trail will be installed and open to the public; signage for the trail will be installed; a plan for the layout of the N/S trail and subsequent trails will be produced; golf course will be closed to play for at least the equivalent of 6 full days a year for public access; at least 4 community events will be held a year during first 2 years; produce a plan that sets thresholds for increasing community usage for metrics in subsequent phases Friends have significantly increased public access, as much through our inviting atmosphere as through any physical or programming improvements. Significantly, Friends has instituted First Sundays in the park and promoted events for the public. Metrics: The E/W trail alignment is established and signage is installed. The N/S trail alignment has been planned and will be constructed in the next few years. The course is closed for half days on the First Sunday of each month — for the equivalent of 6 full days per year. • Many community events have been held over the last 18 months, in addition to the music concerts and programming for the First Sundays, including; Grand opening May 5, 2024 • Annual `birthday' on May 4, 2025 • Kids corners • Kid golf instruction • Disc Golf demonstrations • Open walking (w/ dog if desired) throughout Park • Fun competitions • Food and Beverage service • Variety of music offerings • Community booths • Nature and Prairie tours &12and R creation Use, Design and fund miniature golf; continue and expand cross country team and other uses; school and family programs defined; disc and foot golf are integrated into operations Metric: Disc and foot golf targets are installed Metric: Disc golf targets have been installed. Foot golf to allow for rounds of golf by these user course being planned, possibly incorporated into Disc Golf groups; plans for additional programming will basket poles. be produced Initial funding commitment of $250,000 has been received for mini golf. High School Co -Ed Golf Team (no cost to Districts or Team Members, including off hours free golf during season), Cross Country Team Women's and Elementary School Golf and Disc Golf Clinics Local Corn Hole Tournaments Build Parinenyhip Develop uses and agreements with service clubs, tribes, schools, Native Plant Society, and other community groups; convene technical advisory committee; continue practice of holding fundraising tournaments to benefit local organizations Metric: partnerships have been established with Metric: Invitations will be sent to as many a Intellectual Developmental Disabilities (IDD) Group local groups as possible with the goal of a meeting including visitors from as far away as Seattle minimum of 4 groups to be in partnership • IDD Job Training with the Golf Park 9 School Districts • Native Connections Work Group 0 First Federal Bank • Saltfire use of facility for Improv o WA Native Plant Society Work Parties PT Disc Golf tournaments o Jefferson Land Trust field course • Rhody Festival Reveal o Tournaments for PT Paper, Rhody Festival, PTHS Alumni, Hilltop Hickory Club Challenge Beasts and Children Fun Run Benefit Ricilities inn r vement Main buildings cleaned and updated: welcoming entry, pro shop, first floor and basement improvements; expand meeting and community uses; maintenance buildings cleaned and in full use Metric: Existing "clubhouse" will be Metric: The clubhouse restaurant has been fully remodeled refurbished & rebranded as a welcome center; and upgraded. Rebranding of the Golf Park to Camas Prairie it will be publicly advertised that it is Park is completed with logo. Clubhouse has been rebranded available for rent for community use by "Coyote and Crow." Basement space is now usable, though organizations & private individuals efforts are still needed for larger events. A major advertising campaign will kick off for August 3rd 1" Sunday for use of ................................. ........ facility, restaurant and beverage service .... Grounds and Tur Initial irrigation upgrades; initial tee and greens improvements, per David Hein Report Metric: Improved condition of the golf course; updated irrigation installed; native areas will be enhanced by 10% per year; turf management plan will be produced by the superintendent which will determine the metrics in subsequent phases Metrics: Maintenance staff spent countless hours in our first 18 months of operation locating and mapping existing buried sprinkler heads and the irrigation system. Over $10,000 in new efficient sprinkler heads were installed in our first year focused on the greens, with $10,000 budgeted for 2025, all resulting in a marked improvement in efficiency of watering. Rave reviews are coming on the improved condition of the greens. Golf course conditions significantly improved based on visual and customer feedback. Improvement to tee boxes is next. Turf management: Mowing patterns have been revised for a more efficient use of machinery time. Minimal mowing areas allow for the introduction of natural areas typical of a links course. Native area enhancement: Friends are working with Forrest Shomer to extend the camas prairie below the tee box at hole no. 7. Nearly an acre has been added and is being left un- mowed for re-establishment of Camas Prairie in that area, well over the 20% increase in the metrics. Environmental S tewa�r Maid. Identify and expand native and prairie planting areas; adopt sustainable turf management practices; wildlife plan for course -wide enhancements Metric: turf & grounds management plan Metric: a draft turf management plan has been prepared and produced by superintendent to include details will be submitted by fall 2025. on transition to sustainable practices Environmental Stewardship Committee has been established to advise the Friends about environmental issues, trees, vegetation, sustainable practices. Friends authorized a UW Capstone Project, approved through student's professor, to develop a sustainability plan for the Park. Superintendent certified for chemical applications, though such applications are very minimal right now. Native areas have been significantly expanded. A reduction to minimal mowing has been implemented in many areas of the park. These areas enhance the wildlife habitat of the park. These practices will continue as we learn more about these sustainable practices Technical Advances New electronic controls for sprinklers; transition to electric equipment and carts Metrics: 4 electric golf carts were purchased and 1 gas cart converted to electric. Sprinkler controls have been all been located and are repaired and operational. Optimal timing is being established. Upgrades to the irrigation system will be ongoing yearly. Soil samples have been taken to better determine soil moisture and soil conditions. Note: In discussions with other courses, use of electric mowers and heavier equipment not functional at this point. We are evaluating electric equipment feasibility for potential ............ long-term use. ............ . _ Other (7a aital in r ovements Friends to work collaboratively with the City on locating and applying for a grant for nature playground Metric: Friends actively worked with the City and a Work Group on choosing a playground consultant. A public meeting was held at the golf park. An RCO grant was submitted by the City, but City application not funded so potential playground awaits next funding cycle from RCO. .......__.....m.. ... ter clahle � oigirr _... A ' ° Friends has completed.._._... ourphase 1 due diligence for the Evaluate golf course design and operations in `housing plan' clause outlined in Section 10.a. of our lease by collaboration with City housing initiates and engaging a course designer von Hegge, Smelek and Baril to site planning, if underway. evaluate the impact of housing along Blaine Street on our ability "to preserve a competitive 9-hole golf course." The firm also evaluated course design issues related to relocating fairways and greens. Friends also conducted due diligence on deed history and restrictions. Legal opinion by attorney submitted separately to City. Appendix F Lease Metrics Phasing and Milestones — 2026 - 2046 p years, 2026— 2046). ' future ears Note: Friends has included this Proposed Metrics Table or r Phase 2: 2026- Phase 2: 2026- Phase 3: 2031- �` Phase 4: 2036- Phase 4: 2036- 2030 2030 Proposed 2035 ��� 2046 2046 Revised Proposed Revised 5-year milestones 5-year 5-year 10- ear 10-Year Investment and milestones milestones milestones milestones Full Capital Major Capital Operation of Operation of Implementation Investment Investments Model Links Model Golf Phase with Public Planning - with Phase Golf Park and Park and Programs Public Public Access Public Access Underway Programs Programs Programs Underway WPark crcrParkG ertions Park eration� Par 0wrations "q eralions . Goals Goals sGoals Goals Goals Undertake capital Prepare a Park Continue targeted _ Links course Course becomes improvements based Master Plan and investment in r becomes a a statewide on business and Capital course ,�� statewide model of model of the 9- investment plans and in1 rovement improvements ) the 9-hole course hole course with h phasing plans; Plan by dec 2028. such that the the unique operations team is Begin course is operated business model fully in place; implementation as a destination 1 �� of operation by volunteer programs of capital links course �p� � a non-profit underway projects;' corporation. operations team and volunteer l�programs �1 , underwa ��1, , .,,,,,,.,, Financial i 1anning&t Governance Implement marketing plan; new board members replace interim board; ongoing fundraising; capital campaign is completed to fund phased improvements Metric: To be determined by the business plan submitted in Phase I Study Period Financial Planning & Governance Implement the marketing strategies in the Business Plan; implement fundraising strategies to meet the revenue needs identified in the Business Plan and Capital Improvement Plan. Metric: Implement the marketing and fundraising campaigns to fund operations and capital improvements. Prepare a Master Plan and Capital Improvement Plan Financial Planning Governance Marketing partnerships are fully developed and utilized; visitor packages with hotels in place; annual financial sponsorships are secured; annual charity events are fully scheduled and underway Metric: To be determined by a business plan submitted in Phase 1 Study Period Financial Planning & Governance NP generates funds to contribute to other community causes Metric: To be determined by a business plan submitted in Phase 1 Study Period Financial Planning & Governance NP is self- sustaining and assists other community groups in their efforts. Metric: Update the Business Plan, and Capital Improvement Plan and implement recommendation s from the Plan. Community Access Trail installation continues; N/S trail completed; wayfinding design is completed; regular course closure times established; year- round event and concert programming is underway Metric: the N/S trail will be completed and open to the public; the wayfinding plan will be submitted to the City for approval; additional community events will be scheduled per year per threshold established after 2- year Study Period; full programming of community and visitor use (meetings, weddings, etc.) Community Access Trail installation continues; N/S trail completed; wayfinding design is completed; regular course closure times established; year- round event and concert programming is underway Metric: the N/S trail will be completed and open to the public; the wayfmding plan will be submitted; additional community events will be scheduled each year; full progr#imning of community and visitor use (meetings, weddings, etc.) Community Access Continue trail improvements; install wayfinding, signage, and lighting; public access modes are well-defined and used Metric: Wayfinding and trail beacons (as approved) will be installed; new trails will be installed and open to the public per the plan generated in the Phase 1 Study Period Community Access Golf park grounds are a well - established community treasure Metric: To be determined in future collaboration with City Staff Community Access Golf park grounds are a well -established community treasure Metric: To be determined in future collaboration with City Staff . gLl(,!Recreation Uses Install miniature golf, ongoing programming connections with youth and family Metric: Miniature golf operations are fully underway; additional metrics are to be determined by the plan produced in Phase 1 Study Period Boil L)gttrier-slag Continue work, programs, & fundraisers with community groups; consult regularly with the technical advisory committee Metric: Continue to invite additional groups with the goal of adding at least 2 new partnership groups that will access the golf park per year; host at least 6 annual fundraising events for community groups and/or charities each year Expand Recreation Uses Install miniature golf, ongoing programming connections with youth and family 1 and the school district Metric: Miniature golf operations are fully underway; Youth 1 programs are established with the school districts; further recreational opportunities are evaluated and implemented based on study of success, cost, fees, likelihood Partnerships Continue work, programs, & fundraisers with community groups; consult' regularly with Parks, Recreation, Tree and Trails Advisory Board Metric: Continue to invite additional groups with the goal of adding at least 2 new partnership groups that will access the golf park per year; host'a minimum of 6 annual fundraising events for community groups and charities. Expand Recreation Uses Connections with school programs are fully underway; family - friendly programming is well -established Metric: To be determined by plans produced in Phase 1 Build Partnerships Continue to identify compatible associations and resources Metric: Continue practice of invitations to groups; increase annual fundraising events in number/amount raised Expand Recreation Uses Maintain existing established programs and continue to explore new ones Metric: To be determined in future collaboration with City Staff Build,Partner:shi Continue ongoing outreach efforts to groups in the community Metric: Maintain the practice of regularly inviting groups to utilize the facilities; continue to increase annual fundraising events in number/amount raised Expand Recreation Uses, Maintain existing established programs and continue to explore new ones Metric: To be determined in future collaboration with City Staff, school district and community groups Build Partnerships Continue ongoing outreach efforts to groups in the community Metric: Continue ongoing partnerships; continue to invite groups to utilize the facilities; continue to host fundraising events for community groups and charities. _Facilities Improvements Plan for welcome center renovation complete; capital campaign initiated and completed; revised food and beverage services Metric: The plan for remodel/expansion of the welcome center facilities will be completed, as part of the Capital Improvement Plan, as well as a funding plan. Grounds and Turf Expanded irrigation system upgrades; continue upgrade of tees, greens Metric: Turf management plan produced by the superintendent fully implemented; native plantings established Facilities; Improvements Complete the plan for complete restaurant renovation; capital campaign initiated and underway; revised food and beverage services Metric: The plan for remodel of the restaurant and event space will be completed. Fund raising for the remodel will be underway Prepare a capital improvements Plan Continue irrigation system upgrades; continue upgrade of tees, greens, and other turf management areas Metric: Turf management plan produced by the superintendent fully implemented; native plantings Facilities Improvements Undertake remodel and expansion of welcome center facilities; expanded food and beverage services Metric: Work completed on remodel/expansio n of the welcome center facilities and/or restaurant per plan produced in Phase 2 Grounds and Turf Native plantings are well integrated into the links course; low water use irrigation fully implemented Metric: Reduction in irrigation water consumption Facilities Improvements Continue facilities improvements as planned in Phase 2 Metric: Work completed on remodel/expansion of the welcome center facilities and/or restaurant per plan produced in Phase 2 Grounds and Turf Continue to maintain and improve the grounds Metric: A revised and updated turf management plan will be produced Facilities Improvements Continue facilities improvements as planned in Phase 2 Metric: The two floors of the restaurant and event space are in active use. Grounds and Tur Continue to maintain and improve the grounds Metric: A revised and updated turf management plan will be produced Environmental Stewardship Continue expansion of prairie and native plantings; implement sustainable turf management practices; seek certifications Metric: turf & grounds management with sustainable practices to be implemented Technical Advances Target full fleet of electric equipment and carts; apply for a solar grant Other Capital Improvements City installs playground; temporary amphitheater in use; explore permanent amphitheater and driving range construction options Environmental Stewardship Continue expansion of prairie and native plantings; implement sustainable turf management practices; seek certifications Metric: Implement Turf & grounds sustainable management practices Technical Advances Use of Electric carts and other electric equipment as practical and proven through National golf course experiences. Use solar panel donation to install solar panels for golf cart charging as well as other electronic equipment as determined. Improvements A Park Master Plan and Capital Improvement Program will be prepared by year end 2028 that will guide Park capital improvements, investment needs and revenue sources Environmental Stewardship Continue native plantings; utilize model sustainable turf management practices Metric: Continue turf & grounds management with sustainable practices. Revise management plan if needed. ....Technical Advances All electric equipment; install solar array if the grant is received; solar trail lighting Other Capital Improvements Construct amphitheater and driving range facilities per plan (dependent on the future of the driving range) Environmental Stewardship Links course and associated plantings are well established; Continue with sustainable, organic, turf management practices Metric: Continue turf & grounds management with sustainable practices. Technical Advances Continued technical innovations and upgrades Other Capital Improvements To be determined in future collaboration with City staff Environmental Stewardship Links course and associated plantings are well established; Continue with sustainable, organic, turf management practices Metric: Continue turf & grounds management with sustainable practices. Technical„ Advances Continued technical innovations and upgrades Other Capital Improvements Update the CIP and business plan and identify future capital projects °ordable Housing If/when the City proceeds with exploring housing on the Blaine St. parcel (timing not tied to this phasing schedule), City- and Friends will collaborate on the best site design for the course and housing and the connection between them 4&rdabl ffm-uft Friends have conducted our due diligence in assessing the impacts of housing on maintaining a competitive 9- Hole Course and our financial sustainability. Our assessment is included in the Business Plan fordable Housin As funding is available, The City and Friends continue to work collaboratively on the implementation and potential installation of course changes and housing site planning per the terms of the lease. rl ord ale Housing Once city housing is funded and moving forward, the leased Premises will be amended to reflect the new boundaries for housing on the Blaine Street parcel. A ordable Housing A decision on housing will be made during previous phases. LEASE (PORT TOWNSEND MUNICIPAL GOLF PARK) Between the City of Port Townsend and the Friends of the Port Townsend Golf Park January 1, 2024, to December 31, 2046 THIS LEASE is entered into by and between the City of Port Townsend, a Washington municipal corporation ("City"), as lessor, and Friends of the Port Townsend Golf Park, a Washington nonprofit organization ("Friends"), as lessee. This Lease is intended to define the rights and responsibilities of the parties regarding the Golf Park leasehold interests and associated personal and public property. AGREEMENT 1. Lease. Subject to the terms of this Lease, the City hereby leases to Friends all of the lands and premises comprising the nine -hole Golf Park ("Golf Park"), the area marked "effective Golf Park boundary" on the map attached as Exhibit A ("Leased Premises"); provided that when housing is established on the southern -most parcel (949818301) of the premises, the boundaries of the `Premises' for the lessee shall be adjusted and that portion on which housing is located will be removed from the Friends Premises by an amendment to this lease. (ref Exhibit H) 2. � I This Lease shall commence on January 1, 2024, and shall extend through and expire on December 31, 2025. During this initial 2-year period, the Friends will prepare a Business and Capital Investment Plan for long-term operations including a report on the completion of the Phase 1 milestones and metrics (Exhibit G) The report will be provided to city staff by August 1, 2025. The Friends and city staff will review this report and consider additions or modifications to the metrics. Upon successful completion of the phase one metrics and review and analysis by the city staff that the Business Plan demonstrates the golf course will be a financially sustainable operation, the Friends shall have the right to a written notification from the City before October 31, 2025, to extend this lease for an additional twenty-year term. Should the Friends fail to meet the phase one metrics, the City may terminate the lease effective on December 31, 2025. 3. . In consideration of the many public benefits that the Friends will provide throughout the term of this lease, and with the understanding that the Friends as a non-profit organization will work in collaboration with the City to improve the Golf Park property, enhance native plantings, expand recreational opportunities, and increase public access to the Golf Park property, there will be no rent paid to the City for the initial two-year term of this lease. Beginning in year 3 and continuing throughout the Phase 3 period of milestones as defined in Exhibit G, the rent due to the City shall be 4% of gross receipts. (The Phase 3 milestones include a period of significant capital investment in the Golf Park by the Friends.) Beginning with Phase 4 in 2036, and assuming gross annual receipts reach $500,000 (in 2024 dollars) by 2036, the rent shall increase to 6% of gross receipts for the remainder of the lease, provided however, that should the Friends reach $1,000,000 in gross receipts (in 2024 dollars) at any time after 2036, the rent (Section 3 of the Agreement) shall be reopened to Page I of 21 City/Friends of Port Townsend Golf Park 2024-2046 negotiation for increased rent for the subsequent years of the lease based on the financial model and forecast submitted by the Friends and with the intent of providing for the continued successful operation of the Golf Park property, as well as for sharing of any significant net revenue generated. a. Gross Operating Receipts. The Friends shall receive all rent, payments, donations, and revenue generated from all activities and any sub -leases within the premises. "Gross Operating Receipts" for purposes of calculating rent payments shall mean total income generated from the operation of the Friends' facilities within the Golf Park including daily annual course and user fees, driving range and cart rentals, subleases, concession agreements, facility rentals, direct food and beverage sales completed by Friends (third party sales will be based on the rent charged to the third party), and the sale of other goods and services from or on the Premises. Gross Operating Receipts shall exclude, without limitation, donations, public and philanthropic grants, sponsorships, in -kind gifts, and Lodging Tax allocations or other public funding. b. Leasehold Excise Tax: The parties recognize that Washington State law may require that the Friends pay leasehold excise tax on the fair market value of the lease which the parties agree is $10,000 per year for the initial two-year term in which no rent is paid. The Friends will pay leasehold excise tax as if the rent were $10,000 per year unless they receive documentation from the Washington State Department of Revenue that the Friends are exempt from property tax. Capital Reserve Fund. Rent paid to the City will be placed into a segregated Golf Park capital reserve fund dedicated to fund capital improvement, including deferred maintenance projects and leasehold improvements, within the Golf Park Premises. The purpose of the Golf Park Capital Reserve Fund is to have resources available to plan and implement capital improvements to enhance the Premises for the public and for course users, and to help fund the obligations of the City as lessor and the Friends as lessee for their respective responsibilities in Exhibit F of the Agreement. Allowed uses of the funds include but are not limited to the following: a. Contracts for planning, architectural, engineering, legal, or similar services in support of the development of capital improvements for the Premises. b. Funds specifically allocated to deferred capital improvements including deferred maintenance and leasehold improvements. c. Expenses necessary to solicit and evaluate potential development proposals for the Premises. d. Matching funds for grants related to the development and/or improvement of the Premises. e. Other similar projects that improve the Premises for public uses d. Capital Investment Plan. The Parties shall be responsible for funding their respective shares of capital improvements, subject to the available funding of each party. The purpose of the Capital Reserve Fund is to supplement that funding. By August 1 of each year, representatives from Friends and the City shall meet to review the fund balance and capital investment priorities and will recommend which capital projects or deferred maintenance needs should be funded for the following year from the Capital Reserve Fund. Every five years the Parties shall prepare a Capital Investment Plan for the next ensuing five (5) years of the Lease Term with recommendations for capital priorities and funding to be submitted to the City Council. Page 2 of 21 City/Friends of Port Townsend Golf Park 2024-2046 4. Accounting Procedures. a. Accounting method. The Friends shall install and maintain a system of records and account of fees, gross revenues, expenditures, and other financial aspects of the Golf Park so that the accounts of fees and gross revenues can be readily ascertained. Accounting established for the Golf Course operation shall be maintained separately from the accounting system used for any other business operated by The Friends. b. Lns ection of records Upon reasonable notice, the City or its authorized auditors and representatives shall have the right at any time to audit, inspect and reproduce any of the Friends's accounts and all other business and payroll records related to the Golf Park and facilities. The Friends shall maintain and preserve all such records for at least six (6) years after the termination of this Lease. C. a g The Friends shall maintain adequate and complete records showing the total gross revenues from all sources of revenue from the Golf Park operation and shall deliver to the City Finance Director a quarterly report of such gross revenues on a form acceptable, together with the Friends's B&O Tax Report to the State of Washington Department of Revenue. The quarterly report shall also include the following: • Number of rounds sold • Number of rounds played • Number of season passes sold • Number of tournaments and participants • Number of fundraisers/events and participants • Public benefits provided, as reported on the metrics in Exhibit G • Hours of public access • Where possible, the number of people using public access • Number of volunteer hours The quarterly report shall be submitted to the City by the last day of the nextmonth following the end of the quarter, showing the accounting of gross revenues for the previous quarter. d. A1L)L)LL The Friends shall submit to the City an annual profit and loss statement for the entire operation of the leased facilities by March 30th of each year related to the preceding calendar year, commencing March 30, 2025. i. Public Benefits. A central element of this Lease is the identification of and the Friends' commitment to the ongoing provision of certain public benefits as described herein. The Public Benefits generally include, but are not limited to, the following: operation of the property as a Golf Park open and accessible to the public including trail access; provision of services and programs consistent with use as a 9-hole golf course; provision of new park facilities and programs (e.g., putt -putt, disc and foot golf) conducive to public enjoyment of the property; community events and Page 3 of 21 City/Friends of Port Townsend Golf Park 2024-2046 programming; restoration of the native prairie and other native areas; turf and grounds enhancements; and contributions to capital projects to better serve the public as provided herein; as well as provision of ancillary benefits to the Port Townsend community resulting from such operation of the Golf Park. The Parties acknowledge that the scope and nature of Public Benefits may change as the Golf Park matures. A Public Benefits Report outlining the progress of specified metrics identified in the Milestones and Phasing Plan (Exhibit G) shall be included as a part of the Annual Report from Friends to the City. 5. City IkUrgagglalivExcept for the financial reporting obligations and auditing procedures as provided herein, the City representative shall be the Facilities and Parks Manager who shall be generally responsible for administering and monitoring this Lease and ensuring compliance with its terms. The Friends shall first address all concerns to the Facilities and Parks Manager. For this Lease, all references to the Facilities and Parks Manager shall also include his or her designee. For all financial reporting obligations and auditing procedures, the City representative shall be the City's Finance Director or designee. 6. Gencral Duties and Responsibilities of the Friends. The Friends agree to: a. Provide all services consistent with federal, state, and local law and not discriminate based on any protected class. b. Increase access to the golf parkland to the general public by Friends' phasing plan (see Exhibit G). c. Have knowledge and understanding of the principles and practices of Golf Park management and implement and utilize such principles and practices in the operation of the leased course and facilities. d. Cooperate with the Facilities and Parks Manager or his or her designee. e. Furnish the personnel, material, supplies, equipment, services, supervision, and administration necessary to: f. Operate the Golf Park and driving range including collecting all fees, scheduling tournaments, arranging reservations, sending golfers to the tee, starting golfers in proper intervals, renting golf carts, and any other activities necessary for the Golf Park operation. g. Open the Golf Park and facilities daily as necessary to adequately serve the public using the Golf Park. The specific hours of operation may vary with the season and weather conditions. h. Regulate the play and conduct of all persons who are accessing and using the golf facilities on the Golf Park during the hours the Golf Park is open for golf play. Page 4 of 21 City/Friends of Port Townsend Golf Park 2024-2046 i. Maintain a safe environment (by standard protocols for golf courses) at the Golf Park facility to prevent injury to workers, Golf Park users, and the Golf Park and restaurant patrons. j. Collect all fees and record all transactions for green fees and other fees. k. Provide competent personnel necessary for the operation and maintenance of the Golf Park and facilities, supervise their work and pay for their services at the Friends's sole expense. 1. Maintain the course itself and facilities in the same or better condition existing at the commencement of this Lease. m. The Friends will be responsible for the repair and maintenance of the irrigation system. n„ Not commit, permit, or allow any nuisance, waste, or injury in or upon the Golf Park, facilities, or any portion thereof, nor permit use of the Golf Park for any illegal or immoral purpose. Pro shop operation. The Friends shall be responsible for the operation of the pro shop. p. Restaurant/food service. The Friends will be responsible for the reasonable operation, management, and supervision of food and beverage services in the restaurant and/or clubhouse either directly or through a third -party contract. The Friends may provide food and beverage services at other locations throughout the Golf Park, by the allowances of the food service and state liquor licenses held either by the Friends or through a third -party contractor. q. The Friends shall use and maintain the premises, buildings, and other improvements solely to operate, manage, maintaining, and preserving a municipally owned Golf Park facility consistent with the Friends's goals and phasing plan; of operating the 9-hole golf course and ancillary facilities; and for increasing access to the parkland, including events and activities, and no other purpose without the City's written permission. r„ The Premises shall be operated by Friends under the identifying name of Port Townsend Golf Park, provided that Friends shall be entitled to use or operate under such names, brands, or graphic logos Friends deems in the best interest of its marketing and promotion of the premises, provided any signs to the property indicate the name of the property remains Port Townsend Golf Park. s, The Friends will meet with City staff every quarter to coordinate operations and will provide an annual report to the City Council. t. The Friends are responsible for the operation and maintenance of any capital improvements made by the Friends. 7. ' >, kManagrement ' act"factoi-v CgrtifioliM. The Friends agree to Page 5 of 21 City/Friends of Port Townsend Golf Park 2024-2046 operate and maintain the Golf Park and facilities by industry best management practices. 8. Maintemince. a. The Friends recognize that the Golf Park is surrounded by residential neighborhoods and homes and agree that the City's noise ordinance will be followed when performing all activities. b. That a full-time experienced Certified Golf Course Superintendent or equivalent be on staff and overseeing operations, or that progress toward attaining certification by the course superintendent be underway. c. ., " F rk greeils, e., ., . ,w l d (1) The City acknowledges that the Friends will minimize mowing and incorporate natural lawn practices as much as feasible to keep the greens, tees, fairways, and roughs playable. (2) The Friends shall make applications of fertilizer as required for the fairways, tees, greens, and roughs. The Friends will test the soil for fertility no less frequently than annually. The Friends shall notify the City of the soil test results and follow any recommendations in the test reports. Fertilizer shall be applied at agronomic rates. (3) The Friends shall apply a top -dressing material to all greens during the annual golfing season. (4) All greens shall be verticut as needed during the annual golf season. All greens shall be aerified and sanded once or twice during the annual golfing season. (5) The cups and tee markers shall be repositioned twice weekly during the annual golfing season or as play and weather conditions dictate. (6) Each sand trap shall be edged or trimmed no less than two (2) times during the annual golfing season. Adequate sand depth will be maintained in the sand traps. (7) The Friends shall mow, fertilize, and maintain in good appearance all grounds and plantings around the clubhouse. d. Herbicides. f� tf t�gicidcs,. p�e� ic.ldcs, and cliemical.s othermthan fertilizers.. For all applications, the Friends shall: (1) Provide to the Facilities and Parks Manager a list of applications including EPA registration numbers, material safety data sheets, and the name(s) and address(es) of the person(s) who make(s) the application. All fungicides, Page 6 of 21 City/Friends of Port Townsend Golf Park 2024-2046 pesticides, and chemicals shall be applied by a person with a certified applicator's license with proper public notification and at minimal feasible levels. (2) Provide notification to the Facilities and Parks Manager in advance of all applications. (3) Post the Golf Park with signs approved by the Facilities and Parks Manager in advance of the application and for 24 hours after the application or for as long as the chemicals remain active, at the entrance to the Golf Park. (4) Be responsible for appropriate and safe storage of all herbicides, fungicides, pesticides, and chemicals by local, state, and federal laws. (5) Apply all applications by all applicable standards and by a certified applicator as required. (6) Assure that no herbicides, fungicides, pesticides or other chemicals discharge directly or indirectly into the Golf Park pond and its buffer as shown on the map in Exhibit D, and the native plant preserve. e. Applicator Cq liance; The City shall have the option of checking applicator compliance through the State Department of Agriculture Pesticide Management Division or any other State division with jurisdiction over pesticide control and management. f. l_ liniiii atiori/r diictic)n ill (11cuse of"cheinicals. The parties acknowledge that there is a strong public interest in, and support for, reducing and eliminating the need for the use of fertilizers, herbicides, fungicides, and all other noxious chemicals and that the City desires to work toward such reduction and elimination. The Friends agree to work with the City in good faith and become knowledgeable in alternative, environmentally preferable methods of maintaining the Golf Park. g. Other maintenance tasks. The Friends shall also be responsible for the following maintenance tasks: (1) Incidental parking lot and driveway cleanup. (2) Routine maintenance and janitorial services for the clubhouse pro shop and any and all food service operations and keeping the same in a clean and satisfactory condition at all times. (3) Repair/replacement of all lights. (4) General garbage/trash pickup. Page 7 of 21 City/Friends of Port Townsend Golf Park 2024-2046 (5) Cleaning/maintenance of restroom facilities. (6) Maintenance of any buildings, sheds, and cooking equipment and facilities. (7) Maintenance of all equipment associated with or used by the Golf Park operations. (8) Maintenance, monitoring, and repair of all service lines, main lines, and sprinkler heads for the water irrigation system. This includes providing new or replacement parts. (9) General landscaping maintenance. The Friends may perform selective pruning and removal of trees subject to permits, to improve the course of play and safety of the golf course and to ensure the health of greens and tees, as well as removal to facilitate the transition to a `Links' style course as the course was originally configured. The Friends will not remove any tree over 12-inch caliper at breast height without the prior written approval of the Facilities and Parks Manager, which shall not be unreasonably withheld. The Friends will replace any removed trees that with at least two healthy trees. Replacement tree size and type must be approved by the Facilities and Parks Manager. Tree replacement may be at other locations around the golf park, and replacement trees can be banked for credit for future removed trees. The Friends will be subject to any tree code or permits needed. As part of the business and management plan that will be prepared during the first two years of operation, the Friends will address tree removal and new landscaping necessary to realize the objectives of improved maintenance and the transition to a Links style course. h. The Friends, at its sole cost and expense, shall provide all equipment and supplies necessary for the proper maintenance of the Golf Park and facilities, except as set forth in this Lease. . The Friends shall notify City of any hazardous conditions that become apparent to the Friends or its employees. Attached as Exhibit F - Table of Assets and Responsibility is a list of assets and a table showing responsibility for their capital and routine maintenance. The table is illustrative only, and in the event of a conflict between the table and this Lease, the terms of this Lease control. 9. Citv Reswnsibilitim The City agrees to the following maintenance and repair responsibilities: a. The City will maintain the structural aspects and systems of the clubhouse and other Page 8 of 21 City/Friends of Port Townsend Golf Park 2024-2046 existing buildings, including the two sheds (for example, the roof, foundation, and exterior walls, and heating, electrical, and plumbing systems), except that the Friends shall be responsible for incidental maintenance and repairs (for example, replacement of faucet washers, etc.), and damage caused by the Friends or the Friends's customers (for example, damage to carpet from golf shoes). The City shall be responsible for periodically replacing the carpet (see Exhibit F -Table of Assets and Responsibility). In the event of damage to the clubhouse or other buildings from fire or casualty, then the same shall be repaired by the City to the extent of insurance proceeds payable to the City, and the City shall promptly repair, restore, and rebuild the clubhouse or other buildings in the same condition as it was immediately prior to the damage or destruction. Nothing prevents the City at its cost from upgrading the clubhouse in such a situation, as determined in the sole discretion of the City. b. The City will maintain the native plant preserve signs, Chief Chetzemoka statue, and cicmohan Trail signs and features. c. The City will be responsible for reasonable capital improvements and maintenance to the driveway and parking area (but not incidental cleanup which is the Friends's responsibility.) The City will be responsible for and maintain the water well. The City will be responsible to maintain the playground, if constructed, and any other facilities constructed by the City that are not a part of the Friend's leasehold interests. d. The City shall not be responsible for any interruption or disturbance of the Friends's business or occupancy because of City's maintenance or repair of any items or for any damage, injury, or loss for failure to maintain or repair of any items. e. The City, in collaboration with the Friends, reserves the right to continue to explore and select an available location for other limited municipal purposes, provided that any such location will not be within the area set aside for future housing (Exhibit H); will not inhibit other public recreational opportunities planned for the Golf Park by the Friends; will not impact the golf course operations; and will not restrict or hinder the Friends' ability to operate a successful business model for the golf course operations nor any other facilities operated by the Friends. City responsibilities are subject to availability of funds as determined by the City. 10. '" In addition to the above, the City has the right to make whatever capital improvements it deems necessary or desirable at any time without expense to the Friends, in accordance with and to enhance the uses described in the 22-year Phasing Plan for the Golf Park. Before making any such improvements, the City shall meet with the Friends to discuss the effect of the improvement and the making of such improvement upon the Friends's operation of the Leased Premises. The Friends shall make itself available for such discussions. The City shall make reasonable efforts to minimize and limit any adverse effect of any such improvement or the making of such improvement upon the Friends's operation of the Leased Premises. However, even if reasonable inconveniences or interruptions of the Friends's operation of the Golf Park occur because of the City's making any capital improvement, the Friends shall not be relieved of any of its obligations under this Lease. The City shall not be liable to the Friends for any reasonable interruptions of, or costs or damages to, the Friends's Page 9 of 21 City/Friends of Pori Townsend Golf Park 2024-2046 operation that may result from the City's making any capital improvements, whether the capital improvements are made directly to, on, or about the Leased Premises. a.11ousing Ilan for the southern parcel 949818301 . The Parties acknowledge that the City desires to plan for and construct housing on the southern -most parcel of the Premises as conceptually illustrated in Exhibit I. The City reserves the right to use that area for future housing as part of the lease. It is also recognized that there are funding, sequencing and timing considerations for the Friends that the housing construction triggers as it involves realigning the course layout, reestablishing turf and greens, and construction of alternative driving range facilities. The Parties agree that it is in the interest of both parties to develop a project design, sequencing and funding solution that addresses the needs of both parties. To that end, the Friends and City agree to work cooperatively with the Friends' course designer and the City's housing and site plan designer to develop a conceptual site plan that incorporates housing within the boundaries of said parcel and also develops a course layout option that preserves a competitive 9-hole golf course site plan. The City shall be responsible for the funding of any and all housing site and development plans. Following, or in conjunction with, the conceptual site plan, the parties will work cooperatively to prepare a Capital Improvement and Funding Plan for the relocation and installation of these Golf Park facilities or improvements to be in alignment with the plan. The funding for any Golf Park or course modifications shall be eligible for funds from the capital reserve fund established in section 3.0 above. Once the City has initiated a site development plan, the City and Friends shall mutually develop a sequencing and implementation plan, which will provide the Friends with a minimum of two years to make course changes while at the same time keeping the course operational and open to the public during that period. 11. Ifflorovenlent& a. " Nv1igr4 : " pDuring and after the term of the Lease, the City shall retain underlying fee title, interests and ownership of the Golf Park premises and all existing facilities and any facilities constructed in the future. All improvements upon the premises, and all improvements made and buildings and structures constructed shall become the property of the City immediately and shall be surrendered to the City upon termination from whatever cause or upon cancellation of the Lease, in good condition (reasonable wear and tear excepted). Notice. During the term of this Lease, the Friends shall give written notice to the Facilities and Parks Manager in advance of any proposed improvements, including capital improvements, to the premises, grounds, buildings or structures covered by this Lease, or of any proposed new buildings and facilities. No such improvement may be made before the written consent of the Facilities and Parks Manager, who may require plans and specifications depending on the extent of improvements, and may require approval of the City Council. The City shall not unreasonably withhold consent for such improvements that conform to the phasing plan and upon the Friends's Page 10 of 21 City/Friends of Port Townsend Golf Park 2024-2046 compliance with the provisions of this Lease regarding contracting for work and services, including, as necessary, permitting, public bidding, and prevailing wage requirements. The Friends may, at its own cost and expense, make interior alterations and capital improvements to the buildings in an amount not to exceed $50,000 per building without the consent of the City for such things as partitions, doors, cabinetry, and appliance installation, and may make golf course improvements such as moving and rebuilding tee boxes, greens and other improvements to the grounds. Any alteration that requires structural components of the buildings require advance written approval from the City. c. Permits. It shall be the Friend's responsibility to prepare design plans as needed and to obtain any permits, as applicable, for any such improvements and/or capital construction, 12. Fundraising. The Friends recognize its distinct status as the official nonprofit for the Golf Park property. Accordingly, Friends reaffirms its responsibilities to raise funds for underwriting general operations and programs and for capital improvement projects within the Premises. The parties acknowledge that it is in their mutual interest to develop a cooperative fundraising strategy. The City and Friends shall meet annually with the City representative in advance of the City's budget planning process and before grant application deadlines, to assess if any projects or programs being considered on the leased premises could be eligible for public funding and whether or not a project or program may be submitted for its funding consideration and how the parties may work cooperatively on grant applications that benefit either party. The City may apply for other grants that the Friends may not be eligible for and the parties can mutually agree on the type and amount of local matching funds to be provided by the Friends. 13. . g oLralljlThe City has the right to design and construct mitigation and storm drainage facilities in the general area of the Golf Park pond. The City retains the right to use the Leased Premises during the construction and maintenance of such facilities and will not be held responsible for any disruption of operations. The Friends shall not encroach on the pond or its associated buffers, as shown on the attached Exhibit D, in any manner unless authorized by the City and the State Department of Fish & Wildlife, except that The Friends are authorized and required to pick up and remove trash from the pond and pond area with no damage to the area. The Friends shall comply with all applicable state, federal or local statutes, regulations, and ordinances, including the State Department of Fish & Wildlife rules and regulations. To the extent that the State modifies or changes the buffers described in Exhibit D, the parties agree that the state identification of the appropriate buffers shall control. The Friends are allowed to trim vegetation in the wetlands buffer area as a continued maintenance practice to maintain proper sight lines for safe play. Vegetation shall be cut using an arm -riding lawn mower or by hand to a height no less than 3 feet. The Friends can request the City to trim vegetation in the wetland buffer area if the Friend's efforts to maintain site lines are not successful, but no more than once per year. The allowed area for vegetation trimming is identified in Exhibit E. Page 11 of 21 City/Friends of Port Townsend Golf Park 2024-2046 14. ]Ngjjjg 1111atit ErLsg,pX. The native plant areas as legally described in Exhibits C-1 and C- 2 attached to this Lease are understood to be preserved areas of native prairie plants and foliage. The Friends agree concerning such areas as follows. a. The public shall generally have access to these areas, so long as they do not interfere with or obstruct the operation of the Golf Park and the use of the Golf Park for playing golf. b. The Friends shall not in any way or manner disturb the areas.. c. The Friends shall not do or perform any maintenance in or upon these areas without the written consent or direction of the Facilities and Parks Manager. The City shall be responsible for clearing trash from these areas. d. The Friends shall not plant any trees or tall shrubs or do any other act, which would shade the areas from the south. e. The Friends shall not directly apply in or upon the areas any herbicides, pesticides, or fertilizers, or water the areas. f. It is understood and agreed that the reserve areas shall be maintained and under the exclusive control of the City, or its employees, contractors, or other parties under the direction of the City, and shall be available for viewing by members of the public, as outlined in this section. g. The Friends will collaborate with the Native Plant Society, which contractually maintains this land, to recognize, preserve, and expand the native prairie as is feasible. 15. Utilities, a. Wgter scrvige. (1) Proyisipn_gf,watcr, The City has installed a water well at the golf course to provide an alternative source of water supply in the event of an emergency that results in the loss of water from the City's main source of supply as well as to serve as the source of supply for irrigation water for the golf park property. This non -potable well irrigation water reduces the need to use city -treated drinking water for irrigation purposes. The City agrees to provide irrigation water to the Golf Park via the water well at the golf course as a primary supply; except, that the City reserves the right to restrict and/or eliminate water service whenever the City, through its Public Works Director, deems it necessary for the public health, safety and welfare in the City's role as water purveyor. Notwithstanding this right to restrict or eliminate water service, the City acknowledges the implications of eliminating water service at dry times of the year and directs the Facilities and Parks Manager to work with the Friends and make all reasonable efforts to avoid permanent damage to the greens; however, in no event shall the City be liable for any such damage. Page 12 of 21 City/Friends of Port Townsend Golf Park 2024-2046 (2) Ljg r r;� J ) i. The Friends agree to work towards water conservation or reuse to the greatest extent possible. (3) Wgter Char es. The city will provide a maximum of 9,000,000 gallons of water annually and pay for the electricity to run the well at no charge to the Friends for the first two years of the lease, in consideration of the public benefits provided by the Friends and in the establishment of plantings. Beginning after the two years, the Friends and the City will split the cost of water 50/50 for the next five years. Following these five years, the Friends will pay for all irrigation water use at the irrigation well rate of up to 9,000,000 gallons and the utility costs to run the pump. The City will provide the Friends monthly water consumption reports so the Friends may monitor use. The Friends agree that once 7,000,000 gallons of irrigation water have been consumed in a calendar year, irrigation may be reduced to tees and greens only to mitigate water use. If water consumption for irrigation is projected to exceed 9,000,000 gallons per calendar year the Friends will notify the Facilities and Parks Manager to negotiate how best to accommodate the additional use and cost. If the Friends and the Facilities and Parks Manager cannot agree, the decision will be made by a mutually agreed arbitrator, which decision shall be final. The parties further agree to revisit that maximum amount as necessary and revise it if the City deems it necessary due to its obligations as water purveyor. The Friends shall pay for all water utility services to the clubhouse at the current commercial rates. b. titilitl s. The Friends shall pay all other utility charges, including electricity, telephone service, gas, sewer, storm drainage, potable water, and trash collection. 16. luw2cglWn, w . The City shall have the right to enter and inspect the premises during the duration of this Lease during normal hours of operation. The Friends shall provide a copy of the key to the Leased Premises to the Facilities and Parks Manager and shall not change the locks without prior notice to the City. Absent emergencies the City shall provide the Friends with 24 hours' advance notice of visits to non-public areas of the Golf Park premises and facilities. 17. a The parties agree and acknowledge that The Friends is a non- profit corporation in the State of Washington and not an agent or employee of the City and that no liability shall attach to the City because of the acts or omissions of the Friends, its employee's agents, or assigns. The Friends shall have no authority to execute agreements or to make commitments on behalf of the City, and nothing contained in this Lease shall be deemed to create the relationship of employer and employee or principal and agent between the City and the Friends. 18. The Friends agree to be responsible for the standards of performance of Page 13 of 21 City/Friends of Port Townsend Golf Park 2024-2046 any subcontractor. The Friends agree to assure that the work or services performed by any subcontractor shall satisfy the terms of this Lease. The Friends agree that no subcontractor shall relieve the Friends of any obligation under this Lease. All subcontractors shall first be approved by the Public Works Director or as provided in Paragraph 23 (Assignments and Encumbrances). 19. .; i � Q. As an independent contractor, the Friends acknowledge that it is responsible for payment of any local, state, or federal taxes or fees concerning the Friends' agents and employees, any taxes or licenses applicable to the Friends's business activity at the Golf Park and facilities, and all taxes levied upon the leasehold interest in the lease premises or the structures, improvements or other property on the premises. The Friends shall pay all license or permit fees required by local ordinances or state or federal law. 20. N2 J'artnembip, It is understood and agreed that nothing contained within this Lease shall be construed as creating or constituting a partnership or joint venture between the parties. 21. CgingliapEg witbLaws, The Friends shall promptly comply with all laws, orders, and regulations of federal, state, and local laws, ordinances, and codes and shall save the City harmless concerning any damages arising from any tort done in performing any of the operations embraced by this Lease. The Friends shall at all times comply with all provisions of the rules and regulations issued thereunder and shall save and hold the city harmless from any claims, actions, demands, or expenses arising out of such legislation, rules, and regulations. The Friends covenants and agrees that it has not used any chemical, including but not limited to herbicides, pesticides, and fertilizers, that is not approved for such use by local, state, and federal regulations and that those chemicals have been applied and/or disposed of in the manner required by such regulation and in compliance with the manufacturer's specifications and recommendations. 22. Indemnifigati2n. The Friends shall defend, indemnify, and hold harmless the City, its officers, officials, employees, and volunteers from and against any claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of the Friends' use of Premises, or from the conduct of the Friends' business, or from any activity, work or thing done, permitted, or suffered by the Friends in or about the Premises, except only such injury or damage as shall have been occasioned by the sole negligence of the City. The City shall defend, indemnify, and hold harmless the Friends, its officers, officials, employees, and volunteers from and against any claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of the City's negligence, including uses of the Premises by activities on the property that are not the Friend's direct activities. Items that are examples of non -Friend's activities will be any community garden, play structure, walking trail corridors, or other businesses or non -profits that are co -located on the Premises. In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Friends and the City, its officers, officials, employees, and volunteers, each party's liability hereunder shall only be to the extent of Page 14 of 21 City/Friends of Port Townsend Golf Park 2024-2046 each party's negligence. The parties agree that the City desires to install additional facilities for the general public at the Golf Park. The parties agree that when and if the City installs additional facilities, the parties will execute an addendum to this agreement for the specific roles and responsibilities regarding City -installed facilities. 23. Insurance. The Friends shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Friends's operation and use of the leased premises. No Limitation. The Friends's maintenance of insurance as required by the Lease shall not be construed to limit the liability of The Friends to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. b. Minimum or Insurance. The Friends shall obtain insurance of the types described below: (1) Commercial General Liability insurance shall be written on the Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City shall be named as an insured on the Friends's Commercial General Liability insurance policy using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. (2) Property insurance shall be written on an all-risk basis. c. Minipjgin Am 'gunts ok"Insurance. The Friends shall maintain the following insurance limits: (1) Commercial General Liability insurance shall be written with limits no less than $2,000,000 for each occurrence, $2,000,000 general aggregate. (2) Property insurance shall be written covering the full value of The Friends's property and improvements with no coinsurance provisions. d. i a [11-2vi5i2ns, The Friends' Commercial General Liability insurance policy or policies are to contain or be endorsed to contain, that they shall be primary insurance concerning the City. Any Insurance self-insurance or insurance pool coverage maintained by the City shall be more than the Friends' insurance and shall not contribute to it. e. AccgULaL)iJjJX ofln5urcEs,Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VIL Page 15 of 21 City/Friends of Port Townsend Golf Park 2024-2046 f.rilrc tits ) L`�. The Friends shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Friends. g. Waiver of sut2rog ItioIt. The Friends and City hereby release and discharge each other from all claims losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. This release shall apply only to the extent that such claim, loss, or liability is covered by insurance. h. ' ' ' ,. r '. The City shall purchase and maintain during the term of the Lease all-risk property insurance covering buildings on the Leased Premises for their full replacement value without any coinsurance provisions. i. Ng1jgofQ The Friends shall provide the City with written notice of any policy cancellation within two business days of its receipt of such notice. afl rg t a Mqitjtain Ins rn r c,. Failure on the part of the Friends to maintain the insurance as required shall constitute a material breach of this Lease, upon which the City may, after giving five business days' notice to the Friends to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 24. " The parties acknowledge and agree that the Friends may not assign, transfer, or sublease all or any part of this Lease, or the responsibilities, operations, or interests under this Lease without the express written consent of the City, as evidenced by a City Council Resolution and the signature of the City Manager, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, the Friends may contract with a third party for food, beverage, and restaurant operations, and various rentals and with a third party for events held on the premises. Additionally, it shall not pledge or allow the use of its interests in this Lease or any leasehold rights as security or collateral for any loans or debts of any kind or suffer to permit any mechanics' or material man's liens to be filed against the interest of the City. During the term of this Lease, the Friends shall not incur any debts associated with the operation of the Leased Premises, except for accounts payable for the ordinary operation of the Golf Park, without the prior written consent of the Facilities and Parks Manager. Any unauthorized assignment, sublease, transfer, debts, or attempted or actual use of rights under this Lease, or any leasehold interest as collateral or security for any loan by the Friends shall be void and shall constitute a breach of this Lease, entitling the City to exercise all remedies herein and as outlined in the Lease. At least sixty (60) days before any proposed assignment, transfer, or sublease, The Friends shall Page 16 of 21 City/Friends of Port Townsend Golf Park 2024-2046 notify the City in writing of the proposed assignment, transfer, or sublease, to allow the City to commence its due diligence and review of the proposed assignment, transfer or sublease. The Friends shall provide the City with information concerning the proposed assignment, transfer, or sublease, and in addition, shall provide information requested by the City (which the City shall endeavor to request within 20 days of the date first notified by the Friends), to allow the City to conduct is due diligence and review. The City shall use its best efforts to complete its due diligence and review within 60 days of the date notified by The Friends, unless for good cause the City needs additional time to complete its due diligence and review. Information the City will need to conduct its due diligence and review includes Golf Park experience of the assignee, transferee, and sublessee; ownership of the proposed assignee, transferee, sublessee (including principals); history of suits and acclaims; the most recent five years' year-end financial statements prepared and certified by a certified public accountant, including latest balance sheet and income statement. 25. Default /Termivatiol . Any or all of the following shall be considered events of default of this Lease: a. If the Friends fail to perform or default on any of terms of this lease by the City, or in the observance or performance of any of the covenants, agreements, commitments, or conditions contained in the Lease, and if any such default continues un-remedied or agreement to remedy has not been reached, for sixty (60) days after written notice from the City of the nature of such default or failure to perform has been mailed to the Friends; or b. If the Friends make an assignment of its property for the benefit of creditors or encumbers the property in violation of paragraph 23 herein; or c. If the Friends petitions any court to be adjudged a bankrupt; or d. If a petition in bankruptcy is filed in any court against the Friends; or e. If the Friends is judicially determined to be insolvent; or f. If the Friends is adjudged bankrupt; or g. If a receiver or other officer is appointed to take charge of the whole or any part of the Friends's property or to wind up or liquidate its affairs; or h. If the Friends seek a reorganization under any of the terms of the Federal Bankruptcy Code, as amended, or under any insolvency laws; or i. If the Friends admits, in writing, its inability to pay its debts as they become due; or J. If any final judgment is rendered against the Friends and remains unsatisfied for thirty (30) days from the date on which it shall become final; or k. If the Friends fail to maintain the insurance required herein and/or fail or refuse to provide the City with certificates of insurance as required herein; or Page 17 of 21 City/Friends of Port Townsend Golf Park 2024-2046 1. If the Friends abandon the golfing facilities; or m. If the Friends fail to provide the City with the required reports per Paragraph 4; or n. If the Friends fail to implement the phasing plan and meet the metrics in general accordance with the Friends phasing plan as shown in Exhibit G, provided that written notice and the ability to cure have been met under item a. above. 26. Liens. Except as authorized and provided for in Section 11 Improvements above, the Friends shall not allow or authorize improvements to the Leased Premises without the prior written consent of the City. The Friends agree that it shall pay, or cause to be paid, all costs and expenses for work done and for materials delivered to the premises and shall keep the premises and all buildings and improvements free and clear of any mechanic's materialman's and other liens for work or labor done, services performed, or materials furnished for or in connection with The Friends's operations under this Lease. The Friends' failure to perform under Paragraph 24 shall constitute a breach and default under the terms of the Lease. 27. Elffiffegnigilt,The parties shall have all remedies available under law and equity in the event of breach or default of this Lease. 28. rn 'y s' Egg& In the event any action is brought by either party to enforce the terms of this Lease or for breach of this Lease by the other party, the parties agree that the non -prevailing party shall pay to the substantially prevailing party reasonable attorneys' fees (including the reasonable value of services rendered by the City Attorney) and costs and disbursements incurred by such party. 29. P!l na;l 5 rinair]atittn. During the term of this Lease, neither The Friends nor its agents, subcontractors, or employees, shall discriminate based on race, creed, color, national origin, families with children, sex, marital status, sexual orientation, age, honorably discharged veteran or military status, genetic information, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability in employment or application for employment or in the administration or delivery of services or any other benefits under the Lease. The Friends shall comply with all applicable federal, state, or local laws, executive orders, and regulations. 30. ArInlieable_LOA: Ve1j11e This Lease shall be governed by the laws of Washington State. The venue for any action under this Lease shall be in Jefferson County, Washington,. 31. fat MLdL_gr. Failure by the City to enforce any condition, requirement, responsibility, or provision of this Lease shall not be construed as a waiver of the City's right to subsequently enforce that condition, requirement, responsibility, or provision of this Lease, or to fully enforce any other condition, requirement, responsibility, or provision. 32. Ei it - ndments. This Lease as amended and its Exhibits represent the entire and integrated agreement between the City and the Friends. This Lease may be amended only by a written instrument signed by both the City and the Friends. Page 18 of 21 City/Friends of Port Townsend Golf Park 2024-2046 33. 1 J-Dresen tat.i j . ° -. For purposes of administration of this Lease, the representative of the City and the representative of the Friends are outlined in this section below. Any notice shall be delivered personally or may be mailed by certified mail, return receipt requested, to the other party. In the case of notice by mail, notice shall be deemed given on the date of postmark of the return receipt. CITY OF PORT TOWNSEND Facilities and Parks Manager 250 Madison Street, Suite 2R Port Townsend, WA 98368 Telephone: (360) 379-5096 Fax: (360) 385-7675 THE FRIENDS OF THE PORT TOWNSEND GOLF PARK 1948 Blaine Street Port Townsend, WA 98368 Telephone: (360) 385-4547 34. Suggg§sors and A ` » This Lease shall be binding upon the parties, their heirs, personal representatives, successors, and assigns, however, no assignment, transfer, or sublease is effective without prior written approval of the City as provided in Paragraph 23 -Assignments and Encumbrances. 35. Ct uacil._. Yt v-al. Reserved. 36. The parties warrant and represent to each other that they have had representation by legal counsel or have had the opportunity to be represented by legal counsel during all stages in the negotiation of this Lease. The parties further agree that they have participated in the negotiating and drafting of this Lease and stipulate that this Lease shall not be construed more favorably concerning either party. 37. Each individual executing this Lease on behalf of the corporation represents and warrants he/she is duly authorized to execute and deliver this Lease on behalf of the corporation and that the Lease is binding upon the corporation by its terms. 38. Upon termination of this Lease for any reason, the Friends shall surrender the premises and buildings (together with any alterations or replacements) in good order and in like condition and repair except for reasonable wear and tear. 39. tgrformance of Hjull; R a P City's agreement to this Lease is conditioned upon the Friend's complete performance of all terms and conditions of this Lease. The Friends stipulate and agree that the City may enter the premises to monitor The Friends' performance of this Lease and to familiarize the City with the operation of the Golf Park facilities. Absent In emergencies, the City shall provide The Friends with advance notice of such visits to the non- public areas of the Golf Park. Page 19 of 21 City/Friends of Port Townsend Golf Park 2024-2046 40. Nothing prevents the City, acting in its governmental capacity, from exercising power of condemnation under law to acquire The Friends's interest in the Lease. 41. ALhitrafion. Any controversy or claim arising out of or related to this Lease or the breach or alleged breach thereof shall be settled by a panel of three arbitrators one of whom shall be selected by the City, one by the Friends, and the third selected jointly by the first two arbitrators- the parties hereto agree that any decision of the arbitrators shall be binding upon both jurisdiction thereof. Any costs expenses and legal fees incurred in arbitration shall be awarded as determined in the course of the arbitration and may be awarded to the substantially prevailing party. The jurisdiction for any arbitration action shall be Jefferson County. 42. . 1 g,. AgreemCUts,, This Lease contains the entire agreement of the parties hereto concerning the leasing and use and occupancy of the Premises and use of the Property and no other agreement, statement, promise, representation, or understanding by any party hereto or any of their respective agents, representatives employees, or principals that is not contained in this Lease is hereby mutually rescinded and revoked and shall not be binding or valid. 43. QU Hggriagnialil . Except for the financial reporting obligations and auditing procedures as provided herein, the City representative shall be the Facilities and Parks Manager. This Lease supersedes and terminates in its entirety and any other agreements or leases between the parties. 44. *A » g This Lease shall be effective on January 1, 2024. 45. Other. a. Statue. This Lease does not include a statue of Chief Chetzemoka located on the Leased Premises, which the City may remove and relocate if the City determines it appropriate to do so. b. Either party may record this Lease, or a memorandum of Lease, at that party's sole expense. IN WITNESS WHEREOF, the City and the Friends have executed this Lease as of the date and year last written below. Page 20 of 21 Cily/Friends of Port Toivnsend Golf Park 2024-2046 CITY OF PORT TOWNSEND, Washiwtgton municipal corporation I City Manager, John Mauro Date w The FRIENDS of Port Townsend Golf Park, a Washington w wiprofit orgawiization By its Board of Directors President Robert L. Wheeler Approved as to Form: U City of Port Townsend, City Attorney Page 21 of 21 City/Friends of Port Townsend Golf Park 2024-2046 EXHIBITS A Map of Leased Premises 1 page B Easement portions reserved and retained by City 2 pages C Native Plant Area Legal Description Trace "A" & "B" 2 pages D Golf Park Pond Area Topography Map 1 page E Pond Vegetation Area Allowed to be Trimmed 1 page F Table of Assets and Responsibility 2 pages G. Timed Phasing for Public Access 3 pages H. Permanent Affordable Housing Area 1 page Page 19 o/21 City/Friends of Port Townsend Golf Park 2024-2046 Agreement EXHIBIT A Effective Golf Park Boundary EXHIBIT B The following portions of the premises are reserved for and retained by the City: 'rg rie [)IgLij Arms wo� Legally described as follows: See Exhibit C "Native Plan Area Legal Description Tract A and Tract B attached] 2. Road An easement, fifteen feet in width, running over the existing road across the Golf Park from Blaine Street to the Clubhouse, measured seven and a half feet on each side of the center line thereof. The City may go upon the property to locate stakes or other markers establishing the same. This easement is for the following purposes: a. Ingress and egress over, under, upon, and through said street for any public utilities; for access to the conference center and parking area by the public; for access to the prairie plant area described above; and for purpose of maintenance, repair, widening, and all or any other type of work upon said road, together with all slopes, cuts and fills and related work or improvement thereto; and for the exercise of all other rights of the City under this Lease. b. This easement is for the benefit of the City, its employees, contractors, and assigns, and all or any part of the public generally as determined by the City. The City may specifically grant utility easements to utility districts or companies. 3. Parhina Lot Eascuient. An easement in, over, under, upon, and through the entire area of the existing parking lot, for maintenance, repair, improvement or expansion, access to and maintenance of the well, and for the parking of vehicles in connection with the use and enjoyment of the conference center and any expansion thereof, and the prairie plant areas, to be used by the City, its contractors, assigns and all or any part of the public generally as determined by the City. 4. 13161dirig An easement seventy-five feet in width, encircling the entire new building to be constructed, as measured seventy-five feet from each outer wall, for future expansion of the building to be constructed on the premises, in, over, under, and upon the premises, together with the right to use adjacent areas for all construction, maintenance and repairs thereof. In the event the City elects to expand the building, including but not limited to, additional conference/meeting room area or facilities, that portion of the building and land shall be retained by the City in fee simple, and controlled and operated by it, unless the City and Lessee renegotiate and agree in writing upon rent and other lease terms for the lease of such additions to the Lessee. In the event such expansion is made, the easements set forth herein shall also serve the same for construction, maintenance, repair and the use and enjoyment thereof by the City, its contractors, assigns, and the public generally. 5. JAility Ejiscnic�. An easement in, over, under, upon, and through the entire Leased Premises, including but not limited to the pond, for construction, installation, maintenance, repair, use, and operation of all public utilities, including but not limited to water, sewer, electric, telephone, cable television, and stormwater drainage. Utilities shall be installed and maintained in a manner with minimum interference with the use of the Golf Park. Without limiting the foregoing, the City retains the right to use the existing pond and any expansion thereof for stormwater utility purposes, including but not limited to installation construction, maintenance repair, and use of a stormwater utility system in, over, under, upon and through said pond, together with all lines, ditches, trenches or culverts to and from the same to connect with city streets and facilities, and the operation of any pumps, equipment and other facilities necessary thereto. 6. Land directly north of the clubhouse, or a location near the clubhouse mutually agreed to, to install a nature play structure for the community. EXHIBIT C-1 Native Plant Area Legal Description Tract "A" A portion of the L.B. Hastings Donation Land Claim Number 39 in Section 2, Township 30 North, Range 1 West, Willamette Meridian, is described as follows: Beginning at the Southwest comer of Section 2 from which the West Quarter comer of Section 2 bears North 2°-02'-07" East, 2640.20 feet distant; thence along said Section line a distance of 486.80 feet; thence North 82°-46'-59" East, a distance of 1011.40 feet to the True Point of Beginning of Native Plant Area "A"; thence North 82°-47'-00" East, a distance of 83.93 feet; thence South 64°-07'-54" East, a distance of 129.02 feet; thence South 44°-35'-10" East, a distance of 89.91 feet; thence South 59°-42'-36" West, a distance of 162.30 feet to a point on the Northeasterly margin of the access easement to the City of Port Townsend Spring Valley Golf Park; thence Northwesterly along the arc of the curve, the center of which bears South 54°- 11'- 40" West, having a central angle of 36°-45'-12" and a radius of225.80 feet, a distance of 144.84 feet; thence North 72°-33'-32" West, a distance of 110.43 feet; thence Northwesterly along the arc of a curve, the center of which bears North 17°-26'-28" East, having a central angle of 8°-09'-09" and a radius of250.51 feet, a distance of 35.64 feet; thence North 64°-43'-03" East, a distance of 145.55 feet to the True Point of Beginning of Native Plant Area "A"; said Native Plant Area "A" having an area of 0.89 acres. Situated in Jefferson County, Washington. EXHIBIT C-2 Native Plant Area Legal Description Tract "B" A portion of the L.B. Hastings Donation Land Claim Number 39 in Section 2, Township 30 North, Range 1 West, Willamette Meridian, is described as follows: Beginning at the Southwest comer of Section 2 from which the West Quarter comer of Section 2 bears North 2°-02'-07" East, 2640.20 feet distant; thence along said Section line a distance of 368.59; thence North 88°-29'-53" East, a distance of 1071.37 feet to the True Point of Beginning of Native Plant Area "B"; thence North 71 °-52'-29" West, a distance of 62.45 feet; thence North 66°-48'-43" West, a distance of 63.36 feet; thence North 33°-26'-06" West, a distance of 31.06 feet; thence North 51°-36'-46" West, a distance of 36.91 feet; thence North 64°-01'-20" West, a distance of 39.54 feet; thence North 26°-47'-26" West, a distance of 45.28 feet to a point on the Southwesterly margin of the access easement to the City of Port Townsend Spring Valley Golf Park; thence Southeasterly along the arc of a curve, the center of which bears North 30°-0' - 16" East, having a central angle of 12°-33'-48" and radius of 265.51 feet, a distance of 58.22 feet; thence South 72°-33'-32" East, a distance of 110.43 feet; thence Southeasterly along the arc of a curve, the center of which bears South 17°-26'-27" West, having a central angle of 41°-42'- 02" and a radius of210.80 feet, a distance of 153.42 feet; thence South 88°-29'-53" West, a distance of 56.76 feet to the True Point of Beginning of Native Plant Area "B"; said Native Plant Area "B" having an area of 0.32 acres. Situated in Jefferson County, Washington. 00 N EXHIBIT E Pond Vegetation Area Allowed to be Trimmed EXHIBIT F Table of Assets and Responsibilities Ownership Responsibility for Responsibility capital expenses for routine maintenance All are Cities except All are Cities except as All are The as otherwise stated otherwise stated Friends except as otherwise stated Clubhouse Structural Ex. Painting Int. Painting The Friends [nterior alterations Mech., elec., plumbing From the wall in, Friends Walk-in cooler The Friends The Friends Carpet Hood vent/Fire Suppression The Friends System Standing Bar The Friends New (2004) Gas/Fuel Tanks and #2- see note #2- see note Pumps Car Shed The Friends Maintenance Building The Friends Parking Lot City, #3 - see note Irrigation System The Friends Service Lines City, #4 - see note Sprinkler Parts #5 - see note The Friends Control Boxes Existing fence Signage Landscaping (other than golf #6 - see note course greens, tees, fairways and rough) Well, pump, pumphouse l_ The City The City The City Annually, no later than August 15 (to allow time for City budgeting for planned improvements for the following year), the Friends and the Facilities and Parks Manager, or designees, shall meet to review and identify items needing structural or routine maintenance, to develop or update a schedule of items for maintenance and repair in the upcoming calendar year. For maintenance and repair items that the Friends identify should be accomplished by the City, The Friends shall notify the City in writing (fax, email, memo) of the item and the expected repair. The writing is to document the item for the City records and to allow the City to schedule the repair consistent with other City responsibilities and priorities. The Friends shall provide notice to the Facilities and Parks Manager. The foregoing written notice requirement does not apply in an emergency. Before the City response, The Friends shall take responsible steps to avoid loss or damage (for example, shutting off the water, or barricading the dangerous area). Notes #2 - The Friends are responsible for the proper disposal of tanks installed. The Friends are responsible for lubrication, painting, and routine maintenance of new tanks and pumps. #3 - The Friends are responsible for routine cleanup of the parking area. #4 - The Friends are responsible for incidental maintenance of service lines. #5 - All sprinkler parts, even if purchased by The Friends in the past, are owned by the City; EXCEPT, parts purchased by The Friends that are not installed as sprinklers or incorporated into the irrigation system remain The Friends, but are available for use and maintenance and repair. #6 - Routine maintenance includes regular removal of noxious weeds within the Golf Park area, including scotch broom, poison hemlock Exhibit G Lease Phasing and Milestones . ............... Phase 1: 2024-2025 Phase 2: 2026-2030 Phase 3: 2031 - 2035 Phase 4: 2036-2046 . . ........ ..................... 2-year Study Period 5-year milestones 5-year milestones 10-year milestones Business Planning and Investment and Full Major Capital Operation of Model Initial Public Access Implementation Phase Investments Phase Links Golf Park and Actions with Public Programs Public Access Underway Programs A Goals, Pqrk 0 erations (Loals p . .......... &1_411- ))eraflons 6ouls &tC _k (&grc(Cions Initial renovations and Undertake capital Continue targeted Links course becomes a improvements are improvements based on investment in course statewide model of the completed; maintenance business and investment improvements such that 9-hole course operations are underway; plans and phasing plans; the course is operated as needed equipment is operations team is fully in a destination links course secured; train operations place; volunteer programs staff & volunteers underway 'it!m.ane'al Plannin, ... Firlancial LIanniqg A('- . . ....... . . . ... ...... . . ...... h7nancial LtqLiq�yW-& Governance Governance Governance Governance Data collection and Implement marketing Marketing partnerships NP generates funds to tracking of operations; plan; new board members are fully developed and contribute to other prepare business and capital replace interim board; utilized; visitor packages community causes investment plan; develop ongoing fundraising; with hotels in place; marketing & fundraising capital campaign is annual financial plans; 2-year milestones are completed to fund phased sponsorships are secured; reached and a 20-year improvements annual charity events are commitment in place fully scheduled and underway Metric: Produce a business plan that projects financial Metric: To be Metric: To be determined Metric: To be sustainability on an determined by the by a business plan determined by a business achievable timeline and business plan submitted in submitted in Phase I plan submitted in Phase lays out the metrics for Phase Study Period I Study Period subsequent phases. . . ... . I Study Period . ........... . . . -.— i s]PaufJl%TTil r Aec S,"s C C)M'Ylonulddl�? Aeet"vs � E" l7cJY YIzl9 N�(.C,4,' fld'Ylonlft! t" �G '.5ef Improve community access Trail installation Continue trail Golf park grounds are a through near term continues; N/S trail improvements; install well -established successes; evaluate trial completed; wayfinding wayfinding, signage, and community treasure course play closure times; design is completed; lighting; public access install E/W trail; verify trail regular course closure modes are well-defined plan locations. Utilize the times established; year- and used driving range and welcome round event and concert center building to hold programming is underway seasonal concerts and events. The City, in collaboration with the Friends, reserves the right to continue to explore and select an available location for other municipal purposes, provided that it will not interfere with the area set aside for possible future housing, other recreational opportunities planned for the Golf Park nor hinder the Friends' ability to operate a successful business model for the golf course Metric: the N/S trail will Metric: Wayfinding and Metric: To be operations. be completed and open to trail beacons (as determined in future the public; the wayfinding approved) will be collaboration with City plan will be submitted to installed; new trails will Staff Metric: E/W trail will be the City for approval; be installed and open to installed and open to the additional community the public per the plan public; signage for the trail events will be scheduled generated in the Phase 1 will be installed; a plan for per year per threshold Study Period the layout of the N/S trail established after 2-year and subsequent trails will Study Period; full be produced; the golf programming of course will be closed to community and visitor use play for at least the (meetings, weddings, etc.) equivalent of 6 full days a year for public access; at least 4 community events will be held a year during first 2 years; produce a plan that sets thresholds for increasing community usage for metrics in sa1bse( uent pia�ases I __ .. _.. .............. Exnand Reervolion Uyc�v E'xpand Recreation t,Aes, .................. — E.Xnand Recreation Uses E.YJ �1�1 (Ases Design and fund miniature Install miniature golf, Connections with school Maintain existing golf-, continue and expand ongoing programming programs are fully established programs the cross country team and connections with youth underway; family- and continue to explore other uses; school and and family friendly programming is new ones family programs defined; well -established disc and foot golf are integrated into operations Metric: Disc and foot golf Metric: Miniature golf Metric: To be determined Metric: To be targets are installed to operations are fully by plans produced in determined in future allow for rounds of golf by underway; additional Phase I collaboration with City these user groups; plans for metrics are to be Staff additional programming determined by the plan will be produced produced in Phase I Study Period Bteikl 1'cxl JneNa iai1 8td11 Ilm-Inerm Bui(I ParRer°si BuiN PartneI, Develop uses and Continue work, programs, Continue to identify Continue ongoing agreements with service & fundraisers with compatible associations outreach efforts to clubs, tribes, schools, community groups; and resources groups in the community Native Plant Society, and consult regularly with the other community groups; technical advisory convene technical advisory committee committee; continue the practice of holding fundraising tournaments to benefit local organizations Metric: Maintain the Metric: Invitations will be Metric: Continue to invite Metric: Continue practice practice of regularly sent to as many local additional groups with the of invitations to groups; inviting groups to utilize groups as possible with the goal of adding at least 2 increase annual the facilities; continue to goal of a minimum of 4 new partnership groups fundraising events in increase annual groups to be in partnership that will access the golf number/amount raised fundraising events in with the Golf Park park per year; host at least number/amount raised 6 annual fundraising events for community groups and/or charities each Facilifies Im rot�elnentv L��(Jcililies Lin & !CL/4L1(L.V ImLyovelnents Ci i &�s /inproivnientv Im Plan for welcome center Main buildings cleaned and Undertake remodel and Continue facilities updated: welcoming entry, renovation complete; expansion of welcome improvements as pro shop, first floor and capital campaign initiated center facilities; planned in Phase 2 basement improvements; and completed; revised expanded food and expand meeting and food and beverage beverage services community uses; services maintenance buildings cleaned and in full use Metric: The existing Metric: The plan for Metric: Work completed Metric: Work completed "clubhouse" will be remodel/expansion of the on remodel/expansion of on remodel/expansion of refurbished & rebranded as i welcome center facilities the welcome center the welcome center a welcome center; it will be will be completed, which facilities and/or facilities and/or publicly advertised that it is will determine the metrics restaurant per plan restaurant per plan available for rent for in subsequent phases produced in Phase 2 produced in Phase 2 community use by organizations & private individuals ...... Grounds and Turl' .................. Grounds, and 7' Y-d Grounds - Am? r Grounds aidlid Initial irrigation upgrades; Expanded irrigation Native plantings are well Continue to maintain and initial tee and greens system upgrades; continue integrated into the links improve the grounds improvements, per David upgrade of tees, greens course; low water use Hein Report irrigation fully implemented Metric: Turf management Metric: A revised and Metric: Improved condition plan produced by the Metric: Reduction in updated turf of the golf course; updated superintendent fully irrigation water management plan will be irrigation installed; native implemented; native consumption produced areas will be enhanced by plantings established 10% per year; turf management plan will be produced by the superintendent which will i determine the metrics in subsequent phases .. . . . .......... Environmental Environmental Environmental Environmental Ste �Vurdlikip Identify and expand native Continue expansion of Continue native Links course and and prairie planting areas; prairie and native plantings; utilize model associated plantings are adopt sustainable turf plantings; implement sustainable turf well established; management practices; sustainable turf management practices Continue with wildlife plan for course- management practices; sustainable, organic, turf wide enhancements seek certifications management practices Metric: turf & grounds Metric: turf & grounds Metric: Continue turf & Metric: Continue turf & management plan produced management with grounds management grounds management by the superintendent to sustainable practices to be with sustainable with sustainable include details on transition implemented practices. Revise practices. to sustainable practices management plan if needed. FT—ec' jdvances Technical Advances — ----- Technical Advances Technical Advances .............. New electronic controls for Target full fleet of electric All electric equipment; Continued technical sprinklers; transition to equipment and carts; apply install solar array if the innovations and electric equipment and carts for a solar grant grant is received; solar upgrades trail .lighting ....... ........ f ttl Other C'anital ()1her C a4 Oter I .-h— - 12i—led jtjipix) %Le me n ts 1W Q1M 114"enis jL - hnnrovemen is. nts Friends to work City installs playground; Construct amphitheater To be determined in collaboratively with the temporary amphitheater in and driving range future collaboration with City on locating and use; explore permanent facilities per plan City staff applying for a grant for a amphitheater and driving (dependent on the future nature range construction options of the drivin range) _pkground A 6jrdable Housin jjfordable llmes i . n X AffL)rd-611541-HQY."Vin I Evaluate golf course design If/when the City proceeds As funding is available, Once city housing is and operations in with exploring housing on The City and Friends funded and moving collaboration with City the Blaine St. parcel continue to work forward, the leased housing initiates and site (timing not tied to this collaboratively on the Premises will be planning, if underway. phasing schedule), City- implementation and amended to reflect the and Friends will potential installation of new boundaries for collaborate on the best site course changes and housing on the Blaine design for the course and housing site planning per Street parcel. housing and the the terms of the lease. connection between them City0f Port ' m�10 Townsen Submitted By: Alyssa Rodrigues Department: City Clerk Agenda Bill 25-089 Meeting Date: October 6, 2025 Agenda Item: Consent VIII.B ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: October 2, 2025 Contact Phone: 360-379-5078 SUBJECT: Updated Minutes- February 18, 2025 CATEGORY: BUDGET IMPACT: ❑x Consent ❑ Resolution Expenditure Amount: $ ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑x ❑ Contract Approval ❑ Other: Discussion Item ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: 010-011 GF - Mayor & Council SUMMARY STATEMENT: In reviewing previous minutes for a project. I noticed a vote had not been captured in the February 18, 2025 minutes. After reviewing the recording, the vote had happened. These minutes were previously approved. They will need to be approved again with change. Please see the update below. Motion: David Faber moved to task Culture and Society with reviewing the City of Port Townsend's public engagement processes and delegating power to Culture and Society to task the Equity, Access, and Rights Advisory board with parts of that process. Ben Thomas seconded. Discussion ensued around getting more engagement at Culture and Society and general lack of attendance at Committee meetings. Vote: motion carried unanimously, 6-0 by voice vote. ATTACHMENTS: 1. February 18, 2025 updated minutes CITY COUNCIL COMMITTEE RECOMMENDATION: None RECOMMENDED ACTION: If adopted as part of the Consent Agenda, no further action is needed; this effectively represents approval of the February 18, 2025 updated minutes. ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑x Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: DRAFT CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF FEBRUARY 18, 2025 CALL TO ORDER The City Council met in a Regular Session on the 18th day of February 2025 in Council Chambers at 540 Water Street, Port Townsend, WA 98368. Mayor Faber called the meeting to order at 6:00pm. ROLL CALL Councilmembers present at roll call were David Faber, Amy Howard, Neil Nelson, Owen Rowe, Ben Thomas, and Libby Wennstrom with Monica MickHager excused. Staff members present were Public Works Director Steve King , Marketing and Communications Director Shelly Leavens, Project Manager Tyler Johnson , Finance and Technology Services Director Jodi Adams, and City Clerk Alyssa Rodrigues. CHANGES TO THE AGENDA Mayor Faber suggested adding Item C. regarding new Media Guidelines and Item D. regarding downtown paid parking program. PROCLAMATION(S) OR SPECIAL PRESENTATION(S) (NONE) There were no Proclamations or Special Presentations. CITY MANAGER'S REPORT Mayor Faber stated the City Manager's Report was attached to the packet. COMMENTS FROM THE PUBLIC Public comment Staff or Council response, as needed There was no public comment. Discussion ensued around moving new Item C and D up in the agenda. February 18, 2025 City Council Business Meeting Page 1 of 6 DRAFT CONSENT AGENDA Approval of Bills, Claims and Warrants Approval of Minutes: January 27, 2025 Equipment Purchases Interlocal Agreement by and between Jefferson County and the City of Port Townsend for Law Enforcement Services Council member Nelson mentioned he was present for the January 27, 2025 meeting. Motion: Owen Rowe moved to approve the consent agenda with correction to roll call in minutes. Libby Wennstrom seconded. Vote: motion carried unanimously, 6-0 by voice vote. NEW BUSINESS Media Guidelines (Added During Changes to the Agenda) Public Works Director Steve King and Marketing and Communications Director Shelly Leavens presented on the Media Guidelines which included Media Guidelines, timeline, discussion with media counterparts, poor timing, updated guidelines, misinformation, help from local press, trusted source for local media, internal coordination, implementation of Personnel Policy, Communications Department, guidelines are not a policy, does not apply to City Council, public records, mutual respect, emails, improved guidelines, relationship with press, FAQ's, responsive to media, accurate reporting, City communications, systems and guideline development, central point of contact being standard, media guidelines internal and external, pressure of local reporters deadlines, and it being productive to meet with media. In response to Council's clarifying questions staff explained communications guidelines timeline, expedience of information, and coordination of responses. Public comment: Jason Victor Serinus spoke about deadlines and perception with media. Reneene Robertson spoke about residential parking zones. Discussion ensued around how Council can support guidelines, misunderstandings, public records requests, searchable archive page, adversarial relationship with media, organizational, URL's not working on website, community consultation, and Agendas/Minutes/Videos search tool. February 18, 2025 City Council Business Meeting Page 2 of 6 DRAFT Downtown Paid Parking Program (Added During Changes to the Agenda) Mayor Faber and Steve King presented the Downtown Paid Parking Program which included the Mayor's City Newsletter and social media piece regarding downtown paid parking program, FAQ, parking study, pilot program, and permit systems. In response to Council's clarifying questions staff explained size of pilot. Public comment: Reneene Robertson spoke about Admiralty Apartments, City of Seattle residential parking permit, and cameras on van access slots. Scott Walker spoke about starting smaller, Taylor St, attention on topic, timing of day, dynamic fees, parking garage, and Hood River. Discussion ensued around going too far, getting to right size, Jefferson Transit, pilot program, ways to pay, permits, information gap, free parking will fill up, private paid parking, challenging solutions, park and go on ferry, parking surveys wanted a definitive action, lot near downtown, Park and Ride, impact, negative side effects, increase function of business district, alternatives to driving, large pilot size, bring back smaller pilot size, tourist season, some solution isn't any solution, business community, streateries, enforcement, residential permits, employee parking, next steps, scope of pilot, parking fine amount, Seattle policies, Hood River, Leavenworth, public information, strategies, and revenue. Resolution 25-006 Declaring an Emergency, Waiving Public Bidding Requirements, and Ratifying the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Damage to the OGWS Transmission Pipeline Near Fuller Road at the Andrews Creek Crossing Project Manager Tyler Johnson and Steve King presented Resolution 25-006 Declaring an Emergency, Waiving Public Bidding Requirements, and Ratifying the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Damage to the OGWS Transmission Pipeline Near Fuller Road at the Andrews Creek Crossing which included February 6, 2025 call, project, water break, 19.5 Miles of Pipeline to Search, Fuller Road crossing of Andrews Creek, oldest pipe, highest pressure, 1/2 million gallons of water spilled, Emergency Declaration, Nordland Construction Northwest, Hutchins Metal Work, IDGAF, City Lake concerns, Emergency Hydraulic permit, Fish and Wildlife, Critical Areas permit, amount for project, native vegetation, and Thanks to All Who Helped to Repair the Pipeline. In response to Council's clarifying questions staff explained age of pipe, turning off flow of water, trigger, drones, and drainage. Public comment: There was no public comment. February 18, 2025 City Council Business Meeting Page 3 of 6 DRAFT Discussion ensued around pictures, urgency to build capital funding for replacement of pipe, bureaucratic slowdown, and Emergency Declaration. Motion: Owen Rowe moved to approve Resolution 25-006 Declaring an Emergency, Waiving Public Bidding Requirements, and Ratifying the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Damage to the OGWS Transmission Pipeline Near Fuller Road at the Andrews Creek Crossing. Ben Thomas seconded. Discussion ensued around appreciation for the staff and contractors. Vote: motion carried unanimously, 6-0 by voice vote. Council member Thomas announced there was someone needing to make an emergent comment. Mayor Faber allowed the public comment. Public Comment: Maggie stated the toilets are malfunctioning at 209 Monroe St Shelter, asked if Cotton Building restrooms will be open, and people are sick and too close together. Discussion ensued around Cotton Building restrooms and having a conversation with Bayside. Task the Equity, Access, and Rights Advisory Board with Reviewing their Scope of Work within Resolution 23-027 and Providing Edits, Suggestions, and Updates. Deputy Mayor Howard presented Tasking the Equity, Access, and Rights Advisory Board with Reviewing their Scope of Work within Resolution 23-027 and Providing Edits, Suggestion and Updates which included reviewing their enabling resolution, "as tasked by City Council" review, board seated since May and tasked with two items. Public comment: There was no public comment. Discussion ensued around engaging with co-chair of Equity, Access, and Rights Advisory Board, uncomfortable with request, new board, concern around timeliness, Advisory to Council, don't want to remove guardrail yet, "as tasked by Council" concerns, activist organization, concerns around effect on staff, additional powers, review, implies broad tasking, Listening Sessions, understand perspective, share concerns from Council, need more information, need more clarification, tasked with preparing presentation, reviewing Scope of Work, want to move faster with emergent issues, right sizing the work, suggestions for Scope of Work, and sharing concern from Council to board. February 18, 2025 City Council Business Meeting Page 4 of 6 DRAFT Motion: Ben Thomas moved to task the Equity, Access, and Rights Advisory Board with reviewing their Scope of Work within Resolution 23-027 and suggesting edits, other suggestions, and updates. Owen Rowe seconded. Vote: motion carried unanimously, 6-0 by voice vote. PRESIDING OFFICER'S REPORT Mayor Faber stated he did not have a Presiding Officer's Report. SUGGESTIONS FOR FUTURE AGENDAS Council member Thomas suggested having the Culture and Society Committee look at public engagement. Discussion ensued around WA-CELI trainings, Culture and Society schedule, and appropriate to look at in future. Motion: David Faber moved to task Culture and Society with reviewing the City of Port Townsend's public engagement processes. Ben Thomas seconded. Discussion ensued around engaging Equity, Access, and Rights Advisory Board in work. Mayor Faber withdrew his motion. Motion: David Faber moved to task Culture and Society with reviewing the City of Port Townsend's public engagement processes and delegating power to Culture and Society to task the Equity, Access, and Rights Advisory board with parts of that process. Ben Thomas seconded. Discussion ensued around getting more engagement at Culture and Society and general lack of attendance at Committee meetings. Mayor Faber mentioned concerns from a community member about animal abuse and leaving dogs outside overnight. Discussion ensued around putting this topic on the suggestion board and where the suggestion board lives. COMMENTS FROM COUNCIL Deputy Mayor Howard stated an upcoming Intergovernmental Collaborative Group conflict. Discussion ensued around having a quorum for the Intergovernmental Collaborative Group meeting. February 18, 2025 City Council Business Meeting Page 5 of 6 ADJOURN DRAFT There being no further business, the meeting adjourned at 8:11 pm. Attest: Alyssa Rodrigues City Clerk February 18, 2025 City Council Business Meeting Page 6 of 6 DRAFT CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF AUGUST 18, 2025 CALL TO ORDER The City Council met in a regular session on the 18th of August 2025 in Council Chambers at 540 Water Street, Port Townsend, WA 98368. Deputy Mayor Howard called the meeting to order at 6:00pm. ROLL CALL Councilmembers present at roll call were David Faber, Amy Howard, Monica MickHager, Neil Nelson, Owen Rowe, Ben Thomas, and Libby Wennstrom. Staff members present were City Manager John Mauro, Public Works Director Steve King, Planning and Community Development Director Emma Bolin, Housing Grants Coordinator Renata Munfrada, Water Resources Operations Manager Michael Spears, Finance and Technology Services Director Jodi Adams, and City Clerk Alyssa Rodrigues CHANGES TO THE AGENDA Discussion ensued around switching New Business items. New Business Items A and B were switched. PROCLAMATION(S) OR SPECIAL PRESENTATION(S) Oath of Office- Police Officer Chief of Police Tom Olson provided the Oath of Office to Police Officer Darian Hall. CITY MANAGER'S REPORT City Manager John Mauro provided the City Manager's Report which included SEPA Appeal for hotel project, water supply, pool closure, Farmers Market engagement, chip seal, and Budget Roadshow. COMMENTS FROM THE PUBLIC Public comment August 18, 2025 City Council Business Meeting Page 1 of 5 DRAFT Staff or Council response, as needed There was no public comment. Discussion ensued around written public comment regarding paid parking signage. CONSENT AGENDA Approval of Bills, Claims and Warrants Approval of Minutes: May 22, 2025, July 7, 2025 Staff Appointments to External Board and Committees 2025 Second Quarter Financial Update Motion: Monica MickHager moved to approve the consent agenda. Libby Wennstrom seconded. Vote: motion carried unanimously, 7-0 by voice vote. PUBLIC HEARING Resolution 25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City's Water Use Efficiency Program Deputy Mayor Howard opened the Public Hearing and reviewed the Public Hearing Rules of Procedure. Public Works Director Steve King and Water Resources Operations Manager Michael Spears presented Resolution 25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City's Water Use Efficiency Program which included mandates, basic elements of program, demand and supply goals, Paper Mill consumption, and gallons per day being low. Written materials were submitted in the packet. Public comment: Gretchen Brewer spoke about Paper Mill water consumption, more housing units, and threat of drought. Peter Guererro spoke about the Sierra Club, encouraging Paper Mill to meter water, law definition, Paper Mill water consumption, and climate change. August 18, 2025 City Council Business Meeting Page 2 of 5 Kim Duddy spoke about Paper Mill water consumption, food growing considers and longevity. In response to public comment staff explained growth, metering, Paper Mill water efficiency, and raw water reporting. In response to Council's clarifying questions staff explained volume of water lost for transmission loss, Water Supply documents, irrigation meter, data from per capital gallon usage, encouraging Paper Mill to lower water usage, equivalent water usage regulations around Aquaphor, groundwater potential concerns, and prioritizing human consumption over industrial use. Deputy Mayor Howard closed the Public Testimony portion of the Hearing. Discussion ensued around well thought out plan, importance of reducing consumption, per capita minus irrigation number, unoccupied homes, data of drinking water consumption over years, cutting down per capita usage in the future, agriculture for food production, and additional storage. Motion: Ben Thomas moved to approve Resolution 25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City's Water Use Efficiency Program Monica MickHager seconded. Vote: motion carried unanimously, 7-0 by voice vote. OLD BUSINESS (NONE) NEW BUSINESS Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 Finance and Technology Services Director Jodi Adams presented Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 which included state mandated update to business license code and the main changes to the Business License threshold. In response to Council's clarifying questions staff explained any other anticipated changes from legislature, endorsement fee, City revenue from license fees, and possible pushback. Public comment: There was no public comment. August 18, 2025 City Council Business Meeting Page 3 of 5 Discussion ensued around topic coming before Finance and Budget CommitteaFlAfib waiving Council Rules. Motion: David Faber moved waive Council Rules and approve first reading of Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 Owen Rowe seconded. Discussion ensued around needing to adopt due to state law, community benefit, and waiving Council Rules. Vote: motion carried unanimously, 7-0 by voice vote. Evans Vista: A Vision for Sustainable Community Housing Planning and Community Development Director Emma Bolin and Housing Grants Coordinator Renata Munfrada provided the Evans Vista Neighborhood: A Vision for Sustainable Community Housing presentation which included Presentation Outline, Community Housing Grants Coordinator Introduction, Evans Vista Neighborhood, A Vision for Sustainable Housing, Planning for Evans Vista, Council 2025 Workplan, Growth Management Act, Comprehensive Plan: Housing Element, 2025 Housing Needs Assessment, Key Findings, White Paper: Exploration of Strategies for Supporting Infill &Affordable Housing, Broken Housing Ladder, Homeless Encampments at DSHS, Housing is a Homelessness Problem, Economic Development, Economics & Timing of Development, Grant Funding & Regulatory Responsibilities, Mill Road Lift Station, Roadmap, Roadmap Actions, Identifying Resources & Obstacles, PT's Preferred Design: Honoring Community Input, Developer Roundtable, Request for Proposals (RFP), Attachment A PIF Grant Application: Evans Vista Phase 1 Mixed Use Workforce Housing Streets, and Connecting Housing to Infrastructure Program. In response to Council's clarifying question staff explained permanently affordable housing, 2023 design, developer timeline, DSHS homeless encampment, CHIP grant funding, air quality testing, type of CHIP funding, giving funding back, and match for State CHIP. Public comment: Derek Firenze spoke about the Evans Vista and air quality health risks around the Paper Mill. Gretchen Brewer spoke about open space, ownership model, and community workspace. In response to public comment staff explained Mill contract, community workspace, and ownership model. Discussion ensued around cooperative ownership, condo, developer participation, supporting staff recommendation, homeless encampment, air quality issue, local August 18, 2025 City Council Business Meeting Page 4 of 5 builders supporting large scale developer, timeline, monitoring air quality, seekwdFT regulatory controls on Paper Mill emissions, proceeding with project, projects under public scrutiny, PIT count in January, need to fix housing ladder, City not the developer, need the money, appreciation for Renata, outside the box solution to concerns of air quality, and appreciation for all information being in one place. Motion: Owen Rowe moved endorse staff pursuing additional grant funding in support of the Evans Vista Neighborhood Master Development Monica MickHager seconded. Vote: motion carried unanimously, 7-0 by voice vote. PRESIDING OFFICER'S REPORT Mayor Faber provided the Presiding Officers' Report which included the County Community Conversation event and Port Travel Lift launching event. SUGGESTIONS FOR FUTURE AGENDAS There were no suggestions for future agendas. COMMENTS FROM COUNCIL There were no comments from Council. ADJOURN There being no further business, the meeting adjourned at 8:27pm. Attest: Alyssa Rodrigues City Clerk August 18, 2025 City Council Business Meeting Page 5 of 5 DRAFT CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF SEPTEMBER 2, 2025 CALL TO ORDER The City Council met in a regular session on the 2nd of September 2025 in Council Chambers at 540 Water Street, Port Townsend, WA 98368. Mayor Faber called the meeting to order at 6:00pm. ROLL CALL Councilmembers present at roll call were David Faber, Amy Howard, Monica MickHager, Neil Nelson, Owen Rowe, and Ben Thomas with Libby Wennstrom excused. Staff members present were John Mauro City Manager, Public Works Director Steve King, Long Range Planner Adrian Smith, Planning Manager Jacob Gates, Community Services Director Melody Sky Weaver, Project Manager Andre Harper, Wastewater Treatment/Compost Facility Operations Manager Bliss Morris, and City Clerk Alyssa Rodrigues. CHANGES TO THE AGENDA Mayor Faber stated they will add an Executive Session after Public Comment and before Consent Agenda regarding discussion with legal counsel for current or potential litigation to take approximately 10 minutes with no action. PROCLAMATION(S) OR SPECIAL PRESENTATION(S) (NONE) There were no Proclamations or Special Presentations. CITY MANAGER'S REPORT City Manager John Mauro provided the City Manager's Report which included water supply, YMCA pool closure, Jefferson Healthcare Certificate of Occupancy, Place Based Learning Collaboration with PT School District, and Budget Roadshow. COMMENTS FROM THE PUBLIC Public comment Faith spoke about concerns around blinking light near Admiralty apartments. September 2, 2025 City Council Business Meeting Page 1 of 6 DRAFT Staff or Council response, as needed In response to public comment staff explained the red blinking light in relation to traffic safety standpoint. Discussion ensued around putting up signage for drivers and orange flags. Executive Session — Pursuant to RCW 42.30.110(1)(i) Discussion with legal counsel about current or potential litigation (Approximately 10 minutes) (Added During Changes to the Agenda) Mayor Faber stated the Council will go into Executive Session pursuant to RCW 42.30.110(1)(i) discussion with legal counsel about current or potential litigation for approximately 10 minutes. No action to follow. Council went into Executive Session at 6:15pm Council came out of Executive Session at 6:25pm. No action was taken. CONSENT AGENDA Approval of Bills, Claims and Warrants Approval of Minutes: July 14, 2025, July 21, 2025, August 4, 2025 Council Committee Assignment- Port Townsend School District's Facility Advisory Board Motion: Monica MickHager moved to approve the consent agenda. Owen Rowe seconded. Vote: motion carried unanimously, 6-0 by voice vote. PUBLIC HEARING Ordinance 3352 An Interim Ordinance of the City of Port Townsend Amending Port Townsend Municipal Code Chapter 17.72 Relating to Interim Parking Regulations and Providing that the Interim Regulations, Unless Extended, will Sunset on the Earlier of Six (6) Months from the Date of Adoption of this Ordinance or the Adoption of Regulations that Superseded this Ordinance. Mayor Faber opened the Public Hearing and reviewed the Public Hearing Rules of Procedure. Long Range PlannerAdrian Smith presented Ordinance 3352 An Interim Ordinance of the City of Port Townsend Amending Port Townsend Municipal Code Chapter 17.72 Relating to Interim Parking Regulations and Providing that the Interim September 2, 2025 City Council Business Meeting Page 2 of 6 Regulations, Unless Extended, will Sunset on the Earlier of Six (6) Months froffiw6T Date of Adoption of this Ordinance or the Adoption of Regulations that Superseded this Ordinance which included March 4, 2024 Ordinance 3333, purpose for recommended vs. required, Ordinance extensions, 3rd extension of interim Ordinance, and reason for extension instead of adoption. There were no written materials submitted. Public comment: There was no public comment. In response to Council's clarifying questions staff explained no changes from last time, separating residential and commercial, if ordinance has impacted projects, and there being no projects proposed downtown being affected by ordinance. Mayor Faber closed the Public Testimony portion of the Hearing. Discussion ensued around projects and utilizing the Ordinance, Madrona Ridge, ADU's and parking, projects taking a long-time to plan, flexibility, knowledge is out there, reason for waiving Council Rules, and expiring Ordinance process. Motion: Ben Thomas moved to approve the findings of fact and move to waive Council Rules and approve Ordinance 3352 An Interim Ordinance of the City of Port Townsend Amending Port Townsend Municipal Code Chapter 17.72 Relating to Interim Parking Regulations and Providing that the Interim Regulations, Unless Extended, will Sunset on the Earlier of Six (6) Months from the Date of Adoption of this Ordinance or the Adoption of Regulations that Superseded this Ordinance. Owen Rowe seconded. Mayor Faber closed the public record and the Public Hearing. Vote: motion carried unanimously, 6-0 by voice vote. OLD BUSINESS (NONE) NEW BUSINESS Resolution 25-026 Renaming the Triangle I Park as the Minnie Nakano Park Community Services Director Melody Sky Weaver provided Resolution 25-026 Renaming the Triangle I Park as the Minnie Nakano Park presentation which included other park renaming's, Triangle I Park history, Parks, Recreation, Trees and Trails Advisory Board discussion, no current City Park named after a woman, woman of note information from local historians, Nakano family history, Minnie Nakano September 2, 2025 City Council Business Meeting Page 3 of 6 history, and staff recommendation. DRAFT In response to Council's clarifying question staff explained where family farm was located and where relatives are currently located. Public comment: There was no public comment. Discussion ensued around conflict -of -interest concern, Parks, Recreation, Trees and Trails Advisory Board thoughtful discussion, Minnie being a community member that deserves it, and proud of first park having a women's name. Motion: Owen Rowe moved to approve Resolution 25-026 Renaming the Triangle I Park as the Minnie Nakano Park Monica MickHager seconded. Discussion ensued around where Triangle II Park is located. Vote: motion carried unanimously, 6-0 by voice vote. Discussion ensued around upcoming celebration and new signs for the park renaming. Resolution 25-027 Authorizing the Application for Loan Funding for Final Design and Construction of Lawrence Street Combined Sewer Separation Project and the Wastewater Treatment Plant Outfall Project in an Amount not to Exceed $6,500,000 Public Works Director Steve King, Project Manager Andre Harper, and Wastewater Treatment/Compost Facility Operations Manager Bliss Morris provided the Resolution 25-027 Authorizing the Application for Loan Funding for Final Design and Construction of Lawrence Street Combined Sewer Separation Project and the Wastewater Treatment Plant Outfall Project in an Amount not to Exceed $6,500,000 which included Department of Ecology recommendation to include more stormwater quality treatment, adding pipe in Lawrence St, asking for more authority to apply for more funding, adding outfall project, Dept of Ecology wants City to apply, sewer outfall background, engagement, internal inspection of pipeline, findings of inspection, amended engineers report, dive assessment, locating joint, staff recommendation, applying for additional funding, prior community pushback, previous permitting process, new option, replace beach section, green light from Ecology, forgivable portions of loan, Resolution just replaces last Resolution, and no kelp/eelgrass will be disturbed. In response to Council's clarifying questions staff explained reason for Marine Resource Committee pushback, repayment of loans through Enterprise fund, total of outfall amount, no eelgrass disturbed, project schedule, what Department of Ecology is wanting City to do on Lawrence St, what Lawrence St will look like now with September 2, 2025 City Council Business Meeting Page 4 of 6 bioswales, purpose of bioswales, bioswale used for stormwater, what happensw treatment plant while work is happening, how long cast iron pipe will last, putting liner in cast iron pipe, what is going out into the Strait, education kiosk/signage, Wastewater Treatment Plant awards, rate model, difference in debt type, debt issuance being a positive, some debt can be forgiven, and community investing in itself in relation to approving funding. Public comment: There was no public comment. Discussion ensued around big projects being intimidating and previous amount. Motion: Owen Rowe moved to approve Resolution 25-027 Authorizing the Application for Loan Funding for Final Design and Construction of Lawrence Street Combined Sewer Separation Project and the Wastewater Treatment Plant Outfall Project in an Amount not to Exceed $6, 500, 000 Monica MickHager seconded. Discussion continued around appreciation for 80/20 principle with projects, comfortable with what has been learned, State suggesting changes to Lawrence St, Monroe St Lift Station, and appreciation for Public Works teams. Vote: motion carried unanimously, 6-0 by voice vote. PRESIDING OFFICER'S REPORT Mayor Faber provided the Presiding Officer's Report which included Jefferson County outreach event, Hospital Ribbon Cutting, Walking Tour on Lawrence St, and NW Maritime Center local elected event. Discussion ensued around resident concerns with Lawrence St project. SUGGESTIONS FOR FUTURE AGENDAS There were no suggestions for future agendas. COMMENTS FROM COUNCIL There were no comments from Council. ADJOURN There being no further business, the meeting adjourned at 7:48pm. September 2, 2025 City Council Business Meeting Page 5 of 6 Attest: DRAFT Alyssa Rodrigues City Clerk September 2, 2025 City Council Business Meeting Page 6 of 6 PORT TOWNSEND CITY COUNCIL CONSENT AGENDA October 6, 2025 A. Approval of Bills, Claims and Warrants: • Vouchers 177542 through 177542 in the amount of $10.00 • Vouchers 177545 through 177691 in the amount of $1,404,134.74 • Vouchers 177693 through 177793 in the amount of $1,356,228.85 • Electronic Fund Transfers in the amount of $58,407.22 B. Approval of Minutes: February 18, 2025 (Updated), August 18, 2025, September 2, 2025 Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item from the consent agenda). City0f Port ' m�10 Townsen Agenda Bill AB25-092 Meeting Date: Oct 6, 2025 Agenda Item: IX.A ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Jodi Adams, Director of Finance & Technology Services Date Submitted: October 1, 2025 Department: Finance Contact Phone: 360-379-4403 SUBJECT: Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations - Second reading CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: ❑ Staff Report ❑x Ordinance Included in Budget? Yes ❑ No ❑x ❑ Contract Approval ❑ Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: N/A SUMMARY STATEMENT: Our second budget supplement for 2025 has been kept to a minimal amount, and only items that were emergency repairs or had unexpected price increases are included. There are many reasons why supplemental appropriations are needed. • Carry forward budget from 2024 for projects that were not completed • Donations that were made in previous years and not spent. • Capital Projects that are new or have carry forward money from previous years • Additional expenditures emerge as new information or activity occurs that was not previously known or available when compiling the current year's budget. • Increased costs due to supply chain issues, labor shortages and inflation factors. • Unforeseen emergencies. • Obtaining legislative authority for the proper management of funds in the general ledger. All expenses must be approved by council prior to being spent, so a budget amendment includes all unbudgeted expenditures. However, we are not required to reduce or credit unspent line items or to increase revenue during the supplement process. An increase in an expenditure line does not necessarily mean an increase in spending. There may be an offset under another line that is not reflected in the supplement process. The 2025 Budget Supplement #2 includes Direct Cost Increases/ New Spending • General Fund — Unemployment Costs ($35,000) • Shoreline Master Program Grant — Professional Services ($75,500) o 100% Offset by a new Commerce Grant • Street Operations — Chip Seal & Hot Spot Repairs ($217,907) • Transportation Benefit District — Discovery Road Grant Gap ($228,444) • Community Services Reserves — City Facilities & Safety Upgrades ($71,000) • Community Services Reserves — Playground Safety Maintenance ($3,000) • Community Services Reserves — Mountain View Chlorinator Controller ($8,000) • Water & Sewer Utilities — Main Street TIP Contribution ($106,250) o 75% Offset by new State Main Street tax credits Total: $745,101.00 Note the supplement includes other line items for internal transfers that do not represent new or additional spending but rather reallocating funds for accounting purposes. ATTACHMENTS: 1. Ordinance 3354 2. City of Port Townsend 2025 Supplemental #2 Detail CITY COUNCIL COMMITTEE RECOMMENDATION: At their September 8, 2025 meeting, the Finance and Budget Committee recommended forwarding the Supplemental Budget #2 request to City Council. RECOMMENDED ACTION: Move to approve Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations. ALTERNATIVES: ❑x Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3354 Page 1 of 1 ORDINANCE NO. 3354 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING 2025 SUPPLEMENTAL BUDGET APPROPRIATIONS WHEREAS, the City Council adopted a supplemental budget per Ordinance 3347 on June 2, 2025 and was set forth in the document entitled "City of Port Townsend 2025 Supplemental 41 Detail"; and WHEREAS, new or unforeseen projects were not identified at the time of compiling the 2025 budget; and WHEREAS, staff recommends appropriating funds for the new and unforeseen projects as identified for 2025; and WHEREAS, the City Council reviewed the supplemental budget on September 15, and considered the matter further on October 6, 2025; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. The supplemental budget for the City of Port Townsend, Washington, for the fiscal year 2025, is adopted as set forth in the document entitled "City of Port Townsend 2025 Supplemental 42 Detail", making revenue and expenditure revisions. Section 2. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of the majority of the City Council plus one, at a regular business meeting thereof, held this 6th day of October 2025. David J. Faber Mayor Attest. Alyssa Rodrigues City Clerk N M- N u N M o ° ,. 0 o w o N o 4�M1 _ v°Ji mc 0 o 'o E u o 3 vni - o 0 _ p o o `o_ Y Y ry co w c no o ;. ;. 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'^ o 5� s'S,:. ai,, a m m o c O g ur n o 01 , � a v " "�' ^ _' ri' c �.. m u5:. o: O w...3 i,;. c ,^„ .,.. aa., . o m. v z v ,� 'p rl " ¢, `N" 3 r?. € ,x. o.. Eo m o o E z a yr o E 0 3 n 3 « v � c M. o o: m � o4Da Lq o o 3 o N m �4' N o N io m io �.. N mo m 11 , 9 o Q M rv, `� N. C1; a 4 nl. ti m N z o ^•�.. o a. o w Ivrryry o .tea.', 'i6 4i. 4 m µ 4 v G a in No No No No oN oo 0 4 0 o m.. o N'. 0 0 4... o o m �q o o¢ o 45 C. o. •a 45 CL a � 'a Ea a!' +1i EN 4. 4 4�5 a. 45 4 oc 'a a°� 3 m o b r E m 4. cc It O cc cm It 6 o u u 4 o c F c" o 3 0 C . a, °° m ,a+ a° �a u u° mc w aEi" w ° ° u .w w 0 n c o_ O .. 4 O O0 City0f Port ' m�10 Townsen Submitted By: Jodi Adams Department: Finance Agenda Bill AB25-093 Meeting Date: September 15, 2025 Agenda Item: IX.B ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: September 5, 2025 Contact Phone: 379-4403 SUBJECT: Ordinance 3353 Relating to Bonds for City Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Official Bonds, In the Port Townsend Municipal Code (PTMC); and Adopting a New Section in 12.10.050 in the PTMC. CATEGORY: BUDGET IMPACT: n/a ❑ Consent ❑ Resolution Expenditure Amount: ❑ Staff Report ❑x Ordinance Included in Budget? Yes ❑ No ❑x ❑ Contract Approval ❑ Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: Staff requests City Council to authorize the addition to Port Townsend Municipal Code 2.10.050 City manager— bond and oath and 2.09.010 official bonds. RCW 35A.12.080 and RCW 35A.13.160 Oath and bond of officers requires that by ordinance or by charter, that code cities organized under a council-manager plan, shall be required to furnish annually an official bond conditioned on the honest and faithful performance of their official duties. The terms and penalty of official bonds shall be approved by the city manager. The premiums on such bonds shall be paid by the city. This update will meet the requirements of the RCW and will enable us to obtain such bonds as required for staff. ATTACHMENTS: 1. Ordinance 3353 CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve Ordinance 3353 Relating to Bonds for City Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Official Bonds, In the Port Townsend Municipal Code (PTMC); and Adopting a New Section in 12.10.050 in the PTMC. ALTERNATIVES: ❑x Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3353 PERFORMANCE BONDS Page I of 3 ORDINANCE NO.3353 AN ORDINANCE OF THE CITY OF PORT TOWNSEND RELATING TO BONDS FOR CITY OFFICERS AND EMPLOYEES; ADOPTING A NEW CHAPTER 2.09 AND NEW SECTION 2.09.010, OFFICIAL BONDS, IN THE PORT TOWNSEND MUNICIPAL CODE (PTMC); AND ADOPTING A NEW SECTION IN 2.10.050 IN THE PTMC. WHEREAS, Washington state law, through sections �35A.12.080 and 35A.13.160 of the Revised Code of Washington ("RCW") e uires the clerk, treasurer, if any, chief of police and and such other officers or employees as may be designated by ordinance or by charter to furnish annually an official bond conditioned on the honest and faithful performance of their official duties; and WHEREAS, RCW 35A.13.070 requires the city manager of a code city to execute and file with the clerk of the council a bond in favor of the city in such sum as may be fixed by the council before entering upon the duties of his or her office; and WHEREAS, the official bonds of officers of a municipality must comply with the requirements of Chapter 42.08 RCW; and WHEREAS, the premiums for bonds for appointive officers and City staff must be paid by the City per RCW 48.28.040; and WHEREAS, the State of Washington Auditors office recommends bond coverage should be provided for all employees, under a blanket bond. NOW THEREFORE, the City Council of the City of Port Townsend does ordain as follows: Section 1. A new section 2.10.050, City manager — Bond and oath, is hereby created in Port Townsend Municipal Code Chapter 2.10 (City Manager) as follows: 2.10.050 City manager —Bond and oath. Before entering upon the duties of his or her office the city manager shall take an oath or affirmation for the faithful performance of his or her duties and shall execute and file with the clerk of the council a bond in favor of the city consistent with the provisions of PTMC 2.09.010. Section 2. A new Chapter 2.09 titled "Official bonds." A new Section 2.09.010 "Official bonds," is hereby adopted in Chapter 2.09 of the PTMC titled "Official bonds" in the Port Townsend Municipal Code to read as follows: Ordinance 3353 PERFORMANCE BONDS Page 2 of 3 2.09.010 Official bonds. In accordance with RCW %5A.1 %.4)74) and %5A.1'% 1.64), the employees of the city listed in this section shall each, before entering upon the performance of their respective duties, furnish to the city an official bond conditioned upon the honest and faithful performance and discharge of their official duties, and for the proper application of all money or property received by them by virtue of their position or employment. All such official bonds shall be approved by the city manager, except that the bond of the city manager shall be approved by the city attorney. Such bonds shall run in favor of the city and be executed by a fidelity or surety company authorized to transact such business within the state. The form shall be approved by the city attorney and must meet the requirements of any proper department of the state supervising the same. The premiums on said bonds shall be paid by the city. A. The director of finance and technology services who serves as the city treasurer shall qualify by furnishing a faithful performance bond at the expense of the city in the sum of not less than $100,000. B. The city clerk and all persons authorized by the city to sign checks or warrants shall be covered by a blanket faithful performance bond in the sum of not less than $75,000. C. The city manager shall be covered by a blanket faithful performance bond in the sum of not less than $100,000. D. The chief of police shall be covered by a blanket faithful performance bond in the sum of not less than $100,000.1 E. All other city officers and employees shall be covered by a blanket faithful performance bond in the sum of not less than $50,000. All amounts provided in this section may be increased to a greater amount as may be specified by state law as hereafter amended. Section 3. Severability. If any sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase or work of this Ordinance. Section 4. Effective Date. This Ordinance shall take effect and be in force five days following its publication in the manner provided by law. Ordinance 3353 PERFORMANCE BONDS Page 3 of 3 Adopted by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 6th day of October, 2025. David Faber, Mayor Attest: Alyssa Rodrigues, City Clerk City0f Port ' m�10 Townsen Submitted By: Katy Goodman Department: Community Services Agenda Bill AB25-094 Meeting Date: October 6, 2025 Agenda Item: X.A ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: October 2, 2025 Contact Phone: (360) 774 2362 SUBJECT: Ordinance 3355 Repealing and Replacing Port Townsend Municipal Code Chapter 3.50 Relating to the City's Public Arts Program; Providing for Severability; and Establishing an Effective Date CATEGORY: ❑ Consent ❑ Resolution El ❑x Staff Report ❑x Ordinance Contract Approval ❑ Other: BUDGET IMPACT: Expenditure Amount: $ Included in Budget? Yes ❑ No ❑ Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 1 - Build small town quality of life Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: The City of Port Townsend has a deep and abiding commitment to art and culture, as articulated in the Community Direction Statement from the Comprehensive Plan: "A regional center of culture and learning, Port Townsend provides its citizens with quality elementary and secondary instruction, as well as career training and college education needed for success and personal enrichment. The City offers world -class arts and entertainment and continually celebrates its cultural and historical assets by hosting many exciting festivals and events. Anywhere in town, we are only a convenient bike ride or walk from work, classes, dining, entertainment, and home. This closeness reinforces the tie between Port Townsend's economy, culture and a large residential community. People live here because they enjoy being in the midst of the natural beauty and cultural amenities of Port Townsend." In 2004, Port Townsend adopted PTMC Chapter 3.50, establishing a 1% for the Arts Program to fund uphold this commitment by funding the creation of artwork through City capital projects; the last public art project created through this program occurred in 2015. With extensive input from the Port Townsend Art Commission and the Public Art Committee, as well as the Public Works, Finance, Community Services Departments, the original code has been carefully examined to find out why it has not funded new art in a decade. It was determined that the current code excluded --or left room to exclude -- many kinds of capital projects and costs, including utility projects, which means very little to no funding is flowing to the 1 % for the Arts Program, against the spirit of the original resolution. After months of research into similar programs across the state, it was determined that a new Municipal Code would best ensure that the intention of the 1% for the Arts program could be fulfilled by the City. Using examples from successful programs in other small Washington cities, the new code aligns with the values of promoting cultural enrichment and artistic expression within our community and reflects contemporary best practices. This process, begun by the Arts Commission in 2024, has been supported by the Council's adoption of the 2025 Public Art Plan in June of 2025, which sets up a strong path for the development and care of the City's Public Art Collection. It is also strengthened by the hiring of staff to oversee and support the City's role in our community's arts and culture sector. The Port Townsend Arts Commission recommended the new PTMC code for adoption by City Council at their October 2nd, 2025 meeting. ATTACHMENTS: 1. Ordinance 3355 2. Exhibit A, 2025 Public Art Plan CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve first reading of Ordinance 3355 Repealing and Replacing Port Townsend Municipal Code Chapter 3.50 Relating to the City's Public Arts Program; Providing for Severability; and Establishing an Effective Date ALTERNATIVES: ❑x Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑x Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3355 Page 1 of 1 Ordinance No. 3355 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, REPEALING AND REPLACING PORT TOWNSEND MUNICIPAL CODE CHAPTER 3.50 RELATING TO THE CITY'S PUBLIC ARTS PROGRAM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Port Townsend desires to repeal and replace Port Townsend Municipal Code ("PTMC") Chapter 3.50 relating to the City's Public Arts Program; and WHEREAS, the new Municipal Code better reflects the City of Port Townsend's commitment to expanding public experience by advancing awareness of, and interest in, the arts, in connection with the artistic and cultural development of the city; and WHEREAS, the arts enhance the built environment and social fabric of the community and are a fundamental part of Port Townsend's identity; and WHEREAS, it is the intention of the City of Port Townsend to ensure the continued support of public art through 1 % for the Arts funding; NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. PTMC Chapter 3.50, Public Arts Program, Repealed and Replaced. Port Townsend Municipal Code Chapter 3.50 (Public Arts Program) is hereby repealed and now replaced as set forth in Exhibit A attached hereto and by this reference fully incorporated herein. Section 2. Severabilily. If any sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase or work of this ordinance. Section 3. Effective Date. This Ordinance shall take effect and be in force five days following its publication in the manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular business meeting thereof, held this 6th day of October 2025. David J. Faber Mayor Attest. Alyssa Rodrigues City Clerk EXHIBIT A 3.50.10 Purpose and policy Section. The city of Port Townsend is committed to expanding public experience by advancing awareness of. and interest in. the arts. in connection with the artistic and cultural development of the city. A. In alignment with this policy, the city encourages artwork to be incorporated into city capital projects, as defined herein, and that a portion of the project's cost be allocated for the acquisition of public art, the upkeep of public art owned by the City, the replacement of public art at the end of its useful life, or the promotion and implementation of art programming. 3.50.020 Definitions. A. "Commission" means the Port Townsend arts commission. B. A "capital project" is defined as any project paid for wholly or in part by the City of Port Townsend to construct or remodel any building, structure, park, street, sidewalk, parking facility, or utility, or any portion thereof, including permanent fixtures to any building within the jurisdiction of the City of Port Townsend. However, the purchase of land, local improvement district projects including the City's participation in any such district, maintenance, repair, and operation, and the purchase of equipment are not considered capital prof ects. 3.50.030 Source of funds for municipal construction projects. A. All monies required by this section shall be deposited into the Municipal Arts Fund from which the Arts Commission shall create an annual budget to present to the City Council to review and recommend for incorporation into the City's annual bud _get approval process. All City departments shall deposit into the Municipal Arts Fund, out of any monies appropriated for any capital project an amount equal to one percent (1%) of the appropriation for the administration of the Public Art Program, excluding any funds from state or federal sources which are ineligible to be used in conjunction with Public Art Fund programs. One percent (1%) of the funds from multiple City capital projects may be accumulated in the Public Art Fund for the purposes as defined by separate resolution of the City Council. B. Only those capital projects exceeding the sum of seventy-five thousand dollars ($75,000) will be subject to the provisions of this section. At such time as the total capital project expenditure of any individual project exceeds seventy-five thousand dollars ($75,000), the one percent (I%)provided herein of all such monies expended for that capital project shall be paid into the Public Art Fund as follows: one percent (1%) of the construction contract award, excluding funds from restricted sources including the Transportation Benefit District and Olympic Gravity Water System Fund, and excluding any funds from state or federal sources which are ineligible to be used in conjunction with public art fund programs, including additive change orders or other alterations to the contract, will be placed into the fund. Washington State sales tax, design fees, furnishings, and administrative expenditures will not be included as part of the capital project expenditure. 3.50.040 General revenues to the municipal arts fund. In addition to funds as may be appropriated for municipal construction projects, the city council shall allocate an appropriation to the Municipal Arts Fund or other arts programs for the purposes enumerated in this chapter. 3.50.050 Arts commission responsibilities — Process. The Port Townsend Arts Commission shall follow any policies related to public art to make decisions re a rding what types of visual public art shall be purchased, what types of artists shall be eligible for contracts, and processes for accessioning, maintaining, and de -accessioning public visual art. The Port Townsend Arts Commission shall also adhere to any policies related to the promotion of and encouragement for public art programming. 3.50.060 Public arts projects — City council approval. Public Art Fund monies shall not be expended without the prior approval of the City Council. Nothing in this section shall limit the amount of money the City Port Townsend may expend for art, art programming, and administration of arts initiatives. 3.50.070 Municipal arts fund created. There is hereby created a special fund entitled the "municipal arts fund" into which all funds shall be paid that are received by the city from whatever source for the purpose of providing for the advancement of local cultural and artistic programs and services within the city, including federal, state or other funds to which the city may be entitled now or in the future, other funds as the city MU from time to time transfer into said fund, and revenues from performances or projects sponsored by the arts commission. Funds earmarked for funding public art for construction projects need not be placed in the municipal arts fund, but may remain part of the project construction budget. LU � � ? 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