During the City Council workplan meeting of January 21, 2017, Council Member Cimmino requested that staff review and present the possible release of performance security requirements in the December 14, 2009, Funding and Development Agreement between the City and the Better Billings Foundation (BBF). This matter was researched and then presented to the Mayor and Council during the July 17, 2017, work session. Based upon this presentation and the subsequent discussion by Council, the consensus direction from Council was for staff to bring back to a Regular meeting agenda within ninety days if possible, appropriate amendments to the City/BBF agreement which would eliminate the performance security requirements. The attached Resolution provides the amended language shown by strikethroughs in Section Nine, which eliminate the performance security requirements in the City/BBF agreement.

The Parks, Recreation and Cemetery Advisory Board ( Board)  met and discussed this issue during its November 28, 2017, meeting. Based on this recent discussion, the Board is proposing an alternative to the Council's previous direction to staff. The Board has recommended against eliminating the security provision in the Development Agreement with the BBF and recommends creating an ad hoc  City Council advisory committee to further study the financial security issue and report back to the Council at a later date next calendar year. The recent Board motion adopted at its November 28, 2017, meeting provides as follows:

Board member Tom Rupsis made a motion to recommend to City Council to not release the $100,000 Line of Credit at their December meeting but to establish a committee made up of Park and Recreation staff, Finance Department staff, Better Billings Foundation members, and Park Board members that can report back to Council with different options that would both free up the capital from the Better Billings Foundation as well as secure the City of Billings risk.  Board member Lew Morris seconded. On a voice vote, all were in favor and the motion passed.

If the Council chooses to accept the Board's recommendation, a Resolution creating an ad hoc committee will be required as by Section 2-224 of the City Code which provides:

Sec. 2-224. - Ad hoc council advisory committees.
The mayor and city council may, by resolution, create such ad hoc council advisory committees as needed. Provided, however, that all such committees must be created pursuant to an adopted council resolution establishing, at a minimum, the following:
(a) The purpose or charge of the committee;
(b) The scope of its responsibilities;
(c) The composition of the committee; and
(d) The duration of the committee.
The city administrator shall be charged with assigning appropriate staff to any committee created under this paragraph to ensure compliance with all applicable open public meetings law.


 

City Council may:

• Approve the proposed Resolution amending the Funding and Development Agreement,
• Amend the proposed Resolution;
• Disapprove the proposed Resolution; or
• Approve and adopt the Parks, Recreation and Cemetery Advisory Board recommendation through a Council motion that creates an ad hoc Council advisory committee to further study the issue as provided above in the Problem/Issue Statement section.

If the Resolution is approved, there is financial impact if the BBF ceases operating the Oasis waterpark as a family aquatic facility and should the property revert back to the City, both as provided in Section Three the Funding and Development Agreement of December 14, 2009, and as provided as a deed restriction in the Warranty Deed from the City to the BBF.The amount of this financial  impact is not precisely calculable if the facility reverts back to City ownership, however, Parks, Recreation and Public Lands Director Mike Whitaker has previously estimated that up to approximately $100,000 would be needed to repair the facility and re-open the facility under City management. This amount is the security that is being eliminated from Section Nine of the Funding and Development Agreement.

Based upon the Council's previous direction, staff recommends that City Council approve the attached resolution amending the current Funding and Development Agreement for Oasis Waterpark. However, staff will work with PRPL and prepare a Resolution creating an ad hoc Council advisory committee should the Council adopt the Board's recommendation previously summarized.