Keizer council presses KCFA leaders on shortfall, bylaws and insurance as group proposes fee, concessions and maintenance fixes

Keizer — The Keizer City Council used a June 8 work session to press leaders of the Keizer Community Fields Association (KCFA) for quick fixes after KCFA reported a large first-quarter revenue shortfall and governance gaps.

KCFA president Nick Wells told the council the association’s statement of activity for the first quarter showed revenue of about $582,445 and outlined a plan to reach the contract requirement of $120,000 per year. "We are putting our best good faith effort forward to do this right," Wells said, describing a proposed member-rate change, concessions and food-truck revenue, and a volunteer-plus-paid-custodian maintenance approach.

Councilors repeatedly pressed KCFA on three immediate concerns: the association’s governance and bylaw compliance, verification of insurance coverage (including directors-and-officers protection), and whether KCFA may revise member rates without council approval. Council President Star and others said KCFA has been operating with only two board members while the bylaws and state law require three; Wells acknowledged the shortfall in board membership and said KCFA would pursue emergency member meetings and recruit additional directors.

The legal and contracting framework mattered in multiple exchanges. City attorney Mr. Lindsay and staff reminded KCFA that the management agreement requires operators to comply with federal, state and local laws and that amendments to the agreement must be made in writing and signed by authorized organizational officers. Wells asked for guidance on whether KCFA could raise member rates; city staff advised that user fees and field rental rates are established by city council resolution and that any change would have to be returned to the council for adoption before KCFA could implement it.

On insurance, KCFA said it pays premiums monthly and provided proof of additional-insured status at the time the contract was executed, but KCFA had not yet confirmed whether it carries directors-and-officers (D&O) insurance. Council members asked staff to verify carrier confirmation and policy limits promptly.

To close the gap KCFA proposed several revenue and cost changes: raise prime-time member rates (Wells described moving from $20 to $40 per hour for prime-time use, with limits on discounted hours), collect 15% of gross sales from food trucks and 15% of concession profits, actively market unused prime-time hours to schools and clubs, and reduce payroll costs by increasing volunteer responsibilities. KCFA said tournaments and special events are a future target but that most tournament income must follow the city-set field rental rates and the organizers’ own team fees.

Council members repeatedly warned KCFA not to treat the planned revenue items as guaranteed before council approval. "You can't count something on a deficit recovery strategy if we as the city council haven't approved the new fee structure," one councilor said. City staff told KCFA to work with staff to draft a fee-resolution for the council to consider.

Given the size of the shortfall and the risk to city finances, the council set an accelerated oversight schedule. Council President Parson and others asked for a second-quarter report at the end of June and monthly progress reports at the end of July and August. Council affirmed that the contract runs through April 30, 2027 and noted that either party may terminate with 30 days’ written notice; staff outlined alternatives if KCFA fails to improve, including a new competitive procurement or transferring operations to an existing municipal contractor.

Mayor Clark and council members closed the session by listing immediate follow-ups for KCFA and staff: verify and document insurance coverage and limits; provide a dated, signed copy of the management agreement; cure any bylaw/state-law noncompliance and document membership/board composition; prepare a council resolution for any proposed fee changes; and submit the accelerated financial and operational progress reports.

The council adjourned after ordering those items and asking staff and KCFA to coordinate next steps. If KCFA fails to show material improvement through the monthly reports, council members said they will consider contract remedies or alternatives before the April 2027 contractual deadline.