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HomeMy WebLinkAbout2006-04-25 Pre• ~~ `` ~ PYl~1Gt"lI °~' ~`~' IDAHO ~/ '~'e CE,~ ~. Tneas«e V ni~v 1803 MERIDIAN CITY COUNCIL PRE-COUNCIL MEETING AGENDA Tuesday, April 25, 2006 at 6:00 p.m. City Council Chambers 33 East Idaho Avenue, Meridian, Idaho `Although the City of Meridian no longer requires sworn testimony, all presentations before the Mayor and City Council are expected to be truthful and honest to best of the ability of the presenter." 1. Roll-call Attendance: Shaun Wardle ~ Joe Borton _ C~ Charlie Rountree Keith Bird Mayor Tammy de Weerd 2. Adoption of the Agenda: ~~ v~.- 3. Lakeview Golf Course Lease Agreement Extension: /2~'oc2ed~, w/ f~ L~lc ~c%n,~i~ ~~.~'r~ 4. Executive Session per Idaho State Code 67-2345(1)(a) - (to consider hiring a public officer, employee, staff member or individual agent, not to include. This paragraph does not apply to filling a vacancy in an elective office) and (c) - (to conduct deliberations concerning labor negotiations or to acquire an interest in real property, which is not owned by a public agency): di3~ f~ * Approximate allowable time set for agenda item may change depending on the discussion. Please us the designated minutes as a guideline only. Meridian City Council Pre-Council Meeting Agenda -April 25, 2006 Page 1 of 1 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. .F. • gg, '~ ~ ,~' CITY OF ~~ 7~ ~ ~ t~ ~_~~~!- ~Y1G~1GE"YI ~ ~I IDAHO I tiF. cE;~ ER ~~ THE.A.SURE VNIY"Y INCE 1803 MAYOR Tammy de Weerd NOTICE OF PRE-COUNCIL MEETING CITY COUNCIL MEMBERS Keith Bird Joseph W. Borton Charles M. Rountree RERIDIAN CITY COUNCIL Shaun Wardle CITY DEPARTMENTS NOTICE IS HEREBY GIVEN that the City Council of the City of City Attorney/HR Meridian will hold aPre-Council Meetin at Ci}~, Council Chambers, g `~ 703 Main Street 898-5506 (City Attorney) 898-5503 (HR) Meridian City Hall, 33 East Idaho Avenue, Meridian, Idaho, on Tuesday, Fax 884-8723 Fire April 25, 2006 at 6:00 P.M. The Meridian City Council will be 540 E. Franklin Road 888-1234 /fax 895-0390 discussing the following agenda items: Parks & Recreation I1 W. Bower Street ~ Lakeview Golf Course Lease Agreement Extension 888-3579/fax 898-5501 Planning ~ Executive Session per Idaho State Code 6T-2345(9)(a)-(to 660 E. Watertower Lane consider hiring a public officer, employee, staff member or suite zo2 884-5533 /fax 888-6844 individual a enf, not to include. This ara ra h does not a I to g p g p pp y filing a vacancy in an elective office) and (c~(to conduct Police deliberations concerning labor negotiations or to acquire an interest 1401 E. Watertower Lane 888-6678 /fax 846-7366 in real ro which is not owned b a ublic a enc p ~~~ y P 9 Y Public Works 660 E. Watertower Lane suite zoo The public is welcome to attend the meeting. 898-5500/fax 895-9551 - Building 660 E. Watertower Lane `~~++++uultlt~~~tfg~ Suite 150 a ~ e~ae sgrP ~~ ~d \s 887-2211 /fax 887-1297 `~®..d DATED this 21st day of April, 2006. ;~\ ~ - Wastewater ~ ,~ 3401 N. Ten Mile Road _' _ 888-2191 /fax 884-0744 ~ "'~ '^, ~' " ~ -~ - Water CLERK WILLIAM G. BERG 2235 N.W. 8th Street 888-5242 /fax 884-1159 , ~, F 1J'i'~ ' ~ >~~ /% ~ ~,q r irs ~"`~ fof~ ~ ~~``',k` P~~r,~ll@ ~~+s Meridian City Pre-Council Meting Agenda -April 25, 2046 Page 1 AU materials presented at public meetings shall become property of the City of Meridian. Anyone desiring acxommodation for disabilities related to doaiments and/or hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. CITY HALL 33 EAST IDAHO AVENUE MERIDIAN, IDAHO 83642 (208) 888-4433 CITY CLERK -FAX 588-4218 FINANCE & UTILITY BILLING -FAX 587-4813 MAYOR'S OFFICE -FAX 884-8119 Printed on recycled paper .~_ ¢~~ R c ; F `. ,^gK CPT'!' OF ~ ~~~ ~~ e~i~i~-n -f~~ ` ~ ~:, ~`: C~ 193 MERIDIAN CITY COUNCIL PRE-COUNCIL MEETING AGENDA Tuesday, April 25, 2006 at 6:00 p.m. City Council Chambers 33 East Idaho Avenue, Meridian, Idaho "Although the City of Meridian no longer requires sworn testimony, all presentations before the Mayor and City Council are expected to be truthful and honest to best of the ability of the presenter." 1. Roll-call Attendance: Shaun Wardle Joe Borton Charlie Rountree Keith Bird Mayor Tammy de Weerd 2. Adoption of the Agenda: 3. Lakeview Golf Course Lease Agreement Extension: 4. Executive Session per Idaho State Code 67-2345(1)(a) - (to consider hiring a public officer, employee, staff member or individual agent, not to include. This paragraph does not apply to filling a vacancy in an elective office) and (c) - (to conduct deliberations concerning labor negotiations or to acquire an interest in real property, which is not owned by a public agency): * Approximate allowable time set for agenda item may change depending on the discussion. Please us the designated minutes as a guideline only. Meridian City Council Pre-Council Meeting Agenda -April 25, 2006 Page 1 of 1 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. u~_.:. CI"CY OF L_ " ¢~ ~YlG~1G~'yl ~ `~; IDAHO ,,yy~ F• 1~ cF ~~ %~ TREASURE V AMY & 7B 3 MAYOR Tammy de Weerd CITY COUNCIL MEMBERS Keith Bird Joseph W. Borton Charles M. Rountree Shaun Wardle CITY DEPARTMENTS City Attorney/HR 703 Main Street 898-5506 (City Attorney) 898-5503 (HR) Fax 884-8723 Fire 540 E. Franklin Road 888-1234/fax 895-0390 Parks & Recreation 11 W. Bower Street 888-3579/fax 898-5501 Planning 660 E. Watertower Lane Suite 202 884-5533/fax 888-6844 Police 1401 E. Watertower Lane 888-6678/fax 846-7366 Public Works 660 E. Watertower Lane Suite 200 898-5500/fax 895-9551 - Building 660 E. Watertower Lane Suite 150 887-2211 /fax 887-1297 - Wastewater 3401 N. Ten Mile Road 888-27.91/fax 884-0744 - Water 2235 N.W. 8th Street 888-5242 /fax 884-1159 B~®1 ~{r~ VF ~I~G-~i®VI~V~~ iI(~~~ L ~tlY~ fUIERI®IAN CITY CAUNCII. NOTICE IS HEREBY GIVEN that the City Council of the City of Meridian will hold aPre-Council Meeting at City Council Chambers, Meridian City Half, 33 East Idaho Avenue, Meridian, Idaho, on Tuesday, Apri125, 2006 at 6:00 P.M. The Mel7dian City Council will be discussing the following agenda items: Lakeview Golf Course Lease Agreement Extension Executive Session per Idaho State Code 6T-2345(9)(x)-(to consider hiring a public officer, employee, staff member or individual agent, not to include. This paragraph does not apply to frling a vacancy in an elective office) and {c)-(to conduct deliberations concerning labor negotiations or to acquire an interest in real properly, which is not owned by a public agency. The public is welcome to attend the meeting. ~®`ffiiRSgttIIBBIAAAAgAf~g~ DATED this 21st day of April, 20~. ~,~`, ~ ~ ~ ~~~~~a `// ~, ~. WILLIAM G. BERG, -~ CLERI~~~ ~ w Meridian City Pre-Council RAeeting Agenda -April Z5, 2Q06 Page 1 of~'r,rA A} I ~I1~~~~4~~ Ali materials presented at public meetings shall become property of the City of Mer~di~an. Anyone desiring accommodation for disabilities r®lat~1 to documents andlor hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. CITY I TALL 33 EAST IDAHO AVENUE MERIDIAN, IDAHO 83642 (208) 888-4433 CITY CLERK -FAX 888-4218 FINANCE & UTILITY BILLING - FAX 887-4813 MAYOR'S OFFICE -FAX 884-8119 Printed on recycled paper • • Meridian City Pre-Council Meeting April 25, 2006 The Meridian City Pre-Council meeting was called to order at 7:00 P.M. on Tuesday, April 25, 2006 by President Councilman Shaun Wardle. Members Present: Keith Bird, Shaun Wardle, Charlie Rountree and Joe Borton. Members Absent: Mayor Tammy de Weerd Staff Present: Bill Nary, Ron Anderson, Doug Strong and Will Berg. Item 1. Roll-call Attendance: Roll call. X Shaun Wardle X Joe Borton X Charlie Rountree X Keith Bird O Mayor Tammy de Weerd Item 2. Adoption of the Agenda: Bird: Mr. President. Wardle: Mr. Bird. Bird: I move we adopt the agenda as published. Rountree: Second. Wardle: It's been moved and seconded to adopt the agenda as published. All in favor. ALL AYES. MOTION CARRIED. Item 3. Lakeview Golf Course Lease Agreement Extension: Wardle: We have Dick Davis and I will make a note that in your packets and for the record we also have some documents provided by Lake View and Dick if you would like to join us and give us kind of a brief overview of the year and then we could talk a little bit about a lease extension beginning in the year 2035. Davis: Thank Shaun and members of the Council. Eric is on his way. We took a few pictures today to kind of show you guys if you haven't been out there what we have been doing. We have been there - I don't know whether we have been there a year yet, whether it is tomorrow or three or four days past a year, but right Meridian City Pre-Council Meeting April 25, 2006 Page 2 of 12 at a year and we are pretty happy with the accomplishments we have made. You know I think a lot of you have been out there and you have seen we redid the bar and restaurant and that is a nice, nice facility now. We bought a bunch of equipment, we hired some people who know what they are doing to take care of the course and we are getting a lot of good compliments on the condition of the course. We really have got some good people working for us. This year we destroyed three greens that were atrocious. They were poorly built, slowed up play, made people mad that they couldn't putt on them and so we took three of them out this spring and increased the size, about 70 percent on each green, flattened them out. We got a guy in here - he was a great guy to work with. He is 74 years old and shaped these greens and he has been doing this all his life. He is retired guy who lives over in Emmett and just loves to get out and get on a crawler tractor and do a little work once in a while. Through Cloverdale we got hooked up with him and he came out and he doesn't want a blue print, he doesn't want anything - he asks what do you want and you tell him and he says okay come back in four days and he pushes the dirt back and forth and come back - we changed one three times on him until we got it like we liked it, but he did exactly what we want and really knows what he is doing and these greens are going to be awesome. They are built right. They are drained right. We have got two of them seeded and the third one will be seeded tomorrow and we won't be able to play on them until probably mid-summer, but they are going to be awesome. We brought the lake clear out in front of the number one green and put two bunkers in front of it and it is really going to be a signature hole for the golf course. They really are going to be a neat deal. Wardle: Now, Dick just to interrupt for just a second. First off I certainly appreciate that we are redoing these greens because every time I missed a putt out there I always blamed it on turf. But, just for the record the Clerk would like to know which greens are we talking about for this year? Davis: Okay, 1, 6 and 7. Wardle: Thank you. Davis: 1, 6 and 7 and along with that we are redoing a bunch of the imgation system out there around those greens and on those holes. We put a net up at the end of the driving range this year. We didn't have to, but we just kind of felt for our liability sake we wanted to do that. It is about 280 yards from the tee to the -from the driving range to the net, but with an improvement in the equipment and these young kids that hit the ball like your (inaudible--) and some of these people -this is a 30 foot high net and it is going to eliminate any balls going over for those homeowners behind there. It cost us $30,000 to due, but we kind of felt it was worth it and so that is up there now and we are keeping an eye on people because there are still a few guys even with our limited flight range falls, if there is a wind they can still hit it over there. They won't hit the houses right behind the net because if they go over that far, they are going to hit the ones in the next Meridian City Pre-Council Meeting April 25, 2006 Page 3 of 12 (inaudible). So, we keep an eye on that and I have told the people, I said if you get hit over there call us and we will address it right now. We will get out on the driving range and we put up signs, you know if you are capable of doing that please refrain from that. So, anyway that is something we did. The maintenance facility is coming along great. We should be in there in another month. They guys are working inside now. The outside is pretty well done except for the brick columns on all four corners and there is three of them in the back to kind of make it look a little nicer and Bud Lannen is out there today, he is doing the bricks and he said he would probably be done with that by the middle of next week and our asphalt guy is out there as we speak. I just left him and he is staking that out to get his crew in Friday to start grading the deal to put asphalt down. So, anyway that is where we are. Play is way up and it's not where we want it, but it is going to be there and we have got a good computer system in the Pro Shop now that we can track rounds. When we took it over, I couldn't even get the figures as to what the rounds were in your past and now we can track 9 hole, 18 hole comp rounds, the whole ball of wax. So, we will have a good handle on that next year. How many rounds we are getting and the thing that I see with municipal golf courses is ground is so valuable anymore that I know two golf courses and one of them is my old -the one I used to own the Boise Ranch, they are seriously talking about some of those for subdivisions. You can make a lot more on a subdivision than you can on a golf course. So, there is two of them that are for sale right now to build houses on so it is going to make municipal golf courses that much more important. So, anyway that is kind of where we are. Eric, my partner is supposed to be here. He was stuck in traffic as we drove in here and he has got a few pictures of some of the stuff that we are doing. What we thought we would like to do is when we get done here in a month, probably or six weeks have all of you folks come out and we will give you a tour around. We will go look at those greens that we have redone and look at the maintenance building and we can -all our new equipment and our new carts and all of that kind of stuff. But, we want to get it done and looking good. It is kind of dusty and dirty out there right now. If you have got any questions, I would be - Wardle: Just to -Dick and Eric and I talked about the potential when they get the course finished to have us out -certainly, we need to notice that to the Clerk's OfFce, but maybe in addition to doing a tour we could have a small open house where we can talk to the neighbors and I will be the first to tell you, Dick, that having been in the middle of this I hear only positive comments about your organization and what you have done with the course. I tried to talk to as many people out there as I can and I have heard a lot of good news. Bird: Mr. President. Wardle: Mr. Bird. Bird: Dick I would like to thank you the way you have treated the young kids. I happen to have a couple of grandsons that live over at that course and the way Meridian City Pre-Council Meeting April 25, 2006 Page 4 of 12 they are treated and the way you treat the oldest one that plays on the golf team and the way you treat those kids - I don't know that course is - I am like Shaun I have heard nothing but positive out of that. Your restaurant has definitely had many, many raves from everybody that has been there that I have talked to and I have had the opportunity to play the course a couple of times this year. It is beautiful. It is in nice shape thanks to a lot of rain. Davis: Yeah, that helped. Bird: But also, just thanks to you investing in some equipment and going out and getting it done. I know of probably eight to ten people that are in your league that either played at Shadow Valley or Boise Ranch or Centennial last year, but come back because and I think you are just starting to get the rounds of golf that you are going to get. Davis: I appreciate that Keith and I think that you are right. There is my partner. Yeah, we had -they never had a ladies' league in the evening before. They had a group of ladies that played in the moming and it's a great group of ladies, but we have had to do kind of an educational deal out there because they were the ladies of Lake View and so then we said well we want to have a ladies' league in the evening so that all of the ladies have a chance to play even those that work. They can get off work and go play and so then it was the night ladies and the moming ladies (inaudible--). We got the evening ladies' league started and that is on Wednesday night and we have three flights which will handle 60 ladies. I think there are 54 that play in the ladies' league in the evening on Wednesday night and this is their first year. Last year we got men's league started in the evening and we had about 60 guys playing. This year we have 96 and it's kind of like Keith said they are starting to come around and actually 120 is maximum. So, that fills the whole course up. But, we have got 75 percent of the course filled up on Thursday night with men play. You know it is a fun deal for the people and we have got some other deals going and we do poker on Monday night, Texas Hold `em and give away a hat or a round of golf or something for a prize. The grand prize at the end of the year is going to be a season pass. So, we are having a little fun. I don't know what Eric has got here. Wardle: Mr. Rountree. Rountree: If Eric is ready I can hold my comments or I can make my comments now. Wardle: Why don't you go ahead? Rountree: I just wanted to say from observation having the now good fortune of being a neighbor, the course has obviously never looked better and I talked to Dick one Saturday night not long ago and asked him what he did and he said a little fertilizer and water works wonders and it has. They have maintained the Meridian City Pre-Council Meeting April 25, 2006 Page 5 of 12 course exceptional and it is a treat to get up in the morning and to look down two fairways and you can see a minimum of three machines coming at you, mowing the fairways and mowing the greens and that is almost everyday. They are working on the weeds and they have got a (inaudible) task there I will tell you and they have done a great job getting the weeds knocked down and the clubhouse is great it is really kind of -you know it is a nightlife, but it is kind of family oriented, too. You go over there for dinner and there are kids and folks and they are having a good time and the meals are affordable and they are good quality. I haven't eaten breakfast over there yet, but that is on the schedule to do and I hear that is fantastic, so it has become a real asset, I think, to the community, not just in the neighborhood out there, but for Meridian. Like Dick says they are coming along on the out building and I was a little dubious there for a while and waiting for the phone calls to start and it haven't had any yet. My buddy Jack hasn't called me yet, so I think that is probably going to be a good thing and you are sprucing it up to make it look a little better than just a flat building and that is great. Your grounds guys are doing a wonderful job. They have got a tree program kind of going on out there that if you want to plant some trees, you go to do right and pick your trees and I haven't figured out how the rest of the process works yet because Rich and I just can't seem to get together, but I have got two stakes out there where I want a couple of trees and I know what trees I want and I wrote them on the stake so I guess when I hear back we will know how that happens, but so far it is working. I haven't gotten rid of that spiked tree yet, but I will be working with Dick on -that and I think I can get that out of there in a hurry if you let me. Davis: This tree program that we have got, we made a deal with Do-Right to just let people come down there and pick out - I think we picked like 40 varieties of trees that would be good in that type of soil. Some deciduous trees and some Evergreen trees and so if people want to plant a tree out on the course, they can go down there and pick one out and then we go pick it up and plant it and get it all set for them and stake it out. Rountree: I was going to ask you, Bill a question on that and I know we don't have a program set up, but since that is a municipal facility and in 503(c)(1) or whatever. As a city is there someway that they could maybe encourage more of that if they want more trees out there (inaudible) -for the neighbors to say you can get a tax donation on this if you donate. Trees are not -you are talking at least a two inch Caliper deciduous tree and the $125 to $250 and Conifers are anywhere from $100 to $200 and you know I am not asking for that, but I would think that if he could maybe work that into his tree program that might be some additional selling point for you to get that to happen. Nary: Mr. President and members of the Council and Councilman Rountree that is an interesting question and I don't have the answer today, but we will certainly look and see. The homeowner pays for the tree or--? Meridian City Pre-Council Meeting April 25, 2006 Page 6 of 12 (Inaudible discussion) Nary: The homeowner pays for the tree. Rountree: I assume you guys can plant them. Davis: Oh, yeah, we plant them. So, there definitely could be a donation. Bird: But you don't have to be a homeowner, I mean I could go get one. Davis: Yeah. We are looking at planting a lot of trees over the next few years, I mean hundreds. Bird: It is going on city property. Rountree: Looking for a few nickels on the income tax, you know - a $500 donation, get a couple three trees. Davis: Just in case you do get any calls, I already got two on dandelions and I have told both the people that we have invested $1 million in this course already and we are not going to let the dandelions go wild. It is just that our guys have been working on those greens. We have got to get those planted and like I say the last one will be planted tomorrow and then we are planning on spraying everything because we have got the opportunity to host one of the five major IGA golf toumaments in the state this year and that is the IGA Men's Amateur 2 and that is going to be the middle of August and so we felt really good that we were asked to do that. All of the time that I was at Boise Ranch we never got asked to host one of those toumaments and we got asked this year. There are five major toumaments in the state and we are hosting one of them this year and I have got radio lined up to do a remote that day to talk to the players. It will be players from all over the state. Anyway, we have got to get those greens grown in. That is our top priority. Rountree: Are you setting up some kind of volunteer program for that? Davis: We will have a volunteer program for that. Wardle: You bet, I would like to invite Eric Oaas to come up and we will get a - (Inaudible discussion) Wardle: Eric you could maybe just kind of go through your presentation here real quickly and then we will address just the basics of the lease and maybe ask a question or two. Meridian City Pre-Council Meeting April 25, 2006 Page 7 of 12 Oaas: All right. President Wardle, Councilmen we really appreciate the opportunity of being here and I know Dick has given you all the details. We will just sort of walk through these slides real quickly. For those who haven't seen the inside now this is how it looks and this picture doesn't do it justice, but it looks fabulous in there. This is in the clubhouse. Here is the maintenance building on the far right side and it doesn't show real well now, but we'll have right up in here these will be brick, all of these to sort of give it a real nice external appearance, brick columns, but the building itself looks very, very nice. Here is the -just generally speaking this is what the course looks like. It is in just prime condition. I played out there Saturday. It was just fabulous. Wait until you see what Dick and the team have done on 1, 6 and 7. Okay here is the first hole and back out in here is your -let's see as you are looking from the clubhouse - so we will flip it again to show you where the changes were that -okay that first one did that show where --? Ron could you put that last one back up, please? Okay so is it this piece right here? Davis: It's the one right in the front. Oaas: So, the first tee box is back over in here. But, now you can't play straight through. You have got to lay up here and hit it over the water and this first green is just fabulous. I would match that first green up against any green in the whole Valley. It looks wonderful. Bird: Did you lengthen it or shorten it? Davis: Yeah, it is about 70 percent bigger than it was. It is longer. It is 100 feet from front to back and we got a gazillion (inaudible) that we can make - Bird: And it doesn't sit like that? Davis: Yeah, it doesn't sit like that. It is just nice and (inaudible) -like for tournaments we can put a pin behind the bunker, you know for (inaudible) reward type thing for the really good guys - it is neat. Oaas: Now this is number 6 and Dick and the team have extended the pond here between 6 and 7 and of course they will be watering this very, very soon and then - do you have pictures of the greens on 6 and 7? (Speaker unknown): On the next one. Oaas: Okay. Bird: You (inaudible) back into 6, the water? Davis: We ran it south along - we moved 7 green back 25 yards and around the lake another 60 or 70 feet - Meridian City Pre-Council Meeting April 25, 2006 Page 8 of 12 Bird: On pass that? North of that? Davis: Along the side the green. Oaas: This is number 7 right here, Dick, isn't it? Davis: Yeah. Oaas: The number 7~" green and again these pictures don't quite do it justice, we are anxious to get you out on the course. Here is a typical client response: "I had stopped going to Cheny Lane because of its poor conditions, but now Lake View has brought us back and we couldn't be more impressed". This is not an isolated response, right Dick? Wardle: Let me, if I can lead into the specifics on the lease analysis that we are considering, the City Attorney's Office and I, specifically Ted Baird have met several times with Lake View Golf Course. The first thing I am going to point out is that our minimum lease payment, which is currently $6,000 per year; in the year 2035 moves to $100,000 per year. In the year 2045 the minimum lease payment to the city is $150,000 and then in the year 2055, it moved to $200,000 per year. So, incrementally we talk about the city achieving value from its investment. These are minimums that I would like to point out. In the formula that we have calculated and you will see - I don't know if you got the performer, but you have it in your packets. One of the first things that we talked about is the city re-contributing back into the improved capital improvement of the course and that is I think one of the things that we have had over the past is how are we going to improve this and to make sure that the tenant doesn't simply stop improvement of course and have some of the conditions we have had in the past. So, the city share of, outside of the minimum, the city share of capital improvements being 25 percent and above and beyond that a shared revenue multiplier, the city's share would be as follows: greens fees, 5 percent; golf carts, 4.5 percent; food and beverage, 2.5 percent; and pro shop, 1 percent. Eric don't -what was our analysis for the first year and what that could calculate out to? Was it -? These are all projections, which is why we have a minimum. Oaas: President Wardle this is actually five year increments, but based on the revenue model or the formula that President Wardle just discussed -what we did is we took, we just started with a hypothetical growth rate from this year going forward and out 30 years from now this number tends to look pretty large, but this is a five year, combination years 31 - 35 of a hypothetical revenue of - I know this sounds outlandish, but $48 million on a five year basis, which would be about $12 million a year or about $10 million, $9.5 million and hypothetical that income would (inaudible) out $4.8 million over that five year period. The capital improvements would be about $2.2 million, but if we calculated based on the 5 percent of greens fees and 4 percent of carts and what is it 2 percent and 1 Meridian City Pre-Council Meeting April 25, 2006 Page 9 of 12 percent, but the gross lease amount would be $1,386,000 over this five year period for the City of Meridian. Now the minimum payment is this -this is that $100,000 we talked about so obviously -and the way that we would propose it would be that it would be the higher of either the minimum or this calculated amount, so in this case for that five year period, it would be $1.4 million to the City of Meridian rather than - Bird: $250 to $60,000 per year. Oaas: So, what - we then just added each five year period after that and you can see what happens to the city's portion of the -essentially it is a revenue sharing agreement with the City of Meridian. Wardle: Questions on the model? Bird: Looks good to me. Rountree: I am not too worried about 45 or 55 years from now. If in 35 years I am still well enough to walk around it, I will be feeling good. Wardle: One thing that we did want to address Council is that one of the things that we have heard with the past tenant and the past lease that we had was that it automatically renewed without really the City Council having an opportunity to think in depth on this and hopefully this is forward thinking enough that if the course does certainly what we think it is going to do then not only do we get a nice minimum payment, which I feel is certainly fair, but there is the opportunity for the city to have that additional revenue to pour back into youth programming or any of the other things that could make it the best (inaudible). Rountree: It is a great move forward. Bird: Mr. President. Wardle: Mr. Bird. Bird: I think the thing we need to look at starting right now is every year that they do the improvements puts money in the city's pocket and just value if nothing else. I mean that land definitely gets more valuable and it is like Dick was saying privately owned, it is probably too expensive to be a golf course, but municipal you can but that is the way that I look at it and I think 25 percent starting in 2035, 25 percent back in for capital improvement is a little investment for the city for what they get out of it. I think it is a great extension to the contract. The public should not have any problems with it. Wardle: There is evidence by meaning this evening, the last time we had a police negotiation with a former tenant we had a full room. This evening we have Meridian City Pre-Council Meeting April 25, 2006 Page 10 of 12 you know -certainly there are people that are very interested, but I think it shows good faith both on the city's part and on Lake View's part to trust in what is happening and that things are going to continue to improve. Just from a standpoint I think certainly the first thing we can do is accept the offer to come out and tour the course when ready and I will work with the Clerk's Office to do that. Mr. Nary am I correct in assuming that we can with the Council's approval finalize the lease extension and bring that forward as a resolution? Nary: Mr. President, members of the Council that is correct. If that is the direction, we can have a resolution prepared and bring that forward. Rountree: Do we need a motion in that affect? Nary: Sure. Rountree: Mr. Chairman, I move as such that we proceed with the finalization with the lease agreement and prepare a resolution for Council's consideration and approval. Bird: Second. Rountree: Do you have a date certain in mind? Bird: They are good through (inaudible). Nary: Mr. President I am certain we can have it on by next Tuesday. If there is a delay it would only be another week. But, we should have it by Tuesday. Wardle: We have a motion and a second to bring forward a resolution to approve golf course lease extension. Mr. Berg will you call roll please? Roll Call: Rountree, aye; Bird, aye; Borton, aye; Wardle, aye. ALL AYES. MOTION CARRIED. Wardle: Dick and Eric thank you very much for all your hard work Item 4. Executive Session per Idaho State Code 67-2345(1)(a) - (to consider hiring a public officer, employee, staff member or individual agent, not to include. This paragraph does not apply to filling a vacancy in an elective office) and (c) - (to conduct deliberations concerning labor negotiations or to acquire an interest in real property, which is not owned by a public agency): • Meridian City Pre-Council Meeting April 25, 2006 Page 11 of 12 Wardle: Executive Session 67-2345(1)(a) and (c) Bird: So moved. Rountree: Second. Wardle: It's been moved and seconded to adjourn into Executive Session. Mr. Berg will you please call roll. Roll Call: Bird, aye; Rountree, aye; Borton, aye; Wardle, aye. ALL AYES. MOTION CARRIED. Wardle: Council I would accept a motion to come out of Executive Session. Bird: Mr. President. Wardle: Mr. Bird. Bird: I move we adjourn out of the Executive Session. Rountree: Second. Wardle: It's been moved and seconded to come out of Executive Session. All in favor. ALL AYES. MOTION CARRIED. Wardle: Just for the record, I will note that the Mayor joined us while in Executive Session. Motion to adjourn. Rountree: So moved. Bird: Second. Wardle: It's been moved and seconded to adjourn. All those in favor. ALL AYES. MOTION CARRIED. r~ L~ Meridian City Pre-Council Meeting April 25, 2006 Page 12 of 12 MEETING ADJOURNED AT 7:24 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) APPROVED: TAMMY DE ~ R4'~~~ ~_ d`,®s~ ®~® v~ ~,, °"r era Rj R r: ,~ °~a ~~ ~s® _ ,w:,~~TTES EDP ~~ ~~~ /PA ~ ~y"ra a\®~ Y Y O ",rrareorr9 ro~a~raa~ati ~ Z ~ ®6 DATE APPROVED ILLIAM G. BERG, JR.~CITY CLERK • April 21, 2006 MERIDIAN CITY COUNCIL MEETING April 25, 2006 APPLICANT ITEM NO. S REQUEST Lakeview Golf Course Lease Agreement Extension AGENCY CITY CLERK: CITY ENGINEER: CITY PLANNING DIRECTOR: CITY ATTORNEY CITY POLICE DEPT: CITY FIRE DEPT: CITY BUILDING DEPT: CITY WATER DEPT: CITY SEWER DEPT: CITY PARKS DEPT: MERIDIAN SCHOOL DISTRICT: ADA COUNTY HIGHWAY DISTRICT: SANITARY SERVICE COMPANY CENTRAL DISTRICT HEALTH: NAMPA MERIDIAN IRRIGATION: SETTLERS IRRIGATION: IDAHO POWER: US WEST: INTERMOUNTAIN GAS: MERIDIAN POST OFFICE: OTHER: Contacted: COMMENTS See attached Date: Phone: Emailed: Staff Initials: Materials presented at public meetings shall become property of the CMy of Meridian. Tara Green Page 1 of 1 From: Ted Baird Sent: Tuesday, April 18, 2006 3:45 PM To: Bili Nary Cc: III Berg; Tara Green Subject: F1M: Current financial model for Lakenew Meridian Follow up Flag: Follow up Fiag Status: Green Attachments: Lease F~ctension Model 10.5.05.x1s This is on the Precouncil agenda for next week. It pertains to an upcoming amendment to the Golf Course Lease to firm-up the terms of the second 30-year lease period. From: Kelly Fuller [mailto:kelly@oaaslaney.com] Sent: Friday, ~cember 23, 2005 9:42 AM To: Ted Baird; Kim Clarke Ce: T. Erik Oaas Subject: Current financial model for Lakeview Meridian Ted, Here is the most recent financial model. You will probably want to print the tabs `Assumptions' and `Summary' only. (The tab `Model' shows all years and the'Sumrnary' tab rolls the years into 5 year increments to make it more readable,) Kim, Please print the first two tabs for Erik. Thanks, Kelly Fuller 4!21/2006 February 15.2006 Councilman Shaun Wardle President, Meridian City Council City Hall Meridian, Idaho 83651 Dear Councilman Wardle, We are pleased to be invited to the City Council to provide you a status update and present our plans for the Lakeview Meridian Golf Club. Additionally, as promised we have prepared a proposal for the 30 year extension to the lease executed last fall. First, the lease extension proposal incorporates the concept that the City of Meridian ought to be compensated for its ownership of the course based on the revenues earned at Lakeview Meridian Golf Club. There is a simple formula for calculating the amount earned by using a fixed percentage of each revenue component, (i.e. green fees, cart rental, food and beverage and pro shop), summing all four component amounts and comparing that total to a guaranteed minimum payment. The City will realize the larger of the two amounts from its investment subject only to a deduction for capital improvements (i.e. allocation of 25% of total eligible expenditures). The plan summary is attached. Second, we are pleased to tell you about all the exciting and positive changes we have made to the Clubhouse, and the status of the Maintenance Building as well as the planned site improvements. A site drawing is attached. Finally, we have exciting plans for the first three hole improvements to be undertaken this year. We will begin reconstructing the greens on holes 1, 6 and 7 and installing other necessary changes as soon as the weather allows. The drawings showing the proposed changes to each hole are attached. Thank you again for your support, we hope the City of Meridian is pleased with our progress to date and we look forward to the exciting things to come at Lakeview Meridian Golf Club. V truly ours, . ~~ 'char avis Lal a eridian Golf Club r Oaas L LC P.O. Box 2020 • Boise, Idaho 83701 Ph. (Z08) 429-9596 • Facsimile (208) 429-9597 • Oaas Laney Lakeview Meridian Golf Course Lease Analysis -Assumptions February 15, 2006 Minimum Payment to City (Years 2035 - 2065) Minimum lease rate beginning in 2035 is $100,000 per year Minimum lease rate beginning in 2045 is $150,000 per year Minimum lease rate beginning in 2055 is $200,000 per year Alternative Minimum Payment Calculation Revenue SourceSAl * Revenue Multiplier B) = Gross Lease Amount Greens Fees 5.0% Golf Carts 4.5% Food & Beverage 2.5% Pro Shop 1.0% The City of Meridian will contribute 25% of Capital Improvement expenditures beginning in 2035. Capital expenditures that are eligible for the City's contribution allocation will include; course repair, hole redesign, irrigation, golf carts and other maintenance equipment, pressure washer, drill seeder, maintenance facility and other similar items. 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N 3 ~~ ~ o +~ m k ~~'4 c R ~ ~ s~ ~ o~ c"c Y ^ma O ~~~ ~ IYO n ~( 1+ "m ~1 X ~ ~ O '~\ ~~ fly a~ ~ ~ ~~ ~ O O g~ ~ -~-~ R~~ -o A„ ~~, o ~~~ ~ ~ ~ O~ ~ ~~ ~ ~ x~ d ~ ~ ~ iU' : ~ ~' r~ ~ ~~ ~ ~ i~ / ~ a ~~ ~`~ ~ D O O ~~ ~~ a m pO 00 ~ L,^ ~ C O L ~~ ~ ~ ~ ~ O ~~~ Z ~ ~ ~ ~ ~O ~ ~ O ~ ~ s I O a ~, _ ~C ~ o ~O % `' 00 W m ~~ ~ O L ~ r ~~ ~~ ~~ m ~ m ~ l~ U i ~~ _ ~ rrL ~ < ., "' O _ ~ .Aai' f(y'~ p~ I c /a ~ W U O ~~~ ~ O 01/ i ` +~ U 9 ~a~ °'~ /~ O O 6 1 0 y L U i.~ y $~ i ~ O a~ o` O ~°~ ~ _ ~ ,.w .~ w r- {~ V coDi N ~ N~ ata, ~/ $ '~ 7 I~ ~ N '0i•1~ ~O O O ~II (T7 ~ m~ i+ S *0 O O m.u f'jG ~~~ ~ ~ 0 0 0 o c C c C A, p~"a e(4 ~ ® ~ ~ U c m ~ m ~ ~ 1~ i ~~° c c W O r- ~ a a A, _~ ~ ~' ~ _~ ~g w w / ~ Sa~I ~~ ~8 ~~ z°rni ~ ~ ~~ ~ ~ ~~ ~ a April 21, 2006 MERIDIAN CITY COUNCIL MEETING April 25, 2006 APPLICANT ITEM NO. 4 REQUEST Executive Session per Idaho State Code 67-2345(1)(a)(c) AGENCY CITY CLERK: CITY ENGINEER: CITY PLANNING DIRECTOR: CITY ATTORNEY CITY POLICE DEPT: CITY FIRE DEPT: CITY BUILDING DEPT: CITY WATER DEPT: CITY SEWER DEPT: CITY PARKS DEPT: MERIDIAN SCHOOL DISTRICT: ADA COUNTY HIGHWAY DISTRICT: SANITARY SERVICE COMPANY CENTRAL DISTRICT HEALTH: NAMPA MERIDIAN IRRIGATION: SETTLERS IRRIGATION: IDAHO POWER: US WEST: INTERMOUNTAIN GAS: MERIDIAN POST OFFICE: OTHER: Contacted: Date: Phone: Emailed: Staff Initials: Materials presented at public meetings shall become property o}the Ctiy o}Meridian. COMMENTS