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HomeMy WebLinkAboutLease Agreement with Lakeview Golf Course, LLC for City of Meridian's Municipal Golf Course Addendum2013 ADDENDUM TO THE LEASE AGREEMENT FOR THE PROVISION OF GOLF COURSE OPERATIONS AT CITY OF MERIDIAN'S MUNICIPAL GOLF COURSE BETWEEN LAKEVIEW MERIDIAN INVESTORS LLC AND THE CITY OF MERIDIAN Whereas, this Addendum, made this ~ day of September, 2013 to the above- captioned Agreement between the City of Meridian and Lakeview Meridian Investors LLC dated May 17, 2005 (AGREEMENT); and, Whereas, the parties desire to update the agreement in certain particulars as negotiated by the parties. NOW THEREFORE, the AGREEMENT shall be modified in the following particulars: A. IDENTITY OF LESSEE: The Lessee under the AGREEMENT shall be Lakeview Meridian Investors, LLC, an Idaho Limited Liability Company. B. CA TAL IMP MENT :Section 2(E) of the AGREEMENT shall be superseded and replaced with the fallowing: Lessee shall construct capital improvements upon the leased premises each year with a minimum value of at least six thousand dollars ($6,440.40} in accordance with the provisions set forth in Section 7, hereinafter. This requirement shall be in place for a seven year period begining on October 1, 2012 and ending on September 34, 2019 Section 7 of the AGREEMENT shall be re-named "CAPITAL IMPROVEMENTS" and the first paragraph of said Section 7 shall be deleted and not replaced. C. GROUNDS MAINTENANCE: Exhibit "F" to the AGREEMENT (the Grounds Maintenance Services Management Plan) shall be superseded and replaced with the following: GROUNDS MINIMUM MAINTENANCE SCHEDULE During active tgolf season (Generally May 1 S to October 15r) Lessee shall undertake the following maintenance activities as a minimum baseline (Maintenance during off-season shall be as needed) 1) Mow greens 6 days per week. 2) Mow tees 2 days per week. 3) Mow fairways 2 days per week. 4) Rake sand traps 2 days per week and spot rake as necessary. 5) Change cups 3 days per week. 6) Mow practice area 3 days per week. 7) Change tee boxes 4 days per week. 8) Fertilize tees, fairways and greens at rate of .75 pounds of nitrogen/1000 sq ft, per year with applications divided at operator's discretion. 9) Aerate fairways every other year. 10)Aerate and sand greens 1 time per year. 11)Top dress greens every 6 weeks. 12)Groom greens as necessary. 13)Mow rough 1 time per week. D. PAYMENT OF RENT: Section 5 shall be amended to read as follows: a. Lessee shall pay the sum of Six Thousand Dollars ($6,000.00) per year, in advance, as rental. This annual payment shall be due on the first day of October, beginning on 10/01/2013. i. For the seven year period ending on September 30, 2019, Lessee shall be relieved of its obligation to pay annual rent upon a showing of compliance with the capital improvements construction requirements for the preceding year set forth in Section 2(E) of this AGREEMENT. ii. To qualify for this annual relief from the obligation to pay rent, Lessee must provide proof of compliance to the Director of Finance each year, at least one month prior to the due date. iii. The Director of Finance shall review and verify such proof and forward it to the City Council for approval on the next available Consent Agenda or other agenda presentation. iv. In the event that Lessee fails to provide proof of compliance in any given year, or if the City Council does not approve the submission, the annual rent for the following year shall be due and payable on the first day of October. E. ACCOUNTING RECORDS: In Section 6(B) of this AGREEMENT, the reference to "City's Administrative Services Directori' shall be replaced with "City's Finance Director or designee." F. REPORTING: In Section 8(K) and Section 9(U)(1) of this AGREEMENT, references to the "Mayor" or "Mayor's representative" shall be replaced with "Director of Parks and Recreation or designee." G. TAXES AND ASSESSMENTS: Section 9(E) of the AGREEMENT shall be re-named "Taxes and Assessments" and the following sentence shall be added to the existing text: Annual irrigation assessments will be paid directly by City, and Lessee shall reimburse City for the full amount of the irrigation assessment on or before the due date set by the irrigation district. _, All other terms of the AGREEMENT shall remain the same. fN WITNESS WHEREOF, the parties do execute this Addendum the day and _r. __a _~_ .u_ )!Gill IIfAI c1UVVC VIlIILLCII. Attest: Jaycee LAKEVIEW MERIDIAN INVESTORS, LLC an Idaho limited liability company CITY OF MERIDIAN, IDAHO by OAAS LANEY, Inc, an Idaho corporation its Manager MINUTES FROM 2Q12 DISCUSSION OF PENDING ADENDUM Merid+an CIly Council Workshop November f3, 2012 Page 3 of 38 Roll Call: Bird, yea; Rountree, yea; zaremba, yea; Hoaglun, yea, De Weerd: All ayes. Motion carried. MOTION CARRIED: ALL AYES. Item 5: Community ItemslPresentations A. Annual Update from Lakeview Golf Course De Weerd: Jtem 5 is our Community Presentations. Today we stave with us Eric and Jerry. Welcome. Oh_ And Clint. And Clint. I saved the last for the bes#; right? Okay. Item 5 A. Oaas: Madam Mayor City, Councilmen, I appreciate the opportunity to come and speak with you today to give you our 2t)12 progress report on the -- on the golf course. !f we want to flip to the second slide. Holman: Mr. Oaas, you can take that pen and tap in the lower !eft-hand corner_ There is a forward and back. Bird: Okay, Got it. Thank you. l see here. All nigh#. Pertect. From an operation standpoint Lake View Meridian investors, which is my partner Steve Laney and 1, remain as the Lessor. Oaas Laney are the sole members of the LLC that is the lessor of -- for the golf course. We have renewed our contract with Raven Golf -- De Weerd: Eric, can you pull that microphone in front of you? Thank you. Oaas: We have renewed our contract with the -- with Raven Golf Services to manage the golf course property and as you know and we have come to learn over and over again, they are very well respected in the valley and manage a number of courses throughout Idaho. Our head professional is John Wallace. John has been with us a couple of years now and he is doing a fabulous job, as well as our course superintendent Rich Rush is -- has just done a fabulous job. Our capital improvements and what we have ~- some of the things that we have done to the golf course this year are - we are pretty proud o#. First, we spent an the clubhouse renovation, on the restaurant and bar, about 11,567 dollars. This included painting, redoing a lot of the kitchen area, recarpeting, reupholstering chairs. It really -- really was a major face lift to the - to the clubhouse operation and it certainly shows. This does not include the amount of the -- that was contributed by the men's and women's association and the volunteer work, this is strictly the out-of-packet cost for the golf course. Tree planting -- we were fortunate enough to -- to be donated several hundred frees by Cloverdale Nursery and we, with the help of Raven Colf Services, had -and the Boy Scouts, did a number of plantings this year at the golf course and these trees have just -- already they are jus# significantly improving the esthetics of the golf course. We also ins#alled a pond pump on the practice range in front of the clubhouse, which from an esthetic standpoint Meridian Clty Council Workshop November i3, 20i2 Page 4 of 58 the water and the sound of the water is very nice, plus it helps with mosquitoes and i# also helps move the balls -- the floating balls closer to -- easier to pick up. And, then, finally, we put a fire pit and a barbecue on the patio and the total -total for this year alone was over 20,000 dollars. The current challenges -- what I did in here is !pulled a slide from our presentation of a couple of years ago and I #hought, well, it would be kind of interesting to see how we compare now to where we were a couple years ago. Golf course play across the valley and nationally has declined duo to the economv and. obviously, this has continued and is continuing. The financial issues have created significant cash flow challenges. We Dave made pretty substantial progress in this regard and have certainly eliminated a lot of the dire overhead debt issues, but the cash flaw challenges still continue. The irrigation system inadequacy causes operational problems and additional lobar for watering and that -- that is continuing, but as you will see in the video that f have at the end of the presentation, the golf course is just in tremendously good condition and Rich and his team, under the direction of Clint, have -- have really done a phenomenal job. And, then, finally, we -- we had cart paths that were in signii•ECant disrepair a couple years ago. Well, obviously, we know that through a lot of volunteer help and donations and investment on the part of the golf course, we got those in very good shape. Current opportunities. Loyalty of Lake View Golf Course golfers is incredible. The men's and women's association have done an awesome job continuing to do things that -- that help enhance what we are doing at the golf course. They worked. on a bridge. repair, a paver project, the bar -- pops, The bar s#oop. That should be bar stool upholstery and the port-a-potty enclosure, which is -- which is sort of an eye sore, that they donated the materials and -- and we provided the labor to put it up. So, they are very active and we certainly are appreciative for what they are doing. The course maintenance is excellent. It was a remarkable effort this summer, even with our extremely hat temperatures. The greens, in our perspective, are much better than nearly all of our peers. Next I want to talk about a capital improvements plan. It`s -- we have put together afist -- not in any parficular order, but a list of items that we think need to be addressed and we intend to address over the next seven years. First on the list is pretty self explanatory. Purchase lease golf carts. When you have -- our target is to have a fleet of 40 operational golf carts in process or in service at a!1 times. We are very -- came very close this past year to -- to reaching that. We had #o bring in some - some rentals from time to time, but overall we are -- we got the golf carts pretty well in hand. We have got -- we have got the last group of batteries replaced next year and, then, we should be in gaud shape. Rework and refurbish number eight and number greens. We also want to relocate and rebuild the main putting green back to the area that's a little bit to the -- to the west of where it's currently located and right now it's -- it`s a little bit like putting on the surface of a bowling half, it's -- and from our perspective we can do a lot better by getting it over into that surplus area between that area and the -- and the parking lot and maybe even making it a two tier putting green. ~n the bunker renovation, this is something that -- that the bunkers are in significantly better shape now, but -- but we will be rebuilding bunkers over the next several years. Cart paths replacement we know that work over the next several years. Cart path replacement. We know that the work we did last year was -- was solid, but we will -- we will need to replace and redo cart paths over the next several years. That's just -- that's just something that's a given. And, then, finally, we have a general area caged landscaping Meridian Ci(y Council WoAcshop November 73, 2012 Page 5 of &8 projects that will include things like rebuilding tee boxes and -- and providing additional landscaping, you know, throughout the golf course. And, then, finally, !just wanted to thank you, Council and Madam Mayor, for ail your support, particularly Councilman Rountree and Madam Mayor for attending our golf course focus meetings and offering your support for what we are -- what we are trying to do and we think we have made some pretty incredible progress. I have got a -- I have got just a short video that -- that we had taken this summer, which shows -- and this is late in the summer_ !t shows tnP quality of the golf course. You can see throughout that there are a lot of -- show a lot of new planted trees. You can see the -- the fountain aff to the upper right-hand corner. But the thing to notice is the quality of the course and how green the turf is and how incredibly high quality the putting greens are. Our --our superintendent and his team have done just an awesome job. With that, we would like to -- I'd like to invite Jerry and Clint to come up here and we would be happy to answer any questions you might have. De Weerd: Thank you, Eric. Council, any questions? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Just -- and I thank you for keeping it up. !t's the best it's looked in -- ever. All your golfers are very happy. Keep it up, Eric. Appreciate it. Jerry. Clint. Thank you very much. Oaas: Thank you, Councilman Bird. De Weerd: I think you can tell -- 1 appreciate the slide fhat you added with acknowledging the loyalty of the men`s and women's golf associations and their confidence that is showing through, them stepping up and getting more engaged and being more of a part of the improvements that you see out there and I think that was probably the time that built the trust and the respect, but you can see that it's -- it's a mutual respect and -- by what they have engaged themselves in, too. So, congratulations on that. Breaux: Thank you. We are really trying to satisfy -- De Weerd: You want #o -- I just needed you to step forward to make sure that was on the record. Breaux: I wanted to make that part of the record. We are trying to satisfy Mr. Barton. He's our -he's the biggest -- and I also saw the score card, Madam Mayor, when you were playing the other day with your husband and how bad you beat your husband on the golf course. You know, that's -- Meridian Cify Council Workshop November 13, 2012 Page 6 of 68 De Weerd: Well -- and that was not even swinging a club. I just went walking with him. thought you were going to get after me, because I didn't pay. Breaux: You didn't pay? Oh, never mind. De Weerd: I didn't pay to walk. I was along -- !was his caddy. Qther comments, questions? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba, Zaremba: 1, too, would like to add my #hanks for how well the golf course is being taken care of. I'm not a golfer, but many of my neighbors are and they seem #o be happy with how things are going and just from my observation of people that do go by, they -- I know you're net as busy as you could be and it is a slow time, but i do see quite a few golfers out there and they seem to be happy and I want to cornpfiment you on that and as a neighbor of the golf course 1 appreciate - Breaux: Well, we appreciate that and, you know, the economy is getting better, more people_ are playing .golf, rounds are up a little bit. Not a.lot, but they.are.up a little bit. And the golf course continually gets better. We don't hear a lot of compliments when the golf course is good and peapfe are playing well, then, #hey don't complain too much, so we don't hear a lot of that. So, we especially appreciate that. Eric, are you listening? Zaremba: Well, I think the evidence is tha# you have more and more people playing. I mean i remember many years ago before you guys were there beautiful days would go by wi#hou# a single golf cart out there. 50, (think that's an improvement. That's it. Ida have a couple of questions about the presentation. You mentioned that it was an ongoing issue with the irrigation where you -- it's not all in the right places -- I mean we have known this for many years and you get wet spots and dry spats and stuff. I didn't see on the CIP that you're addressing that. Is that something that you are working on7 Did) miss that? Oaas: We are -- Councilman Zaremba, we are working on that. We -- we are still hopeful that -- tha# there might be a possibilify of -- of utilizing reclaimed water, but we have done some preliminary work and I have also done some preliminary work to investigate that, but there is -- there is some open issues there that we -- nei#her of us have answers on yet, but, yes, we -- we -- we are aware of it, we know we need do something in that regard. But it's a substantial investment and if there is a -- if there is a possibility of utilizing reclaimed water, the golf course would realty like to explore that, but we just don`t know right now. Zaremba: Madam Mayor. I know the city would appreciate it if you could use -- hook into the reclaimed water system. ?"hat`s a source issue and I guess I'm talking about a Meridian Cily Council Workshop November i3, 2Q42 Page 7 of 58 distribution issue really. It seems to me like some of it needs to be replumbed, regardless of what your source is. Oaas: tt would all have to be redone ifi we use reclaimed water. Zaremba: Okay. Oaas: If Just by the nature of -- of the raw material. Zaremba: Okay. So, that would be part of the same project, Oaas: Uh-huh. Zaremba: A couple more little questions i# I may, There was a time where you owed money to Nampa-Meridian Irrigation District. Is that getting resolved? Oaas: We are completely current at this time Zaremba: Cool. Good to have that known. And, then, one small issue on the cart paths and that is where it uses the public sidewalk on Talamore. We have talked about that bofore and 1 don't see it to the t~IP to fix, that problem either..Is that coming? I --along with the good things I hear from my neighbors that's the one picky thing that I do hear from all of my neighbors that walk -- they are challenged with the carts that are on the sidewalk, so -- Oaas: Right. And we -- we understand that there will be a presentation from one of us, the owners association in that regard today. We do plan to address that, There is really a couple ways to fix it. We are just -- we have not set up the meeting with -- with us and the city and all the interested parties out an site to sort walk through and figure out what's the best alternative. The summer season -- you know, in getting through that was more important. Now we have gat the time to do that and we plan to do that very shortly. Zaremba: I realize it's not the number one priority, but I don't want it to disappear off the radar screen. Oaas: Na. No. Zaremba: And, again, thank you all for all the work you are doing. Oaas: You bet. Thank you. Hoaglun: Madam Mayor? . De Weend: Mr. Hoaglun. Meridian City Council Workshop November i3, 2012 Page 8 of 58 Hoaglun: I appreciate the progress that has been made. It's moving forward in the right direction. There is always challenges, things you can't control, like the national economy and things you can, but you got to work through them and make priorities and get to them. Just an anecdotal piece of evidence that the golf course does more than just golfers. We have a young man in his office -- in our office with a wife and they are expecting and they have been living in an apartment in Boise and they've wanted #o move out to Meridian for a Iona time and thev are looking and lnnk~nn and ~nnkinrY any they found a house along the golf course that they are able to afford and they are extremely excited and they think that that golf course looks wonderful. So, even though -- actually, he's a golfer, sa he will probably be out there doing some golfing down the road, but that really helps -- it helps the housing market in that area when you have got a nice looking project there and even for people who don't golf,, #hey want to be someplace with a lot of open space and a golf course is a great place to look and so it was just kind of interesting to hear his commen#s about how pleased they were to be there next to the golf course and what it looks like. So, appreciate that, Oaas: Thank you, Mr. Hoaglun. Rountree: Madam Mayor? De Weerd: Mr. Rountree, Rountree: Just wanted to thank you all far participa#ing in the golf forum. !would like to see that continue and I think we are going to be having our next meeting in December. would ask that -„ you know, it's kind of been one sided at this point. tt's been s#uff from the -- Mr. Barton and the city and you all I know have things you want to offer, too, so I would like to encourage that. l think it's been useful, at least from the city's perspective, #hose issues that Councilman Zaremba brought up are issues that we have talked about and we have taken some action on and a growing point that you all need to be aware of, there is a feasibility study in the CIP for Public Works for water and water delivery at the .golf caurse with reclaimed water. So, that's something that's yet to happen, but will happen in probably the near future. We will get a handle on what -- what it's going to take and what it's going to cost and, then, take the next step. But I appreciate the time that you spend with us, so we can communicate. Obviously, we need to communicate back and forth here a little better. And !hope we can continue and I Nape that -- I know, Eric, that you seem to be a little more comfortable as we meet this idea of having to deal kind of in a public environment, as apposed to closed office space. So, continue to get more use to it and we will try to make it as comfortable as we can for you, Oaas: There have been no attempts at strangulations lately, so I think that -- De Weerd: Yeah. We actually see a natural smile on yourface instead of a forced one. Rountree: I -~ I second all of the ~- the part of the comments about the golf course, have heard a tot of people that are not necessarily regulars out there that just come and play occasionally and they have said the greens are as good as there are in the valley Meridian Clty Counal workshop November 13, 2012 Page 9 of 58 and these are people that play all over the valley. So, that's a real credit to -- to Raven and your hiring and having Raven and Rich and his crew, They are doing a great job. Oaas: Thank you, Councilman Rountree. De Weerd: Anything further from Council? Bird: I have none. Ds Weerd: Jerry or Clint, anything you would like to add? Breaux: No. Thank you. De Weerd: We appreciate you all coming and certainly, again, every single year we see very big progress and it's greatly appreciated and it's very appreciated when we hear pleasant things, instead of the opposite. And we are. We appreciate it. Oaas: Madam Mayor, thank you. I promise not to drive my Escalade out on the golf course and chase golfers off. be Weerd: That.would be appreciated. Oaas: Thank you. Honestly, we sincerely appreciate your support and look forward to continuing in the future. De Weerd: Thank you. Steve, did you have anything? Rountree: Ted does. De Weerd: Or Ted. °~ Baird: Madam Mayor, Members of the Council, I wanted to take a few minutes today to let you know where we are with the -- an addendum to the lease. The changes that Eric talked in his presentation, anything that is -~ affects -- is affected or controlled by the lease we need fo reduce that to writing and what 1 have put before you are just some bullet points about same of the changes that were put into that addendum. The fiirst ane would have to do with the revised capital improvement program. As you recall, the original lease has very specific year by year program through years one through six. Those years have passed. The task force has discussed at length the feasibility of holding them to that and after much discussion the recommendation from the golf course task force is that we institute the 6,000 dollar per year expenditure program that Eric described today. The list of items that he put forth would be the #ype of things -- he's the operator of that fior some flexibility to do what's most important any particular year and being able to capitalize and maximize on volunteer efforts and donations and things of that nature. But we would be looking for verification of 6,000 dollars' worth of capital improvements every year and that would tie into the request for the rent relief. 1 ll+leridian Cily Council Workshop November 13, 2012 Page 10 of ~8 will give you that in just a minute. Second item has to do w!`th the accounting records. There has been significant back and forth and, quite frankly, same lack of communication perhaps on bath sides between our Finance Department and the operator. Stacy and Eric have agreed to sit dawn, get a clear understanding of what they want, what he can give that meets the intent of what we are requiring, so that we can verify the income of those operations and show that our city resources are being used appropriately. So, that language isn't complete. That's, frankly, what's the last piece that needs to frt into this. So, we will continue to work on that. Now, presuming tha# the fi,000 dollar per year proposal is acceptable, we would like to get the next seven years on an auto picot is what I'm calling it, so that 1 don't have to get a calf from accounting on October 2nd saying that the golf course forgot to coma in and ask for the rent release. What I'd like to do is just say for the next seven years, as in the previous year, if 6,000 dollars was spent that proof of that was given to the city one month in advance and we verify that through accounting, if accounting is okay with it they put it through the City Council on a Consent Agenda with supporting information, if anybody on the Council has questions you could pull it off. This is not intended to take the place of the annual presentation from the golf course, but it's just to get this piece on an auto pilot far the next seven years. So, I will be asking for some feedback on that if Council thinks #hat that's an appropriate way to proceed. One other item that Stacy wants to put in there as a precursor to allowing the annua[ rent relief is that she gets those .documents every year that she's asking far, the financial documents.. Finally, the, last one is an easy one, regarding the ground maintenance. There was a detailed list in the original lease of things that they would do to various paints on the course. When Raven came in they looked at it, they revised it for what works for them. I think the proof is in the fly over video that you just saw, what it -- it's kind of above and beyond and what they are doing is, obviously, working, so we are just going to replace the old requirements that didn't make sense to them wifh what they are doing now. So, that's the nature of what you will see in the addendum and I will stand for questions. De Weerd: Council, any questions? Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Hoaglun: And, Ted, I'm sure that the language will -- that 6,000 dollar capital improvement funding is their money and not association money, as Mr. Daas explained, they had -- they spent their money and it was on top of and, then, association money was on top of that. So, that we make that clear. Baird: That's the intent is thaf 6,000 dollars of lake View money and to the extent that they can take that and leverage it with those other donations that were talked about, so much the better. I'm also going to draft it. I haven't discussed this with Eric, but it's my proposal that we draft it to say if 7,000 dollars is spent in a year, we start fresh on the following year. There is no carry over. Trying to keep track of that it would just be way too difficult. So, that's it at this point. Meridian C(ty Council Workshop November 13, 2012 Page 11 of 58 Haaglun: Thank you, Ted. De Weerd; Mr. Zaremba. Zaremba: Madam Mayor, !just -- I guess 1 want to phrase this as support for the program that you're suggesting, but I want to emphasize if -- if the city were saendina O,uvu dollars someplace, we would have to account for every penny of it and as you have made clear, if the request is going #o be us to forego 6,000 dollars that we are owed, I do think it`s fair to require documents proving how That was spent. That`s part of our transparency for the public and what monies we are responsible for and where they went or didn't go, so l appreciate your thoughts an that. Baird: Madam Mayor, Council Member Zaremba, that's why I was proposing that that verification process go through the Finance Department. !f they are not able to get the proper verification and fhe deadlines upon us, that will come to you probably with recommendation denial of the requested annual rent release. So, I think we have got a stop gap there in the name of the finance director, so -- Zaremba: Thank you. Baird: Madam Mayor, 1 might menfion -- I was out of the room at the beginning of Eric's presentation, but the accounting department is looking far a motion regarding the rent that was due and owing October 9st of this year. Based on the presentation that was given, this meeting would be the time to consider that and, hopefully, if we get this into place, when we do get this into place, would be the last time you will have #o be asked for a specific motion. And one las# thing before I let the podium go. Madam Mayor, I know that you have been concerned about the safety issue regarding the students and others using the pathway and through the golf course near Tee 3. Eric and I have finalized the letter, agreed on the language, and wha it goes to. Far convenience I'll have him sign it, 1'll let you review it, if you want further changes we can -- we can accommodate That, but I wanted to present that to you today, so that we can get tha# out. Thank you. . De Weerd: Okay. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I concur in these recommendations as far as the addendum goes and I think it's about time we try to simplify this and provide some direction, because we have really not had specifiic direction in the pas#. Having said that and based on the presentation would move that we not request the 6,000 dollar rent for the past year and waive that requirement. Mer:d]an Cffy Coundl Workshop November 13, 2012 Page 42 of 58 Bird: Second. De Weerd: I have a motion and a second. Any discussion from Council? Bird: For fiscal year'12; right? Rountree; '72. De Weerd: Okay. Madam Clerk. Roll Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: AI,L AYES Siddoway: Madam Mayor, Members of the Council, I have been asked to specifically address the question of the golf cart path improvements that were brought up by Councilman Zaremba, where the golf carts currently go on the sidewalk. So, this is the area, Wes# Talamore Boulevard where between Hote 7 and t3 from a few years ago and there is no pathway, today.there is a pathway down, in here, I can show you that,pho#o based on the improvements they have made -- I`m going to zoom in a little bit. You can see on this photo how the pathway comes -~ Zaremba: Madam Mayor? Siddoway: You can see the pathway where it comes from the north an Hole 7 to meet up with the sidewalk and, then, they go down to the--the curb cut. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba_ Zaremba: if I may, since we are doing a little bit of historical, let me add one thought. The original path actually went between that green and the pond and -- and this is previous operators. There was a time when that area became a little bit muddy, so they swung it around temporarily to the view that you're seeing now and at the time the issue was raised that if should not permanently be on the sidewalk, but the -the original path went on the other side of the green and I can understand the reason for wanting to come around the green, instead of taking that shortcut, but just want to add that as historical, this was not where the original path was. Bird: That's right. But it's not the original green either Zaremba: Thank you, Steve. GOLF COURSE ADDENDUM ISSUES TO BE ADDRESSED IN FORTHCOMING ADDENDUM Presented By Ted Baird, Deputy pity Attorney {Presented to City Council on November 13, 2072) Z. Updates provisions reeardine the Capital Improvements Plan a. Eliminates the current capital project schedule. b. Substitutes a minimum $6k per year capital expenditure reauirement (as discussed in ! akev,Pw nracpntarinnl c. Projects to be at Lessee's discretion. d. Effective for the next seven years (sunset on 9/30/2019). 2. Accounting Records a. Specific update to financial reporting requirements is still being negotiated. b. Erik and Stacy to meet to work out the specifics. c. City desire to put financial reporting on "auto-pilot." 3. Rent Relief -Seven Year "Auto-Pilot" a. Agreement continues to require $6k annual rent payment. b. Sets up automatic reporting system to substantiate compliance with the minimum $6k per year Capital Improvement Requirement. c. City Finance Director has also suggested adding a requirement that annual financial reporting requirements be verified in this process. d. if Proof of CIP spending (and possibly financial reporting) is verified, the rent relief request automatically goes to City Council for Consent approval. 4. Grounds Maintenance a. Replaces exhibit from existing lease. b. Enacts revised standards that have been in place for the past few years and have been approved by the Focus Group. S. QUESTIONS? COMMENTS? EXISTING LEASE TERMS RE MAINTENANCE I. Grounds Maiateaance ~tequiretnents ~.. Lessee is hereby required to provide grounds maintenance services, iIlCIUlI1riQ_ knf nnf tir.,:+na +„ ~t.....Ll!__a~_-- a_ _ ---------~~ ___ ~.,. a.uaaYYM w, iu,c vu~i~,a4luu 1U iD.ow, edge, trim, oyerseed, fertilize, aerate, irrigate, sod, change cups, service tees, topdress, .. - raise divots, rake traps, spray, map, spot irrigate, syringe, and renovate turf ' and shrub areas designated hereunder; as well as to provide weed, disease and pest control, tree maintenance, mai~atenance of irrigation system including mainlines, pumps, boosters and controllers, keep swales in good repair and to provide the necessary maintenance of any appurtenant structures and equipment, and athe-des as set forth in the attached Exhibit F titled "Grounds 1V.faintenaQCe Services Management Plan" as developed by Lessee, This plan shall be modified from time to time as necessary to maintain the grounds to the level of maintenance set forth iu section 2, below, 2. With regard to the level of maintenance, all work shall be performed in accordance with the standards of the Goff Course Superintendent Association of America (GCSAA), YTnited States Golf Association (USGA) ar similar organization, as changed and modified from time to time and at established frequencies ao as to maintain the aesthetic level and proper playing condition of the golf course to that of other municipal golf courses in the region. Because the aestheHe eonditia~n of the loaned premises is of grea# importance to City, the standards and frequencies may be modified from time to time as reasonably deemed necessary l,y City far the maintenance of the leased premises. 3. Lessee shall provide and maintain in its employ at the leased premises a golf course superintendent and maintenance crew, on a daily basis. All of the Lessee's maintenance personnel shall be supervised by _a Class "A" superintendent. Lessee must employ sufficient personnel to perform all work as scheduled and required by the City. 4. Lessee will provide the City with the names and telephone numbers of a# least two (2) qualified persons who can be called by City representatives when emergency maintenance conditions occur during hours when the Lessee's normal work farce is not presetat. The City shaII calf for such assistance only in the event of a genuine and substantial emergency. This provision does not pertain to conditions rendering the course unusable as otherwise set forth herein. ASSIGNMENT OF LEASE & AMENDRp LEASI; ACrREEMENT FOR TI3B PROVISION OF GULF COTIRSE OPERATIONS AT CITY OF IvffiIi1DIAN'S IVIIJNICIPAL GOLt~ COUKSE pgga ~ MAY t7, 2005 Tt~ BE SUPERSDED IN 2013 ADDENDUM EXHIBIT F GROUNDS MAINTENANCE SERVICES MANAGEMENT PLAN (SPECIFIC MAINTENANCE REQUIREMENTS FOR LESSEE) DURING THE ACTIVE GOLF SEASON {GENERALLY MAY 1S'' TO SEPTEMBER 15~) LESSEE SHALL UNDERTAKE THE FOLLOWING MAINTENANCE ACTIVITIES A, MOW GREENS MINIMUM 5 TIMES PER WEEK B. MOW TEES MINIMUM 3 TIMES PER WEEK C. MOW FAIRWAYS 3 TIMES PER WEEK D. RAKE SAND TRAPS DAILY E. CHANGE CUPS 5 TIMES PER WEEK F. MOW PRACTICE AREA 3 TIMES PER WEEK G. CHANGE TEE BOXES DAILY H. WATER DAILY (HAND WATER AS NECESSARY) I. FERTILIZE GREENS 3 TIMES PER YEAR J. FERTILIZE FAIRWAYS 3 TIMES PER YEAR K. PUNCH FAIRWAYS 1 TO 2 TIMES PER YEAR L. AERATE AND SAND GREENS AT LEAST 2 TIMES PER YEAR M. VERTICUT GREENS EVERY 2 TO 3 WEEKS N. GROOM GREENS AT LEAST 1 TIME PER WEEK O. MOW ROUGH MINIMUM 2 TIMES PER WEEK P. CLEAN RESTROOMS AND PUBLIC AREAS DAILY AND AS NEEDED Q. SERVICE EQUIPMENT DAILY AND AS NEEDED R. CHECK AND EVALUATE PONDS AND CART PATHS WEEKLY S. SERVICE PUMPS AND WATER SYSTEM DAILY DURING THE OFF-SEASON (GENERALLY, SEPTEMBER 16 TO APRIL 30~~) THE LESSEE SHALL UNDERTAKE THE ABOVE TASKS ON AN AS-NEEDED BASIS