Lease 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 � -7 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. CAPITAL IMPROVEMENTS: Section 2(E) of the AGREEMENT shall be
superseded and replaced with the following:
Lessee shall construct capital improvements upon the leased premises
each year with a minimum value of at least six thousand dollars
($6,000.00) 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 30, 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Grounds Maintenance Services Management Plan) shall be superseded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 activegoif season
(Generally May 1 S to October 1")
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 nitrogen11000 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 ($0,000.00) per
year, in advance, as rental. This annual payment shall be due on
the first day of October, beginning on 1010112013.
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 Director" 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.
- d
All other terms of the AGREEMENT shall remain the same.
IN WITNESS WHEREOF, the parties do execute this Addendum the day and
t.s b :u_
year 111 at aeaUvi~ V1I1 ILLCf i.
Attest:
Jaycee
CITY OF MERIDIAN, IDAHO
LAKEVIEW MERIDIAN INVESTORS, LLC
an Idaho limited liability company
by
OARS L AN EY, Inc,
an Idaho corporation!
its Manager
MINUTES FROM 2012 DISCUSSION OF PENDING ADENDUM
Meridian City Council workshop
Novombe:r 13, 2012
Page 3 of 58
Roll Call: gird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea,
De Weerd: All ayes. Motion carried.
MOTION CARRIED: ALL AYES.
Item 5: Community Items/Presentations
A. Annual Update from Lakeview Golf Course
De Weerd: Item 5 is our Community Presentations. Today we have with us Eric and
Jerry. Welcome. Oh. And Clint. And Clint. I saved the last for the best; 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 2012 progress report on the -- on the golf course, If we
want to flip to the second slide.
Holman: Mr. Oaas, you can take that pen and tap in the lower left-hand corner. There
is a forward and back.
Bird: Okay. Got it. Thank you. I see here. All right. Perfect. 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 of. First, we spent on 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-pocket cost for the golf course. Tree planting --
we were fortunate enough to -- to be donated several hundred trees by Cloverdale
Nursery and we, with the Delp of Raven Golf 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 just significantly improving the esthetics of the golf course. We also installed a pond
pump on the practice range in front of the clubhouse, which from an esthetic standpoint
Meridian City Council Workshop
November 13, 2012
Page 4 of 58
the water and the sound of the water is very nice, plus it helps with mosquitoes and it
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 I pulled a
slide from our presentation of a couple of years ago and I thought, 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 due to the economv and,
obviously, this has continued and is continuing. The financial issues have created
significant cash flow challenges. We have made pretty substantial progress in this
regard and have certainly eliminated a lot of the dire overhead debt issues, but the cash
flow challenges still continue. The irrigation system inadequacy causes operational
problems and additional labor for watering and that -- that is continuing, but as you will
see in the video that I 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 significant 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 -- oops. The bar stoop. That
should be bar stool upholstery and the part -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 hot 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 a list -- not in any particular 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 all times. We are
very -- came very close this past year to -- to reaching that. We had to 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 good 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 ball, 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. On 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 called landscaping
Meridian City Council Workshop
November 19, 2012
Page 5 of 58
projects that will include things like rebuilding tee boxes and -- and providing additional
landscaping, you know, throughout the golf course. And, then, finally, I just wanted to
thank you, Council and Madam Mayor, For all your support, particularly Councilman
Rountree and Mariam 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. It shnvus the
quality of the golf course. You can see throughout that there area lot of -- show a lot of
new planted trees. You can see the -- the fountain off 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: ,fust -- and I thank you for keeping it up. It'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 -- I appreciate the slide that 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 to -- 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 City councli 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
I 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 -- I was his caddy. Other comments,
questions?
Zaremba: Madam Mayor?
De Weerd: Mr. Zaremba.
Zaremba: 1, too, would like to add my thanks 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 to be happy with
how things are going and just from my observation of people that do go by, they -- I
know you're not 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 compliment you on that and
as a neighbor of the golf course I 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 bear a lot of compliments when
the golf course is good and people are playing well, then, they 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 that you have more and more people playing,
mean I remember many years ago before you guys were there beautiful days would go
by without a single golf cart out there, So, I think that's an improvement. That's it. I do
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 spots and stuff. I didn't
see on the CIP that you're addressing that. Is that something that you are working on?
Did I miss that?
Oaas: We are -- Councilman Zaremba, we are working on that. We -- we are still
hopeful that -- that there might be a possibility 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 -- neither 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 really 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. That's a source issue and I guess I'm talking about a
Meridian City Council Workshop
November 13, 2012
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: It would all have to be redone if we use reclaimed water.
Zaremba: Okay.
aaas: 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 if 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 before and l don't see it to the GIP 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 on 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 got 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: No. No.
Zaremba: And, again, thank you all for all the work you are doing.
Oaas: You bet. Thank you.
Hoaglun: Madam Mayor?
De Weerd: Mr. Hoaglun,
Meridian City council Workshop
November 93, 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 to
move out to Meridian for a Iona time and they are looking and Innkinn and Innkinn anti
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, so 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,, they 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 comments about how pleased they were to be
there next to the golf course and what it looks like. So, appreciate that.
Oa,as: Thank you, Mr. Hoaglun.
Rountree: Madam Mayor?
De Weerd: Mr. Rountree,
Rountree: Aust wanted to thank you all for participating in the golf forum. I would like to
see that continue and I think we are going to be having our next meeting in December.
I would ask that -- you know, it's kind of been one sided at this point. It's been stuff 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. I think it's been useful, at least from the city's perspective,
those 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 course 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 vire can communicate. Obviously, we nett to communicate
back and forth here a little better. And I hope we can continue and I hope 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 opposed 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 your face instead of a forced one.
Rountree: l -- I second all of the .._ the part of the comments about the golf course.
have heard a lot 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 City Council workshop
November 13, 2012
Page 8 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.
De 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.
De Weerd: That would be appreciated.
Oaas: Thank you. Honestly, we sincerely appreciate your support and loop 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 to reduce that to writing and what I have put before you are just some
bullet points about some of the changes ghat were put into that addendum. The first one
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 61,000 dollar per year expenditure program that
Eric described today. The list of items that he put forth would be the type of things --
he's the operator of that for 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. I
Meridian City Council workshop
November 13, 2012
Page 10 of 58
will give you that in just a minute. Second item has to do with the accounting records.
There has been significant back and forth and, quite frankly, some lack of
communication perhaps on both sides between our Finance Department and the
operator. Stacy and Eric have agreed to sit down, 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 ft into this. So, we will continue to work on that. Now, presuming
that the 6,000 dollar per year proposal is acceptable, we would like to get the next
seven years on an auto pilot is what I'm calling it, so that 1 don't have to get a call from
accounting on October 2nd saying that the golf course forgot to come 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 puff 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 for the next seven years. So, I will be asking for some feedback on that if Council
thinks that that's an appropriate way to proceed. One other item that Stacy wants to put
in there as a precursor to allowing the annual rent relief is that she gets those
documents every year that she's asking for, the financial docume'nis.. 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 points 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 with what they are doing now. So, that's
the nature of what you will see in the addendum and 1 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. Oaas 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 that 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 CRY Council workshop
November 13, 2012
Page 11 of 68
Hoaglun: Thank you, Ted.
De Weerd: Mr. Zaremba,
Zaremba: Madam Mayor, I just I guess I want to phrase this as support for the
program that you're suggesting, but I want to emphasize if -- if the city were soendina
6,000 dollars someplace, we would have to account for every penny of it and as you
have made clear, if the request is going to 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 I appreciate your thoughts on that.
Baird: Madam Mayor, Council Member Zaremba, that's why I was proposing that that
verification process go through the f=inance Department. If they are not able to get the
proper verification and the deadlines upon us, that will come to you probably with
recommendation denial of the requested annualrent 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 mention -- I was out of the room at the beginning of Eric's
presentation, but the accounting department is looking for a motion regarding the rent
that was due and owing October 'Ist 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 to be asked
for a specific motion. And one last 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 who it goes to. For convenience I'll
have him sign it, I'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 that
out. Thank you,
Do 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 specific direction in the past. Having said that and based on the presentation I
would move that we not request the 6,000 dollar rent for the past year and waive that
requirement.
McOdfan Clfy Council Workshop
November 13.2012
Page 12 of 58
Bird: Second.
De Weerd: I have a motion and a second. Any discussion from Council?
Bird: For fiscal year '''i2; right?
Rountree: '12.
De Weerd: Okay. Madam Clerk.
Rolf Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea.
De Weerd: All ayes. Motion carried.
MOTION CARRIED: ALL 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,, West Talamore 'Boulevard where between Hole 7 and 8 from a few years ago and
there is no pathway, today.there is,a pathway down. in here, I can show you that.photo
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 on 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 it 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 City Attorney
(Presented to City Council on November 73, 2072)
1, Updates provisions regarding the Capital Improvements Plan
a. Eliminates the current capital project schedule.
b. Substitutes a minimum $6k per year capital expenditure
requirement las discussed in i akeView nrPezontntinnt
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 workout 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.
5,QUESTIONS? COMMENTS?
EXISTING LEASE TERMS RE MAINTENANCE
Grounds Maintenance Requirements
1. Lessee is hereby required to provide grounds maintenance
services. ineludino. hnf "M limi+sA +., +t.,.. �u _,___ ---
------Oi --- --- z+W'r�.aF w, cur, ming Liu" to muW, euge, trun,
oversecd, fertilize, aerate, irrigate, sod, change cups, service tees, topdress,
raise divots, rake traps, spray, mop, spot irrigate, syringe, and renovate turf
and shrub areas designated hereunder; as well as to provide weed, disease
and pest control, tree maintenance, maintenance of irrigation system
including mainlines, pumps„ boosters and controllers, keep ssvales in good
repair and to provide the necessary maintenance of any appurtenant
structures and equipment, and oth� as set forth in the attached
Exhibit F titled. "Grounds Maintenance 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 in
section 2, below.
2. With regard to the level of maintenance, all work shall be
performed in accordance with the standards of the Golf Course
Superintendent Association of America (GCSAA), United States Golf
Association ([TSCA) or similar organization, as changed and modified from
time to time and at established frequencies so as to maintain the aesthetic
level and proper playing condition of the ,golf course to that of other
municipal golf courses in the region. Beelluse the aesthetic condition of the
leased premises is of great importance to City, the standards and frequencies
may he modified from gime to time as reasonably deemed necessary by City
for the maintenance of the leased premises,
3. Lessee shall provide and maintain in its employ at the leased
premises a golf coarse superintendent and maintenance crew, on a daily
basis. All ofthe 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 at 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 force is not present. The City shall Gull 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 fortis herein.
ASSIGNMENT OF LEASE & AMENDED LEASE AGREEMENT FOR TIS PROVISION OF Go r.F COURSE
OPERATIONS AT CITif OF .WHIDIAN'S MUNICIPAL GOLF COURSE Page
MAY 17, 207
TO BE SUPERSDED IN 2013 ADDENDUM
EXHIBIT F
GROUNDS MAINTENANCE SERVICES MANAGEMENT PLAN
(SPECIFIC MAINTENANCE REQUIREMENTS FOR LESSEE)
DURING THE ACTIVE GOLF SEASON
(GENERALLY MAY 1ST TO SEPTEMBER 15TH)
LESSEE SHALL UNDERTAKE THE FOLLOWING MAINTENANCE ACTIVITIES
A. MOW GREENS MINIMUM S 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 (LAND WATER AS NECESSARY)
I. FERTILIZE GREENS 3 TIMES PER YEAR
T. 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
0. 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 30TH)
THE LESSEE SHALL UNDERTAKE THE ABOVE TASKS ON AN AS -NEEDED BASIS