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Min 04/26/1989 i i 204 Wichita Falls, Texas Memorial Auditorium Building April 26, 1989 Items 1 & 2 The City Council of the City of Wichita Falls, Texas, met in called session on the above date in the Council Room of the Memorial Auditorium Building at 10: 00 O'clock A.M. , with the following members present. Perry Goolsby Mayor John Hirschi Angus Thompson Robert Barenberg Councilors Ron Buffum Don Kirkham James Berzina City Manager H. P. Hodge City Attorney Wilma J. Thomas City Clerk Charles Thomas Absent The invocation was given by Councilor Thompson. Item 3 Mayor Goolsby noted that the meeting had been called to consider a resolution for management of the Weeks Park Golf Course. It had previously been tabled to give the Council opportunity to study the financial statement. He provided a brief history of what has occurred since January 1986 when the contract was entered into, noting that the fees for RDM have continually been reduced. We are here today to consider the fourth amendment to see whether the fee will be set at $65,000, and enforce the contract, or something less than that. The City also provides water to them free of charge. A motion was on the f loor at the last meeting to delete Section A from the contract, and enforce the basic contract on all fees charged. Section B provides free water, and continues to let them pay the City for electrical service, thereby getting a reduced rate. Section C provides for a Family membership and Junior membership, and Section D provides for hours of operation. Moved by Councilor Kirkham that this item be removed from the table. Motion seconded by Councilor Barenberg, and carried unanimously. The motion to delete Paragraph A from the contract, and enforce the basic contract on all fees charged, failed by the following vote. Ayes: Mayor Goolsby Nays: Councilors Hirschi, Thompson, Barenberg, Buffum, and Kirkham Moved by Councilor Barenberg that Section A of the contract with Recreational Services, Ltd. , be amended to read a minimum annual payment of $50,000 through the life of the contract. 205 Item 3 Cont'd Motion seconded by Councilor Kirkham. A lengthy discussion continued with concerns being expressed about the City getting back into the business of running a golf course, when we lost $100,000 a year on it, and the overhead that goes to Dallas. It was noted by Mr. Berzina that in 1985, the golf course had been torn up for six years, and play has never come back like it had been anticipated. A gross percentage was also discussed, along with credits he would be paying in gross receipts, or a minimum on capital improvements he would make. Something that would make public relations as an operating procedure is also needed. Mayor Goolsby explained to Mr. Streiff that if he would live up to the contract, this will not come before the Council. Other Council members expressed that if he could not perform, they should try to get someone who can. Councilor Hirschi stated that it is not uncommon for the City to be subsidizing various enterprises that benefit some segment of the City, such as the Farmer' s Market and Softball Complex. Councilor Thompson noted that the City operates these facilities, but the City is not operating the golf course. Marty Streiff stated that they want to come up with a fair and equitable payment to the City. Five percent of the green fees were allocated to capital improvement. They spent more than that amount on capital improvements last year. The minimum is what is hurting them. He requested that capital improvements be credited to the City as part of their payment. The motion to amend the original contract to permanently reduce the minimum payment to $50,000 a year carried by the following vote. Ayes: Councilors Hirschi, Barenberg, Buffum, and Kirkham Nays: Mayor Goolsby and Councilor Thompson Robert Powers explained the capital improvement schedule, stating it is $35,000 in year 4, and $4,000 in year 5. After that, it will go down to at least five percent of the total green fees for capital improvements. Jeanie Thompson explained the provisions of the capital improvement program. Mr. Berzina explained that if the Council agrees to this they could credit him with the improvements. Mr. Bonnett explained that construction on Holliday Creek will probably start about January 1, 1990. As part of the Holliday Creek investment, we have an obligation to build two bridges, and reconstruct the temporary greens. They have asked Marty to give them a cost for that. They would also construct the roadways to meet the bridges. They will provide a significant disruption in their activity from January to May, 1990. The Corps of Engineers contractor will put in the bridges. They will come in with another contract to repair cart trails. The channel will be deeper, and lined with broken stone. Temporary greens will be necessary because the Corps will not allow any crossing of the channel. The cost of getting the grass back will be on the Corps. Jeanie Thompson explained that the final paragraph of Section 8 of the contract addresses restoration of play, stating there will be no management payment during this period. Mr. Powers noted that Section 8 refers to Section 11, which computes the payment. 206 Item 3 Cont'd Councilor Barenberg saw no point in giving anyone credit if the course is being utilized. It is a percentage of the green fee. He cannot go for adjustment of a fee that is based on utilization. Miss Thompson stated this is now in the contract. Various options were discussed while play continues on temporary greens during the time Holliday Creek is under construction. Councilor Thompson requested time to study the contract and some of the amendments, noting that we have done what we were called to do today. Councilor Buffum agreed that they had done what they came here to do. City Attorney H. P. Hodge advised that if Council Bill 94, as amended, is adopted by the Council, it will not preclude them from considering something else in the future. Moved by Councilor Kirkham that Resolution No. 56-89, as amended, be passed. Motion seconded by Councilor Barenberg. Councilor Hirschi discussed the default provision, suggesting that the percentage rate is totally inadequate. Miss Thompson stated that the default provisions are contained in other sections of the contract. Moved by Councilor Hirschi that overdue payments be calculated on the current prime rate quoted in the Wall Street Journal, plus two percent penalty. Motion seconded by Councilor Barenberg. Dean Tackitt, 4402 Prince Edward, stated that the last time they got into this late payment there was a penalty close to two percent in the contract. He seemed to remember that the penalty was waived. He feels the City is held hostage to a contract that nobody understands, and can' t get out of. The motion on overdue payments carried by the following vote. Ayes: Mayor Goolsby, Councilors Hirschi, Thompson, Buffum, and Kirkham Nays: None (Councilor Barenberg was absent from the council table. ) Councilor Hirschi mentioned payment of electric bills, stating there is no penalty for non-payment. Mr. Berzina explained that if they are not paying the bills, it is a default of the contract. The City Council recessed at 11: 50 A.M. , and reconvened at 12: 05 P.M. Mayor Goolsby requested that all discussion pertain to Council Bill 94 only. A motion was made by Councilor Barenberg to amend Section C by changing the family membership fee to a maximum of $650 per family in various installments. The motion died for lack of a second. Councilor Barenberg also mentioned the hours of operation, suggesting that the temperature not be an indication of anything, and that the food and beverage area be open at all times. 207 Item 3 Cont'd The question was called by Councilor Kirkham on Resolution No. 56-89, as amended. It was seconded by Councilor Buffum, and carried unanimously. The motion for passage of Resolution No. 56-89, as amended, carried by the following vote. Ayes: Councilors Hirschi, Thompson, Barenberg, Buffum, and Kirkham Nays: Mayor Goolsby Councilor Buffum suggested that the list of items prepared by the City Manager be discussed with Mr. Streiff in light of the contract change. If agreement is reached, then bring it back to the Council for consideration. Councilor Thompson expressed that if we cannot come up with a contract that is beneficial to both parties, then he would hope we get someone who can make it workable. Mr. Berzina stated they will go back through this process with Mr. Streiff, and that he may ask a couple of Council members to work with them on it. Mayor Goolsby stated that he believes the contract should be enforced. He supports the action taken by the Council. He believes the Number One problem is public relations. The City Council adjourned at 12��: 20 _�jjP.M. PASSED AND APPROVED this the _szL day of 1989. Perry G olsby, May ATTEST: Wilma J. Thomas, CMC/AAE City Clerk