02-18-88 Parks Comm MinutesPARKS COMMITTEE MEETING
CONFERENCE ROOM FEBRUARY 18, 1988
The Committee met at 4:00 P.M.. Present were Mayor Kennedy, Councilmen
Furlong, Saverud, Nystul and Gunnerson; C. A. Glen Neier, Parks Director
Mike Baker, Dick Kuhl and Roger Hopkins.
Golf Course Lease:
C. Nystul opene the meeting with the statement that a survey is not
necessary. He said that insurance costs need to be adjusted accordingly,
and that we should invest improvements into the course. A certain
percentage needs to be reinvested to protect the improvements, and we
should be made aware of all improvements, etc.. Nystul stated that
the $750,000 BOR funds must comply with Federal regulations and the
Golf Course should have a better financial statement available.
C. Saverud stated he had a disagreement with what the lease covers,
it should be more specific. He stated the $1,500 lease payment
should be the minimum and should be adjusted accordingly. Saverud
also stated that the renewal language on Page 2 of the lease should
have more flexibility, and the language should be more straightforward
for laymen interpretation. He said the golf fees should be approved
by the Council. Saverud agreed with Nystul that we should have
better financial information and that Nystul could address what is
needed. Saverud questioned several items in the lease, as follows:
Page 3, #7 regarding Governmental Functions, the language is ambiguous;
. Page 5, #14 regarding General Liability Insurance, we should make
sure we don't have duplicate coverage or don't have any areas that
aren't covered; #15 regarding fire protection, we have adequate facil-
ities. We need to be sure that everything is up to design and
construction standards and has been reviewed and approved. Finally,
regarding item #16, Saverud stated a non-discrimination clause is
needed. A percentage on the net income could possibly be earmarked
and held for long term improvements on the property.
Furlong - Needs - BOR Grant Agreement.
C. Furlong presented a letter from C. Robinson and read it into the
record. She stated we need more complete language to address speci-
fically the City's requirements with regard to financial reporting,
and that C. Nystul could address this area. She stated there should
be 1) a provision (in dollars) to cover any costs for which the City
is liable (such- as fire insurance), 2) a mandatory emergency fund to
provide for major maintenance expenses as they may occur. These two
provisions, once a dollar amount is established, could constitute the
amount that would be set as the annual rent figure.
Robinson went on to say we need language to address capital improvements
to the effect that the City would have the right of review and
approval over these improvements, and that proposed improvements of a
capital nature would be subject to review by the Parks Committee and
Parks Committee Meeting Page 2 February 18, 1988
approval of the Council. Robinson stated the lease needs to contain
• a clause which would prevent automatic "roll over" of the Lease
Agreement, and at the end of the lease term the City should have the
ability to review the lease and re -negotiate terms if necessary without
violating any renewal.options on placing the lease in a terminated
condition. Robinson also stated the lease speaks of maintaining the
"premises" in "good condition". She feels that "premises" should be
defined, i. e., buildings?, grounds?, trees and shrubbery?, walkways?
What is "premises"?
C. Furlong stated he feels the 5 year lease is too long, that a
Councilman's term is 4 years and the lease should be consistent with
the Council. He suggested a 3 year lease with annual renewal, an
annual financial. audit, and an annual meeting to look at concerns.
He said the City must address the concept of multiple use and it
should be written into the lease. Golf of course would be the main
use, then trails for jogging and groomed cross country ski trails for
winter recreation. A survey is needed for boundary determination.
He also stated we should change the dates to the lease and there
should be a significant increase in lease dollars which would be used
for park improvement.
C. Gunnerson stated we should define the boundaries of the Golf
Course and extend the lease to long term with annual clauses.
Mayor Kennedy stated there should be an increase in fees to be used
. as park revenue for park improvements.
Parks Director Baker stated the concept of multiple use poses a
liability question. He. supports winter recreation activites and a
longer lease, to provide for long term master planning. He said
there are benefits in master planning, with annual guidelines being
met. He would support the Golf Course paying for insurance and any
other miscellaneous expenses incurred by the City.
C. Gunnerson stated there should be a minimal increase in lease fees,
we do not want the golf course to pay for City operation from earned
golf course revenue.
C. Saverud: Take on the tennis program. A good tennis facility.
Address the net profit of the operation.
C. Nystul stated the Golf Course should decide if they want an audit.
An accurate financial report will serve our purpose.
Dick Kuhl: Lease clarified. Comments: Section #2 - Maintenance -
who provides what. Section #4 - Possibly a gate to allow winter
access. Needs to provide for multiple use. Cost to accommodate
walking trails. Section #8: Maintenance fees - free garbage and
free installation of a fire hydrant - is this the City or Golf
Course's responsibility?
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Parks Committee Meeting Page 3
February 18, 1988
• Liability - Kuhl stated he can pick up 150 golf balls a year in his
yard. Poor design factor. City Council of approval of all green
fees, demand this be done. Approval. rights for improvements. Financial
statements.
C. Nystul - Game plan.
C. Gunnerson stated, "I hope this group does not lose sight of what
the Golf Course has done for this community."
Vehicle discussion: City-wide vehicle policy needs to be addressed.
Study the cost a ectiveness of Parks vehicle.
Motion: (not on agenda) C. Furlong made a motion to evaluate Parks
vehicle repairs vs. purchase of used outfit.
Meeting adjourned at 6:30 P.M.
Minutes recorded by Mike Baker.
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