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11-20-84SpMtg NOVEMBER 20, 1984 A Special Meeting of the City Council of the City of Delray Beach, Florida, was called to order by Mayor Doak S. Campbell in the Council Chambers at City Hall at 7:05 P.M., Tuesday, November 20, 1984. Roll call showed: Present - Council Member Malcolm T. Bird Council Member Marie Horenburger Council Member Arthur Jackel Council Member Jimmy Weatherspoon Mayor Doak S. Campbell Absent - None Also present were - City Manager James L. Pennington, and City Attorney Herbert W.A. Thiele. Mayor Campbell called the meeting to order and announced that this meeting has been called for the purpose of (1) holding a public hearing to receive comments and suggestions on community develop- ment and housing needs and proposed uses of the City's 1985 Community Development Entitlement allocation from the U.S. Department of Housing and Urban Development; and (2) considering awarding lease for the opera- tion of the Delray Beach Municipal Golf Course facility. 1. The Assistant City Manager advised that any program that the City designs for the use of these funds will have to address three of the prime national objectives, i.e., to develop a viable community principally for low to moderate income persons, aid in the prevention or elimination of slums or blight or to correct any problems which may threaten the health or safety of the community. The regulations also give the community a lot of latitude in the types of programs and proj- ects which they might wish to undertake; these include the areas of public facilities and improvements, rehabilitation activities, removal of architectural barriers, acquisition of property, economic development and program administration. The Assistant City Manager outlined several things which are specifically prohibited by the use of these funds. HUD has provided the City with data which shows where the areas are in the City of Delray Beach. He stated the total amount of funds which we expect to receive is $519,000 in the next year. A public hearing was held having been legally advertised in compliance with the laws of the State of Florida and the Charter of the City of Delray Beach, Florida. Sam Schwimer, Pines of Delray, stated he believed the objec- tive of this program should primarily be to provide housing for those who need it; basically, those who cannot afford the type of housing that people who can go out and buy their own housing get. He felt the low rent housing should be first on the list. Ernestine Cooper, representing the Westside Advisory Board, proposed that a portion of the HUD block grant money and a portion of the City's budget money to be received early in 1985 be used to do Phase I of the drainage project. They would like to propose also that some of the HUD money be used to assist in the easing of the current housing situation for the low and moderate income families. They would like the City to check the status of the swimming pool at Pompey Park to bring it up to standards; also, the resurfacing work at the tennis courts at Pompey Park has come to a deadlock and they would like the City to check the status of completing this job. Upon question by Mr. Bird with regard to the tennis courts, Mr. Weatherspoon advised that one of the things missing is that the parking facility there has not been taken care of and needs resurfacing; also the practice wall. Cliff Durden, Chairman of the Delray Beach Housing Author- ity, requested a portion of the community development funds. They have proposed to build rental units for people in the low and moderate income bracket and have been working on this project for a little over two years. The members of the board request that the City consider an appropriation for the building of the rental units; the Authority pre- sently has the land to build these units and needs the start-up monies to continue with the project. The public hearing was closed, the time being 7:20 P.M. Mr. Bird moved that the Special Meeting be adjourned tem- porarily until 7:30 P.M.; in the interim, Council will consider Item 1 on the Workshop Agenda, seconded by Mrs. Horenburger. Said motion passed unanimously. The Special Meeting resumed at 7:33 P.M. 2. Mayor Campbell advised that the City Manager and City Attor- ney have taken the preliminary draft proposal for the golf course lease and continued their negotiation with Mr. Code House, who was the number one choice made by Council. He stated Council received a revised license agreement late this afternoon, together with a memo from the City Attorney concerning certain changes made in the document. At this point Council has the agreement under general consideration. Jean Campbell, President of the Ladies Golf Association, made a presentation before Council expressing disapproval of the con- tract with the leasee. She stated it is causing much displeasure with the golfers, causing people to desert the restaurant and making them feel like they have been betrayed by the Council; they feel no one took into account any of the things which belong to the golfers. Mrs. Campbell stated the association is opposed to any contract that would divide the group any further; specifically, the fact that the new licensee will not be operating the restaurant. She furnished Council with copies of a letter given to the business manager in May setting out their concerns. Mrs. Campbell recommended appointing an ad hoc com- mittee of knowledgeable golfers to review this contract. Phyllis Plume, 409 Lake Drive, resident golfer, made a presentation on behalf of the former Golf Advisory Board. She stated they are very concerned with the future of the golf course and its operation and have studied the contract which Council is about to sign. Mrs. Plume acknowledged the time the City Attorney and his assistant have put into the preparation of this contract; however, she felt that in trying to protect the interest of the City, they failed to protect the interests of the golfers. She regrets that not one permit holder or golfer at the course was invited to go over this contract. Mrs. Plume outlined the reservations they have with regard to the lack of a total turnkey operation and the problems involved with two separate operators, the question of whether the $30,000 excess the City will receive over the bond debt is sufficient to cover the constant monitoring and con- tinued responsibilities the City is assuming on the structural repairs, no reference to the cart and maintenance building, no provision that the leasee must offer annual prepaid greens fees for residents, no mandatory provision for walkers on the course, making bag storage optional and a few other technical points which should be corrected before the contract is signed. In conclusion, Mrs. Plume urged Council not to be hasty and take time to address these issues. A member of the Ladies Golf Association advised that the main problem is the lack of coordination between the Council and the golf course. She stated she is surprised that at no time has Council asked for any representation from the members of the course to advise them of the necessities of fulfilling a contract with someone who is going to run this course, and recommended that Council get the proper people to provide input. - 2 - 11/20/84 Mr. Jackel stated he is fully aware of the concerns of the golfers; they are his concerns as well. However, he felt they should have come forward before while Council was holding discussions on this subject for the past five months; also he did not believe the comments tonight were representative of all the golfers at the course. Mr. Jackel advised he believed it is time to act and not procrastinate any further. Mr. Bird commented that Page 16 of the contract addresses itself to the walkers' rights; also there is an advantage in fees to be granted to the residents of the City. One addition he would like to see is that somewhere within the contract there should be a paragraph ad- dressing itself to priority of play; if this agreement is adopted to- night, he would want that made a part of the motion. Mrs. Horenburger stated her major concern is the lease for the restaurant and the lease for the course; she doesn't understand why the City would get involved in setting itself up as an arbitration board for two partners sharing the same facility and the same building. She believed the problems of the deviousness have to be settled at the time of this contract and it is our responsibility to settle them. Mrs. Horenburger advised she would like to see this addressed before she would vote for any contract for any applicant. Her other concern is that Council is receiving contract drafts an hour or two before a meet- ing and felt we are rushing through this. Mr. Weatherspoon made reference to comments that Council is not qualified to run a golf course; that is why they are choosing some- one who is qualified to run it. The problems with the restaurant have to be ironed out, but he does not feel there is any reason why the restaurant cannot be run by one person and the course run by another. Mr. Weatherspoon stated that the City has tried running the course with several managers and it has not been successful, so he feels it is time to try something new. Mayor Campbell stated he would like certain items addressed to the contract before it would be in any kind of form of finality. He would like to have some dollar estimate on Exhibits A, B & C. He has expressed before a wish to relocate the tennis center in the vicinity of the golf course or on it, and would like some kind of reservation to allow the City to retain its option; if in the event we do relocate a tennis center in that area, as long as we did not impair the golf facil- ity, that we would have an option to do so and would not be precluded by this license agreement. He would also like to have a provision where there is allowable, in fairness to both parties, a divorce; in other words, if either party had differences, some arrangement could be made so that we could both recoup our own well being. At present it only allows a termination in the event of a default on the part of the li- censee. With regard to the dollar amount, he understands that the City would keep all the appropriated budgeted funds for the current fiscal year and that would be, in essence, a reserve account we would have, i.e., whatever is existing and had been budgeted in the golf course fund. The applicant would then be going in and have to generate his own operating funds from the revenue of the golf course. Mayor Campbell stated he would like it to be understood that the cost for the cart service and the greens fees could be approved by the City Manager; also a provision with regard to the cost of instruc- tions to be provided, which is not included. Upon question by Mayor Campbell, the City Attorney advised the beginning fees are entirely within the discretion of the licensee; the City Manager then has the option to address the fee schedule and correct it. The City Attorney stated that the contract is so worded that all fees are subject to City Manager approval. Discussion followed with regard to general negligence, excessive pruning of trees, maintenance of the locker rooms and pre- ferential starting times for residents, particularly in season. - 3 - 11/20/84 Mr. Jackel moved that this license agreement between Mr. House and the City of Delray Beach be passed by the City Council, ef- fective January 1st, in substance, and that any technical language that needs modification should be performed between Mr. Thiele and Mr. House's attorney. Also include a paragraph or clause regarding priority play as indicated by Mr. Bird and the Mayor, seconded by Mr. Bird for discussion. Discussion followed with regard to the tennis center and the land to be utilized, irreconcilable differences and disputes between the restaurant licensee and the golf course licensee. The City Attorney advised there is wording in the contract which states that if a dispute arises between the two licensees the City Manager's word is final. Mr. Bird suggested amending the motion to make a provision granting access to the grounds for the purpose of putting in tennis and tennis related facilities on grounds not at the expense of the golf facility that exists, amendment accepted by Mr. Jackel. Upon roll call Council voted as follows: Mr. Bird - Yes; Mrs. Horenburger - No; Mr. Jackel - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - No. Said motion passed with a 3 to 2 vote. Before roll call the following discussion was had: Upon question with regard to irreconcilable differences, the City Attorney stated they can attempt to negotiate something acceptable to the licensee; right now there are 150 different times that the con- tract can be terminated in the course of the first year - cause reasons. There is, however, no provision that permits either side to terminate the agreement based on something unrelated to the operation and main- tenance of the course and the payment of fees, i.e., that you just don't like the person anymore or that the relationship between the City and the licensee has either unilaterally or bilaterally gone sour. If Council wants something akin to a termination without cause upon an extended notice of the nature of 90 or 120 days with the licensee and the City agreeing to reimbursement of expenditures of the capitol pro- ject variety, he believes that can be negotiated. Mr. Jackel commented that the foregoing would be covered under technical changes between the two attorneys in the motion. Mrs. Horenburger stated that it is her understanding that a background check for judgments, liens, etc., was sent for regarding one of the applicants, however, they have not been received for the others; she would not be prepared to vote for anyone until that check was done. The City Manager advised he has not received anything nor has a backup been requested. Three applicants had a background check run by the in- vestigative division; of those background checks the only negative thing that came out was some papers that had been filed on one of the ap- plicants. The City Manager advised that the recommendation is that the contract as put before Council, as they have amended and discussed, would be the contract that he would assume has been negotiated for this Council and would recommend action, either accept it or reject it. At this point the roll was called to the motion. Mayor Campbell declared the meeting adjourned at 8:40 P.M. /] City Clerk ATTEST: MAYOR - 4 - 11/20/84 The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Council of November 20, 1984, which minutes were formally approved and adopted by the City Council on ~ /,~ /~ ~ ~. · ~ City Clerk NOTE TO READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of City Council. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. - 5 - 11/20/84