12-31-84SpMtg DECEMBER 31! 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 12:30 P.M., Monday, December 31, 1984.
Mayor Campbell stated that they were not expecting such a
large turnout at this meeting on New Year~ Eve and some members of
Council or Staff may have to leave before the meeting is over.
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 - Assistant City Manager Robert A. Barcinski,
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) Considering
final details relative to license agreement between the City of Delray
Beach and Franklin Code House; and, (2) Considering approval of Amend-
ment No. 1 to license agreement between City of Delray Beach and Frank-
lin Code House.
1. The City Attorney reported that they entered into an agree-
ment with Mr. Franklin Code House dated December 12, 1984 and Mr. House
is prepared to commence operation as of midnight tonight. The City
Attorney outlined the details of the agreement: Mr. House will purchase
all of the machinery and personal property left there; they have a
$5,000,000 umbrella insurance policy and replacement cost coverage for
all the equipment, structure and materials to their satisfaction; they
will be getting a $250,000 letter of credit from Sun Bank.
2. The City Attorney reported that Amendment No. 1 is a correc-
tion to Article 30 of the license agreement which required the licensee
to hire the personnel presently at the golf course for 60 days minimum.
It was impossible for Mr. House to obtain a pension plan for a 60 day
period of time and with this modification, he will not be required to.
The effect is minimal# as only three of the employees are remaining at
the golf course as of tomorrow and none of those would have become
vested over the 60 day period. This would require them to take 6% out
of their paychecks to be put into a fund; on the 61st day they could
take it out again.
Mr. Bird moved for approval of Amendment No. 1, seconded by
Mr. Jackel. Upon roll call Council voted as follows: Mr. Bird - Yes;
Mrs. Horenburger - Yes; Mr. Jackel - Yes; Mr. Weatherspoon - Yes; Mayor
Campbell - Yes. Said motion passed with a 5 to 0 vote.
Upon question by Mr. Weatherspoon, the City Attorney advised
that those three employees would get back any money they have put into
the pension plan.
At this point the roll was called to the motion.
Mayor Campbell stated that this formally concludes the items
listed on the special meeting agenda; however, since they are convened
he will allow a few people to come forward and make statements. Tech-
nically they are in an informal session at this point.
Mrs. Phyllis Plume, 409 Lake Drive, stated that many golfers
are upset over they fact that Mr. House may be discontinuing the annual
prepaid greens fees for residents. They urge Council to require that
Mr. House continue to offer the option of buying prepaid greens fees at
a reasonable rate comparable to other communities.
Mr. Bernard Plotkin, 2893 S.W. 6th Street, stated that
starting out by changing the rules without input from the golfers does
not say much for the ability of the person chosen by Council to run the
golf course.
Mayor Campbell stated that those people that would like to
can get a copy of the lease for their review and he inquired as to where
the golfers got the idea that Mr. House was planning to discontinue
prepaid greens fees. The City Attorney advised that Mr. House informed
him that he was evaluating the situation. Mrs. Plume stated that all
they are requesting from Council is an assurance that prepaid greens
fees will not be discontinued.
Mr. Jack Dimmer, 503 S.W. 29th Avenue, stated that rumors
are flying around. The course opens tomorrow and the golfers have no
idea where they stand.
Mr. Rance Plume, 409 Lake Drive, stated that he spoke to an
associate of Mr. Code House this morning who told him there are no plans
for prepaid greens fees other than certificates. Further, that Mr.
House has ideas in mind for a summer membership and winter membership;
that is all they know.
Mr. Bird advised that the contract requires that current
prepaid greens fees will be honored at least through their expiration
date. He wished Council and the audience a Happy New Year and left the
meeting at this time, the time being 12:50 P.M.
Mayor Campbell advised that the contract provides that the
fee arrangements for the golf course are subject to the approval of the
City Manager. It also dictates that the fees are to be reasonable and
in line with other municipal golf courses. At this point there is no
definitive statement, one way or another, as to what is going to be
done.
The City Attorney noted that the contract does not require
an evaluation based on whether Mr. House has prepaid greens fees or not;
it is entirely up to him. However, there is a 20% discount and priority
of play for City residents. Mayor Campbell added that a final fee
schedule will not be approved until it has the City Manager's consent.
Mr. Frank Andriolla, Delray Beach Men's Club, stated this is
the first he has heard about a 20% discount. They have a 202 person
tournament scheduled for this Wednesday and they do not know what to
expect regarding fees, starting times, etc.
Mayor Campbell stated that there will have to be some effort
given on the part of the golfers as well as Council and Mr. House to
help this become a smoothly operating license agreement. In response to
Mr. Andriolla's question, he stated that he assumes the existing fee
schedule will remain since the City Manager has not approved a change to
it. He suggests that the golfers sit down and formulate their wishes
and concerns and get those to Mr. House as soon as possible.
Mrs. Horenburger asked, as she did not vote in favor of this
contract, if it would be out of order for her to make a motion to amend
it. The City Attorney replied, no; however the contract is already in
force. If she wishes, she could move to direct him or the City Manager
to attempt to renegotiate some of the terms and conditions. Mayor
Campbell asked the City Attorney to contact Mr. House as soon as pos-
sible and ask him what his fee arrangement is going to be for the coming
year. This way Council can determine if he is complying with the terms
of the license agreement.
Mr. Jackel left the Council meeting at this time, the time
being 1:05 P.M.
Mr. Weatherspoon stated that logically Mr. House should
implement his new changes gradually and post notices to that effect.
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The City Attorney noted that Mr. House stated this morning
that the existing fee structure shall remain tomorrow and for the short
term at the very least, subject to the discounts that are provided. As
to any long term fee arrangements, that is a subject Mr. House is going
to evaluate, i.e., prepaid greens fees, a coupon booklet or a set number
of plays per pay system.
Upon question by Mrs. Ann Kolevzon, Rainberry Bay, Mayor
Campbell advised that it is still a municipal course. Mrs. Kolevzon ex-
pressed concern over not knowing what to expect regarding fees, walking,
etcv and feels this is not a good way to start a new business.
Mrs. Helen Lyman, Rainberry Bay, echoed Mrs. Kolevzon's
comments and added that it would be in the City Council's best interest,
as well as the golfers, to know what Mr. House plans to do.
Mrs. Vi Hinchliffe, N.W. 4th Street, stated that the major-
ity of golfers who have had yearly passes will not have them as of
tomorrow morning; therefore, they will not play the same number of times
they did before because they cannot afford it.
Mr. Miles A~an, 524 Osprey Lane, read from Paragraph 22 of
the contract as follows: "The fees to be charged for the use of the
course shall be set by Licensee subject to approval by the City Manager
or his/her designee and as from time to time amended or revised. Licen-
see agrees that at all times during the term of this License, residents
of the City shall be given a preferential green fee rate reduction of an
amount equal to twenty percent (20%) of the established green fee then
in force and effect; bonafide visitors, temporarily within the City,
shall be given a preferential greens fee discount of ten percent (10%)
less than the established greens fee rate which is one-half the discount
offered to bonafide permanent residents of the City. The fee schedule
may include, but need not be limited to: Greens fees, Locker rental
fees, Cart storage fees, Cart rental fees, Golf Lessons. The Licensee
covenants to honor the terms of all long-term successive or package fee
arrangements with any members of the public. The repayment of all or
any part of that fee to the payor if the Licensee is unable or unwilling
to honor the terms of the arrangement shall be the sole responsibility
of the Licensee. The Licensee shall indicate in writing on any document
evidencing such an arrangement that the fee arrangement is being pro-
vided solely by the Licensee and that it shall not constitute any ob-
ligation on the part of the City of Delray Beach. The Licensee agrees
that he shall make no long-term, successive, package or other such fee
arrangements the terms and conditions of which will extend beyond Decem-
ber 31, 1989."
Mr. Ben Bornstein, 2825 S.W. 13th Street, felt that the City
Manager should direct Mr. House that former members who have been paying
the monthly rate of $45.51 be allowed to continue to do so until a
proper agreement has been reached which will protect the interests of
all the residents of Delray Beach who enjoy the golf course.
Mrs. Horenburger suggested that Council direct the City
Attorney to draft a letter to Mr. House asking him to ignore the expira-
tion of the prepaid greens fees, which expire at midnight tonight,
through Janaury 15, 1985, until he gets his fee schedule set up. Coun-
cil concurred.
Mayor Campbell stated that Mr. House will also be asked to
clarify his position with regard to future fees to be charged for the
upcoming year.
Mayor Campbell declared the meeting adjourned at 1:20 P.M.
// Cit~ Clerk
ATTEST:
MAYOR
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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 December 31, 1984, w~ich 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.
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