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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. - 2 - 12/31/84 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 - 3 - 12/31/84 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 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. - 4 - 12/31/84