ZOOM TRANSCRIPT OF THE JANUARY 12 WORKSHOP AND SPECIAL MEETING
Present: Freddie Foster, Doug Colonell, Kirk Diehl, Tom DiFransico. Tom Harding.
In attendance: Jimmie Hicks of Vernis & Bowling, City Clerk Silvia Gransee, others.
WORKSHOP
[DiFransico]
For perspective, it seems to me that we've been told by the citizens of KCB that they'd like to continue with Mr. Rice working on the golf course and since we work for the citizens I think we're trying to make that happen. The other side of this is I think we as the commission need to make sure that the city is fairly dealt, fairly treated in this agreement that we've put together. It seems to me that to make sure we have an agreement that makes sense both to Mr. Rice and to ourselves, to the city, is to go back to the previous agreement. In '21 a lease was signed between the city and Rice Management. Apparently it was negotiated at arm's length and had duties, responsibilities, and monies in it and those seemed at the time to be fair. If we take that as the basis and look at what's changed since then, we can come up with a delta. If the work now is less than the work that was in that one, we can make an adjustment to have the city take over the work and adjust the rental amount so we still have work done that was in the original lease... I can share with you a tabulation that I put together that I think works between what the original lease was, what our position is, and what Mr. Rice's position is today on a number of these items. So, that's sort of a basis that I went through. And, um, I've gone through some of the specifics, and I could share with you a tabulation that I put together that I think works between what the original lease was, what our position is, and what Mr. Rice's position is today on a number of these items. I can share with, uh, with you all this piece of paper that I put together. What I tried to do was put together. I Thought I had one for Sylvia, I should have probably should have sent this to you, Sylvia, but it has my opinions on it, and I couldn't share it with the other commissioners until now. Uh, I'll just sort of zip through this and go through what the, uh. what the areas of difference are between what we have proposed and what Mr. Rice has proposed. and a suggested approach for some of them. Uh, first one is the term of the agreement. The original agreement was 2 years with a 1-year option. Our offer to Mr. Rice was a one year with a one-year option. His offer back was an 8 months with a 1-year option. I think we should just have a 20-month lease, sell a lease for 20 months and go for it. There shouldn't be any reason why we can't commit this for more than one year. Is that right, Jimmie? So, a 20-month lease, there's no option, no… opt out, it's just a lease for 20 months. My suggestion. What I suggest, in a way of going forward, is that we come up with what we as a commission think is the right position. And then have that. Uh, provided… to Mr. Rice, in terms of what is our position, and we can discuss it with him, and then have it. have this, uh, reduced to writing in some sort of an agreement by the attorney. So, if we come up with what I'll call a position paper for the Commission, then a term sheet with Mr. Rice that can form the basis of our… our, uh, term. I went back to this termination Mr. Rice had in his suggestion a 90-day termination. I don't think that's appropriate, and I think he's retracted that termination by the City, we have in ours termination for convenience. I don't think that's appropriate. I think we need to take that out and make it for cause. If there's a breach of the contract or the lease, we should be able to terminate it. Uh, security and performance bond. Uh, we believe, Sylvie, you can tell me, do we have the $20,000 bond? We do. Okay, I believe we should… ask for a one-year lease amount bond. Considering the fact that the lease is… the lease… Payments have gone up due to this. Uh, there's a disagreement about legal fees. We propose that, uh, perhaps Mr. Rice pays our legal fees. I think that's inappropriate. I think each should pay his own legal fees. A big question is, uh… Uh, taking care of the trees. The trees, uh, the lease. And the original lease had the lessee, in this case Mr. Rice, be responsible for care for the trees. That's a substantial effort. He has come back and said he doesn't have the capability to do that and he wants the city to take care of that. And I think that's… something that we should consider doing. Uh, we've done it once already and, uh, we can do it into the future, I believe, but again, this is work that's being taken out of his lease, and I think we should adjust the rent appropriately. Uh, mulching, uh… We wanted him to provide it and shred it. I think we can provide it, and he can spread it. Summer months, there's a disagreement on. What is… what are the summer months? And is it okay for the, uh shop to be closed on Monday and Friday in the summer. And my position is. That's… that should be fine, but we should still be able to access the golf course, maybe through the Honor Box or something like that. Don't want to close the course. There's a question about the sum… about the hours, 7:30 to 5 versus 8 to 4. Uh, I don't… I don't know what the right answer to that is. Uh, restroom maintenance, again. The original lease calls for the lessee to maintain the restroom. Uh, he's saying he'll keep it clean, but he wants the city to do it. The city has already contracted to do it, I believe. Again, this may be an appropriate thing to adjust the rent for. Uh, there's a question about higher fees for non-residents, and I, uh… I think that's a slippery slope. Uh, could get us in trouble with Marathon, considering the way they treat us, we don't want to treat them any differently, so I think we keep the one set of rates for everybody, whether you live here or don't. Uh, equipment maintenance. The lease has a deal where if something breaks and needs to be repaired. Uh, we pay… the city pays for the parts, and he pays for the labor. Uh, I think, from Mike's position, Mike can do all the maintenance. You think, Mike? And so the city wants to take over all the maintenance of the equipment that we own. That shouldn't be a problem for anybody. There's a question about utilities, who pays for what utilities? Uh… The original one was the city pays half the service building electrical cost. That's what was in the original lease. Now, we've said, Mr. Rice should pay for everything, he's come back and said we should split everything 50-50. I don't know what we have… what the… how the utilities are metered between the service building and the clubhouse. Do you know Mike?
[Guarino]
Yeah, separate meters.
[DiFransico]
Separate meters. So he could pay for the clubhouse, and we could pay for half of the service building
[Guarino]
Right.
[DiFransico]
That is what we're doing now. She seems to be a reasonable thing to do. Uh, vending machines… Are there vending machines there now? There aren't it? Our lease says you can… he can have a maximum of 2. He says that, uh, in his comments that we can… the city can put them in if we want to. I don't care if we want to or not, it's just… It's fine. And then consumables, there's, uh… not an explicit call-out in any of them, but uh… Uh, it's my… I think we should ask Mr. Rice to pay for and put down the consumables, insecticides, herbicides, fertilizer, things like that, he should… we should ask him to buy them and put them down to keep the golf course in the proper. proper shape. Anyway, those are my… my thoughts, my positions. I would suggest that if the Commission. And come up with an agreement on these things are being put on a term sheet of position paper, and someone, perhaps. The city administrator should sit down with Mr. Bartus and go through all these and hammer out the agreement.
[Colonell]
I have a comment. Tom, I appreciate you putting this together that, uh, helps keep our minds clear on the issues at hand. My big thing is, going forward with the Golden Force, that's how we started this whole issue. Um… How do we make the golf course better and keep it better, and not fall into the hole that we fell into the last time, where the city had to go out and spend large sums of money to bring the golf course back to life. Um, I know Daryl's been here for 17 years, and everybody likes him, and done a good job, but going forward. One of the things we could add to Tom's list, and I think, Daryl, you, this is an easy one, this is what they call the sleeves off your vest. We need you to help us coordinate to get to the next step. If we're going to do something different down the road it would be nice to have your help in writing, that you're going to help coordinate. And help the next operator. And help the city make the transition. So if we go forward with something in this fashion that Tom DeFrancisco has laid out I think it would be imperative that we have that strong agreement with you and it's… it's written down. It's not a, I'll do it if I can. you know, I'd like that to be… front and center. Otherwise, we're where we… we're where we are now 20 months from now. So, and we're still doing the same thing, so… My focus is forward. Um, what you did do in the past, what you didn't do in the past. So that's my thought.
[DiFransico]
Doug, there is a general statement in the agreement, I believe, that says he agrees to work with us to transfer knowledge, but there's no, how should I say this, detailed plan for that. And I think we, the city, has to come up with what… how we want that to be done, and then sit down with Daryl. I've spoken to him, he seems to be, uh… amenable to doing just that. But the nuts and bolts of how you get that done needs to be worked out and agreed to, I think
[Colonell]
Right, and if the city does decide, or the… rec committee, or whatever they do decide to expand the clubhouse or whatever. Daryl, we'd like to have your cooperation with that. Um, if we do it, I don't even know if it's gonna happen, but it's… there's a… there's talk about it. So, um… I would think that cooperation for Daryl going forward is huge. Um, it is worth something, Um, and I'd like to… I'd like to somehow narrate that makes it clear that we… what we can expect and what you can expect and what the town can expect. Because if we can make a smooth transition. Whether we make it today or 20 months from now, we make a smooth transition for all parties. Um… So that's it.
[Foster]
Okay. Anything else?
[Harding]
Yep, man, Um, so first off, I agree with Tom, is the residents have been very clear um, that the quality of service, um, they've been actually very happy with, um, with excellent performance from Daryl. And, you know, my recommendation, very similar to Tom's is, I think we should target September 31st, or September 30th of 2027. Up to the 20-month. And some background on that is, um… For us, the Commission, and for the residents, 2027 budget's going to be a struggle. Um, the legislation's going to come back with, we're going to have reduced property taxes Of some sort, which means reduced revenue into the city. um, we have a very affordable method of doing… maintaining the golf course today with a lease. Very minor investment for us. Um, contractors making some… dollars out of that, which he should and the residents get a low, um… fees for us to take on any additional responsibility on top of reduction of state funding is… would be difficult, so… just perspective there Um, and, um, I do think the one thing. I would add to Tom's list is within our current contract, is it someone from the city, representative, walks the course with Daryl on a regular basis, we talk about open issues. And we resolve on open issues. And I think we've lost that up until, you know, this all started. So I think we probably need to go back to making sure we fulfill that requirement can be very casual. What I saw in the past, it was one commissioner who was a very casual process Um, that one commissioner did an excellent job of doing that. So, I think we need to acknowledge we need to go through that. Um… And then, you know, I think some of the minor stuff, like hours, like I said, I think Tom list is great. I think we can go through and clean up some of those details. But I think the residents have been really clear. You know, the perspective I have is. Why would you want to terminate a service with a contractor, either performance or financial. And performance has been excellent. The residents have stated at that. But I think we continue with that, at least until '27 Um, and then I think when we get to that decision point, we'll have to decide what's the best option for the city. Um, and again, I think Tom's point is, uh, I've talked to Daryl, he's been very welcome to training, supporting someone. Maybe to Doug's point, we could firm that up with a separate document of what our expectations are to… once that gets closer, but You know, at this point, I'm not sure it's needed, short of what's in the contract today. So I'm in support of that. Again, excellent list, Tom. I put together something, but here's a little bit more detail than mine Um, and I think on the tree trimming. You know, my perspective of this tree and bush trimming, you know, Daryl put in his request that he would do. Um, I'd say more of the minor trimming, bushes and… Trees, um, and then some of the large trees, I think, really should be our responsibility. We own the land, that's our investment. It does require usually a professional that's licensed in that area and that's what I do traditionally with our property, that, you know, any of the large trees that we have a professional licensed person come in and do that. So, um, that would be my suggestion. So, thank you.
[Diehl]
Okay, um, after looking at everything I like the 8-month extension. It's like we're meeting them in the middle. I know he wanted 2 years, but this thing has extended for a two 90-day terms. Which brings us to January now, so… Given, uh, giving it 8 months will give him… a clean… break away from the memberships when they're due again. And there is an option for one-year extension, Uh, when it nears that term, near it ends. I have a problem with the… trees in the restrooms. I'll use an example. Like, if you're running a high-end home in Palm Springs, and you've got to maintain a lawn and the palm trees, you know, it's just… it's just part of… you're running for 5 years, you need to maintain it, you need it to maintain it as well, or if better, when you moved in. And I know the conditions and maintenance. Section 5.1, uh… You were to leave, you were to keep the golf course in the same or better condition as it was when you started. Now, a couple months ago, the city put thousands of dollars into trimming all the palm trees, and it looks fabulous, from what it looked like before. So, the bar is raised. Everything looks good. I think it's the renter's responsibility to keep the trees and also the restroom. I don't see why the city has to be involved with a cleaning contract when that should be part of your duties. There's more to a golf course than just cutting grass and keeping certain things in order and clean. I think the landscaping and the restroom should be part of the criteria. Now, if you choose not to go that direction, and maybe, you know, we should look at the lease instead of maybe $39,000 a year, maybe it should be $49,999. And of course, you break that into 12 months and divide that by 8. There's your adjusted amount for the next 8 months. So, that's my thoughts. You know, it's still… what it does, it gives you a guideline where the end may be near. It gives the citizens an idea when your term may end, but there is also a 12-month extension you know… not too far down the future, you know, we'll be dealing with the City Hall construction, so there's a lot on our plate this year, along with some other things, so… You know, we may not… you know, the golf course may not be our priority, but we do, I would like to see a nice, solid contract in place, whether it's 8 months, 20 months whether you do the trees. restrooms, whatever, if we can iron this out today, I think, you know, we can move forward with some guidance and some deadlines. That's all I have.
[Foster]
Alright, so… appreciate the input. Here's, uh… I also have spoken with Daryl, so, here's… here's what I'm going to propose when we, uh, break this meeting and move into the next one. There's an 8-month contract with monthly renewals. All landscaping except trees, he will be responsible. The irrigation is his responsibility, except for the main line, that's going to be ours, that's just too big for that. I think we've already bought all the, uh, parts for the heads and everything anyway, so, we're probably good for that. Bathrooms he pays, utilities 50-50 for the service building. I believe, Mike, that's how we do it right now. You pay 50%, he pays 50%. Maintain that the way it is. Um, the rack will, uh, make this a… A one-year term, September past, September coming up. And then we can do a monthly renewals with them if we need it for transition, because the intent, in my opinion, the intent would be for us to go ahead and get somebody to run that shop but I want to do it with the Rec Committee. I want… I want this to be a city rec committee operation, so that we can run the golf course in concert with the citizens of the city. That's the way I see it. That's the way I've talked to Daryl about it. I think we have an agreement on it, so, um… that's where I'm… where I'm moving. So, that's my position, 8-month with monthly renewals. Um, landscaping, trees, we, uh, maintain. He'll take care of all the landscaping. The irrigation system is hem, except for the main line. The bathroom and the pro shop, he takes care of. Now, if he wants to continue our service we could just break out the cost of that and to do that. The rent, as identified in here. We're one year, so it goes back September through September. And then, uh… oh, and lastly, Tom [Harding], I'd like you to be the point of contact. Or, uh, from the city's perspective, I don't think we've done any justice by having the city administrator doing it. And I, frankly, I don't see that happening, so I would prefer you be the point of contact. So, that's where I'm at. I think I've already talked to Daryl, I believe that's where he's at. We can make a nice, clean break. And the beauty of it is, is we'll be able to get transition with an employee, so the citizens will know who that is. In fact, I want the citizens involved in the hiring of that individual. And they can go ahead and be, um… familiar with the system. And we'll be able to break that fairly clean. So, Mike, what it would be as an employee under you. But the interview process, I would definitely want some input from, uh, from the citizens, because they're the ones that are going to have to deal with them. So, that's all I have.
[DiFransico]
I have a question about having the city take over responsibility for operating the course versus having another outside firm come in and do it. I mean I know very little about golf courses, but I know there's some special features of them. And, um, pros are… few and far between down here, I think. Uh, I'm not sure whether we should try to run it or whether we would. If you will. As Mr. Rice is. Uh, we… it's at a point that I suggest that be a point for the Rec Committee to take a look at Figure out what's the best thing for us to do. In the interim, we should… pick Mr. Rice's brain, obviously, so that we have somewhere a storage of his knowledge. So that in the future, we are able to dip into it, whether we decide to do it ourselves or hire someone else to do it.
[Foster]
Okay, well, that's my position, and I think it clearly lies with Mike, and we can get plenty of transition time in the next 8 months with Mr. Rice, and be done. So, that's where I'm at.
[Colonell]
To comment on Tom's comment. If we could hear from Mr. Rice. Daryl could get up and tell us Um, we're depending on Daryl to hang in there for another 20 months, or 8 months so I'd like to know, going forward, because the city, if the city's going to take the course over and that's the future plan, or we get another operator we need to start on that now. We're not going to turn it on a dime here, so I think that it's imperative that we hear from Daryl, and he can… he can… Uh, let us know his thoughts that I think we need his cooperation, big time. Um, and… If he's going to continue on, because that's our future, and if we just kick the can, which is what we're doing here, if we kick the can. That's fine, but we're in the same boat in 8 months.
[Foster]
I believe Daryl's already agreed to that.
[Colonell]
I'd like to hear him say that.
[Rice]
No, I hear you say?
[Colonell]
Yeah.
[Rice]
Okay. There's no future. You guys just took it. So there's no... Are y'all transitioning? It sounds like y'all want this… this animal and I'm willing to give it to you. Um, when I took this course over, those trees were worse than you ever saw, ever saw. The irrigation system was not working. You had ants, you had grubs, you had nothing but a mess. It took 2 years to get it up and… up and going. I owe, and so… It's been a pleasure, a pleasure and a thrill to run it all these years. It's been a love. But it's time to walk away. So, we're under contract till February 9th. I say we extend that for 90 days. You guys define what y'all want. You get back with me. And I will keep paying the rent up to then, but I will exit by May 31st. If you need a consultant contract, put it together. I've walked your guys through the irrigation countless times. They should be able to grab it. With a little bit of knowledge, a little bit of common sense, a little bit of, I'm gonna get it done type thing, so… Y'all… y'all let me know. The rent is paid, it's always been paid. And I run hot and cold on Dutch.
[Foster]
Thank you, Daryl.
[Harding]
I guess, Mayor, if I could make one… If I can make up one final follow-up comment. So I appreciate your point about 8 months. Um, I think we should be really waiting until we see what happens with these taxes. Um, for us to take on, I think we would probably need 2 additional headcounts Which, typically, we obviously provide full benefits. Um, that's a significant increase in Uh… expenses that we may not be able to come up with from ad valerian taxes based on the direction from the legislation. So, I think the smart way to approach this would say let's wait till September of 2027, give us a year of buffer to see how things settle out. Um… And, you know, today it's basically our investment cutting trees and that kind of thing, so we're not putting manpower into it. I would be concerned where we're going to come up with that on top of, and, you know. I know we're… we… our priority is on City Hall, and that's where I've been putting my focus, where that income's coming in from. So, um, I think that would put a real struggle of City Hall plus two additional people, at least what I see. Um, into our budget.
[Foster]
Okay, I crunched the numbers, it's one person. I think we're fine. It'll pay for itself. Would I see. Okay. If ...
[Diehl]
I'm in. I did, uh… When he furnished us the 3 years of tax returns, of course, I like to crunch numbers myself, and I found it to be very lucrative when you take away all the fluff, vehicle expense, extravagant phone bill of almost $5,500 for the year. When you take away a lot of… Plus, it does look like… The net income, and he's paying us a rent of close to $40,000. If we were to take this opportunity on and the same rent, or the same net income of that amount, and we pay a… golf pro or semi-pro, whatever, or… A person to oversee it, whether it be city, employer, or whatever, it'd be, like, $90,000 you pay them, the net return to the city is $64,841. So it's a far cry from the 40,000 a year we're getting now. So this is my observation when I crunch the 3 years of tax returns and pulled out all the fluff and put it as net income.
[Harding]
Yeah, Kurt, I challenge on the salaries. Um, our base salary with benefits is $100,000 to $130,000. So that's for one person. So, um… you know, I think if you look at the hours, we have to be open 56 hours a week, and that doesn't include any mowing, any maintenance? That's just having somebody at the clerk's office, right? So, you know, I… and historically, what I've seen has been two and a half people to maintain the golf course for a couple of months. So, I think the challenge of one person at 90,000 without benefits. Um, it doesn't add up with what our salaries are and our benefits.
[Diehl]
I think with today's technology, you can put I won't say the honor system, but there are… it's like boat ramps now in certain communities, you know. A perfect example is the boat ramp next to the Allen Fish Company. It's all monitored. And if you don't pay, you pay dearly with a fine on top of the fee, so… With this day and age with electronics and cameras, you can… you can virtually run this place, you know, if you… I only want somebody to work 8 hours a day, 5 days a week, then the honor system, the electronic system kicks into play, and everybody stays honest, so. It's like you… it's like when you… if you have a yearly membership fine, you're covered. But the people that don't have a membership and have to pay, they just, you know, you put your credit card in there, you know, if you bypass the camera, it shows that you've not paid, so it's… It's just like, when you go into a bar now these days. A lot of bars that are well equipped, they have… they can monitor every drink, every beer that's poured, so there's no theft or whatever, so, you know, it can be monitored without a full-time person.
[Foster]
Okay. Well, we've kicked this, um… I think it's, uh… I think we understand each other's opinions the only thing left on this, I guess, would be citizens' comments, and we'll adjourn this piece, and we'll roll right into the, uh special meeting. Citizens' comments.
[Doug Lipke]
Morning, everybody. Uh, Doug Lipke. Uh, living at Monte Cristo, right down the way here. Thank you. Len Testa and I have spent a lot of time talking to Daryl. Uh, the mayor, a number of you commissioners. Um, we thought we walked in here today with an understanding, and Daryl, you know, at times can… you know, be a little volatile reacted to a number of things that people said. Today, um… He did react positively to the 20-month lease through September of 2027, which I think. Um… was… Uh, suggested by a number of you, which I think. accomplishes a number of things that you guys have, and that's the transition, which he's agreed to do. Um, and uh, you know, Doug, uh, uh. Condor suggested, you know, an improvement on the, um… on the clubhouse, which, you know. Uh, the discussion we had, I think, with the mayor and Darrell was. That that's, you know, could be a fine idea, but after the lease is over, but not during the lease, because it would interrupt operations. Revenues this year have not been good. But he's willing to hang in there and do it on a couple of the issues, on a performance bond. It is $20,000. I don't know if you were suggesting you raise it to $39,000. I mean, I don't know why you guys would do that, but. You know, that's one question mark I had. On the legal fees, obviously, I think… I think I heard you say that he wouldn't be responsible for any of those. The one issue on the utility is it's a minor issue, really, but the way it is right now, I think my understanding is he pays 50-50 on both the clubhouse and on the, um… service building it's 50-50 that he pays for both of them, but whatever you're doing right now, Mike. Um, uh, if he's willing to continue to do that, but I don't know if there's a difference in what I was suggesting up there, but it's not much. On the tree trimming, we've had discussions with everybody about that. I… he's willing to do the shrubs, and he's willing to pick up the frommes, and clean up the golf course, which is what he does right now. But I don't think he has the ability to trim the trees, which I understand from the mayor has been done already. So, I think the suggestion by a couple of the commissioners about the city being responsible to trim the trees. was a good idea. He would do the other shrubbing and stuff like that, and the mowing and stuff like that. Um, the original lease, uh, had a list of equipment, but that got wiped out in the hurricane, and you guys understand, are… Supplying some additional equipment within the near future. And he's willing to do the normal maintenance he suggested on it, but not the major repairs of it, because it's your equipment, but he hasn't seen it. I don't think he even knows exactly what you're getting, but… Right now, he uses a mower that you guys supply, and he maintains it and everything else. The mayor's suggestion relating to the irrigation is his understanding all along. You guys maintain the underground system and like that, he would put the sprinkler heads on, things like that. I really don't think there's really, um, much difference. The term. I think he likes the suggestion that Mr. Harding would be the agent. Under the original lease, there was an administrator Which, uh, was it? Right, which, uh… Every 90 days, we're going to meet and talk about it and stuff like that. I think it's a great idea, and I think it's in the new lease, it would be in the new lease, and he thinks that Representative Mr. Harding would be a good person to do it for a number of reasons. You're the treasurer, too, and you'd be looking at the finances and stuff like that, so I think that was a good suggestion. I think Daryl does. I think, really, if you really look at it the only real issue right now is the term. And, um, he, before he… walked out there were some things that lit his fire, but, um, did say that. He'd be willing to do that 20-month lease and go through September of 2027 which I think accomplishes a lot of things. It's not exactly what the mayor wants, I know that. The mayor has not, he's been consistent on that for a long time but, um… he'd be willing to do that, and it seems to me that it would solve a lot of the problems. I don't need to come up here and talk about the history of the golf course and stuff like that. There's plenty of people that want to do that here tell you how good a condition it's in right now, and the job that he's done. Um, I think it's a lot more complicated than suggesting, um, the Commissioner on the far left. About just having somebody come in and paying them $90,000. I think. It's a lot more complicated than that, and um… to run this small little golf course, which a very nice chunk. Uh, but I think that you'd be able to figure it out over a period. Um, for at least through 20… 20… September 2027. That timing on September is good, because that's the end of the annual fees. So then, if you… if you terminated earlier, then he's got to give you a prorated amount back. But if you ended it in September, then you take over. And then you'd be able to collect the fees, and you guys would be running the golf course the way you want to do, and you could start building your new clubhouse, and you know, make it special, as long as it doesn't raise the cost so much that 90% of the people that are in here won't continue to pay it. So I think you guys are doing a good job at looking at all the issues, but I'm just kind of summarized the ones that I think are open, and I think the one issue, um, uh, would… would be, I think it's a good idea to do the 20 month lease through September. Although I know that's not what the mayor wants. So, uh, the mayor's done a good job of trying to meet with everybody and find out what the open issues are, but that's the one I think that, um, there was some comments that caused Daryl to do what he did, which is not always unusual. He's a hard-working guy, he loves the golf course, he has a passion for it. He's really good with the people, and we ask you to consider that compromise, I do, uh, to see if we can get this thing finished and move forward. And I thank you for all your work.
[Foster]
Just to be clear, a year ago, when we started on this everyone asked for a 2-year contract. 8 months brings us almost to a 2-year contract. Just to be clear.
[Lipke]
Right. But nothing's changed, right? I mean… Hasn't been the joint venture that I was talking about that, um… Um, you know, so I hear what you're saying but things are the same, but things are different, and I do think that the term ff you guys would agree to that term, I actually think that it wouldn't take the, uh, counsel very long to, do an agreement that both sides would agree to. Thank you for your time.
[Bill Catto]
Good morning, I'm Bill Catto of 601 West Ocean. I came to this meeting. anxious about what the future of the golf course would be and I, in hearing the comments and so on, I kind of figured maybe we were good to go. I'm even more anxious right now. I think what we've done, we've taken a guy who's put the last 17 years in. And the course is in better shape, the greens are in better shape than I've seen them in 30 years. And what we've done to him is we've said, okay, well, we'll keep you on until September. But then we're going to tell you month to month whether you're employed or not. But we want you to invest your time, and we want you to train our people. That is unfair, in my opinion. And you ought to reconsider that, please. Thank you.
[Foster]
Okay.
[Jack Marsich]
Jack Marsich, 12960 Overseas Highway. I've been a resident here for 28 years, winter home, and a member of the golf club for over 28 years, I've seen a lot of changes. Um… I thought I heard very clearly from this organization that you were very pleased with the job that Daryl was doing, that you complimented him several times as I listened to the comments. The question to you, Mayor, is what problem are you solving by doing what you're doing?
[Foster]
So, I usually won't do this dialogue, but I will. Just be clear Daryl had made it clear over a year ago that he was looking for a two-year exit. So we would be foolish if he plans to leave here not to do something. So you may want to ask him.
[Marsich]
I'm not quite sure that what you proposed, I thought I heard other members of your committee suggesting a 20-month contract, which would incorporate both your need, right, plus the additional year, with the idea that that would work. And I thought there was some agreement with Daryl on that.
[Foster]
No.
[Marsich]
What am I missing?
[Foster]
The agreement was for 8 more months. And he was done. Now remember, this is a team of 5 up here. I'm giving you my opinion.
[Marsich]
It seems like your opinion is the only one that differs from the other four members that I've heard.
[Foster]
And I'm entitled to that.
[Marsich]
So this is an entitlement decision.
[Foster]
I'm not gonna get in a dialogue with you on this. I'm entitled to my own opinion, just like everyone else up here is.
[Marsich]
And there's no attempt to reach consensus with the other members of your community.
[Foster]
When we vote, you'll find a consensus, and it may very well be 20 months.
[Marsich]
I'm very disappointed in this whole procedure. I've led meetings, I'm president of several organizations. This is… this is phenomenal, and your suggestion at the end there misses the whole concept of what a golf course is about. You're turning it into a kind of a mechanical kinds of procedure rather than meet and greet, we're moving further and further away from the humanistic elements of what the golf course is about.
[Diehl]
What my response was is to minimize, uh… additional positions, you hold one person responsible for a 40-hour week. The rest would be, and I hate to use the honor system, but it would be modern-day technology that would capture those. People that don't have a membership, and they would capture those fees where they scan their credit card, and they go ahead and golf. If they want to play 8...
[Marsich]
I certainly understand the technology that works but golf course is not technology. Golf courses are humanistic enterprise. It's where people interact with each other. They go out to relax, and they go out to enjoy each other.
[Diehl]
I get that, but… When you, a clubhouse especially, it can be designed during these modern times, you'll still eventually, when we've redesign the clubhouse and extend it, there'll be plenty of time for congregation, food and beverages, you know, whatever you all want to do, is just. Right now, you're taking… it's just like… You go to the same barber for years and years, and she or he retires. Oh, what am I going to do now? This… I feel you guys' pain. This guy's been here for 17 years, so you've gotten… Quite attached to him, but when it's time to move on. We've got to find bigger and better things. to draw from, so this is… This is just a change that's taking place. It's not… Well, it's not that we're going to change the whole concept and raise everybody's fees. I mean, it's just…
[Foster]
So, let's get back on task. This is time for your comments. We're not going to get into dialogue back and forth. I think his comment had to do with the term as far as the link. And I've heard your comment, and I appreciate it.
[Joe Pasvalik]
Good morning. Uh, Joe Pasvalik, Monroe County, uh. I live in Marathon, and my question is what are the goals? We don't have any written goals of what the golf course is supposed to look like. That would be… we could look at a list of what the goals are for after the transition, or when the transition starts. And then the public would understand. What the goals are, and where we're headed. I mean, we're talking hypothetically here of. Daryl doing a transition to something, we don't know what it is. So, I mean, a list of what the goals are for the golf course would be very helpful for us to understand. Thank you.
[Richard Pflueger]
Richard Pflueger, 240 8th Street. Um… so, Commissioner Harding, I appreciate your comments. I think you're spot on and I think the rest of you should. Listen to what he has to say. Um, so my comment is, approve the Daryl Rice contract. If your goal is that the city operates the course, then say so, and why? And have you done a feasibility study? Have you done a market analysis? Have you done a property loss study? Uh, if the city operates, how will this be an improvement over what we have now? How will it benefit taxpayers? How would it benefit golfers? Be open, honest, transparent. Let us know your plans. Approve the Daryl Rice contract for as long as he is able and willing. And then find another Daryl Rice. Right.
[Foster]
Okay. No further comments?
[Colonell]
I have a comment. Are we going to discuss the subdivision if we can't get the golf course, or we're gonna… We can't continue the Daryl lease, we're just going to subdivide that property to housing lots.
[Foster]
We surely could. So… and be clear, everybody needs to understand, Daryl made it clear last year, he was looking for 2 years. That's what he was looking for, and he plans to retire. So unless you people think he's going to be here forever, he's already made it clear how long he's going to be here. So, that's… it's that simple. We'd be foolish not to have something in place to address that.
[DiFransico]
No, he… two years ago, he said 2 years, but I think in his most recent written document, he said he's willing to go 8 with one year, uh, extension.
[Foster]
Correct.
[DiFransico]
So that would be… that would say he's… passively approved 20 months. And so we'll do something different?
[Harding]
No, no, and he told me the same thing. September of 2027, he'd like to finish that out. Um, again, for, you know, the feedback was that's the end of his kind of fiscal year, so I clearly talked to him about that. He said, yep, I'd be willing to do that, and you know, what I could see when I talked to him, let's take the last 4 months would be an overlap with either we have another contractor come in, or whether we're going to take that on ourselves. Um, again, I think that helps us significantly. on allowing things to calm down after this legislation.
[Foster]
And again, that's… we'll bring this up through the vote, and that's how we'll go. So, but I wanted to get everything aired out.
[Diehl]
So, basically, where we're at right now, is it 8 or 20 months?
[Foster]
Well, it would be a one year that goes back to September to September with the one-year kicker. That's what it would be.
[Diehl]
into September of 2026?
[Foster]
September 2026 was a one-year renewal that would go to September 2027. So, that's the way it would be.
[DiFransico]
Or… or it could just be a 20-month from here.
[Harding]
Yeah, I agree with Tom's approaches that if I was the leasee, that way, okay, I know I have until September, and a renewal, you know, puts the question… We spent a lot of… we spent a lot of money already getting to this point. We don't want to start all that money again in July and August of this year, so I would just do one lease that's close enough to… 12 months they do 20 months.
[Foster]
So I'm going to follow the attorneys. I'm going to follow the attorney's advice that we can't have a contract for more than one year. Is that correct?
[Hicks]
Historically, that's correct, but under those P3 contracts you may, yes, sir.
[Foster]
Okay. Okay. Alright. So, any further comments?
[DiFransico]
I'd just like to make a clarification for all of us who are here. What we've been doing now is a workshop, and the idea of the workshop is for us to, us, Commission and the public to air out ideas, to bring ideas to the fore, talk about them, talk about alternates, different options, things like that, without making any decisions. So. When you see us saying things that you don't like, it's our putting forward ideas that. Those are ideas, and we're, uh, deliberating them, talking about them, thinking about them so it's not, uh… How should I say this? Not an adversarial meeting we're having here, we're just having a workshop. Uh, soon we will have an adversarial, but perhaps not.
[Foster]
We will in a few minutes.
[DiFransico]
Just thought I wanted to make it clear to everybody that's… that's what's going on here. We're not… on each other's throats, yes.
[Colonell]
Okay. I would like to comment on this gentleman's comments for a minute. The clubhouse is a pie in the sky. It's an idea, is all it is at this point there would be no clubhouse construction starting next week, or even in 6 months at the rate we're going. So… and whether we even build a clubhouse. I was more interested in. So, I don't want you to get the wrong idea that you know, I would want Daryl to coordinate with You know, to cooperate with us while we're building a clubhouse. That's not… my goal. My goal is to… is have the city control the golf course for its own destiny where, right now, it's Daryl's vision, it's Daryl's golf course Um, and I think for us going forward, the 20 months, or the 8 months, or whatever we decide Um, we need to use that time to prepare ourselves. As you said, creating what our future path is and to define that path, and what do we want out of this golf course? If we just don't pay attention to it, leave it alone, and… it's gonna end up like it was before. It's gotten better because of effort, because people stepped up and said, hey, I think we can make it nicer. I'm not trying to reinvent the wheel. So that was my comment on cooperation with Daryl, not so much the clubhouse, that… That's… that's farthest from my mind. I'm more interested in Daryl helping us in a cooperative nature. So that the city can, in 20 months, 8 months, whatever we decide. Hey, you know, smooth transition and go right into what we're doing. He needs to cooperate with us on that. And that's all I was asking. And I think you know, I think he will do that. I think he said he would do it. So, you know, I'd be… that's something very important to me, because I think the 20 months is important. Otherwise, we're, you know. We're… we're not ready 20 months. So… So, to clarify that. Thank you for your comment.
[Foster]
Alright, so I'm gonna go ahead and adjourn this part of it. We're gonna take about 15, and then we'll, uh, reconvene.
SPECIAL MEETING
[Foster]
Okay. Call to order the Key County Beach Special Meeting.
...
Alright, based on conversation we've had and some of the comments are in here, we need to go through these comments probably one at a time. So… you got something, Sylvia?
[Silvia]
I have not received correspondence.
[Foster]
All right, great. So, we have some comments in here, and I think we discussed them, some of them, like the landscaping., the irrigation, the bathroom, utilities, that stuff still needs to be hammered out, so why don't we just go through them one at a time. Um, I guess we can just go ahead and vote on each one of these. To make it, uh, clear, so… Let's, uh, step through it that way. Alright, so the first one's the term. So we've kicked around a couple of different ideas. I'll entertain a motion one way or another.
[DiFransico]
I'll make a motion that we offer a 20-month lease, Mr. Rice.
[Harding]
I'll second.
[Foster]
Okay, any discussion? No, we're not going to change it into Section 8 housing.
[Motion approved unanimously]
Okay, next. Uh, the contractor made 90-day notice, uh… I think this would be both ways, so we can terminate either way. It's either the contractor or the city has the ability to do 90-day termination. That's fairly standard language, correct, Jimmie?
[Hicks]
Um, it is… I don't believe that was a proposal, though, with the 20-month, as I understood the comments that came in from Mr. Rice's attorney, that if it was a fixed term it would not be a 90-day right to terminate. I believe if you're wanting to proceed with 20-month, it's 20-month. Now, you will always preserve the right to terminate for cause which doesn't require…
[Foster]
And that's covered in here?
[Hicks]
It is, and we'll clarify it accordingly, but I believe if you're going with the 20-month term fix, then there's no issue of right to renew required.
[Foster]
Okay. Alright, then we'll take this one out and leave the other section in for cause. Okay, I'm good with it.
[Colonell]
Oh, excuse me, I have a comment. Is this… are we taking out the termination for convenience clause? The city… does the city have the right. To terminate the lease upon notice for its own convenience.
[Hicks]
As it currently reads, yes, sir. Now, again, I believe Mr…
[Colonell]
Okay, good.
[DiFransico]
I disagree with that. I mean, the clause that allows that is a very onerous clause, and I don't think you go into a lease, knowing that the other side can terminate for convenience. I mean, a lease is a fixed period of time, and I don't think the convenience clause that is appropriate for here.
[Colonell]
Well, I would beg to differ because this is a lease, but it's also an operating agreement, so it's also a performance based agreement that is not just a simple lease. So I don't know, I mean, our attorney says that convenience…
[DiFransico]
If the performance isn't there, then you have cause to terminate. You terminate for cause, you don't terminate just because you feel like doing it.
[Foster]
Alright, so we're gonna move this along, we're gonna vote on it. That's how we're gonna step through it.
[Diehl]
What's the criteria? Is it for cause, or for… convenience.
[Foster]
Well, there's a section in here, Jimmie, could you bring it, uh bring it to our attention.
[Hicks]
Yes, sir. Yes, for both the Comprehensive agreement and the lease agreement provides for various, um, ability to terminate primarily for cause. There are some rights in the city to immediately terminate, for example, in the comprehensive agreement, Section 9.3. Uh, where, in effect as Mr. DiFransico says, is a termination for convenience. Right. It's… not quite that loose, it still requires something that the city finds objectible or not consistent with the purpose of the lease. But there's one side in the… crash on the city.
[Foster]
Okay, and are you putting that in all your, um… Contracts.
[Hicks]
We include that for all the KCB standard contracts, it's the form, and then often occasionally gets negotiated out, but we put that on your behalf, in every one of our contracts.
[Foster]
All right, so to move this along, I'm going to vote that we leave that language in there, and that's my motion. Do I have a second?
[No one seconded the motion]
Okay. Motion fails.
[DiFransico]
Next, I'll make a motion, uh, that we… Uh, delete section 9.3.1.1. of, uh, of the draft terms. draft agreement, which is the convenience section.
[Diehl]
Well, which is allowed… it says for cause, but it's… It's frickin' me, if we could… if we could drop the convenience and set it up for just cause. Well, that's… Bernie, it may come about during the term. Any material breach or termination, please?
[DiFransico]
That's my motion. I move that we remove that section.
[Foster]
Understand that we have a second?
[Harding]
second.
[Foster]
Any further discussion? So, the only comment I have is we ought to have some… some termination language in here, period.
[Silvia]
Roll call. Colonell Yes. Harding? Yes. Diehl? Yes. DiFransico? Yes. Foster? No. Motion approved.
[Foster]
Okay, next one. Alright, let's go to appendix. A, attachment A. There. Okay, so first one we've already done term, it's 20 months. The second piece is only the contractor has a right. We, um… we eliminate that.
[DiFransico]
I suggest we eliminate that. No, neither side has a right to terminate for convenience.
[Hicks]
Yes, sir. you removed it from the comprehensive agreement, so it would come out of…
[DiFransico]
Right, so that's why I just want to make sure that we covered it.
[Foster]
Okay. It has been a reimbursement for expenses. Now, each person pays for their own expenses, that's 3.3. Yeah, and then you go to 5.4.14. So, 5.4.14, the only thing I recommend that we take out is the trimming of the trees. He does everything else. You see it? We'll maintain the trees.
[DiFransico]
What is arbor care?
[Diehl]
maintain a tree.
[Foster]
bushes, trees, it's okay. Well, take the trees out.
[DiFransico]
Oh, okay. H3. Thanks.
[Foster]
Everybody got it? Yeah. Okay, so that's the motion. We approve it, minus the trees.
[Motion approved unanimously]
[Foster]
Okay, then the next one, 7.1.3, a suggestion that should be different fee schedules. Now, I recommend that we take that out. That's my motion.
[DiFransico]
Second.
[Harding]
I'm sorry, which one again?
[Foster]
It's 7.1.3. Basically, different fee schedules for non-residents. To me, that's just two, uh, yep. Overbearing, I don't know how we would manage it. So, I recommend we remove it.
[Colonell]
I second that.
[Motion approved unanimously]
[Foster]
Okay, next one. Um, this talks about… 8.6… So, we talked about providing the equipment. Mike has already bought the equipment, I think it's due in March? Okay, so that's… we purchased it, but we can't… we can't move it any faster. Mike, do you have this in front of you? Yes. Alright, what's your, uh, take on, uh… the leasee using public works equipment?
[Guarino]
Of large equipment, I think that's fine, as far as consumables, fuel. Uh, cleaning supplies and all that stuff, I think that should be with Daryl.
[Foster]
So, I guess the wording would stay just like it is.
[Guarino]
That worked for me.
[Foster]
Everybody got this? Yeah. Okay, so I… the motion is to maintain the wording as is. for 8.6
[DiFransico]
Okay, a question, Mike, do you have this in front? 8.2? Take a look at that. The estimates… And part of labor paid for by the lessee. Do you want… do we want to change that? To say that the city will perform all maintenance, all major repairs and maintenance.
[Guarino]
I think it's easier for the city to make all the major repairs.
[DiFransico]
Different motion. We should finish yours first, then do it. So I'm happy.
[Foster]
We have, uh… We have a first on 8.6. Okay.
[Harding]
Second.
[Motion approved unanimously]
[Foster]
Okay, now go back to 8.2. 8.2,
[DiFransico]
I make a motion that we change this to have all major repairs completed by all aspects of the major repairs completed by the city.
[Foster]
Okay, we'll just change the word from leasee to leaser.
[Harding]
Second
[Motion approved unanimously]
[Foster]
Alright, now, this is the one on the maintain the irrigation system. Jimmie, this just needs to be a little bit of wording on it to, uh… he will maintain the irrigation system minus the pump and the main line that comes in, I believe we do that, is that correct, Mike?
[Guarino]
That's correct.
[Foster]
So, just the way it's always been, that's what we're going to keep.
[Hicks]
You know, I may… I understand it from… from the… summary chart we had. Basically, the city would be responsible up to the sprinkler head. sprinklehead. Then it becomes responsibility of Mr. Rice.
[Foster]
What about the small, uh, lines coming off it, Mike?
[Guarino]
That, I believe he's generally taken care of, Daryl.
[Foster]
So, I think the wording needs to be the main line, the pump. I don't know what valves we have in that system.
[Guarino]
Shut off valves.
[Foster]
Right, about it. So, he maintains the irrigation system minus the main line and the pumps and we've already bought the parts, so… Yes. Alright, that's my motion.
[Harding]
Second
[Motion approved unanimously]
[Foster]
Okay. Um… additional comments. The clubhouse? The bathrooms are his. Period. Um, that's my motion. Mike, we have a contract right now, can you get the… can you separate the costs for that bathroom out of it?
[Guarino]
I can, yes.
[Foster]
All right. We're not talking about the bathroom in the service building, we're talking about the bathroom in the golf shop, right? Correct. Okay, that's his responsibility. That's my motion.
[Colonell]
I'll second.
[Motion approved unanimously].
[Foster]
Okay, the next one talks about golf pro shop. We're not… we're not going to do any of that, so… That's just a note. Uh, let's see, lease ... Leave the, uh, the service building in there. He uses it now. We'll continue that.
[DiFransico]
The thrust of that comment, I believe, is that only material and property needed for the golf course should be stored in there, nothing else.
[Foster]
Correct, Mike? Correct.
[Guarino]
That's correct.
[Foster]
What prompted that, uh… Isn't that how it works now? Yeah, what would have prompted that?
[Guarino]
Private property being stored, building.
[Foster]
Got it. Now I. Okay. Like, uh, boats? Yeah, no, we don't want that. Only golf clubs, uh, equipment. Okay, um… Is that already in the contract, or is that something additional? I think that's an addition, too. Alright, so let's make a roll call for it. So, I recommend that we maintain the comment that says, building is for storage of property needed for the operation and maintenance of the golf course. Right? Second motion.
[DiFransico]
Second.
[Motion approved unanimously]
[Foster]
Okay. Um, go down to 13. I was asked by some of the golfers to put in a vending machine. Daryl has no objection to it, so… Um… the wording and 13 should just simply say that The city may operate and maintain. Uh, vending machine, period. That's my motion.
[Harding]
second.
[Motion approved unanimously.]
[Foster]
Okay. Um, without cause, that note comes out. We've already discussed that. Where is the cost? Where is that? Jimmie, I don't know where the cost is, but there was no objection from Mr. Rice on it, so… We just need to do it… So… did we ever increase their fees, Sylvia, for the past.
[Harding]
Um, so the number in here is an increase. The number that he's currently paying now is not an increase, because we kept extending contract. So this contract would have a higher… this would increase.
[Foster]
Right. 39 is the number. Right. Now, did we ever increase the extensions?
[Silvia]
No, there were no increases of the extension.
[Foster]
Okay, so… The way this… the way I read this is… It goes back, or… or no, just prorated for the next 8 months. I think prorating the fair way to do it. Yeah, that's fine. Just prorate it, but uh… my motion is that we maintain the cost that we've, uh, produced in here. There goes 39,000. Right.
[Hicks]
$39,500, subject to an annual CPI adjustment.
[Foster]
Alright, that's my motion.
[Harding]
Second.
[Motion approved unanimously]
[Foster]
Thanks. And in here somewhere talks about point of contact. I recommend that we have Tom Harding do that.
[Harding]
I'm happy to do it. Okay. And I think a minor one, Mayor, would be just the hours.
[Foster]
There was one other item that I didn't see in here, and that was the cost for the utilities. Did we, uh… did we cover that?
[Hicks]
I think we need to cover, to be very clear, because again, what we've presented and what Mr. Rice's comments back and the conversation this morning, I think it's an open.
[Foster]
So, the Pro Shop and the service building are under two different, uh, bills, correct?
[Unknown]
I don't know that for sure. I know that they're separate from the shop.
[Silvia]
Mr. Mayor, the Pro Shop is not separately, so currently Daryl pays the water costs, and he pays half of the electricity.
[Foster]
Do you have an idea what that usually runs?
[Silvia]
It's about $100 plus minus. Depending on summer.
[Foster]
Alright, that's fine. Then we'll maintain that. That's my motion. Maintain the 50-50.
[Harding]
Second.
[Motion approved unanimopusly.]
[Foster]
And I think, if I'm not mistaken. That should do it.
[DiFransico]
Back to Tom's comment about the hours.
[Silvia]
There's a specific item in the… And the performance bond. There was a question about the performance bond.
[Foster]
Um, the $20,000? Just leave it like it is.
[Harding]
And I would… I would make a motion at the hours… stay where they're at, which I… correct me, Mike, is 8 to 4?
[DiFransico]
The document says 7:30 to… 7.30 to 5, Daryl's been using… been manning it 8 to 4, is what he said.
[Foster]
I haven't heard any complaints about it.
[Harding]
Yeah, I haven't heard any complaints. I think we just suggested. I would make the motion 8-4.
[Foster]
I'm good with that.
[DiFransico]
Second.
[Motion approved unanimously.]
[DiFransico]
There's one other thing that I recall, and that is, I think he's proposed to not man the Clubhouse Mondays and Fridays during the summer, Is that right, Jimmie? I understand that right? He was not going to open the golf clubhouse on Monday and Friday, correct? Correct. Or during summer months.
[Hicks]
Correct, and I think we also need clarification on what summer months shall be, because it is different from what we presented to you and what he's proposed.
[Foster]
So, how would people go off that want to go.
[DiFransico]
Honor system.
[Foster]
Was that explicitly, uh, written?
[DiFransico]
No.
[Foster]
So, Jimmie, if he wants to do that, the city still needs the ability to… the people still need the ability to play, so could you put some language in that covers that? Does that work for everyone? Yes. Right, just make sure it's got language in it, and if he's got an objection to it, let us know.
[Hicks]
All right, and if you would confirm what summer months are defined to be correct. Sorry, I'll need that. When do we want to… they propose something, I believe.
[Harding]
I think what you got, Tom is May through September, yes.
[Foster]
Is that the last of May through the 1st of September? 1st of May. First of May. To the 1st of September?
[Harding]
No, the 30th of September.
[City of Key Colony Beach] 11:00:27
Right. You can adjust whatever lunch you want to put in.
[Foster]
I'd say 1st of May to the 1st of September.
[Harding]
Okay.
[Unknown]
So… That's the summer months. May 1st. is it the end of May? What do we… what do we have now? Not near the end of it.
[Harding]
May's pretty dead.
[DiFransico]
May 1 through September 30th is his proposal.
[Foster]
Okay, so I say May 1 to September 1. Yeah, that's good. Okay, that's my, uh, motion. Right? We got first and second.
[Motion approved unanimously.]
[Foster]
Sure. Anything else on your list?
[Colonell]
I have something. Jimmie, have we addressed… the workers' compensation situation with Daryl. In this lease agreement. He's operating out there without workman's comp. His employees have… are not covered by workman's comp, which means it puts the city at risk. Is there something in this language, in this contract that was… Uh, require him to provide workman's comp, or do we… are evading his responsibility of
[Harding]
Page 5.
[Colonell]
But what's driving?
[Hicks]
Comprehensive agreement based upon statutory level. The insurance… yeah, the insurance in section 6, the general liability, as well as workers' comp, which is statutory minimum required, so if he's required by statute to have it he must carry it. If it's not required by statute based on employment issues that he's not required to have it, but I do not believe that creates any liability on behalf of KCB.
[Colonell]
Got it. Okay, great. Okay.
[Harding]
And then, Mayor, I'd like to suggest that this would hopefully minimize our legal costs as Jimmie's got an updated draft, I'd be more than happy to review that directly with Daryl. So, any edits and stuff, I can work with Daryl and get back to Kimby Prince so we don't… Go back and forth. Yeah, we really shouldn't have much for edit. Right, I don't think so.
[Hicks]
Just so I can be clear, um, so… KCB wants to make these changes and communicate with Mr. Rice, or shall I make the changes, and then you communicate with Mr. Rice with it?
[Harding]
I think if you make the changes to the document, if you can send them to me, I'd be more than happy to sit down with them and go through it line by line, page by page. And then, you know, any minor edits, I'm hoping it's minor edits, Work it out with him and get back to him.
[DiFransico]
Do you… do we need to include his attorney in this?
[Hicks]
Daryl will. Daryl will, right?
[Harding]
I just didn't… I think we would minimize effort if we go from lawyer to lawyer, you know, back and forth. Definitely.
[Foster]
If there's any substantial changes, though, it comes back.
[Hicks]
I think we've… Mayor, we had a list of just some clarifications, that we made, on the issue was, uh, regarding mulch That's the new provision, and I think Mr. Rice's counter-offer was city would buy the mulch, but he would provide the labor.
[Foster]
Hmm… Mike, how much is mulch usually?
[Guarino]
A little over $500 pallet. Usually takes 2 or 3 pallets to do. Disney to our golf course.
[Foster]
No, I think he needs to buy that. That's part of the landscaping. We're going to take care of the trees and all the BIG stuff. I think he can handle that. Okay. Is it written in there already, Jimmie? it's not in the old agreement. No, no, it's in the new one?
[Hicks]
Yes, sir, it's in a new one.
[Foster]
Okay, then we'll leave it as is. Well, that's my motion.
[Unknown]
I have a second.
[Diehl]
Second.
[Mixed discussion]
How much mulch? Two scared, right? It's harder to find, or harder to predict, so I think… Well, I mean, in the context of go out there with one bag, and you've met the requirement. Well, then Mike just said it would take two skids of mulch to do the golf course. Is that… Accurate 2-3, yes, alright, so let's go ahead. He's responsible to keep… y'all keep it up. Yeah, I mean… I wouldn't put… how much you'd insecticide do you need, and all that. Don't do that. There's a responsibility to upkeep that area, so… I'm good with that.
[Foster]
All right, we got a first, second. Roll call.
[Motion approved unanimouly.]
[Foster]
Jimmie, what else do we have?
[Hicks]
I mean, I… Uh, can I take 30 seconds just to look up the list of different seeker provided us, and uh… Daryl was telling me to make sure we've not overlooked anything.
[Harding]
Um, one thing for us, I guess. Well, he's doing that is… If we need additional screen barriers dor protection, who we think stands responsibility in the past? The city paid for them.
[DiFransico]
Okay. You don't want him taking him with him, so we should pay for them.
[Harding]
I would… I would agree, and I think they're… obviously helped us for liability.
[Foster]
Who's maintained them in the past?
[Harding]
We have.
[Diehl]
I say continuous. We've demonstrated in the past.
[Foster]
Is it even, uh, defined in the contract any different? I don't think it's… I don't think it's defined. That level of detail is defined. I don't think we need to go there, but we have to put it up.
[Hicks]
Mayor, just a few things. Just to confirm, and I apologize, taking notes, um, consumables… Did we have a motion of non-consumables?
[Mixed Ddiscussion]
It didn't express motion, which is a… That's easier. Each party pays their own. Right? For what? We're talking about… so I just want to confirm that that will be responsible.
[Foster]
And still, as for that one paragraph, that's still his responsibility. The only thing we took out were trees.
[Hicks]
Okay. And then, uh, there was… I think there's one more issue. Oh, watercoolers. We've put in a requirement there be water course. station at various places along the course. Um, his response was that based upon sanitation, health issues, cleaning, that that was something that he could not provide, that they provide water bottles. That's Clubhouse, so just would need a motion to remove that from the draft that I had prepared for you.
[Foster]
Yeah, that's been in the contract for quite a long time, and I don't think he's ever really done it. So… I'm not hung up on it.
[DiFransico]
I'll make a motion to remove that requirement for our contract.
[Diehl]
second.
[Motion approved unanimously].
[Foster]
What else, Jimmie?
[Hicks]
Mayor sitting here right? Right here, right now, that's all I'm aware of that we need, um… To vote on.
[Foster]
Double check. I want to do this once.
[Silvia]
Can we take a 5-minute break?
[Foster]
Alright guys, let's crank this back up. There's so many tools over there. Alright, Jimmie, go ahead and, uh, tell us what you got.
[Hicks]
Okay, yes, sir. Um, one is just, I think, to… just point out, um… We've used the concept of major repairs, minor repairs. Those are undefined words, hard to define, as I point out, that's, you know, at this point, about as best we can do in terms of not being able to predict specific in the future, just point that out, that's how it rings. Um, second, um… for the draft that you're considering, we had put in a requirement for setting of the fees required commission approval and any changes require Commission approval in good… any good faith. You couldn't withhold it unreasonably, a changeless fees, so… As he's presented his counterproposal he would be unilaterally in charge of the fees today and for the next 20 months. So, we would need to either remove that provision or make it clear that we're requiring that of him.
[Harding]
I like that we jointly approved fees and historically, we haven't been involved with those, and I think it's great that we added that language in there um… Which is, I think, 3.5, right?
[Hicks]
Yes, or 3.5, yeah.
[Foster]
So we're leaving that in.
[Hicks]
Unless you direct otherwise, yes. So long as it cannot… unreasonably be withheld. Right. It does provide that we have to consent, but we cannot unreasonably withhold that consent. Okay. Uh, another just verification, the 20-month is not going to be from the day… let's say we sign it today, I know we're not. It would be 20 months from the day, it would be 20 months from the current lease extension, which is early February, so it'll be 20 months from the expiration of current lease extension, correct?
[Foster]
No, it has to end in September of 27, because that's when the fee schedules are. I think the 20-month is based upon the concept of the February start date. Okay.
[Harding]
Yeah, so Jimmie, maybe to clarify, I would just… specify September 30th, 2027.
[Hicks]
And maybe that's all I have, and that's all that I've… seen that maybe remaining, um, Mr. Rice's comments back to the board, so… Sitting here right now, I believe that's… that's everything. And, uh, the Commission doesn't have anything further than perhaps one final motion to approve subject to all the amendments we've made along the way.
[Foster]
Okay. So, with that said… Would you like to make a motion?
[DiFransico]
I'll make a motion that the Commission approve the agreement and the lease Appendix to the agreement, uh, as modified during our discussion today.
[Diehl]
I'll second.
[Motion approved unanimously]
[Foster]
Okay. That's it. Citizen comments.
[Lipke]
Got it, got it. All right, first of all, thank you for a very special meeting, your special. discussions and compromises and the like. I appreciate it. I think we all do. Don't take it for granted. The only common is common sense. Uh, to counsel. I assume this is… I don't even have to mention this, but considering that Mr. Harding… Commissioner Harding is going to sit down and talk to Daryl, if I understood it, regarding the changes. If counsel could give a marked copy. Black line copy, red line copy, whatever, off of the original one the two agreements, said Mr. Harding could then go through and look at the marked copy With, uh, so that rather than just a clean copy, so that he can go through them one by one.
[Foster]
In other words, you want a red line of all the comments. Red line, black line, whatever.
[Lipke]
But however you want to do it, right? I assumed he was going to do it anyhow, but I just wanted to mention this. Thank you. That's it. Thank you.
[Cindy Catto]
My thanks also on behalf of the Ladies Golf League and the Rec Committee, and the Rec Committee is available for any help assistance that we can do to make everything runs smoothly. Thank you so much.
[Foster]
Great, thank you. Okay.
[Dave McKeon]
Dave McKeon, 2 7th Street. I want to echo Cindy Catto's, and also add that the Beautification Committee stands ready to help make things work wherever we need to Thank you. Great, thank you.
[Foster]
Okay. That should do it. Motion to adjourn.
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