Jeff Bridges presented the
bids for the Golf Course Pump Station. He gave some background on the
project and stated the estimated cost was $80,000.00. He stated the lowest
bid was from Utility Contractors for $106,650.00. “There should be
sufficient revenue without significant changes to the contract to pay those
bonds off if the golf course maintains a stable activity or increased
activity. There are some other issues regarding the operations of the golf
course that some Council Members have expressed concern about. However, in
order to get the course in a condition to be managed properly, it is
important that the city moves forward on the pump station and deal with any
management issues as we go along.”
A motion was made by Charley
Lewis, seconded by Keith Zinn, to accept the bid from Utility Contractors in
an amount not to exceed $106,650.00 for the pump station at the golf course
and authorize the president to sign a contract for those improvements.
In further discussion, Keith
Zinn asked if the sprigging was included in this bid.
Jeff Bridges stated that the
sprigging would not be paid by the Public Building Commission, it would be
paid out of the Golf Course Fund.
Dennis Bush asked where the
money would come from to pay the bond payments if the golf course was not
able to collect that amount or more and pay for it in rent.
Norm Manley stated that the
debt is a City at large obligation.
Harry Hale stated that the
reason this motion was made is because it was time critical. He asked if
there was a concern that the debt service revenue would not be available.
Jeff Bridges stated there
was no concern at this time based on historic performance.
There was general discussion
regarding the funding of the project.
Charley Lewis requested that
a date be set to further discuss the operations of the Golf Course.
Jeff Bridges stated the
management issues can be discussed at the March 12th meeting in
Ben Lawrence stated he
agreed with his fellow Commissioners. “That course is in dire need of some
work. It needs water desperately. I am a little hesitant to proceed with
this not exactly knowing where the funds are going to be coming from. It is
time critical but that leaves $70,000 to $80,000 out there that we don’t know
where it is coming from.”
Jeff Bridges stated that on
a year to year basis the funds are coming in. “What the prior Public
Building Commission talked about was pay whatever can be paid in cash,
finance the rest and use the rent payments from the golf course to pay those
annual debt service payments. That is the projected way to do this and that
is what is being recommended at this time.
Ben Lawrence clarified by
saying the projection is there will be enough revenue generated by the course
because it is more playable. He further stated that was only a projection.
Mr. Bridges stated that even
at last years rent level, there should be sufficient revenue to pay the debt
service. “We are anticipating a debt service of about $10,000.00 a year and
last year the Golf Course brought in almost $13,000.00, however it had a high point of $18,000.00. If it can get back into the $15,000.00 to $16,000.00 range
there shouldn’t be a problem. Without repairing the Golf Course, it doesn’t
matter how you tackle the other issues, people are not going to play the
Motion carried 5/2 with Ben
Lawrence and Dennis Bush in opposition.
Dennis Bush explained his
vote by stating that although he agrees that this issue is time sensitive, he
knows that the budget next year is going to be strained. “I know that we are
probably going to be coming to the people with a mill levy increase. I think
it is very important that whatever funds are set aside in that reserve, are
to be used for nothing other than debt service.”
Harry Hale confirmed that
the issue pertaining to the management of the golf course would be brought up
in a future meeting.
Jeff Bridges stated that
that issue would be on the March 12th agenda in an executive
Bob Ruth asked when the
concession stand for the 13th Street Sports Park would go before
the Public Building Commission.
Jeff Bridges stated that
would be on the March 12th agenda as well.
Motion was made by Keith
Zinn, seconded by Dennis Bush, to adjourn the Public Building Commission and
reconvene the City Council Meeting at 7:18 p.m. Motion carried 7/0.