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HomeMy WebLinkAbout03/20/1980CITY OF APPLE VALLEY Dakota County, Minnesota March 20, 1980 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota held March 20, 1980 at 7:00 o'clock p.m. at the Apple Valley City Hall pursuant to due call and notice thereof. PRESENT: Mayor Garrison; Councilmembers Holton (arrived at 7:30 p.m.), Kelly, Overgard and Savanick (arrived at 7:20 p.m.); Clerk Asleson ABSENT: None Mayor Garrison called the meeting to order at 7:00 p.m. The Finance Director, Mr. Ballenger, and the City Administrator, Mr. Asleson, reviewed in detail with the Council, the bids for group life, group health and group dental insurance that were received on March 10, 1980. Primarily, Mr, Ballenger reviewed his memo and its attachments to the Council, dated March 18, 1980 and Mr. Asleson reviewed the cost division sheet; that is, the amount paid by the employee and the amount paid by the City for group coverages based on the bids. Councilmember Savanick arrived at this time. MOTION: of Overgard, seconded by Kelly, to adopt Resolution No. 1980- 33 awarding group insurance bids to the Prudential Insurance Company and Nicollet-Eitel (for HMO coverages) based on their low bids. Ayes - 4 - Nays - 0. RES. 1980-33 AWAP, D GROUP INSURANCE RES. 1980-34 APPROVE COST SPLIT FOR GROUP INSURANCE MOTION: of Overgard, seconded by Kelly, to adopt Resolution No. 1980- 34 approving the split for group insurance coverage costs be- tween the employees and the City as more particularly detailed in Exhibits A and B to said Resolution. Ayes - 4 - Nays - 0. Councilmember Holton arrived at this time. As stated in the notice for this special meeting, the primary topic to be considered was the operation of the City's Lebanon Hills Golf course. A summary of that dis- cussion is attached to these minutes. MOTION: of Kelly, seconded by 0vergard, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 10:15 o'clock p.m. CITY OF APPLE VALLEY ATTACHMENT TO SPECIAL COUNCIL MEETING MINUTES MARCH 20, 1980 Mayor Garrison introduced the golf course portion of the meeting by reading a cover memo he had prepared as an attachment to a five-page memo prepared by Bassett for the Council for the purpose of defining the prob- lems that exist at the Lebanon Hills Golf Course. Mayor Garrison opened the discussion by giving a chronological back- ground of the golf course. In 1972, the Council appointed a golf course committee for the purpose of preparing an in-depth feasibility report. The current 190 acre site was selected and on November 8, 1973 a $1,475,000 bond issue was approved by the voters for the acquisition and development of the golf course. In 1973, the City had its first contact with a clubhouse developer and Mayor Garrison stated that on many occasions the City has been close to signing an agreement with a developer but for various reasons the proposals have not materialized. The City has experienced a long line of frustrations with respect to the privately developed clubhouse. Don Rippel was contracted by the City to develop plans and provide con- struction oversight to the golf course project. Rehbien Company was the low bidder on the golf course construction bid but had no experience in golf course development which caused considerable animosity between him and his subcon- tractors. Construction of the golf course was commenced in 1974 and generally com- pleted in 1976 with 9 holes opening in July of that year. The construction of the course was plagued with numerous problems, including torrential rains in the Spring of 1975 causing serious erosion problems and loss of topsoil. The inexperienced contractor plus weather and other delays deferred the open- ing of 18 holes by at least one year. Mayor Garrison indicated that the survey and analysis portion of the comprehensive plan, part of which he prepared, has alluded to the financial plight of the golf course in that the problem can no longer be swept under the rug. Mayor Garrison suggested that the staff memo be reviewed by discussing each of the items of concern mentioned in the memo. Bassett was asked what the City could do to improve the lack of topsoil at the course. He responded that a good maintenance program is the most realistic solution in that it would not be financially feasible at this time to purchase the number of cubic yards of topsoil needed to correct the effects of the erosion during construction. The golf course has been fortunate to be able to build up its maintenance equipment to the point where we can efficiently aerate, over- seed and fertilize tees, greens and fairways. Special Council Meeting March 20, 1980 Page - 2 Mayor Garrison asked what the addition of a clubhouse would do for the golf course. Bassett stated that it would allow the golf course per- sonnel to "program" the course. To date, there is an inability to attract leagues, tournaments and special outings to the course due to the lack of a facility. The 1980 State Women's Amateur Open was scheduled to be played at Lebanon Hills but was cancelled due to the lack of a clubhouse. Rosland indicated that the clubhouse is a focal point for a golf operation and that the whole golf experience centers around the facility. The clubhouse will also provide new revenue sources not only from increased greens fees but from expanded pro shop sales and concessions. Mayor Garrison indicated that no additional amplification was needed concerning construction of the course. Maintenance equipment was previously discussed and the Mayor indicated that it would be counter-productive to cut back on maintenance equipment to save a few dollars. Mayor Garrison felt that the clubhouse is the greatest disappointment since the initiation of a golf course and it is the issue upon which the City must make a decision. He stated that a couple of basic questions must be answered. In 1973, the voters approved an issue with the understanding that the golf course would be self-sufficient and the Council must now de- cide whether it wishes to change its position and subsidize the golf course as it does the park system, the ice arena, the outdoor pool, etc., and, further, if it is to be subsidized, to what degree. Councilmember Holton stated that that subject had been previously addressed and the Council's philosophy is that it must be subsidized at this point similar to other com- ponents of the park system. Mayor Garrison reviewed the options that the staff memo proposed with respect to the clubhouse facility. Secure a private developer - To date this has been an un- successful proposal and with mortgage money as it is, it seems to be an unfeasible alternative at this time. Sell the golf course - The Mayor stated that no one wants to exercise that option but it must be considered as an alterna- tive. Councilmember Savanick stated that she would like to see the golf course sold and has maintained that position for some time. Continue to operate as we have previously - It was generally agreed by the Council that this would be a non-feasible ap- proach to follow. Construct our own facility ~ Bassett stated that to construct a basic facility of 1,400 to 1,500 square feet, it would cost approximately $100,000. Special Council Meeting March 20, 1980 Page - 3 Mayor Garrison stated that in addition to the four options above he had three additional options. 1. To sell one 9 of the course to repay the debt the course has incurred to date. Integrate development into the existing course. Mr. Garrison reviewed a plan whereby potentially 120 units of higher density housing would be constructed on var- ious locations on the course and the developer would pay the City $2,500 for each unit, the money to be used to build a clubhouse/restaurant that the developer would own and operate. 3. Move the existing Thompson sales building to the course and remodel it for use as a clubhouse facility. Mayor Garrison asked for some additional detail on the proposed costs of constructing our own facility. John Gretz explained that the $100,000 is represented by 1,500 square feet at $42.15 per square foot according to figures available in the Means Construction Data and the remaining $20,000 is for water, sewer, site improvements and parking lot. The staff was directed to return to the Council on April 24th with information on the following: 1. Look for funding for our own clubhouse building. 2. Project the feasibility of moving the Orrin Thompson building to the golf course site and remodeling it for use. 3. Explore the feasibility of condominium development at the golf course. 4. Sell the golf course - what are the fiscal ramifications and how do we physically accomplish the sale. MRB/ba