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HomeMy WebLinkAbout1984 03-27 CC ADJ MINBook 64 Page 106 MINUTES OF THE ADJOURNED MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA MARCH 27, 1984 The adjourned meeting of the City Council of the City of National City was called to order at 4:00 p.m. by Mayor Morgan. ROLL CALL Council members present: Dalla, Van Deventer, Waters, Morgan. Absent: Camacho. Administrative officials present: Bolint, Campbell, McCabe, McLean, Post. Mayor Morgan reported the next scheduled Redevelopment meeting is on April 10, saying they will be talking about bonds at that time, and inquired how it would be handled. It was pointed out that April 10 is election day. City Attorney McLean said the meeting would be April 17. Councilman Waters said the April 17 Council meeting is a regularly scheduled 4:00 p.m. meeting, and since that is the day the newly elected officials will be sworn in, he would like to have the meeting held at 7:00 p.m. Discussion. City Attorney McLean said he would check the Brown Act and determine the best way to handle this. City Attorney McLean said he would go through the Golf Course Lease, starting with Section I and explain it as he goes along: Section 1, PROPERTY LEASED - we do not have a legal description prepared yet; the engineering office will do that; basically it is what is known as the Las Palmas Golf Course with the possibility of expanding slightly on one side onto some private property. Section 2, USE OF PREMISES - specifies the tenant is to operate a golf course and related facilities, driving range, club house and restaurant. Discussion. Mr. McLean continued, Section 3, TERM - the term is a series of 5-year options after an initial 5-year term, with renewal notice at 6 months, and if they're not in default, the right to continue on in 5-year increments. Discussion. City Attorney McLean said the lease requires that we give them notice on any defect in their performance of the lease; they have an opportunity to cure their defective performance; if they don't, the City has the option of terminating the lease, or leaving the lease in effect, collecting the rent and suing them; the final interpreter of any lease ultimately would be the court. Discussion. Mr. McLean continued, Section 4.1, Furnishing Statement of Gross Income - The City will get their certified statement of what they've earned; if we desire we can audit; if we find a variance of more than 5% in the rent that would have been due, they pay for the audit; otherwise, the City pays. Councilman Van Deventer spoke of sales tax, saying normally when food is eaten on the premises, sales tax is charged; however, this is not mentioned in the lease. City Attorney McLean said it is not included in gross sales for the rent purposes. Discussion. City Attorney McLean continued, Section 5, CAPITAL IMPROVEMENTS - the tenant is obligated to make tenant improvements of $200,000 and we spell out in generalities what those improvements will be; we will have that in detail when they submit their construction plans; we reimburse according to the schedule set forth. Discussion. 3/28/84 Book 64 Page 107 Mr. McLean continued, Section 6, TAXES - the tenant pays all the taxes, personal and real; 6.2, Possessory Interest Tax - since this is publicly owned property, there will be no property tax, but there will be possessory interest tax; the tenant pays the utilities and keeps the facilities in repair. 8.1(B) the landlord agrees to assist tenant with the silt removal, not to exceed the equivalent in labor and materials of 100 man days of Public Works crew effort, with a value of approximately $8,000 to $16,000 annually. Discussion. Councilman Waters said the lease reads, "Landlord agrees to assist the tenant with silt removal after each rain..." Discussion. Councilman Van Deventer said he doesn't see how it is possible to go out there after every rain. Discussion. City Attorney McLean said the City is only obligated to 100 man days. Further discussion. Mr. McLean said he would remove the words "after each rain". Discussion. City Attorney McLean continued, Section 9, MAINTENANCE - Landlord and tenant may form a Monitoring Board, wita each having a representative; a third representative will represent the public; the question of whether or not the golf course is kept up to the players' satisfaction will be resolved and the tenant is obligated to do what the Monitoring Board says to do in the way of maintenance. Section 10, CONTROLLED PRICES - since this is public property, the City will control the prices; fees will be competitive with other public golf courses. Section 11, DUTY TO RESTORE - if there is a fire, tenant will have to replace and rebuild. Section 13 deals with Default. Section 13.1(B) at some point in the future, the tenant can assign the lease to a smaller operator if he has the ability to perform; tenant is required to ask for the City's consent to assign the contract; the City must give a valid reason if they don't agree to the assignment. Discussion. Mr. McLean continued, Section 14 deals with insurance. Section 16, NAME CHANGE agrees to call the golf course National City Municipal Golf Course. Section 17 calls for free golf lessons for 5 years. Section 19.3 requires tenant to conform to published hours. Discussion. Mr. McLean continued, Section 19.7 gives the City the right to inspect the leased premises; Section 19.8 calls for maintenance to be in a first class fashion. Discussion re water rights. City Attorney McLean read Section 23, RESERVATION OF RIGHT OF RE-ENTRY, calling for the landlord's right to re-enter upon the real property for the purpose of constructing and operating thereon a restaurant facility. Further discussion. JOE SHANNON, American Golf Corp., was present and answered Council's questions. Discussion re temporary structure (no trailer) on the golf course. Moved by Morgan, seconded by Van Deventer, the lease be approved and staff prepare the papers. Discussion. Carried by unanimous vote. Absent: Camacho. ** See Page 108. ADJOURNMENT Moved by Waters, seconded by Van Deventer, the meeting be adjourned to 4:00 p.m., April 3, 1984. Carried by unanimous vote. The meeting closed at 4:42 p.m. 3/28/84 Book 64 Page 108 CITY C The foregoing minutes were approved at the regular meeting of the City Council on April 3, 1984. / ** Corrections ✓ No Corrections MAYOR CITY OF NATIONAL CITY, CALIFORNIA 3/28/84 Discussion re the $120,000 property purchased by the City for a clubhouse. City Attorney McLean said these folks want to get in, close the golf course, get it graded and planted; that is the pressure on us to reach an agreement in principle on a lease; once we have reached that agreement,and while the earthwork is going on, and the planting and the irrigation and the fencing, they will then specifically address the question of a clubhouse; when they make that decision, they will come back and say there is what we propose to dot; then you can say yes or no.