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GAC Minutes 1995 08/02Attending: Ted Whiteman Jeff Goodman Rick VanNoy Judy Barkley Gary Shimun GOLF COURSE ADVISORY COMMITTEE MINUTES WED. Aug. 2. 1995 Carl Hoss Charles Denham Mary Clemmer Alan Atwood Jim Henderson Roll Call and Call to order: Phil Gilman was absent while all other members were present. Minutes: Jeff Goodman moved that the minutes of the meeting on July 5 be approved as presented. Rick VanNoy second. Motion carried. Chairman Whiteman opened the meeting by stating that he has heard several comments about the meeting date being too early in the month. After discussion the committee agreed that the meeting date should be the second Wednesday of the month. Rick VanNoy moved that the meeting date be changed to the second Wednesday of each month. The vote was unanimous. Old Business: 1) Cost Estimate / Funding Options New Irrigation Kuhn Associates has estimated the cost of construction for the new irrigation system to be $ 650k. Gary Shimun and Jim Henderson attended the meeting to answer questions about financing options. Mr. Henderson produced a printout showing advantages and disadvantages of 2 available options.(attached) After discussion Mr. Whiteman asked Jim if he could investigate the 2 possibilities and report back to the committee. Mr. Henderson agreed to report back at the next meeting. 2) City Street Cart Travel Mr. Whiteman reported that he had met with Ted Burton to address this topic. Mr. Burton agreed to author an ordinance similar to those for snowmobiles and bicycles. This is not a high priority item so Mr. Burton will work on it as time permits. 3) New Nine Update Mr. Denham reported that the city council had some questions about the warranty. The questions were centered around whether S.M.R. would extend the warranty period until the it is determined that the drainage on the seventh fairway is effective. The committee suggested that we get Toothman Orton involved for technical support and to assure that the drainage system is operating as was designed. It apparently is not flowing presently. Other Business: Mr. Whiteman asked for volunteers to form a subcommittee to approach John Wyman on the status of his cart storage facility. The contract reads that he will pay the city a percentage of the money he makes from rentals. If he does'nt rent any spaces he won't owe any money. With no further business the meeting adjourned at 8:50 pm. Reectfull� ^ submitted, mChairman ed White an, Lease Purchase Option Financing Options Automatic Sprinkler System Project Cost $650,000 Less Down Payment 10% 65.000 Amount Financed $585,000 Annual Debt Service Costs @ 5% Interest 5 year payoff $132,500 7 year payoff $100,000 Advantages: -No election required. -Can be approved quickly if no judicial confirmation required Disadvantages -Short payoff period means higher debt service payments -Bank may require a judicial confirmation process. -Must have cash to make down payment (engineering costs may be applied to this) Revenue Bond Option Project costs Issuance Costs Reserve Requirement Bond Issue Needed S650,000 25,000 75,000 $750,000 Annual Debt Service Costs 10 year payoff S97,000 15 year payoff S72,000 Advanages -Longer payoff period means lower annual debt service costs -Voter approved more politically palatable -All issuance costs included in the bond issue Disadvantage -Limited dates available for election November 7, 1995 and February 6, 1996 are the next two -Bond market drives terms such as rates and payoff periods more than issuers desires -Must provide a 10% reserve in the bond amount. -May not pass (2/3 supermajority needed)