HomeMy Public PortalAboutGAC 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)