HomeMy Public PortalAboutPKT-CC-2020-05-08DocuSign Envelope ID: 3DE65D80-7D04-46FC-B63D-15BFB939A1BF
217 East Center Street
Moab, Utah 84532-2534
Main Number (435) 259-5121
Fax Number (435) 259-4135
CITY OF
M
Memorandum
To: Councilmembers and Media
From: Mayor Emily S. Niehaus
Date: 5/6/2020
Re: Special City Council Meeting
AB
UTAH
Mayor: Emily S. Niehaus
Council Tawny Knuteson-Boyd
Rani Derasary
Mike Duncan
Karen Guzman -
Newton
Kalen Jones
The City of Moab will hold a Special Moab City Council Meeting on Friday, May 8, 2020 at
9:00 a.m. The purpose of this meeting will be:
1. Proposed Resolution 29-2020: A Resolution Continuing the Declaration of Local
Emergency Due to COVID-19 Novel Coronavirus
Briefing and possible action
2. Proposed Resolution 28-2020: A Resolution Approving the Golf Course Lease
Agreement
Briefing and possible action
3. Budget Update
Per Executive Order 2020-5 issued by Governor Gary R. Herbert on March 18, 2020, this
meeting will be conducted electronically and may be viewed on the City's YouTube
channel: https://www.youtube.com/channel/UC100zoZgdmz4y1FoI0l7CJA. An anchor
location will not be provided.
Docu$igned by:
Mayor Emily S. Niehaus
In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should
notify the Recorder's office at 217 East Center Street, Moab, Utah 84532; or phone (435) 259-5121 at least three (3) working days
prior to the meeting.
1
CITY OF MOAB RESOLUTION NO. 29-2020
A RESOLUTION CONTINUING THE DECLARATION OF LOCAL EMERGENCY DUE TO
COVID-19 NOVEL CORONAVIRUS
WHEREAS, Coronavirus disease 2019 (COVID-19) is a respiratory illness that can spread from person
to person. The virus that causes COVID-19 is a novel coronavirus that was first identified during an
investigation into an outbreak in Wuhan, China;
WHEREAS, the World Health Organization has officially designated the COVID-19 outbreak as a
global pandemic;
WHEREAS, U.S. Health and Human Services Secretary Alex M. Azar II declared a public health
emergency (PHE) for the United States to aid the nation’s health care community in responding to
COVID-19;
WHEREAS, the U. S. Centers for Disease Control and Prevention (CDC) states that more cases of
COVID-19 are likely to be identified in the United States in the coming days, including more instances
of community spread and that it is likely that at some point, widespread transmission of COVID-19 in
the United States will occur. Widespread transmission of COVID-19 would translate into large numbers
of people needing medical care at the same time;
WHEREAS, Gov. Gary R. Herbert issued an executive order, which remains in effect, declaring a state
of emergency in Utah in response to the evolving outbreak of COVID-19;
WHEREAS, the Utah Department of Health has activated its incident command structure in response to
the evolving global outbreak of COVID-19 and is working with local health departments, healthcare
providers, and other public health partners throughout the state to monitor illness associated with this
new coronavirus and to prevent further spread;
WHEREAS, the State of Utah has implemented the Utah COVID-19 Community Task Force to
coordinate the response to the incident throughout the entire state and among all levels of government.
The Utah Coronavirus Task Force is actively monitoring the spread of COVID-19 on a state, national,
and global level;
WHEREAS, the Utah Department of Public Safety, Division of Emergency Management, State
Emergency Operations Center, is coordinating resources across state government to support the Utah
Department of Health and local officials in alleviating the impacts to people, property, and
infrastructure, and is assessing the magnitude and long-term effects of the incident with the Utah
Department of Health;
WHEREAS, the City of Moab has been working with, meeting with and coordinating with state, county
and local governmental entities, emergency and first responders, health providers, business owners, the
school district and many others to prepare for and manage the COVID-19 pandemic;
2
WHEREAS, the circumstances of this outbreak may exceed the capacity of the services,
personnel, equipment, supplies and facilities of the City of Moab and require the combined forces of a
mutual aid region or regions to combat;
WHEREAS, Utah Code Annotated (UCA), Section 53-2a-208, Emergency Management Act, Local
emergency – Declarations provides that:
(1)(a) A local emergency may be declared by proclamation of the chief executive officer of a
municipality or county. . . .;
(2) A declaration of a local emergency: (a) constitutes an official recognition that a disaster situation
exists within the affected municipality or county; (b) provides a legal basis for requesting and obtaining
mutual aid or disaster assistance from other political subdivisions or from the state or federal
government; (c) activates the response and recovery aspects of any and all applicable local disaster
emergency plans; and (d) authorizes the furnishing of aid and assistance in relation to the proclamation;
WHEREAS, “State of emergency” means a condition in any part of this state that requires state
government emergency assistance to supplement the local efforts of the affected political subdivision to
save lives and to protect property, public health, welfare, or safety in the event of a disaster, or to avoid
or reduce the threat of a disaster;
WHEREAS, the circumstances described in this proclamation do create a local emergency as provided
in UCA Section 53-2a-208, Emergency Management Act;
WHEREAS, On March 12, 2020, pursuant to UCA Section 53-2a-208, Emergency Management Act,
City Manager Joel Linares declared a local state of emergency for the City of Moab;
WHEREAS, On April 10, 2020, the City of Moab City Council passed Resolution 21-2020 extending
the March 12, 2020 declaration of local state of emergency;
WHEREAS, Utah Code Annotated 53-2a-208(1)(b) “Local emergency – Declarations” states as
follows: “A local emergency shall not be continued or renewed for a period in excess of 30 days except
by or with the consent of the governing body of the municipality or county.”
NOW, THEREFORE, the City of Moab City Council hereby extends the April 10, 2020 declaration of
local emergency in the City of Moab due to the above circumstances and to ensure that, among other
things, the City of Moab has access to any available resources to mitigate, manage, and respond to
COVID-19 under the state Emergency Management Act or any other available law, statute, regulation or
resource. This Resolution continuing the local state of emergency will remain in effect for 30 days
unless otherwise ordered or resolved and may be continued pursuant to Utah Code Annotated 53-2a-
208(1)(b) by majority vote of the City Council.
PASSED AND APPROVED by a majority of the City of Moab City Council. This Resolution shall
take effect immediately upon passage.
3
SIGNED:
Emily S. Niehaus, Mayor Date
ATTEST:
Sommar Johnson, Recorder
1
CITY OF MOAB RESOLUTION NO. 29-2020
A RESOLUTION CONTINUING THE DECLARATION OF LOCAL EMERGENCY DUE TO
COVID-19 NOVEL CORONAVIRUS
WHEREAS, Coronavirus disease 2019 (COVID-19) is a respiratory illness that can spread from person
to person. The virus that causes COVID-19 is a novel coronavirus that was first identified during an
investigation into an outbreak in Wuhan, China;
WHEREAS, the World Health Organization has officially designated the COVID-19 outbreak as a
global pandemic;
WHEREAS, U.S. Health and Human Services Secretary Alex M. Azar II declared a public health
emergency (PHE) for the United States to aid the nation’s health care community in responding to
COVID-19;
WHEREAS, the U. S. Centers for Disease Control and Prevention (CDC) states that more cases of
COVID-19 are likely to be identified in the United States in the coming days, including more instances
of community spread and that it is likely that at some point, widespread transmission of COVID-19 in
the United States will occur. Widespread transmission of COVID-19 would translate into large numbers
of people needing medical care at the same time;
WHEREAS, Gov. Gary R. Herbert issued an executive order, which remains in effect, declaring a state
of emergency in Utah in response to the evolving outbreak of COVID-19;
WHEREAS, the Utah Department of Health has activated its incident command structure in response to
the evolving global outbreak of COVID-19 and is working with local health departments, healthcare
providers, and other public health partners throughout the state to monitor illness associated with this
new coronavirus and to prevent further spread;
WHEREAS, the State of Utah has implemented the Utah COVID-19 Community Task Force to
coordinate the response to the incident throughout the entire state and among all levels of government.
The Utah Coronavirus Task Force is actively monitoring the spread of COVID-19 on a state, national,
and global level;
WHEREAS, the Utah Department of Public Safety, Division of Emergency Management, State
Emergency Operations Center, is coordinating resources across state government to support the Utah
Department of Health and local officials in alleviating the impacts to people, property, and
infrastructure, and is assessing the magnitude and long-term effects of the incident with the Utah
Department of Health;
WHEREAS, the City of Moab has been working with, meeting with and coordinating with state, county
and local governmental entities, emergency and first responders, health providers, business owners, the
school district and many others to prepare for and manage the COVID-19 pandemic;
2
WHEREAS, the circumstances of this outbreak may exceed the capacity of the services,
personnel, equipment, supplies and facilities of the City of Moab and require the combined forces of a
mutual aid region or regions to combat;
WHEREAS, Utah Code Annotated (UCA), Section 53-2a-208, Emergency Management Act, Local
emergency – Declarations provides that:
(1)(a) A local emergency may be declared by proclamation of the chief executive officer of a
municipality or county. . . .;
(2) A declaration of a local emergency: (a) constitutes an official recognition that a disaster situation
exists within the affected municipality or county; (b) provides a legal basis for requesting and obtaining
mutual aid or disaster assistance from other political subdivisions or from the state or federal
government; (c) activates the response and recovery aspects of any and all applicable local disaster
emergency plans; and (d) authorizes the furnishing of aid and assistance in relation to the proclamation;
WHEREAS, “State of emergency” means a condition in any part of this state that requires state
government emergency assistance to supplement the local efforts of the affected political subdivision to
save lives and to protect property, public health, welfare, or safety in the event of a disaster, or to avoid
or reduce the threat of a disaster;
WHEREAS, the circumstances described in this proclamation do create a local emergency as provided
in UCA Section 53-2a-208, Emergency Management Act;
WHEREAS, On March 12, 2020, pursuant to UCA Section 53-2a-208, Emergency Management Act,
City Manager Joel Linares declared a local state of emergency for the City of Moab;
WHEREAS, On April 10, 2020, the City of Moab City Council passed Resolution 21-2020 extending
the March 12, 2020 declaration of local state of emergency;
WHEREAS, Utah Code Annotated 53-2a-208(1)(b) “Local emergency – Declarations” states as
follows: “A local emergency shall not be continued or renewed for a period in excess of 30 days except
by or with the consent of the governing body of the municipality or county.”
NOW, THEREFORE, the City of Moab City Council hereby extends the March April 1210, 2020
declaration of local emergency in the City of Moab due to the above circumstances and to ensure that,
among other things, the City of Moab has access to any available resources to mitigate, manage, and
respond to COVID-19 under the state Emergency Management Act or any other available law, statute,
regulation or resource. This Resolution continuing the local state of emergency will remain in effect
until for 30 days unless otherwise ordered or resolved and may be continued pursuant to Utah Code
Annotated 53-2a-208(1)(b) by majority vote of the City Council.
PASSED AND APPROVED by a majority of the City of Moab City Council. This Resolution shall
take effect immediately upon passage.
3
SIGNED:
Emily S. Niehaus, Mayor Date
ATTEST:
Sommar Johnson, Recorder
CITY OF MOAB RESOLUTION NO. 26-2020
A RESOLUTION APPROVING THE GOLF COURSE LEASE AGREEMENT
WHEREAS, the Moab Country Club was established through its documents of
incorporation in 1958; and
WHEREAS, the City of Moab and the Moab Country Club entered into an agreement on
the 5th day of May 1959 which allowed for the express purpose of operating and
maintaining a golf course. The Moab Country Club was also authorized to have the right,
in the connection with the operation of a golf course, to maintain club house facilities,
swimming pools, tennis courts and related activities customarily enjoyed by a nonprofit
corporation for the entertainment and general welfare of its members and guests; and
WHEREAS, since that time the City and the Country Club have entered into many new
agreements renewing the lease agreement essentially under the original terms of the
agreement from 1959; and
WHEREAS, the City and the Country Club last entered into an agreement on the 12th
day of April 2005; and
WHEREAS, the City and the Country Club agreed to amend that agreement on the 14th
day of December 2005 which removed paragraphs 10 and 11 of the lease agreement; and
WHEREAS, that lease agreement was for a term of ten years and expired on the 12th day
of April 2015. Since that time, the Country Club has been operating on City property
without an agreement; and
WHEREAS, the City of Moab desires to enter into a lease agreement with the Moab
Country Club for the purpose of operating and maintaining a golf course. The proposed
lease agreement is identical to that have been used in the past with the inclusion off the
amendment of the 20th day of December 2005; and
WHEREAS, the lease agreement is attached to this Resolution has been presented to this
meeting of the Moab City Council; and
THEREFORE, be it resolved that the City of Moab City Council hereby adopts this
Resolution and approves this lease agreement as presented herein and shall be executed
by the appropriate officials.
This Resolution shall take effect on May 8, 2020.
Passed and adopted by action of the Governing Body of the City of Moab in open session
on this 8th day of May 2020.
SIGNED: ATTEST:
_________________________ ________________________
Emily S. Niehaus, Mayor City Recorder
1
Golf Course Lease – Proposed Resolution 26-2020
Summary of Modifications to Lease Agreement
Modifications requested by Councilmembers at the City Council meeting on April 28, 2020:
1. Paragraph 1: Legal description formatting corrected and description corrected with legal
description mapped and included as an attachment (Exhibit A);
2. Paragraph 5: Added provision for Lessee to submit to Lessor by no later than January 31
of each year proposed greens fees for that year for Council review;
3. Paragraph 9: Added 30-day notice provision for termination of lease for City’s use of
watershed;
4. Paragraphs 10 and 11: Reinserted paragraphs ten and eleven from prior 2005 lease with
the clarification that it is 1.5% of any profits by Lessee;
5. Paragraph 12: Clarified the requirement that no later than January 31 of each year, Lessee
shall provide to Lessor copies of its regular financial statements for the prior year;
6. Paragraph 13: Clarified the requirement that no later than January 31 of each year, Lessee
shall provide to Lessor and independent financial review;
7. Paragraph 14: Included requirement that Lessee provide the Annual Operations Report no
later than January 31 of each and that it include a list of chemicals used by Lessee on the
leased property;
8. Paragraph 17: Added clarification that any water provided by Lessor to Lessee will be at
the prevailing commercial rate;
9. Paragraph 22: Added a termination clause which specifies that either party may terminate
the lease, with or without cause (for reasons other than relating to the watershed), with
365 days written notice.
2
10. Comparison of lease to draft sustainability plan (as of most recent revision date) to ensure
no conflicts. No apparent conflicts found.
Other Changes for Clarity
1. Effective date changed to the current date in the introduction and conclusion;
2. Added “the” before “City of Moab” and also before “Moab Country Club” in the
introduction;
3. Nature of legal entity for the City changed from “principal” corporation to “municipal”
corporation in the introduction to reflect the current legal status under the Moab
Municipal Code;
4. Parenthetical corrected from “{” to “(” in paragraph 1(a);
5. Changed “Moab City” to “the City of Moab” in Paragraph 9 to be consistent with the
Moab Municipal Code;
6. Reporting dates consolidated into one date which is now prior to January 31 of each year;
7. Changed references throughout from “the Lessee” and “the Lessor” to “Lessee” and
“Lessor” for consistency;
8. Changed extension date to May 8, 2030 for consistency.
1
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this 8th day of May, 2020, by and between
the CITY OF MOAB, Utah, a municipal Corporation, herein referred to as LESSOR, and the
MOAB COUNTRY CLUB, a non-profit Utah Corporation, herein referred to as LESSEE.
WITNESSETH:
1. That Lessor, for and in consideration of the covenants and agreements hereinafter
contained, leases and lets unto Lessee the premises situated in Grand County, State of Utah, to-
wit:
a. Parcel No. 1: The Southwest Quarter of the Southeast Quarter (SWl/4 SEl/4), Section 15,
Township 26 South, Range 22 East, SLB&M.
b. Parcel No. 2: The Northwest Quarter of the Northeast Quarter (NWl/4 NEl/4), Section
22, Township 26 South, Range 22 East, SLB&M.
c. Parcel No. 3: The West One-half of the Northeast Quarter of the Northeast Quarter (Wl/2
NEl/4 NEl/4), Section 22, Township 26 South, Range 22 East, SLB&M.
d. Parcel No. 4: SE 1/4 of SE 1/4, Section 15, T26S, R22E, SLB & M.,
e. Parcel No. 5: SW 1/4 SW 1/4 Section 14, T26S, R22E, SLB & M.,
f. Parcel No. 6: NW 1/4 NW 1/4 Section 23, T26S, R22E, SLB & M.,
g. Parcel No. 7: The East 1/2 of the NE 1/4 NE 1/4 Section 22, T26S, R22E, SLB & M.,
h. Parcel No. 8: The N 1/2 Nl/2 SW 1/4 NWl/4 Section 23, T26S, R22E, SLB & M.
LESS: The following described real property, to-wit: Sl/2 of Nl/2 of SWl/4 of NWl/4 of NEl/4,
and the S1/2 of SWl/4 of NWl/4 of NEl/4, Section 22, T26S, R22E, SLB&M.
(See Exhibit A which is incorporated by reference into this Lease.)
2. This Lease shall be for a term of ten (10) years from the date of this Agreement.
3. It is understood and agreed that this Lease is granted for the express purpose of operating
and maintaining a golf course; however, it is understood and agreed that Lessee shall have the
right, in connection with the operation of a golf course, to maintain club house facilities,
swimming pools, tennis courts and related activities customarily enjoyed by a non-profit
corporation for the entertainment and general welfare of its members and guests, including the
sale of alcoholic beverages as provided by the laws of the State of Utah.
4. It is expressly understood and agreed that members of the general public, whether
members of the non-profit corporation or not, shall be permitted to play on said golf course
2
under the same conditions and restrictions as if they are dues paying members; however, Lessee
shall have the right to regulate play on said golf course for the purpose of preserving the greens
and grounds and for maintaining orderly and proper use thereof.
5. Lessee shall have the right to assess its users whatever green fees it shall deem
appropriate; however, no later than January 31 of each year, Lessee shall present to Lessor,
through the City Manager and Finance Director, for City Council review the fees proposed to be
charged for that year and Lessor may reduce or increase the said fees in accordance with good
public policy.
6. It is understood and agreed that Lessee is a non-profit corporation and Lessor shall not, at
any time, have the right or option to interfere with the internal affairs of the said corporation.
7. Lessee agrees to maintain the property in good and attractive condition.
8. Lessee may, at Lessee’s sole cost and expense, make such changes, alterations or
improvements as may be necessary to fit said premises and all buildings, fixtures and
improvements of every kind and nature, whenever installed by Lessee, shall, upon termination,
remain the property of Lessor. Lessee may purchase such personal property as it shall see fit, and
upon termination of this Lease, may remove the same.
9. It is understood and agreed that the above-described premises are situated within the area
of the City of Moab watershed and that it may become necessary in the future for the City to
make use of said area for the purpose of developing water or for protecting the area from
contamination. In such event and upon 30-days notice from Lessor to Lessee that such use is
necessary, Lessor shall have the right and option to terminate the Lease or any part that may be
affected thereby, without compensation to Lessee.
10. Lessee shall pay to Lessor a sum equal to 1.5 percent of Lessee’s annual profits from all
annual operating revenue. Said sum shall be paid by Lessee by June 1 of each year, for the
previous one-year period ending January 31. The first payment under this Agreement shall be
made by June 1, 2020.
11. The phrase “annual profits from all annual operating revenue” shall be defined as profits
from all green fees, equipment rental, equipment storage, gross sales from the pro shop and from
the gross sales of any future operations that may be conducted by Lessee under the provisions of
Paragraph 3 above in any given calendar year.
12. No later than January 31 of each year, Lessee shall provide to Lessor, through the City
Manager and Finance Director, copies of Lessee’s regular financial statements for the prior year.
13. Lessee shall provide an independent financial review of the Moab Country Club,
performed by a certified public accountant, to Lessor, each year on or before January 31.
14. Lessee shall present an Annual Operations Report to Lessor on or before January 31 of
each year. Said report shall detail all operations activity of Lessee for the previous calendar year
and shall include a list of chemicals used by Lessee on the leased property.
3
15. It is understood and agreed that Lessor may, at its expense, make such improvements as it
shall deem necessary to repair, preserve, or enlarge said property leased herein, or to make any
other improvements deemed necessary by Lessor. Such repair or improvements so made shall be
at such time and in such manner so as to cause Lessee the least amount of disruption to its
operation of said golf course.
16. It is understood and agreed that Lessor owns and has responsibility for the maintenance
of all water pumps and meters installed and used on the premises as outlined in Paragraph 1.
17. Lessee shall pay Lessor for Lessee’s usage of any City water at the prevailing
commercial rate charged by the City at the time the water is used by Lessee.
18. Lessee hereby agrees to provide a summer youth golf program at its sole expense.
19. Lessee shall assume all risks incidental to or in connection with the business to be
conducted hereunder and shall be solely responsible for all accidents or injuries of any nature to
persons or property caused by its operation at these premises. Lessee agrees to indemnify, defend
and hold harmless Lessor, its authorized agents and representatives, from any and all claims or
liability for damage resulting in the death of any person, or loss or damaged property occasioned
by or in connection with the use of the premises hereby leased. Lessee hereby assumes full
responsibility for the character, acts and conduct of all persons admitted to said premises, or to
any portion of the premises. Lessor assumes no liability or responsibility whatsoever for any
property placed in said premises and Lessor is hereby expressly released and discharged from
any and all liability for any loss, injury or damage to persons or property that may be sustained
by reason of Lessee’s occupancy under this Lease.
20. Lessee shall carry, at its own expense, property damage insurance in the amount of
$1,000,000 and public liability insurance in an amount of $1,000,000 for any one person and
$1,000,000 for any one accident. Lessor is to be made a co-insured with Lessee on this insurance
and said insurance policy is to contain a rider requiring that Lessor be notified thirty (30) days in
advance of any change or termination of said insurance policies.
21. The parties hereto shall have the option to extend this lease for one additional ten (10)
year period under the same terms and conditions. This option may be exercised by written
consent of both parties hereto, prior to May 8, 2030.
22. Either party may terminate this Lease for reasons other than those specified in Paragraph
9 above, with or without cause, by giving the other party 365 days written notice. Written notice
to Lessor shall by provided to the City through the City Manager and Finance Director at 217 E.
Center Street, Moab, UT 84532. Written notice to Lessee shall be provided to Lessee’s
registered agent.
4
IN WITNESS WHEREOF, the Parties hereto have set their hands and seals on this 8th day of
May, 2020.
LESSOR: CITY OF MOAB, UTAH
ATTEST:
__________________________ By:__________________________
Sommar Johnson, City Recorder Emily Niehaus, Mayor
LESSOR: MOAB COUNTRY CLUB
By:__________________________
Club President
State of Utah )
§
County of Grand )
On the ____ day of ____________, _______, personally appeared before me
_____________________, who duly acknowledged to me that they executed the same.
__________________________
Notary Public
My Commission Expires: Residing in Grand County, Utah
0 600 1,200300Feet1 inch = 600 feet
Old City Park
City Golf Course Area Par cels& Golf Cour se Lease Ü
Spanish Trail Dr.
M
urphy Lane
Cemetery
Golf Course
Legend
City Prop erties
200 5-201 5 Go lf Course Lease
P a r c e l 4SE1/4 o f S E 1 /4 o f S e c t i o n 1 5
P a r c e l 1SW1/4 o f S E 1 /4 o f S e c t i o n 1 5 P ar c e l 5SW1/4 o f S W 1 /4 of S e c t i o n 1 4
P ar c e l 6NW1/4 o f N W 1 /4 of S e c t i o n 2 3
Parcel 8N 1/2 of N 1 /2 ofSW1/4 of NW 1/4 of Section 2 3
P a r c e l 2NW1/4 o f N E 1 /4 o f S e c t i o n 2 2 P a r c e l 3W 1 /2 o f N E 1 /4 o f N E 1 /4of S e c t i o n 2 2Less S 1 /2 o fN 1 /2 o f SW 1/4of NW 1/4 of NE 1/4and S 1/2 of SW 1 /4of NW 1/4 of NE 1/4 of Sectio n 22
MaintenanceSheds
ClubHouse
P a r c e l 7E 1 /2 o f N E 1 /4 of N E 1 /4of S e c t i o n 2 2
1
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this 28th day of AprilMay, 2020, by and
between the CITY OF MOAB, Utah, a principal municipal Corporation, herein referred to as
LESSOR, and the MOAB COUNTRY CLUB, a non-profit Utah Corporation, herein referred to
as LESSEE.
WITNESSETH:
1. That Lessor, for and in consideration of the covenants and agreements hereinafter
contained, leases and lets unto Lessee the premises situated in Grand County, State of Utah, to-
wit:
a. Parcel No. 1: The Southwest Quarter of the Southeast Quarter {(SWl/4 SEl/4), Section
15, Township 26 South, Range 22 East, SLB&M.
b. Parcel No. 2: The Northwest Quarter of the Northeast Quarter (NWl/4 NEl/4), Section
22, Township 26 South, Range 22 East, SLB&M.
c. Parcel No. 3: The West One-half of the Northeast Quarter of the Northeast Quarter (Wl/2
NEl/4 NEl/4), Section 22, Township 26 South, Range 22 East, SLB&M.
d. Parcel No. 4: SE 1/4 of SE 1/4, Section 15, T26S, R22E, SLB & M.,
e. Parcel No. 5: SW 1/4 SW 1/4 Section 14, T26S, R22E, SLB & M.,
f. Parcel No. 6: NW 1/4 NW 1/4 Section 23, T26S, R22E, SLB & M.,
g. Parcel No. 7: The East 1/2 of the NE 1/4 NE 1/4 Section 22, T26S, R22E, SLB & M.,
h. Parcel No. 8: The N 1/2 Nl/2 SW 1/4 NWl/4 Section 23, T26S, R22E, SLB & M.
SE 1/4, Section 15, T26S, R22E, SLB & M.,
SW 1/4 SW 1/4 Section 14, T26S, R22E, SLB & M.,
NW 1/4 NW 1/4 Section 23, T26S, R22E, SLB & M.,
The North 500 feet of the E 1/2 NE 1/4 NE 1/4 Section 22, T26S,R22E, SLB & M., and the N
1/2 Nl/2 SW 1/4 NWl/4 Section 23, T26S, R22E, SLB & M. Containing 137.6 acres, more or
less.
LESS: The following described real property, to-wit: Sl/2 of Nl/2 of SWl/4 of NWl/4 of NEl/4,
and the S1/2 of SWl/4 of NWl/4 of NEl/4, Section 22, T26S, R22E, SLB&M.
(See Exhibit A which is incorporated by reference into this Lease.)
2
2. This Lease shall be for a term of ten (10) years from the date of this Agreement.
3. It is understood and agreed that this Lease is granted for the express purpose of operating
and maintaining a golf course; however, it is understood and agreed that Lessee shall have the
right, in connection with the operation of a golf course, to maintain club house facilities,
swimming pools, tennis courts and related activities customarily enjoyed by a non-profit
corporation for the entertainment and general welfare of its members and guests, including the
sale of alcoholic beverages as provided by the laws of the State of Utah.
4. It is expressly understood and agreed that members of the general public, whether
members of the non-profit corporation or not, shall be permitted to play on said golf course
under the same conditions and restrictions as if they are dues paying members; however, Lessee
shall have the right to regulate play on said golf course for the purpose of preserving the greens
and grounds and for maintaining orderly and proper use thereof.
5. Lessee shall have the right to assess its users whatever green fees it shall deem
appropriate; however, no later than January 31 of each year, Lessee shall present to Lessor,
through the City Manager and Finance Director, shall have the right offor City Council review of
the fees proposed to be charged for that year charged and Lessor may reduce or increase the said
fees in accordance with good public policy.
6. It is understood and agreed that Lessee is a non-profit corporation and Lessor shall not, at
any time, have the right or option to interfere with the internal affairs of the said corporation.
7. Lessee agrees to maintain the property in good and attractive condition.
8. Lessee may, at Lessee’s sole cost and expense, make such changes, alterations or
improvements as may be necessary to fit said premises and all buildings, fixtures and
improvements of every kind and nature, whenever installed by Lessee, shall, upon termination,
remain the property of Lessor. Lessee may purchase such personal property as it shall see fit, and
upon termination of this Lease, may remove the same.
9. It is understood and agreed that the above-described premises are situated within the area
of the Moab City of Moab watershed and that it may become necessary in the future for the City
to make use of said area for the purpose of developing water or for protecting the area from
contamination. In such event and upon 30-days notice from Lessor to Lessee that such use is
necessary, the Lessor shall have the right and option to terminate the Lease or any part that may
be affected thereby, without compensation to Lessee.
10. Lessee shall pay to Lessor a sum equal to 1.5 percent of Lessee’s annual profits from all
annual operating revenue. Said sum shall be paid by Lessee by June 1 of each year, for the
previous one-year period ending January 31. The first payment under this Agreement shall be
made by June 1, 2020.
11. The phrase “annual profits from all annual operating revenue” shall be defined as profits
from all green fees, equipment rental, equipment storage, gross sales from the pro shop and from
3
the gross sales of any future operations that may be conducted by Lessee under the provisions of
Paragraph 3 above in any given calendar year.
12. No later than January 31 of each year, The Lessee shall make availableprovide to the
Lessor, through the City Manager and Finance Director, copies of the Lessee’s regular financial
statements for the prior year.
131. Lessee shall provide An an independent financial review of the Golf Moab Country Club,
performed by a certified public accountant, shall be submitted annually by the Lessee to the
Lessor, each year on or before June 1January 31.
142. Lessee shall present an Annual Operations Report to the Lessor on or before January 310
of each year. Said report shall detail all operations activity of Lessee for the previous calendar
year and shall include a list of chemicals used by Lessee on the leased property.
153. It is understood and agreed that the Lessor may, at its expense, make such improvements
as it shall deem necessary to repair, preserve, or enlarge said property leased herein, or to make
any other improvements deemed necessary by Lessor. Such repair or improvements so made
shall be at such time and in such manner so as to cause the Lessee the least amount of disruption
to its operation of said golf course.
164. It is understood and agreed that Lessor owns and has responsibility for the maintenance
of all water pumps and meters installed and used on the premises as outlined in Paragraph 1.
175. The Lessee shall pay to Lessor for Lessee’s water usage of any City water at a the
prevailing commercial rate mutually agreed upon by the two partiescharged by the City at the
time the water is used by Lessee.
186. Lessee hereby agrees to provide a summer youth golf program at its sole expense.
197. The Lessee shall assume all risks incidental to or in connection with the business to be
conducted hereunder and shall be solely responsible for all accidents or injuries of any nature to
persons or property caused by its operation at these premises. Lessee agrees to indemnify, defend
and hold harmless the Lessor, its authorized agents and representatives, from any and all claims
or liability for damage resulting in the death of any person, or loss or damaged property
occasioned by or in connection with the use of the premises hereby leased. The Lessee hereby
assumes full responsibility for the character, acts and conduct of all persons admitted to said
premises, or to any portion of the premises. Lessor assumes no liability or responsibility
whatsoever for any property placed in said premises and Lessor is hereby expressly released and
discharged from any and all liability for any loss, injury or damage to persons or property that
may be sustained by reason of Lessee’s occupancy under this Lease.
2018. Lessee shall carry, at its own expense, property damage insurance in the amount of
$1,000,000 and public liability insurance in an amount of $1,000,000 for any one person and
$1,000,000 for any one accident.
4
The Lessor is to be made a co-insured with the Lessee on this insurance and said insurance
policy is to contain a rider requiring that the Lessor be notified thirty (30) days in advance of any
change or termination of said insurance policies.
2119. The parties hereto shall have the option to extend this lease for one additional ten (10)
year period under the same terms and conditions. This option may be exercised by written
consent of both parties hereto, prior to April May 28, 2030.
22. Either party may terminate this Lease for reasons other than those specified in Paragraph
9 above, with or without cause, by giving the other party 365 days written notice. Written notice
to Lessor shall by provided to the City through the City Manager and Finance Director at 217 E.
Center Street, Moab, UT 84532. Written notice to Lessee shall be provided to Lessee’s
registered agent.
IN WITNESS WHEREOF, the Parties hereto have set their hands and seals on this 28th day of
AprilMay, 2020.
LESSOR: CITY OF MOAB, UTAH
ATTEST:
__________________________ By:__________________________
Sommar Johnson, City Recorder Emily Niehaus, Mayor
LESSOR: MOAB COUNTRY CLUB
By:__________________________
Club President
State of Utah )
§
5
County of Grand )
On the ____ day of ____________, _______, personally appeared before me
_____________________, who duly acknowledged to me that they executed the same.
__________________________
Notary Public
My Commission Expires: Residing in Grand County, Utah
0 600 1,200300Feet1 inch = 600 feet
Old City Park
City Golf Course Area Par cels& Golf Cour se Lease Ü
Spanish Trail Dr.
M
urphy Lane
Cemetery
Golf Course
Legend
City Prop erties
200 5-201 5 Go lf Course Lease
P a r c e l 4SE1/4 o f S E 1 /4 o f S e c t i o n 1 5
P a r c e l 1SW1/4 o f S E 1 /4 o f S e c t i o n 1 5 P ar c e l 5SW1/4 o f S W 1 /4 of S e c t i o n 1 4
P ar c e l 6NW1/4 o f N W 1 /4 of S e c t i o n 2 3
Parcel 8N 1/2 of N 1 /2 ofSW1/4 of NW 1/4 of Section 2 3
P a r c e l 2NW1/4 o f N E 1 /4 o f S e c t i o n 2 2 P a r c e l 3W 1 /2 o f N E 1 /4 o f N E 1 /4of S e c t i o n 2 2Less S 1 /2 o fN 1 /2 o f SW 1/4of NW 1/4 of NE 1/4and S 1/2 of SW 1 /4of NW 1/4 of NE 1/4 of Sectio n 22
MaintenanceSheds
ClubHouse
P a r c e l 7E 1 /2 o f N E 1 /4 of N E 1 /4of S e c t i o n 2 2
Jan - Dec 16 Jan - Dec 17 Jan - Dec 18 Jan - Dec 19 TOTAL
Income
Green fees 277,294.40 278,073.14 248,449.32 259,742.80 1,063,559.66
Annual green fees 60,632.32 52,527.28 59,234.14 58,101.94 230,495.68
Daily Use Fee 27,182.85 33,432.91 53,643.48 64,595.35 178,854.59
Membership dues 1,525.00 2,000.00 2,225.00 1,450.00 7,200.00
Sponsor fees 11,600.00 10,450.00 10,202.00 15,955.00 48,207.00
Trail fees 2,621.40 2,165.47 2,353.68 2,675.84 9,816.39
Food sales 63,244.33 60,652.43 61,072.60 66,945.93 251,915.29
Beer sales 44,748.87 40,689.26 41,300.80 38,971.36 165,710.29
Pro shop 217,272.41 218,872.92 215,807.72 235,123.23 887,076.28
Cart storage 17,900.00 16,500.00 18,900.00 17,155.00 70,455.00
Tournament entry fees 147,284.82 155,822.33 152,999.76 156,984.77 613,091.68
Tournament - Pro shop -113,573.00 -122,772.17 -112,897.00 -120,606.00 -469,848.17
Cart rental 161,925.01 159,179.25 138,159.12 136,712.04 595,975.42
Other rentals 14,757.68 14,552.21 12,853.97 13,488.97 55,652.83
Other income 81.39 0.00 3,000.00 0.00 3,081.39
Grants 4,000.00 4,000.00 4,000.00 4,000.00 16,000.00
Interest income 60.54 74.41 61.59 58.37 254.91
Discounts 529.97 759.56 619.31 706.90 2,615.74
Total Income 939,087.99 926,979.00 911,985.49 952,061.50 3,730,113.98
Cost of Goods Sold
Cost of sales - rental & range 0.00 0.00 0.00 24,517.19 24,517.19
Cost of sales - food 26,747.34 28,007.44 30,137.60 31,754.94 116,647.32
Cost of sales - pro shop 170,457.91 167,102.66 162,753.66 172,843.22 673,157.45
Cost of sales - beer 16,769.83 15,765.50 19,599.98 16,119.60 68,254.91
Total COGS 213,975.08 210,875.60 212,491.24 245,234.95 882,576.87
Gross Profit 725,112.91 716,103.40 699,494.25 706,826.55 2,847,537.11
Expense
Advertising 18,329.88 21,253.03 17,431.67 15,494.11 72,508.69
Bank Service Charges 286.95 386.52 588.59 346.24 1,608.30
Contract Labor 462.50 0.00 0.00 0.00 462.50
Credit card discounts 28,100.44 29,936.11 22,514.23 21,795.09 102,345.87
Depreciation Expense 36,554.00 23,600.00 25,052.00 25,134.00 110,340.00
Dues-Pro & Greens Keeper 0.00 130.00 0.00 986.00 1,116.00
Dues 1,393.19 1,704.00 3,314.00 1,340.00 7,751.19
Employee benefits 13,263.70 9,344.22 10,149.04 10,174.56 42,931.52
Employee meals 2,844.50 4,632.23 4,518.36 4,019.13 16,014.22
Fertilizer & chemicals 25,056.45 7,439.83 19,752.87 12,460.40 64,709.55
Gas & oil - Carts 7,450.19 8,116.66 8,203.01 6,736.75 30,506.61
Gas & oil - Equipment 7,702.87 14,056.46 13,118.50 10,991.90 45,869.73
Insurance 14,503.75 14,643.55 16,358.19 17,728.70 63,234.19
Interest Expense 50.52 0.00 0.00 0.00 50.52
Irrigation water 16,657.36 16,657.36 16,657.36 19,014.88 68,986.96
Junior Golf 2,740.28 2,133.71 2,274.50 3,207.41 10,355.90
Lease - Carts 46,812.27 41,767.53 46,408.12 43,361.39 178,349.31
Lease - Equipment 31,833.58 51,008.10 41,372.73 44,309.34 168,523.75
Legal & accounting 8,703.00 8,810.00 8,700.00 8,950.00 35,163.00
License & permits 0.00 0.00 350.00 556.00 906.00
Office - grounds 1,716.16 293.80 0.00 48.50 2,058.46
Office - pro shop 659.99 2,231.47 3,916.93 1,717.66 8,526.05
Office supplies 1,993.77 1,833.23 1,667.20 1,098.53 6,592.73
Operating Supplies - course 9,257.08 9,564.23 9,247.17 10,202.23 38,270.71
Operating supplies - pro shop 13,685.30 11,289.19 8,415.37 6,848.20 40,238.06
Payroll Expenses
Bonus 10,750.00 9,915.00 9,380.00 9,450.00 39,495.00
Food & Beverage 34,181.14 32,390.77 31,368.64 27,453.39 125,393.94
Maintenance 106,066.01 130,117.46 112,956.82 126,418.50 475,558.79
Outside Service 13,261.88 13,785.00 11,763.75 14,220.00 53,030.63
Payroll taxes 32,010.46 33,834.54 29,325.98 29,526.71 124,697.69
Pro Shop 88,429.08 87,448.23 90,639.33 91,509.08 358,025.72
Payroll Expenses - Other 0.00 0.00 0.00 0.00 0.00
Total Payroll Expenses 284,698.57 307,491.00 285,434.52 298,577.68 1,176,201.77
Pumping charges 13,150.94 14,547.05 18,190.74 13,546.62 59,435.35
Repairs & Maintenance
Pro Shop 9,390.02 3,128.61 5,122.89 8,266.40 25,907.92
Irrigation 12,155.77 9,396.29 8,943.09 13,407.23 43,902.38
Equipment 20,722.64 20,798.52 18,280.65 20,253.23 80,055.04
Golf Course 11,257.84 13,929.51 10,595.93 12,517.77 48,301.05
Cart paths 0.00 0.00 450.00 1,197.58 1,647.58
Carts 1,628.08 3,123.47 1,642.52 1,834.31 8,228.38
Total Repairs & Maintenance 55,154.35 50,376.40 45,035.08 57,476.52 208,042.35
Taxes & licenses 550.00 980.00 176.26 222.64 1,928.90
Telephone 7,303.05 8,004.45 8,272.33 8,463.65 32,043.48
Tournament-Certificates 0.00 0.00 0.00 0.00 0.00
Travel - grounds 3,012.25 2,628.00 4,020.52 3,914.25 13,575.02
Travel - pro shop 3,057.80 3,080.00 2,762.38 2,750.00 11,650.18
Utilities 19,685.71 20,062.46 21,394.67 19,135.87 80,278.71
Tournament expense 40,681.17 46,446.71 47,229.71 39,986.08 174,343.67
Workers Compensation 4,605.47 5,137.34 2,604.79 3,291.27 15,638.87
11:23 AM Moab Country Club
04/29/20 Profit & Loss
Accrual Basis January 2016 through December 2019
Page 1
Jan - Dec 16 Jan - Dec 17 Jan - Dec 18 Jan - Dec 19 TOTAL
Over/short 6.95 25.98 10.17 11.22 54.32
Total Expense 721,963.99 739,610.62 715,141.01 713,896.82 2,890,612.44
Net Income 3,148.92 -23,507.22 -15,646.76 -7,070.27 -43,075.33
11:23 AM Moab Country Club
04/29/20 Profit & Loss
Accrual Basis January 2016 through December 2019
Page 2
City of Moab / Moab City Council / Moab Country Club – MCC
The Moab Country Club operates as a 501 C (6). The operation is overseen by a 7
person board of directors.
Financials – See attached previous 4 years.
Property- Overview-
• The City of Moab owns the property that the 18 holes of golf are located on. This includes a
large cart barn and two maintenance buildings.
• The MCC owns the pro shop / snack bar and the parking lot that is associated with this building
that gives access to the golf course.
Water-
• MCC owns 468 acre ft of Kens lake water through GVW&S. This is the primary water source to
water the golf course. More than enough water.
• MCC uses on the shoulders of some years (March & November) a small amount of water from
City well #7. We pay the City of Moab for the water and Rocky Mountain Power for the pumping
of this water.
Fertilizer & Pesticides-
• MCC has our greens superintendent and assistant superintendent that both carry a Non –
Commercial pesticide applicator license issued by the Utah Department of Agriculture.
• The Moab Golf Course’s greens program provides about 1.6 lbs. N/1000. On average most
greens programs for our temperature region would use 1.5 lbs. N1000 - 4 lbs. N/1000. Our
program incorporates organics, bio-stimulants, and soils surfactants, that promote soil health,
plant health, density, and efficient use of water.
• The tee program provides about 2.5 lbs N./1000, with a focus on high use tees to promote
growth and density. On average tee programs would use 2.0 lbs. N/1000 - 5 lbs. N/1000. Our
program incorporates organics to promote soil health
• The fairway program provides about 2.0 lbs. N/1000. On average fairway programs would use
2.0 lbs. N/1000 - 5 lbs. N/1000. Our program incorporates organics to promote soil health
• The rough program provides about 1.5 lbs. N/1000, and is focused from the inside out, and high
traffic areas to promote plant health and density. On average rough programs would use 1.5 lbs.
N/1000 - 5 lbs. N/1000. Our program incorporates organics to promote soil health
Equipment-
• All of the equipment that is used to maintain the golf course belongs to the MCC.
• The carts that are provided to golfers are sourced through the MCC on a multiple year lease
program.
• The Mowing equipment used to maintain the golf course is also sourced through a multiple year
lease program. One of our lease programs for mowing equipment is due to expire the end of
2020 and we will need to establish a new lease. Generally our equipment leases are 4 to 5 years
in length for us to afford the payments.
• The MCC will not be able to commit to any leases of carts or equipment beyond the term of our
lease with the City of Moab. A large reason for a new lease to be established.
Sustainability-
• In 2018 the MCC started to work on getting Audubon certification for the golf course.
" B e g i n n i n g i n 2 0 1 6 t h e M C C s t a r t e d a p r o g r a m o f e l i m i n a t i n g s p r i n k l e r h e a d s o n t h e o u t s i d e
r o u g h a r e a s o f t h e g o l f c o u r s e i n a n e f f o r t t o c o n s e r v e w a t e r .
" I n 2 0 1 8 t h e M C C s t a r t e d t o e l i m i n a t e s p r i n k l e r h e a d s a n d g r a s s b e t w e e n s o m e o f t h e t e e b o x
a r e a s . A g a i n t o f u r t h e r c o n s e r v e w a t e r a n d l o w e r o u r c o s t s b y g r o w i n g a n d m o w i n g l e s s g r a s s .
T o u r n a m e n t s -
" T h e M C C h o l d s 1 3 t o u r n a m e n t s p e r y e a r t h a t a t t r a c t s a n e s t i m a t e d t o t a l o f 1 4 0 0 g o l f
p a r t i c i p a n t s . A p p r o x i m a t e l y 7 5 % o f t h e s e p e o p l e c o m e f r o m o u t o f t h e M o a b a r e a .
" I t s h o u l d b e n o t e d t h a t a l l t h e p e o p l e a r r i v i n g f r o m o u t o f t o w n s p e n d m o n e y , n o t o n l y a t t h e
g o l f c o u r s e , b u t a l s o b r i n g r e v e n u e t o h o t e l s , B &