City Council Agenda and Packet 2010 03 02

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City Council Meeting Minutes February 16, 2010 Page 5 of 15 In December and January, Staff worked with the City Attorney and bond counsel to resolve questions on how to structure the agreement to comply with City Code, Charter and IRS requirements. The action involved executing a license agreement with WGP and defeasing the 2002 Golf Course General Obligation Refunding Bonds to refinance the Golf Course debt in 2001. If Council desires to approve the proposed agreement with WGP, it will require authorization for an interfund loan to establish the escrow account to defease the bonds. City Manager Fleming suggested the following two proposed amendments to the Agreement with Western Golf Properties. 1) Section 4.01 (m): Hold regular meetings with representative of the City to review the operations of the Golf Course including representatives of an advisory body appointed by the City Council for the purpose of providing advice to the City Council on golf course related issues. 2) Section 705 Customer Service Survey: The City shall have the right to conduct periodic customer service surveys to ensure that WGP is meeting or exceeding customer expectations. City Manager Fleming explained both ordinances 1565 and 1566 are related. Ordinance No. 1565, Series 2010 authorizes a loan from the Water and Wastewater Utility Fund to make up the deficit in the 2009 budget. Ordinance No. 1566, Series 2010 provides a loan from the Water and Wastewater Utility Fund as a defeasance of the Golf Course General Obligation Bonds, which provided funding for the construction of the golf course. Because of the tax laws regarding private activity and the non-profit status, the proposed structure for the operating agreement with WGP is a defeasance of the bonds. The loan process and defeasance of the golf course general obligation bonds occurs through a loan from the Water and Wastewater Utility Fund. City Manage Fleming reported the Water Committee met on Friday, February 12 and discussed the ConocoPhillips development impact on the City’s water treatment system.The expansion of the Water Plant would cost approximately 5 million dollars and would require shifting the golf course loan from the Waste Water Utility Fund to the General Fund. He reviewed the latest statistics from the Coal Creek Golf Course from 2004 through 2009 although the numbers of rounds of golf played have not dropped substantially (1%); the operating expenses of the golf course have increased. PUBLIC COMMENT Owen Schory, 619 W. Hawthorn Street, Louisville, CO noted the Coal Creek Golf Course is 20-years old and requires a lot of upgrades. He attended the open house held on February 12 at the Coal Creek Golf Course Club House. After ïç