By Anton Riecher
Action to consider re-negotiation of the contract governing management of the Devine golf course was approved by a 4-1 vote of the Devine City Council at its July 16 regular session.
Urging the re-negotiation, Mayor Butch Cook said that under the current management of the Devine Golf Group (DGG) the course had reached a positive turning point with the recent completion of improvements to the golf course clubhouse, including a new air conditioning system.
“This golf course is a viable operation, especially now that the clubhouse has been completed,” Cook said.
The motion in favor of considering re-negotiation was made by District 3 council member Jeff Miller and seconded by District 2 council member Michael Hernandez. District 5 council member Debbie Randall was alone in opposing the measure.
DGG Rep Ron Richards questioned why their own District 5 representative doesn’t support them. Randall noted that she does at times.
No preliminary figures on the new contract were introduced during the meeting.
“My intent this evening is not for us to sit here and talk about the numbers, going back and forth,” Cook said. “I just want a consensus of the council if we want to proceed in this direction, to sit down and talk about negotiations.”
Cook said he did not believe the existing contract was good for either the city nor DGG. It covers a 10-year period with an additional 10-year option. In addition to an annual lease payment of $1 a year, the DGG pays the city $1 per paid green fee and $2 per membership every quarter. After five years the DGG payment per paid member increases to $5 each quarter.
“In my mind it should be a short contract that we can negotiate at the end of each term,” Cook said.
In the two years since DGG took over management of the course the city has not paid DGG a dime directly, compared to the previous management contract that cost the city $32,500 a month, he said.
The golf course itself is the property of the city and its maintenance remains the city responsibility, Cook said.
“I’ve said it for a year now since I was elected,” he said. “That property is the property of the City of Devine. It is our job to maintain that infrastructure.”
DGG “inherited some things that were really in bad shape,” Cook said.
“They’ve already paid $17,000 for their half of the wells and pumps which is in the current contract,” he said. “They have gone by the contract explicitly and followed everything in it.”
Cook said he did not want the golf course project to fail for lack of capital expenditure.
“We want these guys to succeed,” he said. “They all have local ties. They’re vested in the golf course. They care about it deeply.”
The council approved payment of more than $5,500 in invoices submitted by DGG to reimburse them for electrical work and other repairs involving water pumps. However, the council rejected two invoices totaling more than $700 in plumbing and another $465 related to fire inspection, citing contract language making DGG responsible for payment.
Council voted to table one of two executive sessions scheduled after it was determined that the items to get discussed – requests for quotes for technology services and city engineer, city attorney and city auditor services – could only be legally discussed in open session.
The items were listed on the agenda under the heading of personnel.
No action was taken after an executive session held to discuss litigation with City Attorney Thomas Cate.
The council voted 3-2 against a request from the Devine Housing Authority asking the city to waive this year’s $4,000 check as payment in lieu of property taxes. Mayor Cook explained that the authority cited the expense of recent improvements to local federal housing.
District 1 council member Ray Gonzales, District 2 council member Michael Hernandez and District 3 council member Jeff Miller voted against granting the waiver.
In another vote against the council majority, council woman Randall voted against an amendment to the airport mowing contract issued to contractor Joe Munoz. Mayor Cook explained that the new contract will be paid monthly as is standard with most service contracts.
Prior to Cook taking charge, the whole contract had been paid up front. Last May since the city was already a month into the contract he agreed to half up front. He was told the mowing contract was ‘usually’ paid in advance to cover the cost of equipment and supplies, he said. “We are not doing ‘business as usual’, we are doing it the right way now. Monthly like the contract says” Cook stated.
In response to a quarterly investment report, council members expressed concern over the low rate of return on more than $2 million in funds waiting to be used in the construction of the city’s new ground storage tank.