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Item No. l i e) <br /> Staff Report No. 97- �P <br /> • Meeting Date: July 28, 1997 <br /> Type of Business: CB <br /> WK: Work Session;PH:Public Hearing; <br /> CA:Consent Agenda;CB:Council Business <br /> City of Mounds View Staff Report <br /> To: Honorable Mayor and members of the City Council <br /> From: Bruce Kessel, Finance Director <br /> Item Title/Subject: Golf Course Superintendent Employment Contract <br /> Date of Report: July 23, 1997 <br /> At thestuly work session, the Council discussed the option of entering into an employment <br /> contract with the Golf Course Superintendent. Attached is a draft contract for your review. One <br /> item that is not included at this time relates to a maximum salary; state law sets a maximum <br /> salary for most government officials at 95% of the governor's salary; City Attorney Long would <br /> need to do further research on this item and draft the appropriate language if it is applicable to <br /> this position. City Attorney Long has reviewed the draft document and it is my understanding <br /> that he Cels that the City could enter into such an agreement under the general terms and <br /> conditions as proposed but that there would need to be several minor changes in the contract <br /> language, several personnel ordinances would need to be revised to grant the golf course <br /> superintendent the authority over some personnel matters, and implementation of the agreement <br /> in 1997 would require some additional terms since employees were hired under terms than are <br /> being proposed in the agreement. Overall, it is my understanding that the City Attorney and City <br /> staff feel that most of these same ordinances need to be revised to clarify rights and <br /> responsibilities for all City employees, management and the Council. <br /> Bond Covenants <br /> An additional item relates to the ability to enter into such a contract because of bond covenants. <br /> The bond document has several covenants relating to maintaining reserves for debt and <br /> operations, setting rates at adequate levels to maintain reserves, appropriating funds to cover <br /> deficits, analyzing operations if covenants are not met, etc. One of the covenants is as follows: <br /> • The City has covenanted to maintain such operating policies so as to produce gross <br /> revenues, together with any other funds which may be appropriated by the City from time <br /> to time for such purposes, sufficient to provide adequately for the operation and <br /> maintenance of the Project and to meet the annual principal and interest requirements of <br /> the Bonds;.and the City is required to provide in its budget each year for any anticipated <br /> deficiency in the revenues available for the operation and maintenance of the Project. <br /> While the bonds are not general obligation bonds,this covenant appears to pledge the City to use <br /> general fund resources to cover any deficits at the golf course. The official statement also <br /> includes the following comment: <br /> • The City has pledged the gross revenues of the golf course first for the payment of debt <br /> • service, and intends to pay operation and maintenance expenses from the balance of gross <br /> revenues available after payment of debt service costs. In the event such revenues are <br /> insufficient to pay all operation and maintenance expenses, the City would have to use <br />