Minutes of the Blythe City Council Special Meeting
May 8, 2025
The May 8, 2025, Special Meeting the Blythe City Council was called to order at 2:30pm in the Council Chambers by Mayor DeConinck. Also in attendance were Vice Mayor Rodriguez and Council Member Spraggins. Council Members Halby and Burton were excused from the meeting. Staff in attendance included: Interim City Manager and City Clerk Crecelius, City Attorney Roberto, Finance Director and City Treasurer Elms, Chief Building Official Brown, Public Works Director Elegores and Police Chief Dale.
The Pledge of Allegiance was led by Mayor DeConinck.
SPECIAL MEETING ITEMS:
1. Posting of the Agenda.
The summary of agenda items were posted on the bulletin boards on the outside of the public entrance to the Council Chamber and near the inside entrance of the Council Chamber on Wednesday, May 7, 2025.
No public comment. Vice Mayor Rodriguez moved approval of the posting of the Agenda. The motion was seconded by Council Member Spraggins with a unanimous aye vote.
2. Second Amendment to Lease Agreement between City and BNB Golf Management, Inc. Interim City Manager Crecelius stated it was staff’s intent to have this on the May 13th Agenda for approval. In discussions with David Bayles, operator of BNB Golf Management, he notified me of price changes occurring as of May 14th, which is why we asked for this meeting today. We hope to wrap things up by the end of the week. Today is the culmination of many months of discussion related to the continued operation of the Golf Course. BNB has operated the Course since 2010. They had a lease that was set to expire in August of 2025. Last September they notified staff of their intention to terminate that lease citing the financial burden of operating the course over the past 14 years. Staff later discussed BNB continuing in some fashion in the short term. With the Council’s direction, I negotiated this agreement with David Bayles for a term of 5 years through August 2030. The agreement includes assistance and assurance from the City such as a management fee of $60,000 per year. One change from the Council’s initial direction, we were going to provide monthly installments, now one lump sum payment will be made each year on July 1
st
. It will be $60,000 regardless of how it’s distributed so I agreed to that change. We are also going to purchase the equipment necessary for course maintenance. The current equipment is 6 years old and has met its useful life.
There was a lot of discussion related to how this would work. The agreement does include BNB purchasing the equipment with reimbursement by the City in an amount not to exceed $660,000, once we are provided with proof of purchase. We met with the equipment representative. They provided a list of equipment necessary, and Finance Director Elms spent an extensive amount of time researching the equipment compared to the cost on the State Bid list and other contracts available to the City. She did find a better deal on one piece of equipment to save roughly $1,500. I truly feel this is the best deal we will get on this equipment. We are 99% there with the agreement. Mr. Bayles has a few sticking points. One is the equipment. The way the agreement is currently written, at the end of the lease, the equipment becomes property to the City. The reasoning is, if the City paid for it, the City should get to keep it. He has pushed back on this. My thought is that if it was purchased for the Golf Course, it should stay with the Golf Course as long as it’s in use. If they were to leave, they would give the equipment back to us, but if they are operating the course and the equipment is usable, it should stay at the course. The City Attorney has provided some options, once they cease operating the course, they will transfer the title of the equipment to the City; or we could add language stating at the end of the agreement we would appraise the equipment and if it does not exceed the specified amount, they could keep it. What is Council’s preference? Does the City want the value of the equipment at the end of the agreement to be the City’s or BNB Golf Management’s? There is one other minor change. We removed the word overseeding from maintenance. They will continue to overseed, but the scope will be reduced to save costs. The one other sticking point is repairs to the irrigation system. Mr.
Bayles wants language starting any repairs over $5,000 would be the City’s responsibility. He wants a stipulation that the City will take care of any catastrophic failure of the irrigation system. My concern is that if you don’t fix something little, it can turn into something big. Through negotiations, the spirit has been that the City will be BNB’s partner, and we want to work with them to keep the course open. I am not comfortable with a dollar amount; but over the next few years the irrigation system will need to be upgraded and it’s probably not going to be BNB who does it. Those were the three issues that need to be resolved to finalize the agreement.
The City Council had a lengthy discussion related to the disposition of the equipment at the end of the agreement. It was suggested that the equipment remain with BNB for as long as they operate the course. Once they cease operations, the equipment will be transferred to the City. The other option would be at the end of five years, the equipment is appraised and if there is a value, they transfer it back to the City or pay the City for the appraised value of the equipment.
Vice Mayor Rodriguez thinks it will be better maintained if BNB owns the equipment.
John Bush said the equipment is used daily. I know of three or four courses that have gone to tough turf for less maintenance. It may be time to start transitioning to the tuff turf then the equipment will last longer as it will not be in use as much. The equipment will last 5 years, and going back to John Deere is the ideal situation. But service is a huge key.
Interim City Manager Crecelius stated maybe we are overthinking this. The City is reimbursing BNB for this equipment. At the end of the agreement, if there is value to that equipment, is it important for that value to be the City’s? Is it important to the Council for that equipment to remain at the course, or does the Council care what happens with the equipment at the end of the agreement?
Vice Mayor Rodriguez thinks the equipment should be attached to the Golf Course.
Mayor DeConinck asked what if something happened in year two or three. It was reported in that situation the equipment would remain with the City for use on the course.
Interim City Manager Crecelius stated we are discussing what happens at the end of the agreement. Mr. Bayles is questioning why the equipment would become the City’s at the end of the agreement. I explained that if you leave, the equipment will stay at the course.
However, at the end of five years, everything is negotiable. If he wants to trade in the equipment for new equipment to operate the Golf Course, I think we would be ok with that. We can’t account for everything, so the cleanest thing is that if the equipment is in use, it will remain at the Golf Course.
City Attorney Roberto stated based on this conversation I am thinking of adding additional language, absent additional direction, stating at the end of the term of the agreement; or at the time the lessee ceases operation of the course, just to make it clear that if they stop operating, this is what is going to happen along with anything else you direct.
Interim City Manager Crecelius stated for the next five years the equipment will be BNB’s; but at the end of the term, he will be required to sign it over the City. We can clarify that if he continues the operation after the five years the equipment will remain with him if it’s being used at the Course. If he ceases operation, it comes back to the City.
Mayor DeConinck asked if they were required to provide insurance for the equipment.
City Attorney Roberto stated they are responsible for maintaining the equipment and for any damage. We can add an insurance provision.
Interim City Manager Crecelius stated this agreement buys the City time to keep the course in operation while we look for alternative solutions, and how to make the course more cost-effective to operate so they can stay in business without our help or someone else can come in and maintain it without the City’s help. What we are proposing is payment for the operation of the Course so that it remains open.
Mayor DeConinck asked if David Bayles was aware of this meeting. It was he was.
Interim City Manager Crecelius stated the last item is the irrigation system. David Bayles would like language stating the City will take care of catastrophic irrigation failures. This is not contemplated in the agreement. We have had conversations with him related to future irrigation improvements. I am not comfortable stipulating in the agreement that the City is responsible for any major irrigation issues.
Mayor DeConinck stated there are a lot of factors in which the system can be damaged from lack of maintenance that would not be the city’s fault.
The council provided direction to staff to finalize the agreement related to what happens with the equipment at the end of the agreement and irrigation system issues related to catastrophic failures.
City Attorney Roberto advised that if a motion is made, the Council give the City Manager direction to execute the agreement with the changes directed at this meeting.
Vice Mayor Rodriguez moved to provide the City Manager with authority to execute the changes discussed today. The motion was seconded by Council Member Spraggins with a unanimous aye vote.
ADJOURN: The City Council meeting was adjourned at 3:45pm. ________________________________
Joseph DeConinck, Mayor
ATTEST:
________________________
Mallory Crecelius, City Clerk