SPECIAL CITY COUNCIL MEETING
Tuesday, February 12, 2008 7:00 p.m.
Public Safety Building
3925 W Cedar Hills Drive, Cedar Hills, Utah
This meeting was held electronically via telephone to permit one or more of the Council Members to participate.
Present: Mayor Mike McGee, Presiding
Council Members: Ken Kirk, Jim Perry, Eric Richardson, Charelle Bowman, Marisa Wright (Via Phone)
Konrad Hildebrandt, City Manager
Kim Holindrake, City Recorder
David Bunker, City Engineer
Greg Robinson, Assistant to the City Manager - Planning
Jim Madsen, Director of Golf
Rachel Brown, Finance Director
Others: Cliff Chandler, Diane Kirk, Craig Clements, Roland Brown, Larry Wood, Gary Smith, Andy Yorkin, Johnathan Burgoyne, Caleb Warnock-Daily Herald, Larry Locken, Mike Chase
SPECIAL COUNCIL MEETING
1. This meeting of the City Council of the City of Cedar Hills, having been posted throughout the City and the press notified, was called to order 7:13 p.m. by Mayor McGee.
Invocation given by C. Kirk
Pledge of Allegiance
2. Review/Action on Golf Course Reconfiguration
The City Council will hear from three advertising agencies.
The Summit Group: Andy Yorkin and Johnathan Burgoyne presented their proposal for golf course advertising through a power point presentation. See handouts. The Summit Group has 25 years of experience and is located in Salt Lake City. They have about 60 employees.
Philosophy is summarized in one sentence: results breed opportunities. They know their client’s business. Their philosophy is branding. Marketing Objectives - Create awareness for the City and the golf courseand create a sense that it’s bigger and better. Target Audience - Business men: Utah County, residents in a 10 mile radius, and people interested in the community. Tactics - Direct mail, radio remote, theater advertising, newspaper, and public relations. Banner - Generate awareness, excite residents, and displayed by the clubhouse or highly visible location. Direct Mail - Solo mailer, target company owners, and provide an incentive. Newspaper - Daily Herald and coordinate news story and advertising. Public Relations - Provides a plug for the City and great exposure. Timeline - February 11 through April 28. Budget - $16,950 to $21,950.
• Andy Yorkin stated that they use a package approach. Direct mail is very targeted and done through zip codes. Newspapers are a broad approach but effective. Radio remote stations like to do the events and give away prizes on the air and are willing to trade advertising on air. The target is a ten-mile radius. Radio stations are determined by creating a profile of the golfers and working backwards. They have seen no decline on radio advertising, and it is good pricing. Banners would be located where there is drive by traffic. They are a little bit aware of the changes happening at the course. This is currently a discovery stage for them. They could work a big event just for the residents into the grand opening.
Chase Media Group: (7:34 p.m.) Larry Locken and Mike Chase presented their proposal for golf advertising. Larry Locken stated three objectives or marketing purposes will be met. People need to know that the course will not be interrupted with modifications. He and Mike are avid golfers and play the course. They applaud the modifications proposed by the City. First, let people know the course is open and tournaments and tee times are available. Second, increase rounds per week. Don’t do a lot of branding because there is no accountability and is too easy. They want to be accountable. Advertising needs to bring revenues and also let people know the course is ready to play. Third, residents need to feel good about the Council’s decision and good about living here. If chosen they are prepared with press releases at no charge. Advertorials, which are headlines created by the City, will be used. These are advertisement articles. They have met with the publisher of Fairways Magazine who has agreed to a full article and feature in the May issue. This will tell everyone that the modifications are positive. They met with Comcast who will do a TV advertisement strictly in this area. It will run on several channels such as the Golf Channel, TNT, and CNN. Their company is the largest purchaser of radio in Utah. They will make a call to action to book passes, etc. Larry Locken played radio ads with Greg Wrubell and Bob Casper. He stated that the budget is just under $25,000 and they will do it for $24,000. They will do a lot of work for added value and are ready to go beginning Monday. Their costs are radio - $8,000, newspaper - $4,000 on advertorials, Fairways Magazine - $3,000, local direct mail to zip codes - $3,000, thirty second TV ads on Comcast - $6,000 for a total of $24,000. Upon selection they have added additional values at no cost. The budget goes straight to advertising. There are radio benefits of $20,000 to be donated to the City for advertising. They will sponsor six holes at $300 each at the City’s July golf tournament. They are committed to the success of the course. The challenge is selling season passes so they have golf in Mesquite to give away for the purchase of a Cedar Hills pass to prepare golfers for Cedar Hills play. Mike Chase stated that this is his favorite course and he wants to see it survive and do well. They receive bonuses through radio that they want to use on the Cedar Hills Golf Course. Their philosophy is to make sure people understand that the glass is half full on this course. They will take it to the next level. This will become a success story for both the City and Chase Media Group.
• Larry Locken stated that they can expand Comcast to portions of Salt Lake County. They would love to have Doug Barber do a radio remote. Radio remotes will run through September and October. Mike Chase stated that in 2007 they did eight million in and out of the state. Their clients include Carl Malone, Advantage Windows and Doors, HBAC Construction, Mike Lapoint Ford, Lincoln Mercury, Metal Mart, Bryant Heating and Cooling, and most recently Back Yards Inc. The most important is this $24,000 with Cedar Hills. They also offer a division of the company that is a search engine marketing. They will offer this service. If someone is googling on Yahoo or AOL, they will find the Cedar Hills Golf Course. This is an added value of $1,300 to $3,500. They subcontract 80% of their work, which lowers expenses. They have six employees day in and day out, but their subcontractors make it 18 employees. They did some marketing for Cedar Hills last year at no charge. They were the final of two on the Salt Lake County Golf Course. They have done some pro bono work on the Highland Golf Course in Pocatello. They are excited to help and are local.
Peter Brooks: (8:00 p.m.) Peter Brooks has been in marketing and advertising since 1984 and won a Cleo Award. He goes into a business and figures out what the goals are. Years ago he was asked by financial planners on marketing your own business. He taught how to increase sales without spending a lot of money and wasting a lot of effort. He follows the five M’s - motive, market, message, media, and measurement. You can’t jump straight to media.
Motives – He received the City’s RFP with two motives. The City doesn’t have enough money to do both of these. He will concentrate on the first. What does the City want the advertising firm to do? City answer - more rounds played, more revenue, and more recognition. Measurable – His method is knowing how many people golfed today and doing things in the right order. Market – There are clients, prospects, and suspects. Suspects are anyone in the trading area that golfs. The problem the City has is there is only a 180-degree radius to work with. The golf course is right up against the mountain and seven miles away from the freeway is a negative. The focus is on clients first and to start from within. Does the City have a data base? The City has a partial data base but it’s not big enough. The best source for business is those that have played the course. He will create a data base. Eventually the data base will be worth more than the course itself. Message – You know what to do and who to reach. The question is, what’s in it for me. Everyone asks that question. If done right the message will talk to the golfers. Media – This will deliver the message to the market and reach the motive through billboards, advertising, etc. Measurement – Everything should and can be measured or quantified. This is how he will apply it to the City. He will focus on the 10,589 golfers. His goal is to get a 1% return, preferably 3%. Golfers know each other and golf in groups. His plan is to invite 100 golfers to golf for free on the City’s terms to become an advisory team. Golfers know each other and they are addicts. They know ten other people and will invite them to golf. It is a word of mouth campaign. Information will be gathered from these golfers and this will build the data base. This is the plan in a nut shell. The headline is, we are looking for 100 golfers who would like to play a free round of 18 holes at no charge and evaluate our newly reconfigured golf course and become our advisors on improving the Cedar Hills Golf Course.
• Jim Madsen explained that tournaments do not generate revenue but corporate events bring in revenue. Tournaments move merchandise; the money brought in is given back in prize money. Corporate events pay a fee plus a premium. The premium is returned in prize money. Peter Brooks stated that he can’t target everyone in the world but he can target the addict golfers. Direct mail will be used to target the golfers. Alpine, Cedar Hills, Pleasant Grove, and American Fork will be targeted with a mailing in a Cedar Hills envelope. It will look official. The marketing plan for 2008 is to get a data base and identify golfers. In 2009 his objective is to market to the data base. E-mails can be gathered to contact golfers for free. He has done different projects for golf courses. His largest client right now if Lehi City, and all his clients are making money. Everything at the course has to be running well. He will bring people in that will come back to the course. Marketing is a big team effort.
Discussion on the three advertising agencies: (8:34 p.m.)
• C. Wright is in favor of Chase Media. They have a lot of passion. It sounds like they really mean it and are giving the City several bonuses. They feel they are personally invested in the golf course.
• C. Kirk stated that if Chase Media puts as much effort in the publicity as in this meeting, we have a success story.
• Konrad Hildebrandt stated that these agencies are the top three. On paper the order they presented is the order staff recommends. Jim Madsen likes Chase Media. He made calls and talked to the agencies. Chase Media has more to offer. They do their homework and know who their market is. They have done much of the work already. A free two-night stay in Mesquite with dinner and golf with the purchase of a season pass will attract people. The course is under snow and difficult to get people excited right now. They are golfers, and they know golfers.
• C. Richardson stated that Chase Media was head and shoulders above the other two. They know who to market and are ready to go today. The Summit Group has impressive credentials, but the City is looking for something more specialized. He is very confident where the City falls with Chase Media. They know the course and golf here. Peter Brooks also has a connection to the City. Chase Media knows what makes the City tick, and their ability to perform is above the others.
• C. Perry stated that the ranking given by staff is right on in terms of professionalism and reputation. However, Chase Media clearly has a level of passion and investment in the City’s particular situation.
• Konrad Hildebrandt asked what the Council’s philosophy is to determine who is the target market. Is it the 10,500 golfers or the entire community? Is the City looking for the passionate golfer or others that only golf three or four times but wants to check out the course. This is where we leaned toward the Summit Group. Who is the target market? Where does the City specifically want to hit?
• C. Kirk stated that it is a fallacy that addicts will change. They may come to Cedar Hills, but the target is not the addicts. We are looking to the freelancers who will create themselves as an addict with Cedar Hills. He likes the idea of a wider target.
• C. Richardson stated that the addicts are sticky and loyal golfers.
• Konrad Hildebrandt stated that the majority of golfers are not addicts. The course is a great asset and beautified open space. The residents should be proud.
• Jim Madsen stated that in Chase Media’s radio ad touched on the facts of the beautiful mountains, the cedars, etc. They hit many of the points.
• C. Perry stated that there is a huge market for people who golf only a couple times a week. City Councils frequently make the mistake of micro managing things. The City has staff and a professional firm the figure out the details.
• Mayor McGee agrees with what has been said. He likes the Chase Group and their vested interest. The other groups had good comments and were different.
• Rachel Brown believes in the Summit Group. They do have a vested interest that the Council may not be aware of. The person who put the proposal together couldn’t be here tonight. She did a lot of research. Their account manager is a resident of Cedar Hills. If a vested interest is important, don’t over look them. They may not have the benefit of already knowing everything but shouldn’t be overlooked.
MOTION: C. Richardson - To instruct staff to award the contract to the Chase Media Group. Second C. Bowman.
C. Wright Motion passes.
3. Review/Action on Preliminary Subdivision Plat for St. Andrews Estates, PRD, Located Between 10950 North and 10579 North along the East Side of Canyon Road (8:51 p.m.)
See handouts. David Bunker stated that staff has been working at redesigning some features of St. Andrews Estates. This is a different design than previously submitted. There is a single entrance to the subdivision and a separate entrance to lot 20. Staff has not talked to UDOT about the additional access but are confident to get this access. The access to lot 20 is really a driveway. There has not been a geotech study on the subdivision but one will be required. The golf course needs to be kept operational during reconfiguration efforts. The geotech work will go right through the fairway and require some fault line investigation. Lots 10 and 11 have a section of outcropping where the grades are steep. The City needs to be aware of those and decide how much excavation will be allowed. The City Code states that there is no disturbing of any soil 30% or greater. Previous approvals have been given to subdivisions with ditches and ravines greater than 30%. There are lots in Canyon Heights and The Cedars with pretty good walls in areas of 30%. This needs to be addressed. The 19 residential lots do not have a regular storm drainage system but have an underground detention system. Drainage is put in drainage cells and percolates into the ground. There are storm drains on Canyon Road. It is an interesting concept to have storm drains underground but this area can be used for parking. It makes it a useful design. The Wal-Mart project has a similar system as well as Costco in American Fork.
Greg Robinson stated that the Planning Commission is working hard to complete the commercial zone change. A public hearing and noticing will be required. The soonest it will be to the City Council is the first meeting in March. The subdivision final will also be done at the next Planning Commission meeting and complete design to the Council in March. The Design Guidelines will be modified to incorporate this zone to allow commercial in that area.
David Bunker stated that lot 20 will require a lift station to the sewer line. The City does allow lift stations. These are a home ejector from the basement but the main floor must gravity flow to the sewer line. The east lots are helped by the elevation but the west lots are hurt. The engineering is trying to put the sewer deep enough to allow basements but there are some constraints to get to gravity flow. Lot 20 may need to eject to the sewer main. It will be the responsibility of the developer as well as the individual building lot owners. It is a property owner issue. There are some lift stations in Avanyu and Juniper Heights. There are new systems that are self-contained and much better. The sewer main is located just past the tee boxes near the golf restrooms.
Greg Robinson stated that the Planning Commission wanted the Council and developer to pay attention to zoning issues like geotech requirements, building envelopes on some lots, and the 30% grade on the property.
• C. Perry stated that geotech studies comply with the ordinance but there have been massive problems in the hillside developments. Some of The Cedars Townhouses had to be retrofitted with helical piers. David Bunker stated that all of the Townhomes with failure have been on the downhill side of the road, which is the fill side of the road. C. Perry wants to make sure there are no problems.
• C. Bowman asked if the geotech analysis will cause damage and what happens if a geotechnical problem is found? David Bunker stated that the fault trenching will use track hoes. The ordinance addresses those issues, and within reason and with proper mitigations in place you can build in those areas. Staff has discussed how close building can be to the fault lines but this takes investigation on site. The current geotech map is a good tool and was put on the record by the Planning Commission.
• David Bunker reported that trenches would be dug in several locations cutting through the subdivision plat east west. The fault lines run north south. The trenches are 15 feet wide and 10 feet deep. The area would be fenced with construction fencing and would be a construction area.
• Jim Madsen stated that the new tee boxes would be cut in and shouldn’t affect play. Par will be reduced overall on the course. David Bunker stated that it is a timing issue. The project has been awarded to Broderick Construction for tee boxes on holes 9, 15, and 18 so play can be shifted. Then the trenching begins. The course is playable around the trenching.
MOTION: C. Richardson - To approve the preliminary subdivision plat for the St. Andrews Estates, PRD, subject to the following: submission of a geotech study and mitigation plan addressing the geology of this plat in the H-1 zone, a site plan being submitted prior to construction for lot 20 including a retaining and grading plan, building envelope approval at final approval including a 20' corner side set backs on lots 1 and 19, indication on lots 1 and 19 facing east, a grading plan or envelope designation taking into account the slopes on lots 10 and 11, water rights approval, fire chief approval, legal review, verification of right-of-way width and UDOT access approval including acceleration and deceleration lanes, storm drain design and approval, a road grade plan at final, plat notes referencing lot specific geotech study including reference to the fault map, retaining walls must be engineered, open space designation, piering or no construction on fill, and final engineering. Second by C. Perry.
C. Wright Motion passes.
4. Motion to go into Executive Session, Pursuant to Utah State Code 52-4-5
5. Motion to Adjourn Executive Session and Reconvene City Council Meeting
No Executive Session.
This meeting was adjourned at 9:20 p.m. on a motion by C. Bowman, seconded by C. Richardson, and unanimously approved.
/s/ Kim E. Holindrake
Kim E. Holindrake, City Recorder
Approved by Council:
February 19, 2008