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CITY COUNCIL <br />`. TOWN OF LOS ALTOS HILLS <br />26379 Fremont Road <br />Los Altos Hills, California <br />MINUTES OF AN ADJOURNED MEETING <br />Thursday, August 3, 1978 <br />cc: Reel III, Side II, Tr. 11, 544 -End; Side I, Tr. 11, 001-318 <br />Mayor Lucile Hlllestad called the Adjourned Meeting of the City Council to order at 4:02 PM <br />In the Council Chambers of Town Hall to consider only those Items continued from the Regular <br />Meeting of August 2, 1978. All Councilmembers were present. <br />E. SPECIAL ORDERS: (Continued) <br />5. Public Hearings: <br />a) Proposed revocation of Conditional Use Permit, Adobe Creek Country Club, File <br />C.U.P. #8004-74 (continued). <br />The City Attorney resumed questioning of Mr. Klages. The following is a summarization of <br />the events of the meeting. <br />Mr. Klages Board President/Adobe Creek Country Club, provided names and structural bPeak- <br />down of Board members for the last three years; Information relative to the lease and <br />management contract the Club Is currently operating under (Introducing Into the record <br />copies of these documents); conflict problems experienced during the time the Land Owner's <br />former attorney served on the Board of Directors; background on the accruing debt of the <br />Club which necessitated the new lease/management agreement; various segments of the Agree- <br />ment which Club members felt the Land Owner was not Implementing as agreed upon; and, <br />hiring, firing and outside activities are not controlled by the Club. <br />The City Attorney then had Mr. Klages examine financial statements for the Club and Intro- <br />duced these Into the record. <br />Mr. Myers Attorney for the Owner of Adobe Creek Country Club, questioned Mr. Klages with <br />responses that: (1) To Mr. Klages knowledge the non-proft status still applied; (2) The <br />Agreement was arrived at Independent negotiations: (3) The previous debt was absolved by <br />the Owner; (4) The current rent Is a substantial reduction; (5) That the Owner/Manager has <br />agreed to reimburse membership fees to anyone wishing to cancel; (6) No new by-laws have <br />been wtitten; (7) The facilities are well taken care of; (8) Management/catering contract <br />Is comparable to those of similar organizations; (9) Club Members felt this Lease/Manage- <br />ment was to their benefit; and (10) Standard demands had been made upon the Management. <br />Council members questioned Mr. Klages as to problems with obtaining use of the facilities <br />due to the scheduling of outside activities; Club members efforts to operate In compliance <br />of the tenets of the Conditional Use Permit; attempts by members to control the destiny of <br />the Club; confusion relative to the financial condition of the Club at various times; and, <br />frustrations encountered In trying to upgrade the facilities. Following this, Mr. Myers <br />reiterated some of his earlier questions. <br />Mr. Brown Licensee Adobe Creek Country Club, offered his viewpoint on many of the happen- <br />ings already related since he became a member (now licensee) In March, 1977. Mr. Brown <br />further outlined problems encountered in the transition periods; the advisory only status <br />of the current three man Board; the recent appointment of a seven man Board (as permitted <br />by the By -Laws); and, their intent to operate Independently and with authority. He then <br />answered questions from the City Attorney relative to the constraints the current Agreement <br />placed on the Board. <br />