Loading...
HomeMy WebLinkAboutGolf Board - Minutes - 01/19/2005Citv of Fort Collins Cultural, Library, and Recreational Services Golf Board Minutes: Regular Meeting of January 19, 2005 Council Liaison to the Board: Councilman Bill Bertschy Staff Support to the Board: Jerry P. Brown, Manager of Golf at 221-6350, and Dawn Worth, Administrative Aide at 416-2265 Call Meeting to Order: Board Chairperson David Johnson called the meeting to order at 7:00 p.m. at the Collindale Clubhouse. Agenda Review: There were no changes to the agenda as printed Items of Note: ♦ Jerry introduced new Board member Jay Kammerzell and explained that Vanessa Kabel had to resign because of her job relocation and Council will be appointing a new member in February to replace her. ♦ Jerry noted the recent changes City Council made to the Citizen Participation Policy and he asked if there were any objections to revising our Golf Board Citizen Participation Policy. There were none. Approval of Minutes: On a motion by David Thilmany, seconded by Grant Sherwood, the Board unanimously (6:0) approved the Minutes of the November 17, 2004 Regular Meeting. (Larry Buckendorf arrived at the meeting a few minutes later). Citizen Participation: No Citizen Participation at this time. Review and Approval of the Golf Board 2004 Annual Report Jerry previously sent a draft 2004 Annual Report for the Board to review. He briefly discussed the Board Annual Report and mentioned that it needed approval. There was a motion made by David Thilmany, seconded by Dan Preble, to approve the Golf Board's 2004 Annual Report as submitted. The Motion was approved unanimously (7:0). Jerry also mentioned the Board Members' Meeting Attendance During 2004 Report. Review of the Financial Status of the Golf Fund Jerry discussed a document he provided the Board that shows the updated Collection and Usage of Surcharge Fees. Jerry also provided the Board with a document on Annual Passes and mentioned that we sold 256 Annual Passes last year, down from 408 sold in 2003. We also went down from 19,334 to 12,212 for Annual Pass Rounds because of the change made to Annual Passes. The average number of rounds played per pass holder was 47.39 in 2003 and went to 47.70 in 2004. A large portion of the Annual Pass holders are Juniors and Seniors, which are charged a lesser fee, thus revenues were basically down a dollar from the prior year. In 2003 we did $8.79 and in 2004 we collected $7.84 per round. When you add the Surcharge to that it was $11.39 in 2003 and $10.30 in 2004. Golf Board Nfimtes January 19, 2005 Page 2 Jerry mentioned that Grant Sherwood previously asked him to provide a document that shows where the savings on the expenditures were located. Jerry discussed many of the line items for 2004 that showed the expenditures for City Park Nine, Collindale, SouthRidge and Golf Administration. Jerry stated that he felt the Superintendents did a great job of only buying what was absolutely needed. Jerry explained that the final audit has not been done and the amounts may change, but it should be pretty accurate. Collindale saved $17,000 in permanent salaries. Paul Brauer and Tom Fry retired last year and those positions were left vacant for a while. Assistant Superintendent Mike Enright's old position has been vacant for some time and we are planning on keeping it vacant until at least April. When you add the benefits for personal services that's almost a $28,000 savings. For the most part these were a one-time savings in 2004. With Mike's position remaining vacant until April we should see some more savings in personal services in 2005, but not $28,000. For contractual services we saved $9,900 at Collindale. Jerry reviewed the cost of utilities for the year. He stated that electricity was $35,320 and we had originally budgeted $28,000. Collindale is costing more than anticipated because the Clubhouse is open from morning until night, seven days a week. The Budget was put together in the spring of 2003 and we weren't sure what the exact costs would be. We had $8,700 budgeted for natural gas and $18,000 was spent. Again, we were over budget because of the hours open at Collindale. Jerry stated that for commodities we saved $6,100. We saved a total of $44,000 at Collindale in 2004. At City Park Nine we saved $4,900 in personal services and almost $23,000 in contractual services. The biggest part of that was a $3,000 saving due to Dave McCleave's bid being less than we had budgeted. We saved in lease purchase principal and interest because we didn't purchase any equipment last year. We saved $7,200 in commodities. We saved a total of $35,200 at City Park Nine in 2004. At SouthRidge we saved $18,566 in personal services with half of that in seasonal salaries. We didn't fill those positions when they were terminated. For contractual services we saved $25,600, with $3,520 of that in banking services because of a lack of business, so we didn't have as many fees to pay. We also saved $4,300 in commodities. A total of $48,500 was saved at SouthRidge in 2004. In Golf Administration we saved $17,000 in personal services because of the change over from Stacy to Dawn. We had the vacancy for about three months. Also there wasn't any salary improvements paid in 2004. $3,400 was saved in contractual and $795 for commodities. A total of about $22,000 was saved. If you add it all up we saved a total of approximately $150,000 in 2004 for City Park Nine, Collindale, SouthRidge, and Golf Administration. Grant stated that he felt this information that Jerry provided was very helpful and that he would also like to see something several times a year. He feels that with this information he can better answer questions that he is being asked in regards to what is being done to save money. Jerry said that he would provide these documents quarterly. After adding everything up it looks like we had a $27,000 surplus at the end of the year. Jerry stated that we are slightly ahead and hopefully going into 2005 with the fee increases we made and with additional marketing efforts we'll do better financially. Grant mentioned an article the Board had previously discussed stating that Greeley was planning to give an incentive to their Golf Courses. He was wondering if that could be a possibility for us. Jerry stated that Greeley looks at their golf operations differently and is doing better financially with their Sales Tax growth, and with other things hanging over our heads like the Sales Tax issue on groceries the chances are pretty slim to none. Marty Heffernan, Director of Cultural, Library, and Recreational Services (CLRS), mentioned Golf Board bfinutes January 19, 2005 Page 3 that the City of Fort Collins has previously had double-digit growth for many years and we had been doing very well with that growth. Over the past three years however, that's changed and now General Fund Revenues are down almost $6 million dollars and that's just associated with the economy. Marty stated that he has had to make a lot of cuts to CLRS. With all of those cuts being made there just isn't any money to do what Greeley has done and the problem is that we don't have a safety net so we're pretty much on our own to make it work. Jerry mentioned that a few of the Board members had previously asked what would happen if we had a major problem, like a pump going out. He stated that is part of the reason we are keeping Mike Enright's position vacant at least until April. Up until 2001 we were carrying about $400,000 in Reserves. Jerry said that the majority of that has gone away with the revenue shortfalls. Jerry said the Annual Report explains why we are at this point. Grant stated that the fact Golf is an Enterprise Fund is probably a good thing because we're not on the list for those cuts being made. Marty mentioned that he has been struggling with having to cut about 2 million dollars out of the CLRS Budget because of the Grocery Tax issue that will be voted on in April. He stated that if this issue passes there would be 2 million dollars taken from the General Fund in 2005, 4 million in 2006, and 6 million the year after that. Since Golf isn't a part of the General Fund we aren't a part of the cuts being made. Larry Buckendorf stated that he felt Golf was better off not being a part of the General Fund because if we're not in the game we can't lose, so in the long run we're probably better off. Marty stated that Golf is better protected being it's own enterprise considering the environment that we are currently in. Jerry reminded the Board that there are cities that do take money from their courses. In many Special Districts Golf is their main source of Revenue. Dan Preble asked Marty if it's a good possibility that the Grocery Tax would be voted down. Marty stated that it's a tough call and that the initial reaction is that it sounds like a good idea, but then when there's more education about it people tend to change their minds. SouthRidge Golf Professional Dale Smigelsky asked Marty if he was limited to what he could inform the public. Marty explained that the Campaign Finance Act doesn't allow the use of any taxpayer dollars to be used to campaign for or against an issue and we are not allowed to use taxpayers dollars to try and tell people how to vote. He said that City employees are allowed to campaign on their own time using their own resources. Staff Sateested 2006/2007 Golf Fees and Charrees Jerry stated that he would like to discuss the Staff Suggested 2006/2007 Fees and Charges with the Board so he can start preparing the Budget that is due in May. Jerry discussed a memo with the Board showing where he would like to go with this. He would like to bring the Surcharge up and to make a bigger differential between Prime Time and Non -Prime Time rates on the 18-Hole Green fee. Our 18-Hole rates are already in the lower 10%, however our 9-Hole rate is at the sixtieth percentile. He also mentioned that during the golf staff meeting they discussed modifying the golf cart rates. It was suggested in the meeting to combine the Single Rider rate and a Medical Single Rider rate so there isn't any confusion. David Johnson stated that he likes where the staff is going with this. Larry Buckendorf would like to encourage ways to increase revenues without making a big hit on the expense side, and he feels the Board has done what they needed to do and increasing the 18-hole rate is not unwarranted. Dan Preble asked if keeping the 9-Hole rate down would keep us in a good percentage area. Jerry said yes and mentioned that he felt it was a good idea because we can market and sell it. Jerry has read publications that state more people aren't playing because of time restraint. People are playing 9-Holes more because of this. Golf Board Nfinutes Jamuuy 19, 2005 Page 4 Collindale Golf Professional Jim Greer stated that 63% of the rounds played nation wide are 9-Holes. David Johnson asked if the Board was suppose to have a motion. Jerry said that was up to the Board if they feel it's the direction they would like to go. Jerry also mentioned that we would have to hold a public meeting. Grant Sherwood asked what the process was and when the time frames were. Jerry stated that January, February, and March would be the Board discussion times, April would be the public meeting, and either April or May would be when the Board would make their recommendations to the City Manager because the Budget is due by May. There was a motion made by Larry Buckendorf, seconded by Grant Sherwood, to approve the Staff Suggested 2006/2007 Golf Fees and Charges. The Motion was approved unanimously (7:0). Jerry feels that it's a very reasonable approach to what we were trying to accomplish. Most of the other courses around the Front Range are also raising their rates so even with our increases our rates will still remain lower than most. Jim Greer stated that when people come in they can't believe the fees we are charging, especially people from out of town. Larry mentioned that he couldn't remember playing golf in Northern Colorado for under $30.00. David Johnson stated that if you do find one its probably not one you would like to play, they are under $30.00 for a reason. In Larry's opinion the City's courses are in great shape. Dale Smigelsky mentioned that Jerry had to cut things last year that he can't cut every year. Jerry stated that he now has to purchase a tractor at SouthRidge that he didn't intend to buy. Jerry also mentioned that we would be buying new Single Rider golf carts. Dale said Superintendents are doing the best they can to keep things running. It has also been Dale's experience that people can't believe our rates, not only people from the State of Colorado, but especially the people from out of state. Larry feels that it is a good thing to raise the rates while we can when we're not so far behind. Jay Kammerzell asked what kind of marketing has been going on. Jerry mentioned that we have tried a lot of new things over the last few years. We have tried providing coupons and that route has proven to not work well. We have also tried different publications, we sent out a mailing to all 1,100 members of the Chamber of Commerce, and we are a member of the Visitor's and Convention's Bureau. Dale mentioned that we are going to try and attract people from Laramie and Cheyenne, Wyoming. Jerry stated that he has advertised with KFKA radio station and KGWN TV. Jerry stated that the Golf Professionals have tried to attract tournaments and leagues. Leagues are now being encouraged at Collindale. Jay asked what was being done to encourage more leagues and if we could start sending out mailings to the larger corporations. Jerry stated that the mailing we sent to the Chamber would have included a lot of the larger corporations in Fort Collins. Jerry feels that the Chamber tournament we scheduled this year will include a lot of people who haven't played at Collindale before so it may attract new players. Jerry has asked the Golf Professionals to go out and to try to encourage more businesses tournaments. Jim Greer stated that since the "Tiger Woods effect" is gone we are loosing more Juniors so he's trying to attract them. Jim stated that with the revenues being the way they are, we're trying to accommodate every one that wants to play. SouthRidge has had a 60-player league on Mondays and has started another 60-player league on Tuesdays. Jim asked the Board to keep in mind that they like to have the Courses open for the people who walk- on because if you keep telling them there's leagues and tournaments they won't come back. Golf Board Nfinutes January 19, 2005 Page 5 Collindale Assistant Golf Professional Pat Finnegan had a couples league and would like to have more mixed leagues. Collindale would like to create a more family environment. Jim would like to market Golf as a more social and fun activity. He feels some players really don't like it being referred to as a tournament or league, instead they prefer it as an outing. Jerry mentioned that the Golf Professionals now give out coupons after lessons to try and attract new players. Jerry mentioned a Golf Inc. Magazine article that stated the supply is growing faster than demand and that the mid -to -upper fee Courses will struggle due to competition and discounting. Jerry said that even though the Tiger Woods phenomena is dead, and a lot of the Junior programs are no longer proving to work, we have a commitment to the Junior program and we don't intend to change what we're doing. Board Members and Staff Comments/Reoorts ♦ Dan Preble asked if the snow had melted. Jim Greer stated that we would hopefully open on Friday at Collindale, but that the maintenance staff prefers to clean up first. Jerry mentioned that SouthRidge would be open on Thursday. Adjournment: On a motion by Jay Kammercell, seconded by Lauren DeRosa, the Board unanimously voted (7:0) to adjourn at 8:10 p.m. Meetine Attendance Board Members Larry Buckendorf Lauren DeRosa David Johnson Jay Kammerzell Dan Preble Grant Sherwood David Thilmany spectfully submitted,���>� Dawn Worth Administrative Aide Staff Jerry P. Brown Dawn Worth Marty Heffernan Jim Greer Dale Smigelsky Guests Pat Finnegan Deryle O'Dell