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HomeMy WebLinkAboutGolf Board - Minutes - 10/21/1998I CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES GOLFBOARD MINUTES: Regular Meeting of October 21, 1998 CITY COUNCIL LIAISON TO THE BOARD: Councilman Bill Bertschy STAFF SUPPORT TO THE BOARD: Jerry P. Brown, Manager of Golf at 221-6350, and Alyce Nierman, Administrative Aide. BOARD CHAIRPERSON: Mindy Markley at 224-9102 (w) or 226-2700 (h) CALL MEETING TO ORDER: The meeting was called to order at 7:00 p.m. by Chairperson Mindy Markley. AGENDA REVIEW: There were no changes to the printed agenda. ITEMS OF NOTE: Jerry P. Brown reported that the City Park Nine ditch Ordinance was passed by City Council. The ditch company is currently in negotiations with contractors, and the work should begin around November 1. APPROVAL OF MINUTES: It was moved by Mike Sanders, and seconded by Henry Fry, that the Board approve the minutes of the Regular Meeting of September 16, 1998, as presented. The motion was approved (8:0). Byrd Curtis arrived after the vote was taken for approval of the minutes. CITIZEN PARTICIPATION: There was no citizen participation. RECOMMENDATION ON PROPOSED COLLINDALE SNACK BAR CONCESSIONAIRE Henry Fry reported that the review committee met with Collindale Snack Bar Concessionaire Kevin Wilcox and had a tour of the facilities at Collindale. The issues were covered and the committee is concurring with staff recommendations that we offer a one-year extension of the contract of the snack bar concession with the option at the end of one year to extend an additional year. The agreement being recommended would actually bring in less revenue for the City, but it will be more in line with the percentage being collected in the contract with the snack bar at SouthRidge, which is about 10%. The revenue from the Collindale Snack Bar would be approximately $11,000 annually. Also, part of the package would change some of the hours of operation, and the committee had no problem with the recommended hours. The Review Committee is recommending that the Golf Board approve the memorandum from Staff dated September 1, 1998. At this point, the Board needs to take a vote on whether to extend the contract to do business with the Caddy Shack for 1999 with an option for the year 2000. Frank Blanco asked for a clarification of the new hours. Kevin explained that early in the year, until school gets out, and in the fall through September or October, the snack bar would open at 7:00 a.m. and offer minimum coffee service. Most often during these times no one used the snack bar until around 10:00 a.m. for meals, so it was suggested to offer coffee, with full grill service after 10 o'clock. If a demand comes for full service, Kevin stated that he would be the first one to bring back early hours for full service. Henry noted that the phrasing in the agreement gives Jerry discretion on modifying hours of operation. Henry Fry moved that the Golf Board accept the recommendation of Staff and the Collindale Snack Bar Review Committee and recommended the extension of the existing contract to conduct business with the Caddy Shack for 1999 with an option for the year 2000. Bill Rutledge seconded the motion, and it was approved by Board vote (9:0). DISCUSSION ON ENTERPRISE FUND STATUS OF THE GOLF FUND Mindy Markley noted that at the close of our last Board meeting, as a group we were considering writing a letter to City Council and the City Manager. Bill Rutledge was going to write a letter for the Board to discuss. However, prior to this meeting he felt the need to express his views on a personal level. Byrd Curds stated he would like to see the Board follow through on this issue and complimented Bill for the letter he wrote. Frank Blanco echoed these sentiments. Having been around and seeing what is going on, Henry Fry believes that changing the Golf Fund status would be a big step back as it puts us back in one big group fighting for the same money. Further, knowing Council members' feelings that rank golf as a low priority, this would be a big disservice to the golfing community. Frank asked if, when the Golf Fund gets to a 100% Enterprise Fund, the Board would have the power to hire and fire employees? Frank wanted to know if we would be able to hire a Golf Manager? Tom White said we already have a good Golf Manager. Jerry stated that Enterprise Fund status would be for financial purposes only, like Utilities. Any changes would have to be approved by City Council. The City Manager would remain responsible for personnel related actions. Mindy noted that since the last meeting she has researched this subject and spoke with people who were serving on the Golf Board when the Enterprise Fund was previously discussed. These people felt that the percentage the Golf Division would receive from tax funds would be minimal. Mindy personally would love it if the Golf Fund could get some tax dollars, and feels that is how it should be, but when we start looking at the big picture we also need to look at trends. Receiving additional tax dollars would be great but, we could lose other control. Bill stated that he doesn't mind losing control if Golf received 55% income vs. expenses similar to -2- the Lincoln Center. Bill further stated he agrees with Byrd in the statement that the Golf Board does not have control other than expressing our views. Golf should also be considered a recreational facility, and to compare Golf to Utilities is crazy. Bill added that when he talked to former Parks and Recreation Director H. R. Phillips, he heard that Mayors, City Managers, and City Councils have never been friendly towards Golf and that lack of support was perpetuated in the following years. Mindy agreed, but added that people she spoke with who served on the Golf Board in the past warned that we need to make sure we know what we are getting into. The scenario that curbed their thinking came when they viewed the City budget at that time and saw where Golf was ranked in priority. It was felt that any percentage gained in funding might not be worth the effort. Mindy asked Jerry if he would explain what we could lose if we were to receive support from the General Fund similar to other recreational programs. It was only supposition, but Jerry stated his feeling is that Golf would not receive any additional contribution. If we meshed in with Recreation, it is more likely that we would not receive any more than what is currently given. In discussing this issue with other municipal golf facilities around the country, Jerry found that the golfing revenue is helping to support other recreation facilities. Frank asked how this might relate in fees with other recreation uses? Jerry stated that ice skating takes in a lot of revenue during public skate times, but in youth sports, if all kids had to pay their full costs, there would probably not be a JAA sports program. Many recreational programs collect fees to cover almost all of their expenses. Most youth sports are subsidized and if low income standards are met, people can participate at a reduced fee. The two areas that don't pay for themselves are all full- time recreation staff (35+ people) that is paid for fully by the General Fund, and the other is the cost of acquiring and developing a site or location for play fields or facilities. The funds to acquire and construct most sites like EPIC and the Senior Center were approved by voters. Rolland Moore Park was built in 1984 and the $3.1 million cost for constructing this facility was approved by the voters. In the time Jerry has been with the City, the Golf Fund has not had much sympathy/empathy from City Council. The Golf Board in Loveland used Fort Collins as an example of golf receiving additional funding from the General Fund. At that time Loveland even had a golfer sitting on the Council, and the request for additional revenue was not approved by their Council. Information received from around the country shows that golf has to earn full operating and maintenance costs. Jerry noted that as an Enterprise Fund there are more legal protections on revenues. Enterprise Funds cannot directly subsidize other City services. Tom White asked if the total was achieved, what would it take for City Council to change us? Jerry noted that City Council would be unable to change us, it would have to be through a majority vote of the people before Golf could be established as a full Enterprise Fund. In the Fort Collins codes, the definition of an Enterprise Fund is at least 75% self-supporting, and the Tabor Amendment defines an Enterprise Fund as at least 90% self-supporting. Bill asked what City services could qualify other than Utilities? Jerry noted that Cemeteries or Transportation could potentially meet the qualifications of an Enterprise Fund in the future. Bill is correct in understanding that Utilities is the only other Enterprise Fund at this time. Henry -3- asked if we have the option as an Enterprise Fund to put a bond issue before the voters? A bond issue could not be placed on the ballot by the Golf Board directly. We would have to request approval from City Council and they in turn could place an issue on the ballot. Jerry added that if we present ourselves separately as the Golf Fund, we would not be in direct competition with other departments and projects on a City priority list. Mindy clarified that it could become a matter of golf vs. skating rink. Jerry guessed that future tax requests would include a new library, new performing arts center, and possibly a new police station. The last sales tax vote included the acquisition of land for these facilities. Jerry clarified that the Courthouse was a single item placed on the ballot by Larimer County. Bill asked where the funds came from for the Senior Center? The point he wanted to make was that other items came together and piggybacked on each other to get the desired facilities. Different election options were discussed in detail. Mindy brought the discussion back to the Enterprise Fund status of Golf. We still should determine ways to raise more money, but not lose our Enterprise Fund status. Frank asked how much influence the City Manager would have over fees if Golf were to reach a full Enterprise Fund status? Jerry said the same as now. Bill asked if Golf were a full Enterprise Fund and we had some major capital expenses, would we be in a more advantageous position to go after the needed funds? Jerry replied probably yes! Tom DeGrand noted that some comments he has heard is that being an Enterprise Fund is bad, but he sees remaining an Enterprise Fund as positive. The potential downside of lumping Golf with everyone else and if we generate $2 million in revenue, the potential is there to only get back $1.5 million for golf needs. Jerry noted that this scenario is what is happening with golf courses throughout the country. Mike Sanders commented that Sonny Lubick would love to keep football money with football, but he puts money into other sport's financing. Bill disagreed with that comment. Bill stated that if we are going to be a group that reflects public sentiment and reflects management of golf, that we need to take the initiative to either raise fees to the point where the cost becomes prohibitive, or take the issue to voters and ask for money. Mindy observed that the thoughts stated were agreed to years ago, but every time fees and charges are reviewed we seem to return to the same discussions. Mindy believes that is where Tom DeGrand is coming from. We do not want to go back, but go forward. Mindy stated her belief that we need to be more aggressive as an Enterprise Fund in acquiring land and improving our courses. Bill observed that if the Board is going to do something to enhance golf we need to take another avenue. Putting other discussions aside and considering the Collindale Clubhouse only, Mike Sanders posed the problem of how we could entice someone to build the clubhouse and then ask them to wait until the money was released before they were paid! The initial problem is cash flow. He added that future golf needs in this community will more than likely be met by private business. Byrd asked if there is a down side to this, and added that Link-N-Greens is a private business and appears to be doing well and their fees are reasonable. Mike Sanders noted that the biggest restriction from groups bringing packages for financing is there is no guarantee for play during certain months. He echoed statements made earlier by Tom DeGrand. He sees more positives in having some control, and does not know of anyone in this -4- room who would be willing to give up their paycheck to let Washington tell them what to do. Bill asked who Mike Sanders would get to build the Collindale Clubhouse? Mike Sanders stated that many potential contractors could build it and turn over the keys after 20 years, guaranteed. This was mentioned two years ago, but we have not been able to go forward. Mindy stated that the issues we face as a Board are gaining stability, consistency and planning. Jerry has been working with land acquisition issues at SouthRidge, but the Board spends six months dealing with repeating issues that take away our energy. We as a Board need to decide how to come together as a whole to get things done. Mike Sanders wondered that when considering our capital needs, he asked himself if he would be willing to pay $3.00 per round more for a brand new Clubhouse? The older golfers may not agree to paying more as they may not see the benefit, and the younger golfer might say alright as they will probably use the facility for the next 20 years. Tom White commented that the financial picture of golf in Fort Collins seems real rosy. He views the growth in Fort Collins as a way to fill more of the open time slots, and the only down side would be the weather. The Golf Fund is in a great position to build towards these capital acquisitions. Jerry noted that our current revenue flow is positive, and we have the added bonus of good weather. By budgeting for the average, we have been able to keep ahead of the game. Frank stated that the golf fees have been raising every year, and this will price many people out of the game who are on limited incomes. Mike Sanders noted that almost everyone with limited budgets receive some cost of living increases. His wish is that additional fees would have been collected starting 25 years ago and that would have created a surplus at this time. He added that this is a situation of "pay me now or pay me later". Mindy commented that she would like to leave Golf Fees alone for one year. The Golf Board should take the next year to be creative and try to accomplish ways we can acquire money to meet our future needs. Jerry added that the system we have set up should keep a positive cash flow. Henry Fry moved that the Golf Board reaffirm their previous Board vote from several years ago that the Golf Fund remain an Enterprise Fund until the SouthRidge Debt is fully paid, and that we continue working towards becoming a full Enterprise Fund (no later than January 1, 2003). Tom White seconded the motion. Frank would like to have a written statement on what freedom and choices we as a Board would have. Currently we can't hire, fire, or set wages for golf staff. Byrd questioned why he would want to vote on this issue if he is not sure he wants golf to remain an Enterprise Fund? Henry noted that he is only moving that the Board reaffirm the direction that was chosen and voted on several years ago. Mike Sanders stated that if the Golf Fund has the same budget as now, and if a portion of our revenue goes away, fees would have to be increased to meet operating expenses. Jerry restated that this is what we are now, and the Board previously voted to keep the status quo until the SouthRidge debt is paid. Mindy observed that the discussion has been very extensive on this topic and called for a vote on the motion. The motion was approved by a vote of 6:3. Frank Blanco stated that he does not -5- know enough about this issue and that is why he voted against the motion. Byrd Curtis and Bill Rutledge were the other votes not in favor of the motion. Jerry stated that at the November meeting he will be presenting the proposed 1999 Work Plan. Tom White asked if there was an update on the additional holes at SouthRidge? Jerry reported that before going on to the next step we want to go through Conceptual Review and see what problems we may face. Natural Resources requires a 100' buffer between wetlands and any development and measuring the 100' starts from the edge of the wetlands. Bill Rutledge suggested writing a letter to the approving authority. If a letter is written to them, you can usually get a variance. Mindy Markley shared an observation regarding the staff meeting held once a month with the superintendents, golf pros, and staff. She started attending the meetings with a "Paula Woodward mentality" and over time has changed her opinion. Mindy has learned an incredible amount during these meetings and wanted to state that we are exceptionally blessed with intelligent, passionate, dedicated professionals at our courses. Even talking simply about the irrigation system at Collindale, Doug Evan's comments leave no doubt in her mind he will go out and find the best system for the least cost. Bill Rutledge suggested that our superintendents would probably be the best spokespeople when going before City Council on the wetlands presentation, etc. • Jerry stated that the bids were opened on the irrigation project at SouthRidge. We budgeted $150,000 for this project, and it appears the project may come in around $120,000 over a two-year period. Randy Bonneville and his crew should start working on their part of the project in November. • Jerry reported that the City is pursuing Joe Nance for the debt. We should know within 60 days where we are in steps for collection of these funds. Up to this point we have been trying to collect through the City's process and collection agencies. We are now moving into the legal arena for collection of these funds. • Mindy reported that the patio/clubhouse improvements at SouthRidge are nearing completion. • Henry Fry reported that the Collindale Men's Association sent a team to the State Pub/Links Championship and WON. This tournament was for public golf course players and the team members were Roger Vanderslice, Brian Senk, David Hunn, and Shane Houska. • Jerry noted that for the third year in a row, City Park Nine has been rated the best in the state. -6- Jerry reported that the incident last Thursday at City Park Nine occurred during a Junior High School program, and the City was not involved in the instruction. On Saturday, the father of the young girl who was injured questioned Assistant Golf Professional Matt Bryant about the events. His main concern was guidance of the people in charge. This incident was also discussed further at the monthly golf staff meeting. The golf pros at our courses will be meeting and establishing criteria and protocols on events and instruction at City Golf Courses. Mindy noted that Matt was exceptional in working with this man and during the incident, and added that his good deeds should be acknowledged. Mike Sanders suggested sending a coupon for dinner along with our thanks. ADJOURNMENT A motion to adjourn the Golf Board meeting was made by Mike Hall and seconded by Tom White. The motion was approved (9:0) and the Golf Board meeting adjourned at 8:50 p.m. Respectfully submitted, Alyce Nierman, Administrative Aide MEETING ATTENDANCE Board Members Staff Citizens Mindy Markley Mike Sanders Tom White Frank Blanco Byrd Curtis Tom DeGrand Henry Fry Michael Hall Bill Rutledge Jerry P. Brown Derek Cordova Jim Greer Kevin Wilcox Alyce Nierman Claire Nelms