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HomeMy WebLinkAboutGolf Board - Minutes - 02/17/1993CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES GOLF BOARD City Council Liaison to the Board: Councilman Dave Edwards Staff Support to the Board: Jerry P. Brown, Assistant to the Director/CLRS; and Alyce Nierman, Golf Division Secretary MINUTES: Regular meeting of February 17, 1993 The meeting was called to order by Board President Al Bednarz at 7:40 p.m. Agenda Review: There were no staff changes to the printed agenda. Consider Approving Minutes of the Regular Meeting of January 20. 1993 Al Bednarz commented on specific words saying Golf Board "approved" or "decided" and feels wording should be "recommended" or "proposed". Hank Hoesli suggested changing wording in the minutes to indicate the Board "recommended" rather than approved or decided. Al Bednarz observed that is has been pointed out very clearly that the Golf Board makes recommendations. Jim Doyle commented that when a vote is taken, the Board makes a decision to recommend. Al Bednarz further stated that the ultimate decision is made by City management or City Council and the Golf Board serves as an advisory group. The minutes sound like the Board is actually making the decision. Mary Hodge agrees that we should have the minutes read the Board made a decision to recommend. Jerry P. Brown responded that in the future staff will use language reflecting these thoughts. It was moved by Jim Doyle and seconded by Tom White that the minutes of the last regular meeting of the Golf Board, January 20, 1993, be approved as submitted. Motion Carried (9:0) Citizen Participation No citizen participation at this time. Round Table Discussion on the Role of the Golf Board Al Bednarz has had discussions with Councilman Dave Edwards and Jerry P. Brown and everyone is anxious to get into a discussion on the role of the Golf Board. He is unsure what we can do at this point, as he does not want to impact the City in any legal matters. Jerry reported that Mr. Sharp has filed an action with the district court to appeal the decision of the City. The appeal is what the City is dealing with at this time by addressing the allegations made by Mr. Sharp. This process can go back and forth until the court makes a decision. It is possible that things said by the Golf Board can be used in the case. City Attorney Steve Roy has written an opinion that the Board can talk about this issue, but care should be taken in what is said. Jerry brought the City's Municipal Code Book to tonight's meeting to be used as a reference if needed by the Board. Copies of the section from the code book relating to the Golf Board were distributed previously. From a staff prospective, discussion tonight could center on the Board and their overall role. Golf Board Minutes February 17, 1993 Page 2 As Jerry was still under investigation, he refrained from making many comments unless asked specifically about areas of concern. It was moved by Hank Hoesli that this agenda item be tabled until the investigation report is received from Susan Griffith. The motion was seconded by Mary Hodge. This motion was approved (7:2). The two dissenting votes were cast by Jim Doyle and Al Bednarz. Jerry stated that the probability is that the Board can discuss this issue at the March meeting. Jerry asked if there was information that staff could provide at the March meeting to assist the Board? Larry Glass would like to see Dave Edwards and Mike Powers present at the March meeting. Al speculated on the possibility that this topic would be tabled again. It is Jim Doyle's view that this particular issue is only a minor part of the Golf Board's role. The role of the Board could be discussed without bringing into play specifics from the SouthRidge issue. Al commented that the Board could look at the process and what the Board could have done differently. Jim is not surprised that on occasion the City does not pay attention to the Golf Board or overturns a recommendation the Board might make. He feels this has occurred with the initial Board recommendation regarding the sale of SouthRidge and our report regarding the Community Value of Golf and how golf might relate with the Recreation Fee Policy. Al asked if the Board wanted to set an agenda for this discussion? Larry thinks an overview role of the Board and the issue with Mike Powers and Derek Cordova is a separate matter. Roger Sample commented that City Council has in the past ignored recommendations made by the Golf Board. We need to get on with this. Roger remarked that it is a shame Dave Edwards will be going off City Council as input could change literally within one month. It would be nice to have Mike Powers and Steve Roy attend the March meeting. Hank feels that having staff present will enable the Board to get answers to questions as they come up, and the meeting will be more productive. Al does not want to get into a discussion of the past. Mary Hodge agreed with these statements and thinks it is wise to wait. Waiting for one month will not make a significant difference. If we got into a discussion of this topic tonight it might be difficult to separate issues. Jerry will invite Mike Powers, Steve Roy, Dave Edwards and Jim O'Neill to the March Golf Board meeting. Hank feels that having Steve Roy present will enable us to discuss this issue and be able to stay within legal bounds. Al would like to have a meaningful discussion at the March meeting so that people we ask to attend will feel they can give us answers we want. Mary felt the topic of"Discussion of the Role of the Golf Board" might be too general. Henry Fry thinks the role of the Golf Board is pretty well set down in the code book and feels the conflict we are currently embroiled in is the SouthRidge selection and related process. Henry believes that is where the problem lies and the other areas seem all right. Larry concluded that where Henry is going is that the Golf Board role is pretty well defined. He further felt there should be some explanation on when the city follows recommendations and when recommendations are not followed. Larry does not want to sit here and discuss Golf Board Minutes February 17, 1993 Page 3 the over -budget situation of a bathroom project at City Park Nine. Jerry has reviewed Board minutes from 1979 forward and could find only five Golf Board recommendations since that time that were changed by staff or Council. The last three differences have occurred in the last two years. Roger referred to the recent action regarding the sale of SouthRidge where the Golf Board was right on the point with their recommendation not to sell and City Council voted differently. Larry asked what happens with a recommendation? What is Jerry Brown's procedure? What is the actual process? Jerry said each issue is different. For example, the smoking issue was approved by a vote of the people and city management was the enforcement agent for City facilities. We all agreed that the Board and staff would decide what we do at golf courses. Jerry doesn't feel there is a clear road map for all issues; SouthRidge is different from the smoking issue which is different from contractual issues. Hank wondered what if staff and the Golf Board don't come to same conclusion as to the final authority? Henry thought perhaps we could list the role of the Golf Board some way without reference to the SouthRidge issue as an agenda item. Maybe the role of the Golf Board could be taken point by point as it is stated in the City Municipal Code book on a level that doesn't get into specific issues. i.e. what is the role of the Golf Board when the City Manager directs us to make a decision on an issue vs. daily operating decisions from Jerry Brown? Larry requested that each Board member get a list of items they want to discuss to Al within the next week. Al suggested that a couple of Board members review the ideas submitted and compile a list for discussion at the March meeting. Al and Henry agreed to be a committee of two for this purpose. Jerry said in our work plan for the February meeting, there was to be a discussion on the possibility of implementing surcharges as there are some major projects coming up in the near future. Last year discussion centered around possible surcharges to cover major capital improvements at the respective courses. The passage of Amendment 1 has probably changed how the Golf Fund will be dealing with this. The City's Finance staff has been looking at the interpretation aspect and how it has affected the City. An issue of note is our ability to lease purchase capital equipment. In the City's lease purchase program there is equipment ranging from cars to mowers, from all city departments. Historically equipment was put out to bid for lease purchasing. Money from the Golf Fund is put aside to cover principal and interest. A provision of the amendment states that multiple years of debt is not legal. As banks don't want to be in the business of taking back police cars, mowers, etc., lending institutions have backed out of their bids throughout the state of Colorado. The City is currently trying to figure out how to acquire this needed equipment. Since the Golf Fund is an Enterprise Fund, we are on our own. At this point, we Golf Board Minutes February 17, 1993 Page 4 are unable to lease purchase, and don't have purchase. If this is the policy now and in investigate how we can obtain equipment needed the cash available for a full the future, we will need to it the courses. Jerry stated the possibility exists that vendors themselves will offer us lease purchase packages. One possible problem is that these contracts may not be legal within the city code. If they are legal, each contract would need to be presented to City Council for approval. Most of the Golf Fund equipment purchases are for lawn care equipment. If we are unable to use a program offered by the vendors we could be in a very difficult situation. Jerry shared this information with the Golf Board members to make them aware of the situation and how the 1993 budget is being affected. The Golf Board will need to help on deciding the priority of all our capital needs; basically a new priority system. In addition to an expenditure cap, there is a revenue cap. All percentages for increases are based on the CPI (Consumer Price Index). Roger Sample explained CPI and how the growth factor is also tied into the calculations in establishing the percentage increase each year. At this time, we don't know what Fort Collins will get as far as a growth factor. We maybe have between 4% and 7% in revenue. All revenue for the full City is tied together. The only exceptions would be federal grants, gifts, or enterprises. 1992 becomes the base year for increase purposes. If revenue exceeds the percentage maximum, there are two things to do; either refund the money or have a vote of the people on where to spend the excess. City Council will ask voters in the April City election whether to separate Light and Power and Water and Sewer from other City departments. These two Utility Departments comprise over 50% of the total City's budget. Any increases in expenditure must follow a similar formula. Basically what comes in can be taken out. The Golf Fund may be in a favorable position now, but the future could change things. Roger questioned since the Golf Fund is an Enterprise Fund, would it be considered separately from other City departments? Jerry informed the Board that the Golf Fund does not qualify as an Enterprise Fund by current Amendment 1 definition, and he doubts the City will exclude golf. Roger commented that since the City has already made the decision that the Golf Fund would be combined with the General Fund, this would be a great item to have on the agenda for discussion in March. Jim Doyle's understanding is that if a surcharge is established, it cannot be carried over from one year to the next; and can't be built up as a reserve. Jerry elaborated that the Golf Fund could make that much money, but somewhere on the scale there would have to be another area taking in less revenue. Hank Hoesli asked who would make the decision on who does what? Jerry responded that is the question of the day, and it will probably be left up to the new City Council. At some point in time Council will have the full picture. The Golf Fund will be competing with all other services that the City offers. Al asked how this affects the plans made for this year? Jerry stated the Golf Fund probably has to spend all the money. If this amount is not spent, our base goes down. The superintendents at each course have been informed that everything Golf Board Minutes February 17, 1993 Page 5 is subject to change. Jerry is trying to get ahead of the game before directions are received from city management. Hank then asked what can be done until we hear from management? Mary Hodge observed that it looks like we will be reviewing each item as it comes up. There is no telling what is, right or wrong at this time. Tom White asked what is the current status of golf fund reserves, and are these funds even available for our use? Jerry doesn't know at this time. However, he will check into the Golf Fund reserves and whether we can use this money. We may be able to cut back our revenues to use the reserves. Jerry will try to keep the Board informed as situations arise. Al commented that we may be surprised about finance items. Al then summarized the discussion by stating we are in a wait and see mode. Other Business -- Regarding the bid for the SouthRidge Restaurant/Snack Bar Concession; SandTrap was contacted to see if they would increase their offer. SandTrap came up, the City went down, and an agreement was reached. Information was distributed to the Board and Jerry asked for their comments. There were no comments. -- Collindale Snack Bar revenues are still being researched at this time. City Controller Dave Agee will be reviewing the internal process and will probably go outside for an independent audit of the expenditures at this concession. Roger Sample commented about the letter from Bill Dixon, in particular item 5 and 6 as to how they obtained increases in revenue were not impressive. Maybe the City could work with Bill Dixon to find out what those controls were. It seems it would be wiser to state things in black and white, by having a flat fee and not using percentages. Jerry has asked the City Finance staff to develop a checks and balances system; maybe use those planned by Costa/Campbell. 1993 starts a new era. We are now getting a percentage from two golf pros and two snack bar concessions. A better system for reporting needs to be developed. Hank Hoesli asked if in the future contracts could be changed and a flat rental fee be established? Jerry stated this is a good question, and we now have time to review our process as these contracts will hopefully be in force for the next three years. Dave Agee asked if the accountants currently serving on the Board would be willing to work with the City to help come up with a checks and balances system? -- Mr. Richard Ward has written another letter to City Council regarding the smoking issue. Jerry stated that the snack room is the only place where smoking will be allowed at the Collindale Clubhouse. -- Mayor Kirkpatrick wrote a letter in response to a letter received by Mr. Al Golf Board Minutes February 17, 1993 Page 6 Pettine. Mr. Pettine's letter was not the only letter received by the city. Jim Doyle doesn't like the content of Al Pettine's letter, but prefers this to people who send unsigned letters. Hank Hoesli observed that Mr. Pettine appears to be operating with some bad information. Jerry commented that people are allowed to make whatever statements they wish under the first amendment. Each individual has a right to their opinion. Al Bednarz felt that the mayor's letter in response was just fine. Hank suggested that in future response letters we request people attend the Golf Board meetings to obtain information first hand. -- Al Bednarz expressed his concern with all the recent developments and Amendment 1 whether or not golf should be privatized; and what is in the best interests of the golfers in the long run? Hank Hoesli agreed that this should be investigated; also might look at an outright sale. Comments were made by Board members how new municipal courses that opened in mid 1992 were going to fare under Amendment 1. - Jerry asked if Board members had any problems with the 1992 annual report as presented to them. Board members accepted the 1992 Annual Report as submitted. On motion by Larry Glass and second by Tom White the meeting adjourned at 9:30 p.m. Respectfully submitted, Alyce Nierman Secretary III Golf Division Meeting Attendance Board Members Staff Guests Al Bednarz Jerry P. Brown Fred Frantz Jim Doyle Randy Bonneville Henry Fry Jim Greer Larry Glass Joe Nance Mary Hodge Alyce Nierman Hank Hoesli Cindy Roper Roger Sample Yom White