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HomeMy WebLinkAboutGolf Board - Minutes - 10/16/199111 • CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES GOLF BOARD MINUTES: Regular meeting of October 16, 1991 The meeting was called to order at 7:30 p.m. by Board President Roger Sample. Jerry P. Brown reported that Dan Preble and Al Bednarz would be unable to attend tonight's Board meeting. Jerry also announced that City Council appointed Jim Doyle to fill the vacancy on the Golf Board. Jim was also unable to attend tonight's meeting. Agenda Review: Jerry requested Item 6, Review and Approval of 1992 Golf Fees and Charges, be considered before discussion on Community Value of Golf. The change in agenda order was approved by Golf Board members present. Minutes: On motion by Tom White and second by Mary Hodge, minutes from the regular meeting of October 2, 1991, were approved unanimously (4:0) as submitted. Citizen Participation: There was no citizen participation. Review and Approval of 1992 Golf Fees and Charges Jerry Brown brought up for discussion a draft copy of the presentation planned for the City Council agenda. Currently there are no plans to increase fees at City Park Nine or Collindale Golf Courses. SouthRidge Golf Course originally had no increases planned. However, as a request from the City Manager's office was received to get more revenue money from SouthRidge, Jerry is submitting a proposal to increase fees at SouthRidge by $1.00 for green fees and golf car rentals. If play remains the same as 1991 this would result in a $50,000 increase in revenues for 1992. Jerry would like to create a variable rate structure at SouthRidge by offering discount or lower fees for slack play time. He would also like to place the junior program with discounted rates at SouthRidge. Discounted play could also be offered during non -prime times, i.e. October through April; twilight hours, etc. No more than a 50% discount is suggested, and discounts would not be allowed for tournament play. Also, one other change that is being requested for 1992 is a card that can be purchased, which would allow golfers to use private cars at one course, two courses, or all three courses, depending on the type of pass purchased. A question was raised if Kent Heusinkveld was in favor of raising fees at $outhRidge. Jerry responded that Kent is not in favor of increasing fees (especially 9-hole green fees), but would like to offer discounts to encourage play during slack times. If SouthRidge falls short of revenue versus expenditures, the general fund will cover the shortfall. Mary Hodge questioned what play projections are for the remainder of 1991, and Golf Board Minutes October 16, 1991 Page 2 also wondered what the revenue projections are? Jerry replied that as of September 30, 1991 SouthRidge revenue was $71,000 short of achieving 100 percent revenue. Bucain Corporation has reports from 1986 to 1990 that show income during the final quarter of the year to run around $40,000 to $55,000. If this amount is received, SouthRidge income for the year would be $16,000 to $31,000 short. It is hard to make predictions on play and revenue either for the final quarter of 1991 revenues, or the affect any possible increase in fees will have on future rounds played. Mary stated there seems to be a totally different crowd that plays at SouthRidge. Roger Sample questioned the raise in fees at SouthRidge, but no increase in fees at City Park Nine or Collindale? Jerry re -stated that SouthRidge is operated from a separate fund, in addition to the fact that the City Manager has requested a fee increase to help cover the cost of debt payments. Roger raised a question on a firm coming in and making a presentation on taking over management of all three local golf courses. City Manager Steve Burkett asked Jerry to contact American Golf Corporation to see if there was an interest in taking over the operations at SouthRidge. American Golf, after reviewing the situation in Fort Collins, has stated that SouthRidge by itself would not be desirable. However, they would propose taking over operations of all three golf courses. Steve Jouard had further questions on annual pass notes. Are we limited with the surcharge? Jerry replied that in reality there is no surcharge at this time. It was started in 1979 to get additional funds for a future course. In 1981 federal revenue sharing funds were discontinued and no additional money came from the City to the Golf Fund. 'At that time the money which had been set aside in the surcharge account was made into a capital equipment fund. Feelings were expressed in 1981 that if there was going to be a surcharge, it should be a larger fee to collect some real money. It was also decided that only residents of Fort Collins could purchase annual passes. If people living outside of Fort Collins had purchased passes previously, they could continue. At this time there are less than half a dozen passes held by people who are not residents of Fort Collins. Tom White recently played at Fort Morgan and reported they have a different rate structure for non-resident golfers. Jerry stated this works better in a metro area where there are limited public courses. Roger Sample feels that only adjusting fees and not changing the basic policy is not the right direction. Steve Jouard feels raising rates will have adverse effect at SouthRidge. Derek Cordova from SouthRidge has stated that the 18-hole play rate and golf car rates are not as critical. Derek is more concerned about increasing the 9-hole rate. After further discussion, it was then moved by Steve Jouard and seconded by Tom White that the Golf Board approve the proposed 1992 fees and charges for the Golf Division as presented to them by staff with the exception of the increase of $1.00 each for 9-hole and 18-hole green fees and golf car rentals at SouthRidge Golf Course. The motion passed unanimously (4:0). The Board opposes fee increases at SouthRidge designed solely for the purpose of increasing SouthRidge 11 Golf Board Minutes October 16, 1991 Page 3 revenues from golfers and decreasing general taxpayer contributions. Community Value of Golf Steve Jouard introduced the Community Value of Golf draft report. Jerry and Steve have met several times and they have gleaned information from previous minutes, brochures, etc. and have put together the roughest of drafts. Dave Edwards, City Council liaison to the Golf Board, would be willing to meet with Golf Board members to review the report before it is presented to the entire City Council. We need to be working towards a November 1 to November 15 presentation date to Council. Roger Sample feels we would be remiss not to meet with Dave Edwards and take advantage of his knowledge. Roger also stated that Board members at this time should react to, and make any changes to the draft as initially presented. During discussion it was brought up that there needs to be a bibliography listing noting where informati,on included in the report was obtained. There is quite a bit of data in this report. Steve suggested language changes to the draft which were reviewed. Roger wanted inclusion of all annual passes used specifically as discounts. When we meet with Dave Edwards, we need to show we are not eliminating annual passes. If annual passes are ever discontinued, this should be by directive of City Council. Roger would like to see amounts for each item listed separately; then totaled at bottom -- aim high, settle a little lower. Jerry pointed out the information presented tonight on the SouthRidge capital improvements. We are unable to make all identified improvements on the list. Also presented were capital equipment needs at SouthRidge. The lists are what we are projecting as needs at SouthRidge for the next five years. Jerry reported that in entering 1991, $250,000 of the debt was from taxpayers, and $150,000 from golfers. Roger feels if SouthRidge Golf Course is kept, the optimal solution for 1992 is that golfers and taxpayers each pay one-half of the debt expenses. Steve questioned what the likelihood would be of combining different golf funds if SouthRidge is kept; and would Council ask other courses to subsidize any shortfall at SouthRidge? That could become a major issue. Roger remarked that the Community Value of Golf started out referring to all golf, and then summarizes using SouthRidge. Maybe we should run the idea by Dave Edwards as to why all golfers should pay for a financial situation caused by a previous City Council decision. Concern was raised that we may be using our one time only shot. This statement basically justifies these expenses for the next eleven years. Roger stated if we do not keep the golf courses separate, he feels we need to add a paragraph and statement that the other two courses (Collindale and City Park Nine) are basically taking care of themselves. Don't fix something that is not broken. After review and discussion of the first draft of the Community Value of Golf Statement, Roger asked if there were any other modifications the Golf Board would like made? It was then decided we now have our second draft. Alyce will make Golf Board Minutes October 16, 1991 Page 4 changes discussed at tonight's meeting and get the second draft to Jerry. The second draft will be taken with additional documentation to our meeting with Dave Edwards. Roger and Steve will try to get with Dave to discuss the rough draft and presentation of the report to Council. Other Business -- Mary Hodge questioned the status of the petition regarding a flushing toilet at City Park Nine Golf Course. Jerry said he will be bringing a "shopping list" of possible desired capital expenses to the November meeting. There is $30,000 available for 1991 and hopefully $50,000 available in years following. Board Members and Staff Comments/Reports -- Mary Hodge appreciates the work put into developing the first draft of the Community Value of Golf Statement. Thank you to Steve Jouard and Jerry P. Brown for all the time taken to write the first draft. On motion by Tom White and second by Steve Jouard, the meeting was adjourned at 9:05 p.m. Respectfully submitted, Alyce Nierman Secretary III Golf Division Meeting Attendance Board Members Staff Guests Roger Sample Mary Hodge Steve Jouard Tom White Jerry P. Brown Jim Greer Joe Nance Alyce Nierman