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HomeMy WebLinkAboutGolf Board - Minutes - 02/21/1990• CITY OF FORT COLLINS 0 PARKS AND RECREATION DEPARTMENT GOLF BOARD MINUTES: Regular Meeting -- February 21, 1990 The meeting was called to order at 7:30 p.m. by Vice President Dan Preble. President Roger Sample and Member Dick Zubradt both called to say they could not attend the meeting. Alternate Member Al Bednarz was granted voting status for the meeting. Agenda Review: No changes to the printed agenda. Minutes: The minutes of the regular meeting of January 17, 1990 were approved unanimously, as submitted, on a motion by Terry Gilmore, seconded by Iry Wilson. Citizen Participation: No citizen participation. Golf Fee Structure Committee Report/Discussion The report from the Golf Fee Structure Committee, dated February 11, 1990, was previously distributed to Board members. All six committee members (Al Bednarz, Cathy Fromme, and Iry Wilson from the Golf Board, and Henry Fry, Jim Mitchell and Stephen J. Schapanski as citizen/golfer members) were in attendance. The purpose of the committee was to examine the present fee structure, and to recommend changes that increase golf revenues in increments of $20,000 per year, up to a level in excess of $100,000, taking into account concerns of equity and fairness between various fees. Committee chair Jim Mitchell referenced the report. The committee reviewed and discussed in detail the historical background of the present fee structure, the fee structures of the other Northern Colorado public golf course operations, and the play and income records for the Fort Collins courses. The committee listed and discussed various options as potential revenue -increasing methods, including the elimination of annual passes, the elimination of senior citizen passes, a per -round usage fee to be applied on all annual pass uses, higher annual pass fees, restricted annual pass usage (such as no weekends during peak months), limited annual pass usage (such as a punch card system good for a certain number of rounds), increased green fees, establishment of non-resident green fees, etc. The committee spent a large amount of time discussing annual passes, and in general agreed that revenue from annual passes is not consistent with associated golf course usage. The committee, however, recommended that the annual pass system should be retained and that a discounted pass for senior citizens (or for periods when the majority of seniors play) should never be below 75 percent of the full adult pass rate, and that discounted passes should be retained for other special categories (juniors, students, family members) at approximately the present percentage discount rates. The committee then listed various options and developed projected revenues with a key assumption being that regardless of the fee increases involved, that there would be no significant changes in play patterns. The consensus of the committee to increase revenues in approximate $20,000 increments per year included: adding use fees for all rounds played using annual passes (each 50 cent increase equals approximately $20,000); increase 9-hole green fees (each 50 cents increase equals Golf Board Minutes February 21, 1990 Page 2 roughly $20,000); and/or eliminate the senior citizen annual pass as such, establish one adult rate and restricting the use of all passes to weekdays only during the peak season (April 16 through September 15) with all weekend/holiday play being green fee only (which should increase revenues approximately $20,000). Also, increasing all fees a proportionate amount of approximately 3.5 percent equals roughly $20,000. In addition, the committee discussed ways to increase revenues significantly over $100,000 per year, but was unable to come to a specific recommendation. It was agreed that at this level, it will be necessary to examine many sources of revenue, including such things as non-resident fees, large fee increases in all areas, and the elimination of annual passes (which staff estimates could raise up to an additional $150,000 per year, without any discount rates). The opinion of the committee is that increases of this magnitude are more than the (Collindale and City Park Nine) public golfing community should absorb. Jim Mitchell then asked for questions. Terry Gilmore asked about the ratio of 9-hole green fees to 18-hole green fees? In Fort Collins, our 9-hole fees ratio is 59 percent, with the area golf course ratio being 69 percent, meaning that we could reasonably add $1.00 to the fee. Al Bednarz noted that in Fort Collins we play many more nine -hole rounds than 18-hole rounds, which is contrary to the National and Front Range trend. Terry asked about restrictions to the use of annual passes to weekdays only and Jim said he thinks it will increase revenues. Steve Jouard asked why the committee recommends retention of the annual pass system? Jim, Al Bednarz, and Henry Fry responded with their reasoning. Terry Gilmore questioned the findings of the committee on the impact of play? Jerry P. Brown discussed the SouthRidge situation and the impact of the boards decision as to fees. Cathy Fromme suggested that she would not be inclined to assist with the SouthRidge debt unless we get some control of the operation. Steve Jouard echoes that sentiment, and he is interested in what Council feels as to how we should be inclined to assist with the debt. After further discussion, the Board, on a motion by Terry Gilmore, seconded by Steve Jouard, voted unanimously (6:0) to accept the report of the Golf Fee Structure Committee. Jim Mitchell and Stephen J. Schapanski asked the Board if the committee's charge is done? Jerry suggested the possibility of public meetings to discuss whatever the Board's final recommendations may be, and that committee members might be present to explain their recommendations. Dan Preble said he does not feel it will be necessary to have public meetings as the fee increases are not controversial nor do they truly modify the fee structure, except for the annual pass use fee. Jerry then requested the Board review the recommendations of the committee and come to the March 21 Board meeting ready to discuss it as well as how the Board wants to respond to Council with regards to the SouthRidge situation. Jerry also asked the Board to consider what would be an appropriate amount for our Golf Fund reserves? We entered 1990 with roughly $200,000 in reserves and we project using at least $40,000 of that amount this year, leaving us with around $160,000 in projected reserves to start 1991. There was a lengthy discussion about our current financial status. Terry Gilmore commented whether there is a need to raise fees at all based upon the fact that we made an $80,000 profit in 1989 and have $200,000 in reserves. Jerry noted that we still plan to deplete our reserves approximately $40,000 annually and that no money is budgeted for desired capital improvements. Al Bednarz asked what other Golf Board Minutes February 21, 1990 Page 3 E unbudgeted operating expenses we need and Jerry responded that we would like computers for irrigation management, pro shop management, maintenance management, etc; potentially golf car paths; Collindale irrigation system improvements (the system is almost 20 years old); and increased golf course rangering. Other Business The Golf Capital Improvements Committee, composed of Roger Sample, Dan Preble, and Steve Jouard from the Golf Board, and Henry Fry and Dot Hoff from the Collindale Men's and City Park Nine Women's Golf Associations, has met several times and recommends the Board agree that the top four desired Capital Improvements projects are as follows: 1.) Collindale Restroom; 2.) City Park Nine Restroom; 3.) Collindale Clubhouse Improvements and potential Patio Extension; 4.) A second Collindale Restroom (if needed). We probably should allocate around $40,000 annually to complete these projects (as well as some computerization and increased golf course rangering costs) within five years. The Board unanimously accepted these recommendations. Jerry distributed final copies of the agreements for Beth McKenney as City Park Nine Snack Bar Concessionaire, Jim Greer as City Park Nine Golf Professional, and Bill Metier as Collindale Golf Professional. Jerry distributed a report from the Colorado Division of Wildlife on the Canada Goose Management plan for Fort Collins. The Division will meet with us should we desire. Terry Gilmore asked if the December SouthRidge financial report represented the entire 1989 year? Jerry said yes. Al Bednarz asked about several of the figures, and Terry asked about the status of the audit? Staff will follow-up and report back. Iry Wilson made a motion to adjourn the meeting at 8:40 p.m., which was seconded and passed unanimously. Respectfully submitted, Steve Jouard, Board Secretary Meeting Attendance Board Members _ Staff Guests Dan Preble Jerry P. Brown Henry Fry Steve Jouard Neil Johnson Dot Hoff Al Bednarz Jim Greer Jim Mitchell Cathy Fromme Joe Nance Stephen J. Schapanski Terry Gilmore Iry Wilson