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HomeMy WebLinkAboutGolf Board - Minutes - 09/15/2004City of Fort Collins Cultural, Library, and Recreational Services Golf Board Minutes: Regular Meeting of September 15, 2004 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 7:30 p.m. at the Collindale Clubhouse. Agenda Review: There were no changes to the agenda as printed Items of Note: ♦ Mike Sanders is out of town and Mindy Markley called to say she would be slightly late. ♦ Jerry previously distributed to Board Members information regarding the Recruitment Process for Annual Boards and Commissions Appointments. We will have at least one new Member appointed in January to replace Mike Sanders. Claire Nelms is eligible for Re -appointment. ♦ Jerry informed the Board that the City Council is taking a look at a number of Govemance issues. Jerry mentioned that one of these issues is that staff has been asked to develop a proposal to expand the duties of some Boards and Commissions allowing them to be more involved in the Development Review Process. Jerry explained that the Golf Board generally isn't involved with the Development Review Process, however, he has asked that if there is ever a proposal for a new golf course or a stand-alone driving range that the Golf Board be involved Approval of Minutes: On a motion by Larry Buckendorf, seconded by Lauren DeRosa, the Board unanimously (8:0) approved the Minutes of the July 21, 2004 Regular Meeting. Citizen Participation: No Citizen Participation at this time. Potential New Public Golf Course in Fort Collins by 2007 Jerry discussed some information on the status of golf courses that are in our region, including the possibility of a new course opening in Timnath by 2007. Highland Meadows in Windsor just opened in June, and the new owner of Mountain Vista Golf Course is considering the addition of another 9-holes. Also, the new Shiloh Creek Golf Golf Board Mnutes October 5, 2om Page 2 Club in Windsor is scheduled to open in 2006. Jerry said that financially the Golf Industry has taken a serious hit since 2001 and that some experts predict that we may not see things turn around until 2007. Jerry feels that with the addition of all of the new courses being built that its a poor time for the City to be aggressively pursuing a new Golf Course, but that we should remain open to the idea in case something comes to the City from an outside source. Jerry suggested that the Board keep the "place marker" and to consider changing the date to 2009. Grant Sherwood asked if someone in the private sector wanted to build a new course if it would have to be in the county? Jerry commented that then: really isn't much appropriate land left inside the city limits, and that he heard someone was inquiring information on building a course in the County near LaPorte. Grant then asked if it was the market that drives the approval and if there's any concern from the Planning folks to restrict the number of courses? Jerry said no, that the Planning folks simply process such requests and see if they meet all development codes, but that the real estate and housing developers are driving the Golf Industry right now, and they're nearly driving some Municipal Courses almost out of business. Citizen Ernie Cummins commented that he felt the Parks Department had a large sum of money because of all the fencing being put up around the city. Jerry informed him that the sites in question are natural areas and open space, not parks, and that the voters approved two Ballot Issues and the money that was approved was designated specifically for the Natural Resources Department, not parks. After further discussion, Claire Nelms made a motion to support the staff recommendations and the wait of the consideration of building a new course until 2009. Larry Bukendorf seconded the motion. The Motion carried unanimously (8-0). Review of the Financial Status of the Golf Fund Jerry mentioned an article in the Coloradoan from the Colorado Golf Association and how it made the Golf Industry sound like it was doing well. Jerry stated that the article came out during a time when as far as he knows none of the public courses were doing well. Jerry discussed his conversations with other public golf course Managers and that he doesn't know of any Municipal course in the area that is making money. Jerry stated that Loveland has had the worst August that they have ever had, and that Aurora lost $8M,000 last year, and it looks like they are heading in the same direction this year. In Jerry's discussion with Greeley he was told that they are cutting $221,000 out of the 2005 Budget and have hired a consultant to discuss the possibility of privatizing, hiring private Golf Professionals instead of City employees, or if they should get out of the golf business altogether, etc. Based on a Wall Street Journal article that Jerry discussed, courses that are $50 dollars and under are suffering the most and the ones that have higher fees are doing better because people who can afford to play are still playing Jerry feels that this area is just over -saturated with courses and the majority of the Municipal Golf Courses are suffering because of it. Golf Board N mutes October 5, 2004 Page 3 Jerry discussed the latest Revenue print-out that he provided the Board Based on the revised numbers we're still $161,00 short going into the New Year. Jerry explained that he has already frozen around $140,000 in expenditures for this year and the fact that we're not buying Capital or receiving salary increases will help. Some of our Accounting Principals will take affect and the Retained Earnings that were Restricted before will become Unrestricted which will somewhat help our bottom line and will hopefully bring our Reserve balance to at least zero. This means we have spent the $400,000 in Reserves since 2001. Jerry mentioned that he has reduced our expenditures by $203,000 for next year and that raising the fees for next year should hopefully put us ahead, assuming things go well. Jerry also discussed the fact that the City as a whole is suffering because of Sales and Use Tax going down which required the City to cut $5.9 million dollars out of the General Fund Budget the last two years. With more basic services needed there likely won't be extra money available. Jerry also mentioned the Sales Tax issue on food If the removal of Sales Tax on food is passed by the voters it will mean a 6 million -dollar cut to the Citys' General Fund This represents 10% of the General Fund Budget. It's likely that Parks and Recreation will be greatly affected. Jerry stated that it could be possible that money might be taken from Golf to help support other services. The City of Loveland's Golf Department contributes to their Mountain Parks, and Boulder takes $200,000 to support their Parks and Recreation Department. With this in mind, it could mean the possibility of even higher increases in golf fees. Mindy Markley asked if there was anything the Board could do to help? Jerry stated that he just warned the Board to be informed at this point. Mindy then asked Jim Greer, Golf Professional at Collindale, if he thought the Board could do anything to help? Jim suggested the Board talk to people. Citizen Emie Cummins asked if Fort Collins Municipal Golf is paying its own way? Jerry said yes, and stated it has to and it has been since 1971, and we most likely won't be getting help from the General Fund We have to raise fees and cut expenses. The profits that we have made in prior years went to reserves, but the last couple of years we have had to spend those reserves. Mindy asked where would we could get the money to pay for the water pumping system at South idge if it needs to be replaced? Jerry stated that there wasn't any extra money at this time and we might need to lay-off someone to pay for a pump. Jerry stated that a recent hailstorm had damaged some of the Greens at SouthRidge. The crew at SouthRidge is doing what they can to repair it. Jerry stated that each Superintendent is doing something different to help the Budget. Jerry asked each of there to give up $10,000 in seasonal salaries in 2005. Grant Sherwood asked if there was a possibility of consolidating the courses? Jerry said that unless you close a course permanently it doesn't save significant money because you still have to maintain the grounds of the course, and there's the possibility of people sneaking on the course and damaging it. During the drought a number of courses experienced this when they closed. Grant then asked if the City owns the property and if the Courses could be sold as an asset? Jerry stated that the City does own the property and they could be sold, but there Golf Board Mimtes October 5, 2004 Page 4 are some restrictions with easements that could limit any sales. Mindy stated that she felt our Courses are a victim of the economy. Jerry said our goal is to pull ourselves out by 2006 and to start doing some of those unfunded Capital Improvements. Jerry mentioned that our highest priorities are to replace the pump system and parking lot at SouthRidge when we get the fimds for it Other Business • Jerry stated that the October meeting would probably be canceled However, if anyone would like to meet contact David Johnson ♦ Dan Preble asked Jim Greer if any of the golfers at Collindale mentioned to him that they felt the Course was too difficult Jim stated that a few comments had been made, and that the trees bad been cut back to help make it less difficult Dan stated that he has heard from players that they feel the course is too difficult ♦ David Thilmany asked Jim Greer if they had rented many single rider carts and if any comments had been made. Jim stated that there are some people who do appreciated it especially during tournaments. Claire Nelms stated that she felt it was good public relations on the Boards part to implement the single rider fee. ♦ Jerry mentioned the correspondences that he has been sending to the Board to keep them informed with what is going on in the City. A number of Board Members stated that they really appreciate Jerry's efforts of keeping them informed Adjournment: On a motion by David Thilmany, seconded by Mindy Markley, the Board unanimously voted (8:0) to adjourn at 8:20 p.m. Meedne Attendance Board Members Respectfully submitted, �I0.wtn Wa r *6A Staff Dawn Worth Administrative Aide Larry Buckendorf Claire Nelms Jerry P. Brown Lauren DeRosa Dan Preble Dawn Worth David Johnson Grant Sherwood Jim Greer Mindy Markley David Tilmany Guests Ernie Cummins Bob Lauer