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HomeMy WebLinkAboutGolf Board - Minutes - 07/21/1993CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES GOLF BOARD City Council Liaison to the Board: Councilman Bob McCluskey, Jr. Staff Support to the Board: Jerry P. Brown, Assistant to the Director/CLRS; and Alyce Nierman, Golf Division Secretary MINUTES: Regular meeting of July 21, 1993 The meeting was called to order by Al Bednarz.at 7:30 p.m. Board Member Mary Hodge called to say she would not be able to attend tonight's meeting. Jerry P. Brown introduced Armon Johannsen who is the new Golf Board member replacing Jim Doyle. Agenda Review: Jerry requested one item be added to the printed agenda. He distributed the 1994 proposed budget to board members for their review and discussion. Consider Approving Minutes of the Last Regular Meeting of June 16, 1993: It was moved by Hank Hoesli and seconded by Tom White to approve the printed minutes from the regular meeting of June 16, 1993. Motion carried. (7:0) ipation: No citizen participation. Functions of the Golf Board For the benefit of new Board Members David Shands and Armon Johannsen, a briefing was made on the Municipal Code section relating to the Golf Board functions. During the SouthRidge pro selection process, questions were raised in relation to the role of the Golf Board. Board members requested a discussion take place regarding Golf Board function and suggested changes. Marty Heffernan, Assistant City Attorney, is present tonight to discuss the proposed amendments to the municipal code as it relates to Golf Board functions. One issue is that the Golf Board does not want to be limited to waiting for requests for input, and wanted to bring up issues of concern. The changes to the City Code and the differences between Option A and Option B were reviewed. Marty commented that the role of the City Attorney is not to dictate, but to review any proposed changes for their legality. The City Attorney's staff is asking the Board to decide between Option A or Option B. It appears that Option A allows no option for the Golf Board to make recommendations as to the selection of a pro. Option B would allow the Golf Board to make choice recommendations. Hank Hoesli observed that every time this issw the Golf Board felt at some point choosing contr factor in running the courses. Hank wou "construction"_ in the wording, as he can foresee would like the Golf Board to be involved in the a clarification on whether this would include a Jerry agreed that Hank brought up a good point was brought up for discussion, actors would become an important ld like to include the word major projects in the future and decisions. Al Bednarz asked for project such as a new restroom? as there was the possibility of Golf Board Minutes July 21, 1993 Page 2 new golf course construction or acquisition in the future. Basically, this issue covers the Golf Board choosing. Al commented that the City of Fort Collins runs the golf courses and further the City has chosen to use citizen advisory boards for input. His concern is that the Golf Board had a knee-jerk reaction to the SouthRidge issue. Hank stated that when he applied for appointment to the Golf Board, one thing he understood was that the board would be giving advice as to the selection of a pro. Al commented that Option B appears to allow the Board to make these recommendations. Discussion centered on whether "construction" would be covered. Jerry would like to make any changes work for both the Golf Board and City staff. The recommended changes will be presented first to Mike Powers and the City Manager for their input, and then to City Council. A motion was made by Henry Fry that the Golf Board recommend Option B with the addition of the terms "construction and acquisition" to Section 2. Second to the motion was made by Hank Hoesli. The floor was opened for discussion of the motion: Armon asked for clarification on whether this means the Golf Board would interview the golf professional, along with City personnel, superintendents, and concessionaires. Jerry responded that staff does not want the Golf Board as a whole to become involved with interviews. A sub -committee could make the initial review and then submit a recommendation to the full Board for their input. Discussion then focused on how the SouthRidge situation came about. Staff wants to avoid these situations in the future. Jerry commented that the recent selection process was a learning experience for both the Golf Board and staff. David asked what the procedure was in the past before SouthRidge? Jerry gave a brief history stating that in 1989 the City Attorney's office said we needed to go through a bid process for the selection of the pros at Collindale and City Park Nine. A subcommittee made a recommendation and presentation to the Board which the Board accepted. That was the only previous experience we had with the selection process. Al further stated that changes to the Municipal Code to more clearly define the roles were requested by the Golf. Board. Prior to the selection process for the pro at SouthRidge, separate interviews were not held by the full Golf Board. Armon asked if say 25 applications were received, would staff narrow the list down before presenting to the Board? Henry stated that during the recent process only six proposals were received and each Sub -committee Member reviewed all of the applications. Armon commented that he has mixed opinions regarding the involvement of the Golf Board in this selection process. He does not feel the Board should act as a personnel office for the City. Jerry stated that he is ultimately responsible for the actions of golf pros. Hank speculated on the involvement of the Purchasing Department and questioned if they really have an understanding of golf needs? Armon further asked how the Purchasing department ties in with the operations of the City -owned golf courses. Jerry responded that since the City Purchasing agent signs contracts, he needs to be involved in the bid selection process. Hank speculated on the possibility Golf Board Minutes July 21, 1993 Page 3 that some assistant purchasing director could conceivably go against the wishes of the committee or Board. Marty felt there needed to be a few points of clarification, and asked if the Golf Board wants to have a say over who would be hired as contractors? It was the consensus of the Board that Marty had a correct interpretation. Henry Fry amended his motion to say the Golf Board addition of the terms "acquisition and contractors" 2, and "selection and terms and conditions" to the Hank Hoesli seconded the amended motion. The unanimously (7:0). recommends Option B with the to the top portion of Section bottom portion of Section 2. motion as amended carried A memo to Jerry P. Brown was distributed to the Board from Dave Agee regarding the recent audit of the Collindale Snack Bar revenue. Henry Fry had requested there be an audit of the concessionaire at Collindale as there were some red flags raised. Hank Hoesli, referring to page 2, paragraph #4, asked what the future auditing procedures are going to be? Jerry is unsure what procedures the Accounting Department will establish. However, Dave Agee has stated audit procedures will be installed; hopefully by the end of the year. Hank would like to make sure Dave Agee understands that the Golf Board has some concerns. David Shands asked about the various golf contracts? Included in the contracts are a percentage of the driving range and percentage of total revenues. Tom White then asked what the revenues have been for 1993? Jerry responded that everybody is making less money this year, and asked if the Board would like to see additional statistics? Hank would like to see a commitment as to what can be done in the future. He has discussed with Dave Agee some possible ways that figures could be checked. This appears to be a loose canon, and feels there should be some checks installed. He further expressed amazement that the response from accounting took seven months. Henry agreed that the delay in receipt of this memo shows how much emphasis was given to this audit. Hank stated bids and contracts are dealing with a great deal of money. However, he does not feel audits can be imposed on existing contracts. Jerry informed the Board that all current contracts state an audit of records can occur at any reasonable time. Armon Johannsen asked if progress is being made on the audit procedures for the City? Jerry said yes. Al Bednarz asked if staff should depend upon the Accounting Department for audits? Could CLRS undertake their own audits on certain key features? Jerry stated that the Golf Fund must utilize the Accounting Department for services, and he relies and makes use of and trusts their expertise. Jerry said that during the audit process the Accounting Department looked at accounting type numbers and Jerry looked at the managerial side. Al observed that the response from Accounting seems pretty bland. Hank clarified that his statements are not to say Accounting didn't do a good job; it is that he doesn't feel the report gives a lot of detail. Hank was further Golf Board Minutes July 21, 1993 Page 4 concerned that if a single audit took seven months, how long would it take to install a full audit procedure for the City? Joe Nance commented that a lot of these problems could be eliminated by a flat rate type of contract. Joe was unsure if this is possible with the current City purchasing procedures. If a flat rate is possible, the Board might consider this as an option for future bids. Henry speculated on going out to bid at i.e. $2,000 per month, or lease the square footage. Jerry stated that flat rate bids have been possible, but percentage bids started coming in and everyone seemed to follow suit. Al stated that flat rate contracts seem to be a preference of the Board and requested that Jerry investigate this possibility further. This should be kept in mind when the contracts come up for renewal. David feels the primary concern is that a good concessionaire be present that is clean, have good food, and provide a service to the golfers. Hank requested a study be made to find what we would need from a concessionaire. Jerry stated that the revenue received from the concessionaires is minimal compared to the total Golf Fund budget. Henry is interested in seeing figures on what space rents for on the open market. Al observed that it would be interesting to have that information for review. The Board discussed retail and marketing logistics. They would like Jerry to explore this area further. Golf Fund Revenue Shortfall Discussion Revenues are down around $117,000 projected through the end of the year. Play is down, and it could get worse. *Jerry pointed out the first factor was the very poor weather early in the year; second factor is the competition we did not have before; and third is that Rockies games are hurting play. Henry commented that Colorado State University feels that the Rockies.are definitely impacting their ticket sales., Cindy Roper feels a contributing factor is that more and more people our age have kids getting involved in other activities and parents are being pulled away from their golf games. Hank Hoesli added that the economy is down. Jerry communicated to the Board his surprise, as play during the month of March was the best ever for that month. Bad losses and decreased play did not really show up until May and June. As the Golf Fund is an Enterprise Fund by City definition, if we are down $117,000 we have to react to it. Jerry has spoken to the three superintendents to cut out $60,000 from this year's budget. Capital purchases were made in April, and the second half of the year is minor purchases and salaries. If we had any indication this might happen, we could have deferred the early capital purchases. If the down trend continues, it will cause the 1994 budget to be changed downward as Amendment N1 limits the percentage of increase from one year to the next. It appears golf nationally is down this year, and we may not have hit bottom yet. Hopefully 1993 will be the worst year. Tom White asked how Denver is faring? Jerry replied they are in better shape; but.the weather was on their side and they were open in January and February. Tom has heard people comment that it is easier driving to Ptarmigan than it would be to stay in Denver waiting for a tee time. Hank agreed that Ptarmigan gets a E r� Golf Board Minutes July 21, 1993 Page 5 lot of play. Tom asked if w Denver know we are up here? of CSU football tickets, as e could explore the possibility of letting people in Jerry has placed some ads in Denver and on the back well as on radio and in newsoapers. Armon Johannsen suggested the board spend an evening on how to get people to golf in Fort Collins. Al asked if the ads at SouthRidge were the idea of Derek Cordova? Jerry replied that the ads are a 50/50 joint venture between Derek and the City. Al would like to see a sub -committee addressing the issue of competition and get back to the Board with ideas to increase play at our City courses. Jerry commented that City golf in Fort Collins never had significant competition until this year. We are down over 50% in tournament revenue this year. Mountain Vista and Marianna Butte, along with Ptarmigan, seem to be causing the most impact on the play in Fort Collins. Armon asked how the season passes are structured as he feels passes do have an impact on play? Al stated that the Golf Board has been saying we will be addressing this issue during 1993. Jerry is currently gathering information from Greeley and Loveland. Greeley has a new system limiting the number of passes issued. After this information is gathered and compiled it will be forwarded to the Board for their review. Al observed that to fit a new fee structure in with next year's plans we should start reviewing within a couple of months. Jerry said we should probably start these discussions now. Al felt that a marketing strategy can be developed and presented at the next Board meeting, whereas the fee structure would take more time to review. Henry speculated that as to marketing, we are pretty late into the season. Generally the Board felt there was a need for some marketing strategy, but there is no real budget available this year. Joe Nance commented of all the things mentioned, competition with other courses is impacting us the most. Explosion of golf caused a frenzy of new golf courses being built. Eventually there will be more golf courses than you have golfers. Joe believes that is what is happening now. Combining two new courses, along with weather, will keep the Fort Collins courses play down this year. Cindy asked if Joe felt there were any marketing strategies we could incorporate this year to bring in players? Armon suggested there might be slack times during the day or week where price breaks could be given to increase play. Joe commented that this year, during slower times, there is no fill-in people on the waiting list. Jerry stated that the word gets around real fast regarding discounted green fee golfing times. He thinks we have to take some risks now, and would like advisory permission from the Golf Board to sit down with the three golf pros and come up with some strategies. Armon encouraged Jerry to go ahead with meetings. Al agreed and stated if they come up with ideas, go ahead with implementation. Board consensus was there was no need to report back to the Board. Suggestions by the Board wer amounts on advertising; tournaments gone? Hank also look at increasing explor agreed fall e e pay for three get one free; spend some small why we have lost tournament money, where have the that there is an immediate problem, but we should play; maybe use a five -play punch card. Jerry Golf Board Minutes July 21, 1993 Page 6 stated implementation of marketing strategies will begin immediately. Al urged Jerry to start addressing the short-term marketing strategies, but Al would like to start addressing the fee structure. Henry commented that a committee could meet frequently during the next few months. Jerry stated that there are only three months available to complete a report for presentation to City Council; and feels an effort by only Board members would be fine. Al thinks alternatives for committee composition would be to have two -to -three Golf Board members or two -to -three Golf Board members and two -to -three citizens serving on this committee. Henry, knowing what we went through last time the fee structure was changed, doesn't feel other citizens are needed at this point; more time will be spent trying to educate what the situation is before you could get into the meat and potatoes. Jerry commented that former Golf Board members could be used as they are familiar with the situation. Jerry stated he personally feels there should be no changes this year. He was planning to use the same structure for 1994. Armon doesn't feel there needs to be a major overhaul but maybe make some minor changes to bring in more revenue. One option used at other courses is to limit the use of annual pass play to specific times. These options can all be addressed by a committee. Reviewing the fee structure is an important role for this Board to take, and Al would 1 i ke to see this committee get going. The committee could meet between now and the next regular scheduled board meeting. Al asked for volunteers to serve on this committee: Armon Johannsen, Henry Fry, and Al Bednarz agreed to serve. The meeting of the committee was then scheduled for Wednesday, August 11, at 6:00 p.m. 1994 Budget Jerry would like the Board to take home the distributed budget information to review. Al asked what has happened with the idea of the Golf Fund being separated from the General Fund and truly becoming an Enterprise Fund? Jerry responded that this is currently before the City Council; they are discussing whether to place this item on the November ballot. Jerry reviewed the data distributed and explained various expenditures. There is now approximately $84,000 in new expenses that are required to meet ADA requirements and to set up the emergency reserve as established by Amendment M1. The 1994 operating expenses have not been changed from what the superintendents requested except for capital acquisitions. All 1994 capital has been eliminated. Jerry would like the board to spend some time reviewing the proposed budget. If there are questions, call Jerry for clarification. Other Business - Jerry met with the City Park Nine Women Golfers, and thinks we have at least agreed that we can't do a whole lot. Jerry has talked with the Health Department, and under no circumstances can we open anything other than a basic snack bar without significant modifications. The ladies appear to • Golf Board Minutes July 21, 1993 Page 7 understand the situation, and will try to work with Jim Greer. Tom White had a golfer come to him with a complaint about SouthRidge. This golfer had started a game with no one in front of him; as he got to the next tee box there were people getting ready to tee off. This golfer was informed by these people that they live on the course and that after 6:00 p.m. residents were allowed free play on the course. Jerry clarified that there is no such policy whereby a resident at SouthRidge has carte blanche use of SouthRidge Golf Course for no fee. Jerry will attempt to handle this situation diplomatically, via news releases, mailings, etc. Hank Hoesli asked about a letter to the Mayor distributed to the board. Is there a way to get a message to the Mayor regarding the first line of the complaint? Jerry has been in contact with Joe Nance regarding the discrimination complaint. Jerry is reviewing the specific charges made. It was commented by Hank that we make it too easy for people to yell discrimination. - Jerry relayed that the net project at City Park Nine is still on hold. Before we can proceed we need to go through more citizen input process. - The next Board meeting will be held at City Park Nine. The format will be a little different: 4:00 will start golf; 6:30 dinner; 7:30 meeting. There will be some business then get understanding of the computerized irrigation system recently installed at City Park Nine. Motion was made by Tom White and second by Henry Fry that the meeting adjourn. Motion carried (7:0) and the meeting adjourned at 10:00 p.m. ym- wi. 1•., Al Bednarz Henry Fry Hank Hoesli Armon Johannsen Cindy Roper David Shands Tom White Respectfully submitted, Alyce Nierman, Secretary III Golf Division Jerry P.. Brown Marty Heffernan Joe Nance Alyce Nierman