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HomeMy WebLinkAboutGolf Board - Minutes - 01/20/1993CITY 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, Assia,ant to the Director/CLRS; and Alyce Nierman, Golf Division Secretary MINUTES: Regular meeting of January 20, 1993 The meeting was called to order by Board President Al Bednarz at 7:35 p.m. Agenda Review: There were no changes to the printed agenda. Election of Board Officers for 1993 It was requested that if anyone is interested in serving as an officer of the Golf Board for 1993 to so state. Hank Hoesli asked what is the length of the elected officers term? The answer was one year. This question was raised with the concern that if Tom White or Jim Doyle would not be requesting re -appointment to the Board and they were elected to an office of the Board, they would not be able to complete their term as an officer. The current Golf Board officers expressed that they would probably be reapplying for Board membership. A motion was made by Roger Sample and seconded by Tom White that Al Bednarz be re-elected as President of the Golf Board for 1993. Motion Carried (8:0). It was further moved by Roger Sample and seconded by Tom White that Mary Hodge be re-elected as Vice -President of the Golf Board for 1993. Motion carried (8:0). Al Bednarz moved and with a second from Roger Sample that Tom White be re-elected as Secretary of the Golf Board for 1993. Motion Carried (8:0) Consider Approving Minutes of the Last Regular Meeting of November 18, 1992: It was moved by Henry Fry and seconded by Mary Hodge that the minutes of the last regular meeting of the Golf Board, November 18, 1992, be approved as submitted. Motion Carried (8:0). Citizen Participation: No citizen participation at this time. Collindale Snack Bar Concession Agreement A memorandum from staff was sent earlier to Board Members regarding the recent bids for the snack bar concessions at both Collindale and SouthRidge Golf Courses. Al Bednarz turned the floor over to Jerry P. Brown for background information. Jerry suggested that any questions the Board may have regarding the process or decision should be directed to the Board members and citizens who served on the Selection Review Committees. Henry Fry and Cindy Roper were the Board representatives on the Collindale Snack Bar Concession Review Committee. Jerry commented that there were six potential bidders that participated in the walk through at Collindale; three actually submitted bids. Al asked about Costa/Campbell's proposal? Henry replied that of the three bids received, when the answers to questions and areas of concern were reviewed across Golf Board Minutes January 20, 1993 Page 2 the board, Costa/Campbell was the best choice. They offered a little different appeal from the service standpoint. Mary questioned how the finances and staffing arrangements would be handled? It was replied that Mr. Costa is the money man, and Mr. Campbell is the restaurant man and will be on site. Henry further stated that the Costa/Campbell proposal was a little more commercial and a little less homey than Funtime. Jim Doyle commented that the scores from the committee members for each of the three proposals reflect that all five members of the review committee were in agreement. As to the proposal from Janna Warner, Henry commented the committee felt it would take every nickel of what Janna had just to open the doors. They felt it would be best to pass her name on to Costa/Campbell for their staff. Hank Hoesli questioned what Mike Powers answer will be regarding the committee recommendation? Jerry pointed out that the memo sent to the Board stated that staff, which includes Mike Powers, is in support of the committee recommendation. Jerry also pointed out that the City Purchasing Agent, Jim O'Neill, has the final say on this appointment. The section in the RFP referencing the final decision was reviewed. Roger Sample wondered if the review committee had a feel if there was adequate cash controls presented on the reporting of sales and revenues? Henry had a pretty strong feeling from Costa/Campbell on their personal integrity. Henry agreed that we should institute additional controls. Based on the proposal and interview it appears Mr. Campbell, in his previous management experience, has operated under strict cash controls. Cindy Roper commented that since the concessionaire would be working with the City, additional controls will need to be worked out. Because of their business and backgrounds, there was no question in the committee's view that Costa/Campbell was the best choice. Kay Thompson, Collindale Women's Golf Association representative on the review committee, commented that Costa/Campbell appeared to have more fiscal abilities and business wherewithal, the most cash available, and the ability to draw from reserves if needed. Ms. Thompson added that Golf Board may consider having a quarterly audit. Hank shared in some of Roger's concerns and wondered why there was a 39% increase in revenues from 1991 to 1992? Cindy commented one reason may be that prices went up under Restrock's business management at Collindale. Prior to January 18, 1991 we were operating at SouthRidge with contracts that the City had set up without Golf Board input. Roger stated since there was no audit at SouthRidge, he believes there should be some type of audit process instituted. He feels this would be a wise business move to insure City Finance that reported figures actually are accurate. At the least, some checks should be made. Jerry will request the Finance Department work with him in setting up new control procedures. Al questioned the revenue reporting process? Jerry replied that the cash registers located at the snack bars are owned by the City. Funtime instituted a daily report while they were at City Park Nine; Collindale reports were received on a monthly basis. Staff on occasion has done reports where they have run checks and balances, and it was agreed that cash register tapes matched within an acceptable range of error. Golf Board Minutes January 20, 1993 Page 3 Jim Doyle moved with a second from Tom White that the Golf Board approve the recommendation submitted by the Collindale Snack Bar Concession Review Committee that Costa/Campbell be awarded the snack bar concession at Collindale Golf Course. Motion carried unanimously (8:0). SouthRidge Restaurant/Snack Bar Concession Agreement Jerry reported that three people participated in the walk through at SouthRidge Snack Bar, and the City received three bids. SouthRidge is a little different as there was an incumbent who bid on this RFP. Mr. Anthony Fonte represented the SouthRidge citizens on the Review Committee. Tom White is the only Golf Board member who served on the committee who is present tonight. Costa/Campbell also submitted a proposal for SouthRidge Snack Bar that did not appear as well prepared as their presentation for the snack bar concession at Collindale. Tom gave Board Members an overview. He stated the Sandtrap, Inc. people were better prepared and gave a professional presentation; Funtime appeared to be little more than a hot dog vendor in their presentation; Costa/Campbell made a good presentation but were not very familiar with SouthRidge. The Sandtrap, Inc. bid was rated at the top on everybody's list. Jerry stated there were two issues here of concern. The first being Derek Cordova's association with the Sandtrap, Inc. This is a 50/50 partnership with Kristi Olson as President and Derek Cordova as Vice -President. The other issue is that there are two liquor licenses involved; one for drinks served in the bar, the other for 3.2 beer sales on the course. A concern was raised regarding the possible loss or restriction of the beer license. All bidders were put on notice that liquor licensing practices could change. Jerry does not have a problem with Derek's involvement and the proposed arrangement. There currently are no regulations, rules, policies, or procedures preventing this concession from being awarded to Kristi Olson and Derek Cordova. In addition, the City has a policy on tournament prices and no negotiation on green fees or golf car rentals. If the Sandtrap, Inc. has the snack bar concession, they may be able to offer a cut in food prices for tournaments, thereby making tournaments more attractive at SouthRidge. Hank Hoesli asked what is the square footage of the concession area? Jerry replied that the whole clubhouse is around 3,400 square feet with less than half for the snack bar area, plus the patio. Hank wondered why it appears the Collindale snack bar concession is worth so much more? A projected revenue of $133,000 would bring $10,990 to the City from the Sandtrap. If the same percentage that is proposed at Collindale is used at SouthRidge, the Golf Fund would gain more revenues. Jerry stated the potential bidders expressed their concern at the possible risk of losing the beer sales at SouthRidge as a major consideration which could be a reason we received lower bids. Right now everything is status quo with the liquor licenses, but things could change. Jerry stated that the six "qualitative" questions in the RFP were worth 10 points each, and the bid "quantitative" question was worth 15 points. If Golf Board Minutes January 20, 1993 Page 4 Costa/Campbell had been better prepared, they probably would have been recommended for this concession. At SouthRidge there is a lot more night business, food, bar business, and the course hosts more tournaments. Also, during 1992, the Sandtrap, Inc. went after additional business with advertisements and promotions. Hank sees that only part of the liquor sales would be affected, and the restaurant at SouthRidge is a better facility than the one at Collindale. Therefore, he wonders why bids came in with a lower percentage offer? Jerry stated that the only bidder with a high percentage was Costa/Campbell. It appeared that the percentage was not as relevant to them as their goal was to establish themselves. In 1992 at City Park Nine a 10%/7% bid was accepted. The committee can't say what was in the mind of the bidders, and can only respond to the bids actually presented. Tom commented that percentage doesn't matter per se; it's what we take to the bank in dollars. Under our previous SouthRidge Snack Bar contract we negotiated $7,000 up to $9,000 in cash, or we took $7,000 in cash and the concessionaire made $2,000 in improvements. This was acceptable at that time since we didn't know if the City was going to keep SouthRidge. Roger Sample requested the Board switch gears a little bit, and asked if Kristi Olson has any other contracts with the City? Jerry replied that Kristi is on the City payroll for janitorial duties at SouthRidge, but has no other contracts. Henry Fry commented that the consensus of the committee is that the Sandtrap, Inc. proposal was far above the Costa/Campbell and FunTime proposals. Jerry observed that the qualitative issues, not the quantitative portion of the proposal is what seemed to carry more weight with the selection committee. Al Bednarz recapped items brought up in the discussion by the Board which might affect the concession bid at SouthRidge. Among those items are the difference in percentage being offered at SouthRidge and Collindale affecting new money in the future, the SouthRidge clubhouse facilities being quite a bit newer, severe limitations by SouthRidge having no grill for hot food, and the number of rounds played at SouthRidge which could affect potential revenue. Basically the Board would like to have some clarification and answers to questions before approving the recommendation of the Review Committee. Cindy Roper shared her thoughts that Costa/Campbell may not be able to do well at both Collindale and SouthRidge. Costa/Campbell is more familiar with Collindale and can be considered more favorably in future bids. However, at this point she believes Kristi Olson and Derek Cordova have given their heart and soul to SouthRidge. She additionally commented that there seems to be a lot of personal feelings directed toward Derek that are not related to the snack bar concession. Roger observed that when a committee of the Board performs the work, there is a lot of thought and discussion before a recommendation is presented. From that standpoint he would support the recommendation of the committee and support their decision that the Sandtrap, Inc. be awarded the bid for the SouthRidge snack bar concession. Tom stated there were a lot of categories considered, and that the dollars and cents were considered by the review committee. Hank commented that the difference could be up to $13,000 in lost revenues to the City. He feels the i 0 • Golf Board Minutes January 20, 1993 Page 5 Sandtrap, Inc. made a great proposal, and maybe we could negotiate with them as the bid does not seem as attractive as it could be? Henry asked if the gross revenues were above what was expected, can we renegotiate after one year? Jerry doesn't think we can renegotiate unless the bidder agrees or does not meet specifications. Jerry noted that since there is no representative from the Purchasing office present at tonight's meeting; a clear answer cannot be given at this time. Mary Hodge observed that the Sandtrap, Inc. did submit a bid within range of other bidders for other City facilities. It also seemed to her that this topic was being discussed to death. Henry agrees with Roger that the review committee did look at all areas and considered the numbers presented by each bidder. His concern is if we take a lower cash bid, the Golf Board may be opening itself up to some criticism. Al echoed Henry's concern. The answers given by Costa/Campbell at their SouthRidge presentation were flat. Funtime didn't really know much about liquor sales and also made a better presentation on Collindale. Jerry stated that the Golf Board could recommend that SouthRidge be re -bid. Hank clarified that the basis for opening up the process for new bids would be that the City received no bids that met their expectations, and he does not believe that is true in this case. Jerry said that the image at SouthRidge probably kept some people from bidding. Cindy observed that if the operation at SouthRidge is re -bid that Costa/Campbell may come back with a lower bid. Hank commented that he would rather not throw this open again for bids. In addition he stated he does not want to yank the rug out from the Sandtrap. Jerry stated he is willing to discuss the bid submitted by the Sandtrap, Inc. to see if Kristi and Derek would be willing to change their percentage offer. He will ask Purchasing if this is acceptable. Henry agrees with the committee recommendation that the Sandtrap, Inc. would be the best, however, we need to get more "bang for the buck" at SouthRidge, and the City should contact the Sandtrap, Inc. in regards to negotiating their percentage upward. Mary observed this is a very interesting conversation, and posed the question to Board members if they as businessmen would be willing to give more money back to the City if they were placed in the position of the Sandtrap, Inc? Henry and Hank both commented that the highest percentage the City would receive under the proposed bid would be less than 10%. Discussion went back and forth on whether the Sandtrap, Inc. would be willing to change their bid, and how this would appear. Jim Doyle proposed that the opportunity be given to all bidders to modify their submitted bids. Roger Sample moved that the Golf Board accept the guidance of the SouthRidge Snack Bar Review Committee that the Sandtrap, Inc. be awarded the concession at SouthRidge, and that the Board further recommend that before the contract is accepted, the Purchasing Agent of the City pursue negotiations to obtain a more favorable rate factor in the neighborhood of 12%. This motion was seconded by Cindy Roper. Discussion on the motion centered around the difference in percentages between Collindale bids and SouthRidge bids. The motion carried (6:0:2) with Hank Hoesli and Tom White abstaining. Golf Board Minutes January 20, 1993 Page 6 Reconsideration of Implementation of Smoking Ordinance at Golf Courses This issue was brought forward via a letter sent by Mary Hodge stating it behooves the Golf Board to visit this topic again. Mary's view is that if additional information is needed, maybe the Golf Board would be inclined to invite someone in to make a presentation. Henry Fry stated his opinion has not changed a bit since the Board's previous discussion of the smoking issue. Henry further stated that the Golf Board is doing what the law says is necessary. If this becomes a bigger issue the Golf Board can bring this topic up for discussion at that time. Henry agreed that smoking is bad for general health, but for no more complaints than have been received, things should be kept as they are. Mary commented that there are acres of grass and open area where smokers can support their habit outside of the clubhouses. Mary would like to see this Golf Board be pro -active where the smoking issue is concerned. In previous discussions the golf pros have stated they would be happy not having smoking in the facility where they work. Smoking is currently allowed inside the clubhouses as they fall into the tavern category where liquor is being served. Since young people are being exposed to second hand smoke in the clubhouses, it is appropriate that smoking be eliminated. Mary thinks it is fitting that the Golf Board should reconsider its previous decision. Al Bednarz asked if we as a Board can only recommend or if we can actually decide? Jerry stated that whatever action the Golf Board approves, that decision will then be enforced. Henry commented that we are not operating in the same venue as Lincoln Center or EPIC. For that reason we have to consider our market and customer. Henry feels the Golf Board should follow the letter of the law, which is what we are doing at this time. Hank Hoesli stated that when a_single person lights up, their smoke affects others who do not smoke. Mary feels strongly that we should not allow smoking in any public facility. Commenting as an ex -smoker, Al feels the majority would probably favor eliminating smoking. Hank stated that when the no - smoking ordinance was originally passed, it passed with a large margin. Henry declared that we are complying with the law and when the law changes, we can change. It was suggested by Roger Sample that we take a poll of the golfers using our facilities. Jim Doyle agreed with the idea of taking a poll of the golfers. Al commented that a poll is an interesting idea and asked if anyone wants to make contacts. It was suggested by Kay Thompson that contacts be made with men's and women's golfing groups around the City. Kay and Henry will talk with their respective golf groups in the city. Kay stated that the next meeting of the Collindale Women's Group is in March. Cindy Roper feels the Board should be more pro -active in their stand on the elimination of smoking in golfing facilities. A motion was made by Hank Hoesli that smoking be banned at all City owned golfing facilities such as clubhouses and restrooms. Motion was seconded by Mary Hodge. Jim Doyle then moved to table the motion until the Golf Board obtain the results of a poll and input from the golfing community is received. Motion seconded by Tom White. The motion failed (3:5) with Jim Doyle, Henry Fry, and Tom White voting yes. The main motion was returned to the floor for discussion. 0 • Golf Board Minutes January 20, 1993 Page 1 The question was raised as to whether or not this motion was made as a part of a personal agenda. Hank responded that he made the motion that smoking be eliminated in golfing facilities in the best interest of the general public. A very heated discussion ensued among Board members on whether this issue is being pursued for personal reasons rather than in the interest of golfers. Henry stated he is here to represent all users of the golf courses and we should comply with the law as it relates to tavern facilities. In addition Henry stated that all snack bar concession bidders felt they could operate efficiently with a non- smoking order being in place. Al agreed that if a person wants to smoke that should be allowed, however, it should be done outside. Cindy is trying to be conscientious and pro -active. However, she is concerned about second hand smoke and how this habit affects non-smokers. Hank Hoesli then withdrew his motion and requested that we go on to the next item on the agenda. In reference to contacting various golfing association, Mary stated that 100 to 200 people is a small percentage of the total golfing community. It was suggested by Tom that this question could be asked when golfers are signing in for play. Jerry asked if the Board would like staff to solicit input on the smoking issue? Staff can contact golf pros and snack bar concessionaires to get some additional input. Henry stated that the last time we discussed the smoking issue, the discussion centered around signage at the clubhouses designating smoking areas, and wondered what the status was on the posting of signs? Jerry reported this issue was to be discussed with concessionaires as soon as they were on board. Review of 1992 Golf Board Annual Report Jerry reported that he has been unable to complete the 1992 Golf Board Annual Report. An annual report is required by City Code, and it must be submitted by January 31. The report will be done as in the past; highlighting Golf Board votes and activities. Upon completion the report will be mailed to the Golf Board members for their review by January 31. The annual report can be amended by the Board at a later date. Other Business Hank Hoesli requested that in light of the recent memo received by the Board regarding SouthRidge, a special meeting be scheduled after the first of February to discuss this issue. The consensus of the Board is to get this issue behind us. Jerry stated that this subject is scheduled on the agenda for the February 17 meeting. If a special meeting of the Board is called, it will have to be posted and notices mailed. Discussion ensued on whether to have a special meeting or save that topic for the regularly scheduled meeting in February. After discussion, Al Bednarz stated the feeling of the Board is that we wait to discuss this topic at the regularly scheduled February meeting. As he missed the Citizen Participation item on the agenda, Citizen Brian Golf Board Minutes January 20, 1993 Page 8 Werner took this opportunity to introduce himself. He stated he is a concerned citizen who would like to learn more about Golf Board operations. Henry Fry brought up two items of concern. The first item of concern is the revenue numbers reported on the Collindale Snack Bar. Henry has requested Jerry Brown get a letter of explanation as to why there is a difference from prior years and 1992. There was an average spent at the Collindale Snack Bar of around a $1.07 per round in prior years and close to $1.55 per round in 1992. With those figures Henry wonders why it wasn't worth it to Restrock to submit a bid for the Collindale Snack Bar Concession? Henry would like to clear up these questions one way or another. A response has been received from Derek Cordova, but Jerry would like to get more than one report and is waiting for additional information. Henry stated that if figures can be justified, great. It was also stated we should look to see if money is missing! - Henry's second item of concern is with volunteers working at the golf courses, who do not receive a salary, but are being allowed to use the golf courses for free play. Henry stated that he recently became aware of this situation and that is why he is bringing this to the attention of the Board. This appears to be a liability problem if the volunteer is injured, and it leaves too much room for favoritism. Henry said in addition there are some snack bar employees who are playing free rounds. Cindy Roper asked if the pros find this arrangement advantageous? Jim Greer reported this works out well for him and he has an arrangement with the pin setters at City Park Nine. Al Bednarz stated this sounds like a question for staff discussion. Jerry responded he understands the issue clearly. However, this topic can't be discussed at this time since it may be a part of the investigation. Jerry added he does not think it is a major problem, and is a part of City policy as approved by a previous Golf Board. Roger expressed concern that this situation is similar to what H.R. Phillips lost his job over, and feels this arrangement is a little sloppy. Jim Doyle said his main concern would be over the issue of liability. Henry stated that any person doing volunteer work for the City is covered by the City's Workers Compensation. Jerry added that Golf Pro volunteers injuries are assumed by the pro unless it involves a City negligence, then the City probably assumes responsibility. - Roger Sample heard a couple.of people comment tonight that they knew what someone else thought. Each of us does not understand what the others think, and we are not always going to agree. He would encourage everyone to ask individuals what their positions are, as people can't look into others heads to see what they are thinking. Roger added that before you judge someone, ask what their thoughts are. - Jerry reported the Finance Department changed the revenue report formats again. Therefore he does not have a December Golf Fund financial statement for distribution to the Board. The Accounting Department shows that in 1992 at Collindale and City Park Nine the Golf Fund was $56,000 over projected • Golf Board Minutes January 20, 1993 Page 9 revenues, and the 1992 balances show $43,000 under projected revenue at SouthRidge. The bottom line is that we came out with a $13,000 profit in 1992. Henry Fry questioned if the revenue amounts for annual passes stated on previous 1992 Revenue Reports include the $.50 and $1.00 charges. Jerry replied that these charges are included in the total revenue amount. Cindy Roper agreed with Roger Sample that there have been a lot of comments made and emotions are running high. However, she agrees with the decision of Mike Powers. We still need to work together. Cindy added that she doesn't think it was appropriate to question the operations at Collindale until after the SouthRidge issue is settled. We need to support Derek Cordova and we need to discuss SouthRidge as soon as we are able. Henry stated he brought up the numbers at the Collindale snack bar because they did not make sense to him. These questions were not brought up to reflect on Derek Cordova; Henry was only looking for an answer or explanation. Jim Doyle felt further discussion on this topic was inappropriate since we are under a "gag order". Jerry reported that at last night's Council meeting it was decided to hire a special investigator to look into the procedures used for the SouthRidge Golf Pro selection. Several citizens came to the Council meetings on January 5 and 19 to express their concern. City Council had the City Attorney review the selection process, and considered a resolution to have the City hire outside counsel to investigate allegations against the City staff and officials involved in this procedure. Essentially the citizens believe there was misconduct. The outside investigator may choose to interview or talk with all Board members. On motion by Roger Sample and second by Tom White the meeting adjourned at 9:55 p.m. Respectfully submitted, Alyce Nierman Secretary III Golf Division Meeting Attendance Board Members Staff Guests Al Bednarz Jim Doyle Henry Fry Mary Hodge Hank Hoesli Cindy Roper Roger Sample Tom White Jerry P. Brown Randy Bonneville Jim Greer Joe Nance Alyce Nierman Brian Werner Kay Thompson David Schneider