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HomeMy WebLinkAboutGolf Board - Minutes - 03/18/1992• 0 CITY 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, Assistant to the Director; and Alyce Nierman, Golf Secretary MINUTES: Regular meeting of March 18, 1992 The meeting was called to order at 7:30 p.m. by Board President Al Bednarz. Board Members Mary Hodge, Dan Preble, and Tom White were unable to attend tonight's Board meeting. Agenda Review: There were no changes to the printed agenda. Approval of Minutes/Regular Meeting of February 19, 1992: Steve Jouard requested a correction be made to the minutes as presented. The change is on page 2, second paragraph, final two sentences. His statement was that if SouthRidge Golf Course is kept, and the golfers at City Park Nine and Collindale are asked to cover the full debt amount by paying higher fees, we should revisit our decision. There were no other changes or corrections so it was moved by Jim Doyle and seconded by Roger Sample that the minutes from the regular meeting of the Golf Board held February 19, 1992, be approved as amended. Motion Carried (4:0) Citizen Participation: No citizen participation. Recap of City Council Work Session Basically this is a debriefing to see if everybody came out of the Council work session with the same understanding of what was said. Three conclusions were reached at the work session. First, the City will no longer attempt to sell SouthRidge. Secondly, staff informed City Council, if SouthRidge Golf Course is kept, we plan on financially combining all three courses. There were no objections, so our assumptions are that we should proceed. We will still show a subsidy. Roger Sample questioned if we would be a true enterprise fund by receiving a subsidy? The third area is where we go from here with fees and charges? One of the things Council does not seem to want is to tie the Community Value of Golf to the SouthRidge debt. When viewing the five options, Council accepted portions of both the Option C and Option E concepts. This has been interpreted by staff to be something "in between." The City Manager's office has asked us to maximize golf revenues from all courses. We don't have to cover all of the $200,000 debt, yet they want us to work towards that goal. Basically Council wants us to raise as much as we can, and then ask for a subsidy. The next couple of years may be tight with budgeting, but the debt payments will be decreasing annually. Jerry is looking at a few alternatives that may bring in additional funds. One area being considered is raising rates to $7.50 for 9-hole play and $13.00 for Golf Board Minutes March 18, 1992 Page 2 18-hole play at City Park Nine and Collindale; and changing the SouthRidge 18- hole surcharge to $3.00. Also, we may consider raising the cost of annual passes in proportion to the green fee increases. Another option may be to allow annual pass use at SouthRidge during off hours (non prime time). Maybe go to a weekday card or a seven-day card. There are many variations being reviewed. Some options will give annual pass card holders occasional access to SouthRidge. Remember, these are concepts only; and are not written in stone. Jim Doyle disagrees with the statement that annual pass card holders are getting unfair advantages. Jim also commented that we won't get integration of SouthRidge into the system by having different rates at SouthRidge vs City Park Nine and Collindale. It was questioned if Council would actually take a vote on the decision they made at the work session not to sell SouthRidge. Jerry said probably not. Roger Sample feels the biggest victory is that Council decided not to sell the course. And secondly, things would stay status quo. Jerry stated that status quo is $200,000 additional money from the Sales and Use Tax Fund to the golf budget. Steve Jouard then questioned when Jerry would know what the City Manager wants. from Golf? Strategy is to put together the best way we can. Jerry wants Board direction on fees and possible increases. Al Bednarz stated what we may need to come up with a new fee structure; our fees are very low now. Al has no problem with a three course system. We, as the golf fund are designated to provide a city golf system, with no restrictions as to the number of courses. Steve Jouard questioned why we are looking at refinancing the debt if we can get $200,000? Jerry said there is a possibility of money being used from another fund to refinance. We then in turn will repay the debt over a 30 year period. A discussion by members on all the aspects of different forms of financing followed. Jim Doyle commented that being an enterprise fund protects us from budget cuts. Jerry said the main issues to be reviewed are do we increase annual pass fees and if so, how much? Should green fees be raised? And should a pass in any form be used at SouthRidge? If green fees are raised, annual pass fees should be raised accordingly. We know from visits with other courses that there are two types of passes; restricted and unrestricted. Restricted passes would be. good for a certain number of rounds or days. Currently annual passes in Fort Collins are unrestricted as to play time. Non prime play time is usually reduced fee play. Looking for philosophy first, then will plug in numbers. Al Bednarz commented that this is a significant enough change and possibly the whole fee structure should be reviewed. Maybe we should get away from pass structure. Jerry commented that we don't have a great deal of time before the 1993 budget is due to the manager. Also, he feels golfers will get very upset if we appear to manipulate their privileges. Basically Jerry is looking for a general direction on concepts in trying to make the golf fund balance. Roger Sample commented that a fees subcommittee is a good idea. He likes the idea of differences in fees between the courses, and feels A Golf Board Minutes March 18, 1992 Page 3 we should avoid opening SouthRidge to annual pass play? Al Bednarz agrees that fees should be different. We also should look at a major restructuring of annual passes by maybe getting away from annual passes, or restricting times of play. Jim Greer questioned how many more passes would be sold if SouthRidge were to allow unrestricted annual pass play. The general feeling is that many people are just waiting to have annual pass use allowed at SouthRidge. Jim Doyle first expressed his thanks to Al Bednarz for his presentation at the recent work session of City Council. Jim can accept restricted pass use, but to wipe out annual passes completely would cause quite an uprising. Jim then commented that most seniors don't play golf on week ends or holidays, and play more for fitness (clean air and exercise). Steve Jouard questioned if current green fees at SouthRidge kept the volume of play down. Jerry replied fees do keep play down during off hours. Steve does not favor the use of passes at SouthRidge, and does not want to start by even allowing pass use during off hours. Jim Greer commented that some people will pay whatever fee is charged just for the opportunity to play. Jerry feels 1992 will be the largest income year ever. He also stated we are currently using a variable rate structure at SouthRidge by charging $7.00 for 9- hole and $12.00 for 18-hole play during off hours. Steve Jouard stated if the question of annual passes is cost, maybe the basis for annual pass fees should be income level. Roger Sample commented the annual pass fee should be set on net worth, or ability to pay. However, Jerry stated it would be very difficult to implement this type of rate structure. Jerry would like to come back at the April meeting with a report and recommendation for review by the Golf Board. Al Bednarz asked if Jerry had enough feedback from the board to put a report together on fee restructuring. Jerry said yes. Appointment of SouthRidge Superintendent Review Committee Jerry reported we are now starting to recruit permanent staff at SouthRidge golf course. The first matter of business is to appoint a superintendent. Jerry would like two people from board to be part of the review committee. Al Bednarz stated in view of the recent procedures of the Board, we should appoint absent board members. Therefore, the two members appointed to the review committee are Dan Preble and Tom White. Jerry will contact them to inform them of their appointment. Jerry stated the pro position will be coming up for review in September 1992. We will appoint the review committee at a future date . Other Business - Jim Doyle questioned the status of the restroom project at City Park Nine? Jerry responded that we were unable to get through the City system. If we get done by July we will be in good shape. At April's Board meeting, Craig Foreman will make a presentation to discuss building options. - Derek Cordova presently has both snack bar concession operations at SouthRidge and Collindale through December 1992. An agreement between Derek and Rest Rock was presented to the Board. Derek has subcontracted this Golf Board Minutes March 18, 1992 Page 4 service, which is allowed in his contract with the City. Hopefully the method of management and quality of food will be better. This will be a one year experience. - Jerry reported we are negotiating at SouthRidge to improve the bunker hut. It will cost $24,000 to tear it down and build it right. The City is currently working with Derek Cordova on a 50/50 cost split arrangement. Jerry informed the Board that Kent Heusinkveld has been tentatively offered the pro position at the new Loveland golf course, and is now in final negotiations. He could start there around August 1, 1992. Kent would like us to allow him to work half-time with us, and during the last five months of the 1992 the City will pay him $1,000 per month less. Beginning January 1993, there will be a brand new golf pro at SouthRidge. Roger's only concern is that Kent's loyalties would naturally lie with Loveland. Jerry has already talked to Loveland. Al Bednarz questioned the possibility of a new pro contract at SouthRidge in August. Jerry does not want to change pros during the middle of a season. Steve Jouard asked about the timing and process for a pro selection. Jerry responded we should have a new pro selected by the end of September or early October to assume pro responsibilities at SouthRidge beginning in January 1993. This will allow the selected pro enough time to arrange for merchandise. Jerry shared information that the road through the 12th Fairway at SouthRidge Golf Course is still being considered. The City has not given approval as yet for the planned development. The likelihood is the road will be going through in either May or June. Joe Nance is making progress with the pro shop remodeling project at Collindale, and expects to be finished in April with the carpeting installed by the middle of April. On motion by Steve Jouard and second by Roger Sample the meeting adjourned at 9:05 p.m. Respectfully submitted, Alyce Nierman, Secretary III/ Golf Division Meeting Attendance Board Members Staff Guests Al Bednarz Jerry P. Brown Jim Doyle Jim Greer Steve Jouard Joe Nance Roger Sample Alyce Nierman