HomeMy WebLinkAboutGolf Board - Minutes - 10/02/1991CITY OF FORT COLLINS
CULTURAL, LIBRARY, AND RECREATIONAL SERVICES
GOLF BOARD
MINUTES: Regular meeting of October 2, 1991 (rescheduled from September 18)
The meeting was called to order at 7:30 p.m. at the City Park Nine Clubhouse by
Board President, Roger Sample.
Agenda Review: There were no additions or changes to the printed agenda.
Minutes: On motion by Mary Hodge, second by Al Bednarz, minutes from the regular
meeting of August 21, 1991, were approved unanimously (6:0) as submitted.
Citizen Participation: Henry Fry was congratulated for the great accomplishment
of his son, Pat Fry, and the Fort Collins High School Golf Team in winning the
state championship. Henry said the quality of play was attributable to the City
and its support of high school golf.
Community Value of
City Council has set October 15 as the appointment date for a new Golf Board
member. We will try to have the appointee attend the next Board meeting on
October 16 for additional input on Community Value of Golf.
Jerry P. Brown wants to put a couple of pieces of information on the table so
everyone is aware of influencing factors. Of the three courses; Coll indale, City
Park Nine, and SouthRidge; SouthRidge Golf Course is currently operated from a
separate fund. We need to consider whether to combine all three courses, or keep
funding and expenses separate. Prior to 1981 the City provided a subsidy from
federal revenue sharing to the golf fund to help defray expenses. Since 1981
Collindale and City Park Nine golf courses have been self sufficient. Feelings
at that time were that golfers should receive no tax dollars to subsidize the
golf fund. In 1983 we had the first major fee restructuring. Passes were
combined for use at either course. Then, in 1990, there was one other change and
that was to add a per play fee for annual pass users.
In 1982 the City acquired SouthRidge in conjunction with the Bucain Corporation.
1986 saw the City refinancing the original bonds and tacked on to water bonds,
made into a sixteen year pay out. Approximately $400,000 per year is paid in
Principal and Interest. In 1988 a surcharge was initiated, and since that time
play at SouthRidge has dropped. Jerry attributes this to the fact that fees are
higher and secondly (more importantly) is that Greeley has opened Boomerang Golf
Course and golfers can save driving 30 miles to play at SouthRidge.
Play at SouthRidge is probably going to reach only 40,000 rounds of play in 1991,
2,500 less than projected figures used for preparation of income and expenses for
the budget. For 1991 we are $35,000 short of revenue projections. We spent
$15,000 to get things up to par for sale of SouthRidge. We also have an unfunded
need at SouthRidge of around $200,000 for restaurant, physical plant, and
equipment needs replacements. Almost everything was purchased in 1984 with no
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October 2, 1991
Page 2
subsequent replacements; in addition, everything was purchased cheep.
Steve Jouard asked for background on the Recreation Fee Policy. Jerry reported
that originally Recreation was in the General Fund which derives income from
sales tax, use tax, property tax, fees and charges. The General Fund is much
tighter this year with additional programs making demands on funds. Recreation
was then put into a special fund where a portion of revenue is collected from
fees and charges for various recreational programs. The Recreation Fund in 1980
was given a goal of 50% recovery of expenses. Revenue was achieved by raising
fees in high money making activities such as softball. In 1987 City Council
directed Recreation to come up with a fee policy. It took three years to
accomplish this task, but in 1990 the Recreation Fee Policy was adopted by City
Council. Basis of the policy is that users should pay 100% of costs directly
associated with their programs; taxpayers should pick up non -associated overhead
costs (i.e. salaries); and senior citizens, low income, and special group
activities should be subsidized. Council loved the idea and Phase 1 of the
Recreation Fee Policy went into effect in 1991. In Phase I fees were frozen and
more money was given to Recreation funding. After Council adopted the Recreation
Fee Policy, the question came up "Why is golf treated differently from other
recreation programs?" and a directive came from City Council that the Golf Board
should look at the Community Value of Golf and what costs could be attributed to
taxpayers.
Steve Jouard said there are three areas where we should focus our attention in
our presentation of the Community Value: 1) Administration, overhead, salaries;
2) discounts or subsidies on fee policies; 3) environmental, "quality of life".
Administrative costs would be for salaries ($70,000-$80,000). Question was
raised on capital acquisition costs, or who should pick up these costs? Some
separation was made between costs or lump together. Discussion held that whole
cost of acquiring facility would be applied toward capital, and acquisition
costs. Also looked at discounts (subsidies) on fees collected. Looked at
discounts given for annual pass play, discount on senior pass, essentially a
subsidy is given.
We encourage juniors and students. Subsidize to some degree junior high and high
school golf. A total of $60,000-$65,000 possibly falling into community value
of golf. Environmental, qualify of life, why business locate in community. In
presenting to Council, try not to quantify; try to put a list of the best items.
In using SouthRidge, subsidy is already swallowed up by expenses. Also thought
about request for assistance of capital needs at SouthRidge. If fee policy
applied, capital expenses should be borne by amount set for community value of
golf.
Roger Sample reads feelings as the whole thing totalling $500,000+. With Golf
Fund and taxpayers each paying half it comes to around $250,000, which happens
to be what is currently subsidized for SouthRidge. If recreation fee policy is
applied consistently, green fees would be decreased. Risk we run as enterprise
fund is that funds could be raided, if fee policy is developed on the lines of
the current Recreation Fee Policy. Question was raised by Mary Hodge on when and
if sale of annual passes were eliminated. Jerry said a reason sale of passes
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October 2, 1991
Page 3
started was cash flow in early
1910's were a down era in golf.
almost impossible to eliminate.
spring before green fees start coming in. The
Once pass play has been established, they are
Roger commented a lot of time has been spent on this so far. Jerry said Council
probably won't have a work session with the Golf Board until they have a chance
to see a report from us. We are looking at submitting a report sometime between
November 1 and mid November. Tom White raised the question of when and how do
we generate this report? Steve Jouard and Jerry will meet and try putting
together a draft report for the next meeting scheduled for October 16. Board
would like to have the fiscal and environmental elements discussed at tonight's
meeting included in report.
Al Bednarz questioned why annual passes were continued. Jerry stated if there
were no annual passes, green fees could be reduced. Al would like to have City
Council reconsider their decision on continuation of annual passes. Steve Jouard
commented that some members of our current Council feel all golfers should carry
SouthRidge expenses. Dan Preble felt environmental issues are great and should
definitely be included in the report we present to Council. Al stated that 11
years from now the City would be faced with receiving $200,000 per year in
revenue forever. Roger Sample feel we need to state there is a break even point
and that the City will eventually have an asset. Tom White commented that one
reason Fort Collins is thought of so highly for relocation is the number of park
acres and golf courses inrelation to population. Jerry reported that Fort
Collins is above the national average for number of public holes available to
population.
Jerry also reported that American Golf Corporation is in Fort Collins now and is
talking to the City about a possible take over of all three courses and operating
them. Roger Sample then commented that it seems we are headed in the correct
direction and we should have Jerry P. Brown and Steve Jouard proceed in producing
a draft report.
Board Members and Staff Comments/Reports
-- Jim Greer would like to see down the road that there be a break for junior
green fees.
-- Jerry reported that Collindale and City Park Nine are doing well for the
year, while SouthRidge is down 2,500 rounds. If any board members have
questions on statistics, contact Jerry. Expenditures are running exactly on
budget.
-- Jerry stated at the next board meeting on October 16, 1991, there probably
will be three major items on the agenda: 1) Community Value of Golf Draft;
2) 1992 Fees and Charges to be Adopted; 3) Desired Capital Projects.
-- Jerry also reminded the board that we are reviewing the parking situation at
City Park Nine.
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October 2, 1991
Page 4
-- Jerry informed the Review Committee for the City Park Nine Snack Bar
Concession that Beth McKinney will not be re -bidding for this concession.
Committee consists of Al Bednarz and Mary Hodge.
-- Jerry also wanted to share with board that the City has placed
advertisements in local newspapers that SouthRidge Golf Course is for sale.
-- Henry Fry shared that in his travels and conversations, the biggest
complaints he has heard on playing at SouthRidge is the condition of the
greens.
On motion by Al Bednarz and second by Tom White, the meeting was adjourned at
8:45 p.m.
Respectfully submitted,
Alyce Nierman
Secretary III
Golf Division
Board Members Staff Guests
Roger Sample Jerry P. Brown Henry Fry
Al Bednarz Jim Greer
Mary Hodge Alyce Nierman
Steve Jouard
Dan Preble
Tom White