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HomeMy WebLinkAboutGolf Board - Minutes - 07/18/1990CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES GOLF BOARD MINUTES: Regular Meeting of July 18, 1990 The meeting was called to order at 7:34 p.m. by President Roger Sample. Members Dan Preble and Terry Gilmore both called to say they could not attend the meeting. Agenda Review: No changes to the printed agenda. Minutes: The minutes of the regular meeting of June 20, 1990 were approved unanimously, as submitted, on a motion by Al Bednarz, seconded by Cathy Fromme. Citizen Participation: No citizen participation. Revised 1991 Golf Fund Budget Jerry P. Brown introduced this item. He summarized the 1991 budget process of the approximate 5% increase to green fees and annual passes, which achieves the $100,000 in Golf Fund reserves as suggested as appropriate by the Board. The budget includes the two desired capital projects approved by the Board for 1991 of the flushing Collindale restroom and Phase I of the computerized irrigation system at City Park Nine. After this budget was submitted (which showed the future year deficits), Jerry revised the 1991 proposed budget at the suggestion of the Budget office and City Manager to increase annual revenues by around $43,000 to eliminate the deficit and maintain the acceptable reserves. This $43,000 was raised by instituting a new $1.00 per play fee to annual passes. This $1.00 per play fee to achieve roughly $40,000 was the second choice of the Golf Fee Structure Committee if $40,000 needed to be added. Jerry then distributed the revised budget data to Board members. The board will make its final 1991 fees and charges recommendation to Council at the September meeting. Cathy Fromme asked if the $1.00 per play fee was the only change to the budget/annual passes. Jerry said yes. Al Bednarz briefly summarized the Fee Structure Committee recommendations noting that the first choice to achieve $40,000 was to add 50 cents to 9-hole green fees and create a 50 cents a player fee for annual passes. Al said the committee worked hard to develop its recommendations and he is dismayed as to why staff recommended the second choice. Citizen Harvey Kellner spoke stating he 'joined' Collindale in 1976 and that senior citizens pay taxes to schools without having children and that seniors spend money here. Citizen Jack Bowman asked if the school teams were paying their fair share? Roger Sample responded that most high school and junior high school team golfers already have annual passes. Jerry explained the Poudre R-1 policy. Citizen Don Petring asked if the $1.00 was for every time a golfer went out and completed 18 holes of play. Jerry responded the $1.00 is for every time a golfer starts a "round" of play, up to 18 consecutive holes of play. Citizen Rod Lamb asked if City Park Nine and Collindale make money? Jerry said yes, including paying for all necessary capital. Citizen Dorothy Bourque asked Golf Board Minutes July 18, 1990 Page 2 how many annual pass card holders? Jerry said 626 regular passes have been sold plus 78 family members for a total of 704 annual pass card holders as of June 30. Dorothy asked how much money have they paid, and Jerry said roughly $162,000. Dorothy thinks we would lose money if we eliminated annual passes. Don Petring said he pays taxes, but he doesn't benefit from the schools. Harvey Kellner suggested splitting up annual passes. Citizen Paul Lawrey said he has been a 'member' since 1966 and wants to know what the schedule for fee adoption will be this year? Jerry explained the schedule. Al Bednarz would like to continue discussing this issue at the August meeting. SouthRidge Issues Jerry explained the status of SouthRidge. Council discussed SouthRidge at their July 10 worksession. For the benefit of the audience, Jerry provided general historical data on how we got to this point. The bottom line is that the City has an annual average taxpayer subsidy of $265,000 per year through 2002 and Council asked staff to provide options on how to reduce/eliminate the taxpayer contribution. The course pays for 100 percent of its annual 0&M expenditures, plus all capital equipment and capital improvement needs, and provides approximately $100,000 per year applied to the debt service payment. Roger Sample stated that the Golf Board position has been that golfers should not have to foot the bill for the debt. Jerry noted that the City will take over the management of SouthRidge no later than January 17, 1991, when the agreement with Bucain terminates on its own terms. Roger commented on the Council worksession on SouthRidge that Council seems to be softening some on the position regarding the General Fund participation. Cathy Fromme agrees with Roger as she has spoken with Ann Azari who expressed that she feels the whole town benefits from golf even if it is just as a result of the open space a golf course creates. Mike Powers distinguished between the Golf Board and City staff and the different recommendations made to Council regarding the debt. Mike stated Council has asked us to explore trying to sell SouthRidge, and to consider looking at providing limits to annual passes rather than just eliminating them. We also discussed with Council the option of taking over the pro shop merchandise business. Roger asked about the 1991 projected revenues and what amount we could reasonably expect to earn if the City ran the course, noting that the staff information suggests the City can run SouthRidge more profitably. Cathy wants to know if we can find out what SouthRidge is worth? Mike Powers said we could get an appraisal, but the best way is to put it on the market to see what (if any) people are willing to pay. Jerry indicated that the cost for water rights is potentially a big stumbling block to sell the course. Roger discussed the staff estimates for generated revenues which indicate that a sale price of $1.5 million is the minimum. Roger suggested a subcommittee for the study of the sale price issue. Roger and Steve Jouard will be the subcommittee, and they will try to Golf Board Minutes July 18, 1990 Page 3 gather data about the benefit of golf to the community in general. Al and Cathy will continue to study fee structure issues. Don Petring asked if the fee structure committee looked into non-resident fees? Cathy said yes and it was decided that these fees wouldn't generate significant revenues and that a process in Fort Collins is very cumbersome. Citizen Erhard Wolf commented about capital expenditures at SouthRidge because of the configuration of the housing on the course, and he thinks the City should sell SouthRidge. A question was asked by a citizen regarding auditing the finances of SouthRidge. Roger responded that two audit reviews (both at the request of the Golf Board) had been completed. Citizen Irene Pearson said if users of EPIC and the Lincoln Center, etc. don't have to pay for the capital construction of their facilities, why should golfers be forced to pay totally for golf courses? Several others agreed with her comments. Citizen Verna Lamb asked if Lottery reserves could be used for golf? Jerry replied that Council's policy is for Lottery money to be used for open space and trails. Hary Kellner said we need golf courses. Other Business Roger Sample complimented Jerry on the way he handled the Council worksession and also how well he and Dick Zubradt responded in the recent newspaper story. Jerry briefly reviewed the status of the financial and statistical reports. Cathy Fromme made a motion to adjourn the meeting at 9:16 p.m. Respectfully submitted, Steve Jouard, Board Secretary Meeting Attendance Board Members Staff Guests Roger Sample Steve Jouard Al Bednarz Cathy Fromme Mike Powers LaVon Blaesi James Stephens Jerry P. Brown J. Don Petring Jack P. Bowman Bill Metier Harvey Kellner Louis Bonin Jim Greer Rod Lamb Henri Bourque Alyce Nierman Dorothy Bourque Verna Lamb Irene Pearson Bob Pearson Raymond Slocum Ken Boulter Erhard Wolf Bill Zech Jim Mitchell Bob Maddox Kent Heusinkveld Henry Fry Paul Lawrey