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HomeMy WebLinkAboutGolf Board - Minutes - 01/18/2006City of Fort Collins Cultural, Library, and Recreational Services Golf Board Minutes: Regular Meeting of January 18, 2006 Council Liaison to the Board: Councilman Diggs Brown Staff Support to the Board: Jerry P. Brown, Manager of Golf at 221-6350, and Dawn Worth, Administrative Aide at 416-2265 Call Meeting to Order: Board Vice Chairperson Larry Buckendorf called the meeting to order at 7:05 p.m. at the City Park Nine Clubhouse. Agenda Review: There were no changes to the agenda as printed. Items of Note: • Lauren DeRosa, David Johnson and Deron Grothe called to inform us that they would be unable to make the meeting. • Jerry informed the Board that "Fort Collins Fore Kids" has been tentatively scheduled for Tuesday, June 6`h, at City Park Nine in the morning. • Jerry mentioned that the Board would be receiving a memo from the City Clerk's office for the upcoming Boards and Commissions Orientation that is open to all Board Members. • Jerry introduced Jim Higgins who is currently the Assistant Superintendent at City Park Nine and informed the Board that he will be Acting Superintendent when David Sadler retires on February 1, 2006. • Jerry explained that the Golf Board meetings will primarily be held here at City Park Nine because of the increase in business that Manno's Grille at Collindale is experiencing, however we will still meet at Collindale and SouthRidge occasionally. Approval of Minutes: On a motion by Grant Sherwood, seconded by Dan Preble, the Board unanimously (6:0) approved the Minutes of the November 16, 2005 Regular Meeting. Citizen Participation: No Citizen Participation at this time. Review and Approval of the Golf Board 2005 Annual Report Jerry previously sent a draft 2005 Annual Report for the Board to review. He briefly discussed the Annual Report and mentioned that there were a couple of figures that need to be changed and the report also needs approval. There was a motion made by Dan Preble, seconded by Jay Kammerzell, to approve the Golf Board's 2005 Annual Report as submitted with the corrections made. The Motion was approved unanimously (6:0). Jerry also mentioned the Board Members' Meeting Attendance during 2005 Report. Golf Board Minutes January 19, 2005 Page 2 Review of the Financial Status of the Golf Fund Jerry feels the Golf Fund hasn't fully recovered, but 2005 was the best and most solid year that we've had since 2002. In May of 2002 we started downhill and we've been heading that way since. In 2004 we hit bottom and the first half of 2005 didn't show much improvement, but the second half did. The great weather we had in November and late December almost made up for the losses in the first half of the year. In 2005 we ended up with 99.37% Operating Revenue. Jerry discussed a Financial Statement he gave the Board. On the Statement of Revenues, Expenses and Changes in Net Assets spreadsheet Jerry explained that our Operating Revenues were $2,407,416 which was only about $15,200 short of the budgeted amount. We made $12,303 in interest income. Surcharge Revenue was $318,740, which was just below what was projected. The transfer from other funds was the $49,000 we got from the COP's interest earnings for the parking lot at SouthRidge. Shane Houska asked what COP's was? Jerry explained that COP's stands for Certificates of Participation, essentially a lease purchase. Jerry said that's how we primarily funded the Collindale Clubhouse. He explained that Golf wasn't the only department that used COP's or ALP's (Assignment of Lease Payments) money. They are both borrowed funds. The City had some COP's money that they didn't use and that remaining money gained interest. That interest could then be used for any approved COP's project so Jerry claimed $49,000 for the parking lot at SouthRidge and City Council approved it. Grant Sherwood asked what the Miscellaneous Revenue was? Jerry explained that it's basically things that aren't directly associated with Golf Fees and Charges, such as house rent and telephone reimbursements. Jerry mentioned that the expenses we paid to the General Fund was $120,190. He reminded the Board that one of the reasons we started Surcharge Fees in 1998 was to cover Debt Service payments. He said that essentially the $43,207 was our positive cash. Jerry then discussed the Changes in Working Capital spreadsheet. We started the year with $97,750 in Reserves. He said that the proceeds from Lease Purchase bought golf carts and a tractor. The ending Working Capital was $105,225. The remaining ALP's money we have will be used for the Railroad Crossing for the Horsetooth sidewalk. Jerry said that Council has already approved our 2006 & 2007 Budget. If everything is equal in 2006 we will start with $105,000 and end up with $120,000 in reserves. In 2007 we'd end with $116,000 in reserves. In the statement Jerry gave out earlier last year we didn't have money in reserves over the projected budgets and now we're showing positive cash. David Thilmany asked why there wasn't any money on the Lease Purchase line items in the future budgets? Jerry explained that we have money set aside in Capital Purchases and we apply that cash to the Lease Purchase Principal and Interest when it comes time for it instead of trying to project that. Larry Buckendorf stated that he recalls when he first got on the Board we had reserves in the neighborhood of $400,000. Jerry said that the Golf Fund had over $400,000 when Larry started but we used around $100,000 in 2003 and last year we ended up using over $200,000 in reserves to balance. Grant asked how Jerry determines the priorities for Capital Acquisition? Jerry said that each of the Superintendents have had enough experience that they can determine how long equipment should last and they submit requests to Jerry and he then makes the final decision. He mentioned that we rotate 1/6 of our golf carts every year. That's a six -year cycle and by the 5th year we own them outright and we can trade them in. Jerry told the Board that the Operating Revenue sheet he gave them needs to replace the one he mailed. This shows the main revenue items at all three of the courses, Annual Passes, Green Fees, Tournaments, Carts, Concessions and Surcharge. He pointed out that last year we did better than we have in prior years and reminded everyone that we ended the year at 99.37%. City Park Nine showed a profit, Collindale barely showed a loss, and Golf Board Minutes January 19, 2005 Page 3 the small loss at SouthRidge was mainly due to less tournament play. Jerry mentioned that he was very pleased with the revenues from the Collindale Concession because we had $40,000 budgeted and brought in nearly $60,000. He informed the Board that Manno's Grille at Collindale grossed about $700,000 last year. Jerry said the downside of that is we pay more for utilities. Jerry feels with our change in Annual Passes we'll see more Annual Pass play. Jerry mentioned that this statement is not final because the audit has not occurred, but that it should be fairly accurate. Another document that Jerry gave the Board was the Update on the Collection/Usage of Surcharge Fees. He felt the Board should be informed of why we do the Surcharge and what it's paying. He explained that it's picking up the majority of the ALP's and COP's Principal and Interest payments and since we raised the fee it will bring us in some extra money to cover that. Jerry mentioned the Annual Pass report. The Annual Pass Revenues including the Surcharge Fees show that golfers paid $138,640 for 2005. Our total Revenues was $2,407,000 so the Annual Pass Revenues is just a small portion of the entire amount. Jerry said that the average per round payment was $10.56 and that is up from $10.30 from the prior year. The average Annual Pass player played 49.17 rounds. Grant asked what is considered a round and Jerry said it's when someone tees off. That number is up from 47.7 the prior year, or about 1 1/2 more rounds per player. Jerry mentioned that on the monthly report it does break the rounds up by 9-hole and 18-hole rounds. Jerry discussed the December Golf Report and stated that it shows the final numbers for 2005 and we ended up with a little over 123,000 total rounds and that number was up from 118,000 from the prior year. Jerry said that staff took a look back at play days and we lost some significant weekend play in April and May to weather. The good news is that we did well in November and late December to make up for some of that loss. Jerry pointed out that City Park Nine was just behind what it had done the year before, but we expect that to go up with the change in fees, Collindale was virtually the same as the prior year, and SouthRidge is back up. SouthRidge had close to 48,000 rounds and is showing good recovery and if we had more tournaments there in 2005 we would have gotten close to 50,000. He reminded the Board that we have talked previously about the loss of tournaments that we've had. Jerry explained that in 2000 we had over 100 tournaments at SouthRidge and last year we had about 60. We sold 267 passes and probably with our Annual Pass change we'll sell more. Golf Cart revenue increased in 2005. Jerry gave the Board an updated report of the Expenditures for all of the courses. Jerry stated that we ended up saving $13,430 at Collindale, $19,192 City Park Nine, and $18,829 at SouthRidge and $9,357 in Administration. One of the reasons we were able to save was because of employees not receiving raises. Jerry discussed the memo that shows the equipment that we're planning on purchasing through 2006-2010 along with the unfunded items for those years. Jerry said that one of the biggest items is the irrigation pump station upgrades at SouthRidge and we're hoping to replace it by 2008. Grant asked about the additional netting at City Park Nine? Jerry stated that it's shown on the memo in case we have to put some up like we did at Collindale. Jerry reminded the Board that we recently put up netting behind the number 5 green at City Park Nine. He said that he just didn't want to leave it out in case we needed it. Jerry mentioned that the original bridges on 6 and 13 at Collindale need to be replaced and that is a high priority because they are starting to deteriorate. Jerry stated that he was pleased overall with the way the year came out and he feels that the maintenance staff did a great job saving money and hopefully this year they will be able to buy some of the items they need. Golf Board Minutes January 19, 2005 Page 4 Board Members and Staff Comments/Reports Dan Preble asked about the dryness of the courses? Jerry said that we are watering. Shane Houska asked if it was just greens and tee boxes that were being watered? Jerry said that primarily we're watering greens and tees, but we are also watering trees. Jim Higgins said the turf at City Park Nine is holding up pretty well. Shane asked about the cart use and Jim said that they are showing some cart traffic on the turf. Jerry said that we are going to start enforcing a 90 degree rule at Collindale and Randy Bonneville at SouthRidge is going to extend the lines and keep the carts in a certain area. Jerry said that if these dry conditions continue then we may have to take carts off of the courses, with the exception of medical needs. Larry Buckendorf asked if there were any responses to the article that Sean Duff from the Coloradoan wrote? Jerry said that he hasn't had any comments, however David McCleave at City Park Nine has. David said he wasn't sure if it was because of the article, but people have made some positive comments about the change that was made. Larry said that he feels it was a good choice. Jerry said that he was very pleased with what the Board recommended. Jay Kammerzell asked if we were able to put together a brochure for the Golf Expo? Jerry stated that the individual that was going to put it together for us is no longer with the City. Jerry said that Collindale Golf Professional Jim Greer is still going and that he is planning on promoting the City of Fort Collins Golf Courses. Collindale Assistant Golf Professional Pat Finnegan mentioned that they have coupons for the Golf Expo? Jay said that he would talk with some marketing folks at CSU to see if there are some students that would like to help us put one together for us as a project. Jerry spoke to Jim Clark with the Convention and Visitor Bureau and he liked the idea of having a brochure available. • Jerry mentioned to the Board that we would likely not meet in February. Adjournment: On a motion by Shane Houska, seconded by Jay Kammerzell, the Board unanimously voted (6:0) to adjourn at 8:00 p.m. Meeting Attendance Board Members Larry Buckendorf Shane Houska Jay Kammerzell Dan Preble Grant Sherwood David Thilmany espectfully submitted, Dawn Worth Administrative Aide Staff Jerry P. Brown Dawn Worth Jim Higgins David McCleave Guests Pat Finnegan Ralph Miller John Schuh