Loading...
HomeMy WebLinkAboutGolf Board Minutes - November 06, 2018 1 Board Members: Chairman John Watson Eva Wright Jon Johnson Derik Taylor Mike Farnworth Non-Voting Members: Matthew Nielson – City Finance Officer Christopher Mann – City Council Member Todd Smith – County Commissioner Rob Wood – Attorney Duffy McFarland – Golf Pro Seth McFarland – Golf Grounds Greg McInnes – City Parks Manager Justin Beard – City Engineer 4:30 P.M. Airport Board Meeting Roll Call of Board Members: Attending: Eva Wright, Jon Johnson, Derik Taylor, Mike Farnworth and Chairman John Watson Review Prior Meeting Minutes: A. September 4th, 2018 B. Meeting in October canceled. Board Member Derik Taylor moved to approve the Golf Board Meeting Minutes for September 4th, 2018; Board Member Mike Farnworth seconded the motion; Chairman John Watson asked for a vote: Those voting aye Those voting nay Board Member Derik Taylor Board Member Jon Johnson Board Member Mike Farnworth The motion carried Board Member Eva Wright and Board Chairman John Watson abstained from approving the minutes because they did not attend the meeting on September 4th. Financial Report: 1. Financial Report (15 Minutes) a. Review Fiscal Year 2018 Unaudited Budget Report/Forecast Finance Officer Nielson reviewed the Cart/Club Rental - Legacy Fund. The fund increased in revenues by about $7,000.00 by the end of the season. The daily plays were low at the Legacy Golf Course at the beginning of the season; however, with the rate increase, they collected about $14,000. more in revenues. b. Pass Utilization Report/Rounds Played Report Finance Officer Nielson reviewed the Golf Pass Utilization report. The customers using season passes at the Legacy Golf Course was about 8.88% and 91.12% at Teton Lakes. He also reviewed the Rexburg Green Utilization report. The 9 hole play at the Legacy Golf Course is down -17.6% compared to fiscal year 2017. 35 North 1st East Rexburg, ID 83440 Phone: 208.359.3020 x2301 Fax: 208.359.3022 Marianna.gonzalez@rexburg.org www.rexburg.org Golf Board Meeting Minutes November 06, 2018 2 Finance Officer Nielson said the daily play revenues at The Teton Lakes are difficult to explain. They brought in $172,000. in daily play last year. This year they brought in $145,500.00 which is a drop in revenues of about $27,000.00. They did a comparison of 9 holes rounds played they only saw a 4% difference. They reviewed what was charged for daily play verses the advertised rate and noticed there was about a $4,000. given in discounts. They will continue to review and research the shortage in revenues received. The range punch/season pass revenues were lower than they anticipated as well. The cart rentals were fairly close to what was budgeted. Chairman Watson said something that will help with the cart rental revenues is selling out of the cart punch passes. Finance Officer Nielson explained once those cart punch passes sell out it help a lot because they will be able to collect more funds when renting out the golf carts instead of using the punch pass. The punch passes were being sold at a discounted price of $4.50. Finance Officer Nielson reviewed the total revenues collected for passes and cards were at about $168,500. The season pass utilization was interesting this year because more people purchased passes; however, used them less this year. Finance Officer Nielson said there were contributions made from the City and County of $52,800; however, $2,000. of those funds were used to purchase the benches for the golf courses. He also reviewed the Fund Balance Carryover. This year was started with about $39,000 in the red that was the reason there were contributions made from the City and County. Finance Officer Nielson reviewed the Golf Operations Expenses section of the budget. In most of the expense categorizes came in below budget when compared to the forecast. Personnel Costs came in at about where they expected for Teton Lakes; however, they were slightly higher at the Legacy Golf Couse. The payback from the contractor for the personnel costs is about $8,000 for fiscal year 2018. He said after considering the payback they were right on budget for personnel costs. He said managing the contract the way it was managed allowed the city to control the personnel costs. The $8,000 payback was only calculated through September, they are forecasting another $3,500. to cover the rest of the season. The total payback will be about $11,500. Finance Officer Nielson indicated on the capital side of the report they purchased a Cushman Utility Truckster for $12,300. and the Clubhouse water hookup at $11,800. The pond project cost of about $8,000. The pond project helped lower the power bill because of the pump they installed. In total they spent about $48,000. in capitol including the $23,500. spent on the aerators. Board Member Johnson mentioned Grounds Manager McFarland purchased a leaf blower with his own personal funds. Finance Officer Nielson said those types of items need to be purchased out of the small tools fund. Discussion regarding several other items Grounds Manager McFarland has purchased using his own personal funds. Council Member Mann mentioned there should be a policy that indicates the equipment used and stored on city property should be owned by the city. Chairman Watson questioned if there may be a correlation with the weather when there are season pass holders playing less rounds of golf this year. He question if that translates to the reason why there wasn’t as much golf played to less daily fees being paid and less carts being rented. Finance Officer Nielson continued to review the golf course expenditures. There will be a pay back of $50,100. from the city/county for the golf carts. The forecasted profit of about $10,000. The revenues without the city/county contributions were about $493,700. and the expenses without capital and investment cart transfer would be about $487,600. County Commissioner Smith questioned the projected costs for the golf cart up-keep and how often they need to be replaced. Finance Officer Nielson explained the carts are in good condition and there shouldn’t be much up keep costs. Some of the golf carts are 12 years old. Grounds Manager McFarland said some of the carts have steering issues; however, no major issues. The total amount spent on repairs to the golf carts was about $1300. Finance Officer Nielson reviewed the Teton Lakes and Legacy Golf Pass Utilization Report. There was an equivalent of about 16,145 of 9 hole rounds played by season golf pass holders at Teton Lakes making it 91.12%. He said at the Legacy Golf Course there was 1,434 of 9 holes played with a percentage of 8.88%. There was a decrease of about -7.5% of rounds played this year. 3 Finance Officer Nielson reviewed the Rexburg Greens Utilization Report. There was a decrease of -17.6% of 9 holes played at the Legacy Golf Course and a decrease of -3.7% at Teton Lakes. They expected the daily play to be much bigger when they compared it to this report. c. Review Rate Changes again and seek recommendation from the Golf Board 4 Finance Officer Nielson reviewed some of the rate increases for the golf courses. There is a premise of a 5% increase; however, when put into quarter increments the increase averages about a 6.3% increase. Foot Golf increased by 30%. He explained the Senior Season Golf Pass cost was compared to neighboring cities and they charge a significant amount higher than what the city charges. The senior season golf pass in Southeast Idaho is an average cost of about $528.00 the city is only charging $306.75. The proposed increase is 30% making the senior golf pass a cost of $376.00. The seniors would be able to use their passes anytime. Discussion regarding the price of the senior season golf pass in neighboring cities and the restrictions they have for the pass. Board Member Derick Taylor said there needs to be a steady increase of 2 to 3 percent on certain golf fees every year to keep up with costs. He believes the customers would prefer smaller increases to the fees instead of having a drastic increase every five years. Board Member Mike Farnworth moved to approve the rate increase at the Legacy Golf Course and Teton Lakes Golf Course; Board Member Jon Johnson seconded the motion; Chairman John Watson asked for a vote: Those voting aye Those voting nay Board Member Derik Taylor Board Member Jon Johnson Board Member Mike Farnworth Board Member Eva Wright Board Chairman John Watson The motion carried City or County Input/issues (10 minutes) a. Follow up Discussion on Bench Advertising/Replacement i. Seeking approval of bench we purchased (Action Item) b. View Tournament Reconciliation Report c. Review draft of new Tournament Agreement Form Finance Officer Nielson reviewed the cost of the new blenches for Teton Lakes and Legacy golf courses. Board Member Eva Wright asked for the number of benches purchased. Finance Officer Nielson said there would be a total of 17 benches. Discussion regarding the use of the benches and the best location for them to be placed. They determined the benches would be used more at the par-3 hole locations. Board Member Farnworth said he doesn’t believe that many benches are needed. They decided to approve the purchase of 14 benches. d. View Tournament Reconciliation Report Finance Officer Nielson explained the purpose of the Tournament Reconciliation Report. The report gives the Golf Board Members and the Elected Officials an opportunity to review: how the tournaments work, to know who the sponsoring groups are, and to review how much revenue is brought in by those respective tournaments. Staff Accountant Phethean reviewed the Tournament Report. County Commissioner Smith asked if any of the tournaments cause the closure of golf course. Golf Pro Duffy said they close the golf course for the McDonalds Tournament for two days. Golf Pro Duffy explained the McDonalds Tournament brings in people from all over the state of Idaho. This tournament is very well attended and brings in economic revenue to the city. 5 6 7 8 e. Review draft of new Tournament Agreement Form 2. Further Discussion of Legacy Future Options for use/irrigation (15 minutes) a. Discuss replacement estimate from Engineers/Seth Finance Officer Nielson explained City Engineer Brett McDermott and Grounds Manager McFarland have been discussing several options to repair the irrigation system at the Legacy Golf Course. One of the options is to use the Toro 690 series sprinklers; the city has about 150 on hand. The cost of the Toro sprinklers run at about $500.00 per head. He said another options is to go with the Hunter sprinkler heads they aren’t as expensive as the Toro sprinklers; however, they cover the same amount of ground. The Hunter sprinklers cost $105.00 each. They will need a total of 475 sprinkler heads to cover the 49 acres of ground that needs irrigated. They would be spending $50,000 for the hunter sprinkler heads or $237,000. for the Toro 690 series sprinklers. If new piping is installed it would cost $240,000. that would include the mainline, lateral lines and a wire cross. The wire cross is more expensive for the Toro sprinklers because they would need to run wire to every sprinkler head. The cost for the clocks for the Toro sprinklers is $84,000. and $14,000. for the Hunter sprinklers. He said the price for the sprinkler clocks is $7,000.00 each. Finance Officer Nielson reviewed the additional cost for the irrigation at the Legacy Golf Course. The cost for the pump station hasn’t been finalized. There will be a cost of about $38,000. for labor to install the sprinklers and for equipment. 9 Discussion regarding the pump system used to irrigate the Legacy Golf Course and the relocation of the airport. The rough estimate for a new pump would be about $60,000. 3. Golf Pro’s update of issues/concerns/problems/projects (10 minutes) 4. Golf Grounds Manager update of issues/concerns/problems/projects (10 minutes) a. Update on Fiscal Year 2018 capital i. Handicap Ramp-Johnny to update on other options- could do inside and add family bathroom instead and not do ramp if have lift ii. Other items Golf Pro McFarland asked about the sale of season pass for Christmas. Finance Officer Nielson said one option is to have the passes available at city hall for purchase. The other option is to send out an email to the golf course customers indicating there will not have season pass Christmas sale; there will a spring sale with other discounts instead. Golf Pro McFarland said there are several customers that will want to purchase a season pass as a Christmas gift. Golf Pro McFarland mentioned Kameron Garn will be replacing Tyson McFarland. Golf Grounds Manager reviewed the projects he has been working on and the ones he will be working on in the spring. He mentioned one of the bridges slid when there was high water. They will level the bridge in the spring. Finance Officer Nielson reviewed the capital expenses. A lawn mower, aerator and tractor where purchased. The tractor that was needed to be able to pull the aerator cost an additional $17,000. He hopes the city and county will split the difference and each pay 50% of the additional cost for the tractor. 5. Board Business/issues/problems/events (5 minutes) a. Christmas Email and Spring Sale 6. Next Board Meeting on February 5, 2018 at 4:30 7. Executive Session (Statute 74-206)-Only held if necessary, and subsection authorizing the executive session must be stated-Generally held after regular meeting to discuss labor contract matters. (Only if necessary) Adjourned at 6:28 P.M.