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HomeMy WebLinkAboutGolf Board Minutes - Setptember 04, 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: Jon Johnson, Derik Taylor, Mike Farnworth Review Prior Meeting Minutes: A. August 7th, 2018 Board Member Derik Taylor moved to approve the Golf Board Meeting Minutes for August 7th, 2018; Board Member Jon Johnson seconded the motion; Chairman John Watson asked for a vote: Those voting aye Those voting nay Board Member Mike Farnworth Board Member Derik Taylor Board Member Jon Johnson The motion carried Financial Report: 1. Financial Report (30 Minutes) a. Budget Report and Forecast Projections Finance Officer Nielson reported on the budget and forecast projections. The Legacy Golf Course has collected about $41,000.00 in daily fees. They increased the daily rate from about $8.00 to $11.00. He believes the increase to the daily rate has increased the revenues collected. The projected revenue will be about $11,000.00. He reviewed the cart/club rental revenues; they are projected to receive about $17,000.00 in revenues. Finance Officer Nielson reviewed the revenues for Teton Lakes Golf Course. The revenues are still low. The projected revenue will be about $140,000.00 which is about $25,000.00 to $32,000.00 less than previous years. Board Member Farnworth asked if there was a daily rate increase for Teton Lakes. Finance Officer Nielson said there was not an increase to the daily fees. They did however change the cart rental rates. Madison County has paid their contribution for the golf carts of about $50,800.00. The budget report also shows contributions made for the benches at the golf course. The bench contributions were made by Todd Smith and John Watson. The city will add their contribution at the end of the year. Finance Officer Nielson reviewed the budget expenditures for the golf courses. The personnel expenses are high at the Legacy Golf Course. They will go over by about $8,000.00. The Grounds 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 September 05, 2018 2 Maintenance for Teton Lakes was budgeted for about $70,000.00 only $55,000.00 has been used. The power bill has been low at Teton Lakes. Seth McFarland said the excavating of the pond has helped with the power bill costs. Finance Officer Nielson reviewed the capital expenditures. The Cushman Utility Trucksters were budget at $12,800.00 they were able to purchase two of them for that amount. The handicap ramp is forecasted to cost about $8,000.00 he is not sure if they will install one this year. He is waiting to hear back from Public Works Director Davidson regarding the water hookup at the clubhouse. The water hookup is budgeted for $14,300.00; however he believes the cost will be about $16,000.00 because of the water connection fee. Finance Officer Nielson continued to review the capital expenditures. He said at the end of the year $50,100.00 will need to be transferred to pay down the golf carts. Madison County pays for half of the cost and the other half is paid by the city. He said by the end of the year the projected deficit will be about $23,300.00. Finance Officer Nielson reported on the golf course clubhouse hours. 94% of the contracted hours have been used. There is about 191 hours left to use until the end of the season. The projected labor charge back is about $9,000.00. b. Follow Up Class Fee Discussion Finance Officer Nielson questioned who pays for the class fees at the golf course. Golf Pro McFarland said the college students use to pay for the class fee. Currently, the high school students pay for the class fee in the spring and fall. Mr. McFarland said he does not charge the high school students that are on the golf team to golf at Teton Lakes; however 60% to 70% of the students on the golf team buy season passes. c. Review Rate Comparisons to region Finance Officer Nielson reviewed the chart of the rate comparisons per region. The costs are shown with and without tax for daily fees, cart fees, etc. The cost comparisons per city and the proposed rate increases were reviewed. Discussion regarding credit card use and the fees associated with credit card transactions. Finance Officer Nielson said the season passes would have the highest proposed rate increases. The City does a city wide fees update in January. He said they would move up that date to allow other departments that are considering updating their fees time to submit them. Board Member Jon Johnson asked if they could postpone the proposed rate increases until next month to have input from Chairman John Watson and Board Member Eva Wright. Board Member Derik Taylor expressed his concerns with the proposed rate increases for this area because sometimes the cost of things may push people away; however, moving forward he suggested a consistent increase per year to keep up with costs whether the increase be a 2% to 3% would be better than a large increase every five years. Finance Officer Nielson asked about increasing the golf 3 cart rental from $7.25 to $7.50. Board Member Johnson said he would agree with a $.25 increase anything higher at this point would double the cost. Board Member Taylor said a golf cart is not essential to golf. Golf Pro McFarland asked about a Christmas sale for the golf cart season pass. Discussion regarding golf cart season passes spring sale vs. Christmas sale. Golf Pro McFarland said he would prefer to have a spring sale instead of a Christmas sale to invite customers into the club house. Staff Accountant Phethean will send out a summary of the proposed rate increases to all of the board members. d. Rounds played report comparison Staff Accountant Phethean reviewed the Teton Lakes and Legacy Golf Pass Utilization for FY2018. He said he spoke with Fourup about tracking the utilization of specific golf pass holders using the golf course. The only way that this possible is if you register the person on the tee sheet then check them in on tee sheet and lastly process them through the sales system. Finance Officer Nielson said they don’t believe it’s worth changing the process to obtain the specified data because of the time constraint. Board Member Johnson said he doesn’t trust the data collected because most season golf pass holders don’t check in at the club house. 2. City or County Input/issues (10 minutes) a. Follow Up Discussion on Bench Advertising/Replacement i. Seeking approval of bench we purchased (Action Item) Tabled due to not receiving the bench in on time for the meeting. Finance Officer Nielson reviewed the Bench Advertising/Replacement. The bench sponsorships will last for a minimum of five years at a cost of $1000.00. They will rotate the benches so the businesses advertising on them have more exposure. Discussion regarding the actual cost of the benches. Council Member Mann said the Chamber of Commerce would help advertise the bench sponsorship. b. View Tournament Reconciliation Report Staff Accountant Phethean reviewed the Tournament Reports. Finance Officer Nielson explained the reason for the tournament reconciliation report. They are collecting the data for each golf tournament to try and understand how each tournament is billed and why they are bill that way. He said each tournament is billed differently some pay for green fees others do not. Golf Pro McFarland indicated he would prefer to be aware of the billing changes to the tournaments to be able to explain the changes to the tournament sponsors. c. Review draft of new Tournament Agreement Form (Defer to October) d. Partial Pass Credit for season pass holder injured –See Letter from Rawlings (Action Item) 4 Discussion to consider partial credit for season pass. There is verbiage when the season pass is purchased that states the pass is non-refundable and non-transferable. 3. Further Discussion of Legacy Future Options for use/irrigation (10 minutes) a. Discuss replacement estimate from Engineers/Seth (may defer to October) Ground Maintenance Seth McFarland said the mowing of the grass at the golf course has slowed due to colder temperatures. He has changed the direction the grass is mowed at the golf course at the Board’s request. He questioned when the Legacy Golf Course will be closing for the season. Discussion on how long the contract indicated the Legacy Golf Course would be opened. Finance Officer Nielson said they will close the Legacy Golf Course the 1st week in October. Board Member Johnson mentioned the putting greens on the north end at the Legacy Golf Course has moss growing all over. Seth said he has been experimenting with quicksilver to get a ratio to kill the moss and not the grass. He said the cost to manage the moss growth is very expensive. He estimates it will take three years to manage the moss growth. Finance Officer Nielson mentioned the tractor aerator needs to be purchase at the beginning of October which is the start of fiscal year 2019. Seth said the differences between the old and new aerators are: the new one can aerate two acres while the old one can only do one acre. He said the new aerator is like having two of the old aerators put together. The parts are similar to the old aerator; however, the hole spacing is much greater with the new aerator. The cost for the new aerator was $5000.00 more. Finance Officer Nielson explained the Parks Department is going to pay half of the cost of the new aerator. The savings cost in labor would help make up the extra cost. The Board Members agreed with the extra cost for the new aerator. Finance Officer Nielson explained the concept of possibly hiring a full time mechanic to work for the golf course, Parks Department and in the winter months work for the Street Department doing snow removal. They will do some research to see what type of budget all ready exists to take away or reduced to allow budget for this new position. Board Member Taylor questioned the deficit of the contract hours at a cost of $9000.00 billed to Golf Pro McFarland. Finance Officer Nielson explained there were a number of contracted hours in the contract. There were more hours used than written in the contract. Discussion regarding the management of the contract hours. 4. Golf Pro’s update of issues/concerns/problems/projects (10 minutes) 5. 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 6. Board Business/issues/problems/events (5 minutes) 7. Next Board Meeting on October 2, 2018 at 4:30 8. 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.