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HomeMy WebLinkAboutGolf Board Minutes - May 07th 2019 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 1. Review Prior Meeting Minutes: - Action Item a. April 2nd, 2019 Board Member Taylor moved to approve the Golf Board Meeting Minutes for April 2nd, 2019; Board Member Wright 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 The motion carried 2. Financial Report: (8 Minutes) a. Review Budget Report Finance Office Nielson explained the first two pages aren’t the normal budget report. The report compares the prior two years and the current year. The totals are through April of each fiscal year. The total revenues for the Legacy Golf Course were about $6,700 last year, this year they are at $7,000. 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 May 07, 2019 2 In the total revenues for the passes and cards, last year through April they brought in $118,673. This year they have already brought in about $165,579. He said there are a number of factors that could have caused the increase in revenues with the passes and cards. Some of those factors may include: the timing in which the golf course opened, an increase in rates and the promotional bundle items. Board Member Wright said she did not hear any complaints regarding the increase in rates. Finance Officer Nielson reviewed the totals for the last two years; by April of 2017 the total revenues received were $163,039 and $164,249 in 2018, this year they have already received $244,673 that is an increase of about $80,424 over prior years. a. Review Budget FY 20-Seek Recommendation from Golf Board for Elected Officials i. Includes review of Capital Improvement Plan (CIP) ii. Review of additional FT position request Board Member Taylor asked if a report could be processed that indicates the number of passes sold to compare if more passes are being sold or if it’s the increase in rates that is bringing in the additional revenue. County Commissioner Smith asked if the rates for the cart rentals were increased. Finance Officer Nielson replied yes there was a slight increase in the rental fee for the carts. County Commissioner Smith said the report indicates there is an increase of about 50% more than last year. Finance Officer Nielson explained the revenues for cart fees for the first three months in fiscal year 2018 were received by the contractor and not the city. In 2019 fiscal year, the city received those revenues for the first quarter. Finance Officer Nielson reviewed the budget total report for fiscal year 2019 forecast and the 2020 budget. The totals will be the same amount for fiscal year 2019 and the forecast for 2020 because they are expecting to bring the same amount of revenue for fiscal year 2020. In the daily play at Legacy they are expecting to receive $46,000 in revenues, last year $44,245 was received and with the rate increase it will be slightly easier to achieve that amount in revenues. Foot golf is expected to bring in about $2,500. The cart/club rental at Legacy is budgeted in 2020 at $18,000; last year revenues for the cart/club rentals were $17,872. The punch cards/coupons are forecasted to bring in $1,100. The muni only passes – 50% discount is budgeted to bring in $2,600. The muni (legacy) share of dual course pass is forecasted at $16,000. He said the way that those passes work is if someone with a season pass goes to play at Legacy a credit for that revenue will be given back to Legacy. 3 Finance Officer Nielson reviewed the total daily fees and passes revenues for the Legacy Golf Course. The total revenues for the Legacy Golf Course for fiscal year 2019 is forecasted at $86,200 without the sales tax with the net total is about $83,200 that includes some of the conveniences fees as well. Finance Officer Nielson reviewed the revenues for Teton Lakes. Last year there was a large drop in revenues in daily play, possibly due to the Driggs Golf course opening at the same time as Teton Lakes. Teton Lakes didn’t serve the weekend customers they would have normally with the Driggs Golf course being closed. He said he dropped the forecast by about $4, 200 from last month because the revenues weren’t as strong as expected and the spring weather hasn’t been the best. The range daily fees are forecasted and budgeted to collect about $20,000. Finance Officer Nielson reviewed the cart/club rental revenues that are expected to be at $125,000 which is $10,000 more than last year because of the fall revenue. There is an increase in season passes because of the rate increase of about 6%. There was also an increase in the senior golf pass of 33%. The forecasted amount for the season passes will be about $81,000 and last year’s total was $75,000 and this year they have already brought in $56,452 in revenues. The college passes will bring in about $13,500 and the junior passes will reach about $4,500 which is slightly lower than last year. The three month passes are expected to reach $2,300 in revenues. The senior passes are the largest contributor in revenues in the passes category. The family passes are forecasted to bring $23,800 in revenues. Finance Officer Nielson reviewed the punch pass/coupons forecast there is a slight increase in revenues in this category due to the rate increase. The muni dual season pass reduction credited back to the Legacy Golf course when a season pass holder plays golf there. He mentioned last year the city/county didn’t offer the cart punch passes on a promotional sale. The cart punch passes have already brought in $17,944 in revenues. The punch passes were part of the bundling promotion. Council Member Mann asked if the patrons that purchased a cart punch pass have priority over the patrons that haven’t purchased a pass. Finance Officer Nielson explained the carts are on a first come first serve bases. Finance Officer Nielson said the range season pass has seen a large increase, last year’s revenue was $4,700, this year the revenues are at $8,300. The range pass was part of the bundling promotion. 4 Finance Officer Nielson reviewed the miscellaneous revenues. The sales tax needs to be discounted from the totals. In the green fee/other discounts the bundling promotions were not included. This fund will account for other promotions through the year. More revenue from the restaurant lease is expected next year. The winter recreation activities at the golf course brought in some revenue. The convenience fees and capital improvement fees are expected to stay the same. Finance Officer Nielson reviewed the contribution for the water pump station at the Legacy Golf course. The Water Department’s contribution cost is $30,000 this will allow the Water Department to use the water right from the well. The County/Bridge Contribution this is a combination of the county share of contribution plus any contribution for the benches which is $1,000 per bench. He said he forecasted a $5,000 contribution for the bridge in both fiscal year 2019 and 2020. They are hoping to find someone to sponsor the cost of the bridge. Finance Officer Nielson reviewed the fund transfer forecast from the city and county for fiscal year 2019 is about $39,300 and $74,000 for fiscal year 2020 budget. There was a carryover balance of $13,700 from last year. Finance Officer Nielson reviewed the personnel expenditures for Teton Lakes Golf Course. The largest increase to the personnel expenditures will be adding the mechanic positon. The part-time wages are consistent. Council Member Mann questioned if the mechanic positon is a full time postion. Finance Officer Nielson explained how the cost for the mechanic position will be divided between departments; 1/3 city parks, 2/3 golf courses, 25% to Legacy and 75% to Teton Lakes Golf course. Discussion regarding the county’s contribution of $74,000 for the water, $5,000 for the bridge, and $3,000 for benches. There is large increase to city/county contributions for fiscal year 2020 if the tentative budget is adopted. Finance Officer Nielson reviewed the Operations Expenditures. The increase is about $500 over the amount going to be spent this fiscal year. Discussion regarding the amount of work time Noah Phethean’s spend at the golf courses. Finance Officer Nielson said 25% of Noah’s work time is spent doing golf course work per year. 5 Finance Officer Nielson continued to review the Operations Expenditures. Council Member Mann asked why the supply expenses increased. The supplies included the benches that they are going to sell for advertising. Discussion regarding the benches and where they will be located on the golf course. Finance Officer Nielson said the Insurance costs increased because the city has started to include personel expenses in the calculation that only included capitial, and claims prior to the new contract. Discussion regarding adding a swamp cooler to the club house at Teton Lakes. Finance Officer Nieslon said the equipment repairs account also increased; it doesn’t include the carts. Finance Offier Nielson reviewed the capital expenditures. The only capital item at the Legacy course for fiscal year 2020 is to rebuild the main line. The idea is to set aside and spend $8,000 a year over several years to address the problems with the main line. Finance Offier Nielson reveiwed the Teton Lakes capital requests for 2020 that included a storage lean to shed. A greens mower was purchased in 2019 and a second will be purchased next year. Council Member Mann asked if there is space at the new city shop to store the golf carts. Seth McFarland explained the lean to shed is needed to store the new carts and tractor. Finance Officer Nielson said there were two bids received for metal handicap ramps for the golf course club houses. One of the bids came back at $15,700 and the other bid was for $13,000 installed. The discussion was to have the ramp in the 2019 budget. He has pushed it back to the 2020 budget. Finance Officer Nielson reviewed the costs of the dethatcher. Max Egbert had Briggs Roofing look at the roof at Teton Lakes and they said the roof needs to be replaced. 6 Discussion regarding the mechanic position for the city parks and golf courses. They also dicussed being over budget and which items could be removed or moved to fiscal year 2020. It was decided to keep the handicap ramp in fiscal year 2019. The items that will be removed from the budget is the lean to storage shed and the dethatcher. Greg McInnes said the parks department is in need of the dethatcher and they would be willing to pay for half of the cost for the dethatcher. 3. City or County Input/issues (15 minutes) a. Discuss Option for Parks/Golf Mechanic Update i. Handicap Ramp-Review bids if available 1. Amramp- $15,700 installed 2. EZ Access- $11,500 uninstalled/We install approximately $13,000 ii. Discuss possible new approach to memberships and marketing of course learned from MMC-Chuck Thompson-Matt, Todd Smith, and Mayor Merrill 1. http://www.golfmarketingmmc.com/golf-course-marketing-cash- promotion-video/ watch first 3 minutes Mayor Merrill mentioned the MMC-Chuck Thompson marketing theory. Discussion regarding the marketing techniques for golf marketing through MMC. Board Member Johnson asked if Mr. Thompson is paid by commission on the amount of new business he brings in for the golf course. 4. Golf Pro’s update of issues/concerns/problems/projects (10 minutes) a. Other Items as brought forward by Golf Pro None-Golf Pro not in attendance 5. Golf Grounds Manager update of issues/concerns/problems/projects (10 minutes) a. Update on Fiscal Year 2019 Capital Projects and Purchases i. Testing of Legacy Irrigation to assess mainline replacement Golf Grounds Manager McFarland explained there was testing done to the main lines and found seven major leaks in the line. They will continue to patch the line as best they can until the line can be replaced. 1. Recommendation- Do on Sundays from 6 pm to dark Golf Grounds Manager McFarland said he is recommending closing the golf course at 6:00 P.M. to begin irrigating the golf course. Board Member Wright is recommending the first Sunday of the month a notice be posted that the golf course closes at 6:00 P.M. ii. Bridge Update from Seth 1. Further discuss potential donors iii. Other items as brought forward by Golf Grounds Manager 6. Board Business/issues/problems/events (10 minutes) a. Other Items as brought forward by Board Members 7 7. Next Board Meeting on June 4th, 2018 at 5:00 p.m. 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 5:58 P.M.