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HomeMy WebLinkAboutGolf Board Minutes - May 13, 2025 1 (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Golf Board Minutes – May 13, 2025 Council Members: Karl Boehm Paul Sorensen Brian Parkinson Eva Wright Non-Voting Members: Board Chairman Johnson Matt Nielson – City Finance Officer Colin Erickson – City Council Member Brent Mendenhall – County Commissioner Spencer Rammell – Attorney Cameron Garn – Golf Pro Seth McFarland – Golf Ground Greg McInnes – City Parks Manager Justin Beard – City Engineer 4:30 P.M. Golf Board Meeting Roll Call of Board Members: Attending: Brian Parkinson, Eva Wright and Chairman Jon Johnson. Absent: Karl Boehm and Paul Sorensen 1. Review Prior Meeting Minutes and approval (Action Item): a. April 8, 2025 Board Member Wright moved to approve the Golf Board Meeting Minutes for April 8, 2025; Board Member Parkinson seconded the motion; Board Chairman Johnson asked for a vote: Those voting aye Those voting nay Board Member Parkinson Board Member Wright Board Chairman Johnson The motion carried. 2. Financial Report a. FY 2026 Annual Budget Meeting Review/Recommendations (Action Item) Finance Officer Nielson reviewed the Fiscal Year 2026 Annual Budget for the city/county golf course, starting with the Legacy Golf Course Revenues. The revenues have increased quite a bit from year to year in the daily play; however, he has forecasted a slight decrease in revenues for Fiscal Year 2026. The economy could change quickly in terms of revenue; therefore, he has forecasted a decrease. The cart rental revenues are doing well, and the season pass revenues continue to grow. This year they did raise the rate on the season passes; however, they have already sold $48,000 of passes. Finance Officer Nielson reviewed the total revenues for the Legacy Golf Course. Finance Officer Nielson reviewed the Teton Lakes Golf Course Revenues. The daily play at Teton Lakes has continued to increase; however, he forecasted a slight decrease in the daily play. The revenues for cart rentals are high and the season passes have been high as well, especially in family passes, those revenues have surpassed the forecasted amount. He mentioned the non-resident surcharge, which they are going to discuss more later; it is a new fee and not showing any revenue yet that you know could change based on our decisions. The non-resident surcharge has been added at both the Legacy Golf Course and the Teton Lakes. He also added a golf simulator fee; however, he does not know how much revenue the golf simulator rental fee will bring in at this time. They have budgeted $30,000 for the cost of the simulator. 2 Finance Officer Nielson reviewed the Fund Balance Carryover it is the last revenue item listed under "Other Revenues." At the beginning of fiscal year 2025, they carried over approximately $603,000, which was a significant amount—they had never done that before. There were many capital projects this year, so he planned to draw down from that balance to give some perspective, he expected the carryover to decrease to about $405,000. That meant we were going to use around $200,000 of it this year. Then, if we followed through on everything in the proposed budget for next year, we would draw down another $191,000. That would bring the balance down to approximately $214,000. So, the trend wasn’t great in terms of maintaining a healthy carryover. They were clearly relying on it heavily, based on these projections. He knew they would need to keep an eye on it and consider cutting some items or hope that revenues came in stronger than expected. Finance Officer Nielson reviewed the Legacy Golf Course expenses. He said he spent more time reviewing the salary line. When he projected the salaries, he included the potential for merit increases throughout the fiscal year. He also included a 2.42% cost-of-living adjustment (COLA), which was scheduled to take effect in late October. He calculated the golf course salaries by allocating 25% to the Legacy Fund and 75% to Teton Lakes, based on the number of holes on each course. He also had two new staffing requests. One was for a new hire to 3 assist Ground Manager McFarland with groundskeeping, and the other was for an assistant in the pro shop to support Golf Pro Garn in the clubhouse. Finance Officer Nielson said he discussed these proposals with Golf Pro Garn and Grounds Manager McFarland and acknowledged the challenge of hiring full-time golf staff when the course isn’t open year-round. For the clubhouse, they discussed possibly adding a golf simulator. That way, the new staff member could run the inventory and simulator during the winter and also help operate the Winter Sports Park. On the grounds side, the new hire could handle outdoor maintenance of the winter park. He proposed that the city cover 25% of the grounds position, which would effectively give the recreation department access to that staff member for three months of the year. This support wouldn’t be limited to the Winter Sports Park; the staffer could assist with other recreation programs, such as basketball, etc. For the clubhouse position, the idea was to use that person primarily during the two months when the Winter Sports Park was operational. Their main tasks would likely involve renting skis and managing other winter rentals. The Golf Pro, Recreation Director and Race Director would need to coordinate scheduling carefully, since the staffer would work a standard 40-hour week and they would want them available during the park’s busiest times to avoid overtime costs. Everyone seemed to agree with the proposed staffing split between city recreation and the golf course.While the Winter Sports Park did require a higher subsidy, they hope that having full-time staff would lead to better continuity and long-term success. They also discussed grooming responsibilities for the Winter Sports Park. It seemed the preference was for our team to take over that responsibility moving forward. Doug had indicated he was done with that task, and our team felt it made sense for them to handle it going forward. The ground crew is more familiar with the sensitive areas and could maintain the course more consistently. County Commissioner Mendenhall said as we start hiring new staff and assigning them dual roles for both the joint partnership and city recreation purposes, they need to consider how damages, costs, and revenues would be shared—especially from assets like the simulator and the clubhouse. Historically, they hadn’t formally addressed those questions, but it might be time to revisit them. It was something we should keep on the radar, especially during the budgeting process. Finance Officer Nielson said the hope was that the Winter Sports Park would benefit all county residents—not just those living in the city. For context, in 2023, they subsidized the park by about $3,500. In 2024, that number rose to $18,000, and in the current year, it was approximately $8,300. Next year, he expects the subsidy to increase again to around $18,000. This increase was largely due to their commitment to fund those new staff positions. For example, they previously charged about $6,000 in salary and $3,000 in benefits for full-time staff. That was projected to increase to about $11,500. The hard part was the projected revenue. They were estimating $22,000 for next year, but in 2024, they only brought in $2,200. So, there was a real financial risk. They could potentially lose between $18,000 and $40,000 depending on how things turned out. If, in the future, they decided that the Winter Sports Park wasn’t worth the financial commitment, the golf program might have to absorb the full cost of those positions or reevaluate them entirely. Council Member Johnson clarified with what Finance Officer Nielson explained, they aren’t at that point yet. The discussion was simply intended to raise awareness. As plans for the Winter Park became more ambitious, we didn’t want anything to jeopardize the strong partnership between the city and the county. While the golf course is located in Rexburg, the county still has a stake in it, and that relationship needed to be respected and maintained moving forward. Finacne Officer Nielson said as he reviewed the budget, there were a few points to consider regarding part - time labor. With the proposed approval of new full-time positions, they plan to reduce part-time labor—more significantly on the Teton Lakes side than at Legacy. After working closely with Golf Pro Garn and Grounds Manager McFarland, they determined that having a full-time staff member would offset some of the current part- time labor hours. Finance Officer Nielson continued to review the budget report and explained that one key capital item noted was the rebuilt of the main line. In the current fiscal year, they had spent $65,300 on this project, which was our largest expenditure to date for this line item. For the following two years, we anticipated spending $40,000 annually. The expectation was to complete the project within that timeframe. This project, led by Grounds Manager McFarland’s crew, had been highly effective and came in well under the initial cost estimate —likely under a couple hundred thousand dollars, as opposed to the forecasted millions. Board Member Wright questioned the increase in the water, sewer, and garbage line item for Legacy. Finance Officer Nielson responded this increase was due to a new surface irrigation fee they were required to pay. Previously, they had pumped water themselves, but now they sourced it from the canal and attributed the associated costs to this line item. 4 Finance Officer Nielson reviewed the total Legacy expenses, he projected a rise to about $300,000. In comparison, in FY2023, total expenses were approximately $220,000. The increase was primarily due to the inclusion of the new full-time positions. Finance Officer Nielson reviewed the Teton Lakes expenses, the new hire positions led to noticeable increases in costs, reflecting the 75/25 budget split between Teton and Legacy based on their share of operations. We planned to reduce part-time grounds maintenance expenditures —from $211,000 this year to about $195,000 next year. For the clubhouse, we anticipated a drop in part-time labor from $70,000 this year to $45,000 next year, as the full-time hire would take over many of those hours. Finance Officer Nielson reviewed the fertilizer and chemical costs remained consistent with past years, though we applied modest increases. In the budget, herbicides and fungicides were listed at $10,600, and fertilizers at $22,500. These figures could fluctuate depending on when Ground Manager McFarland placed orders and how much inventory remained from previous seasons. Regarding insurance, he noted that current figures were placeholders and subject to change once actual numbers became available from the carrier. 5 Finance Officer Nielson continued to review the Teton Lakes expenses. A noticeable increase was observed in the equipment repair line item. This rise reflected better maintenance practices implemented by Golf Course Mechanic James Mason, with the line item accounting only for parts—labor was already included in salary expenses. Similarly, expenses related to golf cart maintenance had risen due to an increase in cart numbers. He had budgeted $18,500 for this. Finance Officer Nielson said in terms of capital equipment, they had purchased two rough mowers this year at a cost of $90,000. For next year, they planned to purchase one fairway mower. Other planned capital investments included additional Cushman utility vehicles, a sprayer, and a reel sharpener. Board Chairman Johnson questioned the $10,000 liability loss line item. This was attributed to an incident involving a drunk driver who caused damage. Although the responsible party was uninsured, the city was attempting to recover the cost through restitution. Finance Officer Nielson asked about ghe VFD (Variable Frequency Drive) pumps that were ordered earlier in the year for approximately $40,000 had not yet arrived, though they had been ordered and were expected to be delivered once the vendor completed manufacturing. Discussion regarding the clubhouse remodel, he had budgeted $140,000 for the year and were currently at about $136,000. The work was nearly complete, with only minor items remaining. All bathrooms were fully open, handrails had been installed, and fixtures such as paper towel and toilet paper holders were in place. The only item still outstanding was the air conditioning system, which was scheduled for installation soon. Overall, the remodel was seen as a success and a great improvement for the cost. Finance Officer Nielson mentioned for future projects, he included $5,000 for a minor renovation at Teton Lakes and planned for the purchase of a golf simulator and a reel sharpener costing $30,000. An additional $20,000 in capital equipment was also budgeted for the current year, to complete some work down by the shops. 6 Finance Officer Nielson reviewed the transfer on the next page. That transfer served two purposes: it was used to pay the obligations for the golf carts and to set aside approximately $50,000 to $55,000 for irrigation. He took those funds out of this particular fund, and when he reviewed it further, he showed how much the city and county also contributed toward saving for that project. He said his takeaway at the time was that he needed to monitor revenues closely. He believes they are probably in a good position and would not need the city and county to contribute directly to the fund for a couple of years. However, he acknowledged that they might have to resume those contributions in a few years. County Commissioner Mendehall asked if they should consider contributing an additional $10,000 to $20,000 to have a financial cushion although it isn’t necessary at this time. Finance Officer Nielson said the reason he didn’t pursue that increase is because he had already increased the amount he was putting aside in the Capital One account over the next few years. He has requested $70,000 in the next budget cycle, while funds were available, he felt it was a good time to prioritize irrigation. Board Member Parkinson acknowledged the amount of funds being set aside are only a minimal amount for the irrigation project. The irrigation project would eventually require a significant capital investment. Finance Officer Nielson responded to give context, he hoped to set aside about $211,000 this year and another couple hundred thousand next year. That meant in five years, they could have a million dollars saved. That would allow them to begin addressing the worst nine holes and continue saving. He is attempting to ratchet up the savings over time to about $125,000. At that point, particularly on the city side (and likely the county side too), general revenues were not keeping up with increasing expenses. A significant gap has formed. For example, he looked at a four-year report that he planned to present to emergency services. Over four years, our general revenues had increased by about 19%, while public safety costs had risen between 40% and 60%. So, he is trying to find the right balance. When it came down to priorities, he believes they would all agree that public safety would likely take precedence over golf. Finance Officer Nielson noted another factor they hadn’t yet discussed: the resident vs. non-resident rate. That could be an area to increase revenue. He briefly reviewed the total profit and loss figures. Two years ago, Legacy made a profit of $21,000. Last year, they profited $60,000. This year, they were projected to break even, and next year, they were expected to lose about $20,000. Teton Lakes lost $27,000 in 2023. However, they 7 profited $75,000 the year before — their best year ever. This year, he expected a loss of about $194,000, and next year, a loss of approximately $170,000. Board Chairman Johnson mentioned they have been doing significantly more capital projects than they used to. It felt like they were catching up on a backlog of equipment and facility needs. Finance Officer Nielson reviewed the Golf Debt Service Fund, now renamed the Golf Capital Reserve Fund, since city/county had paid off their debt. Madison County paid their portion off in 2023, and the city finished paying off their’s in 2024. So, instead of operating at a deficit, the fund would now start building a balance. He requested that both the city and county contribute $70,000 in the next fiscal year. A transfer of $110,000 was also expected from golf operations.Further down in the report it indicates they had paid around $4,100 in interest and $5,200 in principal on the golf carts. They expected to make payments on those carts for another two to three years at most. At that point, they would need to decide whether to purchase additional carts or instead set aside another $100,000. County Comissioner Mendenhall asked if the golf board had discussed the need for more carts and if they run out of carts to rent often. Golf Pro Garn responded they are at a good number with golf carts. While they lost a few carts over at Legacy, the situation seemed manageable. So far that year, there had only been three days when people had to wait for carts, which wasn’t bad. I expected a few more such days, but overall, it seemed safe. Board Chairman Johnson added cart rentals at Legacy really helped increase revenue. Previously, they frequently ran out until we sent more carts over. Board Member Parkinson said while they could use even more, there simply wasn’t enough storage space. They currently can only store about 18 carts at Legacy. The ideal number seemed to be 22. Despite the buddy pass price increase, demand remained steady. Finance Officer Nielson asked if anyone had recommendations or changes regarding the golf budget to propose to the elected officials to consider. There were not recommendations from the Golf Board Members. 8 Board Member Wright moved to approve the Fiscal Year 2026 Annual Budget Report for the Golf Course; Board Member Parkinson seconded the motion; Board Chairman Johnson asked for a vote: Those voting aye Those voting nay Board Member Parkinson Board Member Wright Board Chairman Johnson The motion carried. 3. Board Business/issues/problems/events a. Cable Railing Updates and recommendations (Paul Sorensen) i. Sign Needed starting “Please do not climb or stand on the cables or rails” 1. Can Cam order and Seth install? (Action Item) Board Chairman Johnson said Board Member Sorensen informed him someone had tightened the cable railings on the deck at Teton Lakes. Golf Pro Garn said it appeared that while the new sections were tighter, the older parts were still a bit loose.All of the areas damaged by the drunk driver had been fixed correctly. The workers had returned, cut off the edges, and pulled the cables tighter. They even ground down a threaded part to get additional tension. Board Member Parkinson said he leaned against the cables recently and thought they seemed fine. The spot in question definitely felt tighter than before. Over time, the cables might stretch, but the situation seemed acceptable for now. Finance Officer Nielson said for liability reasons, they agreed it would be wise to post a sign saying, "Please do not climb or stand on the cables or rails."They discussed placing one sign at the top of each stairway. It could serve as a reminder to both kids and parents, even if the sign didn’t stop everyone. At the very least, the sign would protect us from the argument: “You never told us we couldn’t do this.” They agreed to put up two small signs — one on each side of the stairs. b. Discuss or Select Stain Color for deck (Action Item) c. Further Discussion on a non-resident rates i. Could charge non-resident rate without specific proof of residency ii. If going to do it would be good to implement later this season to notify golfers of changes for 2026 season Discussion regarding the selection of stain color for the Teton Lakes club house deck. 9 • The deck had a ceiling added but no new stain; the appearance was considered acceptable. • A darker tint was recommended to cover splotchy areas and create a more uniform look. • The stain would match existing darker patches, avoid harsh contrast with siding, and not be too dark to attract heat. • A brown-tinted seal was recommended for better coverage and longevity. • The work was expected to begin within a few weeks and be completed before the first week of June. • The solution was seen as visually effective and durable. Discussion regarding the non-resident fee. • A 10% non-resident fee was discussed due to increased out-of-county usage of the golf course, particularly from Rigby. • To simplify administration, the proposal was to raise all fees by 12–13% and offer a 10% discount to residents who provide proof (e.g., driver's license or utility bill). • This would treat the residents’ benefit as a discount rather than penalizing non -residents. • The approach mirrored practices in other cities (e.g., Idaho Falls, Meridian). • A system update would allow tracking of resident discounts. • Public notice and a 60-day approval process would be needed; changes would take effect next year. • The Board Members agreed to move forward with rate changes, including the resident discount model and have staff return with the proposed rate changes. d. Discussion regarding request from Lynn Wilcox-See Letter (Action Item) Discussion regarding Lynn Wilcox request due to injury sustained at the Teton Lakes Golf Course. All board members have reviewed the documents related to the Lynn Wilcox case. Mr. Wilcox had requested that his golf and range pass from the previous year be carried forward to the current year and asked for an additional pass for the next season as compensation for an injury he claimed occurred on city and county property. During the discussion, it was clarified that he had wanted more than a simple punch pass —he requested a lifetime pass. He had stepped over a yellow rope to avoid walking through water, which led to his injury. However, the day he claimed the incident occurred coincided with the Cooper Norman Tournament, where 147 people, including the former city attorney, played the same course without any issues. Staff found no record of Wilcox checking in at the pro shop that day, which was standard protocol. City Attorney Rammell noted that Mr. Wilcox did not file a formal injury claim within the designated period. According to city policy, any request for a season pass refund due to injury must be submitted by June 15. Although Mr. Wilcox was injured before that date, he failed to report it on time. Staff emphasized that according to legal counsel and documentation from the risk management service (ICRMP), there was no liability on the part of the city, and the statute of limitations had expired. Mr. Wilcox later returned to play golf, which he explained was approved by his doctor, who stated the injury wouldn’t worsen. The board questioned the logic of requesting a refund or additional passes after he had continued to use the course. Board Member Parkinson expressed concern that approving Mr. Wilcox’s request would set a poor precedent, reward questionable behavior and bypassing established procedures. The Board Members acknowledged the importance of fairness and consistency in handling such claims and appreciated staff for following proper protocol rather than making exceptions. However, the board agreed that while they sympathized with his injury, it was not caused by negligence on the city’s part and did not justify an exception. Board Chairman Johnson moved to denied Lynn Wilcox’s request to transfer or refund of the season pass; Board Member Parkinson seconded the motion; Board Chairman Johnson asked for a vote: Those voting aye Those voting nay Board Member Parkinson Board Member Wright Board Chairman Johnson The motion carried. 10 County Commissioner Mendenhall said, although not a board member, he requested to have his disagreement noted in the meeting minutes. He believed that some form of compensation should have been offered, citing that the injury might have been avoided if drainage work had been completed sooner or if the back nine had been temporarily closed. They expressed continued support for the golf superintendent and acknowledged the city’s efforts to maintain safety. Discussion: The Board Members closed the discussion by reiterating that, had the city been at fault, they would have responded differently, as they had in past cases where liability was clear. e. Other Items as brought forward by Board Members Board Member Wright explained that, during last Thursday’s league play, the group reached hole 16 when one of the ladies asked where the portable restrooms were moved to. Ground Manager McFarland apologized and commented that they were now the farthest point from any restroom at that location. It was noted that a new portable toilet would be brought out soon. Board Member Wright mentioned Jill Jolly recently passed away. There was uncertainty about whether she had purchased a season pass, but it was confirmed that she had and that the fee had been refunded. Although passes were generally non-refundable, the refund was given as a gesture of goodwill, especially since she had only played a couple of times. The group agreed that it had been the right decision. City Attorney Rammell asked about the snack bar at Teton Lakes. Golf Pro Garn confirmed it was doing well. Board Member Parkinson asked about a leak related to solar panel installation. Although the company had returned a few times to reinstall the panel, there still seemed to be a minor leak, possibly in a different area. It was suspected that the installer may no longer be active. Board Member Wright said she noticed some activity in the kitchen area of the Club House. Golf Pro Garn explained that a cabinet had been removed, and some flooring was starting to come up due to wear. 4. City or County Input/Issues a. Updates on Clubhouse Remodel b. Other Items as brought forward Staff or Elected Officials 5. Golf Pro’s update of issues/concerns/problems/projects a. Update on Trailer and table and chairs i. Review sign options for trailer (Action Item) b. All Other Items as brought forward by Golf Pro Trailer Design and Equipment Update • Finance Officer Nielson confirmed that tables and chairs for the trailer had been received. • The last three pages of the trailer design packet were reviewed. A final design version with a white background was approved, as it offered a clean, simple appearance that matched the gray trailer. • The trailer design is approximately 4 ft x 4 ft, or possibly 4 ft x 5 ft, on each side. • The trailer will be parked in a visible location within the parking lot to attract attention. Rental Advertisement Signage • The Board Members discussed adding signage to the trailer to promote clubhouse rentals. • To avoid confusion with trailer rental, the phrase “Clubhouse Venue – Tables/Chairs Available for Rent” was agreed upon. 6. Golf Grounds Manager update of issues/concerns/problems/projects a. Tee Box, netting, and Range Lights at Tee Box (Seth and Cam to come back with design proposal) b. Update on mapping with GIS and our City Works Coordinator mark the location of all the irrigation lines and equipment on a map with coordinates. i. More work to be done here, marking sprinkler heads and noting pipe size. c. Other items as brought forward by Golf Grounds Manager 11 Grounds Manager McFarland reported on the following items. Legacy Irrigation Project Update • Final cleanup of the Legacy irrigation project is underway. • The final retaining wall has been constructed and looks good. Capping and landscaping remain to be completed. • The aeration of greens went smoothly, and the turf recovery was progressing well. • Newly installed irrigation pumps have reduced runtime by 50%, significantly improving system efficiency. • Members noted the upgrade from 1950’s equipment was long overdue, and future irrigation will no longer need to run during the day. Flooding Concern – Hole 16 • Spring flooding began near Hole 16 due to a blocked check valve, likely caused by debris such as a stick. • Water has been backing up toward Hole 18. • A head gate installation is scheduled for fall to allow the manual system to shut off and prevent future issues. 6. Upcoming Maintenance Projects • Plans for the next month include: o Adding sand to the middle and north bunkers. o Completing the tee box on Hole 14. o Continuing greens aeration at the Legacy course. • The sand to be used differs from the previous type. Long-term storage solutions for sand are still being evaluated. 7. Determine Next Board Meeting Date/Time a. 6/10/25 at 4:30 pm 8. Tabled Agenda Items to Consider: a. Consider landscaped items at the service shop area after completing main parking lot/clubhouse improvements. 9. 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. (If necessary) (j) To consider labor contract matters authorized under section 67-2345A (74-206A) (1) (a) and (b), Idaho Code. Adjournment 5:43 P.M.