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HomeMy WebLinkAboutGolf Board Minutes - March 10, 2026 1 (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Golf Board Minutes – March 10, 2026 Board 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: Eva Wright, Karl Boehm, Paul Sorensen, Brian Parkinson and Chairman Jon Johnson. Absent: Board Member Johnson moved to ratify Karl Boehm as the Golf Board Chairman; Board Member Wright seconded the motion; Board Chairman Johnson asked for a vote: Those voting aye Those voting nay Board Member Wright Board Member Johnson Board Member Parkinson Board Member Sorensen Board Chairman Boehm The motion carried. 1. Review Prior Meeting Minutes and approval (Action Item): a. November 11, 2025 Board Member Johnson moved to approve the Golf Board Meeting Minutes for October 14, 2025; Board Member Wright seconded the motion; Board Chairman Boehm asked for a vote: Those voting aye Those voting nay Board Member Wright Board Member Johnson Board Member Parkinson Board Member Sorensen Board Chairman Boehm The motion carried. 2. Financial Report Finance Officer Nielson explained that he would spend most of the time focusing on the projection column on the far right. He asked everyone to flip to the section labeled “Budget Reports for Golf Course” at the top left. 2 He then reviewed the legacy numbers, noting that his forecasts are projected at approximately $343,000. He compared this to the $350,000 brought in the previous year and expressed hope that they could exceed that amount. He mentioned that prices had been increased slightly, making it feasible to surpass last year’s revenue, although he had chosen to remain somewhat conservative in his projections. Finance Officer Nielson reviewed Teton Lakes revenue, pointing out a significant increase in daily play due to higher collections in that line item. However, he highlighted offsetting figures below, including a $25,000 positive adjustment for discounted greens fees and $62,000 related to season passes. He explained that these reflected resident discounts being reintroduced. He also clarified that there is no resident discount applied to the Buddy Pass, based on prior discussions and understanding. Finance Officer Nielson reminded everyone that he had included a general increase in projections due to price adjustments ranging from 20% to 25%. He then mentioned the golf simulator as a new revenue item, noting that it had generated only about $800 so far. 3 4 Board Member Boehm commented that it was unfortunate there was no suitable location to keep the simulator available year-round. Golf Pro Garn explained that the simulator would be put away. He noted that the launch monitor itself would still be used on the driving range for club fittings and similar purposes. Board Member Johnson agreed that this is a good use of the equipment and commented that the winter had been unusual, so usage may not have reflected typical conditions. Finance Officer Nielson mentioned that some people likely did not even know the simulator was available, although there was a fair amount of golf activity. Discussion regarding the value of the launch monitor, emphasizing its usefulness for measuring swing data and performance. It was noted that the unit had cost significantly less than expected —around $13,000–$14,000 instead of $35,000—making it a worthwhile investment. Finance Officer Nielson continued to explain that the total Teton Lakes revenue projection is set more aggressively at about $1.6 million, compared to approximately $1.56 million the previous year. He also pointed out that the golf course started the fiscal year with $628,000 in the bank, the highest starting balance he has seen. Moving on expenses, he explained that there is an increase in ground maintenance due to more projects and year- round work. There is also a slight increase in clubhouse expenses, particularly at Teton Lakes, due to extended operations and additional part-time staff. Otherwise, expenses are expected to remain typical. He mentioned the rebuilding of the main line, noting a goal to keep costs under $60,000. Grounds Manager McFarland responded that most of the expensive items have already been purchased and expressed hope that the remaining work could be completed within an additional $15,000. Finance Officer Nielson reviewed the irrigation work will complete the legacy course improvements. He stated that total legacy expenses were projected at approximately $318,000. Finance Officer Nielson noted the Teton Lakes expenses, pointing out the allocations for part -time wages, noting that the estimate might be slightly low. He projected $220,000 for ground maintenance and $95,000 for the clubhouse. He also highlighted adjustments to staffing budgets. He explained that the budget for a new hire in grounds maintenance has been reduced because the individual is currently working more of a part-time capacity while finishing school, with the expectation of transitioning to full -time later. Additionally, he noted that they had not hired a full-time pro shop employee, and as a result, the previously budgeted $53,600 for that position ha s been reduced to zero. Board Chairman Boehm asked whether there had been a candidate in mind. Golf Pro Garn clarified that while there had been a plan to hire, no one met the qualifications. Finance Officer Nielson continued to review the budget report through the expenses, he noted that most items appeared typical. However, he pointed out an 5 increase in credit card processing fees, explaining that card usage tended to rise year over year, especially during weaker economic conditions. He emphasized a few larger expense areas, particularly equipment repairs. He noted that golf cart repairs and related maintenance costs are increasing annually, with $19,000 already spent in the current fiscal year compared to $23,000 for the entire previous year. He added that irrigation and grounds repairs could also become quite costly by year-end. Board Chairman Boehm asked about golf cart damage, the group explained that incidents included a wide range of issues such as collisions, roof damage, and general wear and tear. Golf Pro Garn mentioned that carts had even been driven off bridges and into obstacles, contributing to repair costs. He noted that trees had been trimmed to help reduce damage caused by collisions. Board Member Johnson asked about the credit card processing fee and whether it is something they needed to be concerned about. Finance Officer Nielson noted that since they charged approximately 3% on transactions, the revenue would increase alongside those fees. He confirmed that while it balanced out, it still needed to be tracked from an accounting perspective. Finance Officer Nielson reviewed the computer programming and software maintenance costs, noting that expenses had risen significantly the previous year to around $27,000 at Teton Lakes, with similar impacts at Legacy. This increase is largely due to the “Four Up” system, which had cost about $20,000 annually based on online tee time usage. As more customers began using the online system, the costs have grown substantially. He explained that they contacted the provider to explore alternatives, which led to renegotiating the contract. They ultimately secured a new agreement at approximately $4,300 per year as a flat monthly subscription, eliminating the much higher variable cost. The new agreement also included additional features, such as the development of a mobile app for players. He noted that this is a positive outcome and a good cost-saving measure. Finance Officer Nielson noted a few adjustments have been made in coordination with Grounds Manager McFarland. The purchase of a $90,000 fairway mower had been deferred to the following year. However, a Cushman sprayer had already been ordered and is on the way. Grounds Manager McFarland clarified that instead of the fairway mower, they would be purchasing a rough mower. Finance Officer Nielson acknowledged that he had missed adding that to the projections and will update it. The cost of the rough mower is expected to be under $50,000, which was significantly less than the deferred equipment. Finance Officer Nielson noted that the team is currently working on capital improvement plans, which will be presented at the next meeting in April, followed by the full budget presentation in May. Finance Officer Nielson mentioned a few additional capital items, including a reel sharpener, and asked if it is still planned. Grounds Manager McFarland explained that it has been difficult finding one, so the purchase might be delayed and possibly pushed to the following year. He clarified that the sharpener would be used for reel mower blades. Finance Officer Nielson confirmed that the simulator had cost about $13,400. He then summarized the overall financial picture, stating that Teton Lakes expenses are projected at approximately $1.43 million. He projected a profit of about $25,000 for Legacy and about $192,000 for Teton Lakes. He noted that these stronger projections are partly due to reduced capital spending compared to previous years, which has been particularly heavy at Teton Lakes. He also confirmed that these projections did not include any contributions from the city or county. Board Member Parkinson asked whether adding roughly $50,000 for the rough mower would eliminate the Legacy profit. Finance Officer Nielson acknowledged that it would reduce the margin and could result in a deficit for that portion. However, he pointed out that overall cash reserves were still projected to be around $845,000, meaning they could potentially carry over of about $800,000, which he described as a strong position. He recommended increasing the amount of money being set aside from operations for future irrigation projects, suggesting they take advantage of their current financial position to build reserves. Board Member Boehm asked about the timeline for irrigation work at Teton Lakes. Grounds Manager McFarland estimated the timeline to be around five years, though no firm schedule has been set. Finance Officer Neilson said the goal is to accumulate over $1 million within that timeframe to be prepared for the project. Board Member Parkinson noted that the revenue projections appeared conservative and asked whether the expense estimates are also conservative, given inflation and rising costs. Finance Officer Nielson responded that 6 once the additional items are included, Teton Lakes expenses will be around $1.5 million, compared to $1.6 million the previous year. He explained that the higher costs last year are due to significant capital spending, and overall, he felt confident about the current projections. He added that some uncertainty remained, such as fuel prices, though those were not a major expense category. Finance Officer Nielson asked whether there are noticeable increases in material costs. Grounds Manager McFarland explained that some items, such as irrigation pipes, have decreased significantly in price compared to two years prior, likely due to changes in oil prices. Board Member Johnson asked if revenue, specifically the inventory profit line, how much accounting overhead is included. Finance Officer Nielson said he will need to double-check the exact figure but recalled that the percentage had recently been adjusted. he clarified that the margin has been reduced from around 10% to approximately 15–16%, and he noted that he would update the documentation to reflect that change. He explained that while the full percentage showed up as revenue, a large portion is paid back to Golf Pro Garn as incentive compensation, which is reflected in wages. This structure also provided some additional benefits tied to performance. Board Member Johnson asked Golf Pro Garn whether there is still enough margin to offer competitive pricing and discounts compared to online prices, with concern that losing in -person sales at the clubhouse could make it difficult to regain those customers later. Golf Pro Garn explained that toward the end of the previous season, he took a more aggressive approach to clearing out inventory, often selling items at steep discounts—sometimes as much as half price—and essentially absorbing the loss. He noted that earlier in the season, margins were better, and while ideally, they would be higher, there is still some margin to work with, just not a significant amount. He emphasized that golf clubs, which are the biggest-ticket items, had particularly low markups. Finance Officer Nielson clarified that the inventory margin is 16%. Board Member Boehm asked about the biggest revenue-generating items, Golf Pro Garn indicated that used golf balls are among the top sellers. He explained that most hard goods, like clubs and equipment, typically carried margins of about 20 –25%, and he sometimes must negotiate with suppliers to improve those margins. Board Member Boehm asked if anything could be done to improve profitability, Golf Pro Garn explained that tournament credits are a helpful driver of merchandise sales, since they had to be spent in the pro shop rather than on things like green fees. He noted that if those credits could be used elsewhere, it would significantly reduce merchandise sales. The group discussed the broader challenge of competing with online retailers, where customers could easily purchase equipment quickly and often at competitive prices. It was acknowledged that this trend made it difficult to maintain strong in-house sales. City Attorney Rammell added that, given changes in the industry, it was reasonable to continue evaluating this area and that Golf Pro Garn can bring forward proposals with concrete numbers if adjustments are needed in the future. Finance Officer Nielson said the exact inventory profit margin has been reduced from 23% to 16%, and the portion retained by the owners had decreased from 10.35% to 6.4%. He noted that he would update the figures accordingly. 3. Board Business/issues/problems/events a. Review Final Draft waiver(s) for those with a stroller or not Golfing -Spencer Rammell (Action Item) City Attorney Rammell explained that he consolidated the forms discussed in the previous meeting into a single document. The first three sections applied to non-players, while the fourth section specifically addressed strollers and children. He emphasized that waivers cannot eliminate all liability, as there are still statutory obligations, but they can provide some level of protection. He noted that the key consideration is less about the wording itself and more about how the waiver would be implemented and tracked, whether electronically or otherwise. 7 Board Member Boehm asked whether adding initials next to each section would strengthen it. City Attorney Rammell responded that it would likely make little difference legally and could create practical issues, as people might rush through and misunderstand what they were initialing. He reiterated that signing the document placed responsibility on the individual to read it. The group generally agreed the waiver looked good, with only minor clerical changes needed. Discussion about implementing it electronically, which is seen as the easiest approach. Golf Pro Garn asked whether the waiver would need to be signed once per year or more frequently. City Attorney Rammell indicated he would add a line to clarify that. County Commissioner Mendenhall expressed concern involving parents who are both players and have children with them, such as those pushing strollers while golfing. City Attorney Rammell acknowledged this and said he would revise the language to ensure those situations are clearly covered, including both paying and non- paying individuals. Discussion whether all golfers should be required to sign the waiver or only those it directly applied to. It was concluded that requiring signatures only from the relevant group would be more practical, as requiring all golfers to sign would create unnecessary workload. City Attorney Rammell clarified that the primary purpose of the waiver is to provide notice and establish an appropriate level of care and responsibility. He explained that the duty of care owed to golfers differed from that owed to non-players, such as individuals with strollers, and that the course is maintained to industry standards for golf—not as a general walking park. He emphasized that this distinction justified having a separate waiver structure. b. Update on sign orders for parking lot area – Cam Garn i. 3-5 signs -Ie. “Slow down-high traffic area” and “watch for pedestrians” (Action Item) Discussion about signage, with a suggestion to post notices requiring non -players to sign the waiver. It was confirmed that signage would be placed both in front of the clubhouse and around the course. Golf Pro Garn noted that he already had a sign from another course and planned to install additional signage, including “share the road” signs at exits and parking lot. c. Consideration of request from Sephlin Foundation for Jr. Golf Clinic (Action Item) Discussion regarding a request from the Zeppelin Foundation for a junior golf clinic. Golf Pro Garn explained that the request involved using the driving range for two four-hour sessions on separate days, along with a small tournament at Legacy. He stated that he planned to treat the request as a standard reservation, charging $150 for range use and applying a $5 youth rate at Legacy for participating kids. The group agreed that this approach was fair and required no further action. d. Other Items as brought forward by Board Members 4. City or County Input/Issues a. Other Items as brought forward Staff or Elected Officials Discussion of an upcoming tournament associated with the “Dam 50,” noting it would take place around June 6th, though the exact golf event timing during that week is still unclear. They also discussed course conditions, with staff reporting no noticeable winter damage to the greens, which is a positive sign heading into the season. 5. Golf Pro’s update of issues/concerns/problems/projects a. Update on purchase of Golf Simulator to order in FY 26 for use this Fall/Winter (Action Item) b. Consideration of Tag Marshall Software for carts (Action Item) c. All Other Items as brought forward by Golf Pro Golf Pro Garn provided an operational update. He reported that opening weekend (Friday through Sunday) ha d been busy, with Sunday fully booked. However, the following weekdays had been slower. Despite some weather concerns from snow earlier in the week, operations were up and running. He shared plans to bring in new rental 8 push carts and additional rental club sets, noting that existing equipment is wearing out. Some of the older carts would be redistributed to maximize usability across courses. Golf Pro Garn introduced a proposal for a “Tag Marshal” system. This system would install screens and GPS tracking devices in golf carts, allowing staff to monitor cart locations in real time from the clubhouse. The system would help manage pace of play by identifying slow groups and allowing staff to send direct messages to carts reminding players to keep pace. Golf Pro Garn explained that the system could also improve course protection by using geo -fencing. If carts entered restricted areas—such as greens, tee boxes, or construction zones—an alert would trigger, including a buzzer and on-screen warning. Over time, stricter controls like temporarily disabling the cart could also be implemented. Additionally, the system included an advertising component, where ads will be displayed on the cart screens at each hole. According to other courses using the system, advertising revenue could offset or fully cover the cost of the system, making it financially viable while improving operations and player experience. He added that the system could also integrate waivers directly into the golf cart experience. When players entered a cart, a screen would immediately display a waiver stating they are responsible for any damage. They would be required to sign and agree before the system—and its features—would function. He noted that once accepted, players will benefit from built-in GPS features, including yardages to hazards and pace-of-play tracking. The system would also integrate with their existing software, allowing staff to assign specific carts to players and track usage. This would make it easy to identify responsibility if a cart returned damaged, since they could trace it back to the last user. Golf Pro Garn added that although the system involved upfront costs, those could potentially be offset through advertising revenue and small increases in cart rental fees due to the added value of GPS functionality. He also highlighted safety and operational benefits, such as the ability to send real-time messages to all carts or individual players, including weather alerts like lightning warnings. The system could also help players navigate the course and assist staff in resolving pace-of-play issues with clear tracking data. He noted that the proposal involved a four-year contract, with pricing adjusted to account for months when the course would be closed, and that a detailed cost and revenue breakdown are included for review. Discussion whether the system could enforce things like repairing pitch marks . Golf Pro Garn clarified that while it wouldn’t directly monitor that behavior, it could display reminders or messages to encourage it. Finance Officer Nielson reviewed the financial side of the system. Golf Pro Garn said revenue could be generated—not just from advertising, but also potentially from small increases in cart rental rates due to the added GPS functionality. There are some uncertainties about projections. Discussion trying to understand realistic usage numbers and how many rounds or carts would factor into the estimates. Golf Pro Garn explained that the proposal assumed about 70 carts (primarily at Teton Lakes) and that the projections shown are somewhat idealized. Additional revenue could come from advertising—estimated at around $150 per month per advertiser—as well as indirect benefits like reduced cart damage and better turf protection. Several Board Members emphasized that reducing cart damage alone could be a major financial benefit, noting that current damage costs are around $30,000 annually. They also pointed out the value of preventing carts from entering restricted areas like greens and bunkers. Discussion regarding the cost structure: an upfront equipment/installation cost (around $7,100), followed by monthly payments (about $2,400) over a four-year contract, with an initial six-month no-fee period. After the contract term, the costs are expected to decrease. They noted an additional behavioral benefit—simply knowing that carts are being tracked could discourage misuse. Golf Pro Garn shared an example from another course where tournament-related cart damage had dropped to zero after implementing the system, reinforcing the perceived value of the investment. Discussion about the installation of the system. Golf Pro Garn explained that the company will likely send someone to handle it. The system would run off the golf cart’s battery, with the tracking device installed underneath the seat and the screen mounted visibly on the cart. Board Member Parkinson asked how geo-fencing worked. Golf Pro Garn explained that the system could either trigger an audible warning (a loud buzzer) when carts entered restricted areas or, if enabled, shut the cart down. However, the vendor recommended starting with just the warning system for the first year or two to avoid disrupting pace of play. If carts are shut off, players will have to reverse out of the restricted area, which could 9 slow things down. Board Member Parkinson expressed skepticism that a buzzer alone would deter misuse. Golf Pro Garn noted that the on-screen warnings and tracking visibility might still influence behavior. He mentioned similar systems at other courses that display warnings or countdowns when carts leave designated paths. Board Chairman Boehm asked about the GPS accuracy, particularly how the system would determine distances when hole locations change. Golf Pro Garn noted that it likely would not be exact and would function similarly to standard GPS systems, generally providing distances to the middle of the green rather than precise pin locations. Board Member Sorensen moved to approve the Tag Marshal system at Teton Lakes as proposed, covering approximately 71 carts; Board Member Wright seconded the motion; Board Chairman Boehm asked for a vote: Those voting aye Those voting nay Board Member Wright Board Member Johnson Board Member Parkinson Board Member Sorensen Board Chairman Boehm The motion carried. Board Member Wright asked about the implementation timeline and logistics for the Tag Marshal system. Golf Pro Garn estimated that installation will likely take a couple of weeks, including mapping the course with GPS and installing the hardware. He noted that before installation, they will want to ensure all carts are in good working condition and that any existing damage is documented. Discussion whether carts can be remotely shut down, either manually from the pro shop or automatically through geo-fencing. Golf Pro Garn confirmed that geo-fencing could restrict carts to certain areas, it is unclear whether staff could instantly disable a cart on demand, though he said he would follow up on that. The group noted that such features could help prevent theft or misuse, such as carts being taken off property. They also discussed practical uses, like shutting carts down at closing time or sending messages reminding players to return them. Golf Pro Garn described the installation as relatively simple, with tracking devices mounted under the seat and screens attached to the front frame of the cart. The system could improve operations, accountability, and overall course management. 6. Golf Grounds Manager update of issues/concerns/problems/projects a. Update on mapping with GIS and our City Works Coordinator to mark the location of all the irrigation lines and equipment on a map with coordinates i. More work to be done here with marking sprinkler heads and noting pipe sizes. b. Update on irrigation project a Legacy c. Update on projects at Legacy d. Other items as brought forward by Golf Grounds Manager Grounds Manager McFarland reported that irrigation work has begun and is expected to be completed by April 1st. He also shared that drainage work had been completed on holes 15 and 16, tee box work on hole 17 is nearly finished pending warmer weather for sod installation, and work started on a pond at hole 13 but is paused due to poor conditions, with plans to resume the following year. Board Member Johnson asked about course conditions, specifically moss on the greens. Grounds Manager McFarland noted that they have refined their treatment approach and, with new spraying equipment, expected better results moving forward. 7. Determine Next Board Meeting Date/Time a. 04/14/26 at 4:30 pm 8. Tabled Agenda Items to Consider: Adjournment 6:03 P.M.