GOLF COURSE BOARD OF DIRECTORS MEETING
CITY MANAGER’S CONFERENCE ROOM
1000 CITY CENTER CIRCLE
PORT ORANGE, FL
MINUTES OF THE JANUARY 25, 2011 MEETING
A meeting of the Golf Course Board of Directors was held on January 25, 2011 and was convened at 4:33 p.m.
Present at the meeting: Allen Green, Mayor and Board Member Kenneth W. Parker, City Manager
and Board Member
Margaret Roberts, City Attorney
John Shelley, Finance Director
Kate Minnock, KemperSports Dennis Pickavance, KemperSports Recardo Catarino, KemperSports
Susanne Snider, KemperSports
Michael Collins, KemperSports
Cindy Rivera, Executive Assistant
Robin Fenwick, Deputy City Clerk
Bill Schell, Men’s Golf Association
Don Taylor, Men’s Golf Association
Tom Edington, Men’s Golf Association
A motion was made by Allen Green, seconded by Ken Parker, to approve the minutes of the October 26, 2010 meeting. The Motion carried.
Mr. Collins presented the Financial Report for December 2010. Total revenue for the month was $114,938 and the budget was $134,869, missing budget by $19,931.40. The prior year was $115,446. Payroll was $57,661, budget was $58,636, coming below budget by $975.00. Payroll for the prior year was $59,836. This year’s payroll was below last year’s budget by $2,175. Total operating expenses for the month were $40,097; budget was $39,692 with the month being slightly over budget by $405. The prior year’s operating expenses were $45,300, coming in below prior year’s expenses by $5,203. Net operating income for the month of December 2010 was -$24,108 and budget was -$4,190, exceeding budget by $19,917. Prior year’s net operating income was -$9,859, coming in with the added interest debt it was actually exceeding prior year but without the debt payment proposal, it was exceeded by $14,248. Total Rounds for the month of December $3,265 for 65 rounds and budget was $4,017, coming in short by 752 rounds. Prior year was $3,873, coming in short of last year’s rounds of 608. Mr. Parker stated we were within $400 of where we thought we would be with revenue and expenses, expressing an overall good first Quarter.
A motion was made by Ken Parker, seconded by Allen Green, to approve the Financial Report. The Motion carried.
The Evaluation report was given by Mike Collins. Mr. Collins stated the Evaluation Report is showing a vast improvement from January of last year (2009) to month of December. Mr. Collins reported budget was exceeded in the Golf Shop by 41%, exceeding the prior year by 184% sales. There have been renovations/improvements to the Restaurant/Bar, Banquet Room and the entrance to the Clubhouse. Mr. Collins reported with the assistance of City, some of the areas of the cart paths would be renovated and upgraded to address some safety concerns. Ms. Snyder stated a requisition was entered today with work scheduled to begin in middle of February 2011.
Mr. Catarino presented the Golf Cart Fleet report. He said golf cart fleet is being evaluated to determine if it should be upgraded. Mr. Catarino said this issue would be researched to decide which direction would be more cost effective, purchasing new carts or repair and maintaining the existing fleet. Mr. Green asked what the life expectancy of a golf cart was told by Mr. Catarino on an average, 3 years but it may go as long as 5 depending on cosmetics and maintenance schedules. Mr. Collins stated that the overall appearance of the golf course is in as good of shape as it ever has been.
A motion was made by Ken Parker, seconded by Allen Green, to approve the Evaluation Report. The Motion carried.
Ms. Snyder stated Fixed Assets include reference to scrap poles donated by Florida Power & Light (FPL) which they stated had no value. However, the question is whether or not the Golf Course should include these scrap poles as assets. Ms. Snyder recommendation is to not include the scrap poles as an asset since there no value. The Board agreed.
The next item discussed included the Annual Port Orange Play Card. Presently, the Play Card is a 20 play card which covers the green fee portion of the golf round and each round costs the customer $11.00 for summer months which includes April through November, depending on when the rates change. In the winter, the cost is $22.00 per green fee and she stated there is no expiration on the cards because it makes it very cumbersome to track.
Ms. Snyder’s recommendation is 1) Implement a Loyalty Card with an expiration date and 2) Annual Pass Play Card with an expiration date instead of a straight play card. Presently the Play Card is generally sold as a gift certificate and because of the laws of the State of Florida, expiration dates for gift certificates are not permitted. Mr. Catarino stated the reasoning behind the Loyalty Card was that it would be a yearly flat, lower rate and would be easier to market and sell. Ms. Synder stated there are approximately 200 outstanding cards in circulation now. Mr. Parker stated that since this play card originated back to the original golf course opening policy and was in a different format, it would need to be changed at City Council level. Mr. Parker stated that this same issue went before Council about 5 years ago and at that time, Council decided that they did not want to change the policy. Mr. Parker suggested that more information be gathered with respect to how many cards are outstanding and the number of rounds outstanding in order to get a better understanding on where we stand backward and then have further discussions in the future.
Capitalization of Fixed Assets was presented by Ms. Snyder. Ms. Snyder stated the threshold for a booked asset is $3,000 at the Golf Course and the City’s threshold is $5,000. As a result of a recent audit, Ms. Snyder recommended the $3,000 threshold be changed to $5,000 so as to match the City’s. Mr. Parker stated that this change would need to be changed within the City’s Purchasing Policy. Ms. Snyder requested the Yardage books be taken off the inventory.
A motion was made by Mr. Ken Parker to use the Yardage Books as goodie bag items and dispose of them in that fashion, seconded by Mr. Green. The Motion carried.
Mr. Catarino reported that a result of an internal audit, it was discovered that the Alcohol policy was not being enforced at Cypress Head. Alcohol at the staff's yearly Christmas party Mr. Catarino stated he sent a report to the Executive Team and it was decided that specific guidelines need to be enforced. There was a meeting held with the staff yesterday to reiterate the policy and set the guidelines. The guidelines prohibit alcohol consumption by staff members on days they have worked or will work. Any violation of these guidelines by staff is subjected to disciplinary action, up to and including termination.
Mr. Edington addressed the committee. He stated he felt the golf course was missing revenue for the City and for KemperSports by these employees not being able to drink. He stated these guidelines prevent people who work there from bringing there families out to the course at night because they cannot consume alcohol if they had worked that day. He mentioned that he could understand strictly enforcing this policy if there were problems in the past but all of sudden it went from harmony with no problems at all to nobody can consume alcohol if you work KemperSports. He said at this point everyone started disagreeing with the enforcement of this policy and then it was decided by the corporate office that these guidelines would be enforced.
Mr. Catarino stated these guidelines have been in existence since the opening of the golf course over ten years ago. However, they have not been strictly enforced as they should have been. He stated all new employees are required to sign the Alcohol and Substance Abuse Policy in the Employee Handbook to verify that they have read it and understand its contents. Mr. Catarino said he would discuss with the corporate office making an exception to this rule for special occasions.
Ms. Snyder said there was one individual who used to work at the golf course that had abused this policy. Mr. Green said he had discussions with this individual and he also had other issues besides alcohol abuse, in his opinion. Ms. Snyder said there were two written reprimands for insubordination involving this individual that had nothing to do with the alcohol policy.
An email was sent to Mr. Parker from Mr. Catarino after the Golf Advisory Committee Meeting in order to clarify the suggestions at the meeting that were discussed:
- Request to allow staff members to consume alcohol after the completion of their shift (upon cleaning up and changing out of uniform)
- Request to allow staff members to consume alcohol at the 5 or 6 yearly MGA luncheons after their shift concluded (for those who are members of the MGA)- upon approval of GM and not to affect the course's operational needs
- Request to allow staff members who are MGA members to consume alcohol at MGA's year end banquet
- Request to allow staff members to consume alcohol at the staff’s yearly Christmas party
He also stated he would continue to enforce the original amendment which was presented at the meeting.
Mr. Parker stated he and Mr. Green need to set a schedule for the RFP for the Management Contract which will be expiring soon. He said a time needs to be set sometime in April whereby the City will formally review the request that we are going out to set a timeline.
Meeting was adjourned at 5:15 p.m.
Allen Green, Board Member