GOLF COURSE BOARD OF DIRECTORS REGULAR MEETING
CITY MANAGER’S CONFERENCE ROOM
1000 CITY CENTER CIRCLE
PORT ORANGE, FL
JULY 19, 2012
The Regular Meeting of the Golf Course Board of Directors was held on July 19, 2012 and was convened at 4:01 p.m.
Present at the meeting: Allen Green, Mayor/Board Member
Kenneth W. Parker, City Manager/Board Member
Ricardo Catarino, KemperSports
Michael Collins, KemperSports
Dennis Pickavance, KemperSports
John Shelley, Finance Director *
Laura Tennant, City Clerk’s Office OA IV
Pat Garrigan, Citizen for MGA
*arrived at 4:03 p.m.
APPROVAL OF MINUTES
A motion was made by Ken Parker, seconded by Allen Green, to approve the minutes of the May 22, 2012 meeting. The Motion carried.
1. Mr. Pat Garrigan- MGA
Mr. Garrigan came before the Board to discuss the walking bridge proposal his group presented earlier in the year. Mayor Green stated he hasn’t gotten the elevation and distance numbers from his delegate yet and he will be working getting that information promptly. Mr. Garrigan stated his impression was that the City wanted to help with the project, had some materials left over from other projects to donate, was getting an engineer to look over the project, get the necessary permits, and the MGA would donate $1,000 towards the project. Mr. Garrigan said he is 90% sure he can get the members to donate the $1,000. Mayor Green stated he recalls stating he would get an engineer he knows who is a golfer to engineer the plans. A licensed and insured contractor would be needed to get the permits and the MGA was going to participate in the work. Mr. Garrigan said he does not recall that being the plan but it is something he can work with. He stated he can get enough volunteers but needs help with permits. Mr. Parker said Council did give their ok for the City to provide the permitting. The key is finding a licensed, insured contractor who will work with volunteers. Mr. Catarino stated until the plans are presented the cost is unknown. John Junco was contacted by phone and agreed to meet at the Golf Course to conduct the engineering measurements.
2. Financial Reports- May and June 2012
Michael Collins, KemperSports, presented the June, 2012 and year-to-date financial reports.
Total Budgeted Prior Year YTD Budgeted Prior YTD
Revenue $111,924 $121,206 $113,154 $1,309,940 $1,325,124 $1,297,212
Payroll $60,049 $61,227 $58,433 $551,118 $562,006 $544,821
Expenses $45,962 $42,169 $43,740 $376,928 $380,016 $374,746
Total Budgeted Prior Year YTD Budgeted Prior YTD
Net Income -$29,252 -$19,054 -$15,140 $42,860 $36,139 $25,469
Total Rounds 3,688 3,939 3,797 42,583 41,103 42,017
Mr. Parker stated the projected income was up about $8,000 over last year, but the bottom line was short an unanticipated amount of $10,000. Paid rounds are off about 100. Was there an overestimation of the June numbers? Mr. Collins stated that in the prior two years they had more revenue and they envisioned a higher ADR. Also, some of the expenses this June were expenses that historically have occurred later in the year and impacted June’s numbers. Year to date the expenses are still in line. Mr. Catarino remarked that compared to several years past the rounds have improved. Mr. Parker would like to see a better breakdown between the prepaid, regular, and complimentary rounds. He would like to see a separation of revenue versus non-revenue rounds. Mr. Shelley said the amounts seem comparable to last year’s. Weather has played a large part in the numbers. Mr. Catarino stated that July is on track and slightly ahead of budget. They are projecting positive trends through the end of the July. Mr. Parker said if adjustments need to be made to the budget he needs to be notified as soon as possible in order to create a strategy to cover the costs through the winter months. This winter is projected to be cooler and wetter than average.
A motion was made by Ken Parker, seconded by Allen Green, to accept the financial reports. The Motion carried.
3. Evaluation Reports- May and June 2012
Mr. Collins presented the Evaluation Reports for the months of May and June, 2012. The overall total average evaluation for the month of June is the highest of the year so far. Restaurant revenue showed an increase in June, resulting in the second highest numbers for June that the restaurant has ever seen and the best June for dollars per round. COGs are at 37%, a level they have not been at before. The team has made a great effort at getting the inventory levels to this point. Total expenses and payroll are below what they were a few years ago. Commodes in the lavatories are being replaced to meet commercial grade which will cut down on repairs. Mr. Shelley remarked that the average food and beverage per round is up considerably. Carpets and tiles have been cleaned. There was some vandalism in the men’s bathroom which damaged a handicap stall. The tees and greens fairways are rough. The extra rainfall has greened up some of the dry spots. Tee boxes, bunkers, and greens are fading and will need to be repaired or replaced in the near future. Some of the work has been started in house. Fertilizer and pesticides were purchased in June which increased costs for the month in some of the categories but they are still in line with year to date numbers. There are 122 RSVPs for golf and 167 for attendance at the anniversary reception so far.
4. USGA Report
Mr. Parker stated he was surprised by the portion of the USGA report regarding equipment. All equipment is set up in the lease program and is replaced according to several functions. The USGA report made it seem as if the City was not allowing the Golf Course to replace equipment. The money is set aside for replacement and the decision to replace is made by the Course and its maintenance records. Mr. Catarino stated he did not get the impression that the City was not allowing equipment to be replaced. He stated it was based on the budget and issues from the past where there was a discrepancy between what was being paid by the Course and what was being billed. When the discrepancy was corrected it impacted the projected repayment. Because of the good maintenance program they decided to extend the fleet replacement schedule. He does not feel the conditions are being affected by the decision.
Mr. Parker was also concerned regarding the discussion of water. Both he and the Mayor were hearing about water not being available but were told by the City’s utility department that water was available. The report seems to indicate the unavailability of water, which does not accurately reflect the situation. Water is interrupted right now but there is the alternate water supply allocation. There is also the ability to have water transferred to the pond at Hole 8 at the Course when water is available, rather than sending the water to the storage lake. The issue is having someone available at the Course at night to open the valve when the water is usually available. The Course needs to have conversations with the Chief Water Plant Operator to keep him informed of whether the Course is able to take extra water or not. An automatic valve to allow the plant operator to put the water into the pond will cost about $12,000 but frequent daily conversations regarding availability of space at the pond will be vital. It will be metered. A consistent system of communication will need to be documented.
The report also states the bunkers are contaminated and have roots. Mr. Catarino and Mr. Collins stated there have been root problems but they have been repairing and removing the problems. Other than rebuilding the bunkers at the same time as the greens, Mr. Catarino stated they can do some in house work and add sand to the bunkers to keep them going for a few more years. A complete greens renovation will cost about $600,000. There is also a loss of revenue while the renovation is being completed as well as the cost of covering expenses while the course is closed. The entire process takes about six months. Temporary greens could be added to keep some action at the course during the process. Mayor Green asked for a better long range capital plan to be developed before February.
Mayor Green asked about play availability monitoring. He said he got complaints that a certain group was locking in all the premium times. Mr. Collins stated he has the information available and also implemented a double tee start for Fridays, Saturdays, and Sundays on June 1st. Mr. Catarino stated they are also looking at the price mix. The booking process and prices for the groups and their consistency will also be looked at. Mayor Green feels it should be rotated.
Mr. Parker said the budget needs to be prepared to be presented, reviewed, and adopted by Council. He also said rate structure recommendations need to be ready to be adopted into a rate resolution before the Course does its billing in September. The City’s budget will be presented on August 7th.
ADJOURNMENT: Meeting was adjourned at 5:14 p.m.
Allen Green, Board Member