Golf Board Meeting – May 2023

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Golf Board Meeting – May 2023

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Unknown Speaker 0:00
Yeah, six o’clock or Saturday first thing I need to do is the Roll Call

Unknown Speaker 0:12
is American martial art Hello? And yeah. My hair

Unknown Speaker 0:33
shorter we’re here. Now tell Walden

Unknown Speaker 0:40
he’s not going to be okay either approve the agenda. Does anybody want to add or change the agenda as we approach

Speaker 1 0:54
a new segment set the agenda as amended say aye. Aye. Oppose the motion. We approve our last meetings minutes. Anybody want to take it the motion motion to

Unknown Speaker 1:16

Unknown Speaker 1:18
second please call in waiver to accept the minutes as written or both motions passed. But here’s the problem. Remember we need the top professionals

Unknown Speaker 1:45
right, we’ve had a

Unknown Speaker 1:48
fantastic fourth of April.

Speaker 2 1:51
Like best on practice, the best the best record we’ve ever had was going to where we got bored and

Unknown Speaker 2:05
then we went back by qualified

Speaker 2 2:09
so it was immature Sam trying to say it’s been one way or the other. It’s just halfway decent. It doesn’t have to be nice. Just halfway decent. We are busy. We had no place to put people yesterday, all day long from 7am Straight through until I was I was at home 530. And there was still online bookings coming in for the same day. Couldn’t believe so it’s really good. So yeah, 170 core project projected at 91. So we will take a win there. And round wise. We are here to learn the actuals for 3302. So 3302. And great, we’re down 100 rounds and yet we’re making more money. That’s a beautiful setup for doll. So we played a few less rounds and we’re making more money guys. That works out good and they it’s shaping up to be really good as well. So hopefully, it finishes strong. We got one good week ahead of us. We always like the Morial Day falls on Monday, the 29th and then we get the full weekend. Friday Saturday, Sunday and Monday.

Unknown Speaker 3:27
That’ll be good forever.

Speaker 2 3:30
Of course it’s coming along real good writing is doing a great job getting this out of all the winter the winter mass do whatever they can to help them a lot to call the free water you know a lot of a lot to golf course that kind of suffered during the winter it’s coming back real fast. Right and super proactive on getting out from things. So the questions are Toby’s. All right.

Speaker 3 4:06
I wouldn’t say the same thing but when it’s busy one is extremely nice out. It’s unbelievable. Sunset. April projected for 40,000 came in revenue at 77,000 22,000 years. Numbers. Round was projected for 3177 actual rounds came in at 3245. Overall we are now up in rounds for the year 68 rounds ended and

Unknown Speaker 4:49
2.1% ahead of last year.

Speaker 3 4:53
I have to say I’ve never truly had to turn people away. All this year so far, and I tell my staff might put squeezes in at squeezes, but when we don’t have enough space, and we know that the pace of play is gonna be at almost a three hour round on Saturday, Sunday, we have to start trying to get away, unfortunately, but it’s it’s been crazy as I’m having really any questions?

Speaker 4 5:35
Well, they pretty much demand my golf is truly amazing. You know, prior to prior to 20. Come up all these great ideas, dynamic pricing, we have to work hard to create demand that were in place now. And it’s just been really, really solid. Like he keeps missing this past weekend. We filmed everything from six o’clock until close to five o’clock four days. Here, we keep up with it with a few squeezes as well. We are required to attend it animals, because it’s the opportunity to actually do that. So we throw in a few extra squeezes here and there and, and it’s 262 miles on Saturday and 281 on Sunday, which is really nice. It’s been great. Really fun. I randomly Well, it’s been kind of tough this this month, obviously when the weather cooperates is great, but I read the report. Once today, we’re like 197,000. For may there last year,

Unknown Speaker 6:49
we’re at

Speaker 4 6:51
261. So we’re about 64,005. Well, 4000 to go. I think we’ll get there at least bang the other connection 5000 or so. And then if the weather cooperates, I think there’s no problem of cheating prior to numbers. No way is the demand for this record play again, but as well. My first year that I’ve actually heard the Turner’s way,

Unknown Speaker 7:25
just we have 23

Speaker 4 7:27
printers. Besides our corporate and fundraising events 23 is really believable. And there’s just been a few or didn’t quite make sense. Here with demand we have good

Unknown Speaker 7:52

Unknown Speaker 7:55

Unknown Speaker 7:58
indications for losers.

Speaker 5 8:07
Okay, so we’re going to cover this last month and had challenges so we’ll cover it this month and if anybody has questions, please interrupt. So the golf fund if you could go to the next slide, the golf courses are enterprise fund all of the the revenues and expenditures that come in golf are under this fund. The only tax support that golf receives is for the bond election that was passed in 2018 to build the ucreate maintenance facility and replace irrigation here at Twin Peaks and sunset. Otherwise everything that we can spend as we generated through our fees and charges. Next slide. Quick overview of staffing we have in golf a total of 11.15 staff. Point four of my salary as recreation and culture director is under golf the other is in recreation. Danny shara, who works three quarter times salaries in here and then everybody else that works in golf in the maintenance side, which those those staff work for Ryan or for Dan. And then we also have the three contracts that we manage with the golf pros. They they are they’re listed here just to demonstrate that they’re part of golf but they are not employees of To sit as they are all contractive many of the people that you see working at the front counters, or out with the carts are either employees of the golf pros, or they’re volunteers that volunteer for Orion, Keith and Sam, we have a total of 31 seasonal or temporary people that that help our staff that take care of the golf courses, right here acres is is Twin Peaks,

Speaker 6 10:35
Twin Peaks is 140 years in Sunset, it’s 42 total acres. And then we’re about 250, including the native and everything, spread out quite aways.

Speaker 5 10:48
So a lot to take care of with really a limited staff. And then they also take care of the clubhouse as well and the frame box. Next slide. So golf operations for 2023, we have budgeted revenue of almost 2.9 million, we have expenditures of 3.3 plus in the three golf courses. This is for the operational budget, it does not include any of our capital replacement or capital projects that we work on. That number for revenue is very conservative. Last year, if you look at the report that the pros just went through, we add revenue and in 2022 have just about $3.8 million. We really anticipate that that money that that revenue will come in at least that 3.5 million this year. And if if golf continues like is it could be the 3.8 million if if again, demand continues, like to ask. So once the conservative projections, it if if all sudden it It rains all of June in July, it protects us from from being overly aggressive. That money can only go to golf. So if if we shoot the 3.8 million like we did last year, that just goes into the golf fund that cannot be used anywhere else. Next slide. The end we’ll talk a little bit more towards the end. But these are the projects that were approved in 2018. Maintenance Facility irrigation and rehab satellites out and you Creek and again we’ll come back to that. Please remember that 5.7 number as we move forward, we might come back to that state. Go ahead. For capital for this year. We have $15,000 budgeted to work on cart paths will provide you work at a creek on number 11. Right, Dan? To finish some of the work we began earlier, Twitter and 4616 as part of the Gulf buildings rehab, the biggest part of that number, which was 130,000 was to help repair the retaining wall off of PACE Avenue from a street excuse me, that are passed by a lemon 11 as well. And that that was failing. Fortunately, public works went in and did work on that last fall, that work is been holding very well. And there’s a good possibility that we won’t need to spend that money on on the face project that will come back to be able to do projects within golf itself. And then 1.6 million in irrigation. That is money that’s coming from the public Improvement Fund to go towards the irrigation projects. If you could go back to the bond projects and Ryan and Dan jump in here. Last year when we went to bid for the irrigation here at Twin Peaks. We were $1.6 million over budget just for Twin Peaks. So we went back out, hoping that we would get some some savings by doing two projects at once. And being able to have that company stand, rather than relocating and having us come back to do some setup. So again, we added 1.6 million. So we have for Twin Peaks, irrigation 4.7, in round numbers, that bid for Twin Peaks, and for sunset this year came in at 6.9 million. So we are currently negotiating with our one theater, to see if we can come come at least into a bid out of our budget of around 5.3 to 5.4 million. We met with them it’s been almost a month ago, and are waiting for their response. We feel like that day we were able to do some negotiation. But it’s not official until they provide us the proposal and writing the contract. No, no, no. Have you thought about it? Well, we did go off for rebid. This was the second time since May of last year, we did okay. And we were that much over. So Twin Peaks have on had from May of 22. Until March of 23. The costs have gone up 900,000 errors. And so we we need to do something if we wait another year or until the fall, it’s only going to continue to go up. So it’s really I hope that we can negotiate to get some work done yet, this fall. Same kind of situation with Ucrete maintenance facility, we went to a bid that bid opening was in April, the bids came in 1.4 million over budget from what we had done in cost estimates last year, we’d actually take in 1.5 million from carryover to help make that project happen. And again, now we’re 1.4 If you had to carry over agency that we ever need, we’re really about 2.2 million over budget on that project. We’re doing some negotiation with the two bidders. And seeing if we can cut out one of the buildings and only do the maintenance building. We’re considering doing only one day instead of instead of two days with the maintenance facility and doing more of what I would call a lead to building for storage equipment where there wouldn’t be enclosed but it would at least be able to get us with equipment underneath some some type of rain and snow.

Unknown Speaker 18:16
So carport side.

Speaker 5 18:18
Yeah. Again, waiting for responses and working with our purchasing division. towards trying to do that, it’ll be our hope that we will be able to make some real decisions by by June. Next slide. The other issue. Next one, please. The other thing that that we’re really experiencing is everything in the operational side of doing businesses is going way up. Just to give you an example of what we paid for in seasonal golf cards, which are cards we rent from October 1 until September 30 theropods. They’re supplemental to what I’m going to talk about next, but just their cost went from 35,000 A season 260 4000. And then if you could go to the next slide. This gives you an example. We were doing a current lease from 2018 until 2022 for the golf cards at you creek that that rental or that lease cost went from $55,000 annually to 99,000, almost $100,000 And the only thing we did differently in those golf carts is that we went to flip Team Battles. We feel like we’re gonna get some better longevity with that. We did sign a five year lease. So when In our golfers go to the golf course and see that golf rental rates went up from what they were to what they are now just had a 15 day 15 Day team, that that is about a 20 to 20% increase in in the cost to this is closer to 50 to 60%. In business. So we understand that, that we have a market that we’re trying to appeal to with our with our golfers, and we couldn’t raise our rates enough to cover the real cost. So we felt like we needed to do that in bite size portions, we feel like next year, that’d be another probably a 10% increase to try to at least try to cover that. And then if you could go to the next slide. The other thing is the cost of, of wages. In 2021, we were paying most of our temporaries. And this is just a temporary rise right now temporaries were being paid between 15 and 1550 per hour. Last year, we were really struggling across the city with trying to hire temporary employees. City council was gracious enough to to listen to the issues that we’re having with hiring temporary employees. And they increased the minimum wage from 12. At the 1550s. They also agreed in 23, to raise that number to 1640 41. So anyone that’s starting within golf, as a temporary is starting out at sr 1641. And then we pay some stipends or higher amounts and it’s going well for years of service and in different experiences. So the cost of far wages have gone up by you know, $220,000, just to be able to staff at the level that we need to do. These two items, just to the golf carts and wages are just examples of things that I’m probably preaching to the choir at this point. If if you are going to the grocery store, or if you’re going out to eat, you’re seeing the same things in golf is no different. Everything that we we do is costing a lot more money. Just to give you an example in in fleet costs, and I don’t remember if we have a slide on this or not. Yeah, no. But for fleet in 2023, we had $320,000 budgeted to replace equipment, that equipment came in 76 to $80,000, higher than what was budgeted. And so we had to go through an appropriation to be able to buy the equipment or afford to buy the equipment that we needed to buy for this year. The other issue that is going along with that is link time, we haven’t even gotten 2022 equipment, all of our equipment, let alone any of our equipment for for buying in 23. So most of that equipment will not come in until May of 2020 for the year. So there’s all these lead time, things that we’re also having to deal with, across the the operation. So that’s if you could go to so that’s just kind of a summary of where we’re at in golf operations. We did raise our green fees. By $2,000 I believe it was over, depending on whether it was nine holes are 18 holes, we increased also the cart fees, we increased the range balls. The one thing that we did do in an effort to try to be loyal to our our existing customers is that we did not raise any of our passes or any of our 10 Punch fees for the range to try to be loyal to them. We’re not going to be able to for them to do that again next year. So in 2024, you will see passes and those areas going up as well.

Speaker 2 25:10
We did raise the use of these videos to raise the purchase price rises already premium pass the punchcards ordering passes. But you’re right, you can expect to see the purchase prices go up.

Speaker 5 25:28
So that’s just kind of a quick summary of budget. Does anyone have questions or comments or thoughts?

Speaker 1 25:38
You the budget? Guess you had to go to the long one city board?

Unknown Speaker 25:44
Yes, yes. Yep. So,

Unknown Speaker 25:47
so what happens if like, you know,

Speaker 7 25:49
we had we had the budget and and we exceed

Unknown Speaker 25:54
the budget, are you?

Speaker 5 25:57
Yes, that cannot happen. So what what we as staff are required to do is in the example that I gave for fleet where we were

Unknown Speaker 26:09

Speaker 5 26:13
Over what was budgeted. So we have to go, what is through is, is a appropriation, where we have to explain to city leadership, why we need to caveat additional money, and then that has to go to city council to be approved to be able to spend money, any money that the city spends has to be approved and appropriated according to budget law within the state. And if we don’t do that, there is a potential of serious issues that come up. And we take that money from fund balance to properly

Speaker 1 26:56
put our money, right, it’s

Speaker 5 27:00
it’s tough money. You know, it’s all for those items, other than the bond projects, all of that is cost money.

Speaker 1 27:10
So why why did you go so conservative in our budget?

Speaker 7 27:15
I mean, it was like, you already know you’re gonna have to? Well, Magnus or something? Well,

Unknown Speaker 27:23
it’s about the question is concerning the

Speaker 5 27:26
revenue side? Yeah. So just just so you’re aware, I’m acting like I know a lot about budget. I know a lot now. Because we’ve gone through all the process when I had to submit the budget was a year ago. So I had to do what was our best estimate? Right now. On Friday, I did the same thing for 2024. Use my best estimates based on what I know today, of what our budget would be for next year. And the whole cost thing is, is finally starting to level out. But it was it’s been ridiculous over the last two plus years

Speaker 8 28:18
was it’s tough to guess what is going to be how many people are going to show up? What tournaments don’t get that are going to be committed. There’s no guarantee I

Speaker 5 28:28
know and I looked really smart when it was February and March when it’s snowing and raining there. Really part of April was not all that good. And then to get the April report and see that we’ve caught up not only caught up but passed last year, which was our one of our best years in golf history is is just says a lot to how much people are committed to golfing and lawn mods, and how much they like the product and services that these folks are providing. So as I always says a lot about the

Speaker 8 29:08
house to say that when somebody doesn’t get paid for two months because of weather, it doesn’t matter. They’re gonna go wherever stashes they can get and they’re dead. Those that are local and hold courses are going to say comfortable here like that. Because I know I get it. I know what’s going to happen there. You don’t have to worry about

Unknown Speaker 29:28
welfare, you’re aware.

Speaker 8 29:33
That’s a big benefit. Everybody knows what’s at issue, of course, is that.

Speaker 5 29:41
Yeah, the weather this winter certainly made people hungry to play golf. And then you have challenges like Dan dealt with an inch and a half of rain Thursday afternoon. He could Yeah, he could have showed you the The new river that is

Speaker 3 30:04
but yeah I have a video of a team it was it was a 12 foot wide river in between fairway and my parents house. It wasn’t safe

Unknown Speaker 30:15
apartments were thrown at

Speaker 9 30:18
you. I don’t buy there on Thursday. Well, Thursday was working down on

Speaker 8 30:25
Friday afternoon but there was still six to eight inches of hail standing in that ditch. It was like there

Speaker 5 30:33
it was the same we had a meeting out there Friday morning in the Safeway parking lot it looked like it didn’t have a snowstorm right? Well

Speaker 3 30:44
we got we didn’t get anything like that at sunset. I don’t

Speaker 8 30:48
know have stopped there basically a flashing Yeah, because I was driving across town for homework or to uncertainty. And as soon as I hit last week at certain certain days, and by the time I get to my house which is just past pace. I had hail everywhere

Speaker 3 31:04
but we had a we had a sprinkle of hail but other than that again, add a bolt of lightning and drop down by the park in the parking lot as I was leaving, I just dropped the right next to the truck and literally everything out we just substrate

Unknown Speaker 31:20
for questions on the budget, we wanted the

Speaker 5 31:28
kind of covered that at the same time. Add a question to the model from the staff. I do have one question. So we were scheduled to meet again in June wanted to know what your thoughts are about meeting June. I cannot meet in July so if we don’t meet in June and August will be for next meeting. So if you’re available, I think it’d be good to have a June sorry.

Speaker 2 32:03
I contact old every time

Unknown Speaker 32:13
right so you’re right on to the

Unknown Speaker 32:15
schedule. Yes, yeah.

Unknown Speaker 32:19
No, no, I just want to make sure you can have that for June.

Unknown Speaker 32:26

Unknown Speaker 32:27
Maybe it was Lord. Yes. I don’t have an office. We have another family vacation

Unknown Speaker 32:41
in the kitchen. Okay.

Unknown Speaker 32:48
Can you

Speaker 1 32:53
have a motion to adjourn? So my second was been moving very sanguine. All day shy. I am endlessly gravely

Unknown Speaker 33:08
good meeting Mr.

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