Municipal Property Corporation - Golf Course

PUBLIC NOTICE BOARD OF DIRECTORS MEETING FOR THE DOUGLAS PUBLIC FACILITY MUNICIPAL PROPERTY CORPORATION will meet Tuesday, September 25, 2018, at 5:30 p.m. at Douglas Golf Course 1372 E. Fairway Drive Douglas, AZ PURSUANT TO THE AMERICANS WITH DISABILITIES ACT (ADA), THE CITY OF DOUGLAS DOES NOT, BY REASON OF A DISABILITY, EXCLUDE FROM PARTICIPATION IN OR DENY BENEFITS OF SERVICES, PROGRAMS OR ACTIVITIES OR DISCRIMINATE AGAINST ANY QUALIFIED PERSON WITH A DISABILITY. INQUIRIES REGARDING COMPLIANCE WITH ADA PROVISIONS, ACCESSIBILITY OR ACCOMMODATION CAN BE DIRECTED TO RENE MOLINA WITHIN 72 HOURS AT 520.417.7312, FAX 520.417.7143, 425 10TH STREET, DOUGLAS, ARIZONA 85607. 1  AGENDA Board of Directors Meeting Douglas Public Facility Municipal Property Corporation Tuesday, September 25, 2018, at 5:30 p.m. at Douglas Golf Course 1372 Fairway Drive Douglas, AZ 85607 1. Call to Order 2. Roll Call 3. Persons wishing to address the committee in writing or verbally on any item not on the agenda. 4. Approval of Minutes for Douglas Public Facility Municipal Property Corporation (MPC) meetings held on August 21, 2018. 5. Report or update on current Balance Sheet(s) and/or Bank Balance(s). 6. Discussion/Presentation and possible Decision/Direction on approving the 2018-2019 Budget for the MPC, and possible report/comparison regarding 2017-2018 and 2018-2019 Budget forms. 7. Discussion/Presentation and possible Decision/Direction regarding status of ADOC employee service to the golf course and facility. 8. Information with Discussion and possible Decision/Direction on formal documentation and reporting of employee hours worked. 9. Information with Discussion and possible Decision on standing report from staff regarding maintenance at the golf course MPC facility. 10. Information/Update with a possible Discussion/Decision on any recent events, occurrences, tournament updates or concerns at the golf course since the August 2018 meeting. 11. Discussion and direction/consensus for items to be discussed at future meetings. 12. Adjournment Posted September 21, 2018 at 3:00 p.m. by: ____________________________________ Alma Andrade, Deputy City Clerk 2  MEETING MINUTES Board of Directors Meeting Douglas Public Facility Municipal Property Corporation Tuesday, August 21, 2018, at 5:30 p.m. at Douglas Golf Course 1372 Fairway Drive Douglas, AZ 85607 1. Call to Order Meeting was called to order by Francisco “Tachi” Durazo at 5:31 p.m. 2. Roll Call Board Members present were: Bosco Selchow (6:06 p.m.,) & Paula Shelton (6 p.m.,) (showed up a few minutes after commencement), Manny Robles, Ken Nelson, Francisco “Tachi” Durazo and Ruben Robles. City Official(s) present was Luis Pedroza, Finance Director. Others persons attending were Rhiannon Posada. Kevin Alvarado are absent and excused. 3. Persons wishing to address the committee in writing or verbally on any item not on the agenda. (NONE) 4. Approval of Minutes for Douglas Public Facility Municipal Property Corporation (MPC) meetings held on July 17, 2018. A motion was made by Ken Nelson and seconded by Manny Robles to approve minutes as presented and after little to no discussion, the motion was approved unanimously. 5. Quarterly Financial update/report on current months and 2018-2019 fiscal years for the Douglas Public Facility Municipal Property Corporation. The report may include Balance Sheet(s) and/or Bank Balance(s), along with possible information on the figures for the 2017-2018 fiscal year subsidy. A report was provided by Luis Pedroza. He reported having the 2017-2018 financials through June 30, 2018. The figures show fiscal year revenue at 101% of budgeted figures. Once you factor in the $4K cash infusion from City the budgeted income in right at 100%. Expenditures came in at 106% of the budgeted amount. The $12K payout is what put MPC over and the overall subsidy was $17,431 over budgeted amount. The total subsidy was $202K with $185K being budgeted. Once you factor in the payout, the subsidy is reported at roughly $5K over the programmed amount. Cash balance is stable at $4,700 in the bank as of today for payroll purposes. Ken Nelson had a question about plans from City Administration about making up for the $5K in expected subsidy overage and the reduction in subsidy from the City, and shared that in his opinion it was not in the best overall interest of the City. Luis Pedroza noted that revenues would need to increase and expenses would need to be mitigated. Pedroza noted that all City departments took a reduction and City Golf was no exception. “Tachi” Durazo noted that new hall rental fees were not advertised as promised and that hall rentals remain steady without any increases. Advertising is still needed as noted by Ruben Robles and Ken Nelson (local hall rental competition was pointed out by group) and Luis 1  Pedroza requested that marquee advertising should be sent to his attention. Current hall fees were noted by Rhiannon at $600 to include all components. House rental information was requested by MPC Board as DOC inmates are lacking at MPC and City level; progress is being made to refurbish home. Once Max’s paving projects at City slows down the house will get more attention. 6. Discussion/Presentation and possible Direction regarding 2017-2018 and 2018-2019 Budget documentation and forms along with comparisons on same for Golf Course MPC. Luis Pedroza reported he has not received budget document from Bosco Selchow. Item was postponed to the end of the meeting with a motion from Ken Nelson and seconded by “Tachi” Durazo and approved by group. (although not necessary). Once Bosco Selchow joined meeting the discussion did not get very far as he noted that all his notes were submitted to CM. Duel would be paid by MPC and purchasing lower quantities to protect cash flow-as lots of outside mowers are being used with high fuel consumption. 7. Discussion/Presentation along with possible decision on MPC obtaining logistics and support for the Labor Day 2018 Golf Tournament. “Tachi” Durazo reported that due to a lack of DOC the golf course has foregone and done without even the routine maintenance. There are events planned that will need course maintenance attention. Many Board members and volunteers have contributed a significant amount of work to the facility. Ten days are left before the Labor Day tournament, with many more volunteers planning to continue the free labor in mowing and maintenance. This is an untenable position & “Tachi” Durazo would like to ask CM for City Parks staff & equipment to help with grounds keeping & last minute mowing to get ready for the tournament. Bosco Selchow has contacted DOC for help and “Tachi” Durazo (though Luis Pedroza) will contact CM for direct help. Labor Day tournament logistics were discussed in general by group and Bosco Selchow confirmed all the reports given and is not very confident about getting the back 9 ready for tournament. It was reported that the big gang mower machine is ready to be used thanks to Kevin Foreman. Per Bosco, cart numbers seem to be where they need to be for the tournament. 8. Information with Discussion and possible Decision on formal documentation and reporting of employee hours worked and policy and status of employees as either being independent contractors or MPC employees. “Tachi” Durazo clarified two-prong approach of agenda item, with independent contractor (IC) uses his own tools, resources and time. An employee is directed and has set hours per Luis Pedroza per IRS guidelines. Item was postponed to end on meeting with motion from “Tachi” Durazo and seconded by Ken Nelson and approved by group. (although not necessary). Bosco Selchow noted that Robert Forrest is definitely not an IC and will need a job description or some Employment Agreement, currently no taxes are taken out or have Workmen’s Compensation but is being provided insurance; no contract has been provided by Robert Forrest to date other than an informal hand written wage agreement that had been signed by him and Smythe (as has been advise by Ken Nelson on this and previous occasions). Upon inquiry by Mr. Pedroza, Bosco Selchow responded that the job title would be: Superintendent or possibly groundskeeper with Pedroza to provide City job descriptions from City. Hours worked records wise will be handled by Bosco Selchow (as he assured board) he would make sure proper records are kept on this concept by MPC. 9. Information with Discussion and possible Decision on standing report from staff regarding maintenance at the golf course MPC facility. Bosco Selchow incorporated previous reports given for other agenda items and “Tachi” Durazo pointed out that expectations will need to be set forth with groundskeeper as to job performance and attendance at board meetings. 2 10. Information/Update with a possible Discussion/Decision regarding Robert Forrest’s contract for the 2018-2019 fiscal year. Work study session will need to be set up to come up with ideas for job performance and description. Size of group was discussed in order to prevent arranging a full blown meeting, as 3 or less (with other City officials present) could meet without the posting requirement and August 29 at 5:30 was set as meeting date. Bosco Selchow to appoint a committee to set discuss concept with “Tachi”, Bosco and Ruben (with City officials) making up that oversight on agenda topic. 11. Information/Update with a possible Discussion/Decision on any recent incident, event(s) or concerns at the golf course since the July 2018 meeting. Ken Nelson reported tournament a week ago Sunday and it was a great event with over and group also reported the Huber Junior high also had a well-attended tournament. Sun Downer is getting a good deal of attention; a general discussion on attendance of customers and salaries to maintain appropriate staff when food is served. 12. Discussion and direction/consensus for items to be discussed at future meetings. Budget item as noted on number 6 herein, update on item 8 on this agenda, as well as the Forrest employment matter. 13. Adjournment A motion was made by Ken Nelson and seconded by Ruben Robles to adjourn the meeting at 6:34 and the motion was approved unanimously. Prepared by Juan Pablo Flores, City Attorney 3  Golf Course MPC Budget FY 2018/2019 INCOME MPC CITY TOTAL GREEN FEES 50,300 50,300 TOURNAMENT FEES 6,000 6,000 LOCKER RENTAL 150 150 PUBLIC CART RENTAL 4,700 4,700 PRIVATE CART STORAGE 4,000 4,000 RANGE BALL RENTAL 3,100 3,100 PRO SHOP SALES 4,500 4,500 RV PARK SPACE RENTAL 35,000 35,000 HALL RENTAL/EVENTS 8,200 8,200 BEVERAGE SALES 70,000 70,000 FOOD SALES 10,000 10,000 EFFECTIVE INCOME 195,950 195,950 OTHER INCOME CITY SUBSIDY 170,000 170,000 TOTAL OTHER INCOME 170,000 170,000 EFFECTIVE GROSS INCOME 365,950 365,950 OPERATING EXPENSES PAYROLL EXPENSES GOLF COURSE/BAR PERSONNEL 140,000 140,000 BENEFITS/PAYROLL TAXES 7,000 7,000 TOTAL PAYROLL EXPENSES 147,000 147,000 GENERAL ADMIN EXPENSES LICENSES 10 10 ADVERTISING 600 600 DOC LABOR 5,500 5,500 DUES/SUBSCRIPTIONS/BUS LIC FEE 830 830 BOOK KEEPING/PAYROLL SERV 1,800 1,800 OFFICE SUPPLIES 200 200 POSTAGE 50 50 PROFESSIONAL SERVICES (SECURITY) 750 750 TELEPHONE/INTERNET 50 50 BANK FEES/DEBIT CREDIT CARDS 4,300 4,300 TOTAL GENERAL ADMIN EXPENSES 8,540 5,550 14,090 MAINTENANCE EXPENSES FIRE EXT INSPECTION 500 500 CHEMICAL TOILET SERVICE 882 882 AUTO/EQUIPMENT 300 300 ELECTRIC MAINTENANCE 500 500 GROUNDS MAINT/SUPPLIES 22,410 22,410 BUILDING MAINT 2,000 2,000 PEST CONTROL 1,000 1,000 LINEN SERVICE 2,100 2,100 GASOLINE/LUBE 2,000 11,500 13,500 CHEMICALS 1,500 1,500 CITY OF DOUGLAS LOAN 3,600 3,600 TOTAL MAINT EXPENSES 34,910 13,382 48,292 INVENTORY PRO SHOP ITEMS 3,000 3,000 FOOD 2,500 2,500 BEVERAGES 21,736 21,736 TOTAL BAR/PRO SHOP EXPENSE 5,500 21,736 27,236 INSURANCE WORKMANS COMP 1,215 1,215 HAZARD INSURANCE 19,141 19,141 INSURANCE CLAIMS/DEDUCTIBLE 0 TOTAL INSURANCE 0 20,356 20,356 UTILITIES DIRECT TV 2,400 2,400 ELECTRIC CC 13,500 13,500 ELECTRIC GOLF COURSE 30,000 30,000 WATER/SEWER/TRASH 20,186 20,186 NATURAL GAS 2,700 2,700 RV UTILITIES 20,500 20,500 TOTAL UTILITIES 0 89,286 89,286 TOTAL OPERATING EXPENSES 195,950 150,310 346,260 DEBT SERVICE LEASE PURCHASE CARTS 19,690 19,690 TOTAL DEBT SERVICE 0 19,690 19,690 GRAND TOTAL EXPENSES 195,950 170,000 365,950 DIFF REVENUE/EXPENSES 170,000 -170,000 0  Golf Course MPC Budget Golf Course MPC Actuals FY 2018/2019 FY 2017/2018 INCOME INCOME MPC CITY TOTAL MPC CITY TOTAL GREEN FEES 50,300 50,300 GREEN FEES 47,285 47,285 TOURNAMENT FEES 6,000 6,000 TOURNAMENT FEES 6,045 6,045 LOCKER RENTAL 150 150 LOCKER RENTAL 163 163 PUBLIC CART RENTAL 4,700 4,700 PUBLIC CART RENTAL 4,745 4,745 PRIVATE CART STORAGE 4,000 4,000 PRIVATE CART STORAGE 3,947 3,947 RANGE BALL RENTAL 3,100 3,100 RANGE BALL RENTAL 3,104 3,104 PRO SHOP SALES 4,500 4,500 PRO SHOP SALES 4,479 4,479 RV PARK SPACE RENTAL 35,000 35,000 RV PARK SPACE RENTAL 34,454 34,454 HALL RENTAL/EVENTS 8,200 8,200 HALL RENTAL/EVENTS 8,163 8,163 BEVERAGE SALES 70,000 70,000 BEVERAGE SALES 67,718 67,718 FOOD SALES 10,000 10,000 FOOD SALES 11,392 11,392 EFFECTIVE INCOME 195,950 195,950 EFFECTIVE INCOME 191,496 191,496 OTHER INCOME OTHER INCOME CITY SUBSIDY 170,000 170,000 CITY SUBSIDY 201,783 201,783 TOTAL OTHER INCOME 170,000 170,000 TOTAL OTHER INCOME 201,783 201,783 EFFECTIVE GROSS INCOME 365,950 365,950 EFFECTIVE GROSS INCOME 393,279 393,279 OPERATING EXPENSES OPERATING EXPENSES PAYROLL EXPENSES PAYROLL EXPENSES GOLF COURSE/BAR PERSONNEL 140,000 140,000 GOLF COURSE/BAR PERSONNEL 139,221 139,221 BENEFITS/PAYROLL TAXES 7,000 7,000 BENEFITS/PAYROLL TAXES 7,072 7,072 TOTAL PAYROLL EXPENSES 147,000 147,000 TOTAL PAYROLL EXPENSES 146,293 146,293 GENERAL ADMIN EXPENSES GENERAL ADMIN EXPENSES LICENSES 10 10 LICENSES 10 10 ADVERTISING 600 600 ADVERTISING 625 625 DOC LABOR 5,500 5,500 DOC LABOR 4,639 4,639 DUES/SUBSCRIPTIONS/BUS LIC FEE 830 830 DUES/SUBSCRIPTIONS/BUS LIC FEE 160 670 830 BOOK KEEPING/PAYROLL SERV 1,800 1,800 BOOK KEEPING/PAYROLL SERV 1,800 1,800 OFFICE SUPPLIES 200 200 OFFICE SUPPLIES 125 153 278 POSTAGE 50 50 POSTAGE 12 12 PROFESSIONAL SERVICES (SECURITY) 750 750 PROFESSIONAL SERVICES (SECURITY) 745 12,369 13,114 TELEPHONE/INTERNET 50 50 TELEPHONE/INTERNET 14 14 BANK FEES/DEBIT CREDIT CARDS 4,300 4,300 BANK FEES/DEBIT CREDIT CARDS 4,261 4,261 TOTAL GENERAL ADMIN EXPENSES 8,540 5,550 14,090 TOTAL GENERAL ADMIN EXPENSES 7,738 17,846 25,584 MAINTENANCE EXPENSES MAINTENANCE EXPENSES FIRE EXT INSPECTION 500 500 FIRE EXT INSPECTION 0 CHEMICAL TOILET SERVICE 882 882 CHEMICAL TOILET SERVICE 882 882 AUTO/EQUIPMENT 300 300 AUTO/EQUIPMENT 626 626 ELECTRIC MAINTENANCE 500 500 ELECTRIC MAINTENANCE 0 GROUNDS MAINT/SUPPLIES 22,410 22,410 GROUNDS MAINT/SUPPLIES 32,727 240 32,967 BUILDING MAINT 2,000 2,000 BUILDING MAINT 855 7,860 8,715 PEST CONTROL 1,000 1,000 PEST CONTROL 960 960 LINEN SERVICE 2,100 2,100 LINEN SERVICE 2,186 2,186 GASOLINE/LUBE 2,000 11,500 13,500 GASOLINE/LUBE 41 13,548 13,589 CHEMICALS 1,500 1,500 CHEMICALS 1,355 1,355 CITY OF DOUGLAS LOAN 3,600 3,600 CITY OF DOUGLAS LOAN 4,000 4,000 TOTAL MAINT EXPENSES 34,910 13,382 48,292 TOTAL MAINT EXPENSES 35,809 29,473 65,281 INVENTORY INVENTORY PRO SHOP ITEMS 3,000 3,000 PRO SHOP ITEMS 3,270 3,270 FOOD 2,500 2,500 FOOD 4,703 4,703 BEVERAGES 21,736 21,736 BEVERAGES 26,969 26,969 TOTAL BAR/PRO SHOP EXPENSE 5,500 21,736 27,236 TOTAL BAR/PRO SHOP EXPENSE 7,973 26,969 34,942 INSURANCE INSURANCE WORKMANS COMP 1,215 1,215 WORKMANS COMP 2,296 2,296 HAZARD INSURANCE 19,141 19,141 HAZARD INSURANCE 23,834 23,834 INSURANCE CLAIMS/DEDUCTIBLE 0 INSURANCE CLAIMS/DEDUCTIBLE 0 TOTAL INSURANCE 0 20,356 20,356 TOTAL INSURANCE 0 26,130 26,130 UTILITIES UTILITIES DIRECT TV 2,400 2,400 DIRECT TV 2,335 2,335 ELECTRIC CC 13,500 13,500 ELECTRIC CC 13,669 13,669 ELECTRIC GOLF COURSE 30,000 30,000 ELECTRIC GOLF COURSE 24,277 24,277 WATER/SEWER/TRASH 20,186 20,186 WATER/SEWER/TRASH 22,397 22,397 NATURAL GAS 2,700 2,700 NATURAL GAS 2,357 2,357 RV UTILITIES 20,500 20,500 RV UTILITIES 17,319 17,319 TOTAL UTILITIES 0 89,286 89,286 TOTAL UTILITIES 0 82,354 82,354 TOTAL OPERATING EXPENSES 195,950 150,310 346,260 TOTAL OPERATING EXPENSES 197,813 182,771 380,584 DEBT SERVICE DEBT SERVICE LEASE PURCHASE CARTS 19,690 19,690 LEASE PURCHASE CARTS 19,690 19,690 TOTAL DEBT SERVICE 0 19,690 19,690 TOTAL DEBT SERVICE 0 19,690 19,690 GRAND TOTAL EXPENSES 195,950 170,000 365,950 GRAND TOTAL EXPENSES 197,813 202,461 400,274 DIFF REVENUE/EXPENSES 170,000 -170,000 0 DIFF REVENUE/EXPENSES 195,466 -202,461 -6,996