Municipal Property Corporation - Golf Course

MEETING MINUTES Board of Directors Meeting Douglas Public Facility Municipal Property Corporation Tuesday, December 18, 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 Bosco Selchow at 5:30 p.m. 2. Roll Call Board Members present were: Bosco Selchow, Ken Nelson, Francisco “Tachi” Durazo, Ruben Robles and Kevin Alvarado. City Official(s) present were Jim Russell, City Manager and Juan Pablo Flores, City Attorney. Staffers, Rhiannon Posada and Robert Forrest were not present and reported as ill. Board Members Manny Robles and Paula Shelton were absent and excused. 3. Persons wishing to address the committee in writing or verbally on any item not on the agenda. (NONE) 4. Report or update on current Balance Sheet(s) and/or Bank Balance(s), with possible report from City regarding the current status of the subsidy. Mr. Selchow opened up the presentation by noting the MPC numbers presented and obtained from the MPC bookkeeper may not include the September/October 2018 figures and for these reasons numbers presented will not indicate actual position as not fully calculated/reported in the subsidy figures submitted by the City along with ledgers from Larry Moss for September and October 2018. The subsidy calculation notes is roughly about $5,234 and the June or July cash infusion from the City to the MPC in order for them to meet payroll was likely rolled into the loan MPC has with the City. This was confirmed by Mr. Russell and that the figure for the loan total was roughly $4.1K and Mr. Nelson expressed he was unsure if this ‘loan’ had been added to the subsidy amount. Ken Nelson followed-up with a comment that some line items were under budgeted and some were over budgeted, and concluded by asking CM what would happen if at some point in the future the MPC comes up short after it handles the day to day expenses.? CM explained that the City would inevitably have to step in and pay those over budget & expenses over and above the budgeted subsidy. Mr. Selchow mentioned that there are some annualized expenses that are reflected in the subsidy and then Ken Nelson asked about a line item noting Maintenance City he was unclear about, and he was advised by Bosco Selchow that it was for repairs of ice machine and like repairs. Ken Nelson noted that basically MPC is paying for fixing city equipment & CM responded that only parts and no labor is attributable to the subsidy. The Board Members were unsure if the latest numbers being included in the report & Mr. Flores 1 reported he would confer with Mr. Pedroza on the issue and get back to the Board Members were included in the subsidy figures. (For the record and outside the meeting setting Mr. Flores advised Board via email on 12/19/18 that per Mr. Pedroza today, the subsidy numbers presented at last night’s MPC Golf meeting DO include Larry’s September and October figures.) 5. Approval of Minutes for the Douglas Public Facility Municipal Property Corporation (MPC) for board meeting held on November 20, 2018. After some discussion to attempt to clarify, Mr. Selchow and Kevin Alvarado noted that the figures for Bob Summers may not be accurate a motion was made by Ken Nelson and seconded by Manny Robles to approve the minutes as written and presented for both months and the motion was approved unanimously. 6. Information/Discussion, Reporting and possible Decision regarding the status of easement between the golf course and the private RV Park. Mr. Flores reported that there is no formal easement on the subject and has basically been a gentlemen’s agreement. This factor, Flores noted gives options for the Board on how to best handle the matter with the neighboring RV Park Owner. Mr. Nelson noted that maybe just allowing golf carts thru the unimproved path may be a solution and Mr. Selchow mentioned that he feared retaliation for RV Park owner and possibly not allowing golfers to cut through the RV Park on their way to the SE golf course grounds. The possible competition aspect between RV Parks was briefly discussed with Bosco Selchow noting the competition may be undercutting our prices and may not be affecting the MPC clientele. Francisco “Tachi” Durazo brought up the point of liability of RV rigs traversing the course as had been previously discussed at other meetings. Ruben Robles brought up point that private RV Park patrons could traverse through the housing development and Mr. Flores pointed out that the streets in the development are owned by the HOA. Understanding the Board has options, Bosco Selchow concluded that he would talk to the private RV Park owner about some options on the use and status of the easement between the golf course and the private RV Park in light of the partnering history between the private RV Park owner and the MPC. 7. Information/Discussion, Reporting and possible Decision on standing report from staff regarding maintenance of the golf course MPC facility and equipment. Mr. Selchow noted that leak on hole number 8 of the golf course still remains, there was a new water line installed outside of the clubhouse and despite efforts from City crew the drainage on number 12 persists. Kevin Foreman may dig up area to diagnose and cannot tell from water bill if it is caused by a water leak and Francisco “Tachi” Durazo noted that it can be concluded that it is also not caused by syphoning from the nearby water hazard/pond due to physical terrain characteristics. Mr. Durazo finished his commentary by saying it may be excess system water and likely clean water recharge taking place. Bosco Selchow noted it was noted by Less Snyder says it may be part of a leaching type system. Equipment function status and condition of mowers were brought up by Ruben Robles and Cahir reported noted 3 large mowers are still operational and greens’ mowers are also functioning. There is a new individual that was hired to work at the facility. Chair noted building has not needed any repairs. Francisco “Tachi” Durazo noted kitchen needs cleaning due to grease buildup. 2 8. Information/Discussion, Reporting regarding status of City assistance on equipment maintenance for the MPC and the rental on golf course premises. CM opened up that repairs will be done by City facility staff with MPC being charged parts. But no labor and would assist as best they could and depending on workload. Francisco “Tachi” Durazo also inquired on the HVAC status on the rental and there was no report available and that rental rate would need to be established based on market, condition and amenities offered per Ruben Robles. 9. Information/Update with a possible Discussion/Decision on volunteer situation status and current events, updates or concerns at the golf course since the November 2018 meeting. Bosco Selchow reported that Bob Summers responded accordingly with no push back being reported, and good work product results were reportedly noticed by other Board members. Chair reported that an agreement had been reached with ADOC inmate labor consisting of a 4 crew and the Board was content with the news and Bosco was commended. Bosco reported staff has received the appropriate training for handling the arrangement and that the goal is to supervise, control and manage the inmate crew closely and Mr. Flores agreement will need to be considered for approval at the January 2019 Board meeting. Much business activity is reported for the clubhouse with a recent wedding, a memorial, the City Employee Christmas party was held at the clubhouse, various tournaments and the sundowner remain active with many more events planned. Other than minor issues like unlawful fishing and minor green trespasses, there were no police reports have been reported during the period and employees were commented for general great work performance. 10. Discussion and direction/consensus for items to be discussed at future meetings. Consider City Equipment for auction to be prioritized and possibly reserved for MPC, update on the RV Park easement and MPC Golf course website, and water issue on #12, new golf cart lease. 11. Adjournment A motion was made by Ken Nelson and seconded by Ruben Robles to adjourn the meeting at 6:19 and the motion was approved unanimously. Prepared by: ____________________________________ Juan Pablo Flores Esq., 3