Municipal Property Corporation - Golf Course

MEETING MINUTES Board of Directors Meeting Douglas Public Facility Municipal Property Corporation Tuesday, January 22, 2019, 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 5:32 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 Juan Pablo Flores, City Attorney. Staffer, Rhiannon Posada and guest, Sandy Nelson was present. Board Members Manny Robles was a bit tardy coming in at 5:34 p.m., and Paula Shelton was 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. The bank account was reported to have a balance of over $9,600 by Mr. Selchow. Juan Flores noted that Mr. Pedroza reported he had done his quarterly presentation on finances back in November 2018, and for those reasons would not give new presentation until February 2019, and in acknowledging this Mr. Selchow also noted that he does not as of yet have financials from Larry on the December 2018 MPC figures. Chair reported that MPC had a good weekend in terms of revenue due to quinceaneara and tournament events. Mr. Pedroza came in about 5 minutes into the meeting and after a brief discussion it was determined that he did not need to address any financial concerns for the Board at this time. 5. Approval of Minutes for the Douglas Public Facility Municipal Property Corporation (MPC) for board meeting held on December 18, 2018. 1  After some discussion to attempt to clarify, Mr. Nelosn pointed out need to correct paragraph 4 to better reflect discussion. Mr. Flores briefly pointed out his version of the discussion and vowed to fix paragraph by going back to portion of the recording referencing $4.1K along with comment from Mr. Russell. A motion was made by Ken Nelson and seconded by Francisco ‘Tachi” Durazo to approve the minutes as written with the required correction on the noted discussion, 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 and placing a rolling gate to control traffic. Mr. Selchow reported that after a few reported calls to Mr. Schumaker, but there has been no contact or return phone calls from the RV Park owner have been received 520-840- 0026 in the number mr. nelson apparently has for the gentleman and this was confirmed by Mr. Selchow and Phil Cunningham may have a direct line to Mr. Schumaker. Mr. Francisco “Tachi” Durazo asked about what the board’s policy in this respect and Mr. Nelson noted that due to the lack of professionalism in not returning phone calls and on account of competitor undercutting the MPC’s RV Park prices, and that shutting the gate could be an option, and Mr. Durazo pointed out that free competition is his position and should also be the Board’s stance and that a resolution should be found on amicable or cordial grounds. Mr. Selchow guided the discussion back to topic of Board options, and due to liability issues, the possible gate solution was again identified as an option along with possible reactions to this from private RV Park owner were also discussed. Other legal options were discussed with direction identified by Mr. Bosco again making gestures to reach out to Mr. Schumaker, as the most viable option to get to some clarity at this time along with possible waiver built in to private RV Park space rental. Mr. Flores clarified the ‘waiver’ possibility to free the MPC & individual golfers from potential liability of a motor home being struck while driving across the easement as a viable option and confirmed that since we consent to public use, there are no concerns on adverse possession grounds. Mr. Pedroza chimed in that a required insurance policy could also shift liability to private RV Park owner and other considerations regarding road & cart path definition considerations were discussed. 7. Information/Discussion, Reporting and possible Decision on standing report from staff regarding maintenance of the golf course MPC facility, equipment and water issues with the 8th hole. Board handled Item 8 was handled before item 7 and then came back to discuss with Mr. Selchow reporting that Mr. Forrest was unable to attend tonight’s meeting. The list of concerns Mr. Forrest provided noted that he is still having a difficult time keeping equipment running and operational with the rough mower functional but the fairway mower down and still undergoing troubleshooting measures. Next item on the list was reported that there is still a need of parts like sprinklers and basic infrastructure for parts for the irrigation system with Mr. Selchow reporting most of these should be able to be handled by the Board. Front side of course water valve will also be 2  attempted to be repaired in-house. RV Restrooms need cleaning and repairs with need for 18 green repairs and dig out 6 inches cover up green and start from new. Resurfacing and painting parking lines at the parking lot may help improve appearance with possibly borrowing boom truck from City for tree pruning. Mr. Selchow noted he would contact max at the City for help with pruning truck. Number 7 on the list, was the prospect of going halves on the $600 rotary mower with Mr. Romero & Mr. Saad and this sounded by a rough riding mower and more information would be gathered by Chair and may consider just a standard cut noted ‘Tachi’. Board reiterated commitment from City for labor and parts for equipment repairs to be performed by the PW maintenance crew as repairs/parts do not exceed value of the piece of equipment itself. The RV Park restroom partition may need repair and it was noted that cleaning by our volunteer was more urgent than other factors. On 18 green repairs, board felt suggested measure by Mr. Forrest was a bit drastic and only needed hand weeding the crabgrass or using plugs from the putting green to reestablish bent grass on the subject green. As for re-striping the parking lot, Board was in favor of doing this only if funds were available or City was able to help in some way or even provide the sweeper. Mr. Pedroza identified striping is usually for ROWs and Board identified possibly restriping could be accomplished with their own crew. Weeds were also identified as a problem at the golf course along with water leak issues being generally discussed by the Board with no specific reports being given. 8. Information/Discussion, Reporting and possible Decision on new Golf cart lease. Mr. Pedroza reported that the quote from EZ Go for the cart offers a 60 month fair market value lease, as opposed to the current 48 month lease that was entered into about 3 years ago. Refinancing the 30 and bringing in 25 new carts and notes the market pricing for leases have gone up significantly about $15/month as compared to the previous four year lease. Working the numbers for the 25 cart five year lease newly affords the same price value as the previous 30 cart lease. Question was asked about hour meters on carts to be able to figure out the service intervals per Mr. Nelson. Manny Robles questioned the lowering of the cart numbers at the course with Mr. Selchow mentioning that the high use events only occur a couple times per year. Mr. Pedroza noted that in reality the MPC cannot afford the 30 cart lease and would have only afforded the 23 cart lease, but that Mr. Pedroza was able to find a cost savings by identifying a loop hole that makes the MPC exempt from sales tax. Kevin Alvarado pointed out that there are always a few down for maintenance and that board should consider outright purchases of a couple of carts to use for maintenance purposes. Board also expressed about taking better care of the new carts and to not fall under the same poor maintenance practices as in the past. The new carts per Mr. Selchow are a bit more modern and quieter and come in a darker almond color than the previous carts. Currently the carts the MPC has have a FMV purchase price at the end of the lease that is to occur a year from now. The current lease offer recognizes that the current cart conditions are poor and capitalizes on the re- financing option to accommodate the same payment for 5 fewer carts that will be brand new and will be delivered before the early summer months. There was a motion to approve the new lease of 25 new carts by Francisco ‘Tachi” Durazo and seconded by Kevin Alvarado, comments reiterated an improved maintenance and service protocol and the motion was approved unanimously. Going back to number 7 at this point. 3 9. Information/Discussion, Reporting and possible Decision on updating or possible changes to the facility’s website. No report yet for City Website ready to be given with need by Chair for their own website. Mr. Nelson would do a search for the Douglas Golf and RV Park website by checking if domain is still available and possibly get some pricing for Board to consider along with a possible built-in calendar for future reporting. 10. Information/Discussion, Reporting regarding status of City list of facility equipment to be auctioned. Mr. Flores pointed out that he understood the goal of this agenda item was for equipment to be identified for possible use by the MPC prior to items or equipment going to final public auction. The number of City auctions were discussed briefly with an eye toward the noted goal of earmarking useable equipment for the MPC. 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. Mr. Summers has picked up the slack and cleaned up his personal items around his area, with better job expectations for bathrooms cleaning and bunkers maintenance. Air conditioning and heating is all Board is waiting on for the rental on Golf premises. Lighting LED upgrades were done to the clubhouse, bar area and service areas with a walk-through. Tournament was had on Sunday 1/20/2019 with 30 players attending, with an event on 1/19 with good revenue but rough condition left behind by renters. There are several events planned for the following week with a party on Saturday the 27th The Douglas Golf and Social club starts the new tournament year in February 2019. The DOC agreement will be reviewed at the next month’s Board meeting, along with personnel considerations and reporting in closing done by Chair; and Gate needs to be fixed per Rhiannon. 10. Discussion and direction/consensus for items to be discussed at future meetings. DOC Agreement for formal approval, the Golf Course website update, RV Park situation, and potential mower deal with Rudy Romero and Kiko Saad/ 11. Adjournment Motion made by Manny Robles and seconded by Ruben Robles to adjourn and meeting closed out at 6:33 p.m., with unanimous vote. Posted February 20, 2019 at 4:30 p.m. by: ____________________________________ Juan Pablo Flores Esq., 4