Municipal Property Corporation - Golf Course
Regular MeetingDouglas, AZ · July 16, 2019
Minutes
MEETING MINUTES
Board of Directors Meeting
Douglas Public Facility Municipal Property Corporation
Tuesday, July 16, 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 5:29 p.m.
2. Roll Call
Board Members present were: Francisco “Tachi” Durazo, Manny Robles, Ruben Robles,
Bosco Selchow and Kevin Alvarado. City Official(s) present was Juan Pablo Flores. City
Attorney. Staff member present was Robert Forrest and his daughter Azlynn Forrest as
guest. Not available to attend as of yet, David Arzate.
3. Persons wishing to address the committee in writing or verbally on any item not on the
agenda.
(NONE)
4. Report on Balance Sheet and/or Bank Balance(s) update/report on current months for the
Douglas Public Facility Municipal Property Corporation.
Bosco Selchow reported that the bank balance, after the deposit, should currently be close
to $7K, with the payroll process having occurred last Friday.
5. Approval of Minutes for the Douglas Public Facility Municipal Property Corporation
(MPC) for board meeting held on June 25, 2019.
After a comment by Francisco “Tachi” Durazo regarding his visit with Council, he noted
that on line 9 of the proposed minutes need to be modified to accurately reflect his IDA
visit purpose, and staff agreed to fix that particular sentence to correctly reflect the intent
of his IDA visit, and after some brief discussion, there was a motion to approve the
minutes for June 2019, as corrected and this was made by Francisco ‘Tachi” Durazo and
seconded by Ruben Robles, and the motion was approved unanimously.
6. Information/Discussion, Reporting and possible Decision on standing report from staff
regarding maintenance of the golf course MPC facility, equipment and water delivery
system.
1
The clubhouse AC was reportedly not working and City was requested to step in for
maintenance/repairs of the AC units. The clubhouse rental engagements during the
weekend suffered unnecessary heat and the party was given a refund of $150 cleaning
deposit as a gesture of good faith by the MPG management due to the air conditioning
being out. Robert Forrest then reported that three carts (for maintenance), one utility cart,
chemicals, back pack blowers & sprayers, grass seed and spare parts for watering were
purchased from the defunct Naco Golf Course. Naco GC (Turquoise Valley) will very
likely never open back up again noted Mr. Selchow. The report then turned to the water
capacity of the lake that is used for pumping irrigation water to the back nine, and that it
seems to be low due lower capacity as a possible result of sediment accumulation.
Various options for running water direct and bypassing the pump were discussed and
may be worth pursuing with the City noted Bosco Selchow. The back-flow issue was
then discussed as preventing the direct water connection. The discussion circled back to
noting that the lake capacity being down due to sediment buildup may require a
cooperative effort to fix with the City, with the goal of improving the water availability at
the Golf Course. It was noted by the group that the pond has not been dredged in recent
times, per the general knowledge of the board. Mr. Durazo continued by mentioning
watering issues and stating that greens may be getting a fair amount of water, but the
fairways are getting very little watering and are in poor condition; and Mr. Forrest noted
that this is due to water conservation measures being implemented by him to make sure
he can spread the water to reasonably cover the areas that generally need attention.
Robert Forrest responded to a comment about the sorry conditions of the greens, and how
he had been told by a person referred to as GG, from the chemical company, not to
perforate; and then the #1 green was briefly discussed, and that conditions on the 14, 16
& 18 greens may be coming around per Ruben Robles, but that these may need top-
dressing. Robert responded that the greens need rain in order to be able to top-dress them
with sand due to the heat element of the sand damaging the greens. On the back-flow
issue, Juan P. Flores suggested direct contact with City Administrators (and later
mentioned process again when it came to briefly discussing the tractor being loaned to
MPC Golf by the City). The topic of roping off areas to protect the grass from traffic was
then discussed and the consensus was to do this even as a cosmetic measure on 13, 15
and other holes, and that this could be done administratively & group commented on how
rain will be late and spotty for the area. The discussion then moved toward discussing
sand traps being mostly unplayable and maybe possibly converting them to grass traps,
but Mr. Bosco explained that first the plan was to direct volunteers toward correcting the
sand trap grass infestation problem and how this needs to be prioritized prior to Labor
Day.
7. Discussion/Presentation/Direction and possible decision regarding the proposed
2019/2020 budget for the Douglas Public Facility Municipal Property Corporation (MPC)
Bosco Selchow presented the proposed budget to the Board, and it is still being presented
informally, and it was a product of last week’s work session held by the Board. The
group had no questions or comments, so there was a motion to approve the budget as
presented made by Francisco ‘Tachi” Durazo and seconded by Kevin Alvarado, and the
motion was approved unanimously.
2
8. Information/Discussion, Reporting and possible Decision on recommending candidate to
replace Ken Nelson, as the new appointment of David Arzate and reappointment
recommendation for Manny Robles and Francisco “Tachi” Durazo to the MPC Board,
have been or about to be completed by the Mayor & Council.
Board discussed the current slate of members that will include David Arzate (to be
approved by City Council at the August regular meeting), and that Mr. Nelson will not be
considered for renewal by Council; and Mr. Flores offered to explain that it was a
misunderstanding on his part. The group noted there will be (1) vacancy to fill on the
board with possibly, Nick Forsyth being considered in the future; and the fact that the
board does not want to publicly look for new membership, and how this can cut both
ways (positively or negatively as to criticism).
9. Information/Update with a possible Discussion/Decision on current events, updates or
concerns at the golf course since the June, 2019 meeting.
Bosco Selchow reported the last Quinceanera was held, and the then the Website was
reported as up and running with a follow-up inquiry on the Golf Now contractual
obligations and options, but that Tee-Times can be restricted by the MPC Golf Board to
limit the usefulness & thereby the use by Golf Now patrons and that the process may
have already been curtailed; as the MPC does not see any money from that engagement.
The next topic was that the 25 new golf carts have been delivered and minor maintenance
still awaits from the vendor that may include some minor transportation wear and tear,
and that the sales representative for the vendor is difficult to get accountability from &
much phone tag is required, per Mr. Selchow. The board, by way of Francisco “Tachi”
Durazo is looking also at cart rental accountability and some type of use monitoring
process for the carts in order to prevent abuse of the equipment, and that some
appropriate measure/policy will need to be implemented. Golf rental fees from $12 to $14
was briefly discussed, and after inquiry of City staff. there was a motion to a hike the cart
rental fees from $12 to $14 as made by Francisco “Tachi” Durazo and seconded by
Ruben Robles, and shortly thereafter, and with no discussion, the motion was approved
unanimously. It was noted by Mr. Selchow that prices will be implemented immediately.
Ruben Robles noted there will be a need to publish/post the Golf Course fees currently in
effect. It was also reported by Mr. Selchow, Timmy’s trailer will be administratively
disposed of by the board management team.
10. Discussion/Decision regarding facility’s rental property current condition, possible lease
terms and rate.
No update is available, but it was reported by Mr. Selchow that minor cosmetic things are
outstanding, with members reporting MPC Golf needs the revenue.
11. Discussion and direction/consensus for items to be discussed at future meetings.
MPC Golf Labor Day Tournament, with the last vacancy on the Board needing a
recommendation.
3
12. Adjournment
Ruben Robles made a motion to adjourn and it was seconded by Kevin Alvarado with the
motion being approved unanimously at 6:18 p.m.
Prepared by Juan Pablo Flores, City Attorney.
4
Agenda
PUBLIC NOTICE
BOARD OF DIRECTORS MEETING
FOR THE
DOUGLAS PUBLIC FACILITY MUNICIPAL PROPERTY CORPORATION
will meet
Tuesday, July 16, 2019, 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, July 16, 2019, 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. Report on Balance Sheet and/or Bank Balance(s) update/report on current months for the
Douglas Public Facility Municipal Property Corporation.
5. Approval of Minutes for the Douglas Public Facility Municipal Property Corporation
(MPC) for board meeting held on June 25, 2019.
6. Information/Discussion, Reporting and possible Decision on standing report from staff
regarding maintenance of the golf course MPC facility, equipment and water delivery
system.
7. Discussion/Presentation/Direction and possible decision regarding the proposed
2019/2020 budget for the Douglas Public Facility Municipal Property Corporation
(MPC)
8. Information/Discussion, Reporting and possible Decision on recommending candidate to
replace Ken Nelson, as the new appointment of David Arzate and reappointment
recommendation for Manny Robles and Francisco “Tachi” Durazo to the MPC Board, have
been or about to be completed by the Mayor & Council.
9. Information/Update with a possible Discussion/Decision on current events, updates or
concerns at the golf course since the June, 2019 meeting.
10. Discussion/Decision regarding facility’s rental property current condition, possible lease
terms and rate..
11. Discussion and direction/consensus for items to be discussed at future meetings.
12. Adjournment
Posted July 15, 2019, at 3:55 p.m. by: Alma Andrade, Deputy City Clerk
2
MEETING MINUTES
Board of Directors Meeting
Douglas Public Facility Municipal Property Corporation
Tuesday, June 25, 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 5:37 p.m.
2. Roll Call
Board Members present were: Francisco “Tachi” Durazo, Manny Robles, Ruben Robles,
Ken Nelson, Bosco Selchow and Kevin Alvarado. City Official(s) present were Luis
Pedroza, Finance Director/Treasurer. Staff member present was Rhiannon Posada with
guests Gene and Lupe Trujillo.
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
Quarterly Report from City Finance Department (Luis Pedroza) regarding the current status
of the subsidy.
The current bank balance is $8205.86 as of today, with payroll coming up this Friday.
Through April 2019, with 83% of the year completed Mr. Pedroza reported that the subsidy
with 73% of revenue collected on what the MPC had budgeted. As far as expenditures we
are at 78% here, we are a little above the revenue side with the total subsidy through April
we are at $148,847.66 and should be at $141K, so we are $7.1K over on the subsidy. At
this same time last-year we were $10K over the subsidy. Mr. Selchow commented that the
financial subsidy conditions is a partial win for the MPC considering past situations. A
brief discussion about the City Budget currently earmarking $170K for the subsidy and
potential sale of the entire golf course & apartments (by a private investor) was discussed
by Mr. Nelson and Mr. Pedroza.as currently in early due diligence stages with possible
appraisals being conducted. Ken Nelson recommended that the MPC be included in the
negotiations and group closed by commenting on options and possible developments on
the potential contemplated sale.
5. Approval of Minutes for the Douglas Public Facility Municipal Property Corporation
(MPC) for board meeting held on March 19, April 16, 2019 and May 21, 2019.
1
After some brief discussion there was a motion to approve minutes for March, April and
May by Ruben Robles and seconded by Ken Nelson, and motion was approved
unanimously.
6. Information/Discussion, Reporting and possible Decision on standing report from staff
regarding maintenance of the golf course MPC facility, equipment and water delivery
system.
Golf Course watering was down for a few days last week due to a bad valve on the main
water line that caused some browning on the greens. There was another water outage on 5
the main water line, but this is being repaired without water interruption and reported low
water issues on one of the ponds. Mr. Pedroza reported that City water crew will be
allowing for as much watering as possible in order to allow the Golf Course to catch up on
watering while allowing for baseline watering according to the set schedule that has been
discussed with Mr. Selchow. Bosco did comment that the Golf MPC is a paying customer
and that the parks and other City facilities do not pay fees and MPC may be getting
haphazard service. A discussion followed about water shortage cause by the million gallon
5-day static testing at the WWTP in late spring ’19 and how that affected the watering at
the Golf Course. The mew golf cart delivery issues was briefly discussed and a report by
Bosco that all equipment is currently operational and grass that is not growing as fast as
expected. Bosco Selchow reported that about 2 weeks ago Mr. Meeks contacted Mr. Forrest
about helping him drive a truck from Montana with seeding equipment with some Bermuda
grass seed harvest stock. Mr. Selchow reported that the City tractor loan to MPC ended
after about 3 weeks of use when they asked for it back because of need and tractor has sat
in the same place for 2 months since it was returned, and Mr. Durazo reiterated (as he has
done in previous meetings) that the City Parks holds the MPC golf in disdain and is very
uncaring about the golf course success and needs. Ruben Robles asked about the condition
of the greens and application of pre-emergent and fungicide; Bosco seems to think that it
was due to the lack of water and 18 is also a bit rough and may need top dressing, and 14
has come really nicely. On the pre-emergent Mr. Bosco reports it has been applied as well
as fungicide, and missing flag topics, and that fishing problem is currently under control.
7. Information/Discussion with possible Decision regarding the status and renewal of the
Douglas Public Facility Municipal Property Corporation liability and D&O insurance for
the Golf Course facility and Board.
Mr. Pedroza reported on the insurance renewal schedules that came in from Cash, Sullivan
& Cross (broker), and they did come back with $3.828 increase that includes just over
$1,100 for insuring that van/vehicle; but an adjustment was made to label the van as
‘borrowed coverage” and the quote dropped to $125 after the adjustment. Aggregate limits
of $5 million were retained for liability on a per occurrence, with $1,000 savings if you
drop coverage by $1 million. There may be a possibility to transfer to new insurance at the
mid-year mark. The quote for the $5 million-dollar policy was reiterated by Luis Pedroza
and includes the member Directors and Officers liability (D&O) at a rate of $20,522 up
from $16,700 last year. The $3 million-dollar policy & auto/van removal we would be $800
over the cost of insurance expenditure from last year. Ken Nelson recommended the $3
million policy due to the fact MPC receives liability insurance secondary backing for the
City. Ken Nelson made the motion to go with the $3 million-dollar coverage minus the van
(that will be on borrowed coverage status).
2
The motion was seconded by Francisco “Tachi” Durazo, who also commented the $5
million-dollar policy was excessive, and the motion carried unanimously,
8. Discussion/Presentation/Direction and possible decision regarding the proposed
2018/2019 budget for the Douglas Public Facility Municipal Property Corporation
(MPC).
Mr. Pedroza noted that the item should have been noticed as 2019-2020 and the correction
was made by the Chair. Luis Pedroza gave out copies of prior budget history forms, along
with 2 prior year financials to use for comparison. Ken Nelson noted that the prior and
initial MPC budgets were difficult to ascertain figures for and dedicate funds to precise line
items. Bosco Selchow worked on gathering volunteers for the Budget Committee with
possibly Ken Nelson, Ruben Robles, Kevin Alvarado and Tachi Durazo as possible
committee members. Bosco Selchow further reported on minor items that were outstanding
after the MPC appearing at the Council meeting to present their current position and then
Bosco Selchow went on to say that Tachi Durazo had requested funds form the IDA on
behalf of the Golf Course MPC for irrigation maintenance and RV Park upgrades,
equipment and building. Mr. Durazo reported on IDA meeting about 2 weeks ago, and that
at their Call to the Public portion of the IDA meeting he stated to Board that he was there
on behalf of the MPC Golf and the Douglas Golf and Social Club and asked it would be
appropriate to request for capital assistance as noted above. Mr. Durazo reported that he
was well received and that the IDA would be willing to entertain such a request possible
for the August 2019 IDA meeting. Mr. Durazo, and that a proposal would be crafted
outlining priorities like front 9 irrigation revamp, and RV Park upgrades as well as capital
for water delivery parts for the golf course. Mr. Pedroza noted that the maintaining and
generating of employment and city-wide economic activity is currently the focus of the
IDA, and that City staff may be able to help with MPC proposal for the IDA. The Chair
noted that the golf course needs to capitalize on the closure of the Naco course and the golf
related economic activity, as well providing housing for the border wall construction crew
influx, and gave brief update on competitor RV Park proposed activity like fencing &
facilities. Further discussion was had by the group as to who would make up the Budget
Committee and the IDA Proposal working group, then members thanked Mr. Durazo for
attending the IDA meeting.
9. Information/Discussion, Reporting and possible Decision on recommending candidate to
replace Mrs. Shelton, possibly David Arzate on the new appointment and reappointment
recommendation for Ken Nelson, Manny Robles and Francisco “Tachi” Durazo to the
MPC Board.
The discussion centered around possible members and their willingness to act as members
to include the noted members, and it was represented that the Mayor had requested a
recommendation from the Board as to the reappointments and all noted expressed a
willingness to continue on as members. There was a motion to recommend all 4 noted
members for appointment and reappointed by Kevin Alvarado, seconded by Ruben Robles
and the motion was approved unanimously. Timmy’s trailer is being cleaned up carefully
and in a hygienic manner and will need to be disposed of.
3
10. Information/Update with a possible Discussion/Decision on current events, updates or
concerns at the golf course since the May, 2019 meeting.
Rhiannon reported our last Quinceanera to be held on July 6, and a family reunion on July
4th and a tournament on the 14th. Of July. Ruben Robles reported and MPC 4th of July
tournament will be held with participation on an individual basis and replacing the
Sundowner, and he also reported the Father’s Day tourney went well and was well
attended. There was an incident last Saturday with former RV Park tenant Bob stealing
water and DPD was asked to check into a potential trespass. Bisbee golfers are engaging
play through the Golf Now agreement and Rhiannon is to look into reconfiguring the
reservation availability. Bosco Selchow reported that he had never seen the contract with
Golf Now. The Bisbee people, by Dick Atkinson wants to offer golf lessons at the MPC
facility at no cost to MPC and have the profit from associated expenses stay local, and then
Ken Nelson suggested MPC check with Naco course to see if they have surplus seed and
equipment they would like to unload. Ruben Robles advised to proceed cautiously with
Mr. Atkinson, and Board did not oppose the posting of a flier on the golf lessons. The
possibility was also presented about Bisbee High using the local course for their use and
practice sessions, if the Naco course remains closed. Ruben Robles asked for tee markers
to look a bit neater and how to deal with gophers on the course and Bosco Selchow
suggested staff look into these possibilities.
11. Discussion/Decision regarding facility’s rental property lease terms and rate
The house is still not ready with various detail work such as outside painting, electrical
receptor covers and leaking tub or faucet, along with the appliances on the front porch. that
still requires attention. The rental amount needs to be determined moving forward, and Ken
Nelson asked about reaching out to City Management, but Max was designated as the
contact person by Bosco and Luis Pedroza offered to be a secondary point of contact.
12. Discussion and direction/consensus for items to be discussed at future meetings.
Budget approvals, after the budget work session to be held on July 9th at 5:30 p.m., is held
13. Adjournment
Manny Robles made a motion to adjourn and it was seconded by Ruben Robles with the
motion being approved unanimously at 6:55 p.m.
Prepared by Juan Pablo Flores, City Attorney
4
Get email alerts for Douglas
A daily email when new agendas and minutes are posted.