Municipal Property Corporation - Golf Course

PUBLIC NOTICE BOARD OF DIRECTORS MEETING FOR THE DOUGLAS PUBLIC FACILITY MUNICIPAL PROPERTY CORPORATION will meet Tuesday, May 19, 2020, 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, May 19, 2020, 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 the Douglas Public Facility Municipal Property Corporation (MPC) for board meeting held on November 19, 2019 and possibly for the January 21, 2020 (if these become available). No meetings were held in December 2019, February 2020 or April 2020. 5. Report on Balance Sheet and/or Bank Balance(s) update/report on current months for the Douglas Public Facility Municipal Property Corporation, as well as discussion/presentation on the MPC Golf subsidy. 6. Information/Discussion, Reporting and possible Decision or Direction pertaining to aspects presented in the periodic standing report from staff regarding maintenance of the golf course MPC facility, equipment and water delivery system. 7. Information/Discussion and possible Decision or Direction regarding MPC Administrative Action Plan to improve the course and overall condition of the facilities. 8. Information/Update with a possible Discussion/Decision on current events, updates or concerns at the golf course since the March, 2020 meeting. 9. Discussion and direction/consensus for items to be discussed at future meetings. 10. Adjournment Posted May 18, 2020, at 4:00 p.m. by: Alma Andrade, Acting City Clerk 2  MEETING MINUTES Board of Directors Meeting Douglas Public Facility Municipal Property Corporation Tuesday, November 19, 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 Mr. Selchow at 5:30 pm 2. Roll Call Board Members present were: Bosco Selchow, Ruben and Manny Robles, Francisco “Tachi” Durazo, Kevin Alvarado and David Arzate. City Official(s) present was Juan Pablo Flores, Douglas City Attorney, along with Rhiannon Posada being present from the Golf staff. 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, as well as discussion on preliminary audit issues for the MPC Golf. The current bank balance is $13,500 with an anticipated $5K payroll expense representing a quarterly tax bill that is due that will reduce the mentioned balance, along with some new computer expenses at $800 for upgrades. The MPC Golf Chair reported entity does not have any new or current reports from Larry Moss for the 3rd quarter, and Luis Pedroza relayed a message to the Board that he still does not have September numbers from Mr. Moss to do his report. Mr. Arzate generally expressed disapproval to this component from & Bosco Selchow gave an explanation but not an excuse. As to the audit issue it was reported by Mr. Selchow that daily receipts needed to be reported done and that this would be corrected. 5. Information/Discussion, Reporting and possible Decision or Direction pertaining to aspects presented in the periodic standing report from staff regarding maintenance of the golf course MPC facility, equipment and water delivery system. Seeding and maintenance issues presented w/ one of the 2 back nine pump motors going out, and the service provided. The back-up (secondary) pump was then used and it broke down, as did the back-up pump and after some swapping of parts the team got it working 1  again. Board talked about the possible problems with the water pumping equipment, age of same and the need for long-term repairs, control panel issues and ideas for fixing same. 6. Information/Discussion and possible Decision or Direction regarding MPC Administrative Action Plan to improve the course and overall condition of the facilities. The tee tops were planted with most of the fairways receiving seed, and member noted that a meeting needed to be had, as all meetings were informal. Tachi Durazo noted that the action plan is still awaited from Mr. Forrest, and how these actions done need to be prioritized. Weed control and condition of the greens needs to be prioritized per Mr. Durazo, and green repairs for 6 & 9 was given also as a priority item by Bosco Selchow with ideas for these repairs that included harvesting the putting green, or a sod farm. David Arzate mentions we need a list of priorities and accountability for these tasks, as greens are getting worse. Group talked in general about smaller general problems at the golf course. Two new computers came in today and still have no wi-fi available for the facility until a new independent service can be contracted hopefully within the next week or so. 7. Discussion/Decision regarding facility’s rental property current condition, possible lease terms and rate. It looks like there is interest in the rental, some new appliances will be needed and Board discussed possible rental/lease prices. Some figures were discussed at around $550, additional duties/responsibilities for tenant with possible utility being separate, legal forms would be provided by the City legal department. There was a motion made by Kevin Alvarado to set rent at $550 for a 6-month lease to include utilities (electric, water & trash service) and a $550 deposit. The motion was seconded by Ruben Robles and the item was approved unanimously. 8. Information/Discussion and possible Decision or Direction regarding fees of RV Park and report from City staff on status of talks with City regarding possible access to private RV Park through golf course property. The Board discussed lowering the RV Park rate from $350 to $270, both plus taxes. Bosco Selchow is interested in better competing (from a price perspective) with the private RV Parking, who is the major competitor and as they have garnered the wall project contractors as tenants. Access to the private RV Park was briefly discussed with the possibility of Mr. Foreman providing access to the private concern (later in meeting the Foreman suspicion was confirmed to be inaccurate), and that according to the City it cannot provide access as it is not a road and not up to development standards. There was a motion by David Arzate to lower price to $270 per month and seconded by Kevin Alvarado, and the item was approved unanimously with a request to update the facility’s website with the new rates. 9. Information/Update with a possible Discussion/Decision on current events, updates or concerns at the golf course since the October, 2019 meeting. FFA group from the HS held their banquet and the bar did well, with tournament coming up this Sunday, and the MPC tournament held 11/10 was apparently well attended. Upcoming events were discussed by Ruben Robles with the toys for tots December event that is always very successful, along with other events for that month were noted, along with January events already planned being presented. New employee was discussed. 2 10. Discussion and direction/consensus for items to be discussed at future meetings. Board wants to keep the agenda items herein numbered as 4,5,6 (David Arzate would like to see an actual list as part of the plan), then also keep items 7, 8 and 9 for the next meeting. 11. Adjournment A motion was made by Manny Robles and seconded by Ruben Robles to adjourn the meeting at 6:34 pm, and the motion was approved unanimously. Prepared by Juan Pablo Flores, Douglas City Attorney. 3 Public Facility Municipal Property Corporation DIFFERNCE BUDGET EXPENSES @ 03/31/20 BUDGET 75% 2019/2020 MPC CITY COMBINED VS ACTUAL % YTD Annualized @ 03/31 Budget INCOME GREEN FEES $ 40,000 21,401 $ 21,401.22 (8,598.78) TOURNAMENT FEES $ 3,000 4,813 $ 4,812.50 2,562.50 QUARTER PASS - INDIVIDUAL $ - 7,067 $ 7,066.99 7,066.99 PUNCH PASS $ - 4,408 $ 4,407.60 4,407.60 LOCKER RENTALS $ 150 125 $ 125.00 12.50 PUBLIC CART RENTALS $ 4,700 3,712 $ 3,711.91 186.91 PRIVATE CART STORAGE $ 4,000 3,093 $ 3,093.41 93.41 RANGE BALL RENTALS $ 3,100 1,526 $ 1,525.54 (799.46) PRO SHOP SALES $ 1,000 539 $ 538.52 (211.48) PRO SHOP FOOD & DRINK $ - 50 $ 49.50 49.50 RV PARK SPACE RENTALS $ 30,000 35,080 $ 35,080.00 12,580.00 COUNTRY CLUB EVENTS $ 15,000 3,144 $ 3,144.00 (8,106.00) BEVERAGE SALES $ 80,000 75,237 $ 75,236.74 15,236.74 FOOD SALES $ 100 570 $ 569.94 494.94 CITY OF DOUGLAS CASH $ - $ - 0.00 MISCELLANEOUS $ - 341 $ 341.00 341.00 SPACE RENTAL $ - 2,200.00 $ 2,200.00 EFFECTIVE INCOME $ 181,050 163,303.87 - $ 163,303.87 27,516.37 90% OTHER INCOME OTHER INCOME CITY SUBSIDY $ 170,000 148,408.70 $ 148,408.70 20,908.70 TOTAL OTHER INCOME $ 170,000 - 148,408.70 $ 148,408.70 20,908.70 EFFECTIVE GROSS INCOME $ 351,050 163,303.87 148,408.70 $ 311,712.57 48,425.07 OPERATING EXPENSES PAYROLL EXPENSES GOLF PERSONNEL $ 140,000 92,449.38 $ 92,449.38 12,550.62 BENEFITS $ 8,000 7,940.11 $ 7,940.11 (1,940.11) CONTRACTED LABOR 729.96 $ 729.96 (729.96) TOTAL PAYROLL EXPENSES $ 148,000 101,119.45 - $ 101,119.45 9,880.55 GENERAL & ADMIN EXPENSES LICENSES $ 10 - $ - 7.50 ADVERTISING $ 600 412.00 $ 412.00 38.00 DOC LABOR $ 5,500 2,060.00 $ 2,060.00 2,065.00 DUES/SUBSCRIP/BUS LICENSE FEES $ 300 85.00 $ 85.00 140.00 TRAINING/ EDUCATION $ - 345.39 152.00 $ 497.39 (497.39) BOOKKEEPING FEES $ 1,800 1,350.00 $ 1,350.00 0.00 OFFICE EQUIPMENT REPAIR $ 500 $ - 375.00 OFFICE SUPPLIES $ 200 $ - 150.00 POSTAGE/COPIES/FAX EXPENSES $ 50 22.00 $ 22.00 15.50 PROFESSIONAL SERVICES/SECURITY $ 750 615.00 3,700.00 $ 4,315.00 (3,752.50) TELEPHONE/INTERNET $ 50 55.63 4.41 $ 60.04 (22.54) CREDIT CARD/BANK FEES $ 4,300 4,277.87 $ 4,277.87 (1,052.87) CITY OF DOUGLAS LOAN $ - 1,500.00 $ 1,500.00 (1,500.00) TOTAL GEN & ADMIN EXPENSES $ 14,060 7,162.89 7,416.41 $ 14,579.30 (4,034.30)  MAINTENANCE EXPENSES FIRE EXT INSPECTION $ 500 $ - 375.00 CHEMICAL TOILET SERVICE $ 882 588.00 $ 588.00 73.50 AUTO/EQUIPMENT $ 300 1,082.22 $ 1,082.22 (857.22) ELECTRIC MAINT/REPAIRS $ 500 $ - 375.00 GROUNDS MAINT & SUPPLIES $ 22,400 25,577.07 $ 25,577.07 (8,777.07) BUILDING MAINTENANCE $ 2,000 2,878.20 13,302.50 $ 16,180.70 (14,680.70) PEST CONTROL $ 1,000 685.00 $ 685.00 65.00 LINEN SERVICE $ 3,000 1,858.60 $ 1,858.60 391.40 GAS/OIL/LUBE $ 13,500 183.08 9,566.07 $ 9,749.15 375.85 CHEMICALS $ 1,500 $ - 1,125.00 CITY OF DOUGLAS LOAN $ 3,600 $ - 2,700.00 MISCELLANOUS $ - 1,812.06 242.87 $ 2,054.93 (2,054.93) TOTAL MAINTENANCE EXPENSE $ 49,182 32,309.01 25,466.66 $ 57,775.67 (20,889.17) INVENTORY PRO SHOP ITEMS $ 1,000 1,357.29 $ 1,357.29 (607.29) FOOD $ 1,500 899.27 $ 899.27 225.73 BEVERAGES $ 32,000 31,841.87 $ 31,841.87 (7,841.87) 0.00 TOTAL RESTAURANT& BAR EXPENSE $ 34,500 2,256.56 31,841.87 $ 34,098.43 (8,223.43) 0.00 WORKERS COMP $ 2,100 1,101.00 $ 1,101.00 474.00 HAZARD INSURANCE $ 12,000 17,501.56 $ 17,501.56 (8,501.56) INSURANCE CLAIMS/DEDUCTIBLE $ - $ - 0.00 TOTAL INSURANCE $ 14,100 - 18,602.56 $ 18,602.56 (8,027.56) UTILITIES DIRECT TV $ 2,400 1,629.34 $ 1,629.34 170.66 ELECTRIC CC $ 13,500 8,557.65 $ 8,557.65 1,567.35 ELECTRIC GOLF $ 25,000 14,471.43 $ 14,471.43 4,278.57 WATER/SEWER/TRASH $ 20,000 13,557.49 $ 13,557.49 1,442.51 NATURAL GAS $ 3,000 1,817.66 $ 1,817.66 432.34 RV UTILITIES $ 20,500 8,404.88 $ 8,404.88 6,970.12 CELL PHONE $ - - $ - 0.00 TOTAL UTILITIES $ 84,400 - 48,438.45 $ 48,438.45 14,861.55 TOTAL OPERATING EXPENSES $ 344,242.00 142,847.91 131,765.95 $ 274,613.86 (16,432.36) DEBT SERVICE LEASE PURCHASE - CARTS $ 19,690 16,642.75 $ 16,642.75 (1,875.25) TOTAL DEBT SERVICE $ 19,690 - 16,642.75 $ 16,642.75 (1,875.25) GRAND TOTAL EXPENSES $ 363,932 142,847.91 148,408.70 $ 291,256.61 (18,307.61) 80% NET CASH $ (12,882) 20,455.96 - 20,455.96 BUDGETED SUBSIDY $ 170,000.00 TOTAL SUBSIDY AS OF 03/31/20 148,408.70 LESS ANNUALIZED COSTS (4,621.06) REVISED SUBSIDY AT 03/31/20 143,787.64 BUDGETED SUBSIDY AT 03/31/20 $ 127,500.00 DIFF - SUBSIDY ACTUAL VS BUDGETED $ (16,287.64) Through March 31, 2020 we are over the budgeted subsidy by $16,287.64