Municipal Property Corporation - Golf Course

MINUTES Board of Directors Meeting Douglas Public Facility Municipal Property Corporation Tuesday, November 23, 2021, 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 5:33 pm 2. Roll Call Board members present were James Selchow, Manny Robles, Kevin Alvarado, Nick Forsythe, Ruben Robles, and Francisco Durazo. Absent and excused was David Arzate. Also present were City Official(s) City Treasurer, Luis Pedroza, City Manager Ana Urquijo. 3. Persons wishing to address the committee in writing or verbally on any item not on the agenda. None. 4. Approval of Minutes for the Douglas Public Facility Municipal Property Corporation (MPC) for board meeting held on September 21, 2021. Motion by Kevin Alvarado, second by Ruben Robles to approve the meeting minutes for September 21, 2021. Motion passed unanimously. 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 (if report is available). Luis Pedroza presented financial statement on the first quarter through September 30, 2021 32% of revenues collected through the quarter exceeded the target of 25%. Expenses are also above by 35% for the quarter that is largely due to the insurance payment of $21,713 for the year. The revised subsidies is at $45,916, and budgeted subsidy for the first quarter would be $45,000. Kevin Alvarado reported the bank balance of $27,398, with 3 or 4 checks outstanding. Mr. Selchow reported an insurance inspector had visited the previous week. 6. Information/Discussion, and possible Decision on reducing the golf course from 18 holes to 9 holes. Ruben Robles commented he is not in support and stated the greens in the back is the only situation, the rest from tee to green, is playable. Manny Robles commented he is also not in support, and stated area roughed up because of the water issue, especially when seed and fertilizer was done water was not available. 1  Mr. Selchow commented he agreed there is no need to close it at this point and stated things would need to be considered before closure. Mr. Selchow was unaware how the home owners would feel about it, due to the possible effect on their property value. Mr. Selchow stated No. 18 green is playable, No. 13. will not be ready for a while. No. 16 and No. 17 are progressing. There are some that are farther along than others because they got reseeded at different times. Mr. R. Robles added seasonal ducks damage the greens by eating the grass and its poop is very acidic. Mr. Selchow commented they have been spraying with a solution that is made from grape seed oil, and it lasts about two weeks and the ducks don't like the smell. Francisco Durazo commented he also agrees, it is premature to close. Part of the problem was that the course did not have water, and this is ultimately a city issue that the city at some point in time is going to need to address. He added water is a definite issue for everybody and it is all over Arizona. Mr. R. Robles added the area has been in a severe drought in the southwest for a couple of years. Ana Urquijo asked the nature of suggestion based on the item. Mr. Selchow answered Mr. Arzate suggested they should use the resources available to work on the front nine and get into playable condition. Most of us are not in agreement with that. Also, the other issue is the lack of inmate labor for 18 months. Ms. Urquijo asked when the change to inmates was made, since there was always inmates and also city assigned staff for the greens and inmates. Mr. R. Robles asked if it is accurate to say that the back nine has been closed since January 2021. Mr. Selchow answered it was. 7. Information/Update on potential sale of the Douglas Municipal Golf Course by the City of Douglas. Mr. Pedroza reported interest still exists and interest in knowing the water situation as well. How the water can work with a private company coming in and owning the golf course. If it would entail drilling a new well and being able to produce its own water so that they are not having to pay for water. Those are ideas being entertained. He has not heard from them in a few weeks, but it is an active item for the City. Mr. Durazo asked on the possibility of a dedicated well, and instead of drilling a new well taking an existing well and deepen it. Mr. Pedroza answered they are all part of the conversation, whether it is a new well or an existing abandoned well. A study of the entire area is needed to see where the water levels are. The city would need to be involved in that water if it is going to be tied to the City system. The City has the permits already and if it is decided to drill wells, ADEQ will do their inspections and an engineer is needed to dictate the process as well. Mr. Durazo commented as one of the things that was discussed about the potential sale and in January, the city allocated some additional funds to upgrade the RV park but the 2  potential buyers were not interested. Would it be possible to go ahead and upgrade it and add value to the property. Mr. Pedroza answered the intent they expressed was not to utilize an RV park, instead utilize it for other recreational vehicles to put out there, possibly for rental. The money is still there and is going to carry over. Mr. Pedroza commented there is a clause that states it must remain an 18 hole golf course. Mr. Selchow commented that some of the upgrades planned were to make more of the pedestals 50amp, due to the existing pedestals and breakers are obsolete. 8. Information/Discussion, and possible Decision pertaining to aspects to be presented in the periodic standing report from staff regarding maintenance of the golf course MPC facility, equipment, greens/fairways and water delivery system. Mr. Selchow commented the water system on the back is not working right. Mr. Pedroza asked if Bestway indicated the pump was the issue. Mr. Selchow answered it was reported by Bestway that it was the pump. Bestway came back and finished working on the control panel and ever since the pump has been working correctly. Mr. Selchow also reported issues with some of the control panels on the fairways not having power that will require to bring someone that has knowledge. Mr. R. Robles asked about the bathrooms in the bar. Mr. Selchow answered they are being worked on. He also mentioned touching up those bare spots, putting in more seed trying to get them caught up to the rest of the greens. Mr. R. Robles commented about looking into replacing the sign markers and tee markers. A question was asked if the bathroom on Hole # 4 was working. Mr. Selchow commented that the toilets will be replaced. 9. Information/Update with a possible Discussion/Decision on current events, updates or concerns at the golf course since the September 21, 2021 meeting. Mr. Selchow reported: • Golf and Social Club had a tournament the previous Sunday. • A birthday party and wedding was held. • Upcoming tournaments fundraiser for Mario Chavez and the annual MPC toy drive. • Sundowner continues every Thursday with the Burger and wing nite also. Ms. Urquijo asked if hall rentals continues to require a catering business. Mr. Selchow answered that renters bring in cooked food and use kitchen only to serve. Mr. Selchow reported that daily play has been down and winter visitors from Colorado and Montana are back in RV park as well as the contractors working on the school project are renting. Mr. Selchow revisited the need of looking for a replacement for him and asked Mr. Pedroza if he had heard from OB Sports. 3  Mr. Pedroza did receive a powerpoint about the services they provide. Discussion was held on a seasonal plan for the course, for personnel matters and inmate crew. Ms. Urquijo asked on the irrigation system. Mr. Selchow answered that it is not functional, it is obsolete, and needs to be replaced. Mr. Urquijo asked if with the potential sale there could be a partnership with the MPC for any of that, or is it all private, or if it has been discussed. Mr. Pedroza answered it is handing it to the private sector completely. It was mentioned that language was added as part of community aspect to let the schools utilize it for free as they have been. 10. Discussion and direction/consensus for items to be discussed at future meetings. Mr. Selchow would like to add an item for OB Sports or any other management company. Mr. Durazo would like to further the conversation about resources for parks dept. 11. Adjournment. Motion by Manny Robles, second by Nick Forsythe to adjourn the meeting at 6:36 p.m. Motion was approved unanimously. Prepared by: Cynthia Acuña Robles Deputy City Clerk 4