Golf Course Authority

To: NGCA Members From: Barney Caulfield, Chairman NGCA Re: Draft Minutes ofNGCA monthly meeting of November 22,2011 Members Present Barney Caulfield Charles Whitty Richard Podurgiel Michael Driscoll Richard Strouse John Paul Mereen David DiBattista Others Present Bruce Morse, Superintendent Josh Pothier, Deputy Comptroller James Homiski, Member's Club Adam Benson, Norwich Bulletin The November regular meeting of the Norwich Golf Course Authority was called to order by Chairman Caulfield at 7:05 p.m. A motion to approve the minutes of the regular meeting of October 26, 2011 and a special meeting of November 15,2011 was made by Mr. DiBattista, seconded by Mr. Podurgiel and approved unanimously. Treasurer's Report Mr. Pothier presented the Treasurer's Report through the end of October 2011. October revenues were $61,926, with total revenues through October 31,2011, $1,123,500. Expenses during the same period were $948,127. November revenues through November 22, 2011 were approximately $30,000. Based on these figures and past experience, Mr. Pothier predicted the Authority should end up within $10,000 of its budgeted 2011 revenues. The figure will be weather dependant as there is unlikely to be much revenue should the course be closed due to snow or the greens closed due to the ground being frozen. With the expected savings in budgeted expenses, the Authority should show a small profit, revenues over expenses, at the end of calendar year 2011. The Authority's cash balance at the end of October 2011 is $330,000. The expenses of the course will exceed revenues through mid March 2011 reducing this balance. There was discussion as to how much the cash balance would be reduced as of the end of February 2012, appears to be the usual low point for the cash balances. At the end of February 2011 the Authority had approximately $63,500 on hand and expects to have at least that amount on hand at the end of February 2012 absent unforeseen expenses. Mr. Pothier recommended against reducing the cash balance to subsidize rates as he believes the cash balance provides a necessary protection against unexpected events and expenses at the golf course. Mr. Whitty noted that the golf course does not have the ability to impose an assessment when faced with higher than expected expenses as a private course would. A motion to accept the financial report was made by Mr. Whitty, seconded by Mr. Podurgiel and approved unanimously. Budget Committee .:. First Report The budget for 2012 had been discussed at the special meeting on November 15, 2011 with discussion addressing possible adjustments in the categories of proposed revenues and proposed expenses. The Budget Committee presented a proposed 2012 budget anticipating revenues of$I,157,771 and proposing expenses of$I,157,771 broken down as: Maintenance $758,125 Pro Shop $177,450 General Expenses $221,196 Club House Improvement Expenses $1,000 Total $1,157,771 A copy of this budget is attached to the minutes. A motion to approve the proposed budget for revenues and expenses, both in the amount of $1,157,771 was made by Mr. Mereen, seconded by Mr. DiBattista and approved unanimously. Correspondence A letter was received from Bob McPhail, NFA golf coach, requesting that the NFA golf team be allowed to use the course in the Spring of 2012 for practice and home matches. A motion to approve the request was made by Mr. DiBattista, seconded by Mr. Whitty and approved unanimously. Caddy Shack A motion to defer discussion concerning the lease of the restaurant facilities for the year 2012 to the end of the meeting was made by Mr. Mereen, seconded by Mr. DiBattista and approved unanimously. Clubhouse Committee Chairman Caulfied reported that the clubhouse remained in reasonably good shape although aging. There was brief discussion about the age of the roof and additional brief discussion concerning cleaning and maintenance projects to be performed during the winter. Greens Committee Mr. Strouse reported that work would be done at the comer on the southerly side of the 3rd fairway to deal with some drainage problems occurring there. He anticipated the work would start after the ground was frozen. Planning Committee 'r No report presented. Budget Committee .:. Second Report The Budget Committee presented proposals for adjusting the membership fees, daily play fees and cart rates in 2012 to support budgeted expenditures. In 2011 the course received a revenue boost through memberships and daily play by the members of a course undergoing renovation. This revenue is not expected in 2012. A schedule of rates representing a 5% increase in most categories, rounded up or down to round numbers, was presented. The cart rates include Connecticut sales taxes at the rate of 6.35%. Certain rates, including the daily specials, remain the same but will be subject to review for adjustment during 2012. A motion to accept the proposed schedule of membership fees, daily play fees and cart rates was made by Mr. DiBattista, seconded by Mr. Strouse and approved unanimously. A copy of the proposed rate schedule is attached to the minutes. Superintendent's Report Mr. Morse passed out a report concerning verbal quotes he had received for drainage work on the 3rd hole. The high bid was $6,500-$7,000, the next low bid $4500 and the low bid $3700 by On Course Construction. Mr. Morse has had experience with this firm and approves of the quality of its work. He believes it will be able to complete the project in a 1 Yz days and is ready to start soon. A motion to contract with On Course Construction to perform the drainage work on the 3rd hole for $3,700, this sum to be taken from the course supply account, was made by Mr. Podurgiel, seconded by Mr. Mereen and approved unanimously. Mr. Morse reported that he had rented a compressor for $200 and used it to blowout the watering system saving the cost of hiring a private contractor to do that, estimated to be more than $1,000. Mr. Morse further reported that the clean-up and maintenance with respect to leaves were about 99% done. A good deal of tree work remains to be done by his crew, most a result of Hurricane Irene. Having On Course Construction do the work on the 3 rd hole rather than the maintenance crew will free the maintenance crew up to do this tree work earlier in the season, hopefully to be done before snow makes this more difficult. Mr. Morse expects to keep the greens open until the ground is frozen or until we have snow. Based on experience he usually closes the greens between December 5 and December 12. Pro Manager )r No report presented. Member's Club The Member's Club presented its proposed 2012 calendar of events covering the period March 11, 2012 to November 3, 2012. This will be acted upon at the next Authority meeting. Search Committee Mr. Caulfied made a short report on the efforts of the search committee indicating the committee has narrowed the field of applicants to four. Mr. Caulfield suggested that these candidates be interviewed soon and requested that the remaining members of the Authority take part in the interviews. A motion to add the members of the Authority not already on the Search Committee, Messrs. Whitty, Driscoll, Podurgiel and DiBattista, to the Search Committee was made by Mr. Whitty, seconded by Mr. Driscoll and approved unanimously. At 7:55 p.m. a motion was made by Mr. Podurgiel to go into executive session to discuss the lease of the restaurant facilities of the golf course during 2012 since publicity regarding the same would likely cause financial cost to the Authority if made public before all of the terms of the transaction have been completed. Mr. DiBattista seconded this motion as well as an amendment to the same made by Mr. Driscoll to continue in executive session to discuss the employment and performance of the golf professional noting that Mr. Paesani did not require the discussion to take place in public. The amended motion to go into executive session was approved unanimously. The Authority remained in executive session through 9: 10 p.m. at which time a motion to return to regular session was made by Mr. DiBattista, seconded by Mr. Mereen and approved unanimously, Chairman Caulfield noting that no votes were taken during the executive session. A motion to adjourn was made at 9: 11 p.m. by Mr. Whitty, seconded by Mr. DiBattista, and approved unanimously. NORWICH GOLF COURSE AUTHORITY PROPOSED CALENDAR YEAR 2012 BUDGET REVENUES Proposed Org Obj Description Adopted 2011 2012 30000 70223 Investment Income 1,000 1,100 30000 70243 Miscellaneous Income 3,000 3,500 30000 70245 Gift Card Discounts (1,100) (1,200) 30000 71014 WE Green Fees B-5 Res. 68,000 48,000 30000 71015 WE Green Fees A-5 Res. 30,000 20,000 30000 71016 WD Green Fees B-5 Res. 55,000 45,000 30000 71017 WD Green Fees A-5 Res. 55,000 45,000 30000 71018 League Green Fees 7,500 8,100 30000 71021 Cart Rentals-Weekend 70,000 70,000 30000 71022 Cart Rentals-Weekday 80,000 78,000 30000 71023 Member Dues 318,170 335,000 30000 71024 Locker Rental 0 0 30000 71025 Income Club HS. Rest/Snack Bar 54,000 45,000 30000 71026 WE Green Fees B-5 Non-Res. 30,000 38,000 30000 71027 WE Green Fees A-5 Non-Res. 3,000 4,000 30000 71028 WD Green Fees B-5 Non-Res. 13,000 16,000 30000 71029 WD Green Fees A-5 Non-Res. 5,000 4,500 30000 71030 Outing Fees 40,000 42,000 30000 71031 Usage Fees 3,000 8,500 30000 71032 Green Fee Special-Resident 170,000 145,000 30000 71033 Green Fee Special-Non-resident 150,000 190,771 30000 71034 Gift Certificate Redemptions (1,500) (2,000) 30000 71035 Tee Sponsorship 0 0 30000 76G35 Senior Golf Carts 10,000 9,000 30000 76G36 Staff Carts 1,500 4,500 TOTAL REVENUES 1,164,570 1,157,771 NORWICH GOLF COURSE AUTHORITY PROPOSED CALENDAR YEAR 2012 BUDGET EXPENSES Proposed Org Obj Description Adopted 2011 2012 NGCA MAINTENANCE 30100 80011 SUPERINTENDENT CONTRACT 90,640 90,640 30100 80012 MAINTENANCE WAGES 205,885 205,885 30100 80013 SEASONAL/ TEMPORARY 30,272 30,000 30100 80014 OVERTIME 13,843 13,000 30100 80021 COURSE SUPPLIES 136,000 136,000 30100 80023 GAS & OIL 30,000 31,000 30100 80033 TELEPHONE 3,000 2,200 30100 80035 UTILITIES 77,000 73,000 30100 80036 COURSE IMPROVEMENTS - - 30100 80040 REPAIRS & MAINTENANCE 33,000 33,000 30100 80044 NEW EQUIPMENT 31,405 25,000 30100 80050 CONTINGENCY 5,000 - 30100 80057 DUES, LICENSES, SUBSCRIPTIONS 4,000 4,000 30100 89999 FRINGES 120,000 114,400 NGCA MAINTENANCE TOTALS 780,045 758,125 NGCA PRO SHOP 30200 80011 PROFESSIONAL CONTRACT 62,624 - 30200 80012 ASST-PROFESSIONAL WAGES 36,050 36,050 30200 80013 PRO-SHOP EMPLOYEES 58,710 50,000 30200 80014 RANGERS - - 30200 80021 MATERIALS & SUPPLIES 10,000 8,200 30200 80033 TELEPHONE 4,400 3,100 30200 80049 GOLF CART LEASE & USAGE 43,700 46,000 30200 80050 CONTINGENCY 8,000 - 30200 80055 WEB SITE MAINTENANCE 600 600 30200 80057 DUES, LICENSES, SUBSCRIPTIONS 300 800 30200 80060 CREDIT CARD FEES 17,000 15,000 30200 89999 FRINGES 18,000 17,700 NGCA PRO SHOP TOTALS 259,384 177,450 NGCA GENERAL 30300 80011 CUSTODIAL-WAGE & FRINGE 11,021 11,021 30300 80021 MATERIALS & SUPPLIES 6,000 3,000 30300 80033 TELEPHONE - - 30300 80035 UTILITIES 37,500 43,200 30300 80038 ADVERTISING 10,000 10,000 30300 80040 REPAIRS & MAINTENANCE 13,000 13,000 30300 80042 INSURANCE 34,000 35,600 30300 80044 NEW EQUIPMENT - - 30300 80050 CONTINGENCY - 63,000 30300 80054 FINANCIAL SERVICE TO CITY 9,000 9,000 30300 80056 DEBT SERVICE 32,725 31,975 30300 80057 DUES, LICENSES, SUBSCRIPTIONS 500 500 30300 89999 FRINGE BENEFITS 800 900 OPERATING RESERVE - - NGCA GENERAL TOTALS 154,546 221,196 30400 80002 CLUBHOUSE REPAIR-IMPROVEMENTS 2,000 1,000 GRAND TOTALS 1,195,975 1,157,771 City of Norwich Golf Course Authority General 2012 Rate increase methodology: Calculation of 2012 Proposed Rates Daily Fees - 5% increase, rounded Memberships - 5% increase, rounded Rate kept the same as 2011. 5.00% ADOPTED NGCA 2011 PROPOSED NGCA 2012 Rates charged to Rates charged to customers, including Net Revenue to Net Revenue to customers, including Net Revenue to taxes NGCA @ 6% rate NGCA @ 6.35% rate taxes NGCA @ 6.35% rate Daily Fees WD CWD CART 18 HOLES 1 BAG 16.00 15.09 15.04 17.00 15.98 WD CART 18 HOLES 4 BAG 40.00 37.74 37.61 42.00 39.49 WD CART 9 HOLES 1 BAG 12.00 11.32 11.28 13.00 12.22 WD CART 9 HOLES 4 BAG 19.99 18.86 18.80 21.00 19.75 WE CART 18 HOLES 1 BAG 18.00 16.98 16.93 19.00 17.87 WE CART 18 HOLES 4 BAG 40.00 37.74 37.61 42.00 39.49 WE CART 9 HOLES 1 BAG 12.00 11.32 11.28 13.00 12.22 WE CART 9 HOLES 4 BAG 19.99 18.86 18.80 21.00 19.75 STAFF CART 10.00 9.43 9.40 11.00 10.34 SENIOR CART 10.00 9.43 9.40 11.00 10.34 OUTING FEES 50.00 50.00 50.00 53.00 53.00 SPEC RES 40.00 40.00 40.00 40.00 40.00 SPEC NRS 45.00 45.00 45.00 45.00 45.00 WEGF RES 36.00 36.00 36.00 38.00 38.00 WEGF NONRES 42.00 42.00 42.00 44.00 44.00 WEGF A/5 RES 19.00 19.00 19.00 20.00 20.00 WEGF A/5 NONRES 21.00 21.00 21.00 22.00 22.00 WDGF RES 32.00 32.00 32.00 34.00 34.00 WDGF NONRES 37.00 37.00 37.00 39.00 39.00 WDGF A/5 RES 19.00 19.00 19.00 20.00 20.00 WDGF A/5 NONRES 21.00 21.00 21.00 22.00 22.00 LEAGUE FEES 21.00 21.00 21.00 21.00 21.00 City of Norwich Golf Course Authority General 2012 Rate increase methodology: Calculation of 2012 Proposed Rates Daily Fees - 5% increase, rounded Memberships - 5% increase, rounded Rate kept the same as 2011. 5.00% ADOPTED NGCA 2011 PROPOSED NGCA 2012 Rates charged to Rates charged to customers, including Net Revenue to Net Revenue to customers, including Net Revenue to taxes NGCA @ 6% rate NGCA @ 6.35% rate taxes NGCA @ 6.35% rate Memberships - Early Payment Discount Rate (Paid in-full by 3/30 or 4 equal installments by 3/1, 4/1, 5/1, and 6/1) ADULT RESIDENT 1,500.00 1,500.00 1,500.00 1,575.00 1,575.00 ADULT NON-RESIDENT 1,725.00 1,725.00 1,725.00 1,800.00 1,800.00 TWO-PERSON FAMILY RESIDENT 2,475.00 2,475.00 2,475.00 2,600.00 2,600.00 TWO-PERSON FAMILY NON-RESIDENT 2,845.00 2,845.00 2,845.00 2,990.00 2,990.00 FAMILY RESIDENT 2,600.00 2,600.00 2,600.00 2,730.00 2,730.00 FAMILY NON-RESIDENT 2,990.00 2,990.00 2,990.00 3,140.00 3,140.00 SENIOR RESIDENT 1,110.00 1,110.00 1,110.00 1,165.00 1,165.00 SENIOR NON-RESIDENT 1,275.00 1,275.00 1,275.00 1,340.00 1,340.00 ADULT ECONOMY RESIDENT 1,175.00 1,175.00 1,175.00 1,230.00 1,230.00 ADULT ECONOMY NON-RESIDENT 1,350.00 1,350.00 1,350.00 1,420.00 1,420.00 STUDENT 700.00 700.00 700.00 700.00 700.00 JUNIOR 350.00 350.00 350.00 350.00 350.00 Memberships - No early payment discount ADULT RESIDENT 1,550.00 1,550.00 1,550.00 1,625.00 1,625.00 ADULT NON-RESIDENT 1,785.00 1,785.00 1,785.00 1,875.00 1,875.00 TWO-PERSON FAMILY RESIDENT 2,550.00 2,550.00 2,550.00 2,675.00 2,675.00 TWO-PERSON FAMILY NON-RESIDENT 2,935.00 2,935.00 2,935.00 3,080.00 3,080.00 FAMILY RESIDENT 2,680.00 2,680.00 2,680.00 2,810.00 2,810.00 FAMILY NON-RESIDENT 3,080.00 3,080.00 3,080.00 3,230.00 3,230.00 SENIOR RESIDENT 1,145.00 1,145.00 1,145.00 1,200.00 1,200.00 SENIOR NON-RESIDENT 1,315.00 1,315.00 1,315.00 1,380.00 1,380.00 ADULT ECONOMY RESIDENT 1,210.00 1,210.00 1,210.00 1,270.00 1,270.00 ADULT ECONOMY NON-RESIDENT 1,390.00 1,390.00 1,390.00 1,460.00 1,460.00 STUDENT 700.00 700.00 700.00 700.00 700.00 JUNIOR 350.00 350.00 350.00 350.00 350.00