Golf Course Authority

To: NGCA Members From: Barney Caulfield, Chairman NGCA Re: Minutes of NGCA monthly meeting of October 21, 2015 Members Present Bernard Caulfield J.P. Mereen Charles Whitty Richard Podurgiel Michael Driscoll Richard Strouse David DiBattista Others Present Mike Svab, Pro Manager Bruce Morse, Superintendent Sandy Kuchta, Finance Department Bob Malouf, Member’s Club Call to Order  Chairman Caulfield called the October 21, 2015 meeting of the Norwich Golf Authority to order at 7:00 p.m. Minutes  A motion to approve the minutes of the September 16, 2015 meeting of the Norwich Golf Course Authority was made by Mr. Mereen, seconded by Mr. Podurgiel, and approved unanimously. Financial Report  The September 2015 Financial Report was presented by Ms. Sandra Kuchta. Revenues for the month of September 2015 were $93,127.14 compared to budgeted revenues of $98,177.00, $5,049.86 under budgeted revenues and $14,255.73 under September 2014 revenues. Year to date revenues for September 2015 were $1,002,114.33 compared to budgeted revenues of $1,004,916.00, $2,801.67 under budgeted revenues and $13,305.77 under year to date September 2014.  Expenses for the month of September 2015 were $107,730.58 compared to budgeted expense of $84,868.88, $22,861.70 over budgeted expenses and $10,746.41 over September 2014 expenses. Year to date expenses for September 2015 were $867,651.31 compared to budgeted expense of $851,064.50, $16,586.81 over budgeted expenses and $63,312.26 under year to date September 2014 expenses. Expenses exceeded revenues in the month by $14,603.44. Revenue exceeds expenses year to date by $134,463.02, which is $19,388.48 under budget. Cash balance at month end September 2015 was $184,006.33. Caddy Shack lease payments have been made to the end of October 2015. A motion to receive the financial report was made by Mr. DiBattista, seconded by Mr. Driscoll, and approved unanimously. Correspondence Chairman Caulfield advised that he had received four letters as follows: 1) A letter from Joe Juber with schedules setting out Mr. Juber’s analysis relating season play rates to the number of players utilizing that option and becoming members of the member’s club; 2) A letter from ALTA Environmental Corporation to the Authority summarizing discussions it has had with Mr. Mereen regarding water surveys previously performed by it at the Norwich Golf Course property and a proposal for a scope of work to perform additional services relative to the same. Mr. Mereen requested that discussion be conducted under New Business; 3) A letter from Mr. Jason Bromley on behalf of Three J’s LLC d/b/a Caddy Shack II advising that the outstanding balance on Caddy Shack cards is approximately $13,500; and 4) A letter from Jason Bromley on behalf of Three J’s LLC d/b/a Caddy Shack II advising that it wishes to exercise its option to extend its lease for an additional one year period to begin on January 1, 2016. COMMITTEE REPORTS  Chairman’s Report Chairman Caulfield discussed the LED lighting project to be coordinated with NPU. He noted that a great deal of time and effort had been spent on the project and thanked Mike Svab particularly for his efforts. Considering costs and other reasons it is his recommendation that we reduce the project as initially proposed  and utilize the program only with respect to the clubhouse parking area, a project estimated to cost $25,000. Working with Bill Hathaway the Authority has received three bids for such a reduced project with the lowest bid, $24,848.91 submitted by DEF Services Group LLC of Griswold. This would include new installations including poles with no retro fitting. Chairman Caulfield will work with Norwich Public Utilities to be certain that this bid meets the requirements of its proposal, such is to include an initial rebate of roughly 20%, and financing through the Dime Bank with interest paid by Norwich Public Utilities. This leaves the Authority obligated to pay only the principal amount of the financed amount over a 5-year period anticipating the electrical cost savings will be sufficient to cover these payments. Mr. Strouse made a motion to authorize the Chairman to proceed as described above and to approve the entry into a contract at $24,848.91 with DES Services Group, LLC subject to receiving a rebate from Norwich Public Utilities and financing an effective 0% rate of interest from the Dime Bank. This motion was seconded by Mr. Podurgiel and approved unanimously.  Clubhouse Committee No report presented.  Greens Committee No report presented.  Planning Committee No report presented.  Marketing Committee No report presented.  Beautification Committee No report presented.  Budget Committee Mr. Whitty reported that the budget committee has held one meeting with Mr. Svab, Mr. Morse and Ms. Kuchta and reviewed the reports they presented. It will hold further meetings and will attempt to present a proposed budget to the Authority in November.   Superintendent’s Report Mr. Morse described course conditions and noted that the dry weather persists and he is still having to water greens and some other portions of the course. The bulk of the heavy watering is completed but he anticipates at least a few thousand dollars more in water bills. Mr. Morse also reported that the annual high school cross country meet will take place at the golf course on Thursday, October 22, 2015.  Pro Manager’s Report Mr. Svab estimated that the course must take in about $38,000 in revenues through the end of 2015 in order to meet the projected budget revenue of $1,100,000. He believes we are on course to do so. Mr. Svab reported on a proposal received from the GolfNow Program. Currently the GolfNow Program is provided two tee times per day and has been filling them at about an 83% rate. The course received revenues of $24,000 from 503 rounds in 2014 and $33,000 in revenue from 640 rounds to date in 2015. Under the GolfNow guidelines the Norwich Golf Course is one of the top ten clubs in this region’s program area and GolfNow has offered to include the course in its Premier Marketing Program. The course would provide one additional tee time with the arrangement essentially converted to a revenue sharing arrangement, the course receiving 25% of the revenue generated for the three tee times via the GolfNow Program. Mr. Svab noted that the Authority would select the tee times and we have been successful in filling what otherwise would be dead time. The average rates charged have remained strong and the bulk of the rounds are arranged through online apps minimizing the work by course employees in booking the rounds. It was his recommendation we enter into the program as he thinks it will be quite helpful to promote the golf course and increase revenue. A motion to renew the arrangement with the GolfNow Program under the terms described by Mr. Svab was made by Mr. Strouse, seconded by Mr. DiBattista and approved unanimously. Mr. Svab reported that the event organized in support of St. Bernard School to be held October 25, 2016 has sold out. 120 players have signed to play and there is a waiting list. He is quite pleased with the turn out.  Member’s Club Mr. Malouf indicated that the member’s club would like to place a 7 x 7 plastic shed in the area of the Gopher Hole food concession to store grills used by the member’s club. The Uncas Health District does not approve of the present arrangements. The member’s club would pay for the shed and, with the assistance of the maintenance department, locate it at an appropriate place.  A motion to approve this request was made by Mr. Podurgiel, seconded by Mr. Mereen and approved unanimously. Mr. Malouf indicated the member’s club, on behalf of a number of members, is requesting the course install intermediate tees to be located between the red tees and the white tees. There was general discussion as to how we could affect the request without necessarily installing new sets of tees. Messrs. Strouse and Svab described on hybrid tee arrangements at other courses, 18-hole rounds played using an agreed mix of blue tees and white tees or white tees and red tees. Mr. Svab indicated that the Connecticut Golf Association would rate such course arrangements once they had been established and rounds played properly, credited for handicap purposes.. Mr. Malouf indicated the member’s club request the Authority not increase season play rates. Mr. Malouf reported that Mr. Justice requested the Authority review the proposal he presented last year as part of its budget process.  New Business Mr. Mereen led discussion of the ALTA Environmental proposal. Its proposed estimated fee is between $4,000-6,000 but it agrees not to exceed the figure of $6,000 without obtaining prior approval from the Authority. Its work is to include a review of existing materials, identification of water-dependent resources, a reconnaissance site visit to determine the condition of test wells on the property, and the interpretation and summarization of information and data obtained including recommendations regarding next possible steps. The work is estimated to take 6-8 weeks. Mr. Mereen indicated it is his opinion this work is necessary as a preliminary to any further studies with respect to possibility of utilizing non-publically supplied water resources at the golf course. Mr. Podurgiel noted the 2015 budget had not included any appropriation for such work and wondered whether it could be included in the 2016 budget. Mr. DiBattista made a motion, seconded by Mr. Mereen, to approve an expenditure up to $6,000 for the proposed work by ALTA Environmental Corporation, said appropriation to be made part of the 2016 budget. This was approved unanimously. Adjournment A motion to adjourn the meeting was made at 8:08 p.m. by Mr. DiBattista, seconded by Mr. Podurgiel, and approved unanimously.