Informational Meeting

MINUTES Informational Meeting Monday, January 31, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Janet Brekke, Alex Jensen, Rick Kiley (Via telecom), Greg Neitzert, Curt Soehl, Pat Starr Council Members Absent: Christine M. Erickson, Marshall Selberg Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Councilor Remarks Soehl spoke about a current documentary regarding the U.S. Olympic Curling Team. 3. Presentations A. Sioux Falls Golf Annual Report and Management Agreement Extension by Don Kearney, Director of Parks and Recreation Presentation: Approximately 30 minutes followed by discussion Justin Arlt, Landscapes Golf Management, provided the annual report. Over the past year, season passes sold have increased by 25% resulting in a $125k increase in revenues. He noted that the company continues to take steps to attract younger players, which includes offering them various types of passes. The number of rounds played this past year increased by over 8% while playable days increased by 11 to 219. Slightly over half of the rounds played were by members with the public and other sources (leagues, high schools, college, etc...) making up the remainder. Overall, gross revenue rose from $3,208,984 in 2021 to $4,013,811 in 2022. Arlt identified three contributing factors to the increase: attempts at broadening membership; events; and ancillary spending by players. The company invested over $72k on capital improvements to the City’s courses. They completed three bunker reconstructions and two cart-path reconstructions at Prairie Green; installed a new patio canopy and doors at Kuehn Park; and updated telephone service at Elmwood. Some notable events this past year included: the City Championship, Mayor's Cup, Glow Ball, Night on the Fast 5, a Couples Championship, and Ultimate 2-person. Three events were added in 2021 resulting in over 700 more event players than 2020.  The City courses are home to several youth programs which include First Tee, Get Golf Ready classes, and the PGA Junior League. In 2021, the Golf Academy gave over 800 individual lessons to juniors; and the Junior Tour's four Mini Majors averaged 127 kids. Arlt also highlighted course amenities, which include full-service food menus; and a strong emphasis on agronomy and the courses. The positive results of the company's efforts are evident in their positive survey results and feedback from players. All three courses ranked above the National Net Promoter Score, which measures how likely players are to return and promote the facility to others. 2022 will see the addition of new women's events, a Par 3 Championship at Kuehn Park; more capital improvements; and at least 1,000 season passes sold. Discussion followed about the prioritization of capital improvements and Brandon's recent efforts to contract out management of their golf course. Kearney spoke about the proposed contract extension. He reviewed the major achievements made by Landscapes Golf Management since they assumed management of the facilities in 2018. Overall, rounds, playable days, season passes, and food and beverage revenues, have all increased. He discussed the 29 capital improvement projects completed since 2018 and explained how fleet investments have improved operations. Earnings are also significantly up. In terms of ancillary spending (i.e. spending in the pro shop, on the range, and for food and beverage), all have increased from 39% to 42% since 2018. The current agreement expires on December 31, 2022, and the forthcoming contract extension will not include any changes. He explained that the contract will come before the Council in February so that the extension provides certainty to staff on future employment, management, and the City for planning purposes. Discussion followed about: Emerald Ash Borer Mitigation efforts; how close the facilities are to maximum utilization; compensation; and reserves, if any, held by the company. 4. Public Comment There was none. 5. Adjournment Council Chair Curt Soehl adjourned the meeting at 4:41 p.m. Thomas M. Greco, City Clerk