Golf Board of Governors

Golf Committee Meeting September 11, 2018 at 4pm City Hall, 11th floor Park Department Conference Room 455 N. Main Wichita, KS 67202 Present: Eddie Fahnestock, President, Chair, Greg Ferris, At-Large, Thomas West, District II, Cindy Renard, District III, Cory Rainwater, District IV, Richard Schodorf, District V, Shana Appelhanz, Cody Lack, Ron Mosher, AJ Jenkins, Dale Goter, Troy Houtman Absent: Dr. Michael Williams, District I, Debbie Burch, District VI Renard called the meeting to order at 4:10pm. Public Agenda Regular Agenda Items August Rounds Report / Create Golf System Vision Rendard introduced Dale Goter and AJ from the newly formed golf advocacy group. Hendricks stated that rounds and revenue are both down 6%. We have done a good job reducing expenditures. However, net income is not accurate since we are still not making internal service payments. Schodorf asked if we had information showing rounds and revenue since May, without LW Clapp included. He asked what our system would look like as a three course or four course system. Hendricks stated that just in reviewing profit and loss statements through the end of August, Auburn Hills’ net profit is about $155k. That is about $70-80k higher than last year at this time. But we have not been paying any debt service or internal services this year. Schodorf stated that the current system is not sustainable. He would like to see what the revenue and expenditures actually are. As an advisory board, he feels that would be necessary. Houtman stated that the committee can review as much information as they would like. Schodorf stated that he would like to ask for financial information to review and then have a retreat for the committee, where they can formulate a recommendation for the Park Board. He feels the committee is not taken seriously and still questions the excess $4 million that it cost to build Auburn Hills. He stated that a business plan needs to be established and the appropriate business model needs to be utilized. Ferris stated that this has no bearing on the topics today. We need to address the issues at hand with MacDonald and Clapp. Whether or not we are an enterprise fund does not affect the conditions of the courses. He asked if we have decided to move forward with a monthly pass. Renard stated that we need to know how many courses we will have first. AJ asked how the debt service affects us making improvements on the courses. Hendricks stated that when they take out debt service payments we don’t have any money in the bank at the end of the year. AJ asked if it would’ve given us the ability to bond the funds to convert courses to zoysia. Houtman stated that we wouldn’t have enough money to bond the funds and that would put us further behind. He stated that council has to make the decision to eliminate the debt service. Since we aren’t making payments currently, it wouldn’t put us in a better position. Schodorf suggested looking at a partial sales tax increase or bond issue. AJ asked if the courses could break even as a five course system. Hendricks stated that we could possibly break even with four courses. He stated that we would need at least 30,000 more rounds to make five courses work. Houtman stated that we need a huge investment to move the system forward. Goter stated that there are several models for golf operations available that may be more feasible than what we have. We should review other communities operating in the black and see what they are doing. The communications team needs to do a better job advertising golf. Houtman stated that whether it is a public staff that is running it or a private company, there needs to be an investment made and we need to see where that is coming from. We would welcome the opportunity to review some of the other models out there. Ferris stated that there are courses that operate in the black because the city they are in subsidize them. He asked if we could add a line to the rounds report to show what is still owed. Schodorf made a motion to have a retreat to review a new model of sustainability for the golf system in October or November. Ferris asked Schodorf to amend the motion to invite the newly formed advocacy group to be a part of the retreat. He stated he will second the amended motion. Goter recommended a facilitator. Schodorf suggested the park board be present and amended the motion. West asked if we go through this process and make the recommendations to the park board, what happens then. The park board doesn’t seem interested in what the committee has to say. Schodorf stated that he feels the same way. He stated he has tried to reach out to them and didn’t receive any responses. Ferris stated that if we keep an enterprise fund then the golf advisory committee should be appointed/represented by the city council. Fahnestock stated that he will make sure that he communicates to the park board everything that the committee is expressing. Goter stated that the advocacy group is going to go straight to council and the mayor on behalf of the committee. Fahnestock stated that the motion and second are on the table to schedule a retreat in October or November. Motion passed unanimously. Ferris recommended that we use the Oct 16th meeting to collect information from staff. Hendricks stated that he has a questionnaire that was used by the city of Stockton to help create their master plan. Schodorf asked about the new monthly pass structure. Hendricks stated that we were waiting for Clapp to close. So it is up in the air at the moment. He stated that we still need to approve previous minutes. West seconded the approval. Fahnestock – adjourned. Next Meeting October 16, 2018