Golf Board of Governors

GOLF ADVISORY COMMITTEE RETREAT AGENDA Park Department Conference Room City Hall 455 N Main St Wichita, KS 67202 November 15, 2018 1:00 pm Present: Greg Ferris, Cindy Renard, Eddie Fahnestock, Debbie Burch, Richard Schodorf, Shana Appelhanz, Troy Hendricks, Michelle Haun, Troy Houtman, Mark Manning, Alan Jenkins, Dale Goter, Hoyt Hillman, George Kolb Fahnestock called the meeting to order at 1:12pm. Burch asked for the goal of today’s meeting. Fahnestock stated that it is to create a master plan for the golf division. Hendricks asked Mr. Manning to discuss how the budget works. Manning stated that the budget is set by parameters of the department and the budget department compiles the information and lays it out. The budget is presented in April and finalized in August. Hendricks asked what a budget fail is. Manning stated that it is a control mechanism set in place to keep money from being spent over what is available. A fund cannot spend more than what is budgeted, by law. Schodorf asked if the numbers on page 2 of the sustainability report reflect improvements to courses and facilities and if projections are based on course conditions. Manning stated that it is not. Departments have to bring that information to his attention. Schodorf asked if the losses in 2017 were part of the decision to issue an RFP. Houtman stated that the consideration to issue the RFP may have included three things, first, the decline of golfers over the years and second the opportunity just presented itself. Schodorf interjected that he doesn’t understand where the decision to sell it came from. Houtman stated that selling it creates an opportunity to change the model, the golf structure and to reduce overhead and operational costs. Schodorf asked if the City has asked for any citizen input. Houtman stated that as an enterprise fund, we cannot be subsidized by the general fund. Selling MacDonald was not a thought a few months ago. The opportunity came along and was considered to be beneficial to the golf system. MacDonald is not profitable enough. Schodorf asked about selling property at LW Clapp. He stated that decision should’ve been made. Houtman stated that it was the plan to close LW Clapp and keep MacDonald, but the decision was taken out of our hands. Schodorf stated that he would like the committee to create a new model for the golf division to take to the Park Board. He stated that the RFP should be put on hold. The potential sale is not in good faith for First Tee. Ferris stated that we are looking at this as if the RFP will go through. It will be up to the Park Board to determine if the proposals are good or not. Schodorf stated that we need to fix the model before we should move forward with the RFP. Ferris stated that we need to let the RFP move forward. We should make our plan based on MacDonald staying in the system. Houtman stated that the Park Board will create a committee on Monday. The committee will review the proposals until the Dec 10th meeting and present its recommendation at that meeting. Ferris stated that the Golf Advisory Committee should be involved with the selection. Hendricks stated that he had some questions for Mr. Manning. There was a memo from 2003 that was submitted to restructure the debt service. Mr. Kolb stated that the debt was paid off a long time ago. The City is making the golf system continue to repay the debt service fund. The City should forgive it. Manning stated that $5.5 million is still on the debt service fund. Hendricks stated the reason we stopped over seeding the courses was to save money. This also resulted in savings on water and equipment wear. He discussed issues with the system dating back to 1995 and what the division has done to try to keep rounds up. Ferris stated that we need to focus on revenue more than rounds. Schodorf stated that we need the system to get off of City water. Renard stated that we should have professionals in the industry come in to offer guidance. Ferris stated that a committee needs to be established that will operate the golf system. The Park Board is not qualified to run the golf courses. The committee needs to be appointed by the City Council. Goter stated he was part of the ad hoc committee and suggested to put the sale on hold, develop a better business model and have an outside management company run it. Kolb stated that an outside consultant is needed. Houtman stated that the RFP is out there because the golf system is in a bad position. Schodorf made a motion to identify the problems with the current system and restructure the current model. Renard offered a substitute motion that the GAC recommend to the Park Board to delay the decision on the RFP and get an outside consultation of the golf system from the National Golf Foundation. Schodorf second. Fahnestock stated that the motion is to recommend to the Park Board to delay the MacDonald sale and engage the National Golf Foundation to provide operational alternatives and set a timetable to conduct the evaluations. Schodorf asked for discussion. He stated that we need to provide the explanation why the system is failing. Ferris stated that the failure of the system doesn’t need to be pointed out if an outside consultant is going to be brought in. He stated that we need to have a four course system. Renard amended her motion to request a minimum of two members of the GAC to be on the review committee. Ferris stated that it should state that the Park Board should delegate the review and evaluation of the RFPs to the GAC in addition to any number of Park Board members. Fahnestock asked Houtman why there were three members of the Park Board selected to the review committee. Houtman stated it was because of the open records act. They wanted the three members to have the time and opportunity to discuss the options openly and without interruption. All of the members of the Park Board will be presented the information and will vote. The Golf Advisory Committee should come to the Park Board meeting to make their recommendation to the Park Board president to have GAC members on the selection committee. Ferris stated that the three Park Board members in addition to the GAC should review the proposals. Burch asked if the selection committee could postpone the final decision. Ferris stated that they can. Any proposal can be accepted, rejected or amended. Renard stated the amended motion is to recommend to the Park Board to assign the Golf Advisory Committee to be the selection committee along with three members of the Park Board to review the proposals from the RFP. Schodorf second. Fahnestock stated that he wants the GAC’s recommendation to be made to the three members of the Park Board. Houtman suggested that Fahnestock address his concern with the Park Board during the selection meeting. Goter suggested contacting legal regarding expanding the review committee. Fahnestock asked for a vote on the motion to have three Park Board members and the Golf Advisory Committee to be the review committee for the RFPs. Motion passed unanimously. Renard made a motion to engage the National Golf Foundation to provide operational alternatives and set a timetable to conduct the evaluation of the golf system. Ferris second. Schodorf stated that we need to provide a reason for having an outside review of the golf system. Houtman stated that we can hire a consultant and discuss any issues at the time of making the contract with them. Schodorf stated that we need to add that the reason for the evaluation is to create our master plan. Renared amended the motion to include “in order to create our master plan.” Hendricks stated that Rich Richeson from the PGA of America can come in to do the evaluation. Renard stated that a non-biased person needs to be enlisted. Motioned passed unanimously. Fahnestock made the motion to adjourn. Renard second.