Old Works Golf Course Authority Board Meeting Wednesday Dec. 4th, 2013 Old Works Clubhouse 5:30 p.m.
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1 Old Works Golf Course Authority Board Meeting Wednesday Dec. 4th, 2013 Old Works Clubhouse 5:30 p.m. ATTENDEES: Gene Vuckovich Mike King Tim Flynn Bill Finnegan Meg Boynton Terry Galle Ryan Stemsrud, Josh Thurner, Tanna Andrews Darrell Morgan via phone Call to order by Gene Vuckovich Motion to accept the Nov 6 th meeting minutes. Terry wanted to change the line item Lisac s Tire would like to be included in the sponsorship to state that we should solicit businesses like those for next year s sponsorship for the concert. Bill motioned to accept the Nov. meeting minutes, Meg seconded. Gene-questioned the cash numbers. Ryan- the line of credit was used for operating costs. Bill- we had $22,000 to start the season plus the $300,000? Ryan- Yes Bill- we used $108,000 from Jan to the opening of the season? Ryan- Yes, in 2013 we had the concert expenses and maintenance expense. We did not have the cash flow to pay some of the invoices when they came in, so we paid them as the cash came available. Gene- did we go to a skeleton crew at the end of the season? Ryan- Yes, our payroll had no change. Darrell- concert and fairways were the biggest expenses that were not budgeted for. Josh- we were at K with labor and product for desiccation expense. Ryan- Historically the Old Works loses 100K yearly, we lost 170K this last season. Economic study, concert, maintenance for the fairways. Bill- do we currently have 142K in the bank? Ryan- we are at K The Christmas parties and golf shop sales along with the pass sales will get us thru.
2 Bill- we don t have the line of credit to even get us thru to the opening of the season. Ryan- in the 1 st copy of the 2014 budget, we budgeted for the concert. The 2 nd copy is $20,000 less for concert and $30,000 less in maintenance. Darrell- we are looking at a 25K loss for 2014 based on the revised budget. Ryan- Ryan and Josh are on a spending freeze. The concert is not on the budget, so if there is a loss in 2014, it is not budgeted for. Bill- is there any capital expenditures for 2014? Ryan- No. The money will fund operating, not money for capital. Darrell- leases will be paid, when that happens that money will go to the capital fund assuming global settlement. Gene- I m concerned if we can stay open. Terry- we never know what will happen. We can only look at where we have been historically. Ryan- There are many things to extend the cash flow. We could open in April and close in Sept. Look at less in kind days on the golf course and cut back on the outside services. We have enough to last thru next year. Darrell- that is why we really need to get to the finish line with the settlement. Mike- we will need to set money aside when this settlement is available. Gene- if you look at May- Sept does that mean that you get rid of all the staff for 6 months? Ryan- yes part of it. Tim- we would be closed more than we are open. Josh- that would leave me and Bill and the course would not be ready. Darrell- We can look at other strategies to reduce expenses. There are other courses that are looking at no outside services. We can get ourselves back to a 25K loss. Terry- I don t like the idea of closing the doors. Seems when businesses start with that, they end up going out of business. Not good Ryan- this is 2015 stuff to discuss further. Meg- maybe we look at no outside services, even though they only make minimum wage. Bill- we are in transition now, we need support from the county and they see the golf course as a benefit. Mike- the money we receive for the golf course from the settlement needs to be stored in a reserve to guarantee us cash. When we are in a better place with our cash flow, we increase that reserve. Mike- motioned to strike the line in 2012 minutes stating Ending cash- $294,000 to $336,000 last year.
3 2012 Annual meeting minutes approved. FINANCIALS- Ryan- Looking at what we will do on the off season for revenue. Holiday clothing sale, Jack s Grille take out. Tanna delivered menus around town to the businesses. We had a great couple of day before the Thanksgiving holiday and we hope to continue with orders. Gene- People can eat here right? Ryan- Yes but we have no wait staff. We are looking to keep Jack s grille in the minds of the community and grow some revenue in the winter. Rounds of golf for average loss in the mountain region is 6% less than We are proud to say that we did more rounds than we did in Very positive that we grew when the average course lost. Gene- the weather cooperated this year more than Ryan- Oct. we did not meet budget but had more pass play Budget- Golf Revenue increase 5.4% F&B increase 4% Cut expenses. Tim- is there any other pass that you can bring more than 3 players with you and put it on your pass? Ryan- the Gold pass is all we offer for that. I did not offer carts on any pass this year. I felt that we should be consistent with that. The Copper pass will now be Copper Elite with there being no differentiation on tee times, weekdays or weekends. They can reserve tee times 3 days, 7 days a week. The sale begins Jan. 1, we also added an on line incentive. Purchase on line and receive 1 cart rental free. Mike- I think we should offer a pass to ACC members. Members of other courses within the county. Not sure of a price, but good idea. Tim- rather than tie it to a pass, offer a 20% discount on the cart fee. Josh- discount on cart so you re not losing money. Complaints come in from the ACC on carts because they have their own down there. Meg- offer to the Dillon boys. Mike- maybe ACC member discount. It s incentive for them to play here. Darrell- maybe in the spring or fall we offer that. Gene- good idea, maybe it will create interest. Ryan- We need to work on a men s and ladies club. Affordable to the local golfer. Payroll up 0.5% mainly due to concert and maintenance labor. Maintenance decrease 16K, G&A expense ok with no concert loss.
4 Gene- Can we afford a decrease in maintenance? Ryan- we do not want to. The 1 st copy of the budget had an increase in maintenance, so the 2 nd copy shows that we took some out. When we are in a better position, we get Josh some more money. Josh- my budget really does not show much of a cut, it s pretty flat. Ryan- based on additional programs, being aggressive on events, on line rate and over the phone, package deals and stay & play are going to help. Bill motioned to accept the budget as is. Terry seconded. Budget approved. SUPERFUND- Tim- I know we will be alright! We have a strong plan. The county realizes that the golf course is a big part of this community. They also realize that we need help. The reality is 19,000 rounds. We need the county and the county needs us! Mike- What is the time line? Carl- We are working on the consent decree and making good progress on that. We will be rolling out the number to Roy Thun next week. A lot of other details need to be worked out. Pressure is on for March 31 st. Bill- Initially, our allocation was going to be separate from the redevelopment fund. Carl- It will be all together in one fund. The golf course will have an earmark within the redevelopment fund. The golf course has the course and 3 trail parcels. The county takes no reimbursements on the operating and maintenance of that. They do on other parcels out there. Tim- 3 years ago this started and has gained momentum since then. Bill- at one time, we had a reserve fund for capital needs. We need to look at annuitizing the funds. Mike- At first, the idea was that each area in the county presents their needs. Roy then says, why would we give 8.6 million to the golf course when it can t sustain itself. What can we do to make this be self- sustaining? So, when everyone comes to the table and needs so much, the pie gets smaller. We need to get with the county to get what we need. Terry- didn t we do the study? Did the county do one? Carl- We have a business plan and it s very broad based. The golf course is a component of that. The study was helpful to quantify the value to the community. It effects the top line of the businesses in town. We received some blunt feedback from ARCO. How much money do we look at if you always need a subsidy? How will you use the funds? How do we work together to grow the golf course and the community, create jobs, housing, etc. We need to be well rounded to be successful. Investing in
5 housing, businesses, wellness programs. All elements are being looked at. Dave Erickson and Jessie Silverstein have done an excellent job. Daniel has joined in with them with some good ideas and looking at the golfer increase in the housing in the next 10 years. The commission has been offended by what is being said about them. We need to create a balance. We all can be better!! The number for the golf course is based on a 10 year capital need. 2 million and the $300,000 line of credit will be forgiven How it will be disbursed, is still in discussion. The funds need to be protected. Funds need to be set aside to generate money. Break down the walls and show the county what the golf course does. It does not generate the money we hoped it would. The commission will possibly put a performance expectation in the agreement. After 10 years, if the golf course is not doing okay, the county will give a subsidy. Roy asked to build the bridge. There will be terms and conditions, but with more communication it can be done. It s a good idea to get on the agenda now that your budget is approved and present that information to the commission. Also good to get with the dept. heads in July when they get together to look at their budget. Mike- Thank You to Carl for all his time and effort. Carl- Tim has put in a ton of time on this and has received a lot of compliments on his efforts and commitment. I will be excited when I can show you all the other pieces to this. We need to get more young businessmen involved. Bill- Does the county have plans for the investments? Carl- The state will invest and will be much more modest since We must protect the money. CONCERT- Open discussion- how does all feel about the 2014 concert? Bill- we were supposed to get together with Kyle and discuss all the details. We have not done that. Mike- Ryan, will you get in touch with Kyle and set up a time to meet? Ryan- Yes Tim- I think it s worth it and in time it will pay off. Terry- We have learned the do s and don ts now. Mike- We need to find a guy who pays for himself. These bands are so expensive. Terry- We need to look at the age group also. Bill- We will meet and get back to you all Board Meeting Dates: Feb.5, April 9, June 11, Aug. 6, Oct. 8, Nov.5, Dec. 10 (Annual Meeting) Motion to accept the meeting dates by Meg, seconded by Bill.
6 ELECTION OF OFFICERS- Nominations for Pres. Meg motioned to elect Mike King for President. Mike King is President. Nominations for Vice-Pres. Gene motioned to elect Terry Galle for Vice President. Terry Galle is Vice President Nominations for Secretary. Terry motioned to elect Meg to remain Secretary. Meg Boynton is Secretary. Nominations for Treasurer. Meg motioned for Bill Finnegan to remain Treasurer. Bill Finnegan is Treasurer. Old Business - Bill- Thanks to Tim for all his time and hard work on this settlement. Tim- I ve enjoyed it. Mike- Are there members that have served their term? Meg- Will check on it with Heather at the county. New Business- Gene- Mike contact the bank and change names on the account to sign documents. Josh- They finished bids on the pond and started yesterday. Heaters went out and had to be replaced. It is going to be a challenge for them to finish by April. Meeting Adjourned- 7:45p.m.
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