body,date,page,text,path
GolfCommission,2007-09-19,1,"ALAMEDA GOLF COMMISSION
MINUTES OF REGULAR MEETING
Wednesday, September 19, 2007
1.
CALL TO ORDER
Chair Bob Wood called the regular meeting to order at 6:30 p.m. at Harrison
Center, Lincoln Park, 1425 High Street.
1-A.
Roll Call
Roll call was taken and members present were: Commissioner Bill Delaney,
Commissioner Betsy Gammell, Vice Chair Ray Gaul, Commissioner Bill Schmitz,
Secretary Jane Sullwold and Chair Bob Wood. Absent: Commissioner Sandré
Swanson. Also present were Interim General Manager Dale Lillard, Golf
Services Manager Matt Plumlee and Golf Superintendent Doug Poole.
1-B
Approval of Minutes - Regular Meeting of August 15, 2007.
Commissioner Gammell asked why the three items requested to be on the
agenda at the last meeting were not included. The Interim General Manager
stated that the meeting was going to focus on the Operational Review, which
does reference the Mif Albright Course and the Clubhouse Project.
Commissioner Gammell asked that the third item requested, the Saturday
Morning Free Junior Clinics be discussed if time allows.
The Commission made the following corrections to the minutes:
Item 1-B-page 1-line 2: ""absence"" should be ""absent"".
Item 3-page 1-line 3: ""be"" needs to be added between would and at.
Item 3-page 1-line 5: ""change"" should be ""chance"".
Item 4-A-page 3-line 1: ""2007"" should be ""2007/2008"".
Item 4-A-page 3-line 8: ""to"" needs to be removed between made and by.
Item 4-B-page 3-line 3: ""will"" needs to be added between Commission and
review.
Item 5-A-page 3-line 2: ""to help"" needs to be changed to ""who helped"".
Item 5-B-page 4-line 3: ""he has"" needs to be added between Recently and
replaced.
Item 5-B-page 4-line 7: ""part"" should be ""path"".
Secretary Sullwold suggested that the minutes be sent to her for review prior to
being sent out to avoid the time spent on small corrections at the meeting.
The Commission approved the minutes unanimously with the aforementioned
corrections.
1-C
Adoption of Agenda
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,2,"The following changes were made to the agenda:
6-H-Golf Complex Restaurant Report, Jim's on the Course will be moved to Item
4-B for this meeting. The Saturday Morning Free Junior Clinics item will be
added to the agenda provided time allows.
The Commission adopted the agenda unanimously with the aforementioned
changes.
2.
ORAL COMMUNICATIONS
3.
COMMISSION COMMUNICATIONS
Chair Wood read the following communication to the Golf Commission regarding
his meeting on September 12, 2007 with the Chief Financial Officer, Juelle Ann
Boyer:
At the August 15, 2007 Golf Commission Regular Meeting, Commission
members directed me, as Chairman, to contact the City Chief Financial Officer,
Juelle Ann Boyer, to find out why the Commission has not yet received, Monthly
Report financial data of the Alameda Golf Complex operations for the months of
June and July, 2007. Such data, representing the preceding month's golf
operations, had been consistently presented for decades, so that Commissioners
and the public could review, discuss and possibly recommend subsequent action
to the staff and/or City Council. But the Monthly Report had always been
prepared by the senior management of the Golf Complex, based on cash register
receipts and expenditures under their control. Typically, the golf staff Monthly
Report for June did not ultimately coincide with subsequent Finance Department
reconciliation that take place annually during the months of July and August,
before the fiscal year-end books are closed by the Finance Department. The
resulting mismatch of financial reporting annually caused confusion on the part of
the Golf Commission and the public. I met briefly with Juelle Ann at the City
Finance Department on 12 September 2007. The Finance Department now
appreciates that the Commission, since the May 2007 Report, had not even
received (1) attendance figures in each of the fee categories, (2) numbers of
monthly and annual tickets sold in each category, (3) a breakdown of daily &
pass ticket players, (4) numbers of surcharge rounds in each category, and (5)
numbers of rain days. Because June and July are always two of the most active
months of the Golf Complex operations, it is important for the Commission to be
aware of the record of activity during those months and be able to compare it to
the previous year's data. Juelle Ann will work with the Interim General Manager
of the Golf Complex to assure that the quantitative data, as outlined above, will
be provided in future June Reports. But my understanding is that, also in the
future, the actual dollar-amounts attributable to both revenues and expenditures
for the month of June will not be provided to the Commission and public until the
September Regular Meeting of the Golf Commission. July Reports, including
quantitative and revenue/expenditure dollar-amount information will be provided
on a timely basis. Commissioner Gammell reported that she received a written
request from a member of the Alameda Women's Golf Club regarding the use of
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,3,"a privately owned golf cart at the Golf Complex. The item was brought to the
previous General Manager over a year ago and since then the customer has had
the golf cart licensed through the DMV and has had it insured. The Interim
General Manager has spoken to the Risk Manager regarding the issue and they
are looking into the proposition. The item will be brought up at next month's Golf
Commission Meeting. The request was made to have copies of the request
distributed to the Golf Commissioner's prior to the October meeting.
4.
AGENDA ITEMS:
4-A
Election for Golf Commission Board Positions. (Action Item)
The Nominations for Golf Commission Board positions for 2007/2008 were as follows:
Chair: Jane Sullwold
Nominated by Vice Chair Gaul and seconded by Commissioner Gammell.
Vice Chair: Ray Gaul
Nominated by Commissioner Gammell and seconded by Secretary Sullwold.
Secretary: Bill Delaney
Nominated by Secretary Sullwold and seconded by Vice Chair Gaul.
The motion was made by Commissioner Gammell and seconded by Vice Chair Gaul to
accept the nominees as stated. The Golf Commission elected the nominees
unanimously.
4-B
Golf Complex Restaurant Report, Jim's on the Course.
Chair Wood introduced Dimitrios Dimopoulos, the new General Manager at Jim's
on the Course and encouraged him to attend the monthly Golf Commission
Meetings to give a Restaurant Report.
4-C
Presentation and Acceptance of Golf Complex Operational Review with National Golf
Foundation (NGF). (Action Item)
The Interim General Manager stated that earlier this year the City Council
directed the Golf Complex to go through an operational review. During that
process, a Request for Proposals (RFP) was developed and The National Golf
Foundation (NGF) was awarded the contract. Chair Wood introduced Ed
Getherall and Richard Singer of NGF. NGF began its work in May 2007 and
completed its report in early September. Representatives from NGF were
present to give an overview of how the report was compiled and how they based
their recommendations. Mr. Singer, Director of Consulting Services, expressed
his appreciation to the City of Alameda for bringing NGF in to help with the golf
system. Mr. Singer introduced Ed Getherall, Senior Project Manager for the
Chuck Corica Golf Complex project. Mr. Singer also mentioned a third member
of the consulting team, Forrest Richardson, a Golf Course Architect, who was
unable to attend although contributed to the study.
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,4,"Mr. Singer gave an overview of NGF, stating that is a not-for-profit research
association dedicated to helping golf businesses succeed. They have performed
many consulting projects similar to the one at the Chuck Corica Golf Complex.
Mr. Getherall and Mr. Richardson spent a considerable amount of time at the
Complex and Mr. Getherall also visited a number of the competing courses in the
area to compare and trends, to better understand the overall golf market in the
region and match it up with the national golf market. Mr. Singer stated that the
golf business is a tough one to be in currently, and what the City of Alameda is
experiencing is not unique. He added that there are many municipal golf facilities
faced with the same problems, and it is NGF's goal to help the City of Alameda
find ways to preserve its golf asset for the long-term future. The report is not
based on a quick fix and short-term solution but rather the long term.
In general, it seems that the golf operation has a lot of little problems that add up
very quickly to a major issue. Many of the problems concern the physical quality
of the golf facility. The Complex is in need of upgrades and the problem is who is
going to pay for them. The amount needed for improvements is approximately
ten million dollars, and either the City of Alameda will need to pay for them out of
the General Fund or privatize the operation and remove the responsibility for
improvements from the City. There are things that can be done to the facility to
make it more aesthetically pleasing, but there are also items such as drainage
improvements that would enhance the capacity to have more rounds played.
The report also recommends that the City have a Master Plan of the facility
prepared for the long term. NGF does not believe that it is realistic to expect that
the Chuck Corica Golf Complex will earn sufficient revenue to cover all of its
operational expenditures and capital improvements while at the same time
making substantial payments to the City of Alameda's General Fund. In the best
case scenario the Complex would be able to cover all operating expenses and be
able to put money aside for future improvements.
Mr. Singer stated that the study looked at three scenarios that might be
considered for the future long-term operations of the golf facility and turned the
floor over to Mr. Getherall to elaborate on them. Mr. Getherall stated that the
RFP was issued due to the fact that the rounds of golf played at the Chuck
Corica Golf Complex had steadily declined over the past 10 years by
approximately 100,000 since 1997 and with that sort of decline in rounds your
revenue will also decrease. Over the same period of time, the expenses have
increased, especially the cost of public labor. Mr. Getherall stated that some of
the payments from the Golf Complex to the General Fund are quite common for
municipal golf courses, but it is unrealistic for the City to receive the surcharge
and return on investment payments during a time when revenues are low. Also
pointed out was the fact that the golf market is down both regionally and
nationally, and rounds have been affected by the large number of newer private
daily fee golf facilities in the area who have the ability to discount their fees when
necessary.
The first scenario studied by NGF is for the Complex to carry on ""As Is."" NGF
predicts that the operating reserve would be used up within five years and the
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,5,"General Fund will be subsidizing the Golf Complex if nothing changes. The
second scenario is continued self-operation with implementation of NGF's
operational recommendations such as dealing with the pace of play problem,
marketing business plan, customer service issues and a stand-alone banquet
facility. Under this scenario, the bottom line will improve although the City will
have to continue depleting the operating reserve, and major facility
improvements will be deferred. The third scenario is to bring in an outside
private management company, in which case the burden of risk is transferred
from the City. Mr. Getherall stated that ending the transfers from the Golf
Complex to the General Fund would help, although it is ultimately a short-term fix
and the need for physical improvements is more than those funds could provide.
Mr. Getherall said that the golf market is not going back to what it was and it is
unrealistic to expect rounds to ever return to the high levels reach in the early
1990s; this is the market that golf facilities have to operate in. For a long- term
solution, NFG's suggestion is to shift the burden of risk to private management.
Many cities in the Bay Area are experiencing the same problems with revenue
loss and depleting golf funds. Mr. Getherall pointed out that there are factors in
the golf market that cannot be controlled, such as the number of courses in the
area, the economy, and the overall state of the golf industry. Ultimately the key
question for the City of Alameda is whether it is prepared to fund some of the
improvements.
Chair Wood stated that the Operational Review Report is available on line at the
City of Alameda web site and there is a copy at the Alameda Main Library. The
discussion was opened to the floor and the comment was made that the City of
Alameda has always been known for its wonderful junior Golf Program and it
would be wrong to raise the junior fees as the report suggested. Another
comment was that the over-abundance of full-time management in the Pro Shop
is a large part of the problem. In reference to the NGF recommendation to close
the Mif Albright Course, several audience members commented that (1) it is the
perfect place for parents to take their children to learn the game of golf, although
(2) the course was ruined when the practice area took two of the holes away and
reconfigured the layout, and (3) that the Mif Albright Course is ideal for older
golfers who can no longer play on the big courses. The question was asked if
the Mif Albright Course was renovated would it have potential to become a
moneymaker. Mr. Getherall stated that if the course was used as a learning
course to cultivate new players it could possibly be more successful in the long
term.
Secretary Sullwold stated that she believes there is a fourth scenario not
analyzed by NGF, where the Mif Albright Course is closed and the land leased
out, the City of Alameda cuts back the paybacks to the General Fund
substantially, and other recommendations in the report regarding staffing,
operational improvements, a stand-alone banquet facility, and improvements to
the Driving Range were implemented. She asked if these were done what would
the potential revenue stream be over the next five years. Mr. Singer stated that
the unknown is what amount could be generated by a lease of the Mif Albright
property. If it is a substantial amount then the answer is probably yes, you might
be able to make it work. The comment was made that a rumor is going around
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,6,"town that the developer Ron Cowan was interested in moving the Harbor Bay
Club
to the Mif Albright Course site. The Superintendent stated that the Mif
Albright Course is now basically a practice facility the way it is set up now.
Customer just use the practice area for free and do not pay to play the par 3
course. The suggestion was made to turn the Mif Albright Course into an 18-
hole putting course with only greens. Chair Wood asked if NGF has seen this
sort of operation succeed in other areas. Mr. Singer said that the cost to
renovate it into a putting course would be just as expensive as it would be to redo
the entire course. He said that the best way to attract customers to a par 3
course is to have special events on it or turn it into a lighted facility.
Secretary Sullwold asked if currently there are management companies
interested in taking over and leasing golf operations that need a large amount of
money in improvements. Mr. Singer stated that I it would depend on what sort of
deal was put on the table. Commissioner Schmitz asked for a ballpark payment
figure the City of Alameda could expect to receive from a lessee. Mr. Singer said
that there is generally a guaranteed minimum lease payment and then
approximately 8-10% of gross revenue. He did mention that the more constraints
that are placed on a lessee, the less the return is. The City of Alameda could
expect to earn approximately $500,000 per year. Also mentioned was that in the
current golf market it is becoming more common for contracts to have a
renegotiation clause. Secretary Sullwold stated that she believes that the way a
lessee makes the deal work is by releasing all of the full time civil servant
employees and replace them with a part time nonunion work force, significantly
lowering labor costs. Commissioner Schmitz asked what sort of commitment and
follow through has NGF seen on the part of the lessee to actually do the
improvements promised. Mr. Singer stated that it is important to have a
reputable vendor to start with, also a contract with specific measurable goals and
strong oversight to ensure that the improvements are being done. The question
was raised about leasing out separate pieces of the operation. Mr. Singer stated
that leasing out separate parts of the operation is done although not as attractive
to a vendor and with the maintenance side of the operation there is no revenue
source so the City of Alameda would be paying the contractor.
Chair Wood stated that he did not think that the Operational Review mentioned
the affect of the geese problem at the Complex. He stated that it is a huge
problem and is costing the Golf Complex customers. The suggestion was made
to look into having the goose control dogs returned. The program was
discontinued due to the annual expense of $18,000.
Commissioner Delaney stated that he feel NGF did an outstanding job on the
Operational Review Report and hit on all of the crucial points. He said that the
Complex needs a Master Plan for the long term and additional marketing efforts.
He suggested that the Golf Commission accept the report and also form a task
force to develop a consensus to bring back to the Golf Commission and from that
build a Master Plan. The Golf Commission complimented NGF on the
thoroughness of the report. The motion was made by Commissioner Delaney to
accept the Operational Review and seconded by Vice Chair Gaul. The
Commission approved the motion unanimously.
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,7,"5.
ORAL REPORTS
5-A
Golf Shop and Driving Range activities report by Golf Services Manager Matt Plumlee.
The Golf Services Manager reported that the Golf Complex made $68.00 for the Patriot
Day promotion.
5-B
Golf Complex Maintenance activities report by Superintendent Doug Poole.
The Superintendent reported that the crew would be aerating the Jack Clark Golf
Course on Monday, September 24, 2007.
5-C Beautification Program by Mrs. Norma Arnerich.
Nothing to Report.
6.
COMMISSIONERS' REPORTS
6-A
Marketing and Promotions, Commissioner Gammell.
Nothing to Report.
6-B
Golf Complex Financial Report, Vice Chair Gaul.
Vice Chair Gaul reported that the Golf Commission had just received the month0-
end July 2007 and August 2007 financial reports at the meeting and the Golf
Commission is not prepared to discuss them. The request was made to include
the prior year's amounts to use as a comparison. The request was made to
receive a report showing the number of ""Complimentary Rounds"" and golf cart
rentals for the month. Commissioner Schmitz expressed his disappointment with
the new reports being received from the City of Alameda finance Department and
stated that the Golf Commission is now receiving less information than ever
before. Another complaint was made concerning the end of the year reports,
which have not yet been received.
6-C
New Clubhouse Project, Commissioner Schmitz.
Chair Wood voiced his disappointment with the delay in receiving the cost
estimates for the scheme he prepared using the existing clubhouse building. He
also stated that the Operational Review said that the building was 6,300 square
feet when actually it is 10,300 square feet when the restaurant building is
included.
6-D
Maintenance, Buildings, Security, Albright Course and Driving Range, Secretary
Sullwold.
Nothing to Report.
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,8,"6-E
City Council and Government Liaison, Commissioner Swanson.
No Report.
6-F
Front Entrance Beautification Project, Chair Wood.
Nothing to Report.
6-G
Golf Complex 80th Anniversary, Commissioner Delaney
Commissioner Delaney reported that a proclamation was written for the 80th
Anniversary and will be presented at the City Council Meeting on October 2,
2007. The Golf Services Manager sent out a email blast promoting October 19,
2007, as the date to celebrate the 80th Anniversary of the Chuck Corica Golf
Complex, and offering special golf rates of $80 per foursome including carts after
12:00 pm on Friday, October 19, and Friday, October 26. The request was made
to the Golf Services Manager to have all of the email addresses in the Ladies
Club Roster Book entered in to the database for the website so that they can
receive the email information.
6-H
Golf Complex Restaurant Report, Jim's on the Course.
Previously given.
7.
ORAL COMMUNICATIONS, NON-AGENDA (Public Comment)
Mrs. Arnerich reported that Alameda High School has started a Girls Golf Team.
8.
OLD BUSINESS
Commissioner Gammell asked how the Complex can reinstate the Saturday
Morning Junior Golf Clinics. The Golf Services Manager said that he would
discuss it with the Independent Contractors and see what the interest level is and
how to make it work.
9.
WRITTEN COMMUNICATIONS
Included in the Commission packet was a memorandum to the Finance
Department showing $15,145 as the surcharge payment for August 2007. The
year-to-date total to the General Fund is $31,530 for the fiscal year 2007/2008.
10.
ITEMS FOR AGENDA OF NEXT MEETING
Report on Saturday Morning Junior Golf Clinics
Mif Albright Golf Course
Clubhouse Project Cost Estimates
11. ANNOUNCEMENTS/ADJOURNMENT
Chuck Corica Golf Complex
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GolfCommission,2007-09-19,9,"The Golf Commission will hold a Work Session on October 10, 2007 at 6:30 pm
in the Ladies Lounge at the Golf Complex.
The Interim General Manager presented outgoing Chair Wood with his parking
lot sign in commemoration of the completion of his second four-year term on the
Golf Commission. Commissioner Delaney thanked Chair Wood for his service to
the Golf Commission. Chair Wood said it has been an honor, privilege and an
education to serve on the Golf Commission for the past eight years. He also
stated it has been a pleasure to work with all of the members of the Golf
Commission and get to know them personally, as volunteers, as dedicated
Alamedans, and as fellow fanatic golfers. He also thanked the Golf Complex
staff.
The Meeting was adjourned at 9:27 PM.
The agenda for the meeting was posted 72 hours in advance in accordance with the Brown
Act.
Chuck Corica Golf Complex
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