pages: GolfCommission/2008-06-18.pdf, 3
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GolfCommission | 2008-06-18 | 3 | anything ready to present. He said that he will have some detailed estimates available no later than Wednesday, June 25, 2008, and will provide them to the Golf Commission at that time. Chair Sullwold passed out spreadsheets and summaries that showed the economic impact of a variety of different ways that rate increases could be implemented at the Golf Complex to increase revenues. She made the following presentation in support of these proposals: This is the start of a new two-year budget cycle for the City of Alameda. Interim General Manager Dale Lillard presented a proposed budget to City Council for the Golf Complex for the next two fiscal years that projects a substantial deficit between revenues that remain after City take-aways and expenses. The expected deficit will exceed $700,000 per year, because the City Council refused to rescind the ROI and Surcharge, as was recommended in the budget proposal. Although the Golf Complex does in fact make enough revenue to cover its expenses; it does not make enough to pay them after first paying the City of Alameda as follows: 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08* Surcharge 265,869 240,130 230,084 203,683 156,825 156,925 151,527 127,350 PILOT/ROI 188,696 202,842 187,719 185,576 401,138 407,156 323,922 269,487 Cost Alloc. 365,834 381,092 384,395 410,886 400,915 412,942 446,216 530,523 TOTALS 820,399 824,064 802,198 800,145 958,878 976,923 921,665 927,360 *Through May 31, 2008; expenses for June 2008 still need to be added. National Golf Foundation recommended at the end of last year that the City enter into a long-term lease with an outside golf vendor to operate the Golf Complex, stating that this was the only viable alternative to deal with the dire financial situation. A lease would be attractive to an outside golf management company because employees who currently work at the Golf Complex would be replaced with non-union, non-civil service employees at greatly reduced salaries. Alameda City Manager Debbie Kurita endorsed NGF's suggestion, recommending in December 2007 that City Council go forward with a Request for Proposals to any interested contractors. Although that process was delayed by City Council's decision to engage National Golf Foundation to create a master plan for the Golf Complex, which will be ready on July 1, 2008, it is expected that City Council will very soon thereafter authorize the start of the RFP process. It has been estimated that it could take as long as one year from the date of Council's authorization to reach a binding contract with an outside vendor. In the meantime, if Mr. Lillard's projections are accurate, the City will continue to draw an estimated $700,000 out of the Golf Complex revenue, leaving a deficit between Chuck Corica Golf Complex Page 3 6/18/08 Golf Commission Minutes | GolfCommission/2008-06-18.pdf |