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HomeMy Public PortalAboutGolf Commission -- 2023-12-12 MinutesTOWN OF BREWSTER Brewster, Massachusetts 02631 (508) 896-3701 GOLF COMMISSION Minutes of December 12th, 2023 aRms'a"p- Commissioners Present: Andrea Johnson (Chair), John Kissida (Vice -Chair), Anne O'Connell, Rob David, Jim Juras, Jay Paggi, and David Valcourt. Others Present: Jay Packett (Director of Operations), Colin Walsh (Superintendent), Peter Lombardi (Town Manager), Donna Kalinick (Asst. Town Manager), Mimi Bernardo (Finance Director), Dave Whitney (Selectboard Liaison), Bill Meehan (Finance Liaison) and Terry Ivester (Women's 18 -Hole Assoc.) THIS MEETING WAS VIDEO RECORDED. The meeting may be viewed at: https:J/reflect-brewster- ma.cablecast.tv/CablecastPublicSite(show17803?site=1 Andrea Johnson read the meeting participation statement and called the meeting to order at 4:00 p.m. Declaration of a Quorum — All Commissioners present which constitutes a quorum. Public Comment: None. FY 25-29 Financial Forecast Presentation (Peter Lombardi, Donna Kalinick, Mimi Bernardo, and Jay Packett) - The meeting began with Peter Lombardi expressing gratitude for the opportunity to present the second annual five-year financial forecast for the golf department. Peter highlighted the importance of the forecast in understanding the financial implications of decisions over the medium and long term. He acknowledged that the Town had achieved the goal of winning the Distinguished Budget Presentation Award for the fiscal 24 Town operating budget presented by The Government Finance Officers Association. Mimi Bernardo presented a recap of fiscal year 24, discussing the golf department's operating budget, expenses, and revenues. She emphasized the strategic approach to rate increases and membership fees based on forecasts. Peter addressed rate recommendations for fiscal years 25 to 29, noting the importance of maintaining annual increases of at least 5%. They also discussed proposed increases in golf cart rates. Donna Kalinick delved into the expense side, detailing a 4.6% average increase in overall expenses. Key drivers included a 55% increase in electricity costs and a 20% rise in golf cart lease payments. Personnel and indirect cost increases were aligned with an assumed 5% annual growth. Mimi presented debt details for the golf irrigation and maintenance building projects, with projected payments starting in fiscal years 27 and 25, respectively. Peter Lombardi highlighted the need for realistic assumptions and acknowledged the conservative timeline for project completion. Donna Kalinick discussed retained earnings, noting the impact of the FY 24 capital plan on the balance. The 10 -year capital improvement plan was updated, assuming $1.3 million in annual capital expenses. They emphasized the need to monitor the golf course's financial performance, considering the town's free cash and financial reserves policy. The presentation concluded with a five-year outlook, focusing on fiscal years 25 to 29, outlining debt payments, capital projects, and potential challenges. The team expressed gratitude and opened the floor for questions and discussions. The discussion revolved around various financial aspects and projections for a golf course. Anne O'Connell raised questions about the revenue status compared to the previous year, prompting Mimi Bernardo to commit to providing that information later. Mimi acknowledged the variable nature of expenses and revenues, considering factors such as weather. Jay Packett and Peter Lombardi shared the current revenue status, indicating an increase compared to the previous year. Anne O'Connell acknowledged the positive trend but emphasized the need to stay vigilant. Rob David raised questions about expense increases and rate recommendations for future fiscal years. Peter Lombardi explained the 8% proposed increase in fiscal 25, anticipating a 20% expense increase due to a new lease agreement. John Kissida expressed gratitude for the detailed information and discussed concerns about avoiding past financial challenges. Mimi reassured him about the cost-effectiveness of their current structure. Dave Valcourt discussed the satisfaction with the golf course's improved facilities, attributing it to past financial decisions. He also raised concerns about potential weather-related disruptions and asked about insurance coverage. Peter Lombardi explained the lack of specific insurance for such events and the possible measures to address revenue shortfalls. Jay Paggi proposed rate increases above the initially suggested 5% and 6% for fiscal years 25 and 26, advocating for a more cautious approach. Peter Lombardi explained the legal constraints on charging more than the services provided but discussed the possibility of appropriations to the capital stabilization fund. Dave Valcourt inquired about the course's preparedness for unforeseen events, drawing on the experience of past disruptions like Hurricane Bob in 1990. The conversation touched upon the financial impact of natural disasters and the town's potential support in such cases. Anne O'Connell praised the financial team for their work and expressed gratitude for the transparency in financial reporting. Andrea Johnson and others echoed the appreciation for the detailed financial insights provided. The discussion concluded with appreciation for the financial team's efforts in providing valuable information. Discussion and vote on recommendations for daily fee, cart fee and range fee increases (Andrea Johnson) - Jay Packett presented a proposal to increase fees for golf carts from 5% to 8%. He explained that the current rates, shown in the far -right column of a spreadsheet, would remain unchanged from January 1 through March 29, 2024. Jay emphasized that the 8% increase in cart fees is minimal in terms of actual dollars and justified it by comparing with surrounding golf courses, where they align closely. Anne O'Connell questioned why there wasn't an increase in cart rates for nine holes. Jay Packett explained that the 8% increase results in only an 80 -cent difference, and it's more convenient for handling transactions with whole -dollar amounts. Regarding the driving range fees, Jay Packett mentioned a proposed 2% increase but noted that it would only raise the fee from $3 to $3.20. He expressed satisfaction with the performance of the driving range, indicating positive financial reports. The discussion continued with Jay Paggi suggesting a potential increase beyond 5% due to the superior quality of the golfing experience provided. However, Jay Packett and others expressed caution, preferring to assess the impact of the proposed increases before making further adjustments. John Kissida proposed examining rate structures on specific dates, suggesting potential shifts around Memorial Day and Labor Day to optimize revenue. Jay Packett explained the historical rationale for the current rate structures, particularly post -Labor Day. The Golf Commission approved the proposed daily fee increases, with Anne O'Connell making a motion to approve the rates for daily fee players, carts, and the driving range as distributed by Jay Packett. It was approved unanimously. Update on Business Manager Position (Jay Packett) - Jay Packett conveyed that an individual had accepted an offer for the business manager position and was undergoing pre-employment paperwork. The individual's expected start date was January 2, and the initial weeks would involve familiarization with the town's operations, staff, and training on various software. Anne O'Connell raised a question about the location of the business manager's office, specifically whether it would affect the availability of the conference room. Jay Packett confirmed that the conference room would be the new office space, and Anne inquired if it would still be available for other uses. Jay clarified that he planned to inform the ladies associations and Mahjong groups individually about the unavailability of the conference room. The discussion concluded with a clear understanding that the conference room would no longer be available for general use. Monthly Financials (Jay Packett) - Jay Packett shifted the discussion to the financial aspect, presenting the budget status. He highlighted that they were slightly higher than the previous year, attributing the increase to payroll hitting three times in November. Despite this, he expressed overall comfort, noting lower general expenses compared to the same period last year. Moving on to the comparison reports, Jay reported being $16,000 ahead year over year in November. He explained the decrease in greens fees due to unfavorable weather conditions during the month. However, he emphasized the positive impact on driving range revenue, which was busier than ever. The calendar year comparison report indicated a substantial increase in revenue, with $460,000 ahead of the previous year through November. Jay expressed satisfaction with the pro shop's performance, up $59,000 from last year. For the fiscal year, Jay reported being $157,000 ahead, with memberships, greens fees, and cart fees contributing to the positive trend. Despite a deficit in November, the overall projection showed over $200,000 in retained earnings at the end of the fiscal year. Jay provided details on the number of rounds played, highlighting 3,821 rounds in November, affected by suboptimal weather conditions. However, the cumulative rounds for 2023 were expected to reach around 92,000, surpassing initial expectations. Dave Valcourt shared insights into the value of the golf course product, noting the balance between daily fee players and members. He expressed satisfaction with the current equilibrium, where daily fee players were not deterred by revenue increases. Jay Packett acknowledged the collaborative effort in creating the financial forecast, praising the teamwork of Peter, Donna, Mimi, Colin, and himself. He highlighted the consistency in percentage increases from the previous year's predictions. Update on course conditions, winter projects, and staffing (Colin Walsh) - Colin Walsh provided a brief update on the current status of the golf course as it transitioned into winter mode. He mentioned the recent cleanup efforts and shared updates on various ongoing projects. Colin reported that an order for new fairway mowers and a sand machine for sand trap maintenance had been placed, replacing 15 -year- old equipment. RFPs were out for the redevelopment of well number two, and the hiring of an engineer for the project was in progress. Additionally, a source and supply study had been sent to irrigation consultants, with potential interest from firms, including one already working on a similar project at a golf club on the Cape. He highlighted completed in-house projects, including the rebuilding of seven bunkers, with positive feedback on their improved playability. Tree work had begun to address high limbs, and irrigation blowouts were complete, with ongoing repairs. Lime application to adjust the soil pH was in progress, and preventive measures for snow mold were being implemented. Colin mentioned ongoing equipment maintenance, with the final layoffs scheduled for the end of December. The winter crew would consist of eight members, and Colin emphasized the misconception that they don't stay busy during the winter. During the discussion, Andrea Johnson complimented the improved appearance of the bunkers and inquired about the changes made. Colin explained the extensive rebuilding process, including reshaping and resodding the faces, making them more enjoyable to play. John Kissida and Dave Valcourt shared additional positive updates, including being added to a wholesale plant list and collaborating with Friends of Captains for planting projects. Dave Valcourt suggested showcasing the maintenance team's work on the website to highlight their efforts and provide exposure. The conversation also touched on future agenda items, including a presentation by Catalyst on the maintenance building study results. Andrea Johnson expressed gratitude for the agenda updates and looked forward to upcoming information. Questions and Comments from Associations and Liaisons: - None. Review and approve minutes (11/14) - Approved with amendments. Future Agenda Items and Meetings (1/9 & 1/23) - Andrea Johnson mentioned the upcoming meeting on January 9 with credit card issues, membership rate the topic of Chelsea point being on the agenda for 1/9 and architects for 1/23. Jay Paggi noted he will provide an update on the water source and supply RFP. Matters not anticipated by the Chair: - Jay Packett discussed a request for an event on Friday, October 4, which is not Columbus Day weekend but the weekend before. The event is organized by a local family in memory of their child, who passed away in an accident. The proposal raised considerations about potential revenue loss, but Jay Packett explained that having a captive audience of players could compensate for it. The board discussed the possibility of adjusting the format of the shotgun if the number of players decreased. A motion to approve the proposed October 4 tournament was made, seconded, and approved. John Kissida raised the question of revisiting tournament and group rate changes considering the fee increases being considered. Jay Packett explained that the current rates had been adjusted from a lower amount and suggested that it might be worthwhile to explore changes. Anne O'Connell inquired about the rationale behind the existing rate, and Jay Packett expressed the intention to investigate comparable rates from other sources. John Kissida emphasized the importance of reviewing all aspects, including tournament rates, during the fee increase discussions. A motion to adjourn was made - Motion was approved and the meeting was adjourned. 4