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HomeMy Public PortalAboutCouncil Minutes 2001 07/24MINUTES McCall City Council Special Meeting Tuesday, July 24, 2001 Table of Contents Call To Order and Roll Call Business Adjournment Page 1 of 5 July 24, 2001 City Council Minutes CALL TO ORDER AND ROLL CALL Todd McKenna called the special meeting of the Golf Course Advisory Committee to order at 7:55pm. He explained that the committee has been commissioned with getting the Golf Course financially stable. He said the public would be focusing comments and suggestions to the committee. Council attended for information purposes. Mr. Muller, Ms. Arp, Mr. Colton, Mr. Eimers, and Mr. Venable answered roll call. A quorum was present. City staff members present were, City Manager Robert Strope and Finance Director/City Clerk Cathleen Koch. EXECUTIVE SESSION Dan Pillard gave a brief history of the McCall Golf Course. Rich Formacia presented the history of the McCall Golf foundation. Frank Brown is Secretary/Treasurer. He discussed raising money in the same fashion as before by selling lifetime passes. Don Trawicki retired Deloitte & Touche partner reviewed the financial history of the golf course. He pointed out significant changes at the golf course, which included: 1991 — New Clubhouse (depreciation). 1992 — 1995 No Major Changes. 1996 - Spring Mountain Ranch opened 9-hole golf course. 1998 — New Sprinkler System. Mr. McKenna said that he appreciates the time Mr. Trawicki donated towards analyzing the golf course finances. COMMENTS Jim Staup thanked Mary Clemmer, Carl Hoss, and Dan Pillard for a job well done. Don Treyor concurred with Mr. Staup. Ken Dunn said to think of the course as an amenity, rather than an asset or liability. It's no different from any other amenity. If fees are increased, fewer people will play. Page 2 of 5 July 24, 2001 City Council Minutes Peggy Clemmer concurred with the prior statements. She hasn't had trust in Council for a long time. The golf course can be an asset. Tom Haines explained that the bottom line is friendships and families that have been created. The golf course can raise money. He did not want tournaments or season passes taken away. Dan Pillard has turned this into a perfect course. Larry Shake, Golf Advisory Committee, said the committee needs concrete input of how to deal with the financial situation. Bill Killen views the issue as an accounting problem. He was amazed that the city is depreciating the Spring Mountain Ranch 9 holes. Depreciation is to replace things as they wear out. He did agree with management transfers for services provided, which should be based upon work done. The golf course is one of the jewels for McCall. The golf course bond is paid off in a few years. The city must be very careful not to violate bond covenants. The community must be ready, willing, and able to support the golf course. Dan Endressen asked about earmarked money. Roger Smith said the SMR 9 holes generate little or no money, but generates expenses. Tom Kelangey was one of the partners that put the Spring Mountain Ranch project together. He said the golf course gets negative publicity every year at budget time. He wondered if it was smart to continue as Enterprise Fund. Rich Hormachea said the numbers are very confusing. He wants to see the separation of the restaurant and golf course. Spring Mountain Ranch Course should be made more playable. Dan Pillard said the comprehensive plan talks about making the course more playable. The city is looking for grants and donations to finance improvements. Mr. Pillard thinks fixing the golf course can increase revenues. Bob Minshew said the city has to settle on a fair accounting system. If the course is not making money, the city must make a hard decision. Ray Schmidt plans to retire in McCall. All the points he had have already been addressed. The committee needs to consider that a golf course is going in down the street. It must have high quality turf to attract players. Nick Nicholson agreed that the issue only comes up once a year. He said the city couldn't count the money that the golf course brings to the community. Page 3 of 5 July 24, 2001 City Council Minutes Ballard Smith suggested that the problem might not be the golf course, but other problems in the City. He suggested using some of the general fund money. He also suggested considering different fees for residents and non-residents, a surcharge on each round of golf played, and/or a hotel motel tax. Mr. Smith said the course has a wonderful atmosphere and applauded Mr. Pillard and Mr. Hoss for the jobs they have done. Kim Zeydel asked if the number of tournaments has increased over the years. The response was that tournaments had not increased over the years. She also asked if they were held on weekends or weekdays. Tournaments are held on both weekends and weekdays. Ms. Zeydel said if the City is considering a tax increase, then the makeup of season pass holders should be considered. She suggested looking at what percent lives in the City, County, or other areas. Harry Stathis said McCall has a jewel with the golf course, lake, Brundage, and trails. Mr. Hoss and City Council need to work out any differences. Jimmy Russell said he has been through two situations such as this one. He stated that he noticed the municipal operations put expenses in the golf course but not vice versa. He thinks Mr. Hoss and his staff do a wonderful job and thanked Mr. Pillard for doing a good job with the maintenance. Eugene Brown said the golf course needs to be treated more like a park. It is an amenity to the community. Willie Griffith said the City needs to consider the tax revenue received around the golf course. The committee needs to check with other resort communities that are losing money to see how they handle the situation. He said he was amazed that revenues had increased since Shore Lodge is closed. Tim Swanson suggested possibly selling the Spring Mountain Ranch Cedar Nine. Ron Harolcheck thinks all funds should depreciate. The golf course is an asset to McCall. Don Chapman said the depreciation schedule must be revised and the administrative costs must be reevaluated. There should also be a modest fee increase. He recommended a citizens committee running the golf course. Pat Harvard said the golf course is one of the reasons people come to McCall, not the only reason. Helen Eimers said that people don't come stay at the Best Western to golf. If the other nine holes were better, maybe more people would come to play. Page 4 of 5 July 24, 2001 City Council Minutes Dean Hovdey said the City should be proud of the facility and amenity. He believes City Council owes Ms. Clemmer, Mr. Hoss, and Mrs. Hoss an apology. Mr. Pillard and Mr. McKenna explained that the comments did not come from City Council, they came from the auditors. Jody Buffer said the junior players have not been addressed. The golf course needs a good marketing program for young families with children. Charlie Roberts doesn't believe the golf course has lost any money. He thinks the City has shoddy accounting practices. Mr. Shake thanked every body for coming Dan Wilson said he likes the cedar nine golf course because it is a challenge. He supports a fee increase. He said that the Local Option Tax could be valuable for this issue. Loren Malone said playing would not increase by raising prices. Mr. Shake mentioned that written comments are important. ADJOURNMENT Without further business, Mr. Muller moved to adjourn. Mr. Eimers seconded the motion. All Council Members voted aye. The motion carried. The Council adjourned at 10:00 pm. Ilanuller, Mayor ATTEST: Cathleen A. Koch, Finance Director/City Clerk Page 5 of 5 July 24, 2001 City Council Minutes