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
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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.
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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.
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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.
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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
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