Fort Walton Beach Council minutes — 06-17-08 special minutes — reading text

information that effective October 2007 the hours for twilight play begin at 12 noon, regardless of daylight savings time, and there is also a 9- hole twilight rate; the twilight play is on track to total 21, 000 rounds for this year for 18- hole play which is comparable to the levels in FY 2005 and FY 2006; an additional 4, 700 rounds are anticipated from 9- hole twilight play this year; and staff does not believe changing the twilight start time from 1 : 00 p. m. to 12 noon has a significant adverse impact on revenues and appears to have increased rounds during the heat of the date. Staff recommendation is to continue twilight playas currently structured. It was explained the cost of twilight play is $ 12 for 18- holes, and then at 4: 00 p. m. it is $ 10 for 9- holes. The Mayor opened the floor for public comment. Special Council 6- 17- 08 181 POLICY ISSUES cont. Twiliaht Play Don Vokal, 217 Indian Oaks, Destin, stated he marshals at the golf course and during twilight play they pay the fee and can playas many holes as they can play from 12: 00 until 7: 30 p. m. He further commented if the City were to beat the military prices they would have golfers. Brad West, Bay Drive, commented it is $ 22- 27 for any military person to play on Hurlburt and Eglin and suggested the City have a rate for the military personnel such as a play card or some discount, to get them to the course. Joe Sasso, 18 Oakdale Road, stated his rate at Eglin is around $ 52. 00 with a cart and he cannot get a tee time, and there are others in the town beside military people who have to worry about expenses. He said the Fort Walton Beach golf course is a better bargain with the yearly membership pass. He commented on the $ 2, 200 non- member play card and said the new fee is being forgotten. As no one further wished to speak public comment was closed. There was no motion to change twilight policy. POLICY ISSUES cont. Multi- Year Rate Plan Policy Issue: Should a rate change be implemented? The presentation included information that rates have been modified four times in the last five years; the City' s auditors have commented in the last three years' audits about the Golf Fund' s cash flow deficits and deficit unrestricted net assets; the annual rate increases are critical to ensuring revenues keep pace with the inflationary costs of operations and provide funding for capital needs; the June 1, 2008 rates per the fee schedule are generally a 100/ 0 annual increases each June as adopted in April 0 increase, based on 50/ 2006 but held in abeyance for June 2007; and the proposed rates are lower than rates at surrounding cI u bs. Additional information included a snapshot of the more commonly discussed rates and shows the current rates and the rates scheduled to go into effect June 1, 2008 but held in abeyance where the 12- month memberships for City and County would increase $ 150 from $ 350 to $ 500, member 18- hole green fee would increase $ 1. 55 from $ 15. 00 to $ 16. 55, member 18- hole cart fee would increase $ 1. 20 from $ 11. 50 to $ 12. 70, non- member 18- hold green fee would increase $2. 60 from $25.00 to $27. 60, and non- member 18- hold cart fee would increase $ 1. 55 from $ 15. 00 to $ 16. 55. The snapshot included an alternative rate schedule which would increase the 12- month City resident membership by $ 50. 00 from $ 350. 00 to 400. 00 per year, increase the County residents by $ 150. 00 from $ 350. 00 to $ 500. 00, then a $ 1. 00 increase in green fee members and a $ 2. 00 increase for non- members, and a $ 1. 00 increase in cart fee for everyone. Further information was shown in a pro- forma based on the June 1, 2008 fee schedule rates with a 5% annual increase for FY 2008, FY 2009, and FY 2010 then a 3% increase assumed for two more fiscal years for a five year snapshot and it was noted the total net assets will begin to rebuild and the deficit equity in pooled cash will be cleared in FY 2010; and a pro- forma based on the alternative rates structure was shown and it was noted the equity in pooled cash will be out of the negative but the surplus in future years are not as great. State recommendation is to increase golf club rates effective July 1, 2008 as per the rates scheduiedto take effect June 1, 2008, with adjustments as needed to reflect Council' s actions during this Gof' Fund meeting. 1 82 Special Council 6- 17 -08 POLICY ISSUES cont. Multi-Year Rate Plan The City Manager mentioned that staff has considered rate differentials for different times of the year and discussed flexibility for the Golf Club Administrator. She said what is missing in regard to local government setting rates and the private entities setting rates is there has to be a public forum in which to do that because there is no policy in the rate schedule. She said right now there is a policy in the rate schedule that allows the Golf Club Administrator to discount rates for tournaments only and suggested giving the Golf Club Administrator the authority to discount rates up to 20% during the year. She said they have struggled with the snowbird issue and if it is something Council is interested in doing staff can look at creating a greater differential during that seasonal rate. Brad West, Bay Drive, mentioned the base courses have a tiered fee structure and suggested the City try to adopt some of their fee structures to entice the young golfers to playa different course. Peter Bower, 222 Sleepy Oaks Road, commented that the snowbirds are much less predominantly military than the local residents so Eglin and Hurlburt are not as good an option for them, and the real competition is Bluewater Bay or Shalimar. He further commented that the snowbirds all come from Destin and Fort Walton Beach is subsidizing Destin' s tourists. Kabe Woods, 220 Brooks Street, commented that city resident's money is used to subsidize the golf course and there should be an advantage for City residents. He suggested a simple way to give the residents some due is to use the current rate schedule and give City residents the twilight rates. John Franklin, 221 California Drive, expressed difficulty with the winter visitors coming in for three months then playing three or four times a week and only being charged $ 3. 00 more than what he will be charged. He suggested the City look at the tournaments and to add $ 5. 00 for each person which will increase revenue during the seven or eight month period. Don Dineen, 56 Linwood, referenced the June 1, 2008 increase and commented the increase for members is fairly significant and the last time there was a significant increase they lost members very heavily. He suggested to raise rounds that the junior rates be modified and let them play Saturday and Sunday afternoons, especially in the summer. Chuck Wheelahan, 613 Powell Drive, commented he has issue with the fact they are still saying the increase and decrease of revenue and expenses against the golf fund are thus when he believed they are being calculated to include that the golf fund is paying for the clubhouse. He did not think it should be that way and voiced his opinion the figures are skewed. He addressed the 2008 fee schedule and said a family of two will increase 50% to $ 750. He said that is too high and the City will lose members. Bobbie Holbrook, 229 Marshall Drive, former member of the Golf Club Advisory Committee, said the current fee schedule is a little outrageous and if they keep the schedule as it is going that the level of play will continue to go down every year that they raise the rates. He said something has to be done to raise the level of play and to keep raising rates every year will not do it. Phil Danker, Shalimar resident, commented it seemed the desire is to increase the number of rounds and did not think raising the rates will work. He said he was a member of the golf course for 15- 16 years and when the rates tripled from $ 5. 00 to $ 15. 00 he dropped his membership, then he rejoined when the City instituted the play card of 30 rounds for $300 with a $ 350 annual membership. He said if the annual membership is raised another $150 and the rounds are raised another $6. 55 he will drop his membership again. He said if the City institutes the rates and do not have a play card a lot of people will leave. Don Dineen received clarification that the June 1, 2008 fee schedule for membership would increase from 400 to $ 500 and the spouse membership will increase from $ 150 to $ 250 making the membership for him and his wife at $ 750. 00. Special Council 6- 17- 08 183 POLICY ISSUES cont. Multi-Year Rate Plan Mike Bidwell, 395 Canterbury Circle, commented since every rate increase there has been somewhat of a reduction in play, and asked if the forecast took into account the reduction of rounds because of a rate increase. He received clarification that it was a combination of things that caused the rounds to drop, and received explanation that all the five year projections are based on the current levels of play. Chuck Wheelahan, 613 Powell Drive, commented total active membership has gone from 830 in 2004 to 308 in 2007 that equates to around a 60% reduction in membership. As no one further wished to speak public comment was closed. Mr. Minich moved to approve the alternative rates of $400. 00 for 12- month membership for City and County residents, $16. 00 for member 18- hole green fee, $ 12. 50 for member 18- hole cart fee, 27. 00 for non- member 18- hole green fee, and $ 16. 00 non- member 18- hole cart fee, to increase dependent membership to $ 175, and add $ 5. 00 to the tournament fees. Mr. Reeves seconded motion. Comments included the attempt to remain competitive with as low rates as possible and that the City cannot compete with the bases. Mr. Minich moved to amend the motion by allowing the Golf Course Administrator the flexibility to vary the tournaments and green fees by 20ok. Mr. Reeves seconded amendment. There was clarification that the amendment was attached to the original motion and if the original motion fails the amendment can be attached to another motion if one is made. The Mayor called for the vote on the amendment to the motion and it carried by a vote of 6 to 1 with Holmes, Miller, Reeves, Garvie, Pullen, and Minich in favor and Hartwell opposed. It was clarified that the motion on the alternative rates of $400 for a 12- month membership included both the City residents and County residents. Mr. Miller moved to amend the motion to freeze the 12- month membership for both the City and