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HomeMy WebLinkAbout2015-06-02_PR Comm Packet Roseville Parks and Recreation Commission Meeting Tuesday June 2, 2015 6:30 P.M . Roseville City Hall 2660 Civic Center Drive AGENDA 1. Introductions 2. Public Comment Invited 3. Approval of Minutes of May 5, 2015 4. Park Dedication – 2715 Long Lake Road 5. Follow up to the Cedarholm Golf Course Tour 6. Prepare for Joint City Council/Commission Meeting 7. Park and Recreation Renewal Program Status 8. Staff Report 9. Other 10. Adjournment Roseville Parks and Recreation “Building Community through People, Parks and Programs” www.ci.roseville.mn.us Be a part of the picture….get involved with your City….Volunteer. For more information, contact Kelly at kelly.obrien@ci.roseville.mn.us or 651-792-7028. or check our website at www.cityofroseville.com Volunteering, a Great Way to Get Involved! MEMORANDUM To:Parks and Recreation Commission From:Lonnie Brokke Date:May 25, 2015 Tuesday June 2, 2015 Re: Notes for Commission Meeting on Introductions 1. Public Comment Invited 2. Approval of Minutes of the May 5, 2015Meeting 3. Enclosed is a copy of the minutes of May 5, 2015.Please be prepared to approve or amend. Requested Commission Action :Approve/amend meetingminutesof May 5, 2015. Park Dedication – 2715 Long Lake Road 4. Enclosed is a site map regarding a proposed improvement projectat 2715 Long Lake Road where there is a replattingof property occurring.This is the Holiday Inn Express where they are adding a pool onto the hotel. This is a bit of an unusual situation because the hotel property is located on a11.95 Common Interest Community(CIC)where there arelot linesseparating the shared property. The hotel siteis.31 acre and is under a single ownership. The Hotel is proposing to change the lot line to accommodate the pool addition. In this case, moving the lot linechanges the entire11.95 acres and therefore triggers park dedication. The construction of the pool will also be removing green space from the area. It has been suggested thata reasonable approach is to assess Park Dedication to the .31 acre hotel site at this timeand then theremaining 11.64 acres if and when there is a redevelopment in that area. The cash amountwould be approximately $50,000(7% of the FMV). Consideration of land is difficultin this situation because the proposal is simply toadda pool onto the existing building. In terms of calculating the land amount it would be 5%of .31 acres or .015acre. This area is located in constellation Awhere it would make sense to consider property when areas are redeveloped. Included in your packet is a copy of the Park Dedication Ordinance and general guidance from the Parks and Recreation System MasterPlan on Parks and Open Space acquisition. The primary role of the Commission is to review and offer a recommendation to the City Council on whether to accept land, cash or a combination. Requested Commission Action: To discuss and make a recommendation to accept land, cash or a combination to satisfy the Park Dedication requirements. Follow up to the Cedarholm Golf CourseTour 5. This is an item with an expected eventual recommendation to the City Council. The May Parks and Recreation Commission meeting tookplace at the Roseville Cedarholm Golf Course with a tour of the clubhouse, shop and grounds. This isan opportunity to continue discussions and determine what other information is needed to complete your report and formulate a recommendation to the City Council. I have again includedin your packet thebackground report and attachments for your reference. Requested Commission Action: Review, discuss and determine what additional information is needed. Prepare for Joint City Council/Commission Meeting 6. Your annual joint meeting of the City Council and the Parks and Recreation Commission will be held on Monday, June 15, 2014 at the City Council regular meeting. It is expected to be the first presentationitem on the agenda beginning atapproximetely 6:20p.m. for 40 minutes.This is your meeting with the City Council to discuss areas of importance to you and to gather input and guidance from them. Included in your packet for your review and adjustment is a draft Request for City Council Action (RCA) highlighting work of the Commission over the last year and areas the Commission sees workingon over the next year. Please be prepared to add or delete items as you see appropriate. The RCA and the enclosed draft golf course report are anticipated to be included in the City Council packet. Please mark your calendars for Monday, June 15, 2014. Requested Commission Action : Discuss and finalize information andapproach for your joint meeting with the City Council. Park and Recreation Renewal Program Status 7. Included in your packet is an updated matrix of Renewal Programprojects and current status. It is a continuoustool designed to provide a snapshot of progress for the staff, Commission, City Council and Community. Any additional progress on the Renewal Program will be reported at the meeting. Requested Commission Action : Discuss progress and provide input. Staff Report 8. Other 9. Adjournment 10. ROSEVILLE PARKS AND RECREATION COMMISSION 1 MEETING MINUTES FOR 2 MAY 5, 2015 3 CEDARHOLM GOLF COURSE~6:30pm 4 5 PRESENT: 6Becker-Finn, Diedrick, Heikkila, Doneen,Newby, O’Brien, Stoner ABSENT: 7Bogenholm,Holt, Gelbachnotified staff about beingunable to attend STAFF: 8Anfang,Brokke, McDonagh OTHERS: 9Roger Hess Jr. 10 11 INTRODUCTIONS 121. 13 ROLL CALL/PUBLIC COMMENT 142. 15Roseville Resident Roger HessJr. wasin attendance for tonight’s meeting, Roger chose not to 16comment at this time. Staff recognized an email for a community member sharing ideas for 17management & operations of Cedarholm. 18 19Commission Chair Stoner shared information on the revised program for Roseville U. 20 21Commissioners agreed to re-arrange tonight’s agenda to accommodate videotaping of items 5 & 6 22and Golf Course operations discussion before course tour. 23 APPROVAL OF MINUTES –APRIL 7,2015MEETING 243. 25April 7, 2015minutes passed unanimously. 26 PARK and RECREATION RENEWAL PROGRAM STATUS 274. 28Brokke reviewed the program progress report. 29All park buildings are open andserving as vital community gathering places. 30Remodeling at Park Shelters is completed and the facilities are available for use. 31Final adjustments are being made to the boardwalk at HANC. 32Tennis Courts that were rebuilt last fall are being color-coated this spring. 33Field improvements have been completed on four CP Victoria fields. 34Community volunteers have been very busy working on monthly Natural Resource projects 35throughout the community. 36The City Council approved a 2 year contract with a local environmental firm to perform the 37required monitoringand reporting to the Minnesota Pollution Control Agency for the newly 38acquired property adjacent to and now a part of Autumn Grove Park. 39 STAFF REPORT 405. 41Staff shared early spring events, facility use and program updates. 42 CEDARHOLM GOLF COURSE TOUR & DISCUSSION 436. 44Brokke & McDonagh presented a brief history of Cedarholm Golf Course and overview of golf 45operations. 46 47Commissioner discussion followed; 48Doneen inquired into what staff see as the top list of needs/priorities. 49Staff spoke to capital needs with the clubhouse and maintenance shop. Staff also o 50recognized that Cedarholm is used and maintained uniquely from other courses resulting 51in items realizing an extended life beyond typical industry standards. 52 53Stoner askedabout the Finance Director’s report and wondered if the current $20,000 in 54administrative fees is the right number. Stoner also wondered if the current staffing level is 55correct. 56Staff responded that the $20,000 administrative fee has been consistent for many years o 57now. 58Golf Course staff focus their efforts on the course during the golf season and get some o 59additional assistance on projects from the maintenance staff and a shared maintenance 60position with the Skating Center, plus work on department-wide tasks like turf 61management and marketing. 62O’Brien asked if there is a good study of how golf staff spendstheir time. 63Brokke spoke to how staff worksacross the department and mentioned that the o 64department has begun using the Pubworks system to track tasks along with hours during 65individual pay periods. 66Heikkila recognized increases in concession sales in 2014. 67McDonagh explained the golf course had a very successful Groupon campaign that o 68resulted in increased concession sales thanks to collateral purchases bythose using 69Groupon purchases 70 71Meeting discussions and videotaping adjourned at 7:30pm. At this time, Commissioners continued their 72meeting with a walking tour of the Course. 73Commissioners spent time at the maintenance shop seeing first-hand how space is maximized to 74store riding carts, learned the types of equipment currently being used to maintain the course 75grounds & facilities. 76Commissioners walked the course learning the processes used to maintain turf, trees and 77plantings. Staff also pointed out supporting structuresand course features. 78 79 80Meeting adjourned at8:50pm. 81 82Respectfully Submitted, 83Jill Anfang, Assistant Director Regional Parks, Preserves, and Open Spaces Recreational Centers Special Use Facility Parcel Boundaries Enter Map Description Police Stations Parks (8-64K)County Park Golf Course Local ParksRec Center Parcel Points State Park Fire Stations City Halls Hospitals Schools Airports Legend Notes accurate, current, or otherwise reliable. is for reference only. Data layers that appear on this map may or may not be This map is a user generated static output from an Internet mapping site and THIS MAP IS NOT TO BE USED FOR NAVIGATION Feet 1,333.3 666.67 0 NAD_1983_HARN_Adj_MN_Ramsey_Feet © Ramsey County Enterprise GIS Division 1,333.3 Recreational Centers Parcel Boundaries County Borders Enter Map Description Police Stations Parcel Points Fire Stations City Halls Hospitals Schools Airports Legend Notes accurate, current, or otherwise reliable. is for reference only. Data layers that appear on this map may or may not be This map is a user generated static output from an Internet mapping site and THIS MAP IS NOT TO BE USED FOR NAVIGATION Feet 400.0 200.00 0 NAD_1983_HARN_Adj_MN_Ramsey_Feet © Ramsey County Enterprise GIS Division 400.0 2 ORDINANCE 1278 AN ORDINANCE AMENDING TITLE THREE, SECTION 1103.07 PARK DEDICATION THE CITY OF ROSEVILLE ORDAINS: Section 1103.07 of the Roseville City Code is amended to read as follows: 1103.07: PARK DEDICATION: A. Condition To Approval: As a condition to the approval of any subdivision of land in any zone, including the granting of a variance pursuant to Section 1104.04 of this Title, when a new building site is created in excess of one acre, by either platting or minor subdivision, and including redevelopment and approval of planned unit developments, the subdivision shall be reviewed by the Park and Recreation Commission. The commission shall recommend either a portion of land to be dedicated to the public for use as a park as provided by Minnesota Statutes 462.358, subdivision (2)(b), or in lieu thereof, a cash deposit given to the City to be used for park purposes; or a combination of land and cash deposit, all as hereafter set forth. B. Amount To Be Dedicated: The portion to be dedicated in all residentially zoned areas shall be ten percent (10%) and five percent (5%) in all other areas. C. Utility Dedications Not Qualified: Land dedicated for required street right of way or utilities, including drainage, does not qualify as park dedication. D.Paymentinlieuofdedicationinallzonesinthecitywhereparkdedicationis deemedinappropriatebytheCity,theownerandtheCityshallagreetohave the owner deposit a sum of money in lieu of a dedication. The sum shall be reviewed and determined annually by the City Council by resolution. (Ord. 1061,6-26-1989) E. Park Dedication Fees may, in the City Councils sole discretion, be reduced for affordable housing units as recommended by the Housing and Redevelopment Authority for the City of Roseville. Ordinance 1278 Effective date. This ordinance shall take effect upon its passage and publication th Passed by the City Council of the City of Roseville this 24 day of February, 2003. Roseville Cedarholm Golf Course Review Report –Commission Review -April, 2015 1 2 Background 3 In November of 2014, the City Council asked the Parks and Recreation Commission to work 4 with staffto review current and future operationsand capital needs of the Roseville Cedarholm 5 GolfCourse and provide a recommendation. 6 7 This report will provide information on the golf course history, current uses, area surveys, fees, 8 financial position,annual operating budgets and Capital Improvement Program (CIP). 9 10 History and Facts 11 The Roseville Cedarholm Golf Course was initially built in 1959. It was initially owned and 12 operated by the neighboring condominiums until purchased in 1967 by the City of Roseville 13 through a voter referendum. 14 15 The golf course gets its name from the former Mayor Emil Cedarholm. 16 17 The Golf Course is a par 3 nine hole,1373 yards and sits on 22 acres. It isidealfor youth, 18 seniors, families and those that want to play a quick round. 19 20 There is a 2500 sq. ft.model home clubhouse, an1800 sq. ft. garage as a shop and a 66 car 21 parking lot. 22 23 Cedarholm Golf Course is currently an enterprise fund which meansthatthere isno tax dollars 24 usedfor operationsor capital items. Allexpenses are paid for throughuserfees and charges. 25 26 The golf course has done well financially over the years until the golf industry has realized a 27 correction over the last decade. 28 29 Current Programs and Course Use(on and off season) 30 Leagues 31 4–MorningLadyLeagues -4 days a week (Spring & Fall) 32 o 6-Evening Leagues-3 Private and 3 Cedarholm 33 o 1-Friday MorningSeniorLeague-Co-ed 34 o 1-Junior Golf League -ages8-15 35 o SNAG (Starting New At Golf) for early introduction to golf age 5-7 36 Special golf tournaments and outings -average of 5 internal and 13 external 37 PGA Junior Golf Tournament 38 High School Golf Team-3 local high schools and 6-8 From St. Paul School System 39 Open play 40 Club House rentals 41 Public Skiing 42 Cross CountrySki team Practice 43 1 Current uses of Clubhouse 44 Rentals-, i.e. family events: birthdays, anniversaries , retirements, holiday rentals ... 45 Concessions 46 Events -golf tournaments and league receptions 47 Deck feature for gathering and socializing 48 49 Participation -General Play Type (2014) 50 Golf TypeRoundsPercentageNotes Open Golf 13,92355% Youth Golf 1,4266% Women’s League2,3739.5% Senior Leagues 3,90015.5% Specials 3,53714%Specials, Coupon returns, tournaments, … Total 25,159 100% 51 Rounds Played Per Year 52 YearRoundsSpecials *Comments 1990’s average41,860Golf Booming Private courses being built Course saturation 2000’s average33,525Golf beginning to see adjustment, League members changing Some courses beginning to close 201030,4581,759 or 5.7%Private golf courses closing Golf stabilizing 201125,5181,618 or 6.3%Golf correction occurred Leagues continue to change 201225,9291,619 or 6.2%Golf appears stable Courses beginning to look at varying uses 201324,2821,015 or 4.1% 201425,159994 or 3.7% *Specialsinclude: promotion of loyalty cards, prize for league member events, rain check 53 redemptions, high school reward programs; fundraisers for schools, churches, special events, and 54 other marketing promotions… 55 56 2 Registered League Members (2010–2014) 57 YearJunior LeagueSenior League Women’sWomen’sEvening 10 weeks22 weeksLeague -League -Fall Leagues Summer 18 Weeks 201011515050390110 20119014947584120 20129513546387120 201311314240286120 201410114739189*120 80% residents47% residents27%residents29%residents28%residents 58 Survey of Comparable Area Public Golf Courses 59 Course/City or CountyRounds of Golf Funding SourcesComments (9 hole comparisons) 2014 Brightwood Hills /City of 20,832 Fees and General Tax Warm up driving net New Brighton Levy Birnamwood Golf Course/ 16,431 Fees City of Burnsville The Ponds/ Ramsey TBD TBD Driving range County Golf Island Lake/Ramsey TBD TBD Driving range and mini County golf New Hope Village/City of 17,000 Fees and General Tax New Hope Levy Mendota Heights/City of 9,550 Fees and Tax Levy Mendota Heights Brookland Golf/City of 11,000 Fees and Tax Levy Brooklyn Park Hyland Greens/City of 25,000 rounds Fees Driving range, 9 holes, Bloomington foot golf, Golf Learning Center Cedarholm Golf/ City of 25,000 Fees Roseville 60 61 62 3 Current Staffing Model 63 Cedarholm Golf Course staffconsistsof: 64 (10)part-time staffworking limited hours 65 (1)full-time Golf Course Superintendent 66 (1) ¾ timeProgramMarketing Coordinator 67 (1) sharedmaintenance employee with the SkatingCenter 68 TheGolf Course Superintendent and the Program Marketing Coordinator haveother duties 69 throughout the Parksand Recreation Department. 70 The shared maintenance position is paid for out of the Skating Center budget and spends the 71 winter months at the Skating Center (OVAL) and the summer months in a variety of areas 72 including the golf course, skating center and special park projects. 73 Other Parks and Recreation Department employees also sporadically spend time at the golf 74 course as necessary,i.e. Director, Assistant Director, Administrative Assistant and specialty 75 maintenance. 76 The following is a bit more specificabout the 2 regular golf course paid employees: 77 1)Golf Course Superintendent (full time): 78 The Golf Course Superintendent duties include all turf operations and general 79 management of all golfoperations. The other areas of responsibility for the Golf Course 80 Superintendent is to assist in the winter operations at the Roseville Skating Center/Oval 81 outside operations from ice maintenance, snow removaland special events assistance. 82 83 In the Parks and Recreation System, the Golf Course Superintendent works with staff and 84 local community organizations to developthe park athleticfield turf maintenance 85 program.He also assists in performing many of the turf field repairand enhancement 86 activities during the spring, summerand fall seasons. 87 2) Program Marketing Coordinator(3/4 time): 88 The Program Marketing Coordinator provides supervision of all the daily operations 89 including: daily receipts, staffing, general operations including concessions, league 90 programming, development of special events and the marketing of Cedarholm through 91 social media and other local marketing opportunities and assists the Golf Course 92 Superintendent in the operations of the overall course operations. 93 94 The position also includesassisting in developing and pursuing marketing, sponsorships 95 and contributions for the entire Parks and Recreation Department. This position also 96 workswith thearrangement and management of contracts with many local community 97 business locatedthroughout the twin city metro area. 98 99 4 Fee schedule–see attached surrounding fee matrix 100 Financial position review –see attached Memofrom Finance Director Chris Miller 101 Operating budget -see attached 2015 annual budget 102 Capital Improvement Program (CIP)–see attached 20 year CIP 103 5 Memo Lonnie Brokke, Parks & Recreation DirectorLonnie Brokke, Parks & Recreation Director To: Sean McDonagh, Golf Course SuperintendentSean McDonagh, Golf Course Superintendent Chris Miller, Finance DirectorChris Miller, Finance Director From: January 23, 2015 Date: Cedarholm Golf Course Financial Summary (2010Financial Summary (2010-2014) Re: Introduction The purpose of this memo is to provide a 5he purpose of this memo is to provide a 5-Year financial summary for Cedarholm Golf CourseYear financial summary for Cedarholm Golf Course. The information presented below is consistent with The information presented below is consistent with the City’s published financial statementsfinancial statements and has been prepared using generally accepted accountihas been prepared using generally accepted accounting & financial reporting standardsng & financial reporting standards. However, you may find it purposeful to compile and However, you may find it purposeful to compile and present the information in a different format present the information in a different format to highlight specific areas of operation.to highlight specific areas of operation. Most of the information presented below presented below relates to the Golf Course Statement of Revenues, ourse Statement of Revenues, Expenses, and Changes in Net Position; which is morExpenses, and Changes in Net Position; which is more commonly referred to as the operating e commonly referred to as the operating statement, income statement, or profit & loss statestatement, income statement, or profit & loss statement. I will briefly address the financial address the financial impacts of capital replacements as well.acts of capital replacements as well. As you know, major revenues sources for the As you know, major revenues sources for the golf course include: greens fees, equipment sales ourse include: greens fees, equipment sales and rentals, concessions, and interest earnings. Mand rentals, concessions, and interest earnings. Major operating expenses include; personnel, ajor operating expenses include; personnel, supplies, other services & charges, internal administrative charges, and deprecharges, internal administrative charges, and depreciation.iation. Each of these categories is presented separately to ensure transparency and allpresented separately to ensure transparency and allpresented separately to ensure transparency and allow interested parties to determine both the direct and indirect costs of to determine both the direct and indirect costs of operating the golf course.ourse. Financial Summary The following table depicts the 20102010-2014 financial results for the golf course. Please note that . Please note that the amounts listed for 2014 are preliminarythe amounts listed for 2014 are preliminary, unaudited figures that are subject to change.figures that are subject to change. \[See table on next page\] 1 Prelim 20102011201220132014 ActualActualActualActualActual Sales & Cost of Sales Concession Sales17,154$ 15,355$ 17,436$ 16,120$ 28,505$ Equipment Sales3,410 2,859 2,540 2,565 4,498 Clothing Sales- - - 15 - Total Sales20,564$ 18,214$ 19,976$ 18,700$ 33,003$ Cost of Sales11,248 8,898 12,016 9,895 13,595 Gross Profit9,316$ 9,316$ 7,960$ 8,805$ 19,408$ Operating Revenues Green Fees270,382 239,489 265,749 224,127 230,944 Evening League Fees1,704 1,760 2,033 9,652 9,967 Day League Fees9,004 8,874 8,095 8,911 7,287 Junior Golf League1,840 1,976 1,932 1,688 1,716 Equipment Rental6,754 6,258 10,991 14,477 18,106 Building Rental3,610 2,737 2,791 3,101 2,723 Pop Commissions- - - - - Miscellaneous- 25 4 336 8 Total Operating Revenue293,294$ 261,119$ 291,595$ 262,291$ 270,750$ Expenditures Personnel Services221,870$ 221,639$ 242,092$ 231,577$ 215,953$ Supplies & Materials31,815 26,537 30,206 30,849 29,212 Other Services & Charges36,695 37,549 41,467 33,789 40,715 Administrative Charge20,000 20,000 20,000 20,000 20,000 Depreciation28,481 26,755 26,755 29,602 32,000 Total Operating Expenditures338,861$ 332,480$ 360,519$ 345,818$ 337,879$ Operating Income (Loss)(36,251)$ (62,045)$ (60,963)$ (74,721)$ (47,721)$ Other Financing Sources (Uses) Sale of Property-$ -$ 2,709$ -$ 1,003$ Investment Income14,536 8,825 3,165 885 2,650 Change in fair value of investmts.- - - (11,769) - Total Other Financing Sources14,536$ 8,825$ 5,874$ (10,884)$ 3,653$ Net Change in Assets(21,715) (53,221) (55,090) (85,605) (44,068) Beginning Net Assets898,551 876,836 823,615 768,525 682,920 Prior Period Adjustment- - - - - Ending Net Assets876,836$ 823,615$ 768,525$ 682,920$ 638,852$ 2 As depicted in the table, the golf course has experienced an operating loss for the past 5 consecutive years. These operating losses are somewhat mitigated with interest earnings and the sale of excess equipment. This is captured in the ‘Net Change in Assets’ line near the bottom of the table. Collectively, this amounts to total losses of $259,000 over the past 5 years. If we look back over the past 10 years, the collective loss is $354,000; an indication of systemic challenges that preceded the 2007-2009 economic recession. Let me pause here and talk briefly about the line items for the internal administrative charge and depreciation expense – two items that collectively have a significant impact on your bottom line and are oftentimes highlighted when discussing financial results. Internal Administrative Charge The golf course is operated as an ‘Enterprise’ Fund whereby all direct and indirect costs are captured and reflected on the financial statements. It’s recognized that there are other city personnel that perform administrative or financial duties such as human resources, accounting, or IT support on the golf course’s behalf. This is in lieu of the golf course hiring its own staff or outside services to perform these functions. These administrative costs (charges) are real costs that would not occur if the golf course didn’t exist. Therefore we assess an internal administrative charge. I’m certainly open to a discussion on whether the administrative charge is set too high, but I will note that the $20,000 annual charge has remained the same since 2006. Depreciation Expense The Depreciation expense is an accounting method of systematically setting aside funds to pay for the eventual replacement of equipment and buildings. The basic concept is that we budget to incur the expense each year, but we don’t actually move any money out of the golf course’s account. In essence, we’re committing to NOT spending all of the revenues (green fees) that come in each year so we can build up some funds to pay for capital. In an ideal world, our cash balance would be going up each year because we’re saving up for future capital expenditures. In reality, 100% of incoming revenues are being used for day-to-day operations. Further information on the golf course’s cash reserves is shown below. Financial Summary Graphs In an effort to further depict the information presented in the table above, a number of graphs have been prepared. They include a couple of scenarios that depict varying expenditure levels along with a financial projection. 3 The first graph depicts the golf course’s financial summary over the past 5 years. Cedarholm Golf Course Financial Summary (Depreciation) Including $1,000,000 $876,836 $800,000 $638,852 $600,000 $417,153 $249,563 $400,000 $200,000 $- 20102011201220132014 RevenuesExpendituresCash BalanceNet Assets This graph depicts the revenues, expenditures, cash balance, and net assets of the golf course. It includes all expenditures including the administrative charges and depreciation. As shown here, expenditures have exceeded revenues each and every year which has resulted in a steady decline of both cash reserves and net assets. The next graph depicts the golf course’s financial summary over the past 5 years excluding the depreciation expense. Cedarholm Golf Course Financial Summary (Depreciation) Excluding $1,000,000 $876,836 $800,000 $638,852 $600,000 $417,153 $249,563 $400,000 $200,000 $- 20102011201220132014 RevenuesExpendituresCash BalanceNet Assets 4 In this case, even after we remove the depreciation expense the expenditures still exceeded revenues during the past 4 years. Only 2010 shows a positive result. You’ll notice however that there is no impact on the golf course’s cash reserve or net assets. This is because depreciation expense is a non-cash expense – i.e. we’re not actually moving any money. Bottom line is that golf course is running out of cash. Cash reserves have declined from $417,000 in 2010 to $249,000 by the end of 2014. 2015 and Beyond The graph below presents the same 2010-2014 financial summary information accompanied by a projection of the next 3 fiscal years (2015-2017). The 2015 amount is based on the adopted budget. The remaining years are extrapolated from the 2015 budget with the assumption that revenues will increase by 4% and expenditures by only 3%. Cedarholm Golf Course Financial Summary (Depreciation) Including $590,000 $417,153 $249,563 $390,000 $190,000 $(10,000) 20102011201220132014201520162017 $(3,197) RevenuesExpendituresCash Balance As shown here, on its current pace Cedarholm Golf Course will run out of money in 2017. Bear in mind that this only includes the impacts from projected operating expenses. Capital purchases will expedite the draw-down of the golf course’s cash reserves even faster. Final Comments Hopefully the information presented above demonstrates that there are significant financial concerns at the golf course that need to be addressed very soon. Reducing the administrative charge might be part of the solution, but its effect will be negligible given the size of the current operating losses. We could also evaluate whether it is appropriate to allocate 1.75 FTE’s to the golf course in addition to the temporary/seasonal employees. If we did a time-spent profile for golf course employees would we find that they collectively spend 3,640 hours annually managing or serving the golf course? If not, then the hours spent elsewhere should arguably be funded by that department/division. 5 Alternatively, the City could also look at the capacity for increasing green fees above and beyond operating increases. Ultimately however, there likely needs to be a comprehensive assessment of the golf course’s financial viability especially in the context of an aging clubhouse and maintenance building and general trends in the golfing industry. Please let me know if you have any questions regarding the information presented above, or how I might be of assistance moving forward. 6 REQUEST FOR COUNCIL ACTION Date: 6-15-15 Item No.: Department Approval City Manager Approval Item Description:Parks and Recreation Commission Meeting with the City Council B ACKGROUND 1 Periodically, the Parks and RecreationCommission meetwith the City Council to review 2 activities and accomplishments and discuss work items and issues to consider. 3 Activities and accomplishments: 4 Community outreach activity items include the following: 5 Renewal Program project kickoff – May 31, 2014 o 6 Discover Your Parks o 7 Natural Resource Program volunteer projects o 8 Community Build playgrounds o 9 Park Building and Nature Center open houses o 10 Project type activity items include the following: 11 Tour and review of project sites o 12 Ongoing review, guidance and advice on Renewal Program o 13 Review of park building operations plan o 14 Review and recommendation on Roseville Deer population o 15 Other: 16 Accepted petition on park classification for Langton Lake Park o 17 Regular meetings with the City Council o 18 Work Plan items for the upcoming year: 19 Park and Recreation Renewal Program substantial completion o 20 Review status of park building operation o 21 Review and update Commission goals o 22 Cedarholm Golf Course review and recommendation o 23 Prepared by:Lonnie Brokke,Staff Liaison Attachments: A. Summary Cedarholm Golf Course Report Page 1 of 1 CITY OF ROSEVILLE PARKS AND RECREATION RENEWAL PROGRAM PROJECT PROGRESS REPORT May 28, 2015 PROJECT NAMESTART STATUSCOMMENTS DATE A.BUILDING REPLACEMENT/SITE Lexington Park 5/2014100% complete Open House completed- Punch list items remainingand spring site work Sandcastle Park 6/2014100% complete Open House completed- Punch list items remainingand spring site work Villa Park 6/2015100% complete Open House completed January 28, 2015–punch list items and spring site work Autumn Grove Park9/2014100% complete,Open House completed March 25, 2015 –punch list items and spring site work Oasis Park 9/2014100% completeOpen House completed April 23, 2015–punch list items and spring site work Rosebrook Park 9/2014100% complete Open House completed April 22, 2015–punch list items and spring site work B.SHELTER REMODEL CP FOR Parks–DALE STREET9/2014100% completeSpringcompletion planned CP Foundation -WEST9/2014100% completeSpringcompletion planned CP Ballfields 9/2014100% complete Springcompletion planned SKATING CENTER C. REPAIRS Painting of Exterior 8/2014100 % complete Replace exterior doors on Arena 100% complete Block Work 2015 project Vestibule Improvements 2015 project D.HANC 1 PROJECT NAMESTART STATUSCOMMENTS DATE Exterior Work 6/2014100% completePunch list items only Interior Work 11/2014100% completeOpen House completed March 26, 2015–punch list items only Boardwalk 11/2014100% complete Installation complete – now adjusting E.BRIDGE REPLACEMENT Villa Park 7/2014100% complete3 bridges installed April, 2015 F.LIGHTING SYSTEMS REPLACEMENT Lake Bennett Trail 6/2014100% complete Courts in conjunction w/ projectSee courts Autumn Grove Park rink lights100% completeInstall fall 2014 Lexington Park rink lights100% completeInstall fall 2014 Villa Park rink lights100% completeInstall fall 2014 Sandcastle Park rink lights Install fall 2014 G.COURT REFURBISHMENT/SITE Acorn Park 2015Resurface only Autumn Grove Park 10/2014To be started soon Bruce Russell Park 9/2014100% completeComplete and playable, color coat to be done in spring 2015 Evergreen Park 9/2014100% completeComplete and playable, color coat to be done in spring 2015 Howard Johnson Tennis Court 7/2014100% Complete Complete and playable, color coat to be done in spring 2015 Pocahontas Park Tennis Court 7/2014100% Complete Complete and playable, color coat to be done in spring 2015 Sandcastle Park Fall 2014 H.FIELD IMPROVEMENTS CP Victoria #2,4, 5, & 68/2014100% completeComplete and playing leagues–punch list items remaining CP Victoria #1 & 3 2015fall project Evergreen Park # 1, 2 (west)4/20152015 project–well underway Evergreen Park # 3,48/20152015 project–fall project CP Legion 2015 project–fall project 2 PROJECT NAMESTART STATUSCOMMENTS DATE I.IRRIGATION IMPROVEMENTS Acorn Park Contractor approval 1/26/15 Autumn Grove Park Was alternate –is not planned CP Dale Street Contractor approval 1/26/15 CP Lexington Contractor approval 1/26/15 CP Victoria Started with in house staff Evergreen ParkContractor approval 1/26/15 Langton Lake Park Contractor approval 1/26/15 Lexington Park Started within house staff Rosebrook Park Contractor approval 1/26/15 J.NATURAL RESOURCES Grants $ in grants applied for 1-26-15 awarded and approved $146,376 1.Interpretive Signage All Parks Core Project 2.Lake Restoration CP Lexington Grant Approach 3. Native Landscaping Autumn Grove Grant Approach 4. Pond Buffer Restoration Keller Mayflower ParkGrant Approach Howard Johnson Park Grant Approach 5.Prairie Reconstruction CP Dale Street EastCore Project Acorn Park Core Project 6.Prairie/Savanna Restoration Reservoir Woods Core Project Applewood Overlook Grant Approach 7.Shoreline Restoration CP LexingtonCore Project Langton Lake Park Core Project Reservoir WoodsGrant Approach Oasis Park Core Project Willow Pond Park Core Project 8.Stream Restoration 3 PROJECT NAMESTART STATUSCOMMENTS DATE Oasis Park Grant Approach 9.Water Quality Improvements CP Dale East Grant Approach 10. Wetland Restoration CP Dale EastGrant Approach CP North Grant Approach CP Victoria East Grant Approach Langton Lake Park Core Project Reservoir Woods ParksCore Project Villa Park Core Project Ladyslipper Park Core Project Acorn Park Grant Approach Willow Pond Park Grant Approach Owasso Hills ParkGrant Approach Pocahontas Park Grant Approach Valley Park Grant Approach 11. Woodland/Forest Restoration CP Dale East Core ProjectHANC project 2-21-15 CP Lexington Core Project CP North Grant Approach CP Victoria East Grant Approach Langton Lake Park Grant Approach Reservoir Woods Park Core Project Villa Park 9/29/14Core Project Ladyslipper Park Grant Approach Oasis Park Grant Approach Volunteer effort only at this point Acorn Park Core Project Applewood Park Grant Approach Willow Pond ParkGrant Approach Volunteer effort at this point Materion Park Grant Approach Cottontail Park Grant Approach Pioneer Park Grant Approach Pocahontas Park Grant Approach Valley Park Grant Approach Tamarack Park Grant Approach Rosebrook Park Grant Approach Autumn Grove Park Grant Approach Woodhill Park Grant Approach Evergreen Park Grant Approach Owasso Hills Park Grant Approach K.DISC GOLF COURSE Improvements Fall 20142014 & 2015 project 4 PROJECT NAMESTART STATUSCOMMENTS DATE Design complete Marking course Equipment ordered L.PATHWAYS/SIDEWALKS County B2 and Victoria 100%complete-10/2014 completion restoration to be -4 benches finished in installed spring -Punch list items County B 100% complete10/2014 completion VARIOUS PARKS Pocahontas Park 100% complete10/2014 completion Howard Johnson Park100% complete10/2014 completion Langton Lake Park 100% complete Upper Villa Park 2015 project Mapleview Park 2015 project Evergreen Park 2015 project M. PLAYGROUNDS Community build emphasis Acorn Park Fall 2014 95% completeCommunity build 10/25/2014 Bruce Russell Park 2015 project CP Lexington 2015 project CP Victoria West 2015 project CP Victoria East-Ballfields Fall 2013100% complete-Overhead netting Howard Johnson Park Spring 100% complete Community build 2014 Langton Lake Park at C2Summer 100% complete 2014 Langton Lake Park at Fall 2014100% complete Community build Ballfields Mapleview Park 2015 project Materion Park Spring Complete Community build 2014 Oasis Park 2015 project–playground out-community build scheduled for May 30, 2015 Tamarack Park 2015 project- neighborhood discussions to occur prior Upper Villa Park2015 project N.PROPERTY ACQUISITION 5 PROJECT NAMESTART STATUSCOMMENTS DATE Hamline and Lydia –ClosingWill be capping wells and Moundsview property occurred reviewing landscape work 1/21/15to be done to make it usable SW Roseville Need to identify property and/or improvements Green-project underway Orange –prep work being done Red-not started Purple-complete –with punch list items TBC= To Be Completed 6 Kara Thomas From:noreply@civicplus.com Tuesday, May 19, 2015 9:07 PM Sent: To:*RVParksCommission Subject:Online Form Submittal: Contact Parks and Recreation Commission If you are having problems viewing this HTML email, click to view a Text version. Contact Parks and Recreation Commission Please complete this online form and submit. Subject:* golf course Contact Information Name:* roger hess jr Address:* City: State: Zip: Roseville MN55113 How would you prefer to be contacted? Remember to fill in the corresponding contact information in the fields below.* ( ) Email ( ) Phone ( ) Letter (X) No need to contact me Phone Number: Email Address: Please Share Your Comment, Question or Concern* parks and rec commission member, it was quite interesting to tour the golf course during your last meeting. the city has some very knowledgeable and dedicated employees working there, especially the superintendent - i don't know what you will do when his time there ends! it was clear to me that a financial loss in 2015 of an estimated $86,745 is very acceptable considering all the people who use this facility. this is one parks and rec facility that is relatively cheap to keep around. even if you sold the land for $3,000,000, it would be just a drop in the bucket of one year's city budget! so, let's look at financial numbers if the golf course was not in operation. it appears that the city has been draining cash from the golf course for years to pay for other city operations, which is why the golf course fund has been going down every year. the full and 3/4 time employees would not be fired if the course closed as they provide services throughout the year for the parks and rec department outside of the golf course, so their full salaries ($194,100) would need to be funded another way. the outrageous administration fee of $20,000 would need to be funded in another way, since no one in IT, HR, or finance would be fired if the course closed. so, let's look at the real financial condition of the golf course if we took out those expenses which the city would have whether or not the golf course existed. using the 2015 budget numbers which show a projected loss of $86,745 and adding back $194,100 in regular salaries (and related expenses), adding back depreciation of$34,000, adding back $17,000 in administration expense ($3,000 seems more realistic which would be $600 for IT, $600 for internet service, and $1,800 for payroll of 10 seasonal 1 employees for 12 pay periods), assuming six months of golf course operation, would change the loss of $86,745 to a positive cash flow of $158,355, which would be plenty of money for the golf course to pay for the improvements it needs. if the golf course was allowed to keep it's positive cash flow for two years, you could replace the HVAC and bathrooms in the clubhouse and spruce up the overall look of the facility. because the golf course exists, many expenses that would normally be paid by property taxes are currently being paid by the golf course. without the golf course, taxpayers would need to pay the $194,100 in regular salaries and the $20,000 administration fee. thanks again for the opportunity to tour the golf course and have a great day! roger roger hess jr Unless restricted by law, all correspondence to and from Roseville City government offices, including information submitted through electronic forms such as this one, may be public data subject to the Minnesota Data Practices Act and/or may be disclosed to third parties. 2 Woodbury's municipal golf emerges from the rough, financially speaking Given three years to shed its losses, or else, Woodbury’s Eagle Valley Golf Course is seeing a bit more green. MAY 9, 2015 —3:31PM New Life Academy sophomores Sydney Sheridan, Kristine Nelson, Nicole Hager and Sidney Fortunato practiced at Woodbury’s Eagle Valley Golf Course. david.a.peterson@startribune.com Story and photos byDavid Peterson • Wally Bomgren, coach of the new girls’ golf team at New Life Academy in Woodbury, doesn’t want to offend any of the courses the team plays on, but he’scertain of which one his players like best: Woodbury’s municipal course, Eagle Valley. “It’s the nicest,” he said. “Scenic views. There’s water. There’s a real variety to the holes, and there’s wildlife —our girls get chased by geese, constantly.” Bomgren was surprised to hear that the course he sees today, with its country-club ambience of soft leather chairs in the lounge, was on the financial brink just a few years ago and given three years to turn things around. But it has —thanks in part to discounts that have the club selling thousands more rounds than it used to. Greeter Bob Dolan touched up the windshields of golf carts after a brief rain at Eagle Valley. Four years ago, the course was on a downward slide, but is looking good again. All in all, said city parks director Bob Klatt, “the course is now operating very successfully. We’ve had good seasons and good revenue.” A big change Four years ago, it wasquite the opposite. “By far, 2011 was the worst ever in our existence,” said Dan Moris, head pro and supervisor of golf operations. It began the year before as rounds sold began dropping off fast, and then Mother Nature delivered a blow: the biggest single-day November snowfall in nearly 20 years. “We went from 65 degrees one day in the fall, with greens still trying to grow, to nine inches of snow three days later,” Moris said. “It suffocated the grass. We spent the whole spring trying to regrow the greens. We seeded them three times. That year was brutal.” City officials were tiring of financial problems, and put the golf course on a three-year recovery clock: Get your act together, or risk getting out of the business altogether. Things began to turn around in 2012, with its miraculously early spring. Golfing at Eagle Valley soared. Even last year, with an abnormally wet June, notably on weekends, the course experienced a jump of well over 4,000 rounds played compared to 2011. New Life Academy golfers Nicole Hager and Kristine Nelson examined a scorecard as coach Wally Bomgren watched. Late in 2014, a financial weight was lifted. The City Council found the moneyto buy out debt, save heavily on interest costs, and put the course on a firmer footing. “The funds for the debt retirement came from city reserves and resulted in substantial interest savings of $832,180, the largest savings the city has experienced in calling a debt issuance,” said city spokesman Jason Egerstrom. The course’s “key performance goal,” he said, “is maintaining a 20 percent or greater annual operating profit. The course has exceeded that goal for three straight years: 25 percent in 2012; 22percent in 2013 and 25 percent in 2014.” Staffing got slimmer with the loss of a general manager position. The cost of play dropped: Fridays, weekends and holidays after noon went from higher weekend rates to lower weekday rates. Memberships in the Royal Club, which offers greens fee discounts, were reduced for Woodbury residents. Memberships jumped from 332 in 2011 to more than 500 in the following three years. A club card is $90 for residents and $110 for nonresidents. It pays for itself after five rounds played in a season. “With the Royal Club membership,” Moris said, “you can ride \[play while riding a cart instead of walking\] for 38 bucks. That’s attractive to people.” ‘More inviting’ While the cost dropped, improvements were made to the clubhouse to give it a more luxurious feel. “We did an interior renovation. The carpet and painting had been there for 15, 17 years, ugly green carpeting, and we’ve made improvements,” Moris said. “That was important. “Those leather chairs you’re seeing have only been here for a year. It used to be just little tables all around. We tried to make it inviting. We want people to have a beer and a sandwich on our revenue side, so let’s make it inviting.” In retrospect, he said, the course opened at just about the worst time it could have —July 1998, as courses were opening across the region and supply began to outpace demand. After 9/11, he said, the corporate market crashed. Then the Great Recession hit. Between them, you saw a lot fewer expense-account Fridays. Now, coursesare closing all across the metro. In suburbs, municipal golf exists in a slightly precarious position: it’s considered enough of an elite amenity that cities are reluctant to oversubsidize it while turning away requests for funding of other projects or programs. Still, Egerstrom said, the debt buyout was considered to be a good decision. A task force decided that “the golf course is a valuable asset for the community —for recreation, quality of life and for the property values around it —and therefore was worth preserving and continuing to operate.” So far this year, rounds played are up 100 percent from the same period last year, mostly because of great weather, officials say. “The last three days,” Morissaid early last week, “Friday-Saturday-Sunday, we were pushing 700 rounds played. Typically, this time in May, it could be as little as just a couple of hundred.”