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HomeMy WebLinkAbout02/16/1999 ITEM #3. CITY OF APPLE VALLEY PARKS AND RECREATION ADVISORY COMMITTEE February 16, 1999 Minutes of the Apple Valley Parks and Recreation Advisory Committee held February 16, 1999. PRESENT: Acting Committee Chair Charlie Maus; Committee Members Tina Rankin and John DiRico; Parks and Recreation Director Randy Johnson; Finance Director George Ballenger, Valleywood Manager Rick Dodge, Park Maintenance Superintendent Tom Adamini, and Eastview Athletic Association President Lee Strom. ABSENT: Russ DeFauw, Greg Kopischke, and Royal Bakke. ITEM #1. Acting Committee Chair Charlie Maus called the meeting to order at 6:40 p.m. ITEM #2. Approval of Agenda. MOTION: by John DiRico, seconded by Tina Rankin to approve the agenda as presented. VOTE: Yes - 3, No - 0 ITEM #3. Approval of January 1999 Minutes. John DiRico requested the inclusion of his comments under Item 6.B. Valleywood Golf Course Financial Discussion...”Mr. DiRico voiced his opinion against the financial review of Valleywood’s operations. He stated that we’ve never asked for this before, and would feel better having a comptroller doing this. Feel uncomfortable asking for this when we don’t know what we’re looking for.” MOTION: by John DiRico, seconded by Tina Rankin to approve the minutes with the correction. VOTE: Yes - 3, No - 0 1 ITEM #4.A. New Business - Valleywood Financial Report. George Ballenger walked the group through the financial reports included in the committee packets. He reported that Valleywood has turned the corner in the way of a positive fund balance. He recommended that the fund balance be built up to the point of having one and one-half to two times the annual expenditures in reserve. After this fund balance is achieved, then the City should consider paying off the $400,000 loan from the water utility fund. The loan was originally borrowed to construct the course. It cost more to develop the course, than the bonds sold, so the City subsidized the costs with a loan from the utility fund. The agreement was that the course would pay back the loan when it was financially able. As it stands, it is an interest free loan and repayment arrangements are still in the talking stage. The construction bonds were paid off in 1994-95. At the direction of the City Council, both the arena and golf course funds are subsidized in terms of support costs such as payroll and administrative charges. This is a philosophical direction that was chosen by Council when the facilities were constructed. Mr. Johnson and Mr. Ballenger outlined the process for budget preparation, using averages from previous years and educated guesses staff works approximately 18 months in advance for annual budgets. The golf course is very dependent on weather when it comes to revenue, but staff must project revenue to cover expenditures. Mr. Johnson stated that he and Rick Dodge are aware that the city has a hybrid course that is challenging and of a “country club” level, but they also want to serve the average citizen. They struggle to walk the tightrope between the two. Mr. Ballenger reported that City Council, in the beginning, said they just wanted to break even, provide a service to the citizens. Staff reported that the new reservation system has been working well to increase revenue. It has forced people to put their credit card down for reservations, thus cutting down on the no-shows. Unless there are specifics questions or problems, staff will continue along as they have been with the course operations. Charlie Maus stated that he is completely happy in the way it’s going. Mr. Dodge reported that Valleywood has seen a marked decrease in the non-resident season pass renewals for 1999. The price increase approach is starting to accomplish the desired affect of eventually eliminating the non-resident season pass option. To date only 29 of the 1998 (87) non-resident season passes have been renewed. In reference to the outstanding loan, Mr. DiRico stated that he would like to see a plan in place to retire the loan rather than be blindsided by this issue at a later date. Mr. Ballenger agreed that the City would 2 like to have the loan cleaned up, but not at the detriment of the course. Mr. Dodge stated that the course operations can be tweaked, but there are really only two ways to increase revenue - increasing fees, and a clubhouse that will increase the revenue stream. The theory of an indoor driving range possibly sometimes in the future was discussed, with the suggestion that Braemar and Woodbury would be sources of reference for this. As a footnote, Mr. Johnson stated that Russ DeFauw asked to have included in the notes a request that City Council commit to leaving the revenue made by Valleywood be dedicated to the Valleywood fund. Mr. Ballenger doesn’t see the revenue at a level that Council would be interested in at this time. The course is still trying to achieve a reasonable fund balance. There are several months that you can’t play golf, but there are still expenses to cover. In summary, Mr. Ballenger felt that the golf course finances were operating efficiently and in the manner as directed by the City Council. He recommended no major changes at this time. ITEM #4.B. New Business - Park Dedication Fund Report / 1999 Expenditure Request. Mr. Johnson reviewed the memo to the committee included in the meeting packet. The $55,000 requested for the outdoor hockey rinks at Johnny Cake Ridge Road does not include the cost of asphalting them. The Parks and Recreation Department has been approached by groups requesting the rinks be asphalted, but the groups have yet to respond with a donation to the approximately $17,000 needed to do this. Mr. Adamini’s goal is to upgrade all of the outdoor hockey rinks with new boards. He would like to get one in the program rotation each year. Mr. Johnson stated that there is a need to get back into the playground replacement/upgrade rotation again next year. There are still approximately 28 locations that were not replaced with the large playground equipment purchase included in the last bond referendum. The park dedication fund balance, by state law, can be spent only on parks. These funds were collected as park funds. In addition to the $95,000 requested from park dedication for the three items in 1999, the City has also budgeted approximately $1 million toward other ongoing park projects. The $95,000 represents less than 10% of the total park dedication fund balance. MOTION: by John DiRico, seconded by Tina Rankin to recommend authorization of the expenditures. VOTE: Yes - 3, No - 0 3 ITEM #5.A. Old Business - Verbal Update on Park Bond Projects. Mr. Johnson gave an overview of park projects:  The teen center opened Friday, February 12, 1999. Staff intentionally had a quiet opening with a more traditional grand opening planned for later in the spring. Recreation Specialist Bill Bird is working with the local schools to organize a teen advisory council. Staff has also been working from the over 500 teen surveys of last year to help with programming ideas and activities such as mentoring, trips, music programs, etc.  The sport court gymnasium at the Apple Valley Community Center opened January 15th. There are still a few details to be worked out, the sky light should be delivered and installed in the next couple of weeks, etc. Tournament usage should be available approximately April 15 through September 1 each year. Mr. Strom reported that Eastview Athletic Association is considering implementing a summer basketball program and would be happy to use some additional gymnasium space for the program.  According to the construction manager from Bossardt Corporation, the Family Swim Center is on schedule and on budget. Plans are to have a low key quiet opening June 5th, then do a larger opening the following weekend.  Staff hopes to have the southern end of the Johnny Cake Ridge Park complex (by Eastview High School) ready for play by June 15, 1999.  Installation of the last of the playground equipment was finished in the fall. Landscaping to be completed over the spring and summer of 1999.  Staff reports that all projects have been on budget. ITEM #6.A. Other - Summer Employment Opportunities. The Family Swim Center will be using the Ellis Lifeguard program. This program is specifically geared toward water parks. Redwood Pool will continue to use the Red Cross program for the swimming lessons offered there. Committee members were asked to help spread the word, not only for the pool employment opportunities, but for all of the services provided by the Parks and Recreation Dept. ITEM #7. Adjourn. 4 There being no further business, the Park and Recreation Advisory Committee meeting was adjourned. MOTION: by Tina Rankin, seconded by John DiRico to adjourn the meeting at 7:50 p.m. VOTE: Yes - 3, No - 0 5