10.3. SR 06-06-2016 EOty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 10.3
Agenda Section Meeting Date Prepared by
Work Session June 6, 2016 Cal Portner, City Administrator
Item Description Reviewed by
Pinewood Golf Course Michael Hecker, Parks and Recreation Director
Reviewed by
Action Requested
Discuss and provide staff direction regarding Pinewood Golf Course.
Background/Discussion
City Council first discussed Pinewood options at the April 18 work session. Consensus was for the city
not to operate the course and for staff to bring back information at future work sessions to discuss
options. Based on feedback received at the April meeting, staff has narrowed the options first discussed
from six to the following three:
1) Hire a consultant to review the operations and amenities of Pinewood. The consultant could
make recommendations on a more efficient golf operation in addition to diversifying the use of
the course to a wider audience. They can provide a basic feasibility study with research and
assessments of the current state as well as the potential opportunities,including re-purposing the
course in non-traditional ways.
2) Market the course for sale to potential developer(s)
The Pinewood property holds value to a developer as a potential housing development. Utilizing
the recent appraisal study, the approximate value of the land to a residential developer is
$450,000. The property is currently zoned R-1 c and supports lots down to 80 feet wide and
11,000 square feet. Sewer and water will be included as part of any development on the property.
Prior to approval as a residential development the Comprehensive Plan would need to be
amended to support residential uses,which could be initiated by the city.
The Pinewood Estates Second Addition plat from 2005 met R-1c standards and included 56
single-family homes. Using that plan as an example, the taxable value would be approximately
$205,000 to $225,000.
Alternatively, the city could plat the parcels and develop the property to a given point,prior to
sale of the land. This could include recording the final plat and paying all development fees prior
to sale or constructing the roadway in installing the utilities. Selling this type of product to a
developer or building may prove difficult as the plan laid out by the city may not be marketable
for a developer.
POWERED 6T
A IR
3) Market RFPs for private-market golf management and/or lease
Staff would need to develop a Request for Proposal (RFP) and market to golf management firms
and existing golf course operators. Staff's initial research has found that most golf operators will
expect a fee minimum in the range of$40,000 - $60,000 or higher depending on equipment
availability within the RFP process.
The Wilson Golf Group indicated,based on Pinewood financials from 2012 and 2013, most golf
operators will not be interested in a purchase or lease option. Staff identified a few 18- to 27-
hole leased courses but no 9-Hole course leases in the Twin Cities area. The Executive 9-hole
City of New Hope Golf Course pursued a lease option six years ago and was not successful
because they lacked the space for a driving range.
A Golf Management firm such as Wilson Golf Group could assist with the operations of
Pinewood through a management contract estimated to cost at least$40,000. This might be an
option to get the course up and running more efficiently for 2017. The cost of a golf course
management contract would be in addition to the cost of operations.
Michael will make a presentation on these options for discussion. It will start with a discussion on
golfing trends, Pinewood history and analysis, and a discussion on department subsidy levels.
Financial Impact
N/A
Attachments
■ Pinewood Golf Financials for 2012 and 2013
N:APublic Bodies\Agenda Packets\06-06-2016\Final\x10.3 sr Pinewood Golf Course ws.docx
5-24-2016 03:58 PM CITY OF ELK RIVER PAGE: 2
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: DECEMBER 31ST, 2012
222-PINEWOOD GOLF COURSE
100.00% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
REVENUES BUDGET PERIOD ACTUAL BUDGET BALANCE
Pinewood Golf Course
--------------------
Charges for Services
222-3-0000-3461 Recreation Fees 16,500.00 0.00 16,019.00 97.08 481.00
222-3-0000-3467 Concessions 16,000.00 0.00 16,888.32 105.55 ( 888.32)
222-3-0000-3469 Other Sales 3,500.00 0.00 5,499.13 157.12 ( 1,999.13)
222-3-0000-3476 Green Fees 120,000.00 0.00 102,755.33 85.63 17,244.67
222-3-0000-3477 Membership Fees 16,500.00 0.00 17,085.00 103.55 ( 585.00)
222-3-0000-3478 Golf Cart Rental 18,500.00 0.00 23,792.00 128.61 ( 5,292.00)
222-3-0000-3479 Tournaments 5,000.00 0.00 4,101.29 82.03 898.71
TOTAL Charges for Services 196,000.00 0.00 186,140.07 94.97 9,859.93
Other Revenue
222-3-0000-3629 Miscellaneous Revenue 0.00 ( 220.00) 0.00 0.00 0.00
TOTAL Other Revenue 0.00 ( 220.00) 0.00 0.00 0.00
Sales
222-3-0000-3792 Cash Over 0.00 0.00 33.14 0.00 ( 33.14)
TOTAL Sales 0.00 0.00 33.14 0.00 ( 33.14)
Other Financing Sources
Transfers In
222-3-0000-3922 Transfer-General Fund 40,500.00 46,578.07 46,578.07 115.01 ( 6,078.07)
TOTAL Transfers In 40,500.00 46,578.07 46,578.07 115.01 ( 6,078.07)
TOTAL Pinewood Golf Course 236,500.00 46,358.07 232,751.28 98.41 3,748.72
TOTAL REVENUE 236,500.00 46,358.07 232,751.28 98.41 3,748.72
5-24-2016 03:58 PM CITY OF ELK RIVER PAGE: 3
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: DECEMBER 31ST, 2012
222-PINEWOOD GOLF COURSE
100.00% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL BUDGET BALANCE
Golf Course
Personal Services
222-4-5300-4101 Regular Pay 87,100.00 8,440.45 84,984.54 97.57 2,115.46
222-4-5300-4103 Part-time Pay 29,900.00 55.25 28,192.97 94.29 1,707.03
222-4-5300-4104 PERA 8,500.00 412.75 7,244.50 85.23 1,255.50
222-4-5300-4105 FICA 7,250.00 351.66 6,959.07 95.99 290.93
222-4-5300-4107 Medicare 1,700.00 82.23 1,627.42 95.73 72.58
222-4-5300-4108 Insurance 6,100.00 465.00 5,580.00 91.48 520.00
222-4-5300-4109 Workers Comp 1,850.00 0.00 1,641.75 88.74 208.25
222-4-5300-4110 Re-employment Compensation 0.00 0.00 4,417.55 0.00 ( 4,417.55)
TOTAL Personal Services 142,400.00 9,807.34 140,647.80 98.77 1,752.20
Supplies
222-4-5300-4212 Fuels & Lubs 4,500.00 22.42 4,919.25 109.32 ( 419.25)
222-4-5300-4217 Uniform Allowance 500.00 105.29 494.16 98.83 5.84
222-4-5300-4219 Operating Supplies 29,700.00 1,553.38 30,864.35 103.92 ( 1,164.35)
222-4-5300-4259 Other Merchandise For Resale 12,000.00 0.00 11,440.87 95.34 559.13
TOTAL Supplies 46,700.00 1,681.09 47,718.63 102.18 ( 1,018.63)
Other Services & Charges
222-4-5300-4321 Telephone 2,400.00 400.30 2,118.42 88.27 281.58
222-4-5300-4331 Travel, Conferences & Schools 450.00 0.00 17.69 3.93 432.31
222-4-5300-4349 Advertising/Marketing 5,000.00 0.00 5,012.65 100.25 ( 12.65)
222-4-5300-4361 Insurance 12,100.00 0.00 11,257.00 93.03 843.00
222-4-5300-4389 Utilities 6,550.00 884.67 6,461.77 98.65 88.23
222-4-5300-4401 Bldg Repair/Maint Services 8,950.00 6,822.08 7,343.52 82.05 1,606.48
222-4-5300-4404 Equip Repair/Maint Services 4,600.00 537.20 4,929.78 107.17 ( 329.78)
222-4-5300-4415 Equipment Rental 1,350.00 38.14 952.40 70.55 397.60
222-4-5300-4437 Tates & Licenses 1,000.00 117.09 893.25 89.33 106.75
222-4-5300-4438 Credit Card Fees 5,000.00 91.14 5,398.37 107.97 ( 398.37)
TOTAL Other Services & Charges 47,400.00 8,890.62 44,384.85 93.64 3,015.15
Capital Outlay
Debt Service
TOTAL Golf Course 236,500.00 20,379.05 232,751.28 98.41 3,748.72
TOTAL Culture & Recreation 236,500.00 20,379.05 232,751.28 98.41 3,748.72
TOTAL EXPENDITURES 236,500.00 20,379.05 232,751.28 98.41 3,748.72
REVENUES OVER/(UNDER) EXPENDITURES 0.00 25,979.02 0.00 0.00
5-24-2016 04:00 PM CITY OF ELK RIVER PAGE: 2
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: DECEMBER 31ST, 2013
222-PINEWOOD GOLF COURSE
100.00% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
REVENUES BUDGET PERIOD ACTUAL BUDGET BALANCE
Pinewood Golf Course
--------------------
Charges for Services
222-3-0000-3461 Recreation Fees 17,000.00 360.00 13,547.03 79.69 3,452.97
222-3-0000-3467 Concessions 16,000.00 41.29 15,547.80 97.17 452.20
222-3-0000-3469 Other Sales 3,500.00 74.60 5,194.47 148.41 ( 1,694.47)
222-3-0000-3476 Green Fees 110,000.00 1,692.54 93,100.68 84.64 16,899.32
222-3-0000-3477 Membership Fees 17,000.00 0.00 12,772.90 75.13 4,227.10
222-3-0000-3478 Golf Cart Rental 20,000.00 56.60 20,790.83 103.95 ( 790.83)
222-3-0000-3479 Tournaments 5,000.00 0.00 4,445.84 88.92 554.16
TOTAL Charges for Services 188,500.00 2,225.03 165,399.55 87.75 23,100.45
Other Revenue
222-3-0000-3629 Miscellaneous Revenue 0.00 ( 4.50) 0.00 0.00 0.00
TOTAL Other Revenue 0.00 ( 4.50) 0.00 0.00 0.00
Sales
222-3-0000-3792 Cash Over 0.00 ( 9.26) 0.00 0.00 0.00
TOTAL Sales 0.00 ( 9.26) 0.00 0.00 0.00
Other Financing Sources
Transfers In
222-3-0000-3922 Transfer-General Fund 44,800.00 47,026.96 47,026.96 104.97 ( 2,226.96)
TOTAL Transfers In 44,800.00 47,026.96 47,026.96 104.97 ( 2,226.96)
TOTAL Pinewood Golf Course 233,300.00 49,238.23 212,426.51 91.05 20,873.49
TOTAL REVENUE 233,300.00 49,238.23 212,426.51 91.05 20,873.49
5-24-2016 04:00 PM CITY OF ELK RIVER PAGE: 3
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: DECEMBER 31ST, 2013
222-PINEWOOD GOLF COURSE
100.00% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL BUDGET BALANCE
Golf Course
Personal Services
222-4-5300-4101 Regular Pay 66,250.00 8,162.80 66,495.55 100.37 ( 245.55)
222-4-5300-4103 Part-time Pay 53,750.00 0.00 48,577.61 90.38 5,172.39
222-4-5300-4104 PERA 8,700.00 369.42 6,731.53 77.37 1,968.47
222-4-5300-4105 FICA 7,450.00 319.30 7,072.86 94.94 377.14
222-4-5300-4107 Medicare 1,750.00 74.67 1,654.14 94.52 95.86
222-4-5300-4108 Insurance 6,250.00 484.01 5,808.12 92.93 441.88
222-4-5300-4109 Workers Comp 1,700.00 ( 122.00) 1,592.75 93.69 107.25
222-4-5300-4110 Re-employment Compensation 0.00 0.00 4,310.60 0.00 ( 4,310.60)
TOTAL Personal Services 145,850.00 9,288.20 142,243.16 97.53 3,606.84
Supplies
222-4-5300-4212 Fuels & Lubs 5,000.00 0.00 4,384.22 87.68 615.78
222-4-5300-4217 Uniform Allowance 600.00 0.00 619.79 103.30 ( 19.79)
222-4-5300-4219 Operating Supplies 28,150.00 89.85 24,138.79 85.75 4,011.21
222-4-5300-4259 Other Merchandise For Resale 9,500.00 0.00 11,379.15 119.78 ( 1,879.15)
TOTAL Supplies 43,250.00 89.85 40,521.95 93.69 2,728.05
Other Services & Charges
222-4-5300-4321 Telephone 2,400.00 236.51 1,371.34 57.14 1,028.66
222-4-5300-4331 Travel, Conferences & Schools 250.00 0.00 167.81 67.12 82.19
222-4-5300-4349 Advertising/Marketing 5,000.00 400.00 5,002.20 100.04 ( 2.20)
222-4-5300-4361 Insurance 10,700.00 0.00 7,781.50 72.72 2,918.50
222-4-5300-4389 Utilities 6,600.00 936.74 6,613.90 100.21 ( 13.90)
222-4-5300-4401 Bldg Repair/Maint Services 8,000.00 40.08 487.98 6.10 7,512.02
222-4-5300-4404 Equip Repair/Maint Services 4,000.00 0.00 2,348.02 58.70 1,651.98
222-4-5300-4415 Equipment Rental 1,350.00 77.87 627.41 46.47 722.59
222-4-5300-4437 Tames & Licenses 900.00 0.00 1,168.18 129.80 ( 268.18)
222-4-5300-4438 Credit Card Fees 5,000.00 36.22 4,093.06 81.86 906.94
TOTAL Other Services & Charges 44,200.00 1,727.42 29,661.40 67.11 14,538.60
Capital Outlay
Debt Service
TOTAL Golf Course 233,300.00 11,105.47 212,426.51 91.05 20,873.49
TOTAL Culture & Recreation 233,300.00 11,105.47 212,426.51 91.05 20,873.49
TOTAL EXPENDITURES 233,300.00 11,105.47 212,426.51 91.05 20,873.49
REVENUES OVER/(UNDER) EXPENDITURES 0.00 38,132.76 0.00 0.00
Pinewood Golf Course
Trends
Golf
24% participation reduction from peak in 2002 to
current 23 million in 2015
1% reductions in 2015 golf course supply (203
permanent closures)
*National Golf Foundation
Minnesota –25 closures *
Star Tribune
Golf course closures will continue
All golf courses are capital and maintenance intensive
Golf course management firms are hired with mixed
results
Golf Trends
Average 18-hole courses require constant capital
investments of $120,000 annually
The reasons golf has declined the past decade and will
continue to decline:
•
Time
•
Interest
•
Money
•
Ability
Golf Trends
Average 18-hole courses require constant capital
investments of $120,000 annually
The reasons golf has declined the past decade and will
continue to decline:
•
Time
•
Interest
•
Money
•
Ability
Municipal Golf Roots
Originally became a service and an amenity
~Similar to a library or park
Goal not to make money –daily fee “member for the
day” profit driven model
Municipal Golf Courses since 2002
~Increasing pressure to perform financially
~Enterprise Fund Based
Municipal Golf 2016
Compound low participation rates with
~Deteriorating infrastructures
~Saturated markets
~Unrealistic pressures to be sustainable
~daily fee “member for the day” profit driven business
model continues
Municipal Golf Participation
* 92% of tax paying community does not play golf
Pinewood –less tax payers than national average play
golf based on 2013 pass sales
157 NR & 127 R
o
* (National Golf Foundation 2016)
A Tough Task: Aligning Common Interests
Golfers –
Cheap Golf
City Council –
Taxpayers –
Subsidy or NO
No Support
Subsidy
Course Management and
Golf Course residents –
Renovate and Upgrade
OPEN
Regional Executive Nine Hole Courses
NAMECITYYEAR BUILTGREEN FEESSTATUS
BrooklandBrooklyn Park196014.00
Brightwood HillsNew Brighton196915.00
Kate HavenCircle Pines198115.00Sold to home developer
in 2013
CedarholmRoseville195113.75Needs new clubhouse
Island LakeShoreview199515.00
New HopeNew Hope196314.50
CenterbrookBrooklyn Center197116.00
* Stone CreekFoley199814.00Needs new clubhouse
City View Cold Springs199915.00Now Closed
Veterans Public Golf St. Cloud13.00City took over course in
Course1990
* Fairway ShoresZimmerman199813.89
* Boulder Ridge St. Cloud200115.00
* Non city operated public courses
Parks and Recreation Program Allocation
Pinewood Analysis
Market Conditions. 2005 analysis of both national and local
market characteristics indicates a combination of declining
participation rates and declining rounds played.
Pinewood draws from a relatively small localized market. The golf
visits come from within the local community or immediate border
communities.
Executive length golf courses appeal to beginner and intermediate
level golfers who tend to participate on good weather days only.
Pinewood Analysis (cont.)
Pinewood relies on senior age golfers. To attract and retain this
category of golfer, discounting rates will need to continue.
*McMurchieGolf Management 2005
As a consequence, the average rate achieved will decrease over
o
time with no appreciable upside to round volume.
Revenue from ancillary businesses is very restricted.
No space for driving range
o
Food sales are restricted to packaged items
o
Pinewood Analysis (cont.)
The clubhouse and irrigation system requires a high level of
capital investment –2005 analysis.
Clubhouse with Banquet Facility for 100 (including kitchen)
Estimated at $712,000 -292 Design Group 2012
o
Initial observation –better shape than expected
o
Possible mold issues?
o
Maintenance Facility similar size estimated at $180,000-2012
Requires equipment investments that have been delayed
Equipment replacement schedule –(next slide)
o
Pinewood Equipment Replacement Schedule
Pinewood Equipment AssetsReplacement Year
Unit #Equipment TypeYearPurchase Value20162017201820192020
785PCushman Classic Turf Truckster$13,000----$22,000
Club Car Utility Cart$12,000-----
784PToro Groundmaster 3500D2006$31,385-$35,000---
782PToro Reelmaster 5200D2006$35,200-----
781PToro Workman 21102006$9,975--$15,000--
783PToro Greensmaster 31502006$26,645$30,000----
786PToro Greensmaster 31502011$27,765---$32,000-
EZ Go Golf Cart (12 carts)2006$42,480$27,000$27,000---
Toro Greens Aerator$4,000-----
Lely Fertilizer Sprayer$5,000--$7,000--
Smithco Sprayer$1,000-----
Total$207,450$59,016$64,017$24,018$34,019$24,020
Five Year Replacement Total$205,090
Pinewood Clubhouse Building Maintenance
Staff
Vendor Materials Option
Activity
EstimateExpenseTotal
HoursRateExpense
Carpet Cleaning8$26.69$214$600-
Interior Cleaning16$26.69$427--
Interior Painting80$26.69$2,135$5,000$500
Exterior Cleaning80$26.69$2,135-$500
Re-siding Exterior---$20,000-
Clubhouse Grounds Maintenance60$26.69$1,601--
Exterminator---$1,500-
Staff Option Total244$6,512$1,500$1,000$9,012
Vendor/Staff Option Total156$4,164$7,100$500$11,764
Vendor/Staff Option w/ Re-Siding Total76$2,028$27,100-$29,128
Estimates do not include any interior repairs or furnishings, nor any construction to address code violations, mold
mitigation or plumbing repairs.
Pinewood Golf Course Expenditures -2015
Staff ResourcesInvoices
Pay
NameRateHoursTotalInvoice DateVendorPurposeExpense
Building
Steve Stoffers$39.2810$392.8020-Jan-15House Rescuers LLCWinterization$150.00
Josh Baas$33.39140$4,674.6012-Feb-15Jason YonakMower Maintenance$835.00
Phil Barsody$34.9723$804.3119-Mar-15MTI DistributingChemicals$1,850.03
Ryan Heid$9.50234$2,223.0020-Mar-15MTI DistributingChemicals$418.18
Scott Falls$12.5074$925.0031-Mar-15MTI DistributingMower Parts$71.34
Trevor Reibel$9.5013$123.5020-Apr-15MTI DistributingChemicals$89.00
Nick Leonard$9.508$76.0021-Apr-15MTI DistributingMower Parts$252.42
Mark Bruflodt$10.0014$140.009-Jul-15Metro TestingRPZ Inspection$161.54
Greg Pijahn$14.5022$319.0026-Jul-15MenardsIrrigation Parts$9.99
Joey Grillo$9.508$76.0013-Oct-15MenardsIrrigation Parts$22.69
Cody Citrist$9.509$85.5014-Oct-15MenardsIrrigation Parts$4.81
Administration--$1,763.6116-Oct-15Great Northern Landscapes IncIrrigation Blowdowns$992.00
Labor Total555$11,603.32Invoices Total$4,857.00
Total Expenditures -2015$16,460.32
Pinewood Golf Course Expenditures Estimate -2016
Staff Resources
ActivityPay RateHoursTotalVendor Contract/MaterialsExpense
Mowing Greens/Tee-Box$35.24324$11,418Equipment Parts/Maintenance$2,000
Mowing
Rough/Fairway$35.24288$10,149Chemicals$3,500
Irregation
Maintenance$35.2440$1,410Irrigation Blowdowns$1,200
Chemical Application$35.2480$2,819Professional Turf Consultations$1,500
Administration--$3,095--
Anticipated Labor Total732$28,891Anticipated Invoices Total$8,200
Total Anticipated Expenditures -2016 $37,091
Assumes an increase in turf mowing September-November to lower grass height of playing surfaces. Also assumes increase in
chemical application to support higher quality turf. Also assumes all full time staff to ensure proper maintenance.
Pinewood Options
1.Hire a consultant to review the operations and
amenities of Pinewood
2.Market the course for sale to potential developer(s)
3.Market an RFP for golf management and/or lease
Option 1) Hire a consultant to review the operations
and amenities of Pinewood
Recommendations on a more efficient golf operations
including methods to increase usage by non-golfers
~Irrigation upgrades, turf reductions, review practice areas
~Incorporate traditional golf activities with non-traditional golf
options such as walking trails, picnic areas, sports activities
~Recommendation may include “no golf” as option
This option requires further exploration and cost options
Option 2) Market the course for sale to potential
developers
Approximate value to developer is $450,000
Taxable Value could be $205,000 to $225,000
City could plat the parcels to assist in sale of land
Option 3) Market RFP’s for private market golf
management and/or lease
Develop an RFP and market to golf management firms
~Golf management firm assist with operations –fee?
~An option to review efficiencies and start up in 2017?
~City is still responsible for operations through a contractor or
internal staff?
~Capital and Equipment costs are city responsibility
~Next slides for contractor responsibilities and subsidy levels
This option requires further exploration and fee options
Option 3) Market RFP’s for private market golf
management and/or lease
Develop an RFP and market to golf related firms a lease
~Initial research indicates fee subsidy of $40,000 -$60,000?
~Provide an action plan for maintenance?
~Capital and Equipment costs are still city responsibility?
~Low or NO interest in this option (none in metro area)
~Next slides for contractor responsibilities and subsidy levels
This option requires further exploration and cost options
SubsideyLevels
Pinewood Subsidy Level 2013
2013 Revenue $ 165,399.55
Transfer from General Fund
$ 47,026.96
(subsidy)
$ 212,426.51
2013 Operating Budget$ 212,426.51
Elk River Ice Arena Subsidy Level 2013
2013 Revenue $ 689,914
Concession Sales24,302
2013 Expenses$ 569,462
OperatingIncome$ 144,754
Transfer (Subsidy)$ 0
Capital Outlay$ 76,168
Net Income$ 68,586
Senior Activity Center Subsidy
2015 Operating Budget$ 242,950
Maintenance Wages$ 12,408
$ 255,358
2015 Revenue$ 28,422
Total Costs Subsidy$ 226,936
$125.80 per senioractivity center user
$226,936 divided by 1,804 unique persons =
Youth Athletic Complex Annual Operating Costs
Salary Equipment Equipment Total
ActivityStaffHoursFrequencyRateMaterialsRateEquipment
TotalRate/HourTotalExpenditures
MowingFTE829$35$8,176--4010 Wide Area Mower$15$3,480$11,656
TrimmingSeasonal629$10$1,740--3/4 Ton Truck, Weed Whips$12$2,088$3,828
GarbageSeasonal129$10$290Bags/Pick-up$5003/4 Ton Truck w/Lift$10$290$1,080
Infield MaintenanceFTE1029$35$10,220Aglime$3,000Tractor$15$4,350$17,570
3/4 Ton Truck,
Field StripingFTE329$35$3,066Paint$2,000Cromer/Chalker$15$1,305$6,371
Top DressingFTE161$35$564Soil$2,000Tractor$15$240$2,804
SeedingFTE162$35$1,128Seed$1,500Tractor$15$480$3,108
Playing Field EdgingFTE163$35$1,692--Edger$5$240$1,932
Herbicide ApplicationFTE48$35$1,128Herbicide$1,000Tractor$15$480$2,608
Fertilizer ApplicationFTE64$35$846Fertilizer$2,500Tractor$15$360$3,706
Infield Lip RemovalFTE601$35$2,114Sod$1,000Sod Cutter$2$120$3,234
Road/Parking Lot GradingFTE44$35$564--Grader$45$720$1,284
Irrigation Start-upFTE81$35$282Parts$2503/4 Ton Truck w/Lift$10$80$612
Portable ToiletsContract----5 Units$4,480---$4,480
Utilities-----Water/Electric$12,000---$12,000
AdministrationFTE---$9,429-----$9,429
Miscellaneous MaintenanceFTE201$35$705Materials$1,0003/4 Ton Truck$10$200$1,905
Miscellaneous MaintenanceSeasonal201$10$200--3/4 Ton Truck$10$200$400
Total$42,142$31,230$14,633$88,005
Miscellaneous Maintenance includes activities such as vandalism repair, maintenance to concession stand, fence maintenance and repairs, tree trimming, lighting repairs,
•
etc.
Materials for miscellaneous maintenance includes items such as replacement parts for facilities (bases, pads for goal posts, etc.), paint for concession stand, graffiti remover,
•
replacement signs, etc.
Equipment Rates are approved rates based on MN DNR and MN DOT rate schedule; include type of equipment, fuel, maintenance, insurance and replacement.
•
Administration includes park director, park superintendent and recreation staff time for scheduling and oversight.
•
Orono Park Annual Operating Costs
Salary Equipment Equipment Total
ActivityStaffHoursFrequencyRateMaterialsRateEquipment
TotalRate/HourTotalExpenditures
MowingFTE429$35$4,088--4010 Wide Area Mower$15$1,740$5,828
TrimmingSeasonal629$10$1,740--3/4 Ton Truck, Weed Whips$12$2,088$3,828
GarbageSeasonal152$10$520Bags/Pick-up$5003/4 Ton Truck w/Lift$10$520$1,540
Playground MaintenanceFTE135$35$1,233Wood Chips$5003/4 Ton Truck w/Lift$10$350$2,083
Beach GroomingFTE216$35$1,128--Tractor$15$480$1,608
Kuss Field MaintenanceFTE129$35$1,022--Tractor$15$435$1,457
3/4 Ton Truck,
Kuss Field MaintenanceSeasonal116$10$160--Cromer/Chalker$15$240$400
Herbicide ApplicationFTE28$35$564Herbicide$250Tractor$15$240$1,054
Fertilizer ApplicationFTE42$35$282Fertilizer$500Tractor$15$120$902
Irrigation Start-upFTE41$35$141Parts$2503/4 Ton Truck w/Lift$10$40$431
Portable ToiletsContract----4 Units$2,000---$2,000
Snow Plowing (Trails)FTE0.515$35$264--3/4 Ton Truck w/Lift$10$75$339
Snow Plowing (Parking)FTE115$35$529Road Salt$1,000Tandem Axel Plow Truck$20$300$1,829
Utilities-----Water/Electric$2,500---$2,500
AdministrationFTE--$3,889-----$3,889
Miscellaneous MaintenanceFTE401$35$1,410Materials$4,0003/4 Ton Truck$10$400$5,810
Miscellaneous MaintenanceSeasonal401$10$400--3/4 Ton Truck$10$400$800
Total$17,369$11,500$7,428$36,297
Miscellaneous maintenance includes activities such as sign installation, vandalism repair, maintenance to shelters, tree trimming, tree watering, tree removals, lighting
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repairs, dog park maintenance, etc.
Materials for miscellaneous maintenance include items such as stain for shelters, cleaning supplies, graffiti remover, replacement signs, replacement parts for facilities,
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trees, etc.
Equipment rates are approved rates based on MN DNR and MN DOT rate schedule; include type of equipment, fuel, maintenance, insurance and replacement.
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Administration includes Park Director, Park Superintendent, and Recreation staff time for scheduling and oversight.
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The Cost of Country Club Golfing
ClubInitiation Fee Annual Dues ExpectationsNotes
Edina Country Club$ 50,000 $ 7,524 * $900/year capital assessment fee 1-2 year waiting list for membership
952-927-7151* $75/month on food/drink
Kim Delaney* $150/year discount program (product in pro shop)
* Driving range $130 -$190 year
Interlachen Country Club$ 60,000 $ 11,280 * $100/mo for food and beverageAnnual dues include operating dues
952-929-1661* Ancillary fees (lockers, range, etc. ) $920/yearand capital reinvestment dues
Eric Dietz, GM
Wayzata Country Club$ 40,000 $ 7,200 * Food/beverage minumum of $100/moStill have to pay for carts $35/9 holes
952-473-8846* Locker fee $120/yearStill have to pay for caddy services
* Capital investment dues $125/mo
The Minnekahda Club$ 60,000 $ 8,280 * $100/mo food (beverage not included)No capital assessment fee at this time
612-926-1601* $150/year locker fee
Dellwood Country Club$ 8,000 $ 6,480 * $600/yr for golf storage, locker, etc.No capital assessment fee -privately
651-426-3218* $50/mo food minimumowned since 2008. Said if their private
Elizia, Guest Membershipinvestor didn't help, they would not break
even.
Potential Contractor’s Responsibility
Provide company biography and history.
Experience, past performance and capacity.
Operators Plan
Include in detail your proposed hours/days of operation.
Proposed fees.
Number of employees and job functions.
Type of concessions to be provided. (Keep in mind that health
code only allows Pinewood to provide packaged food in 2013).
Provide an Action Plan for an overall maintenance program
for Pinewood including tee areas, greens, fairways, roughs and
overall mowing.
Potential Contractor’s Responsibility (cont.)
Equipment: Identify whether you will provide your own
equipment (and include a list), if you will use the City’s
equipment, or a combination of the two, and how the
equipment will be financed (if necessary).
If using the City’s existing equipment, how to develop a lease
agreement?
Financial terms –How to structure a lease with the City
including revenue sharing; if applicable provide audited
financial statements.
Contractor’s Responsibility
Performance bond as required by City.
Make payment on all utilities.
Responsible for irrigation systems.
Indemnify the City of Elk River.
General liability and property damage insurance.
Maintain Worker’s Compensation insurance for its employees.
Acknowledges operator is an independent contractor.
Municipal Golf Facilities need to decide
--innovate, subsidize, sell or close?