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6.5. SR 01-22-2019 Request for Action To Item Number Mayor And Council 6.5 Agenda Section Meeting Date Prepared by Presentations, Awards, January 22, 2019 Michael Hecker, Parks and Recreation Director & Recognition Item Description Reviewed by Pinewood Golf Course Update Lori Ziemer, Finance Director Reviewed by Cal Portner, City Administrator Action Requested Presentation and Discussion Background/Discussion The City Council approved the Pinewood Management Agreement on March 6, 2017, for the Elk River Country Club to operate the Pinewood Golf Course. The city pays the Elk River Golf Club a management fee of $4,000 per month during the months of April through September during the length of the two-year contract, 2017-2018. The city pays for all operating expenses and all revenues from Pinewood operations accrue to the city. Chris Singer from the Elk River Golf Club will make a presentation to the City Council on Pinewood’s second year of operations. Financial Impact N/A Attachments  December 2018 Financials The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity -------------- 56.50 431.78488.28586.00230.00 3,287.08 CITY 25,032.0029,135.0829,623.36 (29,623.36) -- 0.60 374.06525.00 5,199.872,169.445,300.006,896.212,510.054,580.751,436.001,849.581,178.091,901.96 ERGC 65,018.6913,172.4990,861.0913,987.0112,668.3268,382.8988,315.90 (11,441.82) 102,302.91 DECEMBER 2017 - 0.60 374.06525.00 5,199.872,169.445,300.006,952.712,941.834,580.751,436.005,136.661,764.091,901.96 YTD 65,018.6913,172.4990,861.0914,475.2925,032.0012,898.3268,382.89 (41,065.18) ACTUAL 117,450.98131,926.27 * ---------------- 239.23 239.23 3,828.98 CITY 24,903.0011,536.7540,268.7340,507.96 (40,507.96) - 27.85 276.33 997.61 400.00 289.00 3,323.735,151.737,381.424,059.487,021.012,738.732,031.905,823.002,568.56 ERGC 10,685.7478,402.6120,693.0212,078.1058,899.3472,778.3884,856.4841,058.10 125,914.58 27.85 276.33 400.00 289.00 550.14 DECEMBER 2018 YTD 3,323.735,151.737,381.424,059.481,236.847,021.012,738.735,860.882,568.56 CITY OF ELK RIVER 10,685.7478,402.6120,693.0212,317.3324,903.0017,359.7558,899.34 ACTUAL 125,914.58113,047.11125,364.44 AS OF: DECEMBER 31, 2018 ------------------- 5.00 REVENUE & EXPENSE REPORT (UNAUDITED) 304.60 309.60 309.60 (309.60) DECEMBER MONTH OF ConcessionsOther SalesGreen FeesLeague FeesMembership FeesGolf Cart RentalCash Over/(Short)Fuels & LubesOperating SuppliesOther Merchandise For ResaleManagement FeeAdvertising/MarketingUtilitiesBuild ing MaintenanceGrounds MaintenanceContractual Svcs - Wages/TaxesEquipment RentalTaxes & LicensesBank/Credit Card Fees $11,536.75 - Irrigation well repairs 222-PINEWOOD GOLF COURSEREVENUES:Charges for Services 222-3-0000-3467222-3-0000-3469222-3-0000-3476222-3-0000-3476222-3-0000-3477222-3-0000-3478222-3-0000-3792TOTAL REVENUE EXPENDITURES:Supplies 222-4-5300-4212222-4-5300-4219222-4-5300-4259TOTAL Supplies Other Services & Charges 222-4-5300-4319222-4-5300-4349222-4-5300-4389222-4-5300-4401222-4-5300-4404222-4-5300-4409222-4-5300-4415222-4-53 00-4437222-4-5300-4438TOTAL Other Services & ChargesTOTAL EXPENDITURESREVENUES OVER/(UNDER) EXPENDITURES * G. 5S Pinewood Golf Course 2017-2018 Elk River Golf Club 2017 Management fees from city 2018 Management fees from city 2017 Net loss 2018 Net profit Total Income for 2017-2018 City of Elk River 2017 Management fee paid to ERGC 2018 Management fee paid to ERGC Other 2017 Expenses Other 2018 Expenses Well repair Total Spent by city in 2017-2018 If NO Management fee paid by city for 2017-2018 Elk River Golf Club profit $29,931.45 City of Elk River expense $19,164.21 Going forward *ERGC leases Pinewood for $1 per year *ERGC gets all revenue, all expense *City pays NO management fee *City and ERGC work out cost sharing plan for irrigation and club house expenses 24,000.00 24,903.00 -11,124.85 41,056.30 $78,834.45 24,000.00 24,903.00 4,103.08 3,524.38 11,536.75 $68,067.21