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6.4.B. SR 03-06-2006 City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Administration March 6, 2006 Item Number 6.4.B Prepared by Bill Maertz, Parks and Recreation Director Reviewed by Lori Johnson, City Administrator Item Description Approve Pinewood Golf Course Budget and Acknowledge Need for Short Term and Long Range Improvements to Pinewood Clubhouse Introduction Pinewood Golf Course Budget Discussion Attached please fInd a proposed operating budget for Pinewood Golf Course. This budget includes the lease of new maintenance equipment this is a four-year lease to buy program with ownership in the 5th year. This budget is a conservative estimate based on 16,000 rounds in the fIrst year. Projections show a $14,145 profIt in 2006. Council is advised that the golf course business can vary greatly depending on weather conditions. Also attached are memos from the building inspector and fIre inspector. The issues raised by these inspectors will need to be addressed by a long-range plan for clubhouse improvements. Title transfer requires a septic system inspection. Some golf courses annualize superintendent salary, with the superintendent receiving paychecks during off-season. Staff recommends transferring the superintendent to parks maintenance during the off-season (approximately 10 weeks per year). This position could groom ski trails, help with ice rink maintenance and plow snow. Financial Impact The lease of new equipment is absorbed by the operating budget. Minor building repairs to meet immediate needs, are estimated at $15,000. Transferring the superintendent to parks maintenance during the off-season will have an impact on the general fund of approximately $10,000. Attachments Memos from Fire Inspector and Building Inspector Operating Budget Action Requested Approve operating budget, and acknowledge need for short term and long range improvements to Pinewood Clubhouse C\Documents and Settings \tallard\Local Settings \ Temporary Internet Files \ OLKF\Pinewood budget memo. doc Council Action Follow Up Motion by _ Second by _ Vote C: \Documents and Settings \tallard\Local Settings \ Temporary Internet Files \ OLKF\Pinewood budget memo. doc Page 1 of2 Ruprecht, Bob From: Anderson, Cliff Sent: Tuesday, February 28, 2006 10:01 AM To: Maertz, Bill Cc: Ruprecht, Bob Mr. Bill Maertz Parks and Recreation Director City of Elk River Bill, As you know we met with several city departments at the Pinewood Golf Course on the 21 st of February. The meeting was set to determine what, if anything needs to be done with the existing buildings to continue operations out of them. Are records show that there has not been a fire inspection for that property, so these items will face who ever takes over the golf course. : Exiting Issues Door hardware Direction of door swing Marked exits : Electrical Issues Extension Cord use Listed Appliance Use Wiring not inspected (State Electrical Inspector) Electrical Hazards (Open outlets, wiring not secured) : Fire Protection Extinguishers and Signage Flammable and combustible liquid storage Dispensing flammable and combustible liquids Storage of lawn chemical liquids and solids Protection of flammable dispensing devices These items are currently a Fire Code Violation and again will have to be addressed and cleared up. The use of the building will determine if any further corrections come into play. (whether or not the building will be used for assembly gatherings) Please call if you have any questions. Cliff Anderson 3/1/2006 MEMORANDUM TO: FROM: Bill Maertz Bob RupreCh/~ ~ DATE: February 28, 2006 SUBJECT: Pinewood Golf Course Buildings The Clubhouse Building does not meet the Minnesota Accessibility Code Chapter 1341 for the main entrance and possibly the walkway from the parking area; it appears to be too steep, but snow and ice make it difficult to determine. Bathrooms do not meet Chapter 1341 Accessibility Code. );> Plumbing in the building does not meet the State plumbing code requirements. I could not verify that the irrigation is correct. );> Does not meet health code requirements for preparing food for sale. );> Must have septic compliance inspection to verify type and location of septic system and proper setback from well. Should have well water tested. The HV AC system does not meet mechanical or building code requirements. Furnace and window air-conditioner are in major disrepair. There appear to be many electrical code violations and must be addressed with a licensed electrical contractor. There are at least two fuel tanks buried in back next to the building with old pumps in the same location. These must be checked by a licensed professional as to the integrity of all the equipment and for possible soil contamination. ,.. - 2 - The building has several areas of deterioration: 1) The front boardwalk has broken and rotted members. 2) Some of the windows and doors are in a decayed state - especially at the sill. 3) The wood at grade around the perimeter of the main building is deteriorated. I believe this is partially due to the poor drainage around the building. The fire inspector also has several issues that need to be addressed (see attached letter). cc: Scott Clark Cliff Anderson Expenses 4101 Salaries - Regular $ 66,000 4103 Temp Employees $ 27,000 Benefits, PERA, etc. $ 23,250 Personal Services $ 116,250 4212 Fuels and Lubs $ 2,500 4219 Operating Supplies $ 18,200 4259 Merchandise for Resale $ 7,000 Supplies $ 27,700 4319 Other Professional Services 4321 Telephone $ 1,800 4322 Postage 4331 Travel, Conference, & Schools 4349 Advertising $ 2,000 4359 Publishing 4361 Insurance $ 5,000 4389 Utilities $ 1,500 440 I Bldg Repair & Maintenance $ 2,500 4404 Equip Repair & Maintenance $ 2,500 4409 Contractual Services 4415 Equipment Rental $ 28,105 4417 Uniform Rental $ 500 4433 Dues and Subscriptions 4438 Credit Card Fees $ 2,000 4440 Miscellaneous Other Services and Charges $ 45,905 Total Expenses $ 189,855 Revenues Green Fees Golf Cart Rental Food and Beverage Sales Merchandise Sales Building Rental Advertising Total Revenues $ 168,000 $ 10,000 $ 12,000 $ 2,500 $ $ $ 3,000 195,500