Golf Course Advisory Board Agenda and Packet 2016 04 18

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LCiryof Louisville Golf Course Advisory B oard Minutes March 21 2016 Page 3 of 4 COLORADO • SINCE 1878 business case to justify this capital. February results show that the estimated fixed costs to cover headcount, benefits and other expenses e.g. heat, light, internet, etc. are about $65,000 per month ($2,000 per day) over the winter season. David recommends a facility of 3 bays with roll -up doors, two teaching bays, provision for club fitting, a launch monitor and basic power and heating is what is needed. Ken reported that a donor provided Colorado National with a more elaborate structure at the cost of around $250K. Ken said staff should work with GCAB to study various alternatives. This facility will help with teaching revenue during the winter months and provide additional revenue through pro -shop sales and revenue to the Cafe to help offset the fixed cost and create revenue to satisfy future capital needs. • There is a pressing need to expand the cart storage area. There is currently room for 52 carts but we are having to squeeze in 65. It is impossible to cycle carts properly so, it periods of slow play, the same few carts get used over and over again since they are the only ones that are accessible. This is poor from the standpoint of battery life and there is the risk of damage to the carts due to the tight packing. There will be minor relief when the fenced -in area under the deck has side screens fitted but this is a very partial solution. While this is a priority issue, Board agreed with Staff that we should not waste money on additional band -aids to the clubhouse until we see if the golf course revenue can support a replacement clubhouse. The ongoing battle against leaks appears to be quiet for the moment. • New clubhouse. This is a major expense that needs a full business case justification. The benefits are clear: a larger and better restaurant facility, proper golf cart storage, possible meeting room facilities. However, this must demonstrate that it will provide increased revenue to pay back the investment in an acceptable time. • Bathroom /shelter on the back 5 holes. Another perennial issue made less likely since the cost for a fully plumbed and serviced restroom is likely to be in the region of $250K (or more) and this will not produce additional revenue. c. Financial Results vs Plan • Due to weather, only 12 of the 29 days in February were playable so only 581 rounds were played against a budget of 781. The course was busy on the days it was open — 25% of the green fee revenue came from one single day. As a result, total February revenue (excluding pass sales) was $21,352 against a budget of $42,519. • Total expenses for February were $65,005 against a budget of $45,840 but this include a quarterly insurance payment of $7000 that hit in February. • As we see month by month revenue expenses, this will allow us to get a better picture of where we are. PARKS AND RECREATION DEPARTMENT • 749 MAIN STREET • LOUISVILLE, CO 80027 (303) 335 -4735 FAX (303) 335 -4738 www.Iouisvilleco.gov PARKS RECREATION SENIOR SERVICES 5 OPEN SPACE FORESTRY TRAILS GOLF