Commissioners Present: Rob Harris (Chair), Jim Ehrhart (Vice Chair), Cindy Bingham, Marc Fontaine, Anne O’Connell, Jeff Odell and Ed Pavlu.
Others Present: Mark O’Brien (Director of Golf Operations), Herb Montgomery (Fin Com Liaison), Joanne Liberles (18-Hole Women’s Golf Association), Anne LeMaitre (9-Hole Women’s Golf Association) Gerri Carlin (9-Hole Women’s Golf Association and Friends of Captains Representative)
Call to Order: Rob Harris called the meeting to order at 3:00 p.m.
Approval of Minutes: On a motion by Cindy Bingham, seconded by Jim Ehrhart, the September 10, 2013 minutes were approved 7-0-0.
Discuss Fee Schedules for 2014.
The Commission has no directive from the Board of Selectmen and will be meeting with them on October 7, 2013. Mark is using information from the last meeting with the Selectmen as a directive and until he hears something different.
The short fall projected for FY 2014 is $114,000. This amount is after using $125,000 from the Receipts Reserved Account.
Current There are 879 members not including Junior member.
Using a graph prepared by Rob Harris (which was done using a business model), the following was discussed;
1) The average number of rounds played by the Early AFP was 46. When putting a financial value to this information it was determined that 85% of the Early AFP got more value for the $850 fee and 15% got less value.
2) The Non-Resident membership played at 85% value for the fee of $1,500.
3) 205 residents out of 717 received more than $3,000 in value.
4) To generate $350,000 in revenue the Early AFP could peak out some were in the $2,000 range per the Graph.
5) If Early AFP rate was increased to $1,500 it would generate $491,000 which adds $140,000 to the revenue. This is assuming 328 people join the Early AFP category. If Early AFP rate was raised to $1,500 it is speculated that approximately 86 players would not renew or move to the Morning AFP rate. If all Early AFP went to Morning AFP it would generate $17,000 for the Morning AFP revenue.
6) If Early AFP rate was increased to $1,100 it would generate $418,000 which adds $64,000 to the revenue.
7) For FY ‘14 the deficit is $114,000 and long range FY ‘15 is $67,000 with both years taking $125,000 from the Receipts Reserved Account.
8) If we assume $114,000 is our annual target for additional revenue we need to discuss associations, tee times, etc. together as they are all intertwined. Maybe we need to set a revenue goal for ‘FY14.
9) Revenue shortage is going to be a long term problem. Need to determine how to develop a plan so that this process does not have to be done each fiscal year. What percentage of funds needed do we want to come from revenue and what percent from expenses.
10) With politics involved the minimum may come from expenses and maximum from revenue.
11) Early and Morning AFP’s should not be asked to pay more or equal amounts as Non-Resident AFP.
12) Should not ask Early AFP to pay more without increasing other categories.
13) Morning AFP have a much flatter top to the curve on the graph. There is not much room to raise their rates. Currently collected $227,000 and that number can move up a little but peaks at $275,000 of revenue generated.
14) Put an assessment on each round over a set number of rounds allotted.
15) With all categories of membership rates go with a “Pay as you Play” program, Monday – Friday rates and after 12 noon rates.
16) Capping rounds for weekends during May – September and all days in July and August. (July 2013, 57 resident AFP played 30 or more rounds).
17) AFP fee for unlimited rounds and limited rounds with an assessment above the number set for the limit.
18) Suggestion $1,100 for Early AFP with unlimited play and $800 for Morning AFP getting a limit of 20 rounds during July and August and a surcharge above that limit.
19) How to handle players that are only here for summer months. Is it right to balance budget on the backs of both Resident AFP and Non-Resident AFP? Need to blend both fee changes/assessments and budget cuts.
20) A business would make cuts to expenditures as well as increase revenue.
21) How do daily fee players fit into raising more revenue?
22) If revenue is increase by 60% and expenses decrease by $50,000 an additional $38,000 would be needed, along with the $125,000 from the Reserve Fund to balance the budget Need to get decision from Selectmen at meeting of Oct 7th.
The commission discussed the pros and cons of raising fees. Would some people leaving to play other courses – would everyone leave no – because other clubs would be turning away members; what other private courses charge for memberships; most courses on Cape Cod are municipal courses vs. privately owned courses so the rates for membership in private vs. municipal vary.
Early AFP’s feel they did not get enough of an advantage over the Morning AFP’s for the addition $100. The following suggestions were made;
1) Move first tee time for Morning AFP. This would allow more times for Early AFP.
2) Early AFP most likely want before 9 a.m. Changing the time to 11 am only penalizes the morning players.
3) Possible changing call in times for various AFP.
4) Instead of changing fees could the number of times an AFP plays be limited. Going over number of rounds allotted would require paying an additional fee. Could possibly open other tee times and prevent AFP from playing 200 rounds for their fee.
5) Assess each member an amount to be determined annually, to cover the fiscal year deficit. This Assessment can be determined by the previous year’s number of rounds played by a member, just divided amounts the membership, using Non-Resident AFP in formula, setting a number of rounds as base then when going above that number having an assessment, etc.. When the Course starts making money again do away with the assessment.
Tee Time System
1) A number of members have ask, if we went to lottery system would that be lead up to weighted lottery? Weighted tee times were discussed as well as the survey responses to the trial tee time system. 63% want the Lottery system and not the weighted lottery system and thought it worked better than the current system.
2) Associate times would remain the same for the Lottery Tee Time system.
3) Possibility of having a trial for the weighted tee time system is not feasible since it would have to run so long.
4) Make weekend tee times more expensive or having a weekend membership category.
5) Survey showed 63% responding the 300+ respondents the like trial lottery system.
6) Using last trial analyze to see what results would be if Chelsea System.
7) If the Lottery System were adopted would it be feasible to do a trial next season with the point lottery system?
8) Generate additional membership rates, i.e. i.e. non-resident twilight, walk on memberships, making Junior rate to 18 years of age, adding a Collegiate rate (twice the Junior rate
1) Put expenses discussion on next agenda.
2) Analyze trial tee time system and see how it compares to point system.
3) Do a model for number of rounds played with revenue generated if assessment applied after reaching number of rounds.
4) Prepare a staged increase graph for all membership categories over a number of years to discuss and assess.
5) Place holder for Golf Commission meeting on October 22, 2013.
6) Board of Selectmen’s Meeting October 7, 2013 for their input and possible directive.
7) Golf Commission meeting October 8, 2013 at 4:00 p.m. to get to a consensus and submit to Board of Selectmen.
8) Chair Rob Harris to draft proposal document for Commission meeting to be held on October 22, 2013. Commission to discuss, amend and ratify.
9) Finance Committee meeting on October 23, 2013.
10) Meet with Board of Selectmen after Town Meeting.
11) Golf Commission meets to finish up on November 12, 2013.
On a motion by Jim Ehrhart, seconded by Cindy Bingham, the Commission voted to adjourn the meeting at 5:25 p.m. The vote was 7-0-0.
Anne Fusco LeMaitre, Secretary
Approved: October 8, 2013 as amended