Agenda Packets - 1997/07/07 - Laserfiche WebLink

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to employees may be between cost and retail. Policies and discounts for league play will be presented in the budget. The percentage of lessons paid to the golf pro(s)will be excluded from gross revenues and payroll costs. IIIPayroll costs will include all salaries and benefits paid to golf course employees. Benefits include but are not limited to social security, medicare, retirement, health, life, and dental insurance, unemployment and workers' compensation insurance and claims, specialized golf course training and seminars provided however, general training provided to all city employees and other training that will benefit other city departments may be excluded at the discretion of the City Administrator. The City will not charge the golf course for incidental services provided to the golf course by other City personnel nor will there be a reduction in golf course personnel costs for incidental work provided to other city operations by golf course personnel. The contract will include a requirement that the course and equipment be maintained at preestablished minimum standards. As part of this contract, the cost of personnel will include the cost to grind the reels/blades on the equipment; the City will provide the grinder necessary for this work. At most courses, this is contracted out at a cost of approximately $9,000 per year. A capital budget will be presented during the budget process and the City will pledge to replace equipment worn out by normal use. As part of the proposed contract, golf course personnel will undertake several improvement projects per year such as planting additional trees, shrubs and flowers, reconstructing tees and/or greens, constructing new facilities such as this year's picnic area and chipping green. These projects will be presented during the budget process and are estimated to take approximately 400 hours of time. 110 Attached is selected information from the 1995 National Golf Foundation's Operating and Financial Performance Profiles of 9 hole Public Golf Facilities in the United States. In addition, I have prepared a schedule comparing this information to our facility. As noted on the schedule, detailed information is obtained independently from the overall information; as such, I adjusted the detailed information in order that the detail would agree to the totals (see schedule for method of adjustment). Overall, our course is in the top 5% of Frost Belt courses for rounds of golf played and total revenues. Based upon the detailed information, payroll costs were 44% of gross revenues; as I adjusted the detail to equal the total expenses, it was 40.75%. It should be noted that the greater the number of rounds played and the earlier in the year the course is opened,the greater the maintenance and personnel costs. The noted 40.75% figure was an average of the top 25 and 5% of courses and as such, is probably on the low side. The top 5% of frost belt golf courses have club houses that average 10,000 square feet verses our 1,800; the larger area increases their ability to sell more merchandise with little additional overhead since they already staff the club house for taking reservations, renting carts, etc. It is proposed that the City enter into a contract with its current superintendent at a base salary of $40,000 per year under the terms outlined above. Under the contract, total payroll costs would equal 44% of revenues (40.75%of top 5% of frost belt courses plus .50% for the restricted area for merchandising plus 1.25% for added maintenance on equipment plus 1.50% for correction of original design and construction problems and yearly course construction enhancements, for a • total of 44% of gross revenues). It is proposed that the contract be effective for 1997 through 2001. If the arrangement was working satisfactorily, it would be proposed to structure future