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HomeMy WebLinkAbout1996.01.02 OPGA MinutesAlso present: Jim Fitzsimmons, and Sam Swanson. The Owasso Public (golf Authority met in a special session on Tuesday, January 2, 1996 at 4:00 p.m. in the Owasso City Hall Conference Room per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 9 :00 a.m. on Thursday, December 28, 1995. ITEM l: CALL TO ORDER. Chairperson Glenna Anderson called the meeting to order at 4:08 p.m., and declared a quorum present. :',�� . ►►,rear . n Nun, ► . ► �► ►,. Mr Fitzsimmons addressed cost reduction measures being recommended by Bailey (golf Ranch Management Inc in an effort to solve the short term cash flow problem. Recommendations were made for reductions in personnel, as well as budgetary cuts. Discussion followed. DISCUSSING ITEM 3: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR AN EXECUTIVE SESSION FOR THE PURPOSE OF PERSONNEL MATTERS AS AUTHORIZED SECTION 307. SUBSECTION a(t). Ed Sokolosky moved, seconded by Tom Rikkola, to enter into executive session for the purpose of discussing personnel matters. Motion carried 5 -0. Into executive session at 5:40 p.m. Out of executive session at 6:05 p.m. Brian Skelton moved, seconded by Ed Sokolosky, to direct the management firm to take the personnel actions recommended on the first page of their memorandum dated January 2, 1996 Owasso Public Golf Authority Minutes of January 2, 1996 Page 2 (attached), and that action on the recommendations made on the second page of the memorandum be deferred to the next regular OPGA meeting (1/9/96). Motion carried 5-0. ITEM 5: ADJOURNMENT. Ed Sokolosky moved, seconded by Brian Skelton, to adjourn. Motion carried 5-0 and the meeting was adjourned at 6:15 p.m. ble-nLa M Anderson,' Chairperson Marc"outwell, Au&ority Secretary MEMORANDUM TO: OPGA FROM: Jim Fitzsimmons DATE: January 2, 1996 RE: Supporting Documentation for the Operating Pro -forma for Bailey Golf Ranch from January 15, 1996 through June 30, 1998 Over the past ten months, the OPGA, GRI and the staff at Bailey Golf Ranch have cut expenses from the previous year approximately 20 %. In that same period we increased revenues 8 %. While we are pleased with the progress we have made for the revenue and expense side, it is obvious that the project still does not achieve the economic goals of the OPGA. Therefore, having discussed with the OPGA the pros and cons of our past operating philosophy and the potential impact of changes to that philosophy, we are proposing the following operating plan to commence immediately. The goal of the plan is to make every attempt to solve the short term cash flow problem and also to hopefully minimize the effects on service and quality of product offered to the public. With that in mind the following events are proposed to take place. We will make every attempt to negotiate with the vendors who receive periodic payments for products or who receive set monthly payments for carts, equipment, etc. to restructure their payments and to be patient to receive outstanding invoices until the property can get through this short term cash flow crunch. (We anticipate this to be the end of March, 1996.) While we cannot guarantee that these vendors will be receptive, we are confident that we can make some progress in this regard. We will request the help of the City of Owasso in our discussions with all of the utility companies and other vendors that we think can be influenced by the cities involvement. We will make the following cuts in staff: a. We will dismiss the Superintendent whose salary is $39,750 per year, (2 weeks severance pay). b. We will elevate the Assistant Superintendent and increase his pay from $24,000 to $30,000 (beginning February 1st). Additionally we will dismiss one other full -time hourly person. This person will be replaced from the months of May through September with a part-time hourly person. We anticipate the total savings in this area over the next 12 month period to be approximately $16,0000. 4. GRI has previously restructured its management fee to waive the increase that was to take place effective August 1, 1995. That has already resulted in a savings of $1,500 per month. GRI has also relinquished the accounting to the City of Owasso which provides another savings in the amount of $1,000.00 per month. We now propose the following further restructuring of the management fee as follows: Time Period Fee Savings to OPGA Commencing December 1, 1995 $ 0.00 6,500.00 January, 1996 - February, 1996 $ 0.00 $ 13,000.00 March, 1996 - April, 1996 $ 2,000.00 / per month $ 9,000.00 May, 1996 - September, 1996 $ 3,000.00 / per month $ 18,500.00 October, 1996 - February, 1997 $ 1,000.00 /per month $ 30,000.00 March, 1997 - April, 1997 $ 2,000.00 / per month $ 10,000.00 May, 1997 - September, 1997 $ 3,000.00 / per month $ 21,000.00 October, 1997 - February, 1998 $ 1,000.00 /per month $ 32,500.00 March, 1998 - April, 1998 $ 2,000.00 / per month $ 11,000.00 May, 1998 - July 31, 1998 $ 3,000.00 / per month $ 13,500.00 TOTAL: $165,000.00 This results in a total savings from August, 1995 through the end of the term of the contract of $165,000.00. GRI shall retain the rights to the merchandise and payments to GRI regarding the merchandise shall take place on a monthly basis throughout the remainder of this agreement. In consideration of this restructuring, the OPGA shall also waive its right at the end of the 3rd year of this contract to terminate the contract as set in Article 14. Attached is a very detailed projection for the next five months including bond payments based on the current bond structure and then a month by month projection through July, 1997. The income shows modest growth with reduced expenses. The projection includes current bond payments beginning July, 1996. If the OPGA desires to proceed under these circumstances, it is still imperative that we take this plan and present it to certain financial sources that may be able to provide the ultimate financial back -up in the event this plan does not totally work and that the cash flow situation is not solved in this period of time. We would like to work in conjunction with the OPGA in making any presentations to the City, the Bailey Trust or whomever we jointly feel it would be beneficial to talk to in this regard. We feel that is absolutely necessary to have this back -up as there will not be any other cuts available to us that would allow us to make payroll in the event we need to. The employees need to know that °e is a plan in place to make payroll in the event this plan does not entirely succeed. We look forward to answering any questions you may have and to proceeding on with the implementation of the approved plan. Thanks.