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HomeMy WebLinkAbout1996.07.02_OPGA Agenda_Special1 NOTICE OF PUBLIC MEETING OF THE OWASSO PUBLIC GOLF AUTHORITY TYPE OF MEETING: Special DATE: July 2, 1996 TIME: 7:00 p.m. PLACE: Council Chambers, Owasso Community Center 301 S Cedar Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Friday, June 28, 1996. Marcia Atwell, Authority gecretary I AGENDA ' 1. Call to Order ' 2. Roll Call 3. Consideration and Appropriate Action Relating to OPGA Resolution #96-03, a Resolution Establishing Rates for Green Fees at Bailey Golf Ranch. Mr Lehr Attachment #3 Staff will recommend Trustee approval of OPGA Resolution #96-03, establishing rates for green fees at Bailey Golf Ranch, and creating a discounted resident rate. 1 1 Owasso Public Golf Authority July 2, 1996 Page 2 4. Consideration and Appropriate Action Relating to a Request for Trustee Adoption of OPGA Resolution #96-04, a Resolution Authorizing The Owasso Public Golf Authority to Convey Deed to the Bailey Golf Ranch to the City of Owasso for a Purchase Price Equal to Par Plus Accrued Interest on the Outstanding Owasso Public Golf Authority Recreational Facilities Revenue Bonds, Series 1992. ' Mr Ray Attachment #4 Staff will recommend Trustee approval of OPGA Resolution #96-04, authorizing ' conveyance of deed to the Bailey Golf Ranch to the City of Owasso. 5. Adjournment I I 1 F MEMORANDUM TO: THE HONORABLE CHAIR & TRUSTEES OWASSO PUBLIC GOLF AUTHORITY FROM: WARREN LEHR DIRECTOR OF GOLF SUBJECT: REQUEST FOR ADOPTION OF OPGA RESOLUTION #96-03, A RESOLUTION APPROVING A SCHEDULE OF GREEN FEES AND RATES AND CREATING A RESIDENT RATE DATE: June 28, 1996 1 BACKGROUND: ' In August of 1993, Bailey Golf Ranch opened as a "stand alone" recreational amenity, owned by The Owasso Public Golf Authority, with a view toward building for Owasso the status of a ' "full service community". The City Council did not budget General Fund money to subsidize the construction of the course, nor did it assume any responsibility for any debt incurred by the Golf Authority. With the recent reorganization of the OPGA, and in view of the recommendation financing of the golf course that would include the pledging of city funds to subsidize the golf course in the event of a shortfall, it appears to be appropriate to reconsider our rate structure as it relates to Owasso residents. PROPOSAL: The implementation of a discounted rate structure for Owasso residents, similar to the Patron discount rate structure, could produce positive results for the golf course and the city. Generally, the proposed rates would apply to anyone living within the Owasso School District and will discount the cost of a round of golf from 21 % to 34 % (depending upon the time of day and day of week). Mr Lehr is the architect of the plan and Ms Bishop has reviewed the ' numbers for its impact on the total revenue picture. The proposed rate structure adds a category (Owasso Resident) and, if approved, will enact the following rate structure: OPGA RESOLUTION #96-03 JUNE 28, 1996 PAGE 2 CURRENT GREEN FEE RATES NEW OWASSO TIME OF PLAY PUBLIC PATRON RESIDENT RATE' ' Mon-Thur Regular Fee $19.00 $15.00 $15.00 Friday before 11:00 a.m. $19.00 $15.00 $15.00 Friday after 11:00 a.m. $23.00 $15.00 $15.00 Sat, Sun, Holidays before 1:00 p.m. $23.00 $18.00 $23.00 Sat, Sun, Holidays after 1:00 p.m. $23.00 $18.00 $18.00 Twilight every day after 4:00 p.m. $15.00 $ 11.00 $11.00 Senior (62 & over) Mon - Fri only $15.00 $11.00 $11.00 Junior (17 & under) Mon - Fri only $ 9.00 $ 7.00 $ 7.00 COMMENTS: As previously discussed, the creation of a discounted rate for Owasso residents should be subject to the consideration of the following factors: 1. A reduced rate for Owasso residents must not have an adverse effect on revenues. NOTE: A rate equal to or below our Patron Card discount structure could create a "drop out" effect for Owasso residents (approximately 200)currently holding Patron Cards. However, we believe this potential negative impact on revenue would be offset by an increase in play by Owasso residents currently not utilizing the course. Also, the above rate structure would protect our "prime time" revenues on Saturday, Sunday, and holiday mornings while providing Patron Card holders with continued additional benefits for having purchased their cards. Patron Card holders receive five free rounds of golf, five free large buckets of range balls, a 10 % merchandise discount, advanced tee -time reservation privileges, a quarterly newsletter, and other benefits, along with their green fee discounts. We believe the large majority of Owasso Patron Card holders will continue to renew their Patron Cards due to these additional advantages they will continue to receive beyond the Owasso Resident Rate. 2. Boundaries and verification of "Owasso residents" must be established. Though the intent , of this proposal would be to embrace all residents in the Owasso community, some boundaries would need to be established. We believe the Owasso school district boundaries would serve this purpose best. 3. An Owasso resident rate should be clear and simple to understand. Most golf courses have adopted several different rates in an effort to maximize revenues during busy and slow times, and attract a broader range of golfers. Adopting a rate structure for Owasso residents which is almost identical to our Patron rate structure would be the simplest approach. OPGA RESOLUTION #96-03 JUNE 28, 1996 PAGE 3 RECOMMENDATION: The staff recommends adoption of OPGA Resolution #96-03. ATTACHMENT: 1. OPGA Resolution #96-03 1 LJ OWASSO PUBLIC GOLF AUTHORITY OPGA RESOLUTION NO 96-03 A RESOLUTION OF THE OWASSO PUBLIC GOLF AUTHORITY ADOPTING RATES TO BE CHARGED FOR GREEN FEES AT BAILEY GOLF RANCH, AND ESTABLISHING AN EFFECTIVE DATE. BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC GOLF AUTHORITY THAT: SECTION ONE: From and after the effective date as hereinafter set forth, the rates charged by the Owasso Public Golf Authority for green fees at Bailey Golf Ranch are as described on Attachment "A", adopted and incorporated as such by reference herein. SECTION TWO: The rates hereby adopted shall become effective on the third day of _ July, 1996. APPROVED AND ADOPTED this 2nd day of July, 1996 by the Trustees of the Owasso Public ' Golf Authority. Danny Ewing, Chairperson ATTEST: Marcia Boutwell, Trust Secretary ' APPROVED AS TO FORM: ' Ronald D Cates, Trust Attorney ATTACHMENT "A" to OPGA RESOLUTION #96-03 GREEN FEE RATES AT BAILEY GOLF RANCH TIME OF PLAY PUBLIC PATRON OWASSO RFSI EVP Mon-Thur Regular Fee $19.00 $15.00 $15.00 Friday before 11:00 a.m. $19.00 $15.00 $15.00 Friday after 11:00 a.m. $23.00 $15.00 $15.00 Sat, Sun, Holidays before 1:00 p.m. $23.00 $18.00 $23.00 Sat, Sun, Holidays after 1:00 p.m. $23.00 $18.00 $18.00 Twilight every day after 4:00 p.m. $15.00 $11.00 $11.00 Senior (62 & over) Mon - Fri only $15.00 $11.00 $11.00 Junior (17 & under) Mon - Fri only $ 9.00 $ 7.00 $ 7.00 * All persons residing within the Owasso school district. P0 1 OWASSO PUBLIC GOLF AUTHORITY OPGA RESOLUTION NO 96-04 A RESOLUTION OF THE OWASSO PUBLIC GOLF AUTHORITY AUTHORIZING THE OPGA TO CONVEY DEED TO THE BAILEY GOLF RANCH TO THE CITY OF OWASSO FOR A PURCHASE PRICE EQUAL TO PAR PLUS ACCRUED INTEREST ON THE OUTSTANDING OWASSO PUBLIC GOLF AUTHORITY RECREATIONAL FACILITIES REVENUE BONDS, SERIES 1992. WHEREAS, the revenues generated from the operation of Bailey Golf Ranch have been insufficient to timely pay the principal of and interest on the Authority's outstanding Recreational Facilities Revenue Bonds, Series 1992; and, WHEREAS, the trustee bank for the holders of said Bonds has declared an Event of Default under the Bond Indenture securing the Bonds; and, WHEREAS, the City of Owasso, Oklahoma has offered to purchase the golf course from the Authority at a price equal to the principal of and interest accrued on said Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC GOLF AUTHORITY that the Authority is authorized to sell the Bailey Golf Ranch ' to the City of Owasso, Oklahoma at a purchase price equal to the outstanding principal amount of the Authority's Recreational Facilities Revenue Bonds, Series 1992 and the Chair is authorized and directed to execute a deed and all other necessary or proper documents to effect ■ the sale of said golf course. APPROVED AND ADOPTED this 2nd day of July, 1996 by the Trustees of the Owasso Public Golf Authority. IATTEST: P, Ir Marcia Boutwell, Trust Secretary `W APPROVED AS TO FORM: r 6 OW Ronald D Cates, Trust Attorney Danny Ewing, Chairperson 4. rJ