Commissioners Present: Anne O’Connell (Chair), Andrea Johnson (Vice-Chair), John Kissida, Wyn Morton, Jeff Odell, and David Valcourt
Others Present: Jay Packett, Director of Operations, Colin Walsh, Golf Course Superintendent, Rob Harris (CCMGA), Donna Potts (9-Hole Women’s Assn.), Sarah Robinson (18-Hole Women’s Association), Bill Meehan (Finance Committee Liaison), Peter Lombardi, Town Administrator, Mimi Bernardo, Town Accountant, Donna Kalanick, Assistant Town Administrator
THIS MEETING WAS HELD REMOTELY WITH AUDIO AND VIDEO RECORDED. The meeting may be viewed at: http://video.brewster-ma.gov/CablecastPublicSite/show/5507?channel=1
Anne O’Connell called the meeting to order at 4:00 pm after reading remote meeting guidelines and procedures.
Review of Tee Time Allocation Process:
- At the last meeting it was decided at Jay Packett’s recommendation to adhere to the written policy that has been in effect since 2010. The vote will have an impact on capital planning and is on today’s agenda. Peter Lombardi reported that in 2010 there was a policy discussion with the Golf Commission and the Selectboard at the time establishing a formula that determined tee time allocation for the second course which has been generally adhered to with some minor variations over the past decade or so. The allocation has been 12 to 14 percent working off the parameters that were included in that formula. There was not an adjustment to the tee time allocation last year. The change in allocation from 12 to 23 percent is $350,000, almost 10 per cent difference in terms of revenues from what had been projected and from what the 2022 budget had been built on and Town Meeting approved. The interest and demand on tee times from the membership is understandable, but the Golf Department needs to be on a solid footing not just for 2022, but beyond. This is the whole point of the work being done with the NGF and their analysis which will determine strategic decisions going forward. A conversation needs to be held again with the Golf Commission about the allocation since the increase to 23 percent leaves a small margin of $60,000 in excess capacity. He thinks that in looking at the budget development process, the rate setting and approval process this is a third critical factor. For each of those other two steps, there is a recommendation that gets considered and presented by the Finance Team and the Selectboard. Anne O’Connell asked Peter Lombardi about the timing of the presentation to the Selectboard. It is his understanding this presentation needs to be made about this time of year. His thought is to have the NGF run three scenarios: a 15 percent allocation, a 20 percent allocation and a 25 percent allocation so there could be a better understanding of what that might mean for now and in the coming years regarding the ability to tackle capital in a meaningful way. Anne O’Connell recognized all Golf Commissioners present for their comments and questions: Jeff Odell did not vote in favor as he does not agree with the way the formula is applied and explained his thoughts. Dave Valcourt was the one dissenting vote and agrees with Jeff Odell’s observations and explained his thoughts including capital expenditures; he asked Peter Lombardi to explain policies. Peter Lombardi stated he has a word document to substantiate the discussions and feels that this opportunity should be used to develop a formal policy. The NGF analysis should have a clear goal and come up with a formula that makes sense of member access and that balances with budget concerns. Discussion followed. Andrea Johnson asked if the commission can decide on an interim policy. Peter Lombardi explained the Selectboard could on recommendation make policy changes and give the Golf Commission discretion in having a transition period to make reasonable changes to the allocation. John Kissida stated the National Golf Foundation study has been paid for although not yet received, and he believes that that is critical in making decisions in allocating funds. The current policy has been in effect for eleven years and times have changed. Capital has been deferred for a long time. There are many things that need to be done and if more times are opened up for members, he suggested ultimately there will be rate increases going down the road; he feels the need to step back and take a more metered look at this, making the right decisions at the right time for the long-term benefit of the members and the golf course. Wynn Morton agrees with Peter Lombardi and agrees that the commission needs to use the expertise of the National Golf Foundation. Anne O’Connell helped Jay Packett track back all the allocations since 2011 and in looking at a lot of old minutes, she believes Mark O’Brien eliminated capital and debt in order to maximize the allocation for members, and it was his belief that reducing it below the 12-1/2 per cent would not make good financial sense since he did not see daily fee players taking up the unused times and it would only annoy the membership. She does not recall this was any part of the original discussion. She feels that the policy in writing is the policy in the rules and information guide and should be followed, but if Peter Lombardi is willing to have the Selectboard overrule the Golf Commission on this issue she is more than happy to allow that as long as it is dealt with in a timely fashion. Jeff Odell believes, per Robert’s Rules, to rescind the last vote requires someone who voted in the affirmative making a motion to set that decision aside and then go forward. Bill Meehan suggested keeping in mind that the golf course is a Brewster owned facility, and he believes it is in the best long-range interest to everyone associated with Captains Golf Course that it become entirely self-sufficient in the language of the law—an enterprise account. There is so much deferred capital that taking a chunk out of potential revenue at this point would be a critical mistake. He understands the existence of previous policies and the desire of a growing number of members to have access to a facility they pay to access. He believes that Peter Lombardi has offered a decent solution and his finance team and the Selectboard can help work it through. Rob Harris stated he was on the Golf Commission in 2010 when the current policy was enacted. He understands that capital was not included at that time and it probably should have been. He explained the differences in funding various accounts and said the purpose of the policy at the time was to get the Selectboard to raise rates and have the membership on board with a rate increase. The policy was intended to be an alignment of goals between the members and the town so that if the members paid more money, they got more product. He feels this has worked well for the last eleven years and thinks it might work well for this year and into the future. He believes the membership should have some advantages. He discussed the budget from last month and the FY22 budget. Jay Packett thanked Rob Harris for his email and said he was basing his recommendation off past practices, presenting the worst-case scenarios which he does not believe will happen based on Fiscal 21. He is not opposed to having the Selectboard decide policy. Anne O’Connell believes that those commissioners who voted in the affirmative are not comfortable with the impact it had on the bottom line; it was more a philosophical issue. She has not heard anyone object to having this dealt with for this year only by the Selectboard. The Golf Commission needs to wait to hear from the National Golf Foundation to put together a thought-out proposal and to take a hard look at the formula as it exists in order to have a better idea as to what will happen in Fiscal 22. Jay Packett feels it is important that the Golf Department relook at the formula moving to Fiscal 22 and thanked Mark O’Brien and Rob Harris for their work. Peter Lombardi has not talked to any members of the Selectboard regarding this matter. Their next regularly scheduled meeting of the Selectboard is for July 12th. He thinks through the comments made, the sooner decisions can be made and communicated to the members the better. He also thinks the NGF has dealt with this before, and it would make sense that the Selectboard knows the Golf Commission is on board with them over-riding or suspending the policy so an interim measures can be put in place this year. Anne O’Connell understands that Peter Lombardi, Mimi Bernardo and Donna Kalanick do not have a recommendation as to what this would look like. Discussion followed. Jay Packett will have a conversation with Richard Singer at the National Golf Foundation tomorrow to bring him up-to-speed. Anne O’Connell asked if the Golf Commission would like to rescind the previous approval of golf policy and wait until the July 12th meeting of the Selectboard to accept their policy recommendation for this season only.
- Andrea Johnson made a motion, seconded by Wyn Morton, to rescind the Golf Commission’s vote to approve Jay Packett’s recommendation for Fiscal 22. Motion passed unanimously.
- Anne O’Connell stated the next meeting of the Golf Commission is July 13 so there will not be an opportunity to discuss the NGF response before that. The next meeting will be a regular business meeting. Rob Harris suggested if the Selectboard is not going to decide until July 30th the cut-off date for member refunds should be extended . Peter Lombardi indicated the Selectboard will vote on this on July 12th. Jay Packett stated the cut-off date for member refunds is June 30th. Peter Lombardi indicated his hope that the NGF will be able to do their analysis before the Selectboard meeting on July 12th. Jay Packett will follow-up with Richard Singer. Dave Valcourt suggested the membership be informed of what’s going on. Discussion followed. Peter Lombardi suggested the need for setting a policy that’s fair and works in terms of granting members more access to the course since they have contributed a larger share, but not at the expense of dramatically impacting the bottom line and its ability to cover capital and operating costs going forward.
Overview of Capital Planning Process and related budgetary issues:
- Peter Lombardi discussed the capital planning process having gone through several cycles. In the past few years as the plan was put together there was the pandemic which changed the timing in terms of which fiscal year we’re in, which iteration of the budget process should be followed, and when town meeting is actually held. The Charter has been approved by Town Meeting but not yet by the State Legislature, so the by-laws are still in place. There is a Capital Planning Committee and the department heads are asked for input. In the fall this input is assembled and studied and ultimately included in the five-year capital plan that is finalized by the end of January. A snapshot version with significant expenses over $100,00 is included in the warrant booklet for Town Meeting in the spring. Discussion followed as to necessary upcoming capital needs. The overwhelming funding of the capital improvement plan is through free cash, which is typically certified in late summer, early fall. The goal going forward is to fund the majority of capital at special Town Meeting in the fall. Typically, some funding is left in reserve for capital projects that need to be funded in the spring or for projects that come up in the interim. Golf should, whether it’s an enterprise fund or not, follow a similar schedule. The Golf Department is included in the five-year capital plan. In the next month or so, department heads will be asked for their planned capital projects articles for Special Town Meeting in the fall. Peter Lombardi has sent out a memo and forms regarding the definition of the capital plan. Discussion followed regarding revenue, capital articles and reserve funds. Peter Lombardi expressed the importance of investing and building the reserve funds and balancing that with capital projects. There was more discussion regarding information anticipated to be received from the NGF. Dave Valcourt commented on the usefulness of timelines on a calendar.
Discussion of potential transition of golf department to enterprise account:
- Anne O’Connell asked what changes will be necessary once the Golf Department is an enterprise account. Peter Lombardi transitioned the water department to an enterprise account for the fiscal year. Similarly, for the Golf Department the NGF study and analysis would be reviewed, and an enterprise account could be considered for FY23. The Golf Department is operating in a manner that is self-sufficient and meeting the spirit of being an enterprise fund without being one in the upcoming fiscal year. The indirect formula needs to be revisited. A full enterprise fund accounting can be considered after all information from the NGF has been reviewed, thoroughly discussed and would require Town Meeting approval presumably in May to go live on July 1. It may not be next year, but that’s generally how that would look. Mimi Bernardo talked about the financial operations of the golf course. She would like to see the golf course operate as an enterprise fund. Donna Kalanick said the DOR report recommended that both the water and golf departments operate as enterprise funds. Discussion followed.
Course Operations Questions and Concerns:
- Dave Valcourt commented on the operations of the Maintenance Department and how buying parts and machinery at a certain time during the year allows for discounted fees. Donna Kalanick stated procurement laws in Mass are complicated and need to be followed. She and Colin Walsh have been working to make sure procurement issues are correct. Discussion followed. Peter Lombardi explained that capital articles survive the fiscal year. Donna Kalanick explained capital expenditures cut off at $10,000 and are not fungible to something else. Anne O’Connell asked what happens to money that is not used for capital items that have been approved, when the Golf Department would like to proceed with the item. Mimi Bernardo explained when there is an item voted in a special article at Town Meeting the money can only be spent for the approved item. In order to spend any remaining money when the project is completed, the funds are closed out and become free cash. When there is capital money left in a line item in the operating budget, that money does not carry over from year-to-year. Whatever items are not purchased would have to be paid for the following year. She feels that is why getting on a good cycle with the capital is important so the Golf Department would be like the other departments when an article at Town Meeting says this is what we’re going to buy and this is how we’re going to pay for it. In an enterprise fund, the operating budget and the capital items are voted separately. Anne O’Connell asked if there is an end date for capital items that are specific and approved. Mimi Bernardo said there is not. Peter Lombardi said the operating budget is approved in one article. All the capital requests will be in the town’s capital article for a specific amount for a specific purpose, carry forward from fiscal year to fiscal year and don’t close out until the project is done. The operating budget is a bottom-line budget approved by Town Meeting and whatever is unused closes out at the end of the fiscal year. Anne O’Connell thanked everyone for being at the meeting.
- Jay Packett spoke about the Mass Amateur Qualifier held yesterday. This tournament has been held at The Captains before, but this is the first to be held recently. Colin Walsh and his staff has the course in fantastic shape. Jay Packett would like to see events like this held annually at The Captains. Jeff Odell commented on Pat Fannon’s hosting of the Cape Cod Men’s Club. Kudos to Steve Knowles for his work in the pro shop. The 18-hole member-guest today was successful.
Process for allocation of additional tee times:
- Jeff Odell spoke about scheduling the twilight money tee times to later in the afternoon assignments adding them in after twilight so that those members have the access they paid for, and if that comes out of the new formula that would be fine. Anne O’Connell stated that these new tee times should be distributed in an equitable fashion.
Future agenda items and meetings:
- Requests for events:
Jay Packett received a request from the Superintendents’ Association for a tournament on September 1 for about 105 to 110 players.
- Jay Packett received a request from the Cape Cod Men’s Club for a 40-player modified shotgun tournament on October 14.
- A motion was made by Wyn Morton, seconded by John Kissida, to approve the request of the Superintendents’ Association for a tournament on September 1 for about 105 to 110 players and the request from the Cape Cod Men’s Club for a modified shotgun for 40 players on October 14. Motion passed unanimously.
- A motion was made by John Kissida, seconded by Andrea Johnson, to adjourn the meeting. Motion passed unanimously. The meeting was adjourned at 5:59 p.m.
Respectfully submitted,
Dorothy Vesperman
Department Assistant