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08-14-2019 VC BWS-MSUMMARY MINUTES OF BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA August 14, 2019 Present: Darryl C. Aubrey, Sc.D., Mayor Mark Mullinix, Vice Mayor David B. Norris, President Pro Tem Susan Bickel, Councilmember Deborah Searcy, Councilmember Andrew D. Lukasik, Village Manager Leonard G. Rubin, P.A., Village Attorney Jessica Green, Village Clerk ROLL CALL Mayor Aubrey called the meeting to order at 7:00 p.m. All members of Council were present. All members of staff were present. PURPOSE OF THE MEETING Mr. Lukasik provided an overview of the budgets for Parks and Recreation, Tennis and Pool Operations, and the Country Club. He noted Parks and Recreation was going through an overhaul as they update policies, procedures, and practices and pointed out that adjustments may need to be made later to the Tennis and Pool budgets. The following items were reviewed: • FY 2020 PARKS AND RECREATION STAFFING • PARKS AND RECREATION PROGRAMS • PARKS AND RECREATION YOUTH SPORTS • PARKS AND RECREATION SPECIAL EVENTS • PARKS AND RECREATION FACILITIES • FY 2020 PARKS AND RECREATION KEY ISSUES • FY 2020 PARKS AND RECREATION BUDGET SUMMARY • FY 2020 TENNIS AND POOL OPERATIONS STAFFING • FY 2020 TENNIS BUDGET HIGHLIGHTS • TENNIS FEE SCHEDULE CHANGES • FY 2020 TENNIS BUDGET SUMMARY • FY 2020 POOL BUDGET HIGHLIGHTS • FY 2020 POOL BUDGET SUMMARY • FY 2020 COUNTRY CLUB STAFFING • FY 2020 COUNTRY CLUB BUDGET SUMMARY (COMBINED) • FY 2020 GOLF BUDGET HIGHLIGHTS • GOLF FEE SCHEDULE CHANGES • FY 2020 GOLF BUDGET SUMMARY • FY 2020 FOOD AND BEVERAGE BUDGET HIGHLIGHTS • FY 2020 FOOD AND BEVERAGE BUDGET SUMMARY • FY 2020 COUNTRY CLUB ADMINISTRATION BUDGET SUMMARY Village Council Workshop Session held August 14, 2019 Page 2 of 9 2020 PARKS AND RECREATION STAFFING Director of Parks and Recreation Russ Ruskay provided an overview on Parks and Recreation staffing. He outlined changes to staffing, including: • Reassigning part-time staff to expand the Community Center morning hours and activities • Moving one employee into a position where she is better qualified • Changing the culture by exploring new ways to plan and developing a "two employee team" approach to each function, adding fresh sets of ideas • Recreation Director meeting with the Public Works management team to better coordinate operations and project planning • Implemented weekly staff meetings Summary FY 2020 Full -Time 5 Part -Time 16 FY 2019 Change 5 0 23 -7 Discussion ensued regarding the Parks and Recreation organizational chart and overall reduction in staffing for the department. PARKS AND RECREATION PROGRAMS Mr. Ruskay provided an update on Parks and Recreation programs, including: • Classes reorganized to have consistent fee structures/agreements, and preparing for the Needs Assessment project • Electronic surveys sent out after each program • Evaluate current classes and determine the value to the community • Place a stronger emphasis on promoting programs through social media outlets • Staff collaboration with the Country Club on community programs to bring residents back to the club, including a Club/Recreation calendar • Have the capacity to add additional classes and programs PARKS AND RECREATION YOUTH SPORTS Mr. Ruskay provided an update on plans for youth sports, including: • Declining numbers — plan to totally redevelop the youth sports function by focusing on the younger age children in an effort to build a solid grassroots program moving forward with specific branding • Offer various sports clinics and promote youth sports programs at other Village events • Promote the Village youth sports program with a focus on recreation and fundamentals as opposed to competitive programs • Expand the advertising of the programs through various social media avenues • Have the capacity to add programs Mr. Ruskay showed a chart of youth participation in sports from 2014 to 2019, showing a drop off in participation in 2019 in soccer, basketball, and flag football. He stated all leagues are co-ed and include ages 6.5 to 17. Village Council Workshop Session held August 14, 2019 Page 3 of 9 Discussion ensued regarding factors going into the drop in enrollment, including area programs that start at early ages, girls not wanting to participate in co-ed programs, and national trends. Mr. Ruskay noted the sports offerings would be expanded based on the Needs Assessment and pointed out that there was no longer baseball in the community so Parks and Recreation would be looking at filling the need. PARKS AND RECREATION SPECIAL EVENTS Mr. Ruskay provided an update on special events plans in FY 2020, including: • Currently offering a well-planned series of 12 special events per year • Goal to develop a more comprehensive sponsorship program to generate additional revenue and promote business community participation • Heritage Day — plan to form a resident event committee to enhance the efforts of the Village Staff in the planning and operations • Maintain the current number of trips (24) • Current staffing level does not have the capacity to add events Discussion ensued regarding sponsorship opportunities and community tie-ins. PARKS AND RECREATION FACILITIES Mr. Ruskay provided an update on plans for FY 2020 in facilities: • Renovations o Anchorage Park Dry Storage o Volleyball courts at Anchorage Park o Anchorage Park Dog Park o Outdoor basketball courts at Community Center • Continuation of the park equipment and furniture replacement program, with standardization of benches, trash cans, signs, etc. • Contracted with State certified playground inspector to do semi-annual inspections for playground safety FY 2020 PARKS AND RECREATION KEY ISSUES Mr. Ruskay outlined key issues and projects for Parks and Recreation in FY 2020, including: • Collaborate with residents regarding Lakeside Park operations and planning • Update and develop a more efficient and transparent waiting list for the wet slips and dry storage spaces • Revised the pending Master Plan RFP to a Needs Assessment RFQ, bringing greater value to the community for the amount currently budgeted Discussion ensued regarding the dry storage and the number of people on the waiting list for spaces to open up. Village Council Workshop Session held August 14, 2019 Page 4 of 9 Mr. Ruskay stated it was his professional opinion that the Village should be looking at a Needs Assessment, making a revision to the plan to create a Master Plan in the interest of getting more resident and staff comment and getting the most value for the money. The Councilmembers discussed the budget implications and long-term needs. They decided by consensus to follow Mr. Ruskay's advice. Mr. Lukasik outlined proposed changes to the Recreation Fee Schedule, including the adjustment of the cost of the north floating docks to $3,300 per year. Discussion ensued regarding comparison rates and the steps for implementation of the change. A consensus was reached to increase the cost of the south dock slightly, as well. Mr. Lukasik stated spots were being reserved for RVs to give options to those who were in violation of the Ordinance and recommended a reduced rate for RVs in dry storage for FY 2020 only of $750. Discussion ensued regarding rates that were already lower than market and whether the reduction represented positive goodwill or would result in frustration next year. The Councilmembers and staff discussed upgrades needed in dry storage and what other locations were charging. Consensus was to make adjustments based on area trends. Mr. Lukasik reviewed notes on the FY 2019 and projected FY 2020 recreation revenues, noting camp programs revenue was down due to no teen camp in 2019 and changes were budgeted to reflect historical trends. Discussion ensued regarding holding a summer camp at the Country Club. FY 2020 PARKS AND RECREATION BUDGET SUMMARY % Increase/ $ Increase/ Category FY 2020 Budget FY 2019 Budget Decrease Decrease Salary & Benefits $6045062 $701,440 -13.88% ($975378) Operating $56700 $538,178 5.36% $28,822 Total Expenses $1,1715062 $1,239,618 -5.53% ($685556) Discussion ensued regarding utility costs. FY 2020 TENNIS AND POOL OPERATIONS STAFFING Mr. Lukasik reviewed the Tennis and Pool staffing. He outlined changes to staffing, including: • Reassigning a Recreation Supervisor to become Tennis Supervisor (name change only) • Addition of a Pool Supervisor • Addition of a part-time Camp Counselor (cost neutral) under Tennis Operations and two (2) Recreation Assistants under Pool Operations Summary FY 2020 FY 2019 Change Full -Time 2 1 +1 Part -Time 22 19 +3 Instructor The number of instructors will vary based on program development. Village Council Workshop Session held August 14, 2019 Page 5 of 9 FY 2020 TENNIS BUDGET HIGHLIGHTS Mr. Lukasik reviewed the FY 2020 Tennis Budget highlights, including: • Dues increased in line with competitors and offering • Addition of Camp Counselor provides opportunities to grow camp program revenue • Increase monthly events to drive revenue, membership, and camaraderie of community • Resident card offers special rates for tennis, pool, and golf • Staff focused on improving member/guest customer service and overall condition of facility, minus capital infusion for FY 2020 Discussion ensued regarding growing the camp offerings. TENNIS FEE SCHEDULE CHANGES Beth Davis, Country Club General Manager, outlined proposed changes to the Tennis Fee Schedule and projected revenue increases totaling 34.47 percent. She noted upgrades to facilities and programming had been made, but fees had not increased in five (5) years or more. Discussion ensued regarding the tennis membership and benefits, and promotion of programming. FY 2020 TENNIS BUDGET SUMMARY % Increase/ $ Increase/ Category FY 2020 Budget FY 2019 Budget Decrease Decrease Salary & Benefits $555,834 $421,214 31.96% $1345620 Operating $170,700 $136,960 24.63% $33,740 Total Expenses $726,534 $558,174 30.16% $168,360 Ms. Davis reviewed changes in each section of the Tennis budget, pointing out tennis instructors were now part-time employees due to the advice from the IRS audit, and an increased materials and supplies budget was to cover trees and sod for landscaping improvements and a shade structure. Councilmember Searcy asked about creating a children's section in the merchandise store. Discussion ensued. Mr. Lukasik clarified how budget shortfalls were handled, through transfer from General Fund in order to allow the departments to continue to invest in themselves. Tennis Supervisor Jackie Wheeler responded to questions from Councilmembers regarding programming and options at nearby clubs, as well as the profits made from tennis lessons. Village Council Workshop Session held August 14, 2019 Page 6 of 9 FY 2020 POOL BUDGET HIGHLIGHTS Ms. Davis outlined highlights of the FY 2020 Pool Budget, including: • Upgraded existing pool and added splash pad with interactive features to drive daily revenue and memberships • Addition of pool pump for operational efficiency • 2019-2020 Farmer's Table NPB, LLC, provided Snack Bar service poolside • Increase in special events and pool parties to drive food and beverage revenue, pool rentals, membership dues, and daily fees to offset operating costs • Multiple training classes offered through American Red Cross Ms. Davis reviewed the Pool Fee Schedule and stated no changes were proposed except removal of the tiki but charges, as the huts had been removed. Discussion ensued regarding raising the daily and membership rates. The consensus was to revisit the matter later in the budget season. FY 2020 POOL BUDGET SUMMARY % Increase/ $ Increase/ Category FY 2020 Budget FY 2019 Budget Decrease Decrease Salary & Benefits $189,566 $69,354 173.33% $120,212 Operating $134,635 $95,575 40.87% $39,060 Total Expenses $324,201 $164,929 96.57% $159,272 Ms. Davis reviewed changes, including one (1) full-time Pool Supervisor and two (2) part-time Recreation Assistant positions which were previously in the Recreations Budget, the addition of a pool maintenance contract, added funds for unforeseen repairs and maintenance costs throughout the year, and rental for pool inflatables for various events throughout the year. Discussion ensued regarding additional ways to market the pool to expand opportunities for outside revenue streams. FY 2020 COUNTRY CLUB STAFFING Ms. Davis reviewed the organizational chart for the Country Club, explaining as General Manager she also oversees the Pool and Tennis operations, which are budgeted in the General Fund. Ms. Davis outlined changes to staffing, including: • Addition of a part-time Administrative Coordinator • Addition of a full-time Trades Mechanic • Shifting from First and Second Assistant Golf Professionals to two (2) Assistant Golf Professionals • Replacement of a Sales and Marketing Rep with a Golf -Merchandising Assistant Summary FY 2020 FY 2019 Change Full -Time 7 6 +1 Part -Time 28 27 +l Village Council Workshop Session held August 14, 2019 FY 2020 COUNTRY CLUB BUDGET SUMMARY (COMBINED) Revenue Personnel Costs Operating Costs Capital Outlay Debt Services Reserves Total Expenses FY 2020 Budget $3,987,588 $1,006,219 $2,547,680 0 $433,689 0 $3,987,588 Page 7 of 9 % Increase/ $ Increase/ FY 2019 Budget Decrease Decrease $298809256 38.45% $191079332 $828,298 21.48% $177,921 $1,618,269 63.52% $929,411 0 0 0 $43309 0 0 0 0 0 $298809256 38.45% $191079332 FY 2020 GOLF BUDGET HIGHLIGHTS Allen Bowman, Director of Golf, outlined highlights of the Golf Budget, including: • Upgrade new Golf POS System to Golf -frac 3.1 • 25% dues increase, in line with main competitor • True fiscal year for golf dues to match Village's fiscal year • Nominal increase in other fees to include cart, walking, and resident card • Change in guest policy will eliminate non-residents gaming the system and protect the integrity of offering • Addition of Golf Merchandising Assistant to help increase merchandise revenue • Hire outside marketing vendor to increase national exposure • New golf course maintenance vendor resulted in increase in contract labor and enhanced condition of the course and range GOLF FEE SCHEDULE CHANGES Mr. Bowman outlined a proposed fee schedule change, with a 25 percent increase in all areas except Corporate Membership. He reviewed projected revenues and discussion ensued regarding management of guests and visitors and the costs. Consensus was to review the fees further before finalizing for FY 2020 FY 2020 GOLF BUDGET SUMMARY % Increase/ $ Increase/ Category FY 2020 Budget FY 2019 Budget Decrease Decrease Salary & Benefits $793,618 $596,460 33.05% $197,158 Operating $2,429,425 $1,535,700 58.20% $893,725 Total Expenses $3,656,732 $2,565,849 42.52% $1,090,883 Mr. Bowman reviewed changes and broke down line items for further explanation, including: • Addition of full-time Trades Mechanic position • Several vacant positions were not budgeted in FY 2019 due to the course being closed • Marketing firm vs. budgeted position under advertising and marketing • Increased business resulting in an increase in the charge card fee • Increases in contractual services including the golf maintenance contract, landscaping, and j anitorial • Increases to expenses for trees and sod, golf supplies, and range balls Village Council Workshop Session held August 14, 2019 Page 8 of 9 • Increase in merchandise • Repairs and maintenance increased for incidental repairs and maintenance on clubhouse, holiday lighting, exterminating, tree trimming, and irrigation • Utility expenses for new building consolidated into one budget Discussion ensued regarding utilities and expenses. FY 2020 FOOD AND BEVERAGE BUDGET HIGHLIGHTS Mr. Lukasik outlined highlights in the Food and Beverage budget, including: • Lease established with Farmer's Table NPB, LLC, for $100,000 annually • $5 million food and beverage gross revenue projected year one (1), with five (5) percent of gross over $2 million going to the Village • Operator to reimburse 50 percent of utility costs • Operator to pay up to $12,000 for property tax assessment • All facility upgrades and FF&E remain with the Country Club • Operator responsible for all food and beverage staffing and payroll related costs • Farmer's Table works directly with Club GM to ensure smooth flow of operation and member -service focus FY 2020 FOOD AND BEVERAGE BUDGET SUMMARY Description FY 2020 Revenue Comment Lease $215,000 8 -month lease in first year, assumes $5 million in sales Reimbursement to Village $114,500 50% of utility costs and up to $12,000 for property tax assessment Total Revenue $3299500 % Increase/ $ Increase/ Category FY 2020 Budget FY 2019 Budget Decrease Decrease Salary & Benefits 0 0 0 0 Operating $5000 $12,314 306.04% $37,686 Total Expenses $50,000 $12,314 306.04% $375686 Mr. Lukasik explained the operating costs for FY 2020 included reimbursement of the Food and Beverage Broker commission per the lease agreement and property tax assessment, $12,000 of which was reimbursable by the operator. FY 2020 COUNTRY CLUB ADMINISTRATION BUDGET SUMMARY % Increase/ $ Increase/ Category FY 2020 Budget FY 2019 Budget Decrease Decrease Salary & Benefits $212,601 $231,838 -8.30% ($19,237) Operating $21,700 $23,700 2.11% ($2,000) Total Expenses $280,856 $302,093 -7.03% ($21,237) Village Council Workshop Session held August 14, 2019 Page 9 of 9 FY 2020 BUDGET HEARING AND WORKSHOP DATES Mr. Lukasik outlined the Budget Workshop dates and stated hearings would be scheduled for t September 12 and 26. He explained the Council would be discussing the Police, Fire Rescue, and Community Development Budgets at the next meeting on August 21. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 9:49 p.m. Jes ica Green, MM i lage Clerk