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[CC Briefings 03252026]
CALLED TO ORDER.I'M GONNA WAKE UP TOMORROW THINKING IT'S WEDNESDAY.
CALL THE ORDER STAFF PRESENTATIONS.
BILL, WE START WITH FISCAL YEAR 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT.
UH, GOOD AFTERNOON, MAYOR AND UH, COUNCIL MEMBERS.
THANK YOU FOR YOUR TIME TODAY.
I'M ISHA GA CONTROLLER IN FINANCE DEPARTMENT.
I AM PLEASED TO REPORT THAT CITY'S PHYSICAL YEAR 2025 AUDIT AND ANNUAL COMPREHENSIVE FINANCIAL REPORT HAS BEEN COMPLETED.
FINANCE TEAM HAS BEEN WORKING DILIGENTLY, UH, ON AUDIT AND THE PREPARATION OF THE REPORT SINCE OCTOBER.
THIS IS A HUGE ACCOMPLISHMENT FOR FINANCE DEPARTMENT AND THE REFLECT TEAM DEDICATION AND HARD WORK.
I WOULD LIKE TO THANK BOTH OUR FINANCE STAFF AND OUR AUDITORS FOR THEIR EFFORT IN COMPLETING THIS REPORT.
AT THIS TIME, I WOULD LIKE TO INTRODUCE JENNIFER, UH, AUDIT PANEL WITH WEAVER, UH, WHO IS HERE TODAY TO PRESENT OUR AUDIT RESULTS.
I'M THE ENGAGEMENT PARTNER FOR THE CITY.
UM, WE HAVE COMPLETED THE AUDIT FOR FISCAL YEAR ENDED SEPTEMBER 30TH, 2025.
I'LL BRIEFLY GO THROUGH THE AUDIT PROCESS, THE AUDIT TIMELINE, SOME REQUIRED COMMUNICATIONS, UM, THAT ARE REQUIRED BY THE STANDARDS, UM, WITH REGARDS TO THE AUDIT, AND THEN I'LL OPEN IT UP FOR ANY QUESTIONS THAT YOU ALL MAY HAVE.
SO TO START IT OFF, WE PERFORM THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS WELL, AND, UH, GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS OUTSIDE OF THE FINANCIAL STATEMENT AUDIT.
WE ALSO PERFORM A SINGLE AUDIT OVER THE FEDERAL FINANCIAL ASSISTANCE, AND THAT'S DONE IN CONJUNCTION WITH THE UNIFORM GUIDANCE THAT'S ISSUED, UM, FROM THE FEDERAL GOVERNMENT.
WE ALSO COMPLETE COMPLIANCE TESTING.
UM, THAT COMPLIANCE TESTING IS GOING TO BE OUTSIDE OF THE SINGLE AUDIT, AND IT REALLY FOCUSES ON OTHER LAWS, REGULATIONS, UM, GRANT AGREEMENTS THAT DON'T FALL, UM, UNDER THE NORMAL UNIFORM GUIDANCE.
THE LARGEST, UM, COMPLIANCE TEST WITH REGARDS TO THIS TESTING IS GOING TO BE THE PUBLIC FUNDS INVESTMENT ACT.
YOU KNOW, AS YOU SHALL MENTIONED, WE REALLY START THIS, UM, AUDIT VERY EARLY ON.
WE DO OUR INTERIM FIELD WORK IN SEPTEMBER.
WE COME BACK OUT FOR OUR FINAL FIELD WORK IN DECEMBER AND JANUARY.
UM, WE COMPLETE THE AUDIT, UM, BETWEEN THAT TIMEFRAME AND THEN WE PRESENT, WE TYPICALLY PRESENT TO F AND G AND THEN WE, UM, HAVE THE FINALIZED AUDIT COME TO, UM, COUNCIL, AND THEN WE START THE WHOLE AUDIT PROCESS OVER AGAIN.
JUST AN OVERVIEW OF, UM, OUR APPROACH AND THE RESULTS THEMSELVES.
UM, THERE WERE NO CHANGES TO THE APPROACH THAT WE SET FORTH THIS FISCAL YEAR.
SO INTERNALLY, MY TEAM, WE GET TOGETHER LOOK AT THE RISK WITH REGARDS TO THE CITY.
UM, RISKS THAT WERE IDENTIFIED DURING THE COURSE OF THE AUDIT, UM, WAS IMPROPER REVENUE RECOGNITION THAT REALLY IS GOING TO BE PERVASIVE AT ANY AUDIT THAT WE DO.
IT'S NOT NECESSARILY SPECIFIC TO, UM, A MUNICIPALITY.
UM, BECAUSE IF YOU GO AND LOOK AT A COMMERCIAL CLIENT, REAL ESTATE CLIENT, WHATEVER THE CASE MAY BE, IMPROPER REVENUE RECOGNITION IS GOING TO BE AN AREA OF RISK THAT THE AUDITORS ARE GOING TO LOOK AT.
WE HAVE ISSUED AN UNMODIFIED OPINION.
IT'S THE HIGHEST LEVEL OF ASSURANCE THAT CAN BE PLACED ON A SET OF FINANCIAL STATEMENTS.
IN ADDITION, WHEN YOU'RE LOOKING AT THE SINGLE AUDIT, UM, WE DO LOOK AT INTERNAL CONTROLS OVER THE, UM, CITY'S ENVIRONMENT AS A WHOLE.
AND THEN WE LOOK AT INTERNAL CONTROLS OVER COMPLIANCE WITH REGARDS TO FEDERAL FINANCIAL ASSISTANCE.
WE'VE ISSUED, UM, AN UNMODIFIED OPINION ON COMPLIANCE WITH REGARDS TO THOSE FEDERAL FINANCIAL ASSISTANCE PROGRAMS THAT WE'VE TESTED.
AND THEN WE ALSO NOTED NO SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES WITH REGARDS TO THE INTERNAL CONTROLS OF THE CITY.
UM, OVERARCHING CITY AS A WHOLE OR UM, OVER THOSE FEDERAL FINANCIAL, UM, ASSISTANCE PROGRAMS THAT WE TESTED.
WE ALSO HAD NO UNCORRECTED MISSTATEMENTS AND NO MATERIAL MISSTATEMENTS THAT WERE IDENTIFIED DURING THE COURSE OF THE AUDIT.
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AUDIT, THIS REALLY IS THE BEST THAT YOU CAN GET.UM, YOU KNOW, THERE IS NO ABSOLUTE ASSURANCE WHEN IT COMES TO AN AUDIT.
UM, BUT WHEN YOU'RE STEPPING BACK AND LOOKING AT IT FROM AN AUDITOR STANDPOINT, UM, HAVING AN UNMODIFIED OPINION, UM, NO SIGNIFICANT DEFICIENCIES, NO MATERIAL WEAKNESSES, AND THEN NO, UM, AUDIT ADJUSTMENTS IS REALLY ALL THE, ALL THAT YOU CAN ASK FOR.
THIS IS JUST A LITTLE BIT MORE INFORMATION ABOUT THE SIGNIFICANT RISK WHEN YOU'RE LOOKING AT THOSE SIGNIFICANT RISK.
UM, THE THING THAT I DO WANNA POINT OUT IS IT TALK, IT SPEAKS TO, UM, THE TYPE OF WORK THAT IS PERFORMED IN CONJUNCTION WITH THOSE SIGNIFICANT RISK MANAGEMENT OVERRIDE OF CONTROLS.
WE DO JOURNAL ENTRY TESTING, UM, INCORPORATE ELEMENTS OF UNPREDICTABILITY, REVIEW SIGNIFICANT ESTIMATES FOR, UM, ANY TYPE OF BIAS.
THERE WERE NO AUDIT FINDINGS ASSOCIATED WITH THAT TEST WORK.
AND THEN ALSO ON THE REVENUE RECOGNITION SIDE, UM, CHARGES FOR SERVICES, IF YOU'RE LOOKING AT CHARGES FOR SERVICES ON A CUSTOMER LEVEL, THAT'S GOING TO BE WHAT IS CONSIDERED TO BE IMMATERIAL.
UM, BUT WHEN YOU LOOK AT IT IN THE AGGREGATE, SO IF YOU'RE LOOKING AT WATER AND SEWER UTILITY BILLING IN A WHOLE, IT BECOMES A MUCH LARGER, UM, REVENUE STREAM.
AND SO THAT'S WHY WE DO DROP TO A MUCH LOWER, UM, SCOPE ON THOSE ITEMS. AND WE'RE LOOKING AT THE INDIVIDUAL LEVEL AND LOOKING AT THE TESTING FROM THAT STANDPOINT.
WE HAD NO FINDINGS WITH REGARDS TO THAT.
UM, TEST WORK, THIS IS JUST SOME OF THE REQUIRED COMMUNICATIONS.
UM, SIGNIFICANT ACCOUNTING POLICIES ARE INCLUDED IN NOTE ONE.
UM, THE SIGNIFICANT ACCOUNTING ESTIMATES, WHICH IS INCURRED BUT NOT REPORTED LIABILITIES, UM, PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES, EXPENSES RELATED DEFERRED BALANCES.
SO IF YOU THINK ABOUT YOUR PENSION, UM, AND OTHER OPE LIABILITIES.
AND THEN THE LANDFILL, UM, CLOSURE LIABILITY, THOSE ARE GONNA BE THE LARGEST, UM, ESTIMATES HERE AT THE CITY.
THERE WERE NO SIGNIFICANT UNUSUAL TRANSACTIONS, NO SUSPECTED FRAUD, UM, NO DIFFICULTIES THAT WERE ENCOUNTERED DURING THE COURSE OF THE AUDIT.
UM, WE DO REQUIRE CERTAIN RI WRITTEN REPRESENTATIONS, UM, PRIOR TO THE ISSUANCE OF THE REPORT THAT YOU ALL HAVE.
AND SO WE DID GET THAT, UM, IN CONJUNCTION WITH THE RELEASE OF THE FINANCIAL STATEMENTS.
AND THEN THERE IS NO MANAGEMENT CONSULTATIONS THAT ARE REQUIRED TO BE DISCLOSED TO THIS GROUP AND NO OTHER SIGNIFICANT MATTERS OR FINDINGS THAT WE NEED TO, UM, DISCUSS.
SO I DO WANT TO, YOU KNOW, KIND OF ECHO WHAT, UM, Y SHALL SAID.
WE DO REALLY APPRECIATE THE TEAM THAT, UM, YOU ALL HAVE HERE.
UM, AND THAT, YOU KNOW, SPANS MANY DIFFERENT DEPARTMENTS HERE AT THE CITY.
IT'S NOT JUST THE FINANCE DEPARTMENT.
UM, WE DO REACH OUT TO VARIOUS DIFFERENT GROUPS ACROSS THE CITY AS A WHOLE.
AND SO WE DO REALLY APPRECIATE THEM.
I'LL TURN IT OVER TO YOU FOR ANY QUESTIONS THAT YOU HAVE.
COUNCIL, ANYBODY HAVE ANY QUESTIONS? SOUNDS LIKE A PRETTY THOROUGH COUNCIL MEMBER.
UH, ADAMS JUST WANNA DO A QUICK REVIEW OF, UM, YOUR STATEMENT OF REVENUE EXPENDITURES AND CHANGE IN FUND BALANCE.
UM, IF I'M READING THIS CORRECTLY, THERE WAS A DEFICIT OF 41 MILLION.
I'LL HAVE TO, CAN I GET IT REAL REPORT REAL QUICK? OKAY.
PAGE 30, 31, PARTICULARLY 31 WITH THE TOTAL, YOU SAID PAGE 30, 31.
31 HAS THE TOTAL SPANS BOTH PAGES, BUT I'M JUST BASICALLY LOOKING AT THE TOTALS AT THE END FAR RIGHT COLUMN.
SO THE, THE CHANGE, IS THAT WHAT YOU'RE MM-HMM
SO THAT WASN'T A DEFICIT AND IT LOOKED LIKE IT WAS POSSIBLY DUE TO CIP AND THERE'S A COLUMN NON MA NON-MAJOR GOVERNMENTAL FUNDS.
WHAT IS INCLUDED IN THOSE FUNDS? YEAH, SO THE NON-MAJOR GOVERNMENTAL FUNDS ARE GOING TO BE THE, THAT'S THE AGGREGATE OF ALL OF THOSE FUNDS.
IF YOU GO TO LOOK AT PAGE, STARTING ON PAGE ON PAGE ONE 13, IT'S GOING TO BE THE LIST OF ALL THE NON-MAJOR, UM, FUNDS THAT, UH, MAKE UP THE, UM, COMBINING FINANCIAL STATEMENTS.
BUT PRIMARILY THAT'S GOING TO BE MO MOST OF THESE ARE GOING TO BE YOUR SPECIAL REVENUE FUNDS THAT HAVE, UM, OUTSIDE RESTRICTIONS ASSOCIATED WITH THEM AND, UM, OR, YOU KNOW, SOME TYPE OF LAW RESTRICTING THOSE.
AND THEN ALSO THE CAPITAL PROJECTS.
AND SO IT'S GONNA HAVE MORE OF THE
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CAPITAL PROJECTS PROGRAMS THAT ARE IN THERE, BECAUSE IN THE BEGINNING, THAT'S JUST YOUR MAJOR FUNDS.SO STREETS THAT THOSE ARE MAJOR FUNDS.
BUT THEN ONCE YOU MOVE ON, THESE ARE LOWER, UM, IN DOLLAR VALUE, BUT THERE'S GONNA BE, HOW MANY DO Y'ALL HAVE? SIX OTHER CAPITAL PROJECTS FUNDS THAT MAKE UP THE REMAINING CAPITAL PROJECTS THAT WOULDN'T MEET THE MAJOR, UM, PROGRAMS ARE SOLD.
AND STILL ON PAGE 31, UM, IS THAT OUR TOTAL FUND BALANCE TO 4 0 9 9 17? THAT'S GONNA BE FOR THE GOVERNMENTAL FUNDS? YEAH, THE ENDING FUND BALANCE AS OF SEPTEMBER 30TH, 2025.
AND THERE WERE NO SIGNIFICANT, SIGNIFICANT, UM, SUBSEQUENT EVENTS IDENTIFIED BY THAT? THAT'S CORRECT.
COULD, COULD, COULD YOU, I'M LOST.
COULD YOU SHOW ME BEST OF THE, THE 45 MILLION YOU'RE TALKING ABOUT? IS THAT, OH, PAGE 31, THAT'S JUST THE FUND BALANCE END OF THE YEAR 4 0 9.
WHERE'S THAT AT? OH, I SEE IT UP HERE.
AND IT DOESN'T ENCOMPASS THE TRANSFERS THAT YOU ALL ARE, UM, MOVING BETWEEN OR ANY OTHER SOURCES OR USES.
SO WHEN THE CITY IS ISSUING ANY TYPE OF BONDS, UM, THAT'S GONNA BE WHAT WOULD BE CONSIDERED BELOW THE LINE.
ANYBODY ELSE? THANK YOU VERY MUCH.
IT'S GOOD TO HAVE AN AUDIT COMPLETED.
TANGLE REDS GOLF MANAGEMENT UPDATE.
CITY COUNCIL MEMBERS, UH, RAY SERTA, DIRECTOR OF PARKS ARTS AND RECREATION IN AUGUST OF 2025.
WE CAME BEFORE THE FINANCE AND GOVERNMENT COMMITTEE TO DISCUSS THE FUTURE OF TANGO RIDGE GOLF CLUB.
AS THE CURRENT MANAGEMENT CONTRACT ENTERED ITS FINAL YEAR WITH NO RENEWALS REMAINING.
HOW LONG WAS THAT CONTRACT? IT WAS 10 YEARS.
DURING THAT MEETING, WE PRESENTED SEVERAL POSSIBLE OPERATING MODELS AND ASKED THE COMMITTEE'S GUIDANCE ON HOW THEY WOULD LIKE TO PROCEED.
THE COMMITTEE DIRECTED US TO ISSUE A REQUEST FOR PROPOSAL FOR A FULL SERVICE MANAGEMENT FIRM TO OVERSEE THE ENTIRE OPERATION, INCLUDING THE CLUBHOUSE, THE FOOD AND BEVERAGE, AND THE MAINTENANCE OPERATIONS.
FOLLOWING THAT DIRECTION, OUR TEAM MOVED FORWARD WITH THE RFP PROCESS.
WE CON CONDUCTED A COMPREHENSIVE REVIEW OF THE PROPOSALS RECEIVED AND EVALUATED EACH SUBMISSION BASED ON OPERATIONAL EXPERIENCE, FINANCIAL PERFORMANCE, AND OVER OVERALL FIT FOR THE TANGO RIDGE.
TODAY WE ARE HERE TO SHARE YOU THE RESULTS OF THE PROCESS AND PRESENT OUR RECOMMENDATION FIRM FOR YOUR CONSIDERATION.
WITH THAT, I'M GONNA TURN IT OVER TO STEVEN BOWLES, OUR ADMINISTRATIVE AND FINANCIAL DIVISION CHIEF, AND CHRIS MAHOKY, THE ASSISTANT DIRECTOR TO WALK YOU THROUGH SOME OF THESE DETAILS.
I JUST WANT TO CLARIFY SOME THINGS 'CAUSE OF SOME QUESTIONS.
I'VE HAD THE EMPLOYEES OUT AT TANGLE RIDGE AREN'T CITY EMPLOYEES NOW, OR ARE THEY, GO AHEAD.
THE, UH, CLUBHOUSE EMPLOYEES ARE EMPLOYEES OF THE THIRD PARTY VENDOR OUT THERE.
THE MAINTENANCE STAFF AT TANGLE RIDGE ARE CITY EMPLOYEES.
AND MARK, WHO'S MARK WORKED FOR, HE'S THE COM MANAGEMENT CONTRACTS WITH HIM, CORRECT? WELL, HE, MARK KOSKI GOLF MANAGEMENT IS OUR CURRENT VENDOR OUT THERE.
HE'S THE CURRENT VENDOR, CORRECT.
NOT AN EMPLOYEE, CORRECT? THAT IS CORRECT.
VERSUS THE WAY WE DO IT AT PRAIRIE LAKES, CORRECT.
BURT'S AN EMPLOYEE, CORRECT? THAT IS CORRECT.
I JUST WANTED TO CLARIFY THAT.
AS RAY SAID, I'M STEVEN BOWLES, PARKS FISCAL AND ADMINISTRATIVE DIVISION CHIEF.
UM, RAY ALSO MENTIONED WE CAME BEFORE THE FINANCE AND GOVERNMENT COMMITTEE LAST AUGUST TO MAKE EVERYONE AWARE THAT, UH, THE CURRENT VENDOR OUTTA TANGLE RIDGE WAS COMING INTO THE LAST RENEWAL, UM, ON THEIR CONTRACT.
UH, NO RENEWALS REMAIN, AND SO WE WERE FACING THE OPTION OF WHAT TO DO NEXT.
AND WE PRESENTED THREE OPTIONS TO THE FINANCE AND GOVERNMENT COMMITTEE AT THAT TIME.
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ONE WAS TO ISSUE AN RFP SIMILAR TO THE EXISTING CONTRACT THAT WOULD BE TO MANAGE THE CLUBHOUSE AND FOOD AND BEVERAGE OPERATIONS WITH THE CITY, UH, CONTINUING TO MAINTAIN THE COURSE.OPTION TWO WAS TO ISSUE AN RFP TO OPERATE ALL ASPECTS OF THE, UH, THE GOLF COURSE OPERATION TO INCLUDE THE MAINTENANCE ASPECT.
AND THEN A THIRD OPTION WAS TO ISSUE NO RFP AT ALL TO LET THE CURRENT CONTRACT EXPIRE AND THE CITY TAKE OVER THE ENTIRE OPERATION ITSELF.
THE RECOMMENDATION FROM THE COMMITTEE AT THAT TIME WAS TO GO AHEAD AND ISSUE AN RFP TO OPERATE ALL ASPECTS OF THE OPERATION.
UM, OPTION NUMBER TWO UP THERE.
WE ISSUED THE RFP ON AUGUST 25TH.
IT WAS IN THE FORT WORTH STAR TELEGRAM, AS WELL AS POSTED ON PLANET BIDS.
IT WAS ALSO SENT OUT TO 41 IDENTIFIED VENDORS WHO WORK IN THAT SPACE.
THE CITY RECEIVED NINE RESPONSES.
THE TOP SEVEN OF THOSE RESPONSES WENT THROUGH A FIRST ROUND INTERVIEW THAT INCLUDED THE CURRENT VENDOR OUT AT TANGLE RIDGE.
THE HIGHEST SCORING FINAL TWO FROM THOSE, UH, FROM THE RESULTS OF THOSE CAME BACK FOR A SECOND INTERVIEW OVER HERE AT CITY HALL.
AND AT THE END OF THE, THE PROCESS, ELITE GOLF MANAGEMENT HAD THE HIGHEST SCORE AND WAS OUR SELECTED BY OUR STAFF TO BE THE RECOMMENDATION.
NOW, WHO IS ELITE GOLF? THEY WERE FOUNDED IN 2009.
THEY OPERATE 10 DIFFERENT COURSES UNDER MANAGEMENT CONTRACTS IN SIX DIFFERENT STATES.
FOUR OF THOSE MANAGEMENT CONTRACTS ARE MUNICIPAL COURSES THAT OPERATE VERY SIMILAR TO TANGLE RIDGE.
FOUR OF THOSE COURSES ARE ALSO LOCAL THAT INCLUDE SOUTHERN OAKS CLUB IN BURLESON, IRVING GOLF CLUB IN IRVING, WHITESTONE GOLF CLUB IN BENBROOK AND HARBOR LAKES GOLF CLUB IN GRANBURY.
THEIR OWNER, KEITH FLAT, IS FROM THIS AREA FROM DFW.
HE GREW UP PLAYING AT WHAT AT THE TIME WAS GRAND PRAIRIE MUNICIPAL, NOW PRAIRIE LAKES AND ALSO PLAYED AT TANGLE RIDGE SINCE ITS OPENING BACK IN THE NINETIES.
UH, ELITE GOLF IS ALSO HERE TODAY WITH REPRESENTATIVES THAT WILL BE AVAILABLE TO ANSWER QUESTIONS IF YOU FEEL NEED TO ASK THEM.
THEIR PROPOSAL INCLUDES $12,000 OF THEIR OWN FUNDS TO, UH, TURN OVER TO THE DEPARTMENT TO HANDLE ANY SMALL CAPITAL IMPROVEMENTS THAT WE COULD DO AROUND THE CLUBHOUSE OR GOLF COURSE.
AND THEN THEIR ACTUAL CONTRACT INCLUDES A FLAT RATE $72,000 ANNUAL FOR MANAGEMENT OF THE ENTIRE OPERATION.
THAT INCLUDES THE GOLF COURSE MAINTENANCE, AND THEN THERE'S ADDITIONAL TIERED INCENTIVES BASED ON REVENUE FOR UP TO AN ADDITIONAL 72,000.
WITH 144 BEING THE MAXIMUM THEY WOULD RECEIVE ANNUALLY WITH THAT, THE CITY WOULD RECEIVE A HUNDRED PERCENT OF THE NET PROFIT OF ALL THE GOLF REVENUES.
THAT'S GONNA BE YOUR GREENS FEES, CART FEES, RANGE FEES, AND ANNUAL PASS FEES.
IN ADDITION TO THAT, WE WOULD ALSO RECEIVE A HUNDRED PERCENT OF THE NET PROFITS FROM THE PRO SHOP RETAIL SALES AND THE FOOD AND BEVERAGE SALES.
I WANNA HIGHLIGHT THAT BECAUSE THAT IS A STARK DIFFERENCE FROM THE CURRENT CONTRACT OUT THERE.
RIGHT NOW, WE CURRENTLY RECEIVE 5% OF THE GROSS PRO SHOP SALES AND 10% OF THE GROSS FOOD AND BEVERAGE SALES.
UM, IN ADDITION TO JUST THE PROFIT CENTER, WE ALSO WOULD HAVE ACCESS TO THEIR ENTIRE TEAM OF MARKETING, FOOD AND BEVERAGE EXPERTS, AGRONOMY, UM, THEIR, THEIR ENTIRE STAFF TAKING A LOOK.
OH, IT'S GETTING A LITTLE BIT CUT OFF THERE, BUT, UH, WHAT IT WOULD LOOK LIKE ON A FINANCIAL STANDPOINT TO THE GOLF FUND, I WANNA REMIND EVERYONE THE GOLF FUND OPERATES AS AN INDEPENDENT ENTERPRISE FUND THAT DOES NOT RECEIVE FUNDING FROM SALES TAX OR GENERAL FUND OR ANY OTHER MATTER OTHER THAN FROM ITSELF.
UM, SO WE DO MAXIMIZE PROFITS WHERE WE CAN IN THE GOLF FUND.
UNDER THE CURRENT YEAR'S PROJECTION, UM, UNDER THE CURRENT VEN VENDOR, WE'RE LOOKING AT OPERATING REVENUES BEING JUST SHY OF $2.2 MILLION.
UH, IF WE WERE TO OPERATE, AND THIS IS ASSUMING NO CHANGE TO FEES, NO CHANGE TO ANY KIND OF COST STRUCTURE OUT OF THE COURSE.
THIS IS KEEPING THE CURRENT RATES THE SAME AS THEY ARE, SAME NUMBER OF ROUNDS.
WE'D BE LOOKING AT ALMOST 2.7 UNDER THIS MANAGEMENT CONTRACT.
THAT INCREASE IN REVENUE IS LARGELY TIED TO WHAT I JUST MENTIONED ABOUT GETTING A HUNDRED PERCENT OF THE NET PROFITS FROM THE FOOD AND BEVERAGE AND THE PRO SHOP RETAIL SALES, WHICH RIGHT NOW WE GET A SMALL PERCENTAGE OF, AND THAT LEADS TO A CHANGE JUST TO THE REVENUE SIDE OF ALMOST $500,000 ON ONE YEAR.
EXPENDITURES DO GO UP SOME, UH, THAT IS MOSTLY BECAUSE IF WE'RE OPERATING THE FOOD AND BEVERAGE AND, UM, AND THE PRO SHOP SPACE, WE ALSO DO HAVE THE ADDITIONAL OVERHEAD, THE COST OF GOODS THAT WE WOULD BE SELLING, BUYING THE HOT DOGS THAT WE TURN AROUND AND SELL AT THE COURSE AND THAT SORT OF THING.
UH, WE'D STILL BE LOOKING AT AN INCREASE OF NET PROFIT OF A LITTLE OVER $160,000.
WE'D BE LOOKING AT AN ANNUAL NET PROFIT, AGAIN, WITH NO CHANGE TO GOLF FEES OF A LITTLE OVER $400,000 OVER THE COURSE OF FIVE YEARS, WE'D BE LOOKING AT ADDING OVER $2 MILLION TO THE BOTTOM LINE IN THE GOLF FUND.
BASED ON THAT, IT IS OUR DEPARTMENT'S RECOMMENDATION THAT WE MOVE FORWARD WITH ELITE GOLF MANAGEMENT AFTER THEY SCORED THE HIGHEST IN ALL THE EVALUATIONS.
WE DO RECOMMEND AWARDING A ONE YEAR CONTRACT WITH OPTIONAL RENEWALS.
UH, WE BELIEVE THAT GIVES US THE BEST FLEXIBILITY TO MEET CHANGING NEEDS INTO THE FUTURE IF THINGS NEED TO PIVOT.
AND, UH, THAT TOTAL AMOUNT WOULD NOT EXCEED $144,000
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ANNUALLY, WHICH IF ALL FIVE YEARS WERE EXECUTED, THAT WOULD BE $720,000 OVER THE COURSE OF FIVE YEARS.AND WITH THAT, I'M SURE THERE ARE QUESTIONS.
THIS IS AN ITEM ON THE AGENDA TONIGHT.
UM, OH, I MEANT TO MENTION THAT.
IT'S ITEM 14 ON THE AGENDA TONIGHT.
UM, ANY QUESTIONS OR COMMENTS FOR STAFF AT THIS TIME? COUNCIL MEMBER CLEMSON? YES.
UM, THANK YOU FOR THE PRESENTATION AND, UH, HOW WILL THIS AFFECT OUR EMPLOYEES THAT WE HAVE CURRENTLY? THANK YOU.
UM, SO THE CURRENT CITY EMPLOYEES OUT THERE AT TANGLE RIDGE GOLF COURSE, WE DO HAVE NINE FULL-TIME STAFF MEMBERS ON THE MAINTENANCE TEAM OUT THERE.
UM, WE'VE DISCUSSED THIS WITH ELITE GOLF.
UM, HOW THEY TYPICALLY COME IN WHEN, UH, A COURSE LIKE THIS WANTS TO GO OVER TO THEIR MANAGEMENT TEAM.
NOW THEY TYPICALLY HAVE A 90% OR BETTER RETENTION RATE OF CURRENT STAFF, WHICH MEANS THAT IF ANY OF THOSE STAFF MEMBERS OUT THERE, AND THIS WOULD INCLUDE BOTH OUR STAFF AND THE ONES WORKING FOR THE CURRENT VENDOR, IF THEY WISH TO STAY WORKING AT TANGLE RIDGE, THEY WILL GET AN OFFER FROM THIS COMPANY TO COME STAY ON THE STAFF AT TANGLE RIDGE.
NOW, IF ANY OF THE CITY STAFF WISH TO STAY WITH THE CITY, MEANING THEY WANNA STAY IN TMRS AND RECEIVE THE CITY'S HEALTH BENEFITS, ALL OF THE SKILL SETS THAT THOSE GUYS UTILIZE OUT THERE WE'RE TALKING ABOUT THE IRRIGATION, THE MOWING, THE, THE FERTILIZATION, THE THINGS THEY DO THAT ARE VERY EASILY TRANSFERABLE TO OTHER AREAS IN OUR PARKS DEPARTMENT.
FOR ONE, WE HAVE ANOTHER GOLF COURSE, PRAIRIE LAKES GOLF COURSE.
WE CAN FIND A PLACE FOR 'EM THERE OR THEY'D ALL BE BENEFICIAL TO ADD TO OUR PARK MAINTENANCE OR LAKE MAINTENANCE TEAMS IF THEY WISH TO STAY WITH US.
SO, LONG STORY SHORT, THEY CAN STAY IF THEY WANT TO OR WE CAN FIND 'EM ANOTHER JOB.
NO, NO CITY EMPLOYEE WOULD BE LET GO OR ANYTHING.
COUNCIL UH, MAYOR PROTI LASAGNA.
UM, I HAD A RESIDENT ASK ME IF ELITE GOLF TAKES OVER, WHO PERFORMS MAINTENANCE ON THE, UH, EQUIPMENT AND DO THEY HAVE TO PAY FOR, DO THEY BUY IT FROM US OR ARE WE THE ONES THAT ARE STILL LIABLE FOR THE, FOR THE EQUIPMENT? WHEN YOU TALK ABOUT EQUIPMENT, YOU MEAN LIKE OUR MOWERS AND THAT SORT OF THING OUT THERE? YEAH, SO THOSE TYPE OF THINGS WOULD BE CONSIDERED KIND OF PART OF THE PROPERTY.
SO WE WOULD THIS, WE, THE CITY WOULD STILL OWN THEM IF THERE WERE TIMES WHEN THERE WERE CAPITAL IMPROVEMENTS NEEDED, BIG PURCHASE ITEMS, ALL THAT, THAT WOULD STILL BE DONE, UH, BY THE CITY THROUGH THE CIP PROCESS.
THEY WOULD JUST BE GETTING THE MANAGEMENT CONTRACT TO OPERATE THEM OUT THERE.
SO, UM, FOR INSTANCE, OUR FLEET DIVISION, JASON RAMIREZ AND COLBY AND ALL THAT WOULD STILL BE THE ONES MAINTAINING THE TRUCKS, WHICH, WHICH THEY'RE THE ONES THAT MAINTAIN 'EM NOW, CORRECT? YES.
FIRST I WANT TO THANK, UH, CHRIS AND RAY AND YOU FOR, UH, MEETING WITH ME.
WHAT WAS IT THEREFORE YESTERDAY? SOMETHING LIKE THAT? YES SIR.
FOR ABOUT AN HOUR TO DISCUSS THIS, UM, BECAUSE I DIDN'T WANT ANYBODY TO BE THINKING I WAS TRYING TO THROW 'EM UNDER THE BUS.
AND, UH, COUNCIL, COUNCIL MEMBER SHORT TIME OVER THERE, UM, ASKED ONE OF MY QUESTIONS ABOUT MACHINERY MAINTENANCE.
UM, BASICALLY THAT'S THE MOWERS AND THE CARTS AND STUFF LIKE THAT.
UM, BUT ON AGAIN, ON THE MACHINERY, IF WE OWN THEM, AND I ASKED Y'ALL THIS MONDAY, SO I'M NOT SURPRISING YOU IF WE OWN THEM AND THEY GOT THEIR EMPLOYEES USING THEM AND SOMETHING, GOD FORBID HAPPENS THAT WOULD SOMEBODY GOT HURT OR SOMETHING LIKE THAT.
WHO HAS THE LIABILITY? IT'S THEIR EMPLOYEE, BUT OUR EQUIPMENT.
SO THAT'S, UH, SOMETHING THAT'S, YOU KNOW, I ASKED Y'ALL, YOU KNEW THAT YOU COULD HAVE, COULD FOUND AN ANSWER BETWEEN NOW AND THEN.
UM, SO, SO THEY WOULD EVEN ON OUR, OUR EQUIPMENT THAT'S KIND OF, YOU GET INTO A GRAY AREA THERE.
WE, WE WOULD STILL, UH, NOW OF COURSE THAT INSURANCE THAT THEY WOULD BE REQUIRED TO CARRY BY US WOULD BE PART OF THEIR OPERATING EXPENDITURES, WHICH WOULD THEN GET PASSED THROUGH TO US THROUGH THE BOTTOM LINE ANYWAY.
UM, BUT YES, THEY WOULD BE REQUIRED TO CARRY INSURANCE, INCLUDING WORKERS' COMP AND EVERYTHING ELSE.
AND WE WILL BE, THE WAY I UNDERSTAND IT, THEY WILL HAND A CHECK TO AN EMPLOYEE, BUT THE MONEY'S ACTUALLY COMING FROM US.
CORRECT? WELL, THEIR, THEIR PAYROLL COSTS WOULD BE PART OF THEIR EXPENDITURES.
SO PART OF THAT, UM, THAT, THAT MONEY THAT THEY LOSE YEAH,
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YOUR, YOUR TOTAL EXPENDITURE LINE THERE UNDER THAT, THAT'S PART OF THAT IS THEIR PAYROLL COST.SO YES, THE, THE EMPLOYEES WOULD BE GETTING A CHECK FROM ELITE GOLF MANAGEMENT.
THEY'D BE EMPLOYEES OF THEM, THEIR SUPERVISORS AND ALL THAT WOULD WORK FOR THEM.
UM, BUT THAT COST WOULD GET PASSED THROUGH TO US.
BUT THEY'RE THEY'RE THE ONES THAT ARE HANDING THEM THE CHECK.
SO WHO, I GUESS WE, I ASKED YOU THIS TOO, IS THERE LIKE A, LIKE A BAND OF DOLLARS THAT THEY CAN SPEND ON EMPLOYEES OR COULD THEY JUST, YOU KNOW, OPEN IT UP AND SAY, I'M GONNA PAY EVERYBODY 200 BUCKS AN HOUR AND DO THAT FOR A YEAR.
THEY THEY DO HAVE, AND, AND WE HAD DISCUSSIONS ABOUT SIMILAR THINGS LIKE HEY, HOW MUCH ARE YOU GONNA PAY, UM, A CART BOY, BECAUSE WE HAVE OUR OWN CART GUYS OVER AT PRAIRIE LAKES GOLF COURSE AND WE DON'T WANT A SITUATION WHERE EVERYONE JUMPED SHIP TO GO WORK FOR THE NEW COMPANY.
UM, WE WENT THROUGH SOMETHING VERY SIMILAR WHEN EPIC WATER'S OPEN AND WE HAVE OUR OWN LIFEGUARDS, WE WANNA MAKE SURE THAT WE'RE EQUITABLE.
UM, THEY TOLD US THAT THEY'RE VERY, UH, OPEN TO THOSE CONVERSATIONS ABOUT MAKING SURE THAT THEY'RE MATCHING KIND OF WHAT WE'RE PAYING THROUGHOUT THE CITY.
UM, SO THAT WE DON'T HAVE A SITUATION WHERE, UM, TWO PEOPLE ARE BEING PAID TWO VERY DIFFERENT AMOUNTS FOR THE SAME JOB.
SO THINK ABOUT THIS JUST LIKE EPIC WATERS.
SO THAT IS, IT IS GONNA BE RUN IDENTICALLY FROM A STRUCTURAL STANDPOINT AS EPIC WATER.
SO IT'LL BE A MANAGEMENT CONTRACT, NOT A LEASE.
SO THEY WILL HAVE TO PRESENT US WITH AN ANNUAL BUDGET THAT WE WILL THEN APPROVE.
SO WE WILL BE THROUGH THAT PROCESS, WE WILL BE CONTROLLING THOSE EXPENDITURES.
WELL I WAS GONNA SAY I WOULD EXPECT IT TO BE A LITTLE BIT MORE SINCE THEY'RE GONNA BE LOSING SOME GOOD BENEFITS.
SO, BUT WOULD STILL BE BE AT OUR APPROVAL.
SO WE WILL ACTUALLY, MEGAN, WE WILL ACTUALLY SEE A BUDGET FOR THIS.
UH, IT WILL BE THROUGH THE STAFF, JUST LIKE THROUGH EPIC WATERS, THE WAY WE HANDLE EPIC WATERS.
SO Y'ALL WILL SEE IT, BUT WE WON'T, IS THAT WHAT YOU'RE SAYING? THAT'S, YES SIR.
WELL THEN I GUESS I WOULD ASK TO, LET ME, YOU THINK YOU MIGHT OUGHT AT LEAST CONSIDER JUST GIVING IT TO US.
MAYBE WE DON'T HAVE TO HAVE AN ITEM ON IT, BUT AT LEAST LETTING US SEE IT.
UH, THANK YOU GUYS FOR THE PRESENTATION.
UH, I'M REALLY EXCITED ABOUT MOVING ON TO A NEW CONTRACT.
UH, THE LANGUAGE YOU HAVE IN HERE IN REGARDS TO THE EQUIPMENT.
THAT'S SOMETHING I'VE SEEN TYPICALLY THROUGHOUT MY EXPERIENCE WHERE WE PROVIDE THE EQUIPMENT MAINTAINED AND SO FORTH.
SO I'VE SEEN THAT AND UH, I WAS, I'M OKAY WITH THAT.
UM, THE NET INCREASE, UH, IN SERVICES AND, UH, PROFITS, UH, I THINK IT'S WONDERFUL BECAUSE WHEN I GOT HERE IN 2021, WE'RE IN THE RED, RIGHT? AND STILL TO THIS DAY, I'M JUST GONNA THROW THIS OUT HERE.
UM, NO ONE CAN TELL ME HOW WE WENT FROM ZERO TO A HUNDRED REAL QUICK.
BUT NUMBER, THE THIRD THING, UH, I THINK WE SHOULD CONSIDER JUST F AND G REVIEWING THAT CONTRACT FOR THE FIRST COUPLE OF YEARS.
LET IT COME BEFORE F AND G SO WE CAN LOOK AT IT AND, UH, REPORT BACK TO THE COUNCIL IN CASE THERE'S SOMETHING WE HAVE SOME CONCERNS WITH.
BUT JUST LIKE THE, UM, EPIC CONTRACT, WE DON'T HAVE ANY CONCERNS TO THAT.
I'M SURE WITH STAFF WE'RE NOT GONNA HAVE TOO MANY CONCERN CONCERNS WITH THAT, JUST MY RECOMMENDATION FOR IS TO BRING THAT BEFORE F AND G FOR REVIEW.
COUNCIL MEMBER ADAMS? YES, I I AGREE WITH DEPUTY, UM, MAYOR PRO, TIM, UH, JOHNSON AS FAR AS GIVING IT AN OPPORTUNITY, YOU SAID IT WAS A ONE YEAR CONTRACT AND WE HAVE AN OPPORTUNITY TO RENEW OR NOT NOT RENEW IF WE'RE NOT PLEASED.
IT'S A, IT'S A MUTUAL RENEWAL, MEANING THE CITY OR THE VENDOR CAN CHOOSE NOT TO EXECUTE THE RENEWAL.
AND WE ALSO HAVE THE 60 DAY CLAUSE.
THANK Y'ALL FOR THE LAST TIME.
I'M GONNA TURN IT OVER TO, UH, MAYOR PRO TEM IS ON YOU FOR AN AGENDA REVIEW.
UH, COUNSEL, WE HAVE ITEM SIX TO 13 ON THE CONSENT AGENDA.
DO WE HAVE ANY QUESTIONS? YES MA'AM.
MAYOR PRO TIM, UH, JUST WANTED TO PROVIDE AN UPDATE FOR EXHIBIT A FOR ITEM NUMBER THREE, THE RESOLUTION CANVASING AND DECLARING THE RESULTS.
UH, BEFORE YOU GET THE D YOU HAVE THE UPDATED NUMBERS FROM THE COUNTIES AND THOSE HIGHLIGHTED IN YELLOW ARE THE NUMBERS THAT CHANGED, UM, THAT INCLUDES SOME OF THE MAIL BALLOTS THAT WERE RECEIVED AND PROVISIONAL BALLOTS THAT WERE CONFIRMED.
ANY OTHER QUESTIONS? PASS IT BACK TO THE MAYOR.
[00:30:01]
OF, UH, COMMUNICATION, I WILL NOT BE REPLACING THE MAYOR PRO TEM UNTIL AFTER THE MAYOR ELECTION RESULTS.THE DEPUTY MAYOR PRO TEM ACTS AS THE MAYOR, PRO TEM ACTS AS THE MAYOR, WHICHEVER IT IS IN THE ABSENCE OF THE MAYOR PRO TEM.
SO THE NEXT MEETING, WHEN I TURN IT OVER TO THE MAYOR PRO TEM, I'LL ACTUALLY BE TURNING IT OVER TO THE DEPUTY MAYOR PRO TEM FOR THE AGENDA REVIEW.
WHAT THAT MEANS IS THERE'S NOT GONNA BE AN AUTOMATIC SECOND.
IF YOU NOTICE, WE ALWAYS HAVE THE MAYOR PRO TIMM MAKE SOME MOTIONS AND THE DEPUTY MAYOR PRO TIMM SECONDS IT.
BUT SOMEBODY WILL HOP IN THERE AND DO THE SECOND.
BUT WE'LL WAIT AND SEE THE RESULTS OF THE ELECTION AND THEN WE'LL MOVE FORWARD WITH A RECOMMENDATION FOR Y'ALL TO APPROVE.
AFTER THE ELECTION TONIGHT, WE WILL BE HAVING AN EXECUTIVE SESSION.
AND ALSO I'D LIKE TO SAY THAT TONIGHT THE KY FAMILY WILL BE HERE.
I'VE GOT, UH, SOMETHING TO READ INTO THE RECORD.
UH, WE HAVE SOME, UH, MONA, YOU'VE GOT SOME NICE LITTLE PRESENTATIONS TO GIVE THEM.
SHE HAD 'EM DONE FOR MIKE, FOR THE FAMILY.
SO, UH, WITHOUT FURTHER ADO, WE WILL BE DISCUSSING ITEM ONE, SECTION 5 5 1 0.071.
CONSULTATION WITH ATTORNEY DAVID NICHOLAS, OREGON DONOR AWARENESS FOUNDATION, INC.
ETAL VERSUS CITY OF GRAND PRAIRIE, ETAL NUMBER DC 25 2 1 6 9 6 90 FIFTH JUDICIAL DISTRICT COURT, DALLAS COUNTY, CITY OF GRAND PRAIRIE VERSUS THE GIBSON MULTI MF, LLC AT L NUMBER DC 25 18 900 100.
AND FIRST JUDICIAL DISTRICT COURT, DALLAS COUNTY.
ITEM TWO, SECTION 5 51 0.072 DELIBERATION REGARDING REAL PROPERTY ITEM FIVE, SECTION 5 5 1 0.087.
DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS.
WE'RE GONNA RECESS AND HAVE DINNER.
WE'VE GOT A NUMBER OF THINGS TO DISCUSS.
WE'LL MEET IN THE ROOM FOR OUR EXECUTIVE SESSION WHILE WE EAT.