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HomeMy WebLinkAbout2019-4-30AGENDA Nantucket Land Bank Commission Special Meeting of April 30, 2019 Land Bank Conference Room, 22 Broad Street Nantucket, Massachusetts CALL TO ORDER: 4:00 P.M. A. CONVENE IN OPEN SESSION: 1. GOLF BUSINESS a. Miacomet & Sconset Golf Courses — Management Contract Extension (2020 — 2021) Discussion b. Miacomet Golf Course — Clubhouse Replacement Financing Discussion c. 2019 Proposed Tournament Schedule 2. PROPERTY MANAGEMENT a. 50 Old South Road/Discovery Playground — Budget Review B. EXECUTIVE SESSION: The Executive Session is for Purpose 6 [G.L. c. 30A, 21(a)(6)J. The particular transactions and parcels of real estate are not identified since disclosure of the property information may have a detrimental impact on the Land Bank's negotiating position with one or more third parties. The Commission will not reconvene in open session at the conclusion of executive session. 1. Executive Session Minutes 2. Real Estate Acquisition ADJOURNMENT MINUTES Nantucket Land Bank Commission Special Meeting of April 30, 2019 Land Bank Meeting Room, 22 Broad Street Nantucket, Massachusetts CALL TO ORDER: 4:00 P.M. PRESENT: Richard Glidden, Kristina Jelleme, Neil Paterson, Allen Reinhard. John Stackpole. STAFF PRESENT: Eric Savetsky, Executive Director; Jesse Bell, Assistant Director; Susan Campese, Administrator/Finance Manager; Marian Wilson, Assistant Administrator. Inquirer and Mirror Reporter, Brian Bushard; Miacomet Golf Course ("MGC ") General Manager, Alan Costa; Director of Agronomy, Sean Oberly; and Director of Golf, Bryce Huntt were also present at call to order. I. CONVENE IN OPEN SESSION: A. GOLF BUSINESS: 1. Miacomet & Sconset Golf Courses ("SGC") — Management Contract Extension (2020-2021) Discussion: a. Management Contract Renewal Terms: Mr. Savetsky reviewed key provisions in the management contract as well as the renewal terms regarding compensation if the Commission voted to continue with NGM, Inc. for an additional two years. Additionally, Mr. Savetsky reviewed specific deliverables that were itemized in the contract but not currently being provided. b. Management Structure Review; Golf Teaching Financial Arrangement: Mr. Costa reported a change to the lesson income structure. He explained that teaching professionals would earn minimum wage plus 70% of their lesson fee, and golf professionals would be responsible for shop as well as tournament duties and would also receive a salary. as well as 70% of their lesson income (the latter of which was minimal). Under this arrangement, MGC would collect 30% of lesson and clinic fees which was an increase from 10% in prior years. -Mr. Savetsky suggested that the arrangement structure should be clearly detailed and presented in writing for Commission review. Mr. Costa agreed to provide the golf compensation terms in writing at a future meeting. c. Mission Vision Statement: Mr. Savetsky reviewed the Mission Vision Statement and inquired about the need for any further changes. The Commissioners concurred that the Mission Vision Statement should not be revised at this time. Land Bank Commission April 30, 2019 Page 2 Mr. Costa reviewed various logistical challenges with the construction, noting that prior to clubhouse completion the temporary trailers would need to be removed in order to finish the site work. Ms. Bell indicated that she would check with the Town as to where they would like it delivered. d. Policy and Planning Review: Mr. Savetsky reviewed a list of items requiring attention from NGM Inc. and suggested that he assign dates to the items to create an action plan that could be presented monthly at Land Bank meetings. e. Contract Requirements/Areas of Concern: Mr. Savetsky provided a list of items that need to be addressed moving forward, including an annual inventory of equipment report, policy regarding charitable giving to local non-profit organizations, monthly and annual rounds/covers report. Additionally, Mr. Savetsky requested that copies of membership and the waiting list be made available for public inspection. Mr. Costa explained that many people on the waiting list did not want their names on a public list. Commissioner Jelleme stated that this was a public golf course and inquired as to the legalities and industry standards. Mr. Savetsky said he would look into both questions and report back. Upon a motion made by Commissioner Glidden and duly seconded by Commissioner Reinhard, it was unanimously VOTED to extend the current contract to NGM, Inc., to provide management services of Miacomet and Sconset Golf Courses for the next two years. 2. Miacomet Golf Course — Clubhouse Replacement Financing Discussion: Ms. Savetsky provided a financial update for the estimated cost of the new clubhouse, proposing three different repayment options for two-thirds of the cost by golf course revenues with no interest. Mr. Costa indicated a preference for the 30 -year repayment plan. Commissioner Glidden relayed that certain golfers felt passionately that the Land Bank, as owners of this recreational facility, should be exclusively responsible for providing a quality golf experience for residents and visitors. Commissioner Jelleme pointed out that no one was being assessed and no fees were increasing to cover the cost and that each year management should budget accordingly with recommendations for fees and expense controls. Mr. Savetsky said based on the last few years of net profit before depreciation, the annual payback should be covered. Additionally, Mr. Savetsky asked for recommendations for additional revenue sources and suggested management should come back with a recommendation of how much cash was needed at the end of the year, so the excess cash could be moved to the capital fund. Mr. Costa stated he had plans to provide more resort amenities such as bag drop-off and pick-up services. Commissioner Jelleme expressed concern about this plan for a public course and how it fit within the Vision Mission statement. 3. 2019 Proposed Tournament Schedule: Upon a motion made by Commissioner Glidden and duly seconded by Commissioner Jelleme, it was unanimously VOTED to approve the 2019 Golf Tournament Schedule as presented by Mr. Costa. Mr. Costa, Mr. Huntt and Mr. Oberly departed the meeting at 5:22 p. m. B. PROPERTY MANAGEMENT: Land Bank Commission April 30, 2019 Page 3 1. 50 Old South Road/ Discovery Playground — Budget Review: Ms. Bell recognized the reliability and responsiveness of Jim Hughes and Holdgate Partners and the quality of work they have provided throughout the playground project. Further, she updated the Commission on cost overages driven predominantly by the asphalt parking lot and drainage system. Ms. Bell further presented three options for landscaping scopes to finish the project with varying price points of $177,879, $131,712 and $56,445. After some discussion, upon a motion made by Commissioner Jelleme and duly seconded by Commissioner Stackpole, it was unanimously VOTED to authorize the expenditure of up to an additional S 140,000 in Land Bank funds to complete playground project. Mr. Bushard departed the meeting at 5:33 p. m. B. EXECUTIVE SESSION: Upon a motion made by Commissioner Reinhard and duly seconded by Commissioner Glidden, it was unanimously VOTED to go into executive session in order to discuss the purchase, exchange, lease or value of real property and review executive session minutes. A roll call vote was taken: Reinhard -Aye, Paterson -Aye, Glidden -Ave, Jelleme- Aye, Stackpole-Aye. The Chairman under Purpose 6 [G.L. c. 30A, 21(a)(6)] declared that discussion of these matters in open session may be detrimental to the Land Bank's negotiating position and that the Commission would not reconvene in regular session at the conclusion of executive session. ADJOURNMENT: Upon a motion made by Commissioner Glidden and duly seconded by Commissioner Reinhard, it was uiimously VOTED to adjourn to executive session at 5:34 p.m. / Attested to: �- Richard J."Glidden, Secretary Accepted, Approved, and Released by VOTE of the Commission this 14th day of May, 2019. i Neil Paterson, Chairman DOCUMENTS AND EXHIBITS Nantucket Land Bank Commission Special Meeting of April 30, 2019 1. Management Contract Extension Memorandum 2. Miacomet Golf Course Organizational Flow Chart. 3. 2019 Tournament Schedule 4. Clubhouse Replacement Payment Plan 5. MGC Payment Plan 6. Golf Financial Guidelines 7. Golf Capital Reserve Fund dated April 2019 8. Hindsdale Playground Budget Spreadsheet