Spot the inconsistency?

[A_Clay_Man]

P.G.: Move expected to generate extra revenue
By ANDRE BRISCOE
Herald Staff Writer
Hoping to increase city revenue and give golfers better service, the Pacific Grove City Council voted 4-3 Wednesday night to take over operation of the clubhouse at the Pacific Grove Municipal Golf Course, beginning next year.

City staff members prepared a report showing that if the city assumed control of the clubhouse staffing and expenses, it would bring in over $70,000 more in revenue than it gets now by paying the current concessionaire, pro golfer Pete Vitarisi, to run the business.

Vitarisi has decided to retire at the end of his current lease.

"Based on these numbers, it appears the city would be making an additional $140,000 more than we are right know. I think this is something we should definitely pursue," said Councilman Scott Miller.

Council members Ron Shenk, Susan Goldbeck and Lisa Bennett voiced concerns that not enough research had been done for the council to make a decision on operating the clubhouse. They urged caution, saying the council still had time to look at the issue.

Before Wednesday's meeting, City Manager Jim Colangelo said Pacific Grove was in a win-win situation because it couldn't lose money.

"The concessionaire is not interested in extending the lease, and we are looking at this as an opportunity for the city to pick up additional revenue," he said.

Golf Superintendent Michael Leach told the council that after city staff members had reviewed the concessionaire's previous year's financial reports, they felt comfortable recommending that the city assume control of the operation.

Improved service was also a consideration.

"This is an opportunity for the city to be able to look at how we can improve our service to the public and to the citizens of Pacific Grove," said Leach.

Under the new management structure, the position of superintendent will also include the title director of golf. The city will hire eight maintenance workers and four part-time workers.

The proposal left Schenk skeptical.

"I'm not comfortable with us taking this on right now," he said. "I don't know if the city should be in this business."

Councilwoman Lisa Bennett agreed.

"I don't think we have enough analysis to make this decision. I don't feel comfortable with the depth of analysis," she said.

But Mayor Jim Costello felt he had enough information to make a decision.

"I feel if we take it over we have a lot of control and I think the revenue is very important. Looking at the numbers I think we've seen enough," he said.

Golf shop operations have traditionally been leased as a concession to private contractors since the course opened in 1932. If the council had decided not to operate the clubhouse, the alternative would have been to entertain other offers.

[JESII]

Adam,

Are they hiring new people (The city will hire eight maintenance workers and four part-time workers.)? Can they do that for less than the 140K they see as found money?

[Patrick_Mucci]

Adam,

Maybe I didn't read it carefully enough, but where is the additional $ 70,000 in revenue coming from ?

And, how did $ 70,000 turn into $ 140,000 ?

What's the over and under on how long before it's leased back out again ?

[Stan Dodd]

Increased revenue and better service from 4 part time employees?

[A_Clay_Man]

Ok. Sorry for the delay, we're moving in a few days and computer time is getting scarce.

There are a few things that jumped off the page at me too. First, the course has been city run since 1932. They don't have data? Poppycock. Second, the revenue numbers are such BS.

Getting the cart concession back from Vitarisi should generate 250K minimum. Heck, Pete was charging as much, or more, for the cart than the city was getting for the golf.

Interesting story going back to the 80's when the city's fleet of golf carts were in dis-repair. Vitarisi, the pro, went to the city and said they need to spend some money to upgrade them. The city balked at the number, and that's when the quick thinking Vitarisi stepped in and asked for the concession. He had the loan from the bank in 20 minutes.

As for those employed at PG as groundsmen. They are(or were) some of the best paid city workers in the country. With the best equiptment too. Grant it, the cost of living is high, but each one of them was making in excess of 50k, with benefits. So. I'm skeptical about the hiring of additional employess.

Can't disect anymore right now, have to the packing.

[Mike Benham]

The opening sentance is the scary one "Hoping to increase revenues and give better service" ... to some degree, these two items are, at least in the short term, on opposite ends to the income statement.

Thye don't have to look any further than the City of San Francisco as an example.

If the result is really to increase the net amount of "profit" dumped into the City's General Fund, then perhaps they shouldn't have spent millions on a new clubhouse ...

[A_Clay_Man]

Exactly, Mr Benham. Well almost exactly. It's an odd twist of events, maybe someone with some knowledge of enterprise funds can chime-in?

The course was set-up as an enterprise fund back in the early nineties (I think) this was done to aleviate the accounting headaches associated with the transfer of revenue back to the general fund (or so I was told) Is this making any sense so far?

With the boom of golf in the nineties, after the negative effects of closing most of Ft. Ord, the golf course started to save it's pennies for the rainy day when the interior dept would transfer the land to the city. Ther thinking was that they would require an enviornmental clean-up which could cost an un-imaginable amount. Not that it needs cleaning, but it is the nature of governments to over-burden the unprepared with such a demand. So, they started saving.  Even with design alterations (the new ninth green 90k) and other equiptment purchases, the health of the enterprise fund was in the neigborhood of 3 million dollars when I left there in '01. Well, the transfer took place without the feared clean-up. With nearly 4 million in thier hands the dream original of the manager could be realized. A monument to self, a new clubhouse.  10 million dollars later, the golfers of Pacific Grove have a new clubhouse. At one point, the politicians tried to turn the blame back over to the golfers, stating it was "us" who wanted the new clubhouse. It was at that moment, a relatively shy and soft spoken Mike Ayala stood up and called BULLSHEEE. He reminded the council, that the golfers who represent the various golf clubs, at PG, had signed petitions to STOP the process long before it started.

Most of this is re-hash. I have been trying to report on the malfeasance for years now. Proof should be available in the archives. search Municipal Mayhem. Sry gotta jett. 4now

[peter_p]

Update, the City Council is taking a mulligan. One paragraph:

Citing a lack of information about the golf shop, the council on Wednesday put a hold on plans to take control of the golf course. The council voted 6-1 to direct two committees to analyze the costs of hiring new city employees, purchasing golf-related merchandise and buying golf carts.



http://www.montereyherald.com/mld/montereyherald/news/14395089.htm

[PThomas]

played there with some locals 10 days ago...I think that new clubhouse cost $3 million!!?....what a ripoff and waste of money

and the staff there seemed fine

[A_Clay_Man]

I think that new clubhouse cost $3 million!!?....what a ripoff and waste of money

and the staff there seemed fine

Paul, It was originally bid at 3.something. Then there were over-runs. I don't know how these journalists can continue to report the 4 million dollar number. Everytime i see that number, I know the article source. It was much closer to ten million.

And the staff there is likely still Vitarisi's until his contract runs out at the end of the year.

[peter_p]

More comments from the linked article in my previous bit. The Golf Superintendent is weighing in and providing outdated figures. Any conflict here, Adam?

Councilman Scott Miller, who cast the lone dissenting vote against referring the matter to the committees, and Golf Superintendent Michael Leach defended the city's proposed takeover of the operations.

Leach said city control of the golf shop would bring in at least the same money it has under Vitarisi.

"We feel that this is an opportunity for the city to be able to see exactly what we can do," he said.

What information the council has about the operation was provided by Vitarisi's 2000-01 operation information. Leach said he would provide the council the most current information as soon as Vitarisi makes it available.

[A_Clay_Man]

Peter, I would be very suspicious of anything the man has to say. He use to lie right to the faces of the committees and individuals who would challenge his authority. I also suspect if you look up conflict in the dictionary his picture just might be there. Afterall, the clubhouse was all his idea. His baby. And as for Vitarisi's part, Leach has been trying to crowd him out for a long time. The same way he has been crowding out the locals, specifically the gentleman who used to know they could find a game Monday-Friday at 1 0'clock. And, the weekend group known as the 8 O'clockers. From what I understand, the Saturday group has already moved over to Rancho Canada. That 8 a.m. game was a large part of the life blood of the core golfing community, for over 50 years.

I speculated years ago, that Leach wanted to put his own people in as concessionaire. (who wouldn't? $$) But even if it ends up with American Golf, I'm confident it will be because of some association with the man.

[peter_p]

Adam,
Is Leach a golf course superintendent as we know it or a city superintendent/department head ala John Zoller up in PDX?
Has the snow melted?

[A_Clay_Man]

Peter, we got a light dusting here last night. Wednesday it will be 68 degrees.

Leach is a cgcs. He worked around the peninsula and could\n't hold a job. At one, they had a coot shoot and accidentally killed a blue heron. I think he was fired when they found the endangered bird in the back of his pickup truck.

His official title is super/gm and does a decent enough job on the greens. He learned it all from his predecessor, a scot who he lived with while he courted the position. The city put a committee together to go through the stack of applications. I know for a fact his hit the circular file. But got the job anyway, because the old scot had spoken up for him. After that, he barely even spoke to the old scot, who told me personally that he regretted the part he played in getting him the job.