REPORT TO Sports and Open Space Authority
SUBJECT
Title
Note and File the Santa Clara Golf and Tennis Club Report for Quarter Ending March 31, 2018
Report
BACKGROUND
On June 27, 2017, the City Council approved an extension to the Management Agreement of the Santa Clara Golf and Tennis Club with the American Golf Corporation. Per the management agreement the American Golf Corporation is required to submit for Sports and Open Space Authority (SOSA) various fiscal and operational reports.
DISCUSSION
This Report to Council transmits the reports on the fiscal operation of the Santa Clara Golf and Tennis Club for the third quarter ended March 31, 2018. These reports provide current information on the fiscal operation of the City’s Golf and Tennis Club and include the Income Statement (Attachment 1), the Variance Report (Attachment 2), the Administrative and Management Fee Calculation (Attachment 3), and the Net Income Comparison Graph (Attachment 4). The Income Statement includes a summary of Golf Course attendance categorized as "Number of Rounds" that is presented at the bottom of the Statement. The Variance Report provides a brief explanation of variances between actual and budgeted Golf Course revenues and expenditures. The Net Income Comparison Graph provides a graphic comparison of the current quarter and fiscal year actual, budget, and prior year actual Net Income for the Golf and Tennis Club.
As discussed in the attached Variance Report, financial results for the third quarter ended March 31, 2018 were better than budgeted by $122,758 due primarily to unseasonably warm, dry weather that allowed for more golf rounds to be played during the quarter than anticipated. The higher than anticipated revenue from green fees, cart rentals, and range income was partially offset by higher repair & maintenance expense, expenses associated with professional rodent services, and additional irrigation due to the warm, dry weather. The financial results also benefitted from lower than budgeted salary/wage expense as a result of fewer full-time maintenance employees.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The Fiscal Year 2017-18 Adopted Budget assumed a loan from the General Fund to the SOSA Fund in the amount of $589,868. The third quarter year-to-date 2017-18 financial reports of the Santa Clara Golf and Tennis Club identifies a net loss of $154,767, compared to a net loss of $527,204 for third quarter year-to-date 2016-17.
The Santa Clara Golf and Tennis Club operations will close once the CityPlace project begins. However, there will be ongoing maintenance costs funded by the General Fund until the property is turned over to the developer. These costs will be identified through the annual budget process.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Note and file the Status Report for the Fiscal Operation of the Santa Clara Golf and Tennis Club for the third quarter ended March 31, 2018.
Staff
Reviewed by: Angela Kraetsch, Director of Finance, Sports and Open Space Authority
Approved by: Deanna J. Santana, Contract Administrator for Sports and Open Space Authority
ATTACHMENTS
1. Santa Clara Golf and Tennis Club Income Statement
2. Variance Report
3. Administrative & Management Fee Calculation
4. Net Income Comparison Graph