City Golf - Straight Talk Part 2

Citizens of St. George, in the interest of providing a fair and impartial review of selected salient points extracted from golf management contract entered into by The City of St. George and Golf Professional the second part of the report on City Golf Courses is presented for your evaluation.

Part II.  PROFESSIONAL’S COVENANTS AND OBLIGATIONS.

1.     The Golf Professional shall pay All applicable income, withholding and taxes, as well as any unemployment taxes or workers compensation premiums, for Professional and his Employees as required by law.

2.     Professional shall pay to the City a monthly rental fee for use of the Pro Shop for merchandising activities.  The monthly fee shall be a percentage of gross sales receipts based on the following scale.

Previous Years Total Gross Sales less than $100,000.00 Rental Fee 1% of monthly gross sales.

Previous Years Total Gross Sales of $100,000.00 or more Rental Fee 2% of Monthly Gross Sales.

Regardless of percentage a Minimum of $600.00. Gross sales from the operation of the Pro Shop shall include all merchandize sales and rentals BUT NOT  revenue from lesson fees and tournament service fees.

REPORTED INCOME derived from Golf Tournaments…..Fiscal Year 2012-2013 (Max 6 tournaments per year).

Dixie Red Hills Golf Course$6,297.00          Sunbrook Golf Course $7,310.00   

Southgate Golf Course$4,056.00                 St. George Golf Course $5,234.00

The contract calls for each Professional to pay their OWN Medical Insurance. Note: One Professional is a retired Volunteer Fire Fighter with 25 years or more service time which provides paid medical insurance benefits.

Note: Professional’s Covenants and Obligations section (12). Keep books and accounts of monies collected by and expended by Professional on behalf of Professional as pertaining to Professional’s covenants and obligations enumerated with this Agreement under article II. Professional agrees to hold the same available for inspection and audit by City or its authorized agents within 48 hours of verbal request by Department Director or his designee.

Note: Cash Payments received by Professional may not be witnessed therefore the Honor System may be considered by outside evaluator to be in effect.

Note: It was verbally confirmed by the City Accounting Department ( Philip Peterson, Finance Director) that the Golf Professional is to provide City with 1099 Income Tax Form as reported to Internal Revenue Service.

Note: Professional’s Covenants and Obligations section (h). The City of St. George does not have a non-resident green fees and resident green fees. The City offers posted fees and discount fees available to holders of valid Resident Golf Discount Cards. Pro Shop personnel should offer the discount rate only after seeing a valid Resident Golf Discount Card. A valid card provides the discounted rate to the card holder only. It is recommended that pro shop personnel allow the discount card rate one time annually to known residents who do not present a valid Resident Golf Discount Card while informing them of the requirement to purchase or renew the card and present the card in all future visits.

This concludes the two part report describing the manner in which the City manages the four Golf Courses owned and operated by the City as a private entity.    

TRANSPARENCY MAKES ACCOUNTABILITY POSSIBLE.

-Ed