The Dallas Morning News
February 4th, 2010
No Comments
Â
Critics question Richardson’s business deal with golf pro
07:12 PM CDT on Monday, May 18, 2009
By IAN McCANN / The Dallas Morning News
imccann@dallasnews.com
A business arrangement between a longtime golf pro and the city of Richardson has come under fire from a small group of residents. They allege that the city is paying the pro too much and providing lax oversight of the golf course he manages.
In response to critics, city officials provided financial information about Sherrill Park Golf Course and Ronny Glanton, who is contracted to run the facility.
They say the contract has been mutually beneficial and that Glanton’s $335,000 salary in 2006-07 did not come from taxpayers and was justified.
Richardson’s contract with Glanton is similar to those at other area golf courses, including Dallas’ five public courses.
Under the contracts, the pros remit green fees to the cities and a cut of other revenue, but keep a majority of ancillary revenue from the courses.
City officials say the contracts give the pros an incentive to generate traffic at the courses through events and tournaments – an incentive that is needed in North Texas’ competitive golf environment.
At the same time, city maintenance of courses keeps them in good condition for golfers.
“It is by far and away the most effective public-private partnership we have ever had,” said Barbara Kindig, Dallas’ assistant director of park and recreation. “It is really a great program.”
But some residents say that the city could keep more revenue if it ran the courses itself, rather than having a revenue-sharing contract with a pro. They say Glanton’s salary is far higher than what the city should be spending.
“Why would you pay someone that much?” said resident E.A. “Mac” McDowell, one of a group of residents who contacted media to complain about the arrangement. “I’m not saying they’re dishonest. I’m saying they’re not very smart.”
Glanton said that in good years, he is able to pay himself well. But his pay is lower in other years when, for instance, fewer people golf, equipment must be replaced or a storm causes damage that must be repaired.
“My income fluctuates depending on volume,” Glanton said. “When rounds are way down, I take a hit.”
Critics note that the city has not audited Glanton’s books, nor has the contract been competitively bid.
City Manager Bill Keffler said the city periodically conducts spot checks of cash register receipts. He said bidding the golf contract wouldn’t be to the city’s advantage, citing Sherrill Park’s reputation.
“If all of my metrics say I’ve got the best municipal golf course in the area, why would I want to do that?” Keffler said.
He and Assistant City Manager David Morgan said that the course is able to generate enough revenue to cover all services the city provides, including course maintenance and roughly $600,000 a year in debt payments for course improvements.
Morgan said Glanton gave the city an accounting of his finances in response to questions from James Mallett, the resident who initially brought the issue up with city officials. Under the contract, the city receives 10 percent of gross sales from the pro shop, the restaurant and cart rental. Glanton keeps revenue from the driving range and from lessons, while the city keeps all green fees.
In 2006-07 – one of Glanton’s better years – the course generated about $1.3 million in revenue for Glanton. From that amount, Glanton paid his employees and himself, bought food and equipment, paid for utilities and gave Richardson its commission.
The city received about $2 million in course revenue that year, mostly from green fees.
The cut Richardson receives is higher than the Dallas contracts, in which the city receives all green fees but nets only 1.5 percent to 9 percent of other course revenues, depending on the course.
Subscribe to RSS headline updates from:
Powered by FeedBurner
Send Your Comment
Guidelines: We welcome your thoughts, but for the sake of all readers, please refrain from the use of obscenities, personal attacks or racial slurs. All comments are subject to our terms of service and may be removed. Repeat offenders may lose commenting privileges.
You must be logged in to contribute. Log in | Register Now!