Little New Information Presented at OGC Town Hall

Over 400 Oakmont residents filled the Berger Center on June 5th for another in a series of town hall meetings on the matter of the OVA providing financial assistance to the Oakmont Golf Club.  The presentation was introduced by BOD President Steve Spanier but was for the most part conducted by board members of the OGC.

OGC members Smith, Robinson and Warfel with OVA board member Tom Kendrick

Attendees were told that more than 70 questions and suggestions had been submitted by members of the community, which had then been culled down to 16 topics to be addressed by OGC board members.  OGC President Barbara Robinson, Secretary Rick Warfel and Membership Committee Chair Gary Smith took turns reading the queries and answering them. The questions selected and then answered were for the most part a rehash of the presentation of topics at the February 26th town hall at the ERC and very little new information was presented.

Again heard were detailed descriptions of marketing efforts undertaken by the OGC, costs of maintaining drainage and waterways on the golf courses, open space and fire breaks provided by the golf courses, effects on property values, and how financial contributions by OVA could be structured.

The overriding theme again was that financial assistance to the OGC by OVA was not a matter of a handout but of an obligation for services provided to the community and the importance of  preservation of the property as a “central if not vital feature of the community.”

Missing from the discussion was any detailed information about the OGC’s financial situation to support a request for financial participation from OVA. The public was informed in an email from Spanier to OVA members the day before the meeting that this was not open to discussion:  “Providing detailed OGC financial information to all OVA residents is simply not ever going to happen.”

As at the February 26th presentation, Robinson again denied that the OGC was seeking a “bailout” by OVA.  In fact, she stated that the idea that OGC was asking for a bailout was “badly mistaken or certainly misunderstood” and even “defamatory.”  She said that discussions with OVA were first initiated in March of 2017 and that “the premise was not, and never has been, that the OGC is in desperate need of financial aid to stave off disaster.”

OGC’s Smith added that the club was not failing but did have some serious challenges.  “2017 by itself was a disaster from an operating standpoint,” he said. Between heavy rains early in the year and the October fire the resulting business interruption greatly affected revenue.  They also discovered a serious set of flawed accounting issues that led to ill-advised expenditures.

The OGC has been granted a Small Business Administration disaster relief loan from which they have drawn less than half of the funds available.

In answer to a submitted question about whether the financial assistance would be perpetual, Robinson stated, “We do feel there is a minimum commitment of five years needed to assure the partnership is viable.”

How would support from the OVA be structured?  “The OGC has provided to the OVA board a summary of areas of potential collaboration,” said Robinson, but added “these areas of collaboration are issues for negotiation between the boards that should not and will not be conducted in a public forum.”

Many suggestions for sale of the courses (or portions of them), closing one of the courses, or repurposing portions of the courses were addressed by the OGC board. The East Course was called a “rare jewel”, being one of the few executive (i.e. shorter in length, consisting of only par 3 and short par 4 holes) golf courses in Northern California.  Sale or repurpose of the East Course would be “absolutely the last resort.” Sale of one or both courses to a developer was also raised and OGC said it had “conducted exploratory investigation into this option.” However, it was acknowledged that opposition to such a plan would be overwhelming.

Along these lines, the issue of zoning was raised.  Most of the residential land in Oakmont falls into the “low density residential” category, single family homes at a density of 2-8 units per gross acre.  The two golf courses, consisting of 225 acres, are classified as “parks and recreation” and are zoned as “special purpose park and facility.” Other nearby properties with this zoning are the East and West Recreation Centers, the Saddle Club and Annadel State Park.

Can the property be rezoned?   Any rezoning would require approval from the City of Santa Rosa, Sonoma County and the residents of Oakmont.

Desired upgrades to the Quail Inn were briefly discussed, including a new kitchen and dining area, furnishings and fixtures. Yet, absent community support the OGC said they were not in a position to undertake such physical renovation improvements in any kind of reasonable time frame.  “It just can’t come out of the operating margin as we know it today,” said Smith.

In the second portion of the presentation the OGC board members addressed suggestions that were selected from those submitted by residents, in many cases labeling them “non-starters.”  These included repurposing nine holes of the East Course to walking trails, OVA buying or leasing land from OGC, voluntary v. mandatory contributions, two tiers of dues for those on the golf course and those not, sustaining memberships or pledges, $50 assessments to on-course properties for landscape maintenance, and hiring a new management company.

Other suggestions were received positively, such as OVA renting space and meeting rooms from OGC as well as OVA receiving the empty lot adjacent to Hwy 12 and Oak Leaf Drive in exchange for dues contributions.  The lot has been discussed as a possible dog park location or to be used for an emergency vehicle exit to Hwy 12 from Oakmont. According to Robinson, some of these items are already under discussion between the boards.

More than 20 people lined up at two microphones to participate in the discussion during the Open Forum section of the meeting and were nearly evenly divided in support and opposition to the proposal. A few expressed their disappointment that they did not receive the information they had expected from this meeting. One long-time resident of more than 40 years said she had heard all the arguments pro and con on five occasions since living in Oakmont.  “The golf courses are still there and nobody has built houses on them.” She also spoke for those in Oakmont, like herself, living on their Social Security for whom a further dues increase in support of a private business would be a hardship.

Share this page:

6 Comments

  1. Lyn Cramer on June 6, 2018 at 7:56 pm

    Thank you Mr Connolly. The case grows weaker, the game-playing more transparent.

    And thanks for answering the question of how the golf club was able to snag an SBA loan. Disaster relief. Unanswered is what is taking the board so long to say anything substantive on this issue. After three largely repetitious meetings, the picture clarity has now reached 8k resolution.

    • Ellen Dolores on June 8, 2018 at 4:09 pm

      Although I wrote a letter to the previous Board, asked the OVA to forward it to the new Board, and
      also attached my letter with my questions for the 6/5 meeting, no one has addressed or answered
      under the U.S. Constitution, how it is legally possibly to force anyone to invest in a business they
      don’t own, and have no legal interest in, and do not want any interest in. As I stated in my letter, the subject of which still has not been addressed, the OVA Board, preferably with an OVA membership vote, may decide to spend OVA dues or raise OVA dues for expenditures for OVA costs, repairs, or upgrades, but they cannot force members to spend money on businesses external to OVA ownership
      or property.

      It has also been suggested that some Board members may think it is part of their fiduciary responsibility to raise dues for the OGC because of the uncertain outcome if the OGC goes under. I believe this may be another cover for the fact that some Board members are also OGC members, and this is an excuse for how to bring about OGC’s desired outcome; get our dues money. I would like to suggest that the most ethical way out of this either real or fabricated dilemma is called RECUSAL

      Ellen Dolores

  2. Julie Cade on June 6, 2018 at 8:16 pm

    Good report here. The OGC proudly said they do not need a bail out and that their financial condition is okay, having gotten the SBA disaster loan to cover the losses of the fire. Instead, they are clearly asking for a hand out, $1.4 million from OVA over five years. For this they are offering nothing but same old, same old. Their small membership (<400) want to keep their great preferential tee times, nothing changes for them, and we Oakmonters facilitate their recreational pursuit. They don't want to sell anything to anyone, including OVA, and most ideas suggested were "non-starters" and in some cases, were laughed at outright, insulting and offensive to anyone who thoughtfully came up with suggestions.
    OGC has been independent and needs to stay that way, without any money from Oakmonters. They seem to be back on their feet and hopefully they can figure out how to stay that way. Regardless, they do not deserve our dues.

  3. Karen McMillen on June 7, 2018 at 11:53 am

    While I agree with everything Julie has said, I do believe the OVA, and we as members, should contribute to the maintenance of the Oakmont creeks and waterways. If there were some way to appropriate our dues increase to just that, I would be in favor of some financial support to the OGC. Perhaps the board could look at how much the golf club pays to maintain the waterways and the OVA could contribute 50%.

  4. Steve Edwards on June 7, 2018 at 11:13 pm

    OAKMONT EAST SHOULD TRY MAJOR DISCOUNTING TO SEE IF USAGE INCREASES
    I’d like to offer the concept of dealing with perishable inventory, such as when an airline, hotel, or a golf course has a set number of slots, or seats, or starting times that for one reason or another go unsold. These lost sales can never be reclaimed.
    For example, if tonight at 8 PM, Southwest Airlines has a flight from Oakland to Los Angeles with 140 seats in the plane, and yet Southwest only sells 40 seats, they just lost 100 opportunities to turn unsold seats into cash.
    We live on the Oakmont East golf course, and to say that it’s underutilized is an understatement. So, my suggestion is: significantly discount the rates on Oakmont East for the month of July. Offer two rounds of golf, including a cart, for $38. Advertise this new aggressive pricing several times in the Press Democrat sports section, being very clear that this offer is only for the month of July, 2018. This is exactly what the airlines do when they start a new route.
    The purpose of this $38 rate, with cart, is to either bring people to try Oakmont golf for the first time, or to come back to Oakmont again. The offer has to be very dramatic. And you MUST advertise to get the word out.
    Plus, more golfers should translate to more golf shop sales, more lessons being booked, and more meals eaten in the Quail.
    What does the Oakmont East golf course have to lose?

  5. Shirley Phillips on June 14, 2018 at 8:56 am

    My take on this article: if a dues increase goes through, sounds like Oakmonters will be paying nearly $1.5 million
    for an “empty lot adjacent to HW12 and Oak Leaf Drive”–and I thought empty lots at Fountain Grove were expensive!

Leave a Comment