Kevin and Betty Miller, Gull Lake View Wednesday Night Couples League.
“Spring Into Leagues” Surefire way to improve your bottom line
In this issue: General Overview of Property Taxation Award Winners of 2012 “To Do’s” about Obamacare
Members Save Through the NGCOA’s
Purchasing Network To better serve members, the NGCOA has forged relationships with the industry's leading suppliers of products and services for golf operations. These organizations have extended members-only pricing, rebates and value-added packages exclusively to NGCOA members.
PREMIER PARTNER Club Car REBATE: $15.00 REBATE FOR EACH CLUB CAR GOLF CAR PURCHASED BY AN NGCOA MEMBER THAT IS NOT A REPLACEMENT OF A CLUB CAR VEHICLE CONFERENCE: COMPLIMENTARY ADMISSION TO THE NGCOA ANNUAL CONFERENCE AND GOLF OUTING FOR MEMBERS RENEWING OR CONVERTING THEIR FLEET VISAGE: ADDITIONAL FEATURES TO BE PROVIDED IN YEAR ONE AT NO COST TO THE CUSTOMER. Visit www.clubcar.com or contact ¬Rutledge Baker at (800) 933-4262, ext. 270 or rbaker@ngcoa.org.
PREFERRED SUPPLIERS NGCOA Insurance Program: Property and Casualty Insurance • Arthur J. Gallagher & Co. and Allied Insurance SAVINGS: $150 SAVINGS ON BUILDING APPRAISALS AND 80% DISCOUNT ON BACKGROUND CHECKS; WEDDING CANCELLATION AND TRAVEL INSURANCE Visit www.ngcoa.org/insuranceprogram or contact Mike McCoy at (515) 440-8403 or Mike_McCoy@ajg.com.
NGCOA Insurance Program: Group Life, Short-Term Disability, Long-Term Disability • Gallagher Benefit Service, Inc. and Lincoln Financial Group
SAVINGS: 15% SAVINGS AND TWO-YEAR PREMIUM RATE GUARANTEE ON GROUP LIFE, SHORT-TERM DISABILITY AND LONG-TERM DISABILITY INSURANCE Visit www.ngcoa.org/insuranceprogram or contact Kent McLaughlin at (515) 681-9999 or Kent_McLaughlin@AJG.com.
Food & Related Services • entegra Procurement Services, brought to you by International Club Suppliers (ICS) SAVINGS: 7% -15% COST SAVINGS AND ACCESS TO MORE THAN 400 LEADING FOOD AND BEVERAGE SUPPLIERS Visit www.intlclubsuppliers.com or contact Jim Bailey at (813) 994-4680 or jbailey@intlclubsuppliers.com.
Credit Card Processing • ETS Corporation SAVINGS: $200 DISCOUNT ON ALL WIRELESS POS SYSTEMS, GIFT AND LOYALTY PROGRAMS, POS CHECK AND ATM SERVICES, AND FREE CREDIT CARD TERMINALS AND RECEIPT PAPER Visit www.etsms.com or contact Hadi Akkad at (703) 421-9101, ext. 205 or hakkad@etsms.com.
Beverage Supplier • Pepsi-Cola Company REBATE: $2.00 REBATE PER GALLON ON PEPSI BRAND POST-MIX FOUNTAIN PRODUCTS Visit www.pepsico.com or contact Eric Young at (803) 735-3750, or eric.young@pepsico.com.
Turf Equipment & Irrigation Systems • The Toro Company REBATE: 1% REBATE ON NEW COURSE PURCHASES AND PURCHASES MADE BY COURSES CONVERTING FROM A COMPETING SUPPLIER Visit www.toro.com or contact Grant Young at (952) 887-8390 or grant.young@toro.com.
SMART BUY SUPPLIERS Rental Cars • AVIS and Budget SAVINGS: DISCOUNTS UP TO 25% ON RENTALS Avis: Visit https://www.avis.com/car-rental/profile/go.ac?G979400. Budget: Visit http://www.budgetcarrental.com/budget/assoc/index.html?R025300. Or for Avis and Budget contact Debbie Arett at (404) 577-5450 or debbie.arett@avisbudget.com.
ACTIVATE THESE COST-SAVING BENEFITS TODAY! Visit www.ngcoa.org/purchasingnetwork
Calcula te your po tential savings online @ www.ng coa.org / purchasi ng network
Not a member? Join the NGCOA today and you too can take advantage of these member exclusive ive benefits. Learn more at www.ngcoa.org/circle or call Joe Rice at (800) 933-4262, ext. 222.
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News from the President Getting from here to there by Jeff Hoag, MGCOA President
Life is hard in the golf business these days. If you read the “Club and Resort Business Daily News” (HarborCommunications.com) you can read some sad stories about golf courses closing (yeah!), golf courses going bankrupt (sad!), golf courses being bought out of bankruptcy by new owners (My gosh, what are they thinking?), and every now and then a story about a golf course brought back from the brink of falling over the cliff. When I read about those success stories, it makes me want to know more. How did they get from the low to the high, from here to there? The golf business is ever evolving. We have had a ten or eleven year period to make adjustments to our business plans and our operations. The business is different today. When I read about those courses that have made those adjustments, it makes me want to know more; how did they get from here to there? When asking those operators about how they got from here to there, there are some common answers among them. Here are some answers: 1.) The operators are networking all of the time. They are network-
ing with fellow golf operators. They are networking with fellow business owners. They are networking with their Chamber of Commerce.
They are networking with their customers. THEY ARE NETWORKING CONTINUOUSLY! 2.) They try new things. They are not afraid to test or adopt new ideas. Where do they get those ideas? From their networks! 3.) They have a vision for where they are going. Now we are not talking Hollywood vision here, but a working vision of what their business should look like and feel like. Something they can communicate easily to their staff and to their customers. Three steps to success. But these steps have to be taken daily. This reminds me of a quote I really like from Zig Ziglar: “People often say that motivation doesn’t last. Well, neither does bathing
– that’s why we recommend it daily.” In the golf business it is easy to do this daily. How? Get on the NGCOA Listserv by going to NGCOA.org, go to the networking tab at the top and join listserv. If you’ve got questions, just ask. You are going to get answers. Got answers to someone else’s question? Go ahead and share. Next, make a phone call. Call Kate at the MGCOA office, she is a great resource for answers and references. Next, come to the MGCOA workshops and annual meetings. They are full of information and wonderful networking opportunities. Attend the NGCOA Annual conference, network there and bring home baskets of ideas. Look. The best thing about being a golf course operator is the fact that you have a choice. You can either stay doing what you are currently doing or you can change. It’s up to you. If you want to go from here, where you are today, to there, that place where your vision takes you, it’s going to be because YOU DID SOMETHING by networking or trying new ideas.
Board of Directors
Kathy Aznavorian Fox Hills Golf & Banquet Center
Larry Moore U.S. Golf Cars
President
Larry Bowden The Natural
Carolyn Olson Elmbrook Golf Course
Ed Clark Sandy Ridge Golf Course
Steve Ramey Chisholm Hills
Susan Vanderburg Indian Lake Hills
Jim Dewling Total Golf Inc.
Dan Rooney Grand Haven Golf Club
Treasurer
Frank Guastella Franklin Golf
Tom Schwark Sycamore Hills
Toni Joers Concord Hills
Jon Scott Gull Lake View
Fred Mawson Corporate Tax Resources
Curtis Wright Copper Hills Golf Course
Jeff Hoag Scott Lake Country Club
Vice President
Bill Fountain Majestic at Lake Walden
Past President
Bob Koutnik Fox Run Country Club
“People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.”
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Michigan Award of Merit for Golden Passbook to Golf The Michigan Golf Course Owners Association does not give an Award of Merit every year. In fact, the Association has only given two
affairs initiative and truly become the “voice of Michigan golf business.” To fund this, our former colleague and great friend John
Many of the founding contributors of the Golden Passbook to Michigan Golf
other in our history. This makes it a pretty big deal. In the year 2002, the board of directors of the MGCOA gave the staff an unfunded mandate to start a government
Dodge along with Kate Moore, executive director, created the Golden Passbook to Michigan Golf. Well, they might have cooked up the idea, but if it weren’t for the dedicated members If you are a member of the MGCOA that stepped up and and would like to donate rounds to gave valuable inventory the Golden Passbook for 2014, contact to the project, it never would have become a Kate Moore at kmoore@mgcoa.org reality. In 2012, the MGCOA printed the 10 th edition of the Golden Passbook. Of the original 33 golf courses to step up and join the initiative, 32 remained in the book for 10 years. With the book retailing now for $550, these Founding Contributors to the Golden Passbook have insured the financial stability of the government affairs program. The MGCOA and the golf business industry is in their debt. This year, there are 88 golf courses in the Michigan Golden Passbook to Golf. TEE-OFF TIMES
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FOUNDING CONTRIBUTORS A-Ga-Ming, Kewadin Apple Mountain Resort, Freeland Boyne U S A Resorts, Boyne Falls Bucks Run Golf Club, Mt. Pleasant Chisholm Hills Golf Club, Lansing Clearbrook Golf Club, Saugatuck Concord Hills Golf Course, Concord Copper Hills Golf & Country Club, Oxford Eldorado Golf Course, Mason Elk Ridge Golf Course, Atlanta Elmbrook Golf Course, Traverse City Fox Hills Golf & Banquet Center, Plymouth Garland Resort, Lewiston Gull Lake View Golf Club, Augusta Hawk Hollow Golf Course, Bath Indian Lake Hills Golf Course, Eau Claire McGuires Evergreen Golf, Cadillac Old Channel Trail Golf, Montague Ravines Golf Club, Holland Red Hawk Golf Club, East Tawas Riverwood Golf Course, Mt. Pleasant Scott Lake Country Club, Comstock Park Shanty Creek Resort, Bellaire St. Ives Golf Club, Stanwood Sycamore Hills Golf Club, Macomb The Emerald Golf Course, St. Johns The Fortress, Frankenmuth The Majestic at Lake Walden, Hartland The Natural, Gaylord Timber Ridge Golf Club, East Lansing Timber Trace Golf Club, Pinkney Whitefish Lake Golf, Pierson
From the Executive Director Meeting Billy Casper by Kate Moore, MGCOA Executive Director
Billy Casper grew up putting for nickels and dimes and hitting balls off ant hills before becoming one of golf’s leading money winners and most respected champions. What a thrill it was for me to be on hand when he received the NGCOA’s Award of Merit at their annual conference this past February. There wasn’t a Sunday during golf season that my dad didn’t have the television tuned into the tournament of the week. I met every golfing celebrity through his eyes and commentar y. Palmer, Player, Floyd, Trevino, the list goes on. But for some reason Billy Casper has always been a stand out for me. Yes, he has worn the
green jacket and walked away with US Open trophy. Johnny Miller once said that Casper had the
“greatest pair of hands God ever gave a human being.” But Casper’s heart, his compassion for children
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and his faith distinguished him far beyond golf. A true humanitarian, in 2010, Casper was honored with the PGA of America’s Distinguished Service Award, recognizing his considerable charitable work during his playing days and in the years since he retired from competitive golf. Over the years, Casper has worked extensively with Big Brothers / Big Sisters, Junior Achievement, The First Tee and his own Billy’s Kids Foundation. Wouldn’t it be great if this were the type of sports icon our children were exposed to today? Hard working, honorable, faithful. Thanks, Dad, for introducing me to Billy Casper.
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NGCOA Bookstore – MEMBER BENEFIT Welcome to the place where it only takes seconds to spot the value of membership! Get e-manuals anytime, anyplace as free electronic downloads. That’s “e” for easy! Browse titles, back issues of Golf Business magazine or A n n u a l C o n f e re n c e s e s s i o n recordings; all available at nominal fees and many free to members of the MGCOA. And don’t miss the Compensation & Benefits Report. It’s your best resource to compare your facilities compensation and benefits with that of your peers to see how yours stacks up. Here are a few of the free resources. All you need is your email address and your member password. Get started connecting today. Not a member? To learn more about MGCOA member benefits or join now, call Kate or Jada at 800-860-8575
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Sample Publications 51 Ways to a More Profitable Operation Part of the NGCOA’s “51” Series, this manual features 51 tips for giving your bottom line a boost through operational efficiencies, creative initiatives and more. Member Price $0 Non-Member $45
51 Ways to Increase Customer Retention The second in the NGCOA’s “51” Series, this publication includes topics such as effective customer identification, tracking behavior, hard vs. soft benefits, changing behaviors, customer rewards. Topics include customer identification and more. Member Price $0 Non-Member $45
51 Ways to Legally Protect Your Golf Course Part of the NGCOA’s “51 Ways” Series, this publication includes info on property rights and potential dispute areas, operational issues like errant golf balls, alcohol liability, and golf car accidents, regulatory requirements, contracts, and human resources. Member Price $0 Non-Member $45
Guest Columnist The one thing course managers must do NOW about Obamacare by Diane Pelak
The cornerstone of the Affordable Care Act (ACA), or Obamacare, is to ensure that all Americans are covered by a health insurance plan – with the majority of the burden falling on employers. Employers can either pay the penalties or provide proper coverage – many are referring to this as Pay or Play. On January 1, 2014, dramatic changes will occur in the group health care marketplace. Large employers that don’t offer employees affordable, minimum essential coverage will face significant penalties, so it’s critical to use 2013 to prepare. A business is considered a large employer if they have at least 50 fulltime employees. Large employers that don t provide their employees with affordable health coverage will be assessed a penalty. The annual penalty is $2,000 per full-time employee in excess of 30 workers. For example, if employer has 53 full-time employees and they do not offer affordable, minimum essential coverage, the penalty would be $46,000 (23 × $2,000) per year. The IRS has announced a “safe harbor” for employers to determine who is a full-time employee. The “safe harbor” rules include establishing a Standard Measurement Period of not less than three months but not more than twelve months, in which an employer calculates who is a full-time employee. The IRS has defined “full-time” for ACA purposes, as an individual who works 130 hours or more per month. The Standard Measurement Period was developed because the IRS believes that a month-to-month determination is burdensome on employers and could be disruptive to employees. Following the Standa rd Measurement Period, employers
will establish a Stability Period in which those employees who met the requirement of 130 hours per
Allowing employers to choose their own Standard Measurement Period is good news for seasonal employers. Most will want to choose a longer period of twelve months to determine if an employee has worked 130 hours or more during all of the twelve months. That would essentially require coverage only for year-round employees but lock out coverage for seasonal full-time employees. It’s important to note that employers may already be in their Standard Measurement Period.
“Allowing employers to choose their own Standard Measurement Period is good news for seasonal employers.” month are “locked in” and those that did not are “locked out” of health care coverage. The Stability Period will run the same length of time that Standard Measurement Period. For example, if an employer chooses a 12 month Standard Measurement Period the Stability Period would also be 12 months.
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Obamacare Continued from page 7
The one thing that course managers must do now to prepare for Obamacare is to ensure they have a method that accurately tracks all employees’ time so they can determine who is and who is not a full-time employee for ACA purposes. The method chosen should store timekeeping data for an extended period of time and allow course managers to simply run monthly reports of actual time worked. The ability to download the data will be critical to ensure compliance with The Affordable Care Act and avoid potentially costly penalties. With the Affordable Care Act upon us, we are certain to see some dramatic changes occur in the group health care marketplace. Accurate timekeeping is a critical component in determining your requirement to provide affordable health care for your employees.
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NGCOA Listserv– MEMBER BENEFIT BENEFIT FROM THE EXPERIENCE OF THOUSANDS OF INDUSTRY PROFESSIONALS – FROM THE COMFORT OF YOUR HOME OR OFFICE The NGCOA Listserv is an email community of members from around the world with one goal in mind: sharing ideas and solving the problems that golf course operators face every day. And the number of members enlisted grows every week. HOW IT WORKS: The NGCOA’s listserv technology is strictly email-based, meaning you don’t need to log on to a Web site to engage in the dialogue. It’s more user-friendly than a standard chat room; the dialogue comes to you, rather than you seeking out other live
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participants. Once you subscribe to the listserv, you will have the ability to send and receive emails within the community and all members can review and respond. The responder may choose to email you privately, but the value of the listserv lies within the public, open dialogue. All you need is your email address and your member password. Get started connecting today. Not a member? To learn more about MGCOA member benefits or join now, call Kate or Jada at 800-860-8575
Doak, Brady, Balmer elected to the MI HOF The hottest golf course architect in the business, one of the most dominant players in the state who is passing on his knowledge to the wannabes and an executive who rescued the Golf Association of Michigan and patched it back together have been elected to the Michigan Golf Hall of Fame. Tom Doak, Steve Brady and Fritz Balmer will be inducted May 19 at the Henry Center at Michigan State University’s Forest Akers West Golf Course. Doak worked for Pete and Alice Dye, settled in northern Michigan where he could play the classic Crystal Downs course by Alister MacKenzie and did his first solo work. Doak has designed courses in Tasmania, Australia, Mexico, Scotland and 15 states. And he has work in China. Doak’s Michigan courses are High Pointe at Acme, unfor tunately closed,
Black Forest at Wilderness Valley in Gaylord, and Lost Dunes at Bridgman. Steve Brady, 54, has been a dominant player in state play since graduating from Saginaw Valley State University where he made All-American in 1980. He was named to the SVSU Hall of Fame in 2010. Brady became one of the state’s top players at a time when the competition included now current PGA Tour millionaire Tom Gillis, Jeff Roth and Jack Seltzer, both now in the Michigan Golf Hall of Fame and sure-tobe member Scott Hebert. He won three Michigan Opens, two PGA Championships, two Michigan Bell Showdowns at Grand Traverse Resort, one Assistant Professional championship and one Shanty Creek title, six ProPro, two Senior-Junior one Pro-Am and one Pro-Assistant, all events
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sponsored by the Michigan PGA Section. Brady now is Director of Instruction at Oakland Hills Country Club, his home for 16 years. Fritz Balmer, 73, began his service to golf in 1975 when, as a member of Spring Meadows Country Club, he became Club Representative to the Golf Association of Michigan, a position he held for nine years. Balmer was appointed a Governor of the GAM in 1986 and chaired the Junior Committee from 1987-1991. Balmer’s primary contribution was in putting the GAM back on solid ground in 2000. He served as GAM president until 2002 and in 2007 was given the GAM’s Distinguished Service Award. For more information on this y e a r ’s i n d u c t i o n c e re m o n y, contact Loretta Larkin at llarkin@ michigan-golf-foundation.com, (248) 719-0650 or www.michigangolf-foundation.com.
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The Front Nine of Environmental Risk Management at the Golf Facility by Debra S. Swartz, Great Lakes Regional Representative, e-par USA, Inc. Kevin A. Fletcher, Ph.D., President & CEO, e-par USA, Inc.
Golf courses and countr y clubs across the country are facing what seems to be the “new normal” of reduced budgets, strained resources, and the need to operate leaner and smarter. It’s no wonder that the concept of sustainability has held fast within the golf industry. Yet, there are a few key, and often under-emphasized, elements of managing golf operations more sustainably that, if not addressed, can crumble the very foundation of any environmental improvement program and add unnecessary costs to your budget. An Environmental Management System (EMS) is the framework used to build and maintain a strong foundation. By adopting an EMS approach to environmental management, golf course owners and operators are challenged to answer some basic, but tough, questions. 1. Has the Entire Property Gone Through a Full Environmental Assessment?: The very first step to reducing overall environmental risk and liability is to conduct a thorough self-assessment of the environmental profile of the entire golf facility and its operations. 2. Do We have Full Employee Buy-In that includes Top Management?: The best environmental management approaches are completed on the ground, but supported from the top. Are your club Board, President, and Senior Management aware of the environmental stewardship responsibilities of the golf or country club operations and the rewards that result from sustainable practices? 3. Have We Established a Facility-Wide Environmental Policy?: The simple act of writing and TEE-OFF TIMES
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making public the organization’s commitment to protecting the environment is an important early step to take. It fosters collaboration among all employees and the ability to present your environmental principles to the public. 4. Have We Ever Conducted a Risk Assessment?: Have you conducted an environmental risk assessment to identify the most vulnerable spots and activities that could potentially cause an accident? 5. Have We Developed Written Environmental Action Plans?: These plans can both address what you need to do, as identified in the risk assessment, as well as the environmental improvement and enhancements you want to make at the facility within a specific period of time. 6. Do We Have A Person Assigned to Each Action?: For each action item or improvement project, be sure to assign an individual as the “responsible party” for completion of the task and give them a budget to work within. 7. Do We Understand the Value of Written Standard Operating Procedures?: A simple set of SOPs is a terrific way to ensure consistent actions by employees that reduce risk and help to document that your club has its act together. Have you established a prioritized, written set of environmental improvements to address the highest risks? 8. Do We Provide Initial and Ongoing Environmental Training?: You want to have your policy in place, clear procedures, and practices identified that need to be addressed. That’s good. Yet, it’s the people that make things go right—or wrong. Do 10
you have an environmental training schedule in place? 9. Finally… Do We Foster a Staff “Culture” of Ongoing Environmental Stewardship?: In the end, each of the eight elements above are only useful if reviewed and modified on a periodic basis. That “continuous improvement” process helps to build a culture of ongoing environmental stewardship. By asking these questions and adopting an Environmental Management Systems approach to your operations you’ll be able to reduce liability, save costs, and improve your overall environmental performance. “Environmental Management Systems build a culture of risk avoidance and sustainability and ongoing environmental training is an important element needed to build and cultivate that organizational culture,” Debbie Swartz, e-par USA, Jay Eccleton & Troy Looney, The Emerald Golf Course. Bios: Debra S. Swartz (swartzdebbie@ gmail.com), an environmental specialist in the turfgrass industry, is owner of D.S. Swartz, LLC and serves as the Great Lakes Regional Representative for e-par USA, Inc. Kevin A. Fletcher, Ph.D., (kevin@ eparusa.com) is President & CEO of e-par USA, Inc., an environmental business strategy advisory firm specializing in environmental management systems for golf facilities & clubs, sports facilities, and park and recreation facilities. MGCOA welcomes e-par USA as a new Corporate Member.
MGCOA Announces 2012 Award Winners Greg Johnson, award-winning sports journalist and golf writer received the “Bruce Matthews Lifetime Achievement Award” in recognition of his outstanding service to the Michigan golf community. Johnson’s distinguished career includes 28 years with the Grand Rapids Press. Since he graduated from Michigan State University, Johnson has been writing about sports in Michigan, first as sports
ed Michigan Golf Course Owners Association’s Golf Course of the Year for 2012. With a long list of accomplishments, along with
will join us for a Town Hall style event at the Amway Grand Plaza Hotel the first week of December for the 2013 Michigan golf Business Conference. Many golf course owners and operators were on hand to receive the special Award of Merit for their 10 year participation in the Golden
Tom McGee and Paul Galligan
Greg Johnson was introduced by fellow journalist Jack Berry
editor of two papers in Hastings and then full-time at the Grand Rapids Press. Greg has been a fixture for all things golf in Michigan: professional and amateur, public and club golf. He is highly respected by his peers for his knowledge of the game and the people who play it. Fourteen years ago the Michigan Golf Course Owners Association hired its first employee. Kate Moore, MGCOA’s executive director, was that employee, and the MGCOA honored her commitment and contribution to the Association and to the golf industry in Michigan. Being at the helm for the formation of the Michigan Golf Alliance, development of the Michigan Golf League Championship, creation of the Golden Passbook to Michigan Golf and enhancement the Michigan Golf Business Conference, combined with her continued commitment to the MGCOA, made Moore the year’s recipient of the Lyle Leeke Distinguish Service Award. Grand Traverse Resort and The Bear in Traverse City was select-
community contributions and exceptional management, Grand Traverse Resort and The Bear was an easy selection. The combined 70 years of experience in key golf management of Director of Golf Tom McGee, Head Golf Professional Scott Hebert, and Director of Golf & Grounds Paul Galligan proved to be a winning formula. The Bear has been the host course for the Michigan Open for 24 years. The crowd went wild for “attitude guy” Sam Glenn at the MGCOA Golf
Erich Kuhlman, John Shelton
Passbook to Michigan Golf. Joining us in their hometown were Erich Kuhlman, director of golf and John Shelton, owner of the Fortress Golf Course in Frankenmuth.
Club Car and Turf Equipment Dealer and Distributor
Sam Glenn
Business Conference and Vendor Fair this winter. Glenn grabs your attention with his creative use of art styling and 6’2” oompaloompa size while all the time getting you to think about how your attitude rules your life and outcomes. A frequent visitor to the MGCOA conference Chief Capitol Correspondent Tim Skubick took questions from the audience on the topic of politics. Skubick 11
www.midwestgt.com
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Legislative Bulletin Blue Cross mutalization bills once again on way to Governor by Eric Rule, MGCOA Government Affairs Coordinator
Blue Cross Blue Shield is used to getting most of what the want when it comes to the legislative process. Transitioning from a straight nonprofit insurer of last resort to a corporate non-profit mutual insurance company took much longer than anticipated however. After having Governor Snyder unexpectedly veto the legislation last session, the Blues were right back first thing this session. This time, the language that derailed the bill last year was not included. That language centered around the inclusion of last minute language that dealt with requiring a rider for those seeking an abortion to be covered by their insurance company. Blue Cross executives have indicated that as soon as the bills are signed that the real work begins to transition the company into a mutual non-profit insurance company, regulated under the insurance code. Blue Cross previously was governed under its own act. It is likely to take the rest of 2013 to complete the process, and will be accomplished through cooperation with the board, management and
stakeholders to draft new bylaws and regulations. One of the main provisions in the very lengthy and in-depth legislation is the requirement that BCBS help fund the Michigan Health Endowment Fund by making total payments of up to $1.56 billion through their annual social mission over an 18 -year period. It is expected that Governor Snyder will sign the bills this time around. ROAD FUNDING BALLOT PLAN FIZZLES The complex plan to fund Michigan’s infrastructure repairs did not get off the ground this week and because of that it is likely dead. Senate Majority Leader Richardville floated the plan to remove the 6-cent sales tax on gas, reportedly worth $948 million, then voters would be asked to increase the sales tax from 6 percent to 7 percent to offset this reduction. To raise most of the $1.2 billion needed for roads, the gasoline tax would increase, either by raising the existing 19 cents per gallon or through a new tax structured as a percentage of the wholesale price.
National Legislative Resource Center As the individual with the most at stake in the success of your business, you are attuned to how the actions and interference of government and regulatory groups can affect your operation, both positively and negatively. On the NGCOA website, you can click on these headers and learn TEE-OFF TIMES
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more about the following legislative issues. • Seasonal Workers / H2B Visa • HIRE Act • Disaster Relief / American Recovery & Reinvestment Act • Americans With Disabilities Act / Single Rider Golf Cars • Eminent Domain • Employee Free Choice Act / Card Check Make your voice heard, visit www.mgcoa.org. 12
Well, the legislature needed to act on that proposal by March 7th to get it on the ballot in May. That didn’t happen. It appears that it’s back to the drawing board for legislators on this issue. LEVIN RETIRING FROM U.S. SENATE IN 2014 After 36 years in the United States Senate, Carl Levin has decided to retire and not run for reelection again 2014. Mr. Levin is the longest serving U.S. Senator in the state’s history and his retirement opens the door to a long list of replacements on both sides of the aisle. Mr. Levin began his career by ousting incumbent Senator Robert Griffin. He went on to win six consecutive elections, many without much challenge. Before his run for Senate, Mr. Levin spent eight years on the Detroit City Council. The list of names to replace Mr. Levin is quite long, but as of this afternoon, Former Secretary of State and current Congresswoman, Candice Miller, Former Attorney General Mike Cox, current Attorney General Bill Schuette, Clark Durant and Lieutenant Governor Brian Calley have all said no to the job. On the Democratic side, University of Michigan Regent Mark Bernstein, Debbie Dingell a former General Motors executive, member of the Wayne State University Board of Governors and wife of U.S. Rep. John Dingell (DDearborn) and U.S. Rep. Gary Peters (D-Bloomfield Township) are all said to be interested. It’s a long way until the 2014 election, but be prepared to hear a lot about this race. It only comes up once every 36 years.
Legislative Bulletin Brighter days ahead for Detroit
by Tom Schwark, Owner of Sycamore Hills Golf Course in Macomb and chair of the MGCOA Government Affairs Committee
March 11 and March 14, 2013 will be remembered as key days for the future of Detroit. Kwame Kilpatrick was indicted on 23 counts of felonies on March 11, and Governor Snyder appointed Kevyn Orr as emergency financial manager of Detroit on March 14. These two events will begin the long process of Detroit’s turnaround. Many people thought that Kwame was going to be acquitted of all charges. But, thankfully, the jury in his trial thoughtfully and deliberately found him guilty of 23 of the 28 counts he was charged with. The fact that he was acquitted of 5 charges, but guilty of the other 23 charges showed that the jury gave thoughtful consideration to each and every charge. The fact that he was guilty of 23 charges will make it virtually impossible for his attorney’s to appeal successfully. These convictions will begin to put an end to nearly 50 years of corruption in Detroit city government. It is one of the best things that could happen to Detroit. I would be surprised if Wayne County isn’t next in line for charges from the federal prosecutors. Robert Ficano and his gang don’t seem to be much better than the Kilpatrick administration. Kevyn Orr seems to be a strong choice as the EFM for Detroit. He is an African American Washington D.C. attorney who presided over Chrysler’s bankruptcy in 2009, and is a Michigan law school graduate. He has strong credentials, and Detroiter’s can’t play the race card with him. He will have 18 months to turn around Detroit’s finances, and he will no doubt make a tremendous amount of progress in that time. So, this four day period has begun the end of the culture of corruption, and the beginning of financial stability for the City of Detroit. We all know
Detroit won’t turnaround overnight, but I think we will see tremendous improvement in the next decade as opposed to another decade of decay. Baltimore, Pittsburgh, and Cleveland have turned around successfully, and Detroit will too. The improvement of Detroit bodes well for southeast Michigan. A
healthy, vibrant Detroit makes southeast Michigan a stronger region as opposed to the drain on resources that Detroit had been. Western Michigan and northern Michigan haven’t been as adversely affected by Detroit as southeast Michigan, but the improved health of Detroit will benefit the entire state.
Thank you Corporate Partners PLATINUM
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If your company is interested in the benefits of being a Corporate Partner, contact Jada Paisley at jpaisley@mgcoa.org 13
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Leagues impact is measured in cash register Spring in to Leagues
Since its first full year of operation, the MI GLC (Michigan Golf League Championship) has grown exponentially. 2013 will see the 9th Annual Golf League Championship, the “Championship for Ever yone,” open to league golfers in the state of Michigan who participate in the MGCOA’s league management system. I know how hard it can be to run a golf league. You want to spend more time on the course and less time in front of a computer. Let the Michigan Golf League Championship and Golf League Network manage your golf leagues. From automatic league scheduling to player stats and standings, the MI GLC supports a large number of league formats, handicaps and scoring.
The MI GLC is for any golf league, male, female or mixed, student or senior. As an owner or operator, you have the chance to get one or all of your
leagues involved. The price is designed to meet the needs of your golf course operation and to encourage the development of new leagues. You can pass the league fee on to the golfer in their league fees; this allows you to make a profit while providing an amazing loyalty product. Please take a few minutes to reacquaint yourself with migolfleague.com.
Call the MGCOA league partner Handicomp at 616-588-4356 and follow the road to more rounds and revenue. Take it from these golf course owners who had enjoyed a significant return on their investment: From Bill Fountain, The Majestic Golf Course, Hartland “Got Leagues? If you do, you fully understand how important these individuals are to your bottom line. They play every week, eat your food, drink your drinks, buy your hats, use the range and take lessons. When you talk about loyalty, league members are at the top. Enhance your position with your most valuable players, start new leagues, communicate via e-mail, and reward their loyalty. Join the www.migolfgleague.com today.” From Jeff Hoag, Scott Lake Country Club, Comstock Park “When the option to provide the league management service at one price for all of my league players became available, we analyzed the cost. $950 for the full course offering, 850 weekly league players 14,000 starts. We could provide this benefit for eight cents per round. It seems like a no brainer!” From Jim Scott, league player, Gull Lake View Golf Course, Augusta “The Golf League Network and the Golf League Championship Network are the simplest, quickest, most accurate and affordable way to manage golf leagues. I have played in and helped manage golf leagues for over thirty years and this systems works. The golf course owner and the golf league player get up-to-date information, statistics, schedule, standings, news, pairings, handicaps, and too much more to mention.”
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Guest Columnist General Overview of Property Taxation by Fred Mawson
While the general laws that impose property taxes are state laws, it is usually local jurisdictions (e.g., counties, townships, special taxing districts) that are responsible for assessing and collecting the taxes.
as a type of taxable personal property. In addition to real and personal property, some states tax possessory interests, which are private interests in publicly owned lands, such as boat slips at public marinas.
WHAT PROPERTY IS TAXABLE Real property is taxed in every state and is generally defined to include land and the improvements erected on or affixed to the land, such as buildings, structures, and fixtures. Personal property is taxed in most states and is generally defined as all property other than real property. Some states only tax tangible personal property, such as portable machinery or office furniture, while other states also tax intangible property. A lesser number of states include business inventory
WHERE PROPERTY IS TAXED In general, real property and possessory interests are taxable in the county where they are located. Tangible personal property is generally taxable where it has established “permanent situs.” If the property is moveable, determining permanent situs is usually dependent on a number of factors including the type of property, where the property is typically used, and the property owner’s residence. PROPERTY TAX EXEMPTIONS While all states have some form of
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property tax, most states have laws which provide for full or partial tax exemption for certain property. Some common types of property excluded fully or partially from taxation are personal effects (e.g., household furniture, clothing) and property owned or used by nonprofit organizations. Some states also offer preferential exemptions for new construction, manufacturing machinery and equipment, etc. to encourage economic activity. THE ASSESSMENT PROCESS In general, assessments are determined annually, as of a specific date (the “lien date”), which is January 1 in most states. The assessor must go through a series of steps - the assessment process Continued on page 16
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General Overview of Property Taxation Continued from page 15
- in order to be able to prepare the assessment. This process involves the assessor identifying all taxable property in the jurisdiction and obtaining an accurate description of the property, determining the property’s legal situs, classifying the property according to type, and collecting and analyzing economic data in order to value the property. Rules for reporting information to the assessor vary - a few states do not require disclosure of real property purchase information, and some states do not currently impose a penalty for failing to report personal property. Using the data obtained in the initial steps of the assessment process, the assessor will apply generally accepted methods of valuation to estimate the property’s taxable value. The valuation becomes the basis for the assessment. When the assessment is complete, the assessor provides notification of value to property owners in a manner prescribed by law (typically via U.S. mail). In addition to the assessment process, several jurisdictions perform property audits periodically. The audit cycle is every four years in California, but the timing varies by jurisdiction. Many states in the Eastern and Southeastern United States use third party auditors, who are very aggressive in attempting to collect more property taxes. It is especially important in these situations to employ local tax professionals who are familiar and experienced with the rules and procedures of the auditing jurisdiction. VALUATION ISSUES Property tax is an ad valorem tax, meaning it is a tax imposed on the basis of value. There are three generally accepted methods of valuation, used to estimate a property’s fair market value: the TEE-OFF TIMES
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cost approach, the comparative sales approach, and the income approach. Most jurisdictions require the assessor to analyze all the available data regarding a specific property and utilize the approach most appropriate for that property. APPROACHES TO VALUE With the cost approach, the value of improved real property is estimated by adding the value of the land to the estimated cost
to construct a reproduction or replacement of the existing structure and improvements less accrued depreciation. (Note, however, that differences between reproduction and replacement cost can be significant.) The cost approach can also be used to estimate the value of personal property, whose fair market value is generally based on the property’s original cost less an annual depreciation allowance. The cost approach is the most universally applied approach to value for property tax purposes; it is the preferred approach when reliable sales and income data are not available. The comparative sales approach, also called the market approach, is based on the premise that a property’s fair market value is closely and directly related to the sales prices of comparable properties. Thus, under this approach, the property being valued is compared to similar properties that have sold recently. With the income appr oach, capitalization techniques are used to convert an expected future income stream into a present value 16
estimate, which would indicate the property’s current fair market value. This approach is used when the property being valued is the type of property typically purchased as an income-producing investment. DEPRECIATION AND ADJUSTMENTS FOR CHANGES IN MARKET CONDITIONS A property’s value may change due to market factors, many of which are beyond the taxpayer’s control. There are three forms of depreciation that cause a property to lose value: physical deterioration, functional obsolescence, and external obsolescence. Sometimes the depreciation is considered curable (i.e., if the cost to cure the deficiency does not outweigh the resulting benefit), but often the deficiency gets overlooked by the assessor, especially when it involves environmental contamination. Physical deterioration may result from wear and tear either from use or due to the forces of nature. Functional obsolescence is the loss of value caused by the design of the property itself. When a property’s capacity to perform its intended function declines, functional obsolescence begins. Functional obsolescence may be attributable to such things as changes of taste in the marketplace, poor initial design, or advances in technology. External obsolescence, also called economic obsolescence, occurs when adverse external factors cause a loss in value. Increased building vacancy due to economic downturns and underutilization of property caused by decreasing demand are examples of external obsolescence. Because there are so many factors that can cause a property’s value to decrease, it is important that the assessor take such market factors into account in order to correctly estimate Continued on page 17
Property Taxation Continued from page 16
the property’s fair market value. If the assessor fails to recognize losses in value due to depreciation or changes in market conditions, or if the appropriate approach to value is not applied, such an error provides an opportunity for appeal. Thus, taxpayers should check the assessor’s records specifically for two things: (1) to make sure that all of the assessor’s data regarding your property is accurate; and (2) to see how the assessor determined the value for your property (i.e., which approach to value was applied). If you disagree with the values, you may appeal your assessment. THE APPEALS PROCESS Most states have laws providing taxpayers with a right to appeal should they disagree with their property tax assessments. However, the deadline for filing an appeal can vary greatly from jurisdiction to jurisdiction, and many jurisdictions have short deadlines. Thus it is very important for you to make sure that the assessor’s records contain your correct mailing address. Likewise, because of the many differences between jurisdictions, it is important to enlist local tax professionals in order to protect your rights as a taxpayer and to help ensure that your property is being taxed correctly by that jurisdiction. Finally, keep in mind that property taxes are the only taxes that are determined or directly affected by someone’s opinion. If that person uses faulty information or incorrect procedures in formulating an opinion of value, that opinion will be faulty or incorrect as well. In conclusion, Property taxes are paid on the value of the property regardless of whether a business is in a positive or negative position on its financials, and the rules regulating them can differ from one jurisdiction to the next. It is therefore more important then ever to understand what property is taxable and how it’s value is assessed.
“The Voice of Michigan Golf Business” Call us at 800-860-8575
Help the MGCOA with our existing initiatives in golf industry challenges in Michigan. These challenges cover a broad range of topics from water restrictions to taxation issues. These issues are real, and face us all now. If you are a member, thank you for renewing your membership for 2013. If you are not a member, we invite you to join Michigan’s golf business association. The MGCOA was formed in order to take a strong executive position in the State of Michigan. The MGCOA not only contributes financially, but also in time, effort, administration, decision-making, and leadership. In order to execute these goals effectively, it is important that very golf course has an ownership position. A commitment from everyone will make us all that much stronger. In return, we promise to work for the best interests of golf in Michigan – taking an executive level approach to monitoring, communicating, evaluating, and fighting for issues that affect each of us. In addition to the many benefits that membership provides to you, you will be supporting the initiatives that are so critical to the long term viability of golf in Michigan. Very best regards, Jeff Jeff Hoag President - MGCOA jeff@scottlake.com
Kate Kate Moore Executive Director – MGCOA kmoore@mgcoa.org
P.S. We believe that networking with other golf industry leaders is another great member benefit.
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Volunteers – The Strength of Every Association What coaxes an individual to join an association and then urges them on further to volunteer to be on a committee? Volunteerism is a vital thread of our American culture and activities and delivers a range of benefits to the Association. It speaks to our very mission. With strong volunteerism, Associations’ improve not only the delivery of benefits and services but also the sense of affiliation felt by our members and our volunteers. The MGCOA has two standing committees and we recognize these individuals for their contribution and enthusiasm for the work or the Association. Government Affairs Committee Kathy Aznavorian, Fox Hills Ed Clark, Sandy Ridge Salvatore Cottone, Twin Lakes Bill Fountain, The Majestic Frank Guastella, Franklin Golf Bob Koutnik, Fox Run Patty McCarthy, Reddeman Farms Joe Miesle, Hunters Ridge Steve Ramey, Chisholm Hills Tom Schwark, Sycamore Hills (chair) Jon Scott, Gull Lake View Joe Tignanelli, Westwynd Curtis Wright, Copper Hills Educational Support Foundation Trustees Frank Agnello, Wyndgate Kathy Aznavorian, Fox Hills Bill Fountain, The Majestic Frank Guastella, Franklin Golf Toni Joers, Concord Hills Kate Moore, MGCOA Carolyn Olson, Elmbrook Tom Schwark, Sycamore Hills Charlie Scott, Gull Lake View (chair) Brenda Velandra, Raisin Valley TEE-OFF TIMES
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MGCOA National Golf Course Owners Association Chapter Tee-Off Times is published by the Michigan Golf Course Owners Association, editor – Kate Moore. MGCOA offices are located at 603 S. Washington, Suite 303, Lansing, MI 48933. Phone (517) 482-4312, Fax (517) 267-8984. Articles written by outside authors do not necessarily reflect the view or position of the MGCOA. MGCOA’s position on key issues will be clearly stated. Manuscripts are accepted at the approval of the editor who reserves the right to reject or edit. Appearance in the Tee-Off Times does not constitute endorsement of the advertiser, its products or services, not does Tee-Off Times make any claims or guarantees as to the accuracy or validity of the advertiser’s offer and reserves the right to reject any advertising deemed unsuitable. Advertising rates and other information available upon request.
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