GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN

Transcription

1 IDAHO FALLS DIVISION OF PARKS & RECREATION GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN November 2012 pinecrest Sand creek sage lakes

2 Acknowledgements The City of Idaho Falls Golf Operations Five- Year Business Plan is the culmination of lots of hard work by many dedicated people and the input of more than 200 golfers. The golf course team would like to thank the Honorable Mayor Jared Fuhriman and City Council President Ida Hardcastle, as well as the entire City Council, for their support and encouragement. Additionally, staff would like to thank our devoted Golf Advisory Board members, especially Cochairmen Rick Carsone and Tom Hersh for their dedication and commitment to improving the golf courses for present and future generations of golfers. We are particularly grateful to Chuck Deming and Mel Erickson, as well as former Mayors and City Council members, who were instrumental in the development of the golf system we enjoy today. Mayor & City Council Jared Fuhriman Mayor Ida Hardcastle City Council President Karen Cornwell Thomas Hally Sharon Parry Mike Lehto Ken Taylor Golf Advisory Board Rick Carsone Co-Chairman Tom Hersh Co-Chairman David Bishop Jim Dalton J. Boyd Leavitt Dr. Gary Lattimore David Macdonald Wendy Landon Jack Simonds Dennis Peterson Diane Hendrickson Division of Parks & Recreation Department of Golf CHARLES CHUCK DEMING, SEPT Greg A. Weitzel Director Traci Foster Administrative Assistant Tim Reinke Pinecrest Professional Mark Spraktes Pinecrest Superintendent John Graham Sand Creek Professional Tim Lohse Sand Creek Superintendent Gaylen Denning Sage Lakes Professional Deren Bowman Sage Lakes Superintendent The City of Idaho Falls is a proud member of the National Golf Foundation who provided research, advice and assistance with this plan.

3 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN introduction Executive Summary The City of Idaho Falls operates three different golf courses that include Pinecrest, Sand Creek and Sage Lakes. All three facilities offer different golfing opportunities for players of all ages and abilities. In order to preserve, protect and enhance the City s golf resources, the Mayor and City Council requested that the Division of Parks and Recreation develop a Golf Operations Five-Year Business Plan. Over the last several years, the golf courses have been struggling to meet financial expectations and have relied on the City s General Fund to support operations. The ultimate goal of the plan is to assist the City in eliminating this reoccurring annual deficit while also saving revenues for future operations and capital projects. The City wants to know what needs to be done, and what can realistically be accomplished, for all three courses to achieve the maximum success possible. Included in this plan are a series of recommendations for the next five years and the results that can be expected from various strategies and options. Vision The City of Idaho Falls Municipal Golf Courses will: Be recognized by all golfers as the premier municipal golf operation in Idaho and used as a national example by the golf industry. Deliver exceptional customer service by meeting and exceeding expectations at all levels. Provide competitively priced golf to residents and visitors while remaining financially sustainable. Maintain and operate all three individual golf courses with enhanced conditions and excellent playability. Use best practices and innovative technology to improve the golf experience for all customers. Guiding Principles The guiding principles for the Golf Operations Five-Year Business plan include: 1) Customer Service 2) Financial Stability and 3) Effective and Efficient Operations. Mission The mission of the City of Idaho Falls Municipal Golf Courses is to provide a high quality golfing experience for players of all ages and abilities Memorial Drive, Idaho Falls

4 IDAHO FALLS DIVISION OF PARKS AND RECREATION Goals & Objectives The goal is to create a comprehensive plan for future operations, maintenance and capital improvements with input provided from the staff, golfers, the Golf Advisory Board and the general public. The objectives of the Golf Operations Five-Year Business plan are to: Create a sustainable funding mechanism for operations and capital improvements by developing a fiscally responsible pricing plan; Recommend innovative technology to simplify the golf experience for customers; Implement new, creative marketing and advertising with the right media and message to increase participation and remain competitive in the marketplace; and Increase communication both internally and externally to develop consistency in how all three courses are operated, managed and maintained. Public Input Public input was essential in the development of this plan and included interviews with customers, suggestion boxes at each facility, and a customer satisfaction survey that was completed by more than 200 golfers. In addition, key contributors to the plan included the Golf Advisory Board. The Golf Advisory Board makes recommendations to the Mayor and City Council concerning the operation and maintenance of the golf courses as well as expanding or renovating existing facilities. The Golf Advisory Board is composed of twelve (12) voting members as well as the Parks and Recreation Director, Golf Professionals and Golf Superintendents, who are non-voting members. The voting board members are appointed by the Mayor with confirmation by the City Council. Members of the Golf Advisory Board consist of the following: The president of the Idaho Falls Men s Golf Association The president of the Idaho Falls Women s Golf Association The president of the Senior Golf Association The president of the Junior Golf Association The president of the Working Women s League One member of the Idaho Falls Parks and Recreation Commission, as appointed by the Mayor Six at-large members appointed by the Mayor without regard to their affiliation with any group or organization. A member of the City Council, as appointed by the Mayor 2

5 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Backgrounds & History Pinecrest Golf Course, formerly known as Idaho Falls Municipal Golf Course, was acquired from the Idaho Falls Country Club by the City of Idaho Falls in Upon completion of the transaction, the City applied and was accepted by the Federal Government Works Progress Administration (WPA) to turn Pinecrest into a completely new, all grass golf course, which was started in the summer of After the work began, interest in golf grew rapidly, and by 1938, Pinecrest was the second 18-hole golf course in the state of Idaho. The first Idaho Open was played at Pinecrest in 1941 and in a survey by Life Magazine of public golf courses throughout the country, Pinecrest was selected as one of the three best courses west of the Mississippi. There have been many golf professionals that played Pinecrest over the years. In 1957, the National Professional Golf Association (PGA) selected the course to be included on the regular PGA Tournament schedule. Professionals like Sam Snead, Byron Nelson, Harold McSpaden, Patty Berg, and many others have acclaimed Pinecrest as one of country s best public golf courses. At one time, Sam Snead wrote an article in a leading golf magazine stating that Pinecrest, with a few alterations, could host the National U.S. Open Golf Tournament. NORTH Memorial Drive, Idaho Falls

6 IDAHO FALLS DIVISION OF PARKS AND RECREATION Sand Creek Golf Course opened in 1978 and was designed by golf course architect William F. Bell after Pinecrest s popularity resulted in overuse and also restricted people from learning to play golf. Located one mile south of Sunnyside Road at the intersection of Hitt and Township Roads in Bonneville County, Sand Creek is a championship course and the City s most heavily used golf facility. The bent greens course features 6,673 yards of golf from the longest tees for a par of 72. The course also features a six-hole short course that is popular with youth, as well as a driving and practice range. Mr. William Bengevfield, Western Director of the United States Golf Association Green Section stated, the rolling sand dunes, the abundance of water, the excellent soils and the proximity to town and tourists alike, make Sand Creek one of the potentially great golf courses in the west. Practice Green Club House NORTH 4

7 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Sage Lakes Golf Course was designed by William NORTH Howard Neff and was built in Several 3 water hazards dot the course which also includes multiple tee boxes varying from 5,000 to 6, yards, playing to a par 70. The greens are moderately contoured to help speed of play and the practice and driving range are ideally oriented to the sun. Hazards and features, such as tall grass and sand bunkers, are placed to be a test for the scratch golfer and fair to the avid and beginning golfers. Club House Memorial Drive, Idaho Falls

8 IDAHO FALLS DIVISION OF PARKS AND RECREATION PINECREST GOLF COURSE All three courses have ideal layouts and amenities that offer a high quality golf experience with good basic design, tree-lined fairways and possess design characteristics and features that are better than or comparable to other public golf courses in eastern Idaho. Golf Course Yardage 2013 Course Rating Men/Women Terrain Pinecrest Sand Creek Sage Lakes 6,421 yards blue tees 6,207 yards white tees 5,753 yards red tees 6,673 yards blue tees 6,322 yards white tees 5,763 yards red tees 4,883 yards red tees 5,668 yards white tees 6,202 yards blue tees 6,601 yards gold tees / / / / / / / / 78.0 Small greens, lots of trees, sand & grass bunkers Greens rolling, medium sized trees, water Medium size greens, lots of water, undulated fairways 6

9 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Golf Enterprise Fund The Idaho Falls Municipal Golf Courses are meant to operate like a business in what is known in the municipal sector as an Enterprise Fund. The golf courses are expected to generate sufficient revenues to cover operational and maintenance expenses, capital improvement costs and debt service. The City of Idaho Falls believes the Golf Enterprise Fund must be managed and maintained in a fiscally responsible manner so that users of the facilities are not only supporting daily operations and maintenance costs, but also the long-term capital improvement projects that are needed to keep the courses competitive and up to industry standards. Audit The Idaho Falls City Controller examines the daily cash receipts annually at Pinecrest, Sand Creek and Sage Lakes golf courses through an unannounced audit. Cash receipts and starter sheets are compared to tape balances to assure proper accounting of all funds are closed out and remitted daily. After an audit completed in September of 2012, the City Controller believes City funds are being properly reported and recommends Golf Shop employees continue to be trained on how to balance their registers according to currently accepted policies and procedures. In the future, the City Controller also recommends a Point of Sale (POS) system be implemented at all three courses which would provide improved and more efficient and easily accessible accounting of all operations. SAGE LAKES GOLF COURSE Memorial Drive, Idaho Falls

10 IDAHO FALLS DIVISION OF PARKS AND RECREATION Economic Impact The economic contribution of Idaho Falls three municipal golf courses as well as the thousands of golfers and the number of annual golf events are a key industry contributing to the vitality of the local economy. In addition, golf helps to bring visitors to the City, has played a key role in the development of new residential construction, generates retail sales and creates demand for a myriad of other goods and services. The money spent by the golfer also has an indirect effect on the regional economy. In order to operate and maintain the golf courses, a myriad of materials and supplies are purchased from other businesses. The golf courses also hire workers who spend money earned to purchase food, clothing, transportation and housing that in turn supports the local economy. The golf courses also assist with the regional hospitality and tourism industry, serve as valuable fundraising facilities for a number of non-profit and charitable organizations, and help realize additional property taxes for the City and Bonneville County due to golf-related property value enhancements. Overall, supporting the continued health of the golf industry in Idaho Falls has a direct bearing on future jobs, commerce, economic development, and tax revenues for the community. In order to determine an actual estimation of both the direct, indirect and induced economic impacts that the golf courses have on the region, an indepth economic impact analysis is recommended to be completed in the future. According to the National Golf Foundation (NGF), there are many potential uses for such an analysis that would include: Defining the range of core and enabled industries associated with the game of golf; Clearly articulating, for policymakers and regulatory agencies, the employment and revenue-generating contributions of the golf industry to the local economy; and Building credibility and recognition of the golf industry as a significant business sector and a driver of economic activity in the region. 8

11 Source: SRI International, the California Golf Economy Report, National Golf Foundation 10

12 IDAHO FALLS DIVISION OF PARKS AND RECREATION Rounds Of Golf The table below show rounds of golf (defined as one player with an authorized start) at each course from The highest amount of rounds for all three courses combined was recorded in 2009 at 130,882. The lowest amount of rounds was 115,715 in 2010 with the five-year average amount of rounds being 123,953. According to historical data, the highest record of rounds for all three courses were 144,647 in 2007 followed by 141,528 in All three courses are now exceeding the national average for public golf courses in the country, however, the yearly capacity of rounds, which is based on a number of factors including but not limited to weather conditions and tee time availability, is estimated at 45,000 to 50,000 rounds per course. Depending on the course, there is the opportunity to increase rounds of play by proximately 7,000 to 17,000 rounds per year. Sandcreek has the highest average rounds per year at 43,500 with the Sandcreek Short Course averaging 6,344 rounds per year. Pinecrest s average rounds for the last five years were 39,865 and Sage Lakes were 34,242. Another consideration in reviewing the rounds totals for the three courses is the number of days the facilities were closed or otherwise limited in hosting rounds due to inclement weather. In 2010 and 2011 respectively, the total rounds were down by approximately 10,000 rounds due to inclement weather. According to the NGF, the average rounds per 18- hole public golf course in the U.S. now stands at about 33,000 rounds, down about 12.7% from the 37,800 average recorded in TOTAL ROUNDS Golf Course Pinecrest 41,180 41,340 38,066 38,250 40,490 Sand Creek 44,547 45,840 40,091 42,658 44,368 Sand Creek Short Course 7,496 6,999 5,853 5,670 5,706 Sage Lakes 33,840 36,703 31,705 33,270 35,696 TOTALS 127, , , , ,260 Note: rounds include total rounds for both season passes and green fees. 10

13 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN 2012 Detailed Rounds The table below provides a more detailed summary of rounds by type of user for 2012 and shows the majority of play, approximately 60%, are season pass holders with 40% of players being green fee and punch pass players. Season pass holders are playing more weekday 9 and 18-hole rounds (47,352) versus weekend rounds (29,158). In addition, Sandcreek has the most weekday 18-hole rounds for season pass holders at 11,405 with Pinecrest seeing slightly more weekend 18-hole rounds (7,475) than the other two courses. When reviewing green fee rounds, non-residents are playing 26,574 rounds in comparison to resident rounds at 7,010. A majority of nonresident green fee rounds are being played at Sandcreek (10,796 or 41%) versus Pinecrest (8,533 or 32%) and Sage Lakes (7,245 or 27%) DETAILED ROUNDS SUMMARY Green Fee Rounds 2012 NON-RESIDENT GREEN FEES Pine Sand Sage Totals Weekday: 9 Holes 1,699 3,180 2,021 6, Holes 1,601 2,178 1,633 5,412 Weekend: 9 Holes 1,766 2,293 1,513 5, Holes 2,989 2,887 1,961 7,837 Out of State: 9 Holes Holes Subtotal 8,533 10,796 7,245 26,574 RESIDENT GREEN FEES Weekday: 9 Holes , Holes ,217 Weekend: 9 Holes , Holes ,808 Subtotal 2,331 2,109 2,570 7,010 MAKE-UP GREEN FEES Make-up One 1,005 1, ,284 Make-up Two Make-up Three 1, ,670 Short Course Green fees 0 4, ,519 Subtotal 2,672 5,807 1,001 9,480 continued on next column Season Pass Rounds WEEKDAY 9-HOLES (AND SHORT COURSE ROUNDS) Pine Sand Sage Totals Short Course/Young Adult Part Time Junior Full Time Junior Add on Senior 7Day Senior 7Day ,398 Add on Senior 5Day Senior 5Day ,226 1,079 2,839 Add on Adult ,699 Adult 9 3,127 3,643 3,215 9,985 Subtotal 5,449 7,231 6,444 19,124 WEEKDAY 18-HOLES (AND SHORT COURSE ROUNDS) Short Course/Young Adult Part Time Junior Full Time Junior Add on Senior 7Day Senior 7Day 5 1,784 2,141 1,723 5,648 Add on Senior 5Day Senior 5Day 7 2,232 2,597 1,691 6,520 Add on Adult ,512 Adult 9 3,415 4,865 3,504 11,784 Subtotal 8,681 11,405 8,042 28,128 WEEKEND 9-HOLES (AND SHORT COURSE ROUNDS) Short Course/Young Adult Part Time Junior Full Time Junior Add on Senior 7Day Senior 7Day ,040 Add on Senior 5Day Senior 5Day Add on Adult Adult 9 1,628 1,641 1,017 4,286 Subtotal 2,950 3,111 1,868 7,929 WEEKEND 18-HOLES (AND SHORT COURSE ROUNDS) Short Course/Young Adult Part Time Junior Full Time Junior Add on Senior 7Day Senior 7Day 5 1,527 1,115 3,101 5,743 Add on Senior 5Day Senior 5Day ,260 Add on Adult ,634 Adult 9 3,918 4,176 2,526 10,620 Subtotal 7,475 7,229 6,525 21,229 PUNCH PASS ROUNDS PLAYED - SUMMARY Weekday NINE 1,089 1,156 1,106 3,351 Weekday EIGHTEEN Weekend NINE 1,062 1, ,815 Weekend EIGHTEEN Subtotal 2,399 2,386 2,001 6,786 Total All Rounds Played 40,490 50,074 35, ,260 44,368 Reg. Course 5,706 Short Course Memorial Drive, Idaho Falls

14 IDAHO FALLS DIVISION OF PARKS AND RECREATION Season Pass Holders The table below shows the total amount of season passes sold from The highest amount of passes sold was in 2008 at 1,699 with the lowest amount being 1,437 in 2011 with the five year average being 1,583. In 2012, Senior 7 day and Senior Add 7 Day passes were initiated which reduced the amount of five day passes sold, however, when combined there were a total of 659 season passes sold which is significantly higher than in years past. Important to note is the consistent decline by approximately 20% in full-time junior passes sold over the last five years as well as an overall decline of 13% in season pass sales from 1,699 to 1,492, which is a difference of 207 pass holders. Average Revenue Per Round When compared to rounds played for the full system in 2012, the total average revenue earned per round of golf played for all three golf courses now stands at $12.56, excluding carts, merchandise, food and beverages. According to the NGF, the average public golf course in the U.S. produces approximately $22.58 per round in golf revenue including green fees, carts, and memberships, $2.43 per round in merchandise and $5.88 per round in food and beverage. Idaho Falls municipal golf courses are averaging a difference of -$10.02 when compared nationally which can be attributed to the low cost of green fees, a significant portion of rounds being played by season pass holders, and the exclusion of cart rentals into the equation SEASON PASS SUMMARY Type of Season Pass Adult Adult Add on Senior Add 5Day Senior 7Day 232 Senior Add 7Day 36 Full Time Junior Part Time Junior Young Adult TOTALS 1,699 1,634 1,656 1,437 1,492 AVERAGE PRICE PER ROUND Junior Pass Senior Pass Adult Pass Punch Pass Green Fee $5.02 $7.46 $9.65 $17.44 $

15 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN 2012 ORGANIZATIONAL CHART Mayor & City Council Director Parks & Recreation Golf Advisory Board Pinecrest Golf Professional Pinecrest Superintendent Sand Creek Golf Professional Sand Creek Superintendent Sage Lakes Golf Professional Sage Lakes Superintendent 2 F/T Seasonal Assistant Pros 5 P/T Seasonal Pro Shop Assistants 2 F/T Section Workers 1 F/T Seasonal Assistant Pros 6 P/T Seasonal Pro Shop Assistants 3 P/T Driving Range Help 2 F/T Section Workers 2 F/T Seasonal Assistant Pros 5 P/T Seasonal Pro Shop Assistants 2 P/T Driving Range Help 2 F/T Section Workers 12 P/T Seasonal Equipment Operators and/or Laborers 9 P/T Seasonal Equipment Operators and/or Laborers 7 P/T Equipment Operators and/or Laborers Memorial Drive, Idaho Falls

16 IDAHO FALLS DIVISION OF PARKS AND RECREATION Financial Status REVENUES A summary of financial performance of the three golf courses over the last five years is provided on page 15. Overall, the courses have been averaging revenues of $1,551,212 and expenditures of $1,724,074. The NGF estimate for total revenue per golf facility in the U.S. now stands at $1.3 million for municipal operations and $3.4 million for private clubs which is a full aggregate of all golf facilities in the U.S., inclusive of all climatic regions and facility types. A closer look at revenues over the last five years reveals that 2009 brought in the most funds at $1,614,470 with 2011 bringing in the lowest at $1,439,104, a difference of $175,366. The two driving ranges at Sand Creek and Sage Lakes raised an average of $93,935 and a total of $255,433 was set aside for capital improvements at all three courses. In 2012, non-resident green fees represented $477,569 or 30% of total revenues, season pass sales raised $441,005 or 28% of total revenues, and non-resident season passes raised $209,034 or 13%, resident green fees were $118,331 or 7%, and punch passes averaged $66,428 or 4% REVENUE SUMMARY Resident Green Fees $118,331 Non-Resident Season Passes $209,034 9% 16% Non-Resident Green Fees $477,569 36% 34% Punch Passes $66,428 5% Resident Season Passes $441,

17 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN EXPENDITURES Overall, the courses have been averaging expenditures of $1,724,074 with an annual deficit of $172,860 over the last five years represented the highest amount of expenditures at $1,806,569 with 2008 being the least amount at $1,662,654, a difference of $143,915. While revenues have remained relatively flat over the last five years, expenditures have increased by approximately 1.6% annually and 8% over the last five years which is a direct result of wage increases (+$65,316), operations and maintenance (+$21,513), employee benefits (+$13,385) and through the Municipal Equipment Replacement Fund (MERF) which increased by $22,535. INCOME STATEMENT Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual REVENUES Resident Green Fees $124, $150, $138, $128, $118, Golf Professional Fees 27, , , , , Concessions & Utilities 12, , , , , Non-Resident Green Fees 521, , , , , Sand Creek Short Course 14, , , , , Driving Ranges 95, , , , , Café Revenue 7, , , , , SALE OF SAND 6, , , , , Junior Punch Card Season Passes 431, , , , , Punch Cards 55, , , , , Non-Resident Punch Card 26, , , , , Non-Resident Season Pass 226, , , , , Capital Improvement Fund 49, , , , , Miscellaneous Revenues 2, , , TOTAL REVENUES 1,603, ,614, ,512, ,439, ,586, EXPENDITURES Wages 626, , , , , Benefits & Clothing 270, , , , , Operations & Maintenance 519, , , , , Capital Expenditures 61, , , , , MERF Depreciation 184, , , , , TOTAL EXPENDITURES 1,662, ,690, ,710, ,750, ,806, NET INCOME -58, , , , , Memorial Drive, Idaho Falls

18 IDAHO FALLS DIVISION OF PARKS AND RECREATION recommendations Administration The administration of all three courses are under the leadership of the Director of the Division of Parks and Recreation with management and maintenance currently operated by a group of dedicated golf professionals. After careful review, a determination has been made that the current operational structure is not conducive to maintaining profitability due to critical revenue centers being shared or outsourced. REVENUE CENTERS Outlined below is the current arrangement of revenue centers at all three public courses. Currently, the City of Idaho Falls has an agreement in place for compensation to the golf professionals that has been common practice within the municipal golf industry in years past. However, over the last few decades, and as a direct result of decreased revenues and increased expenditures within the golf industry, these types of revenue sharing operations have been restructured to return control of all, or most revenue centers, to municipalities. CURRENT REVENUE CENTERS 2012 Revenue Centers Notes Current Payment to City Green Fees & Season Passes Pros collect and deposit 100% Rental Carts & Pull Carts Pros own and operate all carts $130 per cart annual storage fee Driving Ranges Pros pay for some employees to assist 75% Total Receipts * Retail Pro Shop Pros operate, City employs staff, Pros provide added comp. to Asst. Pros 0% of gross sales Club Rentals/Repairs Pros operate all rentals & repairs 0% of gross sales Lessons Pros and assistants provide all lessons 0% of gross sales Food & Beverage Subcontracted to outside vendors 2% - 4% of gross sales *Note Pros currently receive 25% of total receipts not to exceed $11K per year 16

19 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN REVENUE CENTER RECOMMENDATIONS 1. Green Fees: in order to balance annual operating deficits, remain competitive and set aside funds for future operations and capital improvements, increase green fees minimally as outlined on the proposed fee structure table. 2. Rental Carts/Pull Carts: transfer this revenue center from professionals and increase current cart rental fees as outlined on proposed fee structure table. In addition, purchase new or update current pull carts as needed for each course. 3. Driving Ranges: transfer all proceeds from two driving ranges at Sand Creek and Sage Lakes revenue center from professionals and continue responsibility of operations to pro shop staff. A feasibility study should be conducted for a lighted, enclosed and heated year-round driving range at Sand Creek. If land could be acquired, the City should also consider the potential for a new driving range at Pinecrest. 4. Retail Pro Shop: consolidate retail pro shop purchasing and transfer these revenue centers under the Division of Parks and Recreation and place authority for purchasing efficiencies under the direction of one lead professional who would also be responsible for coordination of marketing and advertising. 5. Club Rentals and Repairs: create and advertise new club rental program with newest clubs from major suppliers each year; continue subcontractor club repairs with proceeds and expenditures being managed through each individual retail pro shop. 6. Lessons: establish separate license agreements with each professional for lesson operations and include percentage of gross sales or onetime payment for lesson exclusivity. 7. Food and Beverage: continue subcontracts while completing a feasibility study with outside food and beverage consultants in 2013 to study and recommend potential consolidation of food, beverage and future banquet services, including Tautphaus Park Zoo café services. 8. Championship Miniature Golf Course: complete feasibility study for potential championship miniature golf course in concert with driving range improvements that could be located at Sand Creek Memorial Drive, Idaho Falls

20 IDAHO FALLS DIVISION OF PARKS AND RECREATION CURRENT STAFFING TABLE COMPARISON When compared to the national and regional golf industry, staffing levels are below average but consistent with courses in nearby communities. According to the NGF, current staff size is lower than courses of similar operations nationally. However, there are no industry standards that can be referenced to determine the appropriate staffing levels for a golf operation. Currently, food and beverage is subcontracted staff and part-time seasonal maintenance employees vary at the three courses which is dependent on the type of maintenance and service provided. For example, due to their relatively smaller size, Pinecrest hand mows and levels their greens and sand traps daily in comparison to Sand Creek and Sage Lakes who currently use riding equipment for greens and bunkers. Distribution of staff has to be carefully balanced to continue the quality of conditions and service that customers expect and are also dependent on a myriad of factors including but not limited to budget, course conditions and weather. STAFFING DISTRIBUTION COMPARISON 2012 Pinecrest Sand Creek Sage Lakes National/State Average Pro Shop Staff 3 FT+5 PT = 5.5 FTE 2 FT+6 PT = 5 FTE 3 FT+5 PT = 5.5 FTE 9.5 FTE Maintenance Staff 3 FT+12 PT = 9 FTE 3 FT+12 PT = 9 FTE 3 FT+9 PT = 7.5 FTE 10 / *11.5 FTE Food & Beverage 3 FT+2 PT = 4 FTE 1 FT+3 PT = 2.5 FTE 1 FT+3 PT = 2.5 FTE 3 FTE TOTALS 18.5 FTE 16.5 FTE 15.5 FTE 22.5 FT * State average provided by the Golf Course Superintendent s Association of America SAND CREEK GOLF COURSE 18

21 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN STAFFING RECOMMENDATIONS 1. Continue current full and part-time staffing levels with working superintendents and balance starting and ending times for seasonal employees according to weather and course conditions. 2. Due to transfer of revenue sharing agreements back to city, increase current salaries for professionals to local industry standards and update current job descriptions. 3. Develop new job description and responsibilities for lead professional to become manager of golf operations who would be responsible for retail pro shop purchasing efficiencies, marketing and advertising, tournament coordination and yearly staff training. 4. Determine and adjust hourly rate of pay increase for assistant golf professionals according to compensation previously provided by professionals. 5. Install and implement time clocks for 2013 season at each Pro Shop and maintenance facility for more accurate accounting of hourly payroll, include staff training and establish time clock policies and procedures for all staff. 6. Update policy and procedure manual and implement training component for all staff through the assistance of Human Resources and hold full staff meetings at the beginning of each year concentrating on customer service, proper equipment usage, safety training, point-of-sale system and cash handling policies and procedures. 7. Develop and advertise work schedule and assignments for spring cleanup assistance and other year-round work items that could be provided through work release crews, other volunteers or through other division staff assistance. 8. Develop and advertise an internship or practicum educational program and recruit students pursuing higher education in golf course management and maintenance. 9. Complete a detailed staffing analysis and review of all full-time, part-time and seasonal employees; develop succession plan and consider upcoming retirements and potential payouts that could significantly impact the budget for the next 10 years Memorial Drive, Idaho Falls

22 IDAHO FALLS DIVISION OF PARKS AND RECREATION Capital Improvement Plan (CIP) A capital improvement plan, or CIP, is a shortrange plan, usually five to ten years that identifies capital projects and equipment purchases that are needed and recommends priorities, schedules and identifies options for financing. Golf course capital improvements are defined as an addition of a permanent structural improvement or restoration of some aspect of the golf courses that will enhance the value of the property. There is a number of capital improvements listed below for each golf course. Funding for the projects will be partially based on financial forecasts provided in this plan with staff recommending priority projects that could be reasonably completed within current and future budget constraints. Capital expenditures should also be prioritized to maximize benefits to the overall golf system and improve the self sufficiency of each golf complex. The list below provides staff recommendations provided in 2012, however, the capital improvement plan should be reviewed and adjusted annually. CAPITAL IMPROVEMENT PLAN Pinecrest Estimated Cost Independent Irrigation System Review and Inspection $10,000 Potential Irrigation System Renovation $1,000,000 Cart Path Replacement $25,000 Maintenance Facility Restroom $35,000 Chemical Spill Clean-Up Station $5,000 Exterior Fence Replacement $50,000 New Entranceway, Way Finding and Course Signage $10,000 Upgrade Tourist Park Billboard $5,000 Snack 9th Hole Renovation $30,000 Electrical, Sewer and Water Line Upgrades $100,000 Tee and Bunker Renovations $20,000 Install Tournament/Event Tent and/or Pavilion (tables, chairs, etc.) $30,000 Pro Shop and Building Upgrades (fireplace, banquet amenities, etc.) $10,000 New Equipment Purchases (excluding MERF) $50,000 Arbor Care, Tree and Stump Removal $10,000 Professional Services, Architectural and Engineering Fees $80,000 SUBTOTAL $1,470,000 continued on next page 20

23 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Sand Creek Estimated Cost Pro Shop / Café Facility Renovation $100,000 Cart Path Replacement $15,000 Electrical, Sewer and Water Line Upgrades $300,000 Roof Replacements $10,000 Maintenance Storage Facility Upgrades $60,000 New Entranceway, Way Finding and Course Signage $10,000 Install New Billboard $15,000 Install Tournament/Event Tent and/or Pavilion (tables, chairs, etc.) $30,000 Purchase and Install Pond Aeration/Fountain Units $20,000 Heated Driving Range Expansion with Lights $300,000 New Equipment Purchases (excluding MERF) $50,000 Arbor Care, Tree and Stump Removal $10,000 Professional Service, Architectural and Engineering Fees $75,000 SUBTOTAL $995,000 Sage Lakes Estimated Cost Pro Shop / Café Facility, Restroom Renovations $40,000 Asphalt /Cement Fence Line Project $5,000 New Perimeter Multi-Purpose Pedestrian/Bicycle Trail (To be paid through other sources) $500,000 Cart Path Replacement $15,000 Asphalt Road to Pump house $18,000 Sand, Gravel, Topsoil Storage Facility $10,000 Maintenance Facility Lighting $5,000 Electrical, Sewer and Water Upgrades $20,000 New Entranceway, Way Finding and Course Signage $10,000 Install New Billboard $15,000 Install Tournament/Event Tent and/or Pavilion (tables, chairs, etc.) $30,000 Purchase and Install Pond Aeration/Fountain Units $20,000 Tee and Bunker Renovations $20,000 New Equipment Purchases (excluding MERF) $25,000 Professional Service, Architectural and Engineering Fees $30,000 SUBTOTAL $763,000 TOTAL CIP ESTIMATED $3,178, Memorial Drive, Idaho Falls

24 IDAHO FALLS DIVISION OF PARKS AND RECREATION Cart Path Replacement - The condition of asphalt cart paths at all three courses are deteriorating and in need of replacement. Improvements to these areas will help save wear and tear expense on cart maintenance and make the golf round more enjoyable, leading to repeat play. Irrigation Systems Inspection - The pictures below are examples of the condition of the irrigation system at Pinecrest and Sand Creek. An independent irrigation system review and inspection of all three golf courses should be completed to determine needed upgrades. Sage Lakes Pro Shop Restroom Renovations The restrooms at the Pro Shop at Sage Lakes are in need of a remodel. Sand Creek Pro Shop will need new siding and a roof and maintenance facility upgrades for proper equipment storage. 22

25 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Arbor Care According to a recent United States Golf Association (USGA) inspection, there are numerous trees at Pinecrest that are in need of pruning and removal for the safety of the golfing public and to improve playability. Special Event Tournament Tent or Pavilion One item that is growing in popularity at public golf courses are covered outdoor tents or pavilions for use by tournaments or other large special events like weddings or business gatherings. The areas should comfortably seat 125 to 150 patrons with portable folding tables and chairs. Driving Ranges As Sand Creek and Sage Lakes driving ranges are only open seasonally during daylight hours; a feasibility study should be conducted for a lighted, enclosed and heated year-round driving range at Sand Creek. If land could be acquired, the City should also consider the potential for a new driving range at Pinecrest. Bunkers Several bunkers on the golf courses are in need of repair to fix erosion and drainage problems Memorial Drive, Idaho Falls

26 IDAHO FALLS DIVISION OF PARKS AND RECREATION Fee Structure The table on the following page displays the current and proposed fee structure for Prior to developing the new fee structure, benchmarking was done by reviewing national, regional as well as more than 15 different public golf courses in Idaho. In addition, staff also considered a myriad of fee structure suggestions from numerous sources, including local golfers and the public at large, along with recommendations from the Golf Advisory Board. After developing, reviewing and analyzing the advantages, disadvantages and impact of more than 20 different fee structures, the recommended fee structure provides a fair and balanced approach to increasing fees that allows for additional revenues to support operations and make much needed capital improvements. Most important to consider in the new fee structure table is the first year as years 2014 through 2017 are merely the same pricing ideas with a 3.5% increase to keep up with the cost of inflation. Currently, the difference between playing 9 and 18-holes is only $4.00 dollars. While benchmarking, staff discovered that a majority of courses charged approximately $10.00 dollars more for golfers to play 18 holes. Therefore, the difference between 9 and 18-holes has been increased by approximately $7.00. Overall, weekday and weekend resident green fee rates are increasing by an average of $2.50, non-resident rates are being raised by an average of $3.15, resident season passes are increasing by $17.50 with non-resident season passes by $ In addition, punch passes are being raised according to the new rates and will continue to offer the tenth round for free. Driving range fees increase by an average of $2.25 and Sand Creek short course fees rise by approximately $3.70. To arrive at the estimated additional revenue generated by this proposed fee structure, the average sales for each category from were used. Anticipated revenues from all increases will average approximately $154,653 in 2013 and between $58,000 to $64,000 in additional revenue from years

27 CURRENT AND PROPOSED FEE STRUCTURE Average Units Sold Current Prices Proposed 2013 Prices Cost Difference RESIDENT GREEN FEES Weekday: 9-Holes $14.50 $15.00 $0.50 Average Increase Amount of Income Generated % Increase % Increase % Increase % Increase $1, $15.53 $16.07 $16.63 $ Holes $18.50 $22.00 $3.50 $4, $22.77 $23.57 $24.39 $25.25 Weekend: 9-Holes $14.50 $16.00 $1.50 $3, $16.56 $17.14 $17.74 $ Holes $18.50 $23.00 $4.50 $9, $23.81 $24.64 $25.50 $26.39 $2.50 Make-up Green Fee $0.00 $0.00 $0.00 Make-up One $4.00 $7.00 $3.00 $8, $7.25 $7.50 $7.76 $8.03 Make-up Two $3.00 $3.00 $0.00 $0.00 $3.11 $3.21 $3.33 $3.44 Make-up Three 5927 $1.00 $1.00 $0.00 $0.00 $1.04 $1.07 $1.11 $1.15 RESIDENT SEASON PASSES First Adult $ $ $31.00 $13, $ $ $ $ Second Adult $ $ $29.00 $2, $ $ $ $ First Senior 5-Day 136 $ $ $15.00 $2, $ $ $ $ Second Senior 5-Day 10 $ $ $17.00 $ $ $ $ $ First Senior 7-Day 163 $ $ $15.00 $2, $ $ $ $ $17.78 Second Senior 7-Day 29 $ $ $17.00 $ $ $ $ $ Full-Time Junior $ $ $15.00 $2, $ $ $ $ Part-Time Junior 7.75 $ $ $6.00 $46.50 $ $ $ $ Junior Pass Credit 24 $ $ $15.00 $ $ $ $ $ Young Adult Pass $ $ $31.00 $13, $ $ $ $ RESIDENT PUNCH PASS 10 TIMES 9-Hole Punch $ $ $10.00 $5, $ $ $ $ $ Hole Punch $ $ $30.00 $1, $ $ $ $ NON-RESIDENT GREEN FEES Weekday: 9-Holes $17.50 $18.00 $0.50 $3, $18.63 $19.28 $19.96 $ Holes $21.50 $25.00 $3.50 $18, $25.88 $26.78 $27.72 $28.69 Weekend: 9-Holes $17.50 $19.00 $1.50 $9, $19.67 $20.35 $21.07 $21.80 $ Holes $21.50 $26.00 $4.50 $39, $26.91 $27.85 $28.83 $29.84 Out-of-State: 9-Holes 376 $25.00 $28.00 $3.00 $1, $28.98 $29.99 $31.04 $ Holes $29.00 $35.00 $6.00 $5, $36.23 $37.49 $38.81 $40.16 NON-RESIDENT SEASON PASSES First Adult $ $ $33.00 $8, $ $ $ $ Second Adult 36.5 $ $ $28.00 $1, $ $ $ $ First Senior 5-Day 76 $ $ $17.00 $1, $ $ $ $ $20.83 Second Senior 5-Day 4 $ $ $15.00 $60.00 $ $ $ $ First Senior 7-Day 66 $ $ $17.00 $1, $ $ $ $ Second Senior 7-Day 6 $ $ $15.00 $90.00 $ $ $ $ NON-RESIDENT PUNCH PASS 10 TIMES 9-Hole Punch 171 $ $ $11.00 $1, $ $ $ $ $ Hole Punch $ $ $31.00 $ $ $ $ $ LOCKERS Annual Locker Fee 14 $12.50 $13.25 $0.75 $0.75 $10.50 $13.71 $14.19 $14.69 $15.20 CART USAGE FEES ADA Cart Fees $ $ $24.00 $ $ $ $ $ Cart Rental - 9-hole/1 rider $5.00 $6.00 $1.00 $24.00 $0.00 $0.00 $0.00 $0.00 $0.00 Cart Rental - 18-hole/1 rider $10.00 $11.50 $1.50 $0.00 $0.00 $0.00 $0.00 $0.00 DRIVING RANGE Small Bucket $3.75 $4.00 $0.25 $1, $4.14 $4.28 $4.43 $4.59 Large Bucket $4.75 $5.50 $0.75 $14, $5.69 $5.89 $6.10 $6.31 $2.25 Small Bucket 10-Punch 1 $32.00 $34.00 $2.00 $2.00 $35.19 $36.42 $37.70 $39.02 Large Bucket 10-Punch 13 $40.75 $46.75 $6.00 $78.00 $48.39 $50.08 $51.83 $53.65 SHORT COURSE Green Fees $3.50 $4.00 $0.50 $2, $4.14 $4.28 $4.43 $4.59 Punch Pass $29.75 $34.00 $4.25 $0.00 $35.19 $36.42 $37.70 $39.02 $3.69 Yearly Pass 75 $80.00 $84.00 $4.00 $0.00 $86.94 $89.98 $93.13 $96.39 Yearly Pass 115 $ $ $6.00 $0.00 $ $ $ $ FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Gross Amount Generated $164, $61, $63, $66, $68, Net Amount $154, $58, $60, $62, $64,676.16

28 IDAHO FALLS DIVISION OF PARKS AND RECREATION Pro Forma Budget The table on the following page presents the fiveyear pro forma budget based on the transfer of revenue centers and proposed new fee structure for Although the 2013 budget is currently underway, staff are requesting that the budget be reopened for the purposes of reorganizing revenues and expenditures associated with this business plan and to avoid future deficits in the golf enterprise fund. REVENUES The total revenue for 2013 would be approximately $2,600,730 which is an increase of $1,014,659 from A closer look at revenues and the proposed increases show that resident green fee revenues are projected to increase from 2012 actuals by approximately $27,169, non-resident green fee revenue by $77,866, driving range revenues by $36,803, resident season passes by $38,134 and nonresident pass revenue by $11,712 dollars. In addition, new revenue sources being transferred from the professionals include rental cart fees at $365,000, rental clubs and pull carts at $55,000 and retail pro shop sales at $410,000. The projected budgets are based on increases to fees as proposed at 3.5% which averages approximately $62,000 in additional revenue each year. EXPENSES Expenses of $2,550,750 in 2013 increase by $741,599 in comparison to 2012 based on a number of factors, including wage increases by approximately $201,534 due to new salary structures for the three golf professionals and an increase for assistant professionals. Benefit and clothing expenses would also increase by $47,549 based on PERSI retirement salary adjustments for the professionals and new uniforms for all staff. Operations and maintenance expenses also increase by approximately $81,321 from actual 2012 expenses. Rental cart expenses for 2013 are based on the recommendation to purchase the existing fleet from the professionals based on fair market value over the next two years at $75,000 each year. In addition, rental cart expenses are budgeted at $40,000 each year based on fuel and repair costs. By transferring the retail pro shops under the Division of Parks and Recreation, inventory costs are expensed at $300,000, marketing and advertising expenses at $15,000 as well as Point-of- Sale (POS) system and additional credit card fees at $53,000 which are new expense line items. Overall, projected revenues over expenditures for 2013 is estimated at $49,980 and from 2013 through 2017 are estimated to be $600,577 dollars. 26

29 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN PRO FORMA BUDGET 2012 Actual Proposed Increase 2013 Revised Budget 2014 Projected Budget 2015 Projected Budget 2016 Projected Budget 2017 Projected Budget REVENUES Resident Green Fees $118,331 $27,169 $145,500 $150,593 $155,863 $161,318 $166,965 Resident Season Passes 441,006 38, , , , , ,824 Resident Punch Cards 73,206 5,515 78,721 81,477 84,328 87,280 90,334 Non-Resident Green Fees 477,570 77, , , , , ,376 Non-Resident Season Pass 209,035 11, , , , , ,312 Non-Resident Punch Card 33,353 2,256 35,609 36,855 38,145 39,480 40,862 Junior Punch Card Sand Creek Short Course 14,967 2,333 17,300 17,906 18,532 19,181 19,852 Driving Ranges 97,254 36, , , , , ,833 Rental Cart Fees 0 365, , , , , ,000 Retail Pro Shop Sales 0 410, , , , , ,000 Rental Clubs and Pull Carts 0 55,000 55,000 45,000 45,000 45,000 45,000 Golf Professional Fees 26,195-24,695 1,500 1,553 1,607 1,663 1,721 Café's and Utilities 17, ,400 18,009 18,639 19,292 19,967 Sale of Sand 5,534 4,466 10,000 10,000 10,000 10,000 10,000 Capital Improvement Fund 62,684 2,316 65,000 65,000 65,000 65,000 65,000 Miscellaneous Revenues 9, ,000 10,000 10,000 10,000 10,000 TOTAL REVENUES $1,586,071 $1,014,659 $2,600,730 $2,669,731 $2,730,796 $2,793,999 $2,859,414 EXPENDITURES Wages $692, ,534 $893,685 $902,622 $911,648 $920,765 $929,972 Benefits & Clothing 283,648 47, , , , , ,645 Operations & Maintenance 541,247 81, , , , , ,706 Capital Expenditures 85,411-69,911 15,500 40, , , ,000 Rental Cart Purchase 0 75,000 75,000 75,000 30,000 40,000 40,000 Rental Cart Expenses 0 40,000 40,000 41,200 42,436 43,709 45,020 Retail Pro Shop Inventory 0 300, , , , , ,000 Marketing and Advertising 0 15,000 15,000 15,000 15,000 15,000 15,000 POS and Credit Card Fees 0 53,000 53,000 5,000 5,000 5,000 5,000 MERF Depreciation 206,695-1, , , , , ,000 TOTAL $1,809,151 $741,599 $2,550,750 $2,559,576 $2,607,421 $2,651,003 $2,685,343 EXPENDITURES 2012 Actual Proposed 2013 Revised FY FY FY FY Increase Budget NET INCOME -$223,080 $273,060 $49,980 $110,155 $123,376 $142,996 $174,071 *Note - Proposed revenue over expenditures from FY FY 2017 = $600, Memorial Drive, Idaho Falls

30 IDAHO FALLS DIVISION OF PARKS AND RECREATION Rental Cart Operations Currently, the 160 rental carts in the fleet are owned and operated separately by the three golf professionals who pay $130 per cart annual storage fee to the City as well as fuel expenses. The carts are a mix of gas (Sand Creek, Sage Lakes) and electric power (Pinecrest). Electric carts are generally less expensive to operate (both for the cost of gasoline and the ease of maintenance), and electric carts generally are preferred by golfers as they are quieter and do not emit exhaust fumes. Rental cart revenues for the three courses have been averaging approximately $340,000 per year with overall expenses, excluding fuel, being approximately $40,000. The plan recommends transferring this revenue center from the professionals by purchasing the existing fleet at fair market value over the next two years, increasing current cart rental fees as outlined on the proposed fee structure table, and purchasing new pull carts as needed for each course. For the purpose of this plan, quotes were received from several cart suppliers and different lease options were explored and analyzed. Over the next five years, and as the current fleet ages and repair expenses increase, a three (3) to four (4) year leaseor-purchase option should be explored to allow for newer carts which are preferred by customers. Driving Range Operations The driving range operations represent an important part of the Idaho Falls golf system as both Sand Creek and Sage Lakes operate driving ranges as well as practice greens. In 2012, revenues received from the driving ranges totaled $116,759 with $97,254 coming to the City and the professionals receiving 25% of the total receipts, or $19,505, with each professional s proceeds not exceeding $11,000 per course. The plan recommends transferring all driving range proceeds from the professionals and continuing responsibility of operations to the pro shop staff. The driving ranges present an excellent opportunity for more revenue generation and efforts should be made to better market and advertise the ranges to the general public to increase activity. In addition, as Sand Creek and Sage Lakes driving ranges are only open seasonally during daylight hours, a feasibility study should be conducted for a lighted, enclosed and heated year-round driving range at Sand Creek. If land could be acquired, the City should also consider the potential for a new driving range at Pinecrest. 28

31 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Retail Pro Shop Operations The retail pro shops located at each golf course are currently operated as separate businesses by the three golf professionals. Overall, retail pro shops have the potential to generate a significant source of earned revenues as well as improve the quality of the experience for the golf customer. By concentrating on quality products and a strong inventory, excellent customer service, increased marketing and advertising including promotions, and creating incentives for staff, the retail pro shop can become a successful enterprise. According to the NGF, most successful pro shops will have a cost-of-goods for merchandise sales of around 65-70%, for an approximate profit margin of 35-40%. The plan recommends transferring the operations of the three retail pro shops under the Division of Parks and Recreation and budgeting $300,000 in inventory and $410,000 in sales for 2013, for an approximate profit margin of 30%. Purchasing efficiencies would be placed under the direction of the Manager of Golf Operations that would also be responsible for coordination of marketing and advertising, promotions, regular reporting and point-of-sale system implementation and yearly training for all staff Memorial Drive, Idaho Falls

32 IDAHO FALLS DIVISION OF PARKS AND RECREATION Food, Beverage And Facility Rentals The food and beverage service at all three golf courses are currently provided through separate lease and concession agreements with two different vendors. The subcontracted cafés include counter service of a basic menu of items consistent with a standard public golf course and they also hold separate beer and wine liquor licenses. The kitchens are small but functional and include deep fryers, stoves, burners, grills and sandwich prep areas with most equipment being owned by the City. The cafes at both Sand Creek and Sage Lakes can comfortably host up to 50 patrons for a seated indoor gathering and there is also outdoor seating for approximately guests. The 19th Hole Café at Pinecrest Golf Course has an indoor eatery that seats approximately 30 guests and also operates a small snack shack between the 9th and 10th tees. Pinecrest also has a large room that could seat guests and all three cafes offer tournament packages of varying prices. A review from the subcontracted food and beverage operations at each course for the last two years is provided below: In 2012, total gross revenues at all three cafes totaled $298,835 for an average of $2.38 per round. According to the NGF, the average public golf course in the U.S. produces approximately $5.88 per round in food and beverage. With only a 2% to 5% share of revenues, the City does not appear to have a significant economic stake in the food and beverage operation at the three golf courses. Food and beverage operations at public golf facilities are key amenities and good service can be a driver to increase rounds of golf, especially for tournaments. Additional revenue could also be generated through other non-golf business such as banquets, luncheons, parties, and well as regular restaurant visits. In addition, beverage carts provide an important level of customer service that improves the overall golf experience and provides additional revenue opportunities if the golfer has an opportunity to purchase beverages and snacks at least once per nine holes. FOOD AND BEVERAGE CONCESSION REVIEW Golf Course Gross Revenue Payment to City/GP 2012 Rounds Average 2012 Revenue per round Pinecrest 19th Hole $115,591 $115,828 $4,633/4% 40,490 $2.86 Sand Creek Café $98,935 $106,580 $5,400/5% 50,074 $2.13 Sage Lakes Café $66,844 $76,427 $1,410/2% 35,696 $2.14 Totals $281,370 $298,835 $11, ,260 $

33 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN FOOD AND BEVERAGE RECOMMENDATIONS 1. Continue current subcontractor agreements, increase percentage of gross sales payment and require beverage cart services for 2013 season, particularly during tournaments and peak times. Require uniforms for staff, reporting of daily receipts and z-tapes, and coordinate daily specials with lead golf professional for marketing and advertising purposes. 2. Complete feasibility study with outside food and beverage consultants in 2013 to analyze and recommend potential consolidation of food, beverage, tournament and banquet services, including Tautphaus Park Zoo café. 3. Review vending machines options for public and staff facilities at all three courses and negotiate agreement with subcontractor or explore self-stocking options. 4. Establish and advertise facility rentals and room space for meetings or functions surrounding tournaments and establish rates for usage for non-profit and commercial rate for reservations. 5. Explore locations and costs for special event pavilion or tents for use by tournaments or other large special events like weddings or business gatherings. The areas should comfortably seat 125 to 150 patrons with portable folding tables and chairs. TOURNAMENTS Tournaments, Leagues, Programming & Lessons More than 60 regular tournaments are currently held each year at the three golf courses beginning in the first week of April and continuing to late October depending on the weather. There are also a myriad of small company outings and groups that number less than 24 players. In 2012, Pinecrest had 12 major events and 14 company outings, Sand Creek had nine (9) major events and 12 company outings, and Sage Lakes had seven (7) major events and seven (7) company outings. A master schedule is compiled each year and tournament coordination and communication is organized by the lead golf professional. GOLF LEAGUES There are a number of long-standing leagues that regularly use the three golf courses and are permitted to schedule weekly tee times throughout the summer as approved by the Golf Advisory Board. The Idaho Falls Ladies Association holds Ladies Day morning tee times twice a week rotating among the three golf courses. The Idaho Falls Senior s Association reserves morning tee times, once a week, rotating among the three courses. The Idaho Falls Working Ladies Golf League is the only league to be granted permission to have evening tee times twice a week rotating among the three golf courses. Other golf leagues and organizations are required to call-in for tee times and reservations Memorial Drive, Idaho Falls

34 IDAHO FALLS DIVISION OF PARKS AND RECREATION Junior Golf Association The Idaho Falls Junior Golf Association assisted by the three golf professionals is composed of more than 550 local junior golfers (4 to 17 years old). In order to be a member, golfers must pay an annual membership due of $35.00 dollars and attend a yearly mandatory etiquette and rules seminar. The program includes lessons, tournament activity and nine (9) scheduled weekly Junior Days held every Monday, alternating each week between Pinecrest, Sand Creek and Sage Lakes so that two courses are always open for public play. The season is culminated with the annual awards banquet where trophies are presented to the top boys and girls who participated in the Junior Club Championship. There are also a number of high school teams that use the three public courses with Skyline High School, Idaho Falls High School, and Bonneville High School teams being coached by the three golf professionals. Hillcrest High School, Shelley High School and the Montessori High School also use the courses as their home facility for practice and school tournaments. Lessons & Clinic Operations The three courses have demonstrated a strong commitment to golf instruction by offering some type of lesson program at each course individually through Professional Golf Association (PGA) certified professionals and assistant golf professionals. Lessons and other clinic programs serve many functions and can help improve overall revenue for the golf system through direct program revenue and through the development of new golfers and the advancement of existing players. The NGF has documented a Golf Enthusiasm Index that shows how better play directly correlates to increased spending golfers who play better (score lower) tend to play and spend more on golf. As such, the lesson programs for both beginners and more advanced players will do much to help improve overall revenue performance. The plan recommends establishing separate license agreements with each PGA professional for lesson operations and includes percentage of gross sales or one-time payment for lesson exclusivity. In addition, free clinics and an official golf instruction program should be developed and advertised to increase lessons and golf participation. 32

35 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN technological advancements Point Of Sale (POS) & Reservation System The three golf courses currently operate without a formal point-of-sale (POS) system for accurate record keeping of all sales and reservations. A high quality POS system that integrates with all business segments of the golf courses is highly valuable in a public golf operation for ease of both internal and external reporting, as well as providing a better service and understanding of the customer. A POS system must allow for integration with tee sheets, on-line and smart phone application tee-time reservations, and also allow each course to actively capture golfer s information for marketing and advertising purposes. There are several high quality companies producing golf-specific POS systems. The plan recommends staff review options and demonstrations before choosing a new POS system and implements the best system prior to the 2013 golf season. Golfers, especially when traveling, are using the Internet to locate places to play and find promotions and discounts. Staff recommends a new website be created and include the ability to book and sell tee-times and merchandise and advertise specials on-line. The best and most active websites are constantly updated with new promotions and news, therefore, a schedule of weekly updates and staff responsibilities for updating should be developed and implemented by the Manager of Golf Operations. The site should also include a process to sign up for an member program (eclub), include video tours, virtual maps and directions to each course, as well as scorecards, current rates and operating hours, facilities and amenities offered, and calendars of tournaments and other upcoming events. Website Updates The current website for the golf courses is offered on the City of Idaho Falls and Division of Parks and Recreation home pages. The site is very basic and not as well organized or complete as other competitive public golf courses Memorial Drive, Idaho Falls

36 IDAHO FALLS DIVISION OF PARKS AND RECREATION Social Media The Idaho Falls golf system is currently not actively using social media (Facebook, Twitter, YouTube, etc.). In order to successfully market and advertise the courses, lessons, driving ranges, tournaments and special promotions, the golf courses must reach potential golf customers on the Internet, including using social media where a large portion of the public receive their news about programs and facilities they friend or like on Facebook or Twitter. Public golf course social media pages have become common in golf course marketing with mixed results. This form of marketing requires effort to continuously post new items and stay current and up to date. Social media works best when posts are about what is going on at the facilities, such as tournaments, news events, who won tournaments, who got a hole-in-one, and when on-line competitions are created to draw interest. Staff recommends creating a Facebook account and allow designated staff access for weekly and periodic updates that correspond with marketing and advertising efforts being developed and implemented by the Manager of Golf Operations. Marketing & Advertising Plan An effective and comprehensive marketing and advertising plan must incorporate research, planning, strategy, market identification, budget, advertising, a timetable and follow-up. In addition, any plan should be designed to help expand and reach targets that are not presently using or familiar with the golf courses as well as increasing repeat play for golfers already using the courses. Currently, the city has no designated marketing and advertising plan or budget for the three golf courses. The NGF recommends marketing and advertising budgets for public golf courses of at least 1-2% of total gross revenues. The proposed budget for marketing and advertising for 2013 has been placed at $15,000 (1%) for all three courses. Overall, the City should make a commitment to enhanced marketing and advertising efforts for the system and strive for balanced use of the funds as follows: 30% for Internet (web) and other electronic marketing and advertising 40% for printed materials and print advertising 30% for other initiatives (promotions, tie-ins, television and radio spots). 34

37 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Marketing databases are essential in today s golf marketplace as a means of staying in touch with and increasing the customer base. marketing, with the exception of word-of-mouth and free advertising, is the most cost-effective advertising possible. campaigns and notices, for example, are an excellent customer service and communication tool. marketing also lets each course send a Thank You! to customers after their round of golf. Courses can offer a comeback promotion, ask that they fill out a survey, or simply thank them for coming. The marketing system can be set up to guard against sending thank you s to customers that played within seven (7) days before or have a tee time seven (7) days after to protect against sending too many s to your regular patrons. One example of marketing is the "Happy Birthday" and promotional offer to encourage golfers to spend their special day out on the links. Through , golf staff can send an offer coupon, set an expiration date and choose when to send the promotion that caters to those customers with off-season birth dates. Tell customers that "We Miss You!" If a golfer hasn't visited your facility in 'X' number of days, an automatic is sent with an offer of your choosing encouraging their return. Sending out We Miss You messages is one of the top money-making capabilities in an marketing system Memorial Drive, Idaho Falls

38 IDAHO FALLS DIVISION OF PARKS AND RECREATION Growing The Customer Database In order for marketing to become effective, staffed must be trained on how best to grow the customer database. This is best done through an established eclub membership which entitles members who provide addresses access to specials, promotions, giveaways and course news. The three golf courses, under the direction of the Manager of Golf Operations, should create a formal program to expand and update the current database of approximately 1,000 s and integrate them with the new POS system. Staff should be rewarded through incentives, whether in the form of a bonus or giveaway contest, to whoever collects the most addresses in a certain week. Collecting s can be done in variety of ways, including confirming tee time reservations via and through the POS system. Staff should also ask for the golfers address when checking in walk-in reservations or by using a sign-in sheet to collect at a minimum first name, last name, and address. Using event and tournament raffles, cart flyers, invite-a-friend, birthday club and first tee promotions are other ways to increase the database. Basic Marketing Strategy As noted previously, 60% of the golfers who use the three courses are resident and non-resident season pass holders and 40% are resident and nonresident green fee players. A basic framework for a marketing strategy should concentrate efforts on increasing resident and non-resident green fee players as well as visitors to the region and other first time golfers. The strategy should also include a system-wide approach that promotes all the facilities under a unified brand and logo, linking the facilities together in a unified marketing strategy, focusing on variety and something for everyone as well as an individual facility approach that promotes the unique characteristics of each golf course. The strategy should also highlight the season pass as one of the best bargains in the country, whereas for less than $600 per year, a golfer can play unlimited golf at all three courses. Efforts to enhance golf activity at the three facilities should include a new website and golfspecific use of social media like Facebook, programs, printed promotions and advertisements, billboards, advertising free clinics and lessons, leagues, programs and improved signage. PINECREST GOLF COURSE 36

39 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Marketing & Advertising Recommendations 1. Create a new brand that emphasizes the entire golf system and update each individual facility s brand. This should be combined with all materials that are geared towards creating and conveying a brand image as a high quality system that can serve all of a golfer s needs, including practice amenities, lessons and programming, club fitting, high quality food service, meetings, banquets, etc. 2. Update the billboards at Pinecrest and investigate installing billboards at Sand Creek and Sage Lakes and change out messages four (4) times a year based on significant promotions including Christmas sales, Father s Day specials, season pass sales, driving range deals, free clinics and lesson packages. 3. Continue advertising and promoting demonstration days with leading golf vendors at different courses throughout the season. Research providing golf video games and simulators and promotional events or indoor tournaments during winter months. 4. Create a new library of photography and video for use on the new website and promotions including all aspects of the facilities, pictures and video of lessons, maintenance staff, wildlife, the clubhouse and special event areas. 5. Promote and advertise discounts for special tee times, retail shop sales, food and beverages, lessons, driving range deals as well as offering active military and disabled veterans rebates. 6. Develop high quality, professionally produced rack brochures as a fold-out piece with Golf in the upper 1/3 of the front page. There should be an enhanced commitment by staff to distribute this piece in as many area visitor center locations as possible, including hotels, tourist attractions and restaurants. 7. Offer reserved parking spot incentive for all three courses through a competitive customer service process or collection effort. 8. Develop press kit, articles and use other nonpaid promotional efforts to get articles written and advertisements placed in local, regional, and national publications. 9. Golf staff needs to be more aggressive in direct marketing to tournament and outing prospects to bring in a larger share of that business. Keys to marketing in this segment include some direct contact selling, as well as actively seeking groups, charities and corporations that have hosted tournaments or parties in the past. 10. The signage and way finding for the golf courses should be improved and involve both general information signage and directional signage. The signage should include the system wide branding facility logos and make locations of each golf course as clear as possible and note that each golf course is open to the public Memorial Drive, Idaho Falls

40 IDAHO FALLS DIVISION OF PARKS AND RECREATION 11. Develop and implement a 52-week marketing plan where staff promotes season pass drives, holiday specials, last minute tee-times, new products and equipment and other specials through , website and text messaging, through Facebook and by concentrating on one communication per week to customers, including news over the winter months. 14. Continue golf scorecard advertising agreement for printing of scorecards which includes approximately 60,000 cards per year from at no cost which gives Burco the right to solicit advertisement revenues on the cards. 12. Continue to place nice color advertisements with high quality photos of golf courses in seasonal division and regional publications, but add some type of tracking mechanism to gauge effectiveness. Common ideas for tracking include mention this ad specials and/or special offers that appear only in the advertisement. 13. Complete Tee Marker Sponsorship Program with professional service contract to complete remaining open markers for years , enter into new contract for advertisements from and include new golf cart advertisement program. 38

41 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Customer Service Quality customer service is the best marketing tool possible as retaining current customers is far easier than creating new ones. The old axiom - a person having a poor experience will tell ten friends is largely true, making proper training of personnel in customer service essential. Golf consumers have developed certain expectations about the package of amenities they expect at public golf courses. These expectations extend to both the physical attributes (maintenance) of a facility as well as the level of customer service provided. Basic service expectations from golf consumers at quality public golf courses include the following: Availability of and accommodation for booking tee-times Ease of parking Friendly and courteous staff at check-in counter Retail Pro shop stocked with appropriate basic items (balls, tees, gloves, umbrellas, etc.) Ability to conveniently consume snacks/ beverages after 9th hole (the turn ) and 18th hole (the 19th hole) Pro shop open when round complete Assistance with golf bag after the round CUSTOMER SERVICE RECOMMENDATIONS 1. In order to provide excellent and consistent customer service, the City of Idaho Falls golf system needs to develop training programs and set clear expectations for staff. Regular evaluation of staff and a yearly survey of golfers would also allow the administration to better measure the level of customer service excellence. 2. Another recommendation for improved customer service is to implement and require staff uniforms and name tags at each facility so staff can be easily identified and able to address patron issues. Merchandise, product understanding and assistance Assistance with golf bag drop Carts cleaned and ready for round Courteous starters who are attentive to golfer needs Management/staff attention to pace-of-play Courteous ranger moving play along Beverage cart service On-course restroom / drinking stations Memorial Drive, Idaho Falls

42 IDAHO FALLS DIVISION OF PARKS AND RECREATION operations, equipment & maintenance schedules Hours Of Operation Current hours of operations at all three golf courses are as follows: Clubhouse - 6:00 a.m. to dark Pro Shop - 6:00 a.m. to sundown Driving Ranges - Time posted at Sand Creek and Sage Lakes Pro Shop Café Hours - 7:00 a.m. to 9:00 p.m. Weekdays 6:00 a.m. to 8:00 p.m. Saturdays, Sundays & Holidays 12:00 noon to 7:00 p.m. - Pinecrest Refreshment Stand Winter Rotation - Pending weather conditions, a winter rotation schedule is implemented where all three courses alternate openings on a weekly and weekend basis. Pace Of Play The survey completed by more than 200 golfers suggested that pace of play could be a concern for golfers, especially at Sand Creek. Similar to Pinecrest s efforts, a pace of play policy should be established and advertised at all three golf courses. Tracking pace of play should also be conducted by utilizing a starter that will record the start time of every group, thus records can be established to determine the actual pace of play as the pace for 18 holes should need exceed four and half hours. In addition, pin placement, use of appropriate tees should be monitored and during weekends and busy days, marshals or rangers should be used to speed pace of play. Municipal Equipment Replacement Fund (MERF) The Idaho Falls Golf system requires a full fleet of golf course maintenance equipment to provide proper course conditions. With more than 100 large pieces of equipment in use at the three golf courses, the City has utilized a system of ownership of equipment provided through the Municipal Equipment Replacement Fund (MERF). The MERF was established 40+ years ago in an effort to insure that each city division would have funds available to retain and replace existing equipment as needed. Maintenance, depreciation, replacement and fuel use for equipment are determined by a formula, which the department pays on a monthly basis. Prior to MERF, each department would have to budget annually for replacement equipment as a capital expenditure and compete with other divisions for limited equipment funds. Thanks to the MERF fund, the golf courses have excellent equipment and will be receiving over $220,000 in replacement equipment in For efficiency purposes, the three golf course maintenance departments, including the City Parks Department, share a variety of equipment including a water injection aerifier, greens and fairway aerifiers, sweepers, top dressers, separatorshredder, as well as dump trucks, trailers, and backhoes. In addition, equipment that is not used on a regular basis is rented from the City Garage. 40

43 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Maintenance Schedule Greens, Tees, Roughs Overall maintenance of the golf courses includes maintaining the comprehensive and large scale irrigation systems. There are thousands of sprinklers heads, hundreds of electric and manual valves, and miles of irrigation piping. Maintenance also includes changing holes seven days a week, mowing greens six to seven days a week, mowing tees aprons and fairway three days a week, mowing roughs five days a week, and mowing greens and tee bunkers twice a week. The driving ranges are also mowed once a week. Greens speeds average 7.5 to 8.5 for daily play and increased slightly for tournament play. Greens have a cutting height from 5/32 to 9/64 and vertical mowing is also done up to twice (2) a month to remove thatch and increase green speeds. Depending on turf health, greens are aerified once or twice a year. Tees and fairways are mowed on Mondays, Wednesdays, and Fridays during the growing season at a height of ½ to 5/8. Tees and fairways are also aerified once a year and divots are seeded and top dressed as needed. Restrooms, clubhouse areas, and parking lots are also maintained on a daily basis. Fertilizers and chemical applications are also used on fairways, roughs, and tees are treated with herbicide twice a year for broadleaf weeds. Greens are fertilized every three weeks. Tees are fertilized every eight weeks. Fairways and roughs are fertilized twice a year. Fungicides for turf disease are applied in the spring and the fall with applications over the winter depending on the conditions. Ponds on the golf course are also treated weekly with concentrated algae eating bacteria which are safe for fish birds and other aquatic life. In addition to routine maintenance, staff also maintains 1,000s of trees, flower beds and planters, multiple buildings and restrooms, pump stations and maintenance facilities. Staff also perform routine maintenance on small equipment, repair fencing and have done large scale reconstruction of new tee boxes, planted nurseries, constructed cart paths, laid foundations, reinforced lake banks, and built retaining walls. In conclusion, the maintenance staff is always busy with jobs on the golf course. Trimming work is done as needed including signs, trees, areas in play, and around all the facilities on the course. Landscaped areas including flower beds are maintained as needed. Mowing equipment is adjusted daily before any use and greased as needed. Large trash cans and ball washers are maintained weekly and the club washing stand is maintained daily Memorial Drive, Idaho Falls

44 IDAHO FALLS DIVISION OF PARKS AND RECREATION USGA Turf Advisory Service The City of Idaho Falls golf courses contract with the United State Golf Association (USGA) Turf Advisory Service (TAS) who provides an unbiased detailed review and report of the golf course maintenance operations each year. USGA provides a series of recommendations and serves as an important resource for discussing best management practices. USGA has assisted the City with recovering greens damaged by snow mold and provided advice on a myriad of problems with turf grass maintenance. USGA inspections show that thatch and organic matter is starting to be a concern on fairways, as it is now about twice the amount that would be recommended. Collar dams around the edges of many putting greens are prohibiting surface water (melting snow, in particular) from draining off the greens. As shown here at No. 9 at Pinecrest these collar dams have become sizable. Repairing these areas would be a good fall project. It is recommended to utilize a sod cutter to remove sod, adjust subgrade, and reinstall the sod. Snow Mold Damage at Sage Lakes before and after USGA assistance,

45 GOLF OPERATIONS FIVE-YEAR BUSINESS PLAN Conservation, Environmental & Sustainability Efforts Conservation, sustainability and environmental efforts are an important part of a professionally managed golf course. Conserving precious natural resources, reducing waste and using smart energy options helps ensure profitability and serves the best interest of the community and the environment. In addition to generally recognized sustainability benefits and cost savings, customers appreciate conservation efforts and tend to increase their loyalty and appreciate the enhanced image and reputation such practices brings to any golf facility. In the golf industry, there are several key areas related to conservation and sustainability efforts including efficient water and energy usage, pollution prevention, water quality protection, wildlife and habitat management, and chemical use reduction and safety Memorial Drive, Idaho Falls

46 IDAHO FALLS DIVISION OF PARKS AND RECREATION Operations Recommendations 1. Assign a designated golf maintenance staff member as one primary point of contact for each golf facility during all hours of operations and assure communication contacts and channels are clear and open. 2. Investigate and implement a customer service phone reservation system to answer phones 24/7 in order to book tee times and address emergencies at all hours. 3. The golf courses are currently operating off an outdated operational procedures manual that needs to be updated by staff and the Golf Advisory Board. Include review of rain out policy and implement sand closure due to high winds at Sand Creek. 4. Complete feasibility study for conversion of Pinecrest golf course from City water system to alternate irrigation source. 5. A new turf nursery and location should be built at Pinecrest Golf Course and a golf architect should be hired to assist with arbor care recommendations to increase playability. 6. Superintendents and professionals should work with the Division of Parks and Recreation to create a volunteer program at each golf course. 7. Superintendents should collaborate on yearly large orders for irrigation supplies and continue to work together on bulk purchases for fertilizers and pesticides and other needed supplies. 8. Continue all MERF equipment repairs by City garage with superintendents reviewing all repair costs for all equipment and continue to oversee daily maintenance of the fleet. Small turf equipment (non MERF) should be maintained by the golf course staff when possible such as weed eaters, hand mowers, chainsaws, etc. 9. Complete an energy audit at all facilities and research alternative energy projects including solar lighting and heating, recycling and waste management options, composting alternatives, water quality protection, Integrated Pest Management (IPM), erosion control and management of waste water. 10. Join the Audubon Cooperative Sanctuary Program for golf courses that provides education and certification programs to help golf courses protect the environment and preserve natural resources. 44

47 Conclusion The recommendations contained in this five-year business plan are generally centered on increasing revenues, and improving customer service. The goal was to create a comprehensive plan for future operations, maintenance and capital improvements. The golf courses are in overall good condition and are well-located facilities that possess excellent characteristics and knowledgeable and experienced staff, and thus have the capacity to improve on recent performance. There are four key issues that have led to economic hardship within the golf system and these include: (1) revenue centers being outsourced or subcontracted, (2) a fee structure not conducive to profitability, (3) inadequate marketing and advertising, and (4) extremely unfavorable external factors (weather, economy, etc.). Implementing the recommendations contained within this business plan will improve the business practices of the golf courses and should have an immediate and positive impact on the economic performance of the City s golf system. Some of the recommendations made in this plan require the City to make investments in the golf properties, and much of the recommended capital investment involves improving gathering capacities. The plan recommends improving facility conditions to attract new business and improve maintenance and should help to position the golf courses as high quality public golf facilities that are desirable to a wide range of golfing customers, including tournament and outing customers. Overall, the basic oversight and structure of the golf system must change to become more entrepreneurial.

48 IDAHO FALLS DIVISION OF PARKS & RECREATION Memorial Drive, Idaho Falls 83405