City Council
February 15, 2022
Approval of Scope of Services and
Solicitation Process for Management of
Bennett Valley Golf Course Enterprise
1 Jason Nutt, Assistant City Manager
Jen Santos, Parks Deputy Director
2 • CITY COUNCIL BVGC AD HOC COMMITTEE
• SAVE THE BENNETT VALLEY GOLF COURSE GROUP
• NATIONAL GOLF FOUNDATION
BENNETT VALLEY GOLF COURSE
TEAM
3 • Scope of Services
• Single operator for management and maintenance of
Golf Course, Pro Shop, Restaurant/Banquets (events)
• Review Selection Committee
• Delegate Authority to allow further refinement of Scope of Services
• Time is of the Essence
BENNETT VALLEY GOLF COURSE
APPROVALS
4 • Section 1: Purpose of BVGC Study by NGF
• Section 2: Overview of BVGC
• Section 3: Condition of Property
• Section 4: External Factors
• Section 5: Summary of Recommendations
• Section 6: Structure Considerations
• Section 7: Financial Projections
• Schedule - Funding Next Steps - Recommendation
BENNETT VALLEY GOLF COURSE
OVERVIEW
Prepared for
Presented by
Richard Singer & Jeff Danner
National Golf Foundation Consulting, Inc.
(561) 354-1642 [email protected]
BENNETT VALLEY
GOLF COURSE
National Golf Foundation - KEEPING GOLF BUSINESSES AHEAD OF THE GAME SINCE 1936 www.NGF.org
6 Section 1
Purpose of Study and NGF Activities
7 Purpose of BVGC Study
➢ Review
▪ Operation and facility condition
▪ Revenue generated
▪ Expenses required to properly operate and
maintain the facility
➢ Provide
▪ Long-term plan to improve the physical condition
of the golf course
▪ Recommendations to improve operations and
economics of the facility
▪ Plan for pending Golf Pro retirement
8 NGF Team Activities
➢ Site visits to BVGC in Nov. & Dec. 2021
➢ Review of documents, contracts, financial
statements and City records
➢ Meetings with golf staff and City officials
➢ Meetings with “Save Bennet Valley” group
➢ Visits to competing golf facilities in
the Santa Rosa area
➢ Review of demographic, economic
and other local area market data
9 Section 2
Overview of Bennett Valley GC
10 Bennett Valley Golf Course
➢ Popular 18-hole golf facility
➢ Amenities consistent with
economic success in public golf
➢ Extensive event center &
restaurant operation
➢ City-owned but operated via golf pro
concession with uncertain terms
➢ Event center also with separate concession
(vacant in 2021-22)
11 ➢ Operations
▪ Fully public course with mix of daily fee players
and members.
▪ Event Center with full-service restaurant and
banquets– strong revenue opportunity.
▪ Operated via two separate concessions (golf pro
and restaurant) each own revenue and are
responsible for expenses.
▪ BVGC is very active in leagues that provide strong
play and revenue.
▪ Large proportion of activity and revenue
derived from Santa Rosa City residents.
Bennett Valley GC
12 ➢ Facility Economics
▪ Total golf pro revenue was $2.5 million in 2021 and
$2.0 million in 2020 after several years (2017-2019) at +/-$1.5 million (strong growth in 2020 and 2021).
▪ Event center revenue exceeded $1.7 million in each
year from 2017-2019 – but was closed due to Covid-
19 in March 2020 and has not re-opened.
▪ BVGC is an Enterprise Fund. City’s economic interest
in golf is the collection of concession payments from
vendors – about $500,000 in 2021.
▪ City expenses include equipment, site maintenance
and the payment of over $470,000 per
year in debt service.
Bennett Valley GC
13 Section 3
Condition of Property Report
14 General Findings on Condition
➢ BVGC is not in its most ideal condition.
➢ Most golf course features are well passed
their expected lifecycle.
➢ The golf course suffers from severe
drainage issues.
➢ The irrigation system is +/-50 years old and
not efficient.
➢ Most corridors are more compressed than
ideal, and safety is a concern.
15 General Findings on Condition
➢ Irrigation system and Pump Station
location needs review.
➢ Water usage and distribution not ideal.
➢ Maintenance budget is not well tracked or
understood.
➢ Maintenance facility and equipment are
due for improvements.
16 Capital Investment (High Priority)
Projects Description of Work Estimated Cost
Irrigation Complete system and pump station replacement. $3,250,000 Drainage Subsurface conveyance pipe, catch basins. $1,103,000 Turf Reduction (by 30%) Convert excessive maintained turf to native. $243,750 Lake Construction Liner Installation. $88,500
Bioswale Creation Convert low areas to bioswales for conveyance. $174,240 Grading Lake Excavation, Earthwork, Fine Shaping $297,500 Trees Remove 50-100 dead trees/stumps. $50,000
Maintenance Facility In-house clean up only. $50,000
Cart Paths & Bridges Basic path repairs + Review structural integrity of bridges + repair. $750,000 New Turf Requirements For tees, bunkers, drainage and Irrigation Disturbance only. $237,250 Professional Services Engineering, Golf Course Architecture, Agronomy $305,000 Total All items listed above. $6,549,240
17 Capital Investment (optional items)
Projects Description of Work Estimated Cost
Greens Renovate greens profiles and drainage. $638,000
Tees Renovate tees, enlarge and add forward tees. $271,000 Bunkers Renovate bunkers with minimal additions. $370,000 Range Netting, poles, shaping, grassing. $1,326,500
Maintenance Facility New facility $1,200,000
New Turf Requirements New turfgrass for golf course. $2,831,400 Professional Services Engineering, golf course architecture, agronomy $410,000 Total All items listed above. $7,046,900
Notes: Probable Construction Cost prepared by the Golf Course Architect shall represent the Golf Course Architect’s best judgment as a design professional of the probable construction cost for the golf course work. It is recognized, however, that neither the Golf Course Architect nor the Owner has control over the cost of labor, materials, equipment or course accessories, over any contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Golf Course Architect does not warrant or represent that bids or negotiated prices will not vary from any project budget which may have been proposed, established or approved by the Owner or from any Statement of Probable Construction Cost or other cost estimate or evaluation prepared by the Golf Course Architect.
18 Property Upgrade Considerations
➢ A Comprehensive Master Plan with phasing and
community engagement, by an ASGCA Golf
Course Architect is strongly recommended.
➢ At minimum, safety, irrigation and drainage issues
should be rectified as soon as possible.
➢ All items are passed their expected lifecycle and
will only continue to decline.
➢ Phasing is possible & will require more detailed
investigation and study.
19 Section 4
External Factors
20 External Factors Affecting Golf Ops
➢ Recent trends support increased golf participation.
➢ Golf experiencing “mini boom” in wake of Covid-19.
➢ Lot of new participants both young and old will
sustain demand into the future.
➢ Golf offers positive outdoor experience and
promotes healthy lifestyle.
➢ Sonoma County demographics consistent with
strong golf demand + 10MM annual visitors will boost
demand for golf activity.
21 External Factors Affecting Golf Ops
➢ Local Santa Rosa area golf supply/demand
balance generally favorable for golf courses +
visitor support helps support operations.
➢ BVGC compares well to its most immediate
competition – especially with improved drainage
and irrigation.
➢ BVGC is clear market leader in providing good
quality public golf in Santa Rosa.
➢ There has been a real reduction in golf courses in
the local area that has helped BVGC.
22 Section 5
Summary of Recommendations
23 NGF Recommendations
Physical Enhancements & Planning
➢ Prepare LT master plan of physical improvements.
➢ Commit to high priority physical improvements:
▪ Irrigation (new system + turf reductions)
▪ Drainage (including new grading, lake/creek &
Bioswale improvements)
▪ Ancillary facilities (new maintenance
facility, cart paths, bridges)
24 NGF Recommendations
New Operations Plan
➢ Put new plan in place by July 1, 2022
➢ Use a single operator for pro shop, maintenance
and restaurant
➢ Two Options Considered:
▪ Full Site Lease – lease in exchange for capital
investment (if a partner can be found)
▪ Management Contract – Hire expertise to manage
the property to City-established specifications
25 NGF Recommendations
Modify Event Center / Restaurant
➢ Create a true “golf clubhouse” environment
➢ Modify space to incorporate a snack bar or “19th
hole” concept
➢ Include a casual (“sports bar”) atmosphere
➢ Improve outside seating and service spaces
(preferred by golfers, especially younger golfers)
➢ Changes are more operational and should be
completed with minimal investment
26 NGF Recommendations
Marketing and Promotions
➢ Increase marketing focus on daily fee play, tourists, tournaments and coordination with Sonoma hotels
➢ Enhance social media presence
➢ Maximize use of the GolfLinks POS
system to better utilize existing modules
for marketing and customer tracking
➢ Improve the BVGC website
27 NGF Recommendations
Pricing – After Upgrade
➢ Pricing
▪ Continue current greens fee policy
▪ Be ready to increase peak green +
cart fee to around $70-$75
▪ Implement a dynamic pricing
model subject to policy limits
28 NGF Recommendations
Other Operations Issues
➢ Enhance beginner programming
➢ Seek greater participation from “non-
traditional” segments
➢ Provide a good supply of better-quality
rental clubs and make this availability
known to potential customers
29 Section 6
Structure Considerations
30 Structure Considerations
➢ Funding facility improvements is key determinant:
City Funding
Management
Contract
Private Funding
BVGC Lease
31 Operational Consideration #1
➢ City Funded Improvements
➢ Hire professional golf management contractor
Pros:
• Easy to implement
• Allows time for City to
plan properly
• Professional operation
• Retain private-sector
labor
Cons:
• City must fund
enhancements
• Fixed management fee
• Ongoing capital
requirements
• Match City goals?
32 Operational Consideration #2
➢ Private sector funding of improvements
➢ Lease BVGC to private operator
Pros:
• Full privatization
• Private funding of
improvements
• Reduce City risk in BVGC
• Professional operation
Cons:
• Hard to find willing partner
• Lease payment unlikely to
cover golf bond payments
• Lengthy process to
implement
33 Section 7
Financial Projections
34 Financial Projections
BVGC Ad Hoc Committee recommend Option 1:
➢ Total gross BVGC revenue from all sources (golf + restaurant) can reach $4.5 million per year with course improvements. ➢ Total facility operating expenses should stay between $3.5 to $4.0 million, and include all aspects of golf facility operation (labor, materials, carts, equipment, maintenance and a
management fee)
➢ Thus BVGC should be able to contribute at least $500,000 or (bond repayment )per year towards capital cost reduction. ➢ Golf facility business performance is not certain – unforeseen weather or economic circumstances add risk to this cash flow. 35 NGF Summary Conclusions
➢Great amenity to the City and its residents – what do you want it to be?
➢BVGC needs new investment in property condition
➢City needs to be ready with new operating plan by July 1, 2022
➢Recognize golf participation is aging and more needs to be done to attract younger golfers to BVGC
➢There is opportunity for economic growth in the daily fee market through attraction of tourists and visitors
➢With enhancements, BVGC can compete at
highest level of market
36 • Time is of the Essence
• Release of RFP - March 1, 2022
• Proposals Due - March 24, 2022
• Council Review and Approval - June 7, 2022
• Management Plan implemented - June 27, 2022
• Offering Golf Tee times - July 1, 2022, (or within 3 - 5 days) • Food and beverage service to follow pending permits
• Maintenance to begin July 1, 2022
BENNETT VALLEY GOLF COURSE
RFP AND OPERATIONAL SCHEDULE
37 Option 1 for Management Operation: Fundamental change in operation of the BVGC Enterprise
• Current Review of BVGC Enterprise Funds available at
Council – Spring 2022
• Full analysis and options for funding necessary to support transition to management agreement at Council –
Spring 2022
• Review of capital improvements needed and funding
options at Council – Spring 2022
• Request to fund exact annual amount necessary to
support the City’s Financial obligations under the
Management Agreement including the Management
Fee at Council – June 7, 2022
FUNDING NEXT STEPS
38 It is recommended by the Bennett Valley Golf Course Ad Hoc Committee, and the Transportation and Public Works
Department that the Council, by motion: 1) approve a
scope of work for management of Bennett Valley Golf
Course; and 2) authorize release of a Request for Proposals (RFP) to solicit for a single operator management
organization to operate and maintain the Bennett Valley Golf Course and restaurant; and 3) approve the review
committee composition; and 4) delegate authority to the City Manager or designee to further modify the scope of work and/or RFP process and composition of the review
committee provided such changes are consistent with or
do not otherwise conflict with Council direction.
RECOMMENDATION