F
iscal Year 2022-2023 BUSINESS PLAN
P
repared for:
City of Santa Rosa, CA
S
ubmitted by:
A
ugust 28, 2022
Touchstone Golf
1052 Overlook Road
Berkeley, CA 94708
ATTACHMENT 1
2 Table of Contents
Business Plan Global Objective (Exhibit C from Management Agreement) . . . 3 Analysis of Competitive Golf Courses . . . . . . . 3 Key Business Drivers . . . . . . . . . 4
I. Improve Course Playing Conditions (efficiently) . . . . . 4 II. Define & Target Specific Customer Segments . . . . . 5 III. Create Destination Dining & Events . . . . . . 6 IV. Install Customer Service Program . . . . . . 7 V. Deploy Comprehensive Sales & Marketing Culture. . . . . 7 VI. Enhance Practice Facility & Golf Instruction . . . . . 8 Exhibits:
A. 2022 Planned Community Event and Tournaments . . . 10 B. Proposed 2023 Fee Schedule . . . . . 11
C. Proposed Capital Improvements and Projects . . . 12
D. Pace of Play Program . . . . . . 13
E. FY 2022 – 2023 Budget Summary . . . . . 14
F. Operating Plan (Exhibit D from Management Agreement) . . 15
3 Business Plan Global Objective (Exhibit C from Management Agreement)
Global Objective: Restore The Bennett Valley Golf Brand
The Bennett Valley Golf brand has suffered over recent years as deteriorating course conditions, lack of community engagement , a closed restaurant and a void in programming has marginalized the brand and weakened the golf course’s competitive position in a crowded public golf marketplace. Under Touchstone management, the Bennett Valley Golf brand will be developed and restored to embrace:
1) Value. Consistent, high quality golf course, restaurant and facility conditions that deliver exceptional value at affordable prices. Based on our assessment there appears to be an opportunity to introduce a non-resident rate to capture incremental revenue while keeping resident rates competitive. 2) Community. A widely known reputation as "the center of the community" and the "place to play" spread among a broad array of programming and activities for all. 3) Service. "Above and beyond" service creating a loyal base of golfers, guests and advocates.
Analysis of Competitive Golf Courses
We performed the following competitive market assessment for courses in the area.
Proposed Fee Schedule
Bennett Valley Golf Course (“BVGC”) offers an experience consistent with Windsor Golf Club and Foxtail North Golf Course, yet the rates are significantly less. Furthermore, those courses have a higher fee structure for non-resident golfers which allows them to offer special lower fees to residents. Provided in Exhibit B is the proposed fee structure for 2023 . While the recommended fees are higher residents and visiting golfers will continue to receive a better value than the competitors are offering.
Competitive Set Bennett Valley Valley of the Moon
(Oakmont)
Sugar Loaf
(Oakmont) Windsor Foxtail- North Foxtail- South Fairgrounds City Santa Rosa Santa Rosa Santa Rosa Windsor Rohnert Park Rohnert Park Santa Rosa Distance from Your Course 0 8.6 Miles 8.6 Miles 12 miles 8.9 Miles 8.9 Miles 2.8 Miles Type of Course Municipal-Public Daily Fee ("DF") Executive Course Municipal-Public Municipal-Public Municipal-Public Exec/Practice Annual Rounds
Number of Holes 18 18 18 (par 63) 18 18 18 9
Course Yardage 6527 6379 4293 6650 6851 6492 1500
18 Hole Weekend $45 (+$2 CapEx Fee) $59 $44 $66 $23
18 Hole Weekend with Cart $61 (+$2 CapEx Fee) $73 $58 $84 / $74 Resident $85 / $65 Resident $62 / $50 Resident N/A 18 hole Weekday $31 (+$2 CapEx Fee) $39 $29 $49 / $39 Resident $21 18 hole Weekday with Cart $45 (+$2 CapEx Fee) $53 $43 $67 / $57 Resident $65 / $51 Resident $54 / $44 Resident $21 Senior Weekday $26 (+$2 CapEx Fee) $29 N/A $39 $51 $44 $16 18 Hole Cart Fee (per rider) $16 $14 $14 $18/$14/$10 Rates include carts. Rates include carts $4 (Push cart) Annual Fee Membership Yes Yes Yes Yes Yes Yes
Players Club - Discounted Fees Discontinued Yes Yes
Primary Strengths
High quality clubhouse
with restaurant,
banquet, patio
Popular wedding
venue with ceremony
site and panoramic
views
Executive length is
only 4,293 yards long
Has played host to six
Nike Tour Events.
Good layout and
conditions
Low Fees - A lot of
discounting
Short course for
beginners and seniors
Quality greens Improving course
conditions
Great for seniors and
beginners
Very good course
conditions
Low priced wedding
packages
Easy greens to putt Inexpensive
Inexpensive Restaurant Inexxpensive Restaurant
Primary Weaknesses
Course does not drain
well in rainy season.
Dry spots in summer.
Located in the
retirement community of
Oakmont
Most golfers are looking
for a regulation length
Slow pace of play First tee is a long drive
from the clubhouse
Poor course conditions Poor course conditions
Restaurant and event
space are closed
Distant location Uninteresting layout Marginal service Limited F&B Terrible drainage during the rainy season
Uninteresting layout
Slow pace of play Limited flight range balls Inconvenient location No event space 4 Key Business Drivers
Our plan focuses on six Key Business Drivers. First and foremost, we need to improve the golf course playing conditions. On a parallel track we plan to improve the marketing to specific customer segments, create a restaurant brand that becomes a destination for dining and events, enhance the customer service, implement our sales and marketing program, and enhance the practice facilities and golf instruction.
I. Key Business Driver: Improve Golf Course Playing Conditions
Strategy: Working within the budget and equipment available, make an immediate and lasting impact on playing conditions of the golf course. Deploy agronomic practices and procedures that will create noticeably improved golf course conditions.
Tactics:
1) Comprehensive assessment of the golf course, establishing a list of priorities and routines. 2) Analysis of all equipment condition, upgrading maintenance of all items to enhance their ability to produce a quality golf course product (e.g., greens mower reel sharpening) 3) Establishment of a year-round maintenance calendar targeting frequencies and standards for all maintenance activities.
4) Significant investment in staff training and task descriptions such that attention to detail is a top priority in day-to-day execution of maintenance efforts. 5) Address “Quick Wins” including but not limited to adding sand to the bunkers, leveling tees, and improved placement of holes on greens.
Example:
Implementation of a Maintenance Checklist with follow-up evaluation is an important tool to be sure that maintenance routines are consistently applied to the golf course. An excerpt of such a checklist used by Touchstone is provided below. This would be customized with feedback from the Superintendent.
Ratings:
G = Good
S=Satisf.
U=Unsatisf.
Practice Timing Rating
Mow greens 7x per week @ .135” to .156”
Mow greens surrounds 1x per week @ 1.25” - 1.5”
Mow tees, collars and approaches 2-3x per week @ .500”
Mow fairways 2-3x per week @ .500”
Mow roughs 1x per week @ 1.25” – 1.5”
Hole rotation: Cups are changed every day.
Greens (May, and September); Tees (Spring and Summer)
Fairways/roughs (Spring and Summer)
Greens: Granular or Foliar Bi-weekly
Fairways and Tees: Granular 6-8 weeks depending on weather conditions.
Roughs: Granular 6-10 weeks depending on weather conditions.
Golf Course Maintenance Evaluation Checklist
Mowing Heights and
Frequencies
Aerification
Fertilization
Applications
Key Business Drivers
Improve Golf Course
Playing Conditions
Define and Target Specific
Customer Segments
Create Destination
Dining & Events
Install Customer
Service Program
Deploy Comprehensive Sales
& Marketing Culture
Enhance Practice Facility
& Golf Instruction
5 Measurement:
1) Feedback from golfers, guests and the community (e.g., through survey system, social media reviews)
2) Increased rounds, revenue and golf course utilization 3) Before and after presentation to the City of Santa Rosa after 1 full year cycle of operations
II. Key Business Driver: Define and Target Specific Customer Segments
Strategy: Identify all existing and potential customer segments of the golf course and restaurant in order to align service offerings and programming for maximum result. Careful observation is required to capitalize on the pandemic demand impact including the latent/returning golfer and new/beginning golfer segments.
Tactics:
1) Segment our customers and potential customers to better define who they are, their wants and needs, then speak to those needs through programming.
2) Set-up point of sale system to uniquely identify all customers in order to capture ongoing utilization of golf, non -golf, food and beverage and other services – this information will serve to tailor communication, offers and benefits at the customer level. 3) Deploy surveys to improve segmentation process by identifying like groups of customers seeking various programs and services. Employ customer engagement program to connect with individual customers and deliver on customer needs and desires.
Example:
The following chart outlines a sample segmentation with programming examples to engage these segments, however it is not intended to identify all segments. Full segmentation will necessitate being on property, collecting survey data, examining point of sale transactional data, and analyzing tee sheet activity.
Customer Segment Programs
Several programs and events are planned over the next 12 months develop loyalty and advocacy with these segments and more. In addition, BVGC is developing a program to improve diversity by connecting with high schools’ students and through Choices, a local organization that assists youths, many of which have been emancipated with transitioning to adulthood. Introducing golf and employment opportunities to all, regardless of age, gender, wea lth or ethnicity is a priority fo r the City and Touchstone Golf . An initial list of Planned Community Event and Tournaments for 2022 is provided in Exhibit A. In addition, there is an Open House tentatively planned for Saturday, September 10th.
6 Measurement:
1) Growth in specific programs and events
2) Participation trends for all programs and events
3) Increased rounds, revenue and utilization of all facilities
III. Key Business Driver: Create Destination Dining & Events
Strategy: Leverage the existing physical space and attributes of the clubhouse to create a sustainable restaurant operation that serves golfers and non -golfers alike. Become the “go to” location for events including weddings, celebrations of life, meetings and similar events.
Tactics:
(1) Define the new Restaurant Brand. A new vision is required to create the excitement, trial, loyalty and advocacy. The restaurant should be the center of the community which brings people together. (2) Hire capable food and beverage leadership and staff that can execute a quality menu offering with a profitable bottom-line.
(3) Address basic deferred maintenance of public spaces in the clubhouse to make the venue attractive and inviting.
(4) Heavily market dining at events at the venue through social media, local advertising and a strong word of mouth atmosphere by executing flawlessly on the initial wave of diners and events held at the facility.
(5) Create organic events and programs including wine tastings, outdoor music, movie nights and similar programming.
Example:
Touchstone operates multiple highly successful 7 -figure revenue destination dining and event centers at its golf courses, including our new Bunkers Tap Room in Golden that compliments The Vista banquet center, Michael’s at Shoreline Golf Course in Mountain View, and our facilities at nearby Presidio in San Francisco.
New Restaurant Brand
In the short term the restaurant will be promoted as the Bennett Valley Grille and Event Center. Underway is the creation of three restaurant concepts with complementary names to be presented for consideration by the City. Each concept will include a theme and corresponding menu.
At Touchstone we have seen a 20+% increase in rounds over prior year. As a company we seek to get ahead of the marketplace and the rapidly changing operating landscape driven in part by the pandemic. We surveyed over 7,000 customers to understand their wants and needs and found that the golfing customer was seeking:
• Opportunities to connect with their friends and family • A golf experience where they can feel comfortable and competent • A sense of belonging to a community
These findings drive us to speak directly to each of our customer segments by addressing their respective wants and needs in a manner that will inspire them to take action and increase their gol f course patronage. 7 Measurement:
(1) Track volume of events held and level of participation of the community. (2) Survey diners regularly on their experience and closely monitor social media reviews such as provided through Yelp.
(3) Secret shop restaurant operations for service gaps and opportunities to improve training and staff development.
IV. Key Business Driver: Install Customer Service Program
Strategy: Change the operating bias of the golf course to prioritize customer service and value guest feedback by deploying multiple methods to gather comments, ratings and evaluations. Demonstrate a commitment to valuing this information by responding to guests in a wide range of mediums including social media, changes to operating processes and programs, and direct engagement.
Tactics:
1) Implement core elements of Touchstone customer service program including FIRST and Take 5 to Shine.
2) Assign management to review all social media commentary and engage in responses and follow up. 3) Implement Players 1
st system to send all golfers a quick and easy survey after each round of golf.
Service Training
The initial training was conducted by Mark Luthman as a part of the employee orientation. Additional training will be conducted with each department featuring “Take 5 to Shine” in September.
Example:
The Players 1
st Survey System is the leading survey platform in the golf course industry. A variety of components are available, but the primary evaluation is a survey sent immediately upon completion of a round of golf. This mobile friendly survey allows for near real time feedback for management’s attention.
8 Measurement:
1) Evaluate survey results - review and act upon feedback 2) Measure trends in social media ratings
3) Measure volume of surveys by type and source
V. Key Business Driver: Deploy Comprehensive Sales & Marketing Culture
Strategy: Introduce Touchstone sales and marketing cultural practices to create an environment where every co-worker is aware of the importance of driving sales to maximize golf course facility utilization.
Tactics:
1) Set up Reserve Customer Relationship Management (CRM) system to track all event prospective and actual sales.
2) Configure POS system to maximize the collection of non-private customer data, interests and unique characteristics.
3) Conduct weekly department head and monthly all co -worker meetings to review property calendar, new programs, importance of full team engagement on marketing and sales.
Sales Effort
Jessica Schroe der was recruited as the Director of Sales and is working with Touchstone’s VP of Sales & Marketing, Ashley Van Dissel and Greg Anderson on a comprehensive plan to market and promote the golf course, restaurant, and event center. They will leverage the tactics notes.
Example:
The Reserve CRM system is an industry leading platform that allows for golf course management to manage contact information for all prospective and actual events. The system facilitates client contact, event planning and pricing, as well as contract fulfillment.
Measurement:
1) Overall sales volume for events
2) Participation rates in all programming
3) Level of community engagement and feedback
VI. Key Business Driver: Enhance Practice Facility & Golf Instruction
Strategy: Improve practice amenities including hitting surfaces, ball quality and other amenities, introducing technology as the budget allows, to create a more welcoming and inclusive golf learning and practice environment. We believe the practice facilities can double their revenue level from roughly $300K today.
9 Tactics:
1) Develop programming to support golf practice facility utilization and teaching programs. 2) Introduce “FLEX” membership to allow for participation in group lesson programs. 3) Upgrade all aspects of the practice facility including ball quality and hitting surfaces.
First Class Experience
The plan is to upgrade the quality of the practice facility experience, including but not limited to the hitting areas, targets, golf balls and instruction to provide a first-class practice and learning experience. As a part of this plan the lesson program will be brought “In- house” meaning the lesson will be taught by employees of the golf course led by C J Snyder, PGA Head Golf Professional. The “Flex” program will be introduced along with Operation 36. A program for Elsie Allen High School and Roseland Public Schools is under development to introduce diverse youth with the game of golf and employment opportunities.
Example:
Touchstone’s recent practice facility improvements and programming focus at DeBell Golf Course in Burbank, California has led to dramatic increases in sales and participations at the golf course’s practice facilities with revenues tracking 30% higher than prior year.
Measurement:
1) Participation in practice facility programming
2) Revenue trends for practice facility
3) Survey and social media results
10 EXHIBIT A
2022 Planed Community Events and Tournaments
11 EXHIBIT B
Proposed 2023 Fee Schedule
Increase
Minutes from Course 12 miles 4.8 Miles 3.8 miles 11 m iles Course Quality and Experience A A B A C C
Weekday Rates
Regul ar Resi dent $33 $37 $ 4 $39 $32 $39 $40
Regul ar - Non Res $33 $37 $4 $49 $46 $39 $49
Seni or (60+) $28 $30 $2 $39 $32 $29 $39
Senior Non Resident $28 $30 $2 $39 $32 $29 $39
Twilight $26 $28 $2 $35 $34 $29 $35
Se nior Twilight $21 $23 $2 $35 $24 $24 $35
Super Twilight $15 $17 $2 $28 $36 $19 $28
Senior Super Twilight $15 $17 $2 $28 $19 $19 $28
Junior $14 $14 $0 $13 $20 $0 $13
9 Hol es $23 $25 $2
Seni or 9 hol es $18 $20 $2
Junior 9 holes $11 $11 $0
Early Bird Back 9 $23 $25 $2
Friday Rates
Regul ar Resi dent $33 $37 $4 $45 $36 $39 $43
Regul ar - Non Res $33 $37 $4 $55 $52 $39 $55
Seni or (60+) $28 $30 $2 $45 $36 $29 $42
Senior Non Resident $28 $30 $2 $45 $36 $29 $42
Twilight $26 $28 $2 $37 $38 $29 $37
Se nior Twilight $15 $17 $2 $37 $26 $24 $37
Super Twilight $15 $17 $2 $29 $30 $19 $29
Senior Super Twilight $15 $17 $2 $29 $21 $19 $29
Junior $14 $14 $0 $13 $20 $0 $13
9 Hol es $23 $25 $2 $13
Seni or 9 Hol es $18 $20 $2
Junior - 9 Holes $11 $13 $2
Early Bird Back 9 $23 $25 $2
Weekend Rates
Regul ar Resi dent $47 $52 $5 $56 $50 $59 $51
Regul ar - Non Res $47 $52 $5 $66 $70 $59 $66
Seni or (60+) N/A N/A N/A $56 $46 $52 $50
Twilight $31 $36 $5 $46 $45 $44 $46
Se nior Twilight $31 $36 $5 $46 $32 $35 $46
Super Twilight $19 $24 $5 $34 $35 $29 $34
Senior Super Twilight $19 $24 $5 $34 $24 $25 $34
Junior $17 $17 $0 $13 $20 $0 $13
Junior - 9 holes $11 $11 $0
Adult Mid Day After 11am $35 $40 $5
Carts
18 Holes $16 $17 $1 $18 $19 $14 $18
Twilight $16 $17 $1 $14 $14 $14 $14
Super Twilight $9 $10 $1 $10 $12 $14 $10
9 Hol e Cart $9 $10 $1
Annual Fee Cart Rate $12 $14 $2
Range
Large $10 $12 $2 $10 $18 $12 $12
Medium $0 $12
Smal l $6 $8 $2 6$ $7 6$ $8 Membership
Monthly Dues $209
Annual Memberships $2,714 $3,228 $2,854
Annual Memberships Couple $3,618
Annual Memberships- Resident $2,443 $2,283
Annual Memberships-Resident Couple $3,256
L im ite d Single $2,350
Li mi ted Si ngl e Resi dent $2,150
Li mi ted Coupl e $3,100 $5,028
Li mi ted Coupl e Resi dent $2,900
Se nior L im ite d- Single $1,070 $1,284 $214
Seni or Li mi ted- Coupl e $1,710 $2,052 $342
Unlim ite d - Single $1,850 $2,220 $370 $3,685 $3,200 $3,588 $4,150 Unlimited- Resident $3,317 $3,000 $3,320
Unlimited - Couple $2,960 $3,552 $592 $4,514 $4,300 $5,388 $5,042 Unlimited Couple (Resident) $4,063 $3,850 $4,034
Other Loyalty Programs
Players Club Yes Yes
Rental Clubs -$
9 Holes 20$ 20$ -$ 30$ 18 Holes 30$ 35$ 5$ 50$ 50$ 1 5$
Competitive Market
Analysis
Bennett
Valley Golf
Course
Bennett
Valley
Proposed
Valley of
The Moon
Rooster
Run Golf
Course
Fox Tail-
North
Windsor
Golf Club
12 EXHIBIT C
In addition, 75 Golf Carts will need to be leased. The current lease expires in October of 2022
Project Description Budget
Pergola Expansion
(Safety)
Extend the covering of the deck on the north side of the event center to provide shade and protect guests from errant golf balls $70,000 Tree Work Ongoing removal of dead trees and stumps, trimming and replanting of tree $30,000
Tee Leveling Level and expand several tees, resod with Bermuda Grass $45,000 Irrigation System
Design
Phase I: Irrigation Design to move the intake from the creek to an irrigation lake. Phase II: Design to replace the entire system. $30,000 Irrigation Lake and
Drainage Design Design of Irrigation Lake and Course Drainage $20,000 Walk-in
Refrigerator Floor
Replacement of walk-in refrigeration floor - Required to open the restaurant $15,000
Kitchen Appliance
Replacement
36" Charbroiler, Gas Connection Kit, Refrigerated Base, Equipment Stand, Reach-in Freezer and contingency -
Required to open the restaurant
$28,000
Kitchen and
Building Repairs
Repairs to the kitchen equipment and building - Required to open the restaurant $20,000
Tableware Plates, Glasses, Flatware, and Serverware for restaurant and banquet events $16,500
Chairs and Tables
for Events 175 Folding Ceremony Chairs and 37 Banquet Tables $20,000 Event Chairs 175 Chiavari Resin Chairs for weddings & events $15,500 Sound System New sound system for restaurant/banquet rooms $8,000 E-Range Software
Upgrade
Current range software is no longer supported - Upgraded to E-Range software $12,000
Point of Sale
System
New computer equipment for point of sale including
installation and training (Winter project) $20,000
Total $350,000
FY 2022 - 2023 Bennett Valley Golf Course Capex & Startup 13 EXHIBIT D
Pace of Play Program
The pace of play program at Bennett Valley Golf Course has been set in place to provide guests with the expectations of playing our golf course in 4 hours, 4 ½ hours after 10:30am.
1. Starting July 11th, we went from 7-minute intervals to 10-minute intervals. This has been well received by our customers.
2. At the beginning of each shift, the current days tee sheets are printed for guest services and Touchstone Golf Foundation Volunteers. The purpose of these sheets is to inform the team when guests will arrive and their starting times.
3. When the players arrive at the first tee the Volunteer welcomes them and reviews the pace of play guidelines along with any updates on course conditions. The pace of play goal shall be 4 hours from open to 10am and 4 ½ hours thereafter.
4. Players are also asked to sign the “Cart Rental Agreement Sheet.” This sheet is signed by the player with cart number and tee time. The Volunteer then uses this sheet as a “starting time sheet” for the players. The starting time of each group is recorded and this information is logged.
5. Following the departure of players from number one tee, we then put into place what we call “The Volunteer Worksheet.” This sheet serves as a constant check for the Volunteer monitoring pace of play. It has information that can be collected from the first tee. Name of group, tee time, actual time off the first tee, # of players, and cart #. Then each hole is listed and gives the amount of time elapsed for each group. Example, players should be through hole #3 in 40 minutes. We use this sheet as a tracker of pace. It enables the Volunteer to identify and act on pace of play issues.
6. We then use the starter or range attendant and the eyes of the golf shop to check turn times on number 9. We can identify the group or cart number and find out actual start times to determine the turn times.
7. With constant monitoring by the Volunteers, friendly feedback to the guests on their pace of play results are reported to the golf shop and management. The golf shop staff and management will assist with any issues that may arise.
8. The Volunteer Worksheet is used to determine the pace of play by time for the day.
The addition of check-point clocks, pace of play cards with rules and advice, using the cart signs to note tee times (making it easier to spot groups that are falling behind), and provide feedback to guests to get them back on pace.
14 EXHIBIT E
FY 2022 – 2023 Budget Summary
BUDGET SUMMARY
OPERATING PERIOD FY 2023 FY 2023
Budget Profoma 23 v PF 23 v PY
REVENUE 3,490,263 3, 557,718 - -1.9% 0.0% Cost Of Sales 351,748 382,604 - -8.1% 0.0% GROSS PROFIT 3,138,515 3,175,114 - -1.2% 0.0% Payroll 1,820,211 1,772,773 - 2.7% 0.0% Other Expenses 827,047 772,040 - 7.1% 0.0% TOTAL OPERATING EXPENSES 2,647,258 2,544,813 - 4.0% 0.0% EBITDA (Original Proforma = $482k) 491,257 630,301 - -22.1% 0.0% Interest 130,361
B
ond Principal 265,000
PRE INCOME TAX EARNINGS 95,896
Non-Cap Project Expense (Tree Work) 30,000
ADJUSTED PRE INCOME TAX EARNINGS 65,896
Capital Projects, Equipment, Startup 320,000
EARNINGS AFTER CAPITAL (254,104)
KEY INDICATORS
Prior Year
Total Rounds 68,565 70, 860 67,834 -3.2% 1.1% Avg. Total Green Fee Including Dues 26.14$ 25. 85$ 19.48$ 1.2% 34.2% Memberships - Year End Units 100 110 110 -9.1% 0.0% Total Dues 151,029$ 149, 850$ 0.0% 0.0% Key Assumptions:
Will need to continue to rent existing carts. RFP needed for 72 New Carts - Will take 12-16 months to acquire.
Uncertain of exact electricity costs. Current budget for Maintenance Pumps is $40k and $58k for Facilities.
Bennett Valley Golf Course
Payroll exceeds Proforma by $47k due to restaurant training and higher wages in the maintenance department.
Operating expenses are $55k more than Proforma due to maintaining older Carts at the end of their lease, quality Range Balls and Maintenance Fertilizer, plus sand for bunkers.
The total rounds are scheduled to increase by 1% over prior year.
The average green fee increases 34% due to the elimination of the Players Discount Card, reduction in trade tee times with GolfNow and a budgeted green and cart fee increase beginning January 1, 2022.
Restaurant sales are $27k under Proforma due to the delay in reopening - Targeted for October 1, 2022.
Tournament sales are $50k less than Proforma given no leagues in July and no reservations on the books.
There are simply too many round types and fees in the system. Will simplify.
Touchstone Golf is expending $50k on landscaping and all the costs to acquire the Liquor License (Approx. 10k).
The Food and Beverage Department makes $46k in Year 1 due to the late start, repairs, supplies, training, etc... 15 EXHIBIT F
Operating Plan (Exhibit D from Management Agreement)
• Brief description of maintenance programs, as applicable, including tees, fairways, greens, bunkers, rough, restaurant concessions, pro shop area, driving range and other grounds.
To achieve the proper service levels and guest experience at the Bennett Valley Golf Course , a thoughtful, well-executed plan relating to golf course maintenance and facility is required. T ouchstone begins with the vision for the golf course and then works with the City and local golfers to define the necessary steps to turn the vision into reality. Thereafter, T ouchstone utilizes a system to define ongoing tasks necessary and the corresponding labor so that the golf course vision and quality is delivered on a consistent basis. Supplementing this approach is the regular management of a priority list of projects, created and maintained by the Superintendent and General Manager, and Touchstone executives, but again with regular input from the City of Santa Rosa and golfers and diners. These methods and practices are designed to provide a consistent and lasting quality customer experience at each golf facility.
Maintenance Quality Standards
The maintenance practices included below are intended to be a general summary for the agron omic, horticultural, and recurring service practices of T ouchstone’s golf course maintenance operations at Bennett Valley Golf Course. The quality standards set forth below are intended to establish the frequency and method of routine maintenance and
cultural practices, along with prescribing the level of amenity packages needed at a high quality public facility.
In order to meet the expectations for course conditions it will take the full commitment and dedication from the superintendent and maintena nce staff. Challenges involving tree and stump removal, irrigation and drainage that affect turf- grass quality will take vigilant monitoring and immediate response to ensure that course conditions are not negatively affected. Touchstone would implement the following procedures:
The Superintendent will post a quarterly calendar displaying all activities that relate to turf management, cultural practices and improvement. These would include aeration, fertilization, herbicide applications, turf replacement and capital improvement projects. This plan will be reviewed directly by Mark Luthman. Once approved, the Superintendent will execute the plan and make changes as weather dictates. A monthly improvement plan will be developed by the Superintendent and r eviewed by Mark Luthman (President), Steve Argo (Vice President of Operations) and the General Manager to assess if the golf course is meeting the plan or falling short of established goals. The S uperintendent will be accountable for the timely execution of this plan and any corrective actions.
Bennett Valley Golf Course Priorities
Maintenance priorities observed by Touchstone after a recent round of golf by our executives are as follows with the NGF Study an excellent starting reference point for addressing maintenance issues:
1. Continue to Execute on Condition of Putting Surfaces. The putting green surfaces are among the best we have seen at a public golf venue. It is important this key strategic advantage be prioritized. In addition, training will be provided to staff on the placement of the holes to ensure they are fair to the golfers.
2. Address Select Tees with Crowning. There are a number of tees that should be leveled. This work can likely be done in-house in the normal course of business.
16 3. Drainage. As a relatively flat golf course, drainage should be addressed in a number of areas, starting with the 1 st and 9th fairways. Drains will need to be placed to move the water off the fairways and roughs . Given how flat certain areas are, low water catch basins may need to be created to the side of some of the rough areas. In the future there is an opportunity to tie a portion of the drainage to an irrigation lake. .
4. Add Bunker Sand. Most of the bunkers have a relatively thin sand base and require another 2-3 inches of sand. Prior to adding the sand, drains will be checked and cleared.
5. Water Sources. The overall goal should be to eliminate pulling water from the creek and work towards utilizing the wells (including a planned new well) to fill a new irrigation lake and irrigate the golf course from that lake Assuming there is enough groundwater to support the golf course it is hard to understand why the current setup exists.
6. Waste Reduction & General Cleanup. Dead trees, stumps, branches, wood plies and other green waste need to be removed using “green waste bins”. It will not be allowed to just sit there or “pile up”. Once inspected by City Staff, obsolete equipment should be sent to the appropriate recycling outlet. A Waste Reduction Plan, that covers all areas of the operation will be developed to comply with the stewardship and sustainability goals of the City.
Minimum Maintenance Standards
Minimum Maintenance Standards create consistency and enhance the golfing experience. The goal is to provide the guest with a great day of golf from the first tee to the eighteenth green. By meeting or exceeding the guest expectations with a consistently well-maintained golf course and good turf coverage we will have provided the high quality value that the guests deserve. Minimum standards will be implemented at Bennett Valley with the input of the City using Touchstone’s standard template as a starting point.
• Brief description of Customer Service Standards.
Central to Touchstone’s operating philosophy across all departments we operate, and one of the most important components to providing guests with a memorable experience is ensuring that exceptional service is delivered consistently and effectively. Our approach is to listen to the customer, deliver service that exceeds our value proposition, and to follow-up with the customer frequently to ensure consistency. Job descriptions and service standards will be established and communicated to every Co-worker. Co-worker and department head meetings will be used to reinforce and further develop the standards and provide training so that staff are involved in the creation and delivery of excellent service. Our strategy begins with a simple statement that must be embraced by every staff member from the range attendant to the head golf professional:
Understand and exceed our customer’s expectations
by providing the best possible golf & dining experience
From an employee’s first day on the job, we begin training with our fundamental service philosophy and standards. Regardless of an employee’s position or past experience, each member of our team is indoctrinated with our relentless pursuit of providing exceptional service to our guests. We continue to invest in training our employees through meetings, formal workshops, and web- based training programs. We are proud to publicly recognize and celebrate the success of those who exceed the expectations of our guests with our Co-worker of the Quarter awards.
We also utilize two programs designed to create and sustain excellent customer service. The FIRST Program is designed to bring the employees together under an umbrella operating philosophy. The acronym stands for:
17 Friendly Integrity Respect Stretch – Learn Teamwork
General Managers can reward staff with $5 gift certificates to recognize an employee that has demonstrated one or more of these attributes that can be used in the golf shop or restaurant. A sample of the certificate is shown below.
The second program is “Take 5 to Shine” – this program encourages employees to demonstrate service at the “wow” level every week. The program is further identified in the following pamphlet shared with employees.
At least one 5-minute effort every week
Do something extraordinary for a guest
Goal is to elicit a “WOW” from the guest
Examples:
Offering to take a photo of a group struggling with a Selfie
Helping a guest overloaded with food & drinks to their table
Surprising guests with samples from the kitchen
Offering to rake a bunker for a guest who just hit a shot Helping a guest load or unload their golf clubs
We monitor our service delivery using two important tools:
Service Shops. In order to gain perspective from the eyes of the guest, we rely on frequent 3rd party “service shops.” Typically, these shops are conducted by an independent third-party and provide valuable insight into the effectiveness of employee service training programs. Specifically, the service shop would be conducted in both the golf shop and dining outlets and measures the following:
Greeting the guest/answering the phone in courteous, friendly and professional manner; collection of accurate information from the guest; effective communication of policies to the guest (cancellations, returns, etc.); timeliness of service delivery; physical condition of property, ambiance, cleanliness; product quality; cash handling.
Secret Shoppers. We also utilize secret shoppers as a v aluable tool to assess the skills of the sales team members and learn from the experience we provide to our prospects. Training opportunities are often uncovered through the results of these sales shops. Specifically, the sales shop measures the following:
Promptness in returning telephone calls; proficiency in delivering value proposition; whether the correct probing questions are being asked to identify key buying criteria (customer needs) ; effectiveness in communicating the product features and benefits; ability to progress prospect along in sales cycle and closing tactics; effectiveness in up -selling or providing appropriate alternatives; follow -up with the customer and cultivating referrals.
Survey System
18 Touchstone utilizes an industry leadin g survey tool from Players 1 st. The essence of the system is to email golfers after their round to get their feedback on their experience, including any desired follow up. The survey is smart phone friendly, simple to fill out and generates a “Net Promoter Score” along with useful feedback on the operations of the golf course. Additional details on this system are provided in the Business Plan portion of this response.
• Brief description on operating systems that are utilized to promote efficiencies, such as but not limited to, online tee time booking and transaction data.
1) Point of Sale/Online Booking/Marketing Engine Systems . Touchstone has experience with a wide variety of point of sale and related online booking and marketing system engines including the existing system utilized at the golf course.
2) Tee Ti
me Distribution Systems and Partners . Touchstone is a cautious user of tee time barter systems.
We carefully utilize select 3 rd party tee time distribution channels such as GolfNow. To create a positive result from a 3rd party marketing channel, the golf course must offer the best price on its own online reservation system, build local club membership/loyalty programs and develop off-peak group tournaments and special events. If required, a barter tee time must be positioned at an off-peak time and be similar in price to promotional rate. Golfers who book a tee time on the 3rd party website will be provided an offer to join a course-based club or loyalty program during the check-in process. 3) K ey Performance Indicator Systems . Touchstone utilizes a variety of proprietary analytical systems including our 3X monthly performance Scorecard and key performance indicator reports, and monthly Performance Analysis Report (“PAR”) that is paired with monthly financial statements.
• Brief description of staffing levels, pro shop operations, restaurant operations and relevant performance standards.
The following chart provides an overview o f the staffing needs at Bennett Valley – the pro forma financial information in the separate Cost Proposal has detailed information by position to support this schedule.
Position Summary of Qualifications Key Responsibilities Hours per
week –
Mar-Oct
Hours per
week - Nov-
Feb
General and Administrative Staff
General
Manager
10 plus years’ experience in a similar
capacity in the golf or hospitality
industry. Excellent business acumen,
communication and leadership.
Oversight of all staff of the golf
course. Day to day management of
the financial performance and
operating strategies at the facility.
50-55 50-55
Head Golf
Professional
5 plus years’ experience in a similar
capacity in the golf industry. Excellent
knowledge of the game and instruction.
PGA or LPGA credentials.
Oversight of the golf operations
including daily golf, tournaments,
driving range, carts and pro shop
merchandising
50-55 50-55
Director of
Sales
Previous hospitality sales experience,
preferably with golf tournament and
banquets. Website management.
Outgoing, sales-driven individual.
Tournament and Banquet or
Membership sales. Day to day
implementation of Touchstone’s
sales & marketing plan.
40-45 40-45
Golf Operations Staff
Golf Shop
Staff
Friendly, efficient, detail oriented, sales
ability
Guest check-in, merchandise sales,
member/loyalty sales 20-40 20-40
Golf Prof.
Staff PGA or LPGA Member or Apprentice Implementation of Player Development Program 20-40 20-40
Cart/Range
Staff Efficient, detail oriented, safe Cart staging, cleaning, detailing, range picking, mechanic 20-40 15-40
Player
Assistants To be staffed with Touchstone Golf Foundation volunteers Position Summary of Qualifications Key Responsibilities Hours per
week –
Mar-Oct
Hours per
week - Nov-
Feb
Golf Course Maintenance Staff
19 Super-
intendent
GCSAA Class A, 5 years minimum
experience in management Lead maintenance operations 50-55 50–55 Foreman or
Assistant 3 years previous golf course experience Lead staff and certain key aspects of maintenance plan 40-50 40-50
Mechanic Previous golf course mechanic
experience
Equipment repair and preventative
maintenance 40 40
Irrigation
Tech 3 years previous golf course experience Oversees the maintenance and repair of the irrigation system 40 40
Greens-
keeper 3 years previous golf course experience Top operator of equipment. 40 40 Maint. Staff Efficient, detail oriented, safe Standard maintenance staff 30-40 20-40 Food & Beverage Staff
F&B
Director
5 years minimum experience in food
and beverage. Lead Food & Beverage operations 50-55 50–55 Chef/Cooks Previous experience in restaurant
operation
All food preparation under Chef’s
guidance and instruction 20-40 15-40
Servers Experience serving guests. High touch
service personnel
Customer interfacing for orders and
delivery of meals 20-40 15-40
Bartenders Experience with serving alcohol. High
touch service personnel. Often combined with server duties. 20-40 15-40
• Brief description of marketing and promotional plans for youth and adults, including those traditionally disadvantaged economically or socially.
Touchstone, working with input from the City of Santa Rosa, will develop and execute a dynamic marketing plan to effectively position, market, and promote the Bennett Valley Golf Course. As a starting point we will address the following key strategic components:
• Establish the Marketing Approach – “Brand Building”
• Understanding and Developing Target Guest Segments
• Leveraging Social Media
Establish the Marketing Approach – “Brand Building”
To begin creating and optimizing a brand, our first priority will be to improve the quality of the golf course, introduce food and beverage options and enhance the service experience – these elements will improve the guest’s value perception of the property. By laying this important groundwork, we can then focus on creating awareness and interest, providing the right experience, and then building loyalty with guests that creates advocates. Advocates are the critical long-term link for the success of any golf course. The following diagram demonstrates the framework of the process to build the brand.
Understand and Develop Target Guest Segments
Upon commencement of our management engagement, we work to identify existing and potential guest segments. These segments typically include regular golfers (local club members), infrequent golfers, potential golfers, youth including youth in need, and diners of which there are also several sub-segments. Within each segment there are opportunities to grow the segment by understanding their needs and how the golf course can address those needs.
20 Once these segments have been identified and analyzed, we develop marketing programs, including loyalty/affinity options, to deepen the relationship and utilization of the golf course and its amenities. Our analysis involves developing a competitive market analysis so that marketing efforts, as well as pricing decisions, are tailored to position the golf course to succeed within the market.
Email Databases
Touchstone advocates course -based, proprietary email marketing and has significantly improved its email database at its public venues through a variety of email collection techniques while complying with opt -out rules. A venue of this size under Touchstone management should have an email database of 25,000 plus active emails. It is important that the email database have segmentation characteristics so specific promotions can be efficiently communicated to groups with related interests.
The Demand Factor from the Pandemic
Not to be ignored is the recent surge in golf demand resulting from the pandemic, as people seek safe, outdoor recreation alternatives. Many of these individuals are brand new to the game of golf or have decided to make golf a more regular part of their recreation activities. In either case, sustaining the ongoing participation of these individuals and the revenue associated therewith is a critical part of any current marketing effort.
Touchstone has created a monthly report, prepared by our properties three times each month, to report on “Customer Engagement” activities taking place at the golf course. This information is compiled for the property, as well as all other Touchstone properties, and circulated across the company’s platform. This distribution fosters communication of best practices and opportunities to maximize the connection with our customers. Touchstone also runs promotional contests among its properties for goals such as number of 15 minute pro lessons in a month, email database growth and property tours.
Leveraging Social Media
The past decade has seen the proliferation of technology for communicating with golfers and promoting tee time availability. The same can be said for the restaurant industry. Technology must be managed and used in a disciplined manner to assure maximizing the average green fee rate. We will enhance social media methods, search engine optimization, and further expand the use of technology to grow facility income and increase guest satisfaction. Touchstone has performed our standard assessment of the existing the golf course’s existing social media presence. A summary of that assessment with recommendations is found below:
Customer Engagement Tracking Course Name: M onth:
Definitions 15 Minute Pro
Sessions
Tips & Tricks
Videos
GM/Sup/Chef
Tours
Membership/Handi-
cap Responses League Invites Invite to Tournament
/Social Events
Range Events
/Happy Hours
Creative
Other Ideas Definitions Facebook
Posts
Instagram
Posts
Email
Blasts
# Reached (# of
Phone Calls or
E
mails Sent)
- - - - 6, 814 - 6,878 - # of Posts or Emails 4 1 2 # Responded
(Answered
P
hone, Email or
Signed Up)
- - - - 4 96 4 - People
Reached
o
r Email
Views
374 10 13, 692
Notes / Success
Stories
Blue Rock Mar
Direct Engagement Social
Days 1-10 We have a Taylor Made demo day coming up next month, our first email has received 4 signups already. The Operation-36 program is kicking off for the season with a strong 14 students, which doesn't include the 6 students registered for the advanced academy. Our creative event for March is the Leprechaun Open and w
e solid out quickly with 96 people!
21 • Brief description for providing golf lessons and golf carts.
We propose to create a Golf Learning Center that will restore the junior golf club/camps, including youths in need and increase golf lessons for beginners and more advanced players. The below information focuses on our experience and a variety of programs we use at our golf courses. The program for Bennett Valley will be customized to best serve the community.
22 Junior Golf
Touchstone will target the area’s junior golf market and encourage participation in programs and activities geared for young golfers. Our objective will be to broaden the golf facility’s reach into the market and bring more young people into the game. We will also recommend a Junior Club Membership with features such as low or no-cost instruction and access to the practice facility and golf course for nominal fees.
An after- school program for youth in need or at risk is also worth consideration, to includ e a series of instructional and learn -to-play programs modeled after the non-profit Ace Foundation’s Ace Kids Golf program (www.acekidsgolf.com). We will enlist volunteers from our Touchstone Golf Foundation to help run and raise funds for this program.
Touchstone leverages defined and productive introductory and intermediate level golf programs sponsored by national organizations such as the programs below. We will evaluate the best fits for the Bennett Valley Golf Course and build the introduction to golf program for youth around this framework.
Not all juniors will seek to
develop their games to a competitive level. However, it is important that the golf course have programs and capabilities to facilitate a junior golfer’s development. Touchstone will maintain instructional talent able to fulfill a junior golfer’s level of potential.
Adult Programs
Touchstone deploys a number of introductory golf programs for adults in addition to creating in- house programs tailored to making adult golfers comfortable learning the game. Among the programs we deploy are the following:
Touchstone was selected to pilot the new National Golf Foundation “Welcome2Golf” program that was designed to get new players to the game comfortabl e with all facets of playing golf, not just playing ability.
We successfully rolled this out at our Applewood facility recently with great success. More details of the program deployed are found below.
Our golf instruction programs always include player development programs designed for adult golfers seeking to advance their game coupled with advanced individual lesson capabilities. An example of a player development program is found below and such a program will be tailored to the needs of the Bennett Valley Golf Course. A sample is shown below.
23 Providing golf carts is a standard operational component of our management including regular maintenance of the fleet to eliminate any downtime.
• Brief description of programming ideas and innovative operating concepts for both golf and the restaurant.
Golf Tournament and Non-Golf Event Marketing
Increasing golf tournaments and non-golf events will be a cornerstone in improving the long-term profitability of the Bennett Valley Golf Course operation. It is important that such events are actively solicited, renewed, and priced properly. Equally important is t he need to schedule such events to complement the revenue stream rather than erode critical individual round revenue. For example, weekend tournaments are best held in the late morning to fill times that are of less demand and protect high demand times that can be filled by residents, course members and visitors. Since most charity events seek the lowest possible cost in order to raise the most money, generally such events can be channeled to off-peak times (e.g., Weekday afternoons).
Competitive events are also very desirable given the quality of the golf course including NCGA, USGA and State qualifiers along with local men’s, women’s, senior’s and junior golf events.
The food and beverage element for events is key to the long -term success of the Bennett Valley Golf Course operation. It is Touchstone’s understanding that the restaurant venue has been closed for over 2 years.
Banquet capabilities are essential to support food and beverage services for golf tournaments, but the upside is in building capabi lities that serve a broad and varied type of events that extend well beyond golf -related activities. The following matrix provides an example of the scope of events to be pursued at Bennett Valley:
24 A sample of two possible event communications along with a sample calendar are shown below.
Community Events
The Touchstone senior leadership team are highly experienced in customer and public outreach efforts.
Specifically for the Bennett Valley Golf Course, Steve Argo, VP of Operations for this region will be involved in
25 setting the expectations and execution for community outreach for the property, working closely with the General Manager of the property and Touchstone’s head of Marketing, Ashley van Dissel.
The following are examples of how Touchstone Golf leverages a community golf course asset to provide activities for a wide range of non-golf activities.
• Outline a plan for operations, management, and maintenance of the entire golf course, driving range, pro shop, maintenance buildings, all other golf course buildings, restaurant building, restaurant furnishings, golf course maintenance equipment, restaurant maintenance equipment parking lots, and material yard.
Touchstone deploys four critical functions in maintaining our facilities and equipment. The graphic below summarizes these components and full details of each is available upon request.
We note that certain improvements are needed to the restaurant. In addition to the exterior landscape issues Touchstone will pay for, there are a number of interior items that need to be addres sed including but not limited to the replacement of the floor in the walk-in cooler, drainage in the dishwash area and eventually the replacement of the carpet.
• The operating plan will be considered draft and may be further refined upon notification to the Consultant that their proposal will be recommended for Council approval. Any modification of the operating plan may not reduce the expectations of the Scope of Services and the RFP and may not increase direct or indirect costs to the city unless requested by the City. Therefore, the operating plan is considered draft but must be comprehensive and inclusive.
Touchstone acknowledges and agrees with the City’s statement above.