Bennett Valley Golf Course Enterprise
Update and Study Session
Jen Santos, Parks
Deputy Director
City Council
December 6, 2022 1
Agenda
• Background – Management Arrangement
• Touchstone Golf Team
• Business Plan Overview
• Marketing and Outreach
• Golf Programs
• Restaurant and Event Center
• Financial Results and Outlook
• Golf Course Fee Proposal
• Golf Carts
• Capital Improvements
• Equipment
2 Bennett Valley Golf Course Enterprise
BENNETT VALLEY
GOLF COURSE
GALVIN
COMMUNITY
PARK
3 Management
Arrangement
and Finances
• Touchstone Golf retained as professional golf course
management firm July 1, 2022
• City receives all revenue to fund all expenditures
• City to address funding capital improvements and
equipment
• Year 1: +/- $3.5 million and Year 3: +/- $4.6 million • Annual Expenditures Year 1: +/- $2.9 million (without startup cost) and Year 3: +/- $3.8 million
• Budget projects a $250,000 first year loss after debt service of $395k and startup costs of $320k
• Assumes catering and event sales of $300k in Year 1
growing to $600k in Year 2 and $900k in Year 3
4 Mark Luthman,
President
Chris Hill,
Food and
Beverage
Director
Jessica
Schroeder,
Director of
Sales
CJ Snyder,
Head Golf
Professional,
PGA
Doug Wiggers,
Superintendent
Chef
Matt
Carvalho
Rita Comstock,
Accounting
Greg Anderson,
General
Manager, PGA
Ashley van Dissel, VP
Sales & Marketing
James Birchall,
VP Operations
Steve Harker,
CEO, PGA
Touchstone Golf Team
5 Business Plan
Overview
Rebuild The Bennett Valley 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.
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.
` 6
Business Plan
Overview
Key Business Drivers
1) Create an inviting facility and restaurant
2) Improve the golf course playing conditions
3) Create a destination dining and event venue
4) Enhance the practice facility and golf instruction
5) Elevate customer service
6) Define and market to current and new customer
segments
➢Including those in the City who have never considered
golf or dining at Bennett Valley Golf Course.
7 Bennett Valley Golf Course
Marketing and Outreach
• Website update
• Email Marketing
• Increased email
database by over 1000
subscribers
• Average 45% open rate
on all emails
• Social Media
• 22% increase in
customer engagement
on Instagram
8 Marketing Plan –
Programming
Events
• Sold out first community
open house
• Sold out first community
golf tournament “Spooky
Scramble”
9 Marketing Plan – Programming
Events
10 Golf Programs for All !
• “SRGA” Santa Rosa Golf Access:
o Neighborhood Services Youth
o Lawrence Cook Middle School
o Elsie Allen High School
o Voices Youth
• Junior Linksters Program with
scholarships for youth
• Individual and group golf lessons
• Diversity in the Workplace
• Census of employees
• Recruitment strategies e.g. Voices
• Staff Training – Cultivating A Culture
of Belonging
11 Restaurant and
Event Center
• Bennett Valley Grille
• Soft opening October 1st
• Rebranding in process – building
excitement
• Full marketing plan execution
• Grand opening early 2023
• Bennett Valley Event Center
• $159,000 in tentative and booked
business for Nov 1, 2022 – Dec 31,
2023
• New wedding and event website to
launch Dec 2022
• Added to Touchstone Golf lead
generation websites for increased lead
activity
12 Restaurant and
Event Center
Facility
Improvements
13 Financial
Results and
Outlook
Budget is to utilize $250k in reserves the first year after Debt Service of $359k and $320k of startup expenses
Current Financial Results (First 120 days, October Prelim) Total Revenue of $1 Million Dollars on budget target
Earnings of $90k is 88k short of budget target due to additional facility expenses to reopen and unanticipated start-up costs
Revenue Results vs. budgeted targets
Golf Driving Range revenue $39k ahead of target
Restaurant revenue $48k ahead of target
Golf Revenue $97k behind target due to fewer rounds and limited golf tournament and league events in the fall (Nothing was reserved by previous operator)
Financial Outlook
Average Green/Cart Fee year to date of $30.17 – this amount is below the competitive set of local golf courses & limits golf income Restaurant exceeding revenue projections
Rounds will recover assuming normal weather and strong
tournament/event sales and bookings
Market Fee increase recommended and necessary.
14 Golf Fees
Existing
• Golf Fees unchanged since 2017
• Over 180 variety of fees
• BVGC fees below market rate
• Capital fees
Proposed
• Update golf fees to market rate
• Reduce variety of fees
• Eliminate Capital Fee per Round
• Return to Council in January
with fee update
Highlights
Weekdays & Fridays
• $4 increase for full 18 Hole fees (12%)
• $2 Increase for twilight (8%) and senior (7%)
• No increase to junior golfers
Weekends
• $5 increase for full 18 Hole fees or 11%
• $5 Increase for twilight (16%)
• $5 Increase for super twilight (26%)
Additional Fees & Membership
• $1 Increase in cart fee (6%)
• $1 Increase in super twilight, 9-hole cart (11%)
• $2 Increase in large driving range bucket (20%)
• 12 - 15% increase in membership fees
• Approximately 100 Members, 75 are Seniors
• Current Average Green Fee is approximately $15 per round • 10,000 Total Rounds
15 Golf Carts
Existing:
• 56 Carts
• Lease expired October
• Temporary lease to bridge gap
with existing carts
Proposed:
• 72 Carts to meet demand
• 5-year Operating Lease
• Request for Proposals RFP
• Yamaha, E-Z-GO, Club Car
• Cost Per Car Per Month
16 Capital
Improvements
Golf Course:
Irrigation lake and pump station
$1,100,000 – highest priority
Irrigation system replacement
$2,500,000 – high priority
Drainage improvements $500,000
Tee leveling $50,000
Bridge repair $25,000
Tree removal $50,000
Restaurant:
Carpeting $90,000
17 Equipment
Restaurant:
• Kitchen Equipment $38k
• Banquet Chairs $22k
Course / Maintenance:
• 3 Utility Vehicles $38k
• Beverage Cart $20k
• Driving Range Utility Picker $17k
• Fairway Aerator $55k (pictured)
• Greens Aerator $32k
• Turbine Blower $10k
Replacement Plan
18 Questions, Feedback, Next Steps
19