Bennett Valley Golf Course Fees
CITY COUNCIL
MAY 7, 2024
JEN SANTOS
DEPUTY DIRECTOR - PARKS
2 Bennett Valley Golf Course Enterprise
3 Rate Increase Overview
Only three minor rate increases between 2011 – 2022.
Council approved recent rate increase in 2023 (average increase of 10% implemented, which was well below market rate).
With the previous inconsistent rate increases throughout the years, larger increases are now necessary.
Proposing a consistent 3-year rate increase:
• Year 1 (FY 24/25) increase closer to the market rates while maintaining the best value golf course • Years 2 (FY 25/26) & 3 (FY 26/27) moderate increases • BVGC will remain best value while targeting a sustainable enterprise fund Proposing Resident and Non-Resident rate structure:
• Resident and Non-Resident Study from July 2022 - December 2023: Findings 68% is Santa Rosa Resident Play
• Non-Resident pricing approximately 10-15% higher than residents of Santa Rosa 4 Rate Increase Overview
Increase in fees are necessary:
Increases in operating costs (minimum wages, utilities, and cost of goods) Need the golf course to be profitable to fund debt services, deferred maintenance, and operating costs
Improve the financial performance of the golf course to prevent use of General Fund More improvements are needed at the golf course (equipment, course drainage, tee leveling, etc.) due to significant deferred maintenance Plan to achieve a consistent rate model
5 Proposed Rate Increases & Comparable Rates
CMA
Bennett Valley
GC
Bennett Valley
GC
Windsor Golf
Club Foxtail- North Valley of The
Moon
Rooster Run
Golf Course
Current 2024 2024 2024 - Carts
Mandatory +$19 2024 2024
Weekday Rates BVGC BVGC Proposed Windsor Foxtail VOTM Rooster Average % Under Competition Regular Resident $37 $41 $49 $40 $42 $49 $45 10%
Regular - Non Res $37 $47 $54 $54 $42 $54 $51 9%
Senior (60+) $30 $33 $44 $44 $31 $45 $41 23%
Senior Non Resident $30 $38 $44 $40 $31 $45 $40 5%
Twilight $28 $31 $38 $40 $31 $35 $36 16%
Senior Twilight $23 $26 $35 $35 $24 $35 $32 26%
Super Twilight $17 $19 $28 $29 $22 $28 $27 42%
Senior Super Twilight $17 $19 $28 $28 $22 $28 $27 40%
Junior $14 $14 $15 $20 $15 $15 $16 16%
Competitors
6 Capital and Equipment Needs Summary
Projects completed or in progress and equipment purchased since June 2022:
Completed Y/N Budget Spend Balance
o POS System – EZLinks POS Yes – 7/2022 $20,000 $22,135 -$2,135 o Erange Software System – Driving Range Yes – 9/2022 $12,000 $7,832 $4,168 o Walkin Refrigerator Floor Yes – 9/2022 $15,000 $13,844 $1,156 o Kitchen & Building Repairs (needed to open restaurant) Yes – 10/2022 $20,000 $32,836 -$12,836 o 175 Folding Chairs Yes – 11/2022 $20,000 $15,706 $4,294 o Glass & Dishware (ongoing) No $16,500 $3,990 $12,510 o Tree Removal – Removed 11 dead trees and 25 stumps (ongoing) No $90,000 $32,000 $58,000 o Event Chairs for banquets Yes – 03/2023 $15,500 $21,446 -$5,946 o 2012 Beverage Cart Purchased Yes – 6/2023 $20,000 $11,752 $8,248 o HVAC in Clubhouse – Fix air conditioner Yes – 7/23 $0 $16,736 -$16,736 o Lely Spreader (seed spraying machine) Yes – 8/2023 $0 $9,144 -$9,144 o Irrigation Conceptual Design – Water Supply Yes – 8/2023 $50,000 $36,500 $13,500 o New Carpet – Restaurant, Banquet Center, Golf Shop Yes – 9/23 $90,000 $61,775 $28,225 o Tee Leveling – Holes #2, 3, 6, 7, 11, 13, 15, and 16 Yes – 10/23 $115,000 $96,747 $18,253 o Pergola for Banquet area Yes – 12/23 $70,000 $70,066 -$66 o New Sound System for Banquet Center No – 5/15/2024 $8,000 $0 $8,000 7 Capital and Equipment Needs Summary
Touchstone Projects completed or in progress and equipment purchased since June 2022:
Completed Y/N Budget Spend Balance
o Driving Range Utility Cart Yes – 10/2023 $17,000 $16,459 $541 o Turbine Blower Yes – 10/2022 $10,000 $11,619 -$1,619 o Fairway Aerator (Not yet ordered) No – 4/2024 $55,000 $25,000 $30,000 o Furniture in Restaurant Yes – 4/2024 $22,000 $23,817 -$1,817 o Greens Aerator Yes – 10/2023 $32,000 $38,106 -$6,106 o 2 Club Car Utility Vehicles Yes – 4/2024 $38,000 $31,843 $6,157 o Irrigation Pump Repairs (waiting for drier conditions) No – 5/15/2024 $40,000 $40,000 $0 Totals $394,000 $341,975 $52,025
Other projects completed or in progress and equipment purchased:
o In August 2023, Council approved $2 million from the General Fund for new water supply and storage system for the existing irrigation system – in design – expected to be in construction Spring 2025 pending future weather conditions o New Golf Cart Lease provided for $9,623/month. The 72 new Club Car golf carts were received in November 2023. o Two new greens mowers were received in March 2024.
8 Capital and Equipment Proposed Budget for FY 24/25
o New POS System to better service our guests (Lightspeed) $30,000 o Toro or John Deere Utility Carts – to replace aging carts $65,000 o Fairway Aerator $27,000
o New Office in Golf Shop $25,000
o Par 3 Course Set Up – create a course that people can play in the winter $20,000 o Turbine Blower – The 2nd Blower on fleet $13,000
o Patio Chairs and Tables $10,000
o 30 Bar stool chairs $4,000
o Driving Range Mats $11,000
o Tree and Stump Removal $40,000
o Bridge Repair – Replace walking/traction thread on bridge(s) $5,000 o Cart Path Repairs – Replace slabs of concrete that have been uprooted $15,000 Total CapEx for 2024/2025 $265,000
9 BVGC Performance
Annual Golf Rounds
2015/16: 58,976
2016/17: 46,535
2017/18: 49,376 (Tubbs Fire smoke)
2018/19: 42,100 (Paradise Fire smoke)
2019/20: 47,236
2020/21: 74,850 (Covid)
2021/22: 63,191
2022/23: 55,731 (long rainy season)
2023/24: 52,830 (projected)
BVGC Enterprise
68% of golfers are residents
Resident/non-resident
Golf program updates
New Director of Instruction
Increased tournaments
Increased events
Boys and Girls Club (local participants)
Junior Golfers program
10 Review of Proposed Updates
Continual improvement of golf course, driving range, restaurant and events center recommended by National Golf Foundation
Long Term Financial Policy Audit Subcommittee recommends Council approval of BVGC fee increases on March 21, 2024
BVGC Advisory Committee supportive of proposed fee increases FY 24/25 BVGC budget anticipates and is dependent upon fee increase Fee increase necessary to support on-going operations, significant deferred capital and equipment needs, and debt service
Plan to achieve a consistent rate model while maintaining the best value 11 Recommendation
It is recommended by the Recreation and Parks
Department that the Council hold a Public Hearing to
discuss increasing and adding golf fees and by resolution approve the revised Bennett Valley Golf Course (BVGC)
fees to supersede and replace the BVGC fees and
requirements set forth in Resolution No. RES-2023-007,
effective on July 1, 2024.
12 Questions?