HomeMy WebLinkAbout1991- Golf Operations Evaluation"4
GOLF OPERATIONS EVALUATION
SEBASTIAN GOLF FACILITY
PREPARED FOR
CITY OF SEBASTIAN
SEBASTIAN, FLORIDA
OCTOBER 15, 1991
PREPARED BY
PGA GOLF SERVICES, INC.
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T i1 1 P 1 0\ A L G LI I r 1_ R
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4
October 15, 1991
1816 1991
Mr. Robert S. McClary
City Manager
City of Sebastian
1225 Main Street
Sebastian, FL 32978
A� s o ( I A 7 1 0\ 0 1 A Ni t R I C A
r1l) Dear Mr. McClary:
100 AVENUE OF THE CHAMPIONS
Box 109601 We are pleased to present our report evaluating the golf operations at the City's municipal
PALM BEACH GARDENS facility. Our report was prepared in accordance with our proposal letter of August 19,1991.
f FLORIDA 33410-9601 Our report was prepared in accordance with the bond covenant section of your golf course
Revenue Bonds, Series 1985. The objectives of our assignment were to:
TELEPHONE: (407) 624-8400
FAX: (407) 624.8452 o Evaluate the adequacy of present and proposed rates and charges
for use of the facility.
o Evaluate the current golf operations of the facility to determine key
areas for operational improvements as appropriate.
t� RICHARD N. SMITH
President o Evaluate the existing facility in terms of general physical condition
and requirements for improvement as appropriate.
MARS L. SCHAAL
r�1 Vice President o Review historical, current and projected financial performance of the
golf operations to assess key operating ratios and identify key areas
THOMAS H. ADDI$ lit for improvement as appropriate.
Secretary
o Identify steps to help staff to reinforce a team approach to satisfy
PATRICK]. RIELLY the needs and expectations of the golfing public.
Honorary President
We wish to thank you and Mr. DeLarme for your courtesy and assistance in providing
Jim L. AwrREY necessary information for the evaluation to the project team during our site visit and
Executive Director/CEO subsequently. We have structured our recommendations to effect positive changes in
rs, operations so as to benefit both the City and the golfing public of Sebastian.
,1, Our study was based on estimates, assumptions and other information made available to
us during the conduct of our study, the sources and bases of which are stated in the
appropriate sections of our report. Our report is current as of the above date. Our services
did not include ascertaining the legal and regulatory requirements applicable to the
evaluation.
r�
Our report can be used for internal planning purposes and in conjunction with your
continued deliberations on your golf operations requirements.
1 Mahing your golf game better
Mahing golf a better game
City of Sebastian
Page 2
The use of the report is limited to the purposes identified, and the report is not intended and shall not be used
,•, so as to establish or imply any affiliation, association, or other relationship between the City of Sebastian and
the PGA of America.
We appreciate the opportunity to work with you on this project. Should you require any further information,
please do not hesitate to call.
Respectfully submitted,
PGA GOLF SERVICES, INC.
MM
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PNI
CITY OF SEBASTIAN GOLF FACILITY EVALUATION
TABLE OF CONTENTS
r"
Summary of Recommendations
FeeStructure ........................................ 1
Goff Operations ...................................... 1
Goff Facility ......................................... 2
Financial Operation .................................... 2
Golf Fees and Rate Structure
Current Golf Course Play Characteristics ..................... 3
Facility Rate Structure .................................. 8
Greens Fees and Goff Car Rates ........................... 8
Membership Fees ..................................... 11
Fee Recommendations .................................. 12
n
Golf Facility Evaluation
Goff Course ......................................... 23
Goff Course Maintenance ................................ 25
Clubhouse.......................................... 26
Parking Lot and Entrance ................................ 26
run
Golf Operations Financial Evaluation
Golf Operation Revenues ................................ 28
Goff Operation Expense ................................. 30
Summary ...........................................30
r"
Golf Operations Evaluation
Goff Starting System ...................................
14
Goff Cars ...........................................
14
Goff Range.........................................15
Merchandising.......................................15
Promotion..........................................17
.�
Golf Lessons........................................17
Other Services
Goff Club Repair ...................................
18
�-+
Pull Carts........................................18
Rental Clubs ......................................
18
Club Storage ......................................
18
Snack Bar Operations ..................................
19
Staff and Administration .................................
19
Golf Shop Staff....................................19
Administration .....................................
20
Training Program ...................................
21
Manager.........................................
21
Long Range Planning ................................
22
ran
Goff Advisory Group .................................
22
Golf Facility Evaluation
Goff Course ......................................... 23
Goff Course Maintenance ................................ 25
Clubhouse.......................................... 26
Parking Lot and Entrance ................................ 26
run
Golf Operations Financial Evaluation
Golf Operation Revenues ................................ 28
Goff Operation Expense ................................. 30
Summary ...........................................30
r"
LIST OF TABLES
f-,
Table 1 - Member/Non-Member Starts by Month 1990-1991 ..................
4
Table 2 - Seasonal Starts 1990-1991 ..................................
5
Figure 2
Table 3- Member/Non-Member Starts by Type 1990-1991
5
Figure 3
Table 4 - Member/Non-Member Starts by Day of Week 1990-1991 ..............
6
Figure 4
Table 5 - Golf Car Usage 1990-1991 ..................................
7
Table 6 - Greens Fees, Membership Rates and Golf Car Fees 1990-1991 .........
9
Figure 5
Table 7 - Goff Supply, Rounds and Greens Fees - 1991 ...................
10
Figure 6
Table 8 - Comparison of Rounds and Fees 1990-1991 .....................
11
Table 9 - Golf Supply, Rounds and Greens Fees - 1991 ...................
13
Table 10 - Golf Shop Gross Revenues 1990-1991 ........................
16
Q463014.T )C
Table 11 - Annual Operating Revenues and Expenses 1987-1991 .............
27
Table 12 - Detailed Operating Revenues 1987-1992 .......................
29
�+
Table 13 - Detailed Operating Revenues and Expenses 1987-1992 ............
31
fA+
f,
LIST OF FIGURES
Figure 1
Member/Non-Member Starts by Month 1990-1991 ...................
3
Figure 2
Member/Non-Member Starts by Type 1990-1991 ....................
6
Figure 3
Member/Non-Member Starts by Day of week 1990-1991 ...............
7
Figure 4
Annual Operating Revenues and Expenses 1988-1992 ................
27
Figure 5
Major Operating Revenue Sources 1988-1992 ......................
28
Figure 6
Major Operating Expenses 1988-1992 ...........................
30
Q463014.T )C
,ill, CITY OF SEBASTIAN GOLF FACILITY EVALUATION
PGA Goff Services was engaged by the City of Sebastian to provide an evaluation of the golf
operations at the city's golf facility. The Sebastian Goff Course was constructed in 1980. It is an
18 -hole regulation, par 72 facility. It plays to a yardage of: Blue at 6,717; White at 6,185; Red at
5,450; and Gold at 4,579. The course was designed by Mr. Charles Ankrom.
In accordance with the requirements of the City's Goff Course Revenue Bonds, issued in 1985, the
facility is to be evaluated regularly to determine the adequacy of present and proposed rates,
current operations, facility condition, and financial performance.
This evaluation was prepared by Mr. Martin T. Kavanaugh, II, PGA Master Professional and Mr. John
i' J. Rossi of PGA Goff Services. The site visit took place on September 14 and 15, 1991. As part of
our site visit, we met with various staff. Subsequently we met with Mr. Chris McCarthy, Greens
Superintendent and the City's Finance Department. Mr. James DeLarme, PGA Professional and golf
course manager, met with us extensively and provided us with supporting information.
SUMMARY OF RECOMMENDATIONS
P"
This section summarizes detailed findings and recommendations contained in the report.
�+ Goff Fees and Rate Structure
r
o Greens fees are at an appropriate level in relation to the existing public golf market.
Future increases should be geared to reflect Increasing operating expenses and the
overall public golf market rate structure.
o Membership fees are slightly lower than other area public golf facilities. The City
should maintain membership play at or near the current level (currently 48 percent of
total play). In the future, the City should to consider the initiation of a 'maintenance
fee' on a round basis for members in order to address inflation and the increasing
�., cost of operations.
o The Sebastian facility enjoys a level of play comparable to other area facilities. In
rZI T$ 1990-91, total golf starts were 73,700. Nevertheless, management should consider
programs to increase the level of play during the off-season and on weekends.
Specific promotion efforts should be undertaken to reach the public goffer,
particularly seniors.
Golf Operations
o The facility is well managed on an overall basis. Efforts are underway to improve
key components of the operation.
o The computer based tee time reservation system, currently being used on a trial
basis, appears to be operating well. Management should consider installation of an
appropriate system on a full time basis. Starting times should be issued on a 50-50
basis, with one-half of the starting times going to members, and one-half to open
�+ play.
M
(R►
Sebastian Goff Facility Evaluation
Page 2
o Goff car revenue is excellent. Plans to replace the golf car fleet on a rotating basis
should be implemented.
M9 o The golf range tee area should be renovated. Range ball prices should be
increased over time to industry standards.
11�9 o Recommendations for display reorganization and inventory in the golf shop are
included in the report to further increase merchandise sales. Advertising by other
golf equipment outlets on signage and the scorecard should be removed as soon as
possible.
o Goff lessons and other club services such as golf club repair should be provided
rIN more aggressively to enhance the service orientation of the golf operation.
Mn
o Cash controls and deposit procedures should be reviewed and additional control
procedures initiated.
o Training for all employees in the area of golf, golf operations, merchandising,
customer service and safety should be implemented.
Goff Facility and Goff Course
o The long range plan for maintenance, recently developed by the golf course
r., manager and greens superintendent, should be implemented.
F
o Early priority should be given to detailing and trimming on the golf course. Bunkers
that have been eliminated should be re-established, if appropriate. A performance
based training program for employees should be put in place so that standards can
be maintained.
o The clubhouse, parking lot, and entrance are attractive and well maintained.
Restroom maintenance procedures (outside contractor) should be reviewed.
Restroom improvements, as planned, should be implemented.
o Better directional signs should be placed along and off of major highways to direct
the public to the course.
Financial Operation
o The facility has generated a cash surplus after debt service in each of the last four
years.
o In general, revenue and expense levels are at an appropriate level given the facility's
seasonality patterns and level of play. However, net operating revenues have
decreased annually over the past four years as a result of stabilizing fee revenues.
Continuing emphasis should be placed on increasing revenues through encouraging
more public play with increased promotion and emphasis on senior golfers.
r,
'l' Sebastian Goff Facility Evaluation
Page 3
GOLF FEES AND RATE STRUCTURE
CURRENT GOLF COURSE PLAY CHARACTERISTICS
Goff starts at the Sebastian golf facility for the 1990-1991 year totaled 73,700 (October 1990 -
September 1991). A start is defined as a 9 -hole or an 18 -hole round. Member play accounted for
35,600 starts, 48 percent of the total. See Figure 1 and Table 1 for monthly starts by member type.
With a total membership of 340 (510 individuals) during the 1990-1991 year, individual members
averaged 70 starts per year. As expected, total play and member play peaks seasonally in the
January to April period. Open or non-member play is more evenly distributed during the year and
constitutes the majority of play during the May to December period.
The data presented in this section was tabulated from daily start sheet records provided by the
facility. Type of start, member and non-member play, and golf car usage totals were developed by
month and day of week for the recently concluded 1990-1991 year. A summary table is included in
the appendix of this report.
During the past year, January, March and April recorded the highest play level, with average total
monthly starts in excess of 7,000. February starts totalled 6,300 reflecting the shorter month and
closure of 4.5 days due to weather.
I
1.0
y
4X a
4X a
Q N
H
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Figure 1
Sebastian Goff Facility
Member/Nan-Member Starts by Month 1990-1991
9
8
7
6
5
4
3
2
1
O
-"-+" 4- 1 ..KV I MAT91 JUL91 SEP91
MONTH (rnmo913D1
MEMBER STARTS ® NON—MEMBER STARTS
Sebastian Golf Facility Evaluation
Page 4
rte'+
Table 1
Non -
MI
Sebastian Golf Facility
Member
Memb
Total
Member/Non-Member Starts by Month 1990-1991
100.0%
100.0%
100.0%
Non -
Member
Memb
Total
8.9%
Total Starts
35,643
38,126
73,769
9.8%
OCT90
2,305
3,396
5,701
8.8%
NOV90
2,893
3,726
6,619
9.1%
DEC90
3,017
3,356
6,373
6.8%
JAN91
4,406
3,472
7,878
8.7%
FEB91
3,751
2,593
6,344
8.5%
MAR91
4,089
3,311
7,400
9.0%
APR91
4,027
3,232
7,259
8.3%
MAY91
2,703
3,422
6,125
7.2%
JUN91
2,146
3,176
5,322
7.9%
JUL91
2,296
2,761
5,057
7.0%
AUG91
2,129
3,006
5,135
SEP91
1,881
2,675
4,556
Percent Distribution
Member/Non-Member
Non -
Member
Memb
Total
r.,
Total
48.3%
51.7%
100.0%
OCT90
40.4%
59.6%
100.0%
NOV90
43.7%
56.3°x6
100.0°x6
DEC90
47.3%
52.7%
100.0%
JAN91
55.9%
44.1%
100.0%
FEB91
59.1%
40.9%
100.0%
MAR91
55.3%
44.7%
100.0%
APR91
55.5%
44.5°x6
100.0%
0*1
MAY91
44.1%
55.9%
100.0%
JUN91
40.3%
59.7%
100.0%
JUL91
45.4%
54.6%
100.0%
AUG91
41.5%
58.5%
100.0%
SEP91
41.3°x6
58.7%
100.0%
Percent Distribution by Month
fti
Non -
MI
Member
Memb
Total
Total
100.0%
100.0%
100.0%
OCT90
6.5%
8.9%
7.7%
NOV90
8.1%
9.8%
9.0%
DEC90
8.5%
8.8%
8.6%
JAN91
12.4%
9.1%
10.7%
FEB91
10.5°x6
6.8%
8.6°x6
MAR91
11.5%
8.7%
10.0°x6
APR91
11.3%
8.5%
9.8%
MAY91
7.6%
9.0%
8.3%
JUN91
6.0%
8.3%
7.2%
JUL91
6.4%
7.2%
6.9%
AUG91
6.0%
7.9%
7.0%
SEP91
5.3%
7.0%
6.2%
asban - act tty
fti
Sebastian Golf Facility Evaluation
Page 5
.� On a seasonal basis, 57 percent of all starts in 1990-1991 occurred in the winter season (November
to April). 62 percent of member starts occurred in -season, as contrasted to 52 percent of non-
member starts. See Table 2.
F"
Table 2
Table 3
Sebastian Golf Facility
Sebastian Golf Facility
Seasonal Starts 1990-1991
Member/Non-Member Starts by Type 1990-1991
Non -
Member
Memb
Total
Total Starts
35,643
38,126
73,769
r�
Total Starts
35,643
38,126
November -April
22,183
19,690
41,873
May -October
13,460
18,436
31,896
Percent Distribution
Total Starts 100.0% 100.0% 100.0%
~' November -April 62.2% 51.6% 56.8%
May -October 37.8% 48.4% 43.2%
Sebastian Golf Facility
An analysis of start types indicated that 80 percent were 18 -hole starts. The pattern for members
and non-members was similar, as was the distribution of play type by month and season. See Table
3 and Figure 2.
ron
Table 3
Sebastian Golf Facility
Member/Non-Member Starts by Type 1990-1991
on-
Aw"
Member
Memb
Total
Total Starts
35,643
38,126
73,769
18 -Hole
27,864
30,874
58,738
nq
9 -Hole
7,779
7,252
15,031
Percent Distributon
Az%
9 -Hole and 18 Hole Starts
^�+
Non -
Member
Memb
Total
Total Starts
100.0%
100.0%
100.00,6
ra+
18 -Hole
78.2%
81.0%
79.6%
_
9 -Hole
21.8%
19.0%
20.4%
Percent Distributon
Member Non -Member Starts
Non -
Member
Memb
Total
Total Starts
48.3%
51.7%
100.0%
18 -Hole
47.4%
52.6%
100.00/0
9 -Hole
51.8%
48.2%
100.0%
r"
Sebastian Golf Facility
III
Sebastian Golf Facility Evaluation
Page 6
JUN91 AUC91
NOV90 JAN91 MAR91 MAY91 JUL91 SEP91
MONTH [rn18-93D]
® 18 HOLE STARTS ® 9 HOLE STARTS
Analyzing activity by day of week shows that play peaks on Wednesdays, reflecting club and league
play. Weekend days (Saturdays and Sundays) have the lowest level of play and account for 25
percent of total week play. Member play peaks during the week, with non-member play dominating
r=1 weekends. See Table 4 and Figure 3.
Table 4
,..q
Sebastian Golf Facility
Member/Non-Member Starts by Day of Week
on -
Member
Member
Total
r1I
Total Starts
35,643
38,126
73,769
MON
6,597
4,418
11,015
TUE
5,454
4,819
10,273
WED
7,467
4,781
12,248
THR
4,188
6,450
10,638
FRI
5,540
5,458
10,998
SAT
3,196
51899
9,095
SUN
3,201
6,301
9,502
Percent Distribution
Member/Non-Member
Non -
Member
Member
Total
r�
Total
48.3%
51.7%
100.0%
MON
59.9%
40.1%
100.0%
TUE
53.1%
46.9%
100.0%
WED
61.0%
39.0%
100.0%
f
THR
39.4%
60.6%
100.0%
FRI
50.4%
49.6%
100.0%
SAT
35.1%
64.9%
100.0%
SUN
33.7/0
66.3%
100.0%
astran o acr rt y
n�
MR1 Sebastian Golf Facility Evaluation
Page 7
�.., Figure 3
Sebastian Golf Facility
Member/Non-Member Starts by Day of Week 1990-1991
P"
r -n
13
12
11
10
9
8
7
6
5
4
3
2
1
0
MON TUE WED THR FRI SAT SUN
DAY OF WEEK [rnwkd3D1
® MEMBER STARTS ® NON—MEMBER STARTS
Golf cars are extensively used at the Sebastian golf facility. Approximately 89 percent of all golf
starts use a golf car. 97 percent of all 18 -hole starts use golf cars as compared to 56 percent of all
9 -hole starts. See Table 5. Walking is generally allowed after 1:00 p.m. during the season and on
weekends and holidays all year.
Table 5
Sebastian Golf Facility
Golf Car Usage 1990-1991
Golf Car Walk Total
Total Starts 65,422 8,347 73,769
18 -Hole 56,783 1,671 58,454
9 -Hole 8,639 6,677 15,316
Percent Distributon
9 -Hole and 18 Hole Starts
Golf Car/ Walking Starts
Golf Car Walk Total
Total Starts 88.7% 11.3% 100.0%
18 -Hole 97.1% 2.9% 100.0%
9 -Hole 56.4% 43.6% 100.0%
r-1
Sebastian Golf FacTlity
Golf Car
Walk
Total
Total Starts
100.0%
100.0%
100.00/6
18 -Hole
86.8%
20.0%
79.2%
9 -Hole
13.2%
80.0%
20.8%
Percent Distributon
Golf Car/ Walking Starts
Golf Car Walk Total
Total Starts 88.7% 11.3% 100.0%
18 -Hole 97.1% 2.9% 100.0%
9 -Hole 56.4% 43.6% 100.0%
r-1
Sebastian Golf FacTlity
Sebastian Golf Facility Evaluation
Page 8
40' To increase total play at the facility, management should consider programs to increase off-season
play during the June through October period. This could be accomplished by more direct
marketing to the public in the off-season and by offering programs for Sebastian and adjacent area
residents currently not taking advantage of the facility. Such promotion should be directed to all
segments of the community with emphasis on the senior golfer and could include additional league
play, mixed play, beginning senior lessons, golf clinics, etc. Management should review in greater
detail play patterns on weekends, both in -season and off-season to increase utilization of the facility
on a year round basis.
P"
FACILITY RATE STRUCTURE
Tables 6, 7, 8 and 9 present a summary of current membership, greens fees and golf car rates at
the Sebastian facility and other public access facilities in Indian River and Brevard Counties.
Greens Fees and Golf Car Rates
In -season, 18 -hole greens fees at the Sebastian facility are $28.00 including golf car (7:00 a.m. to
1:00 p.m.). Seasonal rates are stepped with one increase between November 15 to December 14,
a second increase between December 15 and January 14 and full season rates between January
15 and April 14. Off-season rates are $16.50 weekdays and $18.50 weekends (including golf car).
There are no preferential resident rates. See Table 6. The public fee structure is somewhat
complicated but appears to encourage play during the pre -season period and during the soft period
of the day (mid-afternoon). Greens fee rates fall in the mid-range of the most directly comparable
area publicly owned facilities.
Sand Ridge Golf Course in Vero Beach (Indian River County facility) has seasonal rates of $25-29
and off-season rates of $16-$18.50 (car included). Total play was estimated at 70,000 18 -hole
equivalent rounds last year. Sand Ridge offers no memberships. See Table 7.
The new Habitat golf facility (opened October 14, 1991) is located about 8 miles north of the
,� Sebastian facility. The facility is owned by Brevard County. It has established seasonal rates at
$23-30 (resident/non-resident) and off-season rates of $20-$24.
City of Melbourne facilities (Melbourne Goff and Country Club and Harbor City) offer rates of $17-21
throughout the year. Both facilities accommodate over 70,000 rounds of play, with member play
constituting an estimated 50 percent of total play.
Greens fee rate increases at other facilities between the 1990-91 and 1991-92 seasons were
reviewed to determine market rate sensitivity. In almost all cases, public greens fees remained the
same or increased marginally ($1.00-1.50 per round) over the two year period . In discussions with
golf course managers, it was indicated that due to the lingering recession, greens fees were
maintained at levels comparable to the previous year. Volume of play has remained relatively level
over the past two years.
�+ Golf car fees are included in the public greens fee rates at the Sebastian facility. A similar policy is
in place at the Sand Ridge facility and a number of privately owned daily fee facilities in Indian River
and Brevard Counties. Car fees for members are $8 for 18 holes and $4 for nine holes year-round.
Car fees for members at other regulation length facilities range between $7 and $8 (18 -hole rate).
Thus, Sebastian golf car rates are at the current market level.
r=, Sebastian Goff Facility Evaluation
Page 9
r"n
Mq+
Table 6
Greens Fees, Membership Rates and Golf Car Fees 1990-1991
City of Sebastian Golf Facility
Annual
Percent
Type
1990
1991
Change
Greens Fees
Non -Member including Cart
18 -Holes
Nov 15 -Dec 14 Daily before 1:00 pm
$18.00
$18.50
2.8%
r-,
Dec 15 -Jan 14 Daily before 1:00 pm
22.00
22.50
2.3%
Jan 15 -Apr 14 Daily before 1:00 pm
27.00
28.00
3.7%
r'
Apr 15 -Nov 14 Weekday
16.00
16.50
3.1%
Apr 15 -Nov 14 Weekend
18.00
18.50
2.8%
9 -Holes
r n
Nov 15 -Dec 14 Daily before 1:00 pm
$11.00
$11.50
4.5%
Dec 15 -Jan 14 Daily before 1:00 pm
15.00
16.50
10.0%
Jan 15 -Apr 14 Daily before 1:00 pm
NA
NA
Apr 15 -Nov 14 Weekday
10.00
10.50
5.0%
Apr 15 -Nov 14 Weekend
9.00
11.50
27.8%
Memberships
Resident
Single Annual
$550
$550
0.0%
rIn
Family Annual
700
700
0.0%
Non -Resident
Single Annual
$700
$800
14.3%
Family Annual
900
1,000
11.1%
Golf Car Fees - Members
18 -Holes
Nov 15 -Dec 14 Daily before 1:00 pm
$8.00
$8.00
0.0%
Dec 15 -Jan 14 Daily before 1:00 pm
8.00
8.00
0.0%
Jan 15 -Apr 14 Daily before 1:00 pm
8.00
8.00
0.0%
Apr 15 -Nov 14 Weekday
6.00
8.00
33.3%
Apr 15 -Nov 14 Weekend
6.00
8.00
33.3%
9 -Holes
Nov 15 -Dec 14 Daily
$5.00
$4.00
-20.0%
Dec 15 -Jan 14 Daily
5.00
4.00
-20.0%
�1
Jan 15 -Apr 14 Daily
5.00
4.00
-20.0%
Apr 15 -Nov 14 Weekday
5.00
4.00
-20.0%
Apr 15 -Nov 14 Weekend
5.00
4.00
-20.0%
City of Sobastian
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Sebastian Golf Facility Evaluation
Page 10
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Fln Sebastian Goff Facility Evaluation
Page 11
Membership Fees
Single membership rates at the Sebastian facility for the 1991-1992 season are $550-800
rll�
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(resident/non-resident). Double memberships (two person family) are $700-1,000. Additional family
persons are $150. Based on Sebastian facility records, members averaged 70 rounds of play last
year. This equates to an average member fee of $12.81 per round as compared to an annual
average fee of $15.46 for the general public. Average annual revenue per round for all golfers was
'
$14.18 (fee plus car allocation). See Table 8. On a seasonal basis, members average $11.95 per
round in -season as compared to $15.55 for the public. In the off-season, average member fees are
$14.22 per round as compared to 15.36 for the public.
Table 8
Comparison of Rounds and Fees 1990-1991
City of Sebastian Golf Facility
F19
Member Non -Member
Total
Total Starts 35,643 38,126
73,769
Total Fees $456,619 $589,443
$1,046,062
r
Greens Fees 0 339,903
339,903
Car Fees' 224,726 249,540
474,266
Memberships 231,893 0
231,893
n
Per Start -Annual $12.81 $15.46
$14.18
Greens Fees 8.92
4.61
Car Fees' 6.30 6.55
6.43
r*n
Memberships 6.51
3.14
Seasonal Analysis
n
Starts
November -April 22,183 19,690
41,873
May -October 13,460 18,436
31,896
Total Fees
November -April $265,183 $306,248
$571,431
May -October 191,435 283,195
474,631
Greens Fees
n
November -April $0 $198,970
$198,970
May -October 0 140,933
140,933
Car Fees'
November -April $120,861 $107,278
$228,139
May -October 103,865 142,262
246,127
Memberships"
November -April $144,322 $0
$144,322
n
May -October 87,571 0
87,571
.,
Per Start -Seasonal
November -April $11.95 $15.55
$13.65
r i
May -October 14.22 15.36
14.88
• Allocated equally on a monthly start/fee basis
' • Allocated monthly on a seasonal round basis
City o astran
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Sebastian Golf Facility Evaluation
Page 12
Table 9 on the following page presents current resident and non-resident membership fees at
publicly owned facilities in Indian River and Brevard County. Sebastian memberships rates are
somewhat lower for residents than other publicly owned facilities although the comparison is not
direct. For example, the two new regulation length facilities owned by Brevard County (Habitat and
the Savannahs) have established an eight month single membership rate of $475-600 (resident/non-
resident) and $725-800 for a double membership. Annualized, these rates exceed the Sebastian
rates which allow play throughout the year including the winter season. The City of Cocoa Beach
has instituted a surcharge option on memberships. The member can elect a lower fee and pay a
surcharge of $1-2 per round or pay a higher membership rate.
�' FEE RECOMMENDATIONS
Greens fees at the Sebastian facility are at an appropriate level given the existing public golf market.
It is important that the Sebastian facility continue to provide a quality golf experience to remain
competitive particularly with the opening of the new course at Habitat. In addition, an 18 -hole
expansion is planned for the Sand Ridge facility in Vero Beach. When this facility opens, additional
,.., competition will be felt by Sebastian in the short term. Another private access facility is being
planned at Barefoot Bay to the north of Sebastian. This could impact play currently derived from
Barefoot Bay area residents.
Given the resident population density in Sebastian and surrounding areas, the predominant off-
season market lies in Sebastian and to the north in Brevard County (Palm Bay and Melbourne).
Any public golf promotion programs should be concentrated in these areas.
In the future, memberships are going to be in greater demand and it is likely that residents unable
to access membership will be disgruntled. Member play constitutes slightly under 50 percent of
rl" total play. It is usually difficult to increase membership rates to reflect inflation and the increasing
cost of operations and maintenance. At some point in the future, the City may wish to consider a
maintenance fee of $3-5 per round along with the annual membership fee. This 'Maintenance Fee'
will assure a method of addressing the increased cost of operations and the higher level of play
IN enjoyed by members (70 rounds per year). It would be likely be easier to increase the maintenance
fee slightly on a regular basis, than to substantially increase membership fees. This should not be
construed as a recommendation to freeze membership fees; but as a way to reflect increasing costs
r111 and, at the same time, preserve memberships.
Given the current greens fees and membership rate structure and annual play patterns, it is
important to maintain a balance between member and non-member play. Non-members should
understand that they are able to secure tee times and are welcome at the facility. Through its
marketing and promotion programs and level of service, management will be able to reinforce this
policy.
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Sebastian Golf Facility Evaluation
Page 13
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Sebastian Goff Facility Evaluation
Page 14
evIl GOLF OPERATIONS EVALUATION
A,
STARTING SYSTEM / STARTERS / RANGERS
This section of the report presents recommendations for the various components of the golf
operation.
Observations
Management has been utilizing a computer based tee time reservation system on a trial
basis. The system utilizes 4 telephone lines. It appears to be a modern, up-to-date system;
the evaluators witnessed tee times being taken while employees continued to perform their
regular duties without interruption. From the limited amount of time that was spent
�-+ observing the starting system, it seems to provide effective and efficient service, and the
counter personnel like the system. In addition, the system can generate regular activity
reports which will be useful to management.
M" At the present time, two out of every three tee times are reserved for members. Starting
times are taken at 7 -minute intervals, and management states that even at this close interval,
play is usually kept to a 4 1/2 hour pace, which is commendable. Starters and rangers are
on duty at all times which leads to excellent control and monitoring of play. The city should
be congratulated on their commitment to management of play.
Recommendations
Starting times should be issued on a 50-50 basis, with one-half of the starting times going
to members, and one-half to open play. This ratio approximates the current ratio of
`"l member/open play (48-52 percent). It is important that starting times be available to the
public so as to increase course utilization, generate the greater greens fee, and attract new
players.
GOLF CARS
Observations
There are 86 electric golf cars at Sebastian Goff Course; the rental fees for 18 holes are $12
in off-season, $16 in season. The 86 golf cars generated an excellent revenue of $474,000,
or $5,500 per cars in 1990-1991, well above the national average of $2,500 per car.
Although the cars have a decent appearance considering their age, a new fleet is needed,
On and plans have been made to replace the fleet on a rotating basis.
Recommendations
The city should proceed with plans to replace the fleet on a rotary basis. The city should
be commended on their golf cars revenue. This reflects the fact that 89 percent of the
players use golf cars. Taking this into consideration, golf cars offer an excellent
communication vehicle for the golf course. Promotions in the golf shop, special events,
advertising of tournaments or other promotional items can be advertised effectively on the
golf cars and reach 90 percent of the players. Some small advertising signs, available in
the market, should be purchased for this purpose.
Sebastian Goff Facility Evaluation
Page 15
GOLF RANGE
f19 Observations
The golf range is limited and generates income of approximately $18,000. A large basket of
balls costs $1.50 and a small basket is $.75. This equates to approximately 2.5 cents per
ball rental, which is below the industry average of 4 to 5 cents per ball. The driving range
is located between holes 1 and 18. Currently, a few tee markers are placed randomly on
the tee.
Recommendatlons
Tee enlargement is recommended; the area should be leveled and the tee deepened if
possible. The existing bunker at the practice green should be eliminated. After tee
renovation, tee management should take place. Rope dividers should be utilized, and
should be moved daily. Some type of directional markers should be placed between teeing
"' areas, and ample space left between areas. Ball prices should be increased over time, to
industry standard, at 4 to 5 cents per ball. If this cannot be done comfortably in the off-
season, then ball prices should be increased to industry standard during the season.
Management may wish to consider a discounted range fee with the purchase of an annual
card which would allow purchase of say, 50 large buckets.
For liability reasons, signs should be placed along both edges of the driving range to
inform golfers not to enter the area and a fence should be constructed. Planting can be
installed to hide the fence, and wall the driving range from the golf course. If the driving
range is going to continue to operate with used range balls, these balls should be kept in
-+ excellent condition. All bad balls should be culled out on a regular basis.
MERCHANDISING
Observations
The golf merchandising operation is owned by the city, and the golf manager does all the
purchasing. According to management figures, pro shop sales were approximately $63,000
in 1990, and the cost of goods sold was approximately $43,000, which enabled the golf
course to maintain a 32% gross profit margin. This is an excellent profit margin as compared
to the national average which is approximately 22%.
Members receive a 20% discount on merchandise in the golf shop. According to city data,
38% of the sales are in hard goods and 62% are in soft goods. See Table 10. The golf
shop merchandise is fairly well displayed, taking into account the limited space in the shop.
At present, traffic flow through the golf shop is not conducive to merchandise sales; one
may enter the golf shop, turn to the right or the left, purchase one's fees, and not see the
�+ merchandise on display. For a facility that has so much retired play, jar balls are
conspicuously absent. Presently, jar balls are bagged in dozens; there is concern about
theft of jar balls.
The directional sign to the 1st and 10th tee located outside the golf shop contains an
advertisement by a local golf discounter. In addition, the scorecard contains an
advertisement by another discounter.
MIN
`1n Sebastian Golf Facility Evaluation
Page 16
r�
Table 10
Golf Shop Gross Revenues 1990-1991
1989-90
1990-91
Item
Actual
Actual
Total Sales
$62,725
$62,464
r,q)
Golf Balls
17,991
15,168
Golf Clubs
4,469
4,765
Bags and Accesories
4,487
4,019
Men's Soft Goods
8,602
9,437
Ladies Soft Goods
7,623
8,691
Gloves
8,026
8,772
Shoes
6,736
6,724
n
Hats
3,639
3,707
Miscellaneous
1,152
1,181
Summary of Sales
Hard Goods
26,947
23,952
Soft Goods
35,778
38,512
Owl
Percent Distribution
Total Sales
100.0%
100.0%
Hard Goods
43.0%
38.3%
Soft Goods
57.0%
61.7%
Sales per Start
Total Starts
77,152
73,769
r
Total Sales
$0.81
$0.85
Hard Goods
$0.35
$0.32
Soft Goods
$0.46
$0.52
City of astian
ell
Recommendations
The golf shop should be considered for renovation. When this is done, the counter should
be situated so as to have the manager's office directly off of the counter area, so that
customer transactions can be witnessed and be within earshot. Also, the counter and the
traffic pattern should guide the clientele through the golf shop to purchase their fees and
exit the golf shop through the merchandise.
The price board should be moved to the open wall behind the service counter. The wall
which the price board currently occupies is an excellent location for merchandise display,
and should be so utilized. Slatwall should be incorporated in the golf shop. Slatwall
provides many display options. If in the future, when the golf shop is remodeled, slatwall
can be utilized in lieu of dry wall. The studs are simply covered with slatwall as the final
finishing material.
P"
P19
Sebastian Goff Facility Evaluation
Page 17
Specific renovations for merchandising were provided to management. These included both
hard and soft good recommendations.
The golf discounter advertising sign and scorecard advertisement should be removed as
soon as possible. The city is in the merchandising business and should not advertise the
competition. The golf manager should visit the off -course stores on a regular basis and
check their merchandising thrust and pricing.
The manager should seek out companies that sell their products only through green grass
�+ golf shops. Management should survey whether a 20% discount on merchandise to
members is preferred over competitively pricing all merchandise to meet and beat the
competition. The golf manager should attend the P.G.A. Merchandise Show on a regular
basis so as to keep up with new items offered.
PROMOTION
'`' Observations
A modest level of promotion of the facility occurs at the present. This consists of
advertising and participation by the manager in various local service and charitable
organizations.
Recommendations
Because most of the play comes from retired seniors, promotion should be geared directly
toward them. Emphasis in all areas, from food service to golf course should be placed on
the player who is more advanced in years. Beginning senior golf leagues, senior mixed
couples leagues and outings should be offered. Small competitions, regardless of the
amount of participation, should be offered. Senior scrambles, mixed senior tournaments,
mens' and ladies' senior club championships, ladies' and mens' handicapped events and
championships should all be offered. A hole -in -one board should be displayed.
Management should move quickly on a newsletter, and use many of the senior players'
names in the newsletter. Every attempt should be made to get the players' names out in
front of the public, to promote the senior players very aggressively, and to provide programs
specifically for them at Sebastian golf course.
GOLF LESSONS
Observations
Goff lessons are offered at the facility by the manager.
Recommendations
It is recommended that golf lessons be pursued more aggressively to attract additional
outside play. These activities could include beginning golf lessons (all age groups), as well
as specific lessons geared toward seniors.
0"
. r"
r
Sebastian Golf Facility Evaluation
Page 18
OTHER SERVICES
Golf Club Repair
Observations
r-4
Club repair is offered at the facility by the manager.
Recommendations
Club repair should be promoted more aggressively. Emergency golf club repairs should be
offered; 24-hour re -gripping and whipping is an excellent service and should be offered and
advertised as such. This will serve to develop a ofull service' golf operation.
Pull Carts
Observations
Currently there are 8 pull carts on site and management feels that this is an adequate
number. The charge for the pull carts is $2.04 for 18 or 9 holes; this is in line with industry
standards. The pull carts are old and do not present a very attractive service.
Recommendations
' The old pull carts should be discarded or auctioned, and a dozen new wide -tire pull carts
should be purchased; they should be maintained as an attractive service, and lined up
Owl neatly in a visible location.
Rental Clubs
Observations
Rental clubs are offered; they are all new. The charge is $15. Lost clubs are charged out
P14 at a rate of $45 for a lost club. Rental clubs are secured with a credit card.
Recommendations
'_' Although the charge of $15 for a rental set seems relatively high, it is understandable in this
situation; most people are going to have their own clubs. If they forget a set of golf clubs
or they are here on vacation, they will not hesitate to pay the $15 rental fee. The rental
On clubs are an attractive service at this time, and in order to maintain the $15 rental fee, they
should be well-maintained.
Club Storage
Observations
Sebastian Golf Course has club storage; there are 63 lockers all of which, according to
management, are rented at a charge of $40 per bag or $80 for a 2 bag locker. Management
has plans to better utilize this area with modular storage units.
n-+
Id"
Sebastian Golf Facility Evaluation
Page 19
Recommendations
P-4 Plans for upgrading should be implemented. It is a good profit center for the city, and there
is a waiting list, according to management.
SNACK BAR OPERATION
Observations
The snack bar operation has recently been contracted to an outside vendor. The contractor
pays the city 10% of the alcohol sales, $200 per month rent, and 60% of the facility's total
electric bill. This electric payment will be approximately $11,000 in 1991. The contractor
provides the city with an audited statement on a quarterly basis. The snack bar offers an
extensive menu including tuna, turkey and other low-fat items which can be consumed by
players who may be on a restricted diet. The snack bar presents an attractive service and
all employees were friendly when observed during their contacts with patrons.
There is an extensive take-out menu, and an extensive eat -in menu, including breakfast.
There are many alcohol-related signs in the snack bar and an emphasis seems to be placed
�., on alcohol consumption. However, alcohol is only offered to members and golfers. Pitchers
are offered for beer consumption.
Recommendations
r'+
The City should monitor the financial performance of the food and beverage operation on a
regular basis to evaluate its contribution to revenue. The city should be careful about the
r=9 apparent emphasis placed on alcohol consumption. Many golf operations have ceased the
practice of offering pitchers of beer because of the potential of over -indulgence. The city
should be sure that the concessionaire has adequate liquor liability insurance, and that all
elon employees of the concessionaire have adequate training in alcohol awareness. The city
should require the contractor to develop a policy which will address how over -consumption
by an individual will be handled.
rW1 STAFF AND ADMINISTRATION
GOLF SHOP STAFF
Observations
The golf shop employs two full-time people including the manager, and four clerks. Most of
`R the golf shop attendants are seniors and the starters and rangers are retired.
`I' The employees do not wear name tags, and do not have uniforms. The employees do have
rlw+ shirts issued by the city; however, any color can be worn on any given day. Cart
attendants have special shirts. Starters and rangers wear caps.
r-19 The golf shop staff receive no playing privileges.
P"
FOR
Sebastian Golf Facility Evaluation
Page 20
Recommendations
All staff should be identified. Uniforms and name tags give a professional image and make
an employee readily visible. This leads to exceptional customer service. Name tags give
patrons the ability to call on and speak to the employees by name. All employees should
be dressed in uniform; if one color cannot be agreed upon, then employees should wear
the same color shirt on any given day. Slacks could be a standard, neutral color,
purchased by the employee.
Employees should be granted playing privileges on a very controlled basis, and should be
encouraged to play. There is tremendous advantage to having employees who play golf,
working In the golf shop. When employees are on the golf course, they can spot liability
problems and relay play conditions. Conversely, K personnel do not play goff nor have any
knowledge of the course, it would be very difficult for them to determine where patrons are
located at any given time (e.g. in the case of an emergency on the course, when it would
be necessary to direct emergency vehicles to a specific area). If playing privileges cannot
be offered, all golf shop staff should become familiar with the golf course so as to be able
to locate players in the case of emergencies. All golf operations personnel should be
trained in CPR so as to be able to offer assistance should the occasion arise.
ADMINISTRATION
`_' Observations
r
Every greens fee is rung on a numbered ticket and each patron signs. The patron must
r1+ produce a copy of this ticket to the starter before he plays, and starters are on duty 100°
of the time. This is an excellent method of control.
/Awl Employees basically make one money drop in a locked bag into a safe, at the end of their
shift. The police department sends an officer to the facility in the morning to collect the
previous day's deposits which are inside a locked bag. The officer has no way of knowing
the amount of the deposit. The police officer drops the deposit into a bank night deposit
r1n box and does not wait for the money to be counted.
The safe is small and not secured in any manner, and it could easily be carried out of the
golf shop. The cash register is out -dated; the golf shop staff has to memorize which key
number to push in relation to the type of round/fee purchased. It is extremely complicated to
punch up a green fee, and mistakes can easily take place.
Recommendations
Although the signing of pre -numbered tickets and the policy of presenting this ticket to the
�-+ starter is an excellent idea, it is recommended that the manager or the manager's assistant
perform spot audits on a daily basis on the cash register; readings should be taken
randomly and the cash register balanced to see that overages or shortages do not exist.
Random managerial spot -audits are the greatest deterrent to employee theft.
All rain checks and voids should be set aside, approved and initialed by the manager.
Voids and rain checks should include a clear explanation. If a void occurs, the next ticket
'`' ring should be the corrected ring.
P"
M"
P,
Sebastian Golf Facility Evaluation
Page 21 -
Large sums of money should not be left at the facility overnight; and during busy days,
deposits once or twice a day should be made. Goff shop attendants should not balance
their own shift; this is not standard business practice. Goff shop attendants, when closing
at night, should simply count out the $150 change for the next morning and drop the
balance into the safe. During their shift, when employees reach a dollar amount of $500
plus the change, they should make a drop into the safe. However, the money should not
be counted.
Deposit tickets should be prepared by the golf course manager or assistant manager, not
by the golf shop staff. The deposit should be courted in front of the officer before it leaves
the facility, or the police officer should watt until the teller at the bank counts the deposit
and the officer receives a teller slip. Night deposits are a insecure way of dropping large
sums of money. If the police cannot watt for the deposit to be counted, then arrangements
should be made with the bank to call the course with the count on the same day. The safe
should be bolted to the floor.
A new, up-to-date cash register needs to be purchased for the golf course. New cash
registers are relatively inexpensive and can provide a wide range of options.
TRAINING PROGRAM
Observations
Currently there is no formal training program at Sebastian Goff Course.
"9 Recommendations
A performance-based training program should be developed by the manager and utilized for
all areas of the facility from maintenance to starters and rangers.
MANAGER
r-, Observations
The manager of the golf course is a member of the Professional Golfers' Association of
America; his membership plaque should be displayed where the public can see it so as to
give. more credibility to the operation. It should be noted that the manager of the facility
directs the operation of the entire facility; he supervises the maintenance of the facility, the
snack bar operation, the golf shop operation, golf cars and he manages play on the golf
course. The manager of the golf facility seems very personable; he was candid and
forthright about the operation of the facility and met extensively with the evaluation team.
M Recommendations
The manager should continue to actively supervise all operations of the facility with particular
r19emphasis on maintenance until such time as the facility meets management standards.
r"
F"
Sebastian Golf Facility Evaluation
Page 22
LONG RANGE PLANNING
^" Observations
A long range plan has been developed by the golf manager and greens superintendent; it is
impressive.
Recommendations
n Continue to implement the long range plan that was developed and combine it with key
recommendations of this golf course evaluation and an excellent long range plan will be in
�+ place.
n
GOLF ADVISORY GROUP
n Observations
Currently there is no golf advisory group.
Recommendations
Do not form one. Goff advisory groups tend to become self-serving; they can hinder the
effective management of the golf operation, and render the making of good business
decisions difficult.
n
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Sebastian Golf Facility Evaluation
Page 23
GOLF FACILITY EVALUATION
GOLF COURSE
Observations
The golf course is very well-designed. However, the level of maintenance falls short of the
mark. At the time of our site visit, substantial detailing and trimming throughout the course
was needed.
Many of the bunkers were not trimmed or edged; they lacked sand, and/or the faces were
simply exposed dirt, and were eroding. A number of the bunkers on the golf course have
been laid to waste and have been overgrown with weeds or have been indiscriminately
eliminated. A number of the ponds were not edged, and weed removal had not taken place
�•, around the ponds. Clippings from mowing were piled along the edges of roughs. Run-off
areas were noticeable at the ends of cart paths.
Because of the drought in recent years, drainage problems had not been apparent. With
the recent rains, they are now becoming noticeable on the golf course. In addition,
irrigation leaks have been a consistent problem over the years.
The greens and fairway mowers do not seem to be adjusted properly. They seem to be
either skipping a cut or some sections of the unit are mowing higher than others.
Chemicals are stored securely and separately.
Recommendations
Detail and trimming on the golf course should become a priority. Pre -emergence and post -
emergence chemicals should be utilized for weeds and we understand that this program is
now in effect. Attention must be paid to mowing the weeds and trimming around trees.
Flag sticks, ball washers, tee markers and flags should be kept clean and in good repair.
r., We were told they were replaced annually.
Now is a good time to identify and address poor drainage areas. Bunkers should be
trimmed and edged and low -maintenance bunkers should be developed. This method
would pull the capes down into the bunker. Sharp faces would be eliminated, smoothed
down into the bunker so as to enable maintenance to maintain 90% of the bunker with
automated equipment. This method leaves the sand basically in the bottom of the bunker.
�^+ Care must be taken that the bunker is not taken from view, and the bunker can be identified
either by the mound of the bunker or a thin line of sand.
Pond edges should be trimmed and cattails removed. We understand the 1991-92 budget
provides for continued work on golf course pond management. Clippings should not be
piled at the edges of roughs.
P"
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Sebastian Goff Facility Evaluation
Page 24
We understand the serious drainage problem on #7 is being addressed. The cart path on
#7 should be taken up the left side of the fairway and around the back of the green. Also,
FM the end of the pond on the left should be dressed up and an overpass should be made so
the cars can get over the creek.
The long range plan for sand traps should be implemented. On #12, all of the bunkers
should be re-established. By indiscriminately eliminating bunkers, the original architectural
design of the golf course is jeopardized and feel of the course is lost. All bunkers that have
been left to deteriorate should be re-established and those sodded -in should be re-
evaluated to see if they should be re-established in accordance with the original design of
the golf course.
The manager indicates that many of the irrigation leaks occur at corner or 'tee' joints. Each
time a leak is found it should be determined whether the line was properly installed; if not, it
should be reinstalled. if an inordinate number of leaks continue, it would be wise to call an
irrigation expert to determine why the leaks are occurring and what repair methods would
result in permanent repair. Irrigation leaks are a natural occurrence in the maintenance of a
golf course; however if a problem continues to come up in the same area, then perhaps
something was lacking in the initial installation and that should be investigated. We
,.., understand that the irrigation wiring system is in need of repair. To date a the system has
been rewired on a number of the holes, and management is planning rewiring the remainder
of the system utilizing maintenance staff.
Signs should be removed from the old snack bar at #10, now utilized for storage, unless
there are plans to re -open this as a snack bar in the near future.
�-+ The mowers should be adjusted property. We understand that an additional mower is being
purchased under the new budget.
,'wool Management has developed a long range plan for maintenance of greens, tees, fairways
and bunkers. The plan also addresses the irrigation system, drainage, golf car paths and
structural maintenance. The plan is well developed and should serve as the basis for the
ongoing maintenance program at the Sebastian facility. We recommend that specific
Improvement projects be identified for a three year period on an annual basis. The long
range plan should be reviewed and updated annually in advance of the city's regular
budget cycle.
The manager and the greens superintendent should play the golf course at least twice a
month, and regularly inspect the golf course the other two weeks of the month to monitor
maintenance practices. Maintenance personnel should be encouraged to play the golf
course so they may develop some compassion for the golfers and understand playing
conditions.
r.,
Sebastian Goff Facility Evaluation
Page 25
MAINTENANCE
Observations
The greens superintendent is a member of the Goff Course Superintendent's Association of
America (GSCAA).
Maintenance employs nine full-time people: one greens superintendent, one assistant greens
superintendent, one mechanic, six other employees, one part-time mechanic, and one part-
time laborer. The 1991-91 budget will add one full-time maintenance worker and three part-
time maintenance workers.
r�
The total maintenance budget for 1991-92 is $444,000. Of the total, personnel is $266,000,
or 60 percent of the total. Based on a 1990 report prepared by the Golf Course
Superintendent's Association of America, the average maintenance expense at municipal
r-, courses in Florida was $397,750. Allowing for inflation and variations within the state, the
overall maintenance budget is in line with the statewide average. Management indicated it
' is satisfied with the level of staff and the equipment provided in the current budget.
The maintenance area, at the time of our site visit was unorganized and appeared to be in
disarray. There were many unused and discarded items at the maintenance facility. It does
not give the same appearance as the clubhouse and surrounding grounds.
Recommendations
,., Full-time maintenance people should be well-trained and each full-time person put in charge
of a certain area of the golf course, i.e. one person could be put in charge of tees, another
in charge of fairways, another in charge of greens, another roughs, another approaches,
and so on. We understand this is being done. It is important that all employees
understand the standards that are established for golf course maintenance (as identified in
the long range plan). An extensive performance-based training program should be put in
place so that standards can be maintained. In this way, the golf course can display an
r••, appearance relative to the excellent design and maintenance dollars expended.
Maintenance represents the largest expense component of a golf facility operation, and the
effectiveness of course maintenance directly impacts the facility's marketability and golfer
^°ice satisfaction. Regular monitoring of the maintenance program and expenses is
recommended.
An all-out effort should be made to clean up the maintenance area. All discarded or junked
items should either be trashed or auctioned. Drainage tile and pipe laying in disarray
around the maintenance facility should be stacked neatly. Putting the maintenance area in
^� order would demonstrate pride in the facility.
n
Rol
f"
MR
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Sebastian Golf Facility Evaluation
Page 26
CLUBHOUSE
'a` Observations
The clubhouse is well maintained and attractive. The food service area is neat and well
located, as well as is the golf shop. Restrooms are cleaned by a contract service. Walls
and fixtures seem to be dirty, and attention has not been given to detail. Toilets in the
ladies' room will not flush. Management wishes to eliminate the carpet from the ladies'
room. The scoreboard in its existing condition is unattractive.
Recommendations
�+ The contractor should be instructed to do a better job of restroom cleaning. It does not
suffice to have the restrooms cleaned once in the evening by the contractor, particularly
during times of high activity. A checklist should be followed and the restrooms should be
inspected regularly to see that they are in clean condition at all times. Quarry the should
not be used in the ladies' room; when the carpet is removed, a non -slip, granite tile product
should be installed. We understand this improvement is budgeted. Toilets should be
repaired so they will flush. The scoreboard located at the clubhouse should be painted
consistent with the building color scheme.
PARKING LOT & ENTRANCE
Observations
There is a need for additional signage to the golf course along and off the major highways;
it can be very difficult to find the course from the main highways, as was experienced during
this evaluation. The main entrance sign to the facility is attractive and well maintained; the
main entrance and parking lot are in excellent condition, newly paved and striped; they
�., provide an excellent impression of the facility.
Recommendations
`� Better directional signs should be placed on the major highways and arteries to the golf
course. Management may wish to consider adding signs at the city boundary line along all
,Its major roadways. At major intersections inside the city, additional directions should be
provided. Once off the major arteries, directional signs should be located along the route to
direct new golfers to the course.
M
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Sebastian Golf Facility Evaluation
Page 27
"I" GOLF OPERATIONS FINANCIAL EVALUATION
This section reviews the historical and current financial performance of the Sebastian golf facility.
Data was reviewed for the 4 year period 1987-1991 as well as for the 1991-92 budget period.
Comparative data was obtained from the City of Sebastian budget documents for the 1987-1991
,.� periods. Table 11 presents operating revenues and expenses of the five year period. Total
operating revenues for 1990-91 were $1.12 million. Total operating expenses were $1.0 million,
including charges for depreciation of building and equipment. Total operating revenues grew at an
annual rate of 6.4 percent between 1987 and 1991. Total operating expenses grew at an annual
I-, rate of 13 percent.
IS) Table 11
Annual Operating Revenues and Expenses 1987-1991
r -'M City of Sebastian Golf Facility
AMM Figure 4
Operating Revenues and Expenses 1988-1992
Sebastian Golf Facility
1987-88
1988-89
1989-90
1990-91
1991-92
Actual
Actual
Actual
Actual
Budget
OPERATING REVENUES
$936,341
$1,027,146
$1,138,614
$1,116,002
$1,165,500
OPERATING EXPENSES
775,909
831,655
906,154
1,009,582
1,058,210
NET OPERATING INCOME
$160,432
$195,491
$232,460
$106,420
$107,290
c
0.5
Percent Distribution
0.4
0.3
OPERATING REVENUES
100.0%
100.0%
100.0%
100.0%
100.0%
Pn
OPERATING EXPENSES
82.90/a
81.00/0
79.6%
90.5%
90.8%
NET OPERATING REVENUE
17.1%
19.0%
20.4%
9.5%
9.2%
City ofSobastian
AMM Figure 4
Operating Revenues and Expenses 1988-1992
Sebastian Golf Facility
87-88(A) 88-89(A) 89-90(A) 90-91(A) 91-92(8)
IM
RE8891
"lit OPERATING REVENUES ® OPERATING EXPENSES
r"
1W
1.3
1.2
1.1
„f
t
0.9
0.8
r
J C
0.7
J-
o =
0.6
c
0.5
0.4
0.3
0.2
0.1
0
87-88(A) 88-89(A) 89-90(A) 90-91(A) 91-92(8)
IM
RE8891
"lit OPERATING REVENUES ® OPERATING EXPENSES
r"
1W
Sebastian Goff Facility Evaluation
Page 28
r"M GOLF OPERATIONS REVENUES
Of total operating revenues, 94 percent are derived from greens fees, membership fees, and golf
�+ car fees. Golf car revenues represent of 43 percent of total revenues, greens fees 31 percent, and
memberships 21 percent.
``t, Goff cars, with revenues of $474,000, generate an excellent revenue of in excess of $6,000 per car.
Greens fees have grown consistently over the past four years, from $192,000 in 1987-88 to
$340,000 in FY 1990-91, an annual increase of 17 percent. Membership revenues have grown
modestly over the past four years averaging 8.7 percent over the four year period. Overall,
operating revenues have increased at an annual rate of 6.4 percent.
Av� On an annual basis, revenues peak in November through March as a result of membership fees
,"P, due at the beginning of the winter season and the higher level of greens fees during the season.
Figure 5 presents major operating revenue sources for the last four years and the current budget
rn year. Table 12 on the following page provides detailed revenues for the 1998-1992 period.
Figure 5
Major Operating Revenue Sources 1988-92
�-1 Sebastian Goff Facility
1.2
87-B8(A) 88-89(A) 89-90(A) 90-91(A) 91-92(B)
MAJY8891
('q ® GREENS FEES ® MEMBERSHIPS ® CAR FEES
Net departmental revenues totalled $23,300 in 1990-91. With the leasing of the snack bar in the
1990-1991, the pro shop was the primary source of departmental income. Pro shop revenues have
averaged about $.86 per start which is below industry standards. Nevertheless, the pro shop has
performed well with a gross profit margin of from 29-32 percent over the past several years. This is
well above national average of about 22 percent. Revenues resulting from the leasing of the food
and beverage operation should be monitored during the next year to evaluate food and beverage
total contribution to revenues.
0.9
0.8
V, ..
0.7
� c
fs�
2
J
0.6
0.5
0.4
f '1
0.3
0.2
0.1
O
87-B8(A) 88-89(A) 89-90(A) 90-91(A) 91-92(B)
MAJY8891
('q ® GREENS FEES ® MEMBERSHIPS ® CAR FEES
Net departmental revenues totalled $23,300 in 1990-91. With the leasing of the snack bar in the
1990-1991, the pro shop was the primary source of departmental income. Pro shop revenues have
averaged about $.86 per start which is below industry standards. Nevertheless, the pro shop has
performed well with a gross profit margin of from 29-32 percent over the past several years. This is
well above national average of about 22 percent. Revenues resulting from the leasing of the food
and beverage operation should be monitored during the next year to evaluate food and beverage
total contribution to revenues.
r=,
Sebastian Goff Facility Evaluation
Page 29
Table 12
Detailed Revenues 1987-91
City of Sebastian Golf Facility
1987-88
1988-89
1989-90
1990-91
1991-92
Actual
Actual
Actual
Actual
Budget
GOLF COURSE REVENUES
Cart Fees
$456,801
$459,323
$472,666
$474,266
$515,000
Greens Fees
192,581
261,011
331,799
339,903
340,000
Driving Range
15,332
15,940
17,617
18,820
22,000
Locker Rental
174
200
286
60
150
Club Storage
2,154
2,320
2,250
2,520
2,500
Club Rental
1,416
2,062
2,075
1,974
2,000
Initiation Fees
4,650
8,454
6,300
6,450
2,100
Memberships
184,043
195,889
213,296
231,893
235,000
Jr. Golf Program
1,567
875
2,000
r�
Total Golf Course Revenues
857,151
945,199
1,047,856
1,076,761
1,120,750
DEPARTMENTAL REVENUES
,19
Pro Shop Sales
59,251
58,136
62,721
62,464
70,000
Food Sales
25,533
28,622
27,743
4,011
0
Beverage Sales
71,956
90,544
100,079
12,201
0
Total Departmental Revenues
156,740
177,302
190,543
78,676
70,000
DEPARTMENTAL COST OF SALES
Pro Shop COS
44,771
37,686
43,246
47,236
42,000
Food COS
17,779
23,624
23,406
2,753
0
Beverage COS
30,259
40,338
41,094
5,428
0
Total Departmental COS
92,809
101,648
107,746
55,417
42,000
DEPT REV -COS
63,931
75,654
82,797
23,259
28,000
MISCELANEOUS REVENUES
15,259
6,293
7,961
15,982
16,750
TOTAL OPERATING REVENUE
936,341
1,027,146
1,138,614
1,116,002
1,165,500
NON OPERATING REVENUE
r -i
Interest
49,616
54,068
54,000
61,632
65,000
Insurance Proceeds
5,492
TOTAL REVENUE
$985,957
$1,081,214
$1,192,614
$1,183,126
$1,230,500
City of SobasUan
M
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Sebastian Goff Facility Evaluation
Page 30
GOLF OPERATIONS EXPENSE
Figure 6 summarizes operating expenses by major category for the past for the past four years.
r=, Maintenance, administration, and golf cars constitute the major cash operating expenses. The 1990-
91 maintenance expense totalled $442,000, about 40 percent of operating revenues. Maintenance
expense increased at an average annual rate of 19 percent since 1987 with the major increases
occurring in personnel and supplies between 1989 and 1990.
Administration expense, which includes all staff (excluding maintenance), and professional and
general services represented 29 percent of operating revenues in 1990-91. Administration expenses
have increased at an annual rate of 16 percent between 1989 and 1991. Goff car expense has
remained level on an annual basis and represents about 8.0 percent of the annual expense budget.
Over the past four years operating expenses have increased at an annual rate of 13 percent. See
Table 13 on the following page.
M9
F"
SUMMARY
Figure 6
Major Operating Expenses 1988-1992
Sebastian Golf Facility
0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
O
87-88(A) 88-89(A) 89-90(A) 90-91(A) 91-92(8)
MAJX8891
® ADMINISTRATION ® MAINTENANCE
® GOLF CAR EXPENSE
The Sebastian golf facility has performed consistently on a financial basis over the past four years.
The golf operation is well managed on an overall basis. Total operating revenues have stabilized
over the past two years. In 1989-90 operating revenues totalled $1.14 million and in 1990-91 they
totalled $1.12 million. The 1991-92 budget projects operating revenues of $1.17 million. This
reflects a stabilized level of golf play. Total starts in 1989-90 were 77,000 as compared to 73,700 in
1990-91.
fel
U1 N
P�1
O
J c
O v
�^1
I�1
M9
F"
SUMMARY
Figure 6
Major Operating Expenses 1988-1992
Sebastian Golf Facility
0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
O
87-88(A) 88-89(A) 89-90(A) 90-91(A) 91-92(8)
MAJX8891
® ADMINISTRATION ® MAINTENANCE
® GOLF CAR EXPENSE
The Sebastian golf facility has performed consistently on a financial basis over the past four years.
The golf operation is well managed on an overall basis. Total operating revenues have stabilized
over the past two years. In 1989-90 operating revenues totalled $1.14 million and in 1990-91 they
totalled $1.12 million. The 1991-92 budget projects operating revenues of $1.17 million. This
reflects a stabilized level of golf play. Total starts in 1989-90 were 77,000 as compared to 73,700 in
1990-91.
rn
Sebastian Goff Facility Evaluation
Page 31
Over the past several years, personnel levels have been increased, particularly in the maintenance
area. There have been increased expense levels in supplies, services, and vehicles and equipment.
Rates have been increased only moderately for the 1991-92 season and are consistent with the
general market in the area. Given that revenues have grown at a rate of slightly over 6 percent
annually over the past four years and expenses at 13 percent, efforts should be directed to
increasing the level of play as recommended in previous sections of this report. With an improved
level of maintenance and an expanded marketing program to the public, the Sebastian facility
should be positioned to compete effectively with the new and existing comparable public golf
facilities in the Sebastian market area.
n
Table 13
Detailed Operating Expenses 1987-1991
City of Sebastian Golf Facility
1987-88
1988-89
1989-90
1990-91
1991-92
r�
Actual
Actual
Actual
Actual
Budget
OPERATING REVENUES
$936,341
$1,027,146
$1,138,614
$1,116,002
$1,165,500
OPERATING EXPENSES
Administration
221,219
245,531
262,409
322,500
346,770
Maintenance
280,916
312,430
387,595
442,611
443,690
Carts
65,673
61,951
45,550
67,348
97,750
Food & Beverage
39,836
39,348
42,600
7,123
0
r -i
Depreciation
168,265
172,395
168,000
170,000
170,000
TOTAL OPERATING EXPENSES
775,909
831,655
906,154
1,009,582
1,058,210
NET OPERATING INCOME
$160,432
$195,491
$232,460
$106,420
$107,290
Percent Distibution
OPERATING REVENUES
100.0%
100.0%
100.0%
100.0°x6
100.0°x6
OPERATING EXPENSES
Administration
23.6%
23.9%
23.0%
28.9%
29.8%
Maintenance
30.0%
30.4%
34.0%
39.7%
38.1%
r�
Carts
7.0%
6.0%
4.0%
6.0%
8.4%
Food & Beverage
4.3%
3.8°x6
3.7%
0.6%
0.0%
Depreciation
18.0%
16.8%
14.8%
15.2%
14.6%
e'Tl11
TOTAL OPERATING EXPENSES
82.9%
81.0%
79.6%
90.5°x6
90.8%
NET OPERATING REVENUE
17.1%
19.0°x6
20.4%
9.5°x6
9.2%
City of astian
MWI
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MIR