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Home My WebLink About2003 01_OPGA_Adopt Rates and Fees for Bailey Ranch Golf Club_2003.04.01 OW ASSO PUBLIC GOLF AUTHORITY OPGA RESOLUTION NO. 2003-01 A RESOLUTION OF THE OW ASSO PUBLIC GOLF AUTHORITY ADOPTING RATES AND FEES TO BE CHARGED AT BAILEY RANCH GOLF CLUB, AND ESTABLISHING AN EFFECTIVE DATE. BE IT RESOLVED BY THE TRUSTEES OF THE OW ASSO PUBLIC GOLF AUTHORITY THAT: SECTION ONE: From and after the effective date as hereinafter set forth, the rates and fees charged by the Owasso Public Golf Authority at Bailey Ranch Golf Club be, and the same hereby are, established as follows, to-wit: include green fee, cart fee and tax $45.00 $30.00 $38.00 $23.00 $30.00 $10.00 $25.00 $20.00 DAILY RATES - Fees Regular Weekend Patron Weekend Regular Weekday Patron Weekday Senior (55 & Older) Monday-Friday Junior (no cart) Twilight Regular Twilight Patron CART FEE - Includes tax Regular Cart Fee, one rider range balls include green fee, cart fee, $37.00 $42.00 $50.00 $15.00 Fees TOURNAMENTS Weekday Weekend Weekend Primetime PATRON CARDS - Includes advance tee handicap and range club discounts Individual Family time privileges, green fee, merchandise, 00 a.m.) 11 (Before $100.00 per year $150.00 per year MEMBERSHIPS - Includes prepaid green fees, cart fees, range balls and tax. Participant must agree to 12-month contract and prior month billing. Individual $200.00 per month Couple $300.00 per month Family $400.00 per month Corporate (Up to 5 members) $500.00 per month day of April, IS become effective on the SECTION TWO: The rates hereby adopted shall of the y the Trustees day of February, 18th this 2003 APPROVED AND ADOPTED Owasso Public Golf Authority. ATTEST APPROVED AS TO FORM I/a~ AuthoyoI{tl\tt0mey Co/ lO./ MEMORANDUM THE HONORABLE CHAIR & TRUSTEES OW ASSO PUBLIC GOLF AUTHORITY TO RUSSELL CARLSON DIRECTOR OF GOLF FROM 2003-01, APPROVAL OF OPGA RESOLUTION NO SETTING GOLF RATES SUBJECT 2003 13 February DATE BACKGROUND In September of 2002, year-end results for Bailey Ranch Golf operations clearly showed losses for the fiscal year that were unacceptable. Given the increased competition and decrease in rounds of golf played for the Owasso/Tulsa area, the loss though worse than expected was not completely surprising. In an effort to determine what options may be employed in order to improve the financial condition of Bailey Ranch, the Director of Finance for the City and the Director of Golf decided to undertake a full review of operations and develop strategies. They decided to seek a fresh perspective on the situation and employed the services of Kurt Bishop, a management consultant with over 20 years of experience, who agreed to work without compensation. REVIEW AND ANALYSIS The initial review began with financial and operational figures for 2002 and previous years Results showed total expenses for Bailey had decreased approximately 12% and total revenues had also dropped 8%. As noted in prior years, the largest expense for Bailey Ranch is the half- million-plus spent annually on debt service. Several financial scenarios were studied to determine which areas of the operations were the most profitable and which held the most promise for future profitability. For the fiscal year just completed, the highest percentage profits were derived from adult beverage sales, food and beverage, and group outings (tournaments, banquets, etc.). The highest total revenues were provided by golf services, including green fees, tournament fees, range services, and patron cards. After serious analysis and discussions, it was determined the most appropriate course of action to improve Bailey's long term position was to increase rounds and revenues for Prime Time (weekends and holiday's before 3:00pm) and Twilight (weekdays and weekends after 3:00), and to increase the number of tournaments and other group outings. The tournaments will be the best way of increasing rounds during the week without adversely affecting our primary customers who play on weekends. Tournament players also spend significant amounts in Food and Beverage and Pro Shop items. It also was decided to bolster the accounting methods used to track costs, especially for group events to ensure future revenues result in the anticipated profits OPGA RESOLUTION #2003-01 FEBRUARY 2003 PAGE 2 The next step included focusing our efforts on development of a comprehensive marketing plan for Bailey Ranch. The plan incorporates all tasks and functions related to marketing and expansion of Bailey Ranch Golf Club. The plan defines target markets available to Bailey Ranch, with analysis to determine the top 3-4 markets appropriate to extend revenues for the organization. The plan is being developed with an emphasis on expanding the business areas that show the most promise for producing profits in the future. This plan was developed to support current and future marketing efforts for Bailey Ranch, and includes the establishment of a new position for Director of Marketing/Events. The Director will be responsible for current and future efforts implementing and monitoring expansion of Bailey's customer base, as well as, increasing organizational profits Current analysis of the Owasso/Tulsa market show the primary target customer for Bailey Ranch to be non- discounted customers who are serious about their game of golf. The secondary target market for Bailey is group outings, with tournaments showing the best potential for profit, because they increase revenue in areas of the organization (Golf Services, Food and Beverage, and Pro Shop). GOALS. OBJECTIVES. AND STRATEGIES Over the past few years, there has been significant interest shown by groups for banquets, wedding receptions, and similar events at Bailey Ranch facilities. The majority of the interest, and potential for higher profits, has been from groups larger than our current facilities will support. Therefore, preliminary discussions are underway to pursue expansion of the Bailey Ranch facilities to accommodate these larger groups (200-350 people). iii Bailey personnel efforts are currently focused on normal cleanup, maintenance, and routine off..season fix-up of all facilities, as well as development of marketing materials needed to aggressively pursue the strategies defined in the marketing plan. The current list of key projects, other than typical maintenance items, within the Bailey Ranch Golf Club include iii Initiation of the new Director of Marketing/Events, and launching of all appropriate activities defined in the job description and marketing plans associated with this position. Assembly of a list, including contacts and channels of communication, of groups that meet the target market profile defined by the Bailey Ranch marketing team. The Cherokee Industrial Park is the first area we have selected for test-marketing of our new advertising campaigns. Development of detailed plans for contacting and pursuing groups area that meet our target market profiles. Owasso/Tulsa in the Development of marketing materials and resources for expansion of primary, secondary, and tertiary markets. OPGA RESOLUTION #2003-01 FEBRUARY 13.2003 PAGE 3 of marketing budgets for future advertising and promotional activities Development of surveys and similar evaluation techniques to ensure our marketing strategies for target customers are effective Establishment Initiation of meetings and related activities requested by management to enhance communications between the Bailey Ranch and City Management Personnel. Funding and construction of golf course restroom facilities Research and analysis of alternatives for expansion of Bailey Ranch facilities to better serve target markets, especially for group events Creation of methods and materials needed to begin detailed cost accounting for group events and related sales and marketing activities to ensure future profitability and generate data needed for detailed audits. Our exhaustive accounting analysis confirms the need to increase revenues. Our analysis also has shown the most significant gains in profits are available via revenues obtained through Golf Services - green fees, range fees, cart fees, and tournament outings. The majority of Bailey Ranch's expenses are fixed, therefore it will be most advantageous to keep rates high when the market easily bears the expense, and do everything within reason to fill the course during off-peak times iii PROPOSAL The overall operational analysis has proven customer base as well as becoming more competitive in the off-peak In order to grow our Patron Card program as well as keep our reputation as a "Top Five" public course it is imperative to keep rates high in prime time while allowing a nice discount for our Patron Cardholders. In order to become a full service golf course it is important to offer a membership of varying types in limited quantities. Furthermore, the off-peak market is driven solely on cost and it is proposed to lower the rates to attract the need to build a loyal market. more players DAILY RATES fees include green fee, cart fee and tax Current $44.25 $33.45 $37.77 $30.22 $32.38 $10.00 $30.22 $25.90 Proposed $45.00 $30.00 $38.00 $23.00 $30.00 $10.00 $25.00 $20.00 Monday- Friday Regular Weekend Patron Weekend Regular Weekday Patron Weekday Senior (55 and Older) Junior cart) Twilight Regular Twilight Patron OPGA RESOLUTION #2003-01 FEBRUARY 13,2003 PAGE 4 CART FEE Includes tax $12.00 $15.00 Regular Cart fee, one rider TOURNAMENTS fees include green fee, cart fee, Same Same New $37.00 $42.00 $50.00 range balls Weekday Weekend Weekend Primetime (Before 00) 11 PATRON CARDS Includes advance tee time privileges, range club discounts. Same Same merchandise, handicap and $100.00 per year $150.00 per year green fee, Individual Family MEMBERSHIPS Includes prepaid green fees, cart fees, range balls and tax. Participant must agree to 12- month contract and prior month billing. New New New New $200.00 per month $300.00 per month $400.00 per month $500.00 per month to 5 members) Individual Couple Family Corporate (Up adopting rates and fees to be RECOMMENDATION Staffrecommends approval of OPGA Resolution #2003-01, charged at Bailey Ranch Golf Club. .. ATTACHMENT OPGA Resolution #2003-01 1