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Home My WebLink About2003.02.18_OPGA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC GOLF AUTHORITY TYPE OF MEETING: Regular DATE: February 18, 2003 TIME: 6:30 p.m. PLACE: Council Chambers, Owasso Community Center Notice and agenda filed in the office of the City Clerk and posted at City Hall at 4:00 p.m. on Friday, February 14, 2003. I / . 1\ ho ty�t�� Marcia outwell, Autho ty Secretary Wilawl 1. Call to Order Chairman Helm 2. Flag Salute 4. Consideration and Appropriate Action Relating to a Request for Approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from consent by request. A motion to adopt the Consent Agenda is non -debatable. A. Approval of the Minutes of February 4, 2003 Regular Meeting. Attachment #4®A Owasso Public Golf Authority February 18, 2003 Page 2 B . Approval of Claims. Attachment 94-B 5. Consideration and Appropriate Action Relating to a Request for Trustee Adoption of OPGA Resolution #2003-01, a Resolution Establishing a Rate Structure for Golf Play at Bailey Ranch Golf Club. Mr Carlson Attachment #5 Staff will recommend Trustee approval of OPGA Resolution #2003-01, establishing rates for golf at Bailey Ranch Golf Club, and establishing an effective date. I�M 8. New Business. (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) Owasso Public Golf Authority February 18, 2003 Page 3 Adjournment. The Owasso Public Golf Authority met in regular session on Tuesday, February 4, 2003 in the Council Chambers at the Owasso Community Center per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Friday, January 31, 2003. ITEM 1: CALL TO ORDER Chairman Helm called the meeting to order at 6:56 p.m. ITEM 2: FLAG SALUTE The flag salute was held during the City Council meeting preceding this meeting. ITEM 3: ROLL CALL STAFF Rodney J. Ray, City Manager Marcia B ITEM 4 CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR APPROVAL OF THE CONSENT AGENDA. A. Approval of the Minutes of the January 21, 2003 Regular Meeting. B. Approval of Claims. The consent agenda included minutes of the January 21, 2003 regular meeting, by reference made a part hereto. Item B on the consent agenda included the following claims: (1) Owasso Public Golf Authority $48,750.68; (2) Payroll $17,576.95. Ms. Armstrong moved, seconded by Mr. Thoendel, to approve the consent agenda. AYE: Armstrong, Thoendel, Kimball, Cochran, Helm NAY: None Motion carried 5-0. Owasso Public Golf Authority ITEM 6: REPORT FROM OPGA ATTORNEY. No report. ITEM 7: N-EW BUSINESS. Mr. Cochran moved, seconded by Ms. Armstrong, to adjourn. AYE: Cochran, Armstrong, Kimball, Thoendel, Helm, NAY: None Motion carried 5-0, and the meeting was adjourned at 6:57 p.m. Marcia Boutwell, Authority Secretary February 4, 2003 Michael Helm, Chair -2- OPGA CLAIMS TO BE PAID 02/18/03 YENDffl AMOMI OWASSO PUBLIC WORKS AUTHORITY WATER USAGE -CART EARN 7.92 JUSTICE GOLF CAR CO INC REPAIR PARTS 1,231.85 CART OPERATIONS DEPT TOTAL - 1,239.77 YALE UNIFORM RENTAL SLOP TOWELS/UNIFORMS 28.26 O`REILLY AUTOMOTIVE INC SMALL TOOLS 11.98 OWASSO PUBLIC WORKS AUTHORITY WATER USAGE -MAINTENANCE 5.94 OKLAHOMA NATURAL GAS 01/03 USE 323.90 AEP/PSO 01/03 USE 343.18 GUARDIAN SECURITY SYSTEMS INC SECURITY MONITORING 29.95 O'REILLY AUTOMOTIVE INC REPAIR PARTS 11.00 LUBER BROS INC REPAIR PARTS 426.07 COURSE MAINTENANCE DEPT TOTAL ---- 1,180.28 OWASSO STAFFING TEMP STAFFING 733.76 OWASSO STAFFING TEMP STAFFING 42.26 GREAT PLAINS COCA COLA PAPER SUPPLIES 31.75 UNITED LINEN LINEN SERVICE 99.83 ALBERTSONS GROCERIES 13.43 GREAT PLAINS COCA COLA BEVERAGES 108.96 LANCE INC SNACKS 26.30 SYSCO FOOD SERVICE GROCERIES 113.18 FOOD III BEVERAGE DEPT TOTAL 1,169.47 LOWES COMPANIES INC MAINT SUPPLIES 27.72 WAL®MART COMMUNITY OFFICE SUPPLIES 34.93 OWASSO PUBLIC WORKS AUTHORITY WATER USAGE -CLUB HOUSE 27.87 AEP/PSO 01/03 USE 791.89 WASTE MANAGEMENT OF OK COMMERCIAL REFUSE 155.27 UNITED LINEN LINEN SERVICE 45.20 ORKIN EXTERMINATING CO, INC PEST CONTROL 40.00 MARLIN LEASING CORP DIGITAL PLAYER CONTRACT 100.00 ADMINISTRATION DEPT TOTAL 1,222.88 CITICAPITAL CART LEASE 4,138.04 DEBT SERVICE DEPT TOTAL 4,138.04 OPGA FUND TOTAL 11,687.39 It 02/08/03 DEPARTMENT Cart Operations Food & Beverage % �l W Trustee OVERTIME TOTAL EXPENSES EXPEUSE-S 0.00 1,933.03 0.00 2,713.93 TO: THE HONORABLE CHAIR & TRUSTEES OWASS O PUBLIC GOLF AUTHORITY FROM: RUSSELL CARLSON DIRECTOR OF GOLF SUBJECT: APPROVAL OF OPGA RESOLUTION NO. 2003-01, SETTING GOLF RATES ATE® February 13, 2003 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. 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 13,2003 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). 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 expansi of the Bailey Ranch facilities to accommodate these larger groups (200-350 people). I 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: 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 in the Owasso/Tulsa area that meet our target market profiles. Development of marketing materials and resources for expansion of primary, secondary, and tertiary markets. OPGA RESOLUTION #2003-01 FEBRUARY 13,2003 PAGE 3 Establishment 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. 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. The overall operational analysis has proven the need to build a loyal customer base as well as becoming more competitive in the off-peak market. 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 more players. DAILY RATES fees include green fee, cart fee and tax Proposed Current Regular Weekend $45.00 $44.25 Patron Weekend $30.00 $33.45 Regular Weekday $38.00 $37.77 Patron Weekday $23.00 $30.22 Senior (55 and Older) Monday -Friday $30.00 $32.38 Junior (no cart) $10.00 $10.00 Twilight Regular $25.00 $30.22 Twilight Patron $20.00 $25.90 OPGA RESOLUTION #2003-01 FEBRUARY 13,2003 PAGE 4 CART FEE Includes tax Regular Cart fee, one rider $15,00 $12.00 `rOURNAMENTS fees include green fee, cart fee, range balls Weekday $37.00 Same Weekend $42.00 Same Weekend Primetime (Before 11:00) $50.00 New PATRON CARDS Includes advance tee time privileges, green fee, merchandise, handicap and range club discounts. Individual Family $ 100. 00 per year Same $150000 per year Same MEMBERSHIPS Includes prepaid green fees, cart fees, range balls and tax. Participant must agree to 12- month contract and prior month billing. Individual Couple Family Corporate (Up to 5 members) $200.00 per month No $300.00 per month No $400.00 per month No $500.00 per month Nei Staff recommends approval of OPGA Resolution 92003-01, adopting rates and fees to b,*' charged at Bailey Ranch Golf Club. 7015"1 .WEIR: !.:11kfff OWN BE p qpp IT RESOLVED BY THE TRUSTEES OF THE OWASSO 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 DAIL,Ir_RATES -flees include green fee, cart fee and tax; Regular Weekend $45.00 Patton Weekend $30.00 Regular Weekday $38.00 Patron Weekday $23.00 Senior (55 & Older) Monday -Friday $30.00 Junior (no cart) $10.00 Twilight Regular 925.00 Twilight Patron $20.00 CART FEE -Includes tax Regular Cart Pee, one rider $15.00 T O _ NTS - Fees include green fee, cart fee, range balls Weekday $37.00 Weekend $42.00 Weekend Primetime (Before 11:00 a.m.) $50.00 PATRON CARDS o Includes advance tee tinge privileges, green fee, merchandise, handicap and range club discounts Individual $100.00 per year Family $150.00 per year MEMBERSHIPS m 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 SECTION TWO: The rates hereby adopted shall become effective on the I" day of April, 2003. APPROVED AND ADOPTED this 18th day of February, 2003 by the Trustees of the Owasso Public Golf Authority. Michael Helm, Chairperson Marcia Eoutwell, Authority Secretary I�. 9 0 Mu Stephen P. Gray, Authority Attorney