pages: GolfCommission/2007-09-19.pdf, 4
This data as json
body | date | page | text | path |
---|---|---|---|---|
GolfCommission | 2007-09-19 | 4 | Mr. Singer gave an overview of NGF, stating that is a not-for-profit research association dedicated to helping golf businesses succeed. They have performed many consulting projects similar to the one at the Chuck Corica Golf Complex. Mr. Getherall and Mr. Richardson spent a considerable amount of time at the Complex and Mr. Getherall also visited a number of the competing courses in the area to compare and trends, to better understand the overall golf market in the region and match it up with the national golf market. Mr. Singer stated that the golf business is a tough one to be in currently, and what the City of Alameda is experiencing is not unique. He added that there are many municipal golf facilities faced with the same problems, and it is NGF's goal to help the City of Alameda find ways to preserve its golf asset for the long-term future. The report is not based on a quick fix and short-term solution but rather the long term. In general, it seems that the golf operation has a lot of little problems that add up very quickly to a major issue. Many of the problems concern the physical quality of the golf facility. The Complex is in need of upgrades and the problem is who is going to pay for them. The amount needed for improvements is approximately ten million dollars, and either the City of Alameda will need to pay for them out of the General Fund or privatize the operation and remove the responsibility for improvements from the City. There are things that can be done to the facility to make it more aesthetically pleasing, but there are also items such as drainage improvements that would enhance the capacity to have more rounds played. The report also recommends that the City have a Master Plan of the facility prepared for the long term. NGF does not believe that it is realistic to expect that the Chuck Corica Golf Complex will earn sufficient revenue to cover all of its operational expenditures and capital improvements while at the same time making substantial payments to the City of Alameda's General Fund. In the best case scenario the Complex would be able to cover all operating expenses and be able to put money aside for future improvements. Mr. Singer stated that the study looked at three scenarios that might be considered for the future long-term operations of the golf facility and turned the floor over to Mr. Getherall to elaborate on them. Mr. Getherall stated that the RFP was issued due to the fact that the rounds of golf played at the Chuck Corica Golf Complex had steadily declined over the past 10 years by approximately 100,000 since 1997 and with that sort of decline in rounds your revenue will also decrease. Over the same period of time, the expenses have increased, especially the cost of public labor. Mr. Getherall stated that some of the payments from the Golf Complex to the General Fund are quite common for municipal golf courses, but it is unrealistic for the City to receive the surcharge and return on investment payments during a time when revenues are low. Also pointed out was the fact that the golf market is down both regionally and nationally, and rounds have been affected by the large number of newer private daily fee golf facilities in the area who have the ability to discount their fees when necessary. The first scenario studied by NGF is for the Complex to carry on "As Is." NGF predicts that the operating reserve would be used up within five years and the Chuck Corica Golf Complex Page 4 10/11/07 Golf Commission Minutes | GolfCommission/2007-09-19.pdf |