I. CALL TO ORDER A. Roll Call B. Remote Attendance

Transcription

1 CHAMPAIGN COUNTY FOREST PRESERVE DISTRICT STUDY SESSION OF THE BOARD OF COMMISSIONERS Thursday, November 16, 2017 Meeting at 5:30 pm Education Classroom, Museum of the Grand Prairie, Lake of the Woods, Mahomet, IL The public is invited to attend. The Champaign County Forest Preserve District strives to ensure that its facilities, programs, and activities are accessible to individuals with disabilities. If you are an individual with a disability and require assistance to observe or participate in this meeting, please contact Headquarters in advance at (217) I. CALL TO ORDER A. Roll Call B. Remote Attendance II. III. IV. PUBLIC COMMENT Meeting attendees are encouraged to participate during the Public Comment portion of the Agenda. If you would like to address the board, please sign in ahead of time on the sheet near the meeting room entrance. You will be recognized in the same order that you have signed in. For further details on how to participate in the Public Comment section of the meeting, please refer to CCFPD Resolution number R AGENDA MODIFICATIONS NEW BUSINESS A. Golf Operations B. Status of Hospital Tax-Exemption Legal Case V. ADJOURNMENT Meeting Agenda Page 1 of 1 Page 1

2 November 16, 2017 STUDY SESSION - MEMORANDUM To: Board of Commissioners From: Dave Torrens Director of Golf Chris Edmondson General Manager David Sebestik Golf Professional Re: Golf Course Updates Programs and Facilities Staff Introduction Dave Torrens Hired as an Assistant Superintendent with CCFPD in 2001 under Bruce Kelso. Dave was then promoted to Director of Golf in 2002 and is an active GCSAA member. Dave has over 20 years of experience and has been a staple of our facility for many years. Chris Edmondson Started working with CCFPD in March of 1999 as the Outing Coordinator under Dave Huber. Chris was promoted to Assistant Manager in March of 2005 and again in 2017 to General Manager due to his work ethic and knowledge. Chris has 18 years of experience at this facility and provides tremendous insight and continuity to our staff and patrons. David Sebestik Born and raised in Mahomet, David grew up playing Lake of the Woods Golf Course since he was 9 years old. He worked as an apprentice under Dave Huber from and gained his PGA Class A degree in David moved to Tennessee in 2012 to gain more experience in the private sector where he gained valuable industry and business knowledge. In June of 2017, CCFPD hired David to come back to his hometown and become the golf professional upon Dave Huber s retirement. Areas Addressed Since National Golf Foundation Survey In 2014, the CCFPD contracted with the National Golf Foundation to assess the Lake of the Woods Golf Course, with the goal of attracting and keeping golfers while maximizing economic potential at a time when the industry was seeing an overall decline. The study provided an evaluation of golf course facilities, operations and maintenance, district support systems, and the course itself. A summary of the findings from the 2014 study and the PowerPoint presentation to the Board of Commissioners are attached. Many of the recommendations made in the study have now been or are currently being implemented, in the following areas: Snack Bar Pricing Online Tee Times Landscaping Marketing and Preserve Signage Merchandise Inventory Suggested Areas to Improve Primarily due to budget constraints, not all of the recommendations from the NGF study have been completed. Some are underway or planned, while others face significant challenges to implementation. More information about the following will be provided at the study session: Irrigation System Page 2

3 Equipment Bunkers Interstate Signage New Tees Bathrooms/Locker Rooms New Ideas and Programs With new staff come new ideas. To encourage more participation and entice new golfers to the game, the staff at Lake of the Woods Golf Course have been expanding program offerings and exploring new promotional ideas. Many of these programs grew out of prior efforts, but others were introduced for the first time in 2017 or are planned for 2018 and beyond: Hubie Cup Ladies Golf and Yoga Sunday Parent Junior New Golf Leagues Sponsorships Community Outreach Custom Fittings Launch Monitor Social Media Marketing 2017 Revenue Our efforts this year appear to be having a positive impact. Through October 2017, revenue for the year stood at $650,817. This is up $34,747 from the same time in 2016, when the revenue total was $616,070. Forecasted Revenue We remain optimistic that our revenue trend will continue to increase. That said, we are conservatively budgeting revenue at $669,544 for Page 3

4 National Golf Foundation 2014 SUMMARY CONCLUSION The Lake of the Woods GC is an underperforming municipal golf course operated by CCFPD. NGF finds that the LWGC is underperforming for many reasons, some of which are not controllable by the District. It seems that the LWGC has suffered from a perfect storm of issues ranging from a highly competitive market, aging golf population, a somewhat challenged location outside of main residential areas, and a stubbornly depressed economy for many families. Although the LWGC has traditionally been self-supporting, it is the opinion of NGF that the District should be prepared to subsidize the golf operation for the foreseeable future, or until a new and stronger marketing and business development focus can take hold within the operation and begin to produce new growth in rounds activity. In the last several years, the golf operation has responded to declining revenue performance by cutting costs in an effort to either break even or limit the operating loss. Staff has done an admirable job in adjusting the cost structure thus far, although the CCFPD will have to commit to providing the appropriate resources to its golf course, both in terms of operational support (staff and marketing) and new investment in capital upgrades, in order to achieve real growth in activity and revenue. NGF is not suggesting major upgrades as the golf layout is appealing and the facility has core group of loyal customers. NGF believes that a concerted effort to provide several noticeable improvements and re launch the golf business with updated fees to the market will give the facility a much needed kick-start to the 2015 golf season. In review of this golf facility, NGF Consulting found four key specific areas that we feel are the most significant items to be addressed by the District in an effort to streamline the operation of LWGC and improve its performance. These items include: 1. Improve the physical condition of LWGC golf course and support amenities. 2. Work to widen the market draw for LWGC and get more rounds out of the University of Illinois and Bloomington-Normal area. 3. Enhance the marketing of LWGC, especially through programs to segments such as students, lodging establishments, tournaments/outings, and through enhancements in technology reflective of systems in use at other successful golf courses. 4. Commit to a renewed emphasis on organized golf programs, focused on leagues, tournaments, outings, events, etc. Some capital investment will aid with this renewed focus (e.g. tournament pavilion). NGF s review of the CCFPD s golf facility reveals that recent expense reductions have begun to impact the District s ability to effectively compete in this golf market. The District has reached the point where further expense reductions will only jeopardize the basic integrity of this golf facility. If CCFPD has determined to stay in the golf business with LWGC, then new investment in capital and day-to-day resources will be required, as opposed to further expense reductions. Further, the NGF review of the overall Champaign market, including a review of the Bloomington, Illinois municipal golf operations, shows that every golf facility studied has seen significant declines in rounds activity comparable to LWGC, and many courses report financial results similar or worse than LWGC. NGF believes that continued stress in the market may result in one (or more) area golf courses closing, possibly improving performance of those that remain open. LWGC has a loyal following from which to grow the business and with recommended improvements and improved marketing; more players should be attracted to the facility which will improve the financial outlook and help fund needed capital investment. Page 4

5 NGF Review of Operations for Lake of the Woods Golf Course Prepared for Champaign County Forest Preserve District Presented by Richard Singer Director of Consulting Services National Golf Foundation Consulting, Inc. (561) NGF - KEEPING GOLF BUSINESSES AHEAD OF THE GAME SINCE SOUTH U.S. HIGHWAY ONE, SUITE 401, JUPITER, FL PHONE: FAX: Champaign County FPD- Lake of the Woods Golf Course Introduction National Golf Foundation Municipal golf facility consulting NGF Staff Richard Singer, Jerry Hinckley Not advocate for any position other than Lake of the Woods Golf Course success Why we re here: Review overall Lake of the Woods golf facility and operation. Advise on the use of best industry practices in operating and maintaining this golf facility. Document the market environment, and identify implications for future LWGC operation. Present recommendation for maximizing the economic potential of LWGC moving forward. 2 Page 5 1

6 Methodology On-site Facility inspection of Lake of the Woods GC Review and analysis of LWGC operating data Meetings with: Golf staff District officials Representatives of stakeholder groups Market analysis to include: Market research Golf facility research In-market competitive data 2014 survey of LWGC customers Data collected from previous engagements in the area dating back to Key Components of the Study Strategic look at the District s overall municipal golf offering Focus on the recent performance of Lake of the Woods GC in light of the declining rounds and revenues. Advise on the use of best industry practices in operating and maintaining this golf facility Review present physical condition and operation of Lake of the Woods Golf Course Examine status of the central Illinois area golf market Present NGF Consulting findings and recommendations 4 Page 6 2

7 General Impressions Lake of the Woods GC is owned and operated by the CCFPD and is certified as an Audubon cooperative Sanctuary. LWGC has traditionally been self-supporting, but recent declines have been severe, leading to District subsidy of golf operation. LWGC is underperforming for a perfect storm of many reasons, some of which are not controllable by the CCFPD. The golf operation tends to serve a segment of regular-play customers, made up primarily of older golfers whose participation is declining and not being replaced by younger participants unless changes are made. The overall condition of the LWGC property is generally good, but some deficiencies were observed 5 Lake of the Woods Golf Course 6 Page 7 3

8 Key Issues We See Rounds and revenue have declined due to several factors, including an aging golfer population with no younger replacements, and declining golf course conditions. Many other golf courses in the area also in rapid decline. LWGC is located in the western section of Champaign County, less appealing than some other public courses located closer to dense populations. Signage to Forest Preserve on area highways and within park itself do not indicate golf is available. CCFPD operating on a day-to-day mentality with little longterm planning and limited active efforts to increase activity. Lack of volunteer program. Need for marketing to new customers. Food and Beverage is under performing. 7 External Factors External factors that impact public golf operations in Champaign County: National Economic Recession Drop in golf demand regionally and nationally LWGC not alone in this market with recent decline Fewer golfers per 18 holes in local market than NGF success threshold Increased competition over the last 20 years Declining golf fees at area courses Limited growth rate in overall County population levels 8 Page 8 4

9 Key Operational Findings LWGC location requires improved signage, promotion and marketing. Course conditions and service will need to be improved, likely requiring appropriate staffing and CCFPD investment a new approach. In recent years CCFPD has provided loan support to LWGC to purchase new golf carts and assist with capital projects. Staff has attempted to market and promote the course to the current database. However, more needs to be done to reach new customers. Direct cost of merchandise sold is high at between 80% to 97%. Facility lacks kitchen facilities to offer grilled, fried or baked food and a large gathering space for 150+ patrons often used for large tournaments. LWGC unlikely to improve economic condition with privatization model (lease, concession, management company) Customer Survey NGF surveyed 220 golfers who have played LWGC, mostly regular play customers from database. These respondents: Gave LWGC a very low overall satisfaction score Rated on-site staff very high Are concerned about the condition of the golf course Generally seem willing to pay a little more for golf if funds are used to improve conditions See the facility as less women-friendly than other courses Would like to see improved use of technology, such as a better system for on-line tee times 10 Page 9 5

10 NGF Operational Recommendations Adjust fees to reflect the market and drive activities by select groups (juniors, students, seniors, etc.). This involves both increases and decreases in fees and changes must be promoted. $100,000 to $200,000 direct investment in repairs and upgrades. $125,000 loan for golf carts should be forgiven. Add part-time staff in both golf maintenance and golf shop/customer operations. Provide more executive (CCFPD) oversight of the operation through budgeting, planning, marketing and customer service initiatives. CCFPD staff and LWGC personnel need to combine efforts for more effective and efficient use of resources and enhance guest experiences. Increased marketing for new customers with support from the Champaign County Forest Preserve operation. 11 NGF Other Operational Recommendations Create Master Plan for golf operations to include capital projects, financial goals, operational strategies and marketing programs. Employ better technology - Improve website and internet marketing. Increase print campaigns in local and regional papers and golf pubs. Focus on attracting golf events through direct contact selling. Target local groups, charities, corporations and past event customers. Track the effectiveness of all marketing and direct advertising by using redemption ads (coupons). Work to modify, or even discontinue the season pass program, allowing existing pass-holders to renew for up to 3 years. Simplify the look and feel of the golf shop. Focus on quick sell items, mark areas for new and used items and add a women s section. Increase female participation install several new forward tees. Review the potential for a volunteer program 12 Page 10 6

11 NGF Best Practices Recommendations Based on the NGF review the following best practices are recommended for consideration: 1. Create signature events for the golf facility Audubon Championship, etc. 2. Host VIP days for key customer groups free snacks or golf training 3. Use bounce back coupons for infrequent golfers to get return play 4. Promote weddings and other non-golf events 5. 9 & Wine golf training programs for women s groups 6. Conduct yearly customer surveys 7. E-blast marketing efforts to new groups outside current database (i.e. CCFPD database and other municipal outlets that will support awareness campaigns) 8. Create strong referral programs for events and season passes 9. Create a new monthly dashboard reporting system and review revenue data bi-monthly and compare to prorated budget 10. Provide brief analysis of revenue trends and ideas to capitalize on opportunities or countermeasures for budget misses 13 NGF Physical Recommendations 1. Improve signage, both directional and informational 2. Improve the clubhouse with a good deep clean, new paint and removal of exterior weeds and vines. 3. Add forward tees to reduce yardage to under 4500 yards 4. Improve on-course restrooms 5. Repair bunkers with new sand and drainage and convert severe or unneeded bunkers to grass bunkers 6. Add new tournament pavilion near clubhouse 7. Improve / expand practice area if possible 8. Add grill / fryer to snack bar to increase menu offerings 9. Begin planning to replace irrigation system after LWGC is established as viable (in 3-5 years) 14 Page 11 7

12 Summary of Recommendations Improve the physical condition of LWGC golf course and support amenities. New investment in capital and day-to-day resources required. Long-term master plan should be established while recommendations are being implemented. Implement NGF best practices recommendations. CCFPD commitment to providing operational support (staff and marketing) to LWGC. Facility can be a catalyst to help grow golf in Champaign County with enhanced marketing to segments such as new golfers, women, couples, families and tournaments/outings. 15 NGF Review of Operations for Lake of the Woods Golf Course Prepared for Champaign County Forest Preserve District Presented by Richard Singer Director of Consulting Services National Golf Foundation Consulting, Inc. (561) rsinger@ngf.org NGF - KEEPING GOLF BUSINESSES AHEAD OF THE GAME SINCE SOUTH U.S. HIGHWAY ONE, SUITE 401, JUPITER, FL PHONE: FAX: Page 12 8