HomeMy WebLinkAbout2023-04-13 Study Session PacketCITY OF PALM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
INFO@CITYOFPALMDESERT.ORG
NOTICE OF STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene for a
Study Session on Thursday, April 13, 2023, at 2:00 p.m. in the Council Chamber at
Palm Desert Civic Center, 73510 Fred Waring Drive, Palm Desert. Said Study
Session will be to receive updates on Fashion Week/Food & Wine and Desert
Willow Resident Program. Any resulting recommendations will be considered
at an upcoming Regular City Council Meeting.
______________________________
NÍAMH M. ORTEGA
ASSISTANT CITY CLERK
Posted: April 6, 2023
NO ACTION WILL BE TAKEN AT THE STUDY SESSION
NOTE: Pursuant to Assembly Bill 2449, this meeting may be conducted
by teleconference and there will be in-person public access to
the meeting location.
Study Session is accessible in person or on the City's website at
www.palmdesert.gov under the Council Agenda link at the top of the page.
CITY OF PALM DESERT
ECONOMIC DEVELOPMENT DEPARTMENT
INTEROFFICE MEMORANDUM
Date: April 6, 2023
To: City Council
From: Thomas Soule, Public Affairs Manager
Subject: City Council Study Session of April 13, 2023
At the City Council Study Session on April 13, 2023, Palm Springs Life (PSL) will be making
a presentation about Fashion Week El Paseo and Palm Desert Food & Wine. The City’s
five-year sponsorship agreement with PSL has expired, and they are requesting a new
three-year agreement at the same level of support. The City currently provides $200,000 for
Fashion Week El Paseo and $100,000 for Palm Desert Food & Wine.
The presentation will give an overview of the past five years of the City’s sponsorship, with
a preliminary recap of this year’s events. PSL will also offer a look at some of their plans for
the events over the next three years. A full recap of this year’s events will be provided once
all the complete data has been collected and processed.
Funds have been requested in the Fiscal Year 2023-2024 budget to support this request,
and the purpose of this study session is to allow Council the opportunity to consider the
request prior to the budget sessions, with an opportunity to ask any questions you might
have.
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CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 13, 2023
PREPARED BY: Veronica Chavez, Director of Finance
REQUEST: DESERT WILLOW RESIDENT PROGRAM RECOMMENDATIONS AND
OPTIONS TO RESOLVE CONCERNS
BACKGROUND/ANALYSIS:
Economic growth and recovery following the pandemic has been quite an anomaly, and one
area where that is completely evident is the golf industry. Golf has experienced a boom in
popularity post-pandemic. Local demand for tee times have increased dramatically as tourism
and corporate outings return to the valley. The additional demand on the golf market
consequently has resulted in limited availability at Desert Willow for Palm Desert residents.
Following various emails and comments from concerned residents on the matter, staff organized
a series of informational meetings for resident golfers, seeking both their concerns about access
and their proposed solutions. Meetings were held at Desert Willow over the course of two weeks,
on March 13th, 15th, 20th, and 22nd with approximately 20 participants at each session. The
meetings were facilitated by both City and Desert Willow (DWGR) staff.
As the meetings were concluded, the notes from each of the sessions were compiled and posted
to the City’s website for public viewing where additional emails were solicited. In total, this
process enabled feedback from over 100 resident golfers. Concerns were focused primarily on
the various programs offered at Desert Willow. Approximately 2,000 Palm Desert Resident
Cards are issued annually.
DESERT WILLOW PROGRAMS
Resident Card
Resident Cards are available to Palm Desert residents at a nominal $40 fee to access the
course for $52 with a 3-day booking window
Champions Club
Offers a League Play opportunity for the Residents of Palm Desert. Currently, 52 players are
blocked every Wednesday morning for members of the Champions Club to compete in
organized events from October through May. Membership is limited so that players can
compete each week of the 32-week season
Platinum Club
Desert Willow’s version of a loyalty/frequent player program with a 21-day booking window. It
is designed for golfers who want to make Desert Willow their primary playing location for the
year. In return for their membership purchase and loyalty to Desert Willow, card holders
receive discounts on tee times, pro shop purchases, restaurant dining and academy programs
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City of Palm Desert
Desert Willow Resident Program Recommendations
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Each meeting began with a brief presentation of the current financial picture of Desert Willow
including the City’s support of capital projects at the resort to keep it in the world-class condition
it is known for. Listed below are the tenets included in the presentation to guide attendees
through the brainstorming process:
Prior City Council comments and parameters should be considered.
DWGR is an economic development philosophy, also intended to provide residents with a country club
experience for a day.
The Quality of the Facilities, Courses and Customer Experience must remain “Best in Class”.
Proposed programs should allow for financial success during “Bull” and “Bear” economic market conditions.
Minimize the need for subsidization from City Funds for Operations.
Proposed programs should allow for financial success during “Bull” and “Bear” economic market conditions.
Desert Willow’s programs should allow for local Country Clubs and Restaurants to succeed and not detract
from their viability as a Palm Desert business.
Ability to continue utilizing Dynamic/Yield Based pricing models to drive green fee revenue for the financial
stability of the property.
Feedback confirmed that access was the number one issue and price per round was secondary.
There was a general understanding that operating & labor costs have gone up as well as that
the price of golf throughout the nation has risen.
A variety of ideas and price points were provided by residents for consideration. Summarized
below are some of the ideas received:
Resident Golf Participant Ideas:
Provide a reasonable time of day to start booking Resident tee times instead of starting at Midnight.
Increase the booking window (various lengths suggested from 5 days up to 60 days) with a reasonable
increase in price (pricing recommendations varied)
Protect a certain amount of tee times specifically for Palm Desert Residents. The amount of the allocation
varied but was typically suggested at 15-25% of total rounds, with preference for morning times.
Semi-Private set up. This would include an upfront membership fee ($2,000 to $2,500 mentioned) that
would provide 60-day bookings or allocated tee times for a discounted rate ($52-$85 range was given).
Tiered pricing by booking window. $52 inside of 3 days, $75 inside of 10 days and $125 outside of 10 days
was provided as an example.
Percentage off Dynamic Pricing – This concept would provide a certain percentage off (40%-60%
discussed) with access at the 60-day window.
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City of Palm Desert
Desert Willow Resident Program Recommendations
Page 3 of 6
Champions Club Participant Ideas:
Increase the number of players per week (72 was mentioned per last year’s recommendation). Pricing
could be increased, if necessary, to offset additional opportunity cost.
Offer A & B groups alternating play every other week, to allow for double the number of participants. This
would mean each group would get to play in 16 events throughout the 32-week season, instead of each
week.
Sale of Memberships – some were unable to participate in 2023; therefore, there were suggestions as to
how to offer the memberships.
Lottery –Participants chosen at random based on number of spots available.
Loyalty/Tenure prioritized – Those who have been in the program for a number of years get first
priority.
Hybrid – Loyalty gets priority but with a lottery for additional spots.
Platinum Card Participant Ideas:
The 21-day window is no longer sufficient to get tee times. Not enough reasonable tee times available.
Membership pricing for non-residents should be higher.
Residents should have priority access to the program.
Following the final meeting, City and DWGR staff met to discuss the comprehensive list of ideas
provided. The ideas were evaluated based on the “City Tenets”, fiscal responsibility, potential
opportunity costs, and whether the idea works in high demand (current) and/or low demand
(recession) market conditions. The following recommendations are intended to achieve many
of the objectives provided by resident golfers.
Resident Card Program
ISSUE(S) IDENTIFIED AND GOAL RECOMMENDATION/OPTION
Issue: Booking time is impossible at 12AM
Goal: Maintain all current program benefits
($52 with a 3-day booking window) and
facilitiate a better booking time.
Allow booking time to begin at 7pm (3 days
plus a few hours) instead of 12am (midnight)
Champions Club Program
ISSUE(S) IDENTIFIED AND GOAL RECOMMENDATION/OPTION(S)
Issue: Total availability
1) Status Quo -52 Player Shotgun every
Wednesday at $52 Rate
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City of Palm Desert
Desert Willow Resident Program Recommendations
Page 4 of 6
Goal: Provide additional opportunities for
residents to participate with nominal costs to
both residents and Desert Willow
2) Expand the program to a 72 Player
Shotgun every Wednesday at $65 per
player
FINANCIAL IMPACT
The Opportunity Cost of this program as it
exists is approximately $120,000 under the 52
players at $52 model
The expansion to 72 players at the increased
rate of $65 increases opportunity cost to
approximately $135,000 to $140,000
ISSUE(S) IDENTIFIED AND GOAL RECOMMENDATION/OPTION(S)
Issue: Membership Access
Goal: Alleviate resident concerns relative to
limited participation opportunities
1) Offer 3-week period, allowing all
interested Residents to enter into a
lottery with participants chosen fully at
random.
2) Loyalty/Tenure prioritized – Weighted
lottery based on number of years
members have participated (example:
current members given an extra entry
for every year of participation)
3) Loyalty/Tenure rewarded – Members
with multiple years of participation
(possibly 5 or more) given first right of
purchase. Any remaining
memberships would then be offered
via a lottery.
FINE PRINT
Membership cost to remain the same at $299, includes USGA Handicap.
Sell 100 memberships to cover the 72 weekly player slots and prioritize access
Waitlisted members on a weekly basis would have first right to play the following week
Platinum Card Program
ISSUE(S) IDENTIFIED AND GOAL RECOMMENDATION/OPTION(S)
Issue: Membership access at 21-days is not
providing substantial time to benefit card
holders
Goal: Provide residents an extended booking
window (60-days) at a discount that is fiscally
responsible in boom or recession markets.
1) Continue to offer Residents a reduced
membership price into the Platinum
Program, providing discounted access
with a new booking window of 60-days.
2) Limit the program to 800 participants or
less, half restricted Palm Desert
Residents until December 1st.
FINANCIAL IMPACT
Changes to the Platinum program are expected to be revenue neutral with the assumption
that the increased card price and increased rate structure will cover any additional Platinum
Card rounds because of increased access via the 60-day window.
FINE PRINT
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City of Palm Desert
Desert Willow Resident Program Recommendations
Page 5 of 6
Rates will be 25% -30% off Dynamic Public Rack Pricing for the cardholder and up to 3
guests, based on typical utilization patterns throughout the year. (A substantial increase from
current pricing)
Other pricing models were evaluated including tiered pricing with further advanced booking
and a larger discount off dynamic pricing, but the opportunity costs were too significant (ie.
the 40% off dynamic pricing would create a $500,000 opportunity cost at 10% absorption).
Addressing the issue of limited availability, tee times will now be available at the 60-day
window (same as general public).
The Platinum Card Membership pricing will be $299 for Residents and $899 for non-
residents. A discount will be offered to current non-resident Platinum members for FY
2023/24 only. This one-time discount will help offset frustrations over lack of peak season
access in FY 2022/23.
Implement a non-refundable booking fee per round to discourage excessive bookings or
cancellations
ADDITIONAL CARD BENEFITS
50% Off Driving Range after 10am
15% off golf shop accessories, gift item, and footwear (non-sale)
25% off apparel (non-sale items)
10% off dining at The Terrace (food only and does not apply to special events)
Based on staff’s analyses on the above, the following recommendations/options are being made
for the 2023/24 fiscal year with the understanding that staff will review the result of these changes
annually to determine if any revisions are necessary.
1) Change the booking time for all programs from 12AM to 7PM, to provide better
accessibility to available tee times.
2) Increase the Champions Club to 72 players at $65.
3) Prioritize the Champions Club membership access by offering a Loyalty/Tenure rewarded
priority (members with 5 or more years of participation given right of first refusal) and
remaining memberships offered via lottery.
4) Increase the Platinum Club booking window from 21 days to 60 days.
5) Leave the Resident Program as is, no changes.
FINANCIAL IMPACT:
Implementation of the recommended changes may facilitate the continued growth of green fees
marginally for Fiscal Year 2023/24 while meeting the requests from residents regarding access
and availability across all programs. The recommendations are intended to also protect revenue
generation in the event recession causing market contraction occurs. Below is a table of
estimated green fees for Fiscal Year 2022/23 and projected Fiscal Year 2023/24 green fees if
staff’s recommendations are approved.
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City of Palm Desert
Desert Willow Resident Program Recommendations
Page 6 of 6
REVIEWED BY:
Department Director: Veronica Chavez
Finance Director: Veronica Chavez
Assistant City Manager:
City Manager:
ATTACHMENTS:
1. Resident Golf Program Input & Feedback Presentation
2. Notes from Input & Feedback Sessions
Major Market Segments
2022-23
Estimated Revenue
2023-24
Budgeted Revenue
%
Change
Public Rack 3,567,774 3,392,000 -5%
Outings 2,043,669 2,248,036 10%
Residents 528,681 529,000 0%
Residents - Champion's Club 83,000 145,000 75%
Wholesale (Hotel/Timeshare Partners)1,701,936 1,652,994 -3%
Platinum - Non-Res & Residents 1,630,973 1,875,619 15%
Other Loyalty/Specials 196,971 207,213 5%
Total Estimated Green Fee Revenue 9,753,004 10,049,862 3%
Notes:
Desert Willow Golf Resort
Estimated Green Fee Revenue by Market Segment
Recommendations will provide additional access for residents via the Champions Club expansion and the
Platinum program, which are estimated to offset primarily Public Rack and Wholesale market segments.
Additional tracking will be implemented in FY2024 to show how much of the Platinum program revenue is
specifically derived from Resident bookings.
Recommendations are estimated to allow for nominal growth in green fee revenue while providing
increased access to Residents.
Budgeted revenue above does not include anticipated revenues lost during the Firecliff Renovation
Closure. Those losses are projected in the official FY 2024 Budget.
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GENERAL RESIDENT COMMENTS
3/13/23 Info Session Feedback
General Resident Rate Suggestions:
• 50% off Dynamic pricing with 60-day booking
• Ra ise resident rate to higher flat rate – no rates specified but requested ability to
secure times outside of 3 days
• Raise resident rate in season (Jan – April) $75 before 1:00pm and $52 after
• Tiered rate structure: $52 inside 3 days, $75 3–10 days, $125 outside of 10 days
• Semi-Private Option #1
o Pay up front sum of $2,000-$3,000
o Grants further advanced booking at $52 rate
o Semi-Private Option #2
• Semi-Private Option #2
o Pay up front $2,000-$3,000
o Grants further advanced booking at higher rate
Potentially suggests using up front cost as prepaid golf at
rate of $125-$150
Rates would vary by time of year
Restricted to PD Residents only
• Resident Golfers
o Reserve one tee-time (four players) per hour, per course, for the opening
5 tee slots per day for Resident Card access (only making them available
3 days in advance)
o Offer two -tiered Resident Card access by also providing the opportunity
to book tee times earlier for an increased rate in a manner similar to
that used by Troon for Classic Club Coachella Valley Card holders, or
Escena for their Escena Card holders
o Limit the number of tee times available for ‘group bookings’ per day
and/or limit group bookings to Thursday through Sunday
• Resident Golfer
o The City adopt a tiered price structure similar to Torrey Pines (owned by
the City of San Diego) and Harding Park (owned by the City of San
Francisco). i.e. A market rate could be set as the base price, while
establishing a resident rate that is less costly, perhaps half the market
prices. Both groups should have 60 (day) lead times to book tee times,
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and in doing such, will make Desert Willow comparable with other
similar offerings
• Conduct survey on membership for Semi-Private use
Platinum Card Suggestions:
• Raise non -resident Platinum purchase price
• Limit non -resident Platinum benefits to cardholder only
• Hold tee times for Platinum members
• Limit how many times members can secure (with technology tracking usage)
• Provide equivalent booking access for Platinum Card holders with full rate guests,
and reduced-rate Westin and HGV guests, either by granting booking access at 60
days, the same as the other groups. Or by limiting all bookings to 30 days in
advance, thereby leveling the booking opportunity
• Understanding the profitable business of Event Management for the Club,
exceptions could be made to provide bookings further in advance, where a fully-
catered event has been confirmed. Only Kemper Golf staff would be available to
book for these groups this far ahead, in conjunction with the Event Coordinator
• Limit the number of tee times available for ‘group booking’ per day and/or limit
group bookings to Thursday through Sunday
Champions Club Suggestions:
• Raise weekly rate from $52 to $65 to cover opportunity cost of more access
• Have a lottery for memberships
o Lottery would be weighted based on how many years guests have
participated
• Increase number of participants weekly, so more memberships can be sold
• Host two groups that rotate play each week (Group A and Group B)
• Eliminate the program entirely – suggested that Champions Club only benefits a
select few
Hotel Benefit Feedback:
• Hotel guests shouldn’t get a reduced rate (this discount is contractual but the topic
wasn’t discussed)
• Booking hold/deposit should be enforced and non-refundable; maybe pay penalty
or cancellation fee, if no-show or unconfirmed by a certain day/time (i.e. less than 5
days in advance)
• F&B should also profit, how do we make this happen?
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Availability Comments:
• Suggested fair booking for all programs (60 -day window for all)
• Weigh access according to loyalty, loyalty incentives
• Member play “rotation” to every other week
• Please move the midnight tee time reservation to 5 PM on the day before, as it is
unjust to ask golfers to wake up at midnight just to be able to secure a tee time
3/15 /23 Info Session Feedback
General Resident Rate Suggestions:
• Raise resident rate to higher flat rate – no rates specified but requested ability to
secure times was their concern (Repeat Idea)
• Block times for Residents (Repeat Idea)
• Limit Resident access to twosomes (New Idea)
Champions Club Suggestions:
• Raise weekly rate from $52 to cover opportunity cost of more access – no
suggested rate discussed (Repeat Idea)
• Host two groups that rotate play each week (Group A and Group B) - (Repeat Idea)
General Availability Comments:
• Move booking portal access from 12:00am Midnight to a more acceptable time
(7:00pm/8:00pm day before or 6:00am day of) (NEW Idea)
o Stressed hassle of getting up at Midnight
o This is in reference to advanced booking – for example 21 day booking
starts at 12:00am
• Differentiate booking times for different reservation types (New Idea)
o PD Resident – 8:00pm
o Platinum – 9:00pm
o Non -Resident – 10:00pm
• Change tee time interval – go to 9 minutes instead of 10 minutes (New Idea)
o Feedback from attendees was negative – pace of play concerns
General Thought Shared During Discussion:
• Resident Concern – Has been forced to play other local clubs all year and can’t find
anything under $100
o He mentioned anything quality is over $130
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• Resident vocalized that many of the local country clubs are having access issues as
well (his friends are members at these clubs)
o Many clubs are restricting guest access before 11:00am
o Many members can’t find times until late afternoon
• Suggestions were made about the process - in terms of how to present feedback
from all four meetings with Presidents committee and City Council:
o We reached out to ____ Residents, and _____ responded/gave feedback.
_____ came to one of four scheduled meetings
3/20/23 Info Session Feedback
General Resident Rate Suggestions:
• Raise resident rate to higher flat rate – $85 suggested (Repeat Idea)
• Hold times for Residents - one time per hour in peak season (November –
April) (Repeat Idea)
• Lottery for tee times (New Idea)
Champions Club Suggestions:
• Raise weekly rate from $52 to cover opportunity cost of more access: $75 - $85 rate
discussed (Repeat Idea)
o Offer last minute access for open Champions Club spots for waitlist at
higher rate - $85 discussed (New Idea)
• Increase number of memberships available - (Repeat Idea)
• In regards to membership sale:
o Sale should be a lottery system – everyone who wants a chance at
membership is entered into a drawing (Repeat Idea)
New take – Lottery should not be weighted – two-week
period for guests to enter drawing.
o Frustration with last year’s sale was communicated by several attendees.
Platinum Club Suggestions:
• Hold Plat inum Card sale for PD Residents before Non-residents, ensuring access to
Platinum Card (New Idea)
• Increase cost of Platinum Card (Repeat Idea)
General Thought Shared During Discussion:
• Have been forced to play other local clubs all year (Repeat comment)
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• Ha ve decided to join Marriott Desert Springs membership and never have any issues
getting tee times (Repeat comment)
• Raise top end price (Repeat comment)
• Raise group prices (Repeat comment)
• Open restaurant later in peak season – Dinner access or longer bar hours (New
comment)
• Discussion on parks vs. Desert Willow – parks aren’t generating revenue so why is
focus on DWGR to raise or generate revenue.
o Residents from nearby communities utilize PD Parks but no revenue
generated.
3/22 /23 Info Session Feedback
General Resident Rate Suggestions:
• Raise resident rate to higher flat rate – $60 and $90 suggested (Repeat Idea)
• Revamp resident program with a much higher rate (no rate suggested) (Repeat
Idea)
o Stressed accessibility to the course vs. a bargain rate you can’t get a tee
time anyway
• Increase booking to 14 days (stressed access as the biggest complaint) (Repeat
Idea)
• Redefine Resident Card application process – don’t enforce trip to DMV for a State
ID card (New Idea)
• Make COMP rounds available to PD Residents (New Idea)
• Make one course Semi-Private for Residents (New Idea)
Champions Club Suggestions:
• City should increase size of club and memberships available due to small impact to
total Green Fee Revenue (Repeat Idea)
• Increase number of memberships available - (Repeat Idea)
• Times don’t have to be peak times – they could start later (New Idea)
• In regards to membership sale:
o Sale should be a lottery system – everyone who wants a chance at
membership is entered into a drawing (Repeat Idea)
o Why does the city offer Champions Club at all? It restricts access for
other residents - (Repeat comment)
Platinum Club Suggestions:
• Limit number of Platinum Card guests (New Idea)
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• Increase cost of Platinum Card (Repeat Idea)
General Thought Shared During Discussion:
• We should rethink over seeding times due to business levels over
Thanksgiving (New comment)
• City should sell Desert Willow to the Residents (New comment)
ADDITIONAL GENERAL COMMENTS
From 3/13/23 and 3/15/23 Meeting:
• Access is the issue. Cannot get on with resident card.
• Member has no issue paying more than $52 per round.
• Daily fee courses increase rates 30%, peak at DW is $260…Rating services show
Firecliff at #1 and MV at #6/7 we should do the same.
• Dec -Apr charge resident golfers $70-75….gentleman belongs to classic club and
pays $85.
• Cannot get on greens before 3:40 daily.
• How far out are groups booking and what are they paying?
• Willing to pay double just to get better access.
• Kemper sports management agreement is favorable to community. Profit motive
has been removed from their contract.
• Are changes to platinum card in play – yes.
• Can we allocate tee times for residents?
• Firecliff will shutdown next summer for renovation, which will further complicate
issue.
• Joining Champions Club - do two sessions (alternating weeks).
• What is the break-even point on price for residents to keep DW with positive
NOI/remain revenue neutral?
• PD Resident card holders feel they’re not being respected by council. An d they
have homes here & cannot get on the course.
• Raise group rates to makeup difference (outings) - ADR for outings is $175 in
season. Maxed out at 20%. Their rates have been increased over time.
• DW is catalyst to increase prices for all valley golf courses.
• Have a percentage of tee times set aside for residents. Have residents pay more
and allocate percentage of rounds.
• Limit resident slots to 2 vs. 4.
• Resident suggested they may be willing to pay up to $100, if better access
provided.
• Give residents an even footing with other programs as far as lead times on booking.
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• 60-day window opens up for hotel partners and public rack play. Currently only 7%
of business comes from Westin.
• DW staff really try to make things work.
• Council does not want to harm country clubs, resident agrees.
• JW/Shadow Ridge are not considered a "local country club."
• How is the council leaning---they're not. They're fully in support of these meetings.
• Thanked staff (City/DW) for providing ability to have these meetings.
From 3/20/23 Meeting:
• What portion of tee times are residents? Seven to ten percent.
• The membership revenue is included in the opportunity cost of Champions Club
• Suggestion of resident limited to two vs. four…. offended and would like to keep it
at four.
• How many are singles; can we have two go out vs. going with people they know?
• Tee times: hold on resident booking one foursome per hour during the key season,
for residents only at 12:00 p.m. booking window within three days.
• Firecliff closed from June 1 - Nov 1, 2024 (green expansion and tee renovations)
take down 4" of current turf and expand to original size.
• Average rate is just golf.
• Love the course. "Not a muni course". Silver Rock reserves 30% of tee times for
residents. How can La Quinta afford to do it? The 30% is secured primarily outside
of peak season.
• Econ omic Development impact of Desert Willow? Is the amenity driving people into
hotels?
• Extrapolate data on the difference between pre and post-Desert Willow.
• Key factor is access to the course. Continuously unable to access Desert Willow.
• Impact lack of access
• Platinum card purchase - if kept, go on sale for residents first during the first 24
hours, then outside the city.
• Course correction - to those who push Palm Desert for the golf course. The
opportunity residents have to play the course does not match access.
• Does the clubhouse make money - yes, but not exceptional.
• “Thanks, Todd, for doing the meetings, and appreciates the opportunity to discuss
directly. Staffing has been a big challenge. Average cost per round. - Weekenders
don't care what they pay for golf. They'll do anything to golf. Evaluate top
end.” Agrees resident rate must go up. Any revenue from the park. What kind of
programs can we create to take on the new resident homes? Looking at non-
resident rounds as well. Filet Mignon is .52/lb. but there is no steak available.
• Staying at Westin, they get a special rate. They have negotiated a discount.
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• Retreat also has a platinum card. We are having the same discussion with the
Retreat members.
• Would like to see the restaurant open in the evening until sunset.
• Closed at 3:00 p.m. at Cooks Grill. Staff is moved inside, so restaurants can be fully
staffed.
• Offering that a lottery be created and not sure if it would work.
• Parks – noncontrolled, so others come in and use the facilities.
• Champions Club - involved for 20 years but unable to this year. Only 64 were
permitted this year. There were open spots and last year they were full. The fees
were refunded. No consequences if no shows. Increase in Champions Members and
weighted lottery based on loyalty and participation.
• Loves Champions Club - well run. No -shows should be accountable. Willing to pay
up to $75/tee time. And willing to pay more for the resident rate.
• Group play question-asked about tee time rates for groups. They book the furthest
out. One of the highest paying market segments. Still studying if growth has met
the demand for non-resident fees.
• Cancellation rate and policy? 48hr cancellation - could be at booking. Been lenient
and can improve it.
• Champions Club - once a week on Wed mornings has tee times for organized play
and is extremely popular.
• Snowbird - surprised that everything was booked. No opportunity to play.
• Pay more to expand the club and for residents’ access.
• Differentiate CC vs. Public Access GC - we are building a golf course experience for
a day. Implement a semiprivate idea, which we are not willing to do…but DW was
never set up to provide a country club lifestyle for all residents.
• Small group of folks have gotten very nasty and did not move the needle.
• Platinum Club to residents only first idea is seconded and increase the price for
non-residents.
• Platinum Club card has never been able to use, but not during the off-
season. Unable to get on course during the season. So, on access with resident card
or platinum during the season. Snowbirds use Champions Club to gain
access. Saving a tee time during the day for residents and willing to pay an
increased resident fee for better access. Increase cost for Champions Club.
• Platinum Card was created to have a loyalty program for those who come and
return annually.
• Fiscal structure vs. programmatic issues - year-round residents don't mind paying
more if they can get better access.
• Next steps: one more meeting Wednesday. Then work on recommendations to Pres
Club, then the first meeting in April on Study session. Then ask them to make a
decision at the second meeting in April.
• No Show is very limited. Most are backfilled.
Desert Willow-25
• Goal - "one day experience." Drastically expand champions club. 1/week.
• Every Friday is secured for residents in Vancouver.
• Selling memberships in Champions Club - totally understand the
frustration. Looking at how to make it fair to all.
• A & B club would provide access every other week.
• Open slot in the current champions club that allows residents to step in. How many
is the right number for total sales in champions club? Why isn't there a list
somewhere? So, 64 were sold, so 52 can play. Pick-up game list to fill up empty
spots. Or make those who don't show pay.
• Create a waiting list on the top of 64 that participate. The secondary group with a
$70 round vs. the $52.
• 64-72 eligible to play. If you call on Tuesday and tell him it’s a higher rate, then
will jump on it ($85).
• F&B marketing issue that could be improved to increase revenue. In season stay
open later to watch the sunset. Restaurants are full during peak anyway.
• How many tee times are taken away by Champions Club - 52 players every
Wednesday AM.
From the 3/22/23 Meeting:
• The contract had a provision relative to positive cash flow that has been removed.
We’ve structured it differently but provided a loan that must be repaid.
• Officials at Indian wells, restaurants compared and huge difference. Indian Wells is
open late. Clubhouse overhead is extensive. A subsidy is only $700 but based on
meeting with them today for $2M.
• Benefit of the residents – if you want to request subsidized golf from Council that is
a policy question.
• Are we considering extending Champions Club to 72? Staff recommended 72
guests.
• Raise resident rates to $60 to balance the budget. Why are we down to one course
during November? Tax homeowners and ballot to provide support.
• Appreciates that it is not a park, needs to stand alone. Encouraging staff to increase
the price. Has given up trying to get on at $52. All golf has increased, just wants to
engage with Desert Willow for less than $200.
• Changing access is what is necessary to make things work.
• Champions Club loss of funds is insignificant. With out-of-state players, we should
recover costs from them. Pick of the litter course in CV.
• Make one course semiprivate…DOA from a Council perspective.
• How many rounds a year are comped – 2000 for PDHS/COD receive a third. Some
employees, but outside of customer play. Charitable donations for the community to
use and sold at auctions and play after 11:00 a.m.
Desert Willow-26
• As a golfer, it is one of the recreational opportunities in PD. Golf is a recreation like
all other events. Does not appreciate the council’s position on golfers vs. other
recreation uses (i.e., aquatic facility).
• Comp rounds for residents – within champions club to give residents an
opportunity same as those being comped.
• Cost to join champions? How many? And why? 32 weekly events, $299 and gives
access to the league. Is it a redundancy since it takes slots from residents? The staff
is top -notch, great course, and great views…. just want access with cost w/in
reason. 21 days out is not possible to access.
• Not looking for the bargain, just wants access at a reasonable cost. Calls this his
home course when here in winter. Get them out of going to DMV to gain access to
the resident card.
• Walton has a lot of detail he’d like to discuss. Would like to set up a meeting.
• Money lost from members who did not get in is not included. She did not like the
sign -up method used for Champions Club and should be redone this year.
• What is the relevance of the champions club – gives residents weekly access to DW.
• Loyalty membership – private club benefits.
• Split membership into two days.
• Augusta has a loyalty priority for Champions Club. Use priority as a selection.
• Standby membership to help champions club.
• 3 forms of charity rounds – include as cost of doing business: a subsidy to golfers.
• Why does the city want this to be a stand-alone?
• Revamp resident program: higher rate to support dollars and allow better access.
• City sells many resident cards. Why isn’t that revenue considered here. Those funds
are kept by DRD.
• Why keep a losing asset if residents cannot gain access?
• Some courses going to a hybrid seed – some are not reseeding roughs. Firecliff is
looking to go to same grass as Lakes. Let them do it first, and then see how it
works. Testing different versions of ryegrass.
• All the times that residents don’t play here, they are playing in other cities. They’re
taking their money elsewhere and being lost in PD.
• Would Council move away from a 3-day limit on residents? Going away from it
would not be a welcomed change.
• If we chose to do a loyalty-based selection on Champions Club, make it a ratio of
old vs. new members so as not to exclude anyone. So, if we have 80 slots, make 60
(long -time members) and 20 (new members). Then sign up 90-100 and provide play
to 60 players that are set each week, with the other 12 slots filled through a raffle.
Then those 12 automatically are set for the following week, and the rest of the 80
are raffled…or some version of that concept.
Desert Willow-27
From:Todd Hileman
To:Ryan Szydlowski; dwhite@desertwillow.com; Veronica Chavez
Subject:FW: Desert Willow - Resident Card/Champs Club/Platinum Club
Date:Wednesday, March 29, 2023 3:33:24 PM
Attachments:image001.png
image003.png
Todd Hileman
City Manager
760.776.6305
thileman@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
From: Todd Hileman
Sent: Wednesday, March 29, 2023 3:33 PM
To: Bobby Erickson <bobbyerickson0319@gmail.com>
Subject: RE: Desert Willow - Resident Card/Champs Club/Platinum Club
Hi Bobby:
We did have 4 input meetings over the past two weeks, attended by around 100 people or so. We are in the
process of taking all of the feedback and input we received to revamp both our Champions Club program and
our Platinum Club program and I hope resolve some of the issues with incremental progress. I will be asking
the City Council for a year to assess the changes, in the hopes that it improves access and I have asked Derek
and Ryan to continue assessing our progress and tweaking the program moving forward. If you go onto the
City’s website, there is a repository of feedback from the 4 meetings.
Thanks, Todd
From: Bobby Erickson <bobbyerickson0319@gmail.com>
Sent: Wednesday, March 29, 2023 3:29 PM
To: Todd Hileman <thileman@palmdesert.gov>
Subject: Re: Desert Willow - Resident Card/Champs Club/Platinum Club
Good afternoon Todd -I heard today that a meeting took place at DW to discuss the various issues. I'm guessing that is the meeting you referenced but I never heard about it until today.If there are any future meetings or opportunity to provide input, I'd love to be a par
Good afternoon Todd -
I heard today that a meeting took place at DW to discuss the various issues. I'm guessing that is the meeting you referenced
but I never heard about it until today.
If there are any future meetings or opportunity to provide input, I'd love to be a part of it.
I think there are some win-win opportunities to balance revenue generation and taking care of PD residents.
Thanks again for your dialog on this important issue.
PS - please call me Bobby ☺
On Tue, Feb 28, 2023 at 2:00 PM Todd Hileman <thileman@palmdesert.gov> wrote:
Desert Willow-28
Good afternoon Mr. Erickson:
Just closing the loop with you. I had a meeting with Derek, Ryan, and Veronica Chavez today and we are
going to host some on site input meetings in the next couple of weeks to listen to ideas such as you put
forth while working on an alternative cost structure for the City Council to consider in May. I would
appreciate your attendance and input while we are kicking around some ideas to better address course
access while not harming the Desert Willow budget.
Thanks, Todd
.
.
Todd Hileman
City Manager
760.776.6305
thileman@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
From: Bobby Erickson <bobbyerickson0319@gmail.com>
Sent: Sunday, February 26, 2023 2:52 PM
To: Todd Hileman <thileman@palmdesert.gov>
Subject: Re: Desert Willow - Resident Card/Champs Club/Platinum Club
Thanks Todd!
On Feb 26, 2023, at 2:40 PM, Todd Hileman <thileman@palmdesert.gov> wrote:
Thanks for your thoughts, all very good ideas. I have scheduled a call this week with Derek
and our Finance Director to kick some ideas around, as well as discuss how to get you and
other interested parties involved. You may be on to something about the timing of the
Champions Club. Will circle back soon. Todd
Sent from my iPhone
Todd Hileman
City Manager
760.776.6305
thileman@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
On Feb 26, 2023, at 1:38 PM, Bobby Erickson <bobbyerickson0319@gmail.com>
wrote:
Desert Willow-29
Good afternoon Todd -
Been giving some more thought to the resident program, and have also talked to
a lot of guys who are impacted.
To a person, access to DW is much more important than the rate we pay. While
we all love the $52 resident rate, and even the $110/$130 platinum rate, if we
can't get tee times, even for a single, then it's irrelevant.
It seems there would be an opportunity to meet the needs of the residents (tax
payers) while maintaining or even increasing the revenues the City of PD wants
and needs to generate. Here are a few thoughts:
- Increase to the resident rate (even as much as doubling it during prime season
- Allow residents access to the Platinum Club rate prior to other non-resident
Platinum Club members. Even a day or two prior to others access would help.
- As an alternative to the above, make the Platinum Club only available to
residents (or create a new residents only program)
- For Champs Club, move the weekly shotgun (or tee times if better) to late
morning or early afternoon so the prime time slots are available to the higher
paying public.
- Establish a pre-paid players card with special access to tee times.
- Have a monthly dues program availlable to residents with special access to tee
times.
Personally, I'd love to play DW two or even three days a week and would be
happy to pay a good bit more than the resident rate to do so. With the difficult
access to tee times currently, I'm looking at other area courses as options for
next year.
I'd hate to not be able to play DW regularly since it is such a fantastic golf facility
and so convenient to my Desert Falls home, but the ever increasing access issues
are making it an unfortunate reality.
Thanks again for your interest Todd. We all really appreciate it!
---------- Forwarded message ---------
From: Todd Hileman <thileman@palmdesert.gov>
Date: Thu, Feb 23, 2023 at 8:05 AM
Subject: Re: Desert Willow - Resident Card/Champs
Club/Platinum Club
To: Bobby Erickson <bobbyerickson0319@gmail.com>
Thank you for the note Mr. Erickson, I do remember you
well. I will think over your idea with staff and circle back. I
have asked staff to work on an updated proposal to expand
Desert Willow-30
the Champions Club and present it to the President’s
Committee and City Council in April and May, respectively.
I do like the idea of a group to work with staff to improve
the understanding of the course’s actual profits and
business model as long as it is a respectful process.
Todd
Sent from my iPad
.
.
Todd Hileman
City Manager
760.776.6305
thileman@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
On Feb 22, 2023, at 2:14 PM, Bobby Erickson
<bobbyerickson0319@gmail.com> wrote:
Good afternoon Todd -
I got paired with you late last year for golf at
Desert Willow, so thought I'd reach out to you.
There has been some recent chatter amongst
the Champions Club and other PD residents
about possible changes to the programs
designed for us. I don't have a copy, but
someone was passing around a letter to
Champs Club members encouraging an email
campaign to be sent to the City of PD.
I know you and I chatted about the challenges
of balancing the need to take care of the tax
paying residents vs. the revenue potential for
the general public golf rates, so wanted to offer
up the possibility of putting together an
advisory committee made up of PD residents
and city planners.
Desert Willow-31
There are a number of avenues that could be
explored that would address issues for all
parties.
Let me know your thoughts.
Thanks Todd!
Desert Willow-32
From:Sarah Castro
To:Veronica Chavez
Subject:FW: Desert Willow Resident program feedback
Date:Monday, April 3, 2023 2:55:37 PM
Attachments:50yearsresized_32178492-0560-4444-b657-c0c208d02055.png
.
.
Sarah Castro
Administrative Assistant
760.776.6349
scastro@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
From: Kelly Gilmore <kelly.gilmore50@gmail.com>
Sent: Monday, March 20, 2023 9:04 AM
To: Sarah Castro <scastro@palmdesert.gov>
Subject: Desert Willow Resident program feedback
The ability to actually get a tee time under the resident program is the most important issue. The cost saving price of $52 is meaningless if you can't get a time during peak season so there are only two choices for Palm Desert,1) increase the pre-booking time to more than 3
The ability to actually get a tee time under the resident program is the most important issue. The cost saving price
of $52 is meaningless if you can't get a time during peak season so there are only two choices for Palm Desert,
1) increase the pre-booking time to more than 3 days
2) reserve some times for residents only
i am also a member of another valley golf course so we do not rely on Desert Willow for the majority of our golf,
however it is a huge advertising opportunity to be able to take guests (potential new members residents etc) there
and it would be nice if they got a bit of a break on their fees as well. There could be limits on how many guests per
season.
it is also clear that Desert Willow could use another 9 or 18 holes of course so instead of building more
accommodation, add more greenspace/golf course to take some pressure off the existing course
Kelly Gilmore
Desert Willow-33
From:Sarah Castro
To:Veronica Chavez
Subject:FW: Desert Willow Residents Golf Program - Invited Comments
Date:Tuesday, March 21, 2023 11:52:35 AM
Attachments:50yearsresized_32178492-0560-4444-b657-c0c208d02055.png
.
.
Sarah Castro
Administrative Assistant
760.776.6349
scastro@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
From: MICHAEL FRAHLER <MICHAEL.FRAHLER@outlook.com>
Sent: Tuesday, March 21, 2023 11:48 AM
To: Sarah Castro <scastro@palmdesert.gov>
Subject: Desert Willow Residents Golf Program - Invited Comments
Almost all the comments I read from your two meetings are based on the very low to none ability to get a resident rate tee time. I would guess that Desert Willows was built to be of a benefit to the residents and also to attract visitors to Palm Desert. As a resident, I have give
Almost all the comments I read from your two meetings are based on the very low to none
ability to get a resident rate tee time. I would guess that Desert Willows was built to be of a
benefit to the residents and also to attract visitors to Palm Desert. As a resident, I have given
up on trying to get a tee time, except in the heat of the summer. I hear the same grumblings
from other resident golfers I run into; nobody is very happy about the situation.
On the other hand, the residents of Indian Wells I have played with at their city Golf Resort,
are happy with their resident program and have offered no complaints. Why not copy their
program and improve our situation, without all the many complicated aspects and tiered
programs we have now for getting tee times, and with more being suggested? The Indian
Wells program is very simple - for resident golf: $50 annual fee, $50 green fees, 14 day
advanced reservations; for non-resident rates: 30 day reservations.
Desert Willow-34
From:Ryan Szydlowski
To:Derek White; Todd Hileman; Veronica Chavez
Subject:FW: Follow up to info forum sessions
Date:Thursday, March 30, 2023 10:05:23 PM
Some last minute feedback trickling in… Mrs. Zech attended the 4th meeting. I believe her reason for
following up is she felt the meeting got “taken over” by Champions Club concerns.
See you tomorrow!
Ryan Szydlowski PGA Director of Golf
l Desert Willow Golf Resort l 38995 Desert Willow Drive Palm Desert, CA 92260
l Phone: 760.346.7060 ext. 147 l Email: rszydlowski@desertwillow.com
l Website: www.desertwillow.com l Instruction Available: Palm Desert Golf Academy
l Have More Fun: Book A Lesson Today!
From: marianne zech <mariannezech@msn.com>
Sent: Thursday, March 30, 2023 2:54 PM
To: Ryan Szydlowski <rszydlowski@desertwillow.com>
Subject: Follow up to info forum sessions
Hello Ryan et all-city council, Kemper sports etc,
Thank you for conducting your four info sessions pertaining to feedback on Desert Willows resident
interests and also sharing the financial and back ground information re. DW from its conception, 25 years
ago.
I also appreciated reviewing the meeting minutes from all four sessions, as the one I attended had
attendees most concerned about the Champion Club.
In the essence of time, I would like to just briefly comment on some of the suggestions mentioned in
those meeting minutes or summaries, and perhaps include some comments of my own.
Resident Cards:
~ This is tricky, no doubt!
~Various things were mentioned here, and as a resident, I would still maintain an increase to the golf
round from 52 to $60 (?) is reasonable keep up with increased costs and to help maintain the course, and
balance the ADR. However, giving something back to the residents in terms of booking windows and
availability might be necessary too.
~I think the idea of a graduated price before/after 1:00pm mentioned in notes, or in season options (Oct-
Dec vs Jan -April) might become too confusing and difficult to manage but might be a consideration,
pending how things are structured. I would caution on the simplest decisions for all involved.
~I also support some sort of a resident hybrid card combined with the Platinum card...see below.
Platinum cards:
~I think retaining these for residents and not opening them up to everyone is a great idea and would help
with tee time availability. Again, slight increase here to help ADR?
~Perhaps a non resident card at $1000 or so to help the tee time availability to residents and help
balance the ADR.
~Perhaps a discount, but also a visitors surcharge to the guests staying at the adjacent hotels.
Desert Willow-35
Apparently this exists anyway for Palm Desert tourists/visitors staying at hotels etc?
Champion Club:
~ This one is tough as it is a club within a public course?
~Perhaps deeming one course semi private and including this offering within that context?
~However, if the Champion Club needs to exist to accommodate residents, then again, the fee needs to
increase, the resident rate needs to increase as mentioned above to help balance the ADR's.
~The "Club" needs to be inclusive to operate under the umbrella of a public course. Our tennis facility
does a "lottery" for "popular ladies night" bc there are 6 courts and can only accommodate 24 at each
designated time...this is similar to golf. Those that are not selected from the lottery, have first chance to
automatically be in for the next season. Perhaps the CC has a fall and winter and spring league, or this
method can be granted on an annual basis.
Inn addition, those not accepted in the lottery payment, can be available as subs, for any given week, a
benefit for those not accepted in the lottery. This a good spot to be in for those that may not be able to
play every single week.
Food and Beverage:
I am a member of a golf club outside of Palm Desert and have served on various committees. Food and
beverage never makes money but ideally, the hope is not to have too much loss. It is there as a service
to members. However, where money is made, and where marketing emphasis is targeted is on the large
party, wedding, business meeting, private company holiday parties, etc. and this has proven to be
successful in generating income.
Capital Considerations:
~I am not fully understanding how Desert Willow is a municipal course to the city of Palm Desert, initiated
and created 25 years ago to help generate revenue for the city of Palm desert (which it has-and made it a
destination!), and yet not be liable to upcoming course capital improvements? I think the city council
needs to look hard at this and commit to be responsible for this entity, the Aquatic, pool, the parks, the
courts, etc., even if a surcharge needs to be applied to property taxes in some way?
~If not, than a capital improvement surcharge will need to be added to every golfer in the next year to
help pay for this large expense?
Thank you for you time in running these meetings and sharing the process with us.
Good luck to you in your decision making and modifications.
Marianne Zech
MMB Designs
1732 Lake Washington Blvd
Seattle, WA 98122
(206) 310-3319
Desert Willow-36
From:Sarah Castro
To:Veronica Chavez
Subject:FW: Resident play at Desert Willow
Date:Tuesday, March 21, 2023 8:18:50 AM
Attachments:50yearsresized_32178492-0560-4444-b657-c0c208d02055.png
Importance:High
.
.
Sarah Castro
Administrative Assistant
760.776.6349
scastro@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
From: Gene Hunt <Hunt_home@msn.com>
Sent: Tuesday, March 21, 2023 6:50 AM
To: Sarah Castro <scastro@palmdesert.gov>
Subject: Resident play at Desert Willow
Hello, I read through the comments from your first two meetings. As one of the original members of the Mens’ Club when it first opened, I have watched our ability to play diminish to zero. I have not been able to get a tee time for over five months. Offering a tee time at 3:40 PM
Hello,
I read through the comments from your first two meetings. As one of the original
members of the Mens’ Club when it first opened, I have watched our ability to play diminish
to zero. I have not been able to get a tee time for over five months. Offering a tee time at
3:40 PM, when the sun will set in about one hour and a half, is not really offering anything.
You would be luck to get in nine holes.
A lot of the suggestions were good. The bottom line is more access. If the price
needs to rise, so be it. However, remember who was there when the course opened and who
supported the club. Also remember that it is not the fault of residents that someone decided to
put in the (upgraded?) restaurant, thus bundling in more overhead. Then allowing the course
operators to blame the residents as the cause of any shortfalls. Bad analysis.
I once asked Rodney Young, the manager at the time, “are you a golf course with a
restaurant, or are you a restaurant with a golf course? The paused for about fifteen seconds
and replied, “ I’m not sure.” A telling answer. The restaurant was a bad idea. When
Desert Willow-37
originally opened, it forced out players who came in after a round, wanting us to wait 30 to 45
minutes to be seated. All the time allowing people waiting to take space in the seating area
that had been the previous dining area.
I used to spend thousands of dollars a year at the club having meals after golf one to
two times a week and also money in the golf shop. Don’t do either of those now.
I have one additional idea, how about limiting the number of free rounds that the
course management gives away to visiting golf course personnel and VIP’s. It was hundreds
of rounds a year the last I heard. If there is such a revenue bind, would it not generate more
income to let residents play instead of giving away rounds? Interesting they can do that with
no restrictions.
Thanks for any help you can offer. As you can tell, pretty disappointed by the whole mess.
Residents should be treated better.
Thank you,
Gene Hunt
760-835-7848
Sent from Mail for Windows
Desert Willow-38
From:Sarah Castro
To:Veronica Chavez
Subject:FW: Sunrise 9 hole
Date:Wednesday, March 22, 2023 12:19:37 PM
Attachments:50yearsresized_32178492-0560-4444-b657-c0c208d02055.png
Thank you,
.
.
Sarah Castro
Administrative Assistant
760.776.6349
scastro@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
-----Original Message-----
From: Laura Miller <lmillerpt@me.com>
Sent: Wednesday, March 22, 2023 11:38 AM
To: Sarah Castro <scastro@palmdesert.gov>
Subject: Sunrise 9 hole
Similar to Torrëy Pines, how about having a walk up tee time for 9 holes at half the resident rate from 6am-7am (or
first hour of the day). I bet a lot of residents would like the opportunity to play 9.
Laura Miller
Resident
Sent from my iPhone
Desert Willow-39
From:Todd Hileman
To:Derek White; Ryan Szydlowski; Veronica Chavez
Subject:Fwd: Update
Date:Thursday, March 30, 2023 10:18:56 AM
Attachments:50yearsresized_32178492-0560-4444-b657-c0c208d02055.png
Screenshot 2023-03-27 at 11.13.59 AM.png
Original Charter Compare 2023 copy PDF.pdf
We sent you safe versions of your files.msg
50yearsresized_32178492-0560-4444-b657-c0c208d02055.png
Sent from my iPhone
.
.
Todd Hileman
City Manager
760.776.6305
thileman@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
.
Begin forwarded message:
From: Kathleen Kelly <kkelly@palmdesert.gov>
Date: March 30, 2023 at 10:02:19 AM PDT
To: Todd Hileman <thileman@palmdesert.gov>
Subject: Fw: Update
FYI
.
.
Kathleen Kelly
Mayor
760.776.6316
kkelly@palmdesert.gov | www.palmdesert.gov
73510 Fred Waring Drive, Palm Desert, CA, 92260
Desert Willow-40
.
From: Tom Walton <twalton@me.com>
Sent: Wednesday, March 29, 2023 3:41 PM
To: Kathleen Kelly <kkelly@palmdesert.gov>; Gina Nestande
<gnestande@palmdesert.gov>
Cc: Cliff Lindgren <cliff5447@gmail.com>; Kevin Fahey <faheykevin@comcast.net>;
Fred Johns <nevadajohns@prodigy.net>
Subject: Update
Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when
opening files.
Hi Kathleen and Gina,
Resident update for your considerations:
The Desert Willow Golf Resort and Resident Card message (at the bottom) has been proudly
displayed on Palm Desert’s website for decades.
There is an implied value for residents who purchase a Desert Willow Golf Resort Card.
They can play their courses at the discounted resident rate. But that is not true today!
All Platinum Members, including the 240 Resident Platinum Members, who paid $72K in
annual membership fees this season, only to find out that the implied value was not delivered.
The 21-day advanced bookings privilege did not help these residents gain access as in past
seasons.
Palm Desert has a bitter/sweet problem at DWGR. The Public rack demand is greater than
ever seen and this market is willing to pay top dollar to play DWGR. This rack is also
allowed to book tee times up to 35-days in advance and they have purchased most of the tee
times in season the past two years. (Sweet - Last FY DWGR’s Green Fee Budget was $7.1M
and it generated $9.1M, exceeding budget by $2M. That’s a 28% revenue increase over
budget - unheard of financial gain. We refer to this extra green fee revenue as “Pennies from
Heaven”! This FY the Green Fee projection is $9.6M, $500K higher than last FY. (Bitter -
Resident access for both the Resident Golf Memberships and the Resident Platinum
Memberships is not being delivered.)
Residents have proposed a solution to Staff and KSM.
1. The Resident Platinum Card strategy is outdated and obsolete. Why - because residents
can’t get access 21-days in advance.
2. Resident Platinum Card expansion from 240 to 400 does not improve resident access in
Desert Willow-41
this market.
3. Solution — Protect 20% of the morning tee times in future seasons for the resident golf
card members and challenge DWGR to maximize the non resident ADPR with the remaining
80% of the tee times.
This is the only way to responsibly limit and protect any resident privilege/benefits in future
years at DWGR.
Residents choosing to access these protected morning tee times in season would pay for most
of this resident value with an upgraded Resident Golf Membership and higher green fee
rates. Those residents not wishing to upgrade would still have an opportunity to book a tee
time 3-days in advance and pay the $52 resident rate.
The 20% shouldn’t alarm anyone. Why? From 2009-2017 the average resident rounds sold
represented 24% of the total rounds sold at DWGR.
If residents are willing to pay for most of the upgraded privilege/benefit, this would
relieve the resident access problem in season, it would eliminate the resident ill will built
up over the past years, it would take pressure off the Champions program and upset
resident golf member's letters to council would be a thing of the past.
Sounds like WIN, WIN, WIN solution.
Thank you for taking time to consider.
We’re available to help in any discussions regarding this proposed solution.
Best,
Tom
P.S. Something else to consider. The other side of the ledger. DWGR’s operating costs,
projected to eclipse $13M this FY. Somehow, you would think there was a way to protect
20% of the morning tee times in season for residents especially when they could cover most
of the opportunity cost. We would think the City could justify some opportunity cost for its
2,000 resident golf card members at this City’ flagship amenity.
Desert Willow-42