HomeMy WebLinkAbout2016-05-26 Study Session - Golf Course Operations Market Study CITY OF PIILM DESERT
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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 Thursday, May 26, 2016, at 2:00 p.m. in the Administrative
Conference Room of the Palm Desert Civic Center, 73510 Fred Waring Drive,
Palm Desert, California 92260. Said Study Session will be for the purpose of discussing
the Golf Course Operations Market Study.
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RAC 1- LLE D. KLASSEN, ITY CLERK
CITY OF PALM DESERT, CALIFORNIA
MAY 20, 2016
NO ACTION WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
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- HOT DEAL, COOL CARD
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Desertt
Will
Golf Resort
TireclifF• Mountain View
38-995 Desert Willow Drive•Palm Desert,CA•92260
1111
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SUMMER VIP CARD GREEN FEES
April 11,2016-May 30,2016 Published Summer VIP
•Sunrise(Open-8:55am) $13-5 $85
•Prime(9:00am-10:55am) $4-35 $75
•Twilight(11:00am-12:55pm) $95 $65
•Sunset(After 1:00pm) $75 $55
May 31,2016-September 25,2016
•Sunrise(Open-9:55am) $95 $35
•Twilight(After 10:00am) $65 $25
SUMMER VIP CARD BENEFITS
•Discounted Green Fees for Cardholder
•Secure Tee Times up to 7 Days in Advance
•1 HourEarlier Twilight than Non-Cardholders
•50%OFF Driving Range
•25%OFF Apparel(Non-Sale Items)
•15%OFF Accessories and Footwear(Non-Saleltems)
•15%OFF Golf Lessons or Golf Schools
•10%OFF Restaurant Dining(Food Only)
•Valid April 11,2016 through September 25,2016
Desert
Will
Golf Resort
TIrecIf♦ Mountain View
(760)346-7060•www.desertwillow.com/VIP
38-995 Desert Willow Drive•Palm Desert,CA•92260
Kempersporls•
*Due to a bunker renovation,tee times on the Firediff course will be
limited or unavailable after Monday,May 16,2016.
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Management Agreement Market Study
On direction by the City Council of the City of Palm Desert, City staff along with Kemper Sports
Management Staff at Desert Willow were requested to perform a market study between Desert Willow
and several comparable properties within the local region, within the state of California and nationwide.
The focus was to provide an analysis of management contracts and agreements for operations of
municipal golf courses and resorts; and compare the data to Desert Willow's contract with
KemperSports Management, Inc.
Information was gathered by contacting other cities directly, KemperSports' contracts and through the
utilization of a recent study performed by Pro Forma Advisors for the City of Santa Barbara.
The operational agreements and contracts are vast and often tailored specifically for each property's
goals and expectations. Most of the specialized and individualized management contracts and
agreements can be summarized within the most common Management Agreement Models. Below are
summaries of the most common models of facility management:
Management Agreement Model -The Management Agreement model, although observed at only
about one-quarter of the Southern California municipal golf courses, is the most common model
employed in the municipal golf market today.The City enters into a fee-for-service agreement with a
Director of Golf, General Manager, or an outside management company. Under a typical management
agreement,the facility owner (City) receives all revenues and is responsible for funding all capital
improvements, operating expenses and capital reserves. In addition,the City pays the operator a fee for
management of the facility. In effect,the professional operator serves as the City's agent in managing,
operating and maintaining the golf facility. Management compensation typically consists of a base fee,
plus performance incentives.The "management agreement model" currently accounts for 23 percent of
the 83 municipal golf courses in Southern California,although in recent years the model has been
employed in the majority of the municipal transactions.
Golf Facility Lease Model - Under the Golf Facility Lease model,the City would enter into a long-term
facility lease with a private golf course operator who provides course maintenance, golf operations, and
overall facility management.The food and beverage operation may be included or provided through a
separate lease.Typically,the lease model has been utilized when a private entity will be investing
significant capital into the facility.The operator's lease payments typically are based on a minimum
rental payment versus a percentage of gross revenues derived from golf, merchandise, food and
beverage, etc. Under a typical facility lease,the lessee receives 100 percent of the revenue and is
obligated to fund required front-end capital improvements, operating expenses, and a capital reserve
fund.This model is not as common in today's municipal golf market, although it is the model employed
in over one-half of the municipal golf courses in Southern California.The "golf facility lease model"
currently accounts for 57 percent of the 83 municipal golf courses in Southern California, although in
recent years the model has been employed in a much smaller percentage of the municipal transactions.
Full Self-Operation Model -The Full Self-Operation model,whereby the facility is operated fully by the
City with a City workforce, is very uncommon and movement away from this model continues given
higher public employee compensation labor costs.This model is not seen as a viable option for Santa
Barbara at this time. Currently,the "full self-operation model" accounts for 6 percent of the 83
KemperSports-
Page 1
municipal golf courses in Southern California. In addition, there are two recreation districts (two
percent) in Southern California which operate municipal golf courses.
There are economic and non-economic advantages and disadvantages of the various types of operating
structures, and the most appropriate structure generally is strongly influenced by the objectives of the
owner(City). Most of the advantages and disadvantage of each approach are summarized in the table at
Appendix A.
Desert Willow currently operates under the Management Agreement Model and Appendix B shows a
comparison of multiple agreements across various criteria. Comparisons were done with individual
properties as well as summaries of KemperSports' portfolio of managed properties. Management
agreements contain a wide range of responsibilities depending on the amenities offered at the facility.
The comparison denotes the services under management for each contract such as Course
Maintenance, Golf Operations and Food & Beverage Operations.
Management fees are evaluated as a percentage of total gross revenues. The analysis at Appendix B
shows a range of agreements between 2%and 6%of total gross revenues. The average management
fee of the sample,which includes 25 KemperSports properties and 8 others, is 4.3%of total gross
revenues. The cost of the each management agreement can vary significantly due to some of the
following factors:
• Any Non-compete Restrictions
• Required Centralized Services Reimbursements (Accounting, Marketing and Others)
• The Number of Years of the Agreement
• The Number of Courses a Management Company has in the area
• The Amenities the Facility Offers
• Cash Financing Arrangements
In summary, Desert Willow has a management fee of 4.6%of total gross revenues, while carrying a 20
mile non-compete restriction and a cash management financing clause.
;•; KemperSports Page 2
Appendix A
Operational Model Analysis
Full Self Operation Management Agreement Facility Lease
STRENGTHS
• Provides highest level of City • Provides strong financial return • Provides reasonably strong
control over rates, policies, to the City financial return to the City
practices and overall golf • Provides high level of city • Minimizes financial risk
experience control • Minimizes political influence
• Availability of City overhead • Greater potential quality with less direct involvement of
support functions assurance the City with setting fees,
• Full Participation in upside • Opportunity to provide shorter policies and practices
financial performance and term contracts • Offers potential benefits in golf
potential efficiencies in • Potentially more compatible management expertise and
retaining all golf operations with multiple operator options specialized maintenance
functions • Provides opportunity to retain support services
• Provides opportunity to retain specialists in professional golf • May provide private capital
specialists in golf operations management investment in facilities
and food and beverage • Capture benefits of private
• Preserves option to convert to sector wage and benefit
alternative operating option structure
WEAKNESSES
• Constrains ability of • Requires more City • Minimum operational and
management to adapt and involvement than facility lease quality control
respond to dynamic market option • May involve long-term
conditions • Minimizes private capital contractual commitment
• Entails substantial financial risk investment in facilities • Minimizes financial upside
• Involves higher public sector • Entails greatest level of city • Current weak market for
wage and benefit structure financial risk facility leases
• Reduces opportunity to attract • Potential conflicts over capital
private capital due to reduced reinvestment responsibilities
lessee control of contracting parties
• Potentially difficult to retain
Pro Shop and instruction
concessionaires
• Relatively high City monitoring
requirements
_,• KemperSports'
Page 3
Appendix B
Golf Course Desert Willow Golf Resort Indian Wells Golf Res('Oak Shoreline Encinitas Ranch
location Palm Desert, Indian Wells,CA ,ek,CA Mountain View,CA Encinitas,CA
Golf Week Top 50 Muni(Yes/No) Yes(Firecliff) Yes(Players&Celebril • ,
Course Type Upscale Municipal Upscale Municipal pal •-
Number of Holes 36 36
Owner City of Palm Desert City of Indian Jells Creek City of Mountain View Encinitas Ranch Golf Auth.
Operator KemperSportsTroop Golf ;o Touchstone Golf JC Resorts
Agreement Date 2013 2014 ,
Term(Years) 3 5
Options Two 3-year One 5-year None
Options Holder City City City
Annual Gross Revenue $ 10,500,000 $ 13,20C4,000,000 $ 3,000,000 $ 4,500,000
Base Annual Fee $ 300,000 $ 285 156,000 102,000 $ 180,000
Lesser of 3%or CPI fa
CPI Adjusted NO preceding year No Yes
ss revenue
get;7.5% .75%of gross golf revenue
5%of gross revenue in excess revenue 0'•I .
Incentive Structure of 0 000 None )udget in excess of$2,500,000 direct
Management Functions
Annual Compensation
Base $ 300,000 $ 285 156,000 $ 102,000 $ 180,000
Reimbursements $ - $ 24,000
Incentive $ 180,000 000 $ 25,000 $ 35,000
Total $ 84 0.000 11111 •
%of Total Gross Revenue 4.6% 3.2% 4.2% 5.3%
Centralized Services$2
Payroll Administration$
Employee&Benefits Ad
Reimbursements None $65k None Acct-$24k per year
Performance/Other Deposit None None None None
Non-Compete Restrictions 20 Mile None None None
Management Fees not
allowed to be lower as a
Operator required to maintain percentage of Gross Reve
cash at$500k. Operator than any other Daily Fee,
provides funding as an Resort with revenues ove
Other Items of Note interest free loan as needed. million in USA. None None
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• Golf Course Management Market
DesertComparison Study
Y
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Golf Resort • Financial Performance
• Customer Service Perfor ;. , • pow. 1
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Market Comparison Study
On direction by City Council, City and Kemper Sports Management (KSM) staff were directed to
perform a Market Comparison Study of typical golf course operation/management agreements
employed nationally, statewide and, locally. The intent of the Study is threefold;
1 . To obtain updated information regarding golf course operation agreements and,
2. Generate a comparative analysis of the KSM Desert Willow Golf Resort Agreement
with other golf course operation agreements and,
3. Determine if the current KSM agreement model provides the optimum benefit to
the City, its residents and, the Desert Willow Golf Resort.
Information for the Study was gathered by; contacting other cities/golf courses, research of other
KSM public golf course contracts and, utilization of the recent Pro Forma Advisors Golf Course
Study performed for the City of Santa Barbara.
Golf course operational agreements are varied and tailored specifically to meet each property's
goals and expectations. In general, public golf courses operate under one (or a hybrid) of three
contract formats as follows; a Self Operation, a Facility Lease and, a Management Agreement.
The following table demonstrates the strengths and weaknesses of the respective contracts:
KemperSports' 2
404
• s
Market Comparison Study-Contracts
Self Operation Management Agreement Facility Lease
STRENGTHS
• Provides highest level of City control • Provides strong financial return to • Provides reasonably strong financial
over rates, policies, practices and the City return to the City
overall golf experience • Provides high level of city control • Minimizes financial risk
• Availability of City overhead support • Greater potential quality assurance • Minimizes political influence with
functions • Opportunity to provide shorter term less direct involvement of the City
• Full Participation in upside financial contracts with setting fees, policies and
performance and potential • Potentially more compatible with practices
efficiencies in retaining all golf multiple operator options • Offers potential benefits in golf
operations functions • Provides opportunity to retain management expertise and
• Provides opportunity to retain specialists in professional golf specialized maintenance support
specialists in golf operations and management services
food and beverage • Capture benefits of private sector • May provide private capital
• Preserves option to convert to wage and benefit structure investment in facilities
alternative operating option _
WEAKNESSES
• Constrains ability of management to • Requires more City involvement than • Minimum operational and quality
adapt and respond to dynamic facility lease option control
market conditions • Minimizes private capital investment • May involve long-term contractual
• Entails substantial financial risk in facilities commitment
• Involves higher public sector wage • Entails greatest level of city financial • Minimizes financial upside
and benefit structure and liability risk • Current weak market for facility
• Reduces opportunity to attract leases
private capital due to reduced lessee • Potential conflicts over capital
control reinvestment responsibilities of
• Potentially difficult to retain Pro contracting parties
Shop and instruction concessionaires
• Relatively high City monitoring ;+; Kc:mperS}xws
requirements
0
Market Comparison Study-Courses
olf Course Desert Willow Golf Resort Indian Wells Golf Resort Tahquitz Creek SilverRock
Location Palm Desert,CA Indian Wells, CA Palm Springs,CA La Quinta,CA
Number of Holes 36 36 18 18
•perator KemperSports Troon Golf Century Golf Landmark
erm(Years) 3 5 5 5
nnual Gross Revenue $ 10,500,000 $ 13,200,000 $ 4,900,000 $ 3,500,000
Annual Compensation
Base $ 300,000 $ 285,000 $ 225,000 $ 96,000
Reimbursements $ 140,000 $ -
Incentive $ 180,000 $ - $ - $ -
Total 480 000 S 425.000 S 225.000 S 96.000
%of Total Gross Revenue 4.6% 3.2% 4.6% 2.7%
Centralized Services$25k;
Payroll Administration$50k;
Employee& Benefits Admin
Reimbursements None $65k None
Performance/Other Deposit None None None $ 25,000
Non-Compete Restrictions 20 Mile None None None
Management Fees not allowed
to be lower as a percentage of
Operator required to maintain Gross Revenue than any other
cash at$50ok. Operator Daily Fee/Resort with
provides funding as an interest revenues over$10 million in
Other Items of Note free loan as needed. USA. None None
.. KcmperSports
♦.0
Market Comparison Study-Fee Factors
The following factors typically influence the fee for services
proposed in a golf course operation/management agreement.
— Non-compete Restrictions
— Requirements for Centralized Services Reimbursements
(Accounting, Marketing, and Others)
— Number of Years in the Agreement Term (5 yrs. typical)
— Number of Courses operated by the Management Company within
the Market Area
— Amount of Amenities Included in the Facility
— Cash Financing Arrangements
— Standard of Quality and Customer Service
— Number of Additional non-Golf Related Events at Site
0 KemperSports 5
♦*�
1 �
KemperSports Contract
Management Fees earned in two components:
— Fixed Management Fee
• Monthly contract fee of $65,750 allocated in two separate increments:
— $25,000 Base Management Fee (or $300,000 annually)
— $40,750 Allocated for Key Employee Payroll Expenses
» Amount is reconciled annually and trued up to match actual
payroll costs.
» Amount not considered a part of management fee, but is
reported as a Desert Willow operational expense in the income
statement for actual payroll expenses.
— Percentage Management Fee
• Calculated and paid annually at 5% of Gross Revenues in excess of
$6,500,000. Contract provides for a threshold of $175,000 with a 3%
annual increase.
KemperSports' 6
0
KemperSports Contract
Key Contract Clauses:
— 20 Mile Radius Restriction
• Section 3.13 restricts KSM, its affiliates or subsidiaries from owning
and/or operating any other golf facility within a 20 mile radius of the
Desert Willow Golf Resort.
— Minimum Operating Cash Requirement of $500,000
• Section 7.4 requires KSM to maintain a minimum operating cash
balance of $500,000 throughout contract term. Note: KSM has
occasionally provided up to $1 ,400,000 of funding (over multiple months
at 0% interest) during their agreement term.
;•; KemperSports 7
• s
DWGR Financial Snapshot
2014/2015 2013/2014 2012/2013 2011/2012
Golf Revenue $ 7,894,676 $ 7,804,903 $ 7,349,155 $ 7,635,352
F&B Revenue $ 2,671,630 $ 2,450,213 $ 2,343,733 $ 2,314,665
Total Revenue $ 10,566,306 $ 10,255,116 $ 9,692,888 $ 9,950,017
E B I TDA $ 1,498,769 $ 1,391,720 $ 607,759 $ 841,560
Cash Flow $ 226,117 $ 45,943 $ (371,773) $ (111,165)
Rounds 87,252 89,001 84,314 86,671
Average Green Fee $ 72.78 $ 71.21 $ 70.64 $ 71.64
Peak KemperSports
Loan (Interest Free) $ 1,016,067 $ 1,387,329 $ 951,171 $ 544,521
*Note: The city of Indian Wells general fund contributed $1.4 million and $2.4 million for
the fiscal years ending 2015 and 2016 to support operating expenses at IWGR.
0 KemperSports' 8
0
Desert Willow Golf Resort vs. Indian Wells Golf Resort
Total Facility Revenue
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2012 2013 2014 2015
EBITDA (Operating Incorn - } Comparison
$1,600,0tK3
$1,400,000
$1,200,000
$600,000
$400,000 W��_____._._.__ .-.,.__.____
$200,000
201 2013 2014 <. ? 201
DWGR IWGR
KemperSports' 9
0
Customer Service Performance-Orca Report
The ORCA Report is new to the region's golf industry and specifically
analyzes golf rounds and revenues. ORCA is similar to the Hotel
Industry's STR report which compares room occupancy vs. revenues.
ORCA establishes a competitive set for each facility evaluated. Desert
Willow's competitive set includes the following golf courses:
— Marriott's Shadow Ridge Golf Course
— Indian Wells Golf Resort - Celebrity Course
— Indian Wells Golf Resort - Players Course
— SilverRock Resort
— La Quinta Resort & Club - Dunes
— La Quinta Resort & Club - Mountain
— Classic Club
— PGA West Norman Course
— PGA West Stadium Course
— PGA West Nicklaus Course
0 KemperSports 10
r ♦
Customer Service Performance-ORCA Report
ORCA Report - Revenue Per Available Round
$60.00
$50.00
$40.00 �_______._____ __ _e____..____
I$20.00
I I I I
261 .01 21
Fi recliff Mountain View Competitive Set
Rank Among Competitive Set Running 12 Month
2014 2015 2016
Firecliff Ranking 3 of 11 1 of 11 1 of 11
Mountain View Ranking 3 of 11 2 of 11 1 of 11
Statistics through April 30, 2016
0 KemperSports' 11
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Customer Service Results-TrueReview
KemperSports TrueReview
TrueReview serves as the measuring tool for our proprietary TrueService
customer service program. TrueReview surveys are sent daily to all golfers
who played the previous day. Below is a summary of the customer
responses for the last two years and the current year through April:
DESERT WILLOW GOLF RESORT
Fiscal Year Net Promoter Overall Service Course Food Recommend # of
Score (NPS) Rating Rating Rating Rating Rating Surveys
2015/2016 YTD 78.6 9.1 9.4 8.6 8.5 9.3 2,070
2014/2015 73.8 9.0 9.3 8.6 8.5 9.2 1 ,821
2013/2014 72.5 8.9 9.1 8.7 8.4 9.2 1 ,209
OKemperSports' 12
0
Customer Service Performance-NPS
Below is a list of current Net Promoter Score (NPS) ratings for several
`industry leading' companies. The Desert Willow Golf Resort rating is
highlighted for comparison.
Company 2015 NPS Score
Desert Willow 78.6
Costco 79
Starbucks 77
Amazon 69
Southwest Airlines 62
Westin 59
Walt Disney 50
Apple 47
NGF Premium Facilities 44
Nike 30
* • KemperSports' 13
♦ ♦
Customer Service Performance-Internet
Desert Willow is also measured by customers on external websites. Below is a
summary of Desert Willow's results on popular sites:
Trip Advisor Ranking Overall Excellent Very Good Average Poor Terrible Total
Reviews
(Cummulative Results)
Golf(Attraction Category) #6 of 23 4.5 of 5 158 54 15 8 2 237
F&B (Restaurant Category) #22 of 204 4.4 of 5 82 33 16 4 2 137
Certificate of Excellence Award by Tri p Advisor in both categories
YELPTotal
Overall 5 Stars 4 Stars 3 Stars 2 Stars 1 Star
Reviews
(Cummulative Results)
4 Star
DWGR Rating 39 24 5 11 7 86
Golf Advisor Total Recommend
Overall 5 Stars 4 Stars 3 Stars 2 Stars 1 Star
Reviews %
(Cummulative Results)
Firecliff 4.3 Star 55 30 11 5 2 103 89.8%
Ratin.
Mountain View 4.5 Star 67 38 4 0 3 112 95.5%
Rating
Kemper:S(x)tts
♦,0
* t.
Awards
Southland Golf Magazine I Golfweek's Best Municipal Course
• #1 Best Golf Course I
BEST OF • #1 Best Value 12015
• #1 Best Scenic View 12015
21i1S\ • #1 Best 18th Hole 12015
• #1 Best 19th Hole 12015
• #1 Best Bar View 12015
Golf Range Association of America I Top 50 Public Ranges
GRAA • Top 50 12015
2015 TOP 50
PUBLIC RANGE
Golfweek Magazine I Golfweek's Best Resort Courses
• Top 200 12016
City of Palm Desert
waw
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Awards
Golfweek Magazine I Golfweek's Best Municipal Course
• #29 - Firecliff Course 12014
orlik
/ 2 N'S 7 • #33 — Firecliff Course 12013
Mt M1I(IP4I(1)i.ISES :?
Golf Digest Best Places to Play
y�Q�jI,CEs?o • Mountain View 41/2 Stars 12000-2014
m1 2008/2009 44 • Firecliff 4 Stars 12000-2014
GolfDigest • Top 50 Courses for Women 12012, 2013
.<1,1E STARS
Golf World Readers Choice I Top 50 Public Courses
• Rated # 25 12010
TOP
50#-
Pull.Ic
GOMOrki
READERS'
CHOICE
Desert Golf Magazine
• Firecliff Rated #1 Public Course in the Coachella Valley 12012, 2013
City of Palm Desert
Ads
♦ *
Awards
CV Weekly
I.DBWEEKLY • Best Public Course 12014
BEST PUBLIC
GOLF COURSE
2014
Desert Sun's: Best of the Valley
• Voted 1st Place Public Course 12003-2006, 2008
• Voted 2nd Place Public Course 12010, 2011, 2012
• Voted 3rd Place Public Course 12013
Desert Golf Guide Top 100 Holes
• #44 I Firecliff #17
• #58 I Mountain View #9
• #68 I Firecliff #6
• #76 I Mountain View #10
WeddingWire.com
• Couples Choice Award 12015
COUPLES'CHOICE
Awards
2015
City of Palm Desert
Golf Course Management Evaluation Criteria
• Compliance with City Policies/Operation Procedures
• Customer Service Ratings
• Care/Maintenance of Golf Facilities (Courses, Clubhouse,
Infrastructure)
• Financial Practices
• Audit Performance
• Compliance with City Business Plan, Goals, Objectives
0 KemperSports' 18
Discussion : Contract Extension vs. RFP
Extension : RFP:
• Retain institutional knowledge of Desert • Potential to reduce management fees
Willow — systems, facilities and programs New perspectives on managing the facility
• Knowledge/Compliance with City policies Potential to broaden market
and procedures
• Positive relationships with Desert Willow • Note: In the case where a Golf Course
developments — Intrawest and Westin Operator is performing services
• Reliable customer service performance satisfactorily, the issuance of an RFP may
levels and product quality important to best serve the City at or near the
potential developers expiration of the current contract.
• Customer service performance remains at
a high rating
• KemperSports Management is compliant
with non-compete clause (20 miles)
• Avoids potential layoffs of existing staff
(110)
• Avoids lengthy RFP process (4-6 months)
• Over 35 years experience in municipal golf
club management
• Financial performance meets/exceeds
goal of City 0 KemperSports 19
2016 Desert Willow Golf Resort
Summer Program
Resident programs were discussed at the last two Desert Willow
President's meetings-April and May.
Specifically, suggestions made by Champion's Club members to
increase summer play with round rate, clubhouse dining and, pro
shop discounts.
The Committee supported the implementation of the Summer VIP
Program as sufficient and, for the following reasons:
1 . The VIP Card Program, at a minor cost of $49 for
residents and $79 for non-residents, offers an accessible
entry fee to cardholders plus the added discount benefits
of:
a. 7 day advance tee time security
b. 1 hour earlier Twilight start time vs. public
c. Summer League play each Wednesday
d. 50% Off Driving Range fee
e. 25% Off (non-sale) Apparel at Pro Shop
f. 15% Off (non-sale) Accessories, Footwear, Gift Items
g. 15% Off Golf Lessons/Schools
h. 10% Off Restaurant Dining (food only)
i. Valid April 11 -September 25,2016
2. The FireCliff Course will be under bunker renovation this
summer with severely limited access or complete closure.
3. Rising labor costs continue to challenge operation costs.
4. Further reduced pricing did not meet with Committee
concurrence as an incentive to increase play volume.
5. Additional discounts would jeopardize VIP Card sales.
(Resident summer play would likely need to triple in
volume to replace reduction in card sales)