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Home My WebLink AboutSpecial 2011-09-27 Item 1A - Color Introductions and OverviewFoster Golf Links TU KW l LA PARKS & RECREATION foster Foster Golf Links Characteristics • 18 Hole Golf Course • Flood Plain • Wildlife Habitat: Bald Eagles, Osprey, Salmon, Deer, Coyotes • Community Meeting Place • Washington State Department of Ecology & King County Riverbank Restoration Site • City of Tukwila Emergency Operations Center foster GOLF L.NKS 9r ;e wer mah fLeA 9/26/2011 1 Marty O'Brien PGA Head Professional • 26 year member of the Professional Golf Association of America (PGA), over 40 years in the industry • 21 years manger of Foster Golf Links • 9 years assistant professional at City of Seattle golf facilities, Jefferson Park & West Seattle • 7 years Earlington Golf Course • 4 years Renton Golf Range Education & Affiliations: B.A. in Fine Arts Life Member PGA fester GOLF LINKS 1Vphr KKK er4 9/26/2011 2 Warren Orr PGA Professional • 14 year PGA Professional in the Pacific Northwest • 8 seasons at Foster Golf Links • 2 years at Interbay Golf Center (Head Professional) • 6 years at Hawks Prairie Golf Links (Head Professional) Education & Affiliations: A.A. in Golf Course Management PGA Professional fester G O L F L : N K S Curt Chandler Superintendent • 26 years specializing in Golf Course Maintenance & Construction • 8 years as a Turf Specialist with Simplot • 18 years of golf course experience • 71" year as Foster Golf Links SuperintendentEducation & Affiliations: B.A. in Public Recreation Golf Course Superintendents Assn. Northwest Turfgrass Assn. - Board Member r Inland Empire Superintendents Assn. - President fester GOLF L■NKS St Ala' le raw.% frtentl 9/26/2011 3 Monmahon Sharma • 40 Years in the Hospitality Industry • 16 years with the worlds largest Private Club Management company, Club Corp. • 12 years opening and managing facilities worldwide. • 4 years at The Columbia Tower CABO foster GOLF LINKS laroo s Is* gt Fund Status: How we got here Golf Operations Bond Payback Course Construction Closure Economy Weather Patterns foster GOLF LINK S OX/.ea :yrwA inoas • ��1'�11�► fly '11��j G 1 sba 9/26/2011 4 Policy Issues 1 Maintenance Building - transfer of $650,000 2 Admission Tax 3 Director's Salary 4 Maintenance Building Cost 5 2003 Bond 6 Indirect Cost Allocation foster GOLF LINKS Grp R, tear mu*gna4 9/26/2011 5 Fund Status: How we got here Rounds Projected for 2003 Bond 60,000 Rounds with 2% Growth Annually New Clubhouse Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 ' 2010 2011 Total 66,317 60,311 57,490 35,764 53,070 54,449 55,195 55,446 53,565 51,922 49,202 50,000 Projected Rounds Rounds Under Projections A%erage Cost of Round wlcad Revenue Deificiet 60,000 61,200 62,424 63,672 64,946 66,245 67,570 68,921 (6,930) (6,751) (7229) (8,226) (11,381) (14,323) (18,368) (18,921) 24 24 24 24 24 24 24 24 (166,320) (162,024) (173,496) (197,436) (273,142) (343,748) (440,826) (454,107) fester GOLF LINKS * drr2 Inv fog frost Policy Issues 1 Maintenance Building - transfer of $650,000 2 Admission Tax 3 Director's Salary 4 Maintenance Building Cost 5 2003 Bond 6 Indirect Cost Allocation foster GOLF LINKS Grp R, tear mu*gna4 9/26/2011 5 1- Maintenance Building - Transfer $650,000 In 2004, the City transferred funds into the Golf Fund Recommendation For the City to consider the transfer of funds for half of the cost for the Parks and Golf Maintenance Facility. foster GOLF L NK5 2- Admission Tax From 2005 to 2008, the City Council placed a temporary hold on collecting this tax. In 2009, the Admission Tax was applied to the Golf Course. Foster has paid $122,000 in 2009 -10 and will contribute another $60,000 (est.) in 2011. Recommendation For the City to temporarily or permanently relieve the Golf Fund of this tax. fester GOLF LINKS draka- cdsrr.wdf fmiW 9/26/2011 6 3- Director's Salary For years, the Golf Fund has paid a portion of the Park Director's salary. This is the only Special Enterprise Fund that pays a portion of the Director's salary. Recommendation Relieve the Golf Fund of this expense. fester GOLF LINKS 4- Maintenance Building Cost The maintenance building is equally shared between Parks and Golf. Since 2002, Foster has paid the entire cost of the maintenance building. Recommendation Have the Parks Department pay 50% of the maintenance building cost. ONO fester GOLF LINKS 7ri.IErr A:mr x,OS,KO4/7 9/26/2011 7 5 -2003 Bond The 2003 Bond relied on a golf round projection of 60,000 rounds in 2004, with a 2% increase in rounds each year. Foster was scheduled for 68,921 rounds in 2011. Foster did increase rounds from 2004 through 2007. Recommendation Utilize a 301 Fund transfer to pay off the debt. The Golf Fund would transfer money back to the 301 Fund once the revenue stabilizes. foster GOLF l 'NK 5 6- Indirect Cost Allocation (ICA) It is anticipated that the ICA will be less in the future with the efficiencies found city -wide and in the golf operations. The City Council will be provided the new information with their ICA annual review. The Golf Fund will pay annually as much of this as possible. alp fester GOLF LINKS 6+r ,2% Ira k..nm4 9/26/2011 8 coo fester GOLF LINKS rr ohr 'env- KLZ ynd, Alternatives Remodel facility and create a driving range with 9 hole golf course Close the Golf Course and sell or develop the property fester GOLF L INK S ✓ P.Tr roof 4v.Kti Outside management 9/26/2011 9 Course of Action -Round Projections- 2010 Rounds 50,000 2011 Rounds 46,000 (est.) 2012 Rounds anticipation of 50,000. This projection is based on historical precedent, current economic conditions, and the prediction of another La Nina weather pattern. Goal -To show an annual growth in rounds and return to 55,000 rounds by 2017 ono foster GOLF LINKS 1r Sark aw a7 f^vx/i Course of Action - Marketing- • Continue utilizing Social Media to connect with our members and guests: texting, Facebook, and email • A greater emphasis in our community involvement and charitable assistance to increase tournament rounds and overall participation. • Focused marketing to deal with our "soft" spots • Create a flexible fee structure where the Director of Parks and Recreation can adjust fees accordingly to increase net revenue OOP fester GOLF LINK S 9/26/2011 10 Course of Action -Reduce Expenditures- • Staff reorganization • Reduce Extra Labor • Reduce various line items in supplies and services • Share building maintenance costs 41111O foster ,OLL Course of Action -Capital Improvement Plan- __ patlenfturIPM I .55 .50150 0550 nag ma 50101 00, 1 570015550755. 005555 005.055 M -• --lb, 7 5.50555 00=50 55550.555 55= 5500 1150 5075 IMO 1055 7533/150 =75 175000 150 150400 150=0 55. =OA NOM 5=05 110120 50 0555 55500 55000 15591 5551 .5555.115500 101= =50 355110 30050 55005 WOW =055 SW Total 11,14. »coo 9/26/2011 11 Golf Enterprise Fund - Attachment G 2012 - 2017 ANALYSIS IN 000'S 1,000 Rounds /Year Increase $1 /Round Average Increase in Even Years REVENUES �= , ��,.,. ,i y, 2012 2013 2014 2015 2016 2017 73101 Green Poor • 1 4 1.018 1,200 I I. 1 1,164 I. 1.263 1281 Scleriw'+ 580 1329 225 10v0 1466886.183d33 170 158 132 148 130 130 133 112 144 154 156 859 Pows4.5•11.1. 192 136 112 195 173 125 129 191 191 237 210 1.155 Come.. P.c.. 60 n 60 120 130 163 292 01714... 25 JI 24 24 24 124 24 126 27 28 1v 158 ..11werws 2086 1.223 1,756 1.12 1,692 1,519 1.549 1.653 1,605 1.793 1.821 16026 EXPENDITURES 0pw414244v41 #49 1 1,502 1.551 1.871 1,692 1.357 1.390 1.45 1,461 1,499 1.338 8.00 Coll 4.180.18. 96 19 . 144 212 202 Bee 061713wvlw • 634 318 135 339 339 9 33 4 1 4 0 8 50 33 7 2 ' 790 o .17.141 2.221 2.012 1.86 2,210 2 1 1.453 1.469 1,513 1,605 1111 Gall Copt. -CIP Prcgvn 0 0 0 15 66 66 30 00 80 82 82 620 33131632025433 0221 2012 1.86 2285 2.95 1.319 1.549 6353 1.685 1.793 1.827 10.026 Cush O3w ro py yo 11351 1234) 11301 13731 4031 C221963e9796732010 620 610 320 435 425 Accu n,laletliolds 465 354 90 52 22 23 Conclusion Foster Golf Links is a valuable commodity to the City of Tukwila, its citizens, and the golfing community. We will continue to provide a great product and service to our guests as we weather the economic climate. Foster, with its amenities and playability, is a facility that will prosper in the future. 9/26/2011 12