Loading...
83-008 - 02-01 Adopt Brookview Study Committee ReportResolution 83-8 February 1, 1983 Member Johnson introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE BROOKVIEW STUDY COMMITTEE REPORT WHEREAS, on January 19, 1982, the Golden Valley City Council appointed the Brookview, Study Committee, consisting of Chuck Burmeister, George Murad, Burt Brown, Mary Durda, Council Member Ray Stockman and Mayor Rosemary Thorsen; and WHEREAS, the Study Committee was assigned the responsibility of reviewing the past history of the Brookview Golf Operation and analyzing the need for and providing recommendations on the operation and capital improvements for the course; and WHEREAS, on January 10, 1983, the Golden Valley City Council received the report of the Brookview Study Committee; and WHEREAS, the Council finds the report to be a comprehensive analysis of the history of Brookview since the City's purchase; and WHEREAS, the City Council believes that the report outlines the needs at Brookview and the justification for expenditures on capital improvements; NOW, THEREFORE, BE IT RESOLVED that the Golden Valley City Council acknowledges the following: 1. The first priority capital improvements listed below have been needed for many years and are necessary to assure that the Brookview operating fund will be self-supporting. A. Bridge fairways. The first priority would be #1, #9 and #18. The second priority would be #10, #14, #15, part of #3, and part of #16. B. Improve drainage. The first priority would be #1, #9 and #18. The second priority would be #10 and #14. Cost of implementing items A and B would be approximately $250,000. C. Install an irrigation system to provide uniform sprinkling for the entire course. Cost of automatic irrigation system for complete course would be $413,000. D. Provide additional equipment so that the course could be efficiently maintained. Cost of replacing existing worn out equipment would be $110,000. The cost of adding equipment to improve the efficiency of the maintenance operation would be $105,260. 2. These improvements are of such a magnitude that a bond issue is a necessary part of the financing. 3. These improvements are necessary to protect and preserve the investment which the city made when the voters in 1967 approved a bond issue for acquisition of the Brookview Community Center/Golf Course. 4. A bond issue should be proposed as soon as general economic conditions improve and management of the course has a demonstrated track record of improvements in the operation of Brookview as compared with past problems. Resolution 83-8 - Continued February 1, 1983 BE IT FURTHER RESOLVED that the Committee's report be attached to this resolution and kept on permanent file for future reference and use by the City for long range planning for the Brookview Golf Course. (y Rosemary Thorsen-j�:_MaYs ATTEST: J& Nalk, DeputyAUity Clerk The motion for the adoption of the foregoing resolution was seconded by Member Mitchell and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Johnson, Mitchell, Stockman and Thorsen, and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the Deputy City Clerk. Resolution 83-8 - Continued FINDINGS OF THE BROOKVIEW STUDY COMMITTEE February 1, 1983 Resolution 83-8 - Continued OVERVIEW February 1, 1983 This report gives considerable financial and statistical detail about the past, present, and future of Brookview. The information and recommendations included in this report can perhaps be best understood if viewed in the light of the following phases or stages in the development of Brookview since its acquisition was authorized by the voters of Golden Valley in 1967. ACQUISITION In 1967, the voters of Golden Valley were asked to approve a $1,605,000 bond issue to acquire the 180 acre Brookview Country Club. In requesting voter approval, the acquisition of the property was recommended to the Community because it could do more than provide just an 18 hole golf course. Acquisition of the property provided open space, maintained existing wildlife habitat, protected the flood plain assuring maintenance of flood storage capacity and offered land for future development of a driving range, 9 -hole Par 3 course, and a park for Community -wide use. Acquisition of the building and facilities provided an outdoor pool and a building that could offer meeting rooms, host banquets and weddings, host Community group meetings, celebrations and dinners, provide space for recreational programs for all ages from pre-school dancers to bridge club to senior groups. It was further indicated that revenue from the golf course could provide $30,000 a year towards amoritization of the bond issue. The voters of the Community responded to this request and approved the bond issue in June of 1967 by a 2 to 1 margin. The City acquired the property in the Fall of 1967, leased the course back to the Brookview Country Club to operate in 1968, took possession in the Fall of 1968 and began operating it as a Municipal course in the spring of 1969. THE EARLY YEARS: 1969 - 1976 Response by the public to the golf course was favorable and the golf course produced on the average a $10,000 profit on gross revenues of $250,000. However, the projected $30,000 towards amortization of the bond issue was not achieved. The public park, swimming pool, and meeting rooms provided much benefit to the Community. At the same time, there was growing awareness on the part of City officials and citizens' committees of incipient problems with the golf course, pool, and buildings which would eventually require substantial new investment. These included drainage, the pumping and irrigation system, and the peaty fairways; and a variety of engineering and structural problems with the Brookview building and swimming pool. THE REVENUE BOND In 1977, a revenue bond was issued to build a Par 3 golf course and to provide some additional improvements to the main course. While in substantial part this was a fulfillment of voters' expectations from the original acquisition bond issue (the Prospectus had illustrated a Par 3 course on the grounds), this venture was perhaps even more importantly an attempt to enable Brookview to get started on the needed improvements to the main course and, it was hoped, eventually to complete them with golf course revenues. Resolution 83-8 - Continued February 1, 1983 This latter objective was not met, for two reasons: 1. Even though the Par 3 course was completed for the contracted price, a smaller than needed revenue bond had been issued and there had been a failure to recognize that $100,000 would be dedicated from the bond issue to provide for capitalized interest and a bond reserve. As a result, not as much money was left over for improvements to the main course as had been projected. 2. Because of mismanagement, extra revenues in the years immediately following the opening of the Par 3 course were either less than expected or entirely absent. MANAGEMENT PROBLEMS: 1979 and 1980 Following installation of the Par 3 and the limited improvement to the regulation course, play and gross revenue increased. Brookview management and operating procedures continued pretty much as before. Maintenance and operating employees whom the City had every reason to believe were competent, dedicated, and honest were hired or continued in their positions. Normal City government oversight practices were continued. Despite these practices, there was enough incompetence and dishonesty in golf course maintenance and business operations to create major new financial problems and prevent the operation from achieving the profitability which had been projected from construction of the Par 3 and improvements to the regulation course. TRANSITION: 1981 to Present During this period, which began with the 1981 golf season, Brookview has been subjected to much closer management control by the City staff, and to much more thorough scrutiny by the City Council, citizens' study groups, in particular, the present committee. The overall conclusion of this work is that significant new investment will be needed to protect and meet the objectives of the original investment in Brookview. Because of the previous management problems and the resulting lower than projected profit, as well as the large cost of the improvements which need to be made, it will not be feasible to finance these new investments entirely out of current income from Brookview golf operations. THE FUTURE At some point, it will no doubt become obvious to the Community that it is desirable to make the necessary investment in improvements. Once realized, the money can then be raised either from private or public funds, or a combination. With good luck, the Community desire to make the needed improvements will come about from favorable economic conditions and development of, positive Community support through improvement in the management of the course. However, the problems may also be called to the Community's attention as a result of a disastrous season, brought about by weather or a major breakdown of some kind in the physical plant/equipment, or a combination, which makes the necessity of this new investment seem obvious and feasible. Resolution 83-8 - Continued February 1, 1983 Until then, careful management of Brookview should be able to produce enough revenues to keep the golf course playable and perhaps improve them slightly, while the Brookview building, equipment, and irrigation system continue to deteriorate. Resolution 83-8 - Continued TABLE OF CONTENTS 1. General Obligation Bond Used to Purchase Brookview 2. Revenue Bond 3. Sources of Operating Revenue for the Course 4. Course Capability for Generating Additional Rounds 5. Brookview Facility and Equipment Needs 6. Factors Which Will Affect Brookview in Near Future 7. Factors Creating Lost Revenue Opportunities 8. Factors Creating Increased Operating and Maintenance Costs 9. Improvements Which Could Increase Play 10. Improvements to Maintain Existing Play 11. Financing 12. Alternatives Examined 13. Alternative Courses of Action 14. Needed Capital Improvements (In Order of Priority) 15. Recommended Actions 16. 1983 Regulation Marketing Plan 17. 1983 Par 3 Marketing Plan February 1, 1983 P age 1 1-2 2-4 4-6 6-8 8 9 E 10 10 10 10 11 14-16 17-18 Resolution 83-8 - Continued February 1, 1983 FINDINGS OF THE BROOKVIEW STUDY COMMITTEE 1. General Obligation Bond Used to Purchase Brookview A. A general obligation bond in the amount of $1,605,000 was used to purchase the Brookview Recreation Area, including golf course, club house, swimmming pool and areas later to be developed for tennis courts and community park area. B. The bonds issued in 1967 and 1969 will be paid off in 1996. C. The levy for 1982 is $110,000, but the payment schedule declines from this point onward. From 1988 onward, the levy is below $100,000, with the levy dropping to $65,000 in 1996. D. The cost to a Golden Valley homeowner owning an $85,000 home in 1981 was approximately $9.47. E. The original bond issue of $1,605,000 paid for acquisition of the course, remodeling of the original building, addition of the pro shop and grill, moving the number one fairway, constructing the driving range and building, filling and grading Brookview Park, constructing the Brookview Park shelter, paving the road, enlarging and improving the parking lot, and providing the utility connections. Of the money available from the bond issue, the largest amount, $1,325,000 went to the purchase of the course. F. In addition to the bond issue proceeds, approximately $250,000 was raised through a combination of rental of the course to the previous club owners, a Lawcon Grant of $90,000 and miscellaneous sources of income. 2. Revenue Bond A. In 1976, the Golden Valley City Council authorized the hiring of Fred Sicora to prepare a report on fairway improvement and renovation, design of the nine hole par 3 course and installation of a new irrigation system. This report was delivered to the Park and Recreation Commission and the City Council. B. This report called for a four -phased plan for reconstruction of Brookview Golf Course. Phase I - construction of a new 11th,.12th, and 13th hole; Phase II - construction of a new 9 hole par 3 course; Phase III - the rebuilding of the fairways and installation of drainage and irrigation systems on holes number 1, 2, 3, 4, 5, 6, 7, 8, and 18; Phase IV - rebuilding of fairways and install drainage and irrigation systems on holes 10, 14, 15 16, 17, and 9. C. The estimated cost for these improvements were: Phase I - $110,884; Phase II - $200,056; Phase III - $174,744; Phase IV - $196,648. Additional fees and charges brought the total to $738,392. -1- Resolution 83-8 - Continued February 1, 1983 D. In October of 1976, construction was begun on the Phase I portion of the plan, utilizing a loan from the utility fund in the amount of $110,000. This work involved building, tees, greens, traps and fairways for the new 11th, 12th, and 13th holes; extending the irrigation systems to the 11th, 12th, and 13th holes and, reseeding many of the existing fairways. The $110,000 loan was repaid through the issuance of the below described revenue bond. E. In June of 1977, the City of Golden Valley sold $500,000 of revenue bonds which were backed by the City's commitment to levy a property tax should revenues fall short to meet the principal and interest payments on the bonds. F. Revised cost estimates included in the bond prospectus provided for repayment of the $110,000 utility fund loan and an additional $240,000 to complete Phase I and Phase II (construction of the Par 3). The remaining $150,000 was allocated by $50,000 being available for Phase III, $50,000 being designated for capitalized interest and $50,000 being set aside as a reserve account available when the bonds had been paid off. G. The revenue bonds sold in 1977 require an average yearly payment of approximately $45,000. The revenue bonds will not be retired until 1997. H. The revenue bond prospectus indicated Brookview profits after debt retirement would be as follows: 1980 $17,000 1983 $46,000 1981 $31,000 1984 $31,000 1982 $35,000 Profits thereafter would be approximately $30,000 until 1997. I. In January of 1977, prior to the issuance of the revenue bond, Fred Sicora estimated in a report to the City, that $169,679 would be available for Phase III construction from a $500,000 bond issue. This estimate failed to recognize bond expenses for capitalized interest, bond issuance costs, and the reserve account. As a result of these factors, only $50,000 was available to undertake work on Phase III. This led to a major source of confusion among the users of Brookvi ew Golf Course who were aware of the plans in the January 1977 report to undertake improvements costing $169,379 but only $50,000 in the bond proceeds were allocated to Phase III work. 3. Sources of Operating Revenue for the Course A. Over 50% of the operating revenue has been from greens fees. B. In 1973, 18 hole play constituted 48% of the rounds played. In 1974, it increased 50% and stayed at that level in 1975 and 1976. In 1977, 9 hole play increased to 59% of the total rounds while the 18 hole play declined to only 41%. In 1981, 18 hole play had declined to only 40% of the rounds played. -2- Resolution 83-8 - Continued February 1, 1983 C. The non patron player is the major user of the course. In 1981, approximately 65% of the rounds played were played by non patron card holders. D. The non patron card holders contribution to the overall fees is even more significant because of the higher rate they pay. In 1981, the non patron card holder paid $7.50, while the patron card holder paid $6.50 for 18 holes. The patron card holder must pay a fee of $25.00 to qualify for the discount. In 1981, patron card fees totalled $5,795. In 1981, 3,998 rounds were recorded as 18 hole patron card rounds generating greens fees of $24,997, while 10,172 rounds were recorded as 18 hole non patrons generating $73,313 or three times the amount. H. The Pro Shop and driving range have provided small profit in years where there has not been significant distortion of buying or buying or adverse selling practices. -3- E. The bond prospectus estimated that for the period of 1979 through 1982 that the course would collect fees from 40,000 rounds. These include 18 hole and 9 hole rounds. The actual number of rounds recorded falls substantially below that. However, the average fees collected have been higher than those projected in the bond prospectus. The comparison of projected vs. actual fees and rounds is as follows: Projected # Projected Avg. Actual # Actual Avg. of Rounds Green Fee Total of Rounds Green Fee Total 1979 40,000 --$4.45 $178,000 34,009 $4.65 $158,141.85 1980 40,000 4.45 178,000 29,405 5.15 151,435.75 1981 40,000 4.45 178,000 36,824 5.50 202,532.00 1982 40,000 4.70 188,000 37,001 6.56 242,726.56 While the 1981 and 1982 total income figures are higher than those projected in the prospectus, expenditures have increased at a higher rate than the 6% inflation rate assumed in the prospectus. F. Par 3 fees have kept pace or exceeded the projected fees in the bond prospectus, but the rounds have fallen below estimates in all but 1979. Projected # Projected Avg. Actual # Actual Avg. of Rounds Green Fee Total of Rounds Green Fee—Total 1979 10,000 —3.25 $32,500 10,218 $3.25 i 33,208.50 1980 15,000 3.25 48,750 13,859 3.25 45,041.75 1981 20,000 3.25 65,000 17,987 3.50 62,954.50 1982 25,000 3.25 81,250 21,054 3.50 73,689.00 Therefore, Par 3 income has fallen below that estimated in the bond prospectus. G. Two other categories account for the major sources of non -fee revenue. The rental of pull and power carts, and the operation of the grill have provided revenues beyond expenditures to assist in the financing of the course. H. The Pro Shop and driving range have provided small profit in years where there has not been significant distortion of buying or buying or adverse selling practices. -3- Resolution 83-8 - Continued February 1, 1983 I. The rental of the community center does not bring in enough fees to offset its total cost of operation as a rental facility. J. League play has been a significant source of revenue for the 18 hole course, with approximately 8,700 of the 36,824 rounds recorded in 1981 being collected from league players. However, these were 9 hole rounds and because of the scheduling of the league, they served to reduce the number of 18 hole rounds played. K. Tournaments have not provided a significant source of revenue for the course. However, tournaments can be used to augment play during off- peak periods. 4. Course Capability for Generating Additional Rounds A. Brookview, as compared with other competitive courses, has advantages in the following areas: location, access to course, non -golf facilities offered, availability of a driving range, banquet facilities, adjacent park and pool. B. Brookview Golf Course has disadvantages in the small size of its driving range, small size of its snack bar, accessibility to 18 hole play, spotty playing conditions of the course caused by peat, a high degree of difficulty, and a reputation for constant construction and poor course maintenance. C. In 1981, Brookview produced less rounds than the two major other comparable public courses. Brookview did 54,811 rounds, including par 3 and regulation compared with Coon Rapids' Bunker Hill 73,879 and Edinas' Braemar 78,076. D. Methods to Increase Play. The following methods have been identified to increase play: a. Improve physical appearance of Pro Shop/Grill area, inside and outside. b. Emphasize courteous and alert personnel to create a friendly climate. c. In the past years, the regulation course has been tied up with evening leagues and outside weekend and holiday tournaments. As a result, Golden Valley residents and the general public were limited in the days and times in which they could play To solve this problem, evening leagues have been cut down to a more reasonable number and only utilize the first tee (front -side). This allows a more flexible schedule to accommodate other golfers. Outside weekend and holiday tournaments are not necessary during the prime months of the season. On weekends and holidays, the course should be open to accommodate Golden Valley residents and the general public. This was implemented in the 1982 golf season. d. Leagues will be required to prepay 75% of the season's green fees. The remaining 25% wil be adjusted to rain days and due at the close of the league season. This was implemented in the 1982 season. -4- Resolution 83-8 - Continued February 1, 1983 e. Outside tournaments will be required to prepay 100% of the green fees and for the golf carts needed. This was implemented in the 1982 season. Tournaments should be scheduled for slow days such as Monday. f. Efficient starters to organize play, check their receipts to see if they have paid, and to start golfers on schedule with their booked tee times. g. Efficient rangers to keep play moving, check receipts, and assist golfers in any way. h. Over the past years, the course has been continuously worked on to improve conditions, and many good improvements have been made, but customers get tired of playing into construction conditions, resulting in a loss of revenue. We must start grooming the golf course to improve revenues. i. Marketing plan. E. Physical Limitations The golf course was originally built to accomodate the country club golfer. This meant the objective of the design was to provide a challenge to a higher skilled golfer who played the course on a continuing basis and who desired to complete his/her round on a more leisurely basis. This objective is not consistent with the philosophy of a public course. The objective in the design of a public course is to reduce playing time by minimizing hazards to maximize the number of rounds played. The course was also designed and built before World War II and is different from today's modern course. a. Tees - are small in size, and get worn down fast. It makes it difficult to resod or to reseed to keep them green. b. Greens - are reasonable in size, but the elevation creates a problem with the speed of play. The ball will kick way left or right causing additional shots. The contour on some of the greens make pin placements limited. (Good example, #18). c. Fairways - the peat is the problem. This causes maintenance problems with cutting - it is difficult to get a real clean cut. As a result, bad lies and lost balls are affecting the speed of play. Also, golfers become frustrated and some do not come back. Drainage becomes a factor, especially on a result, the course must be closed on occasion. Many of the fairways are narrow which results in many shots from the average golfer ending in the rough. d. Rough - has been too long causing lost balls which hurts the speed of play. Again, the peat problem interferes with cutting (scalping, wet spots). -5- Resolution 83-8 - Continued February 1, 1983 F. Impact of Additional Rounds on Current Patrons and Golden Valley Residents With increased play, there will be an impact on Golden Valley residents. However, the following three procedures will mitigate that impact: 1. By reducing evening league play and limiting it to tee off from only one of the two starting tees (1 and 10) and limiting weekend and holiday outside tournaments, this will enable the course to accommodate current patrons and Golden Valley residents to a much better degree. 2. Patron card holders still have reservation privileges and discounts. 3. Staff assistance and support for mens and ladies golf associations. 5. Brookview Facility and Equipment Needs A. BUILDINGS 1. Community Center Building The building does not meet current electrical, plumbing, energy or life safety fire codes. 2. Par 3 The addition of a telephone is needed at this building to take reservations for the Par 3 course. 3. Maintenance Building Adequate. 4. Driving Range, Cart Building The building is functional but the location is bad for supervision and for the checking out and checking in of carts from patrons. 5. Restrooms on Regulation Course The location of the restroom facility adjacent to hole numbers 3, 4, 15 and 16 is fine for the golfer but its accessibility to Boone and TH 55 has resulted in such continued vandalism that they have been closed and Satellites used in their place. The tennis building is also used by golfers. Finally, there is a need to provide convenient locations for drinking water on the course. Because of uncertainties regarding its meeting health standards, wells used for drinking water on the course were closed. In the past, water canisters which are subject to running empty were used in place of the pumps. In 1983, the wells will be reopened and monitored. Resolution 83-8 - Continued B. COURSE IMPROVEMENTS February 1, 1983 The following constitute an overall assessment of changes desired in the course to enhance playability. 1. To solve accumulation of standing water at holes #1, #9, #18, #10 2. Drainage in general 3. Irrigation System a. Regulation Course - replace current manual irrigation system with automatic system. b. Par 3 Course - Replace current manual irrigation system with automatic system. c. Driving Range - Extension of system to Driving Range. 4. Driving Range a. small size of tee area b. direction it faces - into sun c. hitting range balls onto Highway #12 d. hitting range balls on hole #1 5. Tees needed to be enlarged to allow rotation of tee areas to ensure grass tees throughout the season 6. Greens a. contour b. elevation c. size 7. Fencing a. perimeter on Boone Avenue to reduce vandalism 8. Sand traps a. poorly designed b. poorly located c. hard to maintain 9. Chipping green would be advantageous 10. Increase size of putting green 11. Turf and tree nursery -7- Resolution 83-8 - Continued C. EQUIPMENT NEEDS February 1, 1983 1. The course has 14 pieces of equipment with a replacement cost of approximately $110,000 which are currently beyond their recommended replacement date. 2. Equipment costing $105,260 could be purchased to add to the efficiency of maintaining the course. 3. Major purchases of equipment will be needed in the near future to replace existing equipment and add equipment to increase efficiency of maintenance operation. 4. There is a need to commit to a systematic replacement schedule for equipment. 6. Factors Which Will Affect Brookview in the Near Future I. Factors Mandating Action - These are factors beyond our control which will occur which will have an effect on the Brookview Golf Course. A. Change in access to clubhouse as a result of I-394. Instead of having access from both the east and west from Highway 12 at Field Drive, access from I-394 will be limited to an interchange at Louisiana. It would be expected that from the configuration of the frontage road associated with the Louisiana Avenue interchange, that more traffic exiting from Highway 12 would ultimately gain access to the course via Western Avenue instead of the frontage road adjacent to I-394 between Winnetka and Flag. B. Narrowing of driving range by I-394 taking. If the construction of I-394 will result in a significantly smaller landing area for the driving range, profits will be reduced. It will also make the driving range less visually noticeable and accessible as a result of the construction of I-394. However, MnDOT plans as of November 1982 presently show adequate area to operate the driving range. C. Construction of Boone Avenue. This may affect the trees along hole #2, and will certainly affect the length of the holes as a result of the shift of the tee to the north. It will also have the effect of opening up undesired access to the course in that area to walk- on, non-paying golfers and vandals, as well as increase exposure to damages from cars being hit. D. Condition of Clubhouse. There are two major factors. First, maintenance costs are increasing at an increasing rate as a result of the age and condition of the building. The building will require some substantial improvements within the next five years, i.e., roof. Second, if the City proceeds with its plans to remove the recreation offices and recreation functions from the building, it will affect the functioning and appearance of that building by having vacant space upstairs, as well as impact the bottom line at Brookview in a reduction of $20,000 of the City's contribution to the Brookview enterprise fund for rental of space. -8- Resolution 83-8 - Continued February 1, 1983 7. Factors Creating Lost Revenue Opportunities A. Minimal size of driving range. If the tee and landing area of the driving range were larger, there would be additional use of the driving range. Based upon current unmet demand, an increase in the size of the tee and the landing area and thus increased utilization, would not require an increase in our fixed costs, such as ball shagging and attendance at driving range, and therefore, would translate into increased profit for the course. B. Drainage. The lack of adequate drainage has resulted in significant numbers of days in which the course has been closed where it would otherwise have been open, as well as days in which the course has been open, but no carts have been allowed. 8. Factors Creating Increased Operating and Maintenance Costs Many of these factors have an impact not only on operating and maintenance costs, but also on play of the course. They have an impact not in reducing directly the number of rounds which are played on the course, but rather in creating an appearance and conditions which are inferior as compared to other courses against which Brookview compete. 1. Inadequate drainage - This has been previously described. 2. Inadequate irrigation system - Costs are higher as a result of the need to continually repair breaks, inability to get water to all areas, and increased personnel costs to do manual watering. 3. Inadequate equipment. 4. Location of cart storage - Staff responsible for checking out and checking in carts is separated from location where golfer picks up and returns carts. This results in an accountability problem for people who misuse carts and staff costs must be allocated to ferry carts back and forth. 5. Fairway heavings - Fairway undulations wear out maintenance equipment and golf carts much quicker, and increase time necessary to maintain fairways. 6. Small tees - Tee areas wear out faster as a result of heavier use being concentrated on a small area and thus, increase maintnance costs to keep them playable. 7. Older greens - Many older greens require increased care and maintenance as a result of utilization of grasses no longer recommended for municipal courses. 8. Absence of security along Boone - Vandalism is a growing problem in this area resulting in increased allocation of maintenance staff time to repair vandalism on greens and course. M Resolution 83-8 - Continued 9. Improvements Which Could Increase Play 1. Correct and provide adequate drainage 2. Install irrigation system 3. Correct fairway heavings 4. Improve tee areas 5. Improve greens 10. Improvements to Maintain Existing Play 1. Improve drainage 2. Correct fairway heavings 3. Install irrigation system 4. Improve tees 11. Financing February 1, 1983 Alternatives which could be considered include singly or in combination: A. Utilization of increased profit from course to pay for improvements on a pay-as-you-go basis. B. Utilize increased profits to support issuance of a second revenue bond. C. Financing of improvements through a general obligation bond. D. Increase City general fund subsidy to pay for improvements. E. Seek to lease course to private operator who would be responsible for managing course (including financing all necessary improvements), who would pay the City a percentage of the profits, and assure availability to Golden Valley residents. F. Seek private funds for contributions to help pay for improvements. G. Seek to sell or lease easement rights for ponding on portions of golf course not included in playable area. H. Proceeds from pending HnDOT condemnation of portions of Brookvi ew for construction of I-394. I. Sur -Charge on existing greens fee dedicated to financing course improvements. 12. Alternatives Examined: A. The Committee in conjunction with Dick Phelps, Golf Course Architect, examined plans for redesign of the course. The two major variables in the plans examined were the relocation of the Club House and driving range to different locations on the course. The option of relocating the driving range was considered because of the possible acquisition of the driving range by the Minnesota Department of Transportation for I-394. The option of relocating the Club House was considered because one suggestion has been for construction of a new Club House rather than remodeling of the existing structure. Alternative plans prepared by Golf Course architect are on file with the Golf Operations Manager. -10- Resolution 83-8 13. Alternative Courses of Action February 1, 1983 A. Do nothing. B. Make only those improvements each year which could be paid for by annual profit from the course. C. Make those improvements which would maximize the desirability of the course to its immediate neighbors and the community as a whole from a long-term perspective. D. Some changes falling within these various alternatives. 14. Needed Capital Improvements (In Order of Priority) A. The committee concluded that the following list represents the overall priorities for improvements to the Brookview Golf Course (cost estimates in 1982 dollars): 1. First Priority A. Bridge fairways. The first priority for fairway bridging would be #1, #9 and #18. The second priority would be #10, #14, #15, part of #3, and part of #16. B. Improve drainage. The first priority for drainage improvement would be #1, #9 and #18. The second priority would be #10 and #14. Cost of implementing items A and B would be approximately $250,000. C. Install an irrigation system to provide uniform sprinkling for the entire course. Cost of automatic irrigation system for complete course would be $413,000. D. Provide additional equipment so that the course could be efficiently maintained. Cost of replacing existing worn out equipment would be $110,000. The cost of adding equipment to improve the efficiency of the maintenance operation would be $105,260. 2. Second Priority A. Repair the Brookview building for continued use. Replacement of roof, windows and improvement of mechanical system is estimated at $70,000 to $140,000. B. Relocate the cart storage to a location that can be monitored and operated from the pro -shop. Cost is dependent to a large extent on location. C. Repair and remodel the interior and exterior of the current building. Combined with Item #2B, the estimated cost is $300,000. If the building is to accommodate other than golf, costs will be higher. D. Provide fencing security along Boone. 1982 cost for fencing on Boone from TH 55 to TH 12 would be approximately $25,000. -11- Resolution 83-8 - Continued 15. Recommended Actions February 1, 1983 A. The committee concludes that at this time, the course cannot generate sufficient additional profit to support a pay-as-you-go program or a supplementary revenue bond issue to finance even the top priority improvements (bridging and fairways) estimated at $250,000. This conclusion is based upon the following facts: 1. The significant annual cost of repayment of existing debt consisting of the 1977 revenue bond which will require a payment of approximately $45,000 per year until 1997 and a 1981 loan from the Utility Fund which as of January 1, 1983 will have $45,000 of principal remaining. The debt repayment from these will reduce profit available to be dedicated to a new revenue bond. 2. The need for substantial expenditures for replacement equipment ($110,000 in 1982 dollars) will reduce profit available to be dedicated to a new revenue bond issue. 3. Profit in 1982 (under existing conditions and operating procedures) was approximately $27,000 which is not sufficient to support an additional revenue bond issue. 4. The cost of the top priority improvements ($250,000) and the disruption that is necessary to implement, does not make a pay-as- you-go approach feasible. B. The Committee recommends that the City Council acknowledge the following: 1. The first priority Capital Improvements listed in Section 14 have been needed for many years and are necessary to assure that the Brookview Operating Fund will be self-supporting. 2. These improvements are of such a magnitude that a bond issue is a necessary part of the financing. 3. These improvements are necessary to protect and preserve the investment which the City made when the voters in 1967 approved a bond issue for acquisition of the Brookview Community Center/Golf Course. 4. A bond issue should be proposed as soon as general economic conditions improve and management of the course has a demonstrated track record of improvements in the operation of Brookview as compared with past problems. -12- Resolution 83-8 - Continued February 1, 1983 C. The committee concludes that the following steps should be taken to implement overall priorities for improvement to the Brookview Golf Course: 1. Staff should implement the marketing plan recommendations and an assessment should be made at the end of the 1983 season as to the profit potential from the course. The Committee is encouraged by the 1982 profit given the late opening, early rainy weather, drought conditions in the summer and rainy/cold fall. The committee concludes that with implementation of the recommended improvements in marketing (attached to this report), the number of rounds played can be increased. With an effective marketing program and implementation of priority improvements, the committee concludes that rounds played on 18 hole regulation course may be increased from the current 37,000 rounds played in 1982, to a maximum of 50,000. Par 3 course rounds may also be increased from the 21,054 recorded in 1982, to a total of 27,000 rounds. 2. Staff should determine in 1983 the estimated proceeds from MnDOT acquisition of portions of Brookview to permit construction of I-394. 3. Approval from the necessary bodies for the priority improvements involving the bridging of fairways and drainage improvements (estimated to cost $250,000) should be obtained following the 1983 golf season. A combination of revenue sources should be used: a. a loan from the Utility Fund to be repaid from increased profits. No loan should be made until after the existing Utility Fund loan has been repaid. b. proceeds from MnDOT condemnation. c. proceeds from easements for flood storage. d. a sur -charge on green fees dedicated to finance these improvements. e. a voter approved general obligation bond. D. The City Council should have the benefit of a permanent Brookview Advisory Group because of the size of its operations, the past history of problems and the projection of future needs. The existing Brookview Improvement Committee which was appointed by the City Manager to provide input on course maintenance practices should have its charge broadened to also make recommendations to staff on marketing and long-range improvement plans for the course. The staff shall at least annually present plans for long-range improvement for the course to the Open Space and Recreation Commission who shall have responsibility for reviewing and making recommendations to the Council on: 1. over-all operation policies for the course; 2. long-range planning for the course; and, 3. measurement of City's experience in implementing its long-range plan. -13- Resolution 83-8 - Continued 16. 1983 Regulation Course Marketing Plan February 1, 1983 I. Patron Card Rates A. Patron card rates for 1983 should remain the same as in 1982 because we have increased the prices of daily green fees for 1983. To raise both patron card rates and daily rates does not promote patron card sales. If there is too much of a price hike in one year, it is not economically feasible for a person to purchase a patron card because of the large number of rounds necessary to break even. B. To promote additional patron card sales, patron card holders should have more leverage over the general public as far as reservation privileges go. Golf today is becoming more and more popular, so there is a greater demand for prime tee times. To encourage people to purchase a patron card, I feel that four patron card holders should be given the privilege of reserving a tee time one week in advance. C. Reductions off green fees in 1982 were accepted by our patron card holders, and at this time the system should remain the same. More patron card sales will help us develop a larger customer base, and bring in additional revenue at the beginning of the season. II. Fee Structure Our fee structure is in line with other golf courses, but a greater concern is that our product (condition of course) is brought up to standard. Through staff changes I am confident that the condition of the golf course (despite our major problems) can be respectable. When the condition of the course is up to standard, people accept the cost. III. Increase Play During Slack Periods A. Additional Leagues on Friday Evenings: Our 1982 evening league schedule was reduced to open up the golf course for more 18 hole play. This was a good move, and the results will be more positive in the future. However, leagues were cut out Friday evenings. Friday evenings from 4:00 PM on were real slow. This is a perfect time to insert as many leagues as possible. I will contact the 1981 leagues that played on Friday night and reschedule them for 1983. The rest of the nights are pretty well locked in, and the schedule should not be changed. B. Expanding our Twilight Rate In 1982, we offered a twilight rate on Saturdays, Sundays, and holidays. At 5:00 PM one could play as many holes possible for $5.00. I was amazed how slow this period of time was. Changing the time to 4:30 PM gives one more time to finish 18 holes. However, the rate should be changed to as many holes as one can play for the 9 hole rate. Patron $5.50 Non Patron 6.00 -14- Resolution 83-8 - Continued C. Promote Outside Tournaments: February 1, 1983 There are certain days and certain periods of time when people just don't play golf. Holding outside tournaments is the best way to fill these times. In the past, outside tournament potential has not been aggressively approached. A 100% improvement can be made, if the golf manager makes the right connections. The potential lies in corporate businesses, and hotels. It is my job to go out and get these people scheduled on a consistent basis. IV. BWGA and BMGA Promoting New Members and Improving Brookview's Image: A. BWGA - For as long as this Association has existed, the total number of active members is surprisingly low. I hear many complaints that the course is too difficult because of playing conditions. Brookview is a very difficult course to score well on for the reasons listed below: 1. length 2. rough 3. bad lies 4. water hazards The layout of Brookview is difficult and would cost a fortune to change. I am confident that if daily maintenance is upgraded, the ladies will enjoy themselves. It's the little things that irritate them: 1. keep rough short 2. easy pin placement 3. keep course clean B. BWGA - To promote the Ladies Association and encourage new members through: 1. local advertising of the ladies spring luncheon 2. existing members inviting new members C. BMGA - The total number of active members is disappointing. Their association has declined rapidly throughout the years. The existing members feel this is due to the condition of the course and bad management. By improving course conditions and through an active membership drive, we can increase our membership. The existing members should be more open and invite more friends into their association and make the members feel welcome. V. Senior Patron Card Holders Day, Wednesday Mornings Prior to 9:30 All Due to the rising costs of our operation, it is no to provide free golf. Senior Patron Card holders green fees as follows: 18 holes, $4.50; 9 holes, revenue 2 - 3% for 1983. -15- longer feasible for us may play at the reduced $3.00, and will increase Resolution 83-8 - Continued February 1, 1983 VI. Junior Patron Card Holders Day, plondays Prior to 9:30 AM Junior patron card holders may play for the reduced green fee of $1.00 per person. The $1.00 green fee would be put back into the Junior Program for future tournaments, clinics, prizes, etc. We must continue to promote juniors and the game of golf for they are our future players at Brookview, and we want to encourage them to stay. VII. Good Signs for Easy Access to Brookview Signs to let people know that Brookview is a public golf course and they are welcome to use the facility. Proper signs that look inviting with the current information spelled out clearly. Proper locations are important along Highway #55 and #12, and when entering Brookview Recreation Area on Winnetka Avenue. VIII. Additional Promotion Through Advertising A. Ways to reach potential customers: 1. Golden Valley Park and Recreation Brochures 2. Local newspapers 3. Brookview newsletter 4. Schedules that are handed out in the golf shop to tell people when open times are available 5. Proper information in telephone books 6. Better signs within building promoting special rates, etc. 7. Information that can be personally handed out to businesses, hotels, etc., that will explain our operation and what we have to offer (outside tournaments) IX. The Most Important Part of Our Operation - Improving the Condition of the Golf Course This is the most important factor in the success of our operation. Even though some major improvements need to me made, we can still upgrade our existing conditions on a daily maintenance program. Improved conditions will enhance the Brookview image with our existing golfers, and this by word of mouth should spread to other players and courses. This will encourage new players, bring back ofd players, bring in new revenues, more tournaments, and get us on a positive rebuilding program. Submitted by: Todd Christensen, Golf Operations Manager -16- Resolution 83-8 - Continued February 1, 1983 17. 1983 Par 3 Marketing Plan I. Promote Patron Card Sales A. Honor the patron card as we do at the regulation course. Patron card holders would be given a green fee reduction, and also reservation privileges. B. There are a lot of people who cannot or will not play the regulation course for certain reasons. We cannot neglect these people. We must show appreciation towards our good customer as we do at the regulation course. The reasons are: 1. Age - Seniors 2. Physical limitations 3. Ability - Juniors and Beginners 4. Time factor C. Honoring the patron card will benefit the course in many ways, including: 1. Increase the number of patron card sales 2. Increase total rounds 3. Help build a larger customer base 4. Increase rounds during slack periods 5. Good will, we are acknowledging our supporters II. Increase Play During Slack Periods A. Special rate on weekdays prior to 3:00 PM 1. 9 hole patron $2.75 2. 9 hole non patron 3.25 B. Morning and mid afternoon leagues during weekdays 1. Ladies church leagues 2. Surrounding communities that do not have a facility to fit their recreational needs a. Junior Programs b. Senior Programs C. Honoring the patron card along with a special rate on weekdays prior to 3:00 PM, should create more revenue. III. Promote More Evening Leagues A. The existing evening league schedule is booked solid on Monday and Wednesday evenings. There is a lot of room to accommodate a number of leagues on the remainder of the nights. -17- Resolution 83-8 - Continued February 1, 1983 IV. Senior Patron Card Holders Day: Wednesdays Prior to 9:30 AM Due to the rising costs of operating, it is no longer feasible for us to provide free golf. A reduced green fee of $2.00 per person is reasonable, and will bring in additional revenue. V. Junior Patron Card Holders Day: Mondays Prior to 9:30 AM Junior patron card holders may play for the reduced green fee of $1.00 per person. The $1.00 green fee would be put back into the Junior program for future tournaments, clinics, prizes, etc. We must continue to promote the junior players. They are our future, and we want them at Brookview for many years. VI. Upgrade Daily Maintenance, and Staffing Improvements A. The Par 3 has great potential, that is why we cannot let a good thing deteriorate. 1. Tee areas need to be maintained on a regular basis 2. Safety factors on some of the holes need to be examined 3. Tree planting program started 4. More personal attention in general, for better service B. Better staffing on certain days, or peak periods. 1. Starters 2. Rangers 3. Cashiers VII. Signs in Locations for Easy Access New signs that look inviting, with the current information spelled out clearly. Proper locations are important along highways #55, and #12, as well as when entering Brookview Recreational area on Winnetka Avenue. VIII. Additional Promotion Through Advertising A. Ways to reach potential customers: 1. Golden Valley Park and Recreation Brochures 2. Local Newspapers 3. Brookview Newsletter on what's happening 4. Current information in telephone books 5. Golf Manager promote more evenings leagues Submitted by: Todd Christensen, Golf Operations Manager :