TITLE
Consider a memorandum/resolution authorizing a management agreement with Billy Casper Golf for management services for Stonetree Golf Club.
SUMMARY
DATE: March 19, 2019
TO: Ronald L. Olson, City Manager
FROM: Brett Williams, Executive Director of Community Services
SUBJECT: Management Agreement with Billy Casper Golf for Stonetree Golf Club
BACKGROUND AND FINDINGS:
Stonetree Golf Club is an 18-hole public golf course that offers golfers daily access to golf play, practice facilities, dining facilities, clubhouse rentals, and pro shop merchandise. Stonetree Golf Club requires management oversight for clubhouse and pro shop operations and management oversight for the turf grass. Stonetree Golf Club is open to the public 364 days a year weather permitting.
Stonetree Golf Club has an average operating budget of $1,436,540 over the previous five fiscal years. The average revenue for the same time period has been $1,074,200. The statistics represent an operation that has operated with an average operating loss of $362,430 during the same time period. These operating deficits have existed despite a rate structure that is comparable to area golf courses and a turf product that is superior to the area competition.
The golf course has operated under an organizational structure that has featured a general manager, golf pro, pro shop manager and greens superintendent and a revised structure that featured a director of golf and pro shop manager in an effort to streamline management and reduce operational costs. Despite these changes, the course still has not covered expenses. In December of 2018, staff briefed City Council on the plan to solicit management firms to operate Stonetree Golf Club.
Staff advertised the Request for Proposals in the Killeen Daily Herald on December 16 and December 23, 2018. The Request for Proposals w...
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