SDMGA: Mayor Sanders' Proposed 5 Year Golf Plan Talking Points.
SDMGA has received a copy of Mayor Sanders' Proposed 5 Year Golf Plan Talking Points. Even with the proposed clubhouse currently out of the picture temporarily saving over $13 million; this plan still unnecessarily increases green fees and eliminates senior rates. SDMGA has responded to the Mayor's latest plan with a recommended plan of its own. You can read the SDMGA plan by clicking here. ________________________________________________________________________
SUMMARY OF MAYOR’S PROPOSED 5 YEAR GOLF PLAN
To expand public access, equalize play, raise green fees to cover costs and preserve the City’s outstanding assets
TORREY PINES CLUB HOUSE
1. USGA does not require a club house to select or continue the US Open—“they focus on the course giving the players the best challenge” (per discussion with USGA)
2. Funding a club house would require use of the General Fund for collateral, which is not a viable option at this time
3. The discretionary permits will be processed giving the City the option to build the club house sometime after the US Open in 6/08; in the meantime, minor cosmetic improvements will be made
4. The increase in green fees is separate from whether or not a new club house is built—the City will increase non-resident fees to pay for construction
5. Parking and circulation construction will commence now and be finished before June 08 without recourse to General Fund as the enterprise fund has sufficient cash to finance
GREEN FEES
1. Capital improvements will begin on all 3 courses, Balboa, Mission Bay and Torrey Pines—this will support green fee increases. The 70/30 division between resident and non-resident time will continue
2. The City will raise green fees. Resident fees will be raised at all courses, Balboa, Mission Bay and Torrey Pines*, at a minimum, to cover operational costs and short-term maintenance. Non-resident fees will be raised to cover capital costs. (For example, in FY 07, Torrey Pines weekday-$29 raised to $32 on north course, $40 raised to $41 on south course (after 6/08 when fees will increase more sharply), weekend-$45-$47 on the south course and $34-$40 on the north course, non-resident from $75-80 on north course and $115-$123 on south course; Balboa-$23-27 resident, $36-34 non-resident (dropping); Mission Bay-$19-20, new non-resident, $22)
3. City will administer a long-term reservation system to capture higher fees in exchange for future reservations. Under this proposal, the City will capture the additional profits currently made by brokers. (The City Attorney has also proposed an ordinance banning brokers.) Advance reservations will be available for both residents and non-residents (residents a surcharge of $25-$40; non-residents $35-$50) with a percentage of rotating times available and no party permitted to play more than twice per week
4. Independent studies show that current fees are below market and below other comparable courses. The Independent Budget Analyst has recommended that fees be raised high enough to cover all costs, including debt service, long-term maintenance, capital costs and reserves; the Mayor is recommending lower fee increases. Non-resident rates will be higher than resident rates but resident rates should be sufficient to cover the costs of play as the City should not subsidize golf.
5. Senior fees will be calculated as they are at all other city facilities through a low income waiver process. Youth fees capped at 10% (currently $10.50 per month for Monday- Thursday play to $11.50) and special county rate will be eliminated
TEE TIMES
1. Tee times have not been uniformly allocated. The City proposes to institute a more equitable system and expand access to entire public
2. City is currently contractually bound to Hilton and Lodge and will, in the future, reduce allocations to 5 tee times per day to each through end of contract
3. Club Corp has relinquished its tee times, returning 7300 rounds to City in May 06
4. City will cap individual play to no more than 50 times per year
5. Men’s club has had the opportunity to play at peak times with lower tournament rates. The men’s club should be treated as others, with elimination of Sunday tournament play and preference to play 2 Thursdays per month at the same rate as other residents at Torrey Pines (Balboa men’s clubs will remain the same due to lower demand). Women’s club will play 2 Tuesdays per month at regular rates at Torrey Pines and to remain the same at Balboa.
TOURNAMENT BUILDING
1. Built only if fully funded by Century Club
*Torrey Pines and Mission Bay and 9 holes at Balboa; phase in green fee increases for 18 holes at Balboa. South Course at TP fees only after 6/08
Changes since meeting on 4/5 with stakeholders:
1. Youth fee increase will be eliminated
2. Cap on no more than 50 times per year will be eliminated
3. Men’s Club and Women’s Club will be granted 3 tournaments per year