Business Plan Presentation December

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Dorothy Reynolds
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1 Business Plan Presentation December

2 Agenda 1. Mandate 2. Business Plan Team 3. Introduction 4. Achievements Vision & Community Role 6. Vision & Role Path to Future 7. Bus Plan Overview Results 9. Labour as a % of Revenue Projection 11. Capital Capital Investment 13. Concerns 14. Summary & Recommendations 15. Conditions for Success 16. Future 17. Questions

3 1. Mandate From Council City of Brantford Council passed a resolution on June 22, 2009 which required the development of a business plan for the Golf Operations that would show self sufficiency by Resolution; Business plans A: That the City manager be DIRECTED to develop a process for the Golf Board to update existing or develop new business plans with the predominant goal to having the respective service areas move to financial independence from City taxpayers no later than the start of the 2013 financial year, and B: That the Golf Board PRESENT their updated or new business plan detailing their compliance with the goal of financial independence for consideration by the Financial Committee no later than its meeting scheduled for December 9, 2009 (January 15, 2010) or if they are unable to submit by that time, that they be presented by the City Manager. NOTE: It is the Golf Boards understanding that Capital funds will need to be continued from City finances

4 2. Business Plan Team Business Plan sub-committee members: John Smith, Bill Austin, Charlie Warner, Steve Hawkes, Dave Searle Councillor John Utley Supported by: Greg Dworak, Jeff Moore Staff support: Clerk s office Finance Laurie Schunk Wanda Harding

5 3. Introduction The Golf Board is pleased to report: Positioned to be revenue neutral in the 2013 fiscal year, through: Management of cost cutting measures Improved financial reports Improved transaction entries and inventory controls New Business Manager Burden to Taxpayer significantly reduced from 2009 to current Patrons are very happy with the improvements to the courses and customer service. The Golf Board appreciates the support of Council and looks forward to the challenges for the future.

6 4. Achievements Beat the budget for 2012 and 2011 Labour costs reduced from 62% of revenue in 2010 to 47% in 2012 Junior Golf Academy introduced ( , ) Summer Golf Camp Program ( , ) Full driving range and learning centre operational in 2012 Pro shop moved in to clubhouse at Arrowdale as a cost cutting measure Safety netting installed at Arrowdale to reduce stray balls Phases 3 of 5 completed for irrigation system at Northridge (4&5 2013). Spending for this capital project is on time and on budget Numerous other course improvements

7 5. Our Vision & Community Role To manage Golf Operations as a viable business without being a burden to the taxpayer To be revenue neutral and operate self sufficiently To provide affordable and enjoyable golf to players of all ages To have updated facilities that are attractive and functional To market the Learning Centre as a means to grow the game To be recognized as a leader in Junior golf development and promotion To provide a community service that attracts business growth in Brantford To explore opportunities for year round use at Northridge To develop capital funding streams

8 6. Our Vision and Path to The Future Golf Learning Academy Junior Golf Academy Introduce a new software system Develop a capital funding plan from Ops Clubhouse renovations 2013 Path to the Future 2017 New Irrigation System to be completed 2013 Partnership Multi Function Facility Cart Paths and enhanced sand traps Enhanced Course Layout at Northridge

9 7. The Business Plan To make golf a viable operation without being a burden to the taxpayer Replace Jencess software to improve controls and accountability Expand the Junior Golf Program Continue Course improvements, complete irrigation system in 2013 Investigate the continuing viability of Arrowdale Enhance driving range and learning centre opportunities Develop new partnerships with community organizations Work with purchasing to realize cost saving opportunities Promote family participation of golf Increase membership by providing quality, value and service Fleet charges now provide a funded capital reserve allowing Golf Operations the ability to manage equipment assets

10 Results (interim) 2012 Projected 2012 Budget Revenue $1,809,229 $1,812,155 Expenses $1,692,164 $1,711,200 Profit Ops $117,064 $100,955 Fleet $176,300 $176,300 Taxes $37,000 $37,000 Net Profit (Loss) ($96,236) ($112,345)

11 9. Labour as a % of Revenue 2,000, % 1,500,000 80% 1,000, % 55.8% 48.3% 46.8% 60% 40% 500,000 20% 0 Revenue Payroll * 0%

12 10. Projections Revenue $1,809,229 $1,815,093 $1,898,829 $1,917,817 $1,936,995 $1.956,365 Expenses $1,692,164 $1,642,497 $1,658,922 $1,675,511 $1,692,266 $1,709,189 Profit Ops $117,064 $172,596 $239,907 $242,306 $244,729 $247,176 Fleet $176,300 $145,000 $148,000 $150,000 $152,000 $155,000 Taxes $37,000 $27,595 $27,595 $27,595 $27,595 $27,595 Net Profit (loss) ($96,236) $0 $64,312 $64,711 $65,134 $64,581

13 11. Capital Plan Golf Operations Irrigation & course improvement 2012/ $500,000 Parking Lot $250,000 Club House Upgrades $150,000 Cart Paths $250,000 Sand Traps $75,000

14 12. Capital Investment Complete the irrigation system project at Northridge in 2013 Council support will be needed to renovate aging facilities and crumbling parking lots Conduct a study on the cost of renovating Northridge and Arrowdale clubhouses Develop additional funded capital investment streams through operations

15 13. Concerns How to generate enough capital reserves through operations Restrictions of Collective Agreement (weekend premiums) Delay in obtaining WiFi to accommodate customer needs Timing and installation of new software Point of Sale Timing of budget approval with regard to seasonal revenues Restrictions of participating in City wide contracts

16 14. Summary Manage Golf Operations as a profitable business which will eliminate public perception that Golf is subsidized by the taxpayer Streamline labour costs to further align with industry standards Replace equipment as needed by managing Golf Fleet reserve Develop Capital flow through Operations Engage City Council to address urgent Capital requirements Partner with City Departments such as Purchasing to find cost savings, recognizing that Golf is a seasonal operation Manage the implementation of the new computer system Grow golf in the City Junior Program Learning Center Tournament and Banquet Growth Investigate on-going viability and logistics of Arrowdale

18 Appendices A1 Membership, Green Fees. NR A2 Membership, Green Fees. AD A3 Additional Revenue Streams NR A4 Additional Revenue Streams AD A5 Food & Beverage NR A6 Food & Beverage AD A7 Wage Comparisons A8 GMB Organization Structure A9 Golf Operations Structure A10 Due Diligence A11 Fast Facts Northridge & Arrowdale A12 SWOT Analysis Golf Courses A13 SWOT Analysis Food & Beverage A14 SWOT Analysis Marketing A15 SWOT Analysis Administration A16 SWOT Analysis Maintenance A17 Attractions & Barriers Golf A18 Attractions & Barriers Clubhouses A19 Maintenance A20 Path to Revenue Neutral A21 Council Priorities

19 A1. Membership & Green Fee Players - Northridge * Green Fee $367,373 $383,574 $340,908 $364,098* Gold $202,818 $198,696 $174,629 $211,861 Flex Plan $45,488 $51,905 $48,933 $62,883 Totals $615,679 $634,175 $564,470 $ *

20 A1. Membership & Green Fee Players - Northridge $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Green Fees Gold Flex Plan

21 A2. Membership & Green Fee Players - Arrowdale Green Fee $179,986 $192,883 $180,228 $178,067 Gold $92,125 $84,650 $66,818 $72,810 Flex Plan $7,253 $7,923 $5,819 $7,797 $ $285,456 $252,865 $258,674

22 A2. Membership & Green Fees - Arrowdale $250,000 $200,000 $150,000 $100,000 $50, $0 Green Fees Gold Flex Plan

23 A3. Additional Revenue Streams - Northridge Power Carts $146,805 $163,036 $167,834 $168,137* Merchandise $0 $0 $47,480 $85,356* Range $12,969 $13,388 $4,667 $42,131 Lessons $0 $0 $25,805 $29,037

24 A3. Additional Gross Revenue Streams Northridge

25 A4. Additional Gross Revenue Streams - Arrowdale Carts $48,278 $50,693 $56,546 $63,576 Merchandise $0 $0 $11,438 $14,455

26 A4. Additional Revenue Streams - Arrowdale

27 A5. Food & Beverage - Northridge Food/Catering $167,959 $184,999 $166,439 $133,327 Beverages $176,005 $161,976 $157,824 $161,767 Confections $34,134 $35,063 $32,265 $36,814 Hall Rentals $13,978 $18,583 $13,956 $5,306 Totals $392,076 $400,621 $370,484 $337,214

28 A6. Food & Beverage - Arrowdale Food/Catering $43,058 $27,962 $18,634 $14,161 Beverages $93,527 $80,228 $80,649 $74,265 Confections $10,590 $13,558 $12,828 $10,197 Hall Rentals $3,442 $1,318 $1,786 $442 Totals $150,617 $123,066 $113,897 $99,065

29 A6. Food & Beverage Arrowdale

30 A7. Wage Comparisons - Golf Operations * Administration $296,564 $219,158 $182,196 $186,187 Pro Shop $141,400 $141,206 $128,345 $141,631 Course Maintenance $344,268 $359,313 $361,668 $369,823 Food & Beverage $276,575 $232,185 $159,635 $172,831 Totals $1,058,807 $951,862 $831,844 $870,472

31 A8. GMB Organizational Structure Golf Management Board Finance Marketing F&B Greens & Equipment Buildings Junior Programs Master Plan Budget Statements Controls Capital plan Revenues Advertising Promotions Signage Seminars Banquets Restaurant use Equipment Irrigation Mowing Trees & shrubs Maintenance Renovations and repairs Strategic plan Youth programs Course improvements Customer satisfaction Long term goals

32 A9. Golf Operations Golf Management Board General Manager Community Services Golf Operations Manager Pro Shop Staff PT - 14 Food, Beverage & Function Supervisor Greens Keeper Office Staff PT PT staff - as needed - Kitchen - Bar - Banquet - Beverage Cart FT 2 PT 6 Students - 3

33 A10. Due Diligence The Golf Board has identified key issues for further consideration: Analyze actual maintenance costs in Fleet charges Develop additional funded capital revenue streams Continue managerial control of margins on food & beverage Acquire software that will provide more accuracy and efficiency in point of sale sales and managerial controls Financial analysis of results to allow pro-active management correction Explore the feasibility and capital funding of a new or renovated clubhouse at Northridge Develop a long term capital plan (10-20 years) Explore the viability of Arrowdale as a profit making operation

34 A11. Northridge & Arrowdale Fast Facts Built in acres 18 holes Par 72 6,700 yards Clubhouse Banquet Hall Kitchen Restaurant/Bar Legends Bar Locker Room Practice range Built in Acres 9 holes Par 34 2,541 yards Clubhouse Banquet hall Small Kitchen Bar Locker Rooms

35 A12. SWOT Analysis - Golf Strengths Weaknesses Opportunities Threats oopen to the public oaffordable otaxpayer owned olocated in City ocompliments quality of life for community oimportant consideration for new business to relocate to Brantford ocompletion of Northridge Master Plan owage structure high obureaucratic structure of city makes it difficult to implement operational requirements in a timely manner obudget process doesn t fit well with the seasonal nature of the business odevelopment of a golf academy with the completion of the practice range ogrowth of the Junior program oability to offer unique payment options/plans opromote to city employees obuild relationships with other city programs opesticide ban oalcohol liability ostray ball liability olack of capital funding for building renovations

36 A13. SWOT Analysis Food & Beverage Strengths Weaknesses Opportunities Threats ogood relationship with members and guests oaffordable menu ogood quality food oknowledgeable staff ospin off business from golf oleague loyalty (NR) oincrease in events olayout that creates inefficiencies and cost oseasonal operation, difficult to retain staff omany areas offer the same products and services (Arrowdale) othe inability to secure better pricing outside of the city purchasing process oleague and tournament involvement of&b offerings in golf packages omore in house catering ocompetition from surrounding restaurants o Reliability of weather ohigh operating costs compared to competitors

37 A14. SWOT Analysis - Marketing Strengths Weaknesses Opportunities Threats oreputation of Business Manager & Golf Professional owell known in local and surrounding markets ouse of City resources Tourism Department to distribute brochures oimproved reputation in marketplace olack of WiFi oweb site oinability to track data with existing software opromote as good value in comparison to our competition otarget local area with special offerings obuild relationships with local businesses oupgrade software to accomplish data control for promotions osaturated market with many courses within 30 min drive obudget cuts oincreasing advertising costs

38 A15. SWOT Analysis - Administration Strengths Weaknesses Opportunities Threats ostaff experience with policies and customer service oorganization of the operation ocentral communication for staff oprovides staff services for payroll, health & safety, HR ohigh turnover of staff due to seasonal nature of golf olack of training from Jencess oinefficient office layout and storage ono reception area to welcome guests otraining for finance controls and customer service opayment programs oeconomy oreduced training budget ocomputer software and supplies

39 A16. SWOT Analysis - Maintenance Strengths Weaknesses Opportunities Threats oprovides good course conditions for golfers oexperienced, knowledgeable staff oskilled to perform most regular maintenance and repairs in house oability to borrow equipment from other City departments oaging equipment and infrastructure olack of funds to improve building efficiencies olimited staff to do projects during the playing season ocontract that allows overtime payment for weekend work by full time, part time and students ostaff recruitment has improved with more qualified applicants ouse of Parks & Rec horticultural equipment and expertise obetter reporting of Fleet charges (actual) for mgmt control oeconomic conditions opesticide ban ostricter water usage constraints ofunded capital reserve (funded)

40 A17. Course Attractions and Barriers Attractions Both courses offer affordable, player friendly, mid level golf to average golfers, seniors and juniors Both courses are kept in excellent condition Mature trees Friendly, helpful staff Location within the City Barriers Parking lots are in poor condition No cart paths Stray ball liability on holes 8 & 18 at Northridge

41 A18. Club House Attractions & Barriers Attractions Affordable Chairlift added in 2008 Views of fairways and trees Good quality food Friendly staff Barriers Both clubhouses are outdated, inefficient and unattractive for weddings and business functions Exteriors have multiple facades and are in poor condition with faded and peeling paint Unable to satisfy revenue potential Parking lot in poor condition Lack of WiFi to attract business functions

42 A19. Maintenance The pro-active Maintenance program adopted in early 2012 has resulted in improved putting greens Northridge has a small repair shop that is well equipped to handle most regular repairs and do all necessary blade sharpening Considering the age of the equipment, the Golf Board continues to be impressed at the skill level of the maintenance staff who have minimized capital costs by being self sufficient

43 A20.Path to Revenue Neutral 2008 Develop Strategic Plan 2008 Path to Revenue Neutral 2013 Develop & Implement Financial Controls & Reporting Format Implement Strategy to Increase Market Share Golf Revenues Installed Security Cameras Awarded $1.25 Million Capital to Replace Irrigation System at Northridge (5yrs) Develop Ten Year Capital Plan Develop Business Plan to be Revenue Neutral by 2013 Master Plan for Northridge 2013 Installed Security Systems Strengthened Internal Controls for cash handling Reduced Operating Costs Improved Operating Efficiencies Prioritized Master Plan Recommendations Refined Business Plan Pursue Partnerships Pursue Revenue Opportunities Challenge & Reduce Overhead Charges Improved Customer Service Full Practice Range

44 A21. Council Priorities Economic vitality & innovation Will be revenue neutral by 2013 High quality of life and caring for all citizens Offer affordable golf for all ages Family tees Partnership with Special Olympics, Big Brothers & Sisters Manage growth and environmental leadership Increase tree canopy, Excellence in governance and municipal management Accountability for bottom line responsibility Making customer service a priority

Sample Performance Review Form

Sample Performance Review Form Directions The following sample performance evaluation form can be used as a guideline when reviewing an employee s performance. It contains example areas of golf operations