HomeMy WebLinkAboutStaff Report 4212
City of Palo Alto (ID # 4212)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 11/4/2013
City of Palo Alto Page 1
Summary Title: Palo Alto Municipal Golf Course Fees
Title: Staff Recommendation to Allow Special Promotional Golf Course Fees
for the Palo Alto Municipal Golf Course (Golf Course) to Include: Loyalty
Cards - Play 5 Rounds And Get 1 Free; Limited Two for One Green Fee Offers;
Saturday and Sunday - Kids Play Free With One Paid Adult; and Good Deed
Gift Certificates.
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that Council approve amendments to the Municipal Fee Schedule to include
special promotional golf fees for the Palo Alto Municipal Golf Course (Golf Course) such as
Loyalty Cards - Play 5 rounds and get 1 free; limited two-for-one green fee offers; Saturday and
Sunday - Kids play free with one paid adult; and Good Deed Gift Certificates.
Background
Preparatory work has begun on the San Francisquito Creek Joint Powers Authority (JPA) flood
protection project and the related preparation of the Palo Alto Municipal Golf Course (Golf
Course). The initial phase of work involves the importation and stockpiling of soil on designated
portions of the Golf Course for future use as fill for both the flood control levees and
anticipated golf course renovation.
Importing the soil in advance of the project starting is needed to produce a stockpile of certified
soil to enable the flood protection project and golf course renovation to get underway
promptly in spring 2014. To accommodate the soil stockpile area, several holes on the Golf
Course were shortened, reducing the par score of the entire course from 72 to 67. The course
remains open for public use until spring 2014.
City of Palo Alto Page 2
While the pre-construction Golf Course is a shorter course, it is a fun layout that allows golfers
to complete a round of golf in less time than in the past. The golf course is still an 18-hole golf
course with two par 5, nine par 4 and seven par 3 holes.
Staff anticipated that some golfers would chose to play elsewhere during the pre-construction
phase, preferring to play a longer golf course. Consequently, staff has been offering discounts
allowed through the current municipal fee schedule throughout the week and weekends to
entice more golf play from existing golfers, new customers, and first-time golfers.
The FY 2014 Adopted Budget includes reduced revenues for the anticipated closure of the Golf
Course in April 2014 and anticipating the down turn in rounds played due to the modified
course.
Discussion
After the first quarter of fiscal year 2014 (July – September 2013) the Golf Course has
experienced a greater reduction in golf rounds played than anticipated. In the month of
September, rounds of golf played were 30% lower than assumed as part of the development of
the FY 2014 budget. This resulted in approximately $100,000 less revenue in the first quarter
than expected. Staff are concerned that further reduction in golf rounds played and related
reduced revenue could continue as we approach closure of the course in April 2014.
In an effort to promote the Golf Course during this pre-construction period, and help create
excitement and enthusiasm for the future Baylands-themed Golf Course, the Golf Course
Management Team developed, and is implementing, a marketing campaign called “Bridge to
the Future” (Attachment A). The Golf Course Management Team is made up of City staff,
contracted Golf Professional Brad Lozares, Valley Crest course maintenance staff, Bay Café
staff, Golf Course Architect Forest Richardson, and members of the Golf Course Advisory
Committee. The marketing campaign uses social media, radio, print advertising and other
promotional strategies to tell a compelling story about the rich history of Palo Alto’s Golf
Course and the innovative plans for the future.
Staff believes the marketing campaign will be more effective if more enticing discounts and
special offers can be used to capture people’s attention and further encourage existing and
new golfers to visit and play more golf at the Palo Alto’s Golf Course.
The approved 2014 Municipal Fee Schedule allows for the discounting of golf frees up to 35%,
which was increased from 25% specifically for the pre-construction period (Attachment B). The
City of Palo Alto Page 3
ability to discount golf fees up 35% has been helpful but ultimately has not yielded the amount
of golf rounds needed to reach revenue targets.
Staff believe additional flexibility in discounting, including limited very low, to no-cost golf fees
during very slow times of the day, are needed to significantly increase visitation and revenue in
the months ahead. Staff would like Council to approve the following promotional strategies
that are not possible within the limits of the approved 2014 approved Municipal Fee Schedule:
Loyalty Cards – Play 5 rounds and get 1 free
Loyalty cards can be a very effective way to keep existing golfers that frequent Palo
Alto’s golf course returning. The concept is a simple punch card: if a patron plays five
times, the patron will receive one free round of golf, redeemable during the pre-
construction period, or the patrons can elect to receive a gift certificate to play the new
golf course (anticipated to open in summer of 2015).
Two-for-one green fee offers
To be offered at limited times when golf play is extremely slow, such as Tuesday
through Thursday afternoons. These special offers would be provided by coupon only,
and monitored daily to evaluate whether it is generating more play and ultimately more
revenue.
Saturday and Sunday – Kids play free with one paid adult
This incentive aims to promote family golf. Youth and teens already pay very low fees to
play golf, offering free golf for a youth or teen with a paying adult is an incentive that
staff believes could generate additional paid golf rounds along with customer loyalty
and new golfers.
Good Deed Gift Certificates
This idea aims to create a stir by giving away free rounds to the “Bridge” course during
the interim course conditions. The City of Palo Alto has many volunteer groups
supporting the community. Staff proposes a limit of 200 gift certificates to be awarded
to Palo Alto volunteers and volunteer groups at the discretion of the City Manager or his
designee. The expectation is the individual who receives a gift certificate will use it and
bring a friend or several friends who would need to pay for their round of golf resulting
in more rounds played and revenue.
Resource Impact
The resource impact is approximately $10,000 for new promotional materials and advertising
expenses, and is being paid for with existing budget. The anticipated result in revenue
generated for approving the recommended promotional offers is difficult to predict. The risk by
providing more generous discounts to customers is that the customer may have been willing to
City of Palo Alto Page 4
play the Golf Course anyway and pay a higher fee. However, given the very low golf rounds
experienced in the first quarter of the fiscal year, staff believes the more likely outcome of the
promotional strategies is more people coming to the Golf Course and returning to take
advantage of the opportunities. Each promotional strategy will be closely monitored for
effectiveness and discontinued if ineffective.
The FY 2014 Adopted Budget assumed $1,040,550 in revenue from golf rounds played. The
revenue generated between July and September was approximately $350,000, which was 30%
less than projected. Staff will continue to monitor golf rounds played and revenue received and
the effectiveness of the recommended promotions and reduced fees. Further, as part of the
mid-year budget review, staff may bring forward a golf revenue estimate adjustment.
Attachments:
Attachment A: Palo Alto-BRIDGE TO THE FUTURE-Low (PDF)
Attachment B: CSD Municipal Fee Schedule (PDF)
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
Interim Marketing & Publicity Campaign
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
“Bridge to the Future” Campaign Theme
Objective • Create a simple & positive way
to express the interim “bridge” golf course
Message • Course is open
• Temporary “bridge” layout lasts just
6 months
• It will all be worth it once the new course
opens in 2015
Resources • Allows publishing in printed and
digital formats
• “Bridge to the Future” becomes
the way we decsribe the temporary
course layout
• Use of existing logo elements
and Palo Alto name links us with the
present course
Timing • Launch October 2013
• Carry through ground breaking
(April 2014)
Goal • Bring a positive message to the facility
• Through implementation of
recommended stragegies, increase
and retain play during the campaign
• Bring as many golfers to the facility
so the concessionaires get revenue
• Bring as many people to the facility
to educate them about the future
Retain course name
and location awareness
Send a message that the
temporary layout has
a purpose and positive
outcome
Link to the existing
course logo & image
Communicate the
location of the facility
for those who may not
be familiar
Establish the fact that
the duration of the temporary
layout is just six months
Create a theme that
is grounded in the past,
yet signifies something
different that is fun
and interesting
Special Green Fee Rates
Objective • Provide incentive offers to keep the facility
as busy as practical
Message • We value your business & support
• Course is open
• Temporary “bridge” layout lasts just
6 months
• It will all be worth when the new course
opens in 2015
Resources • Printed flyers 8.5 x 11
• Distribution through City facilities
(libraries, at events, council meetings,
and selected on-course days)
• Suggested bookmark for distribution
at city libraries
• Restrict distribution as needed
Timing • Launch October 2013
• Carry through February 2014
Goal • Keep the play as busy as prasctical
• Bring as many golfers to the facility
so the concessionaires get revenue
• Bring as many people to the facility
to educate them about the future
Special Coupon Flyer
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
GET
READY
FOR
2015
AND
SAVE.
25
• Course & Range
Fully Open
• Par 67, fun layout
• 5,500 yards
•“Bridge” layout
begins October 2013
& wraps up April
2014 for rebuilding
One Player, Exp. April 2014
Good for Green Fee Only
Same Day Availability
$
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
Good Any Day
Palo Alto
Golf Course
Subject to Availability
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
PaloAlto GolfCourse
•Est.1956 •
Bookmark
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
Palo Alto
Municipal Golf
Course is open!
Come and enjoy
this special,
limited rate
30$
Weekdays
Weekends
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Break the Course Record Mini Campaign
Objective • Bring some fun to the “Bridge” layout —
challenge players to become part of
Palo Alto golf history
• Get media coverage (sportscasts, golf
writers, etc.)
Message • There is a reason to play as much
as you can before next April
Resources • Printed flyers 8.5 x 11
• Distribution at the golf facility (proshop
and restaurant)
• Plaques for final record holders
• Counter display and daily updates
(as a printed insert)
• Special event at 2014 ground breaking
to honor course record holders
Timing • Launch October 2013
• Carry through April 2014
Goal • Maintain fun and an on-going competition
among all handicapped golfers
Note • May stimulate new handicap registration
• Record holders awarded for men, women
and 15-and-under for handicap ranges:
Scratch-better / 1-3 / 4-6 / 7-9 / 10-15 /
16-20 / 21-25 / 26-30 / 30+
8.5 x 11 Flyer
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
HELP
US
BREAK
THE
COURSE
RECORD.
• Course & Range
Fully Open
• Par 67, fun layout
• 5,500 yards
•“Bridge” layout
begins October 2013
& wraps up April
2014 for rebuilding
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
PaloAlto GolfCourse
•Est.1956 •
30 Course records will be given,
one for each handicap category.
Winners will be honored in April 2014
at the ground breaking of the new
Baylands Golf Links.
Turn your card in every time you play.
Details available in the proshop.
Course Record
Holder
On December 10th, 2013
Craig Allen
Scored the Course Record at the Palo Alto
Municipal Golf Course Par-67 Layout
in the 16-19 Men’s Handicap Category
Record Holder Plaque
Counter Sign Holder
with current record holders
Current Course
Record Holders
Dean Barman 65
Craig Allen 58
Stacy Weatherspoon 61
Edward Carey 60
Betty Ballman 59
Alice Dykstra 60
Pearl Watkins 58
Play 5 Mini Campaign
Objective • Get players to play more golf by
creating an incintive to play as many
rounds as possible during the “Bridge”
course layout
Message • There is a reason to play as much
as you can before next April
Resources • Printed flyers 8.5 x 11
• Distribution at the golf facility (proshop
and restaurant)
• Punchcards 3.5 x 2.25
• Specialty punch with Canadian goose
(because we are going to “punch” them out!)
Timing • Launch October 2013
• Carry through April 2014
Goal • Hand out as many punchcards as possible
• Hand out as many Free Round certificates
as possible (each one given out will
have earned $150 in revenue and five
visits by a loyal player)
Note • Free Round certificates should be
machine numbered for inventory
• Punch should be proprietary to avoid
counterfeiting
• Players should show ID each time
a punch is awarded
8.5 x 11 Flyer
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
PLAY-5
AND
GET
A FREE
ROUND.
• Course & Range
Fully Open
• Par 67, fun layout
• 5,500 yards
•“Bridge” layout
begins October 2013
& wraps up April
2014 for rebuilding
• Play free on the new
Baylands Golf Links
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
PaloAlto GolfCourse
•Est.1956 •
Punchcard
Every time you play
5 rounds from now
through March 2014
you get a free round
after the opening of
the new Baylands
Golf Links. No limit.
See the proshop
for your punchcard.
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
PLAY-5 CARD
1 2 3
4 5 FREE
I S S U E D T O
PLAY-5 CARD
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
PLAY-5 CARD
1 2 3
4 5 FREE
I S S U E D T O
Get your
Play-5 card
today and
start earning
free rounds
when the new
course opens!
1. Card must be issued to a specific player.
2. Only 18-hole rounds are punched.
3. Play must occur between Oct. 2013 and April 2014
4. Certificates for play on the new Baylands Golf Links
will be issued to the golfer named for each completed
punchcard.
5. Free round certificate is subject to available tee times
and may not be combinded with other offers.
Management not responsible for lost cards
Special Punch
Free Round
Certificate
BBAYLANDSGOLFLINKS
•PALO ALTO
•
No. 224
Free Round Certificate
Good Anytime from Issue Through April 2015
Issued to _______________________________
Date __________ By_____________________
1875 Embarcadero Rd. | 650-856-0881 | www.bradlozaresgolfshop.com
A-Frame Poster Program
Objective • Reach players and those using the range
and Bay Cafe to let them know about
special offers during the “Bridge” layout
period through March 2014
Message • Have fun during the interim layout time
• We value your business
• The course is open and has special rates
Resources • (6) A-frame Sign Holders for walkways,
putting green, range, and first tee areas
• Poster inserts
• Requires space at range, first tee, Bay Cafe
and other facility areas
Timing • Launch October 2013
• Carry through April 2014
Goal • Keep the play as busy as practical
• Bring as many golfers to the facility
so the concessionaires get revenue
• Bring as many people to the facility
to educate them about the future
• Get local business to come out and
hear the story of the new Baylands
Golf Links (Tourney Time)
Note • Tourney Time rate requires a 10-minute
presentation on the Baylands Golf Links
to open in Fall 2015
Sign-A-Cade 24 x 36 A-Frame
HELP US
BREAK THE
COURSE
RECORD.
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
Turn your card in every time you play
from now through March 2014
30 Course records
will be given, one
for each handicap
category. Winners
will be honored in
April 2014 at the
ground breaking
of the new Baylands
Golf Links.
PLAY 5
AND GET
A FREE
ROUND.
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
Sign up today for a Play-5 Punchcard,
get a free round at the Baylands Links
Every time you play
5 rounds from now
through April 2014
you get a free round
now or after the
opening of the new
Baylands Golf Links.
No limit. See pro-
shop for punchcard.
TOURNEY TIME
IS NOW JUST
$39 PER
PLAYER.
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
Organize any group of 12 or more
players and get this special pricing
Per player price
includes 18-holes,
cart, drink ticket,
& range balls. Great
for corporate team
building. Available
through April 2014
& subject to avail-
ability.
Course Record Mini Campaign
Play-5 Punchcard Mini Campaign
Tourny Time Mini Campaign
Tourney Time Mini Campaign
Objective • Bring in local corporations and businesses
to show them what is going on
• By offering a great deal, make it difficult
for area businesses to say “no” to a fun
outing for team building
Message • The Palo Alto Golf Course is open
• We are in the middle of some exciting
change for the community
Resources • Printed flyers 8.5 x 11
• Distribution to area offices by golf course
team and concessions
• Simultaneously hand out information
brochure about the new Baylands Golf
Links
Timing • Launch October 2013
• Carry through April 2014
Goal • Keep the play as busy as practical
• Bring as many golfers to the facility
so the concessionaires get revenue
• Bring as many people to the facility
to educate them about the future
Note • Tourney Time rate requires a 10-minute
presentation on the Baylands Golf Links
to open in Fall 2015
Special Coupon Flyer
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
TOURNEY
TIME
IS NOW
JUST
$39 PER
PLAYER.
• Course & Range
Fully Open
• Par 67, fun layout
• 5,500 yards
•“Bridge” layout
begins October 2013
& wraps up April
2014 for rebuilding
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
PaloAlto Golf Course
•Es t.1956 •
Per player price
includes 18-holes,
cart, drink ticket,
& range balls. Great
for corporate team
building. Available
through March
2014 & subject to
availability.
Treat your office & team to
a fun golf outing at this special rate
1. Just $39 per golfer during the “Bridge to the Future” days
2. Includes 18-holes green fee & cart
3. Each player receives one drink ticket and range balls
4. Applies to groups of 12 or more, subject to availability
5. Food and beverage may be added to customize your outing
6. Other restrictions apply, call 650-856-0881 for details
City Employee Offer
Objective • Take advantage of the 1,000 city
employees and offer them a nearly-free
opportunity to come out and play the
“Bridge” course
Message • We value your work and want to share
the opportunity to play the course while
it has available tee times
• Course is open
Resources • Printed flyers 8.5 x 11
• Distribution to city employees
• Restrict distribution to city employees
• Restrict the number of printed flyers
Timing • Launch October 2013
• Carry through April 2014
Goal • Keep the play as busy as practical
• Bring as many golfers to the facility
so the concessionaires get revenue
• Bring as many people to the facility
to educate them about the future
• Provide a value to city employees that
will get them talking
Special Coupon Flyer
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
GET
READY
FOR
2015
AND
SAVE.
• Course & Range
Fully Open
• Par 67, fun layout
• 5,500 yards
•“Bridge” layout
begins October 2013
& wraps up March
2014 for rebuilding
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
PaloAlto Golf Course
•Es t.1956 •
25
One Player, Exp. April 2014
Good for Green Fee Only
Same Day Availability
$Good Any Day
Palo Alto
Golf Course
Subject to Availability
1875 Embarcadero Road
650-856-0881
www.bradlozaresgolfshop.com
30$
Weekdays
Weekends
Good Deed Free Round Certificate
No. 224
Good Deed Free Round
Issued to _____________________________________
Date __________ By___________________________
Good for a free round of golf at Palo Alto Municipal
Golf Course – October 2013 through April 2014
1875 Embarcadero Rd. | 650-856-0881 | www.bradlozaresgolfshop.com
City-wide Good Deed Publicity Campaign
Objective • Create a stir by giving away free rounds
to the “Bridge” course during the
interim course conditions
• Get media coverage of the program
Message • Palo Alto is excited about the new course
and preparations to make it come together
• The SFCJPA work is important to our
community and we want people to know
about it
Resources • Printed certificates to the “Bridge” course
• Information sheet for those handing out
the certificates
• Reach out to police departments, fire
stations, and city departments who come
in contact with the public
Timing • Launch October 2013
• Carry through April 2014
Goal • Bring new faces into the facility
• Get media coverage
Note • Good Deed certificates are handed out
for such things as courteous drivers,
donations, volunteers at events, etc.
• Certificates are a surprise to those receiving
them and will cause word-of-mouth
discussion
BRIDGE TO
THE FUTURE
—
PALO
ALTO
MUNI
GOLF
Embarcadero Banner
Objective • Take advantage of the traffic count
by promoting the “Bridge to the Future”
campaign and special rates
Message • Course is open
• Special rates are available now
Resources • Banner (Approx. 8 ft. x 16 ft. with
frame)
• Temporary sign permit
Timing • Launch October 2013
• Carry through April 2014
Goal • Keep the play as busy as practical
• Bring as many golfers to the facility
so the concessionaires get revenue
• Bring as many people to the facility
to educate them about the future
Banner on Embarcadero
BRIDGE TO
THE FUTURE
—
PALO
ALTOMUNIGOLF
SPECIAL
RATES
Baylands Golf Links Pamphlet
Objective • Educate those visiting the facility
about what is going on
• Educate the community about what
is going on
• Dispel rumors about tree mitigation,
athletic fields, gymnasium, etc.
Message • The project is exciting
• The project enables flood protection for
the community
• The project is designed to be self-sustaining
in terms of long term finances
• The project has a good environmental
basis
Resources • 9 x 12 3-fold pamphlet
Timing • Launch October 2013
• Carry through completion of construction
Goal • Get positive awareness
• Control the story of the work
BBAYLANDSGOLFCLUB
•PALOALTO•
FORREST RICHARDSON&ASSOC.
G O L F CO U R S E A RC H I T E C TS
www.golfgroupltd.com
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Rebuilding our golf
course is as much about
creating great golf as it is
about the environment.
Preparatory work is scheduled to begin
the week of August 12th on the San Francisc-
quito Creek Joint Powers Authority (JPA)
flood protection, ecosystem and recreation
project, which will impact the City’s Munici-
pal Golf Course. An initial phase of work in-
volves the importation and stockpiling of soil
on designated portions of the Golf Course
for future use as fill for new levees and on
the golf course. Later this year, the City
Baylands Golf Links Information Pamphlet
BBAYLANDSGOLF
LIN
KS
•PAL O A LTO •
The exciting story
behind Palo Alto’s
project to rebuild its
public golf course.
Recommended Base Programs
• Special Green Fee Rates (flyers and bookmarks)
• Break the Course Record Mini Campaign
• Play-5 Punchcard Campaign
• Tourny Time Campaign
• A-Frame Poster Series
• Name the Holes Contest
• Breezeway Timeline & Information Display
• Good Deed Publicity Campaign
• City Employee Rate Offer
• email blasts
— To city employees
— To existing golfer dBase
— To NGF area zip codes ($175/1000)
• Distribute flyers to the airport and airport businesses
• Install temporary banner along Embarcadero Road
Integration Recommendations
• City website should carry a “Bridge to the Future”
icon that will link to a special page where available
programs and offers can be listed
• All City and Lozares Facebook, Twitter and social media
links should begin promoting the offers how to take
advantage of the “Bridge” layout rates
• Work to initiate the First Tee of Silicon Valley agreement
and program — take advantage of the available tee times
to get them out on the shorter course
• Continue club fitting and demo days events
• Expand outreach to Nine-and-Wine, Get Golf Ready
and other PGA/USGA/Golf 2020 programs, offering
the “Bridge” layout offers (or new ones)
Recommended Publicity Steps
• Begin ordering and selling Baylands Golf Links
merchandise in the proshop
• Train golf staff (including city, Bay Cafe and Valley
Crest) to deliver the Powerpoint “Story” to groups and
area businesses
• Train existing golf club representatives to deliver the
Powerpoint “Story” to groups and area businesses
• Schedule podcast and radio interviews to educate
about what is going on at Palo Alto Golf Course and
the future Baylands Golf Links
• Get local media coverage about what is going on,
including the “Break the Course Record” campaign
• Plan a major ground breaking event for April 2014
• Distribute Baylands Golf Links information brochures
at all City locations and golf facility