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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 25 On e P l a y e r , E x p . A p r i l 2 0 1 4 Go o d f o r G r e e n F e e O n l y Sa m e D a y A v a i l a b i l i t y $ Go o d A n y D a y Pa l o A l t o Go l f C o u r s e Su b j e c t t o A v a i l a b i l i t y 18 7 5 E m b a r c a d e r o R o a d 650 - 8 5 6 - 0 8 8 1 ww w . b r a d l o z a r e s g o l f s h o p . c o m 30 $ We e k d a y s We e k e n d s 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 SGNALP HTIWNWOH GNARGNOLH MEVORPMIEG SSTNEM KCABORPRAPPAELOH 5730245930744421 DWFGER 582543033093 RAPAELOH 441101 sruoCehtfofdraC DWFGERKCABORP 003592533053083093004044 e 505002003514503051594 555032533534033081025 5344435 9876543 59304103202353259004 564061072063082021544 5343453 81716151413121 0930310625758257358 554571003501053544001 005002043031583015521 525532573051504025551 G 5613054363 54420282 1753 04645912534551625216069255665023 BAPPA• SDDS NND ALYAAYB BL •OT BULCFLLFBOOLG ngiseD LAP mpoleveD AO alPtnem OTLA tiC|n OGO laPfoy FLO C,otlAo UOC nrofilaC SRU ai E 110 0 003055 f006054 dniWteef htroN F G TSERRO D dtlpuorgflog.www CRAESRUOCFLO OSDRAHCIRT )CBD/RLF(2102JD moc. STCETIH COSSA&NO 21018R .C LAA OTLLTAOL g p | fy , f D )CBD/RLF(2102enuJnwarD 2101-8.veR 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