Operational Analysis NPBCC October 2002Operational Audit
of
North Palm Beach Country Club
North Palm Beach, Florida
Prepared for:
North Palm Beach Country Club
North Palm Beach, Florida
Prepared by:
NGF Consulting, Inc.
1150 South U.S. Highway One
Jupiter, Florida 33477
(561) 744-6006
OCTOBER 2002
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COMSULT1NG
Contents
Introduction........................................................................................................ 1
Scopeof Services............................................................................................................... 1
ExecutiveSummary............................................................................................. 3
OperationalOverview.......................................................................................................
5
Administration..................................................................................................................
5
Management......................................................................................................................
6
StaffingLevels...................................................................................................................
6
Marketing..........................................................................................................................
8
ActivityLevels..................................................................................................................
10
Historyof Rounds Activity.....................................................................................................
11
CourseUtilization..................................................................................................................
13
RoundsSummary...................................................................................................................
14
Summary of Golf Activity Trends...........................................................................................
14
FinancialOverview..........................................................................................................
15
Financial Overview Conclusions and Recommendations.....................................................
16
DrivingRange..................................................................................................................
18
Golf Course Operations Manual and Golf Course Employee Personnel Policies ........
20
Employee Performance Evaluation................................................................................
22
Point -of -Sales System.......................................................................................................
22
Cash Control Procedures................................................................................................
24
Recordsand Reports.......................................................................................................
24
TeeTime Reservations....................................................................................................
24
CustomerService............................................................................................................
26
CourseMarshaling..........................................................................................................
26
ProShop Merchandise....................................................................................................
28
Player Development Programs.......................................................................................
29
Tournaments/Outings/Clubs/Leagues.........................................................................
30
Controlling Complementary Play...................................................................................
31
Locker Room and Bag Storage Services.........................................................................
32
North Palm Beach Coanlry C/ab Operations/Analysis
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C4MMUING
Introduct'i'on
The Village of North Palm Beach retained National Golf Foundation Consulting,
Inc. (NGFC) to review its North Palm Beach Country Club golf operation and
make recommendations for its future organizational options. NGF Consulting
would perform the following scope of services:
Scope of Services
Review the past and current organizational structures and focus on suggesting
options that can improve both the overall efficiencies and financial performance
of the pro shop and golf instruction operation.
Some of the areas to be examined include but are not limited to:
0 Customer service
• Golf course budget
• History of the golf course enterprise fund
• Departmental expenses
0 Golf activity analysis
0 Merchandise sales financial history and revenue projections
• Merchandise evaluation inventory analysis
• Golf lesson financial history and revenue projections
• Pro shop staffing levels and personnel expenses
• Locker room services
0 Bag storage services
• Job descriptions
• Player development programs
• Tournaments/Leagues/Outings services
• Point -of -sales system
North Pa/in Beach Couuh�y C/ub Operational Analysis >
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CONSULTING
9 Cash control system
• Tee time reservation procedures
• Records and reports
• Controlling complementary play
National Golf Foundation Consulting, Inc. (NGFC) visited the North Palm Beach
Country Club (NPBCC) on several occasions to observe the golf operation. Angelo
Palermo, Senior Associate Consultant and Mitchell Herbert, Project Analyst, met
with NPBCC administrative and golf course staff.
The consultants met with David H. Talley, Director of the NPBCC and with John
Scott, Golf Professional. They toured the course, clubhouse and maintenance
facility. They examined the pro shop, restaurant, driving range and cart opera-
tions.
NGF Consulting would like to thank the staff of the North Palm Beach Country
Club for their cooperation in providing timely and comprehensive data and other
information.
Following is the report of consultants' analysis of the North Palm Beach Country
Club golf operation and recommendations for its future management.
Noah Palm Beach Country Club Operaftlial Analysis 2
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Executive Summary
NGF Consulting began its analysis of the North Palm Beach Country Club's golf
course operation by meeting with Village and North Palm Beach Country Club
(NPBCC) officials to collect relevant data and to gain insight into the operation of
the facility.
The consultants evaluated the current golf operation and recommended changes
that may have a positive influence on the future operation of the course.
The results of our analysis have been summarized as follows:
• The Village is making every effort to provide residents and visitors with a
good golf experience at reasonable rates. The table of organization is
fundamentally sound and should facilitate the efficient operation of the
club.
• Staffing levels were well within an acceptable range and wages/salaries
appeared to be competitive with other area municipal courses. NGF con-
sulting recommends management continually evaluate staffing needs and
increase or decreases the number of employees to maintain the highest
level of customer service.
• The current marketing effort consists of advertising in local and regional
print media. NGF Consulting recommends a more proactive strategy to
attract more golf outings and tournaments as well as green fee and annual
fee players, because of strong competition from other area facilities.
• The NPBCC has averaged slightly more than 69,000 rounds of golf for the
past three fiscal years.
• NGF Consulting estimated that the NPBCC is playing to an average of 76.7
percent of capacity for the past three years and 77.8 percent in FY2001/02.
• The financial data revealed that the golf course operation has not achieved
its financial obligations since 1997 but is on track in 2001-02.
North Palm Beach County Club O,veraftval Afla/ysis 3
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CONWLTINCO
• The continued financial success of the NPBCC is highly dependent upon
revenues generated from all aspects of the operation. Both the swimming
pool and tennis operations as well as the NPBCC's overhead are a drain on
the golf operation revenues.
• The driving range is functional, but is limited in the number of users that
can be accommodated. NGF Consulting recommends adding a second level
to increase the number of tee stations and expanding the hours of opera-
tion to take advantage of the additional demand that will occur when a
stand alone range on Northlake Boulevard closes. Additionally, a debit
card- or cash-operated ball dispenser would increase profits and reduce
operating costs.
• NGF Consulting recommends that management develop a comprehensive
operations manual for the NPBCC. The manual should include a section
on employee personnel policies and performance evaluations.
• NGF Consulting recommends that the NPBCC purchase a new state-of-the-
art point-of-sales system (POS).
• NGF Consulting recommends that the NPBCC investigate purchasing a
POS that will enable the initial transaction to be entered into the system
and then downloaded into the Village's computer system by modem or
floppy disk, thus eliminating the current multi-step process.
• A new POS should have extensive report generating capabilities that will
enable management to evaluate every aspect of the golf operation.
• The tee time reservations system is reported to be working well, and users
seem to be satisfied with the manual method of assigning tee times. How-
ever, there are computer systems on the market that can be more efficient
and void of any abuses that can occur with a manual system.
• Improving customer service is a continuous challenge that every golf course
faces. The NPBCC can do a better job of training and supervising its em-
ployees. Management should also consider balancing the staff by hiring
more women and younger employees.
• Pace of play was found to be a point of dissatisfaction with 50 percent of the
respondents to a recent customer survey. NGF Consulting recommends
that management develop a training program for rangers, expand the job
description for this position, and provide closer supervision of these em-
ployees.
• NGF Consulting agrees with the current pro shop merchandising policy of
keeping inventories modest and prices competitive so long as it remains a
NPBCC enterprise. However, if the pro shop becomes a concession, a golf
North Pa/m Beach Country Club Operaiioaal Alia/ysis 4
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professional may be able to expand its inventory and profitability. A defi-
ciency reported in the current operation is the lack of storage space, which
should be addressed.
• NGF Consulting recommends adding a more aggressive series of instruc-
tion programs for both beginners and more experienced players, to "grow"
new customers.
• Tournaments, clubs and outings represent only a small portion of golf
activity at the NPBCC. NGF Consulting recommends that management
develop a more comprehensive set of written policies and procedures
regarding these events.
• NGF Consulting recommends that management develop a specific set of
rules and regulations to monitor complementary play.
• Locker room and bag room services appear to be satisfactory so long as the
expense of providing these services is in balance with their costs.
Operational Overview
The Village of North Palm Beach has provided golf services at the 18 -hole North
Palm Beach Country Club since acquiring the facility in 1961. NGF Consulting has
the following observations and recommendations concerning the current opera-
tion of the NPBCC.
Administration
The NPBCC is one of several services provided by the Village of North Palm Beach.
The Village Council, elected by the residents of the Village, is the policy-making
body that gives direction to Dennis Kelly, Village Manager. Mr. Kelly is responsible
for overseeing the management of all the Village's services including the NPBCC
operation. The NPBCC is operated and maintained under the supervision of the
David Talley, Director.
A seven -member NPBCC Advisory Board, appointed by the Village Council, serves
in an advisory capacity to the Council and the Country Club Director. The Advi-
sory Board is responsible for the following tasks:
• Advises on the establishment of policies, rules and regulations.
• Recommends fees and rates.
• Advises on operating and capital budgets.
North Palm Beach Country Club Operaiional Qnallsis 5
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CLANG
Management
The management and maintenance of the NPBCC is the responsibility of David
Talley and his staff.
John Scott, PGA Professional, oversees the operation of the golf services. He has
both full-time and hourly employees who perform various tasks such as staffing the
pro shop, starter's booth, bag storage room, driving range and cart operation and
patrolling the course.
Maintenance of the golf course is the responsibility of John Morsut, Golf Course
Superintendent, and his staff.
Staffing Levels
The golf operation employs both full-time and hourly employees to perform
various tasks. Several employees work on a seasonal or part-time basis depending
on their positions and the time of year. These persons work in the pro shop,
prepare the golf carts for rental, service the bag room and driving range and serve
as starters or rangers. This group of employees is made up of retired persons and
some college students. These employees are paid an hourly wage, which ranges
between $8.26 and $8.60 per hour. The Village sets the hourly wage for each
position annually.
There are no industry standards that can be referenced to determine the appropri-
ate staffing levels for a golf operation. The number of staff needed for a particular
golf operation depends on several factors:
• The average number of rounds a facility plays each day.
• The types and level of player services provided by the facility.
• The number and size of tournaments and outings or other special events a
facility accommodates each day, week or month.
• The physical layout of the facility.
• Training and experience of the employees.
• Level of management supervision.
The golf course was adequately staffed on the days the consultants visited the
facility. All areas of the golf operation (starters, rangers, cart attendants, driving
range and pro shop) had one or more employees from the time the course
opened until the close of business. The consultants assume that adequate staffing
levels are maintained throughout the year, based on the budget for 2001-2002.
North Pa/in Beach Couaby C/ub Operational Ana/rs/s 6
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CCtAtMUING
NGF Consulting recommends that NPBCC management continually evaluate its
staffing needs and increase or decrease the number of employees on duty at any
one time to maintain the highest level of customer service, without losing sight of
the financial goals of the operation.
Under the direction of the golf professional, the full time golf operation staff
consists of two assistant golf professionals (one position is currently vacant) and a
full time attendant.
Hourly golf operation employees perform the following job tasks: cashiers, cart/
bag room attendants, driving range attendants, starters and rangers. The number
of hourly employees and the hours worked by each employee vary at different
times of the year. Currently there are 16 employees who perform these tasks listed
in the Village's 2001-2002 budget. According to John Scott, hourly employees are
trained to perform a variety of tasks and frequently rotate duties and responsibili-
ties. Assuming that employees are properly trained and supervised, multi -tasking
enables management to reduce the number of employees on the payroll and
provides flexibility to the operation. For example, starters and rangers stage the
golf carts at the beginning of the day and return them to the storage area at the
end of the day.
Under the direction of the superintendent, the maintenance operation employs 13
full-time and one part-time worker. These employees include the superintendent, a
golf course supervisor, a vehicle mechanic, 10 country club technicians and one
part-time country club technician. The following table identifies the current
staffing levels and salaries/wage ranges for each position.
North Pa/in Beach Country C/ub O,verationa/Ana/ys/s 7
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Staffing Levels and Salaries/Wage Ranges
Golf Shop/Carts/Driving Range
Employees
SalariesMages*
Head Golf Professional (FT)
1
$36,519
Assistant Golf Professional (FT)
1
$22,375
Assistant Golf Professional (FT)
1
$24,781
Country Club Attendant (FT)
1
$22,366
Country Club Attendant (PT)
16
$8.26-$8.60 per hour
Subtotal
18
MAINTENANCE
Superintendent (FT)
1
$589825
Golf Course Supervisor (FT)
1
$40,154
Vehicle Mechanic (FT)
1
$40,152
Golf Course Technician I (FT)
10
$21,799 -$367676
Golf Course Technician I (PT)
1
$15,305
Subtotal
14
TOTAL EMPLOYEES
32
Full Time
17
Part Time Seasonal
17
*Salaries and wages do not include benefits
The staffing levels are well within an acceptable range for a facility that provides
the level of service and quality that the NPBCC presents to its customers. It appears
that the number of full-time employees has been kept to a minimum and part-time
or seasonal employees are used only during periods when activity levels warrant
their services. Wages and salaries appear to be reasonable and competitive with
other Palm Beach County courses.
Marketing
In the past, the NPBCC's marketing strategy consisted of advertising in local and
regional media. Our review revealed that only modest effort is being made to
promote and advertise the facility using various print media sources. A small
budget recently increased to $25,000 provides the resources to accomplish these
tasks. Given the fact that the course has played an average of 69,000 rounds for the
past three years, a more aggressive marketing effort may not be needed or justifi-
able in the eyes of some of the village's residents.
As a result of the competition for players by many of the courses in Palm Beach
County, particularly the newer facilities such as the Abacoa Golf Course that
opened in recent years, NGF Consulting believes the NPBCC should use a more
proactive method of attracting golf outings, particularly on weekdays during the
off season. Many courses located in vacation and resort areas are becoming more
North Pa/n/ Beach Counb�y C/ub Operationa/.4na/psis 8
C0AWLTING
aggressive in their efforts to attract outings and tournaments. Rather than waiting
for potential clients to contact the course, many courses find it is more productive
if a representative of the facility visits potential clients and provides them with a
personalized description of the facility and services it can provide. A tour of the
facility is often arranged along with a list of references from groups that have held
events at the course.
After an outing has been scheduled, the course representative is responsible for
seeing to it that all the services the client contracted for are delivered. When the
outing takes place, the representative is at the course to greet the group, introduce
the staff and make certain that any last-minute details are addressed. The represen-
tative literally holds the client's hand throughout the event. After the event, the
representative obtains a written evaluation from the client.
Providing this level of service for a golf outing could very well lead to the client
booking other non -golfing events such as holiday parties or family affairs. Satisfied
participants are likely to tell friends and family about their experience at the
NPBCC, which should result in a ripple effect on future business.
It would be appropriate to compensate a marketing person based on a percentage
of the total revenue derived from an outing, including the sale of gift certificates,
pro shop merchandise, food and beverage sales, player clinics and tournament
services. This form of compensation would be an incentive to sell a complete
package of services.
More and more courses like the NPBCC are offering "special" golf packages to
stimulate play during slow periods. The package may include green fees, cart fees,
range fees, discounted merchandise as well as food and beverages. Price -sensitive
customers frequently look for "specials" in golf as well as other areas of consumer
spending and they are willing to travel long distances to take advantage of these
opportunities. Advertising these "specials" beyond the immediate golf market may
attract new customers not only to the course but also to other area attractions such
as restaurants and shopping. NGF Consulting recommends that NPBCC manage-
ment use its success with the summer golf specials to make an even more aggres-
sive marketing effort to increase play by attracting price -sensitive players during
periods when play is slow.
NGF Consulting's reason for advocating a more aggressive marketing program is
that the number of golfers in the United States has remained fairly flat for the past
several years despite the fact that hundreds of new courses have opened.
Norah Pa/m Beach Country C/ub Operational .411alysis 9
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Golfer participation has remained at approximately 12 percent of the nation's
population since 1995. The number of golfers ranged between 24 and 26 million
during this period. Dividing the nation's golfers into player segments reveals that
avid golfers, those who play 25 or more rounds a year, represented only 5.5 to 6
million persons. Moderate golfers, those who play 8 to 24 rounds a year, ranged in
number from 6 to 7.5 million persons, whereas occasional golfers, those who play 1
to 7 rounds a year, ranged in number from 10 to 11.5 million. The number of
junior golfers ranged from 1.7 to 2.1 million.
Since 1995 more than 300 courses a year have opened. In 2000, the equivalent of
398.5 new 18 -hole courses opened and another 707 courses were under construc-
tion by year's end. Of those under construction, 535 were scheduled to open in
2001. Public access courses have dominated the new openings. In 2000, 87 percent
of the new courses were daily fee or municipal facilities and a very high percentage
of the courses that are in planning are public access facilities.
It is NGF Consulting's recommendation that NPBCC management develop a
marketing strategy to ensure that a balance between the number of green fee
players and members is maintained and that maximum utilization of the facility is
achieved. The fact that an unused tee time is lost forever and cannot be reclaimed
should not be over looked. Every effort should be made to "bring" golfers to the
NPBCC rather than waiting for them to arrive.
Activity Levels
The NPBCC has averaged slightly more than 69,000 rounds of golf for the past
three fiscal years. NGF Consulting was given the following rounds data.
North Pa/m Beach Country C/ub Operational Analysis 19
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History of Rounds Activity
Fiscal Year 1999/00
% of
Cart Rental -Full Oct Nov Dec Jan Feb Mar April May June July Aug Sept Total Total
Res/Mbr 18 Holes
420
980
822
944
1092
1136
840
432
322
320
248
232
7788
11.1%
Res/Mbr 9 Holes
256
344
290
278
326
350
306
280
304
222
238
248
3442
4.9%
Res/Mbr 1/2 18 Holes
1352
2505
2508
2760
3087
3237
2551
1960
1630
1442
1408
1265 25705
36.7%
Res/Mbr 1/2 9 Holes
390
393
444
580
653
585
540
483
500
518
513
470
6069
8.7%
Cart Rental -1/2
Non Res/Mbr 18 Holes
0
96
54
40
40
76
34
0
0
0
0
0
340
0.5%
Non Res/Mbr 9 Holes
28
22
14
22
0
10
0
0
0
0
0
0
96
0.1%
Non Res/Mbr 1/2 18 Holes
0
253
290
271
244
241
166
0
0
0
0
0
1465
2.1%
Non Res/Mbr 1/2 9 Holes
0
55
84
90
106
101
55
30
14
0
0
0
535
0.8%
Walking Fee 18 Hole
347
695
720
728
779
770
572
412
298
206
227
223
5977
8.5%
Walking Fee 9 Hole
322
409
437
510
462
468
364
350
262
232
220
220
4256
6.1%
Resident Jr.18 Holes
10
22
20
20
24
26
42
26
39
74
37
43
383
0.5%
Resident Jr. 9 Holes
57
48
62
66
67
65
53
64
103
87
91
79
842
1.2%
Non -Resident Jr.18 Holes
0
2
18
6
6
4
11
1
5
0
2
5
60
0.1%
Non -Resident Jr. 9 Holes
0
1
7
8
5
5
5
4
2
0
0
0
37
0.1%
Charity Card
636
0
0
0
0
0
2
243
307
335
277
288
2088
3.0%
Summer Special
692
0
0
0
0
0
0
1900
1623
1963
1862
1575
9615
13.7%
Summer Special
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Leagues
35
0
0
1
1
0
172
248
197
93
172
108
1027
1.5%
Monthly Tournaments
0
120
0
0
0
0
0
60
58
103
0
0
341
0.5%
Total Rounds
4545
5945
5770
6324
6892
7074
5713
6493
5664
5595
5295
4756
70066
100.0%
North Palm Beach Country Club Operatioaa/ Analysis if
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CONSULTING
Fiscal Year 2000/01
% of
Cart Rental -Full Oct Nov Dec Jan Feb Mar April May June July Aug Sept Total Total
Res/Mbr 18 Holes
284
616
664
710
780
716
798
264
250
186
164
144
5576
8.4%
Res/Mbr 9 Holes
162
148
226
290
274
276
286
230
162
84
86
64
2288
3.5%
Non Res/Mbr 18 Holes
0
26
22
20
14
36
0
0
0
0
0
0
118
0.2%
Non Res/Mbr 9 Holes
0
0
0
0
0
0
0
0
0
0
0
0
0
0.0%
Cart Rental -1/2
385
651
654
830
893
774
647
464
287
273
216
236
Res/Mbr 1/2 18 Holes 1427
2859
2663
3097
3351
3367
3188
1859
1525
1354
1319
1119 27128
41.1%
Res/Mbr 1/2 9 Holes 469
489
393
487
548
558
531
420
391
319
317
264 5186
7.9%
Non Res/Mbr 1/2 18 Holes 1
274
385
267
292
328
245
0
0
0
0
1 1793
2.7%
Non Res/Mbr 1/2 9 Holes 2
57
64
103
88
79
84
0
0
0
0
0 477
0.7%
Walking Fee 18 Hole
385
651
654
830
893
774
647
464
287
273
216
236
6310
9.6%
Walking Fee 9 Hole .:;:.
287
312
357
379
422
358
339
260
232
183
165
206
3500
5.3%
Resident Jr.18 Holes
21
18
20
24
5
13
59
12
22
21
46
20
281
0.4%
Resident Jr. 9 Holes
59
27
44
64
32
48
102
53
42
48
60
36
615
0.9%
Non -Resident Jr.18 Holes
4
4
12
4
6
4
10
4
0
8
3
0
59
0.1%
Non -Resident Jr. 9 Holes
2
5
0
11
3
1
13
2
0
3
0
0
40
0.1%
Charity Card
214
1
0
0
0 0
1
258
328
296
345
262
1705
2.6%
Summer Special ($26)
1414
0
0
0
0 :1:0
0
1822
1597
1331
1339
864
8367
12.7%
Summer Special ($17)
0
0
0
0
0 0
0
0
49
580
810
332
1771
2.7%
Leagues
15
0
0
0
0 0
126
143
111
64
102
55
616
0.9%
Monthly Tournaments
0
0
0
0
0 89
0
102
0
0
0
0
191
0.3%
Total Rounds
4746
5487
5504
6286
6708 6647
6429
5893
4996
4750
4972
3603
66021 100.0%
North Pa/in Beach Country C/ub OPerationa/ Analysis 12
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COli�i►LTfNG
Fiscal Year 2001/02
% of
Cart Rental -Full Oct Nov Dec Jan Feb Mar April May June July Aug Sept Total Total
Res/Mbr 18 Holes
238
446
522
494
464
528
366
370
110
41 148
152
3879
5.4%
Res/Mbr 9 Holes
84
182
124
100
158
42
48
28
18
8 30
34
856
1.2%
Non Res18 Holes
0
36
6
0
0
0
4
0
0
0 0
0
46
0.1%
Non Res 9 Holes
0
0
0
0
0
0
0
0
0
0 0
0
0
0.0%
Cart Rental -1/2
383
598
622
768
682
781
631
427
283
265
292
283
Res/Mbr 18 Holes
1672
2553
2868
3672
3424
4582
3940
1935 1348
1365
1580
1370 30309
42.0%
Res/Mbr 9 Holes -
280
449
449
736
532
445
507
540 378
366
396
423 5501
7.6%
Non Res 18 Holes
0
273
378
413
315
378
188
0 1
0
0
0 1946
2.7%
Non Res 9 Holes
0
47
125
129
41
46
32
0 0
0
0
0 420
0.6%
Walking 18 Hole
383
598
622
768
682
781
631
427
283
265
292
283
6015
8.3%
Walking 9 Hole
226
216
260
306
259
257
173
191
178
167
141
175
2549
3.5%
Resident Junior 18 Holes
27
18
44
11
8
15
25
18
22
36
50
17
291
0.4%
Resident Junior 9 Holes
18
23
31
45
122
292
329
59
84
76
122
87
1288
1.8%
Non -Res Junior 18 Holes
3
3
12
3
2
9
10
0
2
10
1
3
58
0.1%
Non -Res Junior 9Holes
7
4
6
7
6
14
18
9
3
1
0
4
79
0.1%
Charity Card
368
331
0
0
0
0
0
384
393
439
508
446
2869
4.0%
Summer Special ($28)
1675
0
0
0
0
0
0
1541
1150
1429
1600
1154
8549
11.9%
Summer Special ($18)
0
0
0
0
0
0
0
681
512
736
905
618
4452
6.2%
Leagues 9 Holes
.43
0
0
0
0
0
451
525
488
439
483
263
2692
3.7%
Tournaments
0
140
0
0
7
78
0
57
0
40
0
0
322
0.4%
Total Rounds 5024 5319 5447 6684 6020 7467 6722 6765 4970 5418 6256 5029 71121 100.0%
*Estimates based on the average of the two previous years
Course Utilization
In the 1988 National Golf Foundation report to the Village, the author Joseph N.
Noll used the following formula to determine the rounds capacity of the NPBCC:
Total Rounds (18 -hole equivalent)
Available in winter (December 1 — April 15)
248 rounds per day x 131 days = 32,488 rounds x 90% weather factor = 29,239 rounds
Available in summer (April 16 — November 30)
286 rounds per day x 233 days = 66,638 rounds x 90% weather factor = 59,974 rounds
Total 89,213 rounds
North Palm Beach County Club Operational Aoa/ysis >3
Wlf
assess m
CONSULTING
Rounds Summary
% of
Fiscal Year Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Capacity
1999/00
4545
5945
5770
6324
6892
7074
5713
6493
5664
5595
5295
4756
70,066
78.5
2000/01
4746
5487
5504
6286
6708
6647
6429
5893
4996
4750
4972
3603
66,021
74.0
2001/02
5024
5319
5447
6684
6020
7467
6722
6765
4970
5418
6256
5029
71,121
79.7
3 -yr Ave
4772
5584
5574
6431
6540
7063
6288
6384
5210
5254
5508
4463
69,069
77.4
An analysis of the summary of rounds played during the past three fiscal years
indicates that play during many of the months with the longest periods of daylight
is well below the months with the least amount of daylight. Obviously, golf activity
in Florida during the summer months is affected by the weather and the northern
migration of the snowbirds. However, the fact that courses are underutilized
during this period should be not looked upon as an irresolvable fact but rather as
an opportunity to be creative in marketing the course to outings, tournaments and
other special events. The NPBCC already enjoys success from the introduction of
its summer specials, which proves that additional possibilities that can bring addi-
tional players to the course may exist.
It is interesting to note that in the past few years several of the private clubs in the
area have introduced memberships (May to October) as a means of stimulating
activity during the summer.
The NPBCC could achieve greater financial success in the future if utilization is
increased during the summer season months. Weather permitting, increasing
activity during these months could result in significantly more revenue.
NGF Consulting's analysis of course activity for the past three fiscal years revealed
that rounds activity has been unpredictable. The following table summarizes
recent golf activity trends.
Summary of Golf Activity Trends
Noah Pa/m Beach County C/ub gperationa/ Analysis 14
Percentage of
Increase (Decrease)
Increase (Decrease)
Total
in Rounds from
in Rounds from
Fiscal Years
Rounds
Previous Year
Previous Year
1999/2000
70,066
NA
NA
2000/2001
66,021
(4,045)
(5.7%)
2001/2002
711121
5,100
7.7%
Noah Pa/m Beach County C/ub gperationa/ Analysis 14
Alf.111C
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C0MVUING
The inconsistency in rounds that has occurred for the past three fiscal years can-
not be overlooked. This trend must be reversed or it will likely mean that annual
membership dues as well as other revenues will have to be increased in order to
meet budget obligations. When revenues are inadequate to meet operating and
debt service expenses, budgets are frequently cut, and the quality of the course
begins to deteriorate. This results in a loss of customers and a further loss of
revenues. The course operation usually goes into a downward spiral, until it hits
bottom. At that point, the municipality either tries to lease the course to a private
operator or faces a costly restoration to bring the course back to a condition that is
competitive with other area courses.
Revenue generation comes from several profit centers. Daily green fees and annual
memberships, cart rentals, driving range proceeds and pro shop sales represent
the typical revenues for most municipal courses. Green fees and memberships
represent the majority of revenue collected and are dependent on both pricing
and volume of rounds played.
It is the consultants' opinion that the number of rounds being played at the
NPBCC, particularly on weekdays and during the summer season, must be in-
creased. The data shown in the previous tables indicated there is a considerable
amount of unused capacity during these periods.
Financial Overview
The Village of North Palm Beach provided NGF Consulting with historical data on
the financial performance of the North Palm Beach Country Club. This data was
used to analyze the financial performance of the NPBCC for the past several years.
The following table illustrates the revenues and expenses for the past five fiscal
years.
North Palm Beach Couo&y Club Operationa/.4na/ysis >5
CONSULTING
Fiscal Year
1997/98
1998/99
1999/00
2000/01
2001/02
REVENUES
Golf Course
936,787
944,930
919,131
1,044,975
1,216,203
Memberships
667,189
699,240
690,182
693,892
701,500
Driving Range
138,299
129,970
127,773
148,904
170,807
Golf Shop Merchandise & Etc.
92,554
85,961
75,591
98,130
100,176
Tennis
81,127
87,281
95,859
104,594
85,166
Pool
100,100
123,701
126,441
133,605
116,601
Food & Beverage
19,500
16,500
241,614
35,298
72,526
Misc. Revenues
637,992
91,965
876,555
81,097
33,124
Total
29673,548
25179,548
3,153,146
2,340,495
21496,103
EXPENSES
Golf Course Maintenance
769,430
788,848
801,193
906,740
804,411
Golf Shop/Carts/Range
221,270
224,798
467,284
590,347
507,900
Golf Carts
146,384
143,227
included above
included above
included above
Driving Range
70,754
94,834
included above
included above
included above
Tennis
170,949
284,835
163,454
99,972
114,812
Pool
289,726
152,589
151,544
167,446
180,649
Food & Beverage
18,066
15,046
228,888
39,766
36,045
Administration
210,641
207,503
227,038
226,976
260,201
Clubhouse/Grounds
119,656
130,188
929,543
341,931
171,227
Insurance
13,464
11,727
25,000
30,240
35,087
Debt Service
196,424
169,390
224,976
342,526
161,548
Reserves
36,726
50,929
69,732
87,744
119,280
TOTAL
29263,490
2,273,914
39288,652
2,833,688
2,391,116
REVENUES OVER (UNDER)
EXPENSES
410,058
(94,366)
(135,506)
(493,193)
104,987
Financial Overview Conclusions and Recommendations
NGF Consulting's analysis of the financial performance of the North Palm Beach
Country Club resulted in the following conclusions and recommendations.
• The data the consultants were given revealed that, based on actual revenues
and expenses, the NPBCC did not met all its financial obligations between
1997/98 and 2000/01. A shortfall occurred in 1998/99 and increased
significantly each year thereafter. However, this trend was reversed in 2001/
02.
• Shortfalls in revenues are covered from reserves in the enterprise fund that
have been accumulated over the years.
• Golf course revenues, which include green fees, cart rentals, locker rentals,
handicap fees, walking fees and tee time fees, have grown steadily over the
past five years, primarily as a result of increases in cart fee revenue. The
remaining revenues, with the exception of the driving range, have re-
mained fairly flat during this period.
North Palin Beach Caua&y Clab Operational Analysis >6
A# -^=C
s I== :
COMMUING
• Revenue from memberships has remained almost level, with only a slight
upturn in 2001/02.
• Revenue from the sales of pro shop merchandise has not changed signifi-
cantly for the past five years.
• Revenue from the driving range in 2001/02 is well above what was pro-
jected.
• Pool and Tennis expenses are well beyond the revenue these facilities
generate.
• Debt service expenses increased steadily between 1997/98 and 2000/01
and decreased in 2001/02. Payments to the enterprise fund (reserves) also
increased each year.
It should be noted that proceeds from loans are included in the miscella-
neous revenue category, thus increasing the amount of total revenue for
the years in which the loans were made (1997/98 and 1999/00).
• Operating expenses remained fairly flat during the five-year period. Some
year-to-year increases occurred when capital purchases of equipment or
capital improvements were made.
While it may be prudent to make capital purchases as part of the operating budget,
it is recommended that a special reserve fund be established so that equipment
purchases can be made when they are needed rather than when the budget allows.
This will assure that equipment that needs to be replaced will be done in a timely
manner rather than spending time and money on maintaining items that are well
beyond their value.
Pool and Tennis revenues and expenses must be balanced so that the golf opera-
tion does not bear the burden of covering shortfalls in those area as well as other
overhead expenses. If additional revenue is not generated from the pool, tennis
and golf operations, the golf operation is likely to be the area that will experience
the greatest budget cuts in the future.
If cuts are made, they are likely to occur in that small portion of a golf budget that
can be considered as discretionary spending — that area of the budget that has the
greatest impact on the quality of the golf facility and the services it provides its
customers. When and if this happens, the golf course usually begins to deteriorate
and customers begin looking for places to play that give them better value and
service.
North Pa/m Beach County C/ub O,verationa/Analysis >7
SWIM
CCWAt/tTING
Driving Range
The lighted practice range has 25 hitting stations that utilize both mats with artifi-
cial grass surfaces and a large natural turf area. On the right side of the range
there is a sand bunker with an adjacent chipping green. The range is located some
distance from the clubhouse; however, there is ample parking conveniently located
to the facility. Two hard surface tennis courts are located behind the tee area and
adjacent to the range building.
Range customers purchase tokens from an attendant for a ball dispensing machine
located in the range building. The building has restrooms with outside entrances.
A soda machine is located in the building for customers who wish to purchase
refreshments without having to go to the clubhouse. There is a small display case
that has a few items sold from the pro shop. Balls are washed by a machine located
just outside the entrance that leads to the tee area.
The range appears to be functional and has many of the features of modern
ranges. It has target greens and fairway features seen at many newer golf course
ranges. However, the distance to the respective target greens was difficult to deter-
mine from the tee area. The only indication of the distances is a note posted on
the door of the range building.
The width of the tee area is limited in size and therefore can accommodate rela-
tively few users. Management indicated that consideration is being given to remov-
ing the tennis courts to make room to relocate the bunker and chipping green,
thus allowing the range to be extended to the area presently occupied by the
bunker and chipping green. The limited size of the tee area no doubt has a nega-
tive impact on range revenue, particularly during the height of the golf season.
NGF Consulting notes that by adding a second level, the number of hitting stations
can be doubled. Increasing the size of teeing areas by adding second levels has
become more common in the United States after it was proven to be financially
successful in Asian and European countries.
Adding a second level not only provides more hitting space, it also creates pro-
tected areas on the ground level that can be used during inclement weather. Some
ranges add radiant heaters to several of the covered tees so they can be used
during periods when the temperature drops to uncomfortable levels.
The most apparent means of increasing range revenue is to extend the hours of
operation. According to Section VII a. of the North Palm Beach Country Club Rules
and Regulations Book, "The posted hours of operation will vary with seasonal
changes by the number of daylight hours available." NGF Consulting questions
why the hours of operation are dictated by the number of daylight hours when the
Village went to great expense to light the range.
Norah Pa//// Beach CoN&y C/ub Operational Ana/rsis 18
ANIC
Z 3t ItimZ .4D
Ct RMLT1NG
On a recent visit to the range, the consultants found the posted hours of operation
were 8:00 A.M. to 8:30 P.M., which means the range opens one hour after the first
starting time and closes shortly after the lights are turned on. It appears the only
reason the range is lighted is to facilitate the gathering of balls. Management
indicated that the current schedule was adopted as a result of minimal use during
the early hours of the morning and the fact that a former Village council person
lived at the south end of the range and he objected to the lights being on at night.
Management should take into consideration that it has been reported that the
lighted driving range on Northlake Boulevard will be closed in the near future to
accommodate other uses for the land it occupies. This means that the NPBCC
range will be "the only game in town," and the Village should seize this opportu-
nity to upgrade its facility so that revenue will be increased.
The net effect of increasing the number of hitting stations and increasing the
hours of operation would be that the NPBCC driving range would provide more
hours of enjoyment to the residents of the Village as well as additional revenue that
could be used to make improvements to the golf operation.
It is the consultants' opinion that the current method of purchasing range balls
could be made more profitable for both the NPBCC and the customer. We ques-
tion the need to staff the range building with an attendant to sell tokens to custom-
ers. It is our recommendation that a ball dispenser equipped to accept cash or a
debit card be used in place of the current dispenser.
Several varieties of ball dispensers are on the market. Some units are designed so
that the used balls are put in at one end and the clean balls come out the other
end. This type of unit obviates the need to wash the balls using the current method
and equipment, which is slow and labor intensive. With the new units, the balls are
taken directly from the picking machine and placed into the dispenser.
Payment for range balls would also be more convenient for the customers. Many
dispensers are equipped with units that accept cash, tokens and debit cards. How-
ever, more and more ranges are using a combination of cash or debit card as the
preferred method of payment. Using the debit card option has a number of advan-
tages. First it offers the most secure method of payment. Customers purchase a
dollar amount, which is placed on the debit card in the pro shop. Many machines
are designed to dispense two or three different quantities of balls. Each size is
priced accordingly. Each time the card is used the amount of the purchase is
deducted from the card. When the last purchase is made and the card runs out of
value and the ball dispenser keeps the card, which then can be reused.
North Pa/in Beach County C/ub O,oerationa/Analysis >9
mac
a= 16== 43
coAsucTING
The debt card is often used as a marketing tool. For example, $50 of value can be
sold for $40 or $25 can be sold for $20. Many ball dispensers are also equipped to
accept cash, which eliminates the need for the occasional customer to go to the
pro shop to purchase a debit card. Some range operations have change machines
located conveniently near the dispenser so that persons with large bills can change
them into smaller denominations.
NGF Consulting believes that adding more hitting stations, extending the hours of
operation and using the latest technology to purchase range balls can result in
significantly more revenue and reduce the range's operating costs. We strongly
recommend that the Village consider upgrading the range into a more productive
profit center.
Golf Course Operations Manual and Golf Course Employee Personnel Policies
David Talley and John Scott provided the consultants with documents, which are a
collection of various memos and instructions pertaining to the operation of the
NPBCC. Among these document is the 2001-2002 Rules and Regulations Book which
is distributed to the membership. According to both men, the NPBCC does not
have a golf course operations manual or employee personnel policies book for
part-time or seasonal employees. Full-time employees are under the guidance of
the Village's personnel policies.
A golf operations manual can be invaluable to management and staff. For staff, it
removes any doubt on how sensitive situations should be handled plus answers
questions regarding policies or procedures. Management can use the manual for
the orientation of new employees rather than trying to verbally explain how things
should be done. Following is a list of typical categories found in a golf course
operations manual. However, it must be emphasized that a golf course operations
manual is a customized document that deals with a specific golf facility operation.
A golf operations manual's table of contents should include but not be limited to
the following:
• General Rules and Regulations
• Hours of Operation/ Observed Holidays
• Junior and Senior Play
• School Golf Play
0 League Play
0 9 -hole Play
• Refunds/Rain Checks/Receipts
Norah Pa/in Beach County C/ab Operational Ana/ys/s 20
r za crzs ,�
CCIYSULT1NG
• Complimentary Golf Play
• Current Golf Fee Schedule
• Check-in Time for Advance Reservations
• Advance Reservation Policy
• Starting Time Intervals
• Golf Tournaments/ Special Use Events
• Advance Reservations for Golf Tournaments
• Fees and Charges for Shot Gun and All Day Tournaments
• Organized Golf Club Play
• Charity Golf Tournaments
• Power and Pull Carts
• Single -Rider Power Cart Rentals
• Access to Golfers with Disabilities &the Americans with Disabilities Act
Accessibility Guidelines
• Maintenance Policies and Procedures —Course Closures and Frost Delays
• Golf Course Staff Responsibilities
• Safety/Accident Reporting/ Liability
• Lost and Found
Telephone and Customer Service
• Auditing and Gash Handling Procedures
Pace of Play Policy
• Dress Code for Employees and Customers
• Policy on Coolers and Ice Chests
• Appendix Materials —Report forms and various other instruction materials
We strongly recommend that NPBCC's management develop a golf operations
manual and encourage employees to keep abreast of changes in policy and proce-
dures that may take place from time to time.
Norah Pa/m Beach Couuby Club Operational Analysis 21
AMUC
QW1=:
ca�sucrrnr�
Employee Performance Evaluation
Performance criteria and evaluation forms should also be included in the opera-
tions manual, along with a description of the process that the Village of North
Palm Beach uses to periodically evaluate an employee's work. NGF Consulting
strongly recommends that management develop a procedure for evaluating the
performance of all NPBCC seasonal/part-time employees. This evaluation process
will provide management with a record of each employee's performance in the
event it is needed in the future for legal or insurance purposes. A record of an
employee's performance will also provide management with documentation
should an employee be dismissed and contest the dismissal.
The operations handbook should also include descriptions for all golf course job
titles. Job descriptions should be comprehensive documents that contain all the
essential information about each position. The descriptions should be updated
periodically so that they accurately reflect the current duties and responsibilities
for each position. A copy of the job description should be given to every seasonal/
part-time employee at the beginning of their employment each year, regardless of
whether or not they are new or returning employees. Supervisors should discuss
the duties and responsibilities of the job with each employee and make certain that
he/she understands what is expected. If a job requires the employee to receive
specific training, the date and location of the training should be documented for
future reference. The comprehensiveness and timeliness of NPBCC's job descrip-
tions should facilitate the implementation of the evaluation process.
Point -of -Sales System
Golf fees, merchandise sales and cart rentals (cash and non-cash) are rung up on a
computerized cash register located in the pro shop area. The point -of -sales system
(POS) is a system that was initially acquired several years ago and has been up-
graded to its present condition. The software program is a DOS-based system and
the computer appears to be several generations old. Should this system fail for any
reason there is no backup. Neither the manager nor the golf professional is net-
worked to the system; consequently, neither person is able to access the system
from his office. According to John Scott, new inventory items must be entered into
the system from the cashier's counter. This often results in the inventory being
brought up to date well after it has been received and put on display for sale.
In recent years the computerization of golf courses has grown immeasurably. The
technology continually improves and the cost of software and hardware has de-
creased to levels that make the acquisition of new systems affordable to all but the
most modest golf course operations.
Norah Pa/m Beach County Club OperaAefla/ Analysis 22
ALC
nVI=s,8
N)NWtrrNG
The state-of-the-art systems often combine several components. Most systems
contain the following:
• Inventory Controls
• Vendor Tracking
• Discounts & Gift Certificate Tracking
• Integrated POS Hardware Options
• Sales Tax Tracking
• Touch Screen & Programmable Keyboard Options
• Receipt Printing
A recent addition to many systems is the Capture & Display Member Photos com-
ponent. A digital picture of each annual member is taken at the cash register and
stored in a database. Each member is given an ID number. When members come
to the pro shop to register for play, the cashier puts their ID number into the
computer and their picture appears on the cash register's monitor, thus enabling
the cashier to easily verify that the person is a current member. This system elimi-
nates having to produce photo ID cards that are frequently lost, forgotten or
destroyed by a washing machine when left in someone's pocket.
As with the current system, green fee players can pay their fees by cash or credit
card.
All players receive a receipt that shows all transactions, both cash and non-cash.
For example, the member's receipts would show $00.00 where the green fee
amount would be and the green fee player's receipt would show the amount of the
fee. All other purchases such as golf cart rentals or merchandise are also shown on
the receipt. Receipts are then presented to the starter as evidence that the player
has registered with the pro shop and paid all the appropriate fees.
So long as employees operate the POS in the manner recommended by the manu-
facturer, the Village will receive an accurate accounting of all the revenue and
activity being generated at the NPBCC. However, if players are allowed to bypass
the system, then the accuracy of the data the system generates will be compro-
mised and the POS will be subject to abuse.
North Pa//// Beach Country C/ub Operaiiozra/ .41181ysis 23
"rE
rW%ism
MMULTING
Cash Control Procedures
The NPBCC Pro Shop Closing Procedure document goes into great detail on the
procedures used to safeguard cash receipts, and the reporting of same, at the
NPBCC. The current procedures are well documented with instructions used to
report golf course transactions and revenues. The document reflects the effort to
ensure that golf course revenues are accurately accounted for and deposited.
Cash receipts are deposited at least once a day. At the end of the business day the
closing cashier or golf professional prepares reports containing documentation of
the day's transactions. The deposit is made in the manager's office and his staff
verifies the accuracy of the information the next business day.
The NPBCC cash control procedure is a multi -step process that begins with enter-
ing transactions into the cash register using numbered cash register receipts. A
cash register report sheet together with copies of every cash register receipt is
given to the manager's office where each receipt is checked for accuracy and
member charges are entered into their respective accounts. Revenue is subse-
quently deposited and a report sent to the Village Finance office. It is recom-
mended that the Village investigate upgrading the POS so that only the initial
transaction is entered into the pro shop cash register. Once this task is performed
the transaction data can be accessed by the manager's office staff and sent to the
Village's computer using a modem or floppy disk. Not only will this procedure be
more efficient but it will also eliminate errors when transposing data from one
form to another.
Records and Reports
Purchasing a new POS would enable the North Palm Beach Country Club to
produce a variety of comprehensive records and reports that can used to more
closely evaluate the performance of the golf operation. NGF Consulting recom-
mends that management make a concerted effort to learn about all the report
features of the new POS systems that are available. Data on every aspect of the golf
operation is essential in order to be able to establish equitable fees as well as make
other decisions that affect the performance of the golf course operation. It is also
recommended that the superintendent's office acquire some of the new software
that will enable him to track the performance of his crew, monitor more closely
equipment maintenance and track the use of chemicals and fertilizers.
Tee Time Reservations
Golf shop employees take tee time reservations according to NPBCC policies
contained in the NPBCC Rules and Regulations book.
Norah Pa/m Beach Couofry Club Operational Analysis 24
M4r�
xN�a
CORMLTING
Reservations are manually recorded on tee sheet forms. Administering a reserva-
tion system can be very labor-intensive, complicated and costly. It is also likely to be
very frustrating, especially to members who call the course only to find the tele-
phone is busy or that they have been put on hold for several minutes. Also, it is not
uncommon for golfers in the heat of their frustration to question the honesty of
the employees hired to administer this method of taking reservations.
In an attempt to reduce the chance for errors and provide a system that is above
reproach, NGF Consulting recommends that the NPBCC investigate using a com-
puterized reservation system. In recent years, these systems have become very
popular, particularly with municipalities. These systems are capable of accommo-
dating multiple phone lines, thus reducing busy signals. The computer accepts the
calls in the order they are received and handles several calls simultaneously. The
computer remains active 24 hours a day and can accept calls long after the golf
course closes for the day. On those days when the course may be closed, there is no
need to staff the telephones. Some courses elect to have their staffs take reserva-
tions part of the day and let the computer do the work the remaining time.
For a golf operation like the NPBCC, which accepts block time reservations and
outings several months in advance, these records would be maintained electroni-
cally rather than depending on tee sheets that are subject to loss or damage.
Tournaments, outings and group block times could be entered into the computer
well in advance of the day of play.
A computerized system would permit the course to take tee time reservations at a
time that is more convenient than 7 A.M., a time when many people are still
sleeping or are traveling to work.
For green fee players, some systems will accept advance payment by entering a
credit card number. The computer checks the validity of the credit card and
charges the account accordingly. No-shows can be entered into the computer.
When and if they attempt to make another reservation, the computer can reject
them if so instructed. These are but a few of the features of computerized tee time
reservation systems that warrant further investigation. It should be noted that the
computerized tee time reservation system is a component of the point -of -sales
system, using much of the same equipment that would be located in the golf shop.
There would be an additional advantage of having terminals located in the starter's
booth and the manager's office. The starter's terminal would permit the starters as
well as the cashiers to book reservations. Each would know immediately the avail-
ability of tee times without having to communicate with one another by phone or
radio.
Noah Palm Beach County C/ab aperatioea/ Aaa/ysis 25
MAIa`C
sVN=s m
MAWLTING
Some golf operations are concerned that computerized tee time systems are imper-
sonal and that maintaining a personal link with customers is important. We agree
and recommend using the computerized system only to record reservations taken
by staff during the hours the course is open, and using the full capabilities of the
system to answer the phone and take reservations when the course is closed for the
day. Using a computerized reservation system will also facilitate using credit cards
for payment of green fees and guaranteeing payment from no-shows.
Customer Service
The golf staff consists of golf shop employees, starter, rangers and cart/ range
attendants. The size of the staff appears to be adequate to perform all of the tasks
necessary to ensure a smooth running operation. According to John Scott, many of
the employees are retired and it is the consultants' belief that they work at the
course as much for the golf privileges as their wages. Most of the employees are
older men. There are only two women cashiers out of a staff of 16 employees. The
employees on duty at the time of the consultants' visits looked as though they were
performing their duties as they have been instructed. However, there was not a
great deal of enthusiasm for their work displayed by the employees the consultants
met. The employees' demeanor with customers was reserved and somewhat formal
as compared to a spirit that conveys the feeling "we are happy to see you" or "we
are happy you are here."
It has long been recognized in the golf business that the impression first created by
cashiers, starters and rangers stays with the customer throughout the round of
golf. Therefore, it is essential that employees be trained to make customers feel
welcome as well as perform their assigned duties. It should be noted that a recent
customer survey revealed that 83 percent of the 69 respondents were somewhat or
very pleased with the "Friendliness/ Service of Staff' at the NPBCC. While the
ranking is much better than the national average, it was lower than other area
competitive courses, indicating there is still ample room for improvement.
NGF Consulting believes that management should make an aggressive effort to
recruit more women and persons of all ages for golf course positions. All golf
course employees should be required to attend training programs that emphasize
customer service.
Course Marshaling
NPBCC employs rangers to control play on the course. The hours they are on
duty vary with the time of day, the day of the week and the season. The duties of
the rangers listed on a sheet provided by management indicate that rangers are
required to perform a variety of tasks. In addition to maintaining a good pace of
North Pa/in Beach County C/1116 Operational Alla/rsis 25
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play and enforcing NPBCC rules and regulations, rangers are required to pick up
trash off the course as well as assist with golf carts, pick the balls on the driving
range and keep non -players off the course. Rangers may be required to perform
starter tasks at certain times and may also work as a cashier in the pro shop. These
ancillary duties, unless carefully monitored, can reduce the amount of time rang-
ers spend performing their primary responsibility of maintaining a reasonable
pace of play.
The usefulness of ranger services cannot be evaluated solely by the number of
hours they are on the golf course. Rangers must be trained and well supervised.
They must be given policies and procedures that govern a variety of situations they
are likely to encounter. They must also have a clear understanding of the authority
that has been delegated to them. Many golf operations such as the NPBCC depend
upon rangers to control the pace of play and to "police" the course. Others how-
ever, are using a variety of methods to control the pace of play and have done away
with the "police" mage in exchange for a "player assistance" image.
The golf course operations manual should include an expanded section contain-
ing a ranger's duties and responsibilities. The current duties are brief and the tone
is rigid and absolute. Taken literally, the material can convey the impression that
rangers are the "golf course police." NGF Consulting recommends that manage-
ment develop a training program for rangers that includes written materials,
classroom instruction and on-the-job supervision.
Supervision should come from the persons responsible for the management of the
golf course. Their work schedules should correspond with ranger schedules so
they can regularly devote time to riding with each ranger. There should be daily
interaction between management and the ranger staff at the beginning and end of
each person's shift. Rangers should be required to prepare a brief written report
detailing what occurred on their tour. Management should review these reports in
a timely manner to see if trends are developing that may need to be addressed.
It may be necessary to hire a person to supervise the ranger staff. This person
would prepare and oversee work schedules, recruit new employees, train new
employees and occasionally supervise them by accompanying them on their tours.
It is recommended that the ranger duties be amended and amplified. Only 50
percent of the respondents to the customer survey were somewhat or very pleased
with the pace of play at the NPBCC. This category (of the thirteen included in the
survey) received the lowest rating, was below the national average and below the
rating given to competitive courses in the area. Several of the written comments
offered by respondents were also critical of the pace of play and the performance
of the rangers.
North Palm Beach County Club Operational Analysis 27
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Information on various pace -of -play methods can be collected from other courses
and organizations such as the National Golf Foundation. This material should then
be analyzed and refined into a document appropriate for use at the NPBCC. For
example, many courses avoid having their rangers confront slow players by flying
different colored flags from the ranger's cart. A green flag indicates that a group is
maintaining the proper pace of play. An orange flag indicates that a group has
fallen behind and should speed up play. A red flag means that a group is holding
up play and should pick up their balls and go immediately to the next tee.
Maintaining a reasonable pace of play at the NPBCC or at any golf course is not
easy. Many courses can be difficult for less skilled players and often there are areas
where balls can disappear from sight. Consequently, players are prone to look for
errant shots. These interruptions can result in the course backing up and play
slowing down.
Maintaining a well-qualified and adequate number of rangers is essential to the
continued success of the golf course. It is important that customers receive assis-
tance from the rangers as well as see them helping other golfers. This will mitigate
to some degree the negative opinions of the rangers some people expressed and
encourage golfers to be more cooperative in the effort to maintain a reasonable
pace of play.
Pro Shop Merchandise
The NPBCC pro shop maintains a small inventory of soft goods, balls, gloves, hats,
shoes and other golf accessories. The merchandise was neatly displayed and attrac-
tive given the limited size of the pro shop. The shop also carries a few putters,
wedges, and other specialty items. Not unlike many golf courses throughout the
country, the NPBCC stocks mainly items that are considered necessities and some
"hot items" rather than trying to compete with off -course discounters that offer
huge selections of clubs, bags, shoes and other big ticket items.
So long as the Village is responsible for selling the merchandise in the pro shop,
NGF Consulting agrees with the current policy of keeping inventories modest and
prices competitive with other courses in the area. Merchandise should turn over
two to three times per year and old inventory should be discounted so that new
inventory can be purchased. It is far better to sell items at cost or below rather than
have them sitting on a shelf or hanging on a rack.
If the sale of merchandise is included in a new golf professional agreement, then a
more aggressive marketing effort can be put into effect. Expanding the inventory
could result in greater profitability assuming that the pro is willing to take that risk.
North Pa/m Beach County C/uh Operatioua/ Analysis 28
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One deficiency concerning the pro shop merchandise operation is the lack of
inventory storage space. This issue should be addressed if the Village changes the
method used to provide golf professional services.
Player Development Programs
The NPBCC offers two types of player development programs in addition to pri-
vate lessons by the golf professional staff. An instruction program is offered to
juniors ages 7 to 14. This program is conducted four times during the summer
months. Each session is four days in length and consists of daily instruction, on -
course play, lunch and swimming. The fee is $80 per person per session. Children
can improve their skills from session to session.
John Scott, NPBCC's golf professional, and his staff host clinics once a week during
the winter golf season. The instruction program covers etiquette, scoring, rules,
competition, swing fundamentals and on -course instruction. The clinics are one
hour in length and the fee is $15.
Based on the information given to the consultants, it appears that player develop-
ment programs are not a high priority at NPBCC despite the fact that the game of
golf is gaining popularity with both adults and young people.
NGF Consulting recommends that the NPBCC offer a more aggressive series of
instruction programs that make a greater effort to introduce new players of all ages
to the game as well as providing more experienced players with learning opportu-
nities to elevate their skills. There are several reasons for this recommendation:
• Introducing new players to the game can increase equipment and mer-
chandise sales.
• New players mean new memberships, green fee and cart customers.
• New customers can increase driving range revenues.
"Growing your own customers" has become a recent challenge for many golf
operations, particularly those faced with increasing market competition from other
courses. We recommend that the golf professional staff develop a plan to grow
more NPBCC customers of all ages.
North Pa/m Beach County C/ub Operatiooa/ Analysis 29
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Tournaments/Outings/Clubs/Leagues
The NPBCC hosts tournaments and outings that represent only a small portion of
the annual golf activity. In addition, the course plays host to the Men's Golf Asso-
ciation events on Tuesdays, a Women's Golf Association Day on Wednesdays, high
school competitions and several golf leagues. MGA and WGA members must also
be annual members of the NPBCC to be eligible for their events.
These activities can be both a benefit and a detriment to a successful golf opera-
tion. Tournaments and outings provide frequent players with opportunities to
participate in competitive events and outside tournaments can bring new custom-
ers to a golf facility. But these activities can also discourage clientele if they "take
over a facility." The same is true for clubs and leagues, as can be attested to by
some municipal courses around the country.
Persons willing to pay premium fees can be prevented from playing because a
special event has been scheduled. Care must be taken when scheduling these
events that they do not prevent use of the course by other golfers.
A review of the NPBCC Rules and Regulations Book reveals only brief references
to scheduling tournaments and other special event use of the NPBCC. NGF Con-
sulting recommends that management develop a more comprehensive set of
written policies and procedures that will include but not be limited to the follow-
ing:
• What days of the week and seasons of the year is the course available for
these activities?
• How many events can be booked each day, week or month?
• What are the minimum and maximum numbers of players that will be
accommodated in each event?
• Will the event result in the course being closed to daily fee play?
• Will all participants be required to use carts?
• What are the fees for each of the services provided by the golf staff? For
example, long drive contest, closest to the pin contest, scoring services,
range balls, etc.
• How far in advance will reservations for these events be accepted?
• How will cancellations be handled?
• What is the amount of deposit required for an event?
North Pa/m Beach Country Clob Operationa/Analysis 30
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• What are the policies regarding food and beverages?
• What are the policies regarding the purchase of pro shop gift certificates?
• When will full payment be due?
• What will the fees be?
NGF Consulting considers the activity generated by tournaments, outings and
leagues essential to the financial performance of the NPBGC. Every effort should
continue to be made to balance the use of the golf facility by these events as well as
by daily fee players.
Controlling Complementary Play
Complementary play by employees and guests is an added benefit of working at a
golf course, being a member of professional golf associations such as the PGA,
LPGA, GCSAA or any other persons that are extended playing privileges. The
problem municipalities face with complementary play is that these individuals play
at the expense of the community's taxpayers. To avoid abuse of these privileges,
complementary play must be monitored and controlled. The following are sugges-
tions to control complementary play:
• Require supervisors to be responsible for actions of staff; this will help in
enforcement of protocol.
• Allow employees to play on a space -available basis after a specified time of
the day. The golf shop should not allow complementary play if it displaces
customer play.
• If employees are allowed to play during the peak hours of the day, require
them to pay the normal cart fee.
• Monitoring employee golf could include distributing golf privilege cards
with employees' paychecks based on number of hours worked. For example
an employee may receive one round of golf for every ten hours worked. To
utilize these cards, employees must schedule an advanced tee time thru
management and have the manager sign the card. When the player plays
his specified round, he presents the card to the golf shop attendant as
payment for the round.
• All persons who have complementary playing privileges should be required
to sign a complementary play log book that includes the date and time they
played their round. Management should constantly monitor the log book
and it will serve as a history of complementary rounds.
North Palm Beach CounPy Club Operational kia/ysis 31
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• Persons receiving professional courtesies should schedule a tee time in
advance through the management staff. When they make a tee time, note
name, course for which they work and their position in the log book. When
they arrive at the course, they should be required to show their professional
membership card and pay the normal cart fee. Privileges should be closely
monitored and limited.
Locker Room and Bag Storage Services
These services, which are typically provided at private country clubs, were pro-
jected to generate some $16,000 in revenue for FY2001/2002. A total of $12,564
has been realized through September 30, 2002. There are no figures that indicate
the cost of providing these services. While these services are welcomed by the
membership, care should be taken that the cost of providing these services does
not exceed their revenue potential. The consultants recommend management
keep a close eye on the cost of providing these services and make fee adjustments
when necessary.
North Pa/in Beach Country C/ub O,verationa/Analysis 32