Improved financial performance at the city's publicly owned, 27-hole golf complex is giving Visalia leaders confidence to look forward at major improvements and renovations over the coming years.
A capital-improvement program reviewed last week by the Visalia City Council calls for spending more than $2 million by 2010 on the Valley Oaks Golf Course near Highways 99 and 198.
The array of improvements includes resurfacing and restriping the parking lot and redrilling two irrigation wells during the coming year.
Between 2005 and 2010, other projects could include constructing bunkers and replacing or upgrading irrigation systems on the Valley and Oaks courses -- two of the three nine-hole courses on the property.
A remodel of the restrooms, a new cart-storage building, a patio cover on the clubhouse, renovation of the greens on the Valley and Oaks courses and installation of lights for the driving range also are on the long-range improvement plan.
City Council members offered their support for only the first two years of the improvement plan -- projects amounting to about $185,000.
Of critical importance is redrilling a pair of wells that are used primarily to irrigate 18 of the 27 holes.
Tom Terra, the course's general manager, said nearby property owners have told of their wells going dry, "and their wells are deeper than ours."
"Over the past few years, the water table has dropped to the point where this project is a high priority," Terra and Airport Manager Mario Cifuentez said in a report to the council.
The water level in the wells is believed to be less than 10 feet above the useful well depth.
Redrilling the wells is expected to cost about $60,000.
Resurfacing the parking lot, another project set for this budget year, will cost about $25,000.
Terra works for CourseCo, a management company hired by the city to run the golf course.
And because the golf course is on property owned by the Visalia Municipal Airport, overseeing the CourseCo contract is among Cifuentez's responsibilities.
Improvements costs would be covered by a surcharge that golfers pay for each round played at the course.
The Capital Improvement Surcharge, currently set at $2.50 per round, not only helps pay for upgrades at the course, it also goes to repaying advances made to the operation from the city's treasury.
While taking a break in the course clubhouse Friday afternoon, Terra said the surcharge provides more than $150,000 a year for capital and maintenance.
"Golf courses are big, capital-investment-hungry entities," Terra said. "Certain projects on golf courses, like renovating the greens or replacing the irrigation system, are very capital-intensive."
The two oldest courses, Valley and Oaks, are each more than 30 years old, Terra said.
The Lakes course is about 6 years old.
"It's hard to save up for them, but it's like when the roof caves in and you have to replace it -- all of a sudden it seems like it was a good idea to save up," he added.
Terra said that before CourseCo took over the management about four years ago, Valley Oaks was losing between $250,000 and $400,000 a year -- not good for a course set up in the city's books to be a self-sustaining enterprise.
Through rate increases and other steps, the course is on its way toward repaying its debt to the city's General Fund, with interest, in about 15 years, Cifuentez said.
"Our job is to keep it reasonable for golfers to play and still be able to set funds aside to pay for the big things when the need is there," Terra said. "Golfers grumble about paying higher fees, but a majority of them know it's best for everyone, that it enhances the quality of the product that we offer."
The improved financial performance comes despite fewer rounds being played.
Terra said golfers play about 80,000 rounds a year -- down about 5,000 rounds from a couple of years ago.
"That's about parallel with the industry, which overall is seeing a decline in rounds nationwide," Terra said. "That's the biggest challenge for the golf industry."
But proportionally, Terra added, Valley Oaks is feeling the effects to a lesser degree than other courses.
Current weekend green fees are $28 for 18 holes or $17 for nine holes or twilight play after 4 p.m. Seniors and juniors also get a discount.
But savvy hackers take advantage of a monthly card that offers more or less unlimited golf during the month for one price.
Cifuentez said the monthly tickets account for nearly half of the rounds played at the course, but only represent about one-quarter of the revenue.
A monthly ticket for an individual is priced at $95, plus the per-round surcharge.
Family tickets are also available.
Cifuentez received approval from City Council members to raise the price of the monthly ticket by $5 for people from outside Visalia.
Council members agreed that Visalia residents and business owners should benefit from a price break, since their taxes support the city.
Currently, golf course officials have no way of knowing how many of the monthly ticket players are out-of-towners.
The $5 increase likely won't be high enough to drive them away, Cifuentez said, but will provide information to staffers as they look at possible ways to revise the way in which resident discounts are provided.
Valley Oaks' all-you-can-play ticket, Terra said, is unusual in the golf industry.
Many courses instead sell punch cards offering a given number of rounds at a per-round discount -- a means that Terra said provides better control over revenues than offering unlimited play.
"The expense of running a golf course is high," Terra said. "You have to be careful how you price your product."
Source: Fresno Bee (California)
