building the finest golf course maintenance business … · 2018. 7. 31. · education: hospitality...
TRANSCRIPT
BUILDING THE FINEST GOLF
COURSE MAINTENANCE
BUSINESS PLAN
Nicholas von Hofen, CGCSGeneral Manager
Collier’s Reserve Country Club, Naples, FL
Nicholas von Hofen, CGCSGeneral Manager
Current Club: Collier’s Reserve Country Club, Naples, FL
Hometown: Cleveland, Ohio
Education: Hospitality Management Certificate, eCornell University
F & B Management Certificate, eCornell University
Bachelors Science in Finance, Rasmussen College
Associate Science Turfgrass, The Ohio State University
Work History: The Ritz-Carlton Members Club, Sarasota, FL
PGA WEST, La Quinta, CA
Lost Tree Club, North Palm Beach, FL
Old Marsh Golf Club, Palm Beach Gardens, FL
Muirfield Village Golf Club, Dublin, OH
Today’s Objectives
• The Real Value of Golf Course Maintenance Standards & Expectations
• What are Agronomic Programs and their Costs?
• How to Create a Preventative Maintenance Program That Adds Value
• Why is Goal Planning Critical in the Budget Process?
• What Projects are on the Horizon and is there a Capital Plan in Place?
• Communication is Key ~ Member Newsletters / Videos
• Sample Golf Course Maintenance Business Plan
Society’s Perception of the Golf Course Superintendent
38th Anniversary of Caddyshack
July 2018
Society’s Perception of The Accountant
Chris Wolf digs into the
records and finds that over
$61 million has been
embezzled from the
company.
Common Goal - Pursuit of Perfection
28 Employees in Photo
Augusta National
No Two Courses are the Same!!!
No Two Courses are the Same!!!
Internal Audit – What Are We Working With?
The Real Value of Maintenance Standards & Expectations
The Real Value of Maintenance Standards & Expectations
Greens & Collars Expectations
• Greens shall be smooth, have uniform turf, be firm but not hard, be
well defined, and be of suitable speed for the location. Color and
texture shall be consistent green to green. A consistent green
speed between 9.5 to 10.5 feet shall be the goal.
• Cup Changing shall be changed daily with the inside cup lip
painted with white paint.
• Flagstick shall stand up straight, clean and in good repair.
• Aeration, topdressing, vertical mowing shall be performed as often
as necessary to produce superior turfgrass quality.
• Fertilizer and Pesticide applications shall be recorded.
Sand Bunkers Expectations
• Sand shall be uniform and sufficient depth averaging 4 inches deep in
bunker bottoms and 2 inches deep on the slopes.
• Bunker rakes shall be in good condition placed outside of the bunker.
The Real Value of Maintenance Standards & Expectations
DAILY COURSE SET-UP STANDARDS
Goal: The course set-up should provide challenging and interesting shots
and maximize golf course diversity.
Standards
– Use pin sheet rotation plan.
– Tee markers are not to be more 6 paces apart.
– Keep trash off the golf course.
– Pick Up used tees off of teeing grounds.
– Use cart control rope when appropriate.
– Use cart path stakes as needed.
– Control fire ants.
– Trap rakes are to be moved daily and placed outside of traps
– Maintain a sharp edge on the cup cutter to produce a clean cut.
The Science of Building Sound Agronomic Programs
The Science of Building Sound Agronomic Programs
Greens Soil Testing – May 2018
• Thatch – One Inch or Less is the Goal
• Percent Organic Matter in Thatch Layer
• Percent Organic Matter in Stained Layer – 3% or Less is the Goal
• Saturated Hydraulic Conductivity - 8 Inches or Higher is the Goal
Thatch
Stained
Layer
Original
Base
Layer
The Science of Building Sound Agronomic Programs
15
Summer Maintenance for July
Verticut & Aerify & Topdress
Greens (1/2” coring tine)
Verticut & Aerify & Topdress Tees
(1/2” or 5/8” tine)
Aerify Collars & Approaches
Aerify Fairways (7/8” coring tine)
Scalp Fairways (.500 to .400)
Scalp Roughs (1 ½” to 1”)
Golf course closed 10 days in July
The Science of Building Sound Agronomic Programs
Fairway Verticut & Curfew Application
The Fairway Verticut Removes
Excessive Thatch Curfew Application Targets
Nematodes on Greens & Fairways
The Science of Building Sound Agronomic Programs
The Science of Building Sound Agronomic Programs
Fungicide Programs
The Science of Building Sound Agronomic Programs
Sample Programs
19
The Science of Building Sound Agronomic Programs
Early Order Programs Can Save Your Club $$$
Early Order Programs Can Save Your Club $$$
Value of Early Order Programs
• EOP can be the most cost effective way to purchase products if an
agronomic plan is in place.
• With an agronomic plan in place, EOP can certainly save the golf
course some significant money.
• Superintendents are recommended look at their agronomic plans
and look at their previous years' spend for fertilizers and pesticides.
How effective was that plan that year? Were changes made or
necessary? This is how agronomic plans get “dialed” in over time.
• EOP is not only for pesticide products. EOP is also a great time to
get base fertility needs met at a discount compared to in-season
pricing. Fertilization is a key part of any agronomic plan and should
be given the same attention and detail as any pest control program.
Early Order Programs Can Save Your Club $$$
Early Order Programs Can Save Your Club $$$
Value of Early Order Programs
Early Order Programs Can Save Your Club $$$
Value of Early Order Programs
Preventative Maintenance Programs Do Add Value
Preventative Maintenance Programs Do Add Value
Equipment Hours = Miles
• A typical turf equipment engine runs @ 3000 RPM (avg.)
• In a modern car, 3000 rpm can equal 75mph (avg.)
• Theoretically, every 100 hours of operation on the turf equipment
engine could be considered to equal 7500 car miles ! (100 hours x
75mph)
• A modern car engine operates at 20% duty cycle (Full power only
20% of the running time on average)
• Trucks operate at about 50% duty cycle
• Turf equipment engines run at about 70% duty cycle, so…the turf
engine duty cycle is 3-4 times as severe as a car
Preventative Maintenance Programs Do Add Value
Turf Equipment Hours = Miles
• 500 turf hours can equal 125,000 car miles
• 1000 turf hours can equal 250,000 car miles
• 2000 turf hours can equal 500,000 car miles
• 4000 turf hours can equal 1,000,000 car miles
• How do you feel about equipment durability?
• What is your perspective on routine maintenance?
• Do you feel comfortable with non-genuine parts?
Preventative Maintenance Programs Do Add Value
Knowing Equipment Hours Help Control Lease Costs
• 36 month FMV with 600 hrs / year
• 36 month FMV with 900 hrs / year
• 36 month FMV with 1200 hrs / year
Good Equipment Care History = Extra Incentives
• Equipment Technician Training
• Extended Warranty Options
• Complimentary Equipment
Preventative Maintenance Programs Do Add Value
TORO myTurf Fleet Simplified Equipment Management
• No charge for Toro customers
• Track your entire fleet online
• Instant access to the latest Toro manuals and information
• Order parts online anytime, anywhere from your Toro Distributor
TORO myTurf PM Longer Equipment Life. Increased Productivity.
• All the benefits of myTurf Fleet
• 90 day free trial
• Ensure Preventive Maintenance is done & tracked
• Automated Maintenance Alerts
• Create Work Orders
TORO myTurf TCO Total Cost of Ownership Tracking
• All the benefits of myTurf Fleet & myTurf PM
• 90 day free trial
• Ensure all Maintenance is done & tracked - PM & Repairs
• Track your own parts inventory
• Easier record keeping and purchase justification
TORO Fleet Management Systems
Building The Budget
Calculating Expenses
Building The Budget
Calculating Expenses
Golf Maintenance Expenses Costs
Various Fertilizer & Chemical Line Items
Drought Management $9,320
Fertilizer $78,640
Fertilizer Injection (Acid) $19,300
Growth Regulator $6,000
Pest Management $67,000
TOTAL $180,260
These expenses make up 13% of our Total Budget
Building The Budget
Calculating Expenses
Golf Maintenance Expenses Costs
Contract Services
Preventative Maintenance Pump Stations $2,900
Water Quality Monitoring $5,160
June Fairway Verticutting $7,500
Pest Control at Maintenance $592
Drinking Water System Rental $1,620
Bridge 2015 Maint. Contract $16,500
Vine Removal $10,000
Security Alarm System - Quarterly $432
Fire Extinguisher Annual Inspection $300
Office Copier Service - Quarterly $320
TOTAL $45,324
Building The Budget
Sample Golf Course Budget – SW Florida
Golf Maintenance Expenses Costs Percent
Payroll Expenses $836,510 60%
Wages, Taxes, Benefits
Operating Expenses $549,311 40%
Supplies, Repairs, Fert, etc.
Total Operating Expenses $1,385,841 100%
Projects on the Horizon
Projects on the Horizon
Golf Course Life Cycle
Projects on the Horizon
37
Component Year Built
ASGCA
Expected
Life
Cycle
ASGCA
Expected
Life Cycle
Dates
Recommended
Replacement Dates ???
Construction Method
and Materials Cost Guesses
Greens - Original
Base1992 15-30 2007-2022 2018
TifEagle / Modified
USGA Profile$850K - $1.2 million ?
Tees 2003 15-20 2018-2033 2018SeaIsle 2000 Paspalum
/ No Mix, Existing Soil$200K - $500K ?
Bunkers 2009 5-7 2014-2016 2014 37M Standard Sand $90K
Bridge #17 Tee 2003 2014 & 2015 $30K
Bridge #18 Tee 1992 2014 & 2015 $24K
Bridge Boathouse 1992 2014 & 2015 $15K
Cart Paths - Concrete 1992 15-30 2007-2022 Soon Concrete Paths $500K
Water Supply $12.5K
Maintenance Building 1993 20-35 2013-2028 2018 $75K ?
Chemical and
Fertilizer Storage 1993 20-35 2013-2028 2018
CCI Storage + Mix/ Load
Area$20K ?
Fuel Storage 1993 Every year inspection1000 Gallon Diesel &
1000 Gas$10-20K ?
Tiki Huts #8, #12 2010 5 2015 Operating $4K
Additional Tees #15 &
#162014 add/rebuild $30K
Being the Best Project Manager
Items to Consider When Developing Project
Specific Scope of Work To Be Done By Contractor $$$
Project Timelines and Clauses For Missed Deadlines $$$
Opportunities To Sell Old Items / Equipment $$$
Consulting Fees / Engineering Fees $$$
Landscape Restoration / Plant Replacement $$$
Cart Path Repair $$$
Additional Warranty Packages $$$
Contingency Factor (10-15%) $$$
NOT TO EXCEED!!!
Communication is Key ~ Variance Reporting & Forecasting
Nicholas von Hofen, GM
@HFTP2018Presentor
Communication is Key ~ Variance Reporting & Forecasting
Communication is Key
Sample Golf Course Business Plan
The Work Relationship
• Golf Superintendents
are not Accountants
But
• Golf Superintendents
are Held Accountable
• Help Them Help
You!!!
Enjoy Your Conference!
Thank You!
Nicholas von Hofen, CGCS
Collier’s Reserve Country Club, Naples, FL