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Friday, November 20, 2015

City's golf course on better financial ground

Remember back about 15 years when Yorba Linda was building the Black Gold Golf Club and proponents promised income from the facility would add some $1 million yearly to the city treasury, replacing declining revenue due to the slowing of 1980s-1990s building activity?

For several years this column sadly noted that instead of huge profits flowing to city coffers, taxpayer subsidies were needed to cover expenses at the 219-acre course, which opened in 2001.

Now, however, there's better news on two fronts – a positive net income and progress in water conservation, according to a report from city Parks and Recreation Director Mike Kudron that's backed by an independent, on-site review by the United States Golf Association.

Revenues from the most recently completed fiscal year, 2014-15, were close to $5.9 million, with a net income of $690,288. Some $100,000 was used to purchase a fleet of 89 golf carts and another $86,729 on driving range and clubhouse improvements, leaving a $503,559 net.

Increased revenues exceeded estimates by $52,508 and the prior year by $86,801, despite a 0.2 percent decline in green fee income, representing 598 fewer rounds played, a 1.7 percent drop. But the “average rate per player” was up $1.08 over budget and $1.14 over prior year.

Growth in food and beverage operations and tournament golf rounds contributed to the black ink. Eat and drink income was nearly $2.2 million, up 4.6 percent over estimates. Tournament revenue was $914,189, an 8.4 percent boost on 10,939 rounds, an 11.8 percent jump.

Guest total was 108,684. The breakdown: 55,755 golf rounds; 12,112 practice facility; 9,900 weddings; 12,700 banquets and meetings; 6,500 events and tournaments; 11,717 a la carte dining. A survey of 2,195 customers rated the club's services at 9.3 out of 10.

Playing a key role in water conservation is a nearly complete transition from perennial rye grass to Kikuyugrass, beginning in 2010 to cover 112 turf acres with a grass variety “more suitable” to the area's climate and growing conditions, irrigated by non-potable water.

Fairways are 80 to 95 percent Kikuyugrass, with “wall-to-wall” coverage, including roughs and turf slopes, expected in three years. According to Kudron's report, the course “is in very good overall condition, and irrigation water usage has been reduced.”

Kudron noted: “The warm-season Kikuyugrass' drought-tolerant nature enabled us to eliminate daytime watering of established areas without jeopardizing turf health.” Wetting agents help water penetrate soil and improve holding capacity, and dry spots are hand-watered.

Among recommendations in the golf association's independent report are to plan for bunker sand replacement, due to natural contamination of silt and organic debris after 10 to 15 years, and upgrade portions of the irrigation system “to ensure optimum...performance and water use efficiency.” No cost estimates were given for these projects.