City Manager Ron Olson announced at last night’s City Council workshop that he intends to seek proposals from outside companies to take over golf course management at Stonetree Golf Club.
Stonetree Golf Club is a well-used quality of life amenity in Killeen, but it has been unable to cover operational expenses requiring General Fund subsidy. The shortfall has averaged more than $300,000 in each of the last five years.
As part of his continuous improvement strategy, Olson has been exploring a number of City services and programs for improvement. The golf course was identified as having potential for profitability. Over the past year, staff has worked to implement changes internally but has not been able to achieve balance between revenues and expenditures.
Professional golf course management companies can often offer economies of scale. Through management of multiple courses, vendor relationships and larger contracts can be established producing significant savings and lowering overhead.
With City Council’s support, a request for proposal (RFP) will be issued to solicit proposals from outside firms. Those received will be evaluated against current operations to determine which if any provides the best value to the City.
“We have a very dedicated staff at Stonetree, and soliciting proposals is in no way a reflection of their professionalism,” Olson emphasized. “I have seen golf operations outsourced successfully, and it is important that we explore all possibilities of relieving pressure on the City’s financial resources.”