Recent articles in the Modesto Bee concerning their municipal golf courses and their continued financial troubles are almost a mirror image of the City of Stockton and their municipal golf courses. They continue to require General Fund money to keep them operational. And we are not talking about a small sum. Modesto reports their golf courses will require some $400,000 to $500,000 of General Fund dollars to keep them open this next fiscal year. Now where Stockton is attempting to lease their golf courses to private management, Modesto is actually considering closing two of their courses. The simple fact is that Modesto and Stockton cannot continue to reduce fire and police services and fund golf courses.

Modesto blames the shortfalls on too many golf courses and not enough golfers. Modesto golfers can be quoted as stating their golf courses lack value. The simple truth is that neither city understands the CRF. This is an abbreviation for “Customer Retention Factor” which is pretty self explanatory. Regardless of the business type one might be referring to, if you want to maintain a healthy customer base capable of supporting that business, every decision must be based on “what do we need to do better than other competing businesses to keep that customer coming back to us.”

The recent golf course study done for the city of Manteca by golf facility consultant Gene Krekorian of Environmental Research Association refers to the importance of the CRF in our golf operation and the reasons the Manteca Golf Course is leading all others in the valley in customer totals. Mr. Krekorian refers to course condition, promotional programs and customer service as key factors. Ironically, this same consultant was commissioned to do a similar report for the city of Modesto approximately 14 years ago and unfortunately for Modesto, no one listened. Modesto has repeatedly reduced their golf course maintenance program, promotion, and customer service, in an effort to save money and it has resulted in just the opposite.

Modesto and Stockton both have made the mistake in thinking that all City Enterprise Operations are alike. They are of the mindset that what works for one works for all. For those who are not familiar with City Enterprise Operations, they are simply separately run operations within a city where fees are paid by the users to cover the expenses of that particular operation. A good example is refuse. It is a separate operation within a city where the customer is charged for garbage pick-up and the revenues charged pay for that department expenses. Customers cannot, for example, be overcharged and the profits be used for other departments. The concept is that you are paying a fair amount for that service and that service only.

Now here is where an Enterprise Operation like a golf course differs from an Enterprise Operation like refuse. You can cut back on the amount and quality of service provided when picking up someone’s garbage and still charge the same fees because they have no choice but to pay it, but try doing that at a golf facility and your customers will go elsewhere. The CRF comes into play.

Modesto needs to review their golf course study which they paid some $30,000 and take the recommendations presented and act on them. There are more than enough customers out there to allow your golf facility to be successful. You just have to be smart enough to understand that all City Enterprise Operations cannot be treated the same. The CRF is the critical variable which dictates success or failure.