The City owns the Pecan Hollow Golf Course located northeast of the intersection of 14th Street and Los Rios Boulevard. Nine full-time City employees maintain the golf course, including greens, fairways, tee boxes, bunkers, traps, out-of-bounds areas, practice areas, landscape beds, etc. The Golf Fund, an enterprise fund (separate from the General Fund), covers 100% of the maintenance expenses. In FY 2020-21, the cost to maintain the course totaled $949,100. The Golf Fund is funded primarily by the collection of green fees. Green fees for FY 2020-21 totaled $1,175,086.
Although the City owns and maintains the golf course, the City does not operate the course. Beginning in 1995, the City has contracted with PGA Head Golf Professional Steve Heidelberg (Plano Golf Course, Inc., dba Pecan Hollow Golf) to manage the operations of the course.
As the operator of the golf course, Plano Golf Course, Inc., dba Pecan Hollow Golf is responsible for the costs associated with the operation of the course (excluding maintenance). Operational costs include the payroll for 11 full-time and 14 part-time employees, operating the pro shop, the Pecan Hollow Grille and the driving range; golf lessons and clinics offered to the public; purchasing and maintaining golf carts and all rental equipment; marshalling services; etc.
Mr. Heidelberg’s income is generated from the sale of pro shop merchandise, golf cart rental fees, pull cart rental fees, food/beverage sales at the Pecan Hollow Grille, other equipment rental fees, golf lesson/clinic fees, and other revenue associated with the course operations, except the green fees.
The City receives 100% of the green fees as well as 5% of all other revenues generated from course operations. Plano Golf Course, Inc., dba Pecan Hollow Golf retains 95% of gross operations revenue. Mr. Heidelberg’s gross revenue in FY 2020-21 was $1,551,704, from which he covered all operating expenses.
The current agreement with Mr. Heidelberg expires June 14, 2022. Staff recommends the Management Services Agreement between the City of Plano and Plano Golf Course, Inc., dba Pecan Hollow Golf be approved for the continued operation of the golf course under the same compensation terms as the current agreement. The City will continue to receive all green fees as well as 5% of all other revenues generated from course operations.
Other changes in the proposed agreement include:
Rental Equipment (changes are based on demand)
o Electric carts - increase from 60 to 80
o Pull carts - decrease from 12 to 6
o Golf clubs - decrease from 10 to 4
Hours of operation
o Add two days for course to be closed - Thanksgiving Day and two days for Christmas (instead of the current one day)
Fee Adjustment Process
o Fee adjustments must be reviewed and approved by the City
Depositing Fees
o Decreased from twice per week to once per week
Mr. Heidelberg is a tenured and valued golf professional and business manager. He is in good standing with the Plano golf community, receiving high marks for customer satisfaction over 27 years in this role. His leadership supports the City of Plano’s Strategic Vision for “Welcoming and Engaged Community” and “Excellent, Innovative and Accountable City Government.”
Terms within the proposed agreement align with other such relationships in the region, including:
- Sherrill Park Golf Course – Golf pro is under a 3-year contract with two 3-year renewals.
- Oak Hollow Golf course – Management contract is negotiated every 5 years.
- The Courses at Watters Creek - Golf course manager is a City of Allen employee.
- Firewheel Golf Park – Golf Course Administrator is a City of Garland employee.
The structure of the agreement incentivizes Mr. Heidelberg to provide high quality public golf course experiences. When golfers encounter a professional staff, efficient business practices, safe and updated equipment, and customer service excellence, the City of Plano, Mr. Heidelberg, and Plano residents all benefit. Approving this agreement ensures the golf course will continue to be operated by a golf professional, that is knowledgeable, well respected and dedicated to the success of the Pecan Hollow Golf Course.
Not approving the agreement puts at risk the current status and reputation of the Pecan Hollow Golf Course.
The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(4). (City of Plano Internal Contract No. 2022-0458-AC)