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An operational audit is being conducted at Devil's Thumb Golf Club in an effort to stem the flow of red ink from the city-owned golf course.

Under the scope of work, THK and Phelps & Atkinson, the winning bidder, will:

• Evaluate and analyze the staffing levels, policies, procedures, job descriptions and internal controls.

• Review the golf facility for efficiency, maintenance upkeep and physical integrity.

• Identify capital improvements that are required to maintain the golf course in a competitive market condition and estimate the associated costs and incremental revenues that will result.

• Analyze the local golf market for such trends as golf activity, fee structures, services and how these trends impact the Devils Thumb Golf Club market share and financial performance.

• Provide recommendations on golf course policies and fee structure.

• Prepare a five-year financial projection for the golf course.

• Evaluate and analyze the local area and provide a multi-year marketing plan to include print, radio, Internet and partnership opportunities.

• Evaluate funding alternatives.

• Evaluate current revenues and expenditures and provide recommendations.

The information that will be provided will be used extensively in budget development, irrigation and fertilization practices, future equipment purchases and market analysis.

A key component in the scope of services will be recommendation for future funding for the golf course. That element of THK and Phelps & Atkinson's bid placed it above the other firm which was interviewed for the project.

The bid of $17,200 was well above the budgeted amount of $10,000, which golf course manager Rob Sanders explained was based on an unsolicited proposal received several months earlier. "It was really kind of a guess," he said. "It appears that we estimated low."

The other bid was even higher at $19,000.

The difference will be included in a supplemental budget appropriation later in the year. City manager Joe Kerby said it's unlikely an additional $7,200 can be carved out of the golf course budget.

Council members briefly discussed postponing the operational audit because of the unexpectedly high cost, but decided the results will be valuable for future budget discussions. Since it will also require staff time, Sanders pointed out that it's better to conduct the audit in the winter months when business is slower.

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