1. 1 2005 Torrey Pines “Prime Time” Tee Time Allocation Audit / Analysis An Analysis for the San Diego City Council Prepared by San Diego Golf Reservations (SDGR) Wednesday, March 8, 2006

2. 2 Background: San Diego Golf Reservations (SDGR) submitted a Public Records Act Request on Jan 24, 2006 - 2005 tee sheets at Torrey Pines. On Feb 3, 2006. Received Over 3,000+ tee sheet documents at a copying cost of $ 821. SDGR’s Information Technology (IT) person, re- created the tee sheets in a similar tee sheet database program and extracted the audit report numbers and city revenues for this presentation.

3. 3 Purpose & Goals Conduct an independent “Prime-Time” tee time allocation audit to establish a baseline reference point the Stakeholders would accept as an accurate representation of the existing tee time allocation. Using “the same data” each Stakeholder could then interpret the fairness of the allocation from their viewpoint to form opinions and recommendations. Separate “Fact from Fiction.” Eliminate the many exaggerations and myths circulating in the media and general public about the allocation of tee times at Torrey Pines.

4. 4 Purpose & Goals This discussion will lead to the solutions, tough decisions and compromises necessary to ensure a fair “tee time allocation component” supports both San Diego resident golfers and the overall goals of the much larger Five Year Business Plan.

5. 5 We Have A Consensus! March 7, 2006 – Provided the Stakeholders with a presentation of the audit methodology as well as an advance copy of this report. After a 1 ½ hour meeting and discussion all in attendance agreed the report was an acceptable baseline representation of the 2005 “Prime- Time” Tee Time Allocation. Those in attendance were:

6. 6 We Have A Consensus! Mark Woodward - Torrey Pines Golf Operations Manager Mark Marney - Asst. Torrey Pines Golf Operations Manager Mary Ann Kempczenski – Council Representative for Councilmember Donna Frye Dorsey Gale – President Torrey Pines Ladies Club Art Stromberg – President Torrey Pines Men’s Club Dan Fullen – GM The Lodge at Torrey Pines Torin O’Sullivan – Dir of Recreation Hilton Torrey Pines Paul Spiegelman – San Diego Municipal Golfer’s Alliance

7. 7 Definitions: Tee Time: A reservation for 1 -4 golfers to begin playing a round of golf at a particular time. Round of Golf (General): A completed game of golf where the player completes all 18 holes, usually in 4 ½ - 5 ½ hours. Round of Golf (Reports): 1 round of golf = 1 player

8. 8 Definitions: Prime-Time Tee Time: Any tee time between the first reservation system tee time (7:30 a.m. & prior to sunset + 15 minutes minus 5 hours. Revenue Per Round: The revenue the City receives from the green fees paid by a golfer or a Stakeholder at the rate the golfer or Stakeholder was required to pay based upon the golfer’s resident status or Stakeholder’s lease with the City.

9. 9 2005 Torrey Pines “Prime-Time” Resident vs. Visitor Rounds Visitor Makeup Hotels Tournaments Pro Shop Visitor – Lottery 25% of Starter Resident Makeup Non-Booked Golf Clubs Residents – Lottery 75% of Starter

10. 10 2005 Torrey Pines “Prime-Time” Tee Time Allocation:

11. 11

12. 12 Conclusions: 47.3% of the tee times are used for special allocation and not in the tee time lottery. Of the 47.5% of the tee times released in the lottery only 6.6 % are booked for visitors. Approx 4.3 % of the 6.6% is primarily booked by Brokers on behalf of visiting golfers. Brokers are NOT obtaining “a majority of the tee times” at Torrey Pines. Overall it appears Broker access is DOWN approximately 66% from the 15.75% level reported in the previous Five Year Business Plan.

13. 13 Conclusions: Visitor play provides 50% of the revenue with 1/3 of the access. The Pro Shop and Hotels do not use all of the tee time access provided for in their leases. Overall tournament play does not appear to be excessive. It appears the 70/30 resident/visitor split directed by City Council is being met.

14. 14 Recommendations for Change: 1)Require City Golf staff to make a distinction between “Prime-Time” from Non-Prime-Time tee times where a player cannot complete 18-holes of golf. 2)Require City golf staff to daily post its tee sheets on the City website so residents and visitors can see the inventory of tee times available to the general public each day in the nightly tee time lottery. 3)Require City golf staff to post a monthly listing of the tournaments and their sponsors on the website.

15. 15 Recommendations for Change: 4)Eliminate or reduce the less than “Market Rate” Prime-Time tee time allocation to the Lodge, Hilton and the Torrey Pines Pro Shop. 5)All tournament green fees should be priced at a “Market-Rate” based upon how far in advance the tournament is booked. 6)Charge increased “Market-Rate” non-resident greens fees between 7:30 a.m. & 12:30 p.m. to compensate for lower resident green fees.

16. 16 Recommendations for Change: 7)Reject an Ordinance that further prevents the general public from accessing tee times at City golf courses via Brokers, Concierges, Travel Agents and Meeting Planners. 8)Direct the Independent Budget Analyst to conduct a yearly audit of the tee sheets to assess the actual % of resident and non-resident play at Torrey Pines according to the “Prime-Time” tee time formula.

17. 17 This Concludes Our Report Thank You San Diego Golf Reservations will be posting the complete report on our all of our websites: www.SanDiegoGolf.com www.GolfSanDiego.com www.TorreyPines.com www.GolfSd.com I would be happy to answer any questions you may have about this report and our conclusions and recommendations.