EMPIRE GOLF
                        
        
Oakmont Golf Club
Management Report to the Board of Directors
December 18, 2008
Empire Golf, Inc.

*        Review of Profit/Loss from Operations for November 2008
o        November was a fair month financially for the OGC, with an operating loss of $4,754 which was ahead of budget by $10,106, but behind last Novembers profit of $29,130.  Play on our two golf courses was up 68 rounds from November of last year, and exceeded budget by 1,106 rounds.
o        We had an overall Gross Profit from Golf Operations of $26,566, which exceeded budget by $9,322, but behind November 2007 by $37,025. A lot of this variance, $34,000,  was in golf course maintenance expenses as last year wages and benefits were significantly less, due in part to an accounting adjustment. Daily fee revenue was $73,562 which exceeded budget by $17,594, but behind November 2007 by $6,858.  
o        Golf Course Maintenance Expenses were over budget by $9,334, but are still tracking at approximately $30,000 under budget for the year. Service and Supply line items that we are largely over budget in are fertilizers, utilities, and fuel. The fuel and fertilizer costs are both up with the spike in the costs of gas this year, and the electricity from the length of the irrigation season
o        Food and Beverage once again had an outstanding month in November, with sales up 30% from November 2007, and profitability exceeding budget. Operations had a profit of $16,789 as compared to a budgeted $7,411, and $3,753 for November 2007.  This brings our YTD profit from Food & Beverage operations to $202,257 which is an increase of 55% over YTD last year.  Once again our banquet and wedding business was strong. 

*        Departmental Update
o        Course Maintenance
Report from Steve Good, Head Golf Course Superintendent
o        The unseasonably dry weather this fall had the pump stations and irrigation systems working lots of overtime.  Greens, tees and selected fairway areas continue to receive periodic watering cycles into the second week of December.  Any amount of rainfall will be more than welcome.  Final touches are being completed on #13 West new tees and lake surrounds. Opening of the new teeing areas will be at a later date.


o        GREENS: First application of winter fertilizer and two applications of fungicide were made on both golf courses.
o        TEES:  All tees on both golf courses were aerified, light sanded, fertilized and treated with a gypsum application.
o        BUNKER RENOVATION: Fairway bunkers on #15 and #17 West were removed, backfilled and seeded. The second fairway bunker, right side, and back bunker #16 green West are next and will be completed as the work schedule permits.
o        CARTPATHS:   Concrete paths on the West have been edged and cleaned with painting of yardage numbers and lines scheduled for next week.
o        TREES: In house pruning and trimming of trees has begun and will continue thru the winter.
o        TYLERS TIPS:  FROST DELAYS….Frost is essentially frozen dew, forming when the temperature is near or below the freezing point.  The ice crystals that form on the outside of the plant harden or freeze the cell structure of the plant. When frosted, the normally resilient plant cells become brittle and are easily crushed. With damaged cell membranes, the plant loses its ability to function normally. We won't see any immediate damage if we walk on the frozen turf, it takes 48 to 72 hours for the plant to die and turn brown, leaving foot prints and tire tracks where damage occurred.  That makes for unsightly and bumpy greens and fairways with brown cart tracks. Thanks for your cooperation and understanding on those cold mornings. Happy Holidays!
o        Golf Operations
                Report from Jim Carra, Director of Golf
        Products of the Month are as follows:
o        December: Outerwear
o        January: Shoes & Socks 
        We have been experiencing FROST delays in the morning.  Please be aware and stay off all grassed areas until notified by Golf Shop Staff.  It doesn't take long after the FROST breaks, and we begin to warm up nicely.  We have been anticipating the rain, but not much as of this writing.
        We are trying to book outside events for the coming season.  If you hear or know of anyone looking to host a tournament or outing, please give them the golf shop's number.  No group is to small.
        It is that time of year; make sure you have renewed your GHIN number for 2009.  At the end of each calendar year, we must update the GHIN computer names. 
        Sweeps Money!  Clear out your account by December 31st and receive 10% off your purchase.
        The East Golf Shop looks great after the modified remodel.  If you have not stopped by the East Golf Shop, please do.
        Monthly calendar and other information are posted outside the West Golf Shop.
        Inventory will be completed Wednesday, 31, 2008.  Golf Shop will be open as inventory count continues.
        Golf Shop Hours: Open 7:00 am Close 5:00 pm

o        Sales and Marketing
        Report from Tina Williams, Director of Sales and Marketing
        Weddings
o        We hosted our last wedding on December 13th for 2008.
        I received several thank you notes from the Bridal    couples for the weddings in 2008.  They were very complimentary about the food, staff and coordination. 
o        November  Wedding Business
        Food and Beverage                  $26,290.
        Facility Fees                            5,650.
        Banquet Service Charge            4,863.
Total for September                $36,803.
o        2009 Weddings
        9 Weddings booked for 2009
        Weddings are coming in slow but I am hopeful that the attendance of the wedding shows in January will bring more in.  I am also going to attend a wedding show in San Francisco in February to try to capture brides in that area that want to come to the wine country.
o        Memberships
        Currently there are 91 monthly golf memberships.
        Winter membership drive under way with advertising in the Press Democrat, on the radio, and posters around the club. Tag line will be GOLF NOW ~ PAY LATER $500 onetime fee and pay no dues until February 1st

o        Golf Tournaments
o        Continuing to book new tournaments for 2009
        New website is up, check it out at www.oakmontgc.com http://www.oakmontgc.com

o        Food and Beverage        
  Report from Ehrin Cadigan, Director of Food and Beverage
        November revenue exceeded budget by $41,625.  Food cost and wine cost was abnormally high for the month 43% and 49%.  Labor was just under budget and our bottom line profit of $16,789 was more than doubled the budget number of $7,411
        We started our Sunday Breakfast buffet December 14, 2008, and had 54 covers for the first Sunday. The time is from 9am - Noon.  We will only take reservations of parties of 6 or more all others will be first come first serve.  Price is $12.95/pp and includes the breakfast buffet, coffee and orange juice.
        We had a great Thanksgiving Day Buffet.  We did 247 covers for just under $7,000 in sales.  We received good comments on food, scenery and service. 
        New Year's Eve reservations are not picking up as planned.  We currently have 28 reservations on the books.  We need about 50 people to break even.  You can still sign up by calling 539-9215.  We have an open bar, a 4-course dinner and a live band.  Party starts at 5pm and dinner at 6:30pm.
        Christmas Eve we will be open 7am and stop serving food at 3:30pm.
        Christmas Day we will be closed.
        New Year's Eve the bar and grill will serve food until 3:30pm and the banquet room will open at 5pm for the holiday party.
        New Year's Day in addition to our regular breakfast we will also, serve our breakfast buffet in the dining room from 9am - 12pm.  Price is $12.95.

o        Administration
        Annual Dues billings as well as Annual Fee billings will be sent out in the January statements.

From the Management
I want to personally thank all of the OGC Board Members for their hard work and dedication in 2008.  I would like to especially thank outgoing Board President Charlie Sims and Treasurer Charlie Chapman for their key roles in the formative period of the relationship between the OGC and Empire Golf.
HAPPY HOLIDAYS TO ALL!!
Report respectfully submitted by Rod Metzler, President, Empire Golf Inc.