The public course in Albuquerque, N.M. replaced four acres of turf with xeriscaping two years ago and reduced its annual water usage by 50 million gallons, earning over $160,000 in rebates. But as rates continue to rise for the water it still uses, the savings amount to “peanuts” and the course continues to “struggle on a day-to-day basis,” says General Manager Ron Meng Sr.
Two years ago, the owner of privately owned Desert Greens Golf Course, a public course in the Paradise Hills neighborhood of Albuquerque, N.M., talked of having to close because of soaring irrigation costs, the Albuquerque Journal reported. But Desert Greens then made an arrangement with the local water authority to receive a $1 rebate for every square foot of turf it removed, and took steps to replace four acres through xeriscaping.
Today, however, the Journal reported, Desert Green’s management says it is still “drowning in water costs,” as water rates continue to rise and xeriscaping has not proved to be as cost-effective as expected. While the course’s water consumption has dropped from 181 million gallons between August 2010 to August 2011 to 131 million gallons from August 2012 through July 2013, and the club has received $163,000 in rebates from the water authority, General Manager Ron Meng Sr. told the Journal that xeriscaping has proved to be more labor intensive, time-consuming and costly than expected, reducing the net benefit to 75 cents per square foot. Meng characterized that savings as “peanuts” compared to the still-rising cost of irrigating the course.
“We are struggling on a day-to-day basis,” Meng said. “The water rate in essence is running us out of business.”
Competing with municipal courses makes it difficult for Desert Greens to pass on the higher courses, Meng told the Journal. Desert Greens charges $45 for 18 holes on weekends, compared to $31.50 charged by Albuquerque’s 18-hoe municipal courses, Los Altos, Ladera and Arroyo del Oso, and $20.50 by the nine-hole Puerto del Sol course. “If we raised rates, we’d be out of business,” Meng said.
Desert Greens faced a steep increase in its water rates after its water supplier, New Mexico Utility, was acquired in 2009 by the Albuquerque Water Utility Authority, the Journal reported. Desert Greens was paying New Mexico Utility 60 cents per 1,000 gallons, but after the acquisition it had to start paying 41 cents per unit of 748 gallons in 2010. The Water Authority then increased rates by 10 percent in July 2011 and again in July this year, and the rate is now $1.68 per 748 gallons, the Journal reported.
All told, Desert Greens’ Superintendent Eddy Leslie told the Journal, the change of water providers and subsequent rate increases have taken the course’s annual water bill from about $130,000 to around $450,000.
Desert Greens uses potable water for irrigation, the Journal noted, and The Water Authority gives a 20 percent discount to customers, including the municipal Arroyo del Oso golf course, that use reclaimed wastewater that is not treated to the same standard as potable water. But using wastewater requires a separate piping network to be installed and there is no such network on Albuquerque’s West Side, Meng said.
Chamisa Hills Golf and Country Club in Rio Rancho, N.M., which has struggled financially and is now up for sale, uses reclaimed wastewater that it gets for 47 cents per 1,000 gallons under a contract with the city of Rio Rancho, the Journal reported. New water rates scheduled to take effect in July 2014 will bump the rate to $3.28 per 1,000 gallons.
Chamisa Hills’ owner, Harry Apodaca, said the rate increase influenced his decision to sell and Albuquerque businessman Michael Schumacher of BIZDOC Inc., who emerged as a potential buyer in June, (http://clubandresortbusiness.com/2013/07/11/prospective-owner-discusses-future-of-chamisa-hills-gcc/) asked Rio Rancho’s city manager to consider an alternative rate of $1.38 per 1,000 gallons for the first 23 million gallons per year and $2.51 for additional water used per year, the Journal reported. But Schumacher then withdrew from the deal before city officials reached any decision on the water rate.
Apodaca said he has other parties interested in buying Chamisa Hills, but has offered no further details, the Journal reported.
Four Hills Country Club, another privately owned course in the Albuquerque area, has also faced financial difficulties in recent years, the Journal noted, and a group of Albuquerque entrepreneurs is now trying to acquire the assets of the club from a mortgage company which had foreclosed on the property (http://clubandresortbusiness.com/2013/10/07/four-hills-cc-may-sold/).
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