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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/07/2000 - SECOND READING OF ORDINANCE NO. 144, 2000, AUTHORI AGENDA ITEM SUMMARY ITEM NUMBER: 12 DATE: November 7, 2000 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Jerry P. Brown SUBJECT: Second Reading of Ordinance No. 144, 2000, Authorizing the Purchasing Agent to Enter into an Extension of the Golf Professional/Concessionaire Agreement for City Park Nine Golf Course. RECOMMENDATION: Staff and the Golf Board recommend adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: The existing agreement with City Park Nine Golf Course Golf Professional/Concessionaire Dale Smigelsky expires on December 31,2000. This four-year agreement was entered into on February 20, 1997, after being awarded through request for proposals # P-606. As per Section 7.5 of the agreement(and noted in the RFP document), "This agreement may be extended beyond the original four year term if performance is satisfactory, and subject to City Council approval and negotiation of a mutually acceptable extension agreement." Performance has been very satisfactory and staff has negotiated a mutually acceptable extension. Ordinance No. 144, 2000, was unanimously adopted on First Reading on October 17, 2000. AGENDA ITEM SUMMARY ITEM NUMBER: 20 DATE: October 17, 2000 FORT COLLINS CITY COUNCIL STAFF: James B. ONeill/ Jerry P. Brown SUBJECT: First Reading of Ordinance No. 144, 2000, Authorizing the Purchasing Agent to Enter into an Extension of the Golf Professional/Concessionaire Agreement for City Park Nine Golf Course. RECOMMENDATION: Staff and the Golf Board reco end a tion t Ordinan on First Reading. FINANCIAL IMPACT: Under the terms of the existing four-year agreement, the City pays a Golf Services Fee to the City Park Nine Golf Course Golf Pr n es ' ' e 4 0 in 2000. In 1997 when the agreement began, this fee wU43 d h e in as proximately 4% annually as per the original proposal. Staff nue r i e annu Golf Services Fee approximately 4%a annually through 2005, 2 of$5 6 and progressing appropriately. Sufficient funding has been budgeted in 2001, and is planned for 2002 through 2005 in the Golf Fund. EXECUTIVE SUMMARY: The existing agreement with City Park Nine Golf Course Golf Professional/Concessionaire Dale Smigelsky expires on December 31 2000. This four- ear a reement was entered into on February 20, 1997, after being awarde rou ues or ro P 06. As per Section 7.5 of the agreement(and noted in the docu t), "T ent be extended beyond the original four year term if performance atis c I s 'ect to Ci Council approval and negotiation of a mutually acceptable extension agreement." a ormance as been very satisfactory and staff has negotiated a mutually acceptable extension. The Golf Board took public comments on such a possible extension at its August 16 meeting,with no public opposition. The Golf Board then voted unanimously to encourage City Council to extend the agreement with Dale Smigelsky for 2001,with annual renewal options for the years 2002 through 2005. BACKGROUND: Since the inception of the Golf Fund in 1971 when Collindale Golf Course opened for play and the City took over the full operation, maintenance, and management of City Park Nine Golf Course from the Fort Collins Golf Association,City of Fort Collins employees have been fully responsible for all administration and maintenance functions at the three City-owned golf courses (SouthRidge Golf Course opened in 1984 and the City took over the daily operations from the Bucam DATE: October 17, 2000 2 ITEM NUMBER: 20 Corporation in 1991); and City staff has contracted with private sector golf professionals to manage the public golf services operations, and with private sector concessionaires to manage the restaurant/snack bar operations. These independent contractor PGA golf professionals provide management and supervision of the daily golf course operations, including the general management of play on the courses and driving range, course monitoring/ranger functions, rental of City-provided golf carts, golf lessons/instruction, golf club repair, tournament coordination, collection of fees and charges, and providing all employees necessary to facilitate the full and efficient use of the golf courses. The golf professional owns and sells golf merchandise and operates the driving range through an exclusive concession granted by the City ' 09pyed ine the golf professional also is granted a concession and is depe d snack bar food and beverage operations which includes the a of 3. The three contractual golf professionals at City Park Nine,Collindale,and SouthRidge;and the two contractual restaurant/snack bar concessionaires at Collindale and SouthRidge,each were awarded their agreements through a public, competitive request for proposals (RFP) process, and each one "bid" according to the specific circumstances of their site. At City Park Nine, the service fee that the City pays to the golf professional was submitted in the proposal. In addition,this proposal also included payments back to the City on proportional driving range profits and a set fee foedwhev era one n s T e proposal factors, as well as the background,experience,q and p ed an e nt implementation plans of each RFP submitter, are all consid oosi a actuT lf professional. In past years staff would either"bid"or negotiate the golf professionals'agreements every 2-5 years, which did not provide the incumbent golf professional with much security, nor did it allow for a positive continuity of course management. As independent contractors, the golf professionals are required to make a substantial investment in golf merchandise,as well as all of the normal expenses associated with being a small business operator. In the mid-1990's,the golf staff and the Golf Board recognized this fact as a potential deterrent to receiving top quality proposals. The Golf Division, Purchasing Division, and the City Attorney then worked together to develop a revised specification and RFP proposal package that could provide a form of longer-term security by offering what could amount to an agreement of up C o n h,broken down into up to two five-year segments of one-ye optiojob performance. In 1997,the first"five-year pluar" ped for Collindale Golf Course, and the contract was awarded to a new golf professional at that course which initially expires in 2001, but could be extended until 2006 if approved by Council next year. In 1997, staff also awarded a four-year agreement at City Park Nine to a new golf professional at that course which initially expires this year and is herein being requested to be extended until 2005. In 1998, a five- year agreement was awarded for services at SouthRidge to the incumbent golf professional. That contract was initially scheduled to expire in 2002, with potential extensions through 2007. As always, all potential extensions are dependent upon performance and other factors. DATE: October 17, 2000 3 ITEM NUMBER: 20 City Park Nine Request Dale Smigelsky, PGA, is the current contractual golf professional at City Park Nine Golf Course. Dale has performed very well in that capacity since 1997, and he has earned the opportunity to continue in that position for the maximum length of time allowed. The golfers at City Park Nine are very supportive of him,and 12 of them took time to send a-mails encouraging the City to extend his agreement. A letter was sent signed by several golfers also supporting Dale,and several positive comments were received at the Golf Board public input/comments meeting on August 16 at City Park Nine Golf Course. No negative comments were received. Also, all nine members of the Golf Board unanimously agreed, and the Board voted in support of extending the agreement with Dale Smigelsky at City Park Nine. Staff has negotiated a mutual) greeatb exten tt Dale igelsky, making several changes to the original agreement, whi b d adde to the agreement. These five changes are as follows: Term -- The term of the agreement shall be from January 1, 2001 through December 31,2001,with annual renewal options for the years 2002,2003,2004, and 2005; with no further extension contemplated at this time. Golf Services Fee -- In 2000, the golf services fee paid to Dale Smigelsky is $48,350; an increase f at a unt to ' to %is planned annually for each year fro 001 gh as r nditions of the original proposal submitte y Dale i 1997. ns th a will be paid$50,286 in 2001, increasing fr th nt ' s equent rs. Concession Fee--Dale will continue to pay the City$2,400 per year to conduct the limited food and beverage(including 3.2%beer)concession operation at City Park Nine, which represents roughly 12% of his gross sales. Driving Range Payments --Rather than continue to pay the City a percentage of driving range income that exceeds a base rate of$33,746 in 2000, which can be anything from zero to$5,000+depending on weather and course conditions,staff has agreed to accep a (Ond e pY, ews-ction toale of$2,000 per year through 2005, and abane Behavior/Standards o so coo is being added to all of the golf services agreements, which gives the City additional authority to terminate contracts due to personal behavior and standards of personal conduct requirements for individuals working for, or as, contractors. This will provide the City with the opportunity for immediate or early termination of an agreement for inappropriate personal conduct by the golf professional, or other concessionaire, as defined. All of the other elements of the existing agreement remain the same. DATE: October 17, 2000 4 ITEM NUMBER: 20 Surnma Section 8.186(a) requires contracts over five years in length to be approved by Council. Both the Golf Division staff and the Golf Board unanimously feel that Dale Smigelsky has performed very well as the contractual golf professional/concessionaire at City Park Nine Golf Course since 1997, and fully recommends that the Council approve this extension.