HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/17/2000 - FIRST READING OF ORDINANCE NO. 144, 2000, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 20
FORT COLLINS CITY COUNCIL DATE: October 17, 2000
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 recommend adoption of the Ordinance 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 Professional/Concessionaire of$48,350 in 2000. In 1997 when the
agreement began, this fee was $43,000 and has been increased approximately 4% annually as per
the original proposal. Staff plans to continue raising the annual Golf Services Fee approximately
4% annually through 2005, starting in 2001 with a fee of$50,286 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-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. 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 Bucain
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 in the agreement, and at City Park Nine the golf professional also
is granted a concession and is independently licensed for the limited snack bar food and beverage
operations which includes the sale of 3.2% beer.
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 for food/beverage concession sales. These proposal factors, as well as
the background,experience,qualifications,and proposed management implementation plans of each
RFP submitter, are all considered when choosing a contractual golf 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 to a maximum of ten(10)years in length,broken down into up to two
five-year segments of one-year renewable options, all predicated on job performance.
In 1997,the first"five-year plus five-year"RFP package was developed 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 20
ITEM NUMBER:
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
icontinue 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
1 Park Nine Golf Course. No negative comments were received. Also, all nine members of the Golf
I Board unanimously agreed, and the Board voted in support of extending the agreement with Dale
Smigelsky at City Park Nine.
i
Staff has negotiated a mutually agreeable extension with Dale Smigelsky, making several changes
to the original agreement, which will be added as an addendum 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 from that amount of approximately 4% is planned annually
for each year from 2001 through 2005, as per the conditions of the original
proposal submitted by Dale in 1997. That means that he will be paid$50,286 in
2001, increasing from that amount in subsequent years.
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$33,746 in 2000, which can be
anything from zero to$S,OOO+depending on weather and course conditions,staff
has agreed to accept an annual guaranteed payment from Dale of$2,000 per year
through 2005, and to abandon the percentage formula.
f; Behavior/Standards of Personal Conduct Section--A new section 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
`i< I concessionaire, as defined.
[il
All of the other elements of the existing agreement remain the same.
s{ •
DATE: October 17, 2000 4 ITEM NUMBER: 20
Summary
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.
ORDINANCE NO. 144, 2000
• OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN EXTENSION
OF THE GOLF PROFESSIONAI/CONCESSIONAIRE AGREEMENT
FOR CITY PARK NINE GOLF COURSE
WHEREAS, Section 8-186(a)of the City Code requires that any contract for services with
a potential total term over five years in length be authorized by Council by ordinance; and
WHEREAS, the Purchasing Agent has determined that Dale Smigelsky, the current
contractor providing golf professional and concession services at City Park Nine Golf Course,has
performed those services well and to the satisfaction of the City and the general public over the
course of the existing Golf Professional/Concession Services Agreement (the "Agreement'); and
WHEREAS,the Purchasing Agent has further determined that in order to continue with the
delivery of high quality golf profession and concession services to the public at City Park Nine Golf
Course, the extension of the Agreement for up to an additional five one-year terms, without a new
competitive process for such services, is advisable and would further avoid increased costs in the
delivery of those services; and
WHEREAS, the original competitive process for the golf professional/concession services
at City Park Nine Golf Course and the Agreement contemplated possible extension of the Agreement
• beyond the original one year plus three one-year renewals, based on the expectation that a longer
term arrangement for those services would enable proposers to offer more desirable services to the
City at a more advantageous rate than without such longer term potential; and
WHEREAS,the Golf Board reviewed the proposed extension described herein at its August
16, 2000, regular meeting, and voted unanimously to encourage the City Council to authorize such
an extension.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Council hereby authorizes,pursuant to City Code Section 8-186(a),the extension
of the Agreement between the City and Dale Smigelsky for golf professional and concession services
at City Park Nine Golf Course, dated February 20, 1997, for the year 2001, with annual renewal
options for the years 2002 through 2005, or a potential total term of nine (9) years.
Introduced, considered favorably on first reading, and ordered published this 17th day of
October,A.D. 2000, and to be presented for final passage on the 7th day of November,A.D. 2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of November, A.D. 2000.
Mayor
ATTEST:
City Clerk
Golf Board Minutes
August 16,2000
Page 2
all of these could have a significant impact on City finances, and in turn have an impact to the
Golf Fund and our future fees and charges schedule.
Public Input on Extending the Term of the Agreement of the City Park Nine Golf
Professional/Concessionaire
Mike Sanders said that Dale Smigelsky has been the Golf Professional at City Park Nine since
1997 with a clause to extend his Agreement to 2005. Our options are to extend the Agreement
with modifications or go out to bid for a new contract. The Board has received 12 E-mails and
one letter in favor of extending Dale's Agreement. Also, Citizen Jean Haggard said the Ladies
Association at City Park Nine really enjoys working with Dale.
On a motion by Bill Rutledge seconded by Byrd Curtis, the Board voted unanimously (7-0) to
engourage the City Council to extend City Park Nine Golf Professional D 1P Smigelsky's
Agreement to 2005 with the modifications as previously stated in last month's minutes. Mike
said that on behalf of the Board, we all feel that Dale has done a great job. Dale thanked the
Board for their support and said he looks forward to extending his Agreement with the City.
Karen Joslin-Aured said that it is great to have such favorable comments from the citizens for
one of our contractual golf professionals in the City. Mike said he would like Dale to extend the
thanks to his great staff for their support and hard work.
Other Business
. Jerry has had discussions with members of the Collindale's Women's Golf Association about
having the City taking over the organization of the City's 18-hole Women's Tournament.
They (Collindale Women's Golf Association) will discuss this change for the City to take
over the tournament. Bill Rutledge asked if there is an age limit for the Women's City
tournament? Collindale's Golf Professional Jim Greer said the age is 18 and over, unless
declared juniors are in the championship flight. Henry Fry said that the City has always run
the Men's City Tournament and it would only make sense to have the Golf Pros run the
Women's City tournament. Jerry explained that one of this year's participants was very
upset with certain aspects of the tournament at SouthRidge. SouthRidge Golf Professional
Derek Cordova said that one of the problems was that this one individual wanted to close the
course for only 29 participants. Derek said there wasn't anyway he was going to close the
course for 29 participants and he filled the remaining times with green fee golfers.
Bill Rutledge made a motion that if requested by the ladies, that our City staff would take
over the Women's 18-Hole City Tournament on a trial basis, and if they like the wav the
City runs it, then we will continue. We want to run it exactly as the same as the men's. The
motion was seconded by Henry Fry, and passed unanimous (7-0).
• Staff has been working on a first draft of a new clubhouse design at Collindale. Collindale
Concessionaire Nevin Wilcox and Collindale Golf Professional Jim Greer have put this
. preliminary design on pacer to start. Kevin said they looked at some other clubhouses and
PUBLIC INPUT REQUESTED
®WEDNESDAY, AUGUST 16, 7 :30 P.M.
1 City Park Nine Golf Course Golf
city_ Professional / Concessionaire
Performance Review & Potential Agreement Extension
The Golf Board will hold a public input meeting
regarding the performance of the City Park Nine Golf
Professional / Concessionaire on Wednesday, August
16, 2000 at 7:30 p.m. (following public input on
proposed 2001 golf fees and charges) at the City Park
Nine Golf Course Clubhouse, 411 S. Bryan Avenue.
The existing agreement at City Park Nine Golf Course with contrac-
tual Golf Professional / Concessionaire Dale Smigelsky, PGA, expires
on December 31 , 2000. This agreement was entered into on
February 20, 1997 after being awarded through Request for
Proposal #P-606. The agreement may be extended annually
beyond the original four-year term until December 31 , 2005 if
performance is satisfactory, subject to public input and negotiations.
If you cannot attend the meeting, you may send written
comments no later than 5 p.m. on August 16 to:
E-mail:jpbrown@ci.fort-collins.co.us
Fax: "City Park Nine Golf Pro/Concessionaire" at 221 -6586
Mail: Golf Division, 281 N. College Avenue, Fort Collins, CO 80524
City of Fort Collins
. Cultural, Library, and Recreational Services
Golf Board Minutes
Minutes: Regular Meeting of July 19, 2000
City Council Liaison to the Board: Councilman Bill Bertschy
Staff Support to the Board: Jerry P. Brown, Manager of Golf, at 221.6350, and Jackie Rael,
Executive Administrative Assistant.
Call Meeting to Order: Chairperson Mike Sanders called the meeting to order at 7:30 p.m.
Agenda Review: No changes to the printed agenda.
Items of Note: Board Member Tom White called to say he would not be able to attend tonight's
meeting.
Approval of Minutes: On a motion by Byrd Curtis, seconded by Henry Fry, the Board voted
unanimously (6-0) to approve the minutes of the Regular Meeting of June 21, 2000. Note:
Brian Cobb and Karen Joslin-Aured joined the meeting after the minutes were approved.
Citizen Participation: No citizen participation.
Consider Extending the Term of the Agreement of the City Park Nine Golf
—� Professional/Concessionaire
Manager of Golf Jerry P. Brown referred to the memo he sent to the Board regarding the
extension of the Golf Professional/Concessionaire Agreement with Dale Smigelsky at City Park
Nine. Jerry save some background that in the mid-90's we were able to reword the golf
professionals potential length of term in the contractual bid process. When we requested RFPs
for City Park Nine, the golf professional that was awarded the contract knew at that time that the
agreement could be extended for up to five more years. Dale Smigelsky's Agreement will expire
December 31, 2000. Jerry reviewed the terms of the Agreement. Dale and Jerry met and
mutually agreed on an extension of His agreement for up to five years through December 31,
2005. Jerry outlined the other three changes to the original Agreement as follows:
Section 8.2 Golf Service Fee - In _000 the City will pay Dale Smigelsky a fee of$48,150. In
1997. this fee was S4J.000, which Has been increased annually per the original proposal by
approximately four (4) percent per year. We have agreed to continue to increase his fee by the
same four (4) percent annually through 2005. starting in 2001 with a fee of $50,286 and
progressing appropriately.
• Section 8.3 Concession Fee - Currentiv Dale pays the City $2,400 per year to conduct the
concession operations (food and beverages, including 3.2 beer). We agreed to keep this amount
the same for each vear through 2005. which is approximately 12 percent of gross annually.
Golf Board Minutes
July 19 2000
Page 2
Section 8.5 Driving Range Payments - As per his original proposal, Dale currently pays the City
50 percent of all income generated by the Driving Range exceeding $33,746 during 2000. Dale
has proposed, and we have agreed, to accept an annual guaranteed payment of$2,000 per year
through 2005 rather than utilize the original percentage formula. The reason for this change is
that the original RFP #P-606 provided potential bidders with poor quality historic information
regarding prior Driving Range profits. The average was under $30,000 gross per year. As a
consequence, Dale has paid us much more money over the last four years than we both expected.
This was not really fair to Dale, so we are trying to adjust this in the extension agreement. The
Driving Range generally now averages over $40,000 per year gross, which was not what we
provided in the original RFP.
All other elements of the existing Agreement remain the same, except updating the inventory
lists of City and Golf Pro owned personal property.
Jerry said in his opinion, Dale Smigelsky has performed very well since 1997, and he fully
deserves the opportunity to continue his contract for the maximum length of time the City
allows. He further added that one of the senior golfer came to his office and gave him a letter
signed by several other golfers stating they think the City should extend Dale's contract (copy of
letter in the Board's packets).
Jerry is asking for the Board's input tonight. Bill Rutledge made a motion for staff to proceed to
extend Dale Smigelsky's Golf Professional/Concessionaire Agreement at City Park Nine. The
motion was seconded by Byrd Curtis. Mike Sanders said that some citizens might ask the
following questions: Is there only one five-year extension? Jerry replied, yes. Mike further
asked if there is a 4 percent increase in salary and the rate of inflation is approximately 3-1/2
percent annually, was there any discussion about raising the concession fee accordingly? Jerry
said yes, but he feels we should continue with the originally bid amounts for annual increases.
Dale said that golfer traffic has gotten much heavier and therefore, the revenue for the golf
course has increased. Jerry said that if this Board wants to make any changes to the contract we
could discuss that at next month's meeting. Dale has also given the Golf Fund an extra $600 a
year for sand and seed for the Driving Range. Jerry explained that next month's meeting at City
Park Nine will be a public input meeting and if there are golfers who agree or disagree with the
Board and staffs recommendation to extend Dale's contract, they can speak at that meeting. The
Board then voted unanimously (8-0) for staff to go forth on Dale Smigelsky's Golf �—
Professional/Concessionaire Agreement extension for the next five years.
Update on Golf Capital Improvement Projects
Jerry stated we are in the process of starting all the projects as we discussed last month.
SouthRidge: The restrooms will take longer since we need to obtain sewer easements and get
taps. Bill Rutledge asked where they will be located? Jerry said they will be located at 45 and
#14. Eventually we could also have one close to =7 as there will be a trail connection east of='
and the trail proiect :ould install the restroom. We will also construct five rain shelters. He
explained the most difficult project is the SouthRidge basement and clubhouseipatio extension.
We wiil be our own contractor on this proiect. The basement will be expanded for golf cart
storage and the ratio above it will be expanded. Craig Foreman. Civil EngineeriPark Planning