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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/20/2005 - FIRST READING OF ORDINANCE NO. 109, 2005, AUTHORIZ ITEM NUMBER: 15 AGENDA ITEM SUMMARY DATE: September 20, 2005 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Jerry P. Brown SUBJECT First Reading of Ordinance No. 109, 2005, Authorizing the Purchasing Agent to Enter into an Extension of the Golf Professional Services Agreement at SouthRidge Golf Course for up to Five Additional Years. RECOMMENDATION Staff and the Golf Board recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT Under the terms of the existing five-year Agreement,in 2005 the City Golf Fund is paying a bidded Golf Services Fee to the SouthRidge Golf Course contractual Golf Professional of$64,343. In 2001 when the Agreement began, the Golf Services Fee was $55,000. In the original bid, the Golf Services Fee payment was to be increased by 4 percent annually through 2005,which has been done. For the Agreement Extension, staff and the contractual Golf Professional have mutually agreed to continue this pattern of annual 4 percent Service Fee increases through 2010, starting with a payment from the City of$66,912 in 2006,and adding 4 percent annually through 2010. Sufficient funding has been included in the proposed Golf Fund budgets for 2006 and 2007, and is planned at this time for 2008 through 2010. EXECUTIVE SUMMARY The existing Agreement with SouthRidge Golf Professional Dale W. Smigelsky, PGA, expires on December 31,2005. This five-year Agreement was entered into on December 19,2000,after being awarded through Request For Proposal (RFP) # P-777. As stated in both the RFP documents and the Agreement, "...This Agreement may be extended beyond the original five (5) year term if performance is satisfactory and subject to City Council approval and negotiation of a mutually acceptable extension agreement". The performance of Mr. Smigelsky has been excellent; and he has done everything necessary to make the agreement successful and has done so in the best interest of the City. Mr. Smigelsky was able to bring stability to SouthRidge and was able to restore SouthRidge operations to a high quality level in a short period of time. During his five-year tenure,he has improved upon every aspect of golf services at SouthRidge, and has expressed a desire for further improvement over the next five years. Staff has negotiated a mutually acceptable annual extension agreement from 2006 through 2010 with Mr. Smigelsky with the same terms and conditions of the original agreement. The City Code requires contracts over five years in length to be approved by Council. September 20, 2005 -2- Item No. 15 The Golf Board met on July 20, 2005, to discuss consideration of extending the term of the agreement,and after much discussion voted unanimously(7-0)to approve the concept of extending the agreement. The Board held a well-advertised Public Input Meeting on August 17, 2005, and received no public opposition and only positive public comments to extend the agreement. The Golf Board voted unanimously(8-0) to recommend to City Council to extend the Agreement with Dale W. Smigelsky for up to five additional one-year renewable periods through December 31, 2010. ATTACHMENTS 1. Golf Board Meeting Minutes of August 17, 2005 2. Golf Board Meeting Minutes of July 20, 2005 ATTACHMENT City of Fort Collins Cultural,Library, and Recreational Services Golf Board Minutes: Regular Meeting of August 17, 2005 Council Liaison to the Board: Councilmember Diggs Brown Staff Support to the Board: Jerry P. Brown, Manager of Golf at 221-6350, and Dawn Worth, Administrative Aide at 416-2265 Call Meeting to Order: Board Chairperson David Johnson called the meeting to order at 7:30 p.m. at the SouthRidge Cart Building. Agenda Review: There were no changes to the agenda as printed. Items of Note: ♦ Jerry reminded the Board that Larry Buckendorf and David Johnson's terms expire in December and they both stated at last month's meeting that they were going to reapply. ♦ Jerry introduced the City's Purchasing and Risk Management Director Jim O'Neill. He explained that Jim is ultimately the one responsible for the golf professional contractual process and he is the one who signs the agreement with the City. ♦ Larry Buckendorf arrived at 7:50 p.m. Approval of Minutes: Grant Sherwood suggested that a change be made to the draft Minutes on page 4, top paragraph, last sentence, clarifying that the Golf Fund transfers $120,000 yearly to the General Fund for overhead. The Board unanimously agreed that the change be made. Then, on a motion by Grant Sherwood, seconded by Lauren DeRosa, the Board unanimously (8:0) approved the Minutes of the July 20, 2005 Regular Meeting, as corrected. Citizen Participation: None Consideration of Extending the Term of the Agreement with the SouthRidge Golf Professional Gordan Michael feels that the atmosphere at SouthRidge has changed since Dale has taken over and he has done a great job despite all of the construction that has taken place around the course. Fred Frantz, a member of the SouthRidge Men's Golf Association, stated that we are very fortunate to have Dale and that all three golf professionals and their staff s are great. Collindale Golf Professional Jim Greer stated that he fully supports Dale. He has known Dale for many years and he respects him and the way he handles his Golf Board Minutes August 17,2005 Page 2 business. In his opinion Dale is a great player and he's one of the best in this State, even in this Region, and it's neat to see his name in newspapers. He feels Dale has really turned things around since the previous Golf Professional left. Jerry mentioned to the Board that he received 18 a-mails supporting the extension of Dale's agreement. City Park Nine Golf Professional David McCleave feels Dale does a great job and that there can't possibly be anyone that can do better. SouthRidge Concessionaire Rob Dahl feels that Dale runs an honest, clean business and that we are getting a tremendous value with Dale. SouthRidge Superintendent Randy Bonneville feels Dale and his staff has done a fine job, however he's concerned about the Service Fee increase. With the wage freeze the City has implemented employees have not received an increase in pay since 2002 and Randy stated that he has had to make a number of cuts in his budget. He feels that this increase would be unfair to the maintenance staff. Jerry informed the Board that he had a discussion with the CLRS Director Marty Heffernan in regards to this. He mentioned to Marty that Jim O'Neill suggested potentially using the CPI which would be an annual calculated increase rather than a set percentage increase. Jerry and Marty both feel that we should honor the original bidded commitment. Jerry stated that the investment we make in our Pro Shop is important because they are our front line of our business. He doesn't look at the Service Fee we pay the Golf Professional the same as wages because that money isn't just going directly into Dale's pocket. He has to pay for his staff, benefits, and his merchandise sales are going down, and driving range sales have also gone down. David Johnson said that he feels we couldn't easily replace Dale. Shane Houska mentioned that Dale puts in a lot of hours and we should abide by our commitment. Jay Kammerzell suggested that we extend Dale's agreement and feels we should consider implementing a website for Pro Shop sales. Jerry mentioned to the Board that they still have a month to decide if they would like to extend Dale's agreement, or they can vote tonight. David Johnson said that we haven't heard anything negative so he suggested a vote tonight. Jay Kammerzell then made a motion to extend Dale's agreement including the 4% annual increase. The motion was seconded by —�! Deron Grothe and approved unanimously (8:0). Dale then offered to give half of his annual increase for maintenance purposes and he thanked the Board for their confidence in him. Other Business ♦ Jerry stated that he recently received an e-mail from Shane Houska after the Chamber of Commerce cancelled their tournament at Collindale. The Chamber stated they didn't have enough players and some felt that the course is too hard. Jerry gave them the option to take their tournament elsewhere and they chose to do so. Jerry mentioned that Shane suggested we do some brainstorming to discuss ways to bring in more revenue, etc. Jerry feels that's a good idea, and said the market in golf has changed dramatically. He explained that for about 15 years golf was doing very well and there wasn't as much competition. Even though golf was doing well many national organizations were pushing it to grow even more, and they were also encouraging developers to build more courses. In 1990 The National Golf Foundation started a project to hopefully open a new golf course everyday for a year. They •? 4� _ C�j M o A Otit .y N � �I � O .�.� � � � ti 7 •� � vNi cl E m O kr) 0 0 v00 x O O a bOA u H ram.., GAG U � oo 0 CIL N00 al k U C O � Oc� � 'Q, � � •Y a � .d .ti V �° o o w w 2 bOA v HC� r-) E � � � � Golf Board Minutes ATTACHMENT 2 —�July 20,2005 Page 2 Consideration of Extending the Term of the Agreement with the SouthRidge Golf Professional Jerry stated that SouthRidge Golf Professional Dale Smigelsky's Agreement expires December 31, 2005, and since there are some new Board Members he explained the process. He informed them that all of the Golf Professionals are bided concessionaires and when there's an opening we hold an RFP (Request for Proposal). There are then five people who serve on a committee, including two appointed Golf Board Members who review all of the proposals. Jerry said that if the Board chooses not to extend Dale's Agreement then we will go out for another RFP. He explained the Agreement states that at the end of the five year term both parties can continue the Agreement or terminate it. He stated that the Golf Board was closely involved with the original selection of Dale. If the Board chooses to continue the process then the next step will be the Public Input Meeting. The meeting will be advertised in the paper and held in the SouthRidge Cart Building. During the meeting the Board will hear comments and they can then choose to extend or terminate the Agreement. Jerry stated that we need to have a vote by September because it takes about three months to complete the RFP process. City Council has to approve the Agreement extension and there will be additional negotiation. Jerry stated that he feels Dale has done a good job and he mentioned to the Board that he has already received some comments. Deron Grothe sent Jerry an e-mail stating his support. Kathy Bohmont from the Collindale Women's Association also telephoned stating her support. Jim O'Neill from Purchasing expressed his concern with the increase of Service Fees due to the City's budget issues. Jerry mentioned to the Board that they didn't have to make their recommendation about the fees until the final recommendation. Larry Buckendorf stated that he has played at SouthRidge for the past tens years and he has seen a number of improvements since Dale has been there. He recommended to the Board that they extend his agreement and approve the payment increase and move on to the next step. David Johnson mentioned that he met Dale when he was employed as a Golf Professional and he knows how well Dale's thought of by other professionals throughout the State. He feels that he has been doing a great job and he also supports moving forward to Public Input. Lauren DeRosa said that the Board should go on with the process and see what the public has to say. She stated that she feels Dale's a wonderful golf professional and business man. Shane Houska stated that when he has played at SouthRidge Dale makes himself visible. Jay Kammerzell is a member of the SouthRidge Men's League and he feels Dale does what he can to help make the league happy and he fully supports the extension of Dale's agreement. Grant Sherwood said by Dale's reputation and word of mouth he feels he's doing a good job. He asked Dale if there is any hesitation signing a new Agreement? Dale admitted that he was a little hesitant because he feels that he has given so much of himself. He stated that last year he worked just under 2,800 hours. He does everything he can to bring as much play as possible. He also recruits new leagues and tournaments. He mentioned that he has gotten back some tournaments that went elsewhere. Golf Board Minutes July 20,2005 Page 3 He said that he is a competitive golfer and he has given a lot of that up for the sake of the job. He isn't practicing and playing as much as he should and when he does he stated that he feels guilty doing so. He expressed the importance of his job, but he feels that he needs to maybe give a little less of himself. He assured the Board that he would do as good of a job as he has been and he commented on the competence of his employees. He would like to go forward, but he feels that he just needs to alter what he does. As far as the increase in fees goes he feels that it's just that much more important to have someone who knows what they are doing to help bring in more revenue when we're having budget issues. He said that Loveland recently hired someone who wasn't as qualified and their sales are down. He understands Jim O'Neill's concern, but he feels Jim isn't taking into consideration all of the costs that have gone up. For example, his health insurance, which he pays for, has gone up, and shop sales have gone down, and also the driving range is much slower. He stated that he has lost money over the last 3 years because his expenses keep going up. Collindale Golf Professional Jim Greer stated that he feels Dale has done a great job and he is respected by his peers. Jay asked how the fees compare to the salary of other City employees? Jerry stated that all City employees haven't received an increase since 2002. Larry stated that this is a service fee not a salary fee and that a 4% increase isn't unreasonable. Larry Buckendorf then made a motion to approve the extension of the ---� Agreement as written by Jerry, including the 4% annual increase, and to move forward to the Public Meeting. The motion was seconded by Shane Houska and approved unanimously, (7:0). Jerry mentioned that the Public Meeting will be held on August 17th at 7:30 p.m. in the SouthRidge Cart Building. Review Proposed 2006/2007 Golf Fund Budget Jerry reminded the Board that the City has changed the way we are submitting the budget. The budgeting process is called BFO (Budgeting for Outcomes) and it is a fairly new process nation wide. What it means is that your revenues are fixed and you have to keep your expenditures within them. It seems simple, but the City has been growing and our revenue isn't as strong as it used to be and our community is still facing some major challenges. He commented on the Golf budget request that he provided to the Board that showed what he submitted to the Cultural, Recreation and Educational Opportunities (CRE) Results Team. He stated that every program in the City was asked to submit a request proposal to their results team. This is a system that allows City Council to look at all City programs and prioritize them. There's going to be some significant changes in the programs that the City has to offer simply because there's going to be some proposals that fall below the lines. What is going to happen is that the City will fund the programs that they can and cut the ones they can't, perhaps some programs that the private sector can offer. The City Manager's Recommended Budget is due to City Council Sept. 6th and that's when it becomes a public document. City Council will then hold public meetings and get input. By Nov. 30th City Council has to adopt a budget. They don't have to approve the budget that they are given by the City Manager and can make changes they feel are necessary. ORDINANCE NO. 109, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN EXTENSION OF THE GOLF PROFESSIONAL SERVICES AGREEMENT AT SOUTHRIDGE GOLF COURSE FOR UP TO FIVE ADDITIONAL YEARS WHEREAS,the Purchasing Agent has determined that Dale W.Smigelsky,PGA,the current contractor providing golf professional services at SouthRidge 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 Services Agreement (the "Agreement"); and WHEREAS, the Purchasing Agent has further determined that in order to continue with the delivery of high quality golf professional services to the public at SouthRidge Golf Course, the extension of the Agreement for up to five additional one-year terms, without a new competitive process for such services, is advisable and would maintain the continuity and provide golf professional stability in the delivery of those services; and WHEREAS, the original 2000 competitive process for the golf professional services at SouthRidge Golf Course and the Agreement contemplated possible extension of the Agreement for up to five additional years beyond the original one-year plus four 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, 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 Golf Board reviewed the proposed extension described herein at its July 20, 2005,and August 17,2005,regular meetings,and after receiving only positive and supportive public comments, voted unanimously to recommend and encourage 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 W. Smigelsky, PGA, for Golf Professional Services at SouthRidge Golf Course, dated December 19, 2000, for the year 2006, with annual renewal options for the years 2007 through 2010, or a potential total term of ten (10) years. Introduced, considered favorably on first reading, and ordered published this 20th day of September, A.D. 2005, and to be presented for final passage on the 4th day of October, A.D. 2005. Mayor ATTEST: City Clerk Passed and adopted on final reading this 4th day of October, A.D. 2005. Mayor ATTEST: City Clerk