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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2011 - FIRST READING OF ORDINANCE NO.147, 2011, AUTHORIZIDATE: November 1, 2011 STAFF: Jim O’Neill JR Schnelzer AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 16 SUBJECT First Reading of Ordinance No.147, 2011, Authorizing the Purchasing Agent to Enter into an Amendment and Extension of the Golf Professional Services Agreement for Collindale Golf Course for up to Five Additional Years. EXECUTIVE SUMMARY This Ordinance will authorize the extension of the existing agreement with Collindale Golf Course contractual Golf Professional Dale Smigelsky. BACKGROUND / DISCUSSION The existing Agreement with Collindale Golf Course contractual Golf Professional Dale Smigelsky, PGA, expires on December 31, 2011. The existing five-year Agreement was entered into on January 1, 2006, with Jim Greer, and was assumed by Dale Smigelsky on January 1, 2009. From 2001 through 2008, Mr. Smigelsky was the Golf Professional at SouthRidge Golf Course. Mr. Smigelsky assumed Jim Greer’s contract as the Head Professional at Collindale on January 1, 2009. As stated in 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 very satisfactory during the term, and staff has negotiated a mutually acceptable extension to the Agreement. FINANCIAL / ECONOMIC IMPACTS As payment for performance of Golf Services, the City shall pay to Contractor the sum of $46,155 for the year 2012. The fee will be adjusted on an annual basis by the Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office. In addition, in January of each year, commencing in 2013, the City will pay the Contractor a lump sum bonus amount not to exceed 3%, based on the year to year increases in Golf Course revenue, minus any increase due to fee increases. The new base for comparison to the next year will be the prior year’s gross amount including any fee increases. All fees and other income received through the operation of the pro shop, the sale of merchandise, locker/storage rentals, golf lessons/instructions, tournament service fees, golf club repair, the rental of equipment owned by the Contractor, and shall be retained by Contractor. All fees and other revenue derived annually from the use or operation of the driving range shall be dived as follows: 15% of gross revenue to the City and 85% to the Contractor. This payment will be made on a monthly basis to the City. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its September 21, 2011, meeting, the Golf Board discussed the renewal of the contract with Dale Smigelsky as the Collindale Golf Professional. November 1, 2011 -2- ITEM 16 The Golf Board took public input/comments on the proposed extension at its October 19, 2011 meeting and received no public opposition and only positive and supportive comments to extend the Agreement. The Golf Board then voted unanimously to recommend that City Council extend the Agreement with Dale Smigelsky for up to five (5) additional one-year renewal periods through December 31, 2016. The City Code requires contracts over five years in length to be approved by Council. PUBLIC OUTREACH A public meeting was held at City Park Nine Golf Course on October 19, 2011. ATTACHMENTS 1. Golf Board minutes, September 21 and October 19, 2011. ORDINANCE NO. 147, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AMENDMENT AND EXTENSION OF THE GOLF PROFESSIONAL SERVICES AGREEMENT FOR COLLINDALE 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 Collindale Golf Course, has performed those services well and to the satisfaction of the City and the general public under 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 Collindale 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 competitive process for the golf professional services at Collindale Golf Course and the Agreement contemplated possible extension of the Agreement for up to five additional years beyond the original one-year term 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 City Council by Ordinance; and WHEREAS, in addition to extending the term, the Agreement will also be amended to include a provision that provides for a 3% bonus to the contractor based on year-over-year increases in fee revenue generated by increases in the number of paying users of the golf facility; and WHEREAS, the Golf Board reviewed the proposed extension described herein at its September 21, 2011 regular meeting, 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 City 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 Collindale Golf Course for the year 2012, amended as described above, with annual renewal options through 2016. Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2011, and to be presented for final passage on the 15th day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk