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HomeMy WebLinkAbout12/1/2004 - STAFF REPORTS (12) DATE: December 1, 2004 TO: City Council FROM: Director, Department of Parks and Recreation CONTRACT SERVICE AGREEMENT WITH THE NATIONAL GOLF FOUNDATION(NGF) FOR GOLF COURSE CONSULTING SERVICES RECOMMENDATION: That City Council authorize the City Manager to enter into negotiations and execute an agreement with National Golf Foundation (NGF)to provide consulting services and conduct an operational audit and review of Tahquitz Creek Golf Resort for the City of Palm Springs. SUMMARY: Since construction of the Resort Course at Tahquitz Creek Golf Resort in 1994, the City of Palm Springs has maintained agreements with Arnold Palmer Golf Management Company (APGMC) for operation of both the Legends Course and the Resort Course properties. There are two distinct agreements in place, one being a Lease Agreement for the Legends Course and common areas and the other being a Management Agreement for the Resort Course at Tahquitz Creek. Staff is recommending that an operational audit be performed for both agreements. The cost of the audit as proposed will total $46,000, including expenses,with the City contributing $35,000 and APGMC generously contributing $11,000. BACKGROUND: Since 1994, revenues from both properties have yet to fully cover the cost of operations and debt service for the Golf Course Fund. Due to this ongoing deficit condition, staff is recommending that a comprehensive audit of operations be completed to fully evaluate golf course performance under both the Lease Agreement and Management Agreement with APGMC. In September of this year, staff developed a Request for Proposal (RFP) to provide consulting services to the City for a comprehensive audit of operations at Tahquitz Creek. The purpose for the RFP was to seek an impartial third party to examine the golf course operations and make informed recommendations for marketing and operational strategies with the intent of improving the overall performance on both courses. Eighteen firms were solicited and four responses were received. 2, t CONTRACT SERVICE AGREEMENT WITH THE NATIONAL GOLF FOUNDATION(NGF) FOR GOLF COURSE CONSULTING SERVICES DATE: December 1, 2004 PAGE: Two The Staff Selection Committee, comprised of the Assistant City Manager and the Directors of Finance, Procurement and Parks and Recreation, evaluated the responses and chose to interview the two firms having the most comprehensive proposals. The interviews were conducted on October 25 and the selection committee unanimously believes that NGF would be the best candidate to perform to the City's expectations. This decision is based upon (1) NGF's previous experience in performing similar audits throughout the nation; (2) its highly qualified team of experts; (3) its nonpartisan status and reputation within the industry; and (4) the quality and content of its proposed work program. Staff felt that there would be a significant value to APGMC financially participating in the audit due to the expected value of NGF's operational review, analysis and proposed marketing strategy. When approached about this possibility, APGMC agreed to this concept and will be participating in the program with financial assistance amounting to $11,000. This amount and the City's budgeted amount of $35,000 will allow us to contract with NGF for the full amount of its proposal without compromising the end result in any way. Funds have been budgeted and are available in the golf course operational accounts to cover the majority of the contract costs. The City will administer the contract and bill APGMC appropriately. Staff expects to execute an agreement within 45 days and have NGF team members begin their audit on or about February 1, 2005. COTT MIKESELL, Director Department of Parks and Recreation APPRO­VEDaw. City Manager ATTACHMENT: 1. Minute Order REVIEWED BY DEPI OF FINANCE PALM Sp -ti City of Palm Springs 0 V N * * Department of Procurement and Contracting a 3200 Tahquitz Canyon Way • Palm Springs,California 92262 cq41FUR�'IP TEL: (760)323-8239 • FAX(760)322-8372 • TDD(760)864-9527 August 17, 2004 TO: ALL PROSPECTIVE OFFERORS FROM: Harold E. Good, CPPO, Director, Department of Procurement and Contracting SUBJECT: Request For Proposals No. 01-05 for Golf Course Consulting Services The purpose of this correspondence and enclosed materials is to invite your firm to submit a proposal to the City of Palm Springs for providing Golf Course Consulting Services in accordance with the enclosed Request for Proposal. An original Proposal and four (4) copies of the complete proposal must be received in the PROCUREMENT OFFICE at 3200 East Tahquitz Canyon Way no later than Thursday, September 16, 2004, 4:00 P.M., local time. Proposals received without the required number of copies may be deemed non-responsive and may not receive further consideration. Envelopes must be clearly marked,"RFP 01-05 Proposal for Providing Golf Course Consulting Services". Further information may be obtained by calling the undersigned at (760) 323-8239. Sincerely, 111 QC._o HAROLD E. GOOD, CPPO Director Department of Procurement and Contracting Enclosures cc: Scott Mikesell, Director of Parks, Recreation and Golf \\Palmsprings_bdc\HDrive\USERS\WPPUBLIC\05 RFP\RFP 01-05 Golf Course Consulting 08-16-04.wpd August 17,2004(10:27am) -1- Post Office Box 2743 • Palm Springs, California 92263-2743 MINUTE ORDER NO. 7590 AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS AND EXECUTE AN AGREEMENT WITH NATIONAL GOLF FOUNDATION TO PROVIDE CONSULTING SERVICES AND CONDUCT AN OPERATIONAL AUDIT AND REVIEW OF TAHQUITZ CREEK GOLF RESORT FOR THE CITY OF PALM SPRINGS, WITH THE CITY CONTRIBUTING $35,000 AND ARNOLD PALMER GOLF MANAGEMENT COMPANY CONTRIBUTION $11,000, WITH A TOTAL COST OF $46,000. 1 HEREBY CERTIFY that this Minute Order, authorizing the City Manager to enter into negotiations and execute an agreement with National Golf Foundation to provide consulting services and conduct an operational audit and review of Tahquitz Creek Golf Resort for the City of Palm Springs, with the City contributing $35,000 and Arnold Palmer Golf Management Company contributing $11,000, with a total cost of $46,000, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 1 st day of December, 2004. KATHIE HART Acting City Clerk