From
Gary Yakesch, Assistant Director of Parks Finance
Title
Purchase of golf merchandise for resale by Prairie Lakes Golf Course from Acushman Company (Titleist) in an amount not to exceed $60,000 for one year with up to four additional one-year periods cumulatively totaling approximately $300,000; purchase of catered meals offered for resale by Ruthe Jackson Center from Creative Cuisine in an annual amount not to exceed $400,000 for one year with up to four additional one-year periods cumulatively totaling approximately $2,000,000; authorize the City Manager to execute the renewal options so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Duane Strawn, Director of Parks, Arts and Recreation
Recommended Action
Approve
Analysis
Prairie Lakes Golf course provides a varied line of soft goods and hard goods, collectively merchandise, for both customers and members. The merchandise purchased by Prairie Lakes Golf Course is exclusively for subsequent retail resale; merchandise is priced according to prevailing market rates and costs are fully recovered at the time of resale.
Clients and guests of Ruthe Jackson Center select from varied menu options for their specific catering needs; the menu selected determines the preferred catering vendor. The catered meals offered for resale at Ruthe Jackson Center are procured only after the client selects a catered meal option and event deposits secured for the event. Catered menus are priced according to prevailing market rates and the costs are fully recovered at the time of the resale.
Local government code 252 provides an exemption from the competitive bid process when the goods purchased by a municipality are for subsequent retail sale by the municipality.
City Council authorization is required due to this expenditure surpassing $50,000. If approved, City staff will be authorized to make purchases of the specified goods/services for subsequent retail sales, as authorized by the Texas Local Government Code, so long as Council continues to appropriate funds and approve those future year's budgets for these resale items.
This item was presented to the Finance and Government Committee on October 13 for their review and recommendation to the City Council.
Financial Consideration
Resale expenses are recuperated during the subsequent retail sale. Funding is provided in the FY 2020/2021 Operating Budgets (314812 - 60380) for Golf and (351110 - 61115) for RJC. Funding for future fiscal years will be paid from that year's approved budgets so long as Council continues to appropriate funds and approve those future year's budgets for these resale items.