From
Gary Yakesch
Title
Award a management agreement to operate Tangle Ridge Golf Course to Mark Viskozki Golf Management Inc. for one (1) year with the option to renew for nine (9) additional one (1) year periods totaling $4,032,000 if all extensions are exercised and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the annual renewal terms.
Presenter
Rick Herold, Director of Parks, Arts, & Recreation
Recommended Action
Approve
Analysis
Notice of RFP #16139 requested proposals for the management and operation of Tangle Ridge Golf Course; 15 companies viewed the bid and a total of 3 submittals were received and opened on August 29, 2016. The award was based on best value criteria, set up in the specification, including base management fee, franchise percentage agreement, experience in public golf operations, references, marketing, and customer service. While Mark Viskozki Golf Management Inc was not the low bid, it was the best value as based on specifications outlined in the best value bid matrix. We have worked with Mark Viskozki Golf Management Inc for over 21 years at Tangle Ridge Golf Course and have been very well satisfied with the performance.
The management agreement has two primary components. The first component is the management fees for the operation of Tangle Ridge golf course to include an expense allocation for labor and expenditures in the pro shop and outside cart operations. The second component involves a franchise agreement for both the pro shop and concessions where the city will receive a percentage of revenues collected in those areas. With respect to Mark Viskozki Golf Management Inc. those fees will be 5% for Pro Shop and 8% for Concessions.
The award of the management agreement to operate Tangle Ridge Golf Course to Mark Viskozki Golf Management Inc was presented to and approved by the Finance and Government Committee on September 6, 2016.
Financial Consideration
Funds for the management agreement are available in the proposed FY 2016/2017 Golf Budget (314711). Funding for future fiscal years will be paid from that year's approved budgets.