From
Linda Townley
Title
Golf Franchise Agreement and Management Contract with Mark Viskozki, Golf Management, Inc. (MVGMI), in the amount of $275,000 for the Golf Franchise Agreement and $82,500 for the Golf Management Contract, and authorize City Manager to execute three one-year renewals
Presenter
Rick Herold, Director of Parks, Arts and Recreation
Recommended Action
Approve
Analysis
The Golf Franchise Agreement provides for management services with the golf shop and concession services at Tangle Ridge Golf Club. All revenues collected for green fee, cart fee, driving range and annual passes remain the property of the City of Grand Prairie under this agreement. The annual allocation of $275,000 is representative of overhead and fixed costs associated with the generation of these fees. A 1/12th of the annual amount will be advanced each month to MVGMI to pay for all associated costs; excess funds will be returned to the City by the 10th of the subsequent month.
In addition to the professional services provided for under the Golf Franchise Agreement, the Golf Management contract provides for professional management services at Tangle Ridge Golf Club to include management of the course, collection of fees, and operation of the driving range. The annual base compensation is $82,500 to be remitted to MVGMI in monthly installments.
Both the Golf Franchise Agreement and the Golf Management contract were awarded to MVGMI for a term of one (1) year, beginning October 1, 2012 and can be renewed for three (3) one year terms by mutual agreement and subject to municipal renewal requirements.
Financial Consideration
Funding for these professional services contracts will be as follows:
1. The adopted FY 2012/2013 Golf Operating Budget contains a $275,000 provision for the Golf Franchise Agreement; this amount is recorded in the chart of accounts as "Golf Contract" (314711-61345).
2. The adopted FY 2012/2013 Golf Operating Budget contains an $82,500 provisions for the Golf Management Contract; this amount is recorded in the chart of accounts as "Golf Professional Services" (314711-61340).