2007/07/25 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET PROJECT TITLE: 8 Management Agreement with Premier Consent COUNCIL BILL# Golf Centers,LLC for American X Action Originating Department Parks Legion and Walter E.Hall Golf First Reading Contact Person Paul Courses. Kaftanski Second Reading Phone Number 425-257-8335 Third Reading FOR AGENDA OF July 25,2007 Public Hearing Initialed by: Department Head CAA Council President ito Location Preceding Action Attachments Department(s) Approval American Legion and City Council Management Agreement Parks,Administration, Walter E. Hall Golf authorization on 1/3/07 Legal Courses to issue golf management request for proposals Expenditure Required $ Amount Budgeted $ Additional Required See text below See last paragraph in summary statement below DETAILED SUMMARY STATEMENT: Council authorized the issuance of a Request for Proposals on January 3, 2007 for golf course management services for American Legion Memorial and Walter E. Hall Golf Courses. Seven proposals were submitted. An evaluation committee, (staff, council and other municipal golf course managers), evaluated the proposals. Four proposers advanced to the interview phase of the process. They were 1) Premier Golf Centers, LLC; 2) Billy Casper Management; 3) OB Sports; and 4)Access Golf Management. The evaluation committee recommends that a golf management contract, effective October 1,2007,be awarded to Premier Golf Centers, LLC for the management of all Pro Shop operations and food and beverage services at American Legion Memorial and Walter E. Hall Golf Courses. The key elements of the agreement are as follows: 1)A projected annual savings of$200,000 per year in management costs; 2) a fixed management fee with a tiered growth incentive payment if/when the contractor meets growth profit thresholds; 3) contractor reimbursement by the City for all direct expenses approved in an annual business plan for the courses; 4) a five year term and up to a five year renewable option; and 5) a 30 day termination clause. For the balance of the 2007 budget year there is no change to the golf budget and expenses. The expense required in 2008 and subsequent years will be addressed during the annual City Council budget process. RECOMMENDATION (Exact action requested of Council): Authorize the Mayor to sign a Management Agreement with Premier Golf Centers, LLC for American Legion and Walter E.Hall Golf Courses. 75 C:\Documents and Settings\SuClark\T Mal Settings\Temporary Internet Files\OLK7D\GoltManagementContractPremier2007.doe