Title
Authorize Additional Funding to Golf Course Maintenance and Operation Contract (Ordinance S-49680)
Description
Request to authorize the City Manager, or his designee, to add additional funding to OB Sports Golf Management Contract 148918 for golf course maintenance and operations. Further request to authorize the City Controller to disburse all funds related to this item. The additional funding will not exceed $2.2 million.
Report
Summary
The City entered into a five-year maintenance and concessions contract with OB Sports Golf Management (OB Sports) in 2019. Within the normal scope of work, the contract includes basic daily maintenance of five City golf courses and three food and beverage concessions. Outsourcing the maintenance of the municipal golf courses and concessions has been a key component to providing the community with affordable golf opportunities.
The contract with OB Sports also identifies necessary infrastructure repairs the City is responsible for such as the replacement of irrigation pumps, fences and building mechanical equipment. Additionally, the City is required to maintain the concrete cart paths, sidewalks and large trees. Further, under the contract with OB Sports, the City may make capital improvements to enhance the golfing experience. These repairs and improvements are allowable under the contract but were not originally intended when the contract was executed. Therefore, funding was not allocated to the contract for these services that OB Sports has performed on behalf of the City.
While the contract contains a revenue generating concessions component and a capital investment requirement, the additional expenditures were required to maintain the golf courses.
Contract Term
The contract term is for five years starting Jan. 1, 2019 through Dec. 31, 2023, with an option to extend for three years, plus two additional one-year periods, for a total of 10 years which may be exercised by the City Manager or designee.
Financial Impact
The aggregate value for the initial five-year period will not exceed $18.9 million through Dec. 31, 2023. Funds are available in the Parks and Recreation Department's Golf Special Revenue Fund.
Concurrence/Previous Council Action
The City Council approved:
- Golf Course Maintenance and Operation Contract 148918 (Ordinance S-45113) on Nov. 7, 2018.
Location
Cave Creek Golf Course, 15202 N. 19th Ave.
Encanto 18 Golf Course, 2775 N. 15th Ave.
Encanto 9 Golf Course, 2300 N. 17th Ave.
Palo Verde Golf Course, 6215 N. 15th Ave.
Aguila Golf Course, 8440 S. 35th Ave.
Council Districts: 3, 4, 5 and 7
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Parks and Recreation Department.