Title
Golf Course Maintenance and Operation Contract (Ordinance S-45113)
Description
Request to authorize the City Manager, or his designee, to enter into a new contract with OB Sports Golf Management, LLC for maintenance of municipal golf courses at Aguila, Cave Creek, Encanto 18, Encanto 9, and Palo Verde; and to operate the Phoenix Golf Grills at Aguila, Cave Creek and Encanto 18 golf courses for the Parks and Recreation Department. Further request authorization for the City Controller to disburse all funds related to this item. The aggregate contract value for the initial five-year period will not exceed $16.7 million, with an estimated annual expenditure of $3.34 million.
Report
Summary
Outsourcing the maintenance of municipal golf courses and concessions has a been a key component to mitigating operational expenses at the courses. The Parks and Recreation Board approved outsourcing these services at its Dec. 13, 2012 meeting. The current contract for these services is scheduled to expire on Dec. 31, 2018.
The Parks and Recreation Department requested proposals from qualified firms to provide golf course maintenance services and concessions. The resulting professional services contract will contain a revenue-generating concessions component and a capital investment requirement.
Procurement Information
A Request for Proposals (RFP) was issued on Aug. 30, 2018, in accordance with Administrative Regulation 3.10, with responses due by Sept. 21, 2018. The RFP was sent to 25 golf management companies and advertised in the Arizona Republic, Arizona Informant and the Prensa Hispana newspapers for two consecutive weeks. The solicitation was also advertised on the City’s solicitation web page. Additionally, a pre-proposal conference was held on Sept. 6, 2018, and eight firms were in attendance.
One response was received by the RFP due date and evaluated per the terms of the RFP. OB Sports Golf Management, LLC was found to be responsive and responsible. An evaluation panel reviewed the response based on the following evaluation criteria listed in the RFP:
- Proposer’s Qualifications and Experience (400 points).
- Method of Approach (300 points).
- Price Proposal/Fee to the City (200 points).
- References (100 points).
Offerors were required to provide a detailed strategy and list the total capital improvements for the Phoenix Golf Grills. Best and final contract negotiations were performed with the responsive offeror.
Contract Term
The contract term will be for five years covering 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.
Financial Impact
The aggregate contract value for the initial five-year period will not exceed $16.7 million, with an estimated annual expenditure of $3.34 million. Funds are available in the Parks and Recreation Department's budget.
Location
Golf Courses: Cave Creek, 15202 N. 19th Ave.; Encanto 18, 2775 N. 15th Ave.; Encanto 9, 2300 N. 17th Ave.; Palo Verde, 6215 N. 15th Ave.; and Aguila, 8440 S. 35th Ave.
Council Districts: 3, 4, 5 and 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Parks and Recreation Department.