Title
Golf Instruction Services (Ordinance S-46983)
Description
Request to authorize the City Manager, or his designee, to authorize the City Controller to disburse all funds related to the Parks and Recreation Board-approved Reid West, LLC Golf Instruction Services Contract. No General Funds will be used. Disbursements to Reid West, LLC, will be from the revenue generated from services performed under the terms of the agreement.
Report
Summary
On Sept. 24, 2020, the Parks and Recreation Board approved entering into a contract with Reid West, LLC, to provide golf instruction at the City's five municipal golf courses, for three years with two options to renew for one year each. Services under the contract will be provided at Aguila, Cave Creek, Encanto 9 and 18, and Palo Verde Golf Courses.
Procurement Information
A solicitation for golf instruction services was issued on Aug. 7, 2020, and one proposal was received from Reid West, LLC. An evaluation panel reviewed and scored the proposal based on the qualifications set forth in the Request for Proposals and recommended the award. The Parks and Recreation Board approved entering into the contract with Reid West, LLC, for 10 percent of the revenue earned for golf education opportunities offered by Reid West, LLC on City-owned golf courses. The City will collect all revenues incurred as a result of services performed under the contract and issue 90 percent of payment to Reid West, on a bi-weekly basis through invoicing from Reid West, LLC.
Financial Impact
Revenue earned from the services provided from Reid West, LLC, is anticipated to be approximately $750,000 over the life of the contract. The City will retain 10 percent of all revenue received, which is approximately $75,000; and pay 90 percent of all revenue received to Reid West, LLC, which is approximately $675,000.
No General Funds will be used. Disbursements to Reid West, LLC, will be from the revenue generated from services performed under the terms of the agreement.
Concurrence/Previous Council Action
The Parks and Recreation Board unanimously approved entering into this agreement at its Sept. 24, 2020 meeting.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Parks and Recreation Department.