HomeMy WebLinkAboutAgenda Statement 1984/02/14 Item 8 COUNCIL AGENDA STATEMENT
Item 8
Meeting Date 2/14/84
ITEM TITLE: Resolution //, // Authorizing the negotiation of a
contract with American Golf Corporation for the lease/
management of the Chula Vista Municipal Golf Course
SUBMITTED BY: Director of Parks & Recrea i (4/5ths Vote: Yes No X )
REVIEWED BY: City Manager k4;;g '
Council, at the September 13, 1983 meeting, authorized the issuance of Request
for Proposals (RFP) for the possible lease/management of the Chula Vista
Municipal Golf Course. This authorization was the first step of a four-step
process that included:
a. Receiving and accepting all completed proposals on November 15, 1983.
b. Establishing a review board to determine if the applicants were qualified
to lease/manage the Chula Vista Golf Course.
The final step, negotiation of a contract, can now be taken if the City
Council authorizes the process to commence.
RECOMMENDATION: That Council concur with the recommendation of the Golf
Course Proposal Evaluation Board and the Park and Recreation Commission.
BOARDS/COMMISSIONS RECOMMENDATION: The Golf Course Evaluation Board/Park &
Recreation Commission recommend that if the Council determines to entertain a
lease/management arrangement, staff be directed to negotiate a contract with
American Golf Corporation. They further recommend that both groups be
involved in a final review of the negotiated term and conditions of the
proposed contract before any final consideration by the City Council.
DISCUSSION:
Request for Proposals was advertised in the San Diego Union and Chula Vista
Star News. Letters and postcards were also sent to individuals and companies
derived from a list from a previous RFP for leasing of a golf course in San
Francisco County and from names of interested parties on file in the Parks and
Recreation office.
On November 15, 1983, two proposals were received from:
1. American Golf and Tennis, 641 North Sepulveda Blvd., Los Angeles, CA 90049
2. Golf-R-Us, 2434 Southport Way, Suite F, National City, CA 92050
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Meeting Date 2/ 14/84
After receipt of the proposals, an Evaluation Committee was formed consisting
of a golf professional, Chula Vista Planning Commission, men' s and women' s
club representatives, City personnel, and Park and Recreation Commission
members. Those who particpated were:
Name Representing
Gene Asmus, Assistant City Manager City of Chula Vista
Gordon Grant, Director of Finance* City of Chula Vista
Paul Desrochers, Community Development Director City of Chula Vista
Ken Goldkamp, Senior Civil Engineer City of Chula Vista
Mrs. Pat Bone Chula Vista Women' s Club
James Hanson Chula Vista Men's Club
John Rudi Coronado Golf Professional
Ed Thornton Park and Recreation Commission
Tom Shipe Chula Vista Planning Commission
Robert Strahl Park and Recreation Commission
Dave Fleming Singing Hills Golf Course
Superintendent
*Replaced by Rene Franken upon December 31, 1983 retirement.
The board met on December 7, 1983 and again on January 20, 1984 to interview
the two respondents and evaluate their individual proposals. After the first
meeting, the Golf-R-Us proposal was removed from further consideration.
During the second meeting, the board interviewed the American Golf
representative in greater depth to clarify specific aspects of their
proposal. At the conclusion of the meeting, the Board unanimously voted to
recommend action that contract negotiations be undertaken with American Golf.
The Parks and Recreation Commission at their February 2, 1983, meeting
unanimously endorsed the recommendation of the Golf Course Evaluation
Committee.
American Golf Corporation' s home office is in Los Angeles, California. They
have been in the golf business since 1965 when they built their first course
adjacent to Los Angeles International Airport. Today, they own or operate,
some by similar lease agreement, 47 public and private golf facilities
throughout the United States. They are experienced, organized and trained in
all aspects of golf course management.
American Golf Corporation has generally agreed to the minimum acceptable terms
and specific improvements listed in the RFP (see Attachments A and B) . Those
improvements shown on Attachment B, if accomplished by the City, would cost
upwards to $2 million because the majority of this work would have to be
performed by outside contract. American Golf Corporation believes that they
could accomplish those capital improvements for substantially less money
because most of the work could be accomplished by their own work force.
There are two important areas that will require resolution during contract
negotiations. iv are:
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Meeting Date 2/14/84
1. Precise manner and cost to solve the drainage problems on the course.
2. Future of eight City employees presently assigned to the golf course.
American Golf Corporation has indicated these two points are not
insurmountable, but they would like to have the opportunity to propose
alternatives for consideration by the City. During contract negotiations
solutions that meet the expectations of both parties will have to be achieved.
American Golf Corporation does not foresee any problems with equestrians and
joggers continuing to use the equestrian/jogging trail that circles the golf
course. Rudy Hradecky, President of the Bonita Horseman's Association, was
contacted about the potential leasing and whether it would have any effect on
his organization's use of the equestrian/jogging trail. He indicated if the
City continues to maintain the trail, he could foresee no problems. Likewise
with the joggers, it would appear no objections would be voiced on the leasing
as long as the trail is maintained and continued to be available.
Agreement for the continued access to the equestrian/jogger trail by those
specific individuals can be included as part of the final negotiated contract,
with the City responsible for continued maintenance of the trail .
FISCAL IMPACT:
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ATTACHMENT A
Minimum Acceptance Terms
The City Council is interested in receiving proposals from innovative Managers
or Management firms who will Lease Manage the Chula Vista Golf Course. The
following minimum terms and conditions are considered essential in evaluating
viable proposals:
1. All possessory interest, utilities and operational expense, personal
property taxes, etc. must be the obligation of the Manager/Lessee.
2. All changes in fees, prices and Course policies will be subject to
approval of the City Council .
3. Maintenance performance standards will be required and subject to
approval of the City.
4. Offer discount rates to both Junior and Senior Resident Golfers.
5. An aggressive capital improvement program (see Page 4) scheduled
during years 1, 2 and 3 of proposed improvements.
6. Purchase at fair market value, for cash, all Golf Course personal
property and equipment.
7. Collect all monies, except those associated with the restaurant
operation, paid by users including but not limited to, green fees,
golf cart rental fees, driving range fees and pro shop income. Pay
all operating expenses including but not limited to, labor,
utilities, repairs and insurance.
8. An initial lease payment of at least $68,400 per annum in monthly
installments of $5,700 or 15% of gross green fees, golf cart fees,
driving range fees and 6% of gross income from pro shop, whichever is
greater.
9. Provide first right of refusal to current Golf Pro under contract to
City to continue as Golf Pro under terms of an agreement acceptable
to Lessee and Golf Pro.
10. Provide a certified PGA Class A golf professional at the course.
11. Maintain a Pro-Shop inventory of $37,000 or more wholesale.
12. Promote the Course expanding tournament play and retain the Chula
Vista City and the San Diego County Open.
13. Be receptive to annual review and discussion of past and future years
operations and management practices including establishment of
on-going needed capital improvements and improved maintenance
performance standards, if required.
14. Offer employment to all current golf course maintenance employees.
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8.
ATTACHMENT B
SPECIFIC IMPROVEMENTS
The City Council has determined the following capital and other improvements
are considered essential for a first class golf course facility:
1. A minimum of 50 self-propelled golf carts with a survey schedule at
3-years old.
2. Protective fencing on the westerly side of the existing driving range.
3. Renovation of restrooms.
4. Removal of foreign grass from greens.
5. Renovation of tees.
6. Renovation of irrigation system parts.
7. Proper signs, course furnishings and appropriate landscaping.
8. New trees. Minimum of 400 per year for three years; minimum size 15
gallon.
9. Construction of new bridges to withstand flooding at appropriate
locations.
10. Construction of storage bins to hold all bulk materials.
11. Construction of a channel similar in design concept provided under a
Golf Course Drainage Study completed in August 1980, by Boyle
Engineering providing a CFS capacity of 6,300 cubic feet per second.
12. Provide paved cart paths.
13. Expand No. 13 and No. 10 tees.
14. Expand culvert size by No. 10 tee to facilitate drainage.
15. Improve existing lateral drainage routes through the Golf Course to
the river channel in similar design concept of Golf Course Drainage
Study completed in August 1980, by Boyle Engineering.
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