Submitted By: Julie Johnson
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Presentation By: Julie Johnson
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Department: Recreation and Parks
FORMAL TITLE:
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Second amendment to the Agreement for Management of the Fort King Tennis Center to incorporate a management services fee in an amount not to exceed $98,800
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Fort King Tennis Center (FKTC) is a fee-based, full-service tennis facility with a pro shop, 12 lighted soft-surfaced courts, and two lighted hard-surfaced courts. Services include court reservations, racquet repair, instruction, and youth and adult programs and events.
On July 8, 2019, the City issued Request for Proposals No. REC/190417 for the provision of management services for the FKTC. Three submittals were received and Jason Weiss Ventures, Inc., received the highest ranking. Staff negotiated a Services Agreement for Management of the Fort King Tennis Center (the “Agreement”) and Council approved its award on February 4, 2020, for a five-year term through January 31, 2025, with a single five-year renewal option. The renewal was executed through a First Amendment on November 2, 2024, extending the Agreement through January 31, 2030.
Under the agreement, Jason Weiss Ventures, Inc, is responsible for all operational costs, including labor, supplies, equipment, and utilities, except for certain capital costs and facility services provided by the City. In return, the contractor retains all facility revenues, with the exception that 50% of member revenues exceeding 190 memberships are shared with the City. Currently, there are 131 memberships and no revenue sharing occurs. No direct financial payments are exchanged between the City and Jason Weiss Ventures, Inc.
Since the execution of the original agreement, operational costs have significantly increased. Utility expenses have risen over 40%, and costs for court materials have doubled. Additionally, extreme weather events necessitate supplementary court maintenance and cause temporary facility closures, thus decreasing revenues. As a result, the current financial terms of the Agreement have become unsustainable for Jason Weiss Ventures, Inc.
FINDINGS AND CONCLUSIONS:
The current Agreement with Jason Weiss Ventures, Inc. is set to expire on January 31, 2030. Approval of a Second Amendment to the Agreement to include a management services fee will support operational management of the Fort King Tennis Center (FKTC) and allow the vendor to balance the costs of maintaining a high-quality facility with budgetary constraints.
A similar management services fee is currently incorporated in the Ocala Golf Club management agreement.
Staff recommends approval of the Second Amendment to provide for a management services fee payable to Jason Weiss Ventures, Inc. in monthly installments of $1,900 beginning October 1, 2025, through January 31, 2030.
FISCAL IMPACT:
Contract management of the FKTC yields substantial savings to the City. When the City first contracted tennis operations, the net savings were more than $90,000 a year. The current net savings are estimated to be more than $130,000 per year.
The City continues to be responsible for capital upkeep of assets. Additionally, the City’s obligation for routine maintenance support, as outlined in the contract, is estimated not to exceed $8,550 per year. The management services fee will increase the City’s financial obligation $22,800 per year for a total of $31,350 per year.
The Recreation and Parks department has adequate funds budgeted to cover these expenses.
Management Services Fee 001-021-120-572-57-34010
Grounds Maintenance 001-021-120-572-57-34010
Court Material 001-021-120-572-57-46010
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Amendment will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny