Submitted By: Julie Johnson
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Presentation By: Julie Johnson
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Department: Recreation and Parks
STAFF RECOMMENDATION (Motion Ready):
title
Approve additional expenditures under the Agreement for Ocala Golf Club Management with Indigo Sports, LLC, in the amount of $390,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Ocala Golf Club is the City-owned 18-hole golf course. Amenities include a full-service pro shop, driving range, snack bar, and banquet facility.
Course conditions, specifically turf maintenance, are a priority for a golf course. Maintaining the intended course design preserves the integrity of the course. Consulting services provide knowledge, expertise, and strategic direction to address potential or existing problems. These services offer another level of protection for the City’s asset.
FINDINGS AND CONCLUSIONS:
On July 17, 2012, the City Council awarded the Agreement for Ocala Golf Club Management to Billy Casper Golf, LLC (the Original Agreement), Contract Number REC/12-011, for an initial term of five years with two optional five-year renewal terms. On January 1, 2021, Troon Golf, LLC purchased Antares Golf, LLC (formally known as Billy Casper Golf, LLC) and assumed all rights, interests, and obligations held by Anteres Golf, LLC under the Original Agreement. Troon Golf, LLC, legally changed its name to Indigo Sports, LLC (Indigo Sports) in September 2021. On July 12, 2022, City Council approved the Fourth Amendment to the Original Agreement effectively exercising the second and final renewal term with Indigo Sports under the Original Agreement.
Pursuant to the terms of the Agreement, Indigo Sports is required to provide day-to-day operations and management of the Ocala Golf Club, including employment of club personnel; supervision and management of club operations; identification of required equipment and maintenance needs; procurement of office supplies and operating equipment; development and implementation of marketing plans; and preparation of the Club’s Annual Operating Budget and Agronomic Plan. The Annual Operating Budget and Agronomic Plan are due to the City of Ocala annually no later than March 1st of each year and include itemizations of the Club’s anticipated operating expenses and labor burden; reasonable contingency and anticipated working capital requirements; recommended capital expenditures budget, policies and procedures outline; and the Agronomic Plan and Marketing Plan.
Subsequent to the City’s receipt of the Annual Operating Budget and Agronomic Plan for Fiscal Year 2024-2025, the parties have identified the need for additional capital improvements necessary to maintain the integrity and quality of the course. Due to the City’s need for these critical improvements, staff requests authorization to increase the contract expenditure threshold by an additional $390,000 to effectively cover the necessary capital improvements, thereby increasing the aggregate contract value from $511,777.54 to $901,777.54.
FISCAL IMPACT:
SOURCE:
001-099-999-513-81-99800 Reserve for Contingencies ($390,000)
425-381-000-000019-38101 Trf In - General Fund $390,000
USE:
001-099-999-513-81-91452 Trf In - Golf Fund $390,000
452-029-029-575-57-34010 Other Services - Total Expenses $390,000
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
The underlying agreement was reviewed and approved as to form and legality by former City Attorney, Pat Gilligan.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny