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. The initial term of the Agreement was a period of five years, through January 31, 2025, and offered a single five-year renewal term upon mutual consent of both parties. On November 2, 2024, the parties entered into a First Amendment to the Agreement to exercise the renewal option through January 31, 2030.
Jason Weiss Ventures, Inc, is responsible for all costs associated with the operation of the FKTC including labor, supplies, equipment, and utilities, with some exceptions related to capital costs and services provided under facilities maintenance. In exchange for the provision of these services, Jason Weiss Ventures, Inc., retains all revenues, except that 50 percent of member revenues over 190 memberships will be shared with the City (there are currently 131 memberships). Other than the possible membership revenue sharing, Jason Weiss Ventures, Inc. currently pays the City no money, nor does the City pay Jason Weiss Ventures, Inc. any money.
Operational costs have increased since the original agreement was signed, whereas revenues have remained unchanged. Utility costs have increased by 58 percent. The cost of labor has increased by more than 63 percent. Expenses associated with purchasing court material have doubled. Intense weather events necessitate supplementary court maintenance and cause facility closures, thus decreasing revenues. The Agreement terms related to expenses have become financially unsustainable for Jason Weiss Ventures, Inc.
FINDINGS AND CONCLUSIONS:
The Agreement is set to expire on January 31, 2030. Approving the Second Amendment to the Agreement to include a management services fee will support the cost of management operations of the FKTC and allow the vendor to balance the costs associated with a high-quality facility with the restraints of the budget. A similar management services fee is currently being utilized as part of 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