Item Number: 37
City Council / Board of Directors
Written Communications
Meeting of: August 20, 2024
Submitted By:
Donna Meester, Director of Community Services
Subject:
Award of Professional Services Provider Agreement with Sierra Golf Management, Inc. for Professional Management Services for the Green Tree Golf Course Recommendation:
That the Honorable City Council award a Professional Services Provider Agreement with Sierra Golf Management, Inc. in the amount not to exceed $2,948,951 for professional management services, including operations and maintenance, of the Green Tree Golf Course for five years, commencing on September 1, 2024, through August 31, 2029 (Project JM24-089).
Fiscal Impact:
The recommended action will result in a total fiscal impact of $2,948,951 over the term of five years in the amounts listed below. Although the agreement indicates expenses in the amount of $567,607.00 for the first fiscal year (July 1, 2024 – June 30, 2025), since the agreement will commence on September 1, 2024, the first fiscal year will actually result in expenses in the amount of $473,005.83 for the 10 months of services.
Year Amount
FY 2024-2025 $473,005.83
FY 2025-2026 $578,479.00
FY 2026-2027 $589,568.00
FY 2027-2028 $600,880.00
FY 2028-2029 $612,417.00
Funds for this expenditure have been appropriated in the Fiscal Year 2024-2025 budget under account code 1003100P-52300. No additional appropriations are necessary. 3 6
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Strategic Plan Goal:
This item aligns with Strategic Goal E: Invest in Infrastructure to create a healthy and livable community by maintaining the City’s assets as well as Strategic Goal F:
Communication and Outreach through providing activities and opportunities for positive interaction within the community.
Background:
The City Council previously approved Professional Services Provider Agreements with Sierra Golf Management (SGM) to manage the Green Tree Golf Course. For the last 10 years, SGM has improved and maintained the physical and aesthetics of the golf course, all while maintaining efficient, professional, and positive operations. Since the original agreement was executed on June 30, 2014, four amendments have been approved by both parties, with the most recent extending the term of the agreement from July 1, 2024, through August 31, 2024. This extension was approved to allow the City to issue a new Request for Proposals (RFP) for management of the Green Tree Golf Course. The City determined that the Green Tree Golf Course services should be solicited through a new RFP because the original scope had changed significantly. Over the last 10 years, the clubhouse shifted to a restaurant and will now become the new City Library. This RFP ensures a competitive cost to professionally manage the course, Pro Shop, and rescoped concessions.
On April 10, 2024, the City issued a RFP for private management, operation, and maintenance of the Green Tree Golf Course. The RFP was posted on the City’s website, advertised on Ebidboards.com, and published in the newspaper. On May 1, 2024, the City of Victorville received two proposals from Sierra Golf Management and Donovan Bros Golf. A committee comprised of City staff thoroughly reviewed each proposal and identified Sierra Golf Management as the best value bidder, pursuant to Victorville Municipal Code Section 2.28.040. While Donovan Bros Golf had a lower overall cost for the five-year term of $2,902,126, staff has determined that Sierra Golf Management’s bid of $2,948,951 is the best value per Victorville Municipal Code Section 2.28.280(a) which states that the lowest cost may not be the sole factor in deciding who shall be awarded the contract. It may be in the City’s interest to award the contract to a firm based on the scope of services available, unique skills, staffing levels, timing, prior experience, past working relationships, or other factors. As Sierra Golf Management has managed the Green Tree Golf Course over the last 10 years, staff has determined that their experience qualifies them as the best value bidder.
Discussion:
The Green Golf Course is an 18-hole, par 72, championship course. It includes 70,000 square feet of greens, 100,000 square feet of tee boxes, 12 acres of fairways, 68 acres of irrigation rough, 39,245 square feet of bunkers, 144,355 square feet of cart pathway, and a total of approximately 156 acres. The Pro Shop is an additional 1,192 square feet.
The course provides for approximately 15,000 rounds of golf play per year, operating year-round, sunrise to sunset as weather permits. The scope of work for this agreement 3 6
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includes operations, management, and maintenance of the entire course, the Pro Shop, and concessions.
SGM continues marketing the golf course to retain and attract new players to the Green Tree Golf Course. In addition to a variety of programs geared toward the youth, such as Junior Golf Lessons and Junior Rates, SGM continues exploring new ideas for enhancing the use of the golf course. Furthermore, SGM collaborated with the City on identifying the space needs of the Pro Shop for the future City Library.
Staff recommends that the City Council award a Professional Services Provider Agreement for Professional Management Services including operations and maintenance of the Green Tree Golf Course.
Staff remains available for any questions the Council may have.
Attachments: A. Professional Services Agreement
B. Sierra Golf Management, Inc. Proposal