HomeMy WebLinkAboutFCS-11-039 - Golf Professional ServicesREPORT TO:Committee of the Whole
DATE OF MEETING:
2011-03-07
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY:
Michelle Palmer, Buyer, 2216
WARD(S) INVOLVED: 4 and 9
DATE OF REPORT: 2011-02-14
REPORT NO.:
FCS-11-039
SUBJECT:
Golf Professional Services
RECOMMENDATION:
That Dave Roy, Orangeville, Ontario, be contracted for the provision of services of Golf
Professional at a negotiated cost of $151,000, plus H.S.T. of $19,630, for a total of $170,630,
for one (1) year, with an option to renew for three (3) additional one-year terms, and further that
the Mayor and City Clerk be authorized to execute an agreement satisfactory to the City
Solicitor.
BACKGROUND:
The City owns and operates two municipal golf courses, Rockway and Doon Valley under the
brand of Kitchener Golf. The City’s Strategic Direction for Golf is:
Provide affordable leisure time activity for its citizens
Focus on the skill development to encourage life long participation and enjoyment
Teach the game of golf to as many juniors and beginners as possible
Provide environmental stewardship and maintain golf green space at no cost to the
taxpayers.
Encourage healthy lifestyles and leisure access
Return a dividend to the City to make involvement in other leisure activities more
affordable
Keeping this strategic direction in mind, the City issued a request for proposals for the business
.
operations of the pro shops and related services at Rockway and Doon Valley Golf Courses
Requests for proposals were advertised publicly in The Record, on the City of Kitchener website
and through the Ontario Public Buyers Electronic Tendering Information System. Fifteen (15)
potential bidders downloaded proposal documents, and by the closing date of Wednesday,
th
January 5, 2011, two (2) proposals had been received. Upon review of the proposals, it was
determined that neither proposal met the mandatory requirements. One proponent had
proposed leasing the entire golf operation and one proponent had proposed that they become a
salaried employee of the City.
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REPORT:
In accordance with Chapter 170.8.1 of the Municipal Code pertaining to Purchase By
Negotiation “The Manager of Purchasing may, under one of the following conditions, purchase
by negotiating with one or more sources or bidders. Under the following cases the requirements
for inviting tenders and quotations may be waived: (f) all bids received failed to meet the
specifications and/or tender terms and conditions and it is impractical to recall tenders or formal
quotations.
The Enterprise Division contacted various known golf professionals and a Review Committee
consisting of K. Baulk, Director of Enterprise, K. Kugler, Manager of the Aud and Community
Arenas/ Interim Manager of Golf and M. Palmer, Buyer, met throughout January 2011 to
interview potential candidates. None of the interviewed candidates were proponents of the
original Request for Proposal. The golf professional of choice, Dave Roy, has provided intent
relative to signing the negotiated contract, once approved and executed by the Mayor and
Clerk.
The negotiated cost includes contributions towards staffing which will include $130,000. for
approximately ten pro shop staff, plus an upset $21,000. retainer for the golf pro covering a
period from April to November 2011. The golf pro also retains the net revenues from the pro
shop merchandise sales. The services provided by staff include booking tee times, collecting
cash, renting power carts, overseeing play on the course and operating the driving range at
Doon Valley Golf Club.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy
framework.
The City of Kitchener’s purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
Funding will be provided from 6510020 Doon Valley Golf Pro-shop and 6532020 Rockway Golf
Pro-shop as well as 651001 Doon Valley Golf Management Cost Allowance and 6532001
Rockway Golf Management Cost Allowance. The 2011 budgeted amount for professional
services and management costs is $138,695. The variance of $12,305. is a result
of lower projections for merchandise sales resulting in a requirement for a higher retainer. The
request for proposal for the food and beverage contract is more favourable than budgeted and
more than makes up the differential.
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COMMUNITY ENGAGEMENT:
Not Applicable
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
ACKNOWLEDGED BY:
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