9.3. SR 07-18-2016
Request for Action
To Item Number
Mayor and City Council 9.3
Agenda Section Meeting Date Prepared by
July 18, 2016
Work Session
Michael Hecker, Parks and Recreation Director
Item Description Reviewed by
Pinewood Golf Course Request for Proposal
Cal Portner, City Administrator
Reviewed by
Tim Sevcik, Park Superintendent
Action Requested
Discussion and City Council direction.
Background/Discussion
Since the city purchased the Pinewood Golf Course in April, two City Council work sessions have been
held to discuss the direction of Pinewood.
At the June 6, work session, Council expressed consensus for staff to develop an RFP for the operation
of the Pinewood Golf Course through a management contract, lease or combination thereof; and
proposals for the purchase of Pinewood with a deed restriction that it shall be operated as a golf course
for a minimum of five years.
The Council should review the RFP and provide staff direction for the advertised proposal.
Financial Impact
N/A
Attachments
Pinewood Golf Course RFP
Request for Proposals (RFP)
Pinewood Golf Course
Section 1: General Information
Contract Administration
All correspondence regarding this Request for Proposal (RFP) must be directed to:
Michael Hecker
Parks and Recreation Director
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
MHecker@ElkRiverMN.gov
All questions must be received before 4:00 p.m. on Monday, August xx, 2016. Questions received after
that time will not receive a response.
Proposals will be accepted until 4:00 p.m. on Friday, August xx, 2016.
Please submit five (5) hard copies and one (1) PDF copy of your firm’s proposal.
All persons or companies whom download this RFP are requested to register their name and email address
by sending an email to MHecker@ElkRiverMN.gov. Any revisions to or corrections on this RFP, after it
has been advertised, will be communicated to those registered RFP holders. Failure to register your
contact information as described is at your own risk. A proposal will not be considered if it fails to include
all requested information as detailed in this original RFP and any subsequent modifications.
Acceptance of Proposal Contents
The contents of this RFP and attached information provided to the proposer will be included as part of
the contractual obligations if a contract ensues. All information in the proposal is subject to disclosure
under the provisions of Minnesota Statutes Chapter 13 – Minnesota Government Data Practices Act.
Proposal Timeline
Submission of proposals XXxx, 2016 by 4:00 p.m.
Consultant approved by City Council September xx, 2016
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Project Overview
The City of Elk River requests proposals from responsible firms and teams for the operation of the
Pinewood Golf Course through a management contract, lease, or combination thereof and proposals for
the purchase of the Golf Course. Pinewood Golf Course consists of a nine (9) hole executive course with
a small 1,700 square feet clubhouse and a pole barn maintenance building.
The city is willing to entertain the sale of Pinewood as part of a lease-ownership proposal or an outright
sale. Any such sale shall require a deed restriction requiring that Pinewood shall be operated as a golf
course for a minimum of five years.
Respondents shall outline their proposed terms as it relates to the type of agreement being sought (i.e.
lease, purchase agreement or management contract). Final terms will be negotiated with the successful
respondent(s). Purchase agreements will only be entertained for the entire golf course and that it continue
to be operated as a golf course for a minimum of five seasons from 2017 to 2021.
Respondents submitting proposals shall at a minimum include the following in their responses:
1.Letter of interest describing legal composition of the entity;
2.Marketing strategy;
3.Business plan to include:
a.Description of the business from an ownership, organizational, historical and structural
perspective;
b.Number of proposed full time and part time employees by position title, educational
experience to be required to qualify for each type of position and anticipated salary range;
c.Expected market for its product and its marketing plan;
d.Management plan, including operational and financial issues;
e.Projected schedule; and
f.Critical risks and perceived problems or obstacles.
4.Resumes of key management staff;
5.Maintenance plan and capital improvement plan overview;
6.Three (3) verifiable references;
7.Profit and loss statement as well as balance sheet from the most recent complete year of operation
for existing businesses or a financial plan (cash flow pro forma) with proof of financial capacity for
new ventures;
8.State if a purchase agreement, management contract or lease is desired;
9.Managerial fee structure, license fee, lease amount and/or revenue sharing proposal; and
10.Monthly contribution toward applicable utilities, including water, electricity and alarm systems (for
lease responses only).
Respondents submitting proposals for the purchase of the Golf Course shall at a minimum include the
following in their responses:
1.Purchase amount;
2.Terms of payment.
The intent of this request is to obtain the services of a Golf Course operations and/or management firm,
herein(after referred to as the “firm” to perform services to operate, lease or purchase the Pinewood Golf
Course hereinafter referred to “course” for the City of Elk River, Minnesota, hereinafter referred to as the
“city.”
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Section 2: Background
City Profile
The City of Elk River is the county seat of Sherburne County, Minnesota located about 34 miles northwest
of Minneapolis. It is situated at the confluence of the Mississippi and Elk Rivers. The 2015 population is
approximately 24,000.
With 41 parks and recreation facilities and over 1,000 acres of parkland, the city has a strong commitment
to parks and recreation for residents and visitors alike. Through the city passes the Great Northern Trail
(north/south) and the Mississippi River Trail which connects Lake Itasca to the Gulf Coast. Residents
also have access to some of the best cross country skiing and mountain biking trails in the Minneapolis-St.
Paul metropolitan area.
Because parks and recreation facilities are essential to the city’s identity and to the quality of life for
residents, a strategic approach to protecting and cultivating these assets for the future is vital. The strategic
approach that the city has recently taken is the Parks and Recreation Master Plan, adopted by City Council
in June of 2015. The Master Plan is intended to provide direction for the City Council, the Parks and
Recreation Commission, and city staff to guide them in strategic decision making that will impact the parks
and recreation system. Whether allocating resources for maintenance, building a trail, installing a
playground, protecting riverfront land, or developing the next season’s recreation program offerings, the
plan offers guidance.
Pinewood Golf Course Profile
The Master Plan made little reference to the Golf Course because during the master planning process
(2014-15), it was not open to the public. Through the planning process, some residents expressed a strong
desire to retain golf as part of the city’s recreation offerings (Master Plan page 23). Resident desires to
retain the course include providing an affordable golf option; supporting new golfers with a learning
course; ensuring family-friendly activities that appeal to all ages.
Pinewood Golf Course lies on the westerly border of the city. The course is a nine-hole executive length
course on approximately 27-acres of land. Course length ranges from 1,497 to 1,832 yards with a par of
30.
The city purchased the course from the original owner 2005 and operated Pinewood Golf Course from
2006 to 2013. The average number of rounds for each year of operations is estimated around 10,000. A
majority of the users were seniors and youth drawn from the local market. The season was typically from
April to October. The city operations included a full-time Golf Course Superintendent and seasonal staff
to maintain the course and clubhouse at a quality level.
The course was closed for the 2014 and ensuing golf season and maintained in a minimal maintenance
state with the intention that it could be returned to service in a minimum amount of time.
Elk River City Council decided in April of 2016 that city personnel will not operate the golf course and
expressed consensus in June of 2016 to seek a responsible firm to manage the golf operations, lease the
course for operations or purchase the course with the intent of operating as a golf course.
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The clubhouse consisting of approximately 1,700 square feet serves as an adequate facility. The city last
made interior improvements in 2011. The facility does have some maintenance issues, including potential
water and mold issues since it was shut down for three summers. A golf check-in area with counter and
snack sales occupies the front section of the building with a small area for tables and chairs. Two (2) small
restrooms, men’s and women’s, are towards the rear from the counter area and are not handicapped
accessible.
Only packaged food was permitted for presale during its years of operations since the facility does not
have a kitchen/ concession operation. The course does not have a driving range
A pole barn of approximately 1,350 square feet has served adequately as a maintenance facility. No
specialized facility exists for either gasoline storage or pesticide storage. The irrigation water source is
adequate with the overall system supplied directly by a well and pump system.
Pinewood Golf Course had approximately 9,766 rounds of golf during its last year of operations in 2013.
Pass Sales and Fees for 2013 – Appendix A
Financial Statements for 2013 and 2012 – Appendix B
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Section 3: Proposals
The proposal shall contain the type of information summarized below. Additional information is
allowable, providing it is directly relevant to the proposed project. The submittal should follow the labeled
sections below as follows.
Section 1 – Company biography and other relevant information: Provide a brief company history
including date founded, number of employees, company headquarters location and operating locations,
and past projects and accomplishments.
Section 2 – Experience, past performance and capacity: Provide a description of experience, past
performance, and capacity to deliver the proposed services and experience in management and operation
of municipal or other golf facilities.
Section 3 – Business plan: Describe in detail your proposed operations plan to include all of the
components of the Course. Include hours/days of operation, proposed fees, number of employees, and
job functions. Proposer may or may not include food service as part of the proposal. If food service is
NOT included, describe the type of concessions to be provided. Include any major programs or services
you intend to provide, as well as any participation in community events.
Section 4 – Maintenance: Describe in detail your overall maintenance program for the course. Provide
a clear understanding of your maintenance strengths and any other unique qualities of the proposal.
Specify how your plan will incorporate the maintenance standards listed in Appendix C. Identify whether
you will provide your own equipment (and include a list), the City’s equipment (see Appendix D) or a
combination of the two and how equipment will be financed (if necessary). If you plan to use the city’s
equipment, describe in detail your proposed lease program and payment(s).
Section 5 – Capital improvements: Describe in detail your proposed plan for addressing capital
improvements. Include a list of proposed improvements, their cost, and a timeline for implementation.
Note that any and all improvements to the course will be subject to the city approval.
Section 6 – Financial terms: Describe in detail how you will structure a lease and/or management fees
with the city, including revenue sharing, if applicable. Provide financial statements and tax returns for the
past three (3) fiscal years. Please note that the final contract will require the submittal of financial reports,
terms to be negotiated, but at a minimum, semi-annually.
Section 7 - Litigation: Provide documentation regarding any current/pending litigation and any litigation
settled or disposed within the past five (5) years against the firm, including its parent, sister, or subsidiary
companies and proposed subcontractors.
Section 8 – Purchase Agreement, if Applicable. Any purchase agreement shall require a deed
restriction requiring that Pinewood shall be operated as a golf course for a minimum of five golf seasons
from 2017 to 2021 and during this time it shall be maintained at the maintenance standards outlined in
Appendix C. Include the purchase amount and proposed terms of payment. Final purchase terms will be
negotiated with the successful respondent(s).
Section 9 – References: Provide three references from similar municipalities, organizations, and/or
entities with which the Firm has provided similar services.
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Section 5: Consultant Selection
Proposals will be reviewed and evaluated by city staff and based on the following criteria:
1.Background and experience in operating a golf course.
2.Proposed terms of agreement being sought that includes a management contract, lease, purchase
agreement or a combination thereof.
3.Length of terms of the management contract and/or lease (should a lease term be outlined?)
4.Understanding of maintenance standards and use of equipment.
5.Organizational structure and staffing levels.
6.Business Plan.
7.Proposed capital improvements to the course and their costs.
Following review of the proposals, selected firms may be asked to make oral presentations of their
proposals and upon conclusion of the presentations one firm will be selected to negotiate a contract as
follows:
1.If for any reason, a firm is not able to commence the services in that firm’s proposal within 30 days
of the award, the city reserves the right to contract with another qualified firm.
2.The city shall not be liable for any expenses incurred by the consultant prior to the signing of a
contract including, but not limited to, the proposal preparation, attendance at interviews, and/or
final contract negotiations.
3.The proposal must be signed in ink by an official authorized to bind the consultant to its
provisions that will be included as part of an eventual contract. The proposal must include a
statement as to the period during which the proposal remains valid. This period must be at least
90 days from the date of the submittal.
4.The city reserves the right to reject any and all proposals or to request additional information from
any or all of the proposing firms.
Section 6: Contract Terms and Conditions
Upon selection of a consultant, an agreement or Contract for Services shall be entered into by the city and
the firm. The standard city contract is attached. It is expected that the contract will provide for
compensation for actual work completed on a not to exceed basis, with the following conditions.
1.Deletions of specific components, such as individual project meetings, will be at the discretion of
the city. Payment or reimbursement shall be made based on actual tasks completed on the project
plus necessary subcontractor work (as applicable) and out-of-pocket expenses. Billing that exceeds
the not to exceed amount will not be compensated unless a contract extension has been approved
in advance by the City Council.
2.The city shall retain ownership of all documents, plans, maps, reports, and data prepared under this
proposal. In addition to being provided hard copies and digital documents throughout the project,
the consultant shall supply the city with a fully-scanned (Laserfiche) project file upon completion.
3.If, for any reason, the firm is unable to fulfill the obligations under the contract in a timely and
proper manner, the city reserves the right to terminate the contract by written notice. In this
event, the firm shall be entitled to just and equitable compensation for any satisfactory work
completed to that point at the discretion of the Parks and Recreation Director.
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4.The firm shall not assign or transfer any interest in the contract without prior written consent of
the city.
5.The firm shall maintain comprehensive general liability insurance in accordance with Section
466.04 of the Minnesota Statutes.
6.The firm shall defend, indemnify and hold harmless the City of Elk River, its officials, employees
and agents, from any and all claims, causes of action, lawsuits, damages, losses or expenses,
including attorney fees, arising out of or resulting from the firm’s (including its officials, agents,
sub consultants or employees) performance of the duties required under the contract, provided
that any such claim, damages, loss, or expense is attributable to bodily injury, sickness, diseases or
death or injury to or destruction of property including the loss of use resulting therefrom and is
caused in whole or in part by any negligent act or omission or willful misconduct of firm.
7.The firm contract shall be governed by the laws of the State of Minnesota.
8.Project summaries shall be submitted with each invoice during the course of the project. Each
summary shall detail the amount billed to date, outstanding work items with costs to completion,
and timelines. Invoices submitted to the city shall include a detailed breakdown of all chargeable
items for that period.
Section 7: Appendix
Appendix A – 2012 and 2013 Financial Statements
Appendix B – 2013 Pass Sales and Fees (still working on final format)
Appendix C – General Maintenance Standards
Appendix D – Pinewood Equipment List
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APPENDIX B
FINANCIAL STATEMENTS - 2012
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APPENDIX B
FINANCIAL STATEMENTS - 2012
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APPENDIX B
FINANCIAL STATEMENTS - 2013
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APPENDIX B
FINANCIAL STATEMENTS - 2013
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APPENDIX C
GENERAL MAINTENANCE STANDARDS
1) Greens:
a)Mowing: Greens and practice putting greens shall be mowed with frequency according to weather
and conditions. Two to three times per week at minimum.
b)Top-dress all greens and practice greens as needed to maintain a smooth surface.
c)Fertilization: All greens and practice putting greens shall be fertilized in order to maintain color
and growth. High potassium application in Spring to encourage root gestation. Nitrogen
application every two weeks through summer.
d)Weed Control: All greens and practice putting greens shall be maintained to minimize foreign
grasses and weeds.
e)Aerification: All greens and practice greens shall be aerified as required by wear factors and/or
weather.
2) Tees (all areas used for tee surfaces):
a)Mowing: Tees shall be mowed as determined by growth and/or weather.
b)Top-dress: All tees shall be top-dressed as necessary to fill divots and level tee surfaces.
c)Weed Control: All tees shall be maintained to minimize foreign grasses and weeds.
d)Fertilization: All tees shall be fertilized in order to maintain growth and color.
e)Airification: All tees shall be aerified as required by wear factors and/or weather.
3) Fairways
a)Mowing: Fairways shall be mowed as determined by growth and/or weather.
b)Aerification: All fairways shall be aerified at a minimum of once per year and as required by wear
factors and/or weather.
c)Weed Control: All fairways shall be maintained to minimize foreign grasses and weeds.
4) Irrigation:
a)The golf courses shall be irrigated as necessary to support proper growth of the golf course.
b)Damaged irrigation lines, heads and other equipment shall be repaired utilizing like equipment.
c)Irrigation winterization shall be conducted annually prior to the first frost to prevent damage to
equipment
5) Edging:
a)All edges of sidewalks, porches and cart paths must be kept. Edging of valve boxes, meter boxes,
shall be done as needed to make sure that there is no obstruction of play from growth.
7) Landscaping:
a)Current landscaping shall be maintained in a manner which enhances the overall aesthetics of the
courses.
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8) Clubhouses and Buildings:
a)Restrooms: All restrooms shall be maintained in a manner so as to provide a clean and sanitary
facility for public use. Soap and paper towels shall be provided in adequate quantities at all times
b)General Maintenance: Maintenance and repair all structural areas and fixtures of all buildings as
needed to insure proper function and good appearance
c)Carpets must be vacuumed on a daily basis.
d)Clubhouse and maintenance facilities shall be winterized annually to prevent damage to waterlines.
9) Trash and Debris Removal:
a)Trash and Debris removal shall be on a daily bases and at the firm expenses.
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APPENDIX D
PINEWOOD EQUIPMENT LIST
Pinewood Equipment Assets
Unit
# Equipment Type Year Purchase Value
785P Cushman Classic Turf Truckster $13,000
Club Car Utility Cart $12,000
784P Toro Groundmaster 3500D 2006 $31,385
782P Toro Reelmaster 5200D 2006 $35,200
781P Toro Workman 2110 2006 $9,975
783P Toro Greensmaster 3150 2006 $26,645
786P Toro Greensmaster 3150 2011 $27,765
EZ Go Golf Cart (12 carts) 2006 $42,480
Toro Greens Aerator $4,000
Lely Fertilizer Sprayer $5,000
Smithco Sprayer $1,000
Total $207,450
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