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4. SR 04-27-2016
EOty1� ,.,�� Request for Action River To Item Number Mayor and City Council 4. Agenda Section Meeting Date Prepared by Special Meeting July 27, 2016 Jessica Miller, Executive Secretary/Deputy City Clerk Item Description Reviewed by Pinewood Golf Course Request for Proposal— continued from July 18, 2016 Reviewed by Action Requested Discussion and City Council direction. Background/Discussion This item was continued from the July 18, 2016, City Council meeting. Financial Impact N/A Attachments ■ July 18, 2016, Staff Report POWERED 6T Template Updoted 4/14 INAWRE1 Request for Action To ItemNumber Mayorand CityCouncil 9.3 AgendaSection MeetingDate Prepared byJuly18, 2016WorkSession MichaelHecker, ParksandRecreationDirector ItemDescription ReviewedbyPinewoodGolfCourseRequestforProposalCalPortner, City Administrator Reviewedby TimSevcik, Park Superintendent ActionRequested Discussion andCityCouncil direction. Background/Discussion Sincethecitypurchased the Pinewood GolfCourseinApril, twoCity Councilworksessions havebeen heldtodiscussthedirection ofPinewood. AttheJune6, worksession, Council expressed consensus for stafftodevelopanRFPfor theoperation ofthePinewood GolfCourse through amanagement contract, leaseorcombination thereof; and proposalsforthepurchaseofPinewoodwithadeed restrictionthatitshallbeoperatedasagolfcourse foraminimumoffiveyears. TheCouncil shouldreview theRFPandprovidestaffdirection fortheadvertisedproposal. FinancialImpact N/A Attachments PinewoodGolfCourse RFP Request forProposals (RFP) Pinewood GolfCourse Section1: GeneralInformation ContractAdministration AllcorrespondenceregardingthisRequestforProposal (RFP) mustbedirectedto: MichaelHecker Parks and RecreationDirector CityofElkRiver 13065Orono Parkway ElkRiver, MN 55330 MHecker@ElkRiverMN.gov Allquestions must bereceived before4:00p.m. onMonday, Augustxx, 2016. Questions received after thattime willnotreceive aresponse. Proposals willbeaccepted until4:00p.m. onFriday, Augustxx, 2016. Please submitfive (5) hardcopies andone (1) PDFcopyofyourfirm’sproposal. Allpersonsorcompanieswhom download thisRFParerequestedtoregistertheirname andemailaddress bysending anemailtoMHecker@ElkRiverMN.gov. Anyrevisionstoorcorrections onthisRFP, afterit hasbeen advertised, willbecommunicated tothoseregistered RFPholders. Failuretoregister your contactinformation asdescribed is atyourownrisk. Aproposal willnotbeconsideredif itfailstoinclude allrequestedinformation asdetailedinthisoriginalRFPandanysubsequent modifications. AcceptanceofProposalContents Thecontentsof thisRFPandattachedinformation providedto theproposerwillbeincluded aspartof thecontractualobligations ifacontractensues. Allinformation intheproposalis subjecttodisclosure undertheprovisionsofMinnesotaStatutes Chapter 13 – MinnesotaGovernment DataPracticesAct. Proposal Timeline Submission ofproposals XXxx, 2016by4:00p.m. Consultantapproved byCityCouncil Septemberxx, 2016 PlansandSpecifications PinewoodGolfCourse Page2of14 ProjectOverview TheCityofElkRiverrequests proposalsfromresponsible firms andteams fortheoperationof the PinewoodGolfCoursethrough amanagementcontract, lease, or combinationthereofandproposals for thepurchase oftheGolfCourse. PinewoodGolfCourseconsistsofanine (9) holeexecutive coursewith asmall 1,700 squarefeetclubhouse andapolebarnmaintenancebuilding. Thecity iswillingtoentertain thesale ofPinewoodaspartofalease-ownershipproposaloranoutright sale. Anysuchsaleshallrequireadeedrestrictionrequiring thatPinewoodshallbeoperatedas agolf courseforaminimumoffiveyears. Respondents shalloutlinetheirproposed termsasitrelatestothetypeofagreementbeingsought (i.e. lease, purchase agreementor management contract). Finalterms willbenegotiatedwith thesuccessful respondent(s). Purchaseagreements willonlybe entertained fortheentiregolfcourseand thatitcontinue tobeoperatedasagolfcourse foraminimumoffiveseasons from 2017to2021. Respondents submitting proposals shallataminimumincludethefollowing intheirresponses: 1.Letterofinterest describinglegalcomposition oftheentity; 2.Marketing strategy; 3.Business plantoinclude: a.Descriptionofthebusiness fromanownership, organizational, historical andstructural perspective; b.Number ofproposedfulltimeandparttimeemployees bypositiontitle, educational experience toberequiredtoqualifyfor eachtypeofpositionand anticipated salaryrange; c.Expected marketfor itsproductanditsmarketing plan; d.Management plan, including operationalandfinancialissues; e.Projected schedule; and f.Criticalrisksand perceivedproblems orobstacles. 4.Resumesofkeymanagementstaff; 5.Maintenanceplanand capitalimprovement planoverview; 6.Three (3) verifiable references; 7.Profitandlossstatement aswellasbalance sheetfromthemost recentcompleteyear ofoperation forexisting businessesor afinancial plan (cashflowproforma) withproofoffinancialcapacityfor newventures; 8.Stateifapurchase agreement, managementcontractorlease isdesired; 9.Managerial feestructure, license fee, lease amountand/orrevenuesharingproposal; and 10.Monthly contributiontowardapplicable utilities, including water, electricityandalarm systems (for leaseresponsesonly). Respondentssubmitting proposalsforthepurchase oftheGolfCourse shallataminimum includethe following intheirresponses: 1.Purchase amount; 2.Termsofpayment. Theintentofthisrequest isto obtainthe services ofaGolfCourseoperations and/ormanagementfirm, herein(afterreferredtoasthe “firm” toperformservices tooperate, leaseorpurchase thePinewood Golf Coursehereinafterreferred to “course” fortheCityofElkRiver, Minnesota, hereinafter referredtoasthe city.” July15, 2016 PlansandSpecifications PinewoodGolfCourse Page3of14 Section2: Background CityProfile TheCityofElkRiveristhecountyseatofSherburneCounty, Minnesotalocatedabout34miles northwest ofMinneapolis. Itissituated attheconfluence oftheMississippi andElkRivers. The2015population is approximately 24,000. With41parks andrecreation facilitiesandover1,000acresofparkland, thecityhasastrongcommitment toparks andrecreationforresidentsand visitorsalike. Throughthe citypassestheGreatNorthern Trail north/south) andtheMississippi RiverTrailwhich connectsLake ItascatotheGulfCoast. Residents alsohave access tosome ofthe best cross country skiingand mountain biking trailsintheMinneapolis-St. Paulmetropolitan area. Becauseparksandrecreation facilities areessentialtothecity’sidentityandto thequalityoflifefor residents, astrategicapproachto protecting andcultivating these assetsforthefuture isvital. Thestrategic approach thatthecity hasrecently takenistheParks andRecreationMasterPlan, adoptedbyCityCouncil inJune of2015. TheMaster PlanisintendedtoprovidedirectionfortheCityCouncil, theParksand RecreationCommission, andcitystaffto guidethem instrategic decision makingthatwillimpact the parks andrecreation system. Whetherallocatingresources formaintenance, buildingatrail, installinga playground, protecting riverfront land, ordeveloping the nextseason’srecreation program offerings, the planoffersguidance. Pinewood GolfCourseProfile TheMasterPlanmade littlereference totheGolf Coursebecause duringthemasterplanningprocess 2014-15), itwasnotopentothepublic. Through theplanning process, someresidents expresseda strong desiretoretaingolfaspartof thecity’srecreation offerings (MasterPlanpage 23). Residentdesiresto retainthecourseinclude providing anaffordablegolfoption; supportingnewgolfers withalearning course; ensuringfamily-friendlyactivitiesthatappealtoallages. Pinewood GolfCourse lies onthewesterly border ofthecity. Thecourseisanine-holeexecutivelength courseonapproximately27-acresof land. Course length rangesfrom1,497to 1,832yardswithaparof 30. Thecitypurchased thecoursefromtheoriginal owner 2005andoperated PinewoodGolf Course from 2006to 2013. Theaverage numberofrounds foreach yearofoperations isestimated around10,000. A majorityofthe userswere seniors andyouth drawnfromthelocal market. Theseasonwastypically from ApriltoOctober. Thecityoperations included afull-timeGolfCourseSuperintendentandseasonalstaff tomaintainthecourseandclubhouse ataquality level. Thecoursewasclosed forthe 2014andensuinggolfseason andmaintainedinaminimalmaintenance statewiththe intentionthatitcouldbereturnedtoservice inaminimum amount oftime. ElkRiverCityCouncildecidedinAprilof2016thatcitypersonnelwillnotoperate thegolfcourse and expressed consensusinJune of2016toseekaresponsiblefirmto managethegolfoperations, lease the courseforoperations orpurchase thecoursewiththeintentof operatingasagolfcourse. July15, 2016 PlansandSpecifications PinewoodGolfCourse Page4of14 Theclubhouse consistingofapproximately 1,700square feetserves asanadequate facility. Thecity last madeinterior improvements in2011. Thefacilitydoeshavesome maintenance issues, including potential waterand moldissuessinceitwas shutdownforthree summers. Agolf check-inareawithcounterand snack salesoccupies thefrontsection ofthebuildingwithasmallareafortables andchairs. Two (2) small restrooms, men’sandwomen’s, aretowardstherear fromthecounterareaandarenothandicapped accessible. Onlypackagedfoodwaspermitted forpresale duringitsyears ofoperations sincethefacilitydoes not haveakitchen/ concession operation. Thecoursedoesnothaveadrivingrange Apolebarn ofapproximately 1,350square feethasserved adequatelyasamaintenancefacility. No specialized facilityexists foreithergasolinestorage orpesticidestorage. Theirrigation watersource is adequate withtheoverall system supplied directlybyawell andpump system. PinewoodGolfCourse hadapproximately 9,766rounds ofgolfduring itslastyearofoperations in2013. PassSalesandFeesfor2013 – Appendix A FinancialStatements for2013and2012 – Appendix B July15, 2016 PlansandSpecifications PinewoodGolfCourse Page5of14 Section3: Proposals Theproposalshallcontainthetypeofinformationsummarized below. Additionalinformation is allowable, providing itisdirectlyrelevant tothe proposed project. Thesubmittal shouldfollowthe labeled sectionsbelowasfollows. Section 1 – Companybiography andother relevantinformation: Provideabriefcompanyhistory including datefounded, number ofemployees, company headquarters locationandoperating locations, andpastprojects andaccomplishments. Section 2 – Experience, pastperformance andcapacity: Provide adescriptionofexperience, past performance, andcapacity todelivertheproposedservicesandexperienceinmanagement andoperation ofmunicipal orother golf facilities. Section 3 – Business plan: Describe indetailyour proposed operations plantoincludeallofthe components oftheCourse. Include hours/daysofoperation, proposed fees, numberofemployees, and jobfunctions. Proposer mayormay notincludefood serviceaspartof theproposal. Iffoodservice is NOT included, describe thetypeof concessions tobeprovided. Include anymajor programs orservices youintendtoprovide, aswellasanyparticipation incommunity events. Section 4 – Maintenance: Describeindetailyouroverall maintenance programfor thecourse. Provide aclearunderstandingof yourmaintenance strengthsandanyotheruniquequalitiesoftheproposal. Specifyhowyour planwillincorporate themaintenance standardslistedinAppendix C. Identify whether youwillprovideyour ownequipment (andincludealist), theCity’sequipment (see Appendix D) ora combinationofthe twoandhowequipment will befinanced (ifnecessary). If youplanto usethecity’s equipment, describe indetailyourproposed leaseprogramand payment(s). Section 5 – Capital improvements: Describe indetailyour proposed planforaddressingcapital improvements. Include a listofproposedimprovements, theircost, anda timelineforimplementation. Note thatanyandall improvements to thecoursewillbe subject to thecityapproval. Section 6 – Financial terms: Describe indetail howyouwillstructurealease and/ormanagement fees withthecity, includingrevenue sharing, ifapplicable. Providefinancial statements and taxreturnsforthe pastthree (3) fiscal years. Pleasenotethatthefinalcontract willrequirethesubmittal offinancial reports, termstobenegotiated, butataminimum, semi-annually. Section 7 - Litigation: Providedocumentation regardinganycurrent/pending litigationandanylitigation settledordisposedwithin thepastfive (5) years againstthefirm, includingitsparent, sister, orsubsidiary companies andproposed subcontractors. Section 8 – Purchase Agreement, ifApplicable. Anypurchase agreement shallrequire adeed restriction requiringthatPinewood shallbe operatedas agolfcourse foraminimum offivegolfseasons from2017to 2021andduring thistimeitshallbemaintained at themaintenancestandards outlinedin Appendix C. Includethepurchase amount andproposedtermsofpayment. Final purchase terms willbe negotiatedwith thesuccessfulrespondent(s). Section 9 – References: Provide threereferences from similar municipalities, organizations, and/or entities withwhichtheFirmhasprovidedsimilar services. July15, 2016 PlansandSpecifications PinewoodGolfCourse Page6of14 Section5: ConsultantSelection Proposals willbereviewedandevaluatedby citystaffandbasedon thefollowingcriteria: 1.Background and experience inoperating agolfcourse. 2.Proposed termsofagreement beingsought thatincludes amanagement contract, lease, purchase agreement or acombination thereof. 3.Lengthof termsof themanagement contract and/or lease (shouldaleaseterm beoutlined?) 4.Understanding ofmaintenancestandardsanduseofequipment. 5.Organizationalstructure andstaffinglevels. 6.BusinessPlan. 7.Proposedcapitalimprovements to thecourseand theircosts. Following review oftheproposals, selected firmsmay beaskedtomake oralpresentations oftheir proposals anduponconclusionofthe presentationsonefirmwill beselected tonegotiate acontract as follows: 1.Ifforanyreason, afirmisnot abletocommence theservices inthatfirm’sproposalwithin30days oftheaward, thecityreserves therighttocontract withanotherqualified firm. 2.The cityshallnotbeliableforanyexpensesincurred bytheconsultantprior tothesigning ofa contract including, but notlimitedto, theproposal preparation, attendance atinterviews, and/or finalcontractnegotiations. 3.Theproposal mustbesigned ininkbyanofficialauthorized tobindtheconsultanttoits provisions thatwillbeincluded aspartofan eventual contract. Theproposal must includea statementasto theperiodduringwhichtheproposal remains valid. Thisperiod mustbeatleast 90daysfromthedate ofthe submittal. 4.Thecityreserves therighttorejectanyand allproposals ortorequestadditional informationfrom anyoralloftheproposing firms. Section6: ContractTermsandConditions Uponselection ofaconsultant, anagreement orContractforServicesshallbeenteredintobythecityand thefirm. Thestandard citycontract isattached. Itisexpectedthatthecontract willprovidefor compensation foractual workcompleted ona nottoexceed basis, with thefollowing conditions. 1.Deletionsof specificcomponents, suchas individual projectmeetings, willbeat thediscretion of thecity. Payment orreimbursement shallbe made basedonactualtaskscompletedonthe project plusnecessarysubcontractor work (asapplicable) andout-of-pocket expenses. Billingthatexceeds thenotto exceed amount willnotbecompensated unless acontract extensionhas been approved inadvancebytheCityCouncil. 2.Thecity shallretainownershipofalldocuments, plans, maps, reports, anddataprepared underthis proposal. Inaddition tobeingprovidedhard copiesanddigitaldocuments throughout theproject, theconsultant shallsupply thecitywithafully-scanned (Laserfiche) projectfile uponcompletion. 3.If, for anyreason, thefirmisunabletofulfilltheobligationsunderthecontractinatimelyand propermanner, thecityreservestherightto terminatethecontractbywritten notice. Inthis event, thefirmshallbeentitled tojustandequitablecompensationforanysatisfactorywork completedtothatpointat thediscretion of theParksand Recreation Director. July15, 2016 PlansandSpecifications PinewoodGolfCourse Page7of14 4.Thefirmshallnot assign ortransfer anyinterestinthecontractwithout priorwrittenconsentof thecity. 5.Thefirmshallmaintaincomprehensivegeneralliabilityinsurance in accordance withSection 466.04oftheMinnesota Statutes. 6.Thefirmshalldefend, indemnify andholdharmlesstheCityofElkRiver, itsofficials, employees andagents, fromanyandall claims, causes ofaction, lawsuits, damages, lossesorexpenses, includingattorneyfees, arisingoutoforresultingfromthefirm’s (including itsofficials, agents, subconsultants oremployees) performance oftheduties requiredunder thecontract, provided thatanysuchclaim, damages, loss, orexpense is attributable tobodilyinjury, sickness, diseases or deathorinjurytoor destruction ofproperty includingthelossofuseresulting therefromandis causedinwholeorinpart byany negligentactoromissionorwillfulmisconductoffirm. 7.Thefirmcontract shallbegoverned bythelawsof theStateofMinnesota. 8.Projectsummaries shallbesubmitted witheach invoiceduring thecourseof theproject. Each summaryshalldetail theamount billedtodate, outstandingworkitems withcoststocompletion, andtimelines. Invoices submittedto thecityshallinclude adetailedbreakdownof allchargeable itemsfor thatperiod. Section7: Appendix Appendix A – 2012and2013FinancialStatements Appendix B – 2013PassSalesandFees (stillworking onfinal format) Appendix C – GeneralMaintenance Standards Appendix D – Pinewood Equipment List July15, 2016 PlansandSpecifications PinewoodGolfCourse Page8of14 APPENDIX B FINANCIALSTATEMENTS - 2012 July15, 2016 PlansandSpecifications PinewoodGolfCourse Page9of14 APPENDIX B FINANCIALSTATEMENTS - 2012 July15, 2016 PlansandSpecifications PinewoodGolfCourse Page10of14 APPENDIX B FINANCIALSTATEMENTS - 2013 July15, 2016 PlansandSpecifications PinewoodGolfCourse Page11of14 APPENDIX B FINANCIALSTATEMENTS - 2013 July15, 2016 PlansandSpecifications PinewoodGolfCourse Page12of14 APPENDIX C GENERALMAINTENANCESTANDARDS 1) Greens: a)Mowing: Greensandpractice putting greens shallbe mowedwithfrequencyaccording to weather andconditions. Twotothree times perweekatminimum. b)Top-dressallgreensandpracticegreensasneededtomaintain asmooth surface. c)Fertilization: Allgreens andpractice putting greens shallbe fertilizedinorder tomaintaincolor andgrowth. Highpotassiumapplication inSpring toencourage rootgestation. Nitrogen application everytwoweeksthroughsummer. d)Weed Control: Allgreens andpractice putting greens shallbemaintained tominimizeforeign grassesandweeds. e)Aerification: Allgreens andpractice greens shallbeaerified asrequired bywearfactorsand/or weather. 2) Tees (allareasused forteesurfaces): a)Mowing: Tees shallbemowed asdetermined bygrowthand/orweather. b)Top-dress: Alltees shallbetop-dressedasnecessarytofilldivots andlevel teesurfaces. c)WeedControl: Allteesshall bemaintainedtominimizeforeign grasses andweeds. d)Fertilization: Allteesshall befertilizedinordertomaintaingrowthand color. e)Airification: Allteesshallbeaerifiedasrequiredbywear factors and/orweather. 3) Fairways a)Mowing: Fairways shallbemowed asdetermined bygrowthand/orweather. b)Aerification: Allfairways shallbeaerifiedataminimumofonce peryearandasrequiredbywear factors and/orweather. c)Weed Control: Allfairways shallbemaintainedtominimizeforeign grasses andweeds. 4) Irrigation: a)Thegolf coursesshallbeirrigatedasnecessary tosupportpropergrowthofthegolfcourse. b)Damagedirrigationlines, heads andother equipmentshallberepairedutilizing likeequipment. c)Irrigationwinterization shallbeconducted annually priortothefirstfrosttoprevent damageto equipment 5) Edging: a)Alledgesofsidewalks, porches andcartpathsmustbekept. Edgingofvalveboxes, meterboxes, shallbedoneasneeded tomakesurethatthereisnoobstruction ofplayfromgrowth. 7) Landscaping: a)Current landscapingshallbemaintained inamannerwhich enhances theoverallaestheticsofthe courses. July15, 2016 PlansandSpecifications PinewoodGolfCourse Page13of14 8) ClubhousesandBuildings: a)Restrooms: Allrestroomsshallbemaintained inamanner soasto provideacleanandsanitary facilityforpublic use. Soapandpaper towelsshallbeprovidedinadequate quantities atalltimes b)GeneralMaintenance: Maintenanceandrepair allstructural areasandfixturesofallbuildings as needed to insureproper functionandgood appearance c)Carpets must bevacuumed onadailybasis. d)Clubhouse andmaintenancefacilities shallbewinterizedannually toprevent damagetowaterlines. 9) Trash andDebrisRemoval: a)Trash and Debrisremovalshallbeonadaily basesand atthefirmexpenses. July15, 2016 PlansandSpecifications PinewoodGolfCourse Page14of14 APPENDIX D PINEWOOD EQUIPMENT LIST Pinewood Equipment Assets Unit EquipmentType Year PurchaseValue 785P Cushman ClassicTurfTruckster $13,000 ClubCarUtilityCart $12,000 784P Toro Groundmaster3500D 2006 $31,385 782P Toro Reelmaster 5200D 2006 $35,200 781P Toro Workman 2110 2006 $9,975 783P ToroGreensmaster 3150 2006 $26,645 786P ToroGreensmaster 3150 2011 $27,765 EZGo GolfCart (12carts) 2006 $42,480 ToroGreens Aerator $4,000 LelyFertilizerSprayer $5,000 SmithcoSprayer $1,000 Total $207,450 July15, 2016