9.3. SR 11-21-2016City of
Elk —
River
Request for Action
To
Item Number
Mayor and City Council
9.3
Agenda Section
Meeting Date
Prepared by
Work Session
November 21, 2016
Michael Hecker, Parks and Recreation Director
Item Description
Reviewed by
Pinewood Proposals Discussion
Cal Portner, City Administrator
Reviewed by
Action Requested
Discussion of two Pinewood proposals.
Background/Discussion
Two proposals were received by the original due date of November 7 and evaluated by staff for the
Pinewood Golf Course Request for Proposals (RFP). Both were missing significant requirements that
were outlined in the RFP. Letters were sent requesting the information be provided by Thursday,
November 17 for City Council to review on November 21, 2016. Both proposals did return with
additional information attached.
Financial Impact
N/A
Attachments
■ Pinewood RFP
■ Pinewood Proposals
P0WIAED 0
NaA f RE]
`W=-=_- Request for Proposals (RFP)
1Ver Pinewood Golf Course
Section I: 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
A tour of Pinewood Golf Course will be offered on Thursday, October 13 at 2:00 p.m. rain or shine.
Please meet at the Pinewood Clubhouse located at 18150 Waco Street, Elk River, Minnesota.
All questions must be received before 4:00 p.m. on Friday, October 21, 2016. Questions received after that
time will not receive a response.
Proposals will be accepted until 4:00 p.m. on Thursday, October 27, 2016.
Please submit five (5) hard copies and one (1) PDF copy of your firm's proposal.
All persons or companies who 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
Thursday, October 27, 2016 by 4:00 p.m.
City Council Review and Consideration Monday, November 7, 2016
Plans and Specifications
Pinewood Golf Course
Project Overview
Page 2of15
The City of Elk River requests proposals from responsible firms and teams for the operation of the
Pinewood Golf Course through:
1. A management contract;
2. Lease;
3. Combination thereof;
4. Purchase.
Pinewood Golf Course consists of a 9 -hole executive course with a 1,700 square foot 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 be operated as a golf course for
a minimum of five (5) 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 (5) seasons from 2017 to 2021.
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,
hereinafter 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."
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 was
approximately 24,000.
Parks and recreation facilities are essential to Elk River's identity and to the quality of life for residents.
With 42 parks and recreation facilities and more than 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 have access to many of the best cross country skiing and mountain biking trails in the
Minneapolis -St. Paul metropolitan area.
September 23, 2016
Plans and Specifications
Pinewood Golf Course Page 3 of 15
To protect, cultivate and guide future strategic decisions, in June of 2015 the City Council adopted the
Parks and Recreation Master Plan. The Master Plan's intention is to provide direction for the City Council,
the Parks and Recreation Commission and city staff in making strategic decision 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
Pinewood Golf Course lies on the westerly border of our active and growing city. The course is a 9 -hole,
Par 30 executive length course on approximately 27 acres of land. Course length ranges from 1,497 to
1,832 yards.
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 operation was 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. 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 seasons and maintained in a reduced maintenance
state with the intention that it could be returned to service in a minimum amount of time. Shortly after its
closing, the Master Plan was developed and made little reference to Pinewood because it was not open to
the public. However, through the planning process, residents expressed a strong desire to retain golf as
part of the city's recreation offerings (Appendix E, Parks and Recreation Master Plan Page 23). Resident
desires to retain the course include providing an affordable golf option supporting new golfers with a
learning course, and ensuring family friendly activities that appeal to all ages.
With the goal to once again open Pinewood for its residents and visitors, in June 2016 the Elk River City
Council expressed consensus to seek a responsible management firm to manage the golf operations, lease
the course for operation or purchase the course with the intent of operating it as a golf course for a
minimum of five (5) years.
A 1,700 square foot clubhouse sits adjacent to the Number 1 tee box. The city last made interior
improvements in 2011. The clubhouse has 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 for golfers to relax and
swap stories of missed putts. Packaged food was permitted for presale as the facility does not have a
kitchen/ concession operation. Two (2) restrooms, men's and women's, are towards the rear from the
counter area and are not handicapped accessible.
The course does not have a driving range.
In addition to the clubhouse, a 1,350 square foot pole barn serves 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.
September 23, 2016
Plans and Specifications
Pinewood Golf Course
Section 3: Proposals
Page 4 of 15
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. Provide resumes of key management staff. Firm 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. Provide critical risks and perceived problems or obstacles.
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 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. State monthly contribution toward applicable
utilities, including water, electricity and alarm systems (for lease responses only).
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 (5) 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).
September 23, 2016
Plans and Specifications
Pinewood Golf Course
Page 5 of 15
Section 9 — References: Provide three references from similar municipalities, organizations and/or
entities with which the firm has provided similar services.
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.
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:
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.
2. 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.
3. 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 firm, an agreement or Contract for Services shall be entered into by the city and the
firm. 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
September 23, 2016
Plans and Specifications
Pinewood Golf Course
Page 6 of 15
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.
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 Pinewood Fees
■ Appendix C — General Maintenance Standards
■ Appendix D — Pinewood Equipment List
■ Appendix E — Park and Recreation Master Plan Page 23
September 23, 2016
Plans and Specifications
Pinewood Golf Course
--------------------------
APPENDIX A
FINANCIAL STATEMENTS - 2012
Page 7 of 15
5-24-2016 03:58 PM
CITY OF ELK RIVER
PAGE: 2
REVENUE S EXPENSE REPORT !UNAUDITED)
Charges for Services
AS OF: DECEMBER 31ST, 2012
222 -PINEWOOD GOLF rOURSE
16,500.00
O.DO
16,019.0{1
97.08
481.00
104.004 OF
YEAR COMP,
0.00
CURRENT CURRENT YEAR TO DATE
% of
BUDGET
REVENUES
BUDGET PERIOD ACTUAL
BUDGET
BALANCE
Pinewood Golf Course
Charges for Services
222-3-0000-3461 Recreation Pecs
16,500.00
O.DO
16,019.0{1
97.08
481.00
222-3-0000-3467 Concessions
161000.00
0.00
16,888.32
105.55 f
888.327
222-3-0000-3469 Other sales
3,500.00
0.00
5,499.13
157.12 I
1,399.13)
222-3-0000-3476 Green Fees
120,000.00
0.00
102,755.33
55.63
17,244.67
222-3-0000-3477 Membership Fees
16,500.00
0.00
17,065.00
103.55 {
585.001
222-3-0000-3478 Golf Cart Rental
16,500.00
0.00
23,792.00
128.61 I
5,292.00)
222-3-0000-3479 Tournaments
5,000.00
0.00
4,101.29
82.03
898.71
TOTAL Charges for Services
196,000.00
0.00
186,140.07
94.97
91859.93
Other Revenue
222-3-0400-3629 Miscellaneous 9-ooe
0.00 {
220.00)
0.00
0.00
0.00
TOTAL Other Revenue
0.00 (
220.001
0.00
0.00
0.00
Sales
222-3-0000-3792 Cash Over
0.00
0.00
33.14
0.00 (
33.14)
TOTAL Sales
0.00
0.00
33.14
0.00 I
33.141
Other Financing Sources
Transfers In
222-3-0000-3922 Transfer -General Fund
40,500.00
46,578.07
46,579.07
115.01 t
6,078.07)
TOTAL Transfers In
40,500.00
46,578.07
46,578,07
115.01 I
6,078.071
TOTAL Pinewood Golf Course
236,500.00
46,358.07
232,751.28
98.41
3,748.72
TOTAL REVENUE
236,500.00
46,358.07
232,751.28
96.41
3,748.72
September 23, 2016
Plans and Specifications
Pinewood Golf Course
--------------------------
APPENDIX A
FINANCIAL STATEMENTS - 2012
Page 8 of 15
5-24-2016 03:58 PM
CITY OF ELK RIVER
84,984.54
PAGE; 3
2,115.46
REVENUE 6 EXPENSE REPORT (UNAUDITED)
55.25
28,192.97
94.29
AS OF: DECEMBER 31ST, 2012
81500.00
412.75
222 -PINEWOOD GOLF COURSE
85.23
1,255.50
7,250.00
351.66
6,959.07
100.00$ OF
YEAR COMP.
1,700.00
CURRENT CURRENT YEAR TO DATE
% OF
BUDGET
DEPARTMENTAL EXPENDITURES
BUDGET PERIOD ACTUAL
BUDGET
BALANCE
Golf Course
Personal Services
222-4-5300-4101 Regular Pay
222-4-5300-4103 Part-time. Pay
222-4-5300-4104 PERA
222-4-5300-4105 FICA
222-4-5300-4107 Medicare
222-4-5300-4106 Insurance
222-4-5300-4109 Workers Comp
222-4-5300-4110. Re-employment Compensation
TOTAL Personal Services
Supplies
222-4-5300-4212 Fuels 6 Luba
222-4-5300-4217 Uniform Allowance
222-4-5300-4219 Operating Supplies
222-4-5300-4259 Other Merchandise For Resale
TOTAL Supplies
Other Services a Charges
222-4-5300-4321 Telephone
222-4-5300-4331 Travel, Conferences a Schools
222-4-5300-4349 Advertising/Marketing
222-4-5300-4361 Insurance
222-4-5300-4389 Utilities
222-4-5300-4401 Bldg Repair/Maint Services
222-4-5300-4404 Equip Repair/Maint Services
222-4-5300-4415 Equipment Rental
222-4-5300-4437 Taxes & Licenses
222-4-5300-4438 Credit Card Fees
TOTAL Other Services 6 Charges
Capital Outlay
Debt Service
87,100.00
8,440.45
84,984.54
97.57
2,115.46
29,900.00
55.25
28,192.97
94.29
1,707.03
81500.00
412.75
7,244.50.
85.23
1,255.50
7,250.00
351.66
6,959.07
95.99
290.93
1,700.00
82.23
1,627.42
95.73
72.58
61100.00
465.00
5,580.00
91.48
520.00
1,850.00
O.OD
1,641.75
88.74
208.25
0.00
0.00
4,417.55
0.00 (
4,417.55)
142,400.00
9,807.34
140,647.80
98.77
1,752.20
4,500.00
22.42
4,919.25
109.32 I
419.25)
500.00
105.29
494.16
98.83
5.B4
29,700.00
1,553.38
30,864.35
103.92 1
1,164.35)
12,000.00
0.00
11,440.87
95.34
559.13
46,700.00
1,681.09
47,718.63
102.18 (
1,018,63)
2,400.00
400.30
2,118.42
88.27
281.58
450.00
0.00
17,69
3.93
432.31
5,000.00
0.00
5,012.65
100.25 (
12.65)
12,100.00
0.00
11,257.00
93.03
843.00
6,550.00
884.67
6,461.77
98.65
88.23
8,950.00
6,822.08
7,343.52
_82,05
1,606.48
4,600.00
537.20
4,929.78
107.17 (
329.78)
1,350.00
38.14
952.40
70.55
397.60
1,000.00
117.09
893.25
89.33
106.75
5,000.00
91.14
5,398.$7
107.97 (
398.37)
47,400.00
8,890.62
44,384.85
93.64
3,015.15
TOTAL Golf Course
236,500.00
20,379.05
232,751.28 98.41
3,748.72
TOTAL Culture 6 Recreation
236,500.00
20,379.05
232,751.28 98.41
3,748.72
TOTAL EXPENDITURES
236,500.00
20,379.05
232,751.28 98.41
3,748.72
REVENUES OVER/(UNDER) EXPENDITURES
0.00
25,979.02
0.00
0.00
September 23, 2016
Plans and Specifications
Pinewood Golf Course
--------------------------
APPENDIX A
FINANCIAL STATEMENTS - 2013
Page 9 of 15
5-24-2016 04:00 PM
CITY OF ELK RIVER
13,541.03
PAGE: 2
3,452.97
REVENUE 4 EXPENSE REPORT (UNAUDITEDI
41.29
15,547.80
97.17
AS OF: DECEMBER 31ST, 2013
3,500.00
74.60
222 -PINEWOOD GOLF COURSE
148.41 Y
1,694.47}
110,000.00
1,692.54
93,100.68
100.00% OF
YEAR COMP.
17,OCO.00
CURRENT CURRENT YEAR TO DATE
% OF
BUDGET
REVENUES
BUDGET PERIOD ACTUAL
BUDGET
BALANCE
Pinewood Golf Course
Charges for Services
2.22-3-0000-3461 Recreation Fees
222-3-0000-3467 Concessions
222-3-0000-3469 Other Sales
222-3-0000-3476 Green Fees
222-3-0000-3417 Membership Fees
222-3-0000-3478 Golf Cart Rental
222-3-0000-3479 Tournaments
TOTAL Charges for Services
Other Revenue
222-3-0000-3629 Miscellaneous Revenue
TOTAL Other Revenue
sales
222-3-0000-3792 Cash Over
TOTAL Sales
Other Financing Sources
Transfers In
222-3-0000-3922 Transfer -General Fund
TOTAL Transfers In
TOTAL Pinewood Golf Course
TOTAL REVEMUE
September 23, 2016
17,000,00
360.00
13,541.03
19.69
3,452.97
16,000.00
41.29
15,547.80
97.17
452.20
3,500.00
74.60
5,194.47
148.41 Y
1,694.47}
110,000.00
1,692.54
93,100.68
84.64
16,899.32
17,OCO.00
0.00
12,772.90
75.13
4,227.10
20,000.00
56.60
20,790.83
103.95 t
790.83)
5,000.00
0.00
4,445.64
8B. 92
554.16
188,500.00
2,225.03
165,399.55
87.75
23,100.45
0.00 (
4.501
0.00
0.00
0.00
0.00 1
4.501
0.00
0.00
0.00
0.00 1
9.26)
0.00
0.00
0.00
0.00 I
9.261
0.00
0.00
0.00
44,800.00 47,026.96 47,026.96 104.97 1 2,226.96)
44,800.00 47,026.98 41,026.96 104.97 I 2,226.961
233,300.00 49,238.23 212,426.51 91.05 20,873.49
233,300.00 49,236,23 212,426.51 91.05 20,873.49
Plans and Specifications
Pinewood Golf Course
--------------------------
APPENDIX A
FINANCIAL STATEMENTS - 2013
Page 10 of 15
5-24-2016 04:00 PM
CITY OF ELK RIVER
66,495.55
PAGE: 3
245.55)
REVENUE 6 EXPENSE REPORT (UNAUDITED)
0.00
48,577.61
90.38
AS OF: DECEMBER 31ST, 2013
8,700.00
369.42
222 -PINEWOOD GOLF COURSE
77.37
1,968.47
7,450.00
319.30
7,072,86
100.00% OF
YEAR COMP.
1,750.00
CURRENT CURRENT YEAR TO DATE
% OF
BUDGET
DEPARTMENTAL EXPENDITURES
BUDGET PERIOD ACTUAL
BUDGET
BALANCE
Golf Course
Personal Services
222-4-5300-4101 Regular Pay
222-4-5300-4103 Part-time Pay
222-4-5300-4104 ?ERA
222-4-5300-4105 FICA
222-4-5300-4107 Medicare
222-4-5300-4108 Insurance
222-4-5300-4109 Workers Comp
222-4-5300-4110 Re-employment Compensation
TOTAL Personal Services
Supplies
222-4-5300-4212 Fuels 6 Lubs
222-4-5300-4217 Uniform Allowance
222-4-5300-4219 Operating Supplies.
222-4-5300-4259 Other Merchandise For Resale
TOTAL Supplies
Other Services & Charges
222-4-5300-4321 Telephone
222-4-5300-4331 Travel, Conferences & Schools
222-4-5300-4349 Advertising/Marketing
222-4-5300-4361 Insurance
222-4.-5300-4389 Utilities
222-4-5300-4401 Bldg Repair/Maint Services
222-4-5300-4404 Equip Repair/Maint Services
222-4-5300-4415 Equipment Rental
222-4-5300-4437 Taxes 4 Licenses
222-4-5300-4438 Credit Card Fees
TOTAL Other Services & Charges
Capital Outlay
Debt Service
66,250.00
8,162.80
66,495.55
100.37 (
245.55)
53,750.00
0.00
48,577.61
90.38
5,172.39
8,700.00
369.42
6,731.53
77.37
1,968.47
7,450.00
319.30
7,072,86
94.94
377.14
1,750.00
74,67
1,654.14
94.52
95.86
6,250.00
484.01
5,808.12
92.93
441.88
1,700.00 (
122.00)
1,592.75
93.69
107.25
0.00
0.00
41310.60
0.00 I
4,310.60)
145,850.00
9,288.20
142,243.16
97.53
3,606.84
5,000.00
0.00
4,384.22
87.68
615.78
600.00
0.00
619.79
103.30 1
19.79)
28,150.00
89.85
24,138.79
65.75
4,011.21
9,500.00
0.00
11,379.15
119.78 (
1,679.15)
43,250.00
89.85
40,521,95
93.69
2,728.05
2,400.00
236.51
1,371.34
57.14
1,028.66
250.00
0.00
167.81
67.12
82.19
51000.00
400.00
5,002.20
100.04 (
2.20)
10,700,00
0.00
7,781.50
72.72
2,918.50
6,600.00
936.74
6,613.90
100.21 I
13.90)
8,000.00
40.08
487.98
6.10
7,512.02
4,000.00
0.00
2,348,02
58.70
11651.98
11350.00
77.87
627.41
46.47
722.59
900.00
0.00
1,168.18
129.60 1
268.18)
5,000.00
36.22
4,093.06
81.86
906.94
44,200.00
1,727.42
29,661.40
67.11
14,538.60
TOTAL Golf Course
233,300.00
11,105.47
212,426.51 91.05
20,873.49
TOTAL Culture & Recreation
233,300.00
11,105.47
212,426.51 91.05
20,873.49
TOTAL EXPENDITURES
233,300.00
11,105.47
212,426.51 91.05
20,873.49
REVENUES OVER/(UNDER) EXPENDITURES
0.00
38,132.76
0.00
0.00
September 23, 2016
Plans and Specifications
Pinewood Golf Course
Membership Fees:
Adult Single Non-resident $475
Elk River Resident $455
APPENDIX B
2013 PASS SALES AND FEES
Daily Green Fees:
Page 11 of 15
Adult Couple Non-resident
$625
Weekajo
Adults
I Senior
I Youth
Elk River Resident
$605
9 holes
$14
$12
$10
18 holes
$16
$14
$12
Senior Single Non-resident
$400
Elk River Resident
$380
Adults
Senior
Youth
9 holes
$16
$14
$12
Senior Couple Non-resident
$575
18 holes
$18
$16
$14
Elk River Resident
$555
(do not include sales tax)
Juniors Non-resident
$350
Elk River Resident
$330
Family Non-resident
$800
Elk River Resident
$780
September 23, 2016
Plans and Specifications
Pinewood Golf Course
APPENDIX C
GENERAL MAINTENANCE STANDARDS
Page 12 of 15
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 course 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 edged. 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
course.
September 23, 2016
Plans and Specifications
Pinewood Golf Course
Page 13 of 15
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 at the firm's expense.
September 23, 2016
Plans and Specifications
Pinewood Golf Course
APPENDIX D
PINEWOOD EQUIPMENT LIST
Page 14 of 15
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
September 23, 2016
Plans and Specifications
Pinewood Golf Course
Page 15 of 15
APPENDIX E
PARK AND RECREATON MASTER PLAN
The community needs more high-quality athletic facilities, and the city and
schA district should continue to work togenccr to provide these facilities.
Needs for athletic facilities include:
• Artificial turf fields
• Signature baseball held
• Lighting
• Ice Arena improvements
• Indoor field house
Speciality Recreation
Ells Diver parks offer facilities for "cialty athletics that few other cities offer. The
city's high-yuabr} mountain biking, biathlon. and cross country skiing trails arc
some of the best in rhe state and are a destination for residents and visitors.
Pinewood Golf Course has histon tally provided opportunities for affordable golf
on a 9 -hole cxccutive course. During the master planning process, Pincwrood
Golf Course was nor open to the public. Through the planning process, some
residents crpressed a strong desire to retain golf as part of the city's recreation
offcnnp . Rcsidcntdesires to retain the Pinc AvodGolfC:ourse include: providing
an affordable golf option. supporting new golfers with learning course; ensuring.
family -friendly activities that appeal to all ages.
The community does have an 18 -hole course which is open for public use and
there are 10 golf courses within 20 minutes of Elft Rived
Needs for new speciality recreation include:
• Skate park
• Splash pad
• Picklcball
23 COO Elk River- Parks and RecreatiUn blaster Plan
September 23, 2016
Company name: Chase Michael Home/Dalbec Property Management
Mike Mcguiggan
22347 County Rd. 15
Elk River, MN 55330
(612)-479-1521
mike_mcguiggan#yahoo.com
26 October 2016
Attention: Michael Hecker
Parks and Recreation Director
13065 Orono Parkway
Elk River, MN 55330
MHecker<a-ElkRiverMN.gov
Proposal for Pinewood Golf Course,
Chase Michael Homes/Dalbec Property Management, are proposing
four separate proposals. Proposal
1. In Proposal one, we would be willing to pay in one lump sum for
pinewood golf course in the amount of $300,000 as is. Including all
equipment, properties, and buildings, etc. That are involved in the
purchase of Pinewood Golf Course.
2. In Proposal two, if the city desires a payment exceeding $300,000 for
the course, we would accept to pay $400,000. This would be broken
down by a $200,000 non-interest loan from the city of Elk River with a
yearly payment of $25,000 on the first of April each year until the loan
is resolved. We would pay the remaining $200,000, if accepted, at the
closing of the purchase.
3. In Proposal three, if the city desires a payment exceeding $400,000 for
the course, we would accept to pay $500,000. This would be broken
down by a $300,000 non-interest loan from the city of Elk River with a
yearly payment of $25,000 on the first of April each year until the loan
is resolved. We would also require being exempt from property tax for
the next five years. We would pay the remaining $200,000, if
accepted, at the closing of the purchase. This would include a balloon
payment of the remaining balance of the non-interest loan in the tenth
year.
4. In Proposal four, if the city desires a payment exceeding $500,000 for
the course, we would accept to pay $640,000. This would be broken
down by a $500,000 non-interest loan from the city of Elk River with a
yearly payment of $25,000 on the first of April each year until the loan
is resolved. We would also require being exempt from property tax for
the next ten years. We would pay the remaining $100,000, if accepted,
at the dosing of the purchase. This would include a balloon payment of
the remaining balance of the non-interest loan, in the tenth year.
If any which proposal is accepted, we would maintain the property as a golf
course for at least the next fifteen years. Our primary goal would be to
maintain the golf course as a family owned business since we've had multiple
family members work with Paul Krause on day to day operations. Our family is
very familiar with Pinewood Golf Course and want to restore it back to its glory
days. Our family has 20+ years experience maintaining the greens, and
irrigation systems on courses such as, Pinewood Golf Course, Princeton Golf
Course, Norfolk Golf Course, Riverwood Golf Course, and helped build from
scratch Creek Bend Golf Course in New Prague, MN.
Thank you for your time, if you have any questions please contact Mike at
(612)-479-1521. If accepted all financial statements and proof of funds will be
given at that time.
Sincerely,
Mike McGuiggan
Golf proposal
Section 1: Biography of company
Chase Michael Homes Founded in the year 2003, Buckshot Exteriors founded in 1994, Dalbec
Property Management Founded in 2010, and 24/7 Exteriors was founded in 2009. We have
built thirty plus houses ranging from 200,000 to 1.5 million USD in Sherburne county, Minnesota.
We have also remodeled well over 3000 houses in Minnesota, North Dakota, and Nebraska.
Some commercial projects we've completed include but are not limited to: Purchased,
remodeled, and maintained a restaurant in Faribault Minnesota and later sold this property. Built
Zimmerman Bowl from ground up, and maintained that property from opening. Currently
remodeling two Burger King franchise establishments in Fargo, North Dakota. Ran and
maintained Princeton golf course in the year 2014. Wealth Wood Estates is an eighteen hole
golf course we are currently remodeling and maintaining in millacs, Minnesota. We had a
extremely successful season of golf in 2016. Our companies are based and have operated out
of Elk River, Minnesota, Norfolk, Nebraska, and Fargo, North Dakota.
Section 2: Experience, Past Performance and Capacity.
25+ years of golf course experience. Managing and maintaining the course and keeping pristine
greens, as well excelling in the restaurant buisness. Our resume consists of golf courses
including, Pinewood Golf Course, Princeton Golf Course, Norfolk Golf Course, Riverwood Golf
Course, and Creek Bend Golf Course in New Prague, MN.
Section 3: Business plan
Our operation plans in detail are, to open and maintain pinewood golf course as a family friendly
establishment for as long as golf is in demand, we desire to own and maintain a golf course that
is both affordable and entertaining for the next ten to twenty years. We plan to remodel the
clubhouse with a 30 to 50 thousand USD initial investment as well as provide a full service
restaurant and bar while maintaining a family friendly environment. As we've done in the past
with other golf courses/bowling alleys. We plan to establish a cooperation with the local schools
and community, including but not limited to tournaments, leagues, and special events. We are
well equipped and familiar with pinewood golf course, as five members of our staff have helped
and maintained the irrigation systems, and greens for Paul krauss.
Section 4: Maintenance
With the purchase of the golf course, we expect the inclusion of all current maintenance
equipment and vehicles. We have a specialized irrigation and aeration program to maintain
healthy greens and pleasant fairways. We will not be leasing the city's equipment, due to our
goal being to purchase the entirety of the course.
Section 5: Capital Improvements
Refer to Section 3 business plan.
Section 6: Financial Statements
See attachment.
Section 7: Litigation
NIA
Section 8: Purchase Agreement
See attachment.
Section 9: References
Cloud Nine Restaurant and Bar, Zimmerman Bowl, Creek Bend Golf course in Millacs, MN,
Princeton golf course, Riverwood golf course, and Norfolk golf course in Ramsey, MN.
Best Regards,
Mike Mcguiggan _
Call or email with questions;
Email: mike_mc uigganeyahoo.com
Cell: 612-479-1621
Elk River �
Got/c/ab
Pinewood Golf
Course
Table of Contents
I. Executive Summary...........................................................................................2
Company biography and other relevant information
Experience, past performance and capacity
Highlights
Mission Statement
Keys to Success
Hours of Operation
Products and Services
Suppliers
Maintenance
II_ Marketing......................................................................................................... 5
Financial Terms
Litigation
References
III. Appendix...........................................................................................................8
Executive Summary
Company biography and other relevant information
Ell: River Golf Club (ERGC) was established in 1960. During the regular golf season ERGO has between 50 to 60
employees. ERGO is located at 20015 Elk Lake Rd. Elk River, SIN 55330. ERGC is a shareholder owned corporation
with 295 shareholders. Over the years ERGC received 4 out of 5 stars from Golf Digest and has also received atop 10
ranking in course conditions, staff, and value by a twin cities golfing guide. In addition, ERGC has been regularly asked
to host state events, such as the State amateur and State Players tournaments. We have also hosted the PGA Sr. Match
Play and the VVr'MGA 'Women's Mid Annateur tournaments.
Experience, past performance and capacity
ERGC comes with years of experience at the management level. Jon Varry has over 32 years of experience as a golf
course superintendent with a degree from. Penn State University- in Turf Management. Mr. Varty has consistently kept
ERGC in pritne shape and has worked within his allotted budget. His attention to detail and years of experience allows
him to deal with most any situation that would arise. Chris Singer has been the General Manager at ERGC for the last
nine seasons. Prior to joining ERGC, he was an assistant professional for 7 years at Purple Hawk Goff Club in
Cambridge, iv1N and Mill Run Golf Course in Eau Claire, VVI. Mr, Singer has a degree in General Management from
UXV-Eau Claire and is endorsed by the PGA following completion of the PGA msunagement program. During the last
nine years, together both Mr. Vatry and Mr. Singer have worked close to work through difficult economic times for the
golf industry, elevate the Elk River Golf Club operation and restructure the company to have continued success going
forward.
Highlights
The following; is a chart that shows the sales and expenses for Pinewood Golf Course from 2010 to 2013 (numbers
supplied from the city of Elk River). The last column shows a projection of revenue and expenses for the 2017 golf
season opening May 1, 2017 and dosing September 30. Depending on the weather forecast for October and volume
during September, the closing date would be extended to late October.
PINEWOOD GOLF COURSE- [SELECT" DATE]
PINEWOOD FINANCIAL OVERVIEW & FORCAST
2017 June Start
Concessions
$
22,000
■ sales
$
110,000
Membership
$
r.
Golf Cart
t
24,000
Tournament
$
_J
■ Labor
$
176,000
^A
$
96,000
w r.i
rt
■Supplies
24110
I
2011
'
2012 2011 2017
■Expenses
rl
rt
_
/M
C'
-
=
-,
r
r.
nl
�� ra
■ Net Profit
Budget for 2017
Supplies
Fuels & Lubs
2017 June Start
Concessions
$
22,000
Green Fees
$
110,000
Membership
$
12,000
Golf Cart
$
24,000
Tournament
$
8,000
$
176,000
Total Payroll
$
96,000
Supplies
Fuels & Lubs
$
3,500
Uniform
$
-
Operating Supplies
$
25,000
COGS
$
11,500
Total Supplies
$
40,000
Expenses
Telephone $ 2,500
Travel $ -
HNEbVGOD GOLF COURSE - [SELEC I DATE] 3
Advertising
$
3500
Insurance
$
5,000
Utilities
$
4,900
Maint Building
$
1,200
Maint Equipment
$
1,200
Rental Equipment
$
500
Taxes & Licenses
$
800
Credit Card Fees
$
4,000
Management Fee
$
24,000
$
47,600
Profit/Loss
$
(7,600)
Mission Statement
To provide the City of Elk River with management of Pinewood Golf Course based on knowledge and experience with
golf course maintenance and operations, to minimize costs to the City of Elk River while providing its' residents a
much -desired source of recreation.
Keys to Success
• Regenerating excitement about the course within the communik ,
• Establishing men's, women's, senior, and iunior leagues.
• Work with Elk River community Ed to create a beginner lesson/league
• Find smaller organizations that would look at having golf events.
• Having support of the Elk River Golf Club membership
• Set the foiundation to have a food program to increase concession sales as well as having the ability to go from
3/2 beer to a full beer and wine liquor license.
Hours of Operation
May 1, 2017 start of the golf season thru September 30, 2017(possibility of extending duu Oct. 3151). Daily hours would
be from 7:30 am to half Dour before dusk.
Products and Services
Leagues for all ages, abilities, and gender. This is a key component to the success of Pinewood. It
would generate a weekly income and persuade local customers to purchase memberships.
Leagues offer more than just green fees, players often also purchase food, drink, and merchandise.
Tournoments/outings: With the expertise in this area from years of hosting events, our staff would be
able to make the experience a positive event for all.
Merchandise to the golfer: The accounts Elk River Golf Club has set up, would offer us the ability to
find deals on merchandise and concessions to have a better COGS.
PINEWOOD GOLF COURSE - [SELECT DATE] 4
• Grounds upkeep: Having Jon Varty setting up a weekly schedule of activities for the grounds staff to
accomplish. Mr. Varty has over 32 years of experience in golf course maintenance. His expertise is
one of the keys to getting Pinewood into the shape that the community can be happy to support.
« Golf Course management and customer service, the training and time that Chris Singer would be
working at Pinewood.
Suppliers
ERGC has relationships in place with suppliers and established accounts, providing the opportunity to purchasing power
of can help control the costs.
Maintenance
• Maintenance Equipment
o Elk River Golf Club would use the current equipment allocated at Piritwood by the City of Elk River
at no cost to up keep die course to the standard listed below.
o If additional equipment is need ERGO would provide the equipment or rental specialized equipment
as needed. These amounts are included in the budget amounts listed above.
• Greens
o flowed daily to keep a constant speed and conditions
o Topdressing and fertilizing will be scheduled by Jon Varty, dependent on the turf condition starting
die year coming out of the winter.
o Topdressing use of the city's top dresser
o Aerification will take place in the late fall and be top dressed in the spring going into the 2018 seasons.
If aeridcation needs to be done in 2017, it would be done early spring.
• Fairways, Rough, Edging, and Tees
o Mowed 3 to 4 times a week.
o Fertilizing will be scheduled based on weather and turf conditions
o Use of IPM (ingrate pest management) it is being used by most superintendents. This is only using
pesticide and fertilizer when needed not a static plan. By a certified pesticide license
• Irrigation will be maintained with same part as presently used, and blown out each fall during late October.
• Equipment repairs and replacement are the responsible of the City of Elk River, general maintenance will be
performed by ERGO.
• Capital Improvements are built into expense as of this point. The only part that is not built is the repair for
water damage in the clubhouse. This would be paid by the City of Elk River. ERGC can assist in bidding it
out to make sure to keep cost down. Other capital improvements would be up for discussion with the Cita- on
moving the clubhouse towards a working, cafe. This would allow for a full liquor license which would help
increase concessions sales.
• Clubhouse
o Clubhouse must be in the proper condition in accordance with the state health and safety guideluies.
o Each day the closing worker will have a checklist to complete to make sure that the clubhouse area is
set for the next day. Checklist in the appendix
Marketing
Advertising and Promotion
• Star New,, for league formation and membership.
• Build a Facebook page
PINEWOOD GOLF COURSE - [SELECT DATEI
• City of Elk River website
• Work with the community, center to have information placement.
• Direct mailers in March, April, and May to notih, people about the course opening date, leagues, and
memberships.
• Work with a local charity on an opening weekend where a percentage of green fees world go to the charity, this
would help with word of mouth on the course opening.
Financial Terms
Elk Diver Golf Club is seeking to manage Pinewood. The management fee would be $4,000 per month paid to Elk
River Golf from the city for managing Pinewood. The dates of scheduled operations will be from April 1 to September
30. If the parties agree that weather and business is at a level to keep Pinewood open outside of this window in any year
(ei. Before April 1 or after September 30), the management fee would be at a daily rate of $129.00. The agreement
would be for the 2017, 2018, and an option for the 2019 golf seasons. hi addition to the management fee Elk River
Golf Club would retaitn 25'/0 of net profit. Both compensation areas are up for negotiation.
?ill operating losses are the responsibility of the city however, the use of the expertise of the ERGC staff gives the city
the best opportunity to minimize or eliminate losses in the operation.
Litigation
ERGO has no litigation pending or settled
Pricing 2017 Golf Season
Weekdays Walking
Adults
Seniors
un or 17 and under
9 holes
$14.00
$12.00
570.00
18 holes
$19.00
Si?.()()
S15.00
Weekend Walking
Adults
Seniors
junior 17 and under
9 boleti
$17.()0
515.00
S13.1KI
18 holes
522.00
520.00
S 18.00
Cart
9 holes
55.00
54.00
18 holes
sq.Uo
$8.00
Memberships
Adult Single
$455.00
Adult Couple
$655.00
Adult Family-
$795.00
Senior Single
$395.00
Senior Couple
$545.00
junior
1$225.00
+11/17/2016
PINEWOOD GOLF COURSE - [SELECT DATE]
Concessions
• Golf balls, T-shirts, Golf P3golos, Sweatshirts, and Hats.
o In addition, specia order would be able to be processed for equipment through Ell: River Golf Club
accounts.
• Soda, candy, chips, 3/2 beer, and packed sandwiches
o This would change with approval from the state health dept. to make Pinewood clubhouse into small
cafe. This change would allow fora full beer and wine license.
o Cost of making Pinewood into a cafe would be betveen $3,000 to $5,500, this has not been budgeted
into 2017. The cost would be off set with the increase in concession sales.
0 Event and tournaments food and beverages: With Elk River Golf Club's food and liquor license, Pinewood
would be able to have 4 events per season that can be catered.
References
Elk River Golf Club does not have any references for being a management company-. Pine-Avood would be the first time
ERGO has entered such a task.
,�,•►, �c�c2ti,."z C-, C,
C. _
� .. 17� ZO
PINEWOOD GOLF COURSE - [SELECI DATE] 7
Appendix
Clubhouse Checklist
Wipe down all tables
Empty ALL garbage's
Turn off coffee warmer ANO coffee machine
Clean coffee machine and coffee pots
Put hot dog condiments (onions, relish, etc.) in cooler
Fill pop cooler
Empty popcorn machine and clean out
Stock bar (napkins, straws, swords, chips, cups, lids, etc.)
Take roller off on hotdog machine, wash it, wash inside
Dishes are done and put away
Make sure ALL lights are turned off, upstairs and down
Make sure windows are shut
Make sure ALL doors are locked
Check patio for garbage and make sure patio is arranged for next day
Vacuum
_ Count cash box in office and deposit in safe
CLOSE OUT CREDIT CARD MACHINE
Date
f- NEWOOD GOLF C OUkSt - [SELECT DATE]
Server