Title
Consider/Discuss/Act on a Resolution Approving a Fifth Amendment to the Professional Full Golf Services Management Agreement with DWW Golf Management, a Texas Limited Liability Corporation
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5A: Create affordable recreational and cultural arts activities for all ages throughout the city)
(5C: Continue to market and highlight McKinney as a unique destination for residents and visitors alike)
MEETING DATE: September 5, 2023
DEPARTMENT: Parks & Recreation
CONTACT: Michael Kowski, Director of Parks and Recreation
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution
ITEM SUMMARY:
• This item allows the City Manager to execute a fifth amendment to the golf services management agreement with DWW Golf Management.
• Proposed amendments extend the closure time through September to allow for the completion of the previously approved renovations.
BACKGROUND INFORMATION:
• The City had previously authorized and funded in May of 2023 the renovation of elements of Oak Hollow Golf Course during the summer of 2023. The closure of the course was anticipated to extend for a period of approximately 3-months, from June to August.
• The scope of work includes reconstructing the greens and tee boxes, as well as updating the restrooms and other elements on the property. The physical work on the turf is complete.
• Due to the extreme heat of the summer, combined with a short episode of mechanical issues with our well pump, the new turf needs more time to grow and fill in. We anticipate one (1) additional month with result in a better result. In addition, the restroom renovations are still underway.
• The City is requesting that DWW Golf Management remain onsite and engaged during the closure period to (1) oversee the renovation project and grow-in period, (2) continue day-to-day maintenance obligations of the property, (3) keep open the clubhouse and provide public usage of the driving range and practice greens, and (4) complete special improvement projects on the property.
• In consideration of this, the City shall suspend operating payments due and DWW Golf Management shall receive from the City a total of $128,000.00 paid out in two (2) equal payments ($64,000.00) over the closure period encompassing the month of September. All revenue collected from the driving range during the extended closure period shall be remitted monthly to the City.
• These payments will offset a portion of lost revenue typically collected during the month of September and shall be used to cover payroll for staff actively working on the property, fixed operational costs, oversight of the renovation work, and completion of special improvement projects on the property.
• The original agreement was executed with DWW Golf Management on April 9, 2009.
• Both parties agree with the proposed contract amendments.
• The recommended contract amendments are intended to be mutually beneficial to both parties.
FINANCIAL SUMMARY:
• This project shall be funded through the general fund account #001-9999-403-8516.