Title
Consider/Discuss/Act on a Resolution of a Fourth 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: May 2, 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 fourth amendment to the golf services management agreement with DWW Golf Management.
• Proposed amendments clarify management services during a forthcoming renovation period and adds a five (5) year extension option to the agreement.
BACKGROUND INFORMATION:
• The City is desirous to renovate elements of Oak Hollow Golf Course over the summer of 2023, which will require the closure of the course for a period of approximately 3-months.
• The scope of work includes reconstructing the greens and tee boxes, as well as updating the restrooms and other elements on the property.
• The City has hired Champion Turf, LLC of Fort Pierce, Florida to complete the work on the course. The approved contract amount is $596,270.00 and is fully funded through PK1822, Oak Hollow Upgrades.
• 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 $430,500.00 paid out in six (6) equal payments ($71,750.00) over the closure period. All revenue collected from the driving range during the closure period shall be remitted monthly to the City.
• These payments will offset a portion of lost revenue typically collected during the months of June, July and August 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.
• The City has approved three extensions to the contract and this fourth amendment also provides the City with an option to approve an addition five (5) year term that would end in 2029.
• 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 a budget amendment in the Golf Fund (004). The Golf Fund (004) is comprised of all the operating revenues paid by DWW Golf Management to the City.