Title
Consider a resolution authorizing the Mayor to execute a Management Agreement with Kemper Sports Management, Inc. for the Forest Creek Golf Club.
Body
The City of Round Rock is seeking to contract with KemperSports Management to provide management and operations of all facets of the Forest Creek Golf Course.
KemperSports Management will supervise all play on the course - tee time reservations, driving range, lessons, starting, etc., including retail operations in the pro shop. KemperSports will also provide all grounds, building maintenance services and all on site equipment maintenance and repair at the golf course on both play and non-play areas; including all landscape features, trees and irrigation systems, consistent with maintenance practices at a high-end, municipal golf course, providing quality golf experiences.
KemperSports Management will also be responsible for assisting the City in managing the future renovation of the golf course. This responsibility shall include reviewing the requisite construction documents, coordinating the proposals received with the City’s Purchasing Department and managing the renovation process in coordination with the City.
All renovation work to be undertaken will be the result of an additional Request for Proposal specifying the scope of services to be undertaken.
The agreement begins January 1, 2017 and is for 5 years with the ability to automatically renew on a two year basis after the first three years of the agreements as long as both parties are in agreement. The City will pay an initial base management fee of $96,000 to Kemper with a 3% increase of that fee every year on the anniversary date.
Cost: $96,000 base management fee plus 5% of gross revenues
Source of Funds: Golf Course Revenue Fund
Recommended Action
Staff recommends approval.