Sponsor: Parks & Recreation
Title
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Agreement with Foley Professional Golf Service, LLC for Golf Professional Services at Keller Golf Course.
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Recommendation
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1. Approve the agreement with Foley Professional Golf Service, LLC, 1301 Berwick Lane, Mahtomedi, MN 55115, for golf professional services at Keller Golf Course located at 2168 Maplewood Drive, Maplewood, MN 55109 from May 15, 2024, through December 31, 2033, with an option to extend for an additional five-year term for the estimated amount of $1,700,000 during the initial 10-year term.
2. Authorize the Chair and Chief Clerk to execute the agreement.
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Background and Rationale
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Ramsey County Parks & Recreation oversees a system of four golf courses: Goodrich Golf Course, Island Lake Golf Course and Training Center, Keller Golf Course and Manitou Ridge Golf Course. Goodrich Golf Course is located in Maplewood and includes an 18-hole golf course and club house. In 2023, over 34,100 rounds were played. Foley Professional Golf Service, LLC has been operating the course since 2014, and included the County Manager approving a one-year renewal option. The professional services agreement ended on December 31, 2023. The new agreement includes revenue share incentives for the Golf Course Professional (hereinafter referred to as Pro) to reach stated targets. These incentives will promote the sale of golf to the benefit of both the Pro and the county. The Pro will be responsible for all business expenses, i.e., wages for employees, supplies and inventory necessary to meet the scope of the agreement. Terms of the new agreement are consistent with the previous agreement, with the exception of the following revenue shares:
• Retainers-The Pro will be paid a retainer of $44,000 in year one and $47,000 in years two through three and $49,000 in years four through five.
• Greens fees-The Pro will receive 10% of the revenue, less sales tax, on green fees up to $850,000 and 15% of such over $850,000.
• Cart rentals-The Pro will receive 10% of the revenue, less sales tax, on cart rentals up to $200,000 and 15% of such over $200,000.
• Driving range-The county shall receive 10% of gross revenues for driving range activities from the first dollar ($1) up to forty thousand dollars ($40,000) and 5% of gross revenues for driving range activities from $40,001 and beyond.
On December 2, 2022, in accordance with county procurement policies and procedures, a competitive solicitation for golf course operations was issued for professional services at four golf courses. Below is the competitive solicitation summary:
• Request for bids title: Golf professional services.
• Request for bids release date: December 2, 2022.
• Request for bids response due date: January 4, 2023.
• Number of contractors notified: 1,046.
• Number of requests for bids received: 3.
• Contractor recommended: Foley Professional Golf Services.
Ramsey County Parks & Recreation recommends Foley Professional Golf Service, LLC, to operate Keller Golf Course. It has been determined that a professional labor agreement will be required. Mark Foley is engaged in the golf course industry, has demonstrated a strong commitment to providing a high level of customer service and to growing the game of golf.
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County Goals (Check those advanced by Action)
☒ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
Keller Golf Course serves residents throughout the county, In addition to the golf course, Keller has a driving range, hosts a variety of tournaments, has an active men’s and women’s league and has a bar and restaurant where a variety of events including weddings, family gatherings and work celebrations take place. A variety of youth programming also takes place at this course with opportunities for scholarships for youth who need financial assistance to participate in programs.
Parks staff will continue working with the golf professional throughout the term of this agreement on expanding outreach to the community to attract racially diverse individuals to the game of golf and Ramsey County golf courses including Keller Golf Course.
Community Participation Level and Impact
Community engagement was not conducted.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The contract is for 10 years with an additional option of a five-year renewal. The estimated annual gross revenue is anticipated to be $1,700,000. This revenue is planned in the 2024-2025 operating budget. Golf fees are expected to increase in future years and an increase in revenue is expected as a result. The revenue generated by golf contributes to the overall operating budget of Parks & Recreation as it works to build an inclusive and equitable 21st Century parks system.
Last Previous Action
On July 18, 2017, the Ramsey County Board approved the selection of Foley Golf Professional Services for Keller Golf Course through December 31, 2022 with the option to renew for an additional five years. (Resolution B2017-175).
Attachments
1. Professional Services Agreement.
2. Exhibit A Maintenance Responsibilities-Keller 5-6-2024
3. Exhibit B RC Ash Tree Management Plan
4. Exhibit C Waste_Resource_Management