Golf Management Services Bidders Conference This Morning

Golf management services bidders conference today
Parties interested in managing the town’s golf facilities will be meeting this morning at 9 o’clock in Town Council Chambers for a bidders conference. They can ask questions regarding the bidding and the facility. Later they will have a tour of the facilities.

Troon Golf is the current manager of the facility. Their contract is up for renewal or renegotiation. Troon has been operating the golf facility for Oro Valley. HSL hired them just prior to the sale to the town and then stipulated in the purchase contract that Troon must be the manager. The purchase agreement gives HSL the right to approve or disapprove any golf course manager.

The Twelve Objectives of Oro Valley Municipal Golf
The request for proposal ("RFP") lists a dozen objectives (panel right) that the town wishes to achieve regarding municipal golf. Some of these will be the responsibility of the successful bidder. Most are the objectives about the town wants to accomplish.

Scope of services
The successful contractor will be responsible for the following:

• Provide all staffing, equipment, marketing, routine maintenance repairs and services for the operation and maintenance of the property;
• setting price points for goods for sale and dining facility costs; and
• recommending what capital projects are needed to improve the overall operation and maintenance of the golf course.

In return, the contractor will receive a monthly management fee. The budget provided in the RFP shows a management fee of $100,000 per year. The town will reimburse the contractor for their expenses each month.

It is unclear in the RFP for whom the staff actually works
Are they employees of the town, as they are today? Or are they employees of the management company? There is indication that they are employees of the management company. In submitting a transition plan "The Proposer should discuss their approach and methodology including but not limited to interviews with current Town staff, any rate changes contemplated."(Source: RFP page 25)

Pusch View course could be included
The RFP includes the opportunity for the bidder to operate the Pusch Ridge course. We reported Friday that town is negotiating with HSL to get out of that ownership and contract. HSL needs a golf course so that the El Conquistador can retain elite resort status. Hopefully, HSL will simply take over ownership of the land and operation of the course at some cost of the town.

Food is included in the bidding
There is no mention of the "Overlook Restaurant" in the RFP. There is discussion of the provision of "food". The RFP specifically states that the contractor is responsible for providing food and beverage concession services for lunch, and also the option for breakfast and dinner. It also states the "Town will not subsidize food and beverage operations." We wonder: Would a food cart suffice?

Marketing golf is the critical success factor but its not the top objective

The job of managing our Oro Valley's municipal golf is a challenging one. The town has set financial objectives such that the facility will receive no more than a $750,000 subsidy within the next five years. That's a bold objective in a marketplace where the popularity of the sport of golf is in decline.

Marketing golf should be the town's top objective. But it's not. It's number six of 12 (see panel left).

The company that wins the contract needs to be really good at marketing.

The secret of success of Oro Valley Municipal Golf is going to be whether or not golf memberships and golf rounds can be increased over the years. If so, then this is going to be a contract worth seeking. If not, we wonder why one would want to bid on it.
---