HomeMy WebLinkAboutAgenda RAB 102703PARKS AND RECREATION ADVISORY BOARD MEETING
MEMORANDUM
OCTOBER 27, 2003
The meeting was called to order at approximately 7:03 P.M.
ROLL CALL
Members present: Tory Buckley, Mary Ann Hedrick, Phil Milton, Bert Premuroso,
Wendy Walker, Dave Lill, George Schmidt and Ernest Volonte.
The speakers were not in the microphone; was not able to comprehend what was said;
Highlights from the MEMORANDUM OF THE PALM BEACH GARDENS GOLF
COURSE - ANALYSIS OF LETTERS OF INTEREST
The City of Palm Beach Gardens, requested Letters of Interest in June, for the Operation
of Municipal Golf Course. The City received four (4) proposals of interest.
1. Ambach Associates
2. Billy Casper Golf
3. Kevin Kern
4. OneSource
Four Charts were provided for Exhibits:
1. EXHIBIT I- SERVICES PROVIDED
The chart depicts the services to be provided by the proposers compared to those services
currently being provided by the City. The analysis reflects a wide range of potential
savings for the City, but the City would be still be responsible for the Annual Debt
Service of $583,145.
2. EXHIBIT 2 — ESTIMATED EXPENSE TO THE CITY
The chart represents how the estimated expenses would be broken down based on the
different proposals. Each interested party gave their proposal provides a $9200, cost
savings in the administration portion of the City's Golf Course Budget
3. EXHIBIT 3 —NET INCOME COMPARISON
Proposals from all four (4) companies were evaluated with the City's Projected Net
Income before debt of $165,956. The chart depicts the projected savings (cost) based
upon the figures provided.
4. EXHIBIT 4 — ANALYSIS OF ESTIMATED REVENUE
The chart provides the most in depth look at the two proposals that cover all facets of the
golf courts operations. Each area is broken down to show the "revenue per round ".
CONCLUSION
All four (4) proposals are unique to each other and impressive independently. But, the
city would take a risk in releasing any of the functions to an outside source.
ADJOURN
The meeting adjourned approximately at 9:00 P.M.
(unable to comprehend any sounds clearly)
e
CITY OF PALM BEACH GARDENS
MEMORANDUM
TO: Recreation Advisory Board
Budget Oversight Committee
Golf Committee
DATE: October 10, 2003
THROUGH: Jack Doughney, Community Services Administrator
FROM: Jennifer Mikulski, Special Projects Coordinato
CC: Ron Ferris, Angela Wong
SUBJECT: Palm Beach Gardens Golf Course
Analysis of Letters of Interest
LOI Number 2003 -530
The City of Palm Beach Gardens advertised in June, requesting Letters of Interest for the
"Operation of Municipal Golf Course ". (Copies of the Request for Letters of Interest, Questions
• and Answers and proposals submitted are enclosed for RAB recipients only.) The City received
proposals from four interested parties: Ambach Associates, Billy Casper Golf, Kevin Kern and
OneSource. After a thorough analysis of the proposals submitted, both independently and
comparatively, the findings are as follows:
Exhibit 1 Services Provided
This chart depicts the services to be provided by the proposers compared to those services
currently being provided by the City. The analysis reflects a wide range of potential savings for
the City, with the greatest coming from OneSource's Plan B, saving the City $65,044. The other
proposals all represent a net savings to the City in their respective categories, aside from
OneSource's Plan A proposal. (See Exhibit 2 for further analysis) However, in all scenarios
proposed, the City would still be responsible for annual Debt Service of $583,145.
Exhibit 2 Estimated Expense to the City
The figures on this chart represent how the estimated expenses would be broken down based on
the different proposals. The first column represents the current budget for FY 03/04 for the City.
All numbers in black signify a cost to the City. Expenses for Ambach and Casper are adjusted so
that the allocations are more comparable to the City's budget, without altering their bottom line.
With respect to Kevin Kern's proposal, the "cost" of $66,067 is actually derived from a
reduction in revenue to the City based on his proposal. In addition to that cost, the City would
still be responsible for $261,250 in Pro -Shop related expenses. OneSource's proposals do not
account for the lease of equipment ($33,900). However, both of their proposals provide a $9,200
• cost savings in the Administration portion of the City's Golf Course budget.
• Page 2
Exhibit 3 Net Income Comparison
Proposals from all four companies were evaluated with the City's Projected Net Income Before
Debt of $165,956. This chart depicts the projected savings (cost) based upon the figures
provided. Ambach's proposal of a 12.5% share of revenue is based on uncertain projected
revenues and does not include items such as property taxes. Casper's projected revenue
distribution to the City is based on aggressive projections of revenues and rounds, and does not
include their $84,000 management fee. Kevin Kern's net income is derived from a reduction in
revenue to the City, outweighed by a reduction in expenses. Each of OneSource's proposals
provide for two different levels of service, thus the difference in the projected savings (cost) to
the city between the two proposals.
Exhibit 4 Analysis of Estimated Revenue
This analysis provides the most in depth look at the two proposals that cover all facets of the golf
course operations: Ambach and Casper. Both proposers' revenues are broken down and analyzed
with the current city budget for the next fiscal year, as well as with historical data for the City
over the past three years. Each area is further broken down to show "revenue per round ". Again,
the revenues projected here would be further reduced by the City's Debt Service of $583,145.
Conclusion
In their scopes, all four proposals are unique to each other and impressive independently.
• However, upon further review of the individual elements of each proposal versus the City's
current standing and historical data, the minimal potential cost savings each of the scenarios
provides is ultimately outweighed by the exorbitant risk the City would take in releasing any of
the functions to an outside source.
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