Title
[ITEM PULLED BY ADMINISTRATION] MOTION TO APPROVE AN AGREEMENT WITH TA GOLF SALES, LLC TO MANAGE AND OPERATE THE RETAIL PORTION OF THE PEMBROKE LAKES GOLF COURSE PRO SHOP FOR AN INITIAL ONE YEAR PERIOD FROM AUGUST 9, 2026, THROUGH AUGUST 8, 2027, WITH AN OPTION TO RENEW FOR TWO ADDITIONAL ONE-YEAR PERIODS FOR YEARS 2027-2028 AND 2028-2029.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. The City owns the premises and golf facility at the Pembroke Lakes Golf Course. The City contracts with Professional Course Management, LTD ("PCM") to operate the Golf Course. The Golf Course includes a Golf Pro Shop where patrons can pay golf fees or purchase retail items such as golf gear and equipment. The Pro Shop is staffed and managed by PCM under the direction of PCM's Director of Golf. Since 1999, the Director of Golf has separately managed the retail business of the pro shop under a separate City agreement.
2. Mr. Trace Alison of PCM is the Director of Golf and owner of TA Golf Sales, LLC. Most recently, Mr. Alison entered into an agreement with the City on August 9, 2023, for an initial one (1) year period with an option to renew for two (2) additional one (1) year periods, which will expire on August 8, 2026.
3. The agreement is revenue generating, whereby TA Golf Sales, LLC remits to the City five percent (5%) of gross revenues before sales tax, derived from merchandise sales of the Golf Pro Shop. Mr. Alison has a point of sale system for the retail business that is separate and apart from the City's point of sale system for sales of golf green fees, cart fees, and other revenues associated with playing golf at the course.
4. Recommend the City Commission approve the agreement with TA Golf Sales LLC to manage and operate the retail portion of the Pembroke Lakes Golf Course Pro Shop for an initial one (1) year period from August 9, 2026, through August 8, 2027, with an option to renew for two (2) additional one (1) year periods for years 2027-2028 and 2028-2029.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: None. This is a revenue agreement. Estimated annual revenue is $8,000
b) Amount budgeted for this item in Account No: 001-000-7006-362025-0000-000-0000 (Commission Pro Shop)
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 year projection of the operational cost of the project:
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
Estimated $8,000 |
|
|
|
|
|
Expenditures |
$0 |
|
|
|
|
|
Net Revenue |
Estimated $8,000 |
|
|
|
|
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable