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CITY OF CORTEZ
123 ROGER SMITH AVENUE
CORTEZ, CO 81321 |
Creighton Wright
Director of Parks and Recreation
425 Roger Smith Ave
Cortez, CO. 81321
cwright@cortezco.gov
Memorandum
To:
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CORTEZ CITY COUNCIL
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From:
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CREIGHTON WRIGHT, DIRECTOR OF PARKS AND RECREATION |
Date:
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February 13, 2024
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RE:
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Conquistador Golf Course Golf Professional Services Contract
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| DISCUSSION |
Rudosky Golf LLC has served as the Golf Professional Services Contractor for many years, and the most recent contract term was for three years. Rudosky Golf LLC is an admirable partner, collaborator, manager, and golf professional. They have overseen three years of exponential growth in golf revenue and rounds, leading to three consecutive years of the highest revenue (>$482,000) and rounds (>21,000) ever recorded, along with the greatest cost recovery (Revenue/Pro and Maintenance Expenses) ever achieved with an end of year estimate of 98%. This success is attributed to marketing reach, improving course conditions, and great customer service. We like to say that the Conquistador Golf Course is the best golf course at the best value in the Four Corners!
SCOPE
The Scope of Services, Exhibit A, has been adjusted to clean up responsibilities and identify the need for the Golf Professional, Maintenance Team, and City administration to communicate, collaborate, and partner for the success of the golf course.
BASE RATE
The current contract indicates a base rate (included in Exhibit B, Compensation) is $36,000 and has remained the same for two contract terms (6 years). The current contract does not include any base rate increases. Staff proposes that the base rate be increased to $40,500, a 12.5% increase. Given the inflation during the past three years and the first-class service and management received from Rudosky Golf, staff believes that adjusting the current base rate appears reasonable. Following this year, we suggest another similar increase up to a total base rate of $45,000 (i.e. a $9000 increase over the current base rate). After the increase to $45,000, the proposed contract contains an annual inflation escalation rate consistent with the Cost of Living Adjustment the City provides its employees, if any.
BONUS STRUCTURE
The current contract includes a bonus structure for annual revenue increases year over year. While we hope that rounds and revenue will continue to increase, the fact is that we are likely near the top of the revenue/rounds peak, and despite an ardent effort by the Golf Pro, revenue/rounds will eventually plateau. Staff proposes a new bonus structure in the proposed contract to reward the effort necessary to maintain a financially strong golf operation. The new structure allows for similar bonus amounts while focusing the incentives on earned revenue, rounds, and outreach events planned to attract new golfers. The goal is to set the incentive level to maintain the near 100% cost recovery rate. |
| BACKGROUND |
The success of the City-owned Conquistador Golf Course is contingent on three distinct parts: outreach and marketing, course conditions, and customer service and course management. The City manages the course conditions through a Golf Superintendent and a team of City staff. The marketing and outreach are managed through a partnership with the Golf Pro and City staff experienced in marketing and outreach. Management of the pro shop, food and beverage, instruction, and regular and tournament play is managed by a contracted Golf Professional.
In general, the Golf Professional Services Contractor (Contractor hereafter) serves as the forward-facing manager of the Conquistador Golf Course. The Contractor’s role differs from the “back of house” maintenance responsibilities, which are the City's responsibilities. The Contractor serves as the primary customer service contact with golf course customers, scheduling tee-times, greeting golf customers, accepting payments, renting carts, selling merchandise, golf equipment, food and beverage, scheduling and facilitating tournaments, and other special play. The agreement attached identifies the roles, responsibilities, partnerships, and collaboration necessary to be successful.
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| FISCAL IMPACT |
| The proposed increase in the annual contract amount was not contemplated when the budget was created. The increase in the base rate represents a $4,500 increase over the budget. A separate budget adjustment is occurring to accommodate the increase in the contract. |
| RECOMMENDATION |
| Staff recommends that the City Council approve the Conquistador Golf Course Golf Professional Services Contract with Rudosky Golf LLC. |
| MOTION |
If agreed upon by the City Council, a possible motion would be:
I move that the City Council approve the Conquistador Golf Course Golf Professional Services Contract with Rudosky Golf LLC. |
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