2007-26616 ResoRESOLUTION NO. 2007-26616
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, BY 5/7T"s VOTE, A WAIVER OF
COMPETITIVE BIDDING, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY, AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A NEW MANAGEMENT AGREEMENT BETWEEN THE
CITY AND PROFESSIONAL COURSE MANAGEMENT I1, LTD. (PCM), UNDER
SUBSTANTIALLY THE SAME TERMS AND CONDITIONS AS THE PRIOR
MANAGEMENT AGREEMENT WITH PCM, DATED OCTOBER 1, 2003, FOR
THE COMPREHENSIVE MANAGEMENT AND OPERATION OF THE CITY'S
GOLF COURSES, CLUBHOUSES AND RELATED FACILITIES, (THE MIAMI
BEACH GOLF CLUB, THE NORMANDY SHORES GOLF CLUB, AND PAR 3
GOLF COURSE, RESPECTIVELY); SAID NEW AGREEMENT HAVING AN
INITIAL TERM OF THREE (3) YEARS, COMMENCING ON OCTOBER 1, 2007,
AND CONCLUDING ON SEPTEMBER 30, 2010, WITH AN OPTION TO
RENEW, AT THE CITY'S SOLE DISCRETION, FOR AN ADDITIONAL TWO (2)
ONE YEAR TERMS; PROVIDED FURTHER THAT, IN CONSIDERATION OF
THE PARTIES' INTENT TO APPROVE AND EXECUTE THE NEW
MANAGEMENT AGREEMENT, THE PRIOR (EXISTING) MANAGEMENT
AGREEMENT SHALL EXPIRE AND TERMINATE, WITHOUT LIABILITY TO
EITHER PARTY, ON SEPTEMBER 30, 2007.
WHEREAS, on October 1, 2003, the City and Professional Course Management II, LTD.
(PCM) entered into an agreement for the comprehensive management and operation of the
Miami Beach Golf Club and related facilities, in accordance with Request for Proposals (RFP)
No. 125-99/00 (the "Prior Agreement"); and
WHEREAS, the term of the Prior Agreement was for an initial term of three (3) years,
expiring on September 30, 2006, with two (2) one year renewal terms, at the City's discretion;
and
WHEREAS, the City exercised its option for the first year renewal term, beginning on
October 1, 2006, and ending on September 30, 2007; and
WHEREAS, accordingly, the second renewal term, if exercised by the City, would
commence on October 1, 2007, and end on September 30, 2008; and
WHEREAS, to date, PCM has managed the Miami Beach Golf Club at a very high level,
receiving positive comments from residents, day guests, and tourists from around the world; and
WHEREAS, PCM has also been greatly involved in the review of the construction
drawings for the Normandy Shores Golf Course, clubhouse and related facilities, lending its
professional expertise; and
WHEREAS, PCM is going to do the grow-in for the newly renovated Normandy Shores
Golf Course and was selected, in accordance with the aforestated RFP No. 125-99/00, as the
top-ranked proposer to manage and operate the Normandy Shores Golf Club, which is currently
estimated to open in the last quarter of Fiscal Year 2008; and
WHEREAS, as aforestated, were the City to exercise the second renewal term and the
Prior Agreement, the projected opening of the Normandy Shores Golf Club would coincide with
the conclusion of said renewal term (or September 30, 2008); and
WHEREAS, it is the Administration's opinion that changing management companies just
prior to, or immediately after, the opening of the new Normandy Shores Golf Club would have a
negative impact on the future success of said Golf Club; and
WHEREAS, at its June 5, 2007 meeting, the Miami Beach Golf Advisory Committee held
a discussion pertaining to an extension of the PCM Agreement and, following the Committee's
appraisal of PCM's overall performance to-date, unanimously passed a motion supporting a
long term contract extension of an additional five years; and
WHEREAS, the issue was also discussed at the June 29, 2007 Finance/ Citywide
Projects Committee, and the Committee voted to accept the Administration's recommendation,
and to bring a new management and operation agreement with PCM for a waiver of competitive
bidding before the City Commission, finding such waiver to be in the best interest of the City;
and
WHEREAS, the new agreement with PCM would have an initial term of three (3) years
and two (2) one year renewal terms, exercisable at the City's discretion (the New Agreement);
and
WHEREAS, while the Administration initially recommended to the Committee that the
term of the New Agreement should commence at the conclusion of the second renewal term
under the Prior Agreement (October 1, 2008), upon subsequent discussion with the City
Attorney's Office (who also consulted with the City's bond counsel), it was determined that, as
the City's golf courses have been improved (in whole or in part) with public financing, including
certain bond-related funding, the particular structure and terms and conditions of the Prior
Agreement, including the maximum allowable Term, was reviewed and approved by bond
counsel, for the purpose assuring that it comply with IRS requirements regarding the tax exempt
status of said bonds; and
WHEREAS, since the Administration and PCM intended that the New Agreement
should have substantially the same terms and conditions as the Prior Agreement, and in order
to continue to maintain the tax-exempt status of the bonds used to improve the City's golf
courses, the City Attorney's Office recommended, and the Administration hereby agrees, that
the most prudent course of action would be to forego exercising the second and final renewal
term under the Prior Agreement (thereby mutually agreeing to a termination of the Prior
Agreement), and recommend that the Mayor and City Commission hereby waive, by 5/7ths
vote, the competitive bidding requirement, finding such waiver to be in the best interest of the
City, and authorize the Mayor and City Clerk to execute the New Agreement which would have
a three (3) year initial term, commencing on October 1, 2007, and ending on September 30,
2010, with two (2) one year options, to be exercised at the City's discretion.
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve, a 5/7tns vote, a waiver of competitive bidding, finding such waiver
to be in the best interest of the City, and authorize the Mayor and City Clerk to execute a new
Management Agreement PCM; under substantially the same terms and conditions as the prior
management agreement with PCM, dated October 1, 2003, for the comprehensive management
and operations of the City's golf courses, clubhouses and related facilities, (the Miami Beach
Golf Club, the Normandy Shores Golf Club, and Par 3 Golf Course, respectively); said new
Agreement having an initial term of three (3) years, commencing on October 1, 2007, and
concluding on September 30, 2010, with an option to renew, at the City's sole discretion, for an
additional two (2) one year terms, in consideration of the parties' intent to approve and execute
a new Management Agreement, the prior Agreement shall expire and terminate, without liability
to either party, on September 30, 2007.
PASSED and ADOPTED this 5th
EST:
a~,uCt~.
CITY CLERK
Robert Parcher
day of September 2007.
Matti Herrera Bower
Vice-Mayor
C:\Documents and Settings\rcpasmik\Desktop\PCM Management Agreement Reso.doc
gPPRO`'ED AS TO
FORM 8~ L~-NGUAGf
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. Da
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving, by 5/7 vote, a waiver of competitive bid for the management of the City's golf courses
and executing a management agreement between the City and Professional Course Management, II, Ltd., for
the City's golf courses, finding such waiver to be in the best interest of the City; further terminating the last year
of the current agreement as recommended by the City's Legal Department.
Ke Intended Vutcome su ortea:
Increase Satisfaction with Recreational Programs
Supporting Data (Surveys, Environmental Scan, etc.): Parks and Recreation appeared as one of the most
important areas affecting resident's quality of life. Of the 79% of residents and 82% of businesses rated the
overall quality of the recreational programs and facilities as excellent or good and 58% of residents stated that
they go to recreational facilities a couple of times a month or more. More recreational opportunities appeared
as one of the than es residents would make to make Miami Beach a better lace to live, work, and la .
Issue:
Shall the Ma or and Commission a rove the Resolution?
item Summaryirtecommenaation:
On October 1, 2003, the City and Professional Course Management II, LTD. (PCM), entered into an agreement
for the comprehensive management and operations of the Miami Beach Golf Club and related facilities in
accordance with request for proposals (RFP) no. 125-99/00 for a term of three (3) years, with two (2) one year
extensions, on a year to year basis. The agreement is in its first year renewal.
Professional Course Management has managed the Miami Beach Golf Club at a very high level, receiving
positive comments from our residents and tourists. PCM is also doing the grow-in for the new Normandy Shores
golf course; and in accordance with the above referenced RFP is also the company selected to manage the
Normandy Shores Golf Club when it reopens. The projected opening of the Normandy Shores Golf Club
coincides with the conclusion of the PCM agreement and it is the Administration's opinion that changing
management companies just prior to or immediately after opening the new Normandy Shores Golf Club would
have a negative impact on the future success of the City's golf courses. Therefore, the Administration
recommends adopting this Resolution, being in the best interest of the City.
Advisory Board Recommendation:
At the June 29, 2007 Finance/ Citywide Prpjects Committee the members. recommended the waiver of the
competitive bidding process and the approval of the extension of the management agreement between
Professional Course Management II, LTD., (PCM) and the Cityfor three years plus two one renewal options, to
include a ninety day termination clause. At its June 5, 2007 meeting, the Miami Beach Golf Advisory Committee
unanimously passed a motion supporting an extension.
Financial Information:
Source of
Funds:
2
3
4
OBPI Total
Amount Account
$125,000 + Miami Beach Golf Club
incentive bonus if # 011- 0970-000322 /included in the
earned FY 07/08 Budget Development
Process
$20,832 Normandy Shores Golf Club
Anticipated # 011- 0975-000322/ included in the
opening 7/1/08 FY 07/08 Budget Development
Process
Approved
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Kevin Smith, Director of Parks & Recreation
Sign-Offs:
Department Director Assistant Ci anager City Manager
KS CM JMG
T:WGENDA\2007\sep0507\Regular\PCM_ Golt Management Agreement Summary Coversheet.doc
O ~
AGENDA ITEM G~T
~~ ~ ~~ ~ ~ DATE 9' ~'U
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 5, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, BY 5I7T"S VOTE, A WAIVER OF
COMPETITIVE BIDDING, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY, AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A NEW MANAGEMENT AGREEMENT BETWEEN THE
CITY AND PROFESSIONAL COURSE MANAGEMENT II, LTD. (PCM),
UNDER SUBSTANTIALLY THE SAME TERMS AND CONDITIONS AS THE
PRIOR MANAGEMENT AGREEMENT WITH PCM, DATED OCTOBER 1,
2003, FOR THE COMPREHENSIVE MANAGEMENT AND OPERATION OF
THE CITY'S GOLF COURSES, CLUBHOUSES AND RELATED FACILITIES,
(THE MIAMI BEACH GOLF CLUB, THE NORMANDY SHORES GOLF CLUB,
AND PAR 3 GOLF COURSE, RESPECTIVELY); SAID NEW AGREEMENT
HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON
OCTOBER 1, 2007, AND CONCLUDING ON SEPTEMBER 30, 2010, WITH
AN OPTION TO RENEW, AT THE CITY'S SOLE DISCRETION, FOR AN
ADDITIONAL TWO (2) ONE YEAR TERMS; PROVIDED FURTHER THAT, IN
CONSIDERATION OF THE PARTIES' INTENT TO APPROVE AND EXECUTE
THE NEW MANAGEMENT AGREEMENT, THE PRIOR (EXISTING)
MANAGEMENT AGREEMENT SHALL EXPIRE AND TERMINATE, WITHOUT
LIABILITY TO EITHER PARTY, ON SEPTEMBER 30, 2007.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
KEY INTENDED OUTCOME SUPPORTED
Increase Satisfaction with Recreational Programs
Funding
Funding for the City's Golf Courses including the operations costs and management fees is
included in the annual budget development process.
September 5, 2007
Commission Memorandum
Miami Beach Golf Courses, Clubhouses and Related Facilities Management Agreement With
Professional Course Management ll, LTD.
Page 2 of 7
BACKGROUND
At the May 16, 2007, City Commission Meeting, the Administration requested the above
item be referred to the Finance /Citywide Projects Committee for discussion. Included in
the referral memorandum were the following salient points of information:
• On October 1, 2003, the City and Professional Course Management II, LTD. (PCM),
entered into an agreement for the comprehensive management and operation of
the Miami Beach Golf Club and related facilities, in accordance with Request for
Proposals (RFP) No. 125-99/00.
The term of the Agreement was for an initial term of three (3) years, expiring on
September 30, 2006, with two (2) one year renewal terms, on a year to year basis.
The City exercised it option for the first year renewal term, beginning on October 1,
2006, and ending on September 30, 2007.
The second renewal term, if exercised by the City, would begin on October 1, 2007,
and conclude on September 30, 2008.
• To date, PCM has managed the Miami Beach Golf Club at a very high level,
receiving positive comments from residents, day guests, and tourists from around
the world. PCM has also been greatly involved in the review of the construction
drawings for the Normandy Shores Golf Course, clubhouse and related faculties,
lending its professional expertise.
• PCM is going to do the grow-in for the new Normandy Shores Golf Course and, in
accordance with the above referenced RFP, was also the proposer selected to
manage the Normandy Shores Golf Club when it reopens (currently anticipated to
be some time in the last quarter of the 2008 Fiscal Year).
Were the City to exercise the second renewal term under the existing PCM
Agreement, the projected opening of the Normandy Shores Golf Club would
coincide with the conclusion of said term (or September 30, 2008). It is the
Administration's opinion that changing management companies prior to, or
immediately after, opening the new Normandy Shores Golf Club would have a
negative impact on the future success of said Golf Course.
The extension of the PCM Agreement was discussed at the June 29, 2007, Finance/
Citywide Projects Committee, which included participation from the Administration, as well
as representatives of PCM. At the conclusion of the discussion, the Committee voted to
accept the Administration's recommendation to bring a waiver of the competitive bidding
process to the City Commission, and approve a new Management agreement with PCM, for
three (3) years, plus two (2) one renewal options. It was also recommended that the City
exercise the second and last renewal term under the existing PCM Agreement
(commencing on October 1, 2007, and ending on September 30, 2008), therefore, the new
Agreement would not commence until October 1, 2008. This action was subsequently
reported to the City Commission on July 11, 2007.
September 5, 2007
Commission Memorandum
Miami Beach Golf Courses, Clubhouses and Related Facilities Management Agreement With
Professional Course Management 11, LTD.
Page 3 of 7
It should also be noted that at its June 5, 2007 meeting, the Miami Beach Golf Advisory
Committee held a discussion of the PCM Agreement extension and, following the
Committee's appraisal of PCM's overall performance to date, unanimously passed the
following motion supporting an extension:
"The Golf Advisory Committee has been very satisfied with the work product
and the considerations provided by PCM and would support the Commission
approving a long term contract extension of an additional five years."
In preparing the waiver of competitive bidding and the new PCM Agreement for consideration by
the City Commission at its September 5, 2007 City Commission Meeting, the Administration met
with the City Attomey's Office, which raised the following concerns:
Under the City's Procurement Ordinance (Section 2-367(e)) the City Commission, upon
written recommendation of the City Manager, may waive competitive bidding if it finds
such waiver to be in the best interest of the City. The waiver is followed by execution of a
negotiated contract. In the instant case, the City Attomey's Office advised the
Administration that the initial recommended action, which contemplated exercising the
second renewal term of the existing PCM Agreement, and also recommending waiver of
competitive bidding for a new Agreement which, by its terms, would not commence and/or
take effect until a year later (October 1, 2008), could be interpreted as contrary to the
intent of, and beyond the scope of, the competitive bid waiver contemplated under 2-
367(e), and therefore subject the City to a potential legal challenge.
Additionally, at the time that the City and PCM concluded negotiations on the Prior
(existing) Agreement, the terms and conditions of said Agreement were reviewed and
approved by the City's bond counsel. This review was critical, as both the Miami Beach
and Normandy Shores Golf Clubs have been, and are being, improved with bond-related
funds. Since the bonds utilized to fund these capital improvements are tax-exempt, the
structure/form of the management agreement for the golf courses must comply with IRS
guidelines (to maintain said bonds tax-exempt and/or in "safe harbor.")
Due to the terms and conditions negotiated in the Prior Agreement, and in particular the
fee structure, the maximum allowable term has to be limited to an initial term of three (3)
years, with two (2) one year renewal options, at the City's discretion. Accordingly, as the
Administration and PCM have agreed to a new agreement with substantially the same
terms, in order to continue to maintain the tax-exempt status of the bonds, the City must
adhere to the three (3) year initial, two (2) year renewal structure.
For the aforestated reasons, the City Administration and City Attorney's Office have
concluded that the most prudent course of action would be for the City to forgo exercising
the second (and final) renewal term under the existing PCM Agreement (thereby said
Agreement would be mutually terminated on September 30, 2007), and hereby recommend
that the Mayor and City Commission waive (by 5/7ths vote) the competitive bidding
requirement), and authorize a new Agreement with PCM, upon substantially the same
terms and conditions as the prior Agreement, finding such waiver to be in the best interest
of the City (for the reasons set forth in this Memorandum and in the attached Resolution).
The effect of the recommended resolution is to award a five year extension to the
agreement, which is one year less than was anticipated in the Committee discussion as the
last option year of the current agreement has to be canceled. At the Commission direction
and discretion the one year difference can be revisited during the term of the new
agreement.
September 5, 2007
Commission Memorandum
Miami Beach Golf Courses, Clubhouses and Related Facilities Management Agreement With
Professional Course Management ll, LTD.
Page 4 of 7
Below are the pertinent points of the new Agreement, which will now also include the
Normandy Shores Golf Club:
1. Commencement Date/Term: October 1, 2007 for an initial three (3) year term,
concluding on September 30, 2010, with two (2) one year renewals, at the City's
sole discretion.
2. Services to be provided: Subject to the terms of this Agreement, Golf Course
Manager shall have the exclusive right, license, privilege, and duty to operate,
manage, maintain, and promote the Golf Course and related facilities in a manner
consistent with the City's policies and procedures and the operations of other
similar first-class facilities. The scope of services required of the Golf Course
Manager under the terms of this Agreement shall include but not be limited to:
Overall Golf Course management in accordance with City golf policy:
a. Pro shop operations
b. Starter services
c. Tee-time reservations
d. Marshaling Services
e. Cart rentals and operations
f. Driving range operations
g. Food and beverage service
h. Grounds/buildings and equipment maintenance to City's specifications and
manufacturers' specifications.
i. Clubhouse maintenance and operation
j. Development of golf training programs
k. Booking of national and international golf tournaments
I. Securing, execution and monitoring of agreements with Miami Beach hotels for use
of the golf course, if approved by the City.
m. Collection and accounting of all revenues.
n. Payment and accounting of all expenses in a timely manner.
o. Formulation and implementation of operating programs, business plans, and
budgets.
p. Handling of Golf Course and related facilities' personnel including employment,
training, and terminations.
q. Preparation of monthly and annual financial operating statements.
r. Maintain the Golf Course buildings, equipment, utilities, and all appurtenances in
conformity with City's specifications and manufacturers' specifications.
s. Plan and cany out advertising and marketing program for the golf courses and
related facilities.
4. Termination for Convenience: At the City's discretion, include a ninety (90)
day termination for convenience clause.
5. Receipts and Disbursements: The Golf Course Managershall establish and maintain
in a bank designated by the City's Chief Financial Officer an operating bank account
for the promotion, operation and management of the Golf Course and related facilities
in the name of the City, with Golf Course Manager as agent and with signature
authority in such employees of the Golf Course Manager as the Golf Course Manager
shall determine.
September 5, 2007
Commission Memorandum
Miami Beach Golf Courses, Clubhouses and Related Facilities Management Agreement With
Professional Course Management ll, LTD.
Page 5 of 7
All revenues collected by the Golf Course Manager from the operation of the Golf
Course and related facilities shall be deposited into such account and Operating
Expenses shall be paid by Golf Course Manager as agent for the City from such
account.
All revenues collected by Golf Course Manager arising from operation of the Golf
Course and related facilities are the sole property of the City, held in trust by Golf
Course Manager for the City for application as provided herein. Any amounts
remaining in said account upon termination of this Agreement for any reason, after
payment of all outstanding Operating Expenses, shall be promptly paid by Golf
Course Manager to the City.
6. Payment to Golf Course Manager: As consideration to the Golf Course Manager for
providing the services herein specified during the initial term and any Renewal Term,
the City shall pay the Golf Course Manager during the initial term and Renewal Term,
if any, the amounts described in (a) below.
(a) The annual management fee for the performance of the services hereunder with
respect to the Fiscal Year for the term of this management agreement including
renewals term shall be $125,000 per golf club (Miami Beach Golf Club/Par 3 and
the Normandy Shores Golf Club (the "Management Fee"). The Management
Fee shall be payable in equal monthly installments due on or before the last day
of each month during the Fiscal Year, and the Golf Course Manager shall be
entitled to draw such amounts from the account base management fee.
7. Incentive Fee: In addition to the Management Fee, the Golf Course Manager shall be
entitled to, and shall receive from the City, an annual incentive fee with respect to
each Fiscal Year during the initial extension term and renewal extension term, if any,
as follows:
The Golf Course Manager will be paid the annual incentive fee for each Fiscal Year of
10% of all gross revenues over $1,875,000 at each golf course derived from the golf
course and related facilities operation. The incentive fee shall be 10% annually for
each Fiscal Year of operations, for the term of the Extension and each Renewal
Term, if any. Gross revenues shall not include gross revenues received by Golf
Course Manager as a concessionaire for the food and beverage and pro shop facility
(merchandise). Gross revenues will include the 5% concession fee paid by Golf
Course Manager to the City for the use of the latter facilities.
Golf Course Manager's annual incentive fee will be earned in full provided the "net
operating income before debt service" as shown on the approved annual operating
budget equals or exceeds $800,000 per year for the Miami Beach Golf Club and
$410,000 per year for the Normandy Shores Golf Club.
Should the "net operating income before debt service" be less than the established
debt service for $800,000, Golf Course Manager's annual incentive fee shall be
reduced proportionately. By example, if the net operating income before debt service
for the Miami Beach Golf Club is $720,000 (10% less) then Golf Course Manager's
annual incentive fee for the Miami Beach Golf Club shall be reduced by 10% for that
specific course. The incentive for each course will be earned individually and based
on the conditions stated above.
September 5, 2007
Commission Memorandum
Miami Beach Golf Courses, Clubhouses and Related Facilities Management Agreement With
Professional Course Management ll, LTD.
Page 6 of 7
In arriving at "net operating income before debt service," there shall be deducted from
Golf Course and related facilities gross revenues the ordinary operating expenses as
set forth in the annual operating budget approved by the City. Extraordinary operating
expenses and/or non-budgeted capital improvements shall not be deducted from
gross revenues in determining "net operating income before debt service."
8. Food, Beverage and Pro Shop Concessions: The Golf Course Manager shall also
operate the food, beverage and pro shop concessions under the attached concession
agreement. The Golf Course Manager shall be responsible for all costs related to
personnel, products, materials, insurance and other related expenses; collect all
revenues and remit to the City five percent (5%) of gross food and beverage and
merchandise sales.
As reported to the Members of the Finance/ Citywide Projects Committee at their June 29,
2007 meeting, each year since the commencement of the Agreement with PCM, PCM has
met and/ or exceeded the City's expectations as they relate to customer satisfaction, resort
golf course conditions, pro-shop and restaurant operations, and financial results. The
revenues collected have paid all operational expenses and covered the debt service of
approximately $800,000 annually. PCM has managed the Miami Beach Golf Club so
successfully the course is now positioned in the golf market as a highly desirable world
class golf destination by our residents, tourists and day guests.
Additionally, it was stressed to the Finance /Citywide Projects Committee that the
Normandy Shores Golf Club is currently in the initial phases of its reconstruction. Prior to its
re-opening, there are a number of major milestones that must be accomplished by PCM.
These include but are not necessarily limited to;
• The grow-in of the course which based on can-ent information is anticipated to begin
sometime in late 2007. The grow-in is anticipated to take 8-10 months dependent
upon agronomic and weather conditions.
• The recruitment, selection and employment of approximately 50- 60 high performing
staff required to successfully manage and deliver expected service standards/
maintenance for the golf course (including the grow-in), the clubhouse (pro-shop,
food and beverage; lockerooms), outside services (starters, bag attendants, golf
cart, driving range and on course beverage services). It is critical to PCM that when
they are recruiting the professional staff in particular (Head Golf Professional, the
Assistant Head Golf Professional, the Golf Course Superintendent and his
assistant, the Food & Beverage Manager etc.) they are able to assure these
individuals they will have a position for more than six months to a year prior to
asking them to in many cases relocate from another area of the state and in most
instances from a secure position they currently hold.
• The pre-opening marketing of the golf club that must begin in late spring of 2008.
• The selection and procurement of all golf course maintenance equipment,
clubhouse FF&E, golf carts leases etc., to be used once the grow-in is complete
and the golf course is open for play.
September 5, 2007
Commission Memorandum
Miami Beach Golf Courses, Clubhouses and Related Facilities Management Agreement With
Professional Course Management ll, LTD.
Page 7 of 7
CONCLUSION
Based on the need to plan appropriately to ensure that the grow-in, pre-opening, opening,
and on-going operations of the Normandy Shores Golf Club are properly planned and
sequenced, and to also ensure the continuation of the on-going successful working
relationship between the City and PCM at the Miami Beach Golf Club, the Administration
supports the recommendations of the Finance/ Citywide Projects Committee and the Miami
Beach Golf Advisory Committee, as modified following consultation with the CityAttomey's
Office, and recommends the adoption of the attached Resolution.
T:WGENDA~200Tsep0507~Regular\PCM _ Golf Management Agreement Memo.doc