Loading...
2004 01 09 CC Minutes LA QUINT A CITY COUNCIL r-- SPECIAL MEETING I MINUTES JANUARY 9, 2004 A special meeting of the La Quinta City Counèil was called to order at the hour of 9:30. a.m. by Mayor Adolph. PRESENT: Council Members Henderson, Osborne, Sniff, Mayor Adolph ABSENT: Council Member Perkins Mayor Adolph led the audience in the Pledge of Allegiance. PUBLIC COMMENT - None CLOSED SESSION - None CONFIRMATION OF AGENDA - Confirmed - PRESENTATIONS - None WRITTEN CORRESPONDENCE - None APPROVAL OF MINUTES - None CONSENT CALENDAR - None BUSINESS SESSION 1. CONSIDERATION OF GOLF COURSE MANAGEMENT FIRMS FOR SIL VERROCK RANCH. Assistant City Manager Weiss presented the staff report, and advised, a brief - presentation will be provided by each firm. City Council Minutes 2 January 9, 2004 In response to Council Member Osborne, Mr. Weiss stated the contract is anticipated to be a five-year term, and any percentage of revenue fees would be negotiated. He indicated some of the references have been confirmed. Mr. Weiss confirmed for Council Member Henderson that ongoing opportunities will exist for Council to set policy and operational standards for the golf course. He indicated the selected firm will serve as a day-to-day liaison for Council to handle any feedback from the public regarding various aspects of the golf course operation. He stated the branding strategy of the selected firm will be critical as an extension of the Council's philosophy in terms of how people should be treated at the golf facility. Mayor Adolph asked for a simple definition as to the selected firm's job description and responsibility. Mr. Weiss stated the firm will be responsible for the operations, management, and service affiliated with the golf course. They will maintain the golf course at a PGA tournament standard and ensure the operations are efficient, cost effective, and a high-end-resort/country club experience. They will also ensure that the public using the golf course are treated in a professional, courteous, and efficient manner. The firm will also be responsible for the grow-in of the golf course so they are very familiar with the course and able to accept it in full-operational standards. Troon Golf Larry Cole and Andy Anderson, of Troon Golf, gave a brief presentation on the firm's background and qualifications. In response to Council Member Osborne, Mr. Anderson gave a brief overview of the firm's experience with Palmer Design Group. Mr. Cole indicated they have no direct experience with GMA International. In reference to the 2 % management fee, he stated it would apply to gross revenues. He indicated any direct travel costs would be separate and the costs would be split between projects whenever possible. He stated they manage approximately 30 of the top 100 courses with an average contract term of 7-10 years. Mr. Cole and Mr. Anderson responded to several questions by Council Member Sniff as follows: their definition of "high-end" golf is the ultimate- service experience similar to five-star hotels; they manage some courses with green fees near $300/round but the fees generally depend on the location; some of their courses give preferential pricing to residents while profitability thresholds still have to be reached; they manage a number of courses with five-star hotels around the world; their primary market target would be local residents and both national and international golf and leisure travel; they would work closely with the City's advertising firm and would ;,1, ~-\. '. City Council Minutes 3 January 9, 2004 be able to assist in getting significant discounts; and they would provide - development consulting services during construction of the golf course, make sure the cómpleted project is successful through marketing, training, and operation of the facilities. In response to Council Member Henderson, Mr. Cole and Mr. Anderson provided the following comments: they would be responsible for sufficient revenues being in the budget to underwrite operation costs such as landscape maintenance; they would include the Troon Golf branding in advertising only as much as the City wants; an optional national marketing fee would exist if the City wished to be included in their co-op marketing pool; they have experience dealing with requests by non-profit organizations, and would prepare a budget allowing a certain number. of charity events based on what the City wants; and some of the ways they balance golf play between resort guests and.residents are by allowing resident play to fill the gaps in resort play, longer advance reservation policy for resort guests, and resident discount cards to be used a certain number of times during the year. They further confirmed it's reasonable to assume the resort hotel will want a guarantee of tee times, and that tee times every nine minutes is consistent. As for staffing, the superintendent will be onsite prior to irrigation with staff being added as the grow-in process begins and some overlap occurring with - development personnel. In response to Mayor Adolph, Mr. Cole stated the individual project is highlighted in their advertising with Troon Golf as a tag line. As for resident play, they would work closely with the City to determine appropriate policies to allow resident play and still market the project to bring in resort play at a higher cost. Council Member Osborne asked if the use projections were provided to the firms. Mr. Weiss stated it is public information and was provided upon request with at least one firm requesting to see it. Mr. Cole indicated Troon Golf did not request the information. In response to Council Member Henderson, Mr. Cole confirmed they. provide junior golf programs. In response to Council Member Sniff, Mr. Anderson stated a golf course can accommodate 170 to 210 golfers depending on daylight hours. As for facilities, they would initially use development trailers on the site. - City Council Minutes 4 January 9, 2004 Landmark Golf Management Andy Vossler, Ed Schiller, Johnny Potts, and Judy Vossler gave a brief overview of the firm's background and qualifications. In response to Council Member Henderson, Mr. Schiller stated they would use approximately 30 employees during the pre-opening period of the project. Mr. Vossler stated he doesn't see Landmark's involvement with another golf course in the Valley as a problem because they are different golf experiences. Ms. Vossler indicated she feels the identity and quality of SilverRock Ranch will set it apart from other courses. Regarding charity events, Ms. Vossler stated they would develop a formula that would work best for the City and the community, and would find a way to generate revenue from those events. Mr. Schiller commented on their experience in developing junior golf programs, and Mr. Vossler stated activities such as exhibitions, instruction, and group lessons would be provided for the non- youth, beginner golfer. Regarding tee time management, he stated they would meet with the City to develop a policy, which they would be willing to adjust if needed. Ms. Vossler indicated it has been their experience to take care of the residents first, hotel guests second, and then use community business as the filler. Mr. Potts noted it's important for the facility design to accommodate junior golf without interfering with day-to-day activities. In response to Council Member Osborne, Mr. Potts stated they would have no problem working with GMA or Palmer Course Design. Mr. Vossler reviewed the golf courses they currently manage as well as the PGA Tour events they have worked with. He stated at one time they managed three of the top 100 courses and had five in La Ouinta that were in the top 10 courses in the State but noted the ratings are very political. Regarding their criticism of City staff for this project, he stated it was intended as constructive criticism and not directed at anyone individual. He voiced confidence about being able to work with staff. In response to Council Member Sniff, Mr. Potts defined high-end as a quality golf course with a good site, shot-value design, and memorable play, and stated he feels proper supervision will accomplish a high-end project. Mr. Vossler indicated they have 1 2 employees in their "core" company in addition to golf operations at other facilities, and confirmed additional employees can be hired as needed in both the office and operations. Ms. Vossler stated she feels advertising IS only one part of marketing communication because much of it is word of mouth, golf writers, editorial placements, special events, and tournament marketing. She believes the best advertising is a great product with good service. Mr. Schiller indicated a golf course can accommodate 1 60-1 80 golfers in the winter and over 200 City Council Minutes 5 January 9, 2004 with twilight play or when 1 8 holes are not completed. During the summer - they would encourage early morning play and would market the course to local residents and the Los Angeles basin. Mr. Vossler stated the key to resort golf in the summer is onsite hotels that are willing to provide discount rates packaged with golf. In response to Mayor Adolph, Mr. Potts stated he feels Landmark would be able to bring a PGA tournament to this course if anyone can, and noted the Skins Game will be looking for a course soon. Mr. Vossler stated golf tournaments move around depending on who is willing to pay, and noted a golf facility, community, and tournament age together and run in cycles. He feels a real effort is needed to get restarted in the Valley. Ms. Vossler encouraged the City to seek the Bob Hope Chrysler Classic but noted PGA tournaments are currently controlled by sponsor dollars and television. She noted a fine balance exists between .the benefits of marketing a large event such as the Bob Hope tournament versus the time the course is out of commission for daily revenue play. They would look at bringing in a national event that doesn't impact the revenue stream as much as multiple major events. Mr. Potts confirmed Landmark would be available to start work immediately. - Council Member Henderson asked if their proposal would change since the City is looking for golf management for only one course at this time, to which Mr. Vossler responded that the dollars would not change. Council Member Osborne asked if they had looked at the use projections, to which they indicated, "No." OB Sports Golf Management Orrin Vincent gave a brief presentation on the firm's background and qualifications. ¡ In response to Council Member Osborne, Mr. Vincent stated they are not hosting any PGA tournaments currently. He reviewed some of the top-rated courses they have managed, and indicated their average contract term is five years. They feel strongly about the development of new golfers, and are willing to put 25 % of their fee back into the project for player development. In response to Council Member Sniff, Mr. Vincent stated he feels golf play has dropped because of too many golf courses in some areas and not - enough players to pay the increased cost of play; He feels the lack of public golf in the City is a positive aspect of this project, as well as this being the golf capital. He indicated during the season approximately 15,000 City Council Minutes 6 January 9, 2004 retail/resort golf rounds will be played in the Valley, and they will fill the rest of the year by being innovative in bringing in players and using the property for other things such as concerts. He views their responsibilities as being: oversight of the irrigation and grow-in of the course; pre-opening business planning; tournament and group sales; hiring and training of key personnel 60 days before opening; and grand-opening week. He indicated the grass should be planted in August to be ready for next year. He agreed it's essential to have a five-star, golf-oriented hotel onsite as soon as possible, and indicated he believes they have the expertise to draw such a hotel. In response to Council Member Henderson, Mr. Vincent clarified' the recommendation for a five-day period discount rate is because local people have a better chance of doing short-term reservations. He commented on the benefits of playing with a caddy and including such a program in the project. He indicated they use a clock to keep play in check and to stay on schedule. In reference to the nine activities listed as things to do at the golf course, he stated they feel the golf course can be utilized for more than golf. In response to Mayor Adolph, Mr. Vincent stated they have a stadium pricing system wherein each tee time has its own rate. He confirmed they leased the Incline Village golf course for approximately eight years and after they turned it around financially, the City took it back. Council expressed appreciation to the firms for all of the presentations, and concurred to proceed with the ballot procedure at this time. Ballot No.1 Council Member Henderson voted for Landmark Golf Management Council Member Osborne voted for Landmark Golf Management Council Member Sniff voted for Landmark Golf Management Mayor Adolph voted for Landmark Golf Management MOTION - It was moved by Council Members Sniff/Henderson to authorize staff to negotiate a professional services contract with Landmark Golf Management for Golf Course Management Services for SilverRock Ranch. Motion carried unanimously. MINUTE ORDER NO. 2004-06. STUDY SESSION - None MAYOR AND COUNCIL MEMBERS' ITEMS - None ----", - City Council Minutes 7 January 9, 2004 ~ ADJOURNMENT There being no further business, it was moved by Council Members Henderson/Sniff to adjourn. Motion carried unanimously. Respectfully submitted, 9T--- -et ~ JUNE S. GREEK, City Clerk City of La Ouinta, California r- -