File #: 17-316    Version: 1 Name: AUTHORIZATION TO ENTER INTO A TWELVE-MONTH AGREEMENT FOR THE OPERATION AND MANAGEMENT OF THE GLEN LAKES GOLF COURSE
Type: Consent Resolutions Status: Passed
File created: 6/15/2017 In control: City Council
On agenda: 6/27/2017 Final action: 6/27/2017
Title: RESOLUTION NO. R17-52 A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY MANAGER TO EXECUTE A LICENSE, MANAGEMENT & OPERATIONS AGREEMENT WITH ARIZONA GOLF VENTURES, L.L.C. FOR THE MANAGEMENT AND OPERATION OF THE GLEN LAKES GOLF COURSE LOCATED AT 5450 WEST NORTHERN AVENUE IN GLENDALE, ARIZONA. Staff Contact: Erik Strunk, Director, Public Facilities, Recreation and Special Events
Attachments: 1. Resolution No. R17-52, 2. License, Management and Operations Agreement
RESOLUTION NO. R17-52

A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY MANAGER TO EXECUTE A LICENSE, MANAGEMENT & OPERATIONS AGREEMENT WITH ARIZONA GOLF VENTURES, L.L.C. FOR THE MANAGEMENT AND OPERATION OF THE GLEN LAKES GOLF COURSE LOCATED AT 5450 WEST NORTHERN AVENUE IN GLENDALE, ARIZONA.
Staff Contact: Erik Strunk, Director, Public Facilities, Recreation and Special Events

Purpose and Recommended Action

This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into a twelve-month management contract and license agreement with Arizona Golf Ventures, LLC and approve Fiscal Year 2017-18 General Fund contingency transfers for amounts not to exceed $176,300, for the continued management and operations of the Glen Lakes Municipal Golf Course.

Background

The Glen Lakes Municipal Golf Course is a 44.6 acre, nine-hole, executive-length golf course located at 5450 West Northern Avenue. The facility opened in 1966 and is a Par 33 totaling 2,403 yards. The city initially purchased the course in 1979 at a cost of $1,104,000 and has operated it through a series of qualified golf course management firms since then. Since October 2012, the current operator has been Arizona Golf Ventures, LLC. Earlier this year, the operator indicated it needed more direct assistance to operate certain aspects of the golf course due to a decline in patronage, revenue, the age and maintenance of the city-owned infrastructure, and increased operating costs. To help facilitate the continued operation of this city-owned facility, it is now necessary for the City to more actively partner with the current operator to oversee and maintain certain maintenance and management functions of the site.

Analysis

Since 2007, trends in the golf industry have shown decline in participation and interest. This has caused financial challenge for golf course owners and operators thr...

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