Title
Consider a memorandum/resolution approving fee increases for the Stonetree Golf Club. (Tabled from July 26, 2022 Regular City Council Meeting)
Summary
DATE: July 19, 2022
TO: Kent Cagle, City Manager
FROM: Joseph Brown, Executive Director of Recreation Services
SUBJECT: Stonetree Rate Structure Increase
BACKGROUND AND FINDINGS:
During the past three (3) years managing Stonetree Golf Club, Indigo Sports has seen steady and substantial increases in expenses related to maintaining the golf course. These changes have led to the proposed rate structure increases for FY23. The most recent rate increase was less than four percent which was solely related to green fees in FY20. Every year the golf course management company submits the annual operating budget. The City shall have final approval and final decision-making authority over the Annual Budget. The contract states that all fees may not be raised without prior approval of the City and such approval will not be unreasonably withheld. The RFP that the City advertised in regard to the current golf course management fee states the following in regard to fees:
Daily Golf Fees
a. Fees and Charges
i. Proposer shall keep a current and comprehensive list of fees for golf play and cart rentals. Standard fees shall be displayed and posted on the website.
b. Establishing of Fees
i. Proposer shall conduct an annual, comprehensive survey of green fee and rental rates at comparable golf courses within the market area and submit recommendations for fee changes to the City Manager or his designee. Current fees shall be included in the proposer's proposal and may be negotiated.
ii. City Council must approve all green fees and cart shed rental rate changes that would exceed 5% in any 12-month period.
Being that the proposed fees are greater than a 5% increase, this proposal requires City Council approval.
The proposed fee increases are related to course standards and course playability. Increases are relat...
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