HomeMy WebLinkAbout01 9-30-2021 PPT - Desert Willow RFP1City of Palm Desert
CITY COUNCIL STUDY SESSION
Desert Willow Management RFP
September 30, 2021
2City of Palm Desert
Agenda
•Desert Willow (DW) Management RFP
•Intent of the Study Session
•Update on Current Contract
•RFP Key Components
•Recommendations
•RFP Process / Timeline
•Desert Willow Financial Update
•Questions
3City of Palm Desert
Intent of the Study Session
•Update City Council on upcoming Desert Willow
Management RFP process
•Update on the key components of the draft RFP to be
released in October 2021
•Recommended changes to the key RFP components
•Receive feedback and answer questions on the RFP
components and process
•Official action to be taken by City Council in open session
4City of Palm Desert
Current Contract
•Contract with Kemper Sports Management, Inc.
•2 yr. Contract extension approved by City
Council fall 2020
•City Council requested RFP process for Fall 2021
•Contract expires June 30, 2022
5City of Palm Desert
Key RFP Components
•Agreement Term
•Management Fee Structure
•Performance Incentive
•Radius Restriction
6City of Palm Desert
Agreement Term
Management Fee
Current Contract 2022 Recommended
3 years, (2) –1 yr. Extensions
(July 2017-June 2022)
5 years,
5 year Extension Option,
with City Council approval
Current Contract 2022 Recommended
$20,833.33 / month
$250K / Year
Cap-$25K / month
$300K / Year
7City of Palm Desert
Performance Incentive
Current Contract 2022 Recommended
Percentage Management Fee –
5% above $6.5M gross revenues
generated
Cap -$200K (plus annual CPI)
Cap -$200K / Negotiated
based on agreed upon criteria
•Course/Property Condition,
while containing cost –
Cap $150K
•Consumer Ratings -ORCA
Report / USGA Ranking –
Cap $50K
8City of Palm Desert
Radius Restriction (non-compete)
Current Contract 2022 Recommended
Prohibits vendor from operating any
other golf course property within a 20-
mile radius of Desert Willow
Prevents conflict of interest in
marketing/staffing/resource
deployment
1.No Management of golf
courses within City limits or
other municipal courses
2.No Management of
comparable resort courses
within the Coachella Valley
9City of Palm Desert
RFP Schedule
RFP Advertisement and Solicitation October 11, 2021
Voluntary Pre-Proposal/Site Visit
Meeting
October 29, 2021
RFQ/RFP Questions Deadline November 1, 2021
RFQ/RFP Submittal Due Date November 12, 2021
RFQ/RFP Evaluations November 15 –December 3, 2021
Operator Interviews December 6-13, 2021 / December 13-17
Recommendation to City Council January 2022
10City of Palm Desert
11City of Palm Desert
Adjustments:
City Loan Obligation DEBT (2,000,000)$ (2,000,000)$ (2,000,000)$ (2,000,000)$
City Deferred Rent Obligation (285,000)$ (228,000)$ (324,000)$ (420,000)$
City Paid DW Expenses (372,916)$ (657,435)$ (367,697)$ (577,865)$
265,874$ 710,587$ (317,098)$ 819,203$
Adjusted Cash at YE after loan & def rent
repaid
Annual Depreciation (Non Cash) (1,062,033)$ (1,057,971)$ (1,112,306)$ (1,115,871)$
Adjusted Cash After Annual Depreciation (796,159)(347,384)(1,429,404)(296,668)
FYE FYE FYE FYE
2018 2019 2020 2021
Analysis of Desert Willow Operations
Operating Cash at the end of Year 2,923,790 3,596,022 2,374,599 3,817,068
Capital Replacements (Accumulated
Depreciation)(10,304,791)$ (10,211,207)$ (11,269,178)$ (12,381,485)$
Other DEBT:
Capital Lease outstanding (1,493,330)$ (1,595,394)$ (1,145,011)$ (675,976)$
Cash Analysis (12,594,280)$ (12,153,984)$ (13,843,593)$ (13,354,129)$
12City of Palm Desert
Questions: