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HomeMy WebLinkAboutC31200 Landmark Golf Limited Retail/Merchandising Consultant Services at the Palm Desert Visitor CenterCONTRACT NO. C31200) CITY OF PALM DESERT STAFF REPORT REQUEST: AUTHORIZE STAFF TO NEGOTIATE WITH LANDMARK GOLF LIMITED PARTERNSHIP FOR RETAIL/MERCHANDISING CONSULTANT SERVICES AND AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT FOR SAID SERVICES SUBMITTED BY: Donna Gomez, Visitor Center Manager CONTRACTOR: Landmark Golf Limited Partnership 74-947 Highway 111, Suite 200 Indian Wells, CA 92210 DATE: September 29, 2011 CONTENTS: Landmark Golf Proposal Recommendation By Minute Motion: 1. Authorize staff to negotiate with Landmark Golf Limited Partnership for retail/merchandising services; and 2. Authorize the City Manager to execute contract for said services; and 3. Approve an amount not to exceed $15,000 for professional services; and 4. Appropriate $15,000 from unobligated general fund to Account No. 110- 4419-453-3090 Background The Palm Desert Visitor Center has experienced many changes over the last two years; most recently, the relocation of its operation to the current site at San Pablo and El Paseo. Although not yet having experienced a full year at this location, it is believed that an opportunity exists to address the next phase of the Visitor Center's growth and development. This phase would strive to not only create a destination that provides a great service to our visitors, but to also experience a cost savings. With the generation of additional revenue through increased retail sales, there exists the prospect of subsidizing a portion of operational expenses at the Visitor Center. Staff Report Retail/Merchandising Consultant Services September 29, 2011 Page 2 of 3 During the budget process, the concept of hiring a consultant to review the Visitor Center retail program was discussed. Staff proceeded with a Request for Proposals (RFP) seeking a consultant to provide retail and merchandising services to enhance the overall experience at the Visitor Center while increasing revenue. The RFP included a request to complete an analysis of inventory, store layout, customer demands, fixtures, merchandising, vendors, in-store signage, pricing, and suggesting additional revenue - generating opportunities. Five proposals were received as summarized below: Landmark Golf LP, Indian Wells $14,800 Doyle & Associates, Philadelphia, PA $23,500 Double Vision Design, Tustin, CA $35,800 JGA, Southfield, MI $99,000 Julie Ann Designs, Palm Desert* $4,725 *While Julie Ann Designs demonstrated relevant merchandising experience, it was determined that she possessed minimal experience in other areas required within the scope of work. Selection methodology included a review of the following requirements: • Retail experience • Knowledge of local market • Vision for the Visitor Center • Ability and willingness to work with City staff • Cost • Local preference Upon thorough review and discussion by staff and the City's Retail Committee, it was determined that the Landmark team possesses the ability to conduct a professional and complete analysis of Visitor Center retail activities. Landmark demonstrated a strong ability to work closely with existing staff to analyze existing practices and procedures, they possess knowledge of the Coachella Valley tourism industry, and retain professional staff with experience in the areas of both retail merchandising and operations. Additional advantages include their competitive pricing, willingness to meet the needs of the City, availability, and the fact that they are a local business within the Coachella Valley. Staff is requesting an opportunity to negotiate with Landmark in order to determine the most appropriate timeline for undertaking the project, steps of the project, specific expectations, and proposed completion date. Staff believes Landmark can provide the required services and recommends City Council authorize staff to finalize negotiations which shall include an amount not to exceed $15,000 for said professional services contract. gAvisitor center\donna gomez\staff reports\landmark retail consultant services - final.doc Staff Report Retail/Merchandising Consultant Services September 29, 2011 Page 3 of 3 Fiscal Analysis Approval of this agreement will allow staff to hire a retail consultant at a cost not to exceed $15,000. Funds will need to be allocated from the general fund. Additional expenses may be generated from the final analysis and could include the purchase of new fixtures, in-store signage, etc. Although specific costs are unknown at this time, any additional expenses related to this process will be brought before the City Council for its consideration upon the completion of this process. Submitted By: Donna Gomez, Visitor Cent Manager Paul S. Gibson, Director of Finance Approval: hM. Wo'hlmut � ..- Department Head: CITY COUNCIL 'ION APPROVED DENIED RECEIVED OTHER z t►�►:�/I/I��%ii Original on File with Citytark's OMee g:\rda\agenda items\2011\9-29-11\landmark retail consultant services - final.doc August 24, 2011 City of Palm Desert Palm Desert Visitor Center Ms. Donna Gomez, Manager 73-510 Fred Waring Drive Palm Desert, CA 92260 HAND DELIVERED Subject: Request for Proposal, Seeking Professional Retail and Merchandising Consulting Services for the Palm Desert Visitor Center Dear Ms. Gomez, Landmark Golf Limited Partnership is appreciative about the opportunity to submit its response ("Proposal") to the City of Palm Desert's Request for Proposal due August 24, 2011. Landmark Golf Limited Partnership ("Landmark") is a privately owned entity formed in 1993 to develop real estate and promote and operate recreational facilities and events. Landmark is nationally recognized for first class, highly visible and well - managed active facilities and recreational properties, including both retail golf shops and gift shops. Landmark has numerous reasons for desiring to consult with the City of Palm Desert in regard to the retail and merchandising operation at the Visitor Center. Landmark's executive management has reviewed the City's Request for Proposal ("RFP"). Based on the information presented in the RFP, Landmark's Proposal addresses the RFP's submittal requirements. Landmark has proven its abilities in retail and merchandising with success in over forty (40) retail golf and gift shops throughout the United States. Landmark fully believes that its knowledge and capability will provide the City with highly regarded recommendations to increase revenue and maximize net profit through retail merchandising at the Visitor Center. 74-947 Highway 111 • Suite 200 • Indian Wells, California 92210 Phone (760) 776-6688 • Fax (760) 776-6686 www, landmarkgolf.com Landmark looks forward to the opportunity to discuss the enclosed Proposal with the City of Palm Desert. Your contact at Landmark throughout this process is Andy Vossler; he may be reached at the address and telephone number listed below. Andy Vossler President/CEO Landmark Golf Limited Partnership 74-947 Highway 111, Suite 200 Indian Wells, CA 92210 Phone (760) 776-6688 Fax (760) 776-6686 andyv@landmarkgolf.com www.landmarkgolf.com Yours truly, V� Andy VC14sler President & CEO Landmark Golf LP enclosure cc: Joe Gill Tony Campanaro The City of Palm Desert Request For Proposals Seeking Professional Retail And Merchandising Consulting Services For The Palm Desert Visitor Center August 24, 2011 PROPOSAL FOR PROFESSIONAL RETAIL AND MERCHANDISING CONSULTING SERVICES FOR THE PALM DESERT VISITOR CENTER Landmark Golf Limited Partnership ("Landmark") has numerous motivations and reasons for wanting to be actively involved with the Retail and Merchandising operation at the City of Palm Desert Visitor Center ("Visitor Center"). It is Landmark's intention to present an economically sensitive approach for Retail and Merchandising Consultation for the Visitor Center by providing and maintaining high quality service and products for all who visit the Center throughout the year. Landmark welcomes opportunities to expand its client base especially when doing so coincides with an area of Landmark's proven expertise. Landmark believes that partnering with the City of Palm Desert will be in the best interest for the success of the Visitor Center. Lastly, Landmark's ultimate desire is to become the Operations Manager of the Visitor Center to ensure the highest level of customer satisfaction along with significant cost savings to the City. With this goal in sight, Landmark is willing to arrange a credit of the proposed fees for the Retail and Merchandising Consulting Services if contracted within the near future to manage the Visitor Center. Landmark is well aware that for many visitors, their first Palm Desert experience will be with the Visitor Center; the Visitor Center must provide an introduction and welcome to Palm Desert complementing the many wonderful aspects of the City of Palm Desert. Landmark's philosophy is to perform as requested on behalf of the City. Landmark focuses on customer satisfaction, bottom line results and profitability. Landmark has years of experience working with governmental agencies, elected officials and members of jurisdiction's and agency's staffs. Landmark has an expansive history with owning and operating high volume retail golf shops and gift shops, our experience and relationships in purchasing goods will provide the City with the best available strategy to reduce cost of goods sold in order for the City to maximize revenue. Landmark has owned and managed well over forty (40) retail shops in its extensive years in tourism and recreation and developed many of today's operating and merchandise sales procedures that are proven to be time tested and are used today throughout the world. In addition, Landmark has many successful years of experience in tourism outside of golf such as hotels and resorts, Thermal Airport (now Jackie Cochran), rental car business, major local and national events, various grand Landmark Golf Limited Partnership Page 1 openings, concierge services and model home sales complexes. With the expertise of Landmark's in-house Director of Merchandising, Tony Campanaro, we are fully confident Landmark's detailed analysis along with retail and merchandise recommendations will provide the City with the best opportunity to increase revenue and capture the highest net profit through retail sales. Landmark's management fully analyzes all aspects of retail sales including fixtures, floor and retail layout, signage, inventory, vendor relations and buying strategy. This is a list of a few of the items analyzed in order to maximize revenue in retail shops. References Edie Hylton, City of La Quinta, Community Services Director 78-495 Calle Tampico, La Quinta, CA 92253 (760) 777-7032 Frank Robinson, Town of Apple Valley, Town Manager 14955 Dale Evans Parkway, Apple Valley, CA 92307 (760) 240-7000 Steve Robbins, Coachella Valley Water District, General Manager/Chief Engineer P.O. Box 1058, Coachella, CA 92236 (760) 398-2651 Key Staff Identified Landmark's key Personnel ("Key Personnel") for the Retail and Merchandising Consulting Services provided to the City of Palm Desert will be Tony Campanaro and Joe Gill. Mr. Gill will serve as Landmark's contact with the City in regard to the Consulting Services for the Visitor Center. Joe Gill's contact information is: Joe Gill, Director of Operations Landmark Golf Limited Partnership 74-947 Highway 111, Suite 200 Indian Wells, Ca 92210 (760) 776-6688 x 226 phone (760) 776-6686 fax joeg(D,landmarkgolf.com t, y. Landmark Golf Limited Partnership Page 2 Tony Campanaro Landmark Golf Director of Merchandising Tony Campanaro brings to Landmark an impressive background as vice president of major retail department stores such as I. Magnin and Bonwitt Teller. Campanaro joined the Landmark team in 1987 to promote sales of the "Oak Tree" logo on an international basis, centralize purchasing for Landmark's golf operations nationwide and to develop long-lasting vendor relationships to promote prompt service/delivery and cost savings. For Landmark Golf, Campanaro's responsibilities include: the purchase of merchandise for Landmark golf operations, golf shop fashion display/presentations, fixture design, training of sales associates, promotions, pricing and mark-ups as well as overseeing merchandising information systems, inventory control and profit margins. Campanaro also coordinates vendor relations, purchasing and merchandising for special events and golf tournaments such as the Golf Fair for The Skins Game at Landmark Golf Club 1999-2002. As a result of Campanaro's effort with Landmark's retail sales teams, Landmark's golf shops continue to receive numerous regional and national retail awards and recognitions. Joe Gill Landmark Golf Director of Operations "Golf" may have been Joe Gill's first word. Gill grew up in the golf business and is following in the footsteps of his father, Buzz Gill, a former member of the Landmark team. Joe says he was "raised in the company" and has been molded to be part of the "next generation" of Landmark Golf. Gill is a graduate of Coastal Carolina University in Conway, South Carolina, with a Bachelor of Science in Business/Administration. Gill joined Landmark Golf in 2004, immediately focusing attention to golf operations. Gill is a golf professional with his responsibilities including promoting the "Landmark Experience" to the golf world, golf financial/market analysis, business development and r r,. Landmark Golf Limited Partnership Page 3 interfacing with golf club operations/management and ownership of the facilities Landmark Golf is engaged with through golf management contracts. Gill works directly with each facility General Manager and/or Golf Professional by providing guidance and direction to Landmark managed facilities while following Club Policies and Procedures, Annual Operating Business Plans, HR/employee issues, lease and purchase negotiations and marketing/advertising campaigns. Gill understands the importance of success through communication, leadership and an Owners Report he provides monthly to each facility owner. The monthly Owners Report includes an analysis of the month's financial performance, new business items, golf course conditions and monthly "highlights" for each department at the facility. Gill is also Landmark's designated contact for each owner that Landmark is engaged with through a golf management contract. This provides a direct communication channel for each facility's owner with Landmark's management and ownership. Gill has been or is involved as Director of Operations at numerous golf facilities that Landmark has managed or -currently manages. This includes SilverRock Resort in La Quinta, CA, Landmark Golf Club in Indio, CA, The Golf Club of California in Fallbrook, CA, Apple Valley Country Club in Apple Valley, CA, The Ranch Golf Club in San Jose, CA, Mountain Falls Golf Club in Pahrump, NV, Shadow Hills Golf Club in Indio, CA, Landmark at Hemet Golf Club in Hemet, CA, Oak Quarry Golf Cub in Riverside, CA and Coyote Springs Golf Club in Nevada. Landmark Strategy Landmark envisions taking an aggressive approach towards analyzing current retail and merchandising procedures, including inventory, store design and pricing to quickly provide recommendations and programs for the City to implement at the Visitor Center prior to the 2011 fall season. The steps Landmark intends to take in order to quickly and thoroughly complete this assignment include, but are not limited to the following: • Review and analyze current inventory and inventory levels. ■ Analyze previous year's operating information as provided by the City. ■ Create an open -to -buy format based on planned sales, merchandise on order and markdowns. ■ Develop inventory charts based on classifications. Inventory to be based on contribution of sales. ■ Review current annual budget preparations for total retail sales. ■ Review and develop proper inventory controls. ■ Review merchandising locations within the Visitor Center. Landmark Golf Limited Partnership Page 4 ■ Create the proper visual presentation by classifications. Including concepts, fixtures and maintenance. ■ Review and analyze current customer service and product knowledge and assist in development of employee policies and expectations for the future. ■ Understand and identify the Visitor Center clientele. " - ■ Understand the customer demand and price points of merchandise at the Visitor Center. ■ Review and analyze the Visitor Center floor layout, including fixtures, furniture and displays. ■ Provide the City with recommended floor plans, merchandise layouts, fixtures and displays that will enhance the product at the Visitor Center. ■ Develop a high quality and consistent in-store signage program. ■ Produce an overall retail and merchandise recommendation to the City in an effort to fully maximize revenue at the Visitor Center. Accounting of Landmark Consulting Fee Scope of Work Landmark Fee Potential Sub - Complete an analysis of existing inventory contractor Fee and present recommendations for most appropriate merchandise for Palm Desert's $ 1,600.00 $ _ Visitor Center location. Include reasoning behind recommendations. [Study customer demand and recommend appropriate price points $ 800.00 $ _ Provide an analysis of store design and propose new design concepts including rendering of recommended floor plan, layout and use of furniture and fixtures. $ 4,000.00 $ 1,000.00 Provide specifications, photos and costs for recommended store fixtures and furniture and a listing of applicable vendors. $ 3,200.00 $ 1,000.00 Propose an in-store signage program including design and language recommendations. $ 1,600.00 $ _ Prepare a cost analysis and recommendations for increasing revenue and net profit through retail sales. $ 1,600.00 $ _ Total $ 12,800.00 $ 2,000.00 TOTAL "NOT TO EXCEED" $ 14,800.00 Landmark Golf Limited Partnership Page 5 Project Timeline Scope of Work Timeline Complete an analysis of existing inventory and present recommendations for most appropriate merchandise for Palm Desert's Visitor Center location. Include reasoning behind recommendations. 4 Days Study customer demand and recommend appropriate price points 3 Days Provide an analysis of store design and propose new design concepts including rendering of recommended floor plan, layout and use of furniture and fixtures. 8 Days Provide specifications, photos and costs for recommended store fixtures and furniture and a listing of applicable vendors. 5 Days Propose an in-store signage program including design and language recommendations. 5 Days Prepare a cost analysis and recommendations for increasing revenue and net profit through retail sales. 5 Days Overall Estimated Completion 30 Days .r zlt ,. Landmark Golf Limited Partnership Page 6