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Home My WebLink AboutDWGR - Rmbrs Stand-By Golf for Xcess �► CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: AUTHORIZE DESERT WILLOW GOLF RESORT TO REIMBURSE STAND-BY GOLF FOR EXCESS PRE-PAYMENTS ON ACCOUNT FOR WHOLESALE GOLF ROUNDS CONTRACTED FOR FISCAL 2012-2013, IN THE AMOUNT OF $ 30,000, SUBMITTED BY: Paul Gibson, City Finance Director &Treasurer CONTRACTOR: Stand-By Golf 73800 Dinah Shore#104 Palm Desert, California 92211 DATE: June 18, 2013 CONTENTS: Desert Willow Marketing Contract#DW92512 Recommendation By Minute Motion: 1. Authorize Desert Willow Golf Resort to reimburse excess prepayments for golf rounds in the amount of $30,000 for Desert Willow marketing contract #DW92512 to Stand-By Golf, Palm Desert, California, 2. Authorize Desert Willow Golf Resort to credit Stand-By Golf's American Express credit card used to make the initial deposits minus any fees. 3. Authorize the City of Palm Desert Finance Director and the Desert Willow General Manager to authorize this credit card credit. Backqround As part of the Fiscal Year 2012/2013 Budget, Desert Willow Golf Resort and Stand-By Golf entered into a wholesale marketing agreement to sell 6,000 rounds of golf. Stand-By Golf was not able to sell the full amount of rounds this fiscal year by April 30, 2013 per contract. During the Fiscal Year Stand-By Golf deposited $475,000 in pre-payments and then left a credit balance in prepayment of $40,193 as of My 31, 2013 from those pre-payments, Stand-By Golf has requested a reimbursement of $30,000 of the balance, leaving $10,193 on account for future business. Desert Willow wishes to return the credit balance requested to Stand-By Golf. The contract does not specifically identify how returns should be processed, therefore staff requests Council approval for this action. Staff Report Stand-By Golf Pre-payment Reimbursement Authorization Page 2 of 2 June 18, 2013 Fiscal Analvsis The Desert Willow Golf Resort operating account has the funds available to credit the excess prepayment of $30,000 to Stand-By Golf. There is no additional fiscal impact as a result of this action. Submitted by: CITY COUNCIL ACT10N API'ROVF,D � I)+�.Nl�I) RECEIVED (�'Tt-�I;R _ Paul S. Gibson, Director of Finance — MEETtNG DATE �-a 7�o/� AYF.S: L3er�on. S��iPr,t��T.nner,.rl,�2.��-�c�rfl!1�- Appr�'qval� NOES: NDf1�' � � - ABSENT: �o��- ��.. � ,� r''J �..-� ABSTAIN: I.t�nr� . , � ' ! VF,RIFIED DY: ,y�lyh M. Wohlmuth, City Manager Original on File with City Clerk's� f'fice r'3 f � C:\Users\nortegaWppData\Local\Microsoft\Windows\Temporary Internet Files\Content.0utlook\VF496YYN\Stand-By Golf Deposit Reimbursemnent Staff Report 6-19-13.doc i Desert � . ,Will Golf Resort Desert Willow Golf Resort(DWGR) and Stand-By Golf(SBG) Agreement October l, 2012 -June 30, 2013 This Agreement for fiscal year 2012-2013, shall be by and between, Desert Willow Golf Resort And Standby Golf for the purpose of providing Wholesale Tee-Times to Stand-By Golf for re- sak to prospective individual Golfers. Any group golf of 16 or more players will be negotiated separately with the Desert Willow Golf Resort Director of Sales based on availability and rate. Boolclne Policv: 1. Reservations wil l be made via DWGR Golf Operntions Manager or Golfswitch 2 Access to the tee sheet wil)become available fourteen(14)days in advance of the desirod reservaHon date. 3. All reservations mede beyond the fourteen (14) days must be approved by DWGR Management at the negotiated rates below. � The booking fee of S2.00 is included in the below discounted rates;therefore,the amount billed to SBG will include the booking fee and is includcd in the rates below. S. Groups of sixteen(16)or more will 6e negotiated on a per group basis and will require a written contract and price approval by the Director of Sales & Marketing, Tournemcnt Director/ Head Professional, or Director of Golf. 6. Each da ' u ' ess will be billed on the actual day of business to SBG's pro-paid accoun� Init Cancellation Policv: 1. Any and all cancelled reservations must be done through a member of the DWGR golf management staff, who will provide a cancellation number.When discrepancies occur in billing,a cancellation number must be presented to Desert Willow in order to receive credit on the account. 2. SBa agn;es to book no more than three (3) concurnnt tee time blocks per hour unless approved by DWGR Golf Management. 3. SBG will be allowed up to a 10%reduction of total business booked for any particular day five(5)days _. . .. __.,...�. _.,,,. _., . _ prior of the day._of._playm_Reductions.made,insidc..of�ve.(5).,..days.�musLb�_.epproved-.by-,DWC3R ..... ......... . . _._., managemenk 4. A Summary of each day's business will be faxed or o-mailed to SBG at ihe end of each business day.Any and all discrepancies must be brought to the attention of the DWGR accounting office within 3 days of the day of charge. 5. Each evening a reconciliation of al) times currontly being held must occur between the SBG staff end Desert Willow staff.At 6:00 am each morning,a DWGR staff member will balance fa�ced confirmations from SBC3 to the tee sheet.Any discrepancies will bc communicated and fixed immediately to assure no disruption to any guest or customer. 6. Once confirmations are received or upon the day of play, any no shows will be charged at the attached rates.If it is necessary to cancel any confirmed tee times on the day of play, it is at the discretion of the General Manager,Director of Golf,or Tournament Diroctor!Nead Professional,es to what rate will be paid to Desert W illow and will be based on whether the tee dme is resold and at what rate. 7. Refunds for rain or fnclement weather will only be issued at the discretion of the Desert Willow Director of Golf or Head Ciolf Professional and will be consistent with the way the general golfer is bcing held accoun for t Eir reservadon's. In' �al 9/25/20I2 . V � �� -� ,� � PAGE 2 �� Minimum Rate AdverHsine Obli¢ation 1)From October 1.2012 to lenuary 24�2013,SB�cannot advertise or sell DWGR tee times below the agreed upon rates for Sunrise rate of S I 10.00 dt Prime rate of S 120.00 per player before the Twilight rate break. 2)From January 25,2013 to March 31,2013 SBG cannot ndvertise or seil DWGR teo times below the agreed upon Sunrise rate of SI I5.00 8c Prime rate of 5129.00 Mountain View/S139 Firecliffper player before the'I�vilight rate broak. 3) From Aprii 1, 2013 to May 26, 2013, SBG cannot Advertise or sel) DWGR tee times below the agreed upon Sunrise rate of 5105 8t Prime rate of Sa 15 MV Bt 5125 FC per player before the Twilight rate break. 4) From May 27, 2013 to June 30. 2013, SBG cannot advertise or sell DWGR tee times below the agrad upon Sunrise rate of$75&Prime/Mid-Day rate of S55 per player beforo the Twili�ht rate break Ezce lon• SBG may sell unsold pre-booked rounds the day of play at any rate above$65. However,the rates shoul ev be vertised lower then the above stated rate agreemenG In' fal SBC Bookine bljeatioa DWGR Management has egrad W make the following Rate Structure available to SBG with the following conditions.The minimum booking obligated rounds from SBCi during the term of this agreement is: • SBCi has agreed to purchase from DWGR a total minimum of 6,000 rounds played from october 1,2012 through April 30,2013. • If SBG feils b meet the 6,000 round minimum,SBC will be biUed an additional$5 charge,for ail rounds played/purchased for the term. • If SBG meet or exceeds rounds played of 7,000 from October 1, 2012 through April� 30, 2013, an incentive rate will be offered for the remainder of the fiscal year from May 1,2013 through May 31,2013 a rate of$68 per round.From June i,2013 through June 30,2013 a rate of$48 per round. Pre-Pavment Asreement .. ..._. .. ... ._.. _....�_._. _.._____ _ _.._..... _.... ..... . ...� ..... ._. . .... .. ..__. . .. .. `� W�M' In addition,SBG Wagrees to pre-pay 575,000 on the first business day for the months of October, end November, 2012. A pre-payrnent in the amount of$100,000 will be required on the first business day for the months of December 2012,and January 2013.A pre-payment in the amount of$125,000 will be roquired on the first business day for the months February,and March�2013.Charges over and above the pre-payment amounts will be billed to and paid by SBG on a weekly basis to keep the account current beginning in April l,2013 through June 2013. SBCi a ' s DWGR to charge SBG's designated credit cerd for ail pro-payments and accumulated charges over and above th p ent amounts as specified above. Ifiitial 9/25/2012 y PAGE 3 • Confidentialitv Aereement The terms and eonditions of this agreement are eacciusively for SBG and these terms sre to be used solely with DWGR.At no time should this program be shara!with other discount vendors,neighboring golf courses,nor used to levernge or access deeper discounts with other golf operations.It is the desire of DWGR Menagement that the net retes ch nly be availabie to SBC3 accounting staff and rnanagement� 1 itini -�-----•-_. � Agrad d Acceete '��8,+1riMN�w-^"—' thisr�f of 2012 ' ard Mogensen { � r ` � eneral Manager v Desert Willow Golf Resort ' ature " Name: TiNe: Thank you for your continued support and business. 9/25/2012