A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2018-186-WG, FOR GOLF COURSE OPERATION AND MANAGEMENT SERVICES; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A CONTRACT WITH PROFESSIONAL COURSE MANAGEMENT II, LTD; AND, SHOULD THE ADMINISTRATION BE UNABLE TO SUCCESSFULLY NEGOTIATE A CONTRACT WITH PROFESSIONAL COURSE MANAGEMENT II, LTD, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A CONTRACT WITH HAMPTON GOLF, INC.; AND, FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.

On September 10, 2003 the City of Miami Beach Mayor and City Commission authorized the execution of a management agreement with Professional Course Management(Manager) for the Miami Beach Golf Club, with a term of three (3) years, effective October 1, 2003, and expiring on September 30, 2006, with two (2) one year renewal terms.

On September 5, 2007, the Mayor and City Commission agreed to waive the competitive bidding process, finding such waiver to be in the best interest of the City, and approved a new management agreement with Manger which commenced on October 1, 2007, and expired September 30, 2012.

At its July 10, 2012 meeting, the Finance and Citywide Projects Committee discussed the management of the City’s golf courses with the members; discussion focusing on the success that Manager had operating the golf courses since the initiation of the first full-service management agreement was implemented in 2003.

At the conclusion of the discussion the Committee recommended that Manager’s Agreement be extended on a month to month basis; that the Administration meet with Manager to negotiate terms of a new agreement; that City staff provide more detailed information on the cost of other golf course management companies and how the golf courses are maintained; and that the results of negotiations and staff’s report be brought back to the Committee for further direction.

On April 17, 2013, the City Commission adopted Resolution No 2013-28186, accepting the recommendation of the Finance and Citywide Projects Committee (made at its December 20, 2012 meeting) to waive the competitive bidding process for a new management agreement for the management and operation of the City’ Golf Courses, finding such waiver to be in the best interest of the City, and authorized the City Manager to finalize and execute a new management agreement with Manager. 

The initial term of the agreement was for a period of three (3) years, with City option to extend the agreement for two successive one (1) year terms, commencing October 1, 2013, and expiring on September 30, 2018.

On May 16, 2018 the Mayor and City Commission approved issuance of RFP 2018-186-WG for Golf Course Operation and Management Services, which sought proposals for the exclusive right to operate, manage, maintain, and promote the Miami Beach Golf Club and Normandy Shores Golf Course and related facilities including, without limitation, the pro shop, clubhouse, and food and beverage operations and facilities in a manner consistent with the City’s policies and procedures. The RFP was also to include a provision for a public benefit contribution to the City's educational initiative.

On September 12, 2018, the Mayor and City Commission approved the month to month extension of the existing agreement with Professional Course Management, not to exceed ninety days.  Additionally, the issues that arose at the last meeting with respect to complaints from a resident have been resolved and there is no further objection to the award by that individual.

RFP PROCESS

On May 18, 2018 issued RFP 2018-186-WG for Golf Course Operation and Management Services.  RFP responses were due and received on August 3, 2018.  The Procurement Department issued solicitation notices to 341 firms utilizing PublicPurchase.com.  53 prospective proposers accessed the advertised solicitation.  The City received proposals from the following two (2) firms: Hampton Golf, Inc., and Professional Course Management.

The Evaluation Committee appointed by the City Manager, pursuant to LTC# 433-2018, convened on August 22, 2018, to consider the proposals received.  The Committee comprised of Jose Del Risco, Assistant Director, Parks and Recreation Department, Rodney Knowles, Greenspace Division Director, Public Works Department, Omar Luna, Director, City of Miami Springs Parks and Recreation, Gerald K. Schwartz, Resident, Margarita Wells, Assistant Director, Environment and Sustainability Department.

The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal.  The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the ranking of proposers as indicated in Attachment A.

Below is a summary of each firm based on the information provided in the proposals

Professional Course Management (PCM)

PCM’s business strategy has been to manage golf courses exclusively in Dade and Broward counties.  The greatest asset of PCM and its principals are the personal relationships that they have created and maintained over the last 35 years in the South Florida golf market. 

PCM and its staff are proud of their achievements over the past 17 years operating the Miami Beach Golf Club and Normandy Shores Golf Course.  They believe continuity and consistency are the keys to the long-term success of their company.  Their goal is to continue a long mutually beneficial relationship between the City, PCM and the residents of Miami Beach.

Hampton Golf, Inc.

Hampton Golf is a “boutique” style management firm that will only add a new golf facility to their portfolio when they can ensure that their services will continue to exceed their current clients’ expectations and those of their new client.

Hampton Golf’s technological advancements and continued success in competitive golf markets throughout the country, especially within the State of Florida, qualifies Hampton Golf to provide the level of management services the City deserves and should receive.

I have reviewed each firm’s submissions and the results of the Evaluation Committee process.  I find that both firms have excellent qualifications and experience, and have submitted very comprehensive proposals. In considering proposals, I note that the RFP stipulated that evaluation criteria would include qualitative factors (proposer experience, approach and methodology, and public benefit), as well as the cost to the City. While the overall cost is important, selecting an operator that maintains the high standards and level of service currently provided to patrons of the golf clubs is of the highest priority. In fact, service levels are so important that the RFP provided 70 out of 100 possible evaluation points to selecting the best qualified operator, with 30 points allotted for cost.

In considering the best qualified operator, it is important to note that four of the five Evaluation Committee members found that Professional Course Management was the best qualified of the two firms. The Evaluation Committee’s determination is supported by the findings from an independent review analysis conducted by National Golf Foundation consulting (NGF), which at the request of the City, conducted a business analysis of Miami Beach Golf Club (MBGC) and it revealed that MBGC is one of the top municipal golf operations in the country, with an outstanding, very well maintained golf course and net operating income performance that places the facility in the top 2% of municipal golf facilities in the United States, even considering the revenue constraint resulting from resident green fees that are well below ‘market’ rates. Additionally, NGF’s business evaluation found MBGC to be in very good condition, befitting its price point and golfer expectations of “country club for a day”. The opinion is validated by the very strong ratings which MBGC garners though its Golf Outing Evaluation forms, where ‘excellent’ ratings are generally in the 80% to 100% range (depending on golf course component and year), and not a single rating was just ‘fair’ or ‘poor’ among responses over a 5-year period. The NGF report is attached as Attachment B.

After more than 15 years at MBGC and Normandy Shores Golf Course (NSGC), PCM staff has had very little turnover, and thus has significant institutional knowledge with the property. As with golf course conditions, golfers have a level of expectations with overall facility service that is commensurate with MBGC’s premier golf course status.

In addition to golf, the restaurant/bar is heavily used by both golf and non-golf lunch customers for a quality dining experience and both MBGC and NSGC have served as locations for numerous city and neighborhood association meetings. Further providing evidence of their value as a resource to the community, MBGC and NSGC staff goes out to the community to teach the game to children, conducting 6-week sessions at the Scott Rakow, Flamingo Park and North Shore Park Youth Centers.

Finally, as public benefit PCM will continue free junior golf programs that introduce the game of golf to the youth of Miami Beach. From the introductory sessions at each of the youth centers (Scott Rakow, Flamingo Park and North Shore Park) to the twice weekly complimentary Normandy Shores Golf Club Clinics which run throughout the entire school year and the weeklong Summer Golf Camp held with the Parks and Recreation Department, the staff of teaching professionals introduce and instruct the golfers of tomorrow free of charge using the SNAG Coaching Kits and even provide free US Kids golf clubs to the youth of Miami Beach. Additionally, PCM has also installed kid friendly tees at Normandy Shores Golf Club, which coupled with a special junior rate of just $5 the City has established, insure that children can continue applying the lessons learned and practicing the game on the golf course. Further, PCM will support the City’s educational initiatives with a $2,500 a year donation during the term of the contract.

Again, while the Evaluation Committee has determined, and I concur, that PCM has provided the best proposal with regard to qualitative criteria, cost is an important consideration. Accordingly, I recommend negotiating first with PCM in order to possibly reduce the cost of services. If negotiations are unsuccessful, the Administration would then negotiate with Hampton Golf.

Therefore, I recommend that the Mayor and City Commission approve the Resolution authorizing the Administration to enter into negotiations with Professional Course Management; and if unsuccessful in negotiating an agreement with Professional Course Management II, LTD; authorizing the Administration to enter into negotiations with Hampton Golf, Inc.; and further authorizing the Mayor and City Clerk to execute an agreement upon conclusion of successful negotiations by the Administration.