HomeMy WebLinkAboutStaff Report 382-10City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE: OCTOBER 18,2010 CMR: 382:10
REPORT TYPE: ACTION
SUBJECT: Approval of a General Services Agreement with ValleyCrest Golf Course
Maintenance, Inc. in the Amount of $1,875,000 for Maintenance Services and
Sale of Used City Golf Course Maintenance Equipment for $125,000; and
Referral of Golf Course Financial Planning Issues to the Finance Committee
EXECUTIVE SUMMARY
Due to the ongoing fiscal challenges facing the City of Palo Alto's (City) General Fund the
Community Services Department (CSD) recommended, and the Council approved, the
exploration of "contracting out" Palo Alto Municipal Golf Course ("Golf Course") maintenance
services during the 2011 budget process. The recommendation to explore private maintenance
was also suggested in the findings of the Golf Course operational study conducted by Economic
Research Associates (ERA) in 2008. The Executive Summary of the ERA study is attached as
Attachment A.
This report describes the Request For Proposal (RFP) process for Golf Course maintenance that
has resulted in the recommendation of an award of contract to ValleyCrest Golf Course
Maintenance, Inc. (ValleyCrest) to assume Golf Course maintenance responsibilities, beginning
November 1, 2010 for a 30-month term ending on or soon after April 30, 2013 at a cost of
$1,850,000 and a purchase of used golf course equipment at a cost of $125,000. ValleyCrest is
recommended for an award of contract due to its extensive golf course maintenance services
experience, low cost proposal relative to the public maintenance option, and its commitment to
enhance the City'S existing Integrated Pest Management (IMP) program, customer service and,
most importantly, to improve the quality of Golf Course maintenance services to ensure the Golf
Course will remain competitive with neighboring golf courses. The proposed contract between
the City and ValleyCrest is attached as Attachment B.
The report also discuses related Golf Course issues that require the Council's direction and
action in the near future. The current outstanding issues include:
• The need for flood control project mitigation, not only for the physical disruption to the
Golf Course but also for anticipated revenue losses from decreased play during levee
reconstruction; and
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• Consideration of the establishment of an infrastructure reserve for the Golf Course to pay
for capital improvements from positive Golf Course cash flow to reduce the need for
future capital improvement-related debt.
Staff requests that these two items be referred to the Finance Committee for further discussion.
Finally, the report also discusses the intent to make coterminous both the Golf Professional
contract with Brad Lozares and the Pro-Shop lease agreement with Brad Lozares, so the
agreements will terminate concurrently in the month of April 2013. Staff will make a
recommendation to the Council before the end of calendar year 2010.
RECOMMENDATION
Staff recommends that the Council:
1. Authorize the City Manager or his designee to execute the General Services Agreement
(Attachment B) in the amount of $1,850,000 with ValleyCrest for a term of 30 months
beginning November 1, 2010 ending April 30, 2013, and the sale of used golf course
maintenance equipment (Attachment C) to ValleyCrest for $125,000; and
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with ValleyCrest Golf, Inc., for related, additional but unforeseen
work that may develop during the project, the total value of which shall not exceed
$185,000 (1 0% Contingency); and
3. Refer to the Finance Committee the question of how staff should propose fair and
reasonable mitigation for anticipated lost revenues at the Golf Course during the San
Francisquito Creek Joint Powers Authority's (JPA) flood control project.
4. Refer to the Finance Committee the question of whether staff should develop for the
Council's approval a proposal to establish a new infrastructure reserve fund in the
amount of the annual savings above the fully loaded operating costs of the Golf Course
for the eventual replacement of anticipated infrastructure needs at the Palo Alto
Municipal Golf Course.
BACKGROUND
The Golf Course was constructed in the mid-1950's on 184 acres of flat former salt-marsh and
bay fill. The course was designed by noted golf course architect William R. Bell of Pasadena,
California. The Golf Course was designed as an 18-hole facility with a par of 72. The Golf
Course is a classic 18-hole championship course that measures over 6,800 yards from the back
tees. The facility includes a large practice putting green, a three-building Eichler-designed
clubhouse/golf shop complex and parking lot. In the mid 1970's, improvements were made to
replace the clubhouse buildings. At that time, holes 3, 10, 11, & 18 were renovated under the
direction of golf architect Robert Trent Jones, Jr.
The Golf Course is a City of Palo Alto General Fund operation. All excess revenues or shortages
are returned to the City'S General Fund. The Golf Course currently generates sufficient revenues
to support debt service, direct and indirect expenses, and City cost plan charges. There is no
reserve or replacement fund for the Golf Course, consequently; additional debt service is taken
on by the Golf Course when new capital improvement needs arise. The debt service for the
Certificates of Participation, which represents approximately $570,000 annually, will be fully
retired in June 30, 2018.
CMR 382:10 20f8
Presently, the City has entered into both a Golf Professional management agreement and a Pro
Shop lease agreement with Brad Lozares (Lozares) for golf operations. As a result of Internal
Revenue Services (IRS) debt issuance limitations, the management agreement and the lease for
the building are separate contracts. The management agreement includes the following
responsibilities: reservations; green fees collection; starting; and marshalling services. The lease
agreement for the building includes: responsibility for managing golf cart rentals; the driving
range; merchandise sales; and instruction services. The Lozares management agreement with the
City for operating the Golf Course expires December 31, 2010. The lease agreement with
Lozares for lease of the building expires in April 2013. The building lease also includes an
. option to extend the term of the concession 10 additional years, if the option is exercised at the
City's sole discretion.
There is also a separate lease agreement with R&T Restaurant Corporation (R&T) for food and
beverage services at the Golf Course. The R&T lease agreement for food and beverage
operations expires April 20, 2018.
Currently Golf Course turf and irrigation maintenance services are provided by CSD's Parks,
Open Space and Golf Division. CSD oversees daily turf and ground maintenance operations that
include coordination of services between the tenants and City maintenance staff in order to
provide a seamless experience for visitors to the Golf Course. The Real Estate Division of the
Administrative Services Department oversees tenant leases. The Club House and Pro Shop
building maintenance (exterior) and janitorial services are provided by the City'S Public Works
Department, Facilities Management Division.
In 2007, the City Council authorized staff to proceed with an operational analysis of the Golf
Course. The operational analysis was conducted by Economics Research Associates (ERA)
(Attachment A), and provided information on the Bay Area golf market and conditions of the
Golf Course facility; and the current and alternative operating models available for the Golf
Course.
The ERA study was presented to the City Council on November 17, 2008 (CMR: 446:08;
Attachment D). The study concluded that, despite a Bay Area wide decline in golf play, the Golf
Course performance has been relatively strong when compared with similar municipal facilities
in the market area. The recommendations to sustain the long-term viability of the golf course
program from the staff report are summarized below:
1. Retain a golf course design consultant to work with the JPA and the City's staffs to
design an environmentally friendly flood control project that will balance flood control
and recreational use solutions and also benefit the Golf Course.
2. Recalculate the Cost Plan allocation for the Golf Course to a more traditional golf
course operation allocation. This would allow for excess funds to be set aside to
establish a replacement reserve to fund ongoing minor capital improvement andlor
more intensive maintenance.
3. Align the two tenant leases and management contract so they expire concurrently. This
would allow consideration of other, potentially more effective and efficient, operating
options and a smoother transition of operation, should that be deemed advantageous in
the future.
CMR 382:10 30[8
4. Commit to a plan of cost-neutral capital improvements to ensure the Golf Course
remains competitive. That is, proceed with improvements that are economically
justified by increased net operating income stemming from the improvements.
5. Direct Community Services and other relevant City staff to work in cooperation with
the labor union to further evaluate the advantages and disadvantages of private versus
public maintenance.
Since the 2008 Golf Course study was presented to Council, the Golf Course has continued to
experience a decline in annual rounds of play from 74,000 in 2008, to· 72,000 in 2009, and to
68,500 in 2010. In order to keep the Golf Course financially viable budget cuts were made in
2009 and 2010 that continued to erode the resources available for the City-operated maintenance
program. Although the Golf Course managed to end FY 2010 with net revenues of $77,000, this
was achieved with a 40% reduction in staff, which is less than the level of staff needed to
provide comprehensive quality Golf Course maintenance.
As the FY 2011 budget process began, it became clear the City needed to make significant
structural budget reductions to the General Fund with an anticipated deficit of $7.3 million. As
CSD considered alternatives for budget reductions, . the "contracting out" of Golf Course
maintenance services was recommended, not only for the potential cost savings, but also to
return maintenance levels to a standard that allows the Golf Course to remain competitive with
the objective of increasing golf rounds, which has been compromised through numerous years of
program budget cuts.
Staff recommends the approval of a Golf Course maintenance services agreement with
ValleyCrest and replacing in-house maintenance staff with contract personnel. Below, staff will
provide information on the process that was used to arrive at this recommendation and will
discuss the progress and current thinking on the other recommendations listed above, stemming
from the ERA Golf Course study.
DISCUSSION
The process for exploring "contract out" Golf Course maintenance services began in spring 2010
by notifying SEIU of the City's intent to explore contract maintenance services for the Golf
Course. The City and SEIU engaged ina discussion about the City'S financial challenges and
rationale for the need to consider an alternative service delivery for Golf Course maintenance.
Although some ideas were discussed to mitigate the need for contracting out Golf Course
maintenance, such as a regional golf course maintenance agreement between several neighboring
cities, this suggestion was deemed by the City to be financially infeasible.
CSD staff prepared a detailed scope of service, with input from several other City departments
including Public Works, Utilities and Administrative Services (ASD). The Request for Proposal
(RFP) was released in June. A mandatory pre-solicitation meeting was held at the Golf Course
which included a tour of the Golf Course that allow all interested parties to walk the Golf Course
and ask specific questions during the hole-by-hole walk. Five potential bidders attended the pre
bid meeting. Four proposals were received in August when the responses to the RFP were due.
CSD assembled an evaluation panel to evaluate the proposals. The eight member panel included
members of the Golf Advisory Committee, CSD Director, Palo Alto's Golf Course
CMR382:10 40f8
Superintendent, Recreation Division Manager and the Parks, Open Space and Golf Division
Manager. The stated RFP criteria used to evaluate the proposals were:
A. Quality and completeness of proposal;
B. Qualifications & experience of proposer in providing Golf Course Maintenance
Services as stated in this RFP; including experience and qualifications of project
manager & key staff to be assigned to project;
C. Similar experience and expertise in the type of work required, with the City, or with
other municipal golf courses or private golf courses;
D. Demonstrated understanding of the scope of services requested, timeframes,
scheduling ability, ability to provide back up or follow up services, if needed;
E. References/Financial stability of Firm; and
F. The Cost to the City.
Of the four proposals, based on the RFP criteria above, two were determined by the evaluation
panel as more responsive to the RFP. The proposals were submitted by Lozares and ValleyCrest.
Both companies were invited to interview with the panel; the interviews occurred in September.
At the conclusion of the interviews each company was asked to provide a Best and Final
proposal with an emphasis on reducing overall costs with minimal or no impact to the scope of
services defined in the RFP. The "Best and Final" offers were received in mid September.
Concurrently, reference checks were made and, where feasible, site visits were conducted to
evaluate maintenance levels at other golf courses maintained by the firms.
At the conclusion of the RFP process ValleyCrest was unanimously determined by the
evaluation panel to have provided the most complete responsive proposal and thereby it
recommended ValleyCrest as the party to provide private Golf Course maintenance services to
the City. The factors that weighed most heavily on the ValleyCrest recommendation was the
depth of experience exhibited by ValleyCrest and the proposed overall cost savings, which is
approximately $300,000 below the Lozares' "Best and Final" proposal, and" approximately
$500,000 below what it would cost the City to continue Golf Course maintenance services in
house over the 30-month term of the proposed contract. Furthermore, the ValleyCrest
management team displayed a commitment to customer service and high quality maintenance
that the City desires for the Golf Course. ValleyCrest is very interested in working closely with
the City'S water quality control program, environmental goals and the IMP program. ValleyCrest
brings a wealth of knowledge and expertise in horticulture and agronomy that staff believe will
serve the City well as we continue push the boundaries toward excellence in Golf Course
maintenance, sustainability and environmental conservation.
ValleyCrest Golf Course Maintenance is one of five operating divisions of the ValleyCrest
Holding Co. and Subsidiaries. It is the country's largest horticulture maintenance, golf course
maintenance and construction company. ValleyCrest currently maintains over fifty golf
CMR 382:10 50f8
properties located in California, Texas, Florida, Georgia, North Carolina, South Carolina,
Pennsylvania, New Jersey, Massachusetts and Michigan.
Furthermore, ValleyCrest is open and enthusiastic to providing displaced City Golf Course
maintenance staff with an opportunity to join the ValleyCrest Company. Staff was very
encouraged to hear this and will work with ValleyCrest to connect displaced employees with
ValleyCrest. Of the seven regular staff affected by contracting out Golf Course maintenance four
have already made the decision to retire, one has found other employment, and one has bumping
rights per the SEIU labor agreement with the City and will move to the Parks, Open Space and
Golf division of CSD, The remaining staff member will be laid-off as of November 1, 2010;
however, staff is hopeful that a vacancy may emerge in the Parks Open Space and Golf division
over the next month that will provide an opportunity for a transition.
As CSD staff will need to maintain the Golf Course until the effective date of the transition to
ValleyCrest, the proposed negotiated sale of City-owned Golf Course maintenance equipment to
ValleyCrest is preferred for the effective and efficient transition from public to private
maintenance. The City'S Public Works fleet management staff valued the existing Golf Course
equipment, staff then negotiated a fair and reasonable price with ValleyCrest, which has agreed
to pay $125,000 for all major equipment.
As described in the contract (Attachment B), ValleyCrest will occupy the Golf Course
maintenance yard and facilities therein to deliver the Golf Course maintenance services. The City
Attorney's office, ASD Budget and Purchasing Divisions together with Risk Management
provided support in drafting the contract, including review and approval of the occupancy terms
and insurance requirements for use·ofthe City facilities and property.
A third party furniture, nxtures and equipment consultant will be retained by the City to
determine the fair market value (FMV) of all other minor items (tools, supplies and materials)
that remain at the Golf Course maintenance yard. ValleyCrest has agreed to pay for the
remaining items based on this FMV independent furniture, fixtures and equipment consultant's
valuation. This will be completed on or before November 1,2010.
Discussion of Related Golf Course Issues
The topics below relate to the staff recommendations from the 2008 ERA Golf Course study,
summarized on page 3 of this staff report and in CMR: 446:08 Operational Analysis of the City
of Palo Alto Municipal Golf Course (Attachment D) The action items before Council at this time
is the recommendation refer items 1 and 2 below to the Finance Committee for further
discussion.
1. San Francisquito Creek Joint Powers Authority -Flood Control
The Council has requested that the JP A retain a golf course design consultant to work with the
Joint Powers Authority and City staff to design an environmentally friendly flood control project
that will balance flood control and recreational use solutions and that will also benefit the Golf
Course. The JPA has been very supportive of the City's need for fair and reasonable mitigation
measures to the Golf Course for levee improvements; the impact to the Golf Course will include
the need to re-design 4 to 6 holes due to levee realignment and encroachment onto the Golf
Course. The JP A hopes to begin work in summer 2011, but the likelihood of this occurring is
CMR 382:10 60f8
unknown at this time. The impact and related mitigation to the physical impacts to the Golf
Course is moving in a positive direction and staff is confident that a workable win/win design
will be developed. However, the loss of City revenue during the levee reconstruction is difficult
to quantify. Staff does not have a specific recommendation to mitigate expected lost revenues at
this time but does want to bring this issue to the Council's attention and ask that this issue be
referred to the Finance Committee. A possible mitigation to consider is to seek additional and
more comprehensive Golf Course design and planning beyond mitigating for the golf holes
impacted by levee realignment. For a point of reference, during the major capital improvements
at the Golf Course in 1998-99 the City experienced a 25% reduction in annual play; such a
reduction today would translate to $500,000 annually in lost revenues. Staff is working with the
JP A to explore appropriate mitigations as the timeline and levee design work progresses and look
forward to discussing options with the Finance Committee.
2. Golf Course Infrastructure Reserve
Regarding the revision of the Cost Plan allocation for the Golf Course to a more traditional golf
course operation allocation will occur with the reduction of 7 Full Time Equivalent (FTE) to .45
FTE staff previously dedicated to the in-house Golf Course maintenance operation, as city Cost
Plan is allocated based on FTE. The result of the Cost Plan revision, coupled with the lower
overall cost of private Golf Course maintenance, will be a positive cash flow for the Golf Course,
if annual rounds played hold steady at 68,000 or more. It is recommended that revenues above
and beyond the cost of operating the Golf Course be considered for a infrastructure reserve for
ongoing capital improvement needs for the Golf Course. This recommendation aims to reduce
the need for debt when the 1998 bond debt of $570,000 annually expires in 2018. The Golf
Course Advisory Committee believes creating an infrastructure reserve, paid for by the golfing
community, as a very important step for the long-term financial health of the Golf Course. Staff
recommends that this item also be referred to the Finance Committee for further discussion
Other related items for that staff would like Council to be aware of are:
3. Aligning Golf Course Contracts -Food and Beverage, Professional Services, Golf Course
Maintenance and Pro Shop
The recommendation to align the two tenant leases and management contract at the Golf Course,
so they will expire concurrently, remains a staff recommendation. Specifically alignment of
contracts would allow consideration of other, potentially more effective and efficient, operating
options and a smoother transition of operation, should that be deemed advantageous in the future.
The ValleyCrest maintenance contract is strategically aligned with the existing lease agreement
with Brad Lozares for operating the Pro-Shop. Moreover, staff intends to bring an extension of
the existing management agreement with Lozares to the Council before the end of 2010 to align
the management agreement with the Pro-Shop Lease and the proposed ValleyCrest maintenance
agreement expiration date. This would result in 3 of the 4 Golf Course contracts to expire at the
same time, April 2013. The lease' with R&T Restaurant Corporation, who operates the Bay Cafe,
has a term that expires in 2018; options for re-aligning this lease with the other three Golf Course
contracts is also being considered.
4. Capital Improvement
Lastly regarding the recommendation to commit to a plan of cost neutral capital improvements,
to ensure the Golf Course remains competitive, the only CIP improvements recommended at this
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time are those related to the improvements derived at through cooperation with the JP A to design
an environmentally friendly flood control project that will balance flood control with long-term
financial viability and improvements to the Golf Course.
RESOURCE IMPACT
The cost of the proposed ValleyCrest contract for Golf Course maintenance is $1,850,000 for a
term of 30-months and a contingency of $185,000. The CSD budget has sufficient funds to
address the contract and 10% contingency. In addition staff has negotiated a fair and reasonable
price »,ith ValleyCrest for all major City-owned Golf Course maintenance equipment on-site for
$125,000. The total cost savings to the City for entering into the ValleyCrest contract, as
compared to the cost of the City to provide Golf Course maintenance, is expected to be
approximately $500,000 over the term of the proposed contract. .
ENVIRONMENTAL REVIEW
No environmental review is needed at this time. However, should a Golf Course capital
improvement project be considered at a future date all appropriate environmental review and
consideration will take place prior to approval.
ATTACHMENTS
Attachment A
Attachment B
Attachment C
Attachment D
Economics Research Associates Golf Course Operational Study -
Executive Summary
General Services Agreement between the City and ValleyCrest
List of used City Golf Course maintenance equipment
CMR: 446:08 Operational Analysis of the City Palo Alto Municipal Golf
Course
PREPAREDBY: ____________ ~ __ ~ __ _=~=_ __ ~~ ____________ ___
ROBDEGEUS
Division Manager, Recreation Services
DEPARTMENT HEAD APPROVAL: --~--=::.=?4L-"-~~~--~"----------------~S '
Director, Community Services
Department
CITY MANAGER APPROV AL: --_fL-I-----~f__-_I_,I__-----
CMR 382:10 80f8
Attachment A
Economics Research Associates
Palo Alto Muni Operational Analysis Executive Summary
The City of Palo Alto provides golf services through its municipal golf course -Palo
Alto Muni. Presently, the golf course operation and foodoand beverage functions are
the responsibility of private sector providers, while the City maintains the golf course.
• The Bay Area golf market, like nearly every major metropolitan market in the country,
has experienced very soft market conditions over the past six to seven years. The Bay
Area public golf market has been more severely affected and recovered more slowly
than most markets.
• Play at Palo Alto Muni has declined from about 90,000 rounds in 2000 to 76,240
rounds in 2007, a decline of 16 percent over the 2000-2007 period. By comparison,
the average play per public access course in the Bay Area has declined about 12
percent since 2000, with play at the more relevant competitive set of public access
courses down about 17 percent.
• Conditions at most Bay Area public courses have stabilized and there has been
modest improvement in play levels over the past two years. Over the next five-to
ten-year period, the regional golf market is expected to continue to gradually improve
as the "baby boom" population ages in-place and limited expansion of the inventory of
public golf courses occurs.
• Annual play at competitive Bay Area courses ranges from 57,000 to 87,000 rounds,
averaging 70,700 rounds. Palo Alto Muni, at 76,000 rounds, ranks third among the 15
competitive courses surveyed.
• Greens fees at Palo Alto Muni of $36 weekdays and $47 weekends, excluding cart,
are near the top of the range among competitive Bay Area courses, and are deemed
at, or approaching, market levels.
• Palo Alto Muni revenue performance generally is favorable:
The average greens fee is $30.40 which compares with an average of $28.89 for
competitive courses over a range of $19.31 to $37.92 per round.
Cart revenue per round is $4.08, lowest among competitive courses due to very
low cart utilization which stems primarily from the limited course topography and
short distance between greens and tees.
10990 Wilshire Boulevard Suite 1500 los Angeles, CA 90024
310.477.9585 FAX 310.478.1950 www.econres.com
Los Angeles San Francisco San Diego Chicago Washington DC New York London
Range revenue averages $13,600 per tee per year for the 26-tee facility, ranking
the facility among the top of the competitive set of courses.
Merch~ndise sales at Brad Lozares Golf Shop are at a very high level, ranking Palo
Alto Muni as one of the top golf retail operations at municipal courses in the
country.
Given the limited capacity of the clubhouse to accommodate special events, food
and beverage revenue is consistent with the performance at competitive facilities.
• Approximately 20 percent of Palo Alto Muni golfers reside within the City, with the
majority of others residing in other South Bay communities.
• A survey of golfers at Palo Alto Muni revealed a high satisfaction level in terms of the
tee time reservation system, tee time reliability, marshalling, and pace of play. Nearly
90 percent of golfers deemed weekday and 73 percent weekend greens fees
acceptable.
• A very high percentage of golfers rate golf operations (instruction, customer service,
merchandise) "excellent" or "good," while only about one-half rated food and
beverage facilities/services at this level.
• The majority of golfers rated golf course conditions as "fair" or "poor."
• Of those respondents who stated that Palo Alto was not their primary course, primary
reasons were:
Course quality/play experience: 41.1 %
Location: 23.4%
Fees: 12.5%
Tee time availability: 6.8%
Clearly, course quality and play experience, and not fee levels or tee time availability,
are the primary reasons why most people choose another facility over Palo Alto Muni
as their primary course.
• About 40 percent of the golf course master plan improvements were completed in the
1998-1999 course renovation. In light of the cost of completing the master plan
improvements, and the threat of major disruption/impacts related to the San Francisco
Economics Research Associates Project No. 17383 Page 2
Creek Flood Control project, it is prudent to consider limited targeted improvements to
the course.
• The highest priority capital improvements needed for the golf course to remain
competitive in the marketplace are summarized below:
Component
Golf Course
Driving Range
Maintenance Yard
Clubhouse
Soft Costs/Contingency
Total
Amount
($000)
$ 870
600
100
~
$1,884
• The $870,000 allowance for the golf course improvements addresses primarily
problems with original greens and bunkers which require rebuilding. Completion of
the full master plan improvements would likely cost $4 to $5 million, or more, and is
not considered to be cost-effective at this time. At least in the near-to mid-term, it
would appear to be more appropriate to intensify golf course maintenance -including
resumption of the fairway sanding program -than investing in extraordinary golf
course improvements.
• Maintenance staffing levels at Palo Alto Muni compared with Bay Area competitive
facilities is summarized as follows:
Palo Alto Muni
Comparative Courses
Range
Average
Course Maintenance Employees
Full Part Time Total
Time (FTE) (FTE)
9
10-15
12
0-3
2
10
12-17
14
• Excluding irrigation, annual maintenance costs at Palo Alto Muni are compared with
benchmark facilities, as follows:
Economics Research Associates Project No. 17383 Page 3
Palo Alto Muni
Public Provider
Range (5 courses)
Average
Private Provider
Range (10 courses)
Average
Annual
Maintenance
Expenses
($000)
$1,195
$1,033-1,336
$1,171
$ 474-1,105
$ 778
• As with most public agencies, the City of Palo Alto assesses a charge to the golf
course for Citywide overhead services such as human resources, legal, accounting,
budget, management, purchasing, insurance (the City is self-insured), and similar
functions. Referenced as the Cost Plan, currently the assessment totals about
$380,000 per year.
• Clearly, there is a value of the overhead services provided by the City. While it is
difficult to precisely determine the value of these overhead services, an estimate
based on assessing the cost of these services if provided by a typical owner/operator
can be offered:
Overhead Service
On-Site Accounting
Audit
Insurance (liability, general)
Contract Management
Other Services*
Total
Annual
Amount
$ 50,000
25,000
40,000
35,000
75000
$225,000
*Represents portion of typical professional management
fee related to providing human resources, budget, cash
management, accounting and reporting systems, and
other required overhead services.
• Net income accruing to the City from golf operations for FY 2007 is shown after
deducting an allowance for the Cost Plan:
Economics Research Associates Project No. 17383 Page4
City Net Operating Income
Less: Debt Service
Cost Plan
Adjusted Net Income
FY 2007 Net Income ($000)
As Reported Adjusted
$992 $992
( 558) ( 558)
( 380) ( 225)
$ 54 $209
• Under the current operating structure, and assuming completion of the limited capital
improvement program, the golf course is expected to generate $950,000 per year in
net operating income at a stabilized play level, prior to debt service ($559,000 existing
plus $145,000 related to financing proposed capital improvements) and the City's Cost
Plan (overhead) allocation. This compares with about $900,000 reported for 2007
(after deducting an allowance for capital improvement replacement reserves).
Thousands of 2008 Constant Dollars
Projected at Stabilized Play
Actual Cost Adjusted
2007 Plan Cost Plan
Revenue $2,851 $3,148 $3,148
Less: Operating Expenses' 1 859 2098 2098
Net Operating Income $ 992 $1,050 $1,050
Less: Existing Debt Service $ 558 $ 558 $ 558
New Debt Service 145 145
Cost Plan 380 380 225
Replacement Reserve ~ ---1Ql -1Q1
Subtotal $1.033 .$.LJJH $1,029
Net Cash Flow ($ 41 ) ($ 134) $ 21
While net cash flow is projected to decline slightly following the completion of capital
improvements, a more precipitous decline would be expected in the absence of such
a program as the course becomes less competitive.
• The current golf operations agreement is a hybrid structure which is slightly favorable
to the concessionaire. Hypothetically, the golf operations function could be converted
to a more traditional facility lease (concession agreement) or fee-for-service
management agreement. If the City continues to maintain the golf course, nominal
improvement in net cash flow would result from a change in the operating structure.
• The differential between City and private providers maintenance function of the golf
course is estimated at $250,000 to $300,000 per year. Thus, any form of
Economics Research Associates Project No. 17383 Page 5
management, with private maintenance, would likely increase City net income by this
amount of cost savings.
• The City funded the $7 million 1998-1999 capital improvements with a tax-exempt
bond issue. To maintain the tax-exempt status of the bonds, the IRS requires
compliance with several provisions including the form and structure of management.
These provisions, in large part, have influenced the current structure. Altering the
operating structure to a traditional concessionaire agreement or leasing the facility
likely would require modification of the current debt structure.
Economics Research Associates Project No. 17383 Page 6
Attachment B
CITY OF PALO ALTO CONTRACT NO. Cll136681
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 1st day of NOVEMBER, 2010, by and between the CITY OF
PALO ALTO, a California Chartered Municipal Corporation ("CITY"), and V ALLEY CREST GOLF
COURSE MAINTENANCE, INC. , a California Corporation, located at 24151 Ventura Blvd, Calabasas, Ca
91302, Telephone Number: 818-737-3110 ("CONTRACTOR"). In consideration of their mutual covenants, the
parties hereto agree as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services ("Services") described in the Scope of
Services, attached as Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement:
1:8:1 "A" -Scope of Services
1:8:1 "B" -Schedule of Performance
1:8:1 "c" -Compensation
1:8:1 "D" -Insurance Requirements
1:8:1 "E" -Performance and/or Payment Bond
1:8:1 "F" -Liquidated Damages
CONTRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from November 1,2010 to April 30, 2013 inclusive, subject to the provisions
of subsection 3.(b) and Section Q and V of the General Terms and Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this
Agreement in a reasonably prompt and timely manner based upon the circumstances and direction
communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the
Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY ~hall pay and CONTRACTOR agrees to accept as
not to exceed compensation for the full performance of the Services and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );OR
The sum of
amount of
dollars ($
dollars ($
) per hour, not to exceed a total maximum compensation
);OR
o A sum calculated in accordance with the fee schedule set forth in Exhibit C, not to exceed a total
maximum compensation amount of One Million Eight Hundred and Fifty Thousand Dollars
($1,850,000.00), paya.ble over the3Q:;monthtel'l1i,{)fthis'Agreemerit;"'tor:iSefYltesi'peffolrried; as
follows:
CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum
compensation set forth above. Any hours worked or services performed by CONTRACTOR for which
payment would result in a total exceeding the maximum amount of compensation set forth above for
performance of the Services shall be at no cost to CITY.
Tritheeventthilicurrent Golf COul'secoJifiguratiori~; are . changed or : re..:desigrted;a$.(j.,festilt'ofClTY,
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B, The City has set aside the sum of ()ri¢~fhind£et'tEighiYFiVe:Th~ousfujah)61i~s($i8510Dd.nn) for
Additional Services. CONTRACTOR shall provide Additional Services only by advanced,
written authorization from the City Manager or designee. CONTRACTOR, at the CITY's request,
shall submit a detailed written proposal including a description of the scope of services, schedule,
level of effort, and CONTRACTOR's proposed maximum compensation, including reimburs<tble
expense, for such services. Compensation shall be based on the hourly rates set forth above or in
Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum.
CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional Services. Payment for
Additional Services is subject to all requirements and restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
o CONTRACTOR'S compensation rates for each additional term shall be the same as the original
term; OR
B CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each
Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is
applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in
the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco
Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI)
which is published most immediately preceding the commencement of the applicable Additional
Term, which shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall
CONTRACTOR's compensation rates be increased by an amount exceeding five percent of the
rates effective during the immediately preceding term. Any adjustment to CONTRACTOR's
compensation rates shall be reflected in a written amendment to this Agreement.
7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is: Joseph
Vallaire, Golf Course Superintendent, Community Services Dept., Parks and Golf Division, Telephone:
650-329-2175. Invoices shall be submitted in arrears for Services performed. Invoices shall not be
submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed
during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount
of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This
Agreement includes and is limited to the terms and conditions set forth in sections 1 through 6 above, these
general terms and conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications
to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every
individual charged with the performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or certification is required by law,
to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills,
knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally
accepted business practices and performance standards of the industry, including all federal, state, and local
operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this
Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered
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an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be
responsible for employing or engaging all persons necessary to complete the work required under this
Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this
Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely
responsible for directing the work of approved subcontractors and for any compensation due to
subcontractors.
E. T AXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees,
contributions or charges applicable to the conduct of CONTRACTOR's business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with
all applicable federal, state and local laws, ordinances, regulations, and orders.
G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair
in kind, or as the City Manager or designee shall direct, any damage to public or private property that
occurs in connection with CONTRACTOR's performance of the Services, including the storage facility
located on site, made available to Cdntractor by CITY for use during Tertnof Agreemeht at no Cost.
CONTRACTOR shall maintain the building to a minimum of the same condition as when CONTRACTOR
took occupancy. CITY may decline to approve and may withhold payment in whole or in part to such
extent as may be necessary to protect CITY from loss because of defective work not remedied or other
damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY
shall submit written documentation in support of such withholding upon CONTRACTOR's request. When
the grounds described above are removed, payment shall be made for amounts withheld because of them.
H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall
be performed in a professional and workmanlike manner in accordance with generally accepted business
practices and performance standards of the industry and the requirements of this Agreement.
CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR
under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall
conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any
material or service not in compliance with these warranties, including incomplete, inaccurate, or defective
material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for
a period of one year from completion of the Services and shall survive the completion of the Services or
termination of this Agreement.
I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to
determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the
provisions of this Agreement.
J. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests)
developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the
property of CITY without restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written
approval of the City Manager.
K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any
reasonable time during the term of this Agreement and for three (3) years from the date of final payment,
CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to
maintain accurate books and records in accordance with generally accepted accounting principles for at
least three (3) following the terms of this Agreement.
L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall
operate as a waiver on the part of CITY of any of its rights under this Agreement.
M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term
of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by
companies with a Best's Key rating of A-:VII or higher and which are otherwise acceptable to the City'S
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Risk Manager. The City's Risk Manager must approve deductibles and self-insured retentions. In addition,
all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to
form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an
additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an
endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced
in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to
the City's Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of
coverage satisfactory to CITY's Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the
term of this Agreement provide current certificates evidencing the required insurance coverages and
endorsements to the CITY's Risk Manager. CONTRACTOR shall include all subcontractors as insured
under its policies or shall obtain and provide to CITY separate certificates and endorsements for each
subcontractor that meet all the requirements of this section. The procuring of such required policies of
insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this
Agreement.
N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of
section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its
Council members, officers, employees and agents from and against any and all demands, claims, injuries,
losses, or liabilities of any nature, including death or injury to any person, property damage or any other
loss and including without limitation all damages, penalties, fines and judgments, associated investigation
and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees,
courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in
connection with the performance of this Agreement. The CONTRACTOR's obligations under this Section
apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active)
act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by
CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive
the completion of the Services or termination of this Contract.
O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR
certifies that in the performance of this Agreement, it shall not discriminate in the employment of any
person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual
orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR
acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto
Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and
agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
P. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware
of the provisions of the Labor Code of the State of California which require every employer to be insured
against liability for workers' compensation or to undertake self-insurance in accordance with the provisions
of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and
during the performance of the Services.
Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10)
days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its
material obligations under this Agreement, in addition to all other remedies provided by law, the City
Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of
such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY
shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If
the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to Contractor's failure to perform its material obligations under this Agreement.
Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of
studies, sketches, drawings, computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such
materials shall become the property of CITY.
R. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all
covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written
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consent of the CITY. No amendments, changes or variations of any kind are authorized without the written
consent of the CITY.
S. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants
that, in the performance of this Contract, it will not employ any person having such an interest.
CONTRACTOR certifies that no City Officer, employee, or authorized representative has any financial
interest in the business of CONTRACTOR and that no person associated with contractor has any interest,
direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR
agrees to advise CITY if any conflict arises.
T. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of
California.
U. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement
between the parties with respect to the services that may be the subject of this Agreement. Any variance in
the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any
conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
V. NON-APPROPRIA TION. This Agreement is subject to the fiscal provisions of the Charter of the City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the
end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any
time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and
funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Contract.
W. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS.
CONTRACTOR shall comply with the City's Environmentally Preferred Purchasing policies which are
available at the City'S Purchasing Department which are incorporated by reference and may be amended
from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of the City'S Zero Waste Program. Zero Waste best practices include first minimizing and
reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Contractor
shall comply with the following zero waste requirements:
• All printed materials provided by Contractor to City generated from a personal computer and
printer including but not limited to, proposals, quotes, invoices, reports, and public education
materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer
content paper, unless otherwise approved by the City's Project Manager. Any submitted materials
printed by a professional printing company shall be a minimum of 30% or greater post-consumer
material and printed with vegetable based inks.
• Goods purchased by Contractor on behalf of the City shall be purchased in accordance with the
City'S Environmental Purchasing Policy including but not limited to Extended Producer
Responsibility requirements for products and packaging. A copy of this policy is on file at the
Purchasing Office.
• Reusable/returnable pallets shall be taken back by the Contractor, at no additional cost to the City,
for reuse or recycling. Contractor shall provide documentation from the facility accepting the
pallets to verify that pallets are not being disposed.
X. AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal
capacity and authority to do so on behalf of their respective legal entities.
Y. CONTRACT TERMS: All unchecked boxes do not apply to this Contract.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement
on the date first above written.
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CITY OF PALO ALTO
City Manager or Designee
(Required on contracts $85,000 and over)
Approved as to form:
Senior Assistant City Attorney
V ALLEY CREST GOLF COURSE
MAINTENANCE, INC.
By ____________________________ ___
Name --------------------------------
Title ----------------------------------
Telephone: ______ ..,..-__ ---, ______________ _
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EXHIBIT A
SCOPE OF SERVICES
SPECIFICATIONS & REQUIREMENTS
Contract No. C11136681
GOLF COURSE MAINTENANCE PROJECT
Specifications for the services of Golf Course Maintenance of
The City of Palo Alto Municipal Golf Course:
I. SCOPE OF WORK-Golf Course Maintenance
CONTRACTOR shall provide the highest quality of Golf Course maintenance
services and materials, The Contractor agrees to provide the highest quality
commercially accepted methods, procedures and scientific controls for Golf
Course maintenance. "Scientific Controls" is understood to mean practices
based upon recommendations of the University of California, The U.S. Forest
Service, or similarly qualified experts; recommendations in University of
California Cooperative Extension Publications, Consumer Products Safety
Commission Playground Guidelines and information in standard landscape
industry references; This shall include the use of proper knowledge, skills,
materials' and equipment of a timely basis to maintain all areas in a clean, safe,
healthy, and aesthetically acceptable manner during the entire term of this
contract.
The Contractor agrees to be continuously alert in locating and defining problems
and agrees to exercise prompt and proper corrective action. Action times will be
prioritized, and low priority items will be given a time line for corrections. A
PRELIMINARY WRITTEN REPORT SHALL BE SUBMITTED FOR MAJOR
CORRECTIVE PROBLEMS NOT COVERED IN THE CONTRACT. The
Contractor shall communicate to the City ALL hazards that are seen while on
site.
II. GOLF COURSE MAINTENANCE SPECIFICATIONS
1.0 GENERAL REQUIREMENTS
The following Special Conditions and Specifications apply to the Palo Alto Golf
Course, City of Palo Alto, CA.
The Contractor shall furnish all labor, equipment, materials, tools, services and
special skills required to perform the landscape and other maintenance as set
forth in these specifications and in keeping with the highest standards of quality
and performance.
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NOTE: Any and all references to the role or duties of the Golf Services Manager
(GSM) do not relieve the Contractor of any obligation to maintain the golf courses
in conformance to the specifications outlined.
1.1 SAFETY
1.1.1 The Contractor agrees to perform all work outlined in these specifications
in such a manner as to meet all accepted standards for safe practices
during the maintenance and operation and to safely maintain equipment,
machines, and materials or other hazards consequential or related to the
work; and agrees additionally to accept the sole responsibility for
complying with all local, County, State or other legal requirements,
including but not limited to full compliance with the terms of the applicable
OSHA and CAL OSHA Safety Orders, and at all times protecting all
persons, including operator's employees, vendors, members of the public
or others from foreseeable injury or damage to their property. The
Contractor shall identify and inspect all potential hazards at said areas
under maintenance and keep a log indicating date inspected and action
taken.
1.1.2 The Contractor shall ensure all required certifications and training
methods are adhered to and current.
1.1.3 For the safety of the public and contracted employees, the Contractor
shall adhere to all handling and use requirements for pesticides,
chemicals and fungicides used within the scope of these services. The
use of hazardous pesticides or chemicals will require proper certification of
applicators. Notices will be prominently posted in public areas for the use
of hazardous chemicals or pesticides.
1.1.4 When performing work, the Contractor shall make every effort to keep
sidewalks, vehicle travel lanes and driveways open at all times, and honor
golf etiquette by performing maintenance tasks within acceptable golf play
conditions.
1.1.5 It shall be the Contractor's responsibility to inspect and identify any
condition(s) that renders any portion of the areas under maintenance
unsafe, as well as any unsafe practices occurring thereon. The GSM shall
be notified immediately of any unsafe condition that requires correction.
The Contractor shall be responsible for making corrections, including but
not limited to filling holes and replacing valve box covers so as to protect
golfers and other members of the public from injury. The Contractor shall
cooperate fully with the City in the investigation of any accidental injury or
death by the public, the Contractor, or its employees, agents and
representatives, or any other entity occurring in the contracted areas,
including a complete written report thereof to the GSM within twenty-four
(24) hours following the occurrence.
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1.2 PROTECTION OF PROPERTY
1.2.1 During Periods of Inclement Weather:
The Contractor will provide supervisory inspection of the golf course
during regular hours to prevent or minimize possible damage. The
Contractor shall submit a report identifying any storm damage to the GSM
attached to a site map identifying location of damage. The Contractor's
workforce shall continue to accomplish work not affected by such weather
(i.e. clean-up and facility maintenance, as well as work caused by the
inclement weather).
1.2.2 The Contractor shall exercise due care during the performance of work in
protecting from damage all existing facilities, structures and utilities both
above surface and underground the City's property. Any damage to City
property deemed to be caused by the Contractor's neglect shall be
corrected and paid for by the Contractor at no cost to the City.
1.2.3 If the City requests or directs the Contractor to perform work in a given
area, it will be the Contractor's responsibility to verify and locate any
underground utility systems and for taking reasonable precaution when
working in these areas. Any damage or problems shall be reported
immediately to the GSM.
1.3 INTEGRATED PEST MANAGEMENT.
The City of Palo Alto is a charter signatory to the Bay Friendly Landscape
Declaration and has an award-winning Integrated Pest Management (IPM)
Program (2003 Department of Pesticide Regulation IPM Innovator). The IPM has
been successful in large part to efforts of both the Parks and Golf Divisions to
reduce pesticide use (see 2009 Annual Pest Management Report Attachment 1).
Proposals will be evaluated in part by the Contractor's ability to collaborate with
City staff to proactively and effectively reduce the amount and toxicity of
pesticides in favor of non-chemical controls and least-toxic products when
chemical control must be used.
The goal of the City of Palo Alto's IPM Program is to reduce the amount and
toxicity of pesticides used on City property in order to protect water quality and
human health and to avoid ecotoxicity; ecotoxicity is defined as toxicity to birds,
fish, bees, and aquatic indicator species, and potential secondary or non-target
poisoning from consumption of rodent baits based on product Material Safety
Data Sheets (MSDS) and other resources. Preferred pest management
techniques include encouraging naturally occurring biological control, using
alternative plant species or varieties that resists pests; cultivating, pruning,
fertilizing, and irrigation practices that reduce pest problems and optimizing
habitat to reduce pest development, selecting pesticides with the least toxicity to
humans and non-target organisms and applying pesticides only as a last resort.
Toxicity levels are based on criteria used in the City's Pesticide Tier Review
Methodology Attachment 2);
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The followl!la IPM provisions must be met:
.The Contractor must work closely with the GSM and the City's IPM
Coordinator (IPMC) to achieve annuallPM goals which strive to
reduce the amount and toxicity of pesticides that are used while
maintainin the health and aesthetics of the
b. Within 30 days of the contract award and annually on the
anniversary of this Agreement, the Contractor shall submit to the
GSM and the City's IPMC, an Integrated Management Plan that
complies with the City of Palo Alto's IPM Policy. The plan shall be
reviewed annually for updates and modifications. Frequent and
thorough site inspections on foot will be needed to ensure no major
fungal or insect infestations occur.
c. Fungicides, insecticides and herbicides will be approved prior to
use by the GSM with the IPMC consultation. New pesticides may
not be used without prior authorization. Pesticides will be selected
in accordance with the City's goal to minimize the use of ecotoxic,
"Tier 1 JJ pesticides and the total amount of pesticides (active
ingredient) as defined in the City's annual pest report.
d. The Contractor must maintain any pre-existing IPM strategies used
at the golf course unless otherwise determined by the GSA in
consultation with the IPMC.
e. Reduction of Tier 1 fungicides has been a key component of the
Golf Course reducing its pesticide toxicity. When use of fungicides
is necessary, Tier 2 fungicide use must be maximized prior to the
use of Tier 1 fungicides. If Tier 1 fungicides must be used, then Tier
. 1 fungicides that are not ecotoxic (a subset of Tier 1 pesticides)
must be used first. See Attachment 3 for a list of current fungicides
that are used including the preferred Tier 2 products. The City's
Environmental Compliance Program will provide technical
assistance in determining product toxicity and Tier rankings.
f. The City reserves the right to disallow any pest control measure
that it determines may jeopardize the health and safety of people or
the environment or which conflicts with the intention of the City's
IPM policy.
g. Rodent control will be performed by trapping. Baiting or fumigant
use is prohibited unless authorized by the GSM in consultation with
the IPMC. Trapping will be performed using devices that are .
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preapproved by GSM using humane trapping procedures in order
to minimize stress or animal discomfort.
h.. For insect or other invertebrate control,
the first priority will be
to address conditions that are conducive to insect pests and
conserve naturally beneficial insects (or other invertebrates).
Selective applications of the least-toxic pesticides may be used
only when non-chemical control measures have been exhausted.
The following products may not be used for insect control:
i.' Products labeled with the signal word "danger"
ii. Organophosphate products (e.g.,diazinon or chlopyrifos)
iii. Carbamate products (e.g., carbaryl)
iv. Pyrethroid-containing products
Biological controls will be based upon sound information such as
that provided by the University of California. City staffwiH provide
site-specific historical data for known infestations.
i. The Contractor must provide regular pesticide reporting information
in electronic format using the City's Contractor's Pesticide
Application Form (Attachment 4) to be emailed to the GSM and the
City's IPM Coordinator by the 15th of each month for the previous •
month's work unless otherwise agreed upon and approved by the
IPM Coordinator. The Contractor must also have internet access
and the ability to enter pesticide use information online if the City
provides that reporting mechanism.
j. For the City's Annual Pest Management and IPM Report, the
Contractor must also provide information confirming appropriate
training of staff, an annual inventory of hazardous materials and
hazardous wastes to ensure expired or prohibited products are
appropriately disposed and a written summary of the challenges
and successes of IPM program efforts annually. The brief report
format, i~provided.brrsity, ___ &1_ ---
k. Per the City's shared Municipal Regional Storm water permit, IPM
training must be provided to staff at a minimum of once every three
years.
I. Requests for information from the GSM or IPM Coordinator must
"be responded to within 48 hours.
All materials used shall be in strict accordance with and applied within the
standards set forth in the EPA regulations and the California Food and
Agricultural Code.
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The Contractor is responsible for obtaining all required permits and maintaining
the required usage documentation and to comply with all requests from the Santa
Clara County Agricultural Department to inspect records, licenses, training
certificates, equipment and storage facilities. All applicable regulations shall be
strictly adhered to, and all required reporting shall be the responsibility of the
Contractor.
1.3.1 Pesticide Application Timing: Pesticides shall be applied at times that
limit the possibility of contamination from weather, irrigation or other
factors. Early morning or evening application shall be used when possible
to avoid contamination from drift. If applicable, drift control skirted booms
must be used when golfers are present if applicable. Small backpack
applications may be performed based on weather protection and with
provisions made for the safety of golfers. Applicator shall monitor forecast
weather conditions to avoid making application prior to inclement weather
to eliminate potential runoff of treated areas. Irrigation water applied after
treatment shall be reduced to eliminate runoff. When water is required to
increase pesticide efficiency, it shall be applied only in quantities per the
label requirements and of which each area is capable of receiving without
excessive runoff.
1.3.2 Handling of P~sticides: Care shall be taken in transferring and mixing
pesticides to prevent contaminating areas outside the target area.
Application methods shall be used which ensure that materials are
confined to the target area. Spray tanks containing leftover materials shall
not be drained on the site to prevent contamination. Disposal of
pesticides and tank rinsing materials shall be within the guidelines
established in the California Department of Food and Agricultural Code or
EPA regulations.
1.3.3 Equipment and Methods: Spray equipment shall be in good operating
condition, quality, and design to efficiently apply material to the target
area. Avoiding high pressure applications and using water soluble drift
agents will minimize drift.
1.3.4 Recommendations: All pesticide applications shall be in accordance with
written recommendations provided by a licensed Pest Control Advisor
(PCA) with copies of the written recommendations sent to the GSM. A
licensed Qualified Applicator (Qualified Applicator Certificate) shall be kept
on site during application.
1.3.5 Selection of Materials: Pesticides shall be selected from those approved
for golf course use by California Department of Food and Agriculture and
in compliance with Section 1.3 listing prohibited pesticides.
1.4 SOUND CONTROL REQUIREMENTS
1.4.1 The Contractor shall comply with all local sound control and noise level
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rules, regulations and ordinances, which apply to any work performed
pursuant to the contract.
1.4.2 Each internal combustion engine used for any purpose on the job or
related to the job shall be equipped with a muffler of a type recommended
by the manufacturer of such equipment. No internal combustion engine
shall be operated on the project without said muffler.
1.5 EQUIPMENT AND ACCESSORIES
The Contractor to provide all necessary equipment needed to meet the
expectations set forth in this scope of services.
The Contractor shall take all necessary precautions for safe operation of
equipment and the protection of the public from injury and damage from
such equipment.
All accessory equipment must be maintained in a clean, safe, functioning
condition at all times and repainted as required to present an aesthetically
pleasing appearance. Accessory equipment shall include but is not limited
to the following:
NOTE: Must be same or equal to current types and any changes require
prior approval of the GSM.
Repair and replacement of signage, shoe brushes, trash receptacles, ash urns,
greens cups, NCGA tee markers, benches, sand rakes, flags and poles, ball
washers, fairway yardage poles, and sprinkler yardage markers are the
responsibility of the Contractor.
1.6 INQUIRIES AND COMPLAINTS
1.6.1 The Contractor shall have designated responsible management personnel
to take the necessary action regarding all inquiries and complaints that
may be received from or through the City and/or private citizens during
normal work hours. Copies of any and all public correspondence will be
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provided to. the City's centract manager.
1.6.2 Whenever immediate actien is required to. prevent impending injury, death
er property damage to. the facilities being maintained, the City may after
reasenable attempt to. netify the Centracter, cause such acticn to. be taken
by the City werk force and shall charge the full cest thereef to. the the
Centracter.
1.6.3 All cemplaints shall be abated as scen as pessible after netificatien to. the
satisfactien ef the City. If any cemplaintis net abated within a reasenable
time, the City shall be netified immediately ef the reascn fer net abating
the cemplaint, fellewed by a written repert to. the GSM within three (3)
days.
1.6.4 Menthly gclfer surveys will be cenducted, gelfer satisfactien efgelf ceurse
cenditiens indicating geed cr excellent is expected frem 80% er mere ef
respenses.
1.7 MAINTENANCE EMPLOYEES/UNIFORMSNEHICLES
1.7.1 Empleyees: A designated full-time Class "A" Gelf Superintendent and
Mechanic must be assigned full time at the gelf ceurse. Also. an English
speaking superviscr, who. is fully trained in all maintenance
respensibilities, must be en-site at all times while werk is being perfermed
at the Pale Alto. Gclf Ceurse. The Centractor shall provide to. the City,
upen cemmencement ef agreement, all Jeb Classificatiens and Jeb
Descriptiens for duties, respensibilities and services to. be perfermed at
gclf ceurse as described in the agreement.
The Centracter may use temperary empleyees in case ef absences or
emergencies if these emplcyees are trained in gelf ceurse maintenance,
etiquette, and are in uniform so. that we maintain set standards.
All maintenance empleyees shall present a neat, well-greemed
appearance at all times.
Empleyees shall act in a ceurteeus, professienal manner at all times.
Every effert shall be made to. perferm the werk while creating minimum
disturbance to. the gelfers. Any empleyee who. is determined by the G8M
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to be incompetent, disorderly, intemperate or otherwise behaving
objectionably, shall be immediately removed from the crew and replaced
with a satisfactory replacement.
1.7.2 Uniforms: The Contractor shall pay for and bear the maintenance cost of
uniforms for all employees working on the golf course.
The uniform shall be worn as a complete unit and befitted properly. The
uniform shall be cleaned and pressed with no rips, tears or permanent
stains present. The uniform shall include an insignia or logo that refers to
"City of Palo Alto Municipal Golf Course."
In cool weather when a jacket or sweatshirt is needed, the jacket or
sweatshirt shall be worn as the outer garment. All shirts and jackets shall
have the golf course logo and the worker's first name on them.
Protective golf staff equipment shall be determined by the Contractor
when working on the golf course. When working elsewhere at the facility,
but not within the actual field of play, a cotton uniform cap with either of
the golf course logos may be worn, but must be worn with the bill facing
forward at all times.
1.7.3 Vehicles: All vehicles used on the course shall be maintained in good
mechanical and body repair. The vehicles shall be clean both inside and
out at all times. The vehicles driven on public road ways shall bear the
Contractor's company name, which is visible on both sides of the vehicles.
The vehicles used on the course will also display an adopted insignia or
logo that refers to "City of Palo Alto Municipal Golf Course."
Each vehicle shall be equipped to hold all tools and equipment in a neat
and orderly fashion.
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1.8 THE CITY'S RIGHT TO DO WORK I
The City reserves the right to do work as required within the contract area.
The work referenced herein may include but is not limited to capital
improvements and/or alterations intended to improve golf course facilities
and infrastructure. If such projects materially affect the cost to meet the
requirements of the agreement, the Contractor will be asked to submit
justification to support the additional costs. The Contractor and the City
will review the justification in order to consider modifications to the
Financial Conditions of the agreement.
2.0 / SPECIFIC MAINTENANCE REQUIREMENTS
2.0.1 The Contractor shall notify the City prior to use of a sub Contractor on the
golf course. All sub Contractors shall have appropriate insurance and
safety requirements and shall be trained in golf course etiquette
procedures prior to any work being performed.
2.0.3 All golf course related pJans are property of the City and use is restricted
to premises. The Contractor shall make copies as required to ensure the
original s~t of plans remains in good condition.
2.0.4 The Contractor shall perform any required maintenance activities, such as
but not limited to ropes, stakes, traffic control, turf aerification, and
overseeding as a result of golf cart use on the course.
2.0.5 The Contractor shall meet weekly with the golf professional to coordinate
golf events and maintenance activities.
2.1 MAINTENANCE RECORDS
The Contractor shall provide the GSM with a written schedule of the work
to be performed during the following month which includes but is not
limited to: general golf course maintenance, aerification, tree trimming,
pond maintenance, herbicide/insecticide application, fertilization and
replacement of color plants. The report shall be provided in a format
developed by The Contractor and City and approved by the GSM. If the
Contractor finds that it is not possible to maintain the submitted schedule,
the GSM shall be advised and a revised schedule submitted.
2.1.1 The Contractor shall maintain and keep current a log that records all on
going, seasonal and additional work, and maintenance functions
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performed on a daily basis by the Contractor's personnel. Said report shall
be in a form and content acceptable to the GSM and shall be submitted to
the City concurrent with the monthly invoicing. The monthly payment will
not be made until such report is received by the City.
2.2 TREES
2.2.1 Trees trimmed as needed. All tree trimming shall be performed on a
schedule approved by the GSM and in accordance with the tree, shrub
and other wood plan maintenance pruning practices outlined by the
American National Standards Institute, Inc. (ANSI) and International
Society of Arboriculture (ISA) BMP standards. However, such trimming
and pruning is a minimum level and shall not relieve the Contractor of
other responsibilities set forth herein. The Contractor shall consult with the
City's Managing Arborist on issues concerning the removal or treatment of
trees at the Golf Course.
2.2.2 Trees shall be kept in healthy condition and pruned as required to remove
broken or diseased branches. The Contractor shall develop a pruning
program, which will promote proper tree scaffolding, strength, and
appearance consistent with its intended use. The Contractor shall prune
trees to allow wind to pass thro,ugh the tree, reducing and preventing a
"sail" effect when needed.
2.2.3 Trees located adjacent to vehicular and/or pedestrian traffic ways shall be
maintained so as not to obstruct vehicle and/or pedestrian visibility and
clearance. Trees interfering with airport tower vision must be trimmed and
lowered as needed.
2.2.4 Fertilization shall be scheduled as often as required to keep trees in a
healthy and desirable condition per soil analysis and identification of
nutrient deficiencies as outlined in the pruning specifications. Avoid
applying fertilizer to root ball or base of main stem; instead spread evenly
in area of drip zone.
2.2.5 Tree stakes, ties, and guys shall be checked and corrected as needed.
Ties will be adjusted to prevent girdling. Remove unneeded stakes, ties,
and guys as required. Re-stake trees as required using lodge pole stakes.
2.2.6 Prune trees along sidewalks and cart paths to-allow a ten (10) foot
clearance for pedestrians and golf carts and fifteen (15) feet above curb
and gutters for vehicular traffic.
2.2.7 Ailing or stunted trees which fail to meet expected growth will receive
additional nutrient treatments to correct any deficiencies. Terminally
diseased trees are to be removed per the City's removal policy and
procedures.
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2.2.8 Surface roots, which become maintenance or appearance problems, will
be removed or additional soil and sod cover shall be placed as required to
prevent damage to adjacent areas, mowers and golf carts. No weed whip
marks or herbicides around exposed roots or trunks.
2.2.9 Any trees that are blown over shall either be removed and replaced or
topped and righted at the Contractor's expense.
2.2.10 The Contractor shall develop a Tree Management Plan within six (6)
months of commencement of the Agreement, approved by the GSM, for
maintenance of existing trees, removal of dead or diseased trees, and
replacement of aging trees. The Plan will be reviewed by the City's
Managing Arborist for comments and amendments before being accepted
by the City.
2.2.11 Any dead tree at no fault to" the Contractor shall be removed (with the
City's prior approval), including stump grinding and repair of such area at
the Contractor's expense.
2.2.12 Any dead tree at fault of the Contractor shall be removed (with the City's
prior approval) and replaced per the City Tree Ordinance at the
Contractor's expense.
2.2.13 The Contractor shall plant and care for up to 50 new trees each year of
the contract. Trees will be provided by the Contractor. Salt tolerant trees,
recycled water tolerant, wind breaks, maximum height requirements
(airport) will be considered when selecting trees.
2.3 SHRUBS
2.3.1 Prune shrubs to retain as much of the natural informal appearance as
possible.
2.3.2 Shrubs used as formal hedges or screens shall be pruned as required to
present a neat, uniform appearance.
2.3.3 Remove any spent blossoms or dead flower stocks as required to present
a neat, clean appearance.
2.3.4 Plants growing over curbing and/or sidewalks shall be trimmed on a
natural taper rather than vertical so as not to appear to be hedged.
2.3.5 Schedule the application of a commercial fertilizer as often as required to
promote optimum growth and healthy appearanceto all shrubs.
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2.3.6 Any plant requiring removal shall be replaced by the Contractor.
2.4 GROUND COVER -NATIVE GRASSES
2.4.1 Apply all chemical control (e.g. pesticides) as required and in
conformance with the Golf Course Integrated Pest Management Plan that
will be approved each year (page 6; section 1.3) to control or prevent pest
infestations to protect ornamental plantings.
2.4.2 Trim ground cover adjacent to walks, walls and/or fences as required for
general containment to present a neat, clean appearance.
2.4.3 Cultivate and/or spray herbicide to remove broad-leafed and grass weeds
as required (and in conformance with the Golf Course Integrated Pest
Management Plan that will be approved each year (page 6; section 1.3).
Shrub beds shall be maintained in a weed free condition.
2.4.4 Keep ground cover trimmed back from all controller units, valve boxes,
quick couplers, or other appurtenances or fixtures. Do not allow ground
covers to grow up trees, into curbs, or on structures or walls. Keep
trimmed back approximately 4 inches from structure or walls.
2.4.5 Fertilization: Schedule fertilization of all ground cover areas with a
commercial fertilizer as often as required to promote healthy appearance.
Any fertilizer or chemicals must be applied is strict adherence with
manufacturer's directions to avoid contamination of waterways or
disturbance of natural resources. Fertilizers that contain pesticides must
be reported to the IPMC on the Contractor's Pesticide Application Form.
2.4.6 Ground cover plants shall be added as needed to ensure a solid mass
planting in conformance with the original intent.
2.5 PEST CONTROL ON PLANTS
2.5.1 The Contractor shall provide complete and continuous control and/or
eradication of all plant pests or diseases in conformance with the Golf
Course Integrated Pest Management Plan (page 6; section 1.3).
2.5.2 The Contractor shall supply the proper chemical designated for the pests
to be controlled. Any pesticides or chemicals must be applied in strict
adherence with manufacturer's directions to avoid contamination of
waterways or disturbance of natural resources and be in conformance with
the Golf Course IPM Plan that will be approved each year.
2.5.3 The Contractor shall obtain all necessary regulatory permits and assume
responsibility for the use of all chemical controls.
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2.6 IRRIGATION SYSTEM:
The Contractor will assume all responsibilities for maintenance and repair
of all 2 inch and smaller pipe and all components of the irrigation system
such as sprinkler heads, valves, valve boxes, restraints, gaskets, swing
joints, quick couplers, saddles, electrical, controller satellites, and
hardware of the Palo Alto Golf Course irrigation system. All expenses for
parts and labor will be paid for by the Contractor. When replacing steel
nuts and bolts the Contractor will use only highest grade stainless steel.
All components will be replaced with same manufacture and models as
components being replaced unless otherwise approved by GSM.
2.6.1 EFFICIENT USE OF WATER:
2.6.1.1 Considerations must be given to soil texture, structure, porosity,
water holding capacity, drainage, compaction, precipitation rate, run off,
infiltration rate, percolation rate, evapotranspiration, seasonal
temperatures, prevailing wind condition, time of day or night, type of grass,
plant and root structure. This may include syringing during the day and
watering during periods of windy weather.
2.6.1.2 The Contractor shall be responsible for daily monitoring all systems
within premises and correcting for coverage, adjustment, clogging of lines
and sprinkler heads, removal of obstacles, including plant materials which
obstruct the spray.
2.6.1.3 The soil moisture content on greens, tees and fairways shall be
checked regularly and appropriate adjustments made. Adequate soil
moisture shall be determined by visual observation, plant resiliency, and
turgidity, examining cores removed by soil probe, moisture sensing
devices and programming irrigation controllers accordingly.
2.6.1.4 The Contractor shall observe and note deficiencies occurring from
the original design of facilities and review these findings with the GSM so
necessary improvements can be considered.
2.6.1.5 All leaking or defective valves, lines, sprinkler heads, and quick
couplers shall be repaired within twenty-four (24) hours at the expense of
the Contractor. A report of such repairs shall be given to the GSM weekly.
2.6.1.6 The Contractor shall turn off all controllers when it is not necessary
to irrigate due to adequate rainfall.
2.6.1.7 The Contractor shall monitor reclaimed water and potable water.
Reclaimed water shall not exceed 65% and potable water costs shall not
exceed $250,000. The Contractor shall notify GSM if these costs exceed
$225,000. As conditions dictate GSM may approve additional potable
water use.
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2.6.2 SYSTEM MAINTENANCE
The Contractor is aware of the current state of the golf course irrigation
system and accepts full responsibility for the repair and maintenance of
the system as is. Any required replacements, repairs, and maintenance to
existing components of the system to ensure the system remains in
operation are the sole responsibility of the Contractor. Appropriate
personnel shall be trained in the use of the master irrigation computer.
2.6.2.1 All controllers are to be kept pest-free, clean and visible. All parts and
repairs necessary to maintain the operation are the responsibility of the
Contractor.
2.6.2.2 The computer and software (including annual service agreements)
necessary to operate and maintain the irrigation control systemshall be
maintained by the Contractor. The Rainbird Support Agreement shall be
kept current at all times. Computer and Controller information will be
properly kept.
2.6.2.3 Any repairs made by the operator shall be made in accordance with the
industry standards and conforming to all related codes and regulations.
2.6.2.4 The Contractor shall be responsible for adjusting the height of sprinkler
risers necessary to compensate for growth of plant materials.
2.6.2.5 Automatic controllers and/or enclosures shall be locked while
unattended.
2.6.2.6 All controller enclosures must be painted or replaced as needed to
maintain a good appearance.
2.6.2.7 Sprinkler heads and valve boxes shall be kept clear of overgrowth which
may obstruct maximum operation. Missing or broken valve boxes will be
replaced by The Contractor.
2.6.2.8 Repairs and/or upgrades made to the irrigation system must be made in
accordance with the system's original design with products equal to or
higher quality than currently provided.
2.6.2.9 The GSM should be notified regarding any interruption of water service
to the golf course.
2.6.2.10 All irrigation repairs and maintenance including, but not limited to,
sprinkler heads, piping, fittings, valves, controller boxes, controller
supplies, and controller face plates must be performed utilizing the same
manufacturer and type of product as existing materials. Any change to
existing materials must have prior approval by the GSM.
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2.7 ANIMAL AND RODENT CONTROL
The Contractor shall continuously, at a minimum on a weekly basis,
control and eradicate rodents and other animal pests as necessary to
prevent hazards, holes and destruction of plantings on golf course
property in accordance with the Golf Course IPM Plan which will be
drafted annually and following specifications for rodent control. Damage to
public or private property due to erosion as a result of rodent activity shall
be repaired at the Contractor's expense.
2.8 WEED CONTROL OF PAVED SURFACES
The Contractor shall control all weeds growing in cracks, expansion joints
and other hard surfaces by the use of mechanical weed control or with
limited use of chemicals in accordance with the Golf Course IPM Plan.
2.9 WEED CONTROL IN LANDSCAPE AREAS
Weed control in landscaped areas shall be accomplished by mulching and
the use of mechanical weed eradication.
2.10 STRING TRIMMERS
Care shall be exercised with regard to the use of string trimmers to
prevent damage to building surfaces, walls, header board, light fixtures,
signage, etc. A minimum of 12" bare soil or mulched buffer zone shall be
maintained around the circumference at the base of all trees in
landscaped areas.
2.11 GREENS
Maintain all turf in accordance with playability and industry wide standards
as determined by the G8M, observing the following minimum
requirements:
2.11.1 Greens shall be mowed daily with an approved greens reel type mower at
a height of 130 or as recommended by the superintendent and approved
by the G8M. Frequencies and height of cut may be modified from time to
time as deemed necessary by the golf course superintendent with the
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prior approval of the GSM. All grass clippings must be collected and
removed from the site during each mowing operation, including dispersed
in a method to prevent unplayable conditions. Greens must be mowed,
and rolled if performed, prior to first golfer of day reaching each respective
green, including the putting green. Care will be given on clean-up lap
mowing to reduce turf loss and playability.
2.11.2 Ball cups are to be relocated daily to USGA Standards to enable worn
turf spots to recover. Putting green cups to be changed every other day.
Hole positions will be rotated using front, middle, and back locations for
each three hole sequence. Pin placement shall be in healthy turf area
according to rotation plan. Hole plugs set at proper grade.
2.11.3 Verticutting of greens shall be scheduled bi-weekly or more including
double verticutting during periods of active turf growth. Each verticutting
shall be at 90 degrees to the previous cut. Verticutting activities should
match the agronomic requirements of plant growth. This function shall
be coordinated to compliment the aerification and topdressing schedules.
Combing or brushing may also be done. Verticut depth should be
appropriate to playing conditions and agronomic needs. If play
conditions are such that greens are not smooth for ball roll (bumpy), the
Contractor shall utilize verticutting and other agronomic methods to
improve golf ball roll.
2.11.4 Aerify greens at least two (2) times per year in spring, either March or
April, and fall, either September or October, or more frequently if needed.
Plugs will be removed the same day. Aerification shall be carried out
with a minimum of interference to play. Aerification shall be scheduled at
least 6 months in advance with the GSM and golf professional. All
aerification hole sizes with a minimum of 5/8 inch hollow tine utilized, and
spoil locations shall be pre-approved by the GSM. Aerification holes shall
penetrate to a depth of three inches. Care should be taken to have as
minimal disturbance to green surface from manual and equipment
applications during aerification process. Aerification of greens for
agronomic purposes, other than annual regularly scheduled aerifications,
shall be reviewed and scheduled with the golf professional and GSM to
reduce golfer impact.
2.11.5 Following all annual regularly scheduled aerifications, a topdressing sand
material approved by the GSM shall be applied and brushed into the turf
with follow applications performed as needed. Application shall be done
with an approved topdressing spreader or blown in with walking blowers.
Spot topdressing may be applied to repair damage from ball marks or
any other damage. Light topdressing will be done every two weeks
during the active growth season to maintain turf playability and
agronomic conditions. Turf irrigation requirements shall be adjusted
during process to ensure proper agronomic conditions are met.
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2.11.6 The Contractor shall have the soil analyzed after the start of the term of
the contract and once every year thereafter on dates preapproved by the
GSM. Apply fertilizer and nutrients in the quantity and type
recommended by soil analysis and growing conditions at the time of
treatment and in a manner to provide uniform growth of turf. Under
normal conditions, 0.5 to 1.2 pounds of actual nitrogen per thousand
square feet shall be applied per growing month. Typically, a variety of
granular slow release types of material or liquid sprayable fertilizer may
be utilized. Use of materials to control salt damage and water infiltration
shall be applied to meet the requirements of the turf and playable
conditions. Fertilizer shall be applied every 3-4 weeks during the active
growing season and every five (5) weeks for the remainder of the year.
2.11.7 Treat greens with proper chemicals to control insects, disease, weeds
and other pests in conformance with the City's IPM Plan.
2.11.8 Greens shall be kept free of non-native and/or invasive grasses and/or
broad leaf weeds that tend to creep in from the edges. A threshold level of
0-2% has been set for weeds and disease: Insect threshold has been set
at 0-5%. No foreign grass encroachment from collars.
2.11.9 EC readings should be taken during spring and fall to determine salts
levels and if they are above normal, corrective action taken to reduce to
appropriate levels to promote optimum health of the turf.
2.11.10 Green speed should be consistent daily on all greens with the difference
between the lowest green speed and the highest green speed no more
than one (1) foot in variance on the stimp meter through out golf course.
Green speeds should be no lower than 8 feet in average daily during the
months of May, June, July, August, September, and October, and no
lower than 8 feet 6 inches daily for the other months. Green speeds
should be maintained as high as agronomic conditions and play
conditions allow.
2.11.11 Debris from trees shall be cleared prior to mowing and during day as
needed, no standing water or severe turf loss areas, pest and vandal
damage to be repaired, and bare and stressed areas sodded or plugged
to ensure quality playing conditions.
2.11.12 Ball marks shall be repaired daily.
2.12 COLLARS, APPROACH, BANKS AND GREEN SURROUNDS
Maintain all turf in accordance with playability and industry wide
standards as determined by the GSM observing the following minimum
requirements:
2.12.1 Collars shall be mowed a minimum of two (2) times each week to
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maintain a height of % inch, mowing with a triplex mower.
2.12.2 Green surrounds shall be mowed a minimum of (1) time each week to
maintain a height of 1" to 1-1/4" inch or a height as recommended by the
superintendent and approved by the GSM. If a rotary mower is used, it
shall be specifically designed to prevent scalping of the turf.
2.12.3 Fertilization frequency, types of material, and analysis shall be
determined from results of annual soil nutrient level testing and growing
conditions at the time of treatment. Under normal conditions, 0.50 to 0.75
pounds of actual nitrogen per thousand square feet shall be applied every
6-S weeks during the active growth season and every S-1 0 weeks for the
remainder of the year. Typically combinations of granular slow release
type of materials may be utilized.
2.12.4 Mowing directions should be changed to prevent turf depressions and turf
loss.
2.12.5 Approach shall be mowed a minimum of two (2) to three (3) times each
week to maintain a height of % inch or a height as recommended by the
superintendent and approved by the GSM, cut with a greens-type triplex
mower.
2.12.6 Grass clippings shall be removed and dispersed properly Jo avoid
affecting golf play.
2.12.7 Bunker banks shall be mowed to ensure no rutting occurs and proper turf
heights are maintained. If rutting occurs, areas shall be sodded for repair.
2.12.S Verticutting shall be performed at least two (2) times per year. All other
provisions of section 2.11.3 shall be followed.
2.12.9 Aerify at least two (2) times per year in spring and fall, or more frequently
if needed, and remove plugs the same day~ Aerification shall be carried
out with a minimum of interference to play. Aerification shall be scheduled
each year for the following year in conjunction with the GSM and golf
professional. All aerification hole sizes, with a minimum of 5/S inch hollow
tine utilized, and spoil locations shall be pre-approved by the GSM.
Aerification holes shall penetrate to a depth of three inches. Care should
be taken to have as minimal disturbance to the turf surface from manual
and equipment applications during aerification process. Aerification for
agronomic purposes other than annual regularly scheduled aerifications
shall be reviewed and scheduled with the golf professional to reduce
golfer impact.
2.12.10 Following all annual regularly scheduled aerifications, a topdressing sand
material approved by the GSM shall be applied as needed. Application
shalLbe done with an approved topdressing spreader. Turf irrigation
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requirements shall be adjusted during process to ensure proper
agronomic conditions are met.
2.13 TEE MAINTENANCE
Maintain all turf in accordance with playability and industry-wide standards
as determined by the GSM observing the following minimum
requirements:
2.13.1 Service tees daily by moving tee markers, removing trash and checking
benches and ball washers. Change tee towels and water weekly and
keep ball washers filled to proper level with water and appropriate
cleaning agent. Tee markers shall be moved daily to healthy turf areas,
placed at appropriate direction to play. Tee markers placed in healthy
areas with tee markers set flat to ground and direction of play.
2.13.2 Mow tees two (2) times weekly with reel type mower, with baskets, at
height of 1/2 inch or a height as recommended by the superintendent and
approved by the G8M. All grass clippings will be collected and dispersed
. properly for playable conditions.
2.13.3 Aerify and topdress tees, with sand and mulch pre-approved by the GSM,
at least two (2) times per year, or more frequently if needed, using the
appropriate equipment with the minimum of interference to play.
Aerification shall be carried out with a minimum of interference to play and
plugs removed the same day. Aerification shall be in conjunction with the
golf professional and the G8M. All aerification hole sizes, with a minimum
of 5/8 inch utilized, and spoil locations shall be pre-approved by the GSM.
Care should be taken to have as minimal disturbance to tee surface from
manual and equipment applications during aerification process. Bare
areas sodded and leveled.
2.13.4 Fertilization frequency, materials and analysis shall be determined from
results of annual soil nutrient level testing and growing conditions at the
time of treatment. Under normal conditions, 0.50 to 0.75 pounds of actual
nitrogen per thousand square feet shall be applied every 6-8 weeks during
the active growth season and every 8-10 weeks during the remainder of
the year. Typically combinations of granular slow release type of
materials may be utilized.
2.13.5 Repair worn and damaged turf areas as they occur by topdressing,
overseeding or resodding to ensure playability at all times. No standing
water or mud holes and pest and vandal damage repaired.
2.13.6 Tees shall be overseeded, with approved perennial rye seed by the GSM,
following aerification and before topdressing at a rate of 9 Ibs. per
thousand square feet of tee area.
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2.13.7 Treat tees for control of insects, disease, weeds and other pests as
necessary to maintain healthy turf. All treatments shall be in compliance
with the City's IPM Plan. A threshold level of 25% has been set for weeds
and disease. Insect threshold is 33%. Spot spraying by location basis
only when thresholds are exceeded.
2.13.8 Trash receptacles are to be emptied daily.
2.13.9 A sand and seed container, approved by the GSM, must be available on
all Par 3 holes, for use in repairing divots. A container must be set at each
respective set of tee markers for each hole. Tee divots shall be filled with
sand and seed at a minimum of once per week on all holes and twice per
week on Par 3 holes.
2.13.10 Sufficient scorecard and pencil supplies shall be kept in stock at the
scorecard station between the No.1 green and the No.2 tee.
2.13.11 Tee yardage plaques, stations and signs shall be maintained and edged
at all times.
2.13.12 Tee station items, such as markers, signs, trash cans, ball washers, etc.
shall be in good condition and repaired or replaced as needed. All tee
station equipment cleaned and painted and ball washers operational.
2.13.13 Recycle trash containers shall be utilized and all recyclable glass, paper,
plastic, aluminum and other recyclable material shall be collected and
turned into appropriate recycle centers.
2.14 FAIRWAY MAINTENANCE
Maintain all fairways in accordance with playability and industry wide
standards as determined by the GSM, observing the following minimum
requirements:
2.14.1 Mow fairway two (2) times weekly at height of 5/8 inch or at a height as
recommended by the superintendent and approved by GSM.
2.14.2 Aerify all fairways at least one (1) time a year. The equipment used to
aerify the fairways shall be Power Take-Off (PTa) or self engine powered
to enable a three (3) to five (5) inch coring depth (John Deere2000
Aercore Aerator or equivalent) utilizing hollow coring, with a minimum of
3/4 inch hollow tine, as recommended by the superintendent and
approved by the GSM and cores shall be removed from the fairways.
Aerification shall'be scheduled in conjunction with the golf professional
and the GSM. All aerification hole sizes and spoil locations shall be
preapproved by the GSM. Care should be taken to have as minimal
disturbance to turf surface from manual and equipment applications during
aerification process. Slicing of the fairways at various intervals is
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recommended to promote turf growth, improve water infiltration, and
improve salt damage.
2.14.3 Overseed all fairways once per year, in fall and at a preapproved date with
the GSM and golf professional, with perenial rye grass, pre-approved by
the GSM, at a minimum rate of 400 Ibs. per acre. All seed shall be slit
seeded into the soil to ensure adequate soil and seed contact. A post
seed application of fertilizer (15-15-15 or equivalent) shall be applied with
four (4) weeks of the overseed process at a rate of one (1) Ib per thousand
of nitrogen. Overseed and topdress (or re-sod) of worn or bare areas of
fairways as necessary.
2.14.4 Treat turf to control weeds, invasive grasses (i.e. Kikuyu), diseases,
insects, and other pests as necessary to maintain fairway threshold level.
A threshold level of 35% for weeds, 50% for disease and 40% for insects
has been set. Spot spraying by location basis as needed when thresholds
are exceeded. All treatments shall be in compliance with the IPM Plan.
2.14.5 A proper fertilizing and nutrient program shall be performed per soil testing
recommendations each calendar year. Fertilization shall be performed a
minimum of every 8-10 weeks during the active growth season and every
10-12 week during the remainder of the year.
2.14.6 Policing to control litter shall be done on a regular basis for the removal of
all paper, leaves, cans, bottles, tree branches, etc.
2.14.7 Excessive turf clippings shall be dispersed by a method of dragging,
baskets, vacuumed or blown to ensure proper playable conditions are
provided. Grounds under repair painted with appropriate white turf paint
and roped off neatly and consistently throughout the golf course. Grounds
under repair include those under repair by the The Contractor and those
areas where turf is at a level that is not consistent with other associated
turf areas. Yardage markers and sprinkler head yardage markers in place
and maintained. Cart traffic management devices in place; bare or
stressed areas properly addressed. No standing water or mud holes.
Pest and vandal damage repaired.
2.14.8 Excessive turf clippings shall be dispersed by a method of dragging,
baskets, vacuumed or blown to ensure proper playable conditions are
provided. Grounds under repair painted with appropriate white turf paint
and roped off neatly and consistently throughout the golf course. Grounds
under repair include those under repair by the The Contractor and those
areas where turf is at a level that is not consistent with other associated
turf areas. Yardage markers and sprinkler head yardage markers in place
and maintained. Cart traffic management devices in place; bare or
stressed areas properly addressed. No standing water or mud holes.
Pest and vandal damage repaired.
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2.15 ROUGHS MAINTENANCE
Maintain all turf in accordance with playability and industry wide standards
as determined by the G8M, observing the following minimum standards:
2.15.1 Mow one (1) time per week at a height of 1-1/2 inches or a height as
recommended by the superintendent and approved by the G8M.
2.15.2 Rodent control and repair as needed. All rodent control shall be in
compliance with the IPM Plan. Pest and vandal damage repaired.
2.15.3 Overseed and topdress (or resod) worn or bare turf areas as necessary.
2.15.4 Fertilization frequency, materials and analysis shall be determined from
results of biannual soil nutrient level testing and growing conditions at the
time of treatment. Fertilization shall be performed a minimum of every 8-
10 weeks during the active growth season and every 10-12 week during
the remainder of the year.
2.15.5 Treat turf to control weeds, disease, insects and other pests as necessary
to maintain rough threshold. All treatments shall be in compliance with the
IPM Plan. A threshold level of 100% for insects and disease. Weed
threshold has been set at 50%. 8pot treatment by location basis only
when thresholds are exceeded.
2.15.6 Grounds under repair painted with appropriate white turf paint and roped
off neatly and consistently throughout the golf course. Grounds under
repair include those under repair by the The Contractor and those areas
where turf is at a level that is not consistent with other associated turf
areas. No standing water or mud holes, hazards properly marked, and
free of debris that affects play.
2.16 OTHER TURF AND MAINTENANCE AREAS
These areas consist of areas not detailed above.
2.16.1 All debris such as litter and branches shall be removed from the course
daily.
2.16.2 All yardage, course markers, ropes and stakes, and signage shall be
straight and damage free, and repaired and replaced as needed.
2.16.3 Any item that is a safety hazard shall be repaired or replaced immediately,
2.16.4 The Contractor shall submit annually to the G8M a written report for the
preceding 12 months detailing annual fertilizer, pesticide, fungicide and
other related applications for the golf course. The report will conform to
the requirements of the IPM Plan (Appendix A).
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2.16.5 The Contractor shall flush drainage inlets once a year.
2.16.6 The Contractor shall utilize wood chipping machinery to produce wood
chips from tree pruning and care. Wood chips may be spread throughout
golf course in preapproved areas by the GSM. No permanent dumping of
course debris such as branches, wood stumps, etc. is approved on the
property. The Contractor is responsible for costs associated with any
removal of debris. Any other course-generated debris such as earthen
spoils shall be dispersed at locations and with methods preapproved by
the GSM.
2.16.7 Turf areas surrounding the clubhouse shall be mowed one (1) time per
week at a height of 1-1/4 inches.
2.16.8 The Contractor shall provide, at The Contractor's sole expense and
liability, an effective goose control program to eliminate goose activities,
including use of control dog, motorized hand controlled boats, noise
makers, and other methods.
2.17 SAND BUNKERS
2.17.1 Sand bunkers shall be cleaned and raked by mechanical method or by
hand a minimum of three (3) times per week with Fridays being one of the
three days. No excess sand buildup on high side.
2.17.2 Sand depth shall be randomly checked monthly for depth of sand and
shall be maintained no less than four inches (4") deep. Additional sand
will be added at the The Contractor's expense.
2.17.3 Turf shall be mechanically edged along sand bunker edges monthly, or
more frequently if required, to ensure a neat appearance. Care shall be
taken to maintain the design outline of the bunkers to insure the integrity
of the bunker shape. Bunkers should have 1" lip on lower side. Chemical
control of sand edges through use of a non-selective herbicide or growth
.regulator around sand bunkers shall be allowed with preapproval of GSM.
2.17.4 Excess sand in the turf surrounding the trap shall be removed on a regular
basis.
2.17.5 A minimum of two (2) to five (5) rakes are to be available, depending on
bunker size, at all sand bunkers at all times. Rakes properly maintained.
(Color and style are subjectto GSM approval.)
2.17.6 Bunker sand shall be cultivated as needed, or at a minimum of once per
month, to ensure sand is not compacted. Methods should be used to not
disturb existing soil below the sand.
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2.17.7 All debris such as pine needles and cones, branches and other debris
shall be removed as needed to ensure playable conditions and reduce
sand contamination. No animal boroughs.
2.17.8 Excessive water ponding and silt accumulated by rain falls and irrigation
applications shall be removed prior to bunker raking.
2.18 CLUBHOUSE AREAS
2.18.1 SHRUB BEDS
2.18.1.1 Clean-up shall occur on a regular basis to ensure that beds are kept
free of trash and debris such as paper, cans and bottles, fallen
branches, excessive leaves and weeds. Mulch in proper areas, beds
to be weed free, properly trimmed, and watered properly; not overly dry
or wet.
2.18.1.2 A fertilizer program shall be a minimum of three (3) applications per
year or as needed for health and color.
2.18.1.3 Spent flowers, leaves, dead or diseased plants, and other landscape
debris shall be removed from plant areas daily, or as required.
Flowers changed by schedule or as needed.
2.18.2 SEASONAL COLOR BEDS
2.18.2.1 Annual flowers in place and healthy and missing plants replaced in
kind and number. All color beds shall be regularly cleared of paper,
bottles and cans, fallen branches, excessive leaves and weeds.
2.18.2.2 Weed control shall be accomplished by hand weeding, mulching, by
the use of mechanical equipment or by the selective use of herbicides.
A prescribed pest control spray program may be done as often as
necessary for pest control in accordance with the IPM Plan.
2.18.2.3 Beds shall be cultivated by mechanical means on a regular basis or as
required, or as directed by the GSM.
2.18.2.4 Color plants shall be replaced a minimum of twice annually and shall
be performed on a schedule submitted to and approved by the GSM.
The replacement plants shall be 4-inch potted size spaced per industry
standards and planted with the appropriate soil amendments.
2.18.3 PERIPHERY AREAS (Including the Planted Traffic Island on
Embarcadero Way)
2.18.3.1 All periphery areas shall be maintained in a manner consistent to
industry standards to ensure a healthy and aesthetically pleasing
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appearance at all times.
2.18.3.2 Areas shall be mowed, weeded, cleared of litter and other debris on a
regular basis (a minimum of once per week). Watering should occur if
the area is covered by the irrigation system.
2.18.3.3 Special attention shall be given to periphery areas adjacent to public
roadways since these areas are highly visible to the general public and
constitute a "first impression" of the overall service level of the course.
2.18,.3.4 All areas are to be inspected for erosion problems and repaired as needed.
2.19 PARKING LOTS
2.19.1 Parking lots shall be maintained in a safe condition for use by both
vehicles and pedestrians, and cleaned each day to ensure a clean, crisp
appearance free from litter, debris, and weeds including all landscaped
planters on or adjacent to the lots (including the traffic island on
Embarcadero Way near the primary entrance to the Golf Course).
2.19.2 All parking lot lighting shall be inspected daily and repaired as needed or
reported to the City's PW Facilities Maintenance Division.
2.19.3 "Disabled Parking" signage and other signage shall be maintained in
accordance with all City, County, and State regulations.
2.19.4 All parking lot signage shall remain in place, maintained and readable.
2.19~5 Parking lot asphalt shall be inspected daily by The Contractor. The City's
PW Facility Maintenance Division shall be called for repairs. Free of
debris, litter, leaves, and trimmings. The Contractor shall inspect and
clean daily.
2.20 GRAFFITI
2.20.1 Golf course shall be inspected dailyfor evidence of graffiti. Special
attention shall be given to restrooms, signs, markers, block walls, curbing,
paving, tees, utility poles/boxes and/or any other structures or fixtures.
2.20.2 All graffiti shall be removed within twenty-four (24) hours of detection.
2.20.3 Graffiti requiring paint over shall be painted over with a color consistent
with that of the original surface.
2.20.4 Graffiti on non-painted surfaces shall be removed by sand or water
blasting and area returned to the preexisting condition.
2.21 CART PATH/STEPS/RAMPSIWALKWAYSI BREEZEWAY
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2.21.1 Cart paths to be swept or blown clear of debris every Friday or more often
as needed. No standing water.
2.21.2 Concrete paths to be edged and scraped c1ean,a minimum of one (1) time
per month or as needed. Cart paths weed free. See IPM Plan.
2.21.3 The Contractor shall identify all potholes and/or other surface damage or
defects on concrete cart paths and report to the City for repair. If damage
is the fault of the Contractor the repair cost will be the responsibility of the
Contractor. Base Rock utility roads on holes #9, #12, and #13 will be
graded smooth weekly. Additional base rock added as needed at the
expense of the Contractor.
2.22 RESTROOMS AT HOLE #5
2.22.1 Inspected daily by the Contractor, clean and stocked daily by the City's
PW Facility Maintenance Division.
2.22.2 Inspected daily by the Contractor, sinks, toilets, walls, screens, and floors
shall be sanitized daily by the City's PW Facility Maintenance Division.
2.22.3 Paper supplies shall be checked and restocked daily or as needed.
2.22.4 Inspected daily by the Contractor for odor and operation. PW will be
contacted for corrections and repairs.
2.22.5 Leaking or malfunctioning fixtures shall be reported to the City's PW
Facility Maintenance Division immediately upon detection.
2.22.6 Lighting fixtures are to be checked daily with repairs of faulty fixtures
provided as needed at time of detection. The City's PW Facility
Maintenance Division will be contacted for repairs.
2.22.7Restroom floors which are wet for any reason, including mopping, shall be
so indicated with proper temporary signage.
2.22.8 No graffiti. The Contractor will inspect daily and contact the City's PW
Facility Maintenance Division for graffiti removal.
2.22.9 No worn spots in concrete, wood walls, or corrugated fiberglass barriers.
The City's PW Facility Maintenance Division will be contacted for repairs.
2.23 MAINTENANCE FACILITIES
2.23.1 The City shall make available for use by the Contractor, at no charge to
the Contractor, a maintenance facility at the golf course for the storage of
golf course-related equipment, materials and/or supplies. The facility will
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be available to the Contractor on an "as is" basis. The Contractor will
conform its use of the maintenance facility to all applicable laws, rules and
regulations regarding the storage of materials on the City's premises,
including, but not limited to, the storage of hazardous, toxic or
flammable materials. The City assumes no responsibility for any theft,
destruction or damage to the Contractor's personal property that is stored
in this facility. The Contractor will return the facility to the City in its
original condition as of the date of commencement of the contract
between the City and the Contractor, normal wear and tear excepted.
2.23.1..1 Permitted Usag~: The Contractor may usethePremises forthe
following uses: Storage, Files, Office area or other similar uses,
premises may not be used for any other purposes without City's
prior written consent, which consent may be withheld in the sale
and absolute discretion of the City.
2.23.1.2 RrohibitedOses. The Contractor shall notu$e Premisesfor
anypurpo$~not expresslypermitted hereunder.. The Contractor
shall nqt create, cause, maintainorpermitanynuisanceor
\fI/aste.,in,qn,·· oraboutth.eRremises, .•. orpermi.tor allow.the
Premises to be u$edforany LIn lavvru I or immoral purpose. The
CQntractorshallnot dopr permit to be done anything in . any
mannerwhichunreasonably.disturbs·the usersofthe·City
Pr8perty or the occup~ntspf neighboringpr8perty. Specifically,
a9dwithoutlirnitin~.theabove,.TheContrastor~greesnotJo
cause(lnyunreason(lplE1\odo(,inois~,vibration,·poWE1[emission,
orotheritem toeman(lteJromthe Premises. No·· materials or
artiql~$qf(l nyn~tu rerh(lllbE1storedoutside .. uppn·~nyportionof
the.Premises .. The ·Cpntractorwillnotuse Property in a·· manner
th~tincreas~rthe risk9f fir~icost of fireinsural"1.ce or
improvel11.ents.Jhe~eqp'···N9.~nreason~blesignorpl~~ardshall
bepaiptecJ.jiinscribed·brplace~ .. inqr9I1isaid.Prope~yr~9d nO
tree orshrub thereon shallbedestroyedorTemov~cJ9rother
wastecommittedofsaidPr9perty,. No bicycles, .motorcycI 7s,
automobiles.orother mechanical means of transportation shall
be placed or stored anywhere on the Property. exceptforthe
g(lrageqr driv~\Vay. N9rep~ir, overhaulorm8~ifi.cmion of any
motor"e~iclE1/shal.lt~kE1pl~ceonthE1prppe~yorthe~tr77t·in
front of said Property; TheContractor,athis/herexp~nse, shall
~eept.h~Propertyin~sgood·con~itio~.asit.~cl!5atth~
9~gi9nin~.8f·th7termsh7re9f,exc7pt.pa(ll.C3g78sc~~i()nedby
ordinarywear(lnd.tear,anqexcE1ptdal11(lgefQtgE3>rgpf,
side\V~I.k~.andunderground plumbing,which is nottli~faultof
theContractoL
2.23.1.3 Conditi0I1,UseofPremises. CitYimakesno~?~r~l1tyor
rE1pre~entationof.an¥kind. c08g~rn.ingtresondition()tthe
Premises, orthefitnessof the Premises for the use intended by
34 Rev. January 11,2010
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2.23.2 The maintenance facilities shall be kept clean and neat at all times with
all material inventories and supplies stored in a manner in keeping with
CAL-OSHA regulations, the City's Fire Department regulations, and all
City, County and State regulations. Fire extinguishers must be
operational and inspected by the Fire Department.
2.23.3 Maintenance buildings and surrounds inspected daily. Report needed
repairs to GSM within 24hrs.
2.23.4 The maintenance area shall be locked or otherwise secured when
unattended to discourage unauthorized entry.
2.23.5 Office and lunchroom floors are to be vacuumed or swept five times per
week and mopped at least once a month at The Contractor's expense.
2.23.6 Rain gutters shall be kept clear of debris and cleaned a minimum of once
per year prior to fall rainfall period at The Contractor's expense.
2.23.7 Any security system shall be maintained and utilized at The Contractor's
expense.
2.23.8 The maintenance facilities shall be maintained by performing required
daily, monthly and annual maintenance of garage doors, inside and
outside doors, inside and outside windows, air conditioning or heater unit,
lighting, shelving, etc. All repairs to such facility are the responsibility of
the Contractor. The City is responsible for repair to the roof or outside
structure. The Contractor shall obtain and be responsible for quarterly
service to air conditioner and heating unit, and any subsequent repair or
service costs, and shall supply copy of written agreement to the GSM.
2.23.9 All facility and associated golf course maintenance utility costs are the
responsibility of the The Contractor, including telephone, gas, electric,
potable water, sewer, and trash.
2.23.10 Adherence to all City, County, and State regulations for proper storage
and disposal of materials is required.
2.24 CLUBHOUSE AND FACILITY LIGHTING
All lighting systems shall be inspected by the The Contractor on a regular
basis for faulty bulbs, fixtures or other malfunctions repaired and/or
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replaced as needed by the City's PW Facility Maintenance Division.
2.24.1 Walkways, breezeway, surroundings, ramps, driving range walkway and
tees cleaned of litter, dirt, and landscape debris daily. All garbage
containers at clubhouse and surrounding area must be emptied daily.
2.24.2 Exterior lighting working and scheduled properly. Report needed repairs
to the City's PW Facility Maintenance Division.
2.24.3 All signage accurate and readable.
2.24.4 A threshold of 50% has been set for disease and weeds 60% for insects.
Spot spraying by location basis only when thresholds are exceeded. Any
use of pesticides must conform to the IPM policies and procedures.
2.25 NETS/FENCES/GATES
2.25.1 The Contractor will be responsible for net repair and material costs on
holes 3,6,10, and Driving Range.
2.25.2 All fences and gates shall be inspected regularly with repairs made as
needed to ensure a safe, secure and aesthetically pleasing condition at all
times, no holes in fences. Repairs and materials are the responsibility of
the Contractor.
2.26 POND MAINTENANCE
2.26.1 Algae and cattail control program shall be maintained as approved by the
GSM.
2.26.2 Pond shall be inspected daily with all visible litter/trash removed upon
detection.
2.26.3 Pond water levels shall be maintained to ensure bank stability and
aesthetic.
2.26.4 Properly marked as water hazard.
2.26.5 A threshold of 25% on Aquatic weeds.
2.27 CONSTRUCTION AND/OR REMODELING OF GOLF COURSE
Any and all changes in the physical characteristics of any portion of the
course or structures such as addition or removal of sand traps, trees,
water hazards, native vegetation or other features shall require prior
approval by the GSM.
The Contractor will be paid for time and materials for any golf course
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renovation or construction work not listed in this scope of work. Quotes will
be submitted to the GSM for approval with itemized list of individual job
classifications, their time and hourly rate expense. (Complete Table 3,
Attachment C-1). Material will also be added along with any other
expenses to complete the Project.
Time and Material rates to be included within bid proposal. (Include on
Attachment C-1; Table 3, Schedule of Rates)
2.28 PRACTICE AREA I DRIVING RANGE MAINTENANCE
2.28.1 Turf shall be mowed weekly or as required at agreed-upon height by the
GSM.
2.28.2 General turf maintenance shall conform to procedures outlined in
Sections 2.11/Greens (page 17), 2.13/Tee Maintenance (page 19), and
2.15/Roughs Maintenance (page 20.
2.28.3 All Artificial Turf will be inspected weekly and repaired at the designated
Range closure time which is 5:00am -8:30 am every Thursday or at a time
which is approved by the Pro Shop Manager.
2.28.4 Light topdressing will be done once annually followed by brushing to
maintain integrity of Artificial Turf. Supplemental brushing required every 6
months.
2.28.5 Practice Bunker will have at least 4 inches of sand and kept trimmed and
edged. Bunker edges that are raised due to excessive sand build up will
be lowered by the Contractor when they reach one and a half feet over
original grade. Practice Bunker will be raked daily.
2.29 EXTERIOR OF THE CLUBHOUSE, RESTROOM BUILDINGS,
STRUCTURES AND GROUNDS
The City will be responsible for the repairs and maintenance of the building
exteriors and interiors.
GOLF COURSE WETLAND AREAS
Wetland areas must remain undisturbed to traffic, fertilizers, pesticides
and equipment. Litter and debris must be removed daily. Wetland signage
must be clean, readable and placed along both sides of Wetlands.
Replacements of all signage will the responsibility of the Contractor.
V. GENERAL CONDITIONS
A. Permits/Parking
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The Contractor shall be issued a free maintenance permit from the City's
. Department of Transportation. This will allow the Contractor's crews to
use City parking facilities at no charge during the term of this contract and
only while doing landscape maintenance work for the City's Open Space
and Parks Division.
B. . Payments and Inspection
Payment will be made for work satisfactorily completed as called for in this
contract. The City's Representative shall inspect and notify the Contractor
of any unsatisfactory work. Unsatisfactory work shall be corrected within
24 hours. The Contractor or the Contractor's representative shall meet
with a representative from the City at least once a month during the life of
this contract to inspect Work performed.
The Contractor will bill the City by the 5th of the month following service.
The City will pay the Contractor on a monthly basis for labor, equipment
and materials provided during the monthly billing period.
C. Use of Sanitary Landfill
The refuse disposal facilities of the city of Palo Alto Sanitary Landfill
located adjacent to East Embarcadero Road in said City will be made
available to the Contractor through the 2011 calendar year for the disposal
of all trees, rubbish and construction debris generated on work site. The
Contractor shall pay all dump fees. The Contractor shall at its sole
expense load, haul and deposit said rubbish and debris during normal
landfill operating hours. All landfill regulations will apply to all debris
deposited by the Contractor. Any questions regarding landfill rules and
regulations shall be directed to the Landfill Supervisor. A digest of the
refuse disposed area rules and regulations have been appended to this
contract. At the end of the 2011 calendar year, the The Contractor shall at
is sole expense load, haul and deposit all rubbish, debris and green waste'
to a transfer station located at the City of Sunnyvale.
D. Spare the Air Days
The Contractor must comply with regional "Spare the Air"
recommendations on designated "Spare the Air Days" that occur
throughout the year. At a minimum, no gasoline powered equipment shall
be used after 10 a.m. on "Spare the Air Days". The Project Manager will
notify the The Contractor when a "Spare the Air" alert has been
designated. The Contractor must coordinate work schedules to
accommodate "Spare the Air" recommendations.
38 Rev. January 11,2010
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EXHIBITB
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services so as to complete each task within the time
period specified in the Scope of Services, attached to this Agreement as Exhibit A.
CONTRACTOR shall provide the specified services according to the frequency and
schedule specified in Exhibit A.
CONTRACTOR shall execute the use of proper knowledge, skills, materials and
equipment of a timely basis to maintain all areas in a clean, safe, healthy, and
aesthetically acceptable manner during the entire term of this contract. The Contractor
agrees to be continuously alert in locating and defining problems and agrees to exercise
prompt and proper corrective action. Action times will be prioritized, and low priority
items will be given a time line for corrections.
Upon request CONTRACTOR shall provide a detailed schedule of work consistent with
completing the required Services as needed.
5 Rev. January 11,2010
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EXHIBITC
SCHEDULE OF FEES
CITY shall pay CONTRACTOR, for the completion of Services performed to the reasonable satisfaction of
the CITY, a not to exceed sum in accordance with the schedule below. Any services provided or hours'
worked for which payment would result in a total exceeding the maximum amount of compensation set
forth herein, without prior authorization from CITY, shall be at no cost to City.
A. Schedule of Payment:
CITY shall pay CONTRACTOR a maximum compensation amount of One Million Eight Hundred
and Fifty Thousand Dollars ($1,850,000.00), payable over the 30 month term of this Agreement, for
Services performed based on current Golf Course configuration, as follows:
Year One, November 1, 2010 through April 30, 2011: $350,000.00, in monthly
increments of $58,333.33.
Year Two, May 1,2011 through April 30, 2012: $750,000.00 in monthly increments of
$62,500.00.
Year Three, May 1,2012 through April 30, 2013: $750,000.00 in monthly increments of
$62,500.00.
B. Equipment Purchase
Compensation is based on CONTRACTOR's Lump Sum Purchase of CITY's existing capital
equipment, as listed on Attachment 5 ofRFP 136681and attached herein as Attachment 1 for a
Sum Total of $ ..... ,.v,'v
--
8 Rev. January 11,2010
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EXHIBITD
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM
OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE
SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:VII, OR
HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF
CALIFORNIA.
A WARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED,
BELOW'
MINIMUM LIMITS
REQUIRED TYPE OF COVERAGE REQUIREMENT EACH
YES
YES
YES
YES
NO
YES
OCCURRENCE AGGREGATE
WORKER'S COMPENSATION STATUTORY
EMPLOYER'S LIABILITY STATUTORY
BODIL Y INJURY $1,000,000 $1,000,000
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000
LIABILITY DAMAGE COMBINED.
BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000
AUTOMOBILE LIABILITY, -EACH OCCURRENCE $1,000,000 $1,000,000
INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON-OWNED
BODILY INJURY AND PROPERTY $1,000,000 $1,000,000
DAMAGE, COMBINED
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT .
PERFORMANCE ALL DAMAGES $1,000,000
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT
ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND
EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE
INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND
ITS SUB CONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS'
COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE
IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL.
II. CONT ACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
"ADDITIONAL INSUREDS"
10 Rev. January 11,2010
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A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS,
SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY
REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING
COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN
NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON
PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
11 Rev. January 11,2010
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EXHIBITE
BONDS
[ATTACH BOND FORMS IF BONDS ARE REQUIRED]
12 Rev. January 11,2010
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EXHIBITF
LIQUIDATED DAMAGES
It is mutually agreed by Contractor and City that if completion of the Services to
be provided by the Contractor under this Agreement is delayed beyond the time
specified in the Schedule of Performance, plus any authorized extensions of time,
City will suffer damages and will incur other costs and expenses of a nature and
amount which is difficult or impractical to determine. Accordingly, City and
Contractor, agree, as a method to fix the damages and not as a penalty, that in the
event of any such failure to perform, the amount of damage which shall be
sustained by City will be the sum of $ for each and every calendar day
during which the Services remain uncompleted beyond the time specified for
completion, plus any authorized extension of time. Should Contractor fail to pay
the liquidated damages to City, Contractor agrees that City may deduct and
withhold the amount of the unpaid damages from any amounts due or that may
become due to Contractor under this Agreement.
BY PLACING THEIR INITIALS BELOW, CITY AND CONTRACTOR·
ACKNOWLEDGE THAT THE AMOUNT SET FORTH ABOVE HAS BEEN
AGREED UPON AS THE PARTIES' REASONABLE ESTIMATE OF CITY'S
DAMAGES.
CITY CONTRACTOR
13 Rev. January 11,2010
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Unit Year Manufacturer Model
22;03 1997 JOHN DEERE 5200
2206 2000 FORD RANGER
2209 1997 JOHN DEERE 5310
2210 1986 CASE 480LL
2213 1997 TY-CROP TD460 TOP DRESS
2215 1997 JOHN DEERE 5300
2216 2008 TORO GREENSMASTER
2217 2008 TORO GREENSMASTER
2221 1992 TORO HYDROJECT 3000
2241 2005 TORO WORKMAN 2110
2242 2005 TORO WORKMAN 2110
2243 2005 TORO 3280-0
2248 2006 TORO PROCORE648
2250 1996 CHEVROLET C3500
2252 2001 JOHN DEERE TURF GATOR
2253 2001 JOHN DEERE TURF GATOR
2254 2001 JOHN DEERE PROGATOR 2020
2255 2000 JOHN DEERE PROGATOR 2020
2256 2000 JOHN DEERE PROGATOR 2020
2257 2001 JOHN DEERE 1200A
2258 2003 TORO GREENSMASTER
2259 2000 TORO GREENSMASTER
2262 2000 TORO GREENSMASTER
2263 2003 LASTEC 721XR
2264 2003 JOHN DEERE 3235
2265 2002 JOHN DEERE 3235
2266 2007 TORO REELMASTER
2267 2008 LASTEC 721XR
2275 1965 FMC (BEAN) FG1010
2276 1980 GANDY N/A
2280 1999 TURFCO SP-1530
2281 1988 TORO GROUNDMASTER 62
2282 1990 TURFCO METERMATIC II
2283 1987 FORD 786A
2295 2001 JOHN DEERE AERCORE 2000 ----------
Attachment 1
City Equipment List
Description
UTILITY TRACTOR -FOUR WHEEL DRIVE
XCAB
TURF TRACTOR
TRACTOR LOADER
TD-460 TOP DRESSER
UTILITY TRACTOR -TWO WHEEL DRIVE
3100 GREENS MOWER W/8 BLADE CUTTING
3100 GREENS MOWER W/8 BLADE CUTTING
WALK-BEHIND TURF AERIFIER
UTILITY VEHICLE. (TURF)
UTILITY VEHICLE (TURF)
ROTARY TURF MOWER
WALKING GREENS AERATOR
TWO YARD DUMP TRUCK
UTILITY VEHICLE
UTILITY VEHICLE
UTILITY VEHICLE
W/2WD CARGO BOX
UTILITY TRUCK W/HD200 SPRAYER
BUNKER RAKE
3100 GREENS MOWER W/11 BLADE CUTTING
3100 GREENS MOWERW/8 BLADE CUTTING
3100 GREENS MOWER W/11 BLADE CUTTING
TRACTOR-MOUNTED ROUGH MOWER
FAIRWAY MOWER
FAIRWAY MOWER
TRIPLEX TRIM MOWER (3100-0)
TRACTOR-MOUNTED ROUGH MOWER
SPRAY RIGyTRAILER MOUNTED (200 GALLON)
SPREADER BOX
TOWABLE TOP DRESSER
TURF MOWER
TOWABLE TOP DRESSER
THREE-POINT FLAIL MOWER ATTACHMENT
FAIRWAY AERIFIER -------
Current Mtr
5,456
32,597
5,595
2,993
0
5,796
852
637
590
1,747
1,558
523
58
15,220
24,560
20,602
3,927
3,435
446
4,577
3,141
3,911
3,433
0
2,685
3,992
1,134
0
out of service
out of service
0
0
out of service
out of service
0
Orig Cost
18,935
17,717
23,748
52,317
18,048
24,520
0
0
25,000
8,725
8,725
18,654
18,426
32,391
6,917
6,917
23,196
17,215
20,582
11,929
18,895
20,297
20;297
17,861
39,817
40,602
26,659
0
0
5,000
0
0
5,500
0
27,014 I
>-.-;-
.-;-
Sll n
::r"
8
('[)
~ .-;-
n
Attachment D
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE: NOVEMBER 17,2008 CMR: 446:08
REPORT TYPE: STUDY SESSION
SUBJECT: Operational Analysis of the City Palo Alto Municipal Golf Course
EXECUTIVE SUMMARY
In 2007 the City Council authorized staff to proceed with an operational analysis of the Palo Alto
Municipal Golf Course ("Golf Course"). The operational analysis (Attachment A), was
conducted by Economics Research Associates (ERA), and provides information on the Bay Area
golf market and conditions of the Golf Course facility; and the current and alternative operating
models available for the Golf Course. The study found that, despite a Bay Area wide decline in
golf play, the Golf Course performance has been relatively strong when compared with similar
municipal facilities in the market area.
The ERA study and staff report recommends several actions for future success of the Golf
Course, which includes: making relatively minor but strategic investments in the Golf Course
infrastructure and operating structure along with actively participating in the planning of flood
control alternatives for San Francisquito Creek to find a balanced flood control/recreational use
solution that would benefit the Golf Course. Additional recommendations include aligning tenant
contracts to expire concurrently and to evaluate options to enhance Golf Course maintenance,
including the advantages and disadvantages of private versus public maintenance. Various Golf
Course operating models are described in the ERA report, each with advantages and
disadvantages. In the short term, no recommendation is proposed to alter the current operating
model until the flood control plans for San Francisquito Creek, which may impact the Golf
Course, are clearly defined.
Staff is presenting this report to Council for information and preliminary feedback. This item
will be placed on the Finance Committee agenda in the future for further discussion and
recommendations to Council.
BACKGROUND
The Golf Course was constructed in the mid 1950's on 184 acres of flat former salt-marsh and
bay fill. The course was designed by noted golf course architect William R. Bell of Pasadena,
California. The Golf Course was designed as an I8-hole facility with a par of 72. The Golf
Course is a classic 18-hole championship course that measures over 6,800 yards from the back
CMR: 448:08 Page 10f8
tees. The facility includes a large practice putting green, a three-building Eichler-designed
clubhouse/golf shop complex and parking lot. In the mid 1970's, improvements were made to
replace the clubhouse buildings. At that time, holes 3, 10, 11, & 18 were renovated under the
direction of golf architect Robert Trent Jones, Jr.
In 1992, the City Council initiated a Master Improvement Plan process (CMR 453:92) for the
Golf Course that would incorporate the findings of all prior studies, as well as look to the future
for necessary improvements to the aging facility. The firm of Halsey Daray Golf was selected to
prepare the Master Plan. Subsequently, in 1998, Certificates of Participation (COP's) were
issued in the amount of $7,750,000 (CMR 357:98) to fund the master plan improvements, and
work commenced on the driving range, fairways, greens and tees in 1999. Due to escalating
project costs and funding limitations to make the annual debt service payment the COP issuance
only addressed 40 percent ofthe proposed master plan improvements.
The Golf Course is a City of Palo Alto General Fund operation. All excess revenues or shortages
are returned to the City's General Fund. The Golf Course currently generates sufficient revenues
to support debt service, direct and indirect expenses, and City cost plan charges. There is no
reserve or replacement fund for the Golf Course, consequently; additional debt service is taken
on by the Golf Course wh~n new capital improvement needs arise. The debt service for the
COP's, which represents approximately $570,000 annually, will be fully retired in 2018.
Presently, the City has a management agreement and a lease agreement with Brad Lozares for
golf operations. As a result of Internal Revenue Services (IRS) debt issuance limitatipns, the
management agreement and the lease for the building are separate contracts. The management
agreement includes the following responsibilities: reservations; green fees collection; starting;
and marshalling services. The lease agreement for the building includes responsibility for:
managing golf cart rentals; the driving range; merchandise sales; and instruction services. Mr.
Lozares's management agreement with the City for operating the Golf Course expires December
31,2009. The lease agreement with Mr. Lozares for lease of the building expires in April 2013;
. the building lease also includes an option to extend the term of the concession 10 additional
years, if the option is exercised at the City'S sole discretion.
There is also a lease agreement with R&T Restaurant Corporation (R&T) for food and beverage
services at the Golf Course. The R&T lease agreement for food and beverage operations expires
April 20, 2018.
Golf Course turf and irrigation maintenance is provided by the City's Community Services
Department, Recreation and Golf Division. The Club House and Pro Shop building maintenance
(exterior) and janitorial services are provided by the City's Public Works Department, Facilities
Management Division.
The Recreation and Golf Division Manager of the Community Services Department oversees
daily operations that include coordination of services between the tenants and City maintenance
staff in order to provide a seamless experience for visitors to the Golf Course. The Real Estate
Division of the Administrative Services Department oversees tenant leases.
CMR:448:08 Page 2 of8
Faced with increased competition in the regional golf market, challenges in the golf facility
physical product, and increased pressure on City finances, a study was conducted at the request
of former City Manager Frank Benest, and funding was approved as part of the 2007 budget
process, with the following two key objectives:
a) provide analysis on the Bay Area Golf market and conditions of the Golf Course
facility; and
b) provide analysis of the current and alternative operating models available for the Golf
Course.
In 2007, a scope of services was developed and an RFP process followed to retain a·consultant to
conduct the analysis. Economics Research Associates (ERA) was selected for their reputation in
the industry, experience conducting comparable studies for similar golf courses, excellent
references and reasonable fee proposal that met the City's budget for the project.
DISCUSSION
The ERA report (Attachment A) provides detailed information regarding the Golf Course that
will help put into context how the Golf Course has performed in recent years in comparison to
nearby courses, along with recommendations and options for future success of the· Golf Course.
Extensive public outreach was undertaken to capture the views and interests of stakeholders.
Among them were the Golf Advisory Committee, members of the Parks and Recreation
Commission, golfers who frequent the Golf Course, interested residents, and Baylands
enthusiasts, among others. A Golf Course survey was available at the course for six weeks and
2,500 surveys were mailed to golfers who frequent the Golf Course; 454 responses were received
and are summarized in the ERA report (Section V).
The study concludes that the Golf Course, as with others in the region, has been negatively
impacted by market forces over the last decade. With the entry of many new public and private
golf courses in the region, the market has become significantly more competitive. Due to this
extraordinary golf course inventory expansion, along with a downturn in the regional/national
economy, comparable Bay Area golf courses, on average, report a 17% decline in annual rounds
played from 2000 to 2007. The Palo Alto Golf Course has experienced a 16% decline in annual
play during this period. Sound management decisions, cooperation among the tenants, loans
from the General Fund, strategic maintenance choices and enhanced marketing have enabled the
Golf Course to continue to recover the costs of operations, fund related debt service, and to cover
City and Community Services Department (CSD) allocated overhead charges (Cost Plan). The
study points out that, despite the decline in play at the Golf Course, the operating performance
has been relatively strong compared to similar municipal facilities.
There are several options for the future of the Golf Course, each with its own set of challenges
and opportunities. The long term Golf Course operating models that the City may want to
consider include: Facility Lease; Management Agreement; City Self Operation; or a Hybrid
Model such as the City has currently. The advantages and disadvantages of these options are
described in Section VI of the ERA Report.
CMR: 448:08 Page 3 of8
In the near term, the choices for Golf Course improvements andlor changes to the operating
model, which the City may wish to consider, will likely be influenced by the results of the
pending flood control plans for San Francisquito Creek, being conducted by the Joint Powers
_ Authority and the Army Corps of Engineers.
Consequently, below are three alternatives to help spur discussion on the future of the Golf
Course, with a focus on the possible impacts and opportunities the flood control plans for San
Francisquito Creek may present.
A brief summary of three possible alternatives for moving forward are discussed below:
I. Make no changes, and work with the Joint Powers Authority (JP A) for San
Francisquito Creek flood control to minimize Golf Course impacts
The flood control plans for San Francisquito Creek, being conducted by the Joint Powers
Authority and the Army Corps of Engineers, has begun with the key objective of identifying
potential options to reduce flooding along the creek. A list of short-term projects will be
complete as early as 2010, with the possibility of breaking ground on an actual project by
summer of 2011. The flood control plans for San Francisquito Creek remain an important factor
in planning for changes and improvements at the Golf Course because the creek is adjacent to the
Golf Course and, at one time, traversed the land occupied by the course. Some of the
recommendations that come out of the flood· control study may necessitate modification of
portions of the Golf Course. One course of action may be for the City to work with the Joint
Powers Authority to find flood control solutions that have minimal to no impact on the Golf
Course.
The ERA report states that the Golf Course operating performance is satisfactory, particularly in
light of a very soft Bay Area golf market. Within the short term, two to three years, the operating
performance will likely remain stable with no significant change to the operating structure or
major investment in capital improvement to the Golf Course. The study does not identify any
urgent capital improvement needs or operational problems that need to be addressed in the short
term. On the contrary the Golf Course, as compared to the key competition, is performing better
than average. Given this fact, it is not unreasonable to, at least for the short term, make no
significant changes.
II. Actively participate in the planning of flood .control alternatives for San Francisquito
Creek, to explore possible balanced flood control I recreational use solutions that
would benefit the Golf Course; and pursue strategic operational modifications and
Golf Course improvements as outlined in the ERA Report
This alternative is most consistent with the ERA report and is also the alternative that staff
believes to be the most prudent at this time. The goal would be to optimize financial performance
through some strategic investments while working closely with the Joint Powers Authority on a
flood control project for San Francisquito Creek that will enhance the golf course. The specific
actions under this option would include the following:
o Retain a golf course design consultant to work with the Joint Powers Authority
and City staff to design an environmentally friendly flood control project that will
CMR: 448:08 Page 4 of8
balance flood control and recreational use solutions and also benefit the Golf
Course.
o Align the two tenant leases and management contract so they expire concurrently.
This would allow consideration of other, potentially more effective and efficient,
operating options and a smoother transition of operation, should that be deemed
advantageous in the future.
o Commit to a plan of cost neutral capital improvements, as outlined in the study
(summarized on page 1-12), to ensure the Golf Course remains competitive. That
is, proceed with improvements that are economically justified by increased net
operating income stemming from the improvements.
o Recalculate the Cost Plan allocation for the Golf Course to a more traditional golf
course operation allocation. This would allow for excess :fu.rids to be set aside to
establish a replacement reserve to fund ongoing minor capital improvement
andlor more intensive maintenance.
o Direct Community Services and other relevant City staff to further evaluate the
advantages and disadvantages of private versus public maintenance. The City
will meet and confer with the union on any labor issues which arise.
TIl. Embark on a sigttificant redesign of the Golf Course with or without a concurrent
. restructuring of the Golf Course operation that takes advantage of possible flood
control funds that may become available
The ERA report finds that the Golf Course is presently operating at a satisfactory level with
respect to cost recovery and annual rounds of play as compared to other comparable golfcourses
in the region, and can be maintained a~ such with minimal additional investment. However, if the
City aspires to build or move toward developing a true destination or signature golf course, a
new vision would need to be formulated. This could take several forms. For example, significant
design changes to the c.ourse could reflect more of a links-style course with wide-ranging natural
wetland grasses and round contours that provide undulations and slopes for a' more unique
golfing experience. Another concept could be to extend the lake on hole 11 through the fairways
on holes 3 and 18 to create two or more signature holes. These would be unique, challenging
holes that would bring golfers back to play again. Moreover, this concept may include partnerin~
with an entrepreneur to build and operate a destination restaurant, one that overlooks the 18t
hole and vistas of the airport; a restaurant with appealing ambiance and character for residents to
take out of town visitors to dine.
Several members of the community share this vision in one form or another. They believe that
with the right people and private investment, it is possible to create a better Golf Course that has a unique design, providing a long term competitive advantage in the market place. A
significantly enhanced Golf Course, coupled with a destination restaurant, could be a successful
strategy. Although this is a compelling vision, funding a comprehensive re-development project
at the Golf Course, even with possible flood control funds, would be very challenging,
particularly in the current economic environment.
CMR: 448:08 Page 5 of8
Related to the idea of a comprehensive Golf Course redesign, at Council's direction, staff has
investigated the possibility of re-designing the Golf Course in order to create room for playing
fields (CMR 168:06). This concept was extensively studied by the Planning staff and also
explored by the Parks and· Recreation Commission. In 2006, City staff and the Parks and
Recreation Commission concluded that the concept of playing fields at the Golf Course should
be deferred until the flood control options become more certain. Creating new playing fields
could be re-investigated as part of a comprehensive re-design but again this would add additional
expense which would be particularly challenging in the current economic environment.
Staff Preferred Alternative
At this time, staff recommends pursuing Alternative II. This alternative entails making relatively
minor but strategic investments in the Golf Course infrastructure and operating structure as
outlined in the ERA report along with actively participating in the planning of flood control
alternatives for San Francisquito Creek.
The goal would be to find a balanced flood control and recreational use solution that would both
improve creek flood control and benefit the golf course. Joint Powers Authority flood control
concepts include the Golf Course and provide a unique opportunity for possible Golf Course
enhancement if the City actively participates in the design and development of the project.
With regard to strategic investments in the Golf Course infrastructure and operating structure,
prior to the most recent economic downturn the golf market was. expected to remain relatively
stable for the next three years, the current economic conditions will likely present new
challenges in maintaining a stable level of play. Although the Golf Course is performing
reasonably well today, staff believes maintaining the status quo (Alternative I) is too passive a
strategy in a market that is increasingly competitive and dependent on discretionary income.
Given the current economic climate, it is imperative to commit to strategic investment in course
improvements and maintenance practices to ensure the City is providing the best possible golfer
experience. This will maintain or improve the City's place in the market and enable the City to
reach cost recovery targets.
Moreover, minimal cost neutral capital improvement, enhanced marketing such as the
implementation of online reservations and better course maintenance are all needed to ensure
long term success. Alternative III, which paints a more dramatic picture of chang~ and redesign
of the Golf Course is a compelling option and remains possible. This option can be preserved by
addressing the issues of aligning contracts and lease expiration terms and addressing the
advantages and disadvantages of private versus public maintenance as outlined in Alternative II.
lt also keeps open the potential for a more comprehensive re-design project that may have
additional recreational benefits such as adding playing fields.
RESOURCE IMPACT
Working with the JPA on a ·flood control/enhanced Golf Course design project will require
Community Service staff input, golf course design expertise, and public input. Golf course
design expertise may require consultant costs.
CMR: 448:08 Page 6 of8
In 'an attempt to maintain the standard cost allocation plan across City departments staff
recommends that, after further analysis by the Administrative Services Department, any
reduction in City Cost Plan charges to the Golf Course be reallocated within the Community
Services Department so as to not unfairly impact other General Fund activities. The ERA report
indicates potential savings of $250,000 to $300,000 to the City should the City pursue private
Golf Course maintenance. Staff will continue to monitor the increasing expenses to employee
benefits currently at 50 percent of salary and determine if maintaining in-house operations is
more economically or operationally efficient versus contracting out services. Staff will work
with the labor union to ensure that, ultimately, the best services are provided to the community.
Staff will continue to monitor ongoing revenue and expenditures to ensure that the Golf Course
operation is a viable operation for the c~mmunity.
The ERA report also points out the need for strategic capital investment in the Golf Course that
includes rebuilding of selective greens and bunkers and improved· golf cart storage to increase
the number of carts in order to attract more and larger tournament play. The actual resource
impact is to be determined with further analysis; however, the goal will be cost neutral capital
improvement, as outlined in the study. That is, improvements which are economically justified
by increased net operating income stemming from the improvements.
As mentioned above staff recommends that the Golf Course study be forwarded to the Finance
Committee to work through the alternatives available to ensure ongoing success of the Golf
Course operation and to return to Council with a feasible plan on how to proceed.
ENVIRONMENTAL REVIEW
No environmental review is needed at this time. However, should a Golf Course capital
improvement project be considered at a future date all appropriate environmental review and
consideration will take place prior to approval.
ATTACHMENTS
Attachment A:
Attachment B:
CMR: 448:08
Economics Research Associates -Operational Analysis of the City of Palo
Alto Golf Course
Executive Summary (Bullet Point Version)
Page 7 of7
PREPARED BY: ______________ ~--~---J=-----~hL--~---
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CMR: 448:08
nterim Director, Community Services
Department
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