TR14449 - A Resolution of the City Commission of the City of Tamarac, Florida, approving amendment #3 to the agreement with Troon Golf, LLC, dated October 24, 2013, attached hereto as Exhibit “1”  for golf course operations services at the Colony West Country Club;  authorizing a waiver of procurement procedures persuant to section 6-148, of the city code of ordinances, extending the agreement for a period of one (1) year from October 24, 2026 through October 23, 2027; authorizing the appropriate city officials to execute amendment #3; providing for conflicts; providing for severability; and providing for an effective date.

The Parks and Recreation Director recommends that the City Commission approves TR #14449, authorizing the extension and execution of Agreement Amendment #3 with Troon Golf, LLC for Golf Course Operations Services dated October 24, 2013, extending the Agreement for an additional one (1) year period from October 24, 2026 to October 23, 2027, at its October 28, 2026, meeting.

The City of Tamarac purchased the Colony West Country Club from Sand Trap Management in December 2011 as a means of preserving green space and recreational opportunities within the City; and after the default of Sand Trap Management in August of 2013, determined that the City’s best interests would be served by contracting for the management of the course. As a result of the competitive solicitation of Request for Proposal # 13-25R, the City awarded Billy Casper Golf a five (5) year agreement for the maintenance and management of the Colony West Golf Club on October 24, 2013 via resolution R-2013-115, available for review in the City Clerk’s Office. The agreement provided for one (1) renewal option for a period of five (5) years, which the City exercised and was approved by the City Commission via resolution R-2018-72, for an effective period of October 24, 2018 through October 23, 2023, available for review in the City Clerk’s Office. Billy Casper Golf, LLC has assigned all rights, privileges and obligations under the Agreement to the successor organization, Troon Golf, LLC. Amendment #2 to the agreement was approved by the City Commission via resolution R-2023-97, for an effective period of October 24, 2023 through October 23, 2026 available for review in the City Clerk’s Office. Agreement Amendment #2 executed in 2023 does not provide for an additional renewal option. Staff believe it is in the best interest of the City to extend the agreement for one (1) year in accordance with the terms and provisions contained in the original agreement for the effective period of October 24, 2026 through October 23, 2027. City Code Section 6-148. (i), titled “Exclusions and exceptions to bid and proposal requirements” states that the City Commission may authorize the waiver of procurement procedures upon the recommendation of the City Manager that it is in the City’s best interest to do so to obtain goods and services.

The current Agreement provides for the Management of the facility, as well as all the amenities of the clubhouse, including food service and pro-shop operations. Troon Golf, LLC manages all aspects of the facility, however the City maintains final control over the budget and accounting and receives the net revenue under the Agreement.    

Troon Golf, LLC has agreed to continue to manage all operations of the facility at the same terms and conditions of the original agreement. Based on the 3% annual adjustments pursuant to the agreement, the FY2027 Colony West operating budget includes $128,596.50 for Base Management Fees and an estimated $46,233.51 for Incentive Management Fees, for total budgeted management fees of $174,830.01. The Incentive Management Fee is estimated for budgeting purposes and will be calculated based on actual fiscal-year Net Operating Income in accordance with the Agreement. The Agreement provides for an incentive fee equal to fifteen percent (15%) of Net Operating Income more than $150,000, capped at one hundred percent (100%) of the Base Management Fee paid for the applicable fiscal year.

Staff recommend that the City Commission authorize a waiver of procurement procedures to allow for a one (1) year extension of the existing agreement with Troon Golf, LLC, for golf course management services under the same terms and conditions. Given the nature of the services provided by Troon, staff believes that extending the agreement for an additional year is in the City’s best interest, as it will ensure continuity of operations and uninterrupted service delivery while providing sufficient time for the City to develop a comprehensive Request for Proposals (RFP), conduct a competitive solicitation process, and evaluate proposals for a new agreement.

Agreement Amendment #2 with Troon Golf, LLC for the management and maintenance of the Colony West golf course and the amenities available in the clubhouse including food service and pro-shop operations is set to expire on October 23, 2026, requiring extension by the City Commission to allow for continued service.