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Item 9A M E M O R A N D U M February 14, 2012 TO: Shana Yelverton, City Manager FROM: Chris Tribble, Director of Community Services Authorize the City Manager to negotiate a management agreement SUBJECT: for the Southlake Tennis Center ________________________________________________________________ Action Requested: City Council authorization for the City Manager to enter into negotiations for management of the Southlake Tennis Center. Background Information: On December 7, 2010, the City approved renewal of the Tennis Center Management Agreement with Stephen and Mia Poorman, dba Roxy Tennis LLC, for one year to expire April 5, 2012. A Request for Qualifications (RFQ) was prepared to seek qualifications from potential contractors for the management of the Southlake Tennis Center (STC). The RFQ was developed to be consistent with other operational RFQs offered by the City and was advertised in accordance with state law through the City Secretary’s Office on September 23 and 30, 2011. Thirteen (13) submittals were received; two were disqualified as “non-responsive” for not following the RFQ submittal process. Rating criteria was developed and a scoring mechanism put into place that matched the requirements of the RFQ. A staff team consisting of Jim Blagg, Assistant City Manager; Chris Tribble, Director of Community Services; Sharen Jackson, Director of Finance; Alison Ortowski, Assistant to the City Manager; Kari Happold, Deputy Director of Community Services; and Candice Edmondson, Assistant to the Director of Community Services reviewed and rated the qualifications of each submission individually. Once completed, the individual ratings were compiled to obtain a group average, and the top four qualified candidates were selected for interviews. The top four were interviewed using standard interview questions as well as specific questions related to each specific submittal, and natural follow-up questions. A forced-paired ranking method was City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager City Council Meeting Date – February 21, 2012 Page 2 of 5 used following the interviews, whereby each staff team member was forced to choose their #1 and #2 candidates. The staff team then compared the individual rankings. The results were a unanimous selection of the top two candidates, Stephen & Mia Poorman (DBA Roxy Tennis), and Tommy English & Kevin Milton. Jim Blagg, Chris Tribble and Sharen Jackson conducted second interviews with the top two candidates to go over any needed clarification, to discuss potential contract provisions of the candidates, and to discuss candidate/city contract expectations. Follow-up questions have been handled by phone as staff continued its analysis of the submittal information and qualifications of each candidate. Using a survey that included questions evaluated by Decision Analyst (the market research firm that manages the City’s biannual citizen survey), staff conducted a Tennis Center User Satisfaction Survey. A link to the survey was set up on the City’s website, and the link was emailed to 5,474 email addresses available through the City’s recreation participant database, as well as to each and every person that had contacted the City about the STC and/or completed an online survey or hard copy survey of the STC during the last sixteen months. The purpose of the survey was to assess the customer satisfaction of current and/or former STC users. The survey was not limited to Southlake residents; however Southlake addresses were validated for the purpose of providing Southlake only feedback, in addition to the aggregate data collected from users in Southlake and the surrounding community. Only one IP address was accepted; however we did not limit the number of surveys per household. A total of 476 people responded to the survey. Of this number, 60% were Southlake residents. The survey consisted of both specific questions and space for respondents to record their thoughts as verbatim comments. The responses received will assist staff in determining decisions about the operator of the facility, necessary capital improvements, service offerings, and performance criteria for a new management contract. On February 13, 2012 the City Council received a summary of the survey results via an audio presentation, and a link to the verbatim comments provided by the survey participants. The survey results have been reviewed by Decision Analyst and they identified no City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager City Council Meeting Date – February 21, 2012 Page 3 of 5 major concerns. They also reported that there was no indication that the wording of the questions was prompting respondents to answer in a particular way. After a thorough analysis of the top two candidates, the staff team unanimously recommends Roxy Tennis, LLC to manage the Southlake Tennis Center and provide tennis services to the community, subject to a contract addressing service, facility and management performance requirements developed to ensure quality performance. Staff’s recommendation is based on several key factors including each candidate’s:  experience in managing municipal tennis centers  current financials  proposed organizational and staffing plan  references The new contract will include several new performance requirements that Roxy Tennis LLC must continually meet including, but not limited to:  Contractor shall maintain an overall customer satisfaction rating in the Citizen Survey of 85% responding Excellent, Very Good or Good. This will be assessed through the use of the following question: “How would you rate the services provided by the City’s tennis center contractor in the past 12 months?” Those who do not use the center will be provided the option of responding “do not use.” (This is consistent with language contained in the agreement for garbage and recycling service.)  Contractor shall display the customer satisfaction card prominently onsite. Staff will review cards on a monthly basis and prepare quarterly reports that will be provided to and reviewed with the contractor.  Contractor will meet monthly with the Community Services Director or his/her designee to review management, operations and programming of the tennis center. City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager City Council Meeting Date – February 21, 2012 Page 4 of 5  Contractor shall use a court scheduling/registration software approved by the City to manage and track day to day court reservations and programs.  Contractor shall provide monthly financial statements in a form defined by the City’s Finance Director.  Contractor and all employees shall participate in annual customer service training.  Contractor will work with the City to improve the flow and aesthetic appearance of the pro shop.  Contractor shall maintain the highest level of cleanliness in the facility and be subject to unannounced inspections by the City.  Contractor shall maintain all equipment to industry standards and in good working condition at all times Approval of this agenda item will allow for negotiations to progress with the selected candidate, resulting in a Southlake Tennis Center Management Agreement being submitted to the City Council for formal approval at the March 20, 2012 City Council meeting. Financial Considerations: The City currently receives approximately $11,000 annually in revenue from court fees. The City’s current annual expenditures total $121,000 for facility maintenance, grounds maintenance, court resurfacing, windscreen replacement and utilities. The Contractor is responsible for all staffing, furnishings, equipment, supplies, telephone, food & beverage, and retail inventory costs. No additional operating costs beyond those listed above are anticipated with the new contract, however, staff does anticipate an increase in revenue to the City due to a restructuring of contract terms. Strategic Link: This item is linked to the City’s Strategy Map related to the focus area of Performance Management and Service Delivery and meets the Corporate Objectives to Provide Attractive and Unique Spaces for Enjoyment of Personal Interests, Achieve the Highest Standards of Safety and Security, Improve Performance of Delivery and Operational Processes, Provide High Quality Customer Service, City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager City Council Meeting Date – February 21, 2012 Page 5 of 5 Enhance Resident Quality of Life and Business Sustainability Through Tourism, and Invest to Provide and Maintain High Quality Public Assets. Citizen Input/ Board Review: February 21, 2012 -- City Council authorization for City Manager to enter into negotiations with selected candidate Legal Review: City Attorney will review and recommend the new agreement. Alternatives: City Council action to authorize City Manager to negotiate the Southlake Tennis Center Management Contract with Roxy Tennis, LLC as per staff recommendation City Council decision not to authorize City Manager to negotiate the Southlake Tennis Center Management Contract with Roxy Tennis, LLC as per staff recommendation and provides “next step” direction. Supporting Documents: None at this time. Staff Recommendation: Staff recommends the City Council authorize the City Manager to negotiate the Southlake Tennis Center Management Agreement with Roxy Tennis, LLC. City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork