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CONTRACT NO. K-1314-35: A CONTRACT BY AND BETWEEN THE NORMAN MUNICIPAL AUTHORITY AND DAVID P. LISLE AS PROFESSIONAL/MANAGER OF WESTWOOD GOLF COURSE
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BACKGROUND: Westwood Golf Course is an 18 hole public golf facility originally constructed in 1966. The course was closed in 2002 for a renovation project that was funded by twenty year revenue bonds. The bond debt is currently being paid annually with a portion of Room Tax revenues. Major projects in the renovation included rebuilding the greens, tees and irrigation system. The FYE-14 expenditure budget for the golf and maintenance operations is $1,114,602.
On 8 November 2011, the Norman Municipal Authority approved Contract No. K-1011-165 with David P. Lisle for golf professional services at the Westwood Golf Course for the Parks and Recreation Department. That contract provided Mr. Lisle an eighteen month term and expired on 8 May 2013. On 8 May 2013, and again on 24 June 2013, temporary contract extensions were executed while the proposed contract was being discussed. This item brings Contract No. K-1314-35 to Council for consideration for a term of two years.
DISCUSSION: During the previous contract term, Mr. Lisle was tasked with increasing tournament rounds and creating additional programs and players that will grow the golf business in Norman. The results have been very positive. Two years ago we saw an increase in tournament rounds of approximately six percent. Last year we had an increase of more than 26%.
Mr. Lisle has created new opportunities and programs for youth. He has helped to establish the First Tee Program in Oklahoma City and Norman which is a national program established to teach the fundamentals of golf, character building and life skills to youth. Our local First Tee Program has grown to over 60 youth in the past three years. Mr. Lisle was recently recognized as a Chesapeake Energy Community All-Star for his work with the First Tee Program in the Metro area. He has also been instrumental in setting up the Norman Junior Golf Association (NJGA) which has grown to over 80 kids in the past two years. This includes summer league play and a Junior Championship Tournament.
In addition to other new youth programs, Mr. Lisle has developed additional men’s and women’s clinics and expanded our promotional efforts at the golf course. Further, the revenue/expenditure picture has improved steadily over the last four years, reducing the General Fund subsidy to the Westwood Golf operation from approximately $191,000 in 2010 down to approximately $60,000 in 2013. As a result of this progress, staff is recommending that Contract No. K-1314-35 be approved for a term of two years and that a salary increase be considered, as provided in Section 8-A of the proposed Contract.
Mr. Lisle has been receiving a fixed fee of $39,600 per year, plus health benefits, since 2003 when the course was reopened after renovation. Salary data provided by the PGA of America shows that the average salary for Head Professionals in our region is $44,238 for municipal facilities similar to Westwood Park. Adjusting Mr. Lisle’s salary to $42,500 would place him near the market rate. Our contract provides that upon annual review, the City Manager may recommend an adjustment to the fixed fee based on demonstrated progress by the professional. Based on the progress we have seen over the past few years, an adjustment is warranted.
In addition to the fixed fee mentioned above, the Professional receives 100% of the gross receipts from the rentals of lockers which are furnished by him; 100% of the gross receipts derived by the Professional from the servicing, storage and repair of golf clubs, bags and pull carts, the latter of which are furnished by him; 100% of the gross receipts derived by the Professional from the rental of golf clubs and bags, which are furnished by him; 100% of the gross receipts derived by the Professional from the Professional Shop, the merchandise for which is furnished and supplied by him. These provisions are commonly found in municipal golf professional contracts in our region of the country.
We will continue an annual goal setting and evaluation process as we move forward with the Westwood Golf Course operation. Areas of focus for the term of the proposed contract will include retaining recent gains in tournament activity, increasing the number of golf rounds, continuing to reduce the amount of subsidy required and investigate the option of potential sponsorships that may offset current expenditures.
RECOMMENDATION: It is recommended that Contract No. K-1314-35 be approved as submitted.