Three months after soliciting proposals to operate the municipal golf course, the city has opted to keep all aspects of the golf course operation in-house, despite a struggle over the last few years to cover expenses. Three bidders submitted lease proposals in November.
Nearly three months after soliciting proposals, Allentown officials have elected not to lease Allentown (Pa.) Municipal Golf Course, the Lehigh, Pa.-based Morning Call reported.
Describing the proposals submitted as “cookie-cutter,” city Managing Director Fran Dougherty wrote that a review committee has recommended keeping all aspects of the golf course operation in-house, despite a struggle in the last few years to cover expenses with course revenues, the Morning Call reported.
“In sum, the proposals were disappointing in their cookie-cutter approach to how they would operate and market the course for both the present and the future,” Dougherty wrote in the memo, which was addressed to the members of City Council. “The city’s evaluation committee were equally confident that with some slight changes in organization and fee structures, the needed efficiencies will be achieved.”
Dougherty’s memo did not outline the changes that the administration intends to make, but said legislation will be presented to council soon. City spokesman Mike Moore, who released the memo, said he had “nothing to report” on potential legislation. There are no plans to change any course personnel, he said.
Allentown officials in October issued a request for proposals to lease the course, citing the city’s golf fund, which has ended the year in the red four of the last five years. The fund was $17,035 in the red that month, the Morning Call reported.
C&RB reported in October that some residents were angry about the plan to lease the golf course, blaming the city for the financial mismanagement.
Three bidders—Billy Casper Golf, Commonwealth Golf Group and Oliphant Golf LLC—submitted lease proposals in November. Dougherty’s memo stated that Lindsay Taylor, director of parks and recreation, led an evaluation committee to review the proposals, the Morning Call reported.
Budget documents show that the city expected to come up short on revenue from the golf course for 2015. About $1.5 million in revenue was budgeted for last year, but only $1.2 million was expected to be realized. Cart rentals, greens fees, the driving range and the course’s pro shop all were expected to fall short of revenue projections, the Morning Call reported.
Expenditures were expected to be slightly over budget for 2015. Overtime was expected to cost $4,000 more than projected, according to budget documents.
Parks and recreation officials have pointed to labor costs as a problem for the course, which pays seasonal employees near union-level wages under an agreement set to expire in the middle of this year. Pay increases and holiday pay are guaranteed to seasonal employees, allowing some to earn up to $19 an hour, the Morning Call reported.
According to the RFP issued for the proposed lease, the lessee would have had the power to hire its own staff and golf pro. Jobs for existing employees did not have to be guaranteed, the Morning Call reported.
Ryan Hunsicker, chapter leader for the Service Employees International Union that represents course employees, said there have been no negotiations or changes made to the current agreement. If any future city proposals for the course affect personnel, they will be handled by the SEIU, he said.
“As far as we’re concerned, it’s a wise decision,” Hunsicker said of the city’s choice to manage the course in-house. “I respect them for keeping that function as a city-run function.”
Daryl Hendricks, vice president of City Council, said he was pleased with the decision not to lease the course, the Morning Call reported.
“I look at the course like the swimming pools and all the other recreation we afford our citizens,” Hendricks said. “If that costs us some money, so be it. I’m opposed to giving up control over it.”
Allentown’s pools are included in the city’s parks and recreation fund. The city does not earn enough revenue from pools to cover all pool-related expenses, the Morning Call reported.
Allentown Municipal opened in 1952 on land purchased by the city from the Trexler Trust. Deed restrictions require the city to sell the land back to the trust for $25,000 if the property is no longer used as a municipal golf course, the Morning Call reported.
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