Modesto officials will ask the City Council tonight for permission to bring in another private company to manage its 18-hole Dryden and Creekside golf courses, which have been a financial drain on the citys stressed general fund budget.
City officials want to enter into a two-year deal effective Oct. 15 with golf-management firm Kemper Sports and end its relationship with FM Golf, the firm that has managed the two courses since July 1, 2012.
The proposed deal also calls for Modesto to extend the contract for Valley Crest, the firm that maintains the citys three golf courses, to October 2015.
Valley Crest would reduce what it charges the city annually by $50,000, from $1,600,642 to $1,550,642. But the city expects it will need to increase the duties of an administrative analyst to oversee the new contract from quarter time to full time at an annual cost of $45,886.
The proposed deal calls for Modesto not to pay Kemper Sports a fee for managing the two courses. Instead, Valley Crest would pay Kemper. When asked why Valley Crest would enter into such an agreement, city Parks, Recreation and Neighborhoods Director Julie Hannon has said Valley Crest is strongly motivated to keep Modestos business.
As part of its agreement with the city, FM Golf agreed to limit the general fund subsidy to the citys golf fund to $250,000 and reimburse the city for any amount above that. City officials say Modesto provided a $522,552 subsidy to the golf fund for the fiscal year that ended June 30.
Modesto gave FM Golf six months notice in April that it was canceling its contract. FM Golf is run by Sue Fiscoe, the citys longtime golf professional. The two courses have required more general fund support in recent years because of a decline in golf play and revenue.
The citys third golf course, the nine-hole Modesto Municipal Golf Course, is managed by the youth golf nonprofit organization The First Tee and the Del Rio Foundation.
Hannon said in an email Monday that the city still is completing the details of the proposed deal.
Kemper Sports has experience with municipal golf courses. It manages Stocktons Swenson Park and Van Buskirk golf courses, according to that citys website.
The City Council meets at 5:30 p.m. in the basement chamber of Tenth Street Place, 1010 10th St.
Bee staff writer Kevin Valine can be reached at firstname.lastname@example.org or (209) 578-2316.