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Questions remain on employee retention, equipment ownership and liability in proposed Tangle Ridge deal
Summary
Council members pressed staff on whether employees would remain city employees, how payroll and equipment liabilities would be handled, and whether council/F&G would review the vendor's budget and retention plans; staff said vendors typically retain 90%+ of staff, the city retains equipment ownership, and the vendor must carry insurance.
Council members sought specifics about how a management contract for Tangle Ridge would affect current city employees, equipment ownership and liability. Stephen Bowles said the clubhouse employees are employees of the third-party vendor while nine full-time maintenance staff are city employees; he said Elite typically achieves a 90% or better retention rate for existing staff and that "if any of those staff members ... wish to stay working at Tangle Ridge, they will get an offer from this company."
On equipment, staff said the city would continue to own property such as mowers and trucks; capital purchases would still go through the city's CIP process and the fleet division would remain responsible for maintenance. Staff also said the contract would require the vendor to carry liability and workers' compensation insurance. "Part of the requirements of the contract would be them carrying liability insurance as we require with all of our city vendors," Bowles said. Council members asked that the proposed vendor budget and contract terms be reviewed by the Finance & Government committee in the first years after award and requested staff present the annual budget for council oversight.
