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GAC Minutes 1993 04/07Golf Course Advisory Committee Minutes April 7, 1993 Attending: Ted Whiteman, Vice -Chairman Frank Brown Jeff Goodman Charles Denham Mary Clemmer Bud Schmidt Mike Anderson CALL TO ORDER AND ROLL CALL: Ted Whiteman called the meeting to order in the absence of Kay �.. Larson. DeEtte McCarty was also absent. NEW BUSINESS: 1. Annual Budget and Work Plan for '93-'94: Superintendent Denham presented the Committee with his preliminary Capital Improvements and Equipment list for consideration. This item will be listed on the agenda for the May meeting. 2. Water System Improvements, Golf Course: After some discussion about the golf course reserve fund and benefits to the City of disconnecting the golf course, the consensus was that golf course irrigation was top priority and should be addressed as soon as possible. This will be discussed further at the May meeting. OLD BUSINESS: 1. Cart Storage: ********** The City Administrator presented a request for proposals form for Committee consideration. After discussion on the dynamics of the proposal, Frank Brown moved to recommend to the City Council to pursue the use of the proposal from the Administrator and accept bids from developers. Jeff Goodman seconded and the motion carried unanimously. 2. #15 Tee: The discussion ended saying that the property should be surveyed after the snow is melted to determine whether the old tee is on parks or golf course property the decide on a course of action. 3. Restaurant Concession Contract: ********* The Committee extended a welcome to Mary Clemmer as the new concessionaire. Mary then discussed some areas of the kitchen that needed improvement. Among those were 1) a walk-in cooler 2) stainless steel table, wash basin and shelving 3) a stand alone freezer. The walk-in cooler was determined to be a must before the restaurant could open. The prep table and shelving would also be necessary. She also discussed a power line from Lick Creek Road to the snack shack at a cost of $900.00. Frank Brown moved to recommend to the City Council to accept the restaurant concession contract as amended to include provisions that provide for the purchase of a walk-in cooler for $3500.00 and the prep table, wash basin and shelving for $1200.00 to be purchased be Mary Clemmer and bought back by the City on a 5 year lease purchase agreement. Jeff Goodman seconded and the motion carried unanimously. OTHER BUSINESS: 1. Tractor: The Committee was informed that John Deere was the low bid and will be the tractor to be purchased. 2. Dance Floor: ********** The Committee discussed the dance floor that was installed in the clubhouse. They decided that it was not built as originally represented. The Committee wanted to bring to the attention of the City Council that the floor installed was not built to specifications as represented to the Committee members. It is not recessed into the carpet so it could be covered with carpet and unnoticeable until used. Jeff Goodman moved and Frank Brown seconded to recommend to the City Council that the dance floor be modified to meet expectations reflected to Committee members or removed entirely. The vote was unanimous. With no further business, the meeting adjourned at 9:00 p.m. Respectfully Submitted, te244:::::7 Ted Whiteman, Vice -Chairman RESTAURANT MANAGEMENT AGREEMENT This Agreement is made April 8, 1993, by and between the City of McCall, Idaho ("City") and Clubhouse, Inc., an Idaho business corporation, Mary E. Clemmer, President, ("Manager") for and in consideration of the mutual promises in this Agreement. Recitals 1. City owns a golf course located on the easterly side of the City, on which there is a clubhouse containing a restaurant and bar facility ("Restaurant"). As this is a licensed facility under the alcoholic beverage control laws, Manager needs to take care to control illegal activities. 2. City desires to obtain the services of a manager for the Restaurant who has extensive actual experience in managing and operating restaurants and lounges, and in that fashion to be relieved of the day to day responsibilities of management, which are beyond the expertise of City's employees. 3. Manager's principal officer, Mary E. Clemmer, is an experienced manager and operator of such facilities, and has expressed an interest in managing Restaurant, but does not wish to abandon her other business interests such as would be necessary for her to become an employee. 4. This agreement is therefore entered into for Manager to assume all responsibility for the operations of Restaurant during 1993. 5. The proposal which led to this Agreement was submitted by Mary E. Clemmer as an individual, but she has since formed a corporation with her brother to operate the restaurant; nevertheless, she understands that having offered to contract as an individual, she will remain personally liable to the City. Agreements 6. Manager will manage Restaurant for City, to include performing the following duties, as well as others necessarily implied, during the golf season of 1993; this Agreement terminates December 31, 1993, unless otherwise agreed in writing prior to that date: a. To hire, fire, and supervise all employees engaged in the operation of the business of Restaurant, to include bartenders, wait persons, bus and cleaning persons; to be responsible for salaries and benefits and ensure compliance with all state and federal labor laws including FICA, state and federal income RESTAURANT MANAGEMENT AGREEMENT, April 8, 1993 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) page 1 tax withholding, unemployment insurance and workman's compensation insurance; b. To furnish the City a Certificate of Insurance evidencing Workman's Compensation Insurance for its employees; to provide $500,000 single limit insurance in the following categories: general liability, products (food and drink), maintenance, and liquor liability; to provide $10,000 cash loss, theft or embezzlement bond or insurance; and to provide a Certificate of Insurance evidencing such insurance and the naming of the City as an additional insured on all such policies; c. If Manager elects to accept credit cards, to request proof of identity of the person submitting the card if that identity is not already known, and to maintain and use the lists of invalid cards circulated by banks; and to explore in good faith the cost of installing telephonic verification equipment subject to the same buy-out provisions as is provided with respect to refrigeration equipment; d. To provide the necessary food, beverages and consumable supplies used in the business of Restaurant; e. To remit all receipts to the City on the next business day along with summary reports, journal tapes, and "Z" tapes annotated with explanations for any differences between register tapes and actual receipts; to state sales tax separately from sales price on all individual transactions at the Restaurant, and to account separately for sales tax in all reports furnished to the City in cooperation with the City Treasurer (the City will handle remittances to the State); to provide a change bank for each cash register; f. To ensure that the facility is kept clean and attractive, including maintaining upstairs lobby, deck and rest rooms as well as providing towels, tissue, soap and other supplies, to include cleaning and maintaining all furniture, fixtures and appliances devoted to Restaurant use, including the interior walls and floor coverings, normal wear and tear excluded; Manager need not maintain the dance floor surface, and is not responsible for damage to the dance floor surface from golf spikes; g. To communicate with City as only follows: 1) To schedule anything other than regular services to those using the golf course and spectators, obtain the consent of the Golf Professional, currently Mr. Carl Hoss; 2) To report any problem with building RESTAURANT MANAERIEnnAGMEMENTIataPtiiea, ti9k to the calje 2 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) Superintendent; Manager has no authority to contract for parts or services for building maintenance or utilities; and 3) To discuss and resolve any other issues, contact the City Administrator; No other City Official has any function with respect to this Agreement, once its execution has been authorized by the City Council. h. To determine the prices to be charged for food and drink served in Restaurant, none of which prices shall be stated to include sales tax; to operate the Restaurant at least as profitably as it was operated during 1991; and to demonstrate at all times the requisite business and management skills to operate successfully; i. To do no act which in any way implies that Manager has any interest in the beverage dispensary licenses applicable to Restaurant, which are and will remain the property of the City or are issued by and revocable by the City; To comply with all terms of the Special Use (Conditional Use) Permit for the golf clubhouse, insofar as they relate to operations of the Restaurant; k. To attend all meetings of the Golf Advisory Committee, and to meet periodically with the City Administrator, Golf Professional, and City Golf Superintendent, in order to maintain effective communications and enhance the quality of overall operation and maintenance of the City's Golf Course and Golf Clubhouse; it shall be the responsibility of the Golf Superintendent to inform Manager of the time and place of Golf Advisory Committee meetings; 1. To furnish each month a profit and loss statement for Restaurant operations in form and content satisfactory to the City Treasurer, including a full statement of expenses with supporting receipts, and proof of payment of unemployment insurance, payroll taxes and withholding, and workman's compensation insurance; and not later than sixty days after the end of operations for 1993, to furnish a complete financial report to the City to include balance sheets, and profit and loss statements, in form and content satisfactory to the City Treasurer; m. To operate the Golf Clubhouse Restaurant during the hours of operation (daylight to dark during the golf season, which is defined for purposes of June 15th through September 31st to be 6 AM to 10 PM). Manager shall ensure that a choice of simple, low- J• RESTAURANT MANAGEMENT AGREEMENT, April 8, 1993 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) page 3 cost meals is available to golfers; what Manager may choose to do on the "high end" is up to Manager. During the times, if any, that the golf course is closed by weather or other cause beyond Manager's control, Manager may in its discretion close Restaurant. Manager shall obtain at its own expense any menus not on site, and ensure that the front cover of any such menu looks exactly like that used in 1991. n. To engage in no unlawful activity on the premises of the Golf Course, and not to permit or condone any such activity by employees, customers, or others; if observing illegal conduct by employees, customers, or others, to report the matter to the police; in that connection to provide a drug -free workplace, and to discharge promptly any employee found to be engaging in unlawful activity. 7. The City will: a. Furnish the building and fixtures presently installed without charge; b. Furnish utilities to include: telephone (except long distance), garbage, lights, heat, water, and sewer; c. Furnish state and local beer, wine licenses; and d. Remit the fixed contract amount of installments payable as follows: May 1, May 15, June 1, June 15, July 1, July 15, August 1, August 15, September 1, 1993 $15,000 1993 10,000 1993 10,000 1993 10,000 1993 10,000 1993 15,000 1993 10,000 1993 10,000 1993 10,000 $100,000 and liquor $100,000 in 8. Manager and City will fully discuss the possible terms and conditions of winter operations for 1993-4. Manager currently hopes to be able to continue to operate the Restaurant during the Winter on a basis to be negotiated in good faith. Manager and City understand that any such arrangement must comply with Federal requirements for the use of facilities financed with tax exempt bonds, as well as the prospect of both a reasonable compensation to Manager and a profit to City. 9. Manager accepts the Restaurant in its present condition, after complete inspection of the same, except that certain changes will be made as follows: RESTAURANT MANAGEMENT AGREEMENT, April 8, 1993 page 4 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) a. Manager will at its cost and for its ownership obtain a free-standing freezer. b. Manager will purchase and see to the installation of a walk-in refrigerator of a size adequate for Restaurant, a food preparation area, a food preparation sink, and a hand washing sink. Manager will also so purchase c. A11 such food storage, food preparation, and hand washing facilities must meet the requirements of the Central District Health Department. d. City will reimburse Manager the actual as -installed cost to Manager of the walk-in refrigerator, the food preparation area, the food preparation sink, and the hand washing sink, but not to exceed in the aggregate the sum of $7,500. Such reimbursement will be at the rate of 20% of such cost per annum, without interest, title to pass to the City upon payment of the fifth such installment. e. Manager will furnish City a dated inventory, signed by Manager, of all equipment and fixtures found by Manager at the Restaurant when taking possession. Manager may remove City fixtures and appliances at Manager's expense, and replace them with equal or better also at its expense, provided Manager first obtains the written consent of the City Administra- tor as to the change and as to storage or disposi- tion of City property. Manager may at its expense install and provide other equipment. Any appli- ances, fixtures or other improvements installed by Manager under this paragraph e. will become the property of City upon the expiration of this Agreement, unless removed by Manager prior to that date; if Manager thus removes any appliance, fixture or improvement installed by it, it shall at its expense return and reinstall any stored City equivalent. 10 City will as provide above pay Manager a management fee of $100,000. None of Manager's compensation will be a percentage of net income. In addition, City will pay Manager gross income percentage compensation as follows, but in no event to exceed $100,000: then this percentage if gross receipts of receipts in excess equal or exceed: of $100,000: $100,000 - $109,999.99 $110,000 - $119,999.99 $120,000 - $129, 999. 99 $130,000 - $139, 999. 99 $140,000 - $149,999.99 $150,000 - $159, 999. 99 20% 30% 40% 55% 62% 74% RESTAURANT MANAGEMENT AGREEMENT, April 8, 1993 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) page 5 $160,000 - $169,999.99 $170,000 - $179, 999. 99 $180,000 - $189, 999. 99 $190,000 - $199, 999. 99 $200,000 - $209,999.99 $210,000 - $219,999.99 $220,000 - $229,999.99 $230,000 - $239,999.99 $240,000 - $249,999.99 $250,000 - 74% 74% 79% 79% 80% 80% 800 76% 71% 66.5% 11. Manager will make no changes to the Golf Clubhouse, nor construct any improvements on the Golf Course, without the prior approval of the City Council after receiving a recommendation from the Golf Advisory Committee, and after receiving building permits that may be required. However, Manager may install fixtures and appliances, and shelving on the interior of any existing part of the cooking and storage facilities that are part of Restau- rant, the outside storage shed, and the satellite snack shack. Manager will inquire into the possibility of providing underground power to the location of the snack shack, and then will consult with the City Administrator about the advisability of installing the same at City expense. City will not authorize any other person or entity to furnish food or beverage service anywhere on the Golf Course, and will prohibit other persons and entities from bringing alcoholic beverages onto the Golf Course. 12. This Agreement is terminable by the City for any breach of paragraph 6 of this Agreement by Manager, or for other material cause. 13. This Agreement is terminable by Manager for any breach of paragraph 7 of this Agreement by the City, or for other material cause. 14. Manager is an independent contractor, and not an employee of the City. 15. Mary E. Clemmer, by executing this Agreement, uncondi- tionally guarantees Manager's performance of this Agreement and unconditionally guarantees payment of all moneys to the City which under this Agreement are to be paid to City. Manager is a corporation in which Mary E. Clemmer and her brother, Michael J. Anderson, are stockholders. This Agreement not being assignable without the prior written consent of the City, neither shall Mary E. Clemmer's sale or dilution of her interest in the corporation occur without the prior written consent of the City for so long as this Agreement is in force. 16. Business financial information furnished to City by Manager shall be confidential and protected from RESTAURANT MANAGEMENT AGREEMENT, April 8, 1993 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) page 6 disclosure under IC 9-340 (5). Such information may be made available by City to the Mayor and Council, City Administrator, City Treasurer, City Attorney, and City Auditors. 17. This Agreement contains all agreements of the parties respecting Restaurant. All prior negotiations and discussions, and all prior agreements if any, are merged into and extinguished by this Agreement. Dated: April 8, 1992 Clubhouse, Inc. Manager Mary E. Clemmer, as its President and as Guarantor of corporation's obligations to City ATTEST: Arthur J. Schmidt City Clerk City of McCall by: Mayor Pro-tem RESTAURANT MANAGEMENT AGREEMENT, April 8, 1993 (incorporating advice of Golf Advisory Committee from its meeting of April 7, 1993) page 7 March 15, 1993 TO: Frank Brown FROM: City Administrator You asked that I think about the process of providing golf cart storage for 1993 and thereafter on the property at the corner of Reedy and Fairway that the city acquired for this purpose several years ago. Please recall: 1. A special use permit was granted in May 1992, but requires that the design of the building(s) constructed be returned to the Planning and Zoning Commission for approval. 2. There are no funds budgeted in the golf fund for design or construction of cart storage facilities. 3. The City Council has scheduled the sale of the old golf clubhouse site and the use of the property for cart storage in 1993 appears unlikely. 4. Limitations may exist on the Golf Fund due to the outstanding bond issue on the Golf Clubhouse. Proposal: As we discussed, in light of the above facts, it is my view that the city should prepare a request for proposals to lease the entire cart storage site to a person or persons who would design, build, and then rent golf cart storage facilities. The RFP should request an annual lease rate, a lease term, and should specify the types and kinds of storage that is desired. A site plan and phasing of the project should be permitted. By way of comparison, the City Airport leases land for 20 years with renewal options up to 40 years to allow for amortization of the private hangars constructed on the property. Annual cost of living adjustments are included to ensure that the lease keeps pace with inflation. The city controls color and a variety of other details. This would be somewhat different in that I would recommend that you not lease small parcels, but lease the entire parcel to a single operator. It seems to me that the city benefits in that we are out of the cart storage business but retain some control,over it. It provides a steady income stream to the golf fund, not dependent on the number of carts stored. We will no longer be in a position to set storage rental fees and the market will dictate those rates. I do not know if there would be any response to such an RFP, but given the circumstances, cannot imagine another alternative that would accomplish the goal. DRAFT/ PROPOSAL SCOPE OF WORK The City of McCall is soliciting proposals for persons to lease the entire 1 acre site, map attached, to construct golf cart storage facilities on the property. the lessee would then rent these facilities to the public. The city would agree to a management agreement with the Golf Pro, another city contractor, for the management and operation of the facilities. The City has surveyed the market and it appears that three types of storage would be required, outdoor covered storage, inside common area (shared) storage, and private and secure units for one cart accessible only to the renter. A11 types of storage require access by each cart to electrical service for recharging the carts batteries. It is expected that each of these services would be competitively priced. The proponent will construct, within 1 year of execution of a lease, the first phase of the project. The development of other phases will be negotiated with the city and will be determined by market conditions. The proponent will construct, insure, manage, maintain, pay relevant utility charges to the city, and otherwise operate the facility without interference by the city. The proponent will have the absolute right to set rental charges for the facilities constructed. The design of the buildings must be approved by the City Planning and Zoning Commission. This is the condition of a special use permit issued for this use on the property and is intended to protect the adjoining residential areas from unsightly and poor quality development. The city will undertake no work in support of the project, either by use of city labor and equipment or by discounting utility fees. This project is intended to provide the land for a privately operated facility and all costs relevant to a private development shall be the responsibility of the proponent. This would include electrical, water and sewer connection fees and monthly service charges and building permit fees. Any Merchantable timber removed from the property will be sold and the proceeds credited to the City's Golf Fund. DRAFT/PROPOSAL PACKET CART STORAGE Proponent I propose to lease the Golf cart storage site for a period of years, with a first year lease of $ This proposal would provide at lease three types of storage, private and secure units which will rent for $ per ;. common area indoor storage which will rent for $ per ; and outside covered storage which will rent for $ per The following materials are attached which are a part of this proposal: A site plan of the property with all proposed development marked thereon, including phasing of development if desired. Landscaping, paving, pavement marking, fencing and security devices, lighting and other amenities should be included. A letter from a financial institution indicating your financial ability to undertake this project. A grading plan for the property. A proposed (draft) design of the buildings to be constructed. A schedule for completion of the first buildings on the property. Security for the city in the amount of 5% of the proposed lease amount either in cash, certified check or a bid bond. By signing this proposal, I hereby certify that I will enter good faith negotiations with the city to lease from the city the property as described in the proposal packet and according to the terms and conditions outlined in this proposal. DRAFT/3-15-93 REQUEST FOR PROPOSALS The City of McCall is requesting proposals for the lease of approximately 1 Acre of property at the intersection of Reedy and Fairway Dr. adjacent to Clements St. for the purpose of constructing golf cart storage facilities on the property and renting such facilities to the public. All proposals will meet development standards for landscaping, paving parking areas, and design requirements set out by the city. Proposals will be submitted on forms provided by the city which may be obtained by contacting the office of the Clerk, McCall City Hall, Box 1065, McCall, Idaho 83638, (208)634-7142. Proposals will be accepted until 5 p.m. on 1993. Proposals will be evaluated on the best financial return to the city, the quality of the proposal, the proposed design of the facilities, and the financial ability of the proponent. The City may reject any or all proposals and may select the proposal which is in the best interest of the city.