HomeMy Public PortalAboutGAC 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.