Loading...
HomeMy WebLinkAbout2006 Ordinance No. 048• • • ORDINANCE NO . 48 SERIES OF 2006 -- BY AUTHORITY CONTRACT NO, ID 3-"-tx:)/,, COUNCIL BILL NO. 50 INTRODUCED BY COUNCIL MEMBER WOODWARD AN ORDINANCE AUTHORIZING AMENDING Tl-IE EXISTING CONCESSIONAIRE CONTRACT BETWEEN CADDIE SHACK , LLC . AND THE CITY OF ENGLEWOOD FOR THE PERIOD OF OCTOBER 4, 2006 THROUGH DECEMBER 31 , 2007. WHEREAS , the Englewood City Council approved a propeny Lease Agreement wi th the Sheridan Redevelopment Agency and Miller Weinganen for the redevelopment of the Englewood Golf Course ; and WHEREAS , during the redevelopment project the Golf Course will be limited to 9 holes; and WHEREAS, during this redevelopment and const rocti on period , the resta urant operations will ex perience a significant negative financial impact; and WHEREAS , the passage of this Ordinance will amend the existing rest aurant concessionaire Contract and will help minimize costs for Caddie Shack dering the reno vation period; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section I. The City Council of the City of Englewood, Co lorado hereby authorizes amending the existing contract between the City and Caddie Shack, LLC which amends the rent from $36,000 to $15,000 for the period of October 4, 2005 through October 3, 2006. Section 2. The City Council of the City of Englewood, Co lorado hereby authorizes the Agreement between the Ci ty of Englewood and the Caddie Shack, LLC . for the period of October 4, 2006 through December 31, 2007, attached hereto as Exhibit A, is hereby accepted and approved by the Englewood City Council. Section 3. The Mayor and City Clerk are authorized to execute and attest sai d Agreement, for and on behalf of the City of Englewood . Introduced, read in full , and passed on first reading on the 4• day of December, 2006 . -1- 9 bi Published as a Bill for an Ordinance on the 8th day of December, 2006 . Read by 1i1le and passed on final reading on the 18th day of December, 2006 . Published by title as Ordinance No.~ Series of 2006, on the 22"' day of December, 2006 . I, Loucrishia A. Ellis , Cily Clerk of lhe Cily of Englewood , Colorado , hereby certify thal lhe above and foregoing is a true copy of 1he Ordinance pas on final reading and published by tille as Ordinance No .t./:B, Series of 2006 . -2- • • • • • • AGREEMENT OOS AGREEMENT, hereinllftcr called 'Lease", made and entered into this 4th day of October, 2006, by and between the CITY OF ENGLEWOOD, a Colorado municipal corporation, hereinafter referred to as "City11 , and CADDIE SHACK LLC ., hereinafter referred to as "Concessionaire"; WITNESSETH : WHEREA ~, the City owns certain real property which is known as the Englewood Municipal Golf Cou rse, here inafter called "Golf Course11 , ond lo cated in the City of Sheridan ; and WI-iEREAS, City and Concessionaire desire to enter int o a lease for the management of the restaurant and lounge loc ntcd at the Englewood Municipal Golf Course; NOW , lllEREFORE, for and in cons ideration of the mutual covenants hereinafter appearing and of the payment of th e monies hereinafter set fonh , the parties hereto agree as follows: Section l STATEMENT OF INTENT. The purpose of this Lease to provide snai.:k bar, grill and bar services to the golfing public and a quality, full-service restaurant fa cility offering breakfast, lunch and dinner for group meetings, servi ce clubs AZJd infonnal evening dining , ~ GRANT . The City hereb y leasei; to Concessionaire the poffioo of its golf clubhouse presently used as its restaurant concession , together with the improvements lhercon, located at 2101 West Oxford Avenue , Sheridan, Col orado 80 11 0, for !he purposes of serving fo od and beverages , including alcoholic beverages . ~-DEFINITION OF PREMISES . The "Leased Premises" as referred to herein is defined to be the golf cl ubh ouse restaurant and lounge which is owned by the City of Englewood, Colorado . See Exhibit "A". Proposed fo od and beverage operations shall also be allowed on the golf course. Nothing herein gives Concessionaire any right 10 interfere with or panicipatc in the operation of the Golf Course as a golf course, i.e. fairways and greens, Pro Shop , and all olher gol f course operations . ~-TERM OF AGREEMENT. lrus Lease sha ll not be effective until Concessionaire has obtained a liq uor license to dispense alcoholic beverages pursuant to C.R.S. 12-47 -l 0l ct. seq. From the date of signa ture until the liquor li1.-:n.se is authorized by I.he proper offi cia ls, this Lease shnll be considered an Option to Lease that may 001 be terminated by either party, except I.hat if the Liquor License is not granted and in operolion on or before September 22 , 2004 . The City hereby grants to Concessionaire the right to hold the Leased Premises pursuant to Ute tenns of thi, !..ease through December 31, 2007 . i A ~ USE OF THE PREMISES. Concessionaire shall have the right 10 possession of the Leased Premises for the purpose of serving food and/or beverages, including alcoholic beverages, for consumption on the golf course. However, nothing in this Lease shall be construed to authorize that which is prohibited under United States, State or local law, ordinance, code or regulation. The Leased Premises shall be used by the Concessionaire for the purveying of alcoholic beverages, as the same may be authorized by and regulated under die Colorado Liquor Code, C.R.S. I 2-47-101, et seq., and for the operation of a restaurant. Concessionaire shall operate thl Leased Premises in a careful, safe, quiet, orderly, and businesslike manner. Concessionnire shall nc.•t use or pem1i1 the premises to be used for any purpose that is prohibited under the laws of the United States, statutes of the State of Colorado, or ordinances, regulations or codes of the City of Englewood or the City of Sheridan. Concessionaire shall provide food and/or beverages, including alcoholic beverages on the golf cours e through the use of sheds, a cart or a combination thereof. Operation time and use of the sheds and can(s) sh alt be provided by the Concessionaire and shall be approved by the City Manager or designee in the same manner as s~cti on 8. Use of cart(s) shall follow the same rules and regulations as golf course rental carts. Shed design shall be approved by the City Manager or his designee. Use of a cart shall not interfere with the operation of the golf course . Service to the golfers on the course shall be reviewed by the City Manager or his designee every six ( 6) months. Entertainment of any nature that Concessionaire proposes on the premises shall be subject to pri o, approval by the Englewood City Manager or his designee, which approval shall not be unreasonably withheld . If the City determines any entertainment to be objectionable, City shall notify Con cessionaire in writing thereof and Concessionaire shall terminate said entertainment immediately . Sec tion 6. RIGHT TO USE PREMISES , City hereby grants to Concessionaire the exclusive right to use the Leased Premises to operate a restaurant and to purvey alcoholic beverages . Use of vending machines by the Concessionaire must be approved by the City Manager or designee. Section 7. MENU. The Concessionaire shall provide an attractive menu for breakfast, lunch, and evening meals li sting meal items, beverages available and current pricing . Menus, pricing and changes to menus or pricing of menu items shall be reviewed and approved by the City Manager or his designee . The menu maybe changed to reflect a decrease in business. Dinners will be served in accordance with the amount of business generated. • • • • • • ~. HOURS OF OPERATION . a) b) c) d) e) {) g) From May 1st tbrou&h September 30th of each year, the Concessionaire shall operate the restaurant facility seven (7) da)'I per week and during these months shall be open each day to serve meals to the public from one-half hour before dawn and shall remain open until at least dusk. During the months of October Isl through April 30th of each year, the Concessionaire shall operate the restaurant facility seven (7) days per week and during these months shall be open each day to serve meals to the public at dawn and shall remain open until at least 5:00 p.m. HoW"S of operation, includin g the hours of shed and cart operation, may be modified with written approval from the City Manager or his designee . Beverage cart operation needs to service the Back 9 course . The restaurant may be closed during bad weather days (when the golf course is closed for play). Concessionaire agrees to cooperate with the Golf Course Manager in scheduling golf meetings and events that involve use of the grill, meeting room and dining room . In the event of any disagreement. lhe matte r shall be referred to the City Manager or his dcsignee. MAINTENANCE, REPAIR AND REPLACEMENT. The Concessionaire shall be responsible for repairs and/or replacement of small appliances, dishes, glasses, silverware, and other equipment and miscellaneous cooking pots, pans and utensils. ii , The City shall be responsible for the cost an d select ion of the contractor for maintenance, repairs and replacement of the stov e. grill and av~ hood and fire suppression system, deep fat fryer, sinks, greu ~t• trar, cabinets, dishwashers, freezer, walk-in cooler, bar refrigeration. furniture, and sna ck bar cooler unless such cost is due to negligence or other acts by Concessionaire or employees of Concessionaire. h) Concessionaire and or the City may temporarily close the restaurant facility for cleaning , construc tion and maintenance under a mutually agreed upon schedule . ~. CLEANLINESS OU!DELINES . The Conce11ionaire will maintain, at all times, the kitchen, food prcparation1 dining and banquet areas, all equipment, fixrures, paraphernalia, materials, utensils and other items there in, in a clean and unitary manner, polished and waxed to the highe,t dearee possible. Concessionaire shall keep the conceasion facilities clear of broken glass, debris, and garbage. Concessionaire shall dispose of any waste water or other waste fluid in the sanitary sewer. In the event waste fluids may not legally be disposed of in the sanitary sewer, then Concessionaire is responsible for disposing of same in an appropriate and lawful maMer. Concessionaire shall comply with all applicable h .. lth and sanitation laws and regulations in effect where the food/beverage areas arc located. The Concessionaire shah 9Cffllit and facilitate inspection of the food/beverage areas by the City and its representatives and by public health/sanitation/building/fire authorities so authorized at all times. The following shall establish the minimum sanitation guidelines for the Concessionaire: a) The Sanitation Code of the U.S. Food Service Industry as published by the National Restaurant Asscciation. b) All State of Colorado Acts and Regulations governing food service operations. c) All applicable County Public Health/Sanitation Regulations. d) All appl icable Federal Government Acts and Regulations. e) Any specific guidelines established by the Manager. SECTION 10. SANITATION REGULATION AND JOB INSPECTION. a) Infonnal inspections of the food service facilities are to be conducted weekly by the Concessionaire. An inspection checklist is to be prepared and completed by the Concessionaire for each inspection, and said cbeckJists are to be made available to the City upon its re quest. A complete report of corrective measures taken or to be taken for any deficien cies noted should accompany the inspection report b) Informal inspections of the food service facilities are lo be conducted daily by the Concessionaire with immediate corrective measures taken for any deficiencies noted. c) Fonnal inspections of the food service facilities arc to be conducted a minimum of two (2) times per year, on a quarterly basis, by the City's designated representative, accompanied by the Concessionaire. ~ RENT. a) No rent will be charged during this Contract period of October 4, 2006 through December 31, 2007 , ~-lITILffiES. City shall provide all utility costs for operation MM..U. JANITORIAL SERVICE AND TRASH REMOVAL. City shall be responsible for the reasonable cost of trash removal and janitorial aervice for the Leased • • Premises . Nothing in this Paragraph shall diminish the Concessionaire's requirements set forth in • Paragraphs 9 and 10. 4 • • • Sg.n..11. PARKING FACILITIES . a} The existin& parkina facility adjacen1 to the Restaurant concession (hereinafter called "parkina facility ") shal l be open for use by Concessionaire and its customers ; s uch right of use of the said parking fp,;ilitics shall be non -exclusive right. b) City shall at its own expense maintain the parking fa cility , which shall include snow removal when necessary. ~ SIGNS. The City shali maintain an entrance sign with the name of the Concei;sionairc , The Concessionaire shall be allowed equal space on the entry sign. Ally other signage for the restaurant shall be the sole responsibility of the Concessionaire . All signagc must be approved by the City Manager or his designec. Section 16. PHYSICAL FACILITY AND EQUIPMENT. City agrees to provide sp ace, fixtures, equipment and furniture for an equipped kitchen, bar, lounge area , grill, snack bar and two dining/meeting rooms. Co ncessi onaire agrees not 10 move existing partitions separating dining area and meeting room withoul lhe written pennission of tho City Manager or his designee. ~ ADDITIONAL FACILITIES AND EQUIPMENT . Concessionaire shall have the right to install additional facilities and equipment with the conse nt of the City Manager or his designee. Said facilities and equipment shall become the prop erty of the City upon the termination of the lease . ~ SECURITY . Concessionaire is responsible for the obtaining oflhcft insurance covering all food, liquor, and other supplies and personal pro!)Crty of Co ncessiona ire, Such policies shall contain no right of subrogation against lhe City. Conccssi'lnaire sha ll pro '/idc a copy of the policy to the City Manager or his dcsignee . 5 SWilln..12 , PERSONNEL . a) Con cess ionaire shall at its own expense employ such qualified personnel as may be necessary for the concession operation and shalt require all pcrsoMel to be clean, polite, and courteous in their lransactions with the publi c. b) Concessionaire shall give peri:;onat supervision and direction to the operation of the concession and, when absent, keep compelent pcrsoMel in charge . c) City shall not be responsible for the wages or salaries of an y employee or represen tative of Concessionaire, nor for any debts, liabilities or other obligations of Concessionaire. d) Neither the Concessionaire nor the employees who perfonn services pursuant to the Agrcemcnl shall be considercrt employees, servants or agents of the City of Englewood as a result of the performance of services under the Agreement. e) Violence and acts prohibited by law committed by Concessionaire or employees of Concessionaire shall cause immediate tennination cf the Lease. f) All concession personnel arc responsible for the safe use and proper ma in tenance of oil kitchen equipment Com .. cssionaire is responsible for training personnel on all kitchen equipment operations and maintenance . Sec1ion 20, LICENSES AND PERMITS . Co ncessionaire, at its own expense, shall sec ure any and all licenses nnd pennits for food seivices • and purveyance of alcoholi c and non-alcoholi c beverages . Concessionaire agrees to promptly initiate • an applicatio n and obtain a Hotel lllld Restaurant Liquor License pursuant 10 C.R.S. 12-47-101 et seq . Concessionaire shall have the responsibility of the enforcement of all liquor laws and regulati ons on the premises . Concessionaire shall rei mburse !he City for all licen se fees it has paid to Sheridan and the State of Colorado . Section 21. COMPLIANCE WITH STATE AND CITY HEAL TH CODES . Concessionaire shall keep oil concession areas in a clean and sanitary condition at all llmcs end shall comply with all State, County and City health laws relating to th e dispensing of food and beve rages . Scc1ion 22 . JNSURANCFJINDEMNIFICA llON. a) Concessionaire agrees to furnish to City a performance bond or a cas h deposit in th e amount of len 1housand dollars($ 10,000) guaranleeing foilhful performance by Concessionaire of all tcnns, covenants , and conditions herein contained and compliance with applicable City ordinances. Said bond shall be furnished as of the date of cxecu uon of this Lease. b) Conce ss ionaire sha ll at Concessionaire's own expense keep in full force and effect during the term of this Lease statutory Worker's Compensation coverage. A COjJY of the certificates of insurance sha ll be se nt to the City in ca re of the purchasing division. • • • • c) INDEMNIFJCA TJON . r :;onaire aa,ees 10 indemnify and hold harmlw the City of Eftalowood, ill officer, , ,, inluren, and self-inlurance pool, from and aaainlt all liability, clainu, and dt..d .. ,_, on account of iajury, lou or damaae, of any lwld whatsoever, which arise out of or are in any m&Mer connected with Conceaaionatre, if 1t1ch injury, l'Jas, or dama::e is caUJed in whole or in put by the act. omiuion, or other fault of Concessionaire, or any officer or employee of Conceuionaire. Concwionaire agrees to investigate, handle, respond to, and 10 provide defense for any such liability, claims, or demands al the solo expense of Concessionaire, and agrees to bear all other costa and expenses related thereto, including court costs nnd attorney fees, whether or not any such liability, claims, or demands alleged are groundless, false, or fraudulenl d) INSURANCE. Concessionaire is to procure and maintain, at its own cost, a policy or policies of insurance sufficient to insure against all obligations asswned by Concessionaire punuant 10 this Lease. ii . Concessionaire shall procure and continuously maintain the minimum insurance coveraae's listed below, with the fonna and insurers acceptable 10 the City of Englewood . In the case of any claims-made policy, the necessary retro11ctive dates and extended reporting periods shall be procured to maintain such continuous coverage. (A) General liability and erron and omissions insurance with minimum limits of one million dollars ($1 ,000,000) per each person and one million dollars ($1 ,000,000) per each occurrence, plus an additional amount sufficient to pay related attorneys' fees and defense costs . (BJ Liquor Legal Liability Insurance, with minimum limita of S 1,000,000 for injury or death of any one person; $1,000 ,000 for injuries or death occurring as a result of any one accident; S 1,000,000 for property damage; and $1,000,000 for products liability. A certificate evidencina said insunince policies shall be kepi on file with the Clerk of the City and the City Purebasing division and shall have a provision that the same shall not be altered, amended, or canceled without first giving written notification thereof to the City thirty days prior thereto. Concessionaire furth,r agrees 10 indemnify the City for any claims brouahl against the City because of or on account of Concessionaire's operation. iii. Fire and Extended Coverage Insurance shall be provided by the City on the Club House building, and extended building& included in Leased Premises , only. Concessionaire shall be solely responsible for securing and paying for insurance coverage on those improvements and contents belonging to Concessionaire located in or on the Leased Premises . Concessionaire hereby expressly waives any cause of action or right of recovery which Concessionaire may hereafter have against City for any loss or damage to Leased Premises or to any contents or improvements thereto belonging to either party, caused by fire or explosion. iv. The policies required above shall be endorsed 10 include the City ofEr,alewood and the City of Englewood's officcn and employees aa additional insured. E'lery policy required above ahall be primary insurance, and any inluranco carrie-J by the City cf Enalowood, ill olliccn, or ita cmployeca, or carried by or providori throuah any 1elf- inluranco pool of the City of Enalewood, al-all be excea, and not contributory insurance to that provided by Concwionaire . v, The cenificate of inlurance provided to the Cil)' of Enalewood shall be completed by the Conceuio~•• inaurance 1aent u evidonce that policie, providina the roquirod coveraae'■, conditi0111 , and minimum limitl ue in full fon:e and eff'ec~ and ■hall be reviewed and approved by the Cil)' of Enalewood prior to commencement of the Aareement No other form of certificate shall be wed. The certificate ahall identify thiJ Aa,eement and shall provide that the covtrage'■ afforded under the policiea sh•II not be ca11celed, tenninated or materially chanaed until at leaat 30 da ys prior written notice has been given 10 the Cil)' of Englewood . The completed certificate of insurance shall be sent 10: Ci1yClerlc Cil)' of Englewood 1000 Englewood Parkway Englewood, Colonido 80110 A certified copy of any policy shall be provided to the Cil)' of Englewood at its request A copy of the certificates of inlurance shall be sent to the Cil)' in care of the Purchosing Division, 2800 South Platte River Drive, Englewood, Colorado 80110. vi. The parties hereto understand and agree that the parties are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations (pre,endy SI ,000,000 per person and Sl,000,000 per occumnce} or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S . 24-10-10 1 et seq,, as from time to time amended , or otherwise available to the parties, their offlcet'R, or their employees. • A certific.ie evidencing said iruurance policy shall be kept on file with the Ci1y Clerk of the • City and shall have a provision that the same shall not be Rltered, amended, or canceled without 'int giving written notification thereof to the Cil)' thirty days prior therett . Concessionaire further agrees to indemnify the Cil)' for any claims brought agwt the Cil)' because or on account of Concessionaire's operation. A copy of the certificates of insurance shall be sent to the Cil)' in care of the purchasing division. ~-FIREC •~NATIJRALDISASTERS . In the event fire or natural disaster renders the Club House and its concession facilities inoperable, the Concessionaire shall be released from the tenna of compensation to be paid the Cil)' until such time as the Club Houae and its concesaion facilities are declared open and operable by the City. If in the event such concession facilities are not open and operable within a period of thirty (30) days from the time of such disaster, Conccsaionaire has the right to terminate its contract and Lease with the City under Section 24, Tennination of Lease, contained herein. ~ TENANT RECORDS . Concessionaire shall keep and maintain complete and accurate records and accounts of its busineM on a calendar year bosis. A monthly report shall be generated providing a breakdown of"gross sales" into the following categories : Vending Operations, Beverage cart Operations, Food Operations Liquor Operations. Such records ■hall be maintained in accordance with generally accepted accounting princip lea and shall be audited annually by an independent eccountant certified in the State of Colorado. The records ahall clearly show Conceuionaire's arosa ■ales, includina proceeda from all caterina • activities . Gross sales shall be divided in re11taurant ooerationa, catering operations and bar operations . Such record& and accounts, including all sales tax reports that Concessionaire furnishes 8 • • • to any government or governmental agency shall be made available for inspection at any reaso nable time upon request of the City, the City's auditor, or other authorized re presentati ve, and a copy of such &M'Jal audit, including all written wmmcnta and recommendations of such independent accountant, shall be furnished to the Ci ty Clerk wi thin 90 days of the close of the fiscal year be ing so audited. · ~-TERMINATION OF LEASE. a) Thi,; Lease ma y, at any time, be tcnninnted by either party upon ninety (90) days' written notice to 1hc other without cause. b) The parti es may tenninatc the Lease by gi"ing thirty (30) days' "'linen notice of a violation of paras raphsS , 7,8,9, IO , II, 12, 13 , 14, IS, 16,and 17. c) Violation of paragraphs 18, 19, 20, and 21 shall be gro unds for immediate tenninotion of th e Lease. ~-DELI VERY AND REMOVAL UPON TERM INATI ON. Concessionaire will deli ve r the premi ses at the terminati on of this Lease in as good condition and state of repair as when re ceived, except for ordinary wea .. and tear or loss or damage caused by an act of God . Upo n termination, Concessi onaire shall have th e ight to remove any supplies or personal property be long ing to or installed by the operator, subject, however, to any valid lien or claim which City may he ve for unpaid fees . Provi ded also that if said removal causes any damage to th e premi ses, said Concess ionaire will rep air th e same in a proper and sa tisfac tory mann er at its own ex pense. All liquor licenses shall be transferred to the City of Englewood or new concessionaire. At no tim e shall Concessionaire tenninate , alter or surrend er th e liquor li ce nse without approva l of the City of Englewood. The CGncess ionaire sha ll be subject to injunction to prevent surrender or injury to the liq uo r license. Upo:i. terminati on, the attached Power of Attorney shall be operative and shall allow the City to operate the esta blishment pursuant to law. In the even t the liqu or license is transferred 10 the City of Englewood or new concessio naire, the City shull pay the Concess ionaire $2,500.00 less any offsets allowed by the prior provisions of this Agreement ~-This Agreement may not be assigned and a sublease shall not be all owed witho ut the written consent of both parti es. Section 28. NOTICES. All notices, demands and communications hereunder shall be personall y served or given by certified or registered mail, and : a) If intended for City shall be add ressed to City at: City of Eng lewood Attention : City Manager I 000 Eoglewood parkway Englewood, Colorado 80 JI0 with a co py to : City of Englewood Attention : City Attorney 1000 Englewood Parkway Englewood , Colorado 80 II 0 b) If intended for Concessi onaire shall be addressed to Concessionaire at: Caddie Shack 20 I Denargo Market Denver, Colorado 80126 with o. co py to : Jim Dadiotis 201 Dcn,rgo Markel Denver, Colorado 80126 c} Any notice given by mail shall be deemed delivered when deposited in a United States general or branch post office, o.ddressed as above, with pos tage prepaid, or when served personall y at the applicable address. Scctjon 29. ENTIRE AGREEMENT. This Lease, tog~thcr with the exhibits attached herelo : a) Contains the entire agreement between the parties ; and b) Shall be governed by the laws oftlte State of Colorado. Section 30. SEVERABILITY . • If any clo.use of provisioo of this Lease is illcgo.l , invalid or unenforceable under present or future laws effective during the tenn of this Lease , then and in that event, it is the intenti on of the panics hereto that the remainder of this Lease shall not be affec1ed thereby , It is also the intention of the • parties to this Lease that in lieu of each clause or provision of this Lease that is illegal , invalid or unenforceable, there be added as a pan of this Lea~e a clause or provision as similar in tenns to such illegal, invalid or unenforceable clause or provision as may be possible and be legal , va lid and enforceable. Section 31. CAPTIONS. The caption of each Section is added as a matter of convenience only and shall nol be considered in the construction of any provision or provisions of this Lca.c;e , 10 • • ~-BINDING EFFECT. • • All tenns, condition, and COVCOl&l!J to be observed and perfonncd by the partica hereto shall be applicable to and bindin& upon their respecti ve heirs, administrators, executors, successors and wigns. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals as of the day and year first above written. CllY OF ENGLEWOOD, COLORADO "City" By-::,,.-=-:---:~---Olga Wolosyn, Mayor ATTEST: Loucrishia A. Ellis, City Clerk 11 CADDIE SHACK "Concessionaire'k~ • By_L~ f im Dadiotis By. __________ _ • • ...,. - I i I I .• ·1 '1 . ·: I ---1........1----11 i" .. • I .I I . I _7· . . I .I .. . • I ~-_. /i. , I j •I ; I • •• ;•1"'----- ...,.,. I~ "'7" . . ®· i _} ' ~-: f . ! . m~ ! "-..,+--!=----Jlo-f-l.....;;-:+4',t=c;:;;;l . I · I COUNCIL COMMUNICATION Date : I Agenda Item : I Subject: D ecember 4, 2007 9 a i Restaurant Contract Golf Course Initiated By: Staff Source : D epartment of Parks and Recreation Jerrell Bla ck, Director of P,irks and Recreation Bob Spada, Golf Operations Man.,ger COUNCIL GOAL AND PREVIOUS COUNCIL ACTION 2004 Approval of Restau rant Contract• Caddie Shack, LLC 2000 Approva l of Restaurant Contract-Reif Golf, Inc 1996 Approval of Restaurant Contract· JO Q 's Corporation 1988 App roval of Restaurant Contract• Anderso n/Mall oy, In c. D .B.A.-Woody's Club 1986 Approval of Restaurant Contract-Mur-James Corporation 1982 Approva l o f Res taurant Contract-2 101 Corporati o n RECOMMENDED ACTION ..... Memmends City Council adopt an ordinance amending the ex isting contr act between th e W--"ui'y'ffl'iiglewood and Caddie Shack, LLC. The amendmen t would change rent from $36,000 to $1 S,000 for the pe riod of October 4, 2005 through October 3, 2006. Th e propos ed o rdinance also revises th e contract for a period from October 4, 2006 th ro ugh December 31, 2007. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Th <! City of Englewood has approved a property lease agreemen t with th e Sheridan Redevelopment Agency and Miller Weinga rt en. As part of this agreement, th e front nine holes of th e existing golf course, driving range and the Par 3 Course will be rebuilt . Th e golf course will be limited to 9 ho les for approxima tely 18 months. During this constru ction period, the restaurant ope rations will experience a significant negative financial impact. The Englewood Golf Course has provided a restaurant concess ion at th e exis ting clubhouse since 1982. Caddie Shack, LLC took over the operation in October 2004. They have provided exce ll ent guest services and a consistent, quali ty food product. Staff has recommended th e following changes during the renovati on period to help minimize costs fo r Caddie Shack, LLC : 1. The menu may be changed to reflec t a decrease in business. The City Manager or his designee must approve all menu changes. 2. Dinners wi ll be served based o n the amo unt of business generated. 3. Operating hours must be a minimum of 8 a.m . to 5 p.m. in the w inter/spring months (October 1" through April JO'"). 4. Operating hours must be a minimum of one half hour before dawn until dusk In the summer months (May 1" through September 30~). ~' 5. The restaurant may be closed during bad weather d,,ys (when the golf course Is closed for play). 6. No rent will be charged during the new tenn of October 4, 2006 through December 31 , 2007 . 7. Caddie Shack LLC wi ll not be obligated to pay the first $3,500 of contractor expenses during the term of this contract. 8. Beverage cart operation must service the Back 9 co urse . FINANCIAL IMPACT The Englewood Golf Course is an Enterprise Fund ; therefore, th ere will be no financial im pa ct to the City of Englewood 's General Fund. There wi ll be a decrease in re ve nue to the Englewood Golf Course by $24 ,500 in 2006 and $39,500 in 2007 . The City of Englewood has a formal agreement wi th Miller Weingarten that address es the City 's fina ncial de triment during and after the constructio n period . LIST OF ATTACHMENTS Bill for an Ordinance