HomeMy WebLinkAbout1988 Resolution No. 001I
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RE1: Ll!l'ION NO .
SER I ES OF 1988
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l\ RESOWfION APPROVING AN AGRIDlfill' TO PROVI DE A MINIATURE a:JLF COJRSE AT 'lllE
ENGL~«xJD MUNIC IPAL COORSE .
WHIBEAS, t he City desires to prov i de 1.1 mi niature golt course concession
at its .::ng le-.ood Municipal Go lf Course carq,lex; and
l·nIEREAS , the City s hal l at al l tines ret ain o,;o1e r ship of the r eal
prO:-"'rtY up:,n i,..i1.ic h the concession is ope r ated ; and
WIIEF "A,, i t i s necessar y for the health , s afe ty and welfare of the
rit ize n~ o f P.nqlewcod to have such a concess i on .
!JO-!, THEREFORE, BE IT Rl'..SOLVID AS FOLLCWS:
Sect ion L The Agreement t o pr ovide C-olf Course Concession Services with
Scott Sanders and Scott L . Si.rrpson i s hereby a p proved.
Sect 10n 2 . The Mayor o f the City o f Engle-..:xxl is he reby au thorized to
approve the foregoing Agr eement an d the City Cl e r k i s a uthor ized t o attest the
sarre .
AOOPTED AND APPROI/ID the 13th day of J anuary, 1988 .
I , Patric ia H. Craw, City Clerk of the City o f Eng l e',,Q()Cj, Col orado ,
he r eby cert ify the foregoi:ig is a true copy of Reso l ution No . .L., Series of
1988 .
2 --tr«4 #. t1ar
Pa tricia H. Craw
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AGREEMENT FOR OPERATION OF
MINIA TU RE GO LF CO UR SE
TIIIS AG!l CE MENT i s a contract that is b inding uron the
p.1rtic s , tih o are the CITY Of 1:NGLENOOD [h e 1·e inafter 11 Cit y] a nd
SCOTT SA:mr.RS ~n(l sco·r·r L . SIMPSON in their i ndividual capacities
r~er e in a f te r 11Qpcrators 11 }.
T IS TIIE IllTENTION of tl1e parties that there be a
f i f•:::-four ( :>4) hole ni r iutt;re qolf course constructed and
ope r ated :n a beneficia l and aes t hetica lly comp at ibl e manne r upon
a portion of the p r emises of the existing Eng l e wood Muni ci p a l
C:ol f Course .
NOW , THEREFORE , in cons i deration of the cove na n ts and
agreemen ts he rein co nt nined an d of the f ees a nd moni es
hereinaft£•r se t forth , the arties mutua ll y agree and con tract as
fol l ows :
1. Right to Occupy and Operate .
The City hereby g r ants t h e e xclu si ve rig~t , li cense, and
privilege to Ope r ators to co nst ruc t, operate , maintain and
provide ameni t ies fo r a fif t y -fou r (54) hol e mini at u r e go lf
course and c lu b ~o us e upon a parcel of l and desc ribed in Exhibit A
at t a c hed he r e to , and which i s p r ese ntl y a p a rt of the existing
Enq l ewood Mu nici pa l Golf Cn urs e . The Clubhouse and eighteen (1 8)
holes sha l l be wh ee lch ai r accessible . Such c o nst ruction,
ore r ution , mainte n unce a nd pro v is i on of amenities sha ll
hPrei nRft e r be r efer r e~ to as 11 Cor1cession .11
The Ci y sha l l at a l l tiMes r e tain and main t b in its
o wnership of the real property so occupied .
No other activitv may be conduc ted pur s u a nt t o thi s
agr eement without the writ ten consent o f the City Manager .
2 . Concession Sub ject to Approva l.
The concess ion a nd its operat i on , including construction
dPsign , signage , mainte nance , an d provision o f amenities, as well
as a ll activit i es se t for th in th e f ollowing pa r agraph , s ha ll b e
su bject to the app r ova l of the Ci t y , throug h it s d es ignat e d
rc 'n re scnt nti ve , which approval may be g r anted or wit hheld in the
City 's so le discr e tion for any r e ason when a ct i ng in good faith .
The City ust act promp tly i n decidi ng t o g ran t o r with h o ld it s
apn r ova l for any a ct i on of the Operato rs affecting the
Concession .
The Operato r s must p r omptly p r o vide the City with any and
a l l details of , o r ch a nge s in, or mak e avai l able up o n r eque st to
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thC' C , any and al l d0 tai ls of, o r ch~1nges in., t li r• f n l l o wing :
conc;,t uction desi9n , locc1t i o n, l andscap ing, s ch cci 11\ inq,
mn trr a l s , standn r d s , contrnct o r s , subcontrac t or s , wo rkin g
r,r r sonnel , cot1 r se name , cours e operational design , layout ,
lol~1r.1on , la nd sc ap i ng , houn; an d days of operat i on , mat er i a l s ,
~, 111cl.Jrcls , s i~nuqc , emp l oyees , e mployee dr c~ss , f o nd and drink ,
~.,lr• r:ooc!P, conccEs:o n i ems , .:ill busi 11 0.:::s account :, und boo ks ,
rf'Cl,:,ir t to~al£, anr. a ny a nd a ll bu s in ess reco r ds r,•.i sonably
ncc·0ssa r y to de t e r mine acc u rat e , tru e a nd co rrcc l I ces due and
nwinn to t ~c Ci ty .
Op,,r,1tn r s shall keep and main _ ~ .. detai l ed r eco r ds of all
salr5 of ~ny kin d ~hate ver nnd o f al l e xp e nditu res in the
rnn ~t ruction a nd ope ra ion of the concess i o n .
lf a t any time , some o r any portion of the cons truction or
design of t he conc ession o r it s operation is unsati sfactory to
th e City in is sole di sc r e tion, t hen th e City may orde r and
require t ha s uc h c o ncession a nd/o r ope r ation be a lte red and
changed forthwith in a f ashio n determined by the ~ity in its so l e
sntisfac tion and a t the Ope rators ' sol e expense .
J . Te rr'L .
This aq r eement s ha ll be in effect for seven (7) year s af t e r
e xe c ut i on o n, unles s soo ne r t e rmin ated purs ua nt to the terms set
f o rth he r e in; a nd th e Operators shall have the exclusive right t o
re ne w for successi ve , add it i onal a ne (1) year terms .
Renew a l shal l be automatic un l ess either party gives writt en
no tice no less than sixty (60) days prior to the expiration of
th e then current te r m o f this agreement that r enewal is
e r minated.
'rhis ag reement is not and shall not be construed as a
franchis e , and the City and Operators shall have the right to
mutu a lly and/o r unilaterally cancel this ag r eement as set fo r th
he r e in .
4. Fees .
Th e Op erator s s hall comp e nsate the City by a monthly payment
e~u ival ent to tw e nt y pe rcent (20%) o f the gross gate fe e , and/or
o f an y o the r f e e f o r admi ssion to the concession or any pa r t
the r eo f, a nd ten pe r cent (10%} o f the gross income from sa l es and
an y ot h e r concession activity tha t include s the payme nt of sums
f o r any r e ason whatever, inc l udin g fo r food , drink and sale
goods .
All f ees shall be due a nd payab l e withi n fifteen (15) days
after the end of the pri o r mo nth . Reports with sufficient
information a nd approv a l by the Director of Finance sha ll be made
f o r each month aft e r th e mon t h this agreeme nt is s i g ned.
Failure to make timely payme n ts as requir ed sha ll cau se a
finance charge t o accrue aga inst the Operators and for the City
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1n a·, nRol1nt 0qt1~l t0 one and 0ne -h~l f percent (1 .5%) of th e
u 11p,11 d h"\l.1nc-c per ;'lnnth .
Purr.1J r1r.t tn P a r c1qr a ph 5 . Parki n g, f ees s h a l l be red uc ed
int·i l ·)2.rl:i.·,0 is paid per t h i s agreement .
~ny ~uch fa ilure to make p~ymcnt sh~l l be co n s ide red a
n1 t ,,ri~l hrrach o f this n0 r eemc nt .
5 . Pa rk:ng .
P~r~ing ~h oll i nc l ude tho se existing parki ng s paces
rres~~tl y a vail ab l e t o the Eng l e wood Munic ipa l Golf Cou r se .
C~p rrators shall con str uct a minimum fif t y -space parkjng l ot to
ncc0nm~eatc concess i on pa r king .
The p llrkin9 l o t wi ll cost Twe lve Thousan d Seve n Hundr ed
nol l Rr s 1$1 2 ,7 00). Unti l th i s amount has b een paid , Ope r ator s
sha ll ray th e City fifteen perce nt (1 5%), r athe r than t wen ty
pe rcent (20 %), of the g r oss gate fee . The remain ing f ive p ercent
1,%) will be c r edi t e d to the $1 2 ,70 0 paid by Operat o rs for
const r uctinn of the rtt rking l ot . In the even t thi s agr eeme n t i s
terminate d by eit her party , the Ci t y wil l pay Op erator s an y
halance ~ema i ~inq o n th e cost o f the const r uction o f the p arking
1 nt .
6 . City Pa rticipa ti on .
In addition t o th ose matt e r s set fo r th el .~h e r e her e in , the
Cit y sh a ll a lso pay the charge for the water t ~ and t he sewe r
tar . The water t ~p a nd sewer tap shal l a t a l l times be the
pro~erty of th e Cit y of Eng l ewo od . Th e City s hal l pay for the
i nsta ll a tion o f a fi r e hyd r ant within one hund r ed (100 ) feet of
thP cluh~ouse . Th e City sha l l pay f o r th e i nsta ll at ion of th e
w,1ter a11d sewe~ line . The Ope r a tors shall b e r e spo nsib l e for a l l
servi ce charges on water and sewe r service .
7 . Utili t ies nnd Secur ity.
The Ope rators sha ll b e r espons i ble fo r in sta ll ati o n ,
pr0vi ~ior. ,,u d ;:>ay ment f o r a ll uti l itie s (e xc e t water a n d sewer
to the e ::t:ent t h ey are con s idered and con str ued to be u t ilit:ies
as set f o rth p r e vious l y here i n). Securi t y s hall be the
respo~s ibility of the Op e ra t o r s , wh o s h al l e n s ur e t ha t the
pu blic , and any trespa sse r(s), s h a ll not occupy a nd use t h e
con ce ssion a nd its p r emis es ~hen i t is no t open for b usiness .
8 . Per son ~c l and Maint e nDnce .
The Ope r ators sh a ll be r esponsib l e for pro vi di ng any a nd all
pe rs on nel f o r ope r ntion of the co nc ess i o n, and for prope r
ma int e nance t hereof , s ubject t o the City 's app r oval as se t forth
a bove .
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9 . Safety o f t he Public .
'l'l1e Cpe r ~to r s s ~~ll orer a te t he concess ion JO a s to keep t he
~b l tr il t•d it ~ use r s s nfe fr o m reasonably fo r eseea bl e harm . Any
~~ all 1njt1r ins nr <ln m~qr t o t he p ublic ~ha ll b e r e p o rted to th e
1t ·· ~1thin o ne hour t hereof , o r if s a me shou ld oc c ur after City
c ur, o r o n wec k t?'lc!S , th e n b:1 8 :30 a .m. the ne xt wo rking day .
1(). orr:ni nn .
'rh ~ rnjni a tt1 r e 0olf co ur~e in its ent irety shall be open and
,..., r. ... ,,t i n nal to the so l P sa ti s !:ac tj o n of the City no l ater than
J,;ly 1 1 l.988, unl ess Clpe r ators .:1 r e delayed by any act or neg l ect
r,f t l c C .ity , fire , <H~vPrsc wec,ther co nditi o n s not rea s onab l y
.,:11 1.c i rr1trd and rtny ra 11 5cs beyo n d Ope r ntors ' conl r ol .
11 . Oh e d i enc e to ~11 Laws a n d Pa yment o f al l Cha r ges .
Onerators s h a l l o be y nn ~ imme d i ately comply with any and a ll
·,n J 1rablr l o c a l, s t a te and f e dera l r equ ireme nt s , o r dinances ,
.... ,,··11 1?.t ion s , r ules , l a ·,rn an d stat ut es . Op erators shal l a lso
,. ~n ly wi th all o r di n a nce s , resoll1tions ~n d rules of the City of
1-·r•nl0wo0c1 •
0 ncrat o r s sha ll p a J a ll taxes , fees a nd char ges impos ed by
,,: hnr s n n th ?~r corces s ion o p e ration .
12 . Perfo nna .ce Bond .
The Op e r ators shal l f u rnis h to the City a performa nce bond
i ~ ~h e a~ou nt o f t en th o usan d dollars ($1 0 ,000) guara n teei ng
fai thful pe r fo rmance a nd payme nt o f all terMs , covenants , and
ccndi tions h e rei n , as wel l as complia nce with a ny and all
a pl icabl e l oca l, sta t e and federa l r equir e ments, r egu l a ti ons ,
t u l es , lc:1 1\·s and s tatut es ns we ll as in th e event o f con s truction
o f 1npr0vcner t R.
1 3 . !ndemnjfica tion a nd I n surance .
n~fore a~1• const rue i n~ or any activity related to
cons truct i on ~hal l c ommence , the a~ount of wh i ch will exceed t e n
t~o us a nc ($1 0 ,000) do llars in w~o l e or in pa rt , or any activity
related t o con s truction , t he Operator s sha l l prov ide a pay me nt
and ~e r ~o rmance b0nd to in su re payme nt of o ll ob l igations
inct1rre~ a s a resul ~ of said co ns truc t ion or activi ty. The
De r fo r nancc bond s h ull be in a form a pproved by th e City .
Th e O e r a t o r s sha ll be fore a ny construct i on begins procure
and main t ain in fu ll force and ef fect a t their so l e ex p e nse a
plth lic liability insur a nc e policy naming t he City as an
ad Citional n a me d insured . This po l i cy shal l r ema in in full force
a nd ef fect c o n t inuo usly during thi s a n d any s uccessive te rm o f
this a~r eene nt, and it sh a ll include comprehe n sive l iabi li ty
c ove r a <]e as ~allow s : $500,000 for injury or de a th o f a ny o ne or
nore person s ; $1 million f o r i njury or death occurring as a
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r0s,1lt of tn\' one nc cidcn t ; $50 ,000 f or pro p e rt y da mage ; $~00 ,000
fo r n rndl1ct li abi l il)1 •
A certifi c ~ e evide nci ng ;iid insu r a nce po li cy s hal l be ke pt
nn fi l e at nil ti mes wit h the Cit y and it sh~l l c o ntain a
n r o visinn t ha t it may not be 1 t,?r e d , amended o r ca nc e l ed with out
fi r st qiving wri tt e n notice t o the City th i rty (30) o r more day s
1i 1·ior t ~c r cto . S11ch pol i cy o r 1>n l icies sh~ll conta in no right of
~,1br og ati nn again~t th e City .
Th e Ope rator s her ehy i ndemn ify :h e Cit y from any and a ll
cla ins agai st it ~r ising from any a ctiviti es pu r s u a nt co this
acr r eem~n t . ·rt Ci ty owns an d ope r ates a munic i pa l go l f cou r se
,ea r by ~nd e~c .. par ty i s ~csp o n sih l c !o r its own opera t ions .
'rhc 0 , cr n t o r s ag r ee t o carry adequat e l ost bu s ine ss , gener a l
husiness, fi r e , heft , pe r sonal injl1r y a nd pro perty dam age
insura nce cnverJng a ll aspec t s o f th e concession operation in a n
amount and ~i t h a comp any to be app r o ved by th e Cit y Dire ctor of
F ina nce .
All p o l icy or p o licies shull c o nta in no ri ght o f s ubrog ation
anain s ·· the Cit y .
14 . I nso ecti on of P r em i ses .
Th e Ci ty r!1a ll have t he ri ght to examine and inspect the
nrem ise s , i.·•;luding , on r e asonable notice , private off ice areas.
1 5 . Ne As s ig~men t or Subletti ng .
The Ope r a t o r s , and e c h of them, may not se ll , assign ,
mo r t gage , s ublet o r o the rwise co nvey , r e l ea se or pass on any part
of their :n te r es t in th e concession without th e pr ior pe rmission
0 f th e Cit'l , which ha s a rig ht o f f i rst r ef u sa l as set forth
be l ow . Th e Operators, a nd each 0 f th em , may no t suffe r or cause
a lien t o be fil e d agains t th e co nce ss ion or any part t he reof.
Th e Op Qr a t o r s s h al l b e pe rs ona ll y r es ponsibl e and liable t o
the Ci ty f o r a ny a nd all fees and payments to the City, as well
as any n nd al l o ther t e r ms and co nditi o n s of thi s agreeme nt .
Aft e r July l , 1 989 th e Ope r ato r s may t ran sfe r thi s contract
o a co r po r a ti on ~hose ma jor i t y stock is owned by them. All
shn r eho l de rs i n said corpor nt i o n s hall he subj ec t to app roval by
t he Citv o Cnglewood .
If such trans f e r t o the c o r po r at i o n occur s th e Ope r ators
s hall continue to be p ersona ll y lia ble t o th e City fo r all
pP rf 0 r ma nce h e r ea fter .
It i s understood an<l nckno~ledqed tha t the Operators are
~-,b 1 ,1 ininq fin~1 ncin~, fr om Nation ,11 Bank o f .\rapahoe/Purker in l hc
fn1·m of an fil1A guaranteed 10011 in a n «mou n ,: no t t o exceed
$1 ~0 ,000 . lt i~ agree~ t~at t~is ag r eement , tog 1 t her wi th
vq uipmc>n t .:1nr! improvemenl !=i beinq c ,n~t r uct P.d by the Operators,
~,·r assign~~l0 t o Nati0nal n ~~k nt Ar~p ahoc/Pa rk e r as collate r al
•'"'11 t h,1t l o ,1n .
G11ch J~~iqnnrnt o th r nank 'SDA i s conditioned up on the City
~Jv in~ a r i0ht of fi rst r efusa l to appr o ve suc c essor o pe r ato r s
~ppolntPd by the Dank/SBA . 1f the City refuses a proposed
'=1,,..c essor ('lpPrator other than for cause , Ci ty wi l l cash o ut the
10~1n .
l fi . Hater ial Br e u.ch.
The pa r ties aq r ee tha~ t he happening of any of t he foll owi ng
0 ven t s shal l const i tute a materia l bre ach of this Jg reement and
City may, a t its e lecti on , te r minate the agreeme nt llpon th e
~eppen i n g of any of th e f o ll ow in g even t :
a . Ope rat o rs shall fail t o ~ni nt h i n a nd o p e r ate the
oncess ion according t o ~he terns nf t h i s agreeme nt .
b . Ope rat o r s sha l l fa il t o pay th e Cit y the fees p r o vide d
in paragraphs 4 o r 5 , whi che v e r is app li cab l e , wit hi n th i rty (30)
rlays o f da t P when they are due.
c . Operator s shall de ny t he City the rig h t to inspec t t he
concess i ~~ as rensonab l e ti mes upon notice .
ct . Any ass ignme nt or transfe r o f any i nt e r e s t of Operators
~i thou th e Cit y 's a pp roval .
e . Ope ra to rs sha ll ,e bank r u pt as de f i ned by the laws o f
the United States o f Am er~~a , b ecome i nsolvent , or a r e c e iver ,
· .. .-h0thcr n C'rmanen · o r tempo 1 ry , for all o r s ub stant iall y a ll of
Onera tors 1 property sha ll bt appointed b y any Cour t , or Operat o rs
s ha ll muke a gene ral ass i gn men t for t h~ bene fit o f the ir
cred i tor s , or a vo l untary o r invo l ~ntary pet iti on unde r an y
b~nkru~tcy law s hn ll be fil e d with respect to Opera t o rs .
f . OpP rat ors shal l f a il t o keep i n effect i nsu r ance as
provided hc>rein -
17. Right of Fi r st Refusal .
In the event that th e City g ives its pe r mi ss i o n to th e
Ope r ators to sell th e co ncession , the City may e xe rc i se a fi r s t
right of refusa l as follows : Operato r s n u st p rese nt a bona fide
offer of sale -pu r chase to the City . The City may then match or
exceed th e sale -purcl1ase price and purc hase the concession .
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18 . Effect o f ·r n1ination iy c.u_y . Upon term ination o(
~~is a~r crmo ~t ~,, th 0 rity upon~ .natcrial breact , the Ci t y sha ll
l1a ve th~ option for thirt\' (3 0) days fe llowing such t e rmin ation
t o purchase Ope r a t o rs ' le a seh o ld improvements, fixtu r eJ , s i gns ,
•-:>q ui r n en t and o t her nr o pcrty for a s uM e qual t o h e f a i ~-mark e t
•1 .:-iluP less ril l man i c::: ciu0 t 0 the City unde r this Aq r eer,1ent . Fair
'tl ,1rkct ·,a .l Ill"' £hill l ~,c cietcrP1i ne d by two app rai sers , o n e appraiser
S('l r•rtPrl hy t~0 rity anrl 0 nc ap praiser se lected by the Operators .
1.1 thes 0 twn arrrc1iser~ f ,,i.l t o aqrc·•e on fair mnrket va l ue , tt.en
th r two c1pprais e r s ~ha ll sc l ~ct n thirt appraiser wh o s hall
deterninc f~ir narke: value nf the p ro perty .
If the City r cf,Jscs t n ;:,u rc h ase the improv•iment s then the
o rerator s shall hc1v e t~irty ( 30) nay s to r emove the fixtures a nd
rquip~ent . The City may ~·ithho l d sufficient fixtures and
nrope rt y in o~der t o pay all monie s due to the _ity under thi s
,oree~Ant . A~y sum to be paid shall be offset by a:y p ayment t o
third parties .
19 . Tr ade Name .
The trn-c na~e of RI VERS I DE MINlATURE GO LF CLUD sha ll r e main
~t aJl time ~ th e proper t y of Opera tor s unl ess purchased by City .
20 . Te r mina tion by Operator.
This Ag r eeMe n t may h e termina t ed by Operators upon s ix ty
(CO) d ays ' wri tten notice t o the Ci ty . Op erntor s s hall , at their
o ti o n , h a ve the ri ght t o r emo ve al l bui ldings , f urniture ,
fixtures , si gns , equipme nt and o ther pro perty an d leasehold
improvements with i n t hi rt y (30) days of notic e nf te rmin a ti on
de liver ed to th e City other than those im?roveme nt s supplied by
Ci y, which a re WRte r and sewer t a p and fir e hyd rant .
21 . De live ry Upon Te rmination .
Subject to th e te r m• o~ this ag r eeme nt , Ope rator s shall
delive r the c onceseion and premises to the City at term in ation of
thi s Aqreement in as good condition and state of repair as when
rccnived , except f o r ord i nary wea r and tea r or loss or damage
c~\1s~d by act o f God .
22. Forc e Majuerc .
PerforMancc of this agreement ~ha ll be excused i f r ende r ed
inpossib l e by act of God .
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23 . Att o rney Fee s .
An y bre ach o r failur e t o pay any f ee requir e d he r e by sha ll
r ntit l e th e s ucce ssf ul party , ~he was requir e d t o c o llect a fee
Slim o r char g e o r enforce t h i s a g r ~cme nt, r e asona bl e a tt o rne ys
fc ~s a nd c os t s o f c o ll~cti o n .
!i O AGREr.D .
CITY OF S NGLEt·iOQ D
ill'--'-:· :::::.-z=L-J:::L.!·~ ~~~~~~'LA'l"l'ES';':
f\ayo r ~
OP ERATORS
Scott Sanders
Da te :
Scott L . Simpson
Da te :
City Cl erk
Dat e :
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