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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2001 - FIRST READING OF ORDINANCE NO. 104, 2001, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 16 DATE: June 5, 2001 FORT COLLINS CITY COUNCIL James B. O'Ne,0I/ STAFF: Jerry P. Brown SUBJECT: First Reading of Ordinance No. 104, 2001, Authorizing the Purchasing Agent to Enter into an Extension of the Restaurant/Snack Bar Concession Agreement at Southridge Golf Course for Up to Five Additional Years. RECOMMENDATION: Staff and the Golf Board recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT: Under the terms of the existing four-year Agreement,the City Golf Fund receives a concession fee from the SouthRidge restaurant/snack bar concessionaire of$21,700 in both cash and in-kind value in 2001, as per the original proposal. Staff,the Golf Board, and the concessionaire have agreed to increase these concession fee payments by$500 annually through 2006 starting with a payment to the City Golf Fund of$22,200 in 2002. EXECUTIVE SUMMARY: The existing Agreement with the SouthRidge Golf Course restaurant/snack bar concessionaire,the Sandtrap, Inc., dba Mackenzie's Pub & Grill at SouthRidge, expires on December 31, 2001. This four-year agreement was entered into on December 3, 1997, after an addendum to the Agreement was entered into on November 15, 2000. As per Section 5.5 of the Agreement(and as noted in the RFP document), "...This Agreement may be extended beyond the original four (4) year term if performance is satisfactory and subject to City Council approval through public process and negotiation of an extension agreement acceptable to Concessionaire and the City". The performance of the concessionaire has been very satisfactory and staff has negotiated a mutually acceptable extension agreement. The Golf Board took public input/comment on such a possible extension at its April 18,2001,meeting,receiving no public opposition and only positive comments. The Board then unanimously agreed to encourage City Council to extend the agreement for up to five additional one-year renewal periods through December 31, 2006. The City Code requires contracts over five years in length to be approved by Council. DATE: Jane 5, 2001 2 ITEM NUMBER: 16 BACKGROUND: In 1997,a contract was awarded to the current SouthRidge restaurant/snack bar concessionaire,the Sandtrap,Inc.,dba Mackenzie's Pub&Grill at SouthRidge. That provided for four one-year terms, the last of which expires on December 31, 2001. The agreement provided that the contract could be extended through 2006, if approved by City Council. .Staff and the Golf Board have determined that Dan Bruntz(the current principal owner of Sandtrap, Inc.,) and his staff have done an excellent job as the restaurant/snack bar concessionaire at SouthRidge Golf Course, and that Mr. Bruntz is deserving of an extension to the Agreement. Mr. Bruntz has done everything necessary to make the Agreement successful during a very difficult time. He has proposed to add a new partner, Rob Dahl,who has worked at SouthRidge for seven years. Mr.Dahl has served as kitchen manager for the past six years,and will provide much needed financial support as well as resjaurant management expertise. The Golf Board and staff believe Mr. Dahl will do an excellent job and have no objection to his becoming a partner. The Golf Board held a well-publicized public input/comment session at its April 18, 2001, meeting, and there was no opposition, and only positive and supportive comments were received an behalf of Sandtrap, Inc. to remain as the SouthRidge concessionaire. Staff has negotiated a mutually acceptable extension with Sandtrap,Inc. under the current terms of the original agreement and first addendum, modified by a new addendum to the agreement, as follows: The term of the extension will be from January 1,2002 through December 31,2002, with annual potential renewal options for the years 2003,2004,2005,and 2006;with no further extension contemplated at this time. The Agreement requires Sandtrap, Inc., to pay to the City in 2001 a total cash and in-kind value fee of$21,700. In 1998 when the Agreement began, this fee was $20,200 and it has been increased by $500 armually as per the original proposal. Staff has proposed to continue to increase the concession fee by $500 annually through 2006, starting with a payment to the City Golf Fund of$22,200 in 2002. Summary The City Code requires contracts over five years in length to be approved by Council. Both the Golf Division staff and the Golf Board unanimously believe that Sandtrap,Inc.,dba Mackenzie's Pub& Grill at SouthRidge,has performed very well as the contractual restaurant/snack bar concessionaire at SouthRidge Golf Course since 1998, and fully recommend that the Council approve this extension. ORDINANCE NO. 104, 2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN EXTENSION OF THE RESTAURANT/SNACK BAR CONCESSION AGREEMENT AT SOUTHRIDGE GOLF COURSE FOR UP TO FIVE ADDITIONAL YEARS WHEREAS, Section 8-186(a)of the City Code requires that any contract for services with a potential total term over five years in length be authorized by Council by ordinance; and WHEREAS,the Purchasing Agent has determined that the Sandtrap, Inc., dba Mackenzie's Pub&Grill at SouthRidge,the current contractor providing restaurant/snack bar concession services at SouthRidge Golf Course,has performed those services well and to the satisfaction of the City and the general public over the course of the existing Restaurant/Snack Bar Concession Agreement(the "Agreement"); and WHEREAS,the Purchasing Agent has further determined that in order to continue with the delivery of high quality food and beverage concession services to the public at SouthRidge Golf Course,the extension of the Agreement for up to an additional five one-year terms, without a new competitive process for such services, is advisable and would maintain continuity and provide concessionaire stability in the delivery of those services; and WHEREAS,the original 1997 competitive process for the restaurant/snack bar concession services at SouthRidge Golf Course and the Agreement contemplated possible extension of the Agreement beyond the original one year plus three one-year renewals,based on the expectation that a longer term arrangement for those services would enable proposers to offer more desirable services to the City at a more advantageous quality and rate than without such a longer term potential; and WHEREAS, the Golf Board reviewed the proposed extension described herein at its April 18, 2001, regular meeting, and after receiving only positive public input/comments, unanimously agreed to encourage the City Council to authorize such an extension. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Council hereby authorizes,pursuant to City Code Section 8-186(a),the extension of the Agreement between the City and the Sandtrap, Inc., dba Mackenzies Pub & Grill at SouthRidge, for restaurant/snack bar concession services at SouthRidge Golf Course, dated December 3, 1997, and the Addendum to the Agreement dated November 15, 2000, for the year 2002,with annual renewal options for the years 2003 through 2006,or a potential total term of nine (9) years. Introduced, considered favorably on first reading, and ordered published this 5th day of June, A.D. 2001, and to be presented for final passage on the 19th day of June, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 19th day of June, A.D. 2001. Mayor ATTEST: City Clerk City Of Fort Collins Cultural,Library, and Recreational Services Golf Board Minutes Minutes: Regular Meeting of April 18, 2001 City Council Liaison to the Board: Councilman Bill Bertschy Staff Support to the Board: Jerry P. Brown, Manager of Golf, at 221.6350, and Jackie Rael, Executive Administrative Assistant Call Meeting to Order: Chairperson Mike Sanders called the meeting to order at 7:05 p.m. Agenda Review: No changes to the printed agenda Items of Note: Jerry P. Brown said that Board Member Frank Blanco called him to let him know that he is in the hospital. Frank hopes he will be back next month. The Golf Administrative office will be relocated to 215 North Mason Street in July. There are two other Boards that currently meet on the third Wednesday and their staff will be located in the new building also. Since all three Boards planned to meet in the "Community Room", Jerry asked if there is another night the Golf Board could meet? Mike Sanders asked if there is another meeting location we could meet? Jerry said that is a possibility. Jerry asked Board members to look at their schedule and determine if they could meet on the second Wednesday of the month. The Board will discuss this at their May meeting. Mike Sanders announced that Monday, May 14, is the Bart Tompkins Memorial Ram Classic Tournament at Fort Collins Country Club if any of the Board members are interested. Citizen Participation: No citizen participation Approval of Minutes: On a motion by Brian Cobb, seconded by Byrd Curtis, the Board voted unanimously (8-0) to accept the Minutes of the Regular Meeting of March 21, 2001. --�j Public Input on Potentially Extending the Term of the Agreement with the SouthRidge Restaurant/Snack Bar Concessionaire Jerry P. Brown said he has received favorable comments from citizens for Dan Bruntz's continuation as the Restaurant/Snack Bar Concessionaire at SouthRidge. Jerry said in all the years he has worked with Dan, he has had an excellent working relationship. The Liquor Authority, along with the Health Department, have never had any negative associations with Dan at SouthRidge. Brian Cobb asked how many renewable years could this contract be extended? Jerry said up to five years on a year-to-year basis. Jerry introduced Dan's proposed new partner Rob Dahl, who has worked with Dan for seven years. Claire Nelms asked if Dan will keep the restaurant open year around? Dan said that they close the restaurant at the end of October and open in the winter only for holiday parties, which run through January. After further discussions, the Golf Board unanimously agreed that staff should go forth with Dan Bruntz's Agreement at —� SouthRidge. Ads appeared in the Coloradoan on April 7, 11 & 14 and notices were mailed to all identified SouthRidge user groups and neighborhood associations. PUBLIC INPUT REQUESTED iaWEDNESDAYY APRIL 18, 7:00 P.M. SouthRidge Golf Course City of rwt Wfins Restaurant/Snack Bar Concessionaire Performance Review & Potential Agreement Extension The City of Fort Collins Golf Advisory Board will hold a public input meeting regarding the performance of the SouthRidge Golf Course Restaurant/Snack Bar Concessionaire on Wednesday, April 18, 2001 at 7:00 p.m. at 281 N. College Avenue in conference room A. The existing agreement at SouthRidge with contractual Restaurant/ Snack Bar Concessionaire Dan Bruntz and his new partner, Rob Dahl (legally known as The Sandtrap, Inc., dba Mackenzies Pub & Grill at SouthRidge), expires on December 31 , 2001 . This agreement was entered into on December 3, 1997 after being awarded through Request for Proposal #P-649. An addendum was entered into on Nov. 15, 2000. The agreement may be extended annually beyond the original four-year term until December 31 , 2006 if performance is satisfactory, subject to public input and negotiations. If you cannot attend the meeting, you may send written comments no later than 5 p.m. on April 18 to: E-mail:jpbrown@fcgov.com Fax: "SouthRidge Restaurant/Snack Bar Concessionaire" at 221-6586 Mail: Golf Division, 281 N. College Avenue, Fort Collins, CO 80524 Golf Board Minutes March 21.2001 a8�— _ Consider Extension of the Term of the Agreement with the SouthRidge Restaurant/Snack Bar Concessionaire Jerry said that he has determined that Dan Bruntz and his staff have done an excellent job in their performance as our Restaurant/Snack Bar Concessionaire at SouthRidge Golf Course, and is deserving of an extension to the Agreement. Dan did everything necessary to make the Agreement successful and he did so in the best interests of the City. Jerry has met with Dan Bruntz and his proposed new partner, Rob Dahl, and we have mutually agreed upon an extension of the Agreement for up to five additional one-year renewal periods through December 31, 2006, as per the terms of the Original Agreement. Jerry asked the Board if they are in agreement with going forth to extend the Agreement? On a motion by Frank Blanco, seconded by Claire Nelms, the Board voted unanimously for staff to move forward to extending Dan Bruntz's concessionaire Agreement for the services at SouthRidge. Motion carried 7-0. Jerry explained the process from this point forward. We will have public input at the April 18 meeting. If the Board approves, then the Purchasing Director can either accept or reject the Board and staffs recommendation. If he accepts we then need approval from the City Manager, and then submit an Ordinance to Council for their consideration. Tom White asked that at the end of five years, do we have to go out to bid again? Jerry said that is correct. Discussion on 2002-2003 City Budget Preparation Board Input Jerry referred to his memo in the Board's packet regarding Board input on the 2002-2003 budget. This input has been requested by the City Manager and is due April 30. Karen Joslin-Aured said the only question she has is raising fees as necessary (refer to Memo dated April 21, 1999 from Mindy Markley to John Fischbach). Jerry said it is based on the cost of doing business, which is increases roughly 3.5 percent per year. Mike Sanders will write the letter and bring it back to the Board at next month's meeting. The Board concurred with that. Henry Fry said that when we did the Surcharge a few years ago, we generated $180,000 a year and that has supported the capital improvements. Update Report on the Collindale Clubhouse Project The City has awarded the architectural contract to the Vaught-Frye Architectural Firm in Fort Collins. The contract is being signed for $91,000. They want to see where this project fits into City Plan so they are meeting with the Planning Department. Our Project Manager is Steve White from Facilities. The scope of the project is the Clubhouse only. The main issue we probably will have to confront is a sidewalk along Horsetooth. We could meet our proposed timetable to start construction in the fall and an opening by Spring of 2002, if we accept all the planning process. Manny Jimenez said that if we put in a sidewalk, we are encouraging people to use the sidewalk and that would be hazardous. We would then have to fully net that side of the golf course. Byrd Curtis asked if none of this happens, do we have contingency plans for the funds if we don't build it? Jerry said yes, and explained the process from this point. He said that we will have spent $91,000 on the architect. We then bring the conceptual drawings to the Board for approval sometime in June or July. We will hold a public meeting at Collindale for input. In August, we will get a price tag on the project from the architect. At that time we ask