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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/19/2001 - SECOND READING OF ORDINANCE NO. 104, 2001, AUTHORI AGENDA ITEM SUMMARY ITEM NUMBER: 14 DATE: June 19, 2001 FORT COLLINS CITY COUNCIL James B. ONeill/ lip FROM: Jerry P. Brown SUBJECT: Second 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 Second Reading. EXECUTIVE SUMMARY: Ordinance No. 104, 2001, which was unanimously adopted on First Reading on June 5, 2001, extends the Restaurant/Snack Bar Concession Agreement at Southridge Golf Course for up to five additional years. AGENDA ITEM SUMMARY ITEM NUMBER: 16 DATE: FORT COLLINS CITY COUNCIL June 5, 2001 STAFF: James B. ONeill/ 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 Go Course for Up to Five Additional Years. RECOMMENDATION: Staff and the Golf Board recommend adoption of the OrdinannnALt Reading. FINANCIAL IMPACT: Under the terms of the existing four-year Agreem City_�Golf Fund receives a concession fee from the SouthRidge restaurant/snack bar concession ae 1,700 in both cash and in-kind value in 2001, as per the original propo the Golf Bo the concessionaire have agreed to increase these concession fee e s ually .2006 starting with a payment to the City Golf Fund of$22,2 in 2002. _ EXECUTIVE SUMM The existing Agreement with th outhRidge Golf Course restaurant/snack bar concessionaire,the Sandtrap, Inc., dba Mackenzie's Pub-&;GrWait SouthRidge, expires on December 31, 2001. This four-year agreement was entered into on December 3, 1997, after an addendum to the Agreement r., wasa.entered into on November 157 2000. As per Section 5.5 of the Agreement(and as noted in the R1713 ocument). "...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,'ineeting,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: June 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 princip er of Sandtrap, Inc.,) and his staff have done an excellent job as the restaurant/snack E " • ncessionaire at SouthRidge Golf Course, and that Mr. Bruntz is deserving of an extension to th greement. 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 we ked at Soutf 11tdge for seven years. Mr.Dahl has served as kitchen manager for the past six y '" will pro *d&rnuch needed financial support as well as restaurant management expertise. believe Mr. Dahl will do an excellent job and have no objection to his becoming a p oard held a well-publicized public input/comment session at its A 18, 2100 meeting, an was no opposition, and only positive and supportive comm eived on behalf of S C. to remain as the SouthRidge concessionaire. ,v Staff has negotiated a mutually acceptable e ` " _ '•with Sandtrap, Inc. under the current terms of the original agreement and first addendum, mordrlyed by a new addendum to the agreement, as follows: The term of the extens' uary 1,2 ugh December 31,2002, with annual potential newal optio ears 20s �2005,and 2006;with no further extensio contemplated at thi's e. The Agreement r uires Sandtrap, Inc., to pay to the City in 2001 a total cash and 5MVIIin-kind value fee $21,700. In 1998 when the Agreement began, this fee was $20,200,�,�d it has increased by $500 aually as per the original proposal. SQ4iu p oposed ta+continue to increase the concession fee by $500 annually d"ugh 2006, starting with A` ayment 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.