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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2011 - FIRST READING OF ORDINANCE NO. 148, 2011, AUTHORIZDATE: November 1, 2011 STAFF: Jim O’Neill JR Schnelzer AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT First Reading of Ordinance No. 148, 2011, 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. 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, 2011. The existing five-year Agreement was entered into on December 11, 2006. As stated in the Agreement, “This Agreement may be extended beyond the original five (5) year term if performance is satisfactory and subject to City Council approval and negotiation of a mutually acceptable extension Agreement.” The performance of Mr. Dahl has been very satisfactory during the term, and staff has negotiated a mutually acceptable extension to the Agreement. BACKGROUND / DISCUSSION The Sandtrap, Inc., dba Mackenzie's Pub & Grill at SouthRidge, expires on December 31, 2011. The existing five-year Agreement was entered into on December 11, 2006. As stated in the Agreement, “This Agreement may be extended beyond the original five (5) year term if performance is satisfactory and subject to City Council approval and negotiation of a mutually acceptable extension Agreement.” The performance of Mr. Dahl has been very satisfactory during the term, and staff has negotiated a mutually acceptable extension to the Agreement. FINANCIAL / ECONOMIC IMPACTS For the privilege of conducting the concession operations hereunder, and the exclusive use of the Concession Space, the Concessionaire shall pay to the City a concession fee based on 2,000 square feet of operable space and may be tendered in cash or in-kind services as determined by the City. 2012-2013 = $10.50/sq.ft. 2014-2015 = $11.00/sq.ft. 2016 = $11.50/sq.ft. The City shall pay all charges for water, storm water, sewer, trash collection, recycling, basic clubhouse security system, basic bunker house security system, and electric services to the Concession Space. The Concessionaire will be responsible for 50% of the cost of gas from April thru September. The Concessionaire will be responsible for 15% of the clubhouse electric bill for April-September, the Cart Barn being excluded from these charges. The City will provide the fuel for the Concessionaires beverage cart. The City shall maintain and repair the Clubhouse building, Concession Space and City equipment and fixtures (defined in Article 8). The Concessionaire will be responsible for 50% of the cost for repair/maintenance/ replacement of City owned equipment (defined in Article 8), unless negligence is determined and then the concessionaire shall have total financial responsibility. Concessionaire shall submit all requests for repairs or maintenance to the City Representative. Notwithstanding anything to the contrary contained herein, the City shall not in any way be liable to the Concessionaire for failure to make repairs as herein specifically required of it unless the Concessionaire has previously notified the City in writing of a need for such repairs, and the City has failed to commence and complete said repairs within a reasonable period of time following receipt of the Concessionaire's written notification. November 1, 2011 -2- ITEM 17 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its September 21, 2011 meeting, the Golf Board voted unanimously to renew the contract with Rob Dahl as the SouthRidge Restaurant/Snack Bar Concessionaire. PUBLIC OUTREACH A public meeting was held at City Park Nine Golf Course on October 19, 2011. ATTACHMENTS 1. Golf Board minutes, September 21 and October 19, 2011 ORDINANCE NO. 148, 2011 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 City Council approve by ordinance any contract for services having a potential term that is longer than five years; 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 2006 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 four 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 September 21, 2011 regular meeting; and, after receiving only positive public input and comments, the Golf Board 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 for the year 2012 of the Agreement between the City and the Sandtrap, Inc., dba Mackenzie’s Pub & Grill at SouthRidge, for restaurant/snack bar concession services at SouthRidge Golf Course, dated December 11, 2006, with annual renewal options for the years 2013 through 2016, or a potential total term of ten years. Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2011, and to be presented for final passage on the 15th day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk