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HomeMy WebLinkAbout03-01-2022 Food and Beverage Agreement at the Laguna Lake Golf Course with Zen Dog, LLCFOOD AND BEVERAGE AGREEMENT AT THE LAGUNA LAKE GOLF COURSE WITH ZEN DOG, LLC This Agreement, made and entered into on , by and between the CITY OF SAN LUIS OBISPO, hereinafter referred to as “CITY” and Zen Dog, LLC hereinafter referred to as “CONTRACTOR.” WHEREAS, CITY is the owner and operator of Laguna Lake Golf Course, hereinafter “FACILITY;” and WHEREAS, the City of San Luis Obispo’s Parks and Recreation Department’s mission is to inspire happiness in community members and its Strategic Plan calls for strategic partnerships with organizations that support recreational activities for all populations. WHEREAS, a food service business enhances the user experience at the Laguna Lake Golf Course. NOW, THEREFORE, in consideration of the mutual promises, agreements, covenants and conditions herein set forth, CITY and CONTRACTOR mutually agree, and covenant as follows: 1.TERM. The term of this Agreement shall be from March 15, 2022, through March 14, 2024. An additional two-year extension of this Agreement may be made upon mutual agreement by the CITY and CONTRACTOR. 2.INCORPORATION BY REFERENCE. City RFP 2109-001 and Contractor's proposal dated October 28, 2021 is hereby incorporated in and made a part of this Agreement and attached as Exhibit A. To the extent that there are any conflicts between the Contractor’s fees and scope of work and the City’s terms and conditions, the City’s terms and conditions shall prevail, unl ess specifically agreed otherwise in writing signed by both parties. 3.CITY'S OBLIGATIONS. The CITY agrees to provide the existing kitchen space and food truck space when kitchen location is not available as is at the Laguna Lake Golf Course for the continuation of the proposed food and beverage service by CONTRACTOR. DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01 March 1, 2022 DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 a. The CITY is under no obligation to maintain or provide equipment used in providing this space as CONTRACTOR has and will continue to do so itself. b. CITY will notify CONTRACTOR of any course closures planned or unplanned within a reasonable time period. All known monthly closures, either holiday or maintenance related will be communicated to CONTRACTOR at the beginning of each month. CONTRACTOR acknowledges that the course may close due to inclement weather in the rainy months. 4. COMPENSATION. The CONTRACTOR shall pay a flat monthly fee, due on the first of each month to the CITY, in compliance with the pricing schedule attached hereto as Exhibit B, according to the terms and specifications of the referenced Request for Proposals. It is also understood that the applicable tax on the flat monthly fee payments shall be added to the monthly payment to the City, which the City will then pay to the State. The City is to receive the flat monthly fee amount as net, free and clear of all costs and charges arising from, or relating to, the premises. The monthly tax, paid directly to the City, shall be computed as follows: State prevailing tax rate multiplied by the agreed- upon flat monthly fee. 5. CONTRACTOR'S OBLIGATIONS. CONTRACTOR will provide food and beverage service at Laguna Lake Golf Course seven days a week, excluding specified holidays and closed dates. Hours of operation will be during standard facility operating hours adjusting hours for special events, weather, or maintenance closures. CONTRACTOR may close services in the event of FACILITY course closure. The concession shall be opened whenever events are scheduled. Expanded hours are permissible with the prior approval of the Director. Nothing herein contained shall be construed to authorize hours contrary to the laws governing such operations. CONTRACTOR shall: a. Obtain and maintain all licenses and permits required in its name and at its own expense prior to starting operations. b. Operate kitchen area at existing County Health Department standards and remain in compliance with State and CITY building codes. c. Maintain a liquor license to sell beer and wine on the premises, contingent upon continual approval by the State Alcohol Beverage Control and shall maintain and provide to the DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 CITY liquor liability insurance for the term the license is in effect as described in CITY RFP. d. Maintain a CITY business license to operate a business within the CITY limits for the term of the agreement. e. Be responsible for all employees operating the kitchen and handling on-site sales. And be responsible for maintaining a clean and safe environment in the kitchen, dining areas, and serving area. f. Be responsible for all food and beverage inventory on the premises. CONTRACTOR will be provided space to store supplies and is responsible for securing all inventory items during non-operating hours. CONTRACTOR shall keep the concession facility reasonably stocked and reasonably staffed to serve the patrons therefrom. g. Provide CITY updates to any hours of operation changes or closures, pricing or menu changes at least three (3) weeks prior to public release. 6. CONTRACTOR OBLIGATIONS: FOOD TRUCK OPERATIONS. CONTRACTOR may operate a food truck on-site during any period where FACILITY is not accessible, as permissible by the CITY Point of Contact. CONTRACTOR shall: a. Provide quality food and beverages, excluding alcohol beverages, for purchase by employees and the general public. b. Provide all self-contained equipment, supplies, and labor that is necessary to perform the service. c. Maintain the safety, care, and cleanliness of operations. d. Haul away and dispose of all waste, water, grease, garbage, etc. generated through Contractor’s food preparation and sales activities e. Obtain and maintain all licenses and permits required in its name and at its own expense prior to starting operations. f. Maintain a CITY business license to operate a business within the CITY limits for the term of the agreement. g. Be responsible for all employees operating the kitchen and handling on-site sales. And be responsible for maintaining a clean and safe environment in the kitchen and serving area. h. Be on premises to provide food service during the dates and times at the locations noted DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 above. 7. FACILITY ROLES AND RESPONSIBILTIES. The CITY of San Luis Obispo Parks and Recreation Director may authorize periodic modifications to operations at the Golf Course within the scope of his/her financial and/or operational authority, and to the Roles and Responsibilities as he/she may deem necessary or appropriate to the community partnership between the CITY and CONTRACTOR. Any written amendment or modifications to the Roles and Responsibilities shall be upon mutual consent of both parties. 8. UTILITIES. The CITY shall provide for water, sewer, electricity, trash, rubbish and garbage removal services within FACILTY operations. CONTRACTOR will have access to garbage services for Food Truck operations while on the premises. 9. OWNERSHIP OF IMPROVEMENTS. All improvements shall become the sole property of the CITY of San Luis Obispo and shall remain the sole property of the CITY of San Luis Obispo upon termination or non-renewal of the Agreement. a. An improvement is defined as a fixture permanently affixed to the FACILITY, whether installed by CONTRACTOR or CITY. 10. COMMUNICATIONS a. CITY Point of Contact. The CITY Recreation Manager is the CITY representative that CONTRACTOR shall contact for all issues related to the use of the FACILITY and the operation of this agreement. All contacts must be in writing, including e-mail. If the CITY Recreation Manager cannot be reached, the Recreation Coordinator - Golf Operations may be contacted. b. Written Notice. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: CITY: Parks & Recreation Department Attn: Devin Hyfield, Recreation Manager 1341 Nipomo Street San Luis Obispo, CA 93401 CONTRACTOR: Zen Dog Attn: Nick Regalia 319 Stimson Ave Pismo Beach, CA 93449 DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 SPECIAL TERMS AND CONDITIONS 1. Subcontracting. Unless otherwise specified in this solicitation, the Contractor shall not subcontract any portion of the work without the prior written consent of the City. The ability to subcontract may be further limited by the Special Conditions. Subcontracting without the p rior consent of the City shall constitute a material breach of the agreement and may result in termination of the contract for default. 2. Responsibility as Employer. The employee(s) of the Contractor shall be considered to be at all times employee(s) of Contractor solely, and not an employee(s) or agent(s) of the City or any of its departments for any purpose. The Contractor shall provide physically competent employee(s) capable of performing the work as required who can interact with the public, visitors, patrons, and City employees in a professional, positive and pleasant manner. The City may require the Contractor to remove from the Facility any employee of Contractor who the City deems does not meet these standards. All employees of the Contractor shall wear proper identification. 3. Equal Opportunity and Anti-Discrimination. The City of San Luis Obispo complies with all laws prohibiting discrimination on the basis of age, race, gender, religion, creed, political affiliation, sexual orientation, physical or mental disability, color or national origin, and therefore is committed to assuring equal opportunity in the award of contracts and encourages small, local, minority, and female-owned businesses to participate. During the performance of this contract, the Contractor agrees it will not discriminate or permit discrimination in its hiring practices or in its performance of the contract. The Contractor shall strictly adhere to the equal employment opportunity requirements and any applicable requirements established by the State of California, San Luis Obispo County and the federal government. The Contractor further acknowledges and agrees to provide the City with all information and documentation that may be requested by the City from time to time regarding the solicitation, selection, treatment, and payment of subcontractors, suppliers, and vendors in connection with this contract. 4. Minimum Wage Requirements. The Contractor shall comply with all minimum wage requirements, such as Living Wage requirements, minimum wages based on Federal Law, and the provisions of any other employment laws, as may be applicable to this contract. 5. Purchase of other items. The City reserves the right to purchase other related goods or services, not listed in the solicitation, during the contract term. When such requirements are identified, the City may request a price quote from the Contractor on the contract. The City, at its sole discretion, will determine if the prices offered are reasonable, and may choose to purchase the goods or services from the Contractor, another contract vendor, or a non-contract vendor. 6. Price Adjustments based on Price Index. It is the Contractor’s responsibility to request any pricing adjustment under this provision. For any adjustment to commence on the first day of any new period, the Contractor’s request for adjustment should be submitted at least thirty (30) days prior to expiration of the current 12-month period of the contract. The adjustment requested should not be in excess of the relevant pricing index change. If no adjustment request is received from the Contractor at least thirty (30) days prior to expiration of the current 12-month period of the contract, the City will assume that the Contractor has agreed that the contract term will continue without pricing adjustment. Any adjustment request received after the commencement DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 of a new 12- month period will not be considered. The City reserves the right to negotiate lower pricing for the additional periods based on market research information or other factors that influence price. The City reserves the right to apply any reduction in pricing for the additional periods based on the downward movement of the applicable index. The City reserves the right to reject any price adjustments submitted by the Contractor and/or to not exercise any otherwise available option period based on such price adjustments. 7. City Facility and Equipment Maintenance and Repairs. During the term of the contract, the Contractor, at its own expense, shall to the satisfaction of the City, keep and maintain the premises and all improvements and City-provided equipment thereon in good and sanitary order, condition, and repair for its useful life, consistent with similar operations in California counties. The Contractor may utilize its own equipment, as needed, to upgrade the efficiency and quality of its services. The Contractor must clearly label and identify its owned assets located on the premises. Upon expiration or termination hereof, the Contractor shall surrender and deliver up to the City and premises all appliances and equipment provided by the City in good and useable condition, normal wear and tear excepted. 8. Contractors Equipment Maintenance and Repairs. All equipment provided by the Contractor shall remain the property of the Contractor, and any maintenance required thereon shall be the responsibility of the Contractor. The City shall incur no obligation for repairs or maintenance of equipment provided by Contractor. 9. Conditions of Premises. Contractor shall, at its expense, maintain the premises in a clean, attractive, and orderly condition. The Contractor shall be responsible for the prompt removal of all trash, litter, and debris which accumulates on or about the premises , which is attributable, directly or indirectly to or arising out of its use, specifically including any litter left by the Contractor, its visitors or spectators. The Contractor shall deposit all such trash, litter and debris in the containers provided by the City for pick-up at locations to be determined by the City. The Contractor shall comply with all laws, rules, regulations, codes, ordinance, directives, and guidelines, whether state, federal, or local, including, but not limited to, all health inspection laws. 10. Security. The City of San Luis Obispo has its own security in place within FACILITY. 11. Standards. The successful Contractor shall at all times comply with all rules, regulations, and ordinances of the City and other governmental agencies having jurisdiction. The successful Contractor shall further take all precautions and extreme care to conduct its activities in a safe and prudent manner with respect to its agents, emplo yees, members, visitors, and participants in any activity within the premises. 12. Inspection. For the purpose of inspection, the City reserves the right to enter upon any part of the premises at any time during the period the business is to be open under the terms of the contract 13. The City Reserves the Right To: a. Approve promotional giveaways by tenants or event sponsors, which may conflict DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 with the food and beverage sales. b. Approve the use of outside firms for special events or other functions. Special catering fees may be established for these types of special events or other functions. c. Approve all advertising sales. The City may request use of a specific product by the successful Contractor at a price to be competitive with existing market price. d. Allow selected groups to provide specialty food items at selected events, for example, promotional/fund-raising golfing events. In such cases, a best-effort basis will be made to have the successful Contractor provide soft drinks, coffee, tea, hot chocolate, and beer, or other liquid refreshments. e. Approve all novelty and program sales. The successful Contractor may be requested to act as agent for the City for a particular event, program or service, in which case a negotiated fee or percentage shall be agreed upon for services rendered. Such fee shall be agreed upon between the Director or designee and the successful Contractor. f. Limit hours of operation of selling of particular items, as a result of golfing event requirements or event compatibility. g. Engage in, or contract for, outside catering services for only City-sponsored events. h. Not operate off-site functions from the facilities or remove equipment except to other facilities owned by the City, unless the equipment is solely owned by the City. DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO: ___________________________ ___________________________ Teresa Purrington, City Clerk Erica Stewart, Mayor APPROVED AS TO FORM: CONTRACTOR __________________________ __________________________ Christine Dietrick, City Attorney Zen Dog, LLC DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037 EXHBIT B PROPOSED RATE The Contractor proposes to pay the City of San Luis Obispo the following, if awarded the contract: Flat Monthly Fee in the amount of $800 for the operation of the golf course concession, net of applicable taxes Flat Monthly Fee in the amount of $350 for operation of Contractor’s Food Truck DocuSign Envelope ID: 4917CEE2-D588-4E0E-8355-09ABC97F0D01DocuSign Envelope ID: 3906ACE1-368D-488C-9140-666CCFC3C037