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HomeMy WebLinkAbout06/15/2010, C6 - ADOPTION OF ORDINANCE NO. 1549 (2010 SERIES) ADDING SECTION 1.08.150 TO CHAPTER 1.08 OF THE SAN LUI council M. D' j agenda Rep= CITY OF SAN LUI S OBISPO FROM: J. Christine Dietrick, City Attorney SUBJECT: ADOPTION OF ORDINANCE NO. 1549 (2010 Series) ADDING SECTION 1.08.150 TO CHAPTER 1.08 OF THE SAN LUIS OBISPO MUNICIPAL CODE REQUIRING THAT CITY TAXES BE PAID PRIOR TO CLAIMANTS SEEKING JUDICIAL RELIEF RECOMMENDATION Adopt Ordinance No. 1549 (2010 Series). DISCUSSION On June 1, 2010, the Council voted 4-0 to introduce an ordinance adding Section 1.08.150 to Chapter 1.08 (General Provisions) of the Municipal Code to clarify the requirement that a City tax first must be paid before a claimant may file for a refund or for judicial relief. Ordinance No. 1549 is now ready for adoption and will become effective thirty days after the date of its final passage. ATTACHMENT Ordinance No. 1549 (20 10 Series) &Agenda-Ordinances-ResoWity Tax P,mt Prior to Claim for Refund.CAR.FinalAdopt.dot ATTACHMENT: ORDINANCE NO. 1549 (2010 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ADDING SECTION 1.08.150 TO CHAPTER 1.08 OF THE MUNICIPAL CODE TO CLARIFY THE REQUIREMENT THAT A TAX FIRST MUST BE PAID BEFORE FILING FOR A REFUND OR JUDICIAL RELIEF WHEREAS, California Constitution Article XIII, Section 32 requires that a taxpayer must first pay a tax before seeking a refund or judicial relief, and WHEREAS, the courts have consistently held that this "pay first, litigate later" rule was applicable to both the State and local entities; and WHEREAS, in a recent California Court of Appeal case it was held that Article XIII, Section 32 applies to the State but not to local entities; and WHEREAS, adoption of a clear"pay first, litigate later" rule is in the City's best interest. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 1.08.150 is added to Chapter 1.08 to read as follows: 1.08.150 Payment of Taxes prior to refund or judicial relief. No legal or equitable process shall be issued in any proceeding in any court against the City or any officer to prevent or enjoin the collection of any tax. After payment of a tax claimed to be illegal, not due and/or owing, and/or incorrectly calculated, an action may be maintained to recover the tax paid, provided that prior to any judicial action all administrative remedies shall be exhausted. SECTION 2. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty(30) days after its final passage. 01549 Ordinance No. 1549 (20 10 es) ATTACHMENT � Page 2 INTRODUCED on the 1" day of June 2010, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the day of 2010, on the following vote: AYES: NOES: ABSENT: Mayor David F. Romero ATTEST: Elaina Cano City Clerk APPROVED AS TO FORM: Christine Dietrick City Attorney GAAgenda-Ordinances-Resol\City Tax Payment Prior to Claim for Refund.doc C�-3 �, council n„ °°k — 5 -/o j acEnba nEpont �m CITY OF SAN LUIS OBISPO FROM: Betsy Kiser, Parks and Recreation Director SUBJECT: AGREEMENT WITH ACHIEVEMENT HOUSE, INC. FOR CONCESSIONAIRE AT LAGUNA LAKE GOLF COURSE RECOMMENDATION 1. Accept a donation from Achievement House, Inc for $30,000 in improvements to the Laguna Lake Golf Course pro-shop; 2. Enter into a 5-year agreement with Achievement House, Inc. to provide a food and beverage concessionaire at Laguna Lake Golf Course; 3. Authorize the Mayor to execute the agreement. DISCUSSION Background On January 5, 2010, the City Council received the Laguna Lake Golf Course (LLGC) best practice review, which recommended a number of best practice initiatives to increase revenues at the golf course. One of the initiatives was to pursue a food and beverage concessionaire through the request for proposal (RFP) process with the intent to add alcohol sales at Golf Course. Based on Council directive, on February 18, 2010 an RFP was issued requesting sealed proposals for a food and beverage concessionaire at the course. Bids were opened on March 12 with one proposal received from Achievement House, Inc. Achievement House,Inc. AHI, Inc. is a 501 (c) 3 non-profit corporation based in San Luis Obispo, California, established to provide vocational training and residential services to developmentally disabled adults. AHI's corporate headquarters is located at 496 Linne Road in Paso Robles and has been serving San Luis Obispo County since 1957. AHI's mission statement is: "To provide vocational opportunities for individuals with special needs that respect personal choice and diversity and that reflect individualized goals that support enhanced independence, personal responsibility and self-esteem. " AHI provides an array of vocational services and programs to assist individuals in developing appropriate workplace skills and behaviors so as to enhance individual productivity, independence and community integration. AHI's philosophy is that in order to be in an effective program, we must work in partnership with the individual and his/her support network. AHI has effectively demonstrated that individuals with even the most severe limitations can be gainfully employed, contributing members of their respective communities if appropriate supports are developed and maintained. Agreement with Achievement House, Inc.for Concessionaire at LLGC 6.15.10 Page 2 While Achievement House provides a wide range of programs to serve the needs of those with developmental disabilities, it currently provides successful concessionaire services similar to those being proposed for LLGC for the City of Atascadero (Orange Dog C66), Vandenberg Airforce Base (Caf6 Bob) and Camp San Luis Obispo. Terms of the Agreement Over the last couple of months, staff from the Parks and Recreation and Finance and Information Technology (FIT) Departments has met with representatives from Achievement House to negotiate terms of an agreement to satisfy the needs of both organizations. The agreement includes the following primary terms: 1. The agreement is for five(5)years to conduct a food and beverage operation at LLGC. 2. The City's obligation is to provide space and some amenities for the service. 3. Achievement House's obligation is to: a) provide service seven(7) days/week, excluding several holidays, from 7a.m. —7p.m.; b) make $30,000 in site improvements to bring the facility up to code with the Health Department, including flooring, installation of four (4) required sinks, exhaust hood, lighting adjustments, FRP to walls, electrical upgrades, painting and a number of new appliances c) attempt to obtain a liquor license to sell beer and wine d) be responsible for all employees needed to provide the service 4. Rent will be $1,250 plus CPI, with credit given by the City on the front end of the contract equal to the amount expended for improvements. Acceptance of Donation of Improvements Per the City's Donation Policy - Resolution No. 8965 (1999 Series), any donation exceeding $5,000 in value must be accepted through a written agreement and approved by City Council. By approving the agreement with Achievement House, the Council accepts ownership of the $30,000 in improvements to the pro shop to enable it to be used as a food and beverage facility. CONCURRENCES FIT staff participated in the negotiations and concurs with the terms of the agreement. Staff from LLGC, the Building Division, Public Works and Information Technology has been working with Achievement House on mutually acceptable plans and the process for making improvements to the pro shop. FISCAL IMPACT By entering into this agreement with Achievement House, the LLGC will realize a net increase in revenues of$25,000 over the five year period of the contract plus $30,000 in improvements. C.�- a 1 Agreement with Achievement House, Inc.for Concessionaire at LLGC 6.15.10 Page 3 Current revenues: Currently LLGC expends $8,400 annually for food and beverages with revenues of$12,000, for a net gain of approximately $4,000 ($4,000/year x 5 years = $20,000 in revenues). Future revenues under agreement: $15,000 per year rent (+ CPI) x 5 years = $75,000 minus $30,000 credit for improvements= $45,000. ALTERNATIVES Release the RFP again. Since the City received only one proposal to the RFP, Council could direct staff to re-release the RFP to see if it might attract more respondents. This is not recommended because in 2008, the City released an RFP for a concessionaire at the golf course and had no responses. Staff attributes this lack of interest to the amount of improvements needed to bring the kitchen into compliance with the Health Department. Achievement House, Inc., due to the services it provides to people with developmental disabilities and its funding sources has the ability and desire to not only improve the facility, but provide a practical food and beverage service to the LLGC. ATTACHMENT Agreement T:\Council Agenda Reports\Parks&Recreation CAR\Golf Course Concessionaire 2010\CAR-LLGC Concessionaire with Achievement House 6.15.10.doc C q -3 ATFACHM M AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on , 2010 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City,and ACHIEVEMENT HOUSE,INC.,hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on February 18, 2010, City requested proposals for providing food and beverage service at Laguna Lake Golf Course per Specification No.91002. WHEREAS, pursuant to said request,,Contractor submitted a proposal that was accepted by City for said concession operations. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,the parties hereto agree as follows: L TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, for five years, from the date all improvements have been completed and accepted in writing by the City. Contractor has three months from the date this Agreement is made to complete all improvements necessary to conduct the food and beverage operations or the Agreement will be terminated. An additional one year extension of this agreement may be made upon mutual agreement by the City and Contractor. 2. INCORPORATION BY REFERENCE. City Specification No. 91002 (Exhibit A) and Contractor's revised proposal dated April 23,2010(Exhibit B),and Insurance Requirements(Exhibit D)are hereby incorporated in and made.a part of this Agreement. 3. CITY'S OBLIGATIONS. The City agrees to provide space-and other amenities for the proposed food and beverage service, as described in Exhibit C, attached hereto and incorporated into this Agreement. 4. CONTRACTOR'S OBLIGATIONS. a. Contractor will provide food and beverage service at Laguna Lake Golf Course seven days a week, excluding specified holidays. Hours of operation will be from 7:00 a.m. to 7:00 p.m. daily, adjusting hours for special events and seasonal demands. 4J b. Contractor will perform site improvements by a licensed contractor at prevailing wage to bring the existing kitchen area up to County Health Department standards and be in compliance with State and City building codes. Cost for this work is estimated at$30,000. C. Contractor shall attempt to obtain a liquor license to sell beer and wine on the premises, contingent upon approval by the State Alcohol Beverage Control. Contractor shall maintain liquor liability insurance for the term the license is in effect(Exhibit D). d. Contractor shall obtain a license to operate a business within the City limits and maintain said license for the term of the agreement. e. Contractor will be responsible for all employees operating the kitchen and handling on- site sales. Contractor will also be responsible for maintaining a clean and safe environment in the kitchen and serving area. f. Contractor will be responsible for all food and beverage inventory on the premises. Contractor will be given space to store supplies and is responsible for securing all inventory items during non-operating hours. 5. RENT. Contractor will be charged rent for the space utilized at a cost of$1250/month once the improvements have been completed. Contractor shall provide City with itemized invoices documenting the actual costs of improvements to the kitchen area. Subject to approval by the Parks and Recreation Director, the City shall credit the amount actually expended by Contractor for work to upgrade the kitchen area against Contractor's rent obligation for a period not to exceed two years, in an amount equal to the actual costs of improvements, not to exceed $30,000. At the end of two years, or at such earlier time as the full amount of improvements performed by contractor has been credited against Contractor's monthly rent obligation, the Contractor will pay a monthly rent to lease the space. Rent will be increased each subsequent year beginning year four by the current year's Consumer Price Index. Contractor shall be responsible for paying the monthly rent by the I Od'of each month; if rent is not received by the 20d'of the month,the Contractor will be charged a late fee of$25/occurrence. If rent has not been paid within 30 days,the City shall take steps to terminate the agreement. 6. OWNERSHIP OF IMPROVEMENTS. Upon completion of building improvements by Contractor, 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. If this contract is terminated for convenience by the City before the end of the second year, City shall reimburse Contractor for a pro-rated amount of the amount actually expended by contractor to complete the site improvements agreed to herein. 7. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and.shall be effective only upon approval by the City Manager of the City. 8. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect; nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. In the event that there are conflicts between the terms of this Agreement and the terns of Contractor's Proposal(incorporated herein as Exhibit B), including but not limited to duration,compensation and termination,the terms of this Agreement shall prevail. 9. TERMINATION. Either party may terminate the Agreement for convenience provided that 30 days written notice is given. The Agreement may be terminated by either parry for cause,provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within 10 days,or to make substantial progress toward cure to the satisfaction of the party demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein. 10. HOLD HARMLESS AND INDEMNIFICATION. The Contractor agrees to defend, indemnify,protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused in whole or in part by the acts or omissions of the Contractor,and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same;provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City,its agents,officers or employees. 10. NOTICE. All written notices to the parties hereto shall be sent, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor Achievement House,Inc. 553 Higuera Street San Luis Obispo,CA 93401 10. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. 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 By: Elaina Cano,City Clerk David F.Romero,Mayor APPROVED AS TO FORM: CONTRACTOR ` / t By: istine Dietrick;City Attorney Achievement House,Inc: ',�P,CH"•.SENT EXHIBIT i City Of �+ San WIS OBISPO 990 Palm Street ® San Luis Obispo,CA 93401 Notice Requesting Proposals for LAGUNA LAKE GOLF COURSE FOOD/BEVERAGE CONCESSIONAIRE The City of San Luis Obispo is requesting sealed proposals for a food and beverage concessionaire at Laguna Lake Golf Course pursuant to Specification No. 91002. All proposals must be received by the Finance Department by Friday, March 12, 2010 at 3:00pm when they will be opened publicly in the City Hall Council Chambers, 990 Palm Street, San Luis Obispo, CA 93401. Proposals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Finance Division in a sealed envelope plainly marked with the proposal title, specification number, proposer name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the specification package. A pre-proposal conference will be held at Laguna Lake Golf Course, 11175 Los Osos Valley Road, San Luis Obispo on Thursday, March 4, 2010 at 10:00am to answer any questions that the prospective vendors may have regarding the City's request for proposals. Specification packages and additional information may be obtained by contacting Linda Fitzgerald, Recreation Manager at(805) 781-7293 or by email at Lfitzgerald@slocity.org. ® The City of San.Luis Obispo is committed to including disabled persons in all of our services,programs and activities. Telecommunications Device for the Deaf(805)781-7410. C 7�— EXHIBIT A Specification No. 91002 TABLE OF • A. Description of Work 1 B. General Terms and Conditions 3 Proposal Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions 7 Contract Term Estimated Quantities Proposal Content Proposal Evaluation and Selection Proposal Review and Award Schedule Unrestrictive Brand Names Start and Completion of Work Accuracy of Specifications D. Agreement 11 E. Insurance Requirements 14 F. Proposal Submittal Forms 16 Proposal Submittal Summary References EXHIBIT A Section A F. PJ' ifT DESCRIPTION OF • ' Background: Laguna Lake Golf Course, owned and operated by the City of San Luis Obispo, is a 10-hole, executive length course that has been in operation since the mid-1960's. Staff prides itself on a well-maintained facility and consistently receives positive feedback on the course upkeep and the high level of customer service provided by City staff. The site is located approximately 100 yards from a public middle school and is adjacent to a senior mobile home park, condominiums, and private residences. A shopping center is approximately %mile from the golf course.. The pro shop is the base of operations for the course. Staff manages tee times, food and merchandise sales, and serves as starter for the course. At one time, the pro shop had a snack bar when the course was under private management. Since the City took over the course operations in the early 1980's, there has not been food service options offered other than.simple vending items, such as sodas,pre-packaged food, candy bars, etc. The proposed area currently serves as the office for the golf course supervisor, supply storage and work area. Concessionaire,facilities that meet current health department codes are not in place at the golf course and the successful proposer will be responsible for any upgrades needed to bring the area up to code if food is to be prepared on site. Typically, the clientele is mostly seniors during the weekday mornings, youth golf two to three days a week in the afternoons, and general play for the rest of the day. The course is operated 364 days a year, closing only on Christmas Day. Approximately 40,000 rounds are played each year at the golf course. A 2003 report to City Council indicated that there would be a benefit to offering food and beverage service at the golf course. At the annual budget status report presented to the City Council in May 2008, staff reviewed the 2003 report and Council encouraged staff to seek a possible food/beverage vendor to enhance the service provided at the golf course and to assist in bringing in a new revenue source to help offset operating costs. Staff released a RFP in 2008 but no proposals were received. Subsequently, a concessionaire came forward and provided food on site for an 8 month period; the vendor bowed out due for personal reasons. The City Council received a report on golf course best practices in January 2010. At that meeting, the Council directed staff to pursue another food and beverage concessionaire and supported alcohol sales to enhance the operations at the golf course. Comments by the Council included the possibility of a beverage cart service that could roam the golf course and provide food and beverages to golfers while they were playing. Options: There is flexibility in how the food and beverage service may be offered at the golf course. The following are suggestions but proposers are not limited to these options: 1. Clubhouse improvements will need to be made if food is prepared on site. The proposer would be responsible for any improvements needed to bring the facility up to health and safety codes necessary for safe and sanitary operations for on site preparation and storage.. The cost for the improvements would be bome by the proposer and must meet State building codes and County Health Department requirements. -/D -1- EXHIBIT A 2. A beverage cart service could be used to provide beverages and pre-packaged food to the golfers while playing. Carts must be of the type that are designed to be used on a golf course and would not damage turf: x:.117 Ei •`- j' �. p } s' 'G ii �1. t k - _ 5 A list of suppliers will be available at the pre-proposal meeting. Carts may be available for lease or purchase; it will be up to the proposer to secure arrangements with the cart vendor. 3. The City would consider a self-contained structure or trailer that could be located near the clubhouse or could be centrally located on the course. Structures must meet City building codes and comply with County Health Department regulations. The proposer is responsible for any certificates, improvements, and permits needed. An example of a self-contained structure is below: -2- EXHIBIT r—�— n,i t— — � N{' rt^Ma G,• tom- ;_ 4}'� L�'l4Z 4'4Si r''.r t,..I ' ° "r' '" ��`• }� aY f " -74'S K.,y Fn,�l.eX�`�"�� TI�'.''��"{tt'i.r�.E' h +,r,. `} Tiil�h; -._ y ^' K XN r yJ,e � �Y71r✓' f -rr..!g �'kr � � • ����a^1 T 9 r$" � n�, t ?T r y � � 'r�''. T �V l!' � A ✓ Y y IF IF Criteria for Proposal: In responding to this request for proposal,the proposer should provide the following: 1. Please provide details on how the service will be provided — site improvements, beverage cart, self-contained structure, or other alternatives. Provide information on the types of improvements needed, an approximate cost for the improvements, and square footage needed to operate the service. 2. Please provide a description of how the sale and storage of alcohol will be handled on site. 3. Ability to obtain necessary insurance certificates to cover general liability and liquor liability, if a license to serve alcohol is planned by the proposer. 4. Ability to meet the qualifications to obtain a license to serve alcohol through Alcohol Beverage Control. 5. Ability to obtain a business license from the City of San Luis Obispo. 6. Describe the background and experience of the vendor in providing food and beverage services. Indicate the amount of experience in alcohol sales. 7. Indicate the proposed hours of operation for the food/beverage service. 8. Provide a sample menu of the types of food that will be served and a list of prices. 9. Describe how the food service areas will be maintained and cleaned and a high degree of customer service attained. V I J4 � -3- ATI''CHIliUNT p EXHIBIT A 10. Provide three references with direct knowledge of the proposer's ability to provide the service being proposed. 11. The City will consider a long-term agreement with the proposer, subject to negotiation of terms agreeable to both parties. Financial compensation for improvements made on site to comply with health and safety regulations will be negotiated as a part of the agreement. Proposals should indicate preliminary terms for the agreement including rent, percentage of gross revenues to be given to the City, and length of the agreement. 0 -!3 EXHIBIT Section B GENERAL TERMS • s CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal shall meet all of the terms, and conditions of the Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of proposer, and date and time of proposal opening. No FAX submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. C. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the proposer's insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award.. The City's insurance requirements are detailed in Section E. 4. Proposal Quotes and Unit Price Extensions. The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the proposer must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any proposer for any item are not in agreement, the unit price alone will be considered as representing the proposer's intention and the proposal total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than that stated in the "Notice Requesting Proposals" will be considered. All proposals will be opened and declared publicly. Proposers or their representatives are invited to be present at the opening of the proposals. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub- proposal to a proposer submitting a proposal, or who has quoted prices on materials to such proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers submitting proposals. -5- i EXHIBIT A LI",T_ 7. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However,any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for proposal evaluation and contract award criteria. 9. Competency and Responsibility of Proposer. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision. 10. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. 11. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 12. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate before execution of the contract. Additional information regarding the City's business tax program may be obtained by calling(805) 781-7134. CONTRACT PERFORMANCE 13. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 14. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances,regulations and adopted codes during its performance of the work. 15. Permits and Licenses. The Contractor shall procure all permits and licenses,pay all charges and fees, and give all notices necessary. 16. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 17. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, fumish, erect and maintain such fences, temporary railings, barricades, lights, signs and other C ��� -6- '�rir,crsE:T __ EXHIBIT devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 18. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 19. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 20. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation,or religion of such persons. 21. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 22. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 23. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor 24. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 25. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify,protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, -7- RU ii:§UNIT J EXHIBIT_ A including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused in whole or in part by the acts or .omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same, provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 26. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 27. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter,neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished,reduced,or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. -8- .J-P Ni 4Ei4? — �; EXHIBIT Section C SPECIAL TERMS AND CONDITIONS 1. Contract Term. The services identified in these specifications will be used by the City between March 2010 and a time to be determined between the City and Proposer. The quote for these services must be valid for the entire period indicated above unless otherwise conditioned by the bidder in its proposal. 2. Contract Extension, The term of the contract may be extended by mutual consent for an additional three years, provided the contractor has performed to the City's satisfaction and in accordance with the contract: During this extended period, unit prices may not be increased by more than the percentage change in the US consumer price index for All Urban Consumers(CPI- U), from July to June. 3. Start and Completion of Work. Improvement work associated with this contract shall begin within 30 calendar days after contract execution and shall be completed within 180 calendar days thereafter. 4. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package. 5. Statement of Contract Disqualifications. Each proposer shall submit a statement.regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. 6. Proposal Content. Your proposal must include the following information: Submittal Forms a. Proposal submittal summary. b. Certificate of insurance. C. References from at least three firms for whom you have provided similar services. Qualifications d. Please provide details on how the service will be provided—site improvements,beverage cart, self-contained structure, or other alternatives. Provide information on the types of improvements needed, an approximate cost for the improvements, and square footage needed to operate the service. e. Description of how the sale and storage of alcohol will be handled on site. f. Ability to obtain necessary insurance certificates to cover general liability and liquor liability, if a license to serve alcohol is planned by the proposer. g. Ability to meet the qualifications to obtain a license to serve alcohol through Alcohol Beverage Control, if proposed. h. Ability to obtain a business license from the City of San Luis Obispo. -9- EXHIBIT - i. Describe the background and experience of the vendor in providing food and beverage services. Indicate the amount of experience with alcohol sales. j. Indicate the proposed hours of operation for the food/beverage service. k. Provide a sample menu of the types of food that will be served and a list of prices. 1. Describe how the food service areas will be maintained and cleaned and a high degree of customer service attained. M. Provide three references with direct knowledge of the proposer's ability to provide the service being proposed. n. Describe the experience of your firm in performing similar services. o. Statement and explanation of any instances where your firm has been removed from a project or disqualified from proposing on a project. P. The City will consider a long-term agreement with the proposer, subject to negotiation of terms agreeable to both parties. Financial compensation for improvements made on site to comply with health and safety regulations will be negotiated as a part of the agreement. Proposals should indicate preliminary terms for the agreement including rent,percentage of gross revenues to be given to the City,and length of the agreement. Proposal Length and Copies q. Proposals should not exceed [20] pages, including attachments and supplemental materials. r. Three copies of the proposal must be submitted. 7. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based on the following criteria: a. Understanding of the work required by the City. b. Quality,clarity and responsiveness of the proposal. C. Demonstrated competence and qualifications necessary for successfully performing the work required by the City. d. Recent experience in successfully performing similar services. e. Proposed approach in completing the work. f. References. g. Background and related experience of the specific individuals to be assigned to this project. h. Proposed compensation. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. 8. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: (2,7- _10- EXHIBIT a. Issue RFP 2/18 b. Conduct pre-proposal conference 3/4 C. Receive proposals 3/12 d. Complete proposal evaluation 3/16 e. Conduct finalist interviews 3/19 f. Finalize staff recommendation 3/24 g. Award contract 4/6 h. Execute contract 4/15 i. Start work 5/3 9. Pre-Proposal Conference. A pre-proposal conference will be held at the following location, date, and time to answer any questions that prospective proposers may have regarding this RFP: Thursday, March 4,2010— 10:OOam Laguna Lake Golf Course 11175 Los Osos Valley Road, San Luis Obispo,CA 93405 10. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternatives, and discuss under what circumstances the City would prefer one alternative to the other(s). If an alternative proposal is submitted, the maximum length of the proposal may be expanded proportionately by the number of alternatives submitted. 11. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Proposers are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the proposer and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the d specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of proposer to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the proposer. An ambiguity or defect shall be considered patent if it is of such a nature that the proposer, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the proposer or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful proposer to achieve the project's objective or standard beyond the amounts provided there for in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, -11- EXHIBIT-A minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. _12_ � • ��! EXHIBIT Section D. -------____ FORM v . AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on 2010 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and ,hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on February 18, 2010, City requested proposals for providing food and beverage service at Laguna Lake Golf Course per Specification.No. 91002. WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said concession operations. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,the parties hereto agree as follows: I. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, for years, once all improvements have been completed. Contractor has months from the date this Agreement is made to complete all'improvements necessary to conduct the food and beverage operations or the Agreement will be terminated. An additional year extension of this agreement may be made upon mutual agreement by the City and Contractor. 2. INCORPORATION BY REFERENCE. City Specification No. 91002 and Contractor's proposal dated are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. The City agrees.to provide space and other amenities for the proposed food and beverage service,as described in Exhibit[ ]attached hereto and incorporated into this Agreement. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide food and beverage service,as described in Exhibit[ ]attached hereto and incorporated into this Agreement. -13- EXHIBIT_—A_ 5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the CAO of the City. 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. 7. TERMINATION. Either party may terminate the Agreement provided that 60 days written notice is given. 8. 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 City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor Name Address 9. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. 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 By: City Clerk City Manager APPROVED AS TO FORM: CONTRACTOR By: City Attorney c�-a3 -14- t � ExHisir Section E INSURANCE REQUIREMENTS Operation & Maintenance Contracts The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents,representatives,employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage(occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Liquor Liability Insurance(if liquor service is proposed). Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be.twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Liquor Liability Insurance: $2,000,000 per occurrence (if liquor service is proposed). Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. The City may review options with the contractor, which may include reduction or elimination of the self-insured retention, substitution of other coverage, or other solutions. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain,the following provisions: 1. The City, its officers, officials, employees; agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers,official, employees, agents or volunteers. 2. For any claims related to this contract, the Contractor's insurance coverage shall apply first and on a primary basis as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer's liability. -15- C_ i:l EXHI--- BIT 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days'prior written notice by mail,has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall famish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. -16- EXHIBIT A PROy,Pq{Or SAL SUBMITTAL FORM Sample .- wr•'�..da..k,�c IXyz' 'ix_...,.... 019 .YrE The undersigned declares that she or he: ■ Has carefully examined Specification No.91002,which is hereby made a part of this proposal. ■ Is thoroughly familiar with its contents. ■ Is authorized to represent the proposing firm. ■ Agrees to perform the work as set forth in this proposal. ❑ Certificate of insurance attached; insurance company's A.M. Best rating: Firm Name and Address Contact Phone Si nature o Authorized Representative Date -17- EXHIBIT REFERENCES - '. �.A'�"te _ ' � Number of years engaged in providing the services included within the scope of the specifications under the present business name: Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if requited. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name Contact Individual Telephone&FAX number Street Address City, State,Zip Code Description of services provided including contract amount,when provided and project outcome Reference No. 2 Customer Name Contact Individual Telephone&FAX number Street Address City,State,Zip Code Description of services provided including contract amount,when provided and project outcome Reference No.3 Customer Name Contact Individual Telephone&FAX number Street Address City,State;Zip Code Description of services provided including contract amount,when provided and project outcome _18_ EXHIBIT J STATEMENT OF PAST CONTRACT DISQUALIFICATIONS ''"�';GiE;, - OW2=V!311010-0-aa The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality,and if so to explain the circumstances. ■ Do you have any disqualification as described.in the.above paragraph to declare? Yes ❑ No ❑ ■ If yes, explain the circumstances. Executed on at under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. Signature of Authorized Representative -19- EXHIBIT „ BIDDERS LIST FOOD & BEVERAGE CONCESSION—LACUNA LAKE GOLF COURSE SPECIFICATION NO.91002 Business Name Business Name: Big Daddy Oak Pit Contact Name: Craig Lingham Contact Name: Renee Address: P.O. Box 287 Address City, State and Zip Code Solvang, CA 93464 City, State and Zip Code Phone No. Phone No. (805)773-3638 Fax No. Email Address: bigdaddyoakpit@verizon.net Business Name: Village Host Pizza Business Name: Zaki's Golden Waffle Contact Name: Jerry Gilmore Contact Name: Zaki Shabbar Address: 2138 Broad St. Address: 1460 Calle Joaquin City, State and Zip Code SLO, CA 93401 City, State and Zip Code SLO, CA 93405 Phone No. Phone No. (805) 595-1956 Email Address: Fax No. Business Name: Catering Unlimited, Inc. Business Name Contact Name Contact Name Address: 2990 Dairy Creek Rd. Address City, State and Zip Code SLO,CA 93405 City, State and Zip Code Phone No. (805) 782-8070 Phone No. Fax No. Fax No. Business Name Business Name Contact Name Contact Name Address Address City, State and Zip Code City, State and Zip Code Phone No. Phone No. Fax No. Fax No. Business Name Business Name Contact Name Contact Name Address Address City, State and Zip Code City, State and Zip Code Phone No. Phone No. Fax No. Fax No. c '7 EXHIBIT a: Achievement Building Partnerships, Creating Choices PROPOSAL TO CITY OF SAN LUIS OBISPO 990 Palm Street, San Luis Obispo, Ca. 93401 RPF FOR LAGUNA LAKE GOLF COURSE SUBMITTED March 12, 2010 RESUBMITTED April 23, 2010 FROM ACHIEVEMENT HOUSE, INC By providing this food service contract the goal is to increase revenue and attendance for Laguna Lake Golf Course and our goal is to provide vocational training for the individuals we support in San Luis Obispo. Leslie Alvarado Business Coordinator Achievement House Inc 553 Higuera Street San Luis Obispo, Ca. 93401 Phone 805-543-0412 �-� EXHIBIT I T- I ,�._! -,,Ir NCI AFFILIATES, INC. Achievement BUILDING PARTNERSHIPS,CREATING CHOICES City of San Luis Obispo Department of Community Services Proposal to Operate Food/Beverage Concessionaire At Laguna Lake Golf Course 11175 Los Osos Valley Road, San Luis Obispo, Ca. This proposal is submitted by Achievement House, Inc. (AHI), a California non-profit corporation to the City of San Luis Obispo, Department of Community Services, a governmental agency. I. PROPOSED SERVICES AND IMPROVEMENTS: AHI proposes to provide a vocational food and beverage services work group to operate the cafe/concession stand at the Laguna Lake Golf Course's existing kitchen site. Site improvements will be completed by a licensed contractor to include flooring, installation of (4) required sinks, exhaust hood, lighting adjustments, FRP to walls, electrical upgrades, and painting. Appliances purchased include: ANSI refrigerator, microwave, griddle/oven, fryer, popcorn machine, and a refrigerated beverage container. This approximate cost will be $30,000. II. SALE AND STORAGE OF ALCOHOL:Per this proposal, AHI agrees to provide an onsite skilled food service job coach and food service vocational trainees. After obtaining an ABC license to serve Beer/Wine AHI will put into place a policy where all alcoholic beverages will be stored in a locked storage container, handles by adults over the age of 21, and served to adults providing proof age. No alcohol will be given or sold to miners or any individual exhibiting signs of inebriation. AHI will work with the staff at the Laguna Lake Golf Course to establish guidelines and they will be enforced. III. INSURANCE: AHI shall maintain and provide evidence to the City of San Luis Obispo that AHI is fully and properly insured and workers compensation insurance is provided for all members of the work group. The City of San Luis Obispo agrees to allow AHI staff and AHI's carrier representative to conduct routine safety inspections of the work site. AHI and the City of San Luis Obispo agree to work closely to ensure that safety at the work site is maximized. AHI will complete all requirements to be issues a liquor license from the Alcohol Beverage Control IV. ABC LICENSE: As a non-profit company with over 50 years in business in San Luis Obispo there is no foreseeable problem with obtaining a Beer/Wine liquor license with the ABC. All due diligence will be completed but the final decision will be with the ABC. V. BUSSINESS LICENSE: AHI already has a business license with the city of San Luis Obispo at several locations. V1. FOOD SERVICE EXPERIENCE: AHI had a successful restaurant called the Good Neighbor Room for several years and has a current contract at Camp San Luis Obispo. Our sister company NCI Affiliates was awarded a new contract called Orange Dog Cafe for the city of Atascadero and has successfully operated the Cafe Bob restaurant on the Camp Roberts military base since 2000. NCI recently increased its hours to accommodate demand and will serve breakfast, lunch and dinner. The restaurant is operated by NCI staff and vocational food 67- 3/ ' EXHIBIT' i service trainees under an agreement with the Army-Air Force-Exchange Service (AAFES) and Camp Roberts military command. In the past, NCI had a supported employment food services group working at the Back Porch Cafe at the San Luis Obispo Lake Pavilion and operated the La Bella Pizza Kitchen in Paso Robles for several years. All food service job coaches are Food Safety Certified. VII. HOURS OF OPERATION: AHI proposes to operate the cafe/concession stand seven days a week, excluding specified Holidays from 7am to 7:00 pm. Hours of operation may be adjusted to accommodate special events and seasonal demands. Vlll. SAMPLE MENU: See attachment. DC. MAINTAINING CLEANLINESS AND GROUP SUPERVISION: Per this proposal, AHI agrees to provide an onsite skilled food service job coach and food service vocational trainees. The food service job coach responsibilities shall include: 1. Provide initial and ongoing training to the group to ensure that all conditions of the cafe/concession stand contract.are met. 2. Provide prompt and courteous service to cafe/concession stand customers. 3. Ensure that the work group adheres to all required and preventative safety practices. Notify AHI and the City of San Luis Obispo when safety issues emerge and provide prompt and effective response to any safety incident. 4. Ensuring that all concession, cafe and kitchen equipment belonging to the City of San Luis Obispo is maintained properly. 5. Maintain a safe,clean, sanitary and presentable environment. 6. Assist the group in learning and complying with the City of San Luis Obispo's and Laguna Lake Golf Course rules and regulations. 7. Act as the liaison between the City of San Luis Obispo and AHI, including ensuring that the needs and concerns of the contract are expeditiously identified and addressed. X. REFERENCES: SEE NEXT PAGE XI. CONTRACT DURATION COMPENSATION AND TERMINATION: The contract between Achievement House, Inc. and the City of San Luis Obispo will be for a period_ of five years. AHI will recoup its initial investment expenses the first two years of the agreement without rental payments to the City of San Luis Obispo; and then pay$1,250 per month beginning the third year of the contract (with both parties agreeing to annual increases for the 4t' and 5`" year of the contract to not exceed the current CPI rate). Rent will be paid by the 10"' day of each month. If this contract is terminated prior to 5 years, the City of San Luis Obispo will reimburse Achievement House, Inc. a pro-rated return of their financial investment. Either party may terminate the agreement with a 30-day notice. AHI HISTORY AHI, Inc. is a 501 (c)3 non-profit corporation based in San Luis Obispo, California and was established to provide vocational training and residential services to developmentally disabled adults. AHI's corporate headquarters is located at 496 Linne Road in Paso Robles and has been serving San Luis Obispo County O,q -3a �.• EXHIBIT since 1957. AHI's mission statement is: "To provide vocational opportunities for individuals with special needs that respect personal choice and diversity and that reflect individualized goals that support enhanced independence, personal responsibility and self-esteem." AHI provides an array of vocational services and programs to assist individuals in developing appropriate workplace skills and behaviors so as to enhance individual productivity, independence and community integration. AHI's philosophy is that in order to be in an effective program, we must work in partnership with the individual and his/her support network. AHI has effectively demonstrated that individuals with even the most severe limitations can be gainfully employed, contributing members of their respective communities if appropriate supports are developed and maintained. REFERENCES ORANGE.DOG CAFE: Jennifer Fanning City of Atascadero Colony Park Community Center Director Recreation Supervisor 5599 Traffic Way Atascadero, Ca. 93422 CAFE BOB: Carrie McCann—AAFES Services Business Manager AFB mcann(a)afes.com AAFES Exchange Office P.O. Box 5668 Vandenberg, Ca. 93437 CAMP SAN LUIS OBISPO LTC Kevin Bohn Director of Logistics Camp San Luis Obispo 805-594-6504 EXHIBIT SAMPLE.MENU -N COFFEE: $1.00 (16 oz) HOT TEA: $1.50 (16 oz) SOFT DRINKS: SM MED LG ICED TEA: $1.50 $1.75 $2.00 SNAPPLE $1.75 BOTTLED WATER $1.75 BREAKFAST MENU: BAGEL WITH CREME CHEESE $2.00 BREAKFAST BURRITO $5.00 DANISH $1.50 CINNAMON ROLL $1.50 FRUIT $1.25 $$LUNCH MENU$$ REGULAR FRIES $1.50 CHILI/CHEESE FRIES $3.75 LARGE FRIES $3.00 POPCORN $1.00 GRILLED CHEESE $4.00 ICE CREAM $1.50 QUESDILLA $2.50 CANDY BARS $1.00 HOT DOG $2.50 CHILI CHEESE DOGS $3.00 BURGER $4.50 CHEESE BURGER $4.75 CHILLI CHEESE $5.00 BURRITOS $3.00 BEER/WINE 12 OZ $3.50 GLASS WINE $5 ADDITIONS OR AJUSTMENTS CAN BE EASILY MADE AFTER WE EVALUATE THE CUSTOMERS PREFERENCES C:7-5� CEXHIBIT CAFE' REMODEL ----- at the SLO GOLF COURSE by N.C.I. PAoPofap &P-ZAfF TRAP SCALE= 1"=3' I goo O TR I PL E St P,INLESSsTeg-L5(NK "— ®snorE D EiLCrok HAND WA5tt Q SINN Z m � 3W W o �1 rt^w W U V C` Cr Il IN& LLI r ' E0i7c, o U OHOOD O V W t J -A = %.n Fa MICROWAVE FREESTANDInFr DEEP CABINETS FRYER EX, ELF-CTA ICAL PANEL (MA114) NOTES: • All Electical, Plumbing, Gas and Food handling Code infastructure exists presently in the same locations as in the previous Cafe'. • A Grease Trap per code (see attached) is proposed to comply with the San Luis Obispo City Planning Department. P(.O1" PLAM • Lighting to remain standard and new flooring to go directly over existing. 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Mg r it Rr, vC il, 'c�jFdj �f s�$tln�"s Phy.r' 'I.Yc4t#frim Yi+M St+ tS s\ r .0* � ♦ a'\Gn £r bf u'YiYrt`um ,�� " ~<�r,�!•l,}1,r�. " ��Ilv}�1�, r'�� \fln��; � e V a ! BAR ""!r i'S' . t 1 OCA- OO ZZ A cf)Z U) Z 02 � O C3-3 EXHIBIT D 'l l I fyrrl',i:I LI� Section E INSURANCE Operation & Maintenance Contracts The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor,its agents,representatives,employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage(occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87)covering Automobile Liability,code 1 (any auto). 3. Workers'Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Liquor Liability Insurance(if liquor service is proposed). Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Liquor Liability Insurance: $2,000,000 per occurrence(if liquor service is proposed). Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. The City may review options with the contractor, which may include reduction or elimination of the self-insured retention,substitution of other coverage, or other solutions. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain,the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor, premises owned, occupied or used by the Contractor,or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers,official,employees,agents or volunteers. 2. For any claims related to this contract, the Contractor's insurance coverage shall apply first and on a primary basis as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer's liability. -15- ,�, EXHIBIT - 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voidedi canceled by either party, reduced in coverage or in limits except after thirty (30)days'prior written notice by mail,has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than ANIL Verification of Coverage. Contractor shall famish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. _16_ C�-3