HomeMy WebLinkAbout02-19-2019 Item 7 - Laguna Lake Golf Course Community Partnership Agreement with Achievement House Department Name: Parks and Recreation
Cost Center: 7007
For Agenda of: February 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Parks and Recreation Director
Prepared By: Devin Hyfield, Parks and Recreation Manager
SUBJECT: RENEWAL OF THE LAGUNA LAKE GOLF COURSE COMMUNITY
PARTNERSHIP AGREEMENT WITH ACHIEVEMENT HOUSE, INC. AND
REDUCTION OF RENTAL PAYMENT
RECOMMENDATION
1. Approve an amended and restated Agreement with Achievement House, Inc. to continue to
provide food and beverage concessionaire at Laguna Lake Golf Course.
2. Eliminate rental payments of concession operations at the Laguna Lake Golf Course with
additional services provided at the golf course pro -shop.
DISCUSSION
Background
On October 19, 2010 the City Council appro ved an amended Concessionaire Agreement with
Achievement House, Inc. This agreement reflects a mutually beneficial partnership between the
City and the Achievement House to provide food and beverage concessions at the Laguna Lake
Golf Course while providing for an array of vocational services and workplace skills to
developmentally disabled adults.
The approved Concessionaire Agreement allowed the offset of the costs of kitchen facility
improvements at the golf course against “rent”. The initial term of t he agreement concluded in
October 2016. A three-year extension was approved by City Council in December 2015 and the
amendment to the current Concessionaire Agreement decreased rent payments for the remainder
of the initial term and minimal rent during the allowed extension.
Per the Amended Concessionaire Agreement, all the kitchen facility improvements for the 11 th
Hole Grill (estimated at $60,000 upon amendment) were to be performed and paid -for by the
Achievement House as a condition of the Agreement. The amount expended for facility
improvements was to be credited by the City against the monthly lease obligation of
$1,250/month and were to be equal to the amount expended for the building improvements.
However, the costs to improve the building site (k itchen, club house and restaurant equipment)
significantly exceeded the original estimate; with a total facility improvement cost of over
$80,000. The Achievement House has expressed to the City Council in the past its concern about
the financial investment needed to operate the 11th Hole Grill and the limited concessionaire
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sales. Both have significantly impacted Achievement House’s ability to pay the monthly lease
fee originally agreed to. In December 2015, a reduced lease rate of $1,800 per year was approved
by City Council during the Extension Term.).
Achievement House, Inc.
Achievement House is a 501(c)3 non-profit corporation based in San Luis Obispo, which
provides employment opportunities, skills development and workplace integration for
developmentally disabled adults. Currently, Achievement House provides concessionaire
services to the several Central Coast communities with the 11 th Hole Grill at the Laguna Lake
Golf Course, Orange Dog Café in Atascadero, Café Bob at Camp Roberts Military Base and the
Grub Hub Concessionaire Stand at the Santa Maria Transportation Center. Achievement House
has been successfully operating the 11th Hole Grill since 2011 and has played a role in the daily
operations at the Laguna Lake Golf Course. Achievement House desires to continue to lease the
premises at Laguna Lake Golf Course and the current lease arrangement has proven mutually
beneficial for both the City and the community.
Elimination of Rental Payment in Lieu of Additional Services Performed by Achievemen t
House
The proposed updated partnership agreement is provided and consistent with the City’s
guidelines for leases of City-owned building and real property. In lieu of an annual rental price,
Achievement House will provide additional janitorial services t o the pro-shop as well as pay a
portion of the monthly sewer utility cost.
Previous Council or Advisory Body Action
In 2010 and 2015, the Council supported and approved of a concession agreement with
Achievement House.
Policy Context
The following guidelines apply to leases of City-owned buildings with outside parties per the
City’s Financial Management Manual, Section 475 -C (Property Management and Disposal).
Non-Profit Organizations
1. Requests for the long-term use of City property by non-profit organizations should
generally follow the same review procedures as the sale or lease of City property by
private for-profit entities.
2. The proposed use should be consistent with the goals and objectives of the City's
General Plan and not conflict or preclude any existing or planned City use.
3. Any development or operations directly related to the proposed use should have a
clear and measurable community benefit in alignment with City goals, policies, and
plans.
4. Any lease agreements for the use of City property by non-profit organizations that
charge a less than market rate for the City property should include a provision for
community access and/or City use or operate in close partnership in the delivery of City
services.
5. Lessees will be responsible for all property related use taxes that may be assessed.
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This agreement follows City guidelines by providing a clear and measurable community benefit.
Public Engagement
This item is on the agenda for the February 19, 2019 City Council meeting and wil l follow all
required postings and notifications. The public may comment on this item at or before the
meeting.
CONCURRENCE
Parks and Recreation staff have met with Achievement House representatives to discuss the
proposed updates to the Concessionaire Agreement. Achievement House concurs with the terms
of the revised agreement as proposed.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Pr oject” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No (reference Financial Plan page# in narrative) Budget Year: N/A
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund N/A $ $ $
State
Federal
Fees
Other:
Total N/A $ $ $
Achievement House lease revenues will not be calculated into the Parks and Recreation
Departments’ revenue projections for the 2019-21 Financial Plan as a request for relief from
them was received during the forecasting of said revenues. Upon the expiration of the agreement
term in February 2024, the agreement terms will be reviewed, and recommendations provided to
the City Council for consideration.
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ALTERNATIVES
1. Seek Requests for Proposals. The Council could choose to deny the extension of the
Concessionaire Agreement with Achievement House and direct staff to pursue proposals for
these services. Staff does not recommend this alternative. In 2008, a Request for Proposals
for concessionaire at the golf course yielded no responses. The current concessionaire,
Achievement House, has provided an equally beneficial service to the golf course since 2010.
2. Deny Modification to Rental Payments. The City Council could amend the proposed
Concessionaire Agreement, denying a reduction in rental fees, and approve a lease agreement
at the full market rent of $1,250 per month or $15,000 annually to the Achievement House.
This alternative is not recomme nded as Achievement House has significantly invested in the
facility improvements necessary to conduct concessionaire services at this location.
Additionally, the City Council has previously determined that the proposed used by the
Achievement House has a clear and measurable community benefit in alignment with City
goals.
Attachments:
a – Amended and Restated Achievement House Agreement
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FOOD AND BEVERAGE COMMUNITY PARTNERSHIP AGREEMENT AT THE LAGUNA
LAKE GOLF COURSE WITH ACHIEVEMENT HOUSE, INC
This Agreement, made and entered into this Nineteenth day of, February 2019, by and between
the CITY OF SAN LUIS OBISPO, hereinafter referred to as “CITY” and ACHIEVEMENT
HOUSE, INC, hereinafter referred to as “CONTRACTOR.”
RECITALS
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 multiple partnerships
with community-based organizations that support recreational activities for all populations.
WHEREAS, a food service business enhances the user experience at the Laguna Lake
Golf Course.
WHEREAS, Laguna Lake Golf Course has a commercial kitchen located inside its
clubhouse which was improved at considerable expense, over $80,000, between 2010 and 2015
by CONTRACTOR for the purposes of operating a food service concession.
WHERE AS, the CITY desires to maintain the mutually beneficial relationship and
community partnership which has developed over the past eight years between the CITY and
CONTRACTOR in the provision of supportive employment for the community through
CONTRACTOR’S operation of a food service business at Laguna Lake Golf Course .
WHEREAS, CONTRACTOR seeks to continue to provide concession operations
including food and beverage services at the FACILITY and as an employment center for its
clients.
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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 February 5, 2019 until February 5, 2024, a
period of five years. An additional two-year extension of this Agreement may be made upon
mutual agreement by the CITY and CONTRACTOR.
2. CITY'S OBLIGATIONS. The CITY agrees to provide the existing kitchen space as is at the
Laguna Lake Golf Course for the continuation of the proposed food and beverage service by
CONTRACTOR.
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.
3. 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 from 8:30 a.m. to 4:00 p.m. daily, adjusting hours for
special events, weather, or maintenance closures. CONTRACTOR may close services in the
event of FACILITY course closure.
a. CONTRACTOR will continue to operate kitchen area at existing County Health
Department standards and remain in compliance with State and CITY building
codes.
b. CONTRACTOR shall maintain a liquor license to sell beer and wine on the
premises, contingent upon continual approval by the State Alcohol Beverage
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Control. CONTRACTOR shall maintain and provide to the CITY liquor liability
insurance for the term the license is in effect as described in Section 8.
c. CONTRACTOR will maintain a license to operate a business within the CITY
limits for the term of the agreement.
d. 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.
e. CONTRACTOR will 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.
4. 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.
a. CONTRACTOR shall maintain the following FACILITY standards as it relates to the
maintaining the concession/kitchen area:
i. Sweep back and side patio
ii. Remove cobwebs from overhang on patio
iii. Cleaning tables and chairs on patio and inside the clubhouse
iv. Vacuum concession seating area inside the clubhouse
v. Clean kitchen/lobby windows and front window with golfer decal
b. In consideration for no rent, CONTRACTOR will provide additional services to the
CITY operational side of the FACILITY for a reduction in rent:
i. Sweep Front Patio – Once per day
ii. Clean all windows in FACILITY – Twice per week
iii. Vacuum full pro-shop – Three times per week
iv. Empty all trash receptacles in and around FACILITY – As needed
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5. UTILITIES. CONTRACTOR is responsible for the payment of 50% of the facility’s
monthly Sewer Utility bill not to exceed $100.00 per month.
6. RENT. For the use of the kitchen at FACILITY, CONTRACTOR will perform additional
services as described in Section 4 b.
7. 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.
8. INSURANCE & LIABILITY.
a. Liability Insurance. CONTRACTOR shall maintain commercial general liability
insurance with coverage at least as broad as Insurance Services Office form CG 00
01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general
aggregate, for bodily injury, personal injury, and p roperty damage, including without
limitation, blanket contractual liability. Coverage must include full liquor liability in
the amount of $1,000,000 per occurrence, $2,000,000 general aggregate. Agency, its
officers, officials, agents, and employees shall be included as insureds on the policy.
A CG 20 26 or equivalent, blanket endorsement or section of the policy. Endorsement
shall cover the CITY of San Luis Obispo, its officers, agents, employees and
volunteers as additional insured. A copy of the certificate of insurance must be
presented to the CITY no later than seven (7) working days prior to expiration of
current coverage. CONTRACTOR is required to have insurance claim forms on site
in the event of injury to spectators, players or other parties.
b. Indemnification. The CONTRACTOR shall defend, indemnify, save, and hold
harmless the CITY and its officers and employees from any and all claims, costs and
liability for any damages, sickness, death, or injury to person(s) or property, including
without limitation all consequential damages, from any cause whatsoever arising
directly or indirectly from or connected with the use of the FACILITY, operations or
services of the CONTRACTOR or its agents, servants, employees or subcontractors
hereunder, save and except claims or litigation arising through the sole active
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negligence or sole willful misconduct of the CITY or its officers or employees, and
will make good to and reimburse CITY for any expenditures, including reasonable
attorneys’ fees, the CITY may make by reason of such matters and, if requested by
the CITY will defend any such suits at the sole cost and expense of the
CONTRACTOR.
9. 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 Golf Operations Coordinator maybe
contacted.
b. Achievement House of Contact. Mike Metcalf is the Achievement House representative
that the CITY shall contact for all issues related to the FACILITY and operation of this
agreement. All contacts must be in writing, including e-mail.
c. Written Notice. All written no tices 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: Achievement House
Attn: Mike Metcalf
Director of Business Services and Development
496 Linne Road
Paso Robles, CA 93446
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d. Notification of Changes to Use. CONTRACTOR shall notify the CITY’s designee of
any changes to their use within ten days of the date(s) to be changed. CITY reserves the
right to modify CONTRACTOR’s use schedule of the FACILITY within ten days of the
date(s) to be changed with written notice.
10. AGREEMENT SPECIFICATIONS
a. Agreement Amendment . Any amendment, modification or variation from the terms of
this Agreement shall be presented in writing to the CITY’s Parks and Recreation Director
and CONTRACTOR owner and shall be effective only upon final approval by the CITY
Manager or his/her designee.
b. Agreement Termination Either party may terminate the Agreement for convenience,
provided 30 days written notice is given. The Agreement may be terminated by either
party 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 parting demanding cure, this Agreement may be terminated 10 days
after receipt of the notice as specified herein.
c. Authorization 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.
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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:________________________________
Teresa Purrington, City Clerk Mayor Heidi Harmon
APPROVED AS TO FORM: ACHIEVEMENT HOUSE, INC.
By:_________________________________
J. Christine Dietrick Crystal Nevosh
City Attorney Executive Director
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