HomeMy WebLinkAboutR-96-0291t
J-96-380
04/29/96
RESOLUTION NO. 9 6- 291
A RESOLUTION ACCEPTING THE BID OF GREGORI
INTERNATIONAL OF FLORIDA, INC., IN THE
PROPOSED AMOUNT OF $3,108,081.00, TOTAL BID
OF THE PROPOSAL, FOR THE PROJECT ENTITLED
"MELREESE GOLF COURSE RENOVATIONS, B-3255;
FROM THE FISCAL YEAR 1995-1996 CAPITAL
IMPROVEMENT ORDINANCE NO 11337, AS AMENDED,
PROJECT NO. 416048, IN THE AMOUNT OF
$3,108,081.00 TO COVER THE CONTRACT COST AND
$10,000 00 TO COVER THE ESTIMATED EXPENSES,
FOR AN ;ESTIMATED TOTAL COST OF $3,118,081.00,
SUBJECT TO THE COURT'S DENIAL OF THE, COCONUT
GROVE CIVIC CLUBS_ MOTION FOR INJUNCTIVE
RELIEF IN THE LAWSUIT ENTITLED COCONUT GROVE
CIVIC CLUB, ET AL., VS CITY OF MIAMI AND
BUNKER'S OF MIAMI, INC., CASE NO 96-3766CA09;
AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONTRACT, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, WITH SAID FIRM.
WHEREAS, sealed bids were received April 16, 1996, for
11MELREESE GOLF COURSE RENOVATION, B-325511, and;
WHEREAS, the City Manager and the Director of the Department
Ordinance No. 11337, as amended, "adopted on
appropriated monies for the proposed amount
$3,108,081.00, for the project entitled "MELR.EESE GOLF COURSE
RENOVATION, B-325511, for the total base bid of the proposal,
based on lump sum and unit prices, is hereby accepted at the
price stated therein, subject to the Court's denial of the
Coconut Grove Civic Club's motion for injunctive relief in the
lawsuit entitled, Coconut Grove Civic Club, et al, vs. City of
.Miami and Bunker's of Miami, Inc.,Case No. 96-3766CA09.
Section 3. The total estimated project cost of
$3,118;081.00 is hereby allocated from' Project No. 416048, as
appropriated by the Fiscal Year 1995-Z996 Capital Improvement
Ordinance No. 11337, as amended. Said total project 'cost
consists of the $3,108,081.00 contract cost and $10,000.00
CAPITAL PROJECT REVIEW:
SUBMITTED BY:
GRIP_ SHEEHAN
WALDEMAR E. LEE
COORDINATOR, CIP
COORDINATOR, CIP
PREPARED.AND APPROVED BY:
APPROVED AS TO FORM AND
CORRECTNESS:
q(�
AJ ' l -
-. r ,
G..MIRIAM MAER
A. QU O,ES, I L
CHIEF ASSISTANT,CITY^ATTORNEY
CITY ATT EY
'W813:GMM:WB:CSK
j
i� The herein authorization is
further subject to compliance
with all requirements that may be imposed by the City
Attorney, including but not
limited to those prescribed by ,
applicable City Charter and
Code provisions.
- 3 4.
96-r 291
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t� MN = MELREESE GOLF COURSE RENOVATION,
B-3255
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OREGORY INTERNATIONAL
$ 1,518,401.20
B.B. 5%
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RYAN°rNCORPORATED EASTERN
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COMMUNITY ASPHALT CORP.
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$ 2,646,215.00
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PRINCE CONTRACTING CO., INC.
$ 2,859,847.50
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1
CITY OF MIAMI, FLORIDA
33
y
INTER -OFFICE MEMORANDUM
rn
The Honorable Mayor and DATE October 19, 1995 FILE
-'Members of the City Commission
SUBJECT
EMERGENCY
ORDINANCE FOR
PC' M
aEFEaENces : CITY GOLF COURSES
Cesar H.
Clty Man ENCLOSURES
RECOMNffiNDATION
It is respectfully recommended that an emergency ordinance be passed amending Chapter
30, Article III, Division 2, of the Code of the City of Miami, Florida, as amended, which
sets forth the rates and charges for City Golf Courses, thereby adding new section 30-57
exempting those City Golf Course facilities operated and managed by private parties
pursuant to agreements having terms of twenty years or more; containing a repealer
provision, a severability clause, and providing for an effective date.
®
BACKGROUND
Resolution 94-584 was passed by the City Commission authorizing the City Manager to
issue a Request for Qualifications to identify persons and/or firms suited for the
management and/or operation of the MelReese Golf Course which is in dire need of
renovation and improvements. Subsequently, only one (1) response was received and
deemed qualified; Bunkers of Miami, Inc. Pursuant to this decision, it is respectfully
requested that Chapter30, Article III, Division 2, of the City Code be amended in the
form of an Emergency Ordinance to allow private parties who operate and manage City
golf course facilities, and have an agreement with a tenor of twenty years or more, to set
forth rates other than those in accordance to City Ordinance.
l
Section 2. Chapter 30, Article III, Division 3, of the
Code of the -City of Miami, Florida, as amended, is hereby amended f
to add new Section 30-57 to provide as follows:
"Seca 30-57. Exempt Facilities.
- The provisions contained in Sections 30-53, 30-54,
30-55 and.30-56 hereinabove shall not apply to those
city golf course facilities. operated and managed by
private parties pursuant to agreements having terms of
The rates, charges and discounts
applicable'to said facilities shall be as established
by said agreements providing for the management of said
facilities."
Section 3. All ordinances or parts of ordinances insofar
as they are inconsistent or in conflict with the provisions of
this Ordinance are hereby repealed.
Section 4. rf any section, part' -of section, paragraph,`
clause~, phrase or word of this Ordinaicre is declared invalid, the
remaining provisions-of.this Ordinance shall not be affected.
Section S. This Ordinance is hereby declared to be an
4
emergency measure& on the grounds- of urgent public need for the
preservation of peace, health, safety, and property of the City
of Miami-, anA&-upgpl.r.ha further grounds of -the necessity to make
the required_. any necessary payments; --to its► employees and
officers*,,: payment, off_ it& debts, necessary and required purchases
of goods and supplies, and to generally carry on.the functions
and duties of municipal affairs.
Section 6. The requirement of reading this Ordinance on
two separate days is hereby dispensed with by an affirmative vote
of not lees thaw four -fifths of the Members of the Commission.
1
-2-
� JI`:Y
"Clubhouse" means the existing or planned permanent clubhouse located on the Golf
Course Facilities.
"Commencement Date" means the date of execution of this Agreement and approval by
the City Commission.
"Fiscal Year" means a period consisting of 365 days. For purposes of this Agreement,
the First Fiscal Year shall commence on the Reopening Date and for the final year of the
term, the Fiscal Year shall end on the 365th day of the 30th year after the Reopening
Date.
"Golf Course" means the portion of the Property (and all improvements thereon) upon
which the eighteen (18) holes of the golf course, driving range and ancillary facilities are
located.
"Golf Course Facilities" means the Property and all existing and/or future improvements,
equipment, furniture and fixtures located within the Property, including the Clubhouse.
"Golf Course Sales & Income'" means all gross sales associated with the Golf Course
Facilities, including but not limited to gross sales derived from greens fees, cart fees,._
cancellation charges, driving range fees, trail fees, Approved Subcontractor Fees,
reservation fees, locker rental, equipment rental, bag storage, equipment repair, charges
for use of any pro shop/clubhouse space and all monies received from all sources
excepting only: applicable sales taxes paid to a legal taxing authority, tips and gratuities
paid by users of the facilities to service providers (so long as such tips and gratuities are
not paid in lieu of sales), returns and allowances documented in accordance with
procedures approved in advance and in writing by the City Manager, his designee or
representative and fees paid for golf lessons and organized golfing schools provided,
however, that employee discounts are not included and recognized as Golf Course Sales
and Income.
"Merchandise/Food and Beverage Income" means all monies received from
Merchandise/Food and Beverage Sales excepting only applicable sales taxes paid to a legal
authori tips and gratuities `paid by users of the Facilities to service providers so
taxingtY. ps
long as such tips and gratuities are not paid in lieu of sales, returns and allowances
documented in accordance with procedures approved in advance and in writing by the
City Manager. All employee meals and discounts are included in the definition of
Merchandise/Food and Beverage Income.
"Net Operating Income" means the amount by which Golf Course Sales and Income plus
Merchandise/Food and Beverage Income is greater than Operating Expenses during each
Fiscal Year.
"Net Operating Loss" means the amount by which Golf Course Sales and Income plus
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95.- 772
Merchandise/Food and Beverage Income is less than Operating Expenses during each
Fiscal Year.
"Operating Expenses" means with respect to any Fiscal Year, all operating, maintenance
and other costs and expenses incurred in connection with the operation of the Golf Course
Facilities including, but not limited to, the Repayment of City's Contribution purchasing
of supplies, leasing of equipment, maintenance and repair of the Golf Course Facilities,
calculated in accordance with generally accepted accounting principles, costs of goods
sold, salaries of all employees employed by Operator for the Golf Course Facilities and
all appurtenant payroll expenses and fringe benefits and payroll taxes of every nature,
charges (including supplies of every kind) for cleaning, security guard service,
exterminating service, trash and disposal service, heat, air conditioning and utilities
(including taxes thereon), water and sewer charges, charges pursuant to service contracts
with independent contractors, charges for legal services, charges for accounting services,
licenses and permit fees, insurance premiums, advertising and promotional fees, fidelity
bonds, excluding any and all property taxes, including real and personal property taxes
and assessments of every nature levied on the Golf Course Facilities.
"Reopening Date" means the date on which the Golf Course Facilities are reopened to...
the public after completion of the renovations or ninety (90) days following the
Completion Date, as defined in Paragraph 5.12 hereof, whichever occurs first.
"Repayment of City's Contribution" means the stipulated amount of Two Hundred and
Seventy -Five Thousand Dollars ($275,000.00) to be paid by Operator to City each year
throughout the Term of this Agreement in accordance with the provisions of Paragraph
7 hereof.
in accordance with the terms and conditions set from herein, and Operator hereby accepts such
engagement. In addition, the Operator shall act as City's Project Manager during the
Construction Period and shall provide such expertise and guidance as appropriate and acceptable
to She City Manager; accomplishing or overseeing the design and renovation of the Property on
behalf of the City, and notifying the City Manager of any and all discrepancies in the design or
work as intended or approved by City contract or the City Manager.
3.2 The Operator acknowledges that Operator has been retained as contract manager
only, and, as such, Operator shall have no interest in the Golf Course Facilities as owner, lessee
or otherwise. All mineral rights and all land ownership rights are hereby reserved by the City.
However, 'the City may contract with or through the Operator for development or use of 'such
rights. The City agrees that no exploration of such minerals shall occur after completion of the
Golf Course Facilities or sale of the Golf Course Facilities without the mutual written agreement
of City and Operator.
4. OBLIGATIONS AND RESPONSIBILITIES OF OPERATOR
4.1 Fiscal Obligations
4.1.1 The Operating Budget for the Golf Course Facilities for the First Fisc&
Year shall be as set forth in Exhibit "B" attached hereto and incorporated herein.
4.1.2. No later than sixty (60) days prior to the commencement of each Fiscal
Year, commencing with the second Fiscal Year, Operator shall provide the City Manager
with a copy of its proposed operating budget projecting all sales and expenses of the Golf
Course Facilities for the next Fiscal Year. Such budget shall be reasonable in light of past
operations and expenses and in light of projected operations for the coming Fiscal Year.
Operator and City Manager shall then discuss such budget in good faith and Operator will
consider any input from the City Manager. Tha City Manager shall approve or
disapprove the budget within thirty (30) days of receipt of such proposed budget. In the
event that the City Manager fails to approve or disapprove the budget within such thirty
(30) days, then the budget shall be deemed approved. In the event the City Manager
disapproves the Budget then he must submit to Operator the reasons for disapproval.
Operator and City Mmi ager shall use their beat efforts to rah an agreement with respect
to the proposed Budget. In the event the parties cannot reach an agreement, then the prior
years budget shall be utilized with up to a five percent (5%) increase in the total budget
P3determinedsolely by Operator.
4.2 Operational Responsibilities
4.24 Operator shall operate and maintain the Golf Course Facilities in accordance
with standards similar to those of other local public first-class daily fee - golf course
facilities.
4
95- 77
4.2.2 Operator shall hire and assign a full-time manager comparable to managers
�at similar public first-class daily fee golf courses. The manager shall be present at the
Golf Course Facilities during normal business hours. At times when the full-time
manager is absent, there shall be a designated assistant manager present. The Operator
agrees to supply the City with background information and telephone numbers for making
contact with the manager and assistant manager.
4.2.3 The Operator shall hire, train, promote, fire and be responsible for all
personnel matters of its employees at the Golf Course Facilities. The Operator shall be
responsible for the conduct of its officers, directors, management and employees who shall
conduct themselves in a manner so as not to cause civil or criminal charge and shall
provide safe, courteous, honest and efficient service to patrons of the Golf Course
Facilities.
4.2.4 The Golf Course Facilities shall be made available to the City on weekdays
for up to four (4) special functions per year between April 15 • November 15 of each
year.. Such special functions may include up to one hundred and forty-four (144) players
each. City and retired City employees playing golf at such special functions shall not be
required to pay any greens fees, but shall pay the cost of cart fees, food and beverage and
any merchandise provided by Operator. -
4.2.5 The City Manager and Operator shall establish emergency procedures for
the Golf Course Facilities and each operation thereon to be implemented in case of
hurricane or other emergency.
4.2.6 Operator shall use its best efforts to ensure that all Approved
Subcontractors shall be trained in their duties and shall be safe, courteous, helpful and
efficient in. carrying out those duties. Further, Operator represents that all of its
employees snail be so trained and shall perform then duties as herem requsred.
\f
more than thirty (30) days after termination or expiration of this Agreement shall be
'deemed, at the election of the City, to be (1) a gratuitous gift to the City or (2) removed
from the Golf Course and stored or disposed of by the City at the cost of the Operator.
42.11 The Operator shall have the right to use all City -owned personal property
at the Golf Course Facilities, and City agrees to make all such property available to
Operator as of the Commencement Date. Any replacement or substitution of such
personal property shall become City personal property upon replacement or substitution.
All City -owned personal property must be returned to the City in its original condition,
normal wear and tear excepted as appropriate during the term of this Agreement, upon
expiration or termination of this Agreement.
5. REIVOVA _ ON OF GOLF COURSE FACILITIES
5.1 Renovatio Immediately following the Commencement Date, Operator shall
initiate all action necessary to implement the following improvements (the "Improvements");
a. Renovate and rebuild greens, tees, fairways and roughs;
b. Rebuild and renovate all sand bunkers (traps);
C. Construct cart paths as *planned;
d. Install new automatic irrigation system;
f
the amount of City's Contribution then the Operator may use up to Three Hundred and Ninety -
Thousand Dollars ($390,000.00) to establish a Reserve Account for repair and replacement of
Golf Course Facilities. In the event that a grant can be obtained by Operator or City, then the
proceeds from such grant shall be used for the purposes set forth in the grant, grant application
04
or any other legal purpose. All grant proceeds shall not be considered part of the City's
Contribution.
53 Operator's RestsonsibilitiU During Renovation In addition to all other duties and
responsibilities set forth herein, the Operator shall have the following responsibilities during the
Construction Period, as the term defined in Section 5.5 below.
5.3.1 Project Manager
Operator shall act as the Project Manager during the planning, design and
construction phases of the Improvements, subject to the terms and conditions established by law
and by this Agreement. Operator's responsibilities include, but are not limited to, the following:
a. Prepare for City's approval, a preliminary renovation plan and proposed
schedule for the Improvements and proposed Construction Budget.
b. Prepare all documentation necessary to obtain all permits and approvals
needed to implement the renovations and construct the Improvements.
C. Assist the City in the procurement of all services needed to implement the
renovations and prepare, for City's approval, all contracts in connection therewith.
d Administer, subject to City's approval, all contracts for the construction of
the Improvements.
5A Contracting Methods and roc dures,
Operator understands and agrees that the procurement of all services for the
-construction of the Improvements is subject to the Code of the City of Miami and represents.and
warrants that 4-is thoroughly familiar with and will strictly observe and comply with all
requirements contained therein.
Due to several factors including: (a) weather considerations which require that the
improvements be constructed during the "dry" season and (b) the importance of various factors
(not only the lowest price) in the awarding of contracts for the construction of the Improvements,
the City has determined that it is more practical and advantageous for the City to use Competitive
Negotiations in the procurement of the services required for the renovations as permitted by and
in accordance with Section 18-52.2 of the Code of the City of Miami. (Notwithstanding the
foregoing, it is agreed that the competitive methods and procedures prescribed in Section 18-52.3
of the Code shall be used if the services described therein are required).
In furtherance of the foregoing, the City and Operator shall, within forty-five (45). days
following the Commencement Date, establish a three (3) member committee to implement the
Competitive Negotiation Requirements established by the Code and make the appropriate
recommendations to the City Manager. The Committee shall consist of a representative of the_.
Department of Parks and Recreation of the City and a representative of the City's Asset
Management Department both to be appointed by the City Manager and a third member
appointed by Operator.
Operator understands and agrees that all contracts procured in accordance with Section
I8-52 shall be subject to City Commission approval.
5.5 * Design and Construction Period - Operator shall take all necessary action to ensure
that the design plan for the Golf Course be completed within five (5) months following the
Commencement Date (the "Design Period"). The Improvements shall be completed during the
fourteen (14) month period immediately following the Design Period (the "Redevelopment
Period"). Tire Construction Period, which combines the Design Period and the Redevelopment
Period, shall not exceed a total of nineteen (19) months from the Commencement Date, subject,
however, to delays caused by Force Majeure as provided for in Section 17 of this Agreement or
delays caused by the City.
5.6 ShMdggh for Construction of Golf Course - The standard for the design and
construction of the Golf Course Facilities shall be comparable to those of similar municipal golf
coursesm Dade County. All Improvements shall become the property of the City immediately
upon being constructed The construction of the Improvements shall be in accordance with the
design development documents (the "Design Development Documents"), construction documents
(the "Construction Documents") and schematic design documents (the "Schematic Design
Documents"), (collectively the "Plans"), all of which shall be subject to the City's Manager's
prior written approval. The approval. by the City Manager of the design plans for the Golf
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9�- 772
Course pursuant to this Section shall not relieve the Operator of any responsibilities in connection
therewith. Specifically, Operator shall be responsible for the submission of such plans to the
appropriate departments of the City or any other governmental authority having jurisdiction over
them and for obtaining all building or other permits or approvals required by law. Operator
acknowledges that any approval given by the City Manager pursuant to this Section shall not
constitute. an opinion or agreement by the City that such plans are sufficient or in compliance
with any laws, codes or other applicable regulations, and no such approval shall impose or imply
any liability on or waive any rights of the City.
5.7 Construction Budget Within one hundred and fifty (150) days after the
Commencement Date, Operator shall prepare and submit to the City, for its approval, a proposed
Construction Costs and an FF&E Budget. The procurement of services and all amounts to be i
paid under each contract shall be made in strict adherence to the approved Construction Costs and
FF&E Budget (the "Construction Budget"). All expenses in excess of the three million nine
hundredthousand 'dollars ($3,900,000) shall be borne by Operator unless they have been
approved, in advance, by the City Manager.
5.8 Changes in Plans and S;cifications - All material changes or additions to the
Plans shall be submitted to the City Manager for his approval, which may not be unreasonably
withheld or delayed The Operator may make changes and additions to the Plans without the City_..
Manager's approval which are not substantial; provided, however, that in no event shall the City
be required to pay any amounts in excess of the Construction Costs, unless the City Manager has
previously approved such payment.
5.9 Procedures for Approval or Disa22avA - Unless otherwise specifically provided
for in the Agreement or in the Event of Force Majeure, any consent or approval required by
Operator from the City Manager pursuant to the terms of this Agreement which has not been
given or denied within twenty (20) business days following receipt of the request for consent
and/or approval by the City Manager, shall be deemed to have been approved by the City
Manager. In the event that the City Manager disapproves or qualifies his approval or consent
within' such twenty (20) business day period, said disapproval or qualification shall be in writing
setting forth the reasons therefor. Any and all requests for consent and/or approval shall be
accompanied by all documents and/or information necessary to permit an adequate evaluation of
some Iby the City.Manager and shall be sent by United States registered or certified mail, return
receipt requesU4 postage prepaid or hand delivered to the City Manager's office.
510 Qator's Obligations where Construction Budget is Exceeded In the event the
Construction Budget is exceeded without City Manager's agreement to pay such excess or if
Operator elects to make Improvements, the costs of which exceed the Construction Cost then, at
the City Manager's request and within five (5) business days thereafter, the Operator shall deposit
m an account to be designated by the City Manager the amount required to pay such excess cost.
5.11 gight of Inspection During Construction of Improvements - During the
Construction Period, the City may inspect, but shall have no duty or obligation to do so, the
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95- 772
construction of the Improvements and the materials being used or to be used in the performance
of the work. If during construction of the Improvements, the City shall reasonably determine that
the materials used or the construction of the Improvements do not substantially conform to the
approved Plans, then the City may give written notices thereof to Operator specifying the nature
of the deficiency; defect, or omission. Upon receipt of such written notification, Operator shall,
within thirty (30) days thereafter, take such steps as may be necessary to correct such defects,
defciencies or omissions unless Operator is granted an extension in writing by the City Manager
or it is impossible to correct such defects within thirty (30) days in which case such defects must
be corrected in a reasonable amount of time. Operator agrees to permit the City Manager or its
designee(s) to enter the Golf Course Facilities at any time for any purpose the City deems
necessary for the duration of this Agreement.
5.12 Construction Schedules and Completion Dates - In the event that Construction of
the Improvements is not completed within twenty-four (24) months after the Commencement
Date, the City may terminate this Agreement upon sixty (60) days written notice to Operator,
unless the delay is caused by an event of Force Majeure or by actions or inaction of the City.
In such event the period for completion of construction shall be extended by a time period
commensurate with such delay. Construction of the Improvements shall be deemed completed
upon the issuance of the appropriate certificate of completion, occupancy or its equivalent for the
entire Golf Course Facilities. The date of such certificate shall be the "Completion Date". �.
5.13 ESMents - Payments for services performed in connection with the Renovations
shall be made in accordance with the corresponding agreement.
5.14 Construction Liens - Operator indemnifies and holds the City, its officials and
employees, harmless from and against all claims for labor and materials in connection with
supplies, equipment, improvements, repairs or alterations of the Golf Course Facilities and the
cost of defending against such claims, including reasonable attorneys' fees. Ten Dollars ($10.00)
is granted as separate and distinct consideration for this indemnity.
4 14 Anil snA Trimimnma _ rnnafnvtinn of A^ Tmrwnvoensnte e1kA11 not enen*mm"e-as
8.1.1. If less than all or substantially all of the Golf Course Facilities or
any individual portions of the Golf Course Facilities are taken by any governmental or
quasi -governmental body the City and Operator shall determine whether in its reasonable
judgment the Golf Course Facilities (or the applicable portion thereof) can continue to be
operated for its intended use. In the event the Operator decides to continue the operation
of the Golf Course Facilities, then the Operator shall be entitled to use such portion of the
proceeds of the condemnation award paid in connection with such taking as determined
by the. Operator and the City to be necessary to restore the remaining portions of the Golf
Course Facilities (or the applicable portions thereof) and/or to make additional
improvements as are necessary to continue the operation of the Golf Course Facilities (or
the applicable portions thereof);
8.1.2. If all or substantially all of the Golf Course Facilities (or applicable
portion thereof) are taken by any governmental agency this Agreement shall terminate and
neither party shall have any further right or obligations hereunder. In such event the
parties shall be entitled to a portion of the condemnation award based on the amount of
damages resulting to each party by reason of such taking. In the event that a single award
is made ` without separately determining the respective interests of the parties and the
parties cannot agree as to their respective portions of the award within twenty (20) days
after the final determination of the amount thereof, then the City and Operator agree t
submit the matter to a court of competent jurisdiction for a final determination of their
respective shares.
8.2 If the Golf Course is relocated for any reason, including condemnation, the
Operator shall act as the City's Project Manager in the location, design and construction phases.
The City shall execute a new contract with the Operator for management of the new site with the
same Management Fee term as set forth herein.
9. USE ACTHORMATIONS AND 61ANDAM
9.1 Operator agrees that the Golf Course Facilities will be used by Operator as a golf
facility with related golf activities, recreational amenities, hospitality facilities, and amusements,
open to the general public upon the terms and conditions herein provided.
9.2 TOperator small take such actions as may be necessary to promptly comply with
he
any and all orders or requirements of any federal, state, county or municipal authority having
Jurisdiction over the Golf Course Facilities, issued in the exercise of such jurisdiction, with
respedilto the operation, management or maintenance thereof. ' Except in the case of an
emergency, Operator shall not take any action in response to a governmental order or requirement
without notifying the City Manager. The Operator shall not take any action with respect to any
governmental order or requirement that City is contesting and has notified Operator of the same,
or has notified Operator of its intention to contest; provided, however, that City shall proceed
with all due diligence in contesting any such governmental order or requirement and shall use
best efforts to prevent a shut -of of essential services to the Golf Coarse Facilities.
12
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f:
t
93 The Operator shall, in the name of the Operator (and not in the name of the City),
select, employ, supervise, and discharge all employees and personnel necessary for the operation
and maintenance of the Golf Course Facilities. All such employees shall be employees or
independent contractors of Operator and shall not in any event be deemed employees of the City.
Operator shall be responsible for timely compliance with all local, state and federal labor and tax
laws, including, without limitation, OSHA, federal withholding tax laws, Worker's Compensation
Insurance, FICA, MICA and federal and state unemployment insurance laws.
9.4 The Operator shall purchase or lease all materials necessary or desirable in
Operator's reasonable judgment and as approved in the Operating Budget by City Manager for
the operation or maintenance of the Golf Course Facilities. The Operator agrees to use
reasonable efforts to secure contracts with minority owned companies, where available and where
cost, service level and quality are comparable to other companies.
9.5 The Operator shall make arrangements, negotiate and enter into contracts for
exterminating services, vending services, HdAC, security, cleaning, landscaping, trash collection
and such. other services as Operator reasonably deems advisable for the operation of the Golf
Course Facilities. The Operator agrees to use reasonable effort to secure contracts with minority
owned companies, where available and where cost, service level and quality are comparable te„
other companies. The City shall cover under their blanket deposit, water, electricity, gas and
telephone.
9.6 The Operator shall apply for, and use its best efforts tb obtain and/or renew all
licenses, permits, and certificates required in connection with the operation of the Golf Course
Facilities, including a liquor license. If required by governmental authorities, licenses shall be
obtained in the name of the City and all documents to be signed in connection with the
application for such licenses shall be executed by the City.
9.7 The Operator shall bill, collect and administer all Golf Course Sales and Income
and Merchandise/Food and Beverage Sales and shall cauto be instituted any and all legal
se
actions and proceedings which Operator deems necessary and desirable to collect charges, fees,
or other Golf Course Sales and Income and Merchandise/Food and Beverage Sales.
9.8 Mh a OpeWrs, subject to the City's and, where required, City Commissions
approval, shall adopt, pubfish, and enforce rules, regulations, and policies for the operation and
use of_ the Golf Course Facilities, including, without limitation, hours of operation, greens fees
and -otlfer prices comparable with other first class public golf facilities, selection of tee times,
dress code,conduct of players and the like. Subject to the City's and, where required, City
Commissions approval, the Operator shall, be able to set and periodically change all golf related
fees at the Golf Course Facilities except that City of Miami residents shall always have a
minimuffi of a ten percent (10%) discount on greens fees and membership fees and retired City
employees shall play free of a greens fee charge during designated times determined by Operator.
13
95 772
r
9.9 The Operator shall provide or cause to be provided customary food, beverage, on
-
course service, restaurant, banquet, and bar service at the Golf Course Facilities, and such other
services as may be approved by the City Manager.
9,10 The City'sha11 advise the Operator promptly with confirmation, in writing, of the
service upon the City of any summons, subpoena or other similar legal document, including but
not ` limited to letters,notices, and other communications setting forth or claiming an actual or
alleged potential liability to the City, Operator or Approved Subcontractor(s) or the Golf Course
Facilities and shall cooperate with Operator in connection with any legal proceedings arising out
of Operator's; management of the Golf Course Facilities.
9.11 The Operator shall advise the City promptly with confirmation, in writing, of the
service upon the Operator of any summons, subpoena or other similar legal document, including
but .not limited to, letters, notices and other communications setting forth or claiming an actual
or alleged potential liability or incumbrance to the City, Operator, Approved Subcontractor(s),
or the Golf Course Facilities, and shall cooperate with the City in connection with any legal'
Proceeding arising in connection with the operation of the Golf Course Facilities.
9,12 The Operator shall have the right, with specific prior approval of the City Manager
to use Affiliated Parties in fulfilling its obligations hereunder, so long as use of the Affiliatek.
Party is not more costly or otherwise detrimental to the City, in the City's sole discretion.
9.13 Notwithstanding anything to the contrary contained herein, Operator and City agree
as follows with respect to operation of Golf Course Facilities:
9.13.1 The Golf Course Facilities shall be operated as a public facility open
to all players upon payment of the applicable use fees.
9.13.2 Fees for the Golf Course Facilities shall be established by Operator,
subject to City Manager's approval which shall not be withheld if such fees are
comparable to other local first class golf courses. Fees charged at local first-class daily
fee golf courses like, but not limited to, Key Biscayne golf course shall be deemed
comparable. Operator shall have the exclusive right, without City Manager approval, to
charge fees at any rate less than other local first-class daily fee golf courses.
9.13.3 With respect to material matters in connection with operation of the
Golf Course Facilities, Operator agrees to operate the Golf Course Facilities according to
:a written program which shall list all activities which may significantly infringe upon
availability of the public to use any facility or service at the Golf Course Facilities. City
may deny the use of the Facilities for any activity that infringes upon public use.
9.14 Inspection. The City and its representatives shall have the right at all reasonable
times to enter upon the Golf Course Facilities for the purpose of inspecting the same, provided,
however, that City shall use all reasonable efforts not to disturb the and operation
14
95-, 77`�
of the Golf_ Course Facilities by Operator and persons then lawfully using the Golf Course
Facilities,
10. INSi,JRANCE AND INDEMNIFICATION
10.1 Throughout the Term, Operator shall, as an Operating Expense, obtain and
maintain the following insurance or cause such insurance to be maintained with respect to the
Golf Course Facilities:
10.1.1 Insurance against loss or damage by fire, flood, windstorm and other
casualties, including vandalism and malicious mischief, within the meaning of "extended
coverage" covering all buildings and contents, including the Clubhouse, located on the
Property insuring one hundred percent (100%) of the full insurable value of all buildings
and contents on the Property. The term "full insurable value shall mean actual
replacement value of the buildings and contents on the Property. This property coverage
may have up to a five percent (5%) of "full insurable value" deductible.
10.1.2 Comprehensive, general public liability insurance and providing for
Completed Products coverage, Host Liquor and Liquor Legal liability as applicable for
bodily injury, death or property damage occurring upon, in or about the Golf Course.
Facilities covering both Operator and City as insured, with minimum limits of five million
dollars ($5,000,000.00) for bodily injury or death for any one occurrence or accident and
one million dollars ($1,000,000.00) for property damage; and up to, in Operator's sole
discretion, a ten thousand dollar ($10,000.00) deductible unless the Operator and City.
agree otherwise.
10,13 Worker's Compensation Insurance as required by Chapter 440, Florida
Statutes.
10.1.4 Comprehensive Automobile coverage covering owned and hired vehicles
with limits as set in Paragraph 10.1.2 above.
10.2 The Operator may obtain the aforementioned insurance and coverages as part of
Operator's master policy namin Operator as insured or additionally insured if appropriate.
10.3 17he Operator may elect to be included on any City insurance policy with coverages
set forth above and pay to the City any actual increase in premium attributable to such coverages.
10.4 All policies required to be maintained under this Paragraph 10 shall, unless
otherwise approved by the City Manager, be written by companies of recognized standing
qualified to do business in the State of Florida and may be provided by a blanket policy covering
the Golf Course Facilities portions thereof and other properties. Such policies shall contain
waiver of subrogation clauses and shall provide that they may not be canceled without thirty (30)
days' prior written notice to each insured. Operator shall furnish City with copies of the original
15
9 5 7 7`
policies or certificates of insurance, together with evidence of payment of the premiums therefor,
and thereafter Operator shall furnish City with evidence of the renewal of such policies and.the `
payment of the premiums therefor not less than thirty (30) days prior to the expiration date of
such policies. The failure of Operator to provide such evidence, whether or not objected to by
City, shall not be deemed a waiver of Operator's obligation to maintain the insurance required
hereunder. City shall have the right to require higher or lower minimum limits of coverage than
those contained herein to the extent necessary to take into account the effects of inflation, costs
of coverage, claim history of the industry or other reasonable cause during the Term. Unless
otherwise approved by the City Manager, all policies required above shall be issued by companies
with no less than a rating of A as to management and no less than XV as to strength, as rated
by Best's Key Rating Guide or as accepted by the City Manager.
10.4.1 All applicable proceeds from the insurance coverage described in
paragraph 10.1.1 hereof 'shall be applied in whole. or in part to the restoration or
replacement of the damn ed or destroyed portions of the buildings and contents on the
Property resulting in the payment of such insurance proceeds (the "Restoration Work").
Any insurance proceeds remaining after the completion of the Restoration Work shall be
put in an Operator's reserve account for repairs and replacement funding.
10.4.2 Operator shall indemnify and hold City harmless from any and alit.
claims, liability, losses, and causes of action (including attorneys' fees and court costs,
whether in preparation for trial, at trial, or on appeal) which may arise out of the
Operator's performance of this Agreement, except for damages caused solely by the
negligence or willful misconduct of City. Operator shall defend all such suits, in the
name of the City when requested by the City, and shall pay all costs and judgments which
may issue thereon. The cost of such defence shall be deemed an Operating Expense.
10.5 The City shall be solely responsible for identifying funding any repairs and
replacement of Golf Course Facilities which insurance proceeds are inadequate to properly fund
any such repairs or replacements. The City shall fund within one hundred and eighty (180) days
of notice from Operator such Golf Course Facilities repairs and replacements.
11. USE OF CITY OR GOLF COURSE FACILITIES' NAMES AND LOGO.
The Operator may use the name and/or logo of the City or Golf Course Facilities
only in connection with marketing operation of the Golf Course Facilities. The Operator shall
use such names and logos in a tasteful manner and upon objection by the City shall immediately
cease use of the names or logos in the objectionable fashion.
12. EVENTS OF 12FIAULT
12.1 The occurrence of any one or more of the following events shall constitute an
Event of Default hereunder:
16
95 772` .
12.1,1 Default in the payment of any sum due under this Agreement which
default coritinues for thirty(30) days after written notice thereof.
12.1.2 Default in the performance or observance of any of the material
non -monetary terms, agreements, covenants or conditions of this Agreement, which
default continues for forty-five (45) days after receipt of written notice thereof, provided
that, if such default cannot reasonably be cured within forty-five (45) days, no Event or
Default shall be deemed to occur so tong as the defaulting party has commenced and is
diligently implementing a cure within such forty-five (45) period and pursues such cure
to a timely conclusion.
12.1.3 The. application by any party hereto (or its corporate parent) for, or
consent to, the appointment of a receiver, trustee, liquidator or custodian (or similar
official) of it or of all or a substantial part of its assets, or if any party (or its corporate
parent) shall (i) be unable, or admit in writing its inability to pay its debts as they mature,
(H) make a general assignment for the benefit of creditors, (iii) be adjudicated as bankrupt
or insolvent, (iv) file for voluntary petition in bankruptcy or a petition or an answer
seeking reorganization or any arrangement with creditors or to take advantage of any
insolvency law, (v) file an answer admitting the material allegations of a petition filed
against it in any bankruptcy, reorganization or insolvency proceeding; (vi) take any^,
corporate action for the purpose of effecting any of the foregoing; or if an order,
judgment, or decree shall be entered by any court of competent jurisdiction approving a
petition seeking reorganization or appointing a receiver, trustee, liquidator or custodian
(or other similar official) of any party hereto (or its corporate parent) or of all or a
substantial part of its assets, and such order, judgment or decree shall continue unstayed
and in effect for a period of ninety (90) consecutive days.
12.2 If any representation or warranty contained in this Agreement shall be false or
misleading in any material respect, and the condition making such representation or warranty
remain uncorrected for thirty (30) days after receipt of written notice hereof, the failure to correct
such condition shall constitute an Event of Default; provided, however, that if such conditions
cannot reasonably be corrected within thirty (30) days, no Event of Default shall be deemed to
occur hereunder so long as the defaulting party has commenced and is diligently implementing
a cure within such thirty (30) day period and pursues such a cure to a timely conclusion.
13. RIGIM AND YdF_MDIES UPON THE OCCURRENCE OF AN EVENT OF
DEFA�La.
13.1 Default by City. Upon the occurrence of any Event of Default by City, Operator
may, at its option, either terminate this Agreement or sue for specific performance or exercise
whatever other rights or remedies it may have at law or in equity.
13.2 Default by ggm=r. Upon the occurrence of any Event of Default by Operator,
City may, at its option, either terminate this Agreement or sue for specific performance or
17
95- 772
exercise whatever other rights or remedies it may have at law or in equity.
14. REPRESENTATIONS AND WARRANTIES.
14.1 Without limiting the representations, covenants and warranties of City contained
elsewhere in this Agreement, as a material inducement for Operator to enter into this Agreement,
City represents and warrants to Operator (and unless otherwise specified, such representations and
warranties are true as of the date hereof and will continue and be effective at all times, as if,
continuously reiterated, during the term of this Agreement) that:
14.1.1 City is a political subdivision of the State of Florida duly incorporated
under the laws and Constitution of the State of Florida. Subject to obtaining the approval
of City Commission, City has full power and authority to execute and deliver this
Agreement and all documents, if any, now or hereafter to be executed and delivered by
it pursuant to this Agreement (collectively "City's Documents") and to perform all
obligations arising under this Agreement and under City's Documents. This Agreement
and City's Documents will each constitute the legal, valid and binding obligations of City,
enforceable in accordance with their respective terms, covenants and conditions;
14.1.2 This Agreement and City's Documents do not and will not contravene ang,
provision of the powers of City, any judgment,.order, decree, writ or injunction, or any
provision of any applicable law or regulation, and the delivery of this Agreement and
City's Documents will not result in a breach of, constitute a default under, or require
consent pursuant to any law or regulation or any credit agreement, lease, indenture,
mortgage, deed of trust, purchase agreement, guaranty or other instrument to which City
is a party or by which City is bound or affected;
14.1.3 Pursuant to all applicable laws, regulations, rules or ordinances
promulgated, issued or enforced by any and all local, state or federal governmental bodies,
agencies or organizations having any jurisdiction over the Golf Course Facilities, the Golf
Course Facilities may be operated, maintained and used for golf course purposes and other
related, ancillary or subordinate uses.
14.1.4 Some utilities necessary to operate and maintain the Golf Course
Facilities may not be available within the Golf Course Facilities or at the boundary thereof
in sufficient capacity to operate or conduct the uses described in paragraph 9.1.3 hereof.'
14.1.5 Except as otherwise set forth in this Agreement, no person, group,
association, entity or organization has any priority, rights, privileges, membership rights,
or other entitlement to the Golf Course Facilities or the right to use the same, including
any tenant's association, membership, organization, club or other similar entity.
14.1.6 The City has the necessary funds to re -design, manage the construction and
construct the Golf Course Facilities upon the execution of this Agreement up to the
18
95- 772
amount of the City's Contribution.
14.1.7 The Operator may charge fees for the Golf Course Facilities comparable
to other local first class golf course facilities.
14.2 Without limiting the representations, covenants and warranties of Operator
contained elsewhere in this Agreement, as a material inducement for City to enter into this
Agreement, Operator represents and warrants to City (and unless otherwise specified, such
representations and warranties are true as of the date hereof and will continue and be effective
at all times, as if continuously reiterated, throughout the term of this Agreement) that:
14.2.1 Operator is a joint venture duly authorized and in good standing
under the laws of the State of Florida. Operator has full power and authority to execute
and deliver this Agreement and all documents, if any, now or hereafter to be executed and
delivered by it pursuant to this Agreement (collectively, "Operator's Documents") and to
perform all obligations arising under this Agreement and under Operator's Documents.
This Agreement and Operator's Documents will each constitute the legal, valid and
binding obligations of Operator enforceable in accordance with their respective terms,
covenants and conditions; and
14.2.2 This Agreement and Operator's Documents do not and will not contravene
any provision of the powers of Operator, any judgment, order, decree, write or injunction,
or any provision of any applicable law or regulation, and the delivery of this Agreement
and Operator's Documents will not result in a breach of, constitute a default under, or
require consent pursuant to any law or regulation or any credit agreement, lease,
indenture, mortgage, deed of trust, purchase agreement, guaranty or other instrument to
which City is a party or by which Operator is bound or affected.
15. Q> MT EMJQYIVI�NT.
City covenants that, as long as Operator shall perform all of the terms and
conditions contained herein on the part of Operator to be observed or performed, Operator may
manage the Golf Course Facilities during the Term without molestation or hindrance by City or
anyone claiming through City.
' 16. ,; )F'�fltCE 1VIAJEURE.
Performance may be delayed and such delay shall not be deemed to be an event
of default where . it is the result of an event of Force Majeure (the "Event of Force Mayeure").
Force Majeure shall include acts of God, weather or unusual severity, fire, earthquake, flood,
lightning, hurricane, explosion, action of the elements, war (declared or undeclared), invasion,
insurrection, riot, mob violence, sabotage, malicious mischief, acts of the public enemy, failure
of transportation, strikes, lockouts, action of labor unions, other industrial disturbances,
:condemnation, public requisition and laws rules, regulations or orders of government, breakage
19
95- 772
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_..� EXHIBIT "B"
95. 772
Food and 0~490
Adv
16,000.00
Ctsh
1400.00
Chins. OWf and SNvsrwars
$2.000.00
Ctaanin Ssniet
181000.00
Cradht Card Cast
f 2.000. 00
Elaatrio
s 14,000.00
E omant
t2.000.00
Flowart and Owmations
62.000.
Grounds and ILA tocing02.000.
Guts arw C1san' SuooYad
18.000.00
InaWanCt
t 14,000.00
Khtohsn and Bar Su ss
$3.000.00
i1when Gat,
$4.000.00
Khtehtn Layrodry
t2A00.00
and DfVs2.000.00
UPS u
f3,500.00
Msnlr• u+d Ticksta
62.000.00
Mtscs(Iww"
• 1.500.00
Musk 1
81.000.00
Peow irld DWoosaifts
43.000.00
Promotlan 1
113.000.00
Rtosdn and McM►etnsnn
6e.000.00
•1n 1
812.000.00
8500.00'
alophow
t.
IME
62.000.w
trrar
t�.000.00
t t l .400.00
Tam
•ae
ToSd I41M•d />
•�.risarn.00
W,