HomeMy WebLinkAbout04. Approve 10 Year Agrmt w-Z Gold Food & Beverage Srvcs for Rio Hondo Golf ClubAPPgOVED By
TOHONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL CITY MANAGER
FROM: OFFICE OF THE CITY MANAGER
BY: PAMELA PASSOW, DIRECTOR OF PARKS AND RECREATION
That the City Council approve a ten year agreement with Z Golf Food & Beverage
Services, LLC for the operations of food and beverage concessions at the Rio Hondo
Golf Club.
The City first entered into a ten (10) year agreement with Shelton Food and Beverage,
Inc. to provide food and beverage operations at the Rio Hondo Clubhouse in 2004, the
extended the agreement to 2019. 1
The City released a Request for Proposals for the operation of food service concessions
at the Rio Hondo Golf Club on March 18, 2019 (Attachment A). Two companies
submitted proposals by the deadline of April 15, 2019: Z Golf Food & Beverage
Services, LLC (Wedgewood/ZGol� and OIDMR Group. The current concessionaire,
Shelton Food and Beverage, Inc., did not submit a proposal.
Wedgewood/ZGolf is a family owned business that specializes in operating golf club
concessions. The Zaruka family leads the company with John Zaruka as the founder
and CEO and Bill Zaruka as the current President. Other family members work in
different capacities within the company. They currently manage 36 businesses with 20
of them being golf clubs. They have 33 years of experience in the golf banquet industry.
A few golf clubs in the area include Brentwood Golf Club in Brentwood, The Golf Club of
California in Fallbrook, The Champions Club at the Retreat in Corona, and Vellano
Country Club in Chino Hills.
The golf course at Vellano recently closed, but the club house is still operating with
ZGoIfNVedgewood managing.
APPROVAL OF RIO HONDO GOLF CLUB CONCESSIONAIRE AGREEMENT
NOVEMBER 20, 2019
PAGE 2
ODMR Group experience primarily with restaurantsplus other individualexperience
with fitness, catering, real estate, and military. Their proposal does not show any golf
course experience. • • • has been in business foronly •
A review panel • r of - •- from .•- office, Finance
Department, and Parks and Recreation Department reviewed the proposals. They
reviewed the proposals and used the following criteria: experience with preference with
similar restaurant and banquet facilities with a preference for golf experience,
references; financial condition of - o • economic • •p•sal; completeness of
• •p•sal; length of - respondent has been established operator of ••• service
operations;and experience • proposed •- - -. Based on - criteria,the
review panel unanimously chose Wedgewood/ZGolf.
Once Wedgewood/ZG01f became the preferred • - the City contracted with
consultant -y completed . full financial reviewof -a'•- o •
thresholdwell as reviewing the proposed lease terms of comparable facilities (Attachment B). The
financial review revealed that they are fiscally sound and able to have the finances
capable of handling a large operation such as Rio Hondo Golf Club concessions. After
reviewing the proposed lease terms, they recommended a flat percentage of gross
revenue with a minimum met
The Golf Subcommittee met four times (July 30, August 29, September 6, and
November 5, 2019) to delve into the two proposals, request defined discounts for
Downey Non -profits, interview Wedgewood/ZGolf, and thoroughly review the proposed
agreement with Wedgewood/ZGolf.
After reviewing the proposals� Wedgewood/ZGolf has significantly more experience
managing golf banquet services similar to Rio Hondo Golf Club. ODMR Group has local
business experience, restaurant experience, and other business ventures.
Looking at the menus, it appears that ODMR Group is looking to expand the type of
•••' in the restaurant and banquets an• elevating - type of '••r for each - For
Wedgewood/ZGolf, more effort seemsto be • the golfers with the snack bar and
special golf tournament menus. By having a one-stop shop for weddings and other
special banquets, customers will be able to book all aspects of their event from flowers
to entertainment and other•• ad
Both proposers committed to give Downey non -profits discounts. For ODMR Group, the
discount proposed was 10-25% depending on the number of attendance at a banquet or
in the restaurant for smaller groups. 25% discount would be for groups over 75, which
would include many of the banquets. Most of the service club meetings would get 10-
15% off since most are under 50 people.
--RKlH-NQOGOLFCLUB CONCESSIONAIREAGREEMENT
NOVEMBER 2O.2O1Q
Wedgewood/ZGolf proposed a 20% discount for Downey non -profits on their banquets
and events. For groups under 30, they would work with the group as that is their normal
minimum. Discounts would be available Monday -Thursday without restrictions and
minimums required for Friday, Saturday, and Sunday evenings. The City can also
designate seven dates per year that Downey Non -profits can use the discount on Friday
or Sunday nights with the minimum requirements waived.
In the second year of business, both proposers project revenue of over $1.8 million
dollars. Both ODMR Group and Wedgewood/ZGolf would be at 9% in that range, so the
revenue to the City would be about $162,000 for the year. If ODMR Group makes over
$2 million dollars, the percentage drops to 8%. Wedgewood/ZGolf percentage to the
City would remain at 9%.
At the September 6, 2019 Golf Subcommittee meeting ' there were further discussions
regarding the two proposals for Rio Hondo Golf Club concessions. At that meeting, it
was suggested to change the term of the agreement from ten years to a five year
agreement with a five year extension at the City's request.
The new term was presented to Wedgewood/ZGolf of changing the term from the ten
year to the five plus five year agreement. They responded that the shorter term would
not be feasible which include the large capital investment of a minimum of $100�000 to
$125 ' 000 (including adding a wedding ceremony site, improvements to the snack bar,
and purchase of additional equipment needed for operations); start-up costs of about
$90,000 for marketing, technology, and communication; transfer of the liquor license
from current vendor (cost to be negotiated); estimated operating at a loss until about the
third year, but could be longer since they need to become an established business to
make it profitable; the additional support needed from their headquarters for the start-up
of the new site. Ten years is the minimum term they consider for starting a new site, like
Rio Hondo Golf Club.
RSG reviewed the agreement and the length of (see Attachment X). Their assessment
which supports having an initial ten year agreement, as is the industry standard for this
type of operation.
APPROVAL OF RIO HONDO GOLF CLUB CONCESSIONAIRE AGREEMENT
NOVEMBER 20,-2019
PAGE 2
There are several items in the agreement that could trigger the termination clause of the
agreement. Below are the items that need to be adhered to and where they can be
found in the agreement:
II. RENT/REPORTING
• Failure to pay the monthly rent, annual payment if 9% of revenues exceeds rent,
monthly and annual reports
V. GENERAL RESPONSIBILITIES
• Vendor's employees must perform services in a professional manner
-Vendor must keep the facility clean at all times
• Employees must be neat and follow the dress code
• Vendor must produce and maintain a master calendar
-Any signage and improvements to snack bar must be approved by City Staff
• Food and beverages sold by Vendor shall be subject to reasonable approval or
rejection by City Staff
• Vendor must produce a price list annually to City Staff to be reviewed for approval
-Vendor must adhere to hours listed in agreement
• Vendor must keep all permits and licenses current and abide by all laws and
ordinances
• Vendor must pay all relevant taxes
• Vendor must get approval to install vending machines from City
-Vendor must monitor and correct any safety deficiencies
• Marketing in City newsletter, brochures, social media, or on the City's website must
be approved by City in advance
• Permanent and displayed advertisements must be approved by City Staff
-Vendor must invest $100,000 by July 1, 2021 and provide records of investment
-All improvements must be approved by City
Vendor must maintain and repair equipment, furniture, flooring and keep
presentable at all times
• Vendor must use china, glass, and flatware in the restaurant and banquet halls
• Vendor must obtain and keep insurance current
VII. PERFORMANCE DEPOSIT
-Vendor must submit a $100,000 deposit for the duration of this agreement
XV. LICENSEE IMPROVEMENTS AND ALTERATIONS
-Vendor must get approval before making any improvements or alterations
If Wedgewood/ZGolf does not adhere to the agreement in full, including all items above,
the City has the ability to terminate the agreement. See section below:
APPROVAL OF RIO HONDO GOLF CLUB CONCESSIONAIRE AGREEMENT
NOVEMBER 20, 2019
PAGE 2
• If Vendor defaults in the performance, then the City can terminate the agreement if
not corrected within the time frame
Fiscal Responsibility
Quality of Life, Neighborhood & Infrastructure
• Engagement
Wedgewood/ZGolf will pay the City a minimum rent of $100,000 for year one and $150,000
annually for the remainder of the agreement or 9% of revenue, whichever is greater.
ATTACHMENTS
Attachment A: Request for Proposal
Attachment B: Agreement between the City of Downey and Wedgewood/Z o
Attachment C: Wedgewood/ZGolf •••
Attachment D: RSG financial Review
Attachment E: RSG Review • term
Attachment F: Letter from Wedgewood/ZGolf
For O of Food Service Concessions at the
City of Downey Rio Hondo Golf Club
1
1. Project Overview
3
II. Scope of Services
7
III.. Proposal Submittal Requirements
_ 12
1V. Standard Proposal Information
1
V. Sample License Agreement` _._. ro ., ... ry_ _
+Y4 gi 20
VI. Attachments
24
0
•
1'
Wroduction
The City of Downey ("City") is soliciting proposals from experienced and capable parties
interested in operating the Rio Hondo Golf Club ("Club") food and beverage operation. The
successful Respondent will be responsible for providing food, beverage, bar, and
banquet/meeting services to golfers and non -golfers, and operating and maintaining restaurant
facilities (kitchen, restaurant and bar, banquet facilities, snack bar, patio area, and beverage
cart).
The Respondent shall demonstrate the ability to perform in this type of business, clearly
articulate achievable plans for the Club's food and beverage operation, and document
compliance with appropriate laws and regulations. The successful Respondent will demonstrate
the ability to implement a food and beverageconcessionprogram that meets or exceeds the
objectives of the City as well as incorporates innovative ideas appropriate for Club's food and
beverage operation.
It is the City's intent to award a contract with a term of ten (10) years.
For purposes of this RFP, the term "Authorized City Representative" shall mean the Director of
Parks and Recreation, or her designee.
Goals
The primary goals of the City with respect to the Club's operation are to: (1) to develop -a
professional service-oriented and responsive food and beverage service program, which places
customer satisfaction, facility cleanliness, consistent food quality, and revenue growth as its
priorities; (2) provide a high level of service to golfers and golf groups and to work cooperatively
with the City and Head Golf Pro concessionaire at all times; and (3) to ensure that the City
receives adequate and appropriate compensation from the private business contracted to
operate on public property.
Background
The Club is a -well-established public facility located in the City of Downey. The site (See
ATTACHMENT "1") is situated approximately 12 miles southeast of the Los Angeles Civic
Center and five miles from the Orange County line. It is geographically centered within
Southern California's freeway system and is conveniently located within 30 minutes of travel by
the majority of residents and visitors in Los Angeles County, as well as the Orange County area.
The site can be directly accessed by four freeways, which are generally located near the City's
borders:
• Golden State Freeway (1-5) along the north border;
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• Century Freeway (1-105) along the south border;
• San Gabriel River Freeway (I-605) along the east border; and
• Long Beach Freeway (1-710) along the west border.
The Club is located on Old River School Road between two major highways, Florence Avenue
and Firestone Boulevard. In addition to these two highways other highways, including
Lakewood (Rosemead) Boulevard, Paramount Boulevard, Garfield Avenue and Imperial
Highway, also provide regional access to the site.
History of Rio Hondo Golf Club
The Club was built in 1924 and owned by the James L. Stamps family. In November 1969, the
City acquired the Club for $4.3 million, and shortly thereafter -implemented improvement
measures to the Golf Course, including a two-tiered driving range.
In 1980, the City added a new golf shop, cart storage area, and a banquet facility. In 1992, the
City completed the Golf Course Master Plan, which identified a major golf course renovation
program and subsequent upgrades to the clubhouse, golf shop and storage facilities. A $5
million course renovation program was completed in September 1994, allowing the City to
achieve its goal of having an upscale and challenging golf course with solid financial
performance.
In the past two years, the Golf Clubhouse has undergone additional renovations, including new
flooring, painting, lighting, new furnishings, and sound system. The City consistently reinvests in
the Golf Clubhouse and Golf Course to continue keeping the standards at the high level
expected of the Downey community.
Existing Club Facilities
The Golf Course in an upscale 18 -hole regulation course that is beautiful, affordable and
engrossing. The Golf Course presently supports many tournaments, and entertains a total of
about 55,000 rounds of golf per year. The Golf Course has many scenic and intricate features,
including four beautiful lakes with waterscape features, large mature trees, strategically located
sand bunkers and a contoured terrain.
The Club also contains many complimentary elements, including:
• Clubhouse
• Golf Professional Shop
• Cart Storage Area
• Driving Range
Locations of these facilities are illustrated in ATTACHMENT 1.
The 30,000 square -foot Clubhouse was built in 2004. It is a two-level structure that occupies a
compact building footprint. The upper level has impressive views of the Golf Course from the
banquet and bar/dining areas totaling approximately 23,000 square feet. The lower level
includes a 90 -stall cart storage area, 900 square foot golf shop and snack bar. The upper level
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provides a 300 person banquet hall (divisible into three rooms) and 80 -person bar and dining
area, administration offices, formal lobby, brides room, executive dining room and full service
commercial kitchen. The parking area provides approximately 300 parking stalls.
1.02
Operation an aintenance
The Club is managed by the City via three operation and maintenance contracts'.
Li Golf Professional Contract -- Contract with PGA member Stephen G. LaBarge to operate
the golf shop and driving range, control play on the Golf Course and secure tee -time
reservations.
Li Goff Course Maintenance Contract -- Contract with Satsuma Landscape and Maintenance
Company to maintain the greens, irrigation and other Golf Course related features.
Li Clubhouse Contract— Addressed in this RFP.
It is expected that the successful Respondent will work cooperatively with the other two
contractors of the Club.
The anticipated schedule for this solicitation is as follow&
Date
Activity
3/18/19
Release RFP
4/1/19, 10 a.m.
4/3/19
4/8/19
Pre- pLopDeal Meetin and Site Visit
Deadline for Submitting Questions
NecessaAddendums Issued
4/15/19, 5_�.m
4/22/19
Proposal Deadline
Interviews Conducted
5/14/19
Contrac.I.Arove�dby City Council
*Dates subject to change,
1.04 1
Financial Considera io
The successful Respondent shall pay the City Operating Fees, which may comprise either a
guaranteed base annual minimum (to be paid on a prorated monthly basis) plus percentage of
annual gross receipts, or a straight percentage of gross receipts. Proposed rent percentages
may be further segregated by type of revenue;— e.g., food, beverage, banquet — and/or by
5
revenue threshold - e.g., x% up to $300,000 gross revenues, x%$300,000 to $500,000, etc.).
In either case, a minimum monthly payment must be presented.
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2.01
.. of Work
-
The successful Respondent will be granted a License from the City to operate and maintain the
restaurant, bar, snack bar and banquet facilities on a daily basis, year-round pursuant to a
License Agreement. The Licensee will provide all personnel, labor, services and special skills
required to successfully operate the entire food and beverage enterprise. The City expects the
Licensee to provide the customers with excellent service, high food quality and varied selection.
The length of the Licensee Agreement is negotiable and will be determined at the time of award.
Pricing will be at a competitive price structure similar to other comparable public golf courses in
Los Angeles and Orange Counties. The City will perform periodic reviews to ensure approved
pricing is implemented, enforced and practiced.
Menu Profiles = -Minimum Requirements
1 ,: Breakfast- offerings to include full range of continental -style cold or cooked items
(omelets, etc.). Items served hot would include breakfast entrees/meals. Cold food
would include a variety of juices and fruits. Most items are to be prepared with fresh
ingredients.
2. Luncheon offerings to include a full range of American cuisine that will offer a wide
selection of hot and cold items, including desert selections. Most items_ are to be
prepared with fresh ingredients.
3. Dinner offerings to include a full range of options including, but not limited to:
i. salad bar
ii. steaks, seafood and chicken entrees
iii. vegetarian entrees
iv. fresh vegetables and appropriate side dishes
v. an assortment of appetizers
vi. a daily chef special
Vii. full selection of desserts
viii. full assortment of beverages
ix. Most items are to be prepared with fresh ingredients.
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4. Banquet offerings will consist of a wide selection of per plate options and buffet style
options, including dessert selections. Most items are to be prepared with fresh
ingredients.
5. 'Tournament menu options to include box lunches, barbecues and buffets in addition to
the regular banquet menu.
6. Selected menu items are to be included for Snack Bar and Carryout services as
approved by the Authorized City Representative.
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The City will generally oversee the Licensee's operation of the food service operations, but will
leave the day -to -day management of the food service operations to the Licensee; the Licensee
may , with City approval, set prices, menu selection, hours of operation, promotions, etc.
1. EMPLOYEE STATUS: All food service operational staff and management will be
employees of and paid by the Licensee. The Licensee will also be responsible to pay all
employee benefits, payroll taxes, Worker's Compensation Insurance and comply with all
State and Federal employment and labor laws.
i.- SAFETY: Licensee agrees to perform all work outlined in the License
Agreement in such a manner as to meet all accepted standards for safe
practices related to food service operation and maintenance and to safely
maintain equipment, machines, and supplies or other hazards
consequential or related to the work; and agrees additionally to accept the
sole responsibility for complying with all County, State or other legal
requirements including but not limited to, full compliance with the terms of
the applicable OSHA and CaIOSHA. Department Safety Orders, and at all
times protecting all persons, including Licensee's employees, vendors,
members of the public or others from foreseeable injury, or damage to
their property. Licensee shall identify and inspect all potential hazards at
said areas under maintenance and keep a log indicating date inspected
and action taken.
ii.- 1t shall be the Licensee's responsibility to inspect, and identify, any
condition(s) that renders any portion of the facility unsafe, as well as any
Unsafe practices occurring thereon. The Authorized City Representative
shall be notified immediately of any unsafe condition that requires
correction. The Licensee shall be responsible for making corrections so
as to protect golfers and other members of the public from injury. The
Licensee shall cooperatefullywith the City in the investigation of any
accidental injury or deathoccurringin the Licensee's areas, including a
complete written report thereof to the Authorized City Representative
within twenty-four (24) hours following the occurrence.
2. HEALTH DEPARTMENT REGULATIONS: Licensee shall insure that the facility
i. complies with all requirements of the relevant Los Angeles County Health
Department. Failure to meet such requirements may be considered
grounds to terminate the License Agreement.
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3. PROTECTION OF PROPERTY: The Licensee shall exercise due care during the
performance of work in protecting from damage all existing facilities, structures, and
fixtures within the City's property. Any damage to City property deemed to be caused by
the Licensee's neglect shall be corrected and paid for by the Licensee at no cost to the
City.
4. SERVICEWARE: Restaurant and banquet functions will use conventional china, glass
and flatware. Disposables will be used in the snack bar and available upon request for
take-out service. Paper "dinner -style" napkins may be used in the dining room and
lounge and linen for banquet functions.
5. SOUND CONTROL REQUIREMENTS: The Licensee shall comply with all local sound
control and noise level rules, regulations, and ordinances, which apply to any work
performed or to any event taking place in the Club's banquet facilities.
6. INQUIRIES AND COMPLAINTS: The Licensee shall designate a responsible
management personnel to take the necessary action regarding all inquiries and
complaints that may be received from or through the City and/or patrons during normal
business hours.
i. Whenever immediate action is required to prevent impending injury, death
or property damage to the facilities, City may, after reasonable attempt to
notify the Licensee, cause such action to be taken by the City work force
and shall charge the full cost thereof to the Licensee.
7. INSPECTIONS: The Licensee will make all food service areas available to the City's
representative for inspection upon request during normal business hours.
8. EXCLUSIVE USE: The Licensee will ensure that no City food service equipment or
supplies will be used elsewherewithout the written -consent of the Authorized City
Representative.
9. UTILITIES` The Licensee will pay the cost of all separately metered electric, gas, water,
trash removal, extermination, telephone and other overhead -type utility costs.
10. HOUSEKEEPING/CUSTODIAL REQUIREMENTS: The following are the standards for
routine housekeeping/custodial-services to the Clubhouse and restrooms in the portion
of the facility operated by the Licensee.
a. Areas to be Cleaned
i. _ Licensee is responsible for regular cleaning of all floors; walls; ceilings,
counters, and upholstered furniture in the entire Restaurant (bar & grill,
banquet rooms, adjacent terraces, snack bar, kitchen, service and ware
wash areas), elevator, and restrooms on first and second floors, including
shampooing carpets, mopping floors,- and cleaning draperies and
windows. The Licensee will ensure that all tables and chairs are wiped
clean frequently during and after the meal service periods.
b. Housekeeping Standards
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i. All areas as noted above are expected to be disinfected, clean, free of
dust, smudges, dirt and shine.
11. EQUIPMENT MAINTENANCE: Maintenance on all food service equipment will be the
responsibility of the Licensee. The Licensee will be expected to provide proper and
adequate cleaning and care of all equipment. All equipment, materials and supplies are
to be kept clean and neat at all times with all inventories and supplies stored in a manner
in keeping with all Cal -OSHA, Downey Fire Department, Los Angeles County Health
Department and local, County and State regulations. Monthly detailed logs will be
provided to the City that will include which equipment was maintained, howit was
maintained, and service provider as applicable.
12. SECURITY: All areas- shall be secured when unattended. The Licensee will be
responsible for any thefts, acts of vandalism, etc.
13. FOOD "SERVICE EMPLOYEES: The City reserves the right to give prior approval
before Licensee designates any manager to oversee the City's food and beverage
operation . The City shall also maintain the right to request that Licensee remove any
food service manager or employee for cause, if so requested. by the Authorized City
Representative.
i.; All Licensee's employees assigned to work at the Club shall present a
neat, well-groomed appearance at all times and wearing uniforms or
business attire as appropriate. Employees shall be easily identified while
working at the Club. Tattoos and/or body piercing shall be covered not be
visible while the employee is working at the Club.
ii.; Licensee shall ensure -that -employees act in a courteous, professional
manner at all times. Any employee who fails to act in a courteous and
professional manner that is determined by the Authorized City
Representative shall be immediately removed from the staff and replaced
with a satisfactory replacement.
2.02......
Smallwares
The Licensee will be required to provide all smallwares for the facility. The quantity and quality
of such are subject to the approval of the Authorized City Representative . Smallwares include
basic table and service items such as flatware, plates, utensils, and glassware.
.03r
Insurance
For details on insurance requirements, see Sample License Agreement section VI.
Evidence of Insurance Coverage
Insurance Repository. Contemporaneously with the execution of the License Agreement with
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successful Respondent, Licensee shall file copies of the policies or executed endorsements
evidencing the required insurance coverage with the City Clerk. In addition, City shall have the
right of inspection of all insurance, policies required by the License Agreement. Licensee ,also
agrees to establish an insurance policy repository and to maintain copies of insurance policies
required pursuant to this Agreement for one hundred years (100 years) after the end of the term
during which collection services are to be provided pursuant to this Agreement. Licensee shall
notify City's Risk Manager and City Attorney before destroying copies of such policies. This
provision shall survive the expiration of the period during which collection services are to be
provided under this Agreement.
The following is the work schedule Licensee will be required to follow in the provision of
services. The work schedule set out herein represent the City's best estimate of the schedule to
be followed.
Licensee will set hours to comply with the City's golf `schedules and allow for banquet functions.
The following prototype schedule is for purposes of uniform bidding only.
Breakfast
6:00 a.m. to 11:00 a.m.
7 days
Luncheon
11:00 a.m. to 5 p.m.
7 days
Restaurant
10:00 a.m. to 10:00 p.m.;
7 days
Snack Bar
Dawn to Dusk
7 days
Banquet Facilities
As scheduled
The Licensee shall operate and maintain the Snack Bar open from dawn to dusk every day of
the year, with closures due to weather conditions. All closures require concurrence with the
Authorized City Representative. The Licensee shall operate and maintain the Restaurant every
day of the year with established hours agreed upon by Licensee and City. In the event that the
Snack Bar ,is closed because of weather, there shall be signage directing patrons to the
Restaurant. Within the proposal, an alternative schedule maybe presented in addition to the
schedule above.
The Licensee will provide a 10% discount to the City for all City -sponsored events:;
M_ vww
SECTION fHREE:
PROPOSAL SUBMITTAL INSTRUCTIONS
3.01
Authorized Signaturz
All proposals must be sighed by an individual authorized to bind the Respondent to the
provisions of the RFP. Proposals must remain open and valid for at least one hundred twenty
(1120) days from the opening date.
3.02
Purpose of the Request for Proposal (RFP)
LW9 e
m,sUett of ParVs-aTd is soIiritijrg_QMU2&qL5_hr gualified Liceirsee to on
3.03
Return Mailing Address, Contact Person, Telephone & Fax Numbers,
Deadline for Receipt of Proposals
Respondents wishing to submit a proposal in response to this RFP must submit online via
PlanetBids and submit five copies of their proposal, in writing, to the City Clerk in a sealed
envelope. It must be addressed as set out below.
City of Downey
Attention: City Clerk
Project Name: RFP: RIO HONDO GOLF CLUBHOUSE
BANQUET/FOOD AND BEVERAGE SERVICES
11111 Brookshire Ave
Downey, CA, 90241
Proposals must be received no later than 5:00 PM, Pacific Standard Time on April 15, 2019.
Proposals must be delivered via PlanetBids and in-person, by courier or by mail by the deadline.
The City will not accept postmarked bids, or bids submitted by facsimile or oral proposals.
A Respondent's failure to submit their proposal prior to the deadline will cause their proposal to
be disqualified. Late proposals or amendments will not be opened or accepted for evaluation.
3.04
11-1 WMA -F, r�ff
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If an amendment is issued by the City it will be provided online through Planet Bids.
3.05
Alternate Proposals
Respondents may only submit one proposal in response to this RFP for evaluation by the City.
However, the proposal may propose one or more alternate approaches to the provision of
services described in this RFP.
1.•
Respondents must comply with all of the terms of the RFP and all applicable local, State, and
federal laws, codes, and regulations. The City Clerk may reject any proposal that does not
comply with all of the material and substantial terms, conditions, and performance requirements
of the RFP.
Respondents may not restrict the rights of the City or qualify "their proposal. If a Respondent
does so, the City Clerk may determine the proposal to be a non-responsive counter-offer and
the proposal may be rejected.
Minor irregularities may be waived by the City Clerk so long as they:
• do not affect responsiveness,
are merely a matter of form or format,
• do not change the relative standing or otherwise prejudice other offers,
do not change the meaning or scope of the RFP,
are trivial, negligible, or immaterial in nature,
do not reflect a material change in the work; or,
• do not constitute a substantial reservation against a requirement or provision
The City of Downey reserves the right to refrain from making an award if it determines that to be
in its best interest.
i
City Not Responsible for Preparat on Cos s
The City of Downey will not pay or reimburse Respondents for the cost associated with the
preparation, submittal, presentation, or evaluation of any proposal.
Subcontractors must be specifically named intheproposal, and a detailed description of the
services they will provide in connection with the food and beverage operation at the Club.
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Joint ventures are acceptable. If submitting a proposal as a joint venture, the Respondent must
submit a copy of the joint venture agreement that identifies the principles involved, and their
rights and responsibilities regarding performance and payment.
Bxsigning the, each Respondent certifies that they comply with;
1. the laws Ofthe State 0f California, ~�
2. the applicable portion of the Federal Civil Rights Act uf 1884,
3. the Equal Employment Opportunity Act and the regulations issued thereunder by
the federal government,
4. the Arner|nena with Disabilities Act of 1990. and the regulations issued
thereunder bythe federal government,
5. all terms and conditions set out inthis RFP,
O. a condition that the proposal submitted was independently arrived at, without
no||uoion, under penalty ofperjury, and
7. that their offers will remain open and valid for otleast 12Odays.
If any Respondentfails 0ocomply with [1] through [7]nfthis paragraph, the City reserves the
right to reject the proposal.
Each proposal shall include anAffidavit
- � states the -`�Respondent, nor any subcontractor listed
in the proposal, is not acurrent orpast employee ofthe City ofDowney and that nocurrent or
past employee of the City of Downey holds on interest in the Respondent or any subcontractor
listed inthe proposal.
Public notice has been provided i�accordance with Municipal Code Section 29O8.
�~��° ����
Assignment
'
The Respondent may not transfer or assign any portion of
� e License Agreement without
written approval from the City of Oowney. which may require an amendment to the License
Agreement.
14
-�.�m�
~~�
Proposal Format and Content
The City discourages overly lengthy and costly proposals; however, in order for the City to
evaluate proposals fairly and connp|ete|y. Respondents should follow the format set out herein
and provide all ofthe information requested.
�
°°�����
�
Introduction
Proposals must include the complete name and 'address oftheir firm and the name, mailing
address, and telephone number of the person the City should contact regarding the proposal.
Proposals must confirm that the firm will comply with all of the provisions in this RFP. Proposals
must besigned byacompany officer empowered tmbind the company. ARespondent's failure
to include these items in their proposals may cause their proposal to be determined to be non-
responsive and the proposal may be rejected.
'
4.0�� - ~�
Required Forms
Respondent shall complete the forms attached hmthis RFP:
^�
Respondent's Business Statement
~'
Economic Proposal Form
~/ Authorization to Release Information
Affidavit toAccompany Proposals
-^�-`
�.04
Understanding of the Agreement
Respondent must provide ocomprehensive narrative statement that illustrates their
understanding mfthe requirements ofthe project ondtheproject schedule.
~����
~�����
Background and Experience
Respondent must provide an ownership deacription, including company infornnoUmn,
organizational chort, current and past experience in airni|mr operations and ; references.. In
order to be deemed qualified Respondent for m Licensee Agreement to operate the
15
banquet/food and beverage facilities for the Club, a Respondent must meet these minimum
prior experience requirements:
1 Possess the necessary line of credit and/or the necessary financial resources (at
least one million dollars) to operate the banquet/food and beverage facilities,
equip and maintain the restaurant facilities and provide for any emergency or
planned repairs or projects.
2. Possess a competent recordofat least five years of employment or history of
Agreement service in the operation of similar facilities as verified and supported
by references, letters and other necessary evidence from all employers and/or
public agencies.
A Respondent's failure to meet these minimum priorexperience requirements will cause their
proposal to be considered non-responsive and their proposal will be rejected.
4.06
Proposed Business
Respondents must include sample menus with pricing for banquets (including breakfast, lunch
and dinner options). Restaurant, snack shack and beverage cart. Include pricing for renting the
banquet or meeting space or indicate if room space is included in food pricing. Include
marketing and customer service, staffing and management, three year financial projections,
additional services and/or amenities, accounting controls and tracking.
1
4dditio7%H3vAw
Material and data not specifically requested for consideration, but which the Licensee wishes to
submit, may be included as "Additional Data" such as:
• Standard sales brochures and pictures;
• Promotional material with minimal technical content;
• Generalized narrative of supplementary information;
• Supplementary graphic materials
4.08
Financial Statement and Reference Requirements
The proposal must include in a separate sealed envelope a full and detailed report of the true
condition, as of December 31, 2018 or the most recent fiscal year-end, of the Licensee's assets,
liabilities and net worth. The report must include a balance sheet and income statement. The
report must be verified in writing as correct and accurate by the Respondent's owner or Chief
Executive Officer.
16
A pre -proposal meeting will be held at the Rio Hondo Golf Club located at 10627 Old "River
School Road, Downey, CA 90241 on April 1 from 10:00 AM to 11:00AM. It is mandatory that all
potential Respondents attend.
The purpose of the conference is to discuss the work to be performed with the prospective
Respondents, have a site visit, and allow them to ask questions concerning the RFP.
Respondents with a disability needing accommodation should contact the City Clerk at least one
week prior to the date set for the pre -proposal conference so that reasonable accommodation
can be made.
.
10
Site Inspection
Prior to award of the contract, the City may conduct on-site visits at the sites they have identified
as similar to the Clubhouse to evaluate the Respondent's capacity to perform the License
Agreement. Respondents must agree, at risk of being found non-responsive and having their
proposal rejected, to provide the City reasonable access to relevant portions of their work sites
including food service operations currently managed by Respondent. Site inspection will be
made by individuals designated by the Authorized City Representative at the City's expense.
4.11
Evaluation of Proposals
The Authorized City Representative and an evaluation committee made will evaluate proposals.
All proposals will be reviewed to determine if they are responsive. They will then be evaluated
using the criteria set out below.
The City will select the company/firm that will provide the highest quality of food, beverage,
banquet service while maintaining a high level of customer service. To that end, a
Respondent's experience and proven capability, as well as Economic Proposal, will bear
significant weight on the evaluation of proposals. All or part of the following criteria will be
employed by the City in its evaluation and comparison of proposals.
Proposals will be evaluated as follows (list not in priority order);
1) Experience of the Respondent in operating similar restaurant and banquet facilities with
preference for golf course experience.
2) References from current and past entities who have contracted with the Respondent for
food service.
3) Financial condition of the Respondent.
17
4) Economic Proposal provided by the Respondent.
5) Completeness of the submitted proposal
6) Length of time Respondent has been established as an operator of food service
Operations.
7) Experience of proposed management team that will supervise the food service
Operation at the Rio Hondo Clubhouse.
Responsive bids receivedonor before the designated time and place will be opened and
reviewed by the City of Downey. The most responsive and qualified Respondent will then be
reviewed through financial checks, reference checks, and site inspections of selected facilities
currently being operated. Proposals will be evaluated on the basis of their responsiveness to
the provisions of this RFP.
The City reserves the right to reject any or all proposals submitted. Any award made for this
project will be made to the firm which, in the opinion of the City, presents the best financial
options to the City and who is best qualified to conduct the project.
4.12
Agreement Negotiations
After completion of the evaluation, including any discussions held with Respondents during the
evaluation, the City may elect to initiate negotiations for a License Agreement. The option of
whether or not to initiate negotiations rests solely with the City. If the City elects to initiate
negotiations, these negotiations cannot involve changes in the City's requirements or the
Licensee's Respondent's proposal which would, by their nature, affect the basis of the source
selection and the competition previously conducted.
4.13
Failure to Negotiate
If the selected Respondent
•; fails to provide the information required to begin negotiations in a timely manner; or
• fails to negotiate in good faith; or
• indicates they cannot perform the services as required by the City; or
• the Respondent and the City, after a good faith effort, simply cannot come to terms,
The City may terminate _ negotiations with the Respondent- initially selected and commence
negotiations with the next highest ranked Respondent.
4.14
Notice Regarding Public Records Act
18
CaliforniaDocuments submitted in response to this RFP are subject to public disclosure as permitted by
the •lic Records Act. Specifically,the time proposals are submitted to the City�
they become the exclusive property of the City of Downey.At
recommends approval of an agreement to the City Council, and such recommendation appears
on the Council's Agenda, all proposals submitted in response to this RFP become a matter of
public record and shall be disclosed upon request as public records.
SECTION
STANDARD LICENSE AGREEMENT
The standard License Agreement is attached as ATTACHMENT 2.,
1
• •
The License Agreement is a Two Party Agreement between the Licensee and the City of
Downey. The Agreement grants a License for the Licensee to engage in a a food and
beverage operation at the Club under certain terms, conditions and requirements.
The terms of the RFP and the successful respondent will be incorporated into the Agreement.
The City reserves the right to add terms and conditions during Agreement negotiations. These
terms and conditions will be within the scope of the RFP and will not affect the proposal
evaluations.
The Licensee must provide all insurancecoverage as set forth in Section 2.03 of this RFP. The
coverage must be satisfactory to the Division of Risk Management. A Respondent's failure to
provide evidence of such insurance coverage is a material breach and grounds for withdrawal of
the award or termination of the Agreement.
1
Me
In lieu of a performance bond, an irrevocable letter of credit or cash may be substituted. The
amount of the surety deposit must be one hundred thousand dollars, $100,000. Substitution of
a surety deposit must be approved by the City of Downey Finance Director prior to its submittal
A Respondent's failure to provide the surety deposit within the required time will cause the City
to reject the proposal.
All checks and bonds accompanying rejected proposals will be returned as soon as possible
after the City Council has approved the award of the Licensee Agreement.
20
5.06
o••, .d Payment Procedure%
Payments due shall be made by Licensee to the City on the 10th day of the month.
5.08
Personnel
Any change of the Licensee team members named in the proposal must be approved, in
advance and in writing, by the Authorized City Representative. Personnel changes that are not
approved by the City may be grounds for the City to terminate the Agreement.
. ..........
09
Termination for Default
If the Parks and Recreation determines that the Licensee has refused to perform the work or
has failed to perform the work with such diligence as to ensure its timely and accurate delivery
of services, the City may, by providing written notice to the Licensee, terminate the Agreement.
City further reserves the right to terminate this Agreement in the event of any material breach of
this Agreement, including, but not limited to any of the following:
1„ If Licensee practices, or attempts to practice, any fraud or deceit upon
the City, or practiced any fraud or deceit or made any intentional
misrepresentations in the negotiations which preceded the execution of
this Agreement;
2. If Licensee becomes insolvent, unable or unwilling to pay its debts, or
upon listing of an order for relief in favor of Licensee in a bankruptcy
proceeding;
3 If Licensee fails to provide or maintain in full force, effect and amount,
the workers compensation, general and liquor liability, and
indemnification coverage, Cash and Performance Bonds as required by
this Agreement;
4 If Licensee violates any orders or rulings of any regulatory body having
jurisdiction over Licensee relative to this Agreement, in any material
manner, provided that Licensee may contest any such orders or rulings
by appropriate proceedings conducted in good faith, in which case no
breach of this Agreement shall be deemed to have occurred until a final
decision adverse to Licensee is entered;
5, If Licensee fails to make any payments -required under this
Agreement or refuses or intentionally fails to provide City with
required information, reports or testresults as to a material matter in
a timely manner as provided in this Agreement;
& Any other act of omission by the Licensee which materially Violates
the terms, conditions or requirements of this Agreement and which is
not corrected or remedied within the time set forth in the written
Notification of Deficiencies or if the Licensee cannot reasonably
correct or remedy the breach within the time set forth in such notice, if
21
the Licensee should fail to commence to correct or remedy such
alleged deficiencies within the time set forth in such notice and
diligently effect such correction or remedy thereafter.
1
Agreement..
If any provision of this Agreement is found to be invalid, such invalidation will not be construed
to invalidate the entire Agreement.
Licensee acknowledges that the interest of Licensee created by this Agreement may be taxable
as real property or a possessory interest therein. Licensee agrees to pay any and all such taxes
which may be levied by lawful authority and expressly indemnifies the City from liability for
payment of such taxes, directly or indirectly.
AuditMM
5*14
City •
Licensee shall maintain all records relating to the services provided under the agreement,
including, but not limited to, receipts, deposits, and records substantiating theinformationused
by Licensee to prepare the required monthly financial and operating statement. The City shall
have the right, upon five business days advance notice, to inspect, copy and audit all records -
relating to the Agreement. Such records shall be made available totheCity at Licensee's
regular place of business, or other place agreed to be City and Licensee, but within the County
of Los Angeles.
Should any examination or audit of Licensee's records reveal an underpayment of any fee
required to be paid by Licensee under the agreement, the amount of such underpayment, plus
interest of 6% per annum, shall become due and payable to the City not later than thirty days
after written notice of such underpayment is provided to Licensee by City. Should an
underpayment of more than 10% be discovered, Licensee shall bear fifty percent of the cost to
the City of the examination or audit. Should an underpayment of 20% or more be discovered,
Licensee shall bear the entire cost of the examination or audit.
22
The Authorized City Representative will be identified as the City's prime contact and liaison with
the Licensee. Any and all communication with the City will be conducted through this designated
individual. This individual will be afforded access to any of the golf course properties at any
time for the purposes of monitoring compliance of the Licensee to the terms and conditions of
the Service Agreement.
Licensee shall maintain regular communication, an attitude of cooperation and an overall good
working relationship with the Authorized City Representative, the Golf Professional and the
Maintenance personnel. A meeting shall be scheduled bi-monthly at the course to discuss
matters of mutual interest and concern and should be attended by the Authorized City
Representative, the course superintendent, the course professional and the food and beverage
manager.
23
ATTACHMENTS
ATTACHMENT 1 -
ATTACHMENT 2 -.
ATTACHMENT 3:
ATTACHMENT 4:
F-ITI a fffel M I LVA 1:104 1
Rio Hondo Golf Club Site Plan
Sample License Agreement
Respondent's Business Statement
Economic Proposal Form
Authorization To Release Information
M
wror,roMens itomimmmmlp
z
min
THIS AGREEMENT is hereby made this — of by and between the CITY OF
DOWNEY, a California municipal corporation, hereinafter referred to as "CITY" and
, hereinafter referred to as "LICENSEE".
WITNESSETH:
WHEREAS, CITY desires that a qualified business operate a food service concession at
the CITY OF DOWNEY RIO HONDO GOLF COURSE, and
WHEREAS, on MARCH 18, 2019, CITY issued "Request for Proposals "XXX"
("RFP") to solicit qualified businesses to operate a food service concession at the CITY OF
DOWNEY RIO HONDO GOLF COURSE, and
WHEREAS, on LICENSEE timely responded to the RFP by
submitting its qualifications to operate a food service concession at the CITY OF DO EY
RIO HONDO GOLF COURSE, and
WHEREAS, after careful consideration of all proposals submitted in response to the RFP,
CITY has decided that LICENSEE is best qualified to provide the food service concession
services described herein, and
WHEREAS, CITY desires to enter into an Agreement with LICENSEE for providing the
food service concession services upon the terms and conditions set forth herein, and
WHEREAS, the CITY OF DO EY RIO HONDO GOLF COURSE Clubhouse,
located at 10627 Old River School Road, Downey, CA 90241 ("Clubhouse") is currently
undergoing renovations and various portions of the Clubhouse will reopen in staggered-
increments
taggeredincrements as renovations are completed.
NOW, THEREFORE, in consideration of their mutual covenants and conditions, the
parties hereto agree that the LICENSEE shall be granted the exclusive right, privilege and
obligation to operate and conduct a concession for the sale of food and beverages within the
areas of the Clubhouse as defined herein.
I. DEFINITIONS:
M.
and shall be construed as-�in-aftex-wA-out:
1. CITY: The City of Downey, acting by and through its City Council.
2. LICENSEE: the entity with whom CITY has entered
into this License Agreement. _, President, or such other person as may be designated
in writing, is the person with whom the City Manager and/or Director of Parks and Recreation or
111. 11 q!1111 I
3. STAFF: The City Manager, Director • Parks and Recreation, ♦ other
include the supervision, preparation, and provision of food and beverage service at the
amw
5s PREMISES- Those portions of the Clubhouse to
which CITY has granted exclusive license to LICENSEE. Said areas
include the Clubhouse kitchen, restaurant/bar, LICENSEE offices, lobby,
Bride's Room, banquet • men's and women's restrooms/locker
dock.
6. FOOD AND BEVERAGE: Shall include prepared
meals, soft drinks, alcoholic beverages, candy, ice cream, sandwiches,
pliiiljll�lilij
II. RENT/FINANCIAL CONSIDERATIONS:
A. In consideration for the rights and privileges of operating the PREMISES for food
and beverage service, LICENSEE shall pay CITY a minimum monthly rental in the following
M
For each month commencing 11170UA the remainder of this
Agreement, plus the following:
a. of the gross receipts over $-
b. of the gross receipts over $
IBM
a:; catering sery ces contracte f or, at anis or prepare on t e
regardless of location of catered service shall be included in gross receipts per Section II.A.
LICENSEE shall report such catering services in the quarterly report (See Section II.E. below),
C. For the purpose of this Agreement, "gross receipts" shall mean and include all
money, cash, receipt, assets, property or other things of value, including but not limited to gross
charges, sales, fees and commissions made or earned and all gross sums received or earned by
LICENSEE from any business, use or occupation or any compensation therefore, originating,
transacted or performed in whole or in part upon the PREMISES, Including but not limited to the
supplying of services and the sale of goods, locker fees, wares or merchandise; provided that said
to shall not include the following, which shall be deducted from gross receipts for the purpose
of determining sums due to CITY hereunder.
I. Sales taxes actually paid;
2. All refunds made to customers, guests or patrons;
3. Complimentary meals; and
4. Gratuities/tips.
DPayments of the minimum monthly rental shall be made by LICENSEE to CITY
within the first ten (10) days of each and every month of the term. Additionally, LICENSEE
shall submit to CITY a monthly report outlining gross receipts for the preceding fiscal quarter, or
portion thereof, and the applicable percentage of gross receipts which are due to CITY pursuant
to this Agreement, all in a format to be determined by CITY. Quarterly reports shall be
of
submitted by LICENSEE to CITY not later than fifteen (15) days following the end of each
fiscal quarter. If the applicable percentage of gross receipts exceeds the minimum rent paid for
such period, the amount of the difference (herein called "excess rental") shall be paid to CITY at
the time the quarterly report is submitted.
In the event this Agreement is terminated during any fiscal quarter, then the excess rental
for such partial quarter shall be paid to CITY at the time of termination. Pursuant to Section
V.A.23, CITY shall have the right to examine or audit any and all financial books, records and
statements of LICENSEE related to the LICENSED OPERATION in order to ascertain and/or
verify the sums due CITY under this Agreement.
A clubhouse monthly financial report is also due on the I 01h of each month. The monthly
report needs to include the following breakdowns: number of rentals, income from rentals, bar,
snack bar, restaurant, vending machines and cart sales.
Licensee agrees that an Equipment Capital Account will be established. On a quarterly
basis Licensee shall pay to the City .75% of the gross revenue from the preceding fiscal quarter.
The City will match this payment and place the total amount in the Equipment Account Reserve.
Funds from the Equipment Capital Account will be used for repair, replacement, or equipment
purchase of capital equipment with approval from the Authorized City Representative.
All monies remaining in the Equipment Capital Account at the termination of the License
Agreement shall be the property of the City.
E. In the event that LICENSEE fails to pay any rents when due as required by
Section II.E. above, in addition to the principal amount of any minimum monthly rental or excess
rental already due from LICENSEE, LICENSEE shall pay to CITY a penalty of 25% of the
principal amount due. Said penalty (ies) shall be deemed as additional rentals due to CITY as
penalties accrue.
111. TERM:
The term of this Agreement shall commence on and expiring on
unless earlier terminated in accordance with other provisions of this License
Agreement, or unless extended as provided herein.
• 11 Kill,
M
A. CITY shall provide to LICENSEE an exclusive license to use and Operate the
PREMISES, and shall maintain the exterior walls, main plumbing and electrical lines, gas and
parking spaces servicing the PREMISES, the location, amount and times of use of which shall be
determined by CITY. Employee parking shall be at locations designated by CITY.
qN,IF
.If
D. CITY shall provide those certain ixtures, urniture an eq ipment to e us
the PREMISES, ("City Fixtures") as more particularly set forth in attached Exhibit "A", and
incorporated by reference herein, all for use on the PREMISES consistent with the terms of this
Agreement. All City Fixtures shall be maintained by LICENSEE in good condition and repair
throughout the to of this Agreement. Title to the City Fixtures shall remain in CITY
throughout the to of this Agreement and, upon termination of this Agreement, CITY shall
have the right to retake and repossess the City Fixtures for any use CITY deems appropriate. No
provision of this Agreement shall be deemed to grant any right, title or interest in the City
Fixtures to LICENSEE, beyond a license and right for LICENSEE to use the City Fixtures,
provided LICENSEE uses the City Fixtures in a manner consistent with the terms of this
Agreement.
V. OPERATING RESPONSIBILITIES:
Emoloyees/indevendent Contractor Status: LICENSEE shall -provide
employees as may be required to render good restaurant and food service, to the satisfaction of
STAFF. Such employees shall be satisfactory to STAFF as to their personal conduct, honesty,
courtesy, health, personal appearance and willingness to cooperate with CITY employees. In the
event an employee is not satisfactory, as herein defined, STAFF may direct LICENSEE to
correct the cause of said dissatisfaction or may direct LICENSEE to remove them from the
PREMISES within fifteen (15) days after written notice is received by LICENSEE.
not an employee of CITY. All employees of LICENSEE performing the services under this
30
Agreement on behalf of LICENSEE shall also not be employees of City and shall at all times be
under LICENSEE's exclusive direction and control. LICENSEE shall pay all wages, salaries,
and other amounts due such employees in connection with their performance of services under
this Agreement and as required by law. LICENSEE shall be responsible for all reports and
obligations respecting such employees, including, but not limited to: social security taxes,
income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
F-1. 'Cleanliness- LICENSEE shall keep the PREMISES and the surrounding
area clean and sanitary at all times and in compliance with regulations of the Los Angeles
County Health Department. No offensive or refuse matter, nor any substance constituting an
unnecessary, unreasonable or unlawful fire hazard, or material detriment to the public health,
shall be permitted or remain thereon, and LICENSEE shall prevent any such matter or material
from being or accumulating upon said PREMISES. LICENSEE shall: (a) provide for all refuse
to be collected as often as necessary and in no case less than twice a week; (b) furnish all
equipment and materials necessary therefore, including trash receptacles of a size, type and
number approved by CITY for use by the public; and (c) empty trash receptacles into the trash
storage area as often as necessary; (d) clean and disinfect restrooms at least twice daily, keeping
the areas free of dirt and fully stocked with paper goods; (e) carpeted areas shall be maintained
free of spillages, dirt accumulation, crusted material, spots, and stains; (f) hard floor services
shall be maintained clean and free of debris or foreign matter; (g) all walls shall be maintained
and free of spots, smudges, and other foreign markings; LICENSEE will avoid damaging the
corners of the walls with proper care of equipment between spaces; (h) furniture will be
maintained and free of dust, dirt, and stains and shall present an overall clean appearance; (i)
doors and kick plates shall appear clean and free of dust, dirt, streaks, and splashings; 0) outdoor
smoking areas shall be serviced to present an overall clean appearance, free of discarded
materials with ashtrays clean and emptied after use; (k) miscellaneous counter tops, tables,
chairs, sinks, and fixtures are to be clean, disinfected, bright and free of dirt, stains, or foreign -
matter
oreignmatter; drinking fountain fixture surfaces shall be clean and bright, free of dust, stains, streaks,
and trash with nozzles kept free of encrustation and metal services shall have a polished lustrous
appearance; (1) hard floors that are wet for any reason, including mopping, shall be so marked
with proper temporary signage; (m) lighting fixtures are to be checked daily with bulbs replaced
K
as necessary and faulty fixtures must be reported to City immediately; (n) leaky or
malfunctioning fixtures shall be repaired/replaced immediately; walls; ceilings, screens; and
windows shall be cleaned twice monthly in restrooms.
3. Conduct and Appearance -of Empto ees: LICENSEE shall at all times
conduct his business in a_quiet and orderly manner to the satisfaction of the STAFF. All
Licensee's Food Service Employeesassignedto work at the Club shall present a- neat, -well-
groomed appearance at all times and wearing' uniforms or business attire as appropriate.
Employeesshallbe easily identified while working at the Club. Tattoos and/or body piercing
shall be covered not be visible while the employee is working at the Club. The Licensee shall
pay for and bear the maintenance cost of special uniforms for all employees working at the Club
facility. The City shall maintain the right to approve all food service uniform designs utilized
within the Club its facilities. Name badges are required to be worn by employees during normal
business hours. The uniform shall be worn as a complete unit and befitted properly. The uniform
shall be cleaned and pressed with no rips, tears or permanent stains present.
4. Disorderly Persons: LICENSEE shall use its best efforts to prohibit
intoxicated persons from being in or about the PREMISES and to prohibit profane or indecent
language, or boisterous or loud conduct in or about the PREMISES and will call upon the aid of
peace officers to assist in maintaining peaceful conditions.
5. Master Calendar: It shall be the responsibility of LICENSEE to maintain
a Master Calendar of bookings and reservations for banquets, luncheons and other group events,
and to avoid duplication of reservations. In the event a conflict in booking occurs which cannot
be resolved by negotiation, the matter shall be referred to STAFF whose decision shall be final.
6. Food and levera e Stand. Snack Isar LICENSEE, during the term of
this Agreement, shall operate a snack bar in the existing structure located adjacent to the golf pro
shop. Except as otherwise provided in this Agreement, LICENSEE shall provide the necessary
equipment, furnishings and fixtures necessary to render proper snack bar service. The restroom
facilities in said structure shall be maintained, serviced and kept in good repair by LICENSEE at
its sole cost and expense. Said operation shall meet with the approval of STAFF.
7. Food and Beverage Products. All food, beverages, confections and
refreshments sold or maintained for sale by LICENSEE shall be subject to approval or rejection
by STAFF. All food offered by the LICENSEE shall be well prepared, well cooked and well
W
served. Prices on all food, beverages and other merchandise sold in the Restaurant and at the
refreshment stand shall be reasonable and shall be comparable to those charged by restaurants in
CITY and at public golf courses in the Los Angeles Metropolitan area. No adulterated,
misbranded, or impure articles shall be sold or kept for sale by LICENSEE, and all merchandise
kept on hand by LICENSEE shall be stored and handled with due regard to sanitation.
LICENSEE shall at all times keep a sufficient supply of all food, beverages and merchandise to
adequately serve the public.
LICENSEE shall furnish a price list, including service fees, to CITY's Parks &
Recreation Director annually for approval. If LICENSEE desires any changes to
pricing after annual approval, including adding service fees, LICENSEE shall submit a
request in writing and obtain approval prior from the Director of Parks & Recreation before
implementing changes to the LICENSEE's price list or service fees. Prices should be
reasonable or comparable to similar venues. Prices may consider discounts for local non-
profit groups and Downey Legacy groups.
8. Rours of Overation: LICENSEE shall keep the PREMISES open seven
days per week during the following hours:
Facili Open Close
Restaurant/ Lounge 7:00 a.m. 8:00 P.M.
Banquet As Scheduled
Snack Bar Daylight not later than Winter not earlier than
- 6:00 a.m. - 4:00 p.m.
Summer not earlier than
- 8:00 p.m.
If LICENSEE fails to conform its operations to the foregoing schedule during any 24-hour
period, CITY may terminate this Agreement for cause pursuant to Article VIII, below. Changes
may be made to the foregoing schedule if such changes are mutually agreed to by the
LICENSEE and STAFF.
9. Laws and Ordinances: LICENSEE shall conduct his business in
accordance with all Federal, State and local laws, ordinances, rules and regulations applicable to
such business.
33
10.- Permits and Licenses: LICENSEE shall, at its sole cost and expense
obtain any and all permits or licenses that may be required -by -Federal, Stateorlocal law in
connection with the operation of the PREMISES.
11. Taxes and Charges, CITY hereby gives notice and LICENSEE
acknowledges that it has received notice pursuant to Section 107.6 of the Revenue and Taxation
Code of the State of California, that by virtue of the fact that the PREMISES are owned in fee by
a local public entity, it -is_possible thatthe PREMISES_ay be subject to a property tax if a
possessory interest is created and that the party in whom the possessory interest is vested may be
subject to the payment of property taxes levied on such interest. LICENSEE agrees and
acknowledges that LICENSEE shall be solely responsible for any property tax imposed.
LICENSEE covenants and agrees to pay and discharge, during the entire term of
this Agreement, before delinquency, all taxes, assessments; water charges, sewer charges; utility
rates and fees,levies or other charges, general, special, ordinary, extraordinary and otherwise; of
every kind and character which are or may during the term be levied, - charged, assessed or
imposed upon or against the PREMISES or any improvements which are now orhereafter
located thereon, or against any of LICENSEE's personal _property now or hereafter located
thereon. At the commencement and at the end of the terrn of this Agreement; such taxes,
assessments and other charges to be paid by LICENSEE shall be prorated on the basis of the
fiscal year of the taxing authority in question so that, at the commencement and at the end of the
term, as to any such taxes, assessments and other charges levied or assessed for a fiscal year
preceding the commencement or extending beyond the end of the Term,LICENSEE will pay
only such proportion of such taxes, assessments and other charges as the portion of such fiscal
year following the commencement and preceding the end of the term bears to the entire fiscal
year.
CITY shall have the right, but not the obligation, at all times during the term of
this Agreement to pay any taxes, assessments or other charges levied or assessed upon or again
the PREMISES or any improvements which are now or hereafter located thereon, and to pa
cancel and clear off all tax sales liens, charges and claims upon or against the PREMISES or an 6
improvements which are nowor • . • thereon,and to redeem the PREMISES i
the same, or any of them, from time to time, without being obligated to inquire as to the validitl
of the same. Any sum so paid by CITY shall become due and payable by LICENSEE on the
next day after any such payment by CITY.
12. Vending Machines: LICENSEE shall first obtain prior written approval
from CITY before installing or permitting to be installed any vending machines of any kind.
Any revenue generated from operation of the vending machines will be deemed a part of "gross
receipts", for purposes of calculating excess rental and LICENSEE shall account for such
revenue pursuant to Section II.E. of this Agreement.
13. Safety: LICENSEE shall regularly monitor for and correct any safety
deficiencies and violations of safety practices immediately and shall cooperate fully with CITY
in the investigation of accidents occurring on the PREMISES. In the event of injury to a patron
or customer, LICENSEE shall ensure that the injured person receives prompt and qualified
medical attention, and as soon as possible thereafter, he shall submit to CITY a City of Downey
"Incident and Accident Report" forin. LICENSEE shall immediately correct hazardous
conditions which have led, or in the opinion of CITY agents could lead, to injury.
14. 'Promotion: LICENSEE shall at all times provide for the best possible
public and community relations through publicity, advertising and personal public relations.
15. Utilities: LICENSEE shall pay before delinquency all charges (including
connection charges, taxes, assessments or surcharges thereon) for all separately metered gas,
heat, air conditioning, electricity, telephone, sewer and all other services required to operate the
restaurant, bar, banquet room(s), refreshment stand. CITY shall be responsible for water,
garbage and rubbish pickup.
16. Liquor License: LICENSEE shall acquire, and maintain in good standing
at all times during the term of this Agreement an on -sale liquor license in accordance with the
laws and regulations of the State of California. If LICENSEE's liquor license is suspended or
revoked for any reason, CITY, at its option, may terminate this Agreement for cause.
A. Alcohol Buy -Out for Golf Tournaments/Cork-fee
i. LICENSEE shall work with the tournament hosts to allow for the outside beer
and wine to be permitted on the Premises during tournaments only. Each tournament house must,
in advance, apply and receive approval of a one -day State of California Alcohol Beverage
Control (ABC) Daily License Authorization, Form ABC -221 and assume all responsibilities of
submitting the fees and gathering all necessary signatures. Said License must be obtained before
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the tournament. Each tournament hose must sign a Relapse of Liability releasing the LICENSEE
and CITY from all incidents associated with the One -Day Alcohol Buyout and shall pay a $500
beer/wine buyout fee (fee to offset the loss of revenue). The LECENSEE has the right to require
the tournament house to stop alcoholic beverage service to any individual or group at any time
that is deemed that their actions are causing damage to the Premise or outside beer and wine is
served, the CITY requires at least one security guard present for the event at the sole cost of the
tournament hose. If a tournament hose- elects to have outside beer/wine serviced at the
tournament, it is required that food also be available during the entire time of beer/wine service.
If the tournament host chooses to have the mobile cart snack bar and building snack bar services,
a $250 for each snack bar shall be paid by the tournament host. Tournament host must provide
liability. $2,000,000 and City of Downey,
tournamentii. The • " obtain all necessarybonds,•• •
revokeiii. If the California Department of Alcohol and Beverage control should deny or
rr • o service alcoholicbeverages - tournament,tournament
reservation/contract may be -• at the sole discretion of
incurring no liability or responsibility for losses or damages suffered by the tournament host.
B. Transfer of Liquor License. Upon termination of this Agreement, whether for
cause or CITY's convenience, LICENSEE shall, within- thirty (30) days following
said termination, offer in writing to sell/transfer its liquor license to CITY's designee. Within
thirty (30) days following CITY's receipt of LICENSEE's written offer, CITY shall respond in
writing as to whether its designee desires to purchase LICENSEE's liquor license. If CITY
indicates that its designee desires to purchase the liquor license;_ LICENSEE shall sell/transfer
said liquor license to CITY's designee, within sixty (60) days following LICENSEE's receipt
of CITY's designee's written notice to purchase the liquor license. LICENSEE shall be
entitled to the purchase/transfer of the liquor license and CITY's designee; shall pay _fair and
adequate consideration. In the event thatLICENSEEand CITY's designee cannot agree as to
fair and adequate consideration for the liquor license, the parties agree to have the value
determined by the appraisal process set forth in Section V.A.18. below, except that the
appraiser(s) shall be qualified to valuate liquor licenses in this case.
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Upon termination of this Agreement, whether for cause or CITY's convenience,
LICENSEE shall, within thirty (30) days following said termination, offer in writing to
sell/transfer its liquor license to CITY, or to a third party designated by CITY. Within thirty (30)
days following CITY's receipt of LICENSEE's written offer, CITY shall respond in writing as to
whether it or its designee desires to purchase LICENSEE's liquor license. If CITY indicates that
it, or its designee, desires to purchase the liquor license, LICENSEE shall sell/transfer said liquor
license to CITY, or CITY's designee, within sixty (60) days following LICENSEE's receipt of
CITY's written notice to purchase the liquor license. LICENSEE shall be entitled to and CITY,
or its designee, shall pay fair and adequate consideration for the purchase/transfer of the liquor
license. In the event that LICENSEE and CITY cannot agree as to fair and adequate
consideration for the liquor license, the parties agree to have the value determined by the
appraisal process set forth in Section V.A.18. below, except that the appraiser(s) shall be
qualified to valuate liquor licenses in this case.
17. Signs and Advertisements. No permanently placed signs or advertising
matter of any kind shall be displayed unless and until approved in writing by the STAFF.
18. fixtures and Eggipment: Except as otherwise provided in Section IV.D.
of this Agreement (pertaining to "City Fixtures"), LICENSEE, at its sole cost and expense, shall
provide and maintain all furniture, kitchen, and food service fixtures and equipment, including
but not limited to office furniture, smallwares (which include dishes, flatware, pots, pans, mixers,
glasses, utensils, etc.) electronic equipment, food carts, and other facilities used for the
LICENSED OPERATION ("LICENSEE Fixtures"). All LICENSEE Fixtures shall be provided
and maintained by LICENSEE in good condition and repair.
Not later than LICENSEE shall have invested not less than One
Hundred Thousand Dollars ($100,000) into LICENSEE Fixtures to service the LICENSED
OPERATION ("Capital Investment Obligation"). Notwithstanding the above, any LICENSEE's
investments in smallwares shall not count toward the Capital Investment Obligation.
In order to verify compliance with the Capital Investment Obligation set forth
above, not later than LICENSEE shall submit to CITY a written statement, in a
format to be determined by CITY, outlining those LICENSEE items (excluding smallwares)
purchased and demonstrating a total expenditure of not less than One Hundred Thousand Dollars
($100,000) for said LICENSEE items (excluding "small- wares"). Within thirty (30) days
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following CITY's receipt of a written statement from LICENSEE, CITY shall evaluate the
accuracy of the written statement and shall notify LICENSEE in writing of CITY's
determination that either LICENSEE's Capital Investment Obligation has or has not been met. If
CITY determines that LICENSEE's Capital Investment Obligation has been met, CITY shall so
reflect that determination in its response and LICENSEE shall have no further Capital
Investment Obligation under this paragraph. If CITY determines that LICENSEE has not met its
Capital Investment Obligation, CITY shall state so in its response as well as the amount
remaining to be invested for LICENSEE to satisfy the Capital Investment Obligation.
LICENSEE shall, within ninety (90) days following its receipt of CITY'S response, invest in
such additional LICENSEE fixtures as necessary to meet the Capital Investment Obligation.
All LICENSEE Fixtures purchased and used by LICENSEE in the course of operating
the PREMISES shall remain the property of LICENSEE. Within 90 days prior tote ination of
this Agreement, LICENSEE shall give the CITY the right of first refusal to purchase all
LICENSEE Fixtures used on the PREMISES. (Within 60 days prior to termination of this
AGREEMENT, CITY shall inform LICENSEE, in writing, whether it wishes to purchase the
said LICENSEE's Fixtures, or any portion thereof.)
If City indicates that it wishes to purchase, the price shall be determined as follows:
a.) The price shall be the then current value of those items to be purchased by
CITY, as determined by a single qualified restaurant fixture, furniture and
equipment appraiser ("Appraiser") mutually selected by CITY and
LICENSEE. CITY and LICENSEE shall each pay for one-half of the
costs of the mutually agreed Appraiser.
b.) In the event CITY and LICENSEE cannot agree upon a mutually selected
Appraiser, CITY shall select a qualified Appraiser, to be paid at CITY's
sole cost and expense, and LICENSEE shall select a qualified Appraiser,
to be paid at LICENSEE's sole cost and expense. The two Appraisers
chosen by CITY and LICENSEE shall then select a third Appraiser.
CITY and LICENSEE shall each pay for one-half of the costs of the third
Appraiser. The average of the three (3) appraisals of the then current
value of those items shall be the price to be paid by CITY.
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19. Facility Maintenance. LICENSEE agrees to maintain and repair all carpeting,
draperies, doors; fixtures, equipment and other interior/non-structural improvements at the
PREMISES in a presentable condition at all times. Except as _ provided in Article _IV,
LICENSEE shall maintain and repair the PREMISES. LICENSEE shall clean and sweep all
walkways and approaches to entries to the PREMISES. The cost of LICENSEE_ maintenance
and repairs may be paid out of the "Fixture and Equipment Capital Account Fund" as more
particularly set forth in Article XIV. To the extent LICENSEE maintenance and repairs are not
paid for out of the "Fixture and Equipment Capital Account Fund", LICENSEE shall perform
such maintenance and repairs at its sole cost and expense. Monthly detailed logs will be provided
to the City that will include ,which equipment was maintained, how it was maintained, and
service provider as applicable.
20. Control and -Re air of PREMISES: CITY shall have full and absolute
control of the buildings and all appurtenances thereto during the term of this Agreement, and
shall have the right to make such changes and alterations therein and in the grounds surrounding
same as may be determined by CITY. CITY shall consult with LICENSEE regarding any
proposed improvement. In the event that changes or alterations made by CITY shall require
LICENSEE to suspend its business, the CITY shall reimburse LICENSEE for those amounts of
lost LICENSEE revenues as may be agreed to between the parties.
21. Right of Entry; CITY, its authorized representatives and agents shall have
the right to enter upon the PREMISES at any and all reasonable times during the term of this
Agreement for the purpose of inspection to determine whether or not LICENSEE is complying
with the terms and conditions hereof, or for any other purpose incidental to the rights of CITY.
22. Rc cordkeei and lnsrection;: LICENSEE shall maintain complete and
accurate records with respect to all gross receipts and profits realized, and all costs and expenses
incurred by LICENSEE under this Agreement. All such records shall be clearly identifiable.
Upon five (5) days advance notice from CITY, LICENSEE shall allow a representative of CITY
during normal business hours to examine, audit, and make transcripts or copies of such records
and any other documents created pursuant to this Agreement. LICENSEE shall allow inspection
and copying of such documents related to this Agreement for a period of three (3) years
following the termination of this Agreement.
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Should any examination or audit of LICESEE's records reveal an underpayment of any
rentals, fees or charges to CITY under this Agreement, LICENSEE shall pay said underpayment
to CITY, plus penalties as set forth in Section II.F. above, not later than thirty (30) days
following LICESEE's receipt of CITY's written demand for payment.
CITY shall bear all costs of any audit of LICESEE's records, except; notwithstanding
the preceding sentence, should an underpayment of more than ten percent (10%) but less than
twenty percent (20%) be discovered, LICENSEE shall be responsible for fifty percent (50%) of
CITY's costs of saidauditand, further; should an underpayment of more than twenty percent
(20%) be discovered, LICENSEE shall be responsible for all of CITY's costs of said audit.
The LICENSEE shall transmit a Profit and Loss Statement and a Balance Sheet for the
Licensed operations, prepared in a form and by an accounting firm acceptable to CITY on a
quarterly basis during the term of the License Agreement.
23. Seryicewares Restaurant and banquet functions will use conventional China, glass,
and "flatware. Disposables will be used in the snack bar and available upon request for takeout
service. Paper"dinner-style" napkins may be used in dining room and lounge. Linen will be
used for banquet functions."
VI. LIABILITY AND INSURANCE.
A. Time for Compliance. LICENSEE shall not commence the Services or the
Project under this Agreement until it has provided evidence satisfactory to the CITY that it has
secured all insurance required under this section:- In addition, LICENSEE shall notallowany
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the CITY that the subcontractor has secured all insurance required under this section. The
CITY reserves the right to modify these requirements, including limits, based on the nature of
the risk; prior experience with insurer, coverage or other special circumstances.
B. Minimum Requirements. LICENSEE- shall, at its expense, procure and maintain
for the duration of the Agreement insurance against claims for injuries to persons or damages to
property which may arise from or in connection with the performance of the Agreement, the
Services or the Project by the LICENSEE, its agents, representatives, employees or
subcontractors. LICENSEE shall also require all of its subcontractors to procure and maintain
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the same insurance for the duration of the Agreement. Such insurance shall meet at least the
following minimum levels of coverage:
Scope(i) Minimum of •LiabilihN
(CGL), Insurance Services Office Form CG 00 Ol covering CGL on an "occurrence" basis
including products and completed operations, property damage, bodily injury and personal and
advertising injury; (2) Automobile Liability: Insurance Services Office Form Number CA 0001
covering Code l (any auto) or if LICENSEE owns no autos, Code 8 (hired) and 9 (non -owned),
and (3) Workers' Compensation `. Workers' Compensation; insurance as required by the State of
California with Statutory Limits; and (4) Employer's Liability Insurance.
(ii) Minimum Limits of Insurance. LICENSEE shall maintain limiij
o less than: (1) Commercial General Liability (CGL): No less than $2,000,000 per occurrence
for products and completed operations, bodily injury, property damage and personal and
advertising injury. If Commercial General Liability Insurance or other form with _general
aggregate limit applies, either the general aggregate limit shall apply separately to this
Agreement/location _(ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the
required occurrence limit; (2) Automobile Liability: No less than $2,000,000 per accident for
bodily injury and property damage; and (3) Workers' Compensation: Workers' Compensation
limits as required by the Labor Code of the State of California with Statutory Limits; (4)
Employer's Liability: Employer's Liability limits of no less than $2,000,000 per accident for
bodily injury or disease. Employer's Liability coverage maybe -waived by the CITY if CITY
receives written verification that LICENSEE has no employees.
If the LICENSEE maintains broader coverage and/or higher limits than the minimum
shown in this subdivision 3.2.10.2, the CITY requires and shall be entitled to the broader
coverage and/or the higher limits maintained by the LICENSEE. Any available insurance
proceeds in excess of the specified minimum limits of insurance and coverage shall be available
to the CITY.
B
C. Professional Liability (Errors is Omissions). LICENSEE shall procure and
following completion of the Services or the Project, errors and Omissions liability insurance
appropriate to its profession. Such insurance shall be in an amount not less than $2,000,000 per
occurrence or claim and $2,000,000 in the aggregate, and shall be endorsed to include
contractual liability. If the LICENSEE maintains broader coverage and/or higher limits than the
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in excess of the specified minimum limits of insurance and coverage shall be available to the
CITY.
D. Insurance Endorsements. The insurance policies shall contain the following
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(i) Additional Insured Status. The Commercial General Liability
policy shall been to state that: (1) the CITY, its directors, officials, officers, employees,
agents and volunteers shall be covered as additional insureds with respect to liability arising from
the work, Services, Project or operations performed by or on behalf of the LICENSEE, including
materials, parts or equipment furnished in connection with such work, Services. Projector
operations; and (2) the insurance coverage shall be primary insurance as respects the CITY, its
directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an
unbroken chain of coverage excess of the LICENSEE's scheduled underlying coverage.
Commercial General Liability insurance coverage may be provided in the form of an
endorsement to the LICENSEE's insurance (at lease as broad as ISO Form CG 20 10 11 85 or
both CG 20 10, CG 20 26, CG 20 33 or CG 20 38; and CG 20 37 forms if later revisions are
used).
(ii) Waiver of Subrogation. ICENSEE ereby grants to CITY a
waiver of any right to subrogation which any insurer of said LICENSEE may acquire against A
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CITY by virtue of the payment of any loss under said insurance policies set forth herein.
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LICENSEE agrees to obtain any endorsement that may be necessary to affect this waiver of
subrogation, but this provision applies regardless of whether or not the CITY has received a
waiver of subrogation endorsement from the insurer.
shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled
except with written notice by certified mail, return receipt requested to the CITY; and (B) any
failure to comply with reporting or other provisions of the policies, including breaches of
warranties, shall not affect coverage provided to the CITY, its directors, officials, officers,
employees, agents and volunteers.
E Primary Coverage. For any claims related to this Agreement, the LICENSEE's
insurance coverage shall be primary insurance and primary coverage at least as broad as ISO CG
20 01 04 13 with respect to the CITY, its directors, officials, officers, employees, agents and
volunteers. Any insurance or self-insurance maintained by the CITY, its directors, officials,
officers, employees, agents and volunteers shall be excess of the LICENSEE's insurance and
shall not be called upon to contribute with it in any way.
F. Separation of Insureds; No Special Limitations. All insurance required by this
Section shall contain standard -separation of insureds provisions. In addition, such insurance
shall not contain any special limitations on the scope of protection afforded to the CITY, its
directors officials, officers, employees, agents and volunteers.
G. Deductibles and Self -Insurance Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the CITY. CITY may require LICENSEE to
provide proof of ability to pay losses and related investigations, claim administration and defense
expenses and costs within the retention. The policy language shall provide or be endorsed to
provide that the self-insured retention may be satisfied by either the named insured or CITY.
H. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating no less than A:Vll, authorized to do business in California, and satisfactory to
the CITY.
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I. Verification of Coverage. LICENSEE shall furnish CITY with original
certificates of insurance, including all required amendatory endorsements (or copies of the
applicable policy language effective coverage required by this provision) and a copy of the
endorsements to the CITY before the commencement of work under this Agreement. However,
failure to obtain the required documents prior to the commencement of work under this
Agreement shall not waive the LICENSEE's obligation to provide them to the CITY. The CITY
reserves the right to require complete, certified copies of all required insurance policies,
including endorsements, at any time.
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(i) The retroactive date must be shown and must be before the date I
(ii) Insurance must be maintained and evidence of insurance must I
provided for at least five (5) years after completion of the Services provided under this
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(Iii) if coverage is canceled, non -renewed, and not replaced witm
another claims -made policy form with a retroactive date prior to the effective date of this
Agreement or the date work commences under this Agreement, whichever is earliest, the
LICENSEE must purchase extended reporting coverage for a minimum of five (5) years after
completion of the Services under this Agreeent.A.
Liquor Liability Insurance:, The LICENSEE shall maintain a liquor
liability insurance policy in the amount of $1,000,000. Liquor Liability -Insurance may be
added to the LICENSEE's publicliabilityand property damage insurance or itmaybe provided
M. • ••- i • •a` status with the California Secretary
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its corporate s. •••f standing will result in the terminationof - Agreement,
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VII. PERFORMANCE DEPOSIT:
LICENSEE shall furnish and maintain during the to of this Agreement, a surety bond
from a California "admitted surety insurer" in a form satisfactory to CITY, and approved by the
City Attorney, in the sum of one hundred thousand dollars ($100,000) conditioned upon the
faithful performance of the terms of this Agreement.
VIII. DEFAULT AND TERMINATION:
A. LICENSEE Default. In the event LICENSEE defaults in the performance of any
of the terms or conditions of this Agreement, CITY shall give LICENSEE written notice of such
default. LICENSEE shall then have thirty (30) days following LICENSEE's receipt of the notice
of default to cure said default. Notwithstanding the above, in the case of a default involving
sanitary or safety conditions on the PREMISES, the cure period shall be three (3) days following
LICENSEE's receipt of the notice of default, and in the case of a default involving non-payment
of rent or any other monetary obligation, the cure period shall be ten (10) days following
LICENSEE's receipt of the notice of default. With the exception of monetary defaults, in the
event the default cannot be reasonably cured within the applicable 3 day/30 day period,
LICENSEE shall commence to cure the default within the above time periods and diligently
pursue same to completion within not greater than sixty (60) days following LICENSEE's
receipt of the notice of default. In the case of a monetary default, no additional time shall be
granted to LICENSEE after the expiration of the 10 -day cure period to commence to cure and
diligently pursue cure of the monetary default.
In the event LICENSEE commits an uncured default, CITY shall have the right to
exercise any of the following options without any further notice or authorization from
LICENSEE.
1. CITY may terminate this Agreement for cause; and/or
2. CITY may retain any of LICENSEE's money in its possession and any of
LICENSEE's property on the PREMISES and apply same to the payment of any and all claims
which may be due CITY, and/or
3. CITY may recover at law any and all claims which may be due CITY;
and/or
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4. CITY may perform such work as it deems necessary to cure said default
and charge LICENSEE for the full cost of labor and materials expended, plus twenty percent
(20%) of said cost for administrative overhead; and/or
5. In the event LICENSEE is unable to conduct the services required herein,
CITY shall have the right to take immediate possession of all operations; and/or
6. CITY may recover all or a portion of its damages, loss and costs from
LICENSEE's Performance Deposit.
Neither CITY's acceptance of any payment from LICENSEE after a LICENSEE default
nor any waiver of a LICENSEE default by CITY shall be construed as a waiver of any
subsequent default of the same or any other term, covenant and condition nor shall it be deemed
to limit or foreclose CITY from pursuing any and all options set forth above as a result of
LICENSEE's default. CITY's choice of any option shall in no way waive its right to select any
other option at any time, or to pursue any rights which CITY may have at law or equity to
enforce this Agreement.
B. CITY's Default. In the event CITY defaults in the performance of any of the
terms or conditions of this Agreement, LICENSEE shall give CITY written notice of such
default, within sixty (60) days following the alleged default. CITY shall then have thirty (30)
days following CITY's receipt of the notice of default to cure said default. In the event the
default cannot be reasonably cured within the applicable 30 day period, CITY shall commence to
cure the default within the above time period and diligently pursue same to completion within
not greater than sixty (60) days following CITY's receipt of the notice of default.
Notwithstanding the above, if LICENSEE fails to notify CITY of a CITY default within sixty
(60) days after LICENSEE learns of the default, then LICENSEE shall be deemed to have
waived any and all of its rights relating to such CITY default.
C. No Fault Termination. CITY may terminate this Agreement without cause and
for CITY's convenience upon giving one -hundred twenty (120) days written notice to
LICENSEE. In the event CITY terminates this Agreement without cause, CITY shall return the
Performance Deposit, plus any accrued interest, to LICENSEE, less any amounts which CITY is
entitled to retain under this Agreement.
D. Force a'eUre. In the event the performance of this Agreement by either party is
prevented or delayed by act of God, war, civil insurrection, fire, earthquake, flood, storm, strikes,
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11! mar1rer-WIM
A. "In the event LICENSEE is unable • conduct the services requircm
herein CITY shall have the right to take immediate possession of all operations and/or
terminate this Agreement. CITY or CITY'S agent or designee shall have the right to assume
control of booked and pending reservations and book future reservations. Upon written
notification by CITY that it shall take possession of all operations and/or terminate
this Agreement, L I C E N S EE w i 11 immediately provide to the CITY the following:
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2. Booked and pending •contracts
3. All reservation deposits
B. The shareholders of the corporation who originally executed this Agreement must
term unless an assignment of control is approved by CITY, which approval shall not be
unreasonably r
X. DESTRUCTION PREMISES.
In the event that the
PREMISES totally or 'i . damaged • destroyed
(greater than, fifty percent (50%)) so as to become totally unusable, then this Agreement shall
immediately terminate.
In the event that the PREMISES are partially damaged or destroyed (fifty percent (50%)
or less), such that certain portions of the PREMISES remain usable to LICENSEE, this
Agreement shall automatically terminate as to those portions damaged or destroyed and, at
CITY's sole option:
I CITY may terminate this Agreement as to the remaining usableportions
of the PREMISES, upon giving LICENSEE sixty (60) days written notice,
or
2. CITY may continue this Agreement in effect, and LICENSEE shall
usablecontinue to be bound by this Agreement as to those remaining portio
still by
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abated in proportion to those portions no longer usable by LICENSEE
relative the total area of the PREMISES.
XII. COVENANT OF QUIET ENJOYMENT:
CITY agrees that LICENSEE, upon payment of rentals and all other payments and
charges to be paid by it under the terms of this Agreement, and upon observing the covenants
and conditions of this Agreement on the part of LICENSEE, shall lawfully and quietly hold,
occupy, and enjoy the PREMISES during the term of this Agreement, without hindrance or
molestation from CITY or anyone claiming by, through, or under CITY.
XIII. SURRENDER OF POSSESSION:
LICENSEE agrees to yield and deliver to CITY possession of the PREMISES at the
termination of this Agreement, or -as -otherwise herein provided, in good condition and in
accordance with the express obligations hereunder, except for reasonable wear and tear, and shall
execute and deliver to CITY a good and sufficient document of relinquishment, if and when
requested.
XIV. FIXTURE AND EQUIPMENT CAPTIAL ACCOUNT FUND:
Upon the commencement of the to of this Agreement, CITY shall create a "Fixture and
Equipment Capital Account Fund" ("Fund"). The parties acknowledge that the purpose of the
Fund is to provide stand-by funding for the future maintenance, repair and/or replacement of
CITY Fixtures, LICENSEE Fixtures and any other improvements located on the PREMISES and
used for the LICENSED OPERATION. CITY shall invest all monies deposited in the Fund into
an interest-bearing bank account at a local federally or state chartered bank or savings and loan
institution. CITY shall account for all principal and interest generated in the Fund.
Within the time and in the manner set forth in Section II.E. above, LICENSEE shall
submit to CITY a quarterly report of gross receipts for the preceding fiscal quarter, or portion
thereof, in a format to be determined by CITY. LICENSEE shall pay to CITY an amount equal
to three-quarters of one percent (.75%) of gross receipts for the preceding fiscal quarter.
("Quarterly Fund Payment"), at the time quarterly report is submitted. Each Quarterly Fund
Payment shall be deposited by CITY into the Fund.
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Within fifteen (15) days following CITY's receipt of each Quarterly Fund Payment from
LICENSEE, CITY shall deposit an amount equal to the Quarterly Fund Payment for that fiscal
quarter into the Fund.
Either on CITY's own initiative or at the written request of LICENSEE, CITY may
spend all or a portion of the monies in the Fund for the replacement or repair of any CITY
Fixtures, LICENSEE Fixtures or such other improvements on the PREMISES necessary for the
LICENSED OPERATION, as determined in CITY's sole and absolute discretion.
All monies deposited in the Fund shall be the sole and exclusive property of CITY and,
upon termination of this Agreement; CITY shall retain title to all monies so deposited.
XV. LICENSEE IMPROVEMENTS AND ALTERATIONS:
LICENSEE shall not make or permit to be made any alterations, additions or changes
(collectively called "Alterations") to any part of the PREMISES without first obtaining the
written consent of CITY. CITY may grant or withhold consent for Alterations in its sole and
absolute discretion.
XVI. AGREEMENT IN DUPLICATE:
This Agreement is executed in duplicate, each copy of which shall be deemed as an
original.
XVII. ENTIRE AGREEMENT:
This License Agreement contains the entire agreement of the parties with respect to the
subject matter hereof, and supersedes all prior negotiations, understandings or agreement. This
Agreement may only be modified by a writing signed by both parties.
XVIII. GOVERNING LAW/VENUE:
This Agreement shall be governed by the laws of the State of California. Venue shall be
in Los Angeles County.
XIX. SUCCESSORS AND ASSIGNS:
This Agreement shall be binding on the successors and assigns of the parties.
XX. CONSTRUCTION, REFERENCES, CAPTIONS:
A. General. Since the parties or their agents have participated fully in the
preparation of this Agreement, the language of this Agreement shall be construed simply,
according to its fair meaning, and not strictly for or against any party. Any term referencing
time, days or period for performance shall be deemed calendar days and not work days. All
M,
references to LICENSEE include all personnel, employees, agents, and contractors of
LICENSEE, except as otherwise specified in this Agreement. All references to CITY include its
elected officials, officers, employees, agents and volunteers except as otherwise specified in this
Agreement. The captions of the various articles and paragraphs are for convenience and ease of
reference only, and do not define, limit, augment, or describe the scope, content, or intent of this
Agreement.
B. Incorporation of RFP Terms. To the extent they are consistent with the terms of
this Agreement; the terms of the RFP are hereby incorporated into this Agreement by reference.
In the event of a conflict between the terms of this Agreement and tete of the RFP, the
terms of this Agreement shall control.
XXI. NO THIRD PARTY BENEFICIARIES:
o
.'T
liggiff'T. urni me., 1 nw; I ii i i , . TrIM
If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable
by a court of competent jurisdiction, the remaining provisions shall continue in full force and
effect.
XXIII. DISPUTE RESOLUTION:
Informal Resolution/Mediation. If a dispute arises with respect to the performance or
non-performance of this Agreement, STAFF and LICENSEE's representative shall meet to
discuss and attempt in good faith to informally resolve the dispute. If STAFF and LICENSEE =s
representative are unable to good faith resolve the dispute, the parties may submit the dispute to
binding or non-binding mediation. The mediation shall be conducted in any manner and by any
person or mediation association mutually acceptable to the parties.
Arbitration. Any claims, disputes or controversies between the parties arising out of or
relating to the Agreement, or breach thereof, which have not been resolved in accordance with
the procedures set forth in the paragraph above, may be decided by binding or non-binding
arbitration. The arbitration shall be conducted in any manner and by any person or arbitration
association mutually acceptable to the parties.
Morin
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City of Downey
11111 Brookshire Avenue
Downey, California 90241-7016
Phone: (562) 904- 7284
Fax: (562) 904-7270
An: Director of Parks and Recreation
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
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EXHIBIT ,,
CITY Fixtures
Air Curtain (MARS)
1
Receiving Table -next to door for off-loading area (EAGLE)
1
Wa—lk-ln Cooler (3)/ Freezer (1) —(NATIONAL COOLER)
4
Cooler Freezer Shelving - 4 tier - 74" posts (I.S.S.)
ALL
Universal Rack Carts (SAMMONS)
3
Utility Cart (SAMMONS)
1
Ffa—nd Sinks w/ Soap & Towel (EAGLE)
4
Dry Storage Shelving - 4 tiers / 74" posts (I.S.S.)
6
Can Opener (EDLUND)
1
Table w/ Shelf Over (EAGLE)
3
Fire Protection - extinguishers
ALL
Employee Lockers (WINHOLT beige model #WL/16/CB)
1
Chemical Shelf - in Janitor closet
1
Janitor Sink w/ Faucet (EAGLE)
1
L -Shaped Pot/ Pan Sinks
2
L -Shaped Wall Shelves
2
Utensil Rack (EAGLE)
1
Pass Shelf - one long in front kitchen area and two small in back kitchen
3
area
Prep Sink w/ Faucet (EAGLE)
Portable Work Table (EAGLE)
Food Cutter (MANHART)
Work Table w/ Drawer (EAGLE)
Slicer - meat slicer seen at end of table (BERKEL)
Food Blender - grey and black seen on shelf below utensil rack
1
(HAMILTON BEACH)
Work Table (EAGLE)
3
-Mlx—er Stand (EAGLE)
1
20 QT. Mixer (BERKEL)
1
Sink w/ Faucet - seen in middle of picture (EAGLE)
1
Proof Box on Casters (SAMMONS)
Convection Oven (BLODGETT)
Stock Pot Stove (JADE)
F'I—oor Grate
2—
Exhaust Hood (AVTEC)
3
Wall Flashing
ALL
Lay -Off Table (EAGLE) -
1
Wall Protection
ALL
Ice Crusher (CLAWSON)
1 _
Ice Machine w/ Bin (Ice-O=Matic)
1
Model ICE1406HA w/ water filter manifold IFQ2, and evaporator (punch.
4/2016
Steam Table (CARTER HOFFMAN)
1
Carving Station w/ Work Lamp (ALTO -SHAM)
1
Wall Shelves
5
Slow Cook & Hold (ALTO -SHAM)
1
Banquet Carts (CARTER-HOFFMAN)
2
Model BB -96 and Model BB -1864
Fryers (ANETS)
ALL
Work Range (IMPERIAL)
1
Fill Faucet (T&S)
1
28" Garnish Cold Table– Sandwich Prep Station (M3 Turbo Air Refrig.)'
Model: MST -28-12 and Serial: MM2TB01007
Under Counter Refrigerator (VICTORY) – 4 cabinets located underneath
riddle
36" Underfired Broiler
1
36" Griddle (US RANGE)
1 _
48" Cheese Melter (US RANGE)
1
Six Open Burner Range, (US RANGE)
1
Filler Faucet (T&S)
1
Lay -Off Cabinet
1
72" Sandwich Prep. station
1
(Turbo Air)
Model MST -72 and Serial No: KMS7TBY100
Chefs Counter
1
60" Heat Lamps (HATCO)
2
Conveyor Toaster (HATCO)
1
Cold Table (VICTORY)
1
Pick -Up Ledge w/ Tray Lock
1
Shelving - 2 tiers per section - seen under locking pass table (I.S.S.)
8
-f—rue TC -23 -HC Refrigerator
Soiled & Clean Dish Tables
ALL
Disposer (SALVAJOR)
1
Located under Sink
Pre -Rinse (T&S) – located where person is washing dishes
1
Shelf (supportfrom back -splash of clean dish table)
1
Cup / Glass Rack Dollies (SAMMONS)
6
Small Ware Shelving (I.S.S.)
1
Service Counter
2
Roll Warmer (HATCO)
1
Water Station (dismantled)
1
Portable Bars (CARTER HOFFMAN)
2
55
Air Curtain
1
Hand Sink w/ Soap & Towel
I
- -----
Serving Counter
1
Wall Shelves
5
Hot Food Warmer (bottom aparatus)
1
Hot Dog Bun Warmer
1
Hot Dog Roller Grill
1
Storeroom Shelving on Caster
3
Display Refrigerator
1
(True Manufacturing Co.)
Model: GDM-47-LD Cabinet Serial No: 8983700
Sandwich Table
1
Shelving (4 tiers /74" 74" posts)
1
Security Camera
1
Cooler Freezer Shelving - 4 tier - 74" posts (I.S.S.)
ALL
....... . .....
Table w/ Shelf Over (EAGLE)
3
Fire Protection - extin uishers
ALL
Employee Lockers (WINHOLT beige model #WL/16/CB)
1
Chemical Shelf - in Janitor closet
1
Janitor Sink w/ Faucet (EAGLE)
1
L-Shaped Pot/ Pan Sinks
2
L-Shaelves
2
Utensil Rack (EAGLE)
1
Pass Shelf - one long in front kitchen area and two small in back kitchen
3
area
Prep Sink w/ Faucet (EAGLE)
1
Portable Work Table (EAGLE)
1
Food Cutter (MANHART)
I
Work Table w/ Drawer (EAGLE)
1
Slicer - meat slicer seen at end of table (BERKEL)
1
Food Blender - grey and black seen on shelf below utensil rack
1
(HAMILTON BEACH)
Work Table (EAGLE)
3
Combi-Cooker (ALTO-SHAM)
1
Exhaust Hood- 'AVTEC)
3
Wall Flashing
ALL
Lay -Off Table (EAGLE)
1
Wall Protection
ALL
Ice Crusher (CLAWSON)
1-1
Ice Machine w/ Bin (Ice-O-Matic)
I
Model ICE 1 406HA w/ water filter manifold I FQ2, and evaporator ( urch
56
4/2016
Steam Table CARTER HOFFMAN
1
Carving Station w/ Work LamALTO-SHAM
1
Wall Shelves
5
Banquet Carts (CARTER-HOFFMAN)
2
Model BB -96 -and Model BB -1864
F ersANETS)
ALL
Work Ran e IMPERIAL
1 -
Fill Faucet T&S
1
28" Garnish Cold Table— Sandwich Prep Station (M3 Turbo AirRefrig.)
Model: MST -28-12 Serial: MM2TB01007
Under Counter Refrigerator (VICTORY) — 4 cabinets located underneath
riddle
36"_Underfired Broiler
1
72" Prep. station - (Turbo Air)
1
Model: MST -72 Serial No: KMS7TBY100
Chefs Counter
1
Saucer/ Salad Plate -Dispensers CARTER_HOFFMAN
5 -
Queen Mary's VICTORY
1
Cu / Glass Dollies
5
Storeroom Shelvin on Caster
3
Display Refrigerator (True Manufacturing Co.)
1
Model GDM -47 -LD Cabinet Serial No: 8983700
Sandwich Table
1
Drainboard w/ Storage Under
1
Mug Froster on Casters (item to the right in the icture)
1
Back Bar Cooler Shelving located within cooler
1
Cooler Freezer Shelving -4 tier - 74" posts B.S.S.
ALL
Universal Rack Carts SAMMONS
3
Utility Cart SAMMONS
1
Pot / Pan Rack (I.S.S.
1
_ w.�
Hand Sinks w/ Soap & Towel EAGLE
4
D Stora e_Shelvin - 4 tiers / 74" osts I.S.S.
6 -
Can Opener EDLUND
1
Table w/ Shelf Over EAGLE
3
Fire Protection - extin uishers
ALL
Em to ee Lockers WINHOLT bei a model WL/16/CB
1
Chemical Shelf - in Janitor closet
=1
Janitor Sink w/ Faucet EAGLE
1
L -Sha ed Pot / Pan Sinks
2
L -Sha ed Wall Shelves
2
_
Utensil Rack EAGLE
1
Pass Shelf- one long in front kitchen area and two small in back kitchen
3
area
Pre Sink w/ Faucet EAGLE
1 -
Portable Work Table EAGLE
1
Food Cutter MANHART
1
Work Table w/ Drawer (EAGLE)
1
Combi-Cooker ALTO -SHAM
1
57
Exhaust Hood (AVTEC)
3
Wall Flashing
ALL
Wall Protection
ALL
Ice Crusher (CLAWSON)
1
Ice Machine w/ Bin (Ice -O -Matic)
1
Model ICE1406HA wl water filter manifold IFQ2, and evaporator (purch.
4/2016)
Steam Table (CARTER HOFFMAN)
1
Carving Station w/ Work Lamp (ALTO -SHAM)
1
Wall Shelves
5
Banquet Warming Carts (CARTE R-HOFFMAN)
Model BB -96 and Model BB -1 864
Fryers (ANETS)
ALL
Fill Faucet (T&S)
1
Garnish Cold Table (M3 Turbo Air Refri
I
Under Counter Refrigerator (VICTORY) — 4 cabinets located underneath
griddle
Subtop w/ Front Rail — metal storage containers and white rail on top
1
36" Griddle (US RANGE)
1
48" Cheese Melter (US RANGE)
1
6. Executive dining room furniture.
58
Date
Address
City, State: Zip Code:
Telephone'. Fax Number: E-mail
Federal Tax ID
Contact Person-,
B. STRUCTURE OF COMPANY (PLEASE CHECK ONE AND ANSWER QUESTIONS
ACCORDINGLY):
CORPORATION.- INDIVIDUAL: PARTNERSHIP:
Date of Incorporation, State of Incorporation.,
President's Name:
If other than a Corporation or Partnership, describe organization and name principals:
HOW MANY YEARS HAS YOUR ORGANIZATION BEEN IN FOOD SERVICE BUSINESS:
Years
HOW MANY YEARS HAS YOUR ORGANIZATION BEEN IN BUSINESS UNDER ITS
PRESENT BUSINESS NAME? Years
UNDER WHAT OTHER OR FORMER NAMES HAS YOUR ORGANIZATION OPERATED?
Name(s) Years
A. NAME OF PERSON WHO WILL BE ASSIGNED TO MANAGE FOOD SERVICE AT
RIO HONDO CLUBHOUSE.
Name:
59
Address:
Telephone Number:
B. DESCRIBE AND LIST WORK EXPERIENCE OF PERSON NAMED I
SECTION C. (ATTACHMENT IS. ACCEPTABLE):
C. DESCRIBE RESPONDENT'S ORGANIZATION AND HISTORY
(ATTACHMENT IS ACCEPTABLE):
Lei 0 Cx1r,
G. PRIMARY BANK REFERENCE:
Name:
Address:
Telephone Number: Contact:
DUN AND BRADSTREET
wo
Name
Address
Agent:
Phone
Total Bonding Capacity:
L
INSURANCE INFORMATION
Please provide certificates evidencing all general, auto, and umbrella liability and
Workers' Compensation insurance to fulfill complete Insurance_ requirements are set
forth in the Request for Proposal.
Name, Telephone Number of Agent:
YOUR •- TO ANY LABOR UNIONS OR NATIONAL
tradesMAINTENANCE AGREEMENTS? Yes, No
or ...
K. LIST FIVE MAJOR CLIENTS FOR WHICH YOUR ORGANIZATION HAS PROVIDED
SERVICES SIMILAR TO THOSE REQUESTEDBY OF DOWNEY DURING
THE PAST THREE YEARS:
Owner: - Location:
ContactName: Phone Number:
Annual Dollar Value: Years of Service:
Work Your Firm Performed:
Owner: Location:
Contact Name: Phone Number:
Annual Dollar Value: Years - of Service:
Work Your Firm Performed:
61
14
TI
Owner: Location -
Contact N
|oContactN Phone Number:
/\nOUe �DU8rV�|ue� --�� Y�8n� c���n/ice�
. � �Work Your Firm Performed,
Owner: :
Contact Phone Number:
Annual Dollar Value: Years of Service:
Work Your Firm Performed:
Owner: on:
Contact KaPhone Number.
AmnUe| Dollar Value: Years of Service:
Work Your Firm Performed-
Doyou have adocumented safety program?
Doyou have a documented hazard communication program:
Yea N
Doyou require documented hazard recognition safety meetings for:
SupervisorsFrequency
Employees Ye -No Frequency
New
N�Hinao Y� � Fnequ�noy_________
DOyou conduct regular and frequent documented safety inspections?
Yes No Frequency
Attach a copy of the company safety policy and program,
Provide a copy of your Company's OSHA Form No. 200 for the past three years. If you
do not complete OSHA 200 forms, provide your company's injury experience for the past
three years and an explanation of why you do not use OSHA Form 200.
Safety Staff
List the highest ranking safety professional in your organization and the percentage of
his/her time devoted to safety.
Name % of Time
Title
N. LIST ANY LEGAL CLAIM'S
•- BANKRUPTCY ACTIONS FILED WITHIN THE LAST
10 YEARS AGAINST THE PROPOSED ORGANIZATION:
63
• • • `• �1}
Name of Company
Address
City Zip
Telephone Fax L
Name of Principals Titles
I (we) submit the following Economic Proposal as described in the Request For Proposals
including its exhibits.
REQUIRED PRO FORMA: Bidders should submit a 5 -year pro forma containing estimates and
assumptions of financial and operational data. Key numbers in the performance will be the total
Estimated Monthly Revenue, with the City's share being shown as a Monthly Facility Rent, plus
a Percent of the Gross Revenue. The Percent of Gross should be proposed incrementally.
E. Monthly Facility Rent $---
F. Compensation
PERCENT OF MONTHLY GROSS (Under $ Gross) %
(Over $ _ Gross)
(Over $ - Gross)
(Over $ Gross)
oho
oho
EQUIPMENT CAPITAL ACCOUNT
Licensee agrees that anEquipmentCapital Account will be established. On a quarterly basis
Licensee shall pay to the City .75% of the gross revenue above $ from the preceding
fiscal quarter. The City will match this payment and place the total amount in the Equipment
Account Reserve. Funds from the Equipment Capital Account will be used for repair,
replacement,_ or equipment purchase of capital equipment with approval from the Authorized
City Representative.
All monies remaining in the Equipment Capital Account at the termination of the License
Agreement shall be the property of the City.
64
CAPITAL PARTICIPATION: Respondents should state their intent regarding capital
participation in supplying furniture, fixtures and equipment for the kitchen and/or restaurant.
This participation may be shown incrementally as it corresponds to the expected length of the
term of the contract, such as: 5 -year term equals $100,000 contribution; 10 -year term equals
$250,000 contribution; etc. (amounts shown are for purposes of example only).
All equipment and furnishings purchased by LICENSEE in the course of operating the
restaurant and stand shall remain the property of the LICENSE. AT the termination of this
Agreement, LICENSEE shall give the CITY the first right to purchase these items at a price to
be agree upon between the CITY and LICENSEE. The price shall be the then value of those
items in place, as determined by a qualified restaurant fixture appraiser selected by CITY and
LICENSEE. In the event an agreement cannot be reached as to selection of an appraiser, CITY
and LICENSEE shall each select an appraiser, and the two (2) chosen shall select a third. The
average of the three (3) appraisals shall be the price to be paid by CITY should the CITY elect
to purchase said furnishings and equipment.
C. Capital Equipment Term of Agreement
Participation/ $ Years
$
65
Years
Years
I hereby authorize the release of all financial and credit information and/or verification of
employment to the City of Downey as said items relate to my interest in securing an agreement
with the City. This form may be reproduced or photocopies to be utilized as my consent to
release financial and credit information or equipment verification.
Print Name Here Signed
Date
Applicable Account(s)
Financial Institution (number and type)
Applicable Acocunt(s)
Financial Institution (number and type)
MR
AffTUWT• • -•-i
State of California
County of Los Angeles
being first duly sworn,
deposes and states that he/she is
(Insert "sole owner" "partner' president" "secretary", or other proper title
who submits herewith to City of Downey the attached proposal;
Affiant deposes and states: that the proposal is genuine; that the same is not sham or
collusive; that all statements of fact therein are true; that such proposal was not made in
the interest, or on behalf of any person, partnership, company, association, organization
not therein named or disclosed.
Affiant deposes and states: that the Respondent has not directly or indirectly by
agreement, communication or conference with anyone, attempted to induce action
prejudicial to the interest of the City of Downey, or of any other Respondent, or anyone
else interested in the proposed agreement; that the Respondent has not in any manner
sought by collusion to secure to himself, itself or themselves, an advantage over any
other Respondent.
Affiant further deposes and states
(a) That none of our employees are employees of the City of Downey or employees of
public agencies for which the City Council is the governing body;
(b) That no City employee, or employees of public agencies for which the City Council is
the governing body serve as officers, principals, partners or major shareholders of the
Respondent,
(c) Than we are not former City employees who have been employed by the City of
Downey in the twelvemonths immediately preceding the date of this affidavit in position
of -substantial responsibility in the area of service to be provided by the proposed
agreement, and that no such employees have taken part in the development of said
proposed agreement or its service specifications.
I understand and agree that any falsification in this affidavit will be grounds for rejection
of this proposal or cancellation of any agreement award pursuant to this proposal.
I certify under penalty of perjury under the laws of the State of California that the
foregoing is correct and true.
Signed:
WARNING
67
PROPOSALS WILL NOT BE CONSIDERED
UNLESS THE AFFADAVIT HEREON IS
FULLY EXECUTED INCLUDING THE
CERTIFICATE OF THE NOTARY AND
THE NOTARY'S SEAL.
Signature
Title
Dated
I have read the information in this Request For Proposals. I (we): (1) am acquainted with the
scope of work to be performed as outlined in the Request For Proposal; (2) are familiar with the
terms and conditions contained in the Request for Proposal, including all exhibits and (4) 1 (we)
meet all qualifications for submitting a bid.
I (we) have read and fully understand and acknowledge and agree to the Insurance
Requirements and the Hold Harmless and Indemnification Requirements contained in the
Request for Proposal.
The undersigned hereby respectfully submits this proposal, including all required documents
and statements. The Respondent and Signatory(s) represent that the Signature(s) hold the
position(s) set forth below their signature(s) and that the Signature(s) are authorized to execute
this bid.
(Indicate the form of business concern Indicate your position, title and/or
on the line above, i.e. corporation function
individual, partnership, joint venture.
Signature
Address
City
State Zip
Telephone Fax
E -Mail Address
THIS LICENSE AGREEMENT is hereby made this 201h day of November, 2019 by and
between the CITY OF DOWNEY, a California municipal corporation and charter city,
hereinafter referred to as "CITY" and Z Golf Food & Beverage Services, LLC, a California
Limited Liability Company doing business as Wedgewood Weddings hereinafter referred to
as "LICENSEE". CITY and LICENSEE are collectively referred to herein as the "parties".
W IT N ES S _EF H.
WHEREAS, CITY desires that a qualified business operate a food and beverage
service concession at the City of Downey Rio Hondo Golf Club , located at 10627 Old River
School Road, Downey, CA 90241, Downey, CA, and
WHEREAS, on March 18, 2019, CITY issued "Request for Proposals" ("RFP") to
solicit qualified businesses to operate a food and beverage service concession at the City of
Downey Rio Hondo Golf Club, and
WHEREAS, on April 15, 2019, LICENSEE timely responded to the RFP by
submitting its qualifications to operate a food and beverage service concession at the City of
Downey Rio Hondo Golf Club, and
WHEREAS, after careful consideration of all proposals submitted in response to the
RFP, CITY has decided that LICENSEE is best qualified to provide the food and beverage
service concession services described herein, and
WHEREAS, CITY desires to enter into a License Agreement with LICENSEE for
providing the food and beverage service concession services upon the terms and conditions
set forth herein, and
NOW, THEREFORE, in consideration of their mutual covenants and conditions, the
parties hereto agree that the LICENSEE shall be granted the exclusive right, privilege and
obligation to operate and conduct a concession for the sale of food and beverages as set forth
in this License Agreement ("Agreement"),
1. DEFINITIONS:
A. For the purpose of this Agreement, the following words and phrases are
defined and shall be construed as hereinafter set out:
I. CITY: The City of Downey, acting by and through its City Council.
2. LICENSEE: Z Golf Food & Beverage Services, LLC, a California
Limited Liability Company doing business as Wedgewood Weddings the entity with whom
CITY has entered into this Agreement. The LICENSEE's President, or such other person as
may be designated in writing by LICENSEE, is the person with whom the City Manager
and/or Director of Parks and Recreation or his or her representative shall deal on a daily basis
regarding this Agreement. All employees and agents of the LICENSEE are subject to the
terms of this Agreement.
3. STAFF: The City Manager, Director of Parks and Recreation, or other
authorized representative(s), acting as agents of CITY.
4. LICENSED OPERATION: The limits of responsibility of this
Agreement include the supervision, preparation, and provision of food and beverage service
and operation of snack bar and beverage cart at the PREMISES. CITY acknowledges that
LICENSEE may conduct weddings, banquets and other events at the Premises.
5. PREMISES: Those portions of the City of Downey Rio Hondo Golf
Club to which CITY has granted exclusive license to LICENSEE to provide the LICENSED
OPERATION. The Premises are set forth on Exhibit "A" attached hereto and incorporated
herein and include the kitchen, restaurant/bar, offices, lobby, Bride's Room, banquet
room(s), men's and women's restrooms/locker rooms, snack bar, two (2) patio areas, terrace,
hallway, storage rooms and loading dock. LICENSEE may also use the Common Areas (as
hereinafter defined) as a location for taking bridal and event photographs provided
LICENSEE complies with any reasonable safety and security rules promulgated by the CITY
and not interfere with golf play.
6. FOOD AND BEVERAGE: Shall include prepared and packaged
meals, alcoholic and non-alcoholic beverages customarily available from an operation of this
type.
7. REVENUES: All realized income for catering services contracted for,
at and/or prepared on the PREMISES regardless of location of catered services, banquet
N
facilities, operation of snack bar and food/beverage cart,- and restaurant, less sales tax paid
by LICENSEE, refunds to guests, complimentary meals,gratuities/tips and service charges.
[I. NT/ PORTING:
A. In consideration for the rights and privileges of operating the PREMISES for
food and beverage service, LICENSEE shall pay CITY a minimum monthly rent ("Rent")
calculated as follows:
I . For the period January l, 2020 through January 31, 2020, rent will be waived.
2 For each year commencing February 1, 2020 through December 31, 2020,
LICENSEE shall pay to CITY Rent as follows: 9% of Revenues
("Threshold") or $91;666.66 annually, whichever is greater. Payments shall
be made monthly commencing February 1, 2020 through December 31, 2020;
LICENSEE shall pay to City Rent in the amount of Eight Thousand Three
Hundred Thirty Three and 33/100 Dollars ($8;33333).
3. For each year commencing January 1, 2021 through December 31, 2029,
LICENSEE shall pay to CITY Rent as follows: 9% of Revenues or $150,000
annually, whichever is greater. Payments shall be made monthly commencing
January I 2021 through December i ' LICENSEE shall pay to City
amountRent in the of ;usand Five Hundred and • i1 Dollars
($12,500:00).
4. For each calendar year of the Term commencing in calendar year 2020,
LICENSEE shall submit an annual report of Revenues as required by Section
II.D. below by January 31 of the following calendar year. In the event the
Revenues for such calendar year exceed the annual rent minimum of
$91,666.66 for 2020 and $150,000 for years 2021-2029, the foregoing annual
payments of Rent shall be adjusted to equate for the additional money owed to
the CITY. LICENSEE shall make such payment by February 15. For
example; in calendar year 2020, if the actual Revenues equal One Million
Two Hundred Thousand and o/100 Dollars ($1,200,000.00), the
LICENSEE's payment for calendar year 2020 would be One Hundred and
Eight Thousand and No/100 Dollars ($108,000:00): LICENSEE shall pay the
City $108,000.00 minus previous rent payment of $91,666.66 which equals
$16,333.34 (9% of Revenues = $108,000 - $91,666.66 (base payment).
B. Payments of the monthly Rent for the preceding month shall be made by
LICENSEE to CITY on monthly basis and payable no later than the 15th of the subsequent
month (or the next business day if the 15th falls on weekend or holiday) accompanied with a
monthly report described in Section ILD below.
In the event this Agreement is terminated during the to of this Agreement, or upon
expiration of this Agreement, LICENSEE shall pay to CITY Rent calculated through the
effective date of termination or expiration of this Agreement accompanied by an annual
report reflecting activity through the effective date of termination or expiration of the
Agreement as described is Section ILD below.
Pursuant to Section V.A.22, CITY shall have the right to examine or audit any and all
financial books, records and statements of LICENSEE related to the LICENSED
OPERATION in order to ascertain and/or verify the sums due CITY under this Agreement.
C. In the event that LICENSEE fails to pay monthly Rent when due as required
by this Section 11, LICENSEE shall pay to CITY a penalty of 10% of the principal amount
due.
D. Except as otherwise provided in Section 11.13 above, LICENSEE shall submit
to the Director of Parks & Recreation and the Director of Finance, a monthly and annual
report outlining Revenues of the center, snack bar, restaurant and beverage cart for the
preceding month, or portion thereof as applicable. The monthly and annual report is due to
CITY with the Rent as set forth in Section 11.13 above. The monthly and annual report shall
be in -a format approved by the CITY.
111. TERM:
The to of this Agreement shall commence on January 1, 2020 and expire on
December 31, 2029 unless earlier terminated in accordance with other provisions of this
Agreement.
IV. FACILITIES AND SERVICES TO BEP VIED BY CITY:
A. CITY shall provide to LICENSEE an exclusive license to use and operate the
PREMISES and a non-exclusive license to use the common areas around the Premises and
the adjacent golf course ("Common Areas"). CITY shall maintain, repair and replace in good
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operating condition, the exterior walls, main plumbing and electrical lines, gas and sewer
B. CITY shall provide for the use of LICENSEE and its patrons the parking Iota
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C. CITY shall service and maintain all parking areas, Common Areas, and all
landscaping and planter areas outside the Clubhouse and golf course in good operating
condition.
D. CITY shall provide those certain fixtures, furniture and equipment to be used
on the PREMISES, ("City Fixtures") as more particularly set forth in attached Exhibit "B",
and incorporated by reference herein, all for use on the PREMISES consistent with the terms
of this Agreement. All City Fixtures shall be maintained by LICENSEE in good condition
and repair throughout the to of this Agreement, ordinary wear and tear excepted. Title to
the City Fixtures shall remain in CITY throughout the to of this Agreement and, upon
termination of this Agreement, CITY shall have the right to retake and repossess the City
Fixtures for any use CITY deems appropriate. No provision of this Agreement shall be
deemed to grant any right, title or interest in the City Fixtures to LICENSEE, beyond a
license and right for LICENSEE to use the City Fixtures, provided LICENSEE uses the City
Fixtures in a manner consistent with the terms of this Agreement.
V. OPERATING RESPONSIBILITIES:
A. GENERAL
all Services under this Agreement in a skillful and competent manner, and consistent with the
standards generally recognized as being employed by professionals in the same discipline in
the State of California. LICENSEE represents and maintains that it is skilled in the
professional calling necessary to perform the Licensed Operation and services. LICENSEE
warrants that all employees and subcontractors shall have sufficient skill and experience to
perform the Licensed Operation and services assigned to them. Finally, LICENSEE
represents that it, its employees and subcontractors have all applicable licenses, permits,
qualifications and approvals of whatever nature that are legally required to perform the
Licensed Operation and services, including a City Business License, and that such license(s)
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and approval(s) shall be maintained throughout the term of this Agreement. LICENSEE
shall ensure to the reasonable satisfaction of STAFF that its employees shall be satisfactory
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and not an employee of CITY or ajoint venturer, partner or affiliate of CITY. All employees
of LICENSEE performing the services under this Agreement on behalf of LICENSEE shall
also not be employees of City and shall at all times be under LICENSEE's exclusive direction
and control. LICENSEE shall pay all wages, salaries, and other amounts due such
employees in connection with their performance of services under this Agreement and as
required by law. LICENSEE shall be responsible for all reports and obligations respecting
such employees, including, but not limited to: social security taxes, income tax withholding,
unemployment insurance, disability insurance, and workers' compensation insurance.
2. Cleanliness: LICENSEE shall keep the PREMISES and the
surrounding area clean and sanitary at all times and in compliance with regulations of the Los
Angeles County Health Department. No hazardous or harmful waste or refuse, nor any
substance constituting an unnecessary, unreasonable or unlawful fire hazard, or material
detriment to the public health, shall be permitted or remain thereon, and LICENSEE shall
prevent any such matter or material from being or accumulating upon said PREMISES.
LICENSEE shall: (a) provide for all refuse to be collected as often as necessary and in no
case less than twice a week; (b) furnish all equipment and materials necessary therefore,
including trash receptacles of_a size, type and number approved by CITY for use by the
public; (c) empty trash receptacles into the trash storage area as often as necessary; (d) clean
and disinfect restrooms at least twice daily, keeping the areas free of dirt and fully stocked
with paper goods; (e) carpeted areas shall be maintained free of spillages, dirt accumulation,
crusted material, spots, and stains; (f) hard floor services shall be maintained clean and free
of debris or foreign matter; (g) all walls shall be maintained and free of spots, smudges, and-
other
ndother foreign markings; LICENSEE will avoid damaging the comers of the walls with proper
care of equipment between spaces; (h) furniture will be maintained and free of dust, dirt, and
stains and shall present an overall clean appearance; (i) doors and kick plates shall appear
clean and free of dust, dirt, streaks, and splashings; 0) outdoor smoking areas shall be
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serviced to present an overall clean appearance, free of discarded materials with ashtrays
clean and emptied after use; (k) miscellaneous counter tops, tables, chairs, sinks, and fixtures
are to be clean, disinfected, bright and free of dirt, stains, or foreign matter; drinking fountain
fixture surfaces shall be clean and bright, free of dust, stains, streaks, and trash with nozzles
kept free of encrustation and metal services shall have a polished lustrous appearance; (1)
hard floors that are wet for any reason, including mopping, shall be so marked with proper
temporary signage; (in) lighting fixtures are to be checked daily with bulbs replaced as
necessary and faulty fixtures must be reported to City immediately; (n) leaky or
malfunctioning fixtures shall be repaired/replaced promptly; walls, ceilings, screens, and
windows shall be cleaned twice monthly in restrooms.
3. Conduct and A earanceofE�mlo �ees: LICENSEE shall at all times
conduct its business in a quiet and orderly manner to the reasonable satisfaction of the
STAFF. All LICENSEE's employees assigned to work at the PREMISES shall present a
neat, well-groomed appearance at all times and wear uniforms or business attire as
appropriate and in compliance with the employee grooming standards set forth on Exhibit
"D" attached hereto and made a part hereof, provided; however, LICENSEE may modify
such standards in its reasonable discretion with CITY's consent which consent shall not be
unreasonably withheld. Employees shall be easily identified while working on the
PREMISES. The LICENSEE shall pay for and bear the maintenance cost of special uniforms
for all employees working on the PREMISES. The CITY shall maintain the right to
reasonably approve all food service uniform designs utilized within the PREMISES. Name
badges are required to be wom by employees during normal business hours. The uniform
shall be worn as a complete unit and be fitted property. The uniform shall be cleaned and
pressed with no rips, tears or permanent stains present.
4. Disorderly Persons: LICENSEE shall use its best efforts to prohibit
intoxicated persons from being in or about the PREMISES and to prohibit profane or
indecent language, or boisterous or loud conduct in or about the PREMISES and will call
upon the aid of peace officers to assist in maintaining peaceful conditions.
5. Master Calendar: It shall be the responsibility of LICENSEE to
maintain a Master Calendar of bookings and reservations for banquets, luncheons and other
group events, and to avoid duplication of reservations. All customer deposits for future
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of this Agreement, shall operate a snack bar in the existing structure located adjacent to the
golf pro shop. Except as otherwise provided in this Agreement, LICENSEE shall provide the
necessary equipment, furnishings and fixtures necessary to render proper snack bar service.
The restroom facilities in said structure shall be maintained, serviced and kept in good repair
by LICENSEE at its sole cost and expense. Any improvements to the snack bar structure,
including signage, proposed by LICENSEE at its sole expense, shall be subject to prior
written reasonable approval by the Director of Parks & Recreation.
7. Food and Beverage Products: All food, beverages, confections and
refreshments sold or maintained for sale by LICENSEE shall be subject to reasonable
approval or rejection by STAFF. Prices on all food, beverages and other merchandise sold in
the Hacker's Restaurant ("Restaurant") and at the refreshment stand shall be reasonable and
shall be comparable to those charged by restaurants in CITY and at public golf courses in the
Los Angeles Metropolitan area. No adulterated, misbranded, or impure articles shall be sold
or kept for sale by LICENSEE, and all merchandise kept on hand by LICENSEE shall be
stored and handled with due regard to sanitation. LICENSEE shall at all times keep a
sufficient supply of all food, beverages and merchandise to adequately serve the public.
& Recreation Director annually for reasonable approval. If LICENSEE desires any
changes to pricing after annual approval, including adding service fees, LICENSEE shall
notify the Director of Parks & Recreation before implementing changes to the LICENSEE's
price list or service fees. LICENSEE's written notification to the Director of Parks &
Recreation shall be provided no later than thirty (30) days prior to the effective date of the
changes to the price list or service fees. Prices should be reasonable or comparable to similar
venues. For Downey non -profits, LICENSEE shall give discounts in accordance with Exhibit
4CC13.
9
8. Hours of Operation.: LICENSEE shall keep the PREMISES open
seven days per week during the following minimum hours:
Facilily
Open
Close
Restaurant/ Lounge
11:30 a.m.
4:30 p.m.
Banquet
As Scheduled
Snack Bar
Daylight not later than
Winter not earlier than
- 6:00 a.m.
- 4:00 p.m.
Summer not earlier than
- 8:00 p.m.
Notwithstanding the foregoing minimum hours, LICENSEE and CITY agree that in the event
the golf course opens late, closes early or does not open for any reason including inclement
weather or a holiday, the foregoing hours maybe adjusted and/or the services provided under
this Agreement modified by LICENSEE in its commercially reasonable discretion after
discussions with the STAFF. If LICENSEE fails three (3) times in any calendar month to
conform its operations to the foregoing schedule during any -24-hour period, CITY may
terminate this Agreement for cause pursuant to Article VIII, below. Changes may be made
tote foregoing schedule if such changes are mutually agreed to by the LICENSEE and
STAFF.
9. Laws and Ordinances: LICENSEE shall conduct its business in
accordance with all Federal, State and local laws, ordinances, rules and regulations
applicable to such business.
10. Permits and Licenses: LICENSEE shall, at its sole cost and expense
obtain any and all permits or licenses that may be required by Federal, State or local law in
connection with the operation of the PREMISES.
11. 14�c� dq& Chittg�s- CITY hereby gives notice and LICENSEE
acknowledges that it has received notice pursuant to Section 107.6 of the Revenue and
Taxation Code of the State of California, that by virtue of the fact that the PREMISES are
owned in fee by a local public entity, it is possible that the PREMISES may be subject to a
property tax if a possessory interest -is -created and that the party in whom the possessory
interest is vested may be subject to the payment of property taxes levied on such interest.
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LICENSEEagreesand acknowledges that LICENSEE shall be solely responsible for any
property tax imposed.
LICENSEE covenants and agrees to pay and discharge, during the entire terrn
of this Agreement, before delinquency, all taxes assessments water charges, sewer charges
utility rates and fees, levies or other charges, general, special; ordinary, extraordinary and
otherwise; of every kind and character which are or may durin,te term be levied, charged,
assessed or imposed upon or against the PREMISES or any improvements which are now or
hereafter located thereon, or against any of LICESEE's personal property now or hereafter
located thereon. At the commencement and at the end of the term of this Agreement, such
taxes, assessments and other charges to be paid by LICENSEE shall be prorated on the basis
of the fiscal year of the taxing authority in question so that, at the commencement and at the
end of the term, as to any such taxes, assessments and other charges levied or assessed for a
fiscal year preceding the commencement or extending beyond the end of the Term,
LICENSEE will pay only such proportion of such taxes, assessments and other charges as the
portion of such fiscal year following the commencement and preceding the end of the term
bears to the entire fiscal year.
CITY shall have the right, but not the obligation, at all times during the term
of this Agreement to pay any taxes, assessments or other charges levied or assessed upon or
against the PREMISES or any improvements which are now or hereafter located thereon, and
to pay, cancel and clear off all tax sales liens, charges and claims upon or against the
PREMISES or any improvements which are now or hereafter located thereon and to redeem
the PREMISES from the same, or any of them, from time to time, without being obligated to
inquire as to the validity of the same. Any sum so paid by CITY shall become due and
payable by LICENSEE on the next day after any such payment by CITY.
12. Vendinsay Machines. LICENSEE shall first obtain prior written
approval from CITY before installing or permitting to be installed any vending machines of
any kind. Any revenue generated from operation of the vending machines will be deemed a
part of "Revenues", for purposes of calculating excess rental and LICENSEE shall account
for such revenue pursuant to Section II. of this Agreement.
13. Safety: LICENSEE shall regularly monitor for and correct any safety
deficiencies and violations of safety practices immediately and shall cooperate fully with
IN
CITY in the investigation of accidents occurring on the PREMISES. In the event of injury to,
a patron or customer, LICENSEE shall ensure that the injured person receives prompt and
qualified medical attention, and as soon as possible thereafter, it shall submit to CITY a "City
of Downey Incident and Accident Report" form in substantially the same form as Exhibit "E"
attached hereto and made a part hereof.
14. Promotion: LICENSEE shall at all times provide for the best possible
public and community relations through publicity, advertising and personal public relations.
Marketing content placed in City newsletters, brochures, social media or on the City's
website shall be approved in advance by the Director of Parks & Recreation. Use of the City
seal, mottos, patches and logos by LICENSEE shall comply with Downey Municipal Code
Section 2950, et seq.
15. 'Utilities: LICENSEE shall pay before delinquency all charges
(including connection charges, taxes, assessments or surcharges thereon) for all separately
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required to operate the Restaurant, bar, banquet room(s), refreshment stand. CITY
ccknowledges that the foregoing utilities are all separately metered. CITY shall be
responsible for water, garbage and rubbish pickup.
16. Liquor License: LICENSEE shall acquire liquor license from the prior
operator by January 31, 2020 with the assistance of CITY, and maintain in good standing at
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outside beer and wine (excluding other liquor) to be permitted on the PREMISES during
the CITY. Each tournament host must, in advance, apply and receive approval of a one -day
State of California Alcohol Beverage Control (ABC) Daily License Authorization (Form
ABC -221), and assume all responsibilities for submitting the fees and gathering all necessary
signatures. Said License must be obtained at least 7 days before the tournament. Each
tournament host Must sign a Release of Liability releasing the LICENSEE and CITY from all
claims, lawsuits, losses, damages associated with the One -Day Alcohol Buyout. Each
tournament host shall pay a $250 beer/wine buyout fee. (fee to offset the loss of revenue).
The LICENSEE has the right to require the tournament host to stop alcoholic beverage
service to any individual or group at anytime when LICENSEE determines the actions of an
individual or group is causing damage to the PREMISES. When outside beer and wine is
served, the CITY requires at least one (1) licensed security guard present for the event at the
sole cost of the tournament host. If a tournament host elects to have outside beer and wine to
be served at the tournament, itis required that food also be available during the entire time
such beer and wine is served. If the tournament host chooses to have the PREMISES' mobile
cart snack bar and building snack bar services, $250 for each snack bar shall be paid by the
tournament host. In addition, the tournament host would like to bring a food truck or outside
catering for lunch, there will also be a separate $250 food buyout fee (fee to offset the loss of
revenue). Tournament host must provide general commercial liability insurance in the
amount of $2,000,000, approved by the CITY's Risk Manager, naming LICENSEE and
CITY, and CITY's officers, officials, agents, and employees as additional insureds on the
policy.
(ii). The tournament host shall obtain all necessary approvals and
authorizations for outside alcohol beverages to be served orate PREMISES.
should deny or revoke approval to serve outside alcoholic beverages at the tournament, the
tournament reservation/contract may be terminated at the sole discretion of the CITY, with
the CITY incurring no liability or responsibility for losses or damages suffered by the
tournament host.
b) Transfer of Liquor License. Upon termination of this Agreement,
whether for cause following a Default, LICENSEE shall, within
thirty (30) days following said termination, offer in writing to
se[l/transfer its liquor license to CITY's designee. Within thirty (30) days
following CITY's receipt of LICENSEE's written offer, CITY shall
respond in writing as to whether its designee desires to purchase
LICENSEE's liquor license. If CITY indicates that its designee desires
to purchase the liquor license, LICENSEE shall sell/transfer said liquor
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license to CITY's designee, within sixty (60) days following
LICENSEE's receipt of CITY's designee's written notice to purchase
the liquor license. LICENSEE shall be entitled to the purchase/transfer
of the liquor license and CITY's designee, shall pay fair and adequate
consideration. In the event that LICENSEE and CITY's designee
cannot agree as to fair and adequate consideration for the liquor license,
the parties agree to have the value determined byte appraisal process set
forth in Section V.A. 18. below, except that the appraiser(s) shall be
qualified to valuate liquor licenses in this case.
17. Si ns and Advertisements. No permanently placed signs or
advertising matter of any kind shall be displayed on the PREMISES unless and until
approved in writing by the STAFF.
18. Fixtures and Equipment: Except as otherwise provided in Section
IV.D. of this Agreement (pertaining to "City Fixtures"), LICENSEE, at its sole cost and
expense, shall provide and maintain all furniture, kitchen, and food service fixtures and
equipment, including but not limited to office furniture, smallwares (which include dishes,
flatware, pots, pans, mixers, glasses, utensils, etc.) electronic equipment, food carts, and
other facilities used for the LICENSED OPERATION ("LICENSEE Fixtures"). All
LICENSEE Fixtures shall be provided and maintained by LICENSEE in good condition and
repair.
• later than July 1, 2021, LICENSEE shall have invested not less than •
Hundred Thousand Dollars ($100,000) into LICENSEE Fixtures to service the LICENSED
OPERATION ("Capital Investment Obligation"). Notwithstanding the above, any
LICENSEE's investments in smallwares shall not count toward the Capital Investment
Obligation. "Capital Investment Obligation" may include, but is not limited to improvements
to kitchen, snack shack, restaurant, bar, patio area, and/or equipment in any of the facilities
licensed to LICENSEE and reasonably approved in advance by City and its Public Works
Department.
In order to verify compliance with the Capital Investment Obligation set forth
above, not later than July 15, 2021, LICENSEE shall submit to CITY a written statement, in
a format to be determined by CITY, outlining those LICENSEE items (excluding
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smallwares) purchased and demonstrating a total expenditure of not less than One Hundred
Thousand Dollars ($100,000) for said LICENSEE items (excluding "small wares" ). Within
thirty (30) days following CITY's receipt of a written statement from LICENSEE, CITY
shall evaluate the accuracy of the written statement and shall notify LICENSEE in writing of
CITY's determination that either LICENSEE's Capital Investment Obligation has or has not
been met. If CITY detennines that LICENSEE's Capital Investment Obligation has been
met, CITY shall so reflect that determination in its response and LICENSEE shall have no
further Capital Investment Obligation under this paragraph. If CITY determines that
LICENSEE has not met its Capital Investment Obligation, CITY shall state so in its response
as well as the amount remaining to be invested for LICENSEE to satisfy the Capital
Investment Obligation. LICENSEE shall, within ninety (90) days following its receipt of
CITY'S response, invest in such additional LICENSEE fixtures as necessary to meet the
Capital Investment Obligation.
All LICENSEE Fixtures purchased and used by LICENSEE in the course of
operating the PREMISES shall remain the property of LICENSEE, except Capital
Investment Obligation. Within 90 days prior to termination of this Agreement, LICENSEE
shall give the CITY the right of first refusal to purchase all LICENSEE Fixtures used on the
PREMISES. (Within 60 days prior tote of this AGREEMENT, CITY shall inform
LICENSEE, in writing, whether it wishes to purchase the said LICENSEE's Fixtures, or any
portion thereof.)
If City indicates that it wishes to purchase, the price shall be determined as follows:
a.) The price shall be the then current value of those items to be purchased
by CITY, as determined by a single qualified restaurant fixture,
furniture and equipment appraiser ("Appraiser") mutually selected by
CITY and LICENSEE. CITY and LICENSEE shall each pay for one-
half of the costs of the mutually agreed Appraiser.
b.) In the event CITY and LICENSEE cannot agree upon a mutually
selected Appraiser, CITY shall select a qualified Appraiser, to be paid
at CITY's sole cost and expense, and LICENSEE shall select a
qualified Appraiser, to be paid at LICENSEE's sole cost and expense.
The two Appraisers chosen by CITY and LICENSEE shall then select
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a third Appraiser. CITY and LICENSEE shall each pay for one-half
of the costs of the third Appraiser. The average of the three (3)
appraisals of the then current value of those items shall be the price to
be paid by CITY.
19. Facility Maintenance. LICENSEE agrees to maintain and repair all
carpeting, draperies, doors, fixtures, furniture, equipment and other interior/non-
structural improvements at the PREMISES in a presentable condition at all times.
Except as provided in Article IV, LICENSEE shall maintain and repair the
PREMISES. LICENSEE shall clean and sweep all walkways and approaches to
entries to the PREMISES. The cost of LICENSEE maintenance and repairs may be
paid out of the "Fixture and Equipment Capital Account Fund" as more particularly
set forth in Article XIV. To the extent LICENSEE maintenance and repairs are not
paid for out of the "Fixture and Equipment Capital Account Fund", LICENSEE shall
perform such maintenance and repairs at its sole cost and expense. Monthly detailed
logs will be provided to the City that will include which equipment was maintained,
how it was maintained, and service provider as applicable.
20. Control and Repair of PREMISES: CITY shall have full and absolute
control of the buildings and all appurtenances thereto during the to of this Agreement, and
shall have the right to make such changes and alterations therein and in the grounds
surrounding the same as may be determined by CITY, provided the CITY provides
reasonable written notice of such changes and alterations to LICENSEE (except in the case
of an emergency). CITY shall consult with LICENSEE regarding any proposed
improvement and shall take commercially reasonable efforts to limit the interference with
LICENSEE's business operations and use of the PREMISES during such proposed
improvement. In the event that changes or alterations made by CITY shall require
LICENSEE to suspend its business, the CITY shall suspend LICENSEE's Rent during that
period of time and the Rents due to CITY shall be prorated as may be agreed to between the
parties.
21. Richt of Entry: CITY, its authorized representatives and agents shall
have the right to enter upon the PREMISES at any and all reasonable times during the term
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complying with the terrns and conditions hereof, or for any other purpose incidental to the
rights of CITY.
22. Recordkeeping and Inspection. LICENSEE shall maintain complete
and accurate records with respect to all gross receipts and profits realized; and all costs and
expenses incurred by LICENSEE under this Agreement. All such records shall be clearly
identifiable. Upon five (5) days advance notice from CITY, LICENSEE shall allow a
representative of CITY during normal business hours to examine, audit, and make transcripts
or copies of suchrecordsand any other documents created pursuant to this Agreement.
LICENSEE shall allow inspection and copying of such documents related to this Agreement
for a period of three (3) years following the termination of this Agreement.
Should any examination or audit of LICSEE's records reveal an underpayment of
any rentals; fees or charges to CITY under this Agreement, LICENSEE shall pay said
underpayment to CITY, plus penalties as set forth in Section I1. Above, not later than thirty
(30) days following LICESEE's receipt of CITY's written demand for payment.
CITY shall _bear all costs of any audit of LICE SEE's records, except,
notwithstanding the preceding sentence, should an underpayment of more than ten percent
(10%) but less than twenty percent (20%) be discovered, LICENSEE shall be responsible for
fifty percent (50%) of CITY's costs of said audit and, further, should an underpayment of
more than twenty percent (20%) be discovered, LICENSEE shall be responsible for all of
CITY's costs of said audit.
The LICENSEE shall transmit to the Director of Finance a Profit and Loss Statement and
a Balance Sheet for the LICENSED OPERATION, prepared in a form and by an
accounting firm acceptable to CITY on an annual basis during the term of the License
Agreement.
23. Serviceware: Restaurant and banquet functions will use conventional
China, glass, and flatware. Disposables will be used in the snack bar and available upon
request for takeout service. Paper "dinner -style" napkins may be used in the dining room and
lounge. Linen will be used for banquet functions."
VI. LIABILITY AND INSURANCIN
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A. Time for Compliance. LICENSEE shall not commence the LICENSED
OPERATION under this Agreement until it has provided evidence satisfactory to
the CITY that it has secured all insurance required under this section. In addition,
LICENSEE shall not allow any subcontractor to whom LICENSEE has assigned
its responsibilities under this Agreement to commence work on any subcontract
until it has provided evidence satisfactory to the CITY that the subcontractor has
secured all insurance required under this section. The CITY reserves the right to
modify these requirements in its reasonable discretion, including limits, based on
the nature of the risk, prior experience with insurer, coverage or other special
circumstances.
B. Minimum Requirements. LICENSEE shall, at its expense, procure and
maintain for the duration of the Agreement insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the performance of the
Agreement, the LICENSED OPERATION by the LICENSEE, its agents, representatives,
employees or subcontractors. LICENSEE shall also require all of its subcontractors to
procure and maintain the same insurance for the duration of the Agreement. Such insurance
shall meet at least the following minimum levels of coverage:
I. Minimum Scope of Insurance. (1) Commercial General Liability (CGL):
Insurance Services Office Form CG 00 01 covering CGL on an
"occurrence" basis including products and completed operations, property
damage, bodily injury and personal and advertising injury; (2) Automobile
Liability: Insurance services Office Form Number CA 0001 covering
Code I (any auto) or if LICENSEE owns no autos, Code 8 (hired) and 9
(non -owned); and (3) Workers' Compensation : Workers' Compensation
insurance as required by the State of California with Statutory Limits; and
(4) Employer's Liability Insurance.
2. Minimum Limits of Insurance. LICENSEE shall maintain limits no less
than: (1) Commercial General Liability (CGL): No less than $2,000,000
17
per occurrence for products and completed operations, bodily injury,
property damage and personal and advertising injury. If Commercial
General Liability Insurance or other form with general aggregate limit
applies, either the general aggregate limit shall apply separately to this
Agreement/location (ISO CG 25 03 or 25-04) or the general aggregate
limit shall be twice the required occurrence limit; (2) Automobile
Liability: No less than $2,000,000 per accident for bodily injury and
property damage; and (3) Workers' Compensation: Workers'
Compensation limits as required by the Labor Code of the State of
California with Statutory Limits; (4) Employer's Liability: Employer's
Liability limits of no less than $2,000,000 per accident for bodily injury or
disease. Employer's Liability coverage may be waived by the CITY if
CITY receives written verification that LICENSEE has no employees.
If the LICENSEE maintains ro er coverage an or g er imits t an t e minimum
shown in this section, the CITY requires and shall be entitled to the broader coverage and/or
the higher limits maintained by the LICENSEE. Any available insurance proceeds in excess
of the specified minimum limits of insurance and coverage shall be available to the CITY.
C. [Intentionally Deleted].
D. Insurance Endorsements. The insurance policies shall contain the following
provisions, or LICENSEE shall provide endorsements on forms approved by the CITY to add
the following provisions to the insurance policies:
1. Additional Insured Status. The Commercial General Liability policy shall
be endorsed to state that: (1) the CITY, its directors, officials, officers,
employees, agents and volunteers shall be covered as additional insureds
with respect to liability arising from the work, services, LICENSED
OPERATION performed by or on behalf of the LICENSEE, including
materials, parts or equipment furnished in connection with such work,
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services. LICENSED OPERATION ; and (2) the insurance coverage shall
be primary insurance as respects the CITY, its directors, officials, officers,
employees, agents and volunteers, or if excess, shall stand in an unbroken
chain of coverage excess of the LICENSEE's scheduled underlying
coverage. Commercial General Liability insurance coverage may be
provided in the forrn of an endorsement to the LICENSEE's insurance (at
lease as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26,
CG 20 33 or CG 20 38; and CG 20 37 forms if later revisions are used).
2. Waiver
• Su • LICENSEE ereby grants to CITY a waiver •
any right to subrogation which any insurer of said LICENSEE may
acquire against the CITY by virtue of the payment of any loss under said
insurance policies set forth herein. LICENSEE agrees to obtain any
endorsement that may be necessary to affect this waiver of subrogation,
but this provision applies regardless of whether or not the CITY has
received a waiver of subrogation endorsement from the insurer.
t. All ♦ Each insurance policy required by this Agreement shall be
endorsed to state that: (A) coverage shall not be suspended, voided,
reduced or canceled except with written notice by certified mail, return
receipt requested to the CITY; and (B) any failure to comply with
reporting or other provisions of the policies, including breaches of
warranties, shall not affect coverage provided to the CITY, its directors,
officials, officers, employees, agents and volunteers.
E Primary Coverage. For any claims related to this Agreement, the
LICENSEE's insurance coverage shall be primary insurance and primary coverage at least as
broad as ISO CG 20 01 04 13 with respect to the CITY, its directors, officials, officers,
employees, agents and volunteers. Any insurance or self-insurance maintained by the CITY,
its directors, officials, officers, employees, agents and volunteers shall be excess of the
LICENSEE's insurance and shall not be called upon to contribute with it in any way.
In
F. Separation of Insureds; No Special Limitations. All insurance required by this
Section shall contain standard separation of insureds provisions. In addition, such insurance
shall not contain any special limitations on the scope of protection afforded to the CITY, its
directors officials, officers, employees, agents and volunteers.
G. Deductibles and Self -Insurance Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the CITY (except commercially reasonable
deductibles). CITY may require LICENSEE to provide proof of ability to pay losses and
related investigations, claim administration and defense expenses and costs within the
retention. The policy language shall provide or be endorsed to provide that the self-insured
retention may be satisfied by either the named insured or CITY.
H. Acceptability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating no less than A:V11, authorized to do business in California, and
satisfactory to the CITY.
I. Verification of Coverage. LICENSEE shall furnish CITY with original
certificates of insurance, including all required amendatory endorsements
(or copies of the applicable policy language effective coverage required by
this provision) and a copy of the Declarations and Endorsement Page of
the Commercial General Liability policy listing all policy endorsements to
the CITY before the commencement of work under this Agreement.
However, failure to obtain the required documents prior to the
commencement of work under this Agreement shall not waive the
LICENSEE's obligation to provide them to the CITY. The CITY reserves
the right to require complete, certified copies of all required insurance
policies, including endorsements, at anytime.
J. Claims -Made Policies. If any of the policies provide coverage on a claims -
made basis:
W
1. The retroactive date must be shown and must be before the date of this
Agreement or the date work commences under this Agreement,
whichever is earliest;
Ft. Insurance must •' maintained and evidence of insurance must br
3. If coverage is canceled, non -renewed, and not replaced with anothq]
claims -made policy forrn with a retroactive date prior to the effective
date of this Agreement or the date work commences under this
Agreement, whichever is earliest, the LICENSEE must purchase
extended reporting coverage for a minimum of five (5) years after
completion of the LICENSED OPERATION under this Agreement.
K. tiduor Liabilitv Insurahm The LICENSEE shall maintain a liquor liability
1. Liquor Liability Insurance may be added to the LICENSEE's public
separate policy.
M. Corporate Standing: LICENSEE's corporate status with the California
WE=
LICENSEE shall defend (with counsel acceptable to CITY), indemnify and hold the CITY,
its officials, officers, employees, volunteers and agents free and harmless from any and all
claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or
equity, to property or persons, including wrongful death, in any manner arising out of or
incident to any negligent acts, errors, omissions or willful misconduct of LICENSEE, its
officials, officers, employees, agents, consultants and contractors arising out of or in
connection with the performance of the services under this Agreement, including without
limitation the payment of all consequential damages and attorneys' fees and other related
costs and expenses. LICENSEE shall defend, at LICENSEE's own cost, expense and risk,
M
any and all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against CITY, its directors, officials, officers, employees, agents or
volunteers. LICENSEE shall pay and satisfy any judgment, award or decree that may be
rendered against CITY or its directors, officials, officers, employees, agents or volunteers, in
any such suit, action or other legal proceeding. LICENSEE shall reimburse CITY and its
directors, officials, officers, employees, agents and/or volunteers, for any and all legal
expenses and costs incurred by each of them in connection therewith or in enforcing the
indemnity herein provided. LICENSEE's obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the CITY, its directors, officials, officers, employees,
and agents or volunteers. LICENSEE shall not be obligated to defend, indemnify or hold the
CITY harmless in any manner whatsoever for any claims or liability arising solely out of the
CITY's, its directors', officials', officers', employees', agents' or volunteers' own negligent
acts, errors or omissions or willful misconduct.
VII. PERFORMANCE DEPOSIT:
LICENSEE shall furnish and maintain during the to of this Agreement, a surety
bond from a California "admitted surety insurer" in a form satisfactory to CITY, and
approved by the City Attorney, in the sum of one hundred thousand dollars ($100,000.00)
conditioned upon the faithful performance of the terms of this Agreement. The surety bond
shall be returned to LICENSEE within thirty (30) days of the expiration of the term.
A. LICENSEE Defa It. In the event LICENSEE d fa Its in the performance of any of
-Q fault e u
the terms or conditions of this Agreement, CITY shall give LICENSEE written notice
of such default. LICENSEE shall then have thirty (30) calendar days following
LICENSEE's receipt of the notice of default to cure said default. Notwithstanding
the above, in the case of a default involving sanitary or safety conditions on the
PREMISES, the cure period shall be three (3) calendar days following LICENSEE's
receipt of the notice of default, and in the case of a default involving non-payment of
rent or any other monetary obligation, the cure period shall be ten (10) calendar days
following LICENSEE's receipt of the notice of default. With the exception of
M
monetary defaults, in the event the default cannot be reasonably cured within the
applicable 3 day/30 day period, LICENSEE shall commence to cure the default
within the above time periods and diligently pursue same to completion within not
greater than forty-five (45) calendar days following LICENSEE's receipt of the
notice of default. In the case of a monetary default, no additional time shall be
granted to LICENSEE after the expiration of the ten 10) calendar day cure period to
commence to cure and diligently pursue cure of the monetary default.
In the event LICENSEE commits an uncured default, CITY shall have the right to
1ARTART"
MEN =111111iFROM 111 1111
- - 11
NUMEM
3. CITY may recover at law any and all claims which may be due CITY;
4. CITY may perform such work as it deems necessary to cure said
default and charge LICENSEE for the full cost of labor and materials expended, plus twenty
5. In the event LICENSEE is unable to conduct the services required
6. CITY may recover all or a portion of its damages, loss and costs from
default nor any waiver of a LICENSEE default by CITY shall be construed as a waiver of
any subsequent default of the same or any other term, covenant and condition nor shall it be
deemed to limit or foreclose CITY from pursuing any and all options set forth above as a
result of LICENSEE's default. CITY's choice of any option shall in no way waive its right
to select any other option at any time, or to pursue any rights which CITY may have at law or
equity to enforce this Agreement.
M
B. CITY's Default. In the event CITY defaults in the perfon-nance of any of the
terms or conditions of this Agreement, LICENSEE shall give CITY written notice of such
default, within sixty (60)calendar days following the alleged default. CITY shall then have
thirty (30) calendar days following CITY's receipt of the notice of default to cure said
default. In the event the default cannot be reasonably cured within the applicable 30 day
period, CITY shall commence to cure the default within the above time period and diligently
pursue same to completion within not greater than sixty (60) calendar days following CITY's
receipt of the notice of default. Notwithstanding the above, if LICENSEE fails to notify
CITY of a CITY default within sixty (60) calendar days after LICENSEE teams of the
default, then LICENSEE shall be deemed to have waived any and all of its rights relating to
such CITY default.
C. Force Maieure. In the event the performance of this Agreement by either
party is prevented or delayed by act of God, war, civil insurrection, fire, earthquake, flood,
storm, strikes, lock -outs, or by any other cause beyond the control of such party, such party's
perfon,nance to the extent it is to prevented or delayed shall be excused and not deemed a
default.
IX ASSIGNMENT, SUBLEASE, BANKRUPTCY:
A. In the event LICENSEE is unable to conduct the services required herein,
CITY shall have the right to take immediate possession of all operations and/or terminate
this Agreement. CITY or CITY'S agent or designee shall have the right to assume control
of booked and pending reservations and book future reservations. Upon written
notification by CITY that it shall take possession of all operations and/or terminate
this Agreement, LICENSEE will immediately provide to the CITY the following:
f. Booked and pending reservation contractj
3. All reservation deposits
B. The members of the limited liability company who originally executed this
thereof throughout the term, unless notice of assignment or transfer of control is provided to
the CITY within 30 calendar days prior to the assignment or transfer and the CITY approves
of the assignment or transfer in writing, which approval shall not be unreasonably withheld.
0
The CITY reserves the riRht to require that an assignment and assumption agreement is
IIN III � I 11111� 11111111111 1111, I'll I 1 11 11�111111 pJ1111,111111
party may terminate this Agreement with 90 days' prior written notice.
In the event that the PREMISES are totally or substantially damaged or destroyed
(greater than fifty percent (50%)) so as to become totally unusable, then this Agreement shall
HMMHMzO8=
In the event that the PREMISES are partially damaged or destroyed (fifty percent
I CITY or LICENSEE may terminate this Agreement as to the
remaining usable portions of the PREMISES, upon giving the other
2. CITY or LICENSEE may continue this Agreement in effect, and
remaining portions still usable by LICENSEE. In such casi
LICENSEE's rent shall be abated in proportion to those portions no
longer usable by LICENSEE relative the total area of the PRI I
Effmffllm��
azi'
charges to be paid by it under the terms of this Agreement, and upon observing the covenants
and conditions • this Agreement • the part • LICENSEE, shall lawfully and • hold,
LICENSEE agrees to yield and deliver to CITY possession of the PREMISES at the
termination of this Agreement, or as otherwise herein provided, in good condition and in
MORMONISM III III OF 1 111�1 H 1 1! ���
I I I IF I I
M
shall execute and deliver to CITY a good and sufficient document of relinquishment, if and
when requested.
XIV. FIXTURE AND EQUIPMENT CAPITAL ACCOUNT FUND:
Upon the commencement of the to of this Agreement, CITY shall create a "Fixture
and Equipment Capital Account Fund" ("Fund"). The parties acknowledge that the purpose
of the Fund is to provide stand-by funding for the future maintenance, repair and/or
replacement of CITY Fixtures, LICENSEE Fixtures and any other improvements located on
the PREMISES and used for the LICENSED OPERATION. CITY shall invest all monies
deposited in the Fund into an interest-bearing bank account at a local federally or state
chartered bank or savings and loan institution. CITY shall account for all principal and
interest generated in the Fund.
Within the time and in the manner set forth in Section I. above, LICENSEE shall
submit to CITY a monthly report of Revenues in a format to be determined by CITY. In
addition to the Rent due in Section 11. 13, LICENSEE shall pay to CITY an amount equal to
three-quarters of one percent (.75%) of Revenues for the preceding month. ("Monthly Fund
Payment"), at the time the monthly report is submitted.
Within fifteen (15) calendar days following CITY's receipt of each Monthly Fund
Payment from LICENSEE, CITY shall deposit an amount equal to the Monthly Fund
Payment.
Either on CITY's own initiative or at the written request of LICENSEE, CITY may
spend all or a portion of the monies in the Fund for the replacement or repair of any CITY
Fixtures, LICENSEE Fixtures or such other improvements on the PREMISES necessary for
the LICENSED OPERATION, as determined in CITY's reasonable discretion.
All monies deposited in the Fund shall be the sole and exclusive property of CITY
and, upon termination of this Agreement; CITY shall retain title to all monies so deposited.
V. LICENSEE IMPROVEMENTS AND ALTERATIONS:
LICENSEE shall not make or permit to be made any alterations, additions or changes
(collectively called "Alterations") to any part of the PREMISES without first obtaining the
M
written consent of CITY. CITY may grant or withhold consent for Alterations in its-
reasonable
tsreasonable discretion.
ff.lip? 1� � 11 l�� 1111 111111611,!111p �'— it
I go I t
This Agreement contains the entire agreement of the parties with respect to t 3
subject matter hereof, and supersedes all prior negotiations, understandings or agreement.
This Agreement shall be governed by the laws of the State of California. Venue shall
This Agreement shall be binding on the successors and assigns of the parties.
XX. CONSTRUCTION, REFERENCES, CAPTIONS:
Since the parties or their agents have participated fully in the preparation of this
Agreement, the language of this Agreement shall be construed simply, according to its fair
meaning, and not strictly for or against any party. Any to referencing time, days or period
for performance shall be deemed calendar days and not work days. All references to
LICENSEE include all personnel, employees, agents, and contractors of LICENSEE, except
as otherwise specified in this Agreement. All references to CITY include its elected officials,
officers, employees, agents and volunteers except as otherwise specified in this Agreement.
The captions of the various articles and paragraphs are for convenience and ease of reference
only, and do not define, limit, augment, or describe the scope, content, or intent of this
Agreement.
a
XI. NO THIRD PARTY BENEFICIARIES:
A. There are no intended third party beneficiaries of any right or obligation assumed by
the parties.
B. INVALIDITY/SEVERABILITY:
If any portion of this Agreement is declared invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions shall continue
in full force and effect.
C. DISPUTE RESOLUTION:
Informal Resolution/Mediation. If a dispute arises with respect to the performance or
non-performance of this Agreement, STAFF and LICENSEE's representative shall meet to
discuss and attempt in good faith to informally resolve the dispute. If STAFF and
LICENSEE =s representative are unable to good faith resolve the dispute, the parties may
submit the dispute to binding or non-binding mediation. The mediation shall be conducted in
any manner and by any person or mediation association mutually acceptable to the parties.
Arbitration. Any claims, disputes or controversies between the parties arising out of
or relating to the Agreement, or breach thereof, which have not been resolved in accordance
with the procedures set forth in the paragraph above, may be decided by binding or non-
binding arbitration. The arbitration shall be conducted in any manner and by any person or
arbitration association mutually acceptable to the parties.
D. DELIVERY OF NOTICES:
All notices permitted or required under this Agreement shall be given to the
respective parties at the following address, or at such other address as the respective parties
may provide in writing for this purpose:
LICENSEE:
Z Golf Food & Beverage Services, LLC, a California Limited
Liability Company doing business as Wedgewood Weddings
43385 Business Park Drive, Suite 210
Temecula, CA 92590
Phone: (951) 491-6110 x326
Fax: (951) 308-1900
Attn: William Zaruka, President/COO
28
I I I I I Brookshire Avenue
Downey, California 90241-7016
Phone: (562) 904- 7284
Fax: (562) 904-7270
Attn: Director of Parks and Recreation
City of Downey
City Attorney's Office
Downey, CA 90241
Fax: (562) 923-6388
Such notice shall be deemed made when personally delivered or when mailed, forty-
jilglij�l ql jql 1111!111
and LICENSEE has executed the same, the day and year hereinabove written.
CITY OF DOWNEY, Z FOOD & BEVERAGE SERVICES,
a California municipal corporation LLC, a California Limited Liability Co.
and charter city dba WEDGWOOD WEDDINGS
By:
Rick Rodriguez, Mayor
Maria Alicia Duarte, CMC
City Clerk
�6&M� Abich Garcia
ity Attorney
on
By:__
William Zaruka
President/Chief Operating Officer
IN WITNESS WHEREOF, CITY has, by order of its City COMICil, caused this Agreement to
besubscribed by the Mayor of the City of Downey and attested by the City Clerk thereof,
and LICENSEE has CXCCUted the same, the day and year hereinabove written.
CITY OF DOWNEY,
P—C,WA�wj.q–municipal co-tpqratioxt
and charter city
By:
Rick Rodriguez, Mayor
Maria Alicia Duarte, CMC
City Clerk
Approvcd as to Porn?:
Yvette M. Abich Garcia
City Attorney
m
Z FOOD & BEVERAGE SERVICES,
LLC, a California Limited Liability Co.
dba WEDGWOOD WEDDIN(:,S
By
President/Chief 0
EXHIBIT "A"
Rio Hondo Golf Club Site Plan
*Pro Shop on lower level is operated by a separate contractor;
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Saucer/.. Plate Dispensers
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HOFFMAN)
Victory(CARTER
- - Refrigerator
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�kfr y
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Cup Glassi '. -
4 y gtbS
Nnrt%..
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Evaporator- - . Food Cooler
•r itchen)
.ii .io 'ro - ii.^ t'
kitchen).
Evaporator Meat & Dairy Cooler
or -,
I��II�III
i am • ice' • ':i '. -..
mom
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-
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r SHACK
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VII
. nd Sink wl Soap & Towel
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1 111 11, 111 •11 ITRUT&I", 00 M11,
Discounts:
1. City of Downey Non -Profits: 20% discount on banquet/event food only.
2. Downey Men's and Woman's Golf Club will receive a 10% discount on banquet/event
food only.
3. City of Downey Events: 20% discount on banquet/food only.-
4.
nly.4. Discounts set forth in this Exhibit C applicable to the following: Monday -Thursday
(Day/Evening); Friday, (Day Event Only).
5. Discounts will be applied to Wedgewood full menu pricing, which is fair market
pricing.
"if -M f0f M -O
2. All dates have specific minimum spend requirements based on days of the week and
seasonality.
A. Events occurring Monday -Thursday (Day/Evening)- Minimum expenditure
&=1RW, sTURTITIRM
for the groups mentioned above. On these events, the minimum spend
required will be the greater of 50% of the normal amount (i.e. if the minimum
spend is $5,000, these events will need to be $2,500 or greater including any
applicable discounts).
6. CITY shall book events one (1) year in advance,
62
All LICENSEE's employees assigned to work at the PREMISES shall present a neat, well-
groomed appearance at all times and wearing uniforms or business attire as appropriate and
in compliance with the following grooming standards:
• All uniforms/shirts must be clean and free of wrinkles.
• Hair must be neat and well-groomed; off the face and long hair tied back.
• Facial hair, if approved by LICENSEE, must be neatly groomed.
• No face or tongue piercings.
• Unnatural hair color is unacceptable.
LICENSEE's Golf Uniform consists of:
• Golf Course logo shirts issued by LICENSEE, cleaned by LICENSEE's employees.
• Golf slacks or shorts (shorts no more than 6 inches above the knee).
• Jeans or denim NOT acceptable.
• Name tags are to be worn at all times.
• If a jacket or sweater is necessary, name tag must be visible.
• Closed toe, non -slip shoes.
Banquet and Restaurant Uniform consists of:
Black button -up shirt, issued by LICENSEE cleaned by LICENSEE's employees.
• Black slacks or skirt (skirt no more than 6 inches above the knee).
• Jeans or denim NOT acceptable.
• LICENSEE provides black apron and tie.
• Name tag is to be worn at all times.
• Black closed toe, non -slip shoes.
EXHIBIT "E"
City of Downey
Incident and Accident Form
City of Downey SIDE I
Parks and Recreation Department
CONFIDENTIAL -ATTORNEY-CLIENT PRIVILEDGED DOCUMENT
THIS IS A CONFIDENTIAL REPORT FOR USE BY LEGAL COUNSEL IN THE EVENT A CLAIM
OR LAWSUIT IS FILED AGAINST THE CITY OF DO EY. NEITHER THIS FORM NOR THE
INFORMATION CONTAINED HEREIN SHALL BE GIVEN TO ANYONE EXCEPT THE CITY'S
LEGAL COUNSEL AND AUTHORIZED CITY OFFICIALS.
Incident Time: Reported to supervisor/mgr: ate:
'r
Incident Date:_TAAM or PM Time:
Employee Reportinq., Employee Title:
Did employee witness? [I Yes _ENo
If no, wh"A'
y not?
SPIRE site:
[]Theatre: EA
U Accident [I Illness or Iniul, 1113JR: EPark-
Ll Theft/Vandalism OApollo Gym- ETransit-
0 EmKfloyee involved, who? []Golf Course: 00ther:
Exact location at facility:
Et involved:
"f'Olpmen
I, d�
a
JOVO Ve � patr, is 'mark all that apply and "Olease'doi O'le'tia the 7_f" o
Patron name- Waiver Sex: 11 F 0 M Age', Minor 0
If a minor, name of arent/ uar On:
Patron address:----.— If a minor, what action is parent/guardian taking?
City: zip:
Did anyone witness incident (non-employee) If no, patron i J efused _,7patron left
L]Yes ENo Other reason:
If yes, name of witness: Witness address:
City: Zip:
l6cide_nfinvo_ Ived the following, mark all that apply and complete information:
[]Youth Parent/guardian contacted? Reservation group 0Special Event patron
[]Yes []No nameEvent:
Time of reservation: AM or PM 7C I —ass
El Ad u It (18+) []Youth or E Adult sports group participant
participant class..
League: Team:
❑ ASPIRE student F]City sport league participant F]Contract instructor
League: Team:
E Excursion participant ❑Day Camp participant FICity employee
Excursion: Camp: Site:
[I DAR Rider E Park/Gym Program participant !]Park/facility patron
Program nam not a Cit roqram)
.1 Volunteer ❑Other FJ Vendor
Complete if physical injury occurred:
ls'Aid Given? --Yes --No No �s, what?
TO Other:
Ice Water & be Direct Pressure
Was there e Yes I-- No If not blood what
64
uence#
Police
i
Time of arrival:
PM
sed by who:
Time of arrival:
PM
AM or, [
SIDE 2
Supervisor's Signature, Date:
Manager's Signature: Date:
Copy must be sent to City Attorney/City's Legal Counsel Date
Copy sent to City's Risk Manager (optional)
Date:
I'm
Time calQd:
Niel
M or PM
AIM or PM
Om 0
i
Time of arrival:
PM
sed by who:
Time of arrival:
PM
AM or, [
SIDE 2
Supervisor's Signature, Date:
Manager's Signature: Date:
Copy must be sent to City Attorney/City's Legal Counsel Date
Copy sent to City's Risk Manager (optional)
Date:
I'm
ATTACHMENT C
x r y, ,
ZGOLF
n of Food sem ce Concessions
ney Rio Hondo Golf Club
A- , DT�.
m�
keyinjewedgewoodweddings.com
4.02 INTRODUCTION ...... 4
4.03 REQUIRED FORMS.. .......... ..........
6
Attachment 3: Respondent's Business Statement ...................
6
Attachment 4: Economic Proposal form ...........................
11
Attachment 5: authorization to release information .............
13
Attachment 6: Affidavit to Accompany Proposals(Signed Originals
included in Financial Packet) ...... .......................
14
4.04 UNDERSTANDING OF THE AGREEMENT ..........
17
4.05 BACKGROUND AND EXPERIENCE ..... ...... .......
17
Meet the Z-Team - Names and Roles of Officers ..................
17
JOHN ZARUKA, Founder & CEO.... ......
17
BILL ZARUKA, President ...........
19
KEVIN LYONS, Vice President of Business Development., ........ ........
20
JEFF TUCCI, Vice President of Operations........... ......
21
JULIA HENNING, Vice President of Sales .................... .........................
21
DANIEL BYLUND, Chief Financial Officer .......................
22
KATE PAULLEY, Vice President of Marketing ............................ ......... —
22
companyexperience ....................... .................
23
Municipal Owned Locations ......................................
23
San Clemente Municipal Golf Course, San Clemente, CA ................
23
Redwood Canyon Golf Course, Castro Valley, CA ........................ --- .............. —,
24
Aliso Viejo Center, Aliso Viejo, CA .................................
24
Wedgewood at the University Club, Irvine, CA ..........................
25
ZGolf current property listing ...................... ...........26
Zgolf current property listing (cont) ........... ..............
27
27
Casestudies ...................................................
28
Wedgewood weddings Books Over 100 Events in First Three Months......;,.„,
28
San Clemente Municipal Golf Course, Southern California ............. -- ...... ......
28
Wedgewood Weddings Takes Sales from 100K to 1.3M .... — ..............
29
Aliso Viejo Conference Center ......................................... .......
29
4.06 PROPOSED BUSINESS PLAN. ................................................. _ ........
30
Intended use of various areas of the facility ..................
30
5 Year Financial Projections including Realized Annual Rent Payments,..... ... ...........
31
Bar Services.. .................................................
31
Proposed Staffing Plan ................................................
32
SafetyPlan ..........................................................
33
Facility Maintenance ................................................ ......
33
Accounting and Finance Support ......................................
33
Operational Systems... .................... ...
34
HRSystems .......................................................... — .... ... ..........
34
Marketing Expertise ..................................................
34
Event Execution.. ........................................
35
Administrative Support Systems and Insurance Requirements,.. .... ......
35
Pub & Grill Restaurant Menu............
36
SnackBar Menu .......................... ......................
39
GolfEvents Menu ...............................................
40
Marketing Expertise..,,,.........................,,.,.....,.....41
Marketing & Business Plan........ .. . .41
Wedding Sales & Marketing ................... ... 41
Seasonal Sales Promotions .................. 44
3 Core Values - Value, Service & Convenience, 45
All-inclusive wedding packages ............. 46
Email Campaigns & Onsite Collateral..........,e.„,,,..„.,,,,...,,.®.„....................... 47
Social Media .....................................:... 48
Advertising & Paid Search .................. 48
Community Building & Special Events.. .... - 49
CommentCards ............................... ,.....,............51
Meetings and events menus...... .., . 52
4.07 ADDITIONAL INFORMATION .....................................:........a.,.,.........,..<>........ 60
Letters of Recommendation ................. — ..,...,......,......;60
Reviews ...................... 66
Example Marketing Materials..®..............................»_...69
Charitable Efforts .............. __ .. ..71
4.08 FINANCIAL STATEMENT AND REFERENCE REQUIREMENTS .... _. ...........,.....r........... ____ 72
1 4.02 INTRODUCTION
1 4.03 REQUIRED FORMS
ATTACHI'vMNT 3: RESPONDENT'S BUSINESS STATEMENT
ATTACHMENT 3
RESPONDENrS 13USINESS STATEMENT
& NAME AND MAILING ADDRESS
Norne-ZGolf Food & Boverage Services, LLC doe Wedgwomod VftWirip
Address: 433135 BuMness Park Dr Suft-21 0
Crty: Temecula Stutz: CA Zip Code: 92590_
Thonw 951-491-8110 X-326- Fax Rte r: 951-308-1900 E-rriall
keWnKDwWgewoadwedd1rq&,cam
Federal Tax ID 77-0528139
Contact Person: in Lyons Vwe President of Busmass DevelaperA
a. STRUCTURE OF COMPANY (PLEASE CHECK ONE ANO ANSWER QUESTIONS
ACCORDINGLY):
CORPORATION: Y, INDIVIDUAL: PARTNERSHIP;
Date of Incorporation: Nobec 9, 1999 State of Inc orparafiori: Califorrila-
Pir"dent's Name: Wiliam Zanika, Prasident/COO_
If other ftn a Corpmation or Partnership, describe organizabon ard naom pry I$:
ZGolf Is a Limited 1-fability Corp on, Prindples John Zarvka- Fourid ertCEO and MW
Zaruka- ProWdermCoo
HOW MANY YEARS HAS YOUR ORGANIZATION BEEN IN FOOD SERVICE BUST SS:
Years -33 (84nce lgffi)_
HOW MANY YEARS HAS YOUR ORGANIZZATION BEEN IN BUSINESS LINDER ITS
PRESENT BUSINESS NAME? Yeam-33-
UNDER WHAT OTHER OR FORMER NAMES HAS YOUR ORGANIZAT*N OPERATED?
Name(s) -NA - Years
A. NAME OF PERSON W"O WILL BE ASSW*MD TO MAVAGE FOOD SERVICE AT
RIO HONDO CLUBHOUSE,
Narrw TBD. ZGolf will assign a Gen" Manager who will be on property to overs',
all operi7tions at Rio Hondo
'A"
Telephone Ntxnber –TBD
C. DESCRIBE RESPONDENT'S ORGANIZATION AND HISTORT
(ATTACHMENT IS ACCEPTABLE):
Nanlrust Bank
Addreew 231 South La S2119 Street 21� Floor CNcsgo, IL 60004
Telephone Number: (312) 837-1312 Conixid: Breit Wallace
DUN AND BRADSTREET X —NA- Vendor References Upon Requ
: .,.
H. BONDING COMPANY INF TI .
Nam . ZGolf wil sorlure one it needed through ow broker at Allant Americas
Address
Agent: �... ...,
Total Bonding Capacity: .. � ,. v, r, ...<.
Ia INSURANCE INFORMATION
ftase proOde oertkatm evidencing all gener24, auto, and urnbrella liability and
Wa' Compeneatton insuranoo to fulfili complete Insurenoe requirements are set
ladh In Vw Request for Proposal.
Name, Te6aphona Number Gf AgentC Allard Americas ( 7) -2503 Max Ashford,
CISR
J. 15 YOUR FIRM SIGNATORY TO ANY LABOR UNIONSNAL
MAINTEKANCE AGREEMENTS? Y .. Pio
If ", what traides or bargaining units:
UST FIVE MAJOR CLIENTS I H YOUR ORGANLZATIO,N HAS PROVIDED
SERVICES SIMILAR TO TROSE REQUESTEDY THE CITY OF DOWNEY DUfUNG
THE AT THREE YEARS:
I
Owrrer: The Regents of the Un' rsify of Carillonria -Location: The Univwsity Club and
B191ro-
Contact Name: Rick Ca ®Ax Vice ChanceW—Phorre Ntonber:(949) 824-8630
Annual Dollar Value: $2,000,000 Years of Service: 2 yrs_
Work Your Firm Perfornred: Wolf currently has a concetrawnmra leom to operate and
manage the University Ckk aind Bistro food and beverage and event opwations through
June 2028,
owrwr: Chuck Cox- GoN Course Owmr—Locaflon: Indian Hills Goff 0ub-
Contact NCox--Ptxme Number: (951) 3W2070_
An Dollar Value 31,200,000_ Years of 11 yfs----
Work Youtr Finn Perfarnw& Wolf has a concessions" lease to manage and operate
the gaff cora me food & beverage and everA opemWns at ft club with the owner through
December 2024, Molf frilly expects to extend the lease throwjh 2034
Ownec Golden Buffalo Goff Propartkoi, LLC—LocsCon: Palm Veley Golf Club,
Goodyear, AZ
Contact Name: Roger NWsorr- President—Pharte Number, (2 08) 691-3500
Annual Dollar Value $1,690,800 — Yews of Service -6 yrs—
Work Your Firm Perlomwdi 2 I currenfly has a conrre lease to manage and
operate the golf course food & beverage and event operations at ft club with ft golf
oourse owner through December 2023, Mull fully expects to extend the Wse through
2033 as we operate their o course, 0cotHlo Goff Club
ATTACH COPIES PER RFP SECTION 6.07 Of FINANCIAL STAMMENTS
AND CERTIFICATION
Do you have a documerded safety program? Yes -X— P40—
Do you have a documefted hazard communication progirem:
Yes —X— No—
AJ
Do you require docmer4ed hazard reaMnition sarfety meedngs for
Supendsore Yes — x — No -- Frequmicy __Annua0y_
Employees Yes —X — NQ_ Frsquwwy _AnnuWly
Now Hires Y"—X— No_ Frequency Upon Hihng_
InWecflgns. Do you conduct regular and MnNuert dovirwnted sa" inspeMn$7
Yes—x— No— f�reqtsenry _QtWdofly--
Mach a oopy of the company ay policy and pwgrsm,
Prow de a copy of your Company's OSHA Form No, 200 for the past three years,, If you
do not complete OSHA 200 forms, provide your company's frquty ex0erience for the pam
Hym years wW an explanabon of why you do not use OSHA Form 20M
Name Angola Skts —10— % of Tiff* -10% . . ............ --,
TO@ DirWor of Paco@ and Culture (HR)_
LIST ANY LEGAL CLAIM'S OR BANKRUPTCY ACTIONS FILED VWTMN THE LAST
10 YEARS AGAINST THE PROPOSE0 ORGANIZATION:
IATTACHMENT 4: ECONOMIC PROPOSAL FORM
ATTACHMENT 4
ECONONIC PROPOSAL FORM
Narrm of Company
Jovyefaq ftowwo'Offio
Addre as -iv-q aqk,-2---
coy ---QZHL
Tefthone, (Q§
!Fox
k Monthly Facility Rent $_12,000_,_
S. Compensation
PERCENT OF MONTHLY GROSS (Under S— Gross)
(Over $2,0009000 Gross) 8 %
(Over $___ Gross)
(Over �_ Gross)
CAPITAL PARTICIPATION Respondents should state their Intent regarding capital
participation In supplying fumdurs, fixtures and equilernent for the kitchen and/or reMaurant.
-;Z&!q:Vnv7t11ja UT-7KO
be agree upon betwoop the CITY and LICENSEE h p ;o shalt be the then vahle of thunfe,
at MS ill mf Ce, 91 rkmPiMf ed by d q a tafir t rostaurant faxtma to apprritd rm select t)y CITY and
L tU t FE," tri m event an agreement cannot W to atlwd as to selection of an aarrow, CIT
wW LiCERSEE shafl each select an appraAaw, and the tm (2) dwwn shell select a third, The
average f the three () appralmals shall be the pdca to be paid by OTYd ft CiTYct
to purchava said fumishings and Gquomnt
C,COW EquipmeM
erm of AWwwnwA
rm"f
f t, Q Y r 1
Years
5
E"
'D U JEZ.
ATTACHMENT 5: AUTHORIZATION TO RELEASE
INFORMATION
I her authorize the rokme of Wl financW and credt information and/or verification of
employrnent to the City of Downey as said Rams relaW to my Interest in secuining an agreement
with the City This form may be (eprodowd or pholocopies to be utilized as my consent to
release financial and crodd informationor equipment venfication
Print Name Here
Wintrust Bank
i4riiriii4- 'k4t"alko"n,
�Fn—anclaCInstitution --------
. . ... ...... ...
Applicable Account(s)
(number and type)
Checking: 3805331594 . ... .. --_—
Savings.
Applicable Acocunt(s)
(number and type)
u�
t
t, t
�c
i
„t
this proposal or cancellation of any agreement award pursuant to this proposal.
I certify under penalty of perjury under the laws of ttie State of Califomia that t
foregoing [! and
true -
Signed
I&EN
PROPOSALS WILL NOT BE CONSIDERED Signalwo
UNLESS THE AFFADA\AT HEREON IS — `rd rat/' c& d.
FULLY EXECUTED INCLUDING THE Tifie
CERTIFICATE OF THE NOTARY AND
THE NOTARY'S SEAL. 6 at
ACKNOWLEDGMENT FORM
I have read the information in We Request For Proposals. I (wwi- (1) am acquainted with the
scope of work to be performed as outlined in the Request For Proposal-, (2) are familiar with the
terms and conditions contained int Request for Proposal, including all exhibits and (4) 1 (we)
meet all qualifications for submitting a bid.
I (we) have read and fully understand and acknowleelp and agree to the Insurance
Requirements and the Hold Harmless and Indemnification Requirements contained In the
Request for Proposal.
The undersigned hereby respectfully its this proposal, including all required documents
and statements. The Respondent and rat {s) represent that the Sig nalure(s) hold the
poadion(s) set forth below their ingirraturets) and that the Signature(s) are authorized to execute
this bid.
Limited Liability Corporation, President/C00
(l-n;icate the form of business concern Indicate your position', tit arrdi�r
an the line alsove, i.e. corporation function
)ndividi,aqj; partnership, joint venture
143385, Business Park,Ddve
Address
T duh
City
P0
State Zip
M -51,140-5p ........ . .... . .......... .til
Telephone Fax
!gl�fz �qvon�_._
E -Mail Address
A
CIVILCODE j 189
AM1'4rd4,��M
A notary public or c1 officer completing t oartlf to if ly the W ntity Of the Ind6val Qa igned ahe 1
dccurmDt to which the cerifficate W attached, and not the truftiness, accuracy, or voldity of that document.
State of CaNfornia
County of
Daae Hare Insert Narm and Tide f the car
personality appeared r fl . t _...
1if (s) of Signer(s)
wtm proved to me on the basis of satisfactory evidence to be the per'sori ) whose i
subscribed to ft within fttrurrwnt and ackrorlwedged to me that helgj,wek'tft y executed In
h r arsth arzed cap o1yr .. )7 area that by frr fit, r si nant r " on the instrument the par
or the entity oporw twhalt cA Wil si acted, executed the Instrument,
I certify under PENALTY OF PERJURY sander the Iavvs
of the Mate of California that the foreong paragraph
Is true and correct.
AM
ITwt rare WITNESS rny hancl and official seal,
W ^ c � war��.aa
c«�r�a#r a sass
Signature •.� t �,.t.„ ., ter' ..warm.
�;Omfuro of Notary Public
Mace Notary Seal Above
- OPTIONAL
Though this section is optional, owipfatinq this information can deter alteration of the docurm.nt or
fraudulent reattactumat of this form to an unintended u rat,
Dow.ription of Attached Document
Title or .T e of Document: ,_-A6-_1,Lf1,%1i
Dracuna t 'Date: t «° f 3 � 4 f� number of Pages ,
Signer(s) Other Than N d Above: ._........
Capacft(les) Claimed by Signier(s)
Signer's
Corporate
Ci
Individual I I A
s
Si��ner Is Representing:
SIgner's Name-.
i
Individual I ! A
E Trustee L, Guardian or l o
Other:
Signer Is Representing:
;,A"VIKA".4:�.�r� .�t,S;�se..���4 w,.,#Y,ta?""&y"i,^�;rw,�^�?s"�;�'a i'a.:-.�..t�+�.P='wt++t�m ..�°`ma,-'4.,��^�.,.. ,,�+t.'�,�. �:at,. �,�x:1� ,#,�,�,xsv:z:.
02016 National Notary Association - www,Natio4ialNotary.org • 1.800 -US NOTARY (1-800-876-6127) Item Y5907
4.05 BACKGROUND AND EXPERIENCE
THE Z-TEPll',.]lML s OF OFFICERS
JOHN Founder & CEO
7 D7
a T I-
4,,04 ING
OF
THE
4.05 BACKGROUND AND EXPERIENCE
THE Z-TEPll',.]lML s OF OFFICERS
JOHN Founder & CEO
a T I-
4.05 BACKGROUND AND EXPERIENCE
THE Z-TEPll',.]lML s OF OFFICERS
JOHN Founder & CEO
ST FOR PROPOSAL WRTI 23LQ
u. .
23,000
capaz�t , W
, They have S17WE
q�anos per
,.
zso�llt_e _., . �.
ticnovatino owe
1- -1 -
P "'R J, dent',
-Q,,,U,E,�,,,25k, Pres -
3.3 Z i "]
"C', 3
JEFF TUCCI ice President of Operations
COMPANY EXPERIENCE
� Calf an! Wedgewood ras been
nuiTwnnLy wnaqp and virc the
Califa cn a . Noy 94a, z.... ,
nery
Tilino
Ws Faz supor 31 ywl S . &�:
at 30 Pcopertion annons,
A, �niw ado 0M New Hampshi ro
U es q a r u p_... s r a r q e F r m Mu
Lots, nail y No got F courses
==S'
vie :-aw- KPLaded a Eon OF OAC
yelwyq7 m Knq Rio Hondo opeTykiani,
n i r i
pr,efCon
p i i , p f i vo
and "ree sra7dimy hanquont acy!
11�3� w lwliawn are, mm"
complaUF 7WIF pnoTwrty
M1T.JNICIP,2k,L 0140TIE-0 LOCATIONS
17'a
r-,k Clemente k,,,(u-i'nJ-UjDa1 (KIT Coursen San C`t,,e'%',';aento , CA
ZGolf obtained the contract for food and beverage operations on
the conse HTyugh a rigorOUs Reqi.iest For Proposa' process H1
2012, Prior to ZGoWs managernent with the property, the city of
Sari(7.ie,,,,-nente had a conlact W a local restaw,,ant, Aitriough the
rne�. was poinfa - WK the regu �,i � g�-) F a� ,-.,d t.-,) ac,,ljust lthe�r C'iusine,�',s
model to the demands of a golf c.,ourse food and bevevage ooeral.�',m and �,Afirnately failed
Al.iso Viejo Center, Aliso Viejo, CA
The Aliso Viejo Center is a City owned event center perched above
the Saddleback Valley and adjacent to a luxurious private country
club. After losing over $1 .5 million dollars over a 5 year contract
with the previOLIS operator, the City decided to look for anew
operator and PUbli shed a public request for proposal. ZGoIf was
awarded the management contract after going through a very stringent PUblic bidding process,
Since taking over operations in July 2015, ZGoIf has increased revenues to over $'1A million
aollars and is showing a profit of over $100,000 for the City of Aliso Viejo
Wedgewood at the University Club, Irvine, CA
Right at the pulse of University of California, Irvine you'll find that
kA
Wedgewood Weddings University Club is buzzing with dynamic
energy. ZGorf was chosen as the new operator after a very
L*mity Club
competitive RFP process and together the University and ZGolf
invested overr $2.3 million dollars to completely remodel arid
renovate the club with the goal of it once again becoming the
"Jewel of the University" and a place that the faculty and staff would be proud to host their events, During
the construction and in temporary trailer the sales and marketing teams was able to book over $13 million
dollars in fUtUre weddings and special events.
ZGOF CURRENT PROPERTY LISTING
3
Golf Current Property Listing
Property; Location :.
Address
Facility Type/ Services
Years of Operation
1 Boulder Creek, Colorado'. Wedgewood on Boulder Creek
.Banquet and Event Center
Jan 2014 -Present
1.38470 Boulder Canyon Drive
Full Service Banquet and Events
Boulder, Colorado 80302
2. Brentwood, CA
Brentwood Golf Club
Privately Owned -Public Golf Course
Jan 2010 -Present
100 Summerset Drive
Golf Course Food and Beverage and Full Service
Wedding and Events
.'Brentwood, CA 94513
3. (Carmel, CA
Rancho Canada Golf Club
Nov 2011 -Present
'.4860 Carmel Valley Road
Full Service Banquet and Events
'Carmel, CA 93923
34 Benicia, CA
Jefferson Street Mansion
Privately Owned Historic Mansion
Dec 2016 -Present
1063 Jefferson Street
Full Service Banquet and Events
'Benicia, CA,. 94510
5Gilroy, CA
Eagle Ridge Golf Club
Privately Owned -Public Golf Course
June 2015 -Present
'..2951 Club Drive
Golf Course Food and Beverage and Full Service
Wedding and Events
''. Gilroy, CA 95020
Fallbrook, CA
The Golf Club of California
Privately Owned -Semi PrivateGolf Club
May 2010 -Present
3742 Flowerwood Lane
Golf Course Food and Beverage and Full Service
Wedding and Events
Fallbrook, CA 92028
7 Temecula, CA
Galway Downs
Privately Ownen Banquetand Event Center
Dec 2016 -Present
38801 Los Corralitos Rd
Full Service Banquet and Events
:'Temecula,CA, 92592
Fresno, CA
Wedgewood Wedding & Banquet Center
Banquet and Event Center
July 2011 -Present
<45B4 West Jacquelyn Avenue, Suite 204
',Full Service Banquet and Events
:Fresno, CA 93722
Chandler, AZ
'0—till. Gulf Club
Privately Owned -Public Golf Course
May 2017 -Present
3751 S,Clubhouse Drive
'.. Golf Course Food and Beverage and Full Service
Wedding and Events
Chandler, AZ.. 65248
10 Riverside, CA
Indian Hills Golf Course
Privately Owned -Public Golf Course
8 years -present
5700 Club House Drive
Golf Course Food and Beverage and Full Service
Wedding and Events
Riverside, CA 92509
11 LaPorte, CO
'The Tapestry House
Banquet and Event Center
(Jan 2015 -Present
3212 North Overland Trail
Full Service Banquet and Events
LaPorte, CO 80535
12 Las Vegas, NV
Stallion Mountain Golf Club
Privately Owned -Semi Private Golf Club
Jan 2013 -Present
5500 East Flamingo Road
Golf Course Food and Beverage and Full Service
Wedding and Events
Las Vegas, NV 89122
13 Castro Valley, CA
Redwood Canyon Golf course
NEENUMM
Oct 2016 -Present
17007 Redwood Rd,
Golf Course Food and Beverage and Full Service
Wedding and Events
Castro Valley, CA, 94546
14 Menifee, CA
Menifee Lakes CC
Privately Owned -Semi Private Golf Club
June 2014 -Present
29875 Menifee Lakes Dr
Golf Course Food and Beverage and Full Service
Wedding and Events
Menifee, CA, 92584
15 Menifee, CA
Wedgewood at the Orchard
Outdoor Event and Wedding Garden
May 2010-Pre5ent
29015 Garland lane
Full Service Banquet and Events
Menifee, CA 92584
16 Phoenix; AZ
Palm valley Golf Club
Privately Owned -semi Private Golf Club
Dec 2013 -Present
--. 2211 N, Litchfield Road
Golf Course Food and Beverage and Full Service
Wedding and Events
Goodyear, AZ 89395
17 Sacramento, CA
Wedgewoodat the Sterling Hotel
Historic Hotel
Oct 2014 -Present
1300 H, Street
Full Service Banquet and Events
Sacramento, CA:. 95814
IS San Clemente, CA
San Clemente Municipal Golf Course
Nov 2012 -Present
150 East Avenida Magdalena
Golf Course Food and Beverage and Full Service
Wedding and Events
San Clemente, CA 92672
ZGOLF CURRENT RTS LISTING
19 San Ramon, CA
San Ramon Golf Club
Privately Owned -Public Golf Course
Feb 2005 -Present
9430 Fira-est Lane
.Golf Course Food and Beverage and Full Service
Wedding and Events
San Ramon, CA 94583
20 Placerville, CA
Sequoia Mansion
Banquet and Event Center
Jan 2012 -Present '..
` 643 Bee Street
Full Service Banquetand Events
Placerville, CA 95667
La Verne, CA
2i
Sierra La Verne CC
'. Private owner -Private colt Club
Nov 2014 Present
6300 Country Club Dr
-Golf Course Food and Beverage and Full Service
Wedding and Events
La Verne, CA 91750
22 Camarillo, CA
Sterling Hilts Golf Club
Privately Owned -Public Golf Course
Nov 2009 Present
901 Sterling Hills Drive
'.. Golf Course Food and Beverage and Full Service
Wedding and Events
Camarillo, CA 93010
23 Corona, CA
The Champions Club at The Retreat
Privately Owned -Public Golf Course
June 2011 -Present
8007 SofnAAnds Drive
'.Golf Course Food and Beverage and Full Service
Wedding and Events
Corona, CA 92883
24 Chino Hills, CA
Vellano Country Club
Privately Owned -Semi Private Golf Club
Nov 2012 Present -,
2441 Vellano Club Drive
Golf Course Food and Beverage and Full Service
Wedding and Events
Chino Hilts, CA 91709
25 Aliso Viejo, CA
Aliso Viejo Center
July 2015 Present
31 Santa Barbara DR
Full Service Banquetand Events
i Alk. Viejo, CA. 92656
26 Black Fores4 GO
Wedgewood at Black Forest
Banquet and Event Center
Jan 2016 -Present
12375 Black Forest Rd..
(Full Service Banquet and Events
Colorado Springs, CO. 80908
27''LitOeton, CO
Wedgewood Ken Caryl
Banquetand Event Center
May 2016 Present
11851 Shaffer Dr..
Full Service Banquet and Events
Littleton, CO, 80127
2r$ 'Wadsworth, IL
Wedgewood North Shore
iPrivately Owned -Public Golf Course
Sept 2015 -Present)
4555 W,: Yorkhnuse Rd,
Golf Course Food and Beverage and Full Service
Wedding and Events
Wadsworth, IL. 60083
29 'Ventura, CA
Wedgewood Tower Club
Private Dining Club and Event Center
Feb 2015 Present
5880 Olivas Park Drive
Private Dining and Full Service Weddding and Events
Ventura, CA 93003
30 )Mesa, AZ
'Wedgewood Lindsay Grove
Banquetand Event Center
April 2017 -Present
1742 N. Lindsay Road
Full Service Banquet and Events
IMrsa, AZ, 85213
31 'Thornton, Co
'Wedgewood Brittany Hill
Banquetand Event Center
July 2016 -Present'
19350 Grant St,
Full Service Banquet and Events
'Thornton, CO, 80229
32 :San Jose, CA
Boulder Ridge Golf Club
Privately Owned, Private Golf Course
July 201$- Present
1000 Old Quarry Road
Full Service Banquet and Events
'San Jose, CA, 95123
33 Hampstead, NH
Wedgewood Granite Rose
Banquet and Event Center
April 2017 -Present
22 Garland Drive
Full Service Banquetand Events.
'IHampstead, NH.. 03841
34 Pine, CO
'Wedgewood Mountain View Ranch
Banquetand Event Center
Jan 2018 -Present
11883 S; Elk Road
Full Service Banquetand Events
Pine, CO,r. 80470
35 "Novato, CA
:Stone Tree Golf Club
Privately owned, Public Golf Course
lune 2017 -Present
'9 Stone Tree Lane
'Golf Course Food and Beverage and Full Service
Wedding and Events
Novato, CA. 94945
36 'Irvine, CA
University Club, UCI Campus
May 2017 Present
1801 E. Peltason Drive
Restaurant and Full Service Wedding and Events
.Irvine, CA. 92697
F&B operations to a local restaffatear wno put
in a midscale, full-service restaurant with a mem,i that was not golfer friendly, The F operator
struggled to pay the rent and bills and subsequently owed the city several hUndred thousand
dollars by the end of 2011
THE SOLUTION
The City COUncil and golf commission chose Wedgewood Events andZGoif via RFP to operate
and lease the F&B operations We immediately invested substantial capital to renovate the pub
and grill, the banquet room, and the design and buildout of a beautiful garden ceremony site, We
also immediately made operational changes to better serve the golfers by expanding the hour's
for the walk -LIP snack bar and paring down the restaurant menu to ensure fast, friendly service at
a reasonable price We also developed a special golfer banquet menu to ensure that local golf
clubs and tournaments receive a consistent menu at a ValLie based price point,
THE RESULT
The city of Sain Clemente now has a financially stable partner that is committed to improving the
facility and services at the high-volurne golf course, We've maximized use of the restaurant
space by nooKing over 1,300 events since takiing ove!" inn event operations it 2012 Now, tale do
over 100 ;jveddings and 80 cornmunity events per year.
Wedgewood Weddings Takes Sales from 100K to
1.3M
Aliso Viejo Conference Center
THE CASE
The City of Aliso Viejo opened and
operated this conference center in 2009
Shortly after, the city was challenged in
profit generation and was struggling to
stay afloat. They decided to sign an
agreement with an outside gOlf COUrse
managernent con,ipany in the hopes of
making the facility profitable
Unfortunately, over the next 5 years, the city ended over a �7,�Illion dollars. forcing the City
Manager and City Council to seek new solutions
THE SOLUTION
In January 2015, the city published A Recluest for Proposal in search of a new 'partner that
embodies high --quality stand ards,ernphasizes excellent customer service and has the ability to
maintain consistently high standards while managing anci operating the Conference Center," In
their search for managerrient, operations, arid maintenance of the facility, )y/edgewood Events
and If gladly sr.ibmitted. After a very stringent RFP process, the City of Aliso Viejo selected US
based on cur proven financial track record, strong brand in weddings and events,
prof ession a I ism, and sales
THE RESULT
Since taking over operations ini August 2016: we took sales from 300K to 1,3M by the end of thie
year For the first t rT since opening, t1he Aliso Viejo Center, is generating positive casn floo/ for
the city ancil is self-sus�ainablel -allowing the city to foci,.is and fund oU,ier cornmunity prnJects
INTENDED USE OF VARIOUS AREAS OF THE FACILITY
5 Year
$84,000
Projec"t-ior',is
$144,000
Reali,zed
$144,000
A,1"Izauayip
Re,,,()�,A".-,
$0
$0
$16,360
$31,009
$54,706
$60,926
7i
ZGolf Projected Food & Beverage Revenues w/Rent- Rio Hondo Golf Club
Wedding Revenue
Non -Wedding Banquet Revenue
Golf Revenue
Total Revenue
2019 (7 mo) 2020 2021 2022 2023 2024
$400,000 $1,400,000 $1,680,000 $1,850,000 $21132,769 $2,196,752
$50,000 $100,000 $217,000 $222,425 $227,986 $233,685
$175,000 $3, $37,500 $315,188 $323,067 $331,144
�$62�000' $M00000 0
O06 T $Z*swr ��Wmy s4683)82Y's2)76t581
Min Base Rent ($12,000 per mo)
$84,000
$144,000
$144,000
$144,000 =
$144,000
$144,000
Additional Rent -8% over $2M Gross Revenue
$0
$0
$16,360
$31,009
$54,706
$60,926
Bar Ser-,v-11'.1ces
17,
Proposed Staffirxg
T721T FaW? & 5EVITAV7 REQUEST FOR PROPOSAL �jPZ� w 17"',
Safety Plan
Accolanting
and
Fin,ance
wo hava
loaa took
staft.
Cur accountinq
a highly
koapnrs,
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sx,perianced
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paywMe n0rkv, and volicus coatrac!::
annually and are use 01i MAY acnCquiniko"
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iali viranuval, intormytinn including jer"Vol ledgar and arwip0'',
„�t ➢ 1 { �,; .t �, a„„� � r f„L, SYSTEMS
ZG7-T FC07 & ISVEROGE REQUEST FOR PROPOSAI:, ADA:1 Poly V�'
Achninistrative
Suppcmtv
Systems
a,,r',,,,d
we wond ine to assure
and
the
Asurance
caty of
reqzIremenns
Downey
naAn M! aoscointing
not' e"'I
From &E accounLing
CaNtracts, Wn (Mlnw
standpoint,
"GAAF"
our team,
acnounting
prcc�Wj-ew,
arid
ivFin2 nimnL,;
and accurate financial
issue exceeding ax-pectaninns
Giles the size of
Southern California
statements.
0or congary,
based
In tVis
we are
We are
oank
firm.
confidenn
audited by
They
400: wli ivive nc-.
Mayer Roffman, e
our team te
verity financials
plopenly vKhored to.
that is SEC requianed,
particulac about managiray
our insarance aaent
accoun�mg
and assurs
our inTontors
so our
clopan
can confirm
that ail
accounting
bocAs.
that
N,,"
"PrnSPnCV
team
wc
work
Pdrtners-
with
hn-e a Aunl
It dotailed and
that
oxceedw the requirements
dotali, and
CuLiined
iE
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MARKETING & BUSINESS PLAN
Wedding Sales & Marketing
ZGQLF FOOD & REVERASK REQUEST FOR PROPOSAL APRIL 210
Hone that say, C01 for ar appCIMMent. Not
TrLendly, it wiil he a burden no Me My and- QW, gait jMlsrzticnis
empioym-ts a3 they will be forced Yo KnVeract with our ;Miowtia]-
Mients, and more importantly, it will les -0 Monay on the tahip''
We Anveso siqn&icaw rcyaurca3 in the ongoing canchiang of oat salee
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from outsLde who wanV to woEk for Wengewcod, bat we heiieve strongly 01
developinq our top penple and promaning HOM
alfacnionakeLy called "W�QKS", nra our Mc9t vescurM, AAar,
individual operator is at the mercy of whoever they hav(,,,,,, hi,ret:1, to fill,
the role of Sales or F&B Director. Molf has stable of talented, hard-
working, and passionate individuals trained and ready,
Ultimately tho coynawMorc o! the Xpdqewcod brand Ls haMaj the hox:
prMunt, at W best price, wi�h the bcst
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Volume alone warnoL sustain a business. We also drive overall ravenuez�
with our all-inclusive ..-.. By Mfering services like floral
centerpieces and photography we are Me to
wedding -spend. These additional services are jorcyrided by exclusi-im
hand -selected locaL vendors. These vendcnns ace haFI)y to Whor
Wedgewood reduced pricing Ln exchange for guaranteed business and man -,,i
K them end up having to rent out larger opaces and bring on, additional
staEf to accommodate the huge boom a Wed gewo and p,,,i r-,' t ,n"-'-'-"'Ir"i r-"'�tn
Wedgewood makes money, our vendor partners make money, and our brides
andgrooms pay less Man they wcuLd if the hought Mass: servic2s in rlu�
open market. Not only does this model make good business sense, but it
feels really good to know that we are doing the right 1',,,,hing for our
couples and our community.
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MSIF _'7000 & SEVIRAM REQUEST FOR PROPMAL MVII 2719
Community Building & Special Events
Me Sam cle"anic Municipai so!!
placo tor many local
5010S s2aff conoLnuen to build and
saveraL wryiro orqanizavions sach
Th? San clanante Red NVn MaTan's
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4.07 ADDITIONAL INFOPMATION
LETTERS OF RECONNIENDATION
Monday, January 25, 2017
RE: ZGolf/Wedgewood Wedding & Banquet Center
In October, 2012, the City of San Clemente awarded a concession agreement to operate
the City's Municipal Golf Course Restaurant and Banquet facififles to ZGcdf. They were
selected following a public Request For Proposal process conducted by the City,
The Golf Course Restaurant's previous operator had struggled to operate successfully
and was not satisfying the needs of the coral unity or the golif course patrons
ZGolf has done an outstanding job of developing the potential of the City's facilities:
Their infrastructure to develop and support wedding and events was one of the
elements the City based their selection upon and bookings and usage of the venue
increased dramatically within the first year of the new agreement.
ZGolf developed food and beverage services to accommodate the golfing community's
needs. They worked with patrons, the Golf Course Committee, and the Golf Pro to
introduce a new menu and adgust hours of operation to satisfy the golf community
Working with ZGolf management has been a pleasure. They have a professional team,
they communicate on a regular basis, and fulfill their obligations under the Concession
Agreement We have worked well together to make minor modifications and overall,
are very satisfied with the performance of ZGolf during the past four years.
Thomas Rendina
Business Services Officer
Finance 100 Avenida Presidio San Clemente., CA 92672
hutrflsan dernente org
Ray Ulmer
UCSD Administoolve Sergeant
Allen Viejo Police Services
12 Journey, Suite N100
Aliso Viejo, CA. 92656
(949)283-2784
T'hursday, January 05, 2017
To Whom It May Concern:
In 2016, the City of Alissa Viejo case looking for a company to nomage a large building known as
The, Attica Viejo Conference Center. The conference center at the tirne was poorly managed and
almost impossible to book any type of venue, There was no one answering or returning phone
calls and the food was okay at best. The city looked for months In an attempt to find a good
company to manage the Aliso Vkdo Conference Center, On July 1, 2016, the city contracted with
Wedgeorood to manage the Aliso Viejo Conference Center.
Once Wridgewood came on board to manage the. Aliso Viejo Conference Center, it was a major
difference in the qualltvol'servIce• The Werhimalood staff was available, friendly and attentive
towards the needs of the actual client, The Mira Viejo Conference Carl went from hardly any
bookings to being fully booked on a imcrithly basis, At a law enforcement officer assigned to the
city, I felt as if I were at home and around family ri-rembers when I worked through the front
dwivr. I have also had the pleasure of visiting the Wedgeorood properties in, Las Vegas, San
Clemente and Riverside They are all beautiful and staffed with quality foosonnel,
if you are looking for a dynamic carnpany to manage your property, I would highly recommend
Wedgewood. The company is professional, honest and the best that f have encountered They
haver a great reputation and known all around- I am happy to hate Wedgewand Weddings &
banquet Center at Aliso Viejo as our business partner
Ray Ulmer dd
Ncg)
U
CHAMPIONS4"xYJ
x
I"H E It l TR E T
April 16, 2014
A true and lasting partnership is hard to find It requires a shared vision, collaborative
teamwork, trust and a coninritment to excellence. We have found all of these
characterisric;s in our partnership vAth Z Golf Food & Beuettals °,
In business, a good partnership must benefit both parties financially, and our
partnership with : -Golf has substantially improved our Financial performance.
The Z Golf team combines an extraordinary in ark ting process with professional
cxecution, exidenced by their consistently high customer satisfaction ratings. Plus, Z
Golf literally brings thousands of new faces to our facility year after year.
Our partnership vith Z Golf is one of the best strategic decisions we have made, and r
we look farward to many more years together., if you wAnt to find out more, please
contact me directly at (951) 277-5362 care ail me at jas=tom a rcall c„tptll
I
Flint Nelson
General Manager
C:haanpions Chats at"1'he Retreat E
r
From: Bob & Pam Baker [m ilto,,bak rsbegc ox.netj
Sent: Thursday, December 22, 20164:24 PMI
To: San Clemente GM <san lemente m wed4gwoodbanguet.c m>
Cc: sundel
Vsart-clemente.or ; wardk san-clemente.o
i
Subject: Wedgewood recommendation
To whom it may concern;
Wedgewood has been a terrific partner to the City of San Clemente ever since they
came on board approximately three years ago. I am a member of the Exchange Club so
I have lunch every week at Wedgewood. They are always accommodating to member
requests, committed to serving all members, and just an all-around good fit for the golf
course.
I am very glad we chose Wedgewood as a partner.
Sincerely,
Bob Baker
Exchange Club Member
Former City Councilmember
703
San Clemeda Columbo
,.
me California 92672 y
s
December 26, 2016
'i
r r a
This letter is to affirm my recommendation that the firm
Wedgewood Banquet Group has done an excellent job here in
the city of San Clemente, California.
As a member of the City Golf Commission, I have been
involved Wedgewood®s performance as our Municipal Golf
Course Concession event group. In that regard, they have
always maintained a well-run, professional operation that
has far exceeded what I originally expected. Their service
to the city events held at the golf course alone has been
exemplary. Weddings have been held for the past few years
now, and nothing they have done has interfered with the
golf course operation.
In addition, I am Tournament Chairman of the Family
Assistance Ministries Annual Golf tournament, The
Wedgewood people have been extremely helpful in assisting
us with that event, as they provide us with great meals at
reasonable prices. Their staff assists us all day with
that event, making the tournament such a success.
In the end, I can say without reservation that the
4
Wedgewood people have been an asset to our golf facility
and the city. r
If you have any questions, please feel free to call me at
949-600-3226 or email me at ale703@aol.com.
t
i
#65
CLUB NC, 6232r CHARTEnED MARCH 26, 1946
RO. BOX 4, SAN CLEMENTE, CAUFORNIA 92674
Jsjivar� 4, 2017
To: Wedgewood Wedding and banquet Center
From: RoIuN Clubof San Clementc
This is in respomse to a request fico rnWedgewood Lkwquet CeniWr as to the care and
service we have received from them to aammmodate our club meetings and spccial
evvnts, The Mimagement Ims been most cooperative with our club, in providing a facility
W Meet on a week -15, basis, being flexible when mdi aesem situations arise, previ(Eng a
lection of meals to choose froin thruughotu the mondi and for special occasions. 0m,
server, Bridgid, and also Malissa when needed, takes exceflent care of our group, The
tsar 2 ttietst 1. parr as ar V a I'c'ays pct S, snable ant I 1"011fi'd midi aptCt tt way "hat
might arise.
Bettie Johnson
Club Service
lWedgewood Weddings
Brentwood ,,,,a,
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COUnET CHORE
COMET C;"TOME
2019
2019
2017
2016
MOLT TOW A AE77aAG! REQUEST FOR PROPOSAL APP;l 200'',
EXAMPLE _
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CHARITABLE EFFORTS
4.08 FINANCIAL STATEMENT AND REFERENCE
REQUIRENENTS
separate sealed envelope with hard copy submissions along
with separate sledfile.
Mti BETTER COMMUNMES.
SOLDER FUTURES.
To: Pamela Passow, Director of Parks and Recreation
CITY OF DOWNEY
From: Jim Simon, Principal
Greg Smith, Senior Associate
-------------
facility. At the direction of staff, PSG, Inc. ("RSG") was tasked to complete a financial review of
one of the potential concessionaires interested in providing these services at Rio Hondo.
Specifically, PSG reviewed financial projections and the financial standing of ZGolf Food &
Beverage Services, ILLC, dba Wedgewood Weddings, ("Applicant"). For the sake of comparison,
PSG also reviewed the September 30, 2018 trailing -12 profit and loss statement ("Current
Financials") for Shelton Food & Beverage, Inc. ("Existing Operator") to compare and contrast
against the proposed Applicant's financial projections. Furthermore, lease terms of
comparable facilities were also reviewed to conclude a reasonable payment structure for the
lease agreement.
WIN celffiraro-
W-011141100 M-
f Kb. My V. U I I I
to the specific nature of the concession use, numerous reports and articles were considered
by PSG to establish industry standard ratios. Sources include Anything Research's 2019
Standard Report on Golf Courses & Country Clubs and various articles such as Aaron Allen &
Associates' (global restaurant consultant) 5 Key Benchmarks from PubliclyTraded Restaurant
Companies' Income Statements. Based on our review of the industry reports and articles we
were able to determine the appropriate financial benchmarks for the Applicant.
throughout Southern California. RSG reviewed five such lease agreements.
RVN- 0 13'E, P? K [�', _F Y 0 V ,',4,A
Pennelapassovv Director ofParks and Recreation
CITY OFDOVVWEY
May 16,2019
Page
be relevant to the City, we recommend moving forward with the Applicant. The Applicant's
Applicant's financial projections, the City may also receive an increase in rent. However, it
market. Therefore, we recommend further discussions with the Applicant to conclude a fair
market rent. Below is a summary of our findings.
The Applicant is in good financial health. When comparing the Applicant's 2018
financials to 2017, total revenue has increased by 23.2%. Furthermore, as of 2018 the
Applicant has a healthy amount of cash at $6.54 million. This is a significant increase
from the previousyear's balance of $3.58 million. The one red flag isthatthe Applicant's
Debt to Equity ratio is 3.75 (customer deposits excluded). The optimal debt to equity
ratio would vary widely by industry, but the general consensus is that is should not be
At si.8 Million the Applicant's projected 2020 revenue is slightly less than the Existing
Operator revenue of $1.84 million. However, the Applicant's estimated 2021 revenue
increases by 22% to $2.2 million, Which is significant. We recommend discussing the
significant increase With the Applicant to see if the assumption is reasonable and what
The Applicant would make a capital contribution of $100,000 into the operations for a
10 -year contract. The amount is reasonable when comparing it to other similar facilities
in Southern California. We recommend following upwith the Applicant on when this
would be paid and what it would go towards.
For Rio Hondo. the Applicant is proposing a rnin|rnurn rent amount of $144,000 per
year with no escalations. In addition to the minimum rent amount the Applicant would
also pay 8% of any gross revenue over $2 million. Based on our review of similar facilities
in Southern California the average rent is structured at 1096 of gross revenue with a
nninirnurn rent amount of 10% of the previous year's revenue. Only one comparable,
Rancho Park Golf Course, was an outlier with o structure based off 696 of the gross
revenue. However, the |ovv percentage is offsetted by $42 million in capital
improvements that the concessionaire is contributing to the facility. The agreements
reviewed were not structured with a hurdle similar tothe $2 million that the Applicant
is proposing for Rio Hondo. Therefore, it appears that the City should be able to
counteroffer the Applicant's proposed lease structure.
Pamela Passuvv.Director ufParks and Recreation
CITY OF DOVVNEY
May 16,2019
Page
The financials include all 36 of the Applicant's operations. The individual performance of each
operation would vary. The Applicant's operations consist of golf clubs and banquet and event
facilities primarily throughout California, Colorado, and Arizona. The pertinent points analyzed
as part of the Financial Review are listed below.
1. Revenue and
- Threvenue for operations, for
2018, was $70.58 million surpassing the 2018 budget of $66.89 million. This amount is also
a significant increase from 2017 actuals of $57.28 million. The Applicant's EBITDA (earnings
before interest, taxes, depreciation, and amortization) for 2018 was $933 million surpassing
the 20lBbudget of$7.27million.
2. For restaurant holding companies this istypically inthe 26%-3646
range. The lower the percentage the better. According tothe Applicant's financials this
percentage averages out to7l96. which shows the Applicant out performing the industry
standard. The lower percentage is likely due tothe additional revenue the Applicant
receives from banquets and events.
3. industry is in the 29% range. The lower the percentage the
better. The Applicant's median labor costs as a percentage of total revenue is in line with
this percentage at29.4l96in2O7G.Therefore, labor costs asa percentage pftotal revenue is
inline with industry standards.
4. OccuDancv to Pevenue Pgl&The occupancy forevenue ratio shows occupancy costs such
as rent, utilities, and insurance as a percentage of total revenue. This is typically in the 8%
range. The Applicant's percentage is in the 1696 range which is significantly higher.
However, this isjustified due to the location of the Applicant's businesses and that 24 of 36
of the are located in California where occupancy costs are much higherthan the rest of the
country.
Based on our review ofthe Applicant's financials the only expense that exceeds industry
standard is occupancy. However, this is expected as the majority of the Applicant's operations
are located in California where occupancy costs are much higher than the national average.
T Measures whether or not a firm has enough resources to pay its debts over
the next 12 months. Low values for the current or quick ratios (values less than l) indicate
that a firm may have difficulty meeting current obligations.The industry average isl.17.The
Pamela Passow, Director ofParks and Recreation
CITY C}FDOVVNEY
May l6.2Ol9
Page
2. �L��6�K���Calculates liquid assets relative toliabilities, exm|Oding inventories.
The ratio
provides a measure of liquidity and cash flow constraints. The higher the quick ratio the
better. Optimal ratio isgreater orequal tol.The industry average isll}7.The Applicant's
ratio is 0.98.
Peturr) On EdQ1JV Ratio; Return on equity (POE) is net income as a percentage of
shareholders' equity. Shareholders' equity is defined as the company's total assets minus
total liabilities. ROE shows how much profit a company generates with the money
shareholders invested (or with retained earnings). The industry average for this ratio is 0.26.
The Applicant's ratio is 0.41.
4. Determines if a business is undercapitalized. A ratio above 2.0 would
be considered high, The Applicant's ratio is 33S (customer deposits not included), which is
significantly higher than the standard. The Applicant is considered over -leveraged.
The financing strength of the Applicant was reviewed. We determined that the Applicant
liquidity is on the lower end of the industry range. Since it is only slightly below, we do n
considerthisas a red flag. However,the one red flag is that the Applicant's Debtto Equity rati
is 3.75 (customer deposits excluded). The optimal debt to equity ratio would vary widely
industry, butthe general consensus isthat it should not be above 2.0.
1For Rio Hondo, the Applicant is forecasting $1.80 million in sales for 2020. The Existin
operator provided Current Financials and the sales for the same time period showed $1.8
million. Therefore, sales maybe slightly lower initially once the Applicant takes ov
operation& However, in 2021, the Applicant is forecasting a significant increase in sales
$2.20 million, This is an increase of 22.47%. The basis for this increase, which is generall
driven by special event revenues, Was not explained in the Applicant's proposal. Thereafte
sales are expected to increase on average by approximately 9% per year.
2. For Rio Hondo, the Existing Operator's financials show $136,000 in rent paid to the City. The
current lease structure (fixed vs. variable amounts) was not provided; therefore, we cannot
compare the structure to the Applicant's lease proposal. The Applicant shows $144,000 in
rent paid to the City in 2020. Thereafter, it is projected to increase on average by 9% per
year. The five-year average between 2020 and 2024 is $176,600 peryear. This is a significant
increase from the rent amount in the Current Financials.
3. For Rio Hondo, the Applicant isproposing aminimum rent amount of $144,000 per year
with no escalations. In addition to the minimum rent amount the Applicant would also pay
896of any gross revenue over $2 million. Based on our review of similar facilities in Southern
California the average rent is structured as 10Y6 of gross revenue with a nninirnunn rent
amount of 10Y6 of the previous year's revenue. The agreements reviewed were not
structured with a hurdle similar tothe $Z million that the Applicant is proposing for Rio
Hondo.
4. Based on our review of the agreements for similar facilities we recommend the rent to be
increased to 10% of gross revenue with a rninirnurn rent of$lB4,OOO.The rninirnunn rent is
Pamela Passow, Director of Parks and Recreation
CITY OF DOWNEY
May 16; 2019
Page 5
based on the most recent annual revenue of $1.84 million. Furthermore, we recommend
that the $2,000,000 hurdle is excluded from the structure of the lease payment. Based on
the new rent structure and the Applicant's projected revenue (2020-2024), the City would
collect an average annual rent of $236,7SO vs. the $176,600 based on the Applicant's
proposed rent structure
The Applicant's financial projections are similar to the Current Financials in the first full year of
operations; However, once operations are stabilized, in 2021, revenue will significantly increase
:rease n revenue
with the Applicant to see if the assumption is reasonable and what changes in operations
justify it. Furthermore, we reviewed comparable facilities to ensure that the Applicant's
facilities is 10% of gross revenue with a minimum rent amount of 10% of the previous year's
revenue. Therefore, it appears that the City should be able to improve on the Applicant's
proposed lease structure.
ATTACHMENT
BETTER COMMUNME&
October 17, 2019
Pamela Poaeovv.Director ofParks and Recreation
CITY OFOOVVNEY
7850 Quill Drive
Downey, CA 90242
17872 GILLETTE AVE 7145414585
SUITE 350 wFo-�b*seesszow
IRVINE, cAe2m4 vvEonSsoow
Dear Ms. Passow:
Via Electronic Mail
Per your request, RSG reviewed the draft license agreement between the City and Z -Golf Food
and Beverage Services LLC.
The purpose of the agreement ietoset forth a10-yearlicense term wherein Z -Golf provides
concession men/ioea at Rio Hondo Golf Course, a municipal golf course owned by the City. In
addition to providing personnel, golf concessions, and special evert concessions, 2 -Golf is
required to make certain initial improvements to the operations to increase utilization and
performance of the enterprise. Z-GolfvVou|d be succeeding the current operator who was not
selected by the City for renewal.
SCOPE OF REVIEW
Our review was primarily limited to Z -Golf's request for an initial 1 0 -year license term. The term
differs from the current vendor and standard practices for renewals but is quite typical for new
contracts, for reasons outlined below:
^� The proposed vendor's rational for e longer (initial) term are appropriate and
commonplace in these types of operations where an existing underperforming and
�
Unless the City has information hothe contrary from the existing operator, it is likely that
they have not been actively marketing or seeking contracts for events beyond their term
of operation. 8D in many vveya, the first year activity will be |ovv by most standards and
likely not cover the costs for heavy marketing, rebranding' and contract solicitation. This
does not happen overnight at all, since most larger events like weddings are planned a 9
months to a year in advenoe, and their estimate of one-year period for transition are
reasonable.
L.xCl*mmmv n Gold m"um=uLicense ^w=m°t\2o,om,rRSG
Review o,Draft ^oree=em,doc,
Pamela Passow, Director of Parks and Recreation
CITY OF DOWNEY
October 17, 2019
Page 2
• Also, there is the matter of the operator's investment into the facility, both in terms of
capital, operating costs, recruitment, and training. This affects the initial net cost and
efficiency both the event activities as well as ongoing golf concession operations.
• A shorter (3-5) year term is typical for renewals, provided both parties have the right to
provide conventional notice and leave prior to the renewal date.
• The City has performance standards that kick in after the first year to ensure that the
performance of the facility is meeting key metrics
MAE=
Sincerely,
RSG, INC.
Jim Simon, Principal
ATTACHMENT F
® WEDGEWOOD The Smart Way
WEDDINGS To Say I Do
Em
We truly appreciate the time and consideration you have given Z Golf Food & Beverage and Wedgewood
Weddings. We have been negotiating the terms of the agreement for over the past seven months. We all agree
that the process has been fairly time consuming. We understand that there a lot of moving parts and interested
partiesi This has made the negotiations a bit more complex. We have stayed very committed to finding common
ground while addressing everyone's concerns.
in the original RFP and our original submission to include:
• ZGolf increased the annual rent and the percentage of gross receipts to be paid to the City.
• ZGolf devised and agreed to a detailed discount program for Non -Profit Organizations, City Events and
Men's and Woman's Golf Clubs above section 2.05 -Discount for City Sponsored Events in the RFP that
dictates that the Concessionaire must give the City a 10% discount.
• ZGolf agreed to a maximum of 6 golf tournaments per year to be able to buy out the food and beverage
on the premises to include beer and wine.
• ZGolf further defined employee grooming stanclards�
I he City has asked that we amend the agreement again to add additional wording around items relating to
customer service. We have consulted with our legal counsel and we simply cannot structure any way to add more
than what is in the lease already. The basis for this is that all these items are subjective and not quantifiable. We
certainly can understand that the City is looking for protections. As this is a lease of the facility, not a management
contract the City needs to be comfortable giving up some control to a professional operator, There are protectioni
for the City if we are truly a problem, but this is our business to run day to day. The nature of this process has
given us concerns that this operation will be highly political and challenging for our management team. We are
having second thoughts as we speak. Business climates are incredibly tough in California and we need to assure
that we have the freedom to run the business in a way that assures long term viability,
In reviewing the agreement that we had all agreed to, we believe it defines standards of cleanliness, food quality,
pricing, employee grooming, customer service, menu, sales and marketin& It also provides stable financial return
for the City with tremendous upside. We understand that there is a chance this does not work for The City of
Downey, but at this point we cannot offer any more. If Downey wishes to retain additional control over the
-r_,nffLu&r4kP_-_rs_1ructures for the
City. If the City of Downey wants a lessee and is comfortable with us, then it is time to move forward with the
lease as is.
Thanks again for all your efforts and time.
Sincerely,
Bill Zaruka
966,3009
224-
Ternecula, CA 92590
WedgewoodWeddings.corn