Bunker Hill Management AgreementTHE CITY OF
DUB E
~,-~
MEMORANDUM
February 9, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Management Agreement for Bunker Hill Golf Course
Leisure Services Manager Gil Spence is recommending execution of a Management
Agreement with G.M.S., Inc. (George Stephenson) for the Bunker Hill Golf Course for
the period from March 1, 2007, to November 30, 2007.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~/ ~~
Mich el C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gil D. Spence, Leisure Services Manager
LiuB E MEMORANDUM
February 9, 2007
TO: Michael C. Van Milligen, City Manager
FROM: Gil D. Spence, Leisure Services Manager
SUBJECT: Management Agreement for Bunker Hill Golf Course
INTRODUCTION
The purpose of this memorandum is to recommend that the City Council enter into a
management agreement with G.M.S., Inc. (George Stephenson) for the Bunker Hill Golf
Course, for the period beginning March 1, 2007, and ending November 30, 2007.
DISCUSSION
The operational structure of the Bunker Hill Golf Course changed in 2001 with the City
assuming the responsibility of the operation of the pro shop, concessions and golf carts,
which had been the golf pro's responsibility. This change worked very well for the City
and this agreement continues that arrangement.
This is the same agreement as last year, the salary has been increased 3% and the
$1,800 incentive if the number of employee work hours is met, and the $1,800 incentive
if golf car and concession revenues increase a set percentage both remain. All duties
and responsibilities of the golf pro and the City remain the same.
The Park and Recreation Commission reviewed and approved the agreement at their
February 13th meeting.
ACTION STEP
The action requested is for the City Council to approve the management agreement
with G.M.S., Inc. and authorize you to sign it.
GDS:et
attachment
MANAGEMENT AGREEMENT FOR BUNKER HILL GOLF COURSE
Between
THE CITY OF DUBUQUE
and
G.M.S., INC. (George Stephenson)
This Agreement, executed in duplicate, dated for reference purposes, the 5th
day of March, 2007, by and between the City of Dubuque, Iowa (City), whose address
for the purpose of this Lease is 2200 Bunker Hill Road, Dubuque, Iowa, and G.M.S.,
Inc. (George Stephenson) (Golf Pro), whose address for the purpose of this Lease is
Bunker Hill Golf Course, 2200 Bunker Hill Road, Dubuque, Iowa.
WHEREAS, the City is engaged in the operation and maintenance of the public
facility called Bunker Hill Golf Course and the City desires to engage a competent and
qualified golf professional to manage certain services at Bunker Hill Golf Course; and
WHEREAS, the Golf Pro is desirous of procuring from the City the right to
manage the services and is a competent and qualified golf professional willing and able
to manage Bunker Hill Golf Course, and is qualified to provide the requisite services
associated therewith; and
WHEREAS, the public interest and welfare will be served and the facilities of
Bunker Hill Golf Course materially enhanced by the City entering into this Agreement
with the Golf Pro who will manage certain services to the public patronizing Bunker Hill
Golf Course.
NOW, THEREFORE, in consideration of the mutual covenants, promises and
agreements hereinafter set forth, it is agreed by and between the parties hereto as
follows:
1. TERM OF AGREEMENT. The City grants to the Golf Pro for a period of nine
months beginning March 1, 2007, and ending November 30, 2007, the privilege of
managing Bunker Hill Golf Course upon the terms and conditions set forth herein.
2. DUTIES OF GOLF PRO. The Golf Pro shall:
a. Schedule and supervise play at Bunker Hill Golf Course;
b. Recommend to the Leisure Services Manager for hire and supervise
attendants to sell golf tickets, season passes, permanent tee times and
tournament fees to golfers, all at the expense of the City. The attendants shall
be on duty continuously during golfing hours on all weekdays, Saturdays,
Sundays and holidays during the golfing season;
c. Supervise the operation and maintenance of the concession room for the sale
of soft drinks, confections, beer, liquor and food, consistent with the laws and
regulations of the City of Dubuque and the State of Iowa. The Golf Pro and
Leisure Services Manager shall establish a price list prior to March 1st for such
items sold at the concession room, and such prices shall be in effect unless the
Leisure Services Manager in the sole discretion of the Leisure Services Manager
makes changes to such list. The concession operation shall include a general
line of beer, mixed drinks, food, and other similar items, such as are commonly
offered in similar places. The concession room shall be open and available to
the public at times and hours each day during the golfing season as established
by the Leisure Services Manager. Evening closing shall not be later than 11:00
p.m., unless reserved for special events.
d. Keep the golf carts in a clean, safe and operable condition. A sufficient
number of motorized golf carts as determined by the Leisure Services Manager
will be provided by the City to meet the needs of the public. The following
guidelines shall be used in renting motorized golf carts:
(1) The Golf Pro shall not rent a cart to any person not holding a valid
motor operator's license.
(2) The Golf Pro shall not permit more than two (2) persons to occupy
any motorized golf cart.
(3) The Golf Pro shall require each golf cart operator to sign prior to
operating a cart liability release forms approved by the Leisure
Services Manager.
(4) The Leisure Services Manager shall establish all fees to be
charged for renting motorized golf carts.
e. Collect for the City all green fees, permanent tee time fees, league fees, sea-
son pass fees and tournament fees and promptly remit the same to the City in
accordance with policies adopted by the City.
f. Make a true and accurate report of all green fees, season pass fees, league
fees, permanent tee time fees, and tournament fees collected and accounting for
all tickets and receipts issued by the pro shop for all sales on a daily basis, on
forms provided by the Leisure Services Manager.
g. Cooperate with City employees who have the obligation of maintaining the
golf course.
h. Make a true and accurate report of all pro shop sales, concession sales, and
cart rentals on a daily basis on forms provided by the Leisure Services Manager.
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i. Deposit nightly at a bank designed by the Leisure Services Manager all money
collected for or on behalf of the City. The Golf Pro shall be responsible for the
loss of all money collected and for any property belonging to the City, and for the
failure of the Golf Pro or Bunker Hill Golf Course employees to fully, truly and
accurately account for any money collected for the City.
j. Keep the entire premises of Bunker Hill Golf Course, including but not limited
to the snack bar, pro shop, rest rooms, pro office, storage areas, and the area
adjacent to the Clubhouse in a tidy and presentable condition at all times. The
Golf Pro shall make sure the premises and equipment are thoroughly cleaned
and shall remove any remaining inventory to proper storage, within seven (7)
days of the closing of the Bunker Hill Golf Course. The Golf Pro shall use his
best efforts to prohibit any unlawful or disorderly conduct on the premises, and
he shall assist the City in enforcing all the ordinances, rules and regulations of
the City and the County Board of Health.
3. INDEPENDENT CONTRACTOR RELATIONSHIP; COMPENSATION. The
relationship between the City and the Golf Pro shall be one of independent contractor
and not one of employer and employee.
The compensation of the Golf Pro shall be a total of sixty-one thousand, five
hundred and fifty dollars ($61,550.00) to be paid by the City to the Golf Pro in biweekly
installments for the period from March 1, 2007 to November 30, 2007, commencing on
the 3rd day of March, 2007. In addition, an eighteen hundred dollar ($1,800.00) bonus
will be paid to the Golf Pro after November 30, 2007 if golf operations staff hours for
assistant golf professional, pro shop attendant, and concession worker do not exceed
agreed upon amounts shown on the Addendum attached hereto, and an additional
eighteen hundred dollar ($1,800.00) bonus will be paid after November 30, 2007, if golf
operations snack bar revenue increases 5% above 2006 season and golf cart revenue
increases 6% above 2006 season amount as indicated on the Addendum.
The City shall pay the Golf Pro's dues/membership to the National Golf
Foundation, and U.S.G.A. The Golf Pro shall receive any retirement incentive
associated with the purchase of pro shop merchandise.
Either the Golf Pro or the Assistant Golf Pro shall be present at all times Bunker
Hill Golf Course is open for business, unless otherwise approved by the Leisure
Services Manager.
The Golf Pro shall be permitted to give lessons in the designated area.
4. GOLF PRO'S PROFESSIONAL ACTIVITIES. The Golf Pro shall be permitted
reasonable time for participation in golf tournaments and other professional activities
such as schools and seminars, which are necessary to maintain and improve his
professional status. It shall be a condition of this Agreement that the Golf Pro shall
remain a class "A" P.G.A. member.
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5. SUPPLIES AND EQUIPMENT. The Golf Pro shall purchase for the City all
supplies and equipment used in the pro shop, concession area and cart concessions,
with the prior approval of the Leisure Services Manager.
6. ATTENDANTS AND OTHER EMPLOYEES. The Golf Pro shall recommend
to the Leisure Services Manager for hire, at the City's expense, and shall supervise and
schedule rangers to assist at Bunker Hill Golf Course during times of increased play.
The Golf Pro shall recommend to the Leisure Services Manager for hire and
shall supervise and schedule the Assistant Golf Pro and all employees necessary for
the efficient operation of the clubhouse and the pro shop. Copies of work schedules for
all employees, including the Golf Pro, shall be filed weekly with the Leisure Services
Manager.
7. TOURNAMENTS. The Golf Pro shall be responsible for organizing and
conducting at least three junior, three women's and three men's tournaments during the
term of this Agreement. The tournaments shall be designed to promote the use of the
Bunker Hill Golf Course and shall be subject to the prior approval of the Leisure
Services Manager.
8. PERSONAL PROPERTY. Any personal property of the Golf Pro on the
premises covered by this Agreement shall be maintained at the risk of the Golf Pro, and
the City shall not be liable for any damage, either to person or property, sustained by
the Golf Pro or other persons, due to any condition of such personal property.
9. NONASSIGNABILITY. The Golf Pro shall not transfer or assign this
Agreement or any of the privileges or premises herein without the prior written consent
of the City. Each and every covenant and agreement herein contained shall extend to
and be binding upon the Golf Pro and the Golf Pro's successors, heirs, administrators,
executors and assigns.
10. RIGHTS AND REMEDIES OF PARTIES. The various rights, powers,
options, elections and remedies of either party provided in this Agreement shall be
construed as cumulative and no one of them as exclusive of the others, or exclusive of
any rights, remedies or priorities allowed either party by law, and shall in no way affect
or impair the right of either party to pursue any other equitable or legal remedy to which
either party may be entitled, as long as any default remains in any way unremedied,
unsatisfied or undischarged.
11. MODIFICATION OF AGREEMENT. None of the covenants, provisions,
terms or conditions of this Agreement to be kept or performed by the City or the Golf
Pro shall be in any manner modified, waived or abandoned, except by a written instru-
ment duly signed by the parties. This Agreement contains the whole agreement of the
parties.
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12. TERMINATION OF AGREEMENT. This Agreement may be terminated by
the City for any reason, with or without cause, upon three (3) days' written notice to the
Golf Pro. The Golf Pro may give notice of intent to terminate this Agreement for a
material breach of the Agreement by giving the City written notice thereof, and if the
City fails to correct such breach within thirty (30) days thereafter, this Agreement shall
be deemed terminated. Upon termination of this Agreement, the Golf Pro agrees to
immediately vacate and surrender the portion of the building allocated to him for the
operation of this Agreement and to remove his personal property there from, and to
deliver possession of the premises to the City in as good condition as the premises
were in at the commencement of the term of this Agreement, unavoidable wear through
careful use and damage by fire or other casualty beyond the control of the Golf Pro
excepted. All equipment and other property of the City on the premises shall remain the
property of the City after the termination of this Agreement. An inventory of City
property shall be performed by the Leisure Services Manager before release of the Golf
Pro from any liability therefor. It is expressly understood and agreed that this
Agreement is not a lease or a conveyance of realty, but is merely the granting of the
privilege of conducting certain activities and to provide certain services for the benefit
and convenience of the public. The rights and obligations of the parties under this
Agreement shall end with the effective day of the termination of this Agreement, except
that the Golf Pro shall be responsible for any damages or losses attributable to his acts
while in possession of the premises.
13. SUPERVISION BY LEISURE SERVICES MANAGER. The Leisure Services
Manager and the Golf Pro shall cooperate each with the other to promote the most
efficient use of Bunker Hill Golf Course. The Golf Pro shall report directly to the Leisure
Services Manager, or such other person as may be specified by the Leisure Services
Manager.
14. INSURANCE. The Golf Pro shall obtain and maintain during the term of this
Agreement insurance as set forth in the attached Insurance Schedule.
CITY OF DUBUQUE
By
Michael C. Van Milligen
City Manager
G.M.S., INC.
By
George Stephenson
GOLF PROFESSIONAL AGREEMENT ADDENDUM
• $1,800 bonus payment based upon staff hours not exceeding the following during
the 2007 season:
ASSISTANT GOLF PROFESSIONAL - 1,200 hours
PRO SHOP ATTENDANT - 2,700 hours
CONCESSION WORKER - 3,100 hours
• $1,800 bonus payment based upon exceeding the following increase revenue in
golf operations snack bar revenue and golf cart revenue
2006 season
REVENUE GOAL
SNACK BAR REVENUE $ 171,508 5% _ $ 8,575
GOLF CART REVENUE $ 138,357 6% _ $ 8,301
INSURANCE SCHEDULE C
INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES TO THE
CITY OF DUBUQUE
1. All policies of insurance required hereunder shall be with an insurer
authorized to do business in Iowa. All insurers shall have a rating of A better
in the current A.M. Best Rating Guide.
2. All policies of insurance shall be endorsed to provide a thirty (30) day
advance notice of cancellation to the City of Dubuque, except for 10 day
notice for non-payment, if cancellation is prior to the expiration date. This
endorsement supersedes the standard cancellation statement on the
Certificate of Insurance.
3. shall furnish a signed Certificate of Insurance to the
City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such
Certificates shall include copies of the following endorsements:
a) Commercial General Liability policy is primary and non-contributing.
b) Commercial General Liability additional insured endorsement.
c) Governmental Immunities Endorsement.
shall also be required to provide Certificates of
Insurance of all subcontractors and all sub-sub contractors who perform work
or services pursuant to the provisions of this contract. Said certificates shall
meet the same insurance requirements as required of
4. Each certificate shall be submitted to the contracting department of the City
of Dubuque.
5. Failure to provide minimum coverage shall not be deemed a waiver of these
requirements by the City of Dubuque. Failure to obtain or maintain the
required insurance shall be considered a material breach of this agreement.
6. Contractor shall be required to carry the following minimum coverage/limits or
greater if required by law or other legal agreement:
a) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit $2,000,000
Products-Completed Operations Aggregate Limit $1,000,000
Personal and Advertising Injury Limit $1,000,000
Each Occurrence Limit $1,000,000
Fire Damage limit (any one occurrence) $ 50,000
Medical Payments $ 5,000
7 June 2005
INSURANCE SCHEDULE C (Continued)
INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES TO THE
CITY OF DUBUQUE
This coverage shall be written on an occurrence form, not claims made form.
All deviations or exclusions from the standard ISO commercial general liability
form CG 0001 or Business owners BP 0002 shall be clearly identified. Form
CG 25 04 03 97 `Designated Location (s) General Aggregate Limit' shall be
included.
Governmental Immunity endorsement identical or equivalent to form
attached.
Additional Insured Requirement:
The City of Dubuque, including all its elected and appointed officials, all its
employees and volunteers, all its boards, commissions and/or authorities
and their board members, employees and volunteers shall be named as
an additional insured on General Liability including "ongoing operations"
coverage equivalent to ISO CG 20 10 07 04.
b) Automobile $1,000,000 combined single limit.
c) WORKERS COMPENSATION 8~ EMPLOYERS LIABILITY
Statutory for Coverage A
Employers Liability:
Each Accident $ 100,000
Each Employee Disease $ 100,000
Policy Limit Disease $ 500,000
d) PROFESSIONAL LIABILITY $1,000,000
e) UMBRELLA/EXCESS LIABILITY
*Coverage and/or limit of liability to be determined on a case-by-case basis
by Finance Director.
Completion Checklist
^ Certificate of Liability Insurance (2 pages)
^ Designated Location(s) General Aggregate Limit CG 25 04 03 97
^ Additional Insured CG 20 10 07 04
^ Governmental Immunities Endorsement
8 June 2005
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
Nonwaiver of Governmental Immunitv. The insurance carrier expressly
agrees and states that the purchase of this policy and the including of the City
of Dubuque, Iowa as an Additional Insured does not waive any of the
defenses of governmental immunity available to the City of Dubuque, Iowa
under Code of Iowa Section 670.4 as it is now exists and as it may be
amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of
governmental immunity under the Code of Iowa Section 670.4 as it now
exists and as it may be amended from time to time. Those claims not subject
to Code of Iowa Section 670.4 shall be covered by the terms and conditions
of this insurance policy.
3. Assertion of Government Immunitv. The City of Dubuque, Iowa shall be
responsible for asserting any defense of governmental immunity, and may do
so at any time and shall do so upon the timely written request of the
insurance carrier.
4. Non-Denial of Coverage. The insurance carrier shall not deny coverage under
this policy and the insurance carrier shall not deny any of the rights and
benefits accruing to the City of Dubuque, Iowa under this policy for reasons of
governmental immunity unless and until a court of competent jurisdiction has
ruled in favor of the defense(s) of governmental immunity asserted by the
City of Dubuque, Iowa.
No Other Change in Policy_ The above preservation of governmental immunities
shall not otherwise change or alter the coverage available under the policy.
SPECIMEN
9 June 2005