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HomeMy WebLinkAboutGolf Course Restaurant-Concessions Contract-Solairus Food Services LLCCONTRACT FOR PROVIDING RESTAURANT/CONCESSION SERVICES AT TETON LAKES GOLF COURSE This Contract for providing restaurant and concession services (this “Contract”) for Teton Lakes Golf Course is made effective as of 4/1/2018, by and between the City of Rexburg and Madison County, which are both political subdivisions of the State of Idaho (the “Owner”), 35 N 1st E Rexburg, ID 83440 and Solairus Food Services LLC DBA Redd’s Grill (the “Contractor”). A. The Contractor is engaged in the business of Food/Restaurant Services located in Madison County. B. The Owner has solicited an entity to provide restaurant and concession services at Teton Lakes Golf Course located at 722 North 12th West in Rexburg Idaho and has selected the Contractor and desires to have the services of the Contractor. C. The Contractor is willing and accepts the responsibilities proposed by the Owner. Definitions: "Concessions" means a for-sale, on-site offering of a variety of beverages (e.g. water, soda, lemonade, etc.) and snack items (e.g. chips, candy bars, etc.) to the general public. "Facilities" means and includes the dining area, kitchen and attached storage room, the portions of the deck that abut these areas, and the electrical utility room in the basement. "Prepared Food" means a for-sale, on-site offering of a variety of prepared food items (e.g. hot dogs, fries, hamburgers, sandwiches, etc.) to the general public. Therefore, the parties agree as follows: 1. INDEPENDENT CONTRACTOR RELATIONSHIP. The Owner and the Contractor hereby enter into an independent contractor relationship wherein the Contractor shall provide the Services as attached in Appendix A of this contract. The Contractor accepts and agrees to such a contractual relationship and agrees that no employment relationship is created by this Contract. 2. BEST EFFORTS OF CONTRACTOR. The Contractor agrees to perform faithfully, industriously, and to the best of its ability, experience, and talents, all of the duties that may be required by the express and implicit terms of this Contract, to the reasonable satisfaction of the Owner. Such duties shall be provided at such place(s) as the needs, business, or opportunities of the Owner may require from time to time. 3. DUTIES OF THE CONTRACTOR. The contractor is expected to provide restaurant and concession services at the Teton Lakes Golf Course, including the cost of initial and ongoing inventory, and any equipment that is not herein listed as the responsibility of the Owner to provide. The Contractor shall also be responsible for all set up of equipment, inventory, etc. at the opening of the facility, as well as the takedown and cleanup to the satisfaction of the Owner upon closing of the facility. The Contractor shall abide by all provisions listed in Appendix A. 4. DUTIES OF THE OWNER. The Owner shall provide a restaurant/concession operation space in the Club House at Teton Lakes Golf Course, along with the necessary electricity, water, sewer, and garbage removal to the Contractor. The contractor shall be responsible to pay a monthly cost of $250 for their share of the utility services. The Owners have the right to reassess the utility charges based on use each year after January 1st. The Owner shall also provide the equipment that is listed in Section III Subsection D of Appendix A. 5. COMPENSATION OF CONTRACTOR AND THE OWNER. As compensation for the contractual services which are provided, the Contractor is entitled to retain all earnings associated with its operations at Teton Lakes, and shall pay the Owner a monthly rent of $400, which will be remitted to the Owner in accordance with the schedule set forth in Section III Subsection H of Appendix A. The Contractor is responsible for payment of 100% of the sales tax from the gross sales accrued. 6. RECOMMENDATIONS FOR IMPROVING OPERATIONS. The Contractor shall provide the Owner with all information, suggestions, and recommendations regarding the Contractor’s operations and business that will be of benefit to the Owner. 7. CONFIDENTIALITY. The Contractor recognizes that it has and will have information regarding the operations and other vital information items (collectively, “Information”) which are valuable, special and unique assets of the Owner. The Contractor agrees that it will not at any time or in any manner, either directly or indirectly, divulge, disclose, or communicate any Information to any third party without the prior written consent of the Owner. The Contractor agrees that it will protect the Information and treat it as strictly confidential. 8. CONFIDENTIALITY AFTER TERMINATION OF CONTRACT. The confidentiality provisions of this Contract shall remain in full force and effect for a one year period after the termination of this Contract. 9. CONTRACTOR’S INABILITY TO OBLIGATE THE OWNER. The Contractor shall not have the right to make any contracts or commitments for or on behalf of the Owner without first obtaining the express written consent of the Owner. 10. TERM/TERMINATION. This Contract shall be effective March 1, 2018. This Contract may be renewed by mutual written agreement for successive periods of operation of the restaurant/concession services in later years. Renewal of this contract is limited by the standards set forth in Appendix A. This Contract may be terminated by either party upon 120 days written notice. The retained earnings received under this Contract shall be the Contractor’s exclusive remedy. 11. COMPLIANCE WITH THE OWNER’S RULES. The Contractor agrees to comply with all of the rules and regulations of the Owner’s Golf Course. 12. RETURN OF PROPERTY. Upon termination of this Contract, the Contractor shall deliver to the Owner all property which is the Owner’s property or related to the Owner’s business (including keys, records, notes, data, memoranda, and equipment) that is in the Contractor’s possession or under the Contractor’s control. 13. NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or on the third day after being deposited in the United States mail, postage paid, addressed as follows: City of Rexburg: Attn: Matthew Nielson 35 N 1st East Rexburg, ID 83440 The Contractor: Solairus Food Services LLC 485 Countryside Ave Rexburg ID, 83440 Such addresses may be changed from time to time by either party by providing written notice in the manner set forth above. 14. ENTIRE AGREEMENT. This Contract contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Contract supersedes any prior written or oral agreements between the parties. 15. AMENDMENT. This Contract may be modified or amended, if the amendment is made in writing and signed by both parties. 16. SEVERABLITY. If any provisions of this Contract shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Contract is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited. 17. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Contract shall not be construed as a waiver or limitation of that party’s right to subsequently enforce and compel strict compliance with every provision of this Contract. 18. APPLICABLE LAW. This Agreement shall be governed by the laws of the State of Idaho. IN WITNESS WHEREOF, the Parties hereby execute this Contract: _________________________________ ___________________________________ DATE David Rail Manager Solairus Food Services LLC DBA Redd’s Grill STATE OF IDAHO ) : ss. County of Madison ) On this ______ day of _____________________, 2018, before me the undersigned, a Notary Public for the State of Idaho, personally appeared David Rail, known or identified to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. ____________________________________ Notary Public (SEAL) Residing at: My commission expires: EXECUTED and ENTERED INTO by the City of Rexburg and the Board of Madison County Commissioners: Board of Madison County Commissioners City of Rexburg This ____ day of _________________, 2018. _____________________________________ BY: JON WEBER Chairman This ____ day of _______________, 2018. ___________________________________ BY: JERRY MERRILL Mayor ATTEST: _____________________________________ KIM M. MUIR Madison County Clerk ATTEST: ___________________________________ DEBORAH LOVEJOY Rexburg City Clerk Appendix A I. BACKGROUND INFORMATION Teton Lakes Golf Course is located at 722 North 12th West in Rexburg, ID 83440. The purpose of the restaurant services at Teton Lakes is to provide restaurant services and concessions to patrons using the golf facilities throughout the golf season. The Contractor will also be responsible to provide catering services for organized events/golf tournaments. II. OBJECTIVE AND SCOPE Provision for the operations of a restaurant service is requested for the Teton Lakes Facility. Concessions must also be provided as part of the operation and may be provided on site in the restaurant or sold on the course by the Contractor’s employee. When the Contractor chooses to sale concessions on the course, they will be responsible to follow all golf rules and may provide their own means of transportation that must be approved by the Golf Pro Manager. The Owners may also provide a cart for use by the Contractor at no charge when they are available. a. The Contractor is responsible to coordinate all concessions and food services with sponsors/organizers who are hosting events at the Golf Course as a caterer. Contractor shall not forbid or discourage individual patrons of the Courses from bringing their own food and/or beverages. Individual patrons shall not be allowed to distribute food and/or beverages to other patrons. Contractor shall rent the kitchen facilities located on the clubhouse premises for an amount not to exceed three hundred dollars ($300.00) for special events such as tournaments and other events the Owners deem appropriate. Contractor and Golf Pro Manager shall have the authority to terminate use of the kitchen by a special event or group in the event of misuse or damage of the kitchen facilities. Organizers of special events shall sign a contract of liability provided by the Contractor for damage to the kitchen facilities caused by the organizers or participants of any special events. Contractor shall cause to be signed by each organizer of special events wishing to rent the kitchen facilities a waiver of liability, indemnifying and protecting Teton Lakes Golf Course from liability for accidents which take place within the kitchen facilities when rented for special events, or against harm or damage caused by food prepared in the kitchen facilities for special events. No outside food or beverage will be allowed to be brought in and provided at the Teton Lakes Golf Course area by organized groups, leagues, or sponsors without the permission of the Contractor and Owner. All of those hosting a tournament or event should be notified of the ability for the course restaurant to cater and provide meals, beverages, or snacks as a contracted option. The Golf Pro Manager should be notifying those groups scheduling events at the golf course of the new catering option and food rules. The Golf Pro Manager should also provide notification to the Contractor when a reservation has been made for an event at the Golf Course facility. III. RESTAURANT AND CONCESSION REQUIREMENTS A. STANDARDS OF CONDUCT All standards of the Eastern Idaho Public Health District must be met. If, for any reason, the Contractor is unable/unwilling to do so, and the concession stand is shut down by the Eastern Idaho Public Health District during normal operational hours (see section II), the Contractor will be assessed a minimum fine of $50.00 per day. The Contractor is responsible to train their staff to follow the proper regulations and food handling and prep rules as set forth by the Eastern Idaho Public Health District. The Contractor is responsible to pay all fees applicable to obtaining a license to operate a food service operation in Madison County. B. MENU FOOD/BEVERAGE ITEMS- To include an assortment of breakfast, lunch, and dinner items The catering menu (used for those renting or hosting a tournament or event) should include a variation of meals and prices that can be provided to those looking to host an event at the Golf Course facility. The Contractor is responsible to work directly with the sponsors in providing the catering for the golf tournament/event. They must also work in conjunction with the Golf Pro Manager to assure a successful golf tournament/event. BEVERAGES Contractor is subject to all requirements set forth in the beverage contract between Pepsi-Cola Company or Coca-Cola Company and said Contractor. No alcohol of any kind will be sold on the premises of the Golf Course Facility, unless a proper license has been approved and issued by the City, County, and State as required by law. The final menu should be approved by the Owner to ensure that a sufficient variety of items are sold to the patrons of the restaurant and/or Golf Course. C. USE OF FACILITES Contractor is responsible for the setup and daily clean-up of the restaurant/concessions facility, including daily removal of all boxes, waste and product packaging. All waste will be kept in refuse containers provided by the owner and emptied into waste receptacles located at the Teton Lakes Facility. Access and lockup of the premises shall be coordinated between the Contractor and Golf Pro Manager. D. EQUIPMENT/INVENTORY The owner will provide the following equipment: commercial grill and hood, commercial fryer, convection oven, tables/chairs, refrigerator, and a freezer. The Owner may also be willing to negotiate a contract with Coca Cola or Pepsi to acquire the soda dispenser and ice maker and display cooler for beverages in behalf of the Contractor. Owner will also provide power outlets, multiple sinks, and a large counter for vending and food prep, all at no cost to the Contractor. The restaurant area will be lockable to make the facility secure, however a portion of the restaurant will need to be shared with the Golf Pro Manager for accommodating score keeping and selling inventory as necessary and for other events being held at the golf course. Contractor will provide a minimum of one (1) point of sale (POS) unit/register that accepts credit and debit cards. At a minimum, American Express, Visa, and Master Card must be accepted. Contractor is responsible for any and all repairs to equipment and concessions facility deemed by the Owner to be above and beyond those of appropriate use and regular wear. Any and all other equipment required for successful operation will be provided by said Contractor. Contractor is also responsible for cleaning and maintenance of the restaurant facility. Contractor agrees to receive approval for any equipment installation or changes to the facilities, no matter how insignificant. Contractor will be able to make improvements at their own cost to the facility with approval from the owners. E. DATES/HOURS OF OPERATION The restaurant is expected to be open from 9 am to 7 pm Monday – Saturday. If the Contractor chooses, it may also be open on Sunday or extend the hours beyond those identified above. At a minimum, the Restaurant is expected to operate Monday through Saturday from 9 am to 7 pm from the Saturday prior to Memorial Day until Labor Day. If, for any reason, the Contractor is unable/unwilling to open during normal operational hours as stated above, the Contractor will be assessed a minimum fine of $25.00 per day. The concessions must be available all days that the clubhouse is open. These hours and days of operation may be adjusted during the season as necessary, but any changes to the schedule must be approved by the owner. F. EMPLOYMENT/STAFFING The Contractor must provide an adequate number of workers during all hours of scheduled operations. Contractor is responsible for hiring, training, scheduling, supervision of, and compensation for all employees needed to run a successful business. Training must include proper food handling and prep certification for employees as required by the Eastern Idaho Public Health District or State of Idaho. G. LICENSURE/TAXING/INSURANCE Contractor will pay all licenses, fees, taxes and other assessments applicable to operation of the food service business on the premises of Teton Lakes Golf Course. Sales Tax must be included in the advertised cost of food items, and payment of sales tax will be required by the Contractor to the State of Idaho. Contractor is responsible for obtaining workman’s compensation and liability insurance to the amount of $500,000 per occurrence. Contractor is responsible to provide current copies of business licenses, food handling licenses, general liability proof of insurance certificates, and all other applicable licenses needed to operate the restaurant to the Owner. H. FEES The Contractor must provide a $1,000 deposit to the City of Rexburg within 3 months of contract effective date that will be refundable at the end of the contract if there is no damage to the facility or equipment owned by the owner and does not have a balance due. A final inspection must be made by the owner before the deposit will be returned. The Owner will invoice the Contractor for rent and their share of the utilities at the beginning of each month. Payment of those invoices will be due by the 15th of each month. If the Contractor does not make a payment on time, the owner will have the right to acquire all cash from sales at the close of each night, plus any and all late fees, until the past due amounts are paid. Late payments will be assessed a fee of $25.00 each for each day payment is delayed beyond the specified due date. Contractor will keep all accounting records of all sales, expenses, and receipts. Contractor will establish accounting methods agreeable to generally accepted accounting principles (GAAP). Contractor is responsible for payment of 100% of the sales tax from the gross sales accrued. IV. CONTACT TERM. The term of this contract agreement shall be a period of thirty-three (33) months commencing on April 1, 2018, and extending to midnight on December 31, 2020. Contractor shall, upon the expiration of the initial term of this contract, have the first option to renew this contract for an additional two (2) year period upon mutually agreed upon terms and conditions, provided any increase for monthly rental shall be no less than a five percent (5%), nor more than twenty five percent (25%). Additional two (2) year extension periods may be offered after this upon other mutually agreed upon terms and conditions.