Golf Course Management.pdf

CITY OF RACINE

REQUEST FOR PROPOSALS (RFP)

OFFICIAL NOTICE #2-2017

CITY OF RACINE GOLF COURSES

LEASE / MANAGEMENT SERVICES

SCHEDULE

Date Action

March 31, 2017 RFP distribution

April 18, 2017 Golf Course Walkthrough

April 21, 2017 Questions regarding RFP due to Purchasing Agent, all question to be submitted via email to Kathryn.kasper@cityofracine.org

April 25, 2017 Addenda issued if needed

May 4, 2017 at 1 PM RFP Submittal Deadline

Direct all replies to:

Kathryn Kasper, Purchasing Agent

City of Racine Purchasing Department

730 Washington Ave., Room 105

Racine, Wisconsin 53403

Telephone: 262-636-9143

Fax: 262-636-9100

Purchasing Web Site: http://www.cityofracine.org/purchasing Complete Bid or Proposal packages may be downloaded at the above website. Vendors are responsible for checking this website for addenda prior to submitting a proposal. The City of Racine is not responsible for the content of any proposal package received through any 3 rd party service. It is the sole responsibility of the vendor to ensure the completeness of the documents received from any 3 rd party.

SEALED PROPOSALS MUST BE RECEIVED NO LATER THAN:

May 4, 2017 by 1:00 PM, CDT mailto:Kathryn.kasper@cityofracine.org http://www.cityofracine.org/purchasing

TABLE OF CONTENTS

REQUEST FOR PROPOSAL

1. Cover Page 1

2. Table of Contents 2

3. Introduction 4

4. Premises 4

5. Request for Proposal (RFP) Schedule 4

6. Contents of Proposal 5

7. Instructions, Terms and Conditions for Submittal 6

8. Cost Incurred in Responding to the RFP 7

9. Mandatory Pre-Proposal Meeting 7

10. Evaluation of Bidder’s Proposal 7

11. Selection Process 8

LEASE AGREEMENT FOR CITY OF RACINE GOLF COURSES

1. Introduction 9

2. Term of the Lease Agreement 9

3. Rent 9

4. Use of Lease Premises 10

5. Golf Courses Fees and Charges 11

6. Golf Course Surcharge 11

7. Daily Operation 11

8. Maintenance, Repairs, Damage, Destruction and Restoration 12

9. Maintenance Records 15

10. Liens . 16

11. Capital Improvements 16

12. Easements 16

13. Johnson Golf Course Clubhouse 17

14. Johnson Golf Course Cart Storage Building 17

15. Johnson Golf Course Maintenance Building 18

16. Johnson Golf Course Office Building 18

17. Johnson Golf Course Starter Building 18

18. Shoop Golf Course Clubhouse 18

19. Shoop Golf Course Maintenance Building 19

20. Shoop Golf Course Storage Building 19

21. Washington Golf Course Clubhouse 20

22. Washington Golf Course Maintenance Building 20

23. Washington Golf Course Storage Building 20

24. All Golf Course Rain Shelters 20

25. Motorized and Pull Golf Carts 20

26. Grounds Maintenance Machinery, Equipment and Tools 21

27. Golf Course Amenities 21

28. Johnson Golf Course Driving Range Amenities 21

29. Personnel 21

30. Inspection and Accounting 22

31. Statistical Records and Information 24

32. Security Deposit 24

33. Insurance 24

34. Indemnity Provisions 25

35. Utility Charges 26

36. Taxes 26

37. Signs 26

38. Compliance with Laws 26

39. Rules and Regulations 27

40. Consultation with City 27

41. Default and Termination 27

42. Modification Amendment 29

43. Eminent Domain 29

44. Assignment and Subleasing 29

45. Licenses and Permits 29

46. Emergency Entry 30

47. Direct Contact and Mail Notices 30

48. Letter of Credit 30

49. Miscellaneous 31

PROPOSAL FORM

A. Lease Payment Percentages 32 B. Additional Commitments 33 C. Bidder’s Experience 33 D. Bidder’s Proof of Responsibility 34 E. Financial Responsibility 36 F. Affidavit of Organization and Authority 38

ATTACHMENTS

1. Revenue and Usage Information

2. Usage Report – Year to Date

3. Lease Detail – Monthly Report of Sales Form

4. Surcharge Detail – Monthly Report of Sales Form

5. Lease and Surcharge Detail –Year to Date Report of Sales Form

6. 2017 Golf Course Fees

7. Golf Course Minimum Maintenance Standards – Greens

8. Golf Course Minimum Maintenance Standards – Tees

9. Golf Course Minimum Maintenance Standards – Fairway and Improved Rough

10. Golf Course Minimum Maintenance Standards – Bunkers

11. 2017 Rules and Regulations

12. Johnson Park Golf Course Map

13. Shoop Park Golf Course Map

14. Washington Park Golf Course Map

REQUEST FOR PROPOSAL

LEASE AND MANAGEMENT SERVICES

For

1. Introduction

The City of Racine is the owner of three (3) golf courses known as Johnson Park Golf

Course, Shoop Park Golf Course and Washington Park Golf Course; and is interested in the continued private management through leasing of the facilities. Proposals for activities other than golf would be entertained for Shoop Park pending golf commission and common council approval.

2. Premises

The City of Racine, hereby accepts proposals for the term and upon the conditions hereinafter set forth for those certain premises owned by the City of Racine and situated in the County of Racine, State of Wisconsin described as follows:

A. Johnson Park Golf Course located in the Village of Caledonia annexed as the City of

Racine and more particularly described in the map attachment A-11. (Except the picnic area and picnic area structures, as described on the map.)

B. Shoop Park Golf Course located in the Village of Caledonia, Village of Wind Point and more particularly described in the map attachment A-12.

C. Washington Park Golf Course located in the City of Racine and more particularly described in the map attachment A-13.

The term “premises” refers to the real property above described and to any and all structures and improvements located thereon with those exceptions so stated (See

Attachment B for included buildings).

3. Request for Proposal (RFP) Schedule

Proposals Reviewed by May 18, 2017 Interview Bidders, if necessary, week of May 22, 2017 Award of Contract July 5, 2017 Begin of Contract January 1, 2018

Any firm invited for an interview shall be notified by the City of Racine by or on May 19, 2017. It is anticipated that interviews will be scheduled by the City of Racine the week of

May 22nd. Once the interview date and times have been established, requests for alternate dates and times will not be considered. Interviews will be held in the Office of the

Purchasing Agent, 730 Washington Avenue, Racine, Wisconsin, 53403.

4. Contents of Proposals

Each bidder will submit a complete and accurate proposal form that will include the following items:

A. Lease Payment Percentages

Percentage of gross revenues paid to the City of Racine in monthly payments.

B. Additional Commitments

Proposal commitment and / or maintenance items to be accomplished over and above the requirement and standards set hereto.

C. Bidder’s Experience

a. Provide a clear narrative statement, which indicates the bidders past performance and familiarity with the work to be conducted. Include comments on the ability of the firm and key personnel to carry out the terms of the contract in regards to:

Service to the public is the utmost concern and the City of Racine wishes to have an excellent golf clientele relationship.

Employees at all times shall be competent and able to deal effectively and courteously with the general public in a recreation setting.

Lessee shall have knowledge and understanding of the principles, standards and practices of golf course management and implement and utilize such principles and practices in the operation of the leased facilities.

b. Any firm submitting a proposal is required to have personnel with minimum years of experience in Golf Course Lease / Management as called for under this contract.

The City of Racine believes that the personnel assigned to manage this facility under this contract in the key positions of General Manager and Golf Course

Superintendent are essential to the successful operation of the leased facilities. The

City of Racine further believes that stability and continuity in these key positions is crucial. As a condition of the contract the assignment and use of key personnel as identified in this proposal will by required throughout the life of this agreement.

Provide a statement indicating technical and professional qualifications of the key personnel who will be assigned to the contract. Resumes for key personnel who will be assigned under this contract shall be included in the proposal as appendices.

c. Provide a minimum of one reference for which the bidder has provided similar services as described in the proposal.

D. Financial Responsibility

Financial statement showing the Bidder’s total assets, total liabilities, net worth, available line of credit and financial wherewithal to acquire and maintain the necessary equipment and furnishings called for under this proposal.

E. Affidavit of Organization and Authority

F. Bidder’s Certification

G. Instruction to Bidders

H. Affirmative Action Plan Requirement

5. Instructions, Terms and Conditions for Submittal

A. The sole point of contact for questions during this RFP process shall be:

Kathryn Kasper City of Racine Purchasing Agent

730 Washington Ave Room 105 Racine, Wisconsin 53403

Questions may be submitted via e-mail at kathryn.kasper@cityofracine.org. Questions will be entertained until the date as indicated on the schedule.

B. Bidders will be identified at bid opening. No selection will be made at the time of opening. Any proposals received after the above time and date will not be accepted and will be returned unopened.

C. Bidders shall submit five (5) copies of the proposal and one electronic copy on a flash drive to:

City of Racine Purchasing Agent 730 Washington Avenue, Rm. 204 Racine, Wisconsin, 53403

D. Sealed proposal, endorsed with the name of the bidder, shall be plainly marked on the envelope as follows: OFFICIAL NOTICE #2-2017

E. Any proposal received in an container not clearly marked as specified above may result in the proposal being rejected.

F. All proposals, reports, drawings and other work generated by the bidder pursuant to the work described in this RFP shall become the property of the City of Racine.

mailto:kathryn.kasper@cityofracine.org

G. It is the bidder’s responsibility to comply with all instructions, terms and conditions in order to assure consideration of its proposal.

H. The proposal must be signed by the person or persons authorized to legally bind your firm or it will not be considered. The person signing the offer must initial erasures or other changes.

I. The City of Racine does not agree to arbitration clauses in its contracts nor does it accept contractual limits to bidder liability.

J. Proposals may be withdrawn at any time prior to the opening.

K. By submitting a proposal, the bidder guarantees that it will keep its initial offer open for at least 60 days.

L. The City of Racine reserves the right to revise or amend the RFP in response to a need for further clarification, specification and/or requirement changes including new opening date prior to the due date. Such revisions and amendments, if any, will be announced by an addendum or addenda to the RFP holders. Bidders are required to acknowledge receipt of all addenda by listing such addenda on the Proposal Form.

Failure to acknowledge an amendment may result in rejection of the proposal.

6. Cost Incurred in Responding to this RFP

The City of Racine shall not be liable for any costs incurred by bidders in responding to this RFP or any costs associated with discussions required for clarification of items relating to this RFP

7. Mandatory Pre-Proposal Meeting

A. A mandatory pre-proposal meeting is scheduled according to the date on the above schedule to permit bidders an opportunity to ask questions concerning this RFP and inspect the facilities at the golf courses. The pre-proposal meeting will begin at the

Johnson Park Golf Course Clubhouse, 6200 Northwestern Avenue, Racine, Wisconsin then immediately reconvene at Shoop Park Golf Course Clubhouse, 4510 Lighthouse

Drive, Racine, Wisconsin then immediately reconvene at Washington Park Golf Course

Clubhouse, 2920 Washington Avenue, Racine, Wisconsin.

B. Bid proposals submitted by bidders that do not attend the mandatory pre-proposal meeting shall not be accepted by the City of Racine

8. Evaluation of Bidder’s Proposal

A. The successful bidder shall not be chosen strictly based on the lease payment percentages or other financial commitments. Experience, qualifications, personnel credentials and other relevant information shall also be considered in making the selection.

B. The City of Racine will evaluate and rank each proposal on the basis of the following evaluation criteria. Percentages indicate the proportional weight of each criterion.

Lease Payment Percentages and other financial commitments 35% Experience and qualifications 25% Financial Responsibility 20% Personnel Credentials 10% Overall Responsiveness and Compliance to RFP Requirements 10%

C. Bidder selection may be made solely on the basis of the submitted proposals or and evaluation of the proposals may be used to select one or more bidders for a personal interview. If interviews are conducted final selection will then be based upon both interview and proposal. Not every firm submitting a proposal may be selected for an interview.

The purpose of the interviews will be to clarify and assure the bidders full understanding of, and responsiveness to, the RFP requirements. Bidder’s key personnel, including General Manager and Golf Course Superintendent and other personnel requested by the City shall be required to be at the interviews. The time, location, and requirements for the interviews will be provided to those bidders who are selected. The interviews will consist of an informal presentation by the bidder and questions and discussion between the City of Racine and the bidder. The interviews are not intended as an opportunity for an elaborate formal presentation or promotion by RFP respondents. RFP respondents are hereby notified that the complete interviews may be recorded at the option of the City of Racine and that submittal of a proposal by the bidder indicates acknowledgement and permission for such recording.

9. Selection Process

A. Following review of the formal proposals by the City of Racine, and possible interviews of bidders, the City will evaluate all proposals. Drawing upon the evaluations, the City will select a bidder and attempt to negotiate a contract with the selected bidder. Should such negotiations with the selected bidder prove unsuccessful, then a contract will be negotiated with a second-selected bidder by the City.

B. The City reserves the right to reject any or all proposals received, cancel this RFP, issue a subsequent RFP, require confirmation of any information provided by bidders, establish a short list of RFP respondents for interviews or clarifications, respondents, and enter into a contract for all, part, or none of the requested work. The City of Racine reserves the right to waive any nonmaterial technical deficiencies in the proposal.

LEASE AGREEMENT

for

1. Introduction

Upon the selection of a Bidder, the City of Racine and the Bidder shall enter into a lease agreement that will contain the following provisions:

2. Term of the Lease Agreement

The term of this proposed lease shall be for five (5) years commencing January 1, 2018 and ending December 31, 2022; and, at the Lessee’s option, is renewable for a two additional terms of two (2) years each.

3. Rent

A. The Lessee shall pay to the City as rent for said leased premises a percentage of all gross receipts the Lessee receives from its operation of the golf course facilities (see attachment #1). For the purpose of this proposal, “gross receipts” shall be defined as the total of all sums received from all sources derived from golf season receipts which shall include but not be limited to payments received for green fees, passes, practice range, food and beverages, vending machines, reservation fees, mechanized cart rentals, and pull cart rentals, or any other agreed upon use of premises, such as clubhouse(s) rental and usage; excluding sales and use taxes, surcharges, (see item #6), golf lessons, and club repairs. “Gross Revenue” shall also include sales of pro-shop merchandise and for such merchandise shall be defined as gross profit which equals gross revenues minus cost of goods sold. If Lessee has Business Interruption Insurance, and receives a claim settlement, it shall be included in gross receipts.

B. Lessee may pursue all means of revenue generation advertisement, such as tee signs, scorecards, etc. with written permission from the City.

C. Payments of the percentage of the gross receipts shall be made to the City on or before the twenty-fifth day of each month for services provided and sales made during the previous month.

D. Unless otherwise indicated, those items that pertain to areas concerning Policy, City

Resolutions and/or Ordinances, “City” means the Public Safety and Licensing

Committee of the Common Council; those items pertaining to rules and regulations, operations and non-policy areas, “City’’ means Director of Parks, Recreation and

Cultural Services or designee.

E. Lessee shall not sublet the food and beverage operation without the written permission of the City and under such terms and conditions as set by the City.

F. The Clubhouse(s) can be operated year round by the Lessee for restaurant / bar operations and for hall rentals providing all licenses and permits are obtained. The same rental payment shall apply to these operations.

4. Use of Leased Premises

A. Lessee agrees to use the leased premises for the purpose of operating a public golf course facility and providing usual services generally provided by golf courses, including but not limited to regular and group golf play, food and beverage concessions, golf instruction, free automobile parking facilities for patrons of the golfing facilities, and the operation of a golf pro shop at Johnson Park in which golfing equipment and apparel are sold.

B. Lessee shall continue existing programs, including junior golf activities, adult recreational leagues, school use, outings, annual and special tournaments, and season pass and multi play ticket sales consistent with past traditions. Preference shall be given to league assignments to existing residents-based golf players as program now exists. The Lessee shall not discontinue said programs or add programs for special interests that totally will exceed one-fourth (1/4) of the daily tee times without justification to and approval by the City. Service to the public is utmost and the City wishes to continue the excellent golf clientele relationships that are presently in effect.

C. Lessee shall enforce current rules and City ordinances pertaining to golf and the use of clubhouse facilities such as party rentals. Any additional rules proposed by the Lessee shall be approved by the City prior to their posting. Said approval by the City shall not be unreasonably withheld.

D. Lessee shall be obligated to secure and pay for all Federal, State, and Local licenses and permits and pay all sales and excise taxes required for the operation of any food or beverage concession and apparel and equipment sale or rental.

E. The leased premises shall not be used for any illegal purposes, or in violation of any valid regulation of any governmental body, nor in any manner to create any nuisance or trespass, nor in any manner which may invalidate the insurance coverage of the leased premises or increase the rate of insurance coverage on the leased premises.

G. The City does reserve the right to occupy the east twelve (12) foot section of Johnson’s

Park Maintenance Building. When its use is not required by the City the Lessee shall be permitted to occupy it.

H. Lessee shall operate the premises as public golf courses, open and available to all persons regardless of race, color, creed, national origin, physical handicaps, and in compliance with each and every federal, state and local discrimination law.

5. Golf Course Fees and Charges

A. Fee increases shall not exceed 5.0% per year without further approval of the City of Racine

Common Council. If requested fees exceed 5.0%, request is to be substantiated by earning

/ loss audit statements or other documented circumstances. Fee increases of less than 5.0% do not need City approval. The City shall be informed of any increases during the City’s preparation of its next fiscal years budget. Fee increases are not required to be an aggregate increase. Adjusted fees shall be rounded to the nearest twenty-five cents (25) or whole dollar amount. The 2017 Greens Fees Schedule is attached (See Attachment 5).

B. With respect to other fees and charges relating to the sale of merchandise, and other incidental charges, the Lessee shall have the right to adjust such fees and charges as the

Lessee sees fit during the term of the agreement.

C. Lessee shall not offer reciprocity to any public or private golf courses without written approval of the City.

D. Any new category of fees must be approved in writing by the City.

E. Under no circumstances shall the Lessee charge a membership fee to golf course patrons.

6. Golf Course Surcharge

A. A surcharge, for golf course improvement purposes, shall be assessed to each nine-hole round of pass golf greens fees, excluding the junior passes. This surcharge shall be an amount periodically set by the City. The City has the right to continue the surcharge for the duration of the contract. The present surcharge is one dollar ($1.00) per nine-holes for

Season Pass play and fifty cents ($0.50) per nine holes for all other categories including the

Twenty Play Ticket play.

B. The Lessee shall keep detailed records of the surcharges on a weekly basis with a monthly summary and submit to the City monthly (see attachments #3 & #4). The records shall show the number and category of each round of golf played. This information shall be categorized separately pertaining to Johnson Park Golf Course and that pertaining to Shoop

Park Golf Course and that pertaining to Washington Park Golf Course.

C. The Lessee shall pay to the City the amount collected for the surcharges less the state sales tax, on or before the twenty-fifth (25 th

) day of each month for the previous month. The payment shall be made separately and under different cover from other payments.

7. Daily Operation

A. The courses will be operated daily, excepting weather conditions, with opening and closing consistent with park schedules. Clubhouse(s) may remain open year round however the

Lessee shall be responsible for snow removal in the parking lots and sidewalks.

B. The parties acknowledge that during mild winter weather there has been a demand to use the Johnson Park Golf Course for golfing activities. To accommodate citizens interested in these activities, it is agreed that Lessee may open the Johnson Park Golf Course only for golfing during the period between November 1 and March 31 of each year of this contract if such opening can be accomplished in a manner that does not damage the golf course.

The Lessee shall notify the City within three (3) days of the opening.

8. Maintenance, Repairs, Damage, Destruction and Restoration

Lessee shall, throughout the term of the Lease, at its own cost, and with no expense to the City:

A. Keep and maintain the premises, including all structures and improvements of every kind which may be a part of the golf course facilities, including heating, ventilation and air conditioning systems; electrical, plumbing and sewer lines excluding lift station, hot water heaters; fire suppression and exhaust systems; building security systems; emergency lighting systems and the like, in as good or better a condition than said structures and all improvements thereon were in at the beginning of the initial term of the Lease, reasonable wear and tear excepted and excepting major maintenance and repair.

B. Operate, keep and maintain the irrigation systems including, but not limited to, the central controller, antenna, pump station controls, pumps, electronic valves, mechanical seals, pressure sensors, flow sensors sprinkler heads, quick coupling valves, drain valves, valve boxes, piping, wiring or parts thereof because of deterioration of wearing out.

C. Keep and maintain in working order the subsurface drainage system including, but not limited to, drain tile lines and catch basins, excluding the lift stations.

D. Keep clean and in a sanitary condition, all premises used by Lessee and including, but not limited to, the clubhouse’s food and beverage areas. Lessee is responsible for disposal of food wastes, packaging, containers, eating utensils and other wastes directly attributed to the food concessions not only in the concession area but also in the main lounge and any other area used for servicing merchandise. All refuse and waste materials shall be stored by Lessee and shall be disposed of by Lessee. All state and local health laws and regulations shall be strictly complied with.

E. Based on good housekeeping standards, Lessee shall perform all housekeeping duties such as vacuuming, carpet cleaning, floor mopping and polishing, table cleaning, emptying of waste containers and other necessary miscellaneous housekeeping duties.

F. Keep and maintain the greens, tees, fairways, roughs, practice greens, Johnson Golf Course driving range including existing 22,000 square foot grass tee area and all other turf areas in as good or better condition than they were in at the beginning of the initial term of the lease.

G. Keep and maintain the shelter/restroom in the picnic area of Johnson Park, the front entrance to the Johnson Park Golf Course and the soccer fields in Johnson Park.

H. Keep and maintain the existing natural areas on the golf courses. This includes the control and destruction of all non-native invasive plants and noxious weeds as identified by the

Bureau of Endangered Resources, Wisconsin Department of Natural Resources. Lessee shall not increase the size of an existing natural area or add new natural areas without written approval from the City.

I. Water, fertilize and care for all new and existing landscape plant material, including trees and shrubs, groundcovers and perennials based on the most current horticultural practices.

Remove and replace all dead plant material with similar plants.

J. Be responsible for the immediate removal and proper disposal, of broken tree branches, either fallen or hanging. Shall remove all leaves, trimmings, cuttings and similar debris semi-annually from the leased premises by means other than burning. This material shall be removed the first time midway through the golf season, and the second time at the end of the golf season.

K. Upkeep and maintain the golf courses gravel cart paths. This shall include, but not limited to, the replacement of eroded gravel surfacing material.

L. Upkeep and maintain the wood decking of two (2) Johnson Golf Course bridges and one

(1) Washington Golf Course bridge over the Root River.

M. Hire, with the City at equal shared expense, a United States Golf Association (U.S.G.A.)

Agronomist to evaluate the golf courses each year of the golfing season and at the termination of the Lease in order to determine the continuing quality and condition of the leased premises, and in order to determine the responsibility of Lessee at the termination of the Lease. The Agronomist shall be hired for a half (1/2) day inspection if available, if not, then the Agronomist shall be hired for a full day and that inspection will considered an inspection for two (2) years. Each of these times an Agronomist is so hired, the Agronomist shall prepare a detailed written report containing the results of his evaluation. The recommendations made by the Agronomist shall, be implemented if mutually agreeable to the City and the Lessee. In addition, the City has a right to hire, at its own expense, a turf consultant to evaluate the condition and quality of the golf course at any and all other times as it deems such evaluation necessary or desirable.

N. Keep clean and in an orderly condition, any and all structures and improvements of the leased premises used by Lessee, including the maintenance storage yards. This shall include, but not limited to, merchandise, supplies, food and beverage equipment, maintenance equipment, machinery, trash dumpsters, tools, etc. Bulk material stockpiles

(sand, topsoil, mulch, gravel, etc.) shall be placed in designated areas within the maintenance storage yards. At no time shall the Lessee operate and maintain a dumpsite on the leased premises. All debris resulting from the golf course operations shall be properly disposed of, off the leased premises, without any expenses to the City. Lessee may not burn or bury debris on leased promises.

O. Not store non-leased-related equipment, vehicles, materials, supplies, etc. on the leased premises without written permission from the City.

P. Be responsible for minor repairs including repairs that are caused by vandalism. Examples of minor repairs shall include, but not be limited to: all repairs to the golf course grounds which are necessary to make ground be considered acceptable according to industry-wide standards and practices; edging and adding sand to bunkers; painting the interior or exterior of buildings and shelters including walls, doors and trim; caulking of windows and tuck pointing of masonry; performing basic custodial tasks including replacement of light bulbs, repairs to restroom and kitchen fixtures and appliances; electrical, plumbing and sewer repairs within building, repairs to all windows, doors, door closures, door locks and door jams; replacement of ceiling tiles and replacement of carpets and window treatments. In no event shall the City be required to make repairs or replacements when the damages are a result of the negligence or neglect of the Lessee or its employees or agents.

Q. Make no major alterations, additions, major repairs, permanent decorations, restorations or improvements of the leased premises without first submitting plans and specifications therefore to the City for its written approval. A major alteration shall be defined as any activity which changes the physical appearance, playing condition or intended purpose of golf course grounds, buildings, bridges, shelters, parking lots, roads, cart paths and irrigation systems. Any agreement to make major alterations, additions, major repairs, permanent decorations, restorations or improvements shall be submitted in advance of execution to the City for written approval and Lessee shall furnish a copy of the Lease

Agreement to any person making such major alterations, additions, major repairs, permanent decorations or improvements to the premises. Specific authority must be granted by the City. Such authorization shall be specifically conditioned upon Lessee’s agreement that Lessee or Lessee’s contractor shall supply a performance bond or letter of credit guaranteeing satisfactory completion of such construction and payment of all debts and claims arising from such construction. Any such construction permitted by the City to be made by Lessee shall become the property of the City.

R. Provide all labor, supplies, materials that may be necessary to assure the proper condition of the greens, tees, fairways, and building of the leased premises to the existing standards established. Provide for winterizing and care during the off-season months of the golf course grounds and greens in all ways including, but not limited to, necessary preventive maintenance to the course irrigation system and spraying on of fungicides. The irrigation system must be blown clear of water by compressed air. Lessee is responsible for damage to the irrigation systems by freezing or other winter conditions. The work to be done by

Lessee in connection with the general maintenance to the proper playing condition of greens, tees, and fairways and with the winterizing and winter care of said golf course shall be in accordance with generally accepted greens keeping methods. This provision also includes the clubhouses, and maintenance buildings, including adequate winter heat.

S. Provide for winterizing and care during the off-season months of any and all buildings on the leased premises including, but not limited to, the clubhouses, maintenance buildings, cart storage building and pump house including adequate heat. During the off-season months, the drinking fountain systems shall be blown clear of water by compressed air.

Lessee is responsible for damage to the drinking fountain system by freezing or other winter conditions.

T. At the termination of this Lease, Lessee shall surrender the leased premises to the City in the condition specified in the first paragraph of this section. Lessee shall be responsible for the repair or replacement of conditions of the leased premises that are determined to be substandard.

City shall be responsible for:

U. Pressure relief valves

V. The City will be responsible for tree removal.

W. The City shall be responsible for major repairs that are caused by vandalism, fire or other casualty. Major repairs shall be defined as structural repairs, including, but not limited to, such categories, as: the building floors (excluding carpeting and tile); exterior walls and roofs; heating and air conditioning systems; water and sewer laterals as well as electrical service leading to the building. If major repairs are required because of neglect or lack of regular maintenance of the facilities by Lessee, the Lessee shall be responsible for all repairs or replacements at its own cost, and without any expenses to the City.

X. City has responsibility for maintaining the parking lots or entrance roads except for trash and debris removal and disposal.

Y. The City shall be responsible for replacement of asphalt or concrete cart paths.

9. Maintenance Records

A. Golf course maintenance standards have been developed and are attached hereto (see attachment #6, 7, 8, and 9), and are incorporated herein as fully set forth. Lessee shall timely provide and comply with the standards set forth in attached standards. Lessee shall maintain monthly maintenance records listing all the required maintenance standards and the date(s) each standard operation was performed. The records shall also list who performed the work and all materials used by product and manufacturer name and application rates, is applicable. Golf Course maintenance records shall also include the material bill of sales.

B. Lessee shall timely provide and comply with all service maintenance schedules for, but not limited to, the heating, ventilating and air conditioning systems; fire suppression and exhaust systems and fire extinguishers. Lessee shall maintain monthly maintenance records listing all the required maintenance standards and the date(s) each standard operation was performed. The records shall also list who performed the work and all materials used by product and manufacturer name. Building maintenance records shall also include material bill of sales.

10. Liens

A. Lessee shall keep all of the leased premises and all buildings and other improvements at any time located thereon free and clear of any and all mechanic’s, materialmen’s, and other liens for or arising out of or in connection with work or labor done, services performed, or materials or appliances used or furnished for or in connection with any operations of

Lessee, any alteration, improvement, or repairs or additions which Lessee may make or permit or cause to be made, or any work or construction, by, for, or permitted by Lessee on or about the premises or any obligations of any kind incurred by Lessee. Lessee shall at all times promptly and fully pay and discharge any and all claims on which any such lien may or could be based, and shall indemnify the City and all of the premises and all the buildings and improvements thereon against such liens and claims of liens and suits and other proceedings pertaining thereto.

B. If Lessee desires to contest any such lien, it shall notify the City of its intention to do so within fifteen (15) days after the filing of such lien. In such case, and provided that Lessee shall on demand protect the City by good and sufficient surety bond against such lien and any cost, liability, or damage arising out of such contest, Lessee shall not be in default of this Lease Agreement until thirty (30) days after the final determination of the validity of the lien. Within that thirty (30) day time period, Lessee shall satisfy and discharge such lien to the extent held valid; but the execution is had on any judgment rendered thereon; such delay shall be a default of Lessee hereunder. In the event of any such contest, Lessee shall protect and indemnity the City against all loss, expense, and damage resulting there from, including attorney’s fees that may be incurred in connection with said dispute.

11. Capital Improvements

A. The City has the right to make whatever capital improvements it deems necessary or desirable at any time without expense to the Lessee. Before making any such improvements, the City shall meet with Lessee to discuss the effect of the improvement and making of such improvement upon Lessee’s operation of the leased premises. Lessee shall make itself available for such discussion. The City shall make a good faith effort to minimize or limit any adverse effect of any such improvement or the making of such improvement upon Lessee’s operation of the leased premises. The parties expressly understand and agree that Lessee shall not be relieved of any of its obligations under the

Lease Agreement, nor shall the City be liable to Lessee for any interruption of, costs or damages to, Lessee’s operation that may result from City’s making any capital improvements.

B. City agrees to give reasonable advance notice to Lessee of the date or time of any work which the City intends to do on the leased premises.

12. Easements

This lease agreement is subject to all easements of record relating to the leased premises and the rights of the City and other public utilities to go upon the premises comprising the golf course facilities for the purpose of installing, removing, inspecting or maintaining public utilities.

13. Johnson Golf Course Clubhouse

Building square footage is 6,744.

Lessee shall be responsible for acquiring and maintaining all clubhouse amenities, including the following mandatory (bold) and optional items, all items shall be of good quality:

A. General: Building security system, telephone system, fire extinguishers, public address system, thirty seven (37) lockers, benches, bulletin boards and signage.

B. Pro Shop: Merchandise, cash register, display cases, shelving, tables and clothes racks.

C. Men’s & Women’s Restrooms: Trash receptacles, towel and soap dispensers and toilet supplies.

D. Lounge: Five (5) 42” round tables, twenty (20) cushioned table chairs with arms, twelve (12) armless bar chairs, trash receptacles, beer keg cooler / taper, soda dispenser, cash register, stereo system and two (2) television.

E. Multi purpose area: Two (2) 5 foot diameter round tables, five (5) 3 foot by 6 foot rectangle tables, thirty four (34) cushioned armless table chairs, large screen television and a pool table.

F. Snack Bar Area: two (2) 36”round tables, eight (8) table chairs with arms, six (6) bar chairs, cash register, grill, beer keg cooler / taper, soda dispenser or cooler, food preparation counter, cookware, cooking utensils, napkin holders, serving dishes and utensils, menu display board, trash receptacles, cooler(s), storage cabinets, deep fryer, kitchen appliances and shelving.

G. Kitchen: Stove / oven, ice machine, cooler(s), freezer and shelving.

H. Basement: walk – in cooler.

I. Outdoor patio area: American flag, bag stands and five (5) spike / shoe cleaners.

Maintain the flower/shrub beds on the south and east sides of the building.

14. Johnson Golf Course Cart Storage Building

Building square footage is 4,800

Lessee shall be responsible for acquiring and maintaining all cart storage building amenities, including the following mandatory (bold) and optional items:

A. General: fire extinguishers, toilet room supplies, shelving, trash receptacles, desk, lockers and storage cabinets.

15. Johnson Golf Course Maintenance Building

Building square footage is 3,000.

Lessee shall be responsible for acquiring and maintaining all maintenance building amenities, A. General: fire extinguishers, trash receptacles and outside trash dumpster.

B. Workshop: machinery, power and hand tools, equipment lift, work bench, shelving, storage cabinets and filing cabinets.

16. Johnson Golf Course Office Building

Building square footage is 2,400.

Lessee shall be responsible for acquiring and maintaining all office building amenities, A. General: building security system, telephone system and fire extinguishers.

B. Office: desk, chairs, computer, filing cabinets and office supplies.

C. Restroom: trash receptacle, towel and soap dispensers and toilet supplies.

D. Outdoor area: Maintain the flower/shrub beds on the south and west sides of the building.

17. Johnson Golf Course Starter’s Building

Building square footage is 36.

Lessee shall be responsible for acquiring and maintaining all starter building amenities.

18. Shoop Golf Course Clubhouse

Building square footage is 2,590.

A. General: Building security system, telephone system, fire extinguisher, bulletin boards and signage.

B. Men’s & Women’s Restrooms: Trash receptacles, towel and soap dispensers and

C. Snack Bar / multi purpose Area: eight (8) 3 foot diameter round tables, one (1) 3 foot by 6 foot rectangle table, thirty-two (32) table chairs, five (5) bar chairs, cash register, beer keg cooler / taper, soda dispenser or cooler, food preparation counter, cookware, cooking utensils, napkin holders, serving dishes and utensils, menu display board, trash receptacles, television, grill, cooler(s), storage cabinets, kitchen appliances and shelving.

E. Outdoor patio area: American flag and spike / shoe cleaners. Maintain the flower/shrub beds on the south and west sides of the building.

19. Shoop Golf Course Maintenance Building

Building square footage is 600.

Lessee shall be responsible for acquiring and maintaining all maintenance building amenities, including the following mandatory (bold) and optional items:

20. Shoop Golf Course Storage Building

Building square footage is 600.

Lessee shall be responsible for acquiring and maintaining all storage building amenities.

21. Washington Golf Course Clubhouse

Building square footage is 6,600.

A. General: Building security system, telephone system, fire extinguisher, benches, bulletin boards and signage.

B. Men’s & Women’s Restrooms: Trash receptacles, towel and soap dispensers and

C. Snack Bar Area: : six (6) 36” square tables, twenty-four (24) table chairs, eight (8) bar chairs, cash register, beer keg cooler / taper, soda dispenser or cooler, food preparation counter, cookware, cooking utensils, napkin holders, serving dishes and utensils, menu display board, trash receptacles, television, grill, cooler(s), storage cabinets, kitchen appliances and shelving.

D. Outdoor patio area: American flag and spike / shoe cleaners.

22. Washington Golf Course Maintenance Building

Building square footage is 937.

Lessee shall be responsible for acquiring and maintaining all maintenance building amenities,

23. Washington Golf Course Storage Building

Building square footage is 720.

Lessee shall be responsible for acquiring and maintaining all storage building amenities.

24. All Golf Courses Rain Shelters

Lessee shall, throughout the term of the Lease, at its own cost, and without any expense to the City, keep and maintain the rain shelters on the golf courses including, but not limited to, painting and lightning protection equipment.

25. Golf Carts

Lessee, at its own expense and at no expense to the City, shall provide a minimum of thirty-five (35) motorized golf carts and (20) pull carts at Johnson Golf Course. Two (2) motorized golf carts and (10) pull carts at Washington Golf Course and (10) pull carts at Shoop Golf

Course. Motorized carts cannot be used at Shoop Golf Course. The lessee shall keep the specified number of carts in operating condition at all times the courses are open.

26. Grounds Maintenance Machinery, Equipment and Tools

A. Lessee shall be responsible for acquiring all grounds maintenance machinery, equipment and tools necessary to maintain the golf courses in as good or better a condition as at the beginning of the lease reasonable wear and tear excepted. Grounds maintenance machinery and equipment may include any or all of the following items: rotor, reel and hover mowers, aerifiers, sand trap rakes, utility carts, utility vehicles, tractors, trailers, sod cutters, fertilizer spreaders, leaf blowers, trimmers, edgers and chainsaws.

B. Lessee shall have the machinery and equipment in a well maintained; operating condition at all times to be able to maintain the golf courses in as good or better a condition as at the beginning of the lease, reasonable wear and tear excepted.

C. Lessee may from time to time, and on an occasional basis, rent at actual cost, equipment from the City, provided that City has such equipment then available for Lessee’s use.

However, the City may require that the equipment be operated by a City employee and that employee’s salary be added to the rental charge.

D. The Lessee, if it so choose, at its own cost and without any expense to the City, shall be responsible for supplying its own fuel sources at the golf courses and obtaining all required permits

27. Golf Course Amenities

A. Lessee shall be responsible for acquitting and maintaining any and all golf course amenities, including but not limited to, benches, ball washers, trash receptacles, tee markers, green flags, bunker rakes, putting green flags, yardage markers and out of bounds markers.

B. Lessee shall be responsible for the upkeep, maintenance and replacement of the tee signs.

28. Johnson Golf Course Driving Range Amenities

Lessee shall be responsible for acquitting and maintaining any and all driving range amenities, including but not limited to, range balls, ball washer, ball dispenser, tokens, ball basket caddies, bag stands, 10 range mats, yardage markers, signs, utility cart with cage and ball picker attachment.

29. Personnel

A. Lessee shall have knowledge and understanding of the principles and practices of golf course management and implement and utilize such principles and practices in its operation of the leased facilities.

B. Lessee shall provide sufficient and competent employees to adequately manage and operate the golf courses facilities, course maintenance, and shall be obligated to pay all salaries and benefits for such employees including the withholding of payroll, social security taxes, worker’s compensation, and other personnel costs which may be required.

Said employees shall be competent and able to deal effectively and courteously with the general public in a recreational setting. Lessee shall further provide adequate training to

Lessee’s employees so that they are able to perform maintenance on the golf courses facilities in a good workmanlike manner. Employees of the Lessee who use any restricted-use pesticides must be licensed and certified pursuant to State of Wisconsin

Laws and Regulations. Sufficient employees shall be hired to adequately staff the course at all times the course is open. The Lessee shall be an Equal Opportunity Employer.

C. Lessee agrees to employ a General Manager who is satisfactory to the City and who will be available at Johnson Golf Course at all reasonable times during operation of the Lease.

The City believes that the General Manager is key personnel and shall have a minimum of five (5) years of experience in Golf Course Lease / Management. If, at any time, the

City notifies Lessee that the General Manager is not acceptable, Lessee shall, within 48 hours, meet with the City to make other arrangements or resolve the differences

D. Lessee agrees to employ a Golf Course Superintendent who is satisfactory to the City and who will be available at all reasonable times during operation of the Lease. The City believes that the Golf Course Superintendent is key personnel and shall have a minimum of five (5) years of experience as a Golf Course Superintendent and a member of the Golf

Course Superintendent Association of Wisconsin. If, at any time, the City notifies Lessee that the Superintendent is not acceptable, Lessee shall, within 48 hours, meet with the

City to make other arrangements or resolve the differences.

E. Staffing is during operational hours at both Shoop Park Golf Course and Washington

Park Golf Course during the golf season.

F. Lessee will agree, at the request of the City or its authorized representative, and with the making of specific charges, forthwith terminate or suspend the employment of any employee whom the City or such representative considers detrimental to the best interests of the Golf Course or the public using same within 48 hours upon receipt of official notice.

30. Inspection and Accounting

A. Lessee shall monthly submit to the City an itemized statement of monthly gross revenue receipts received from the entire operation of the leased facilities. This statement shall be submitted to the City by the twenty-fifth (25 th

) day of each fiscal month, showing an accounting of gross revenue receipts for the previous fiscal month. The Lessee shall submit to the City an annual financial statement prepared in accordance with Generally

Accepted Accounting Principles (GAAP) and audited by an independent certified public accountant in accordance with Generally Accepted Auditing Standards (GAAS) for the entire operation of the leased facility. This report must be submitted to the City by July

31, following the end of the lease year. The annual financial statement shall be prepared by a Certified Public Accountant pursuant to generally accepted accounting principles, or in any manner prescribed by the Finance Director for the City. The Lessee shall keep or cause to be kept such reasonable books, records, journals, accounts and ledgers as may be required to properly and accurately reflect the amounts of revenues and expenses in accordance with generally accepted accounting principles. The cost of the preparation of the GAAP basis annual financial statement audited in accordance with GAAS by a

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