Explanation
Background: On September 23, 2005 the Department of Recreation and Parks received and opened five (5) bids for food services at Raymond Memorial Golf Course. The bids were evaluated on September 25, 2005 and the recommendation was made to award the revenue generating contract, CT01081R, to Schmidt's Concepts, Inc. for a term of three (3) years with the option to renew annually for an additional two (2) years.
The original contract would have generated $297,000 in revenue over five (5) years. On June 18, 2007, this contract was modified by Ordinance Number 0807-2007. The modification, CT01152R, increased the rent by $1,000 for 2007 and $1,000 for 2008 for a total modification of $2,000. The total annual revenue payments for 2007 amounted to $61,000 and for 2008 the total annual payments will equal $61,000.
This legislation will authorize a second modification between the City and the Concessionaire resulting in a $30,000 increase in total annual revenue payments for 2008, 2009 and 2010. The total revenue generated at the end of the contract period will amount to $329,000. Terms of the modification are as follows:
1. Permission is granted for off-site catering as required per paragraph 5a of the contract; sentence 4: "No off-site catering shall be permitted without the written authorization of the Executive Director."
2. For the privilege of conducting off-site catering from the facility located at Raymond Memorial Golf Course; 3860 Trabue Road, Columbus, Ohio 43228; and for additional vehicle storage, Schmidt Hospitality Concepts, Inc. is proposing to pay the City additional rent. The required rent (Section 4) shall be increased by $5,000 for 2008; $10,000 for 2009 and $15,000 for 2010. The total annual payment becomes $66,000 for 2008; $70,000 for 2009 and $75,000 for 2010.
3. All other terms and conditions remain the same for Raymond Memorial Food Concessions by Schmidt Hospitality Concepts, Inc.
The Contract Compliance Number for Schmidt Hospitality Concepts, Inc. is #31-1271318 which expires 09/22/08.
Fiscal Impact: Revenue payments will be made to the Golf Course Operations Fund No. 284; Department No. 51-03; OCA Code 025858-Raymond Golf Course.
Emergency action is requested as this modification affects the timing of the revenue generating contract and payment to the City. It also affects Schmidt Hospitality Concepts, Inc. and their ability to conduct business as well as entertain new opportunities.
Title
To authorize and direct the Director of Recreation and Parks to modify the revenue generating contract with Schmidt Hospitality Concepts, Inc. for food service concessions at Raymond Memorial Golf Course, and to declare an emergency.
Body
WHEREAS, five (5) bids were received by the Department of Recreation and Parks and evaluated on September 28, 2005 for a food service contract at Raymond Memorial Golf Course; and
WHEREAS, the recommendation was made to award the contract to Schmidt Hospitality Concepts, Inc. for a period of three (3) years with an option to renew annually for an additional two (2) years; and
WHEREAS, Ordinance Number 0807-2007 authorized the first modification to the original contract, CT01081R, thereby increasing the rent by $1,000 for years 2007 and 2008; and
WHEREAS, it is in the best interest of the Department of Recreation and Parks to modify the contract with Schmidt Hospitality Concepts, Inc. as specified in the background above; and
WHEREAS, an emergency exists in the usual daily operation of the Recreation and Parks Department in that it is immediately necessary to modify said contract so that the City can receive the increased payments as soon as possible; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Recreation and Parks be and he is hereby authorized and directed to modify the revenue generating contract, CT01081R, with Schmidt Hospitality Concepts, Inc. for food service at Raymond Memorial Golf Course, in accordance with the specifications on file in the Recreation and Parks Department.
SECTION 2. Revenue payments will be increased and made to the Golf Course Operations Fund No. 284; Department 51-03; OCA Code 025858-Raymond Golf Course as follows: 2008 increased by $5,000 for a total payment of $66,000; 2009 increased by $10,000 for a total payment of $70,000 and 2010 increased by $15,000 for a total payment of $75,000.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes the same.