HomeMy WebLinkAbout09144RESOLUTION NO. 9144
A RESOLUTION APPROVING A MANAGEMENT AGREEMENT
FOR THE OPERATION OF THE CITY PARK GOLF COURSE
RESTAURANT AND LOUNGE AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE SAME
WHEREAS, proposals for the operation of the City Park Golf Course
restaurant and lounge has been received and examined; and
WHEREAS, the proposal of M.C.A. Nacho's, Inc. of Pueblo, Colorado
was determined to be in the best interest of the City; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO,
THAT:
SFCTTON 1 _
A management agreement for the operation of City Park Golf Course
Restaurant and Lounge be, and same is hereby awarded to of M.C.A. Nacho's,
Inc. of Pueblo, Colorado. The awarding of the management agreement set forth
herein shall be subject to the filing of sufficient performance bond to be approved
by the Purchasing Agent of said City.
SFC'TTON 2_
The Management Agreement dated November 13, 2000 between the City
and M.C.A. Nacho's, Inc., a copy of which is attached hereto, having been
approved as to form by the City Attorney, is hereby approved.
SECTION 3.
The President of the City Council is authorized to execute the management
agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall
affix the seal of the City thereto and attest the same.
INTRODUCED: November 13, 2000
ATTEST:
_ �_
• -
FU Icity Clerk
BY Rich Golenda
Councilperson
APPROV
President of the City Council
TITLE:
A RESOLUTION APPROVING A MANAGEMENT AGREEMENT FOR THE
OPERATION OF THE CITY PARK GOLF COURSE RESTAURANT AND LOUNGE
AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE
THE SAME.
ISSUE:
Should the City Council award a contract for the operation of the City Park Golf Course
restaurant and lounge to M.C.A. Nacho's, Inc. of Pueblo, Colorado.
BACKGROUND:
The current contract for the operation of the City Park Golf Course restaurant and lounge
will terminate on December 31, 2000. Advertisement for bids for the operation of this
facility was on October 2 and 9, 2000 with bids received October 23, 2000. A mandatory
pre -bid and facility walk -thru meeting was conducted on October 11, 2000 which two
interested parties attended.
In general, the work consists of the management, maintenance, and operation of the
restaurant and lounge at the City Park Golf Course clubhouse. The restaurant
management agreement is for a term of five (5) years from January 1, 2001 to December
31, 2005. It may be extended by the City Council for an additional five (5) years term by
giving notice of such extension to the manager at least ninety (90) days prior to
December 31, 2005. The operator will furnish all labor, inventory, supplies, products,
tools, equipment and material and pay for all such items needed to operate the restaurant
and lounge facility.
Two bids were received on October 23, 2000. The bid proposal of M.C.A. Nacho's, Inc.
was determined to be in the best interest of the City. A bid summary is attached.
FINANCIAL IMPACT:
M.C.A. Nacho's, Inc. will pay the City the greater of a minimum annual guarantee of
$27,000 ($2,250/mo.) or 10% of gross sales up to $30,000 monthly plus 3% of gross
sales in excess of $30,000 monthly. M.C.A. Nacho's, Inc. has also proposed to invest
approximately $125,000 of their own funds for capital improvements to the restaurant
and lounge facility.
RECOMMENDATION:
Approval of the resolution.
CITY PARK MUNICIPAL GOLF COURSE
RESTAURANT AND LOUNGE
MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT entered into as of November 13, 2000, by and
between the City of Pueblo, Colorado, a Municipal Corporation, 1 City Hall Place, Pueblo, Colorado,
81003, hereinafter referred to as the "City ", and M.C.A. Nachos, Inc., a Colorado corporation, whose
principal place of business is 409 N. Santa Fe Avenue, Pueblo, Colorado, 81003, hereinafter referred
to as the "Manager ".
WITNESSETH:
WHEREAS, the City now owns and operates a municipal golf course which is open to public
play and located on the premises commonly known as "City Park Municipal Golf Course ", 3900
Thatcher Avenue, Pueblo, Colorado, (the "Golf Course ") and
WHEREAS, there is located on the Golf Course a restaurant and lounge, and
WHEREAS, the City desires to engage a qualified manager to manage, operate, maintain and
promote the restaurant and lounge, and
WHEREAS, Manager is qualified and capable of managing, promoting, maintaining and
operating the restaurant and lounge;
NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein
contained, the City and Manager agree as follows:
As used herein, the following words and phrases shall have the following meaning:
(a) "Leased Facilities" means and includes the entire City Park Municipal Golf
Course clubhouse and facilities located therein, but excluding (i) the "pro shop" consisting of
approximately 1,056 square feet of floor area located on the east side of the clubhouse, and (ii) the
"storage room" consisting of approximately 567 square foot of floor area located in the basement of
the clubhouse.
(b) "Restaurant and lounge" means the restaurant and lounge located in the Leased
Facilities.
(c) "Director" means the City's Director of Parks and Recreation.
(d) "Gross sales" means the entire amount of the sales price for cash or otherwise
of all sales of merchandise, beverages, food and foodstuffs conducted in, at, on and from the Leased
Facilities by Manager or any subtenant but excluding amounts collected and paid by Manager to any
governmental authority for any sales taxes. Sales shall include without limitation (i) where the orders
originate in, at, from or arising out of the use of the Leased Facilities whether delivery is made from
the Leased Facilities or from some other place, and (ii) made or performed by means of mechanical
or other vending devices in the Leased Facilities.
2. City hereby appoints and retains Manager, subject to and upon the terms and
conditions herein set forth, as an independent contractor to operate, manage, maintain and promote
the restaurant and lounge and the Leased Facilities for a term of five (5) years from January 1, 2001
to December 31, 2005, unless sooner terminated as herein provided. The term of this Agreement may
be extended by the City Council of City for an additional five (5) year term upon City giving written
notice of such extension to Manager at least ninety (90) days prior to December 31, 2005. During
the effective period of this Agreement, Manager shall have the exclusive privilege to sell beverages,
food and foodstuffs on the Leased Facilities.
3. Manager accepts said appointment and agrees to operate, manage, maintain and
promote the restaurant and lounge and the Leased Facilities and perform the following covenants and
services during the effective period of this Agreement:
(a) Supervise and be responsible for all aspects of the operation, maintenance,
management and promotion of the restaurant and lounge and all activities on the Leased Premises,
including the efficient management and operation of the restaurant and lounge, and the maintenance
and upkeep of the interior of the Leased Facilities in at least the same or better condition than
presently existing.
(b) Develop and implement efficient maintenance programs for the Leased
Facilities including the custodial and interior maintenance of the Leased Facilities and all equipment
and facilities located therein.
(c) Develop and implement efficient management programs for the operation,
scheduling of and use of the restaurant and lounge and Leased Facilities and the provision of services
to the public including the presence of Manager's personnel.
(d) Hire, supervise and schedule all employees needed and required for the
efficient operation, maintenance, management and promotion of the restaurant and lounge and Leased
Facilities. It is expressly understood and agreed that all employees hired by Manager shall be the
employees of Manager and no contractual obligations or relationship of employer- employee shall exist
between the City and such employees. Manager shall provide all workers' compensation insurance
for its employees in accordance with the provisions of the laws of the State of Colorado and furnish
Director satisfactory proof that such insurance is in effect.
(e) Be responsible for the security and inventory of, and maintain in good
condition and repair, all City's beverage carts, equipment, fixtures and machinery used by Manager
or placed under Manager's custody and control by City. An initial inventory of such beverage carts,
machinery, fixtures, and equipment shall be prepared and signed by the Director and Manager and
attached hereto. Director and Manager shall annually update such inventory.
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(f) Keep and maintain accurate and complete accounts and records of all activities
and transactions conducted by Manager on the Leased Facilities in accordance with generally
accepted accounting principles, which accounts and records shall be available for inspection, copy
and audit by City during normal business hours. Manager shall retain all such accounts and records
for a minimum period of three (3) years after termination of this Agreement.
(g) Keep the Leased Facilities and all fixtures and equipment therein in a clean,
sanitary, safe and orderly condition.
(h) Comply strictly with all applicable federal, state and City laws, rules and
regulations.
(i) Keep the restaurant and lounge and Leased Facilities open for business at such
hours and times as the Golf Course is open for play and at such other hours and times as the Director
and Manager shall from time to time determine.
0) Furnish prompt, courteous and efficient service adequate to meet all reasonable
demands and needs of the public, ensuring polite and inoffensive conduct and demeanor on the part
of its representatives, agents and employees.
(k) Meet with the Director at least semi - annually to review the fees and charges
being made by Manager for food and beverages, which fees and charges shall be reasonable and
competitive with fees and charges for similar services and merchandise. Manager shall be directly
responsible to the Director in all matters concerning the operation, maintenance, promotion and
management of the restaurant and lounge and the use of the Leased Facilities.
(1) Surrender and deliver to City, at the termination of this Agreement, the Leased
Facilities and all City equipment in good order and condition, reasonable wear and tear excluded.
(m) Maintain in force at Manager's sole cost during the effective period of this
Agreement commercial liability insurance, including personal and bodily injury, blanket contractual,
products liability, non -owned and hired automobile coverage, covering all activities conducted by
Manager under this Agreement, in the minimum amount of $1,000,000 aggregate, per occurrence for
personal and bodily injury and $500,000 aggregate, per occurrence for property damage. Certificates
evidencing such insurance coverage and workers' compensation insurance shall be filed with the
Director on or before the effective date of this Agreement and said certificates shall certify that such
insurance coverage is in force and will not be cancelled or reduced without at least thirty (30) days
prior written notice to City and that the City is named as an additional insured under the policies of
liability insurance. At least ten (10) days prior to the expiration of any such insurance, a certificate
showing such insurance has been renewed or extended shall be filed with the Director.
(n) Carry, furnish, provide and replace as needed, at Manager's sole cost and risk
sufficient and adequate food, foodstuffs, beverages, equipment, furnishings and furniture in the
Leased Facilities as determined necessary by the Manager and Director to meet the reasonable needs
-3-
and demands of the public, including without limitation, (i) tables, chairs, glasses, dishes and utensils
for the restaurant and lounge, (ii) beverages, food and foodstuff for breakfast, lunch and dinner menus
and banquets. The Director shall approve the quality, quantity and decor of equipment, furniture,
furnishings and fixtures prior to their purchase and placement thereof on the Leased Facilities by
Manager. Manager and Director shall prepare and sign an inventory of equipment, furnishings,
ftimiture and fixtures to be supplied and furnished by Manager and annually update such inventory.
(o) Pay at Manager's sole cost, before same become delinquent, all sales, use and
property taxes on Manager's property and business conducted on the Leased Facilities. Manager shall
collect and remit to City all sales taxes on the sale of food, beverages and merchandise.
(p) Operate and manage the restaurant and lounge and Leased Facilities as public
facilities for the use and benefit of the public on a fair, equal and nondiscriminatory basis without
preferential treatment to any individual, group or entity. Manager shall comply fully with state and
federal anti- discrimination laws, rules and regulations and specifically agrees that no person shall be
denied or refused services or other full or equal use of the restaurant and lounge or the Leased
Facilities, nor denied employment opportunities by Manager as a result of race, creed, color, sex, age,
national origin, ancestry or disability unrelated to ability or job performance.
(q) Obtain at Manager's cost and expense all licenses required for the operation
of the restaurant and lounge and the activities conducted on the Leased Facilities including a
restaurant license and hotel and restaurant liquor license. All such licenses shall remain with the
Leased Facilities and upon termination of this Agreement Manager shall transfer or approve the
transfer of such licenses to City or its designee. For such purposes, Manager hereby irrevocably
appoints Director its agent and attorney in fact to execute all approvals and instruments required for
such transfers. Manager shall not sell or give or permit the sale or giving of alcoholic beverages
including beer, wine and liquor to any person on the Golf Course except within the Leased Facilities
or such other location or place as the Director shall in writing approve.
(r) Coordinate the operation and management of the restaurant and lounge and
use of the Leased Premises in a cooperative manner with the manager of the Golf Course including,
but not limited to, allowing such manager reasonable access to the pro shop. Any dispute between
the Manager and the manger of the Golf Course shall be resolved by the Director.
(s) Comply with the rules and regulations adopted by the Director relating to the
use of the Golf Course parking lot.
(t) Meet and comply with the nondiscrimination and equal employment
requirements of section 1 -8 -4 of the Pueblo Municipal Code which are incorporated herein by
reference.
(u) Furnish, maintain, and keep in force during the effective term of this
Agreement a good and sufficient Performance Bond on form provided by City in an amount not less
than the Minimum Annual Guarantee as security for the faithful performance of this Agreement and
in
for the payment of all persons performing labor and furnishing equipment and provisions in
connection with the restaurant and lounge and the return of the Leased Facilities, and City -owned
fixtures and equipment in good condition upon termination of this Agreement.
(v) Make capital improvements to the Leased Facilities in the amount and for the
purposes specified in the attached Offeror's Explanation of Capital Improvements To Restaurant/
Lounge on or before April 1, 2001.
4. City, subject to availability of sufficient budgeted and appropriated funds therefor,
shall repair and maintain the parking lot, and the clubhouse (except the interior of the Leased
Facilities and pro shop) including roofs, walls and foundations, and, except for minor and routine
repairs, repair and maintain the heating, plumbing and electrical systems in the Leased Facilities. For
purposes of such repairs and maintenance, City shall have access to and use of the Leased Premises.
5. For the use of the Leased Facilities, Manager shall pay to City monthly rent equal to
the greater of (i) one - twelfth (1/12) of $27,000.00 (the Minimum Annual Guarantee), or (ii) ten (10)
percent (10 %) of monthly gross sales up to $30,000.00 plus three (3) percent (3 %) of monthly gross
sales in excess of $30,00.00 for each calendar month, with the first and last calendar month being
prorated. Monthly rent shall be paid to the City's Department of Finance without notice, set off or
deduction, on or before the tenth (10th) day of each calendar month starting with the month of
January 2001. Manager shall furnish City's Department of Finance with monthly statements showing
gross sales during the prior calendar month on or before the fifteenth (15th) day of each following
month. Manager shall keep accurate books and records of all its business conducted in, at, on and
from the Leased Facilities and City shall have the right to examine, inspect or audit such books and
records upon notice to Manager. If Manager shall fail to timely file any monthly statement, or if
Manager shall refuse to produce or to allow City to inspect its books and records after request, City
may upon three (3) days prior written notice to Manager specifying the date of termination, terminate
this Agreement without releasing or discharging Manager from any and all liabilities incurred or
existing on the date of termination.
6. Manager shall fully indemnify and hold harmless, protect and defend at its sole cost
and expense, the City, its officers, agents and employees from and against any and all risks, suits,
damages, expenses, penalties or claims (including costs and reasonable attorney fees) which City, its
officers, agents or employees may incur or become liable as a result of the injury or death of any
person or persons, or the loss or damage of any property, or the violation of any law or regulation
arising out of or in connection with the operation of the restaurant and lounge or use of the Leased
Facilities or the performance or nonperformance of this Agreement by Manager or the negligent acts
or omissions of Manager or any of its officers, agents or employees or any other person acting on
behalf of Manager.
7. Time is of the essence hereof and to each and every provision of this Agreement. If
in the judgment of City Manager of City the manner of maintenance or operation of the restaurant
and lounge or the use of the Leased Facilities or the quality or quantity of service, merchandise or
food does not meet the requirements of this Agreement, or if Manager breaches or is in default of any
-5-
term or condition of this Agreement, City may give Manager written notice specifying with
reasonable particularity the unsatisfactory performance or default. If Manager fails or refuses to
remedy such unsatisfactory performance or default within thirty (30) days after receipt of such notice,
City may terminate this Agreement. If City institutes any litigation to enforce its rights or remedies
under this Agreement, Manager agrees to pay all costs of enforcement including reasonable attorney
fees.
8. Manager shall not use or allow the restaurant and lounge or the Leased Facilities to
be used for any improper, unlawful, immoral or objectionable purpose and shall not cause, maintain
or permit any disorderly conduct, nuisance or waste in, on or about the Leased Facilities. Manager
shall not conduct any activity or sell anything at or on the Leased Facilities except as specifically
authorized in this Agreement.
9. Manager shall not make any improvements of a permanent nature to the Leased
Facilities or install any sign on the Golf Course or Leased Facilities or make any additions, changes,
remodeling or alterations to the Leased Facilities without the Director's prior written approval and
obtaining all permits required therefor. All such approved improvements, signs, additions, changes,
remodeling or alternations shall remain the property of the City.
10. It is understood and acknowledged by the parties that the relationship of Manager to
City is that of an independent contractor and that Manager shall have no authority to employ any
person as employee or agent for or on behalf of City for any purpose. Manager shall have no
authority, expressed or implied, to bind the City to any agreement, liability or understanding.
Manager shall pay when due all required withholding and other employment taxes and income tax on
any monies paid pursuant to this Agreement.
11. If the consent or approval of the Director, City Manager or City is required under this
Agreement for any purpose, such consent or approval will not be unreasonably withheld. Any
approval or consent required by the City shall be by Resolution adopted by the City Council of City.
12. In the event a dispute arises between Manager and the Director with respect to any
provision of this Agreement or the obligations or performance of either the City or Manager
hereunder, the Director or Manager may submit such dispute to the City Manager for resolution and
determination. If such dispute is submitted to the City Manager for resolution, his decision thereon
shall be binding upon all parties.
13. Neither the City nor any of its officers, employees or agents shall be responsible or
liable for any injury, damage or loss arising out of this Agreement, or Manager's performance or
nonperformance hereof, or occurring on or within the Golf Course or Leased Premises from any
cause whatsoever, including, but not limited to, (i) the condition of the Golf Course or Leased
Premises, (ii) snow or ice or water or sewer leakage or back -up, (iii) the making or failure to make
required repairs hereunder by City, and (iv) the failure or interruption of utility services; and Manager
hereby waives, releases and discharges City, its officers, employees and agents therefrom.
BE
14. If the Leased Premises are damaged or destroyed by fire or other casualty, the City
may, in its sole and absolute discretion, either (i) repair or rebuild the Leased Premises, or (ii)
terminate this Agreement.
15. This Agreement sets forth all understandings and agreements between City and
Manager. No change, modification or amendment shall be valid and binding unless set forth in
writing, approved by the City, and signed by City and Manager. No verbal representation, agreement
or understanding with any officer, employee or agent of the City, either before or after execution of
this Agreement, shall affect, modify or change any of the terms or provisions of this Agreement.
16. This Agreement shall not be assigned in whole or in part, nor shall the Leased
Facilities or any part thereof be sublet, nor shall any right or privilege herein granted to Manager be
sold, transferred or assigned without the prior written approval of the City. Any such sale, transfer,
subletting or assignment, whether voluntary or involuntary, without the prior written approval of City
shall be void and constitute grounds for immediate termination of this Agreement at the option of the
City. The term "assignment" means and includes the sale or transfer of a majority of the capital stock
of Manager to any person, firm, corporation or any other entity.
17. City reserves the right to enter upon the Leased Facilities at any time for any reason.
18. The waiver by City of any breach of any term or provision of this Agreement shall not
be deemed to be a waiver of such term or provision for any subsequent breach of the same or any
other term or provision.
19. Any notice required under this Agreement shall be in writing and personally delivered
or sent by United States certified mail, postage prepaid, to:
(a) if to the City: City Manager, City of Pueblo, 1 City Hall Place, Pueblo,
Colorado, 81003;
(b) If to the Manager, 409 N. Santa Fe Avenue, Pueblo, Colorado, 81003;
or to such other place as City or Manager may from time to time designate in a written notice to the
other party.
20. If any provision of this Agreement is declared invalid or unenforceable by a court of
competent jurisdiction, the unaffected provisions hereof shall remain in full force and effect.
21. This Agreement shall be governed by the laws of the State of Colorado and shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
approved assigns. Venue for any litigation arising out of this Agreement shall be Pueblo County,
Colorado.
22. Notwithstanding any provision of this Agreement to the contrary, no term or provision
-7-
of this Agreement shall be construed or interpreted as a waiver, expressed or implied, of any of the
immunities, benefits, rights, protections, or any other provisions of the Colorado Governmental
Immunity Act, section 24 -10 -101 et seq. C.R.S., or any other law granting immunity to the City and
its officers and employees.
Executed the day and year first above written.
CITY OF PUEBLO,
A "oftheoCity TION
By ncil
Attes t: Pk At
City rk
GUARANTY
In consideration of the City of Pueblo, a Municipal Corporation approving and executing the
foregoing Management Agreement, the undersigned Martin Ayala does hereby personally guarantee
the performance of the Management Agreement by M.C.A. Nachos, Inc. In the event of the default
of M.C.A. Nachos, Inc. under any provision of the Management Agreement and written notice
thereof is given to Martin Ayala, Martin Ayala will timely cure such default and perform all the
covenants and provisions of the Management Agreement to be performance by M.C.A. Nachos, Inc.
thereunder.
Signed on November 13, 2000.
F. \CITY\PARK &REC \GOLFCRSE \RSTRNTS \NACHOS \AGRMNTI.WPD - O -
M.C.A. NACHOS, INC.
Cl (Y Of PUEBLO - REiTAUTANT - Cl It PARK GULF COURSE
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Y "A" - AUOITIUN. "0' - UELETIUM UURIIIG :UKR:"T PEXI)U
AE11AUkANI - CITY PARK GULF COURSE AuulI10NS uiLETIONS ENDING UAL CLASS l CLASS 2 CLASS ) CLASi 1
U.ilU 0.00 it, .906.IS 6 .UU 0.00 , 61.06 ,6.a5 s.4 ,61.50
SECTION IV
2. OFFEROR'S EXPLANATION OF CAPITAL
IMPROVEMENTS TO RESTAURANT/LOUNGE
Repairs and replacement of permanent fixtures (i.e. carpet, walls, etc.):
Explain:
Work to be done by.BAV Construction.
Includes repair /replacement of old
and new equipment. Expand existing
kitchen, enclose server__.station and
make existing office storage area.
Hook up all equipment to meet building
and health department codes. ' Tear
out existing walk -in and instll new
on e. uIa walt-tri t5 in vtolat on of
health department regulation. Repair
and
plumbing as needed. Install new
car ye b.
Improvements to be located in facility (i.e. chairs, tables, utensils, equipment, etc.):
Explain: Purchase walk -in cooler, stove steam
table, deep fryer ;._reach- in_freezers,
salamander, margarita machine, shelving,
convection oven, microwaves, ice machine,
televisions,• decorations, pots /pans,
flatware, i e, , serving
ute nsils, and repair tables and chairs.
TOTAL: S 12 r' . 0 0 n
City Park Restaurant & Lounge
BID SUMMARY BIDDERS
BID NO. 00 -070 Martin Hochis
Ayala
DATE: 10/23/00 TIME: 2:00 PM dba - Nachos
COMMODITY: CITY PARK
GOLF COURS & LOUNGE
ITEM QUANTITY
1 Minimum Annual Guarantee
2 Percent of Gross Sales
Up to Monthly
plus Percent of Gross Sales
in Excess of Monthly
3 CanitalImprovements
UP 27000.00 36000.00
10
30000.00
3
30000.00
1 UP 125000.00 25000.00
AMT 125000.00 25000.00