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RESOLUTION NO. 7740
A RESOLUTION APPROVING PROFESSIONAL SERVICES
AGREEMENTS BETWEEN PUEBLO, A MUNICIPAL
CORPORATION AND ZAREMBA ENTERPRISES, INC., AND
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL
TO EXECUTE SAME.
WHEREAS, the City desires to continue the engagement of Zaremba Enterprises, Inc. to
manage, operate, maintain and promote the Walkingstick Golf Course and its related facilities under
modified management agreements, and
WHEREAS, Zaremba Enterprises, Inc. is willing to continue such engagement under
modified management agreements; and
WHEREAS, entering into modified management agreements for operation, maintenance,
promotion and management of the Walkingstick Golf Course would be in the best interest of the City
of Pueblo; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Walkingstick Golf Course Management Agreement dated November 13, 1995 between
Pueblo, a Municipal Corporation and Zaremba Enterprises, Inc. relating to the operation,
maintenance, promotion and management of the Walkingstick Golf Course (excluding the restaurant,
lounge and pro -shop) and the Walkingstick Golf Course Pro -Shop, Restaurant And Lounge
Management Agreement dated November 13, 1995 between Pueblo, a Municipal Corporation and
Zaremba Enterprises, Inc. relating to the maintenance, promotion, management and promotion of
the Walkingstick Golf Course restaurant, lounge and pro -shop, copies of which are attached hereto
and incorporated herein, having been approved as to form by the City Attorney, are hereby approved.
SECTION 2.
The President of the City Council is authorized to execute and deliver the Agreements in the
name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same.
INTRODUCED November 13, 1995
By John Califano
Councilperson
ATTEST: APP VED:
City Cler resident of the City Council
CITY OF PUEBLO
WALKINGSTICK GOLF COURSE
PRO -SHOP, RESTAURANT AND LOUNGE
MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT entered into as of the 13th day of November, 1995,
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 Zaremba Enterprises, Inc., a Colorado
Corporation, 363 South Archer, Pueblo West, Colorado, 81007, 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 "Walkingstick Municipal Golf Course ", 4301
Walkingstick Boulevard, Pueblo, Colorado, and
WHEREAS, there is located in the Walkingstick Municipal Golf Course clubhouse a pro -
shop, restaurant and lounge, and
WHEREAS, the City desires to engage a qualified manager to manage, operate, maintain
and promote the pro -shop, restaurant and lounge, and
WHEREAS, Manager is qualified and capable of managing, promoting, maintaining and
operating the pro -shop, 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) "Golf Course" means and includes the property owned or leased by City
comprising the Walkingstick Municipal Golf Course and all facilities thereon including, without
limitation, the clubhouse, restaurant, lounge, pro shop, starter building, maintenance building and
parking lot.
(b) "Leased Facilities" means and includes the pro -shop, restaurant and lounge
located on the first floor of the Golf Course clubhouse consisting of approximately 3,376 square feet
of floor area.
(c) "Director" means the City's Director of Parks and Recreation.
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 Leased Facilities for a term of five (5) years from December 1, 1995 to November 30, 2000,
unless sooner terminated as herein provided. During the effective period of this Agreement,
Manager shall have the exclusive privilege to sell golf lessons, beverages, food, foodstuffs, golf
balls, golf clubs and golf related merchandise on the Golf Course. City reserves the right to locate
City employees in the pro -shop portion of the Leased Facilities at such location mutually determined
by Manager and Director for the purpose of collecting fees and charges for use of the Golf Course
and golf carts. At the written request of Manager, City and Manager will no later than April 1, 2000
enter into discussions for the renewal of this Management Agreement. If City and Manager are
unable for any reason to mutually agree upon the terms and conditions of such renewal by June 1,
2000, this Management Agreement will terminate November 30, 2000.
3. Manager accepts said appointment and agrees to operate, manage, maintain and
promote the Leased Facilities and perform the following 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 Leased Facilities and all activities thereon, including the efficient
management and operation of the Leased Facilities, 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.
(c) Develop and implement efficient management programs for the operation,
scheduling of and use of the 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 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 workmen's 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 equipment, fixtures and machinery used by Manager or placed under
Manager's custody and control by City. An initial inventory of such 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.
(f) Keep and maintain accurate and complete accounts and records of all
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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 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 Leased Facilities open for business at such hours and times as the
Director and Manager shall from time to time determine subject to the approval of the City
Manager.
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, beverages, merchandise, rentals, and lessons, which fees and
charges shall be reasonable and competitive with fees and charges for similar services and facilities.
Manager shall be directly responsible to the Director in all matters concerning the operation,
maintenance, promotion and management 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 comprehensive general public 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 December 1, 1995 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 stock -in- trade, merchandise, food, foodstuffs, beverages, equipment,
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furnishings and furniture in the Leased Facilities as determined necessary by the Manager and
Director to meet the reasonable needs and demands of the public, including without limitation,
(i) varied stock of merchandise for sale at the pro shop, (ii) tables, chairs, glasses, dishes and utensils
for the restaurant and lounge, (iii) 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 Golf Course
by Manager. Manager and Director shall prepare and sign an inventory of equipment, furnishings,
furniture and fixtures to be supplied and furnished by Manager and annually update such inventory.
Manager shall not sell golf clubs or other golf related merchandise at or from any other location
within Pueblo County, Colorado during the effective period of this Agreement.
(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 or rental of Manager's stock -in -trade and
merchandise including food and beverages.
(p) Operate and manage the 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 Leased Facilities, nor denied employment
opportunities by Manager as a result of race, creed, color, sex, age, national origin, ancestry or
handicap unrelated to ability or job performance.
(q) Obtain at Manager's cost and expense all licenses required for the operation
of the Leased Facilities and the activities conducted thereon including a restaurant license and hotel
and restaurant liquor license. All such licenses shall remain with the Golf Course 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 City 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.
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) 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.
5. For the use of the Leased Facilities, Manager shall pay to City a monthly fee of
$2,000.00 commencing with the month of December 1995.
6. Manager shall fully indemnify and hold harmless, protect and defend at its sole cost
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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 Leased Facilities or the performance of this
Agreement by 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 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 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 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 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.
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.
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13. If this Agreement is terminated for any reason or is not extended or renewed beyond
its initial five year term, City will purchase from Manager (i) all equipment, furnishings, fixtures
and utensils (excluding merchandise, foodstuffs or beverages) located on and then being used on the
Leased Facilities and (ii) all golf related merchandise with the Walkingstick Golf Course logo
imprinted thereon, which was purchased and paid for by Manager with its own funds. The purchase
price shall be mutually agreed upon by City and Manager. If City and Manager are unable to
mutually agree upon the purchase price within thirty days after termination or non - renewal, the
purchase price shall be determined by three appraisers familiar with the values of the items to be
purchased, selected as follows: one by City, one by Manager, and one jointly by the appraisers
selected by City and Manager. The three appraisers by a majority decision shall determine the
purchase price within thirty days after their appointment.
14. 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 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.
15. 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 .
16. City reserves the right to enter upon the Leased Facilities at any time for any reason.
17. 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.
18. 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, 363 South Archer, Pueblo West, Colorado, 81007;
or to such other place as City or Manager may from time to time designate in a written notice to the
other party.
19. If any provision of this Agreement is declared invalid or unenforceable by a court
IN
of competent jurisdiction, the unaffected provisions hereof shall remain in full force and effect.
20. 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.
21. The Walkingstick Golf Course Management Agreement dated December 10, 1990
between City and Manager is terminated effective December 1, 1995 and City and Manager are
released from all future obligations thereunder.
Executed the day and year first above written.
CITY OF PUEBLO,
A MUNICIPAL CORPORATION
B
resident of the City Council
Attest:
City Cle
ZAREMBA ENTERPRISES, INC.
By �y
President
Attes
Secretary
GUARANTY
In consideration of the City of Pueblo, a Municipal Corporation approving and executing the
foregoing Management Agreement, the undersigned Michael Zaremba does hereby personally guarantee
the performance of the Management Agreement by Zaremba Enterprises, Inc. In the event of the default
of Zaremba Enterprises, Inc. under any provision of the Management Agreement and written notice
thereof is given to Michael Zaremba, Michael Zaremba will timely cure such default and perform all
the covenants and provisions of the Management Agreement to be performance by Zaremba Enterprises,
Inc. thereunder.
Signed the 13th day of November, 1995.
Michael Zaremba
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CITY OF PUEBLO
WALKINGSTICK GOLF COURSE
MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT entered into as of the 13th day of November, 1995,
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 Zaremba Enterprises, Inc., a Colorado
Corporation, 363 South Archer, Pueblo West, Colorado, 81007, 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 "Walkingstick Municipal Golf Course ", 4301
Walkingstick Boulevard, Pueblo, Colorado, and
WHEREAS, the City desires to engage a qualified manager to manage, operate, maintain
and promote the golf course, and
WHEREAS, Manager is qualified and capable of managing, promoting, maintaining and
operating the golf course;
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) "Golf Course" means and includes the property owned or leased by City
comprising the Walkingstick Municipal Golf Course and all facilities thereon including, without
limitation, the clubhouse, starter building, maintenance building and parking lot, but excluding
therefrom the pro -shop, restaurant and lounge located on the first floor of the Golf Course clubhouse
consisting of approximately 3,376 square feet of floor area.
(b) "Director" means the City's Director of Parks and Recreation.
2. (a) 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 Golf Course for a term of five (5) years from December 1, 1995 to November 30, 2000, unless
sooner terminated as herein provided. City reserves the right to fix and establish all fees and charges
for the use of the Golf Course and activities conducted thereon.
(b) City may, without cause and without penalty, terminate this Agreement at the
end of the third year of the five (5) year term of this Agreement, i.e., on November 30, 1998, upon
120 days prior written notice given to Manager.
(c) All financial obligations of the City under this Agreement in any calendar
year, including without limitation the financial obligations contained in paragraphs 4 and 5 hereof,
are contingent upon funds for that purpose being budgeted and appropriated by the City Council of
City on or before December 31 of the prior calendar year. Failure to budget and appropriate such
funds by December 31 for any subsequent calendar year shall constitute an event of non -
appropriation. In the event of non - appropriation, City or Manager may terminate this Agreement
upon thirty (30) days prior written notice given to the other party.
3. Manager accepts said appointment and agrees to operate, manage, maintain and
promote the Golf Course and perform the following 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 Golf Course and all activities thereon, including the maintenance
and upkeep of the Golf Course in at least the same or better condition than presently existing.
(b) Develop and implement efficient maintenance programs for the Golf Course
including (i) custodial and interior maintenance of the buildings, and (ii) greens, tees, aprons, traps
and hazards, fairway, lakes, roughs and driving range including watering, chemical and fertilizer,
mowing, seeding, reconditioning and reseeding, moving of green cups and tee markers, airifying
and topdressing, and weed control and elimination programs. Manager shall on or before December
1 of each year submit such programs to the Director for review and approval.
(c) Develop and implement efficient management programs for the operation,
scheduling of and use of the Golf Course and the provision of services to the public including the
presence of Manager's personnel, golf course superintendent, and golf professional at the Golf
Course. Manager shall on or before December 1 of each year submit such programs to the Director
for review and approval.
(d) Hire, supervise and schedule all employees needed and required for the
efficient operation, maintenance, management and promotion of the Golf Course, including without
limitation, (i) a golf professional who possesses a P.G.A. Class "A" Certificate experienced in the
management and operation of golf course facilities, and (ii) a qualified golf course superintendent
and greens- keeper experienced in maintenance, upkeep and care of golf courses familiar with the
soil and climatic conditions of the area. The golf professional and golf course superintendent shall
be acceptable to City (Manager shall confer with and obtain the City Manager's approval prior to
their employment, discharge or replacement) and shall be employed by Manager on a full -time basis
during the effective period of this Agreement. 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 workmen's compensation insurance for its employees in accordance with the provisions
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of the laws of the State of Colorado and furnish Director satisfactory proof that such insurance is
in effect.
(e) Use its best efforts to effect operation and cost control and savings.
(f) Be responsible for the security and inventory of, and maintain in good
condition and repair, all City's equipment, fixtures and machinery used by Manager or placed under
Manager's custody and control by City. An initial inventory of such machinery, fixtures, and
equipment shall be prepared and signed by Director and Manager and attached hereto. Director and
Manager shall annually update such inventory.
(g) Monitor all activities on the Golf Course to insure compliance with all
resolutions or ordinances of City governing the rules of play, regulating the use of the Golf Course
and facilities therein, and imposing fees and charges for use of or activities on the Golf Course.
(h) Keep and maintain accurate and complete accounts and records of all
activities and transactions conducted by Manager on the Golf Course 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.
(i) Submit to Director during August of each year a proposed Golf Course budget
for the next calendar year. Manager understands and agrees that the Golf Course budget will not
include reimbursement for any cost or expense incurred by Manager in (i) the employment of golf
professionals, (ii) the performance of management services, and (iii) the performance of the services
and furnishing the items described in subparagraphs (h) and (r) of this paragraph 3, and that such
costs and expenses shall be the sole responsibility of Manager. Manager further understands and
agrees that the Golf Course budget will contain only such items of reimbursement as the City
Council in its sole discretion may determine.
0) Keep the Golf Course and all facilities therein in a clean, sanitary, safe and
orderly condition.
(k) Be responsible for scheduling the use of the Golf Course and all activities
thereon, including without limitation, scheduling and reserving tee times for golf play and the
planning, scheduling and overseeing of golf tournaments.
(1) Comply strictly with all applicable federal, state and City laws, rules and
regulations.
(m) Keep the Golf Course including the driving range, open for business at such
hours and times as the Director and Manager shall from time to time determine subject to the
approval of the City Manager.
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(n) 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.
(o) Make no expenditure or commitment of funds not within the approved budget
or in any line item of the approved budget in excess of the amount budgeted therefor. Submit to the
City's Department of Finance at least monthly invoices and verified requests for reimbursement for
costs incurred in the operation of the Golf Course including periodic verified request showing
Manager's payroll, including wages and benefits, for its employees (excluding golf professionals),
during the period covered by such request. The City's Department of Finance will review the
verified requests and invoices and if in compliance with the approved budget and this Agreement
make reimbursement therefor provided that any reimbursement for Manager's payroll will be made
directly to Manager who shall be solely responsible for paying its employees and withholding and
paying all state and federal payroll obligations and taxes. Manager shall hold harmless and
indemnify City from any such payroll obligations and taxes and shall at least monthly account to
the City and submit proof of non - delinquency thereof.
(p) Meet with the Director at least monthly to review the operation and
maintenance of the Golf Course and the Golf Course budget and expenditures. Manager shall be
directly responsible to the Director in all matters concerning the operation, maintenance, promotion
and management of the Golf Course.
(q) Surrender and deliver to City, at the termination of this Agreement, (i) all
remaining operating supplies, fertilizer and materials the purchase of which was reimbursed by City,
and (ii) the Golf Course.
(r) Maintain in force at Manager's sole cost during the effective period of this
Agreement comprehensive general public 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 December 1, 1995 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.
(s) Maintain in safe operating condition and repair golf carts furnished and made
available by City to Manager. Manager shall provide each renter of a golf cart with the rules and
regulations established by City for the operation of golf carts at the Golf Course and shall be
responsible for the enforcement of such rules and regulations.
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(t) Operate and manage the Golf Course as a public facility for the use and
benefit of the public on a fair, equal and nondiscriminatory basis without preferential treatment to
any individual, group or entity including without limitation, adjacent or nearby homeowners or
businesses, any school or school district, or the University of Southern Colorado, or any person or
group associated therewith. Manager shall comply fully with state and federal antidiscrimination
laws, rules and regulations and specifically agrees that no person shall be denied or refused services
or other full or equal use of the Golf Course, nor denied employment opportunities by Manager as
a result of race, creed, color, sex, age, national origin, ancestry or handicap unrelated to ability or
job performance.
4. City, subject to availability of sufficient budgeted and appropriated funds therefor,
shall:
(a) furnish and make available for the Golf Course equipment and machinery
which is necessary in the City's sole judgment for the operation and maintenance of the Golf Course.
(b) reimburse Manager for costs incurred in accordance with approved budgets
and this Agreement for the operation and maintenance of the Golf Course. City shall not be
responsible for the salary or benefits of golf professionals employed by Manager, nor for any
personal or private debts of Manager or any expenditure in excess of or not authorized by the
approved budgets and Manager shall indemnify and hold harmless City therefrom.
(c) repair and maintain the parking lot, maintenance building, and the interior and
exterior of other buildings located on the Golf Course (except the interior of the pro -shop, restaurant
and lounge) including roofs, walls and foundations, and, except for minor and routine repairs, repair
and maintain the heating, plumbing and electrical systems in the pro -shop, restaurant and lounge.
(d) provide City employees to act as cashiers and /or starters who shall be
physically located at the pro shop or such other location as Manager and Director shall mutually
determine and who shall be under the supervision of the Director of Finance of the City and
responsible for the centralized collection of all fees and charges and other monies paid and /or
receipts thereof for the use of or activities upon the Golf Course except pro shop, restaurant and
lounge receipts. All such fees, charges and other monies paid to or collected by Manager and
receipts therefor shall be held by Manager, in trust, and remitted to City weekly.
(e) annually submit to City Council of City a budget for the operation and
maintenance of the Golf Course containing such items of reimbursement as the City Council in its
sole discretion may determine. Neither the 1995 budget for the Golf Course nor any subsequently
adopted budget shall be binding upon the City for any year except for the year adopted. City may
adjust budgets based upon prior actual and anticipated revenues and expenses and to protect the City
from unreasonable or excessive operation and maintenance costs.
5. In consideration of the services to be rendered and performed by Manager hereunder,
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City shall pay to Manager (i) an annual management fee of $45,000.00 commencing December 1,
1995, payable in twelve equal monthly installments, and (ii) an amount equal to ten (10) percent of
the gross revenue collected for driving range charges and motorized cart rentals, provided such
amount shall not annually be greater than ninety -five (95) percent of the annual management fee
payable under (i) above. All payments to Manager hereunder shall be paid monthly in arrears. The
management fee payable to Manager under (i) above shall be increased on November 1, 1996 and
each November 1 thereafter by the percentage increase in the Consumer Price Index (1982 -84 =100,
U.S. City Average, All Items) during the prior 12 -month period.
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 Golf Course or the performance of this
Agreement by 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 Golf
Course or the quality or quantity of service does not meet the requirements of this Agreement, or
if Manager breaches or is in default of any 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 Golf Course or any facility thereon 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 Golf Course. Manager shall not
conduct any activity or sell anything at or on the Golf Course except as specifically authorized in
this Agreement.
9. Manager shall not make any improvements of a permanent nature to the Golf Course
or install any sign on the Golf Course or make any additions, changes, remodeling or alterations to
any building on the Golf Course 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.
In
IL 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. 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 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.
14. This Agreement shall not be assigned in whole or in part, nor shall the Golf Course
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.
15. City reserves the right to enter upon the Golf Course and all facilities thereon at any
time for any reason.
16. 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.
17. 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, I City Hall Place, Pueblo,
Colorado, 81003;
(b) If to the Manager, 363 South Archer, Pueblo West, Colorado, 81007;
or to such other place as City or Manager may from time to time designate in a written notice to the
other party.
18. 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.
-7-
19. 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.
20. The Walkingstick Golf Course Management Agreement dated December 10, 1990
between City and Manager is terminated effective December 1, 1995 and City and Manager are
released from all future obligations thereunder.
Executed the day and year first above written.
CITY OF PUEBLO,
A MUNICIPAL CORPORATION
B
President of the City Council
City C k
ZAREMBA ENTERPRISES, INC.
By
President
Attes't:.
Secretary
GUARANTY
In consideration of the City of Pueblo, a Municipal Corporation approving and executing the
foregoing Management Agreement, the undersigned Michael Zaremba does hereby personally guarantee
the performance of the Management Agreement by Zaremba Enterprises, Inc. In the event of the default
of Zaremba Enterprises, Inc. under any provision of the Management Agreement and written notice
thereof is given to Michael Zaremba, Michael Zaremba will timely cure such default and perform all
the covenants and provisions of the Management Agreement to be performance by Zaremba Enterprises,
Inc. thereunder.
Signed the 13th day of November, 1995.
Michael Zaremba