6.2 SR 02-16-2021Request for Action
To
Item Number
Mayor and City Council
6.2
Agenda Section
Meeting Date
Prepared by
Presentations
February 16, 2021
Michael Hecker, Parks and Recreation Director
Item Description
Reviewed by
Pinewood Golf Course Update
Cal Portner, City Administrator
Reviewed by
Action Requested
Presentation and Discussion.
Background/Discussion
City Council approved the Pinewood Management Agreement on March 18, 2019, for the Elk River Country
Club (ERCC) to operate the Pinewood Golf Course 2019 to December 31, 2021. This is a second agreement
after a two-year agreement expired in 2018.
Chris Singer from the Elk River Golf Club will make a presentation to City Council on their second years of
operations under the current three-year agreement. According to the terms of the contract, it may be extended
for one year through 2022, by giving notice in writing to the city by delivering a request to the City Clerk by
September 1, 2021.
Financial Impact
N/A
Attachments
■ Pinewood Management Agreement
The Elk River Vision
A welcoming community with revolutionary and spa* ed resourcefulness, exceptional service, and ,` O e
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community engagement that encourages and inspires prosperzty INAWRE1
Agreement 2019-08
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.EEMEN,r effiective January 1, 2019 by and betweeri the City of Elk River, ainnesotacipal corporation, at 13065 Orono Parkway, Elk !Ziver, Minnesota 55330 (hereinafter
"City") and Elk River Cowntry Club, Inc. an Minnesota corporation, d/b/a Elk River Golf Chit at
20015 Elk Lake Ill .oad, Elk River,.Miranesota 55330 (hereign af1er "Operator").
WHEREAS, the City has owined and operated Pinewood Giolf Course at 18150 Waco Street
NW, Elk River, Minnesota 55330 ("Golf Course"' or "Pinewood"). Pinewood is as 9-hole executive
c(mrse with a 1,700 square Hoot clubhouse and as pole barn maintenance building; anap
WHEREAS, the City has detennffied that the contirmed operation of the golf course would
serve a public purpose and provide as benefitfree the residents of the City; and
WHEREAS, the Operator is ern to manage the Golf Course; and.
WHEREAS, the Operator will retainall revenues frorn the Golf Coun-,Se and pay, all expenses
relating to the operation of the Golf Course.
NOW, THIEREF ORECit , tfae y and the Operator, f-br the consideration of $1 per year payable
April .1 eadl-1 year SERE
o hereby mutually agree as follows,
Mana em - Ille City �p
ent , points the Operator as the manager of the Pinewood ntrCouTse (hereinafter "Go]Rlourse"' in accordance with the terins of I s Agrment. This appoylent
is for the purpose of oprating, n anaging and maintaining the Golf Course. The Golf Course shal I be
deic,med to include the equiprnent listed an Exhibit A, which shall be maintaffied by the Operatorin, as
good working condition as of the cormnencement date of this agreement, reasonable wear and tear
excepted. The equipment rnay only be used by the Operator am us on the Pinewood Golf Course.
Z, Standards of 01 2p. 0 t s
era represents and wan -ants to 0t hat ihall mait nain
y t
an efficient andbighi quality operation at the golf course compardble to other similar golf courses,
3. Term- This agreement shall he for a pexiod commencing on the date first set forth above
and ending on the 3.1 "' day of Decembei� 202 1. provided however iv� addition to the termination.
provisions in paragraph 26, that the City may terminate this Agreement at will, it
cause, by
delivery (by mail or by perscmal service) to Operator (at its address stated hereinabove) of a notice of
the City's intention to tenninate this agreement, one hundred and tiventy (1210) days after the delivery
of the notice. At the expiration. of the one huindred and twenty (120) day period (a) this Agremerwt
shal I terminate (b) the Openaor shall, at its own cost arid expense, irarnediately reinove all oohs
personal property frorn the Golf Course, and quit -and Surrender possession thereofto the City, ingood
order and condition, subJect to I he tenns and conditions herein. n, is agreement allows the City to
tern.-finate the license at will. The Operator may request to, extend this Agreernent for an additional one
(Y) year period, cornmencing on January 1, 20 22 and ending on the 3 1 " day of Dec ember, 2022, by
giving notice in writing to the City by delivering to the City Clerk by Septem"ber, 1', 202 1. of its request.
The financial ten-ns of such renewal sNill be negotiated between the City and the Operator, Such
$500,000 — Bodily Injury by Disease per employee
$500,000 — Bodily Injury by Disease aggregate
$500,000 - Bodily Injury by Accident
d) The Operator shall maintain a blanket faithful performance bond of $250,000 that covers thefts
by the Operator and the Operator's employees.
The Operator shall furnish a copy of the above -described insurance policies (or a certificate showing
the issuance thereof) to the City and shall also name the City as the additional insured in
the Commercial General Liability and Commercial Automobile Liability policies on a primary and
non-contributory basis.
The Operator's policies and Certificate of Insurance shall contain a provision that coverage afforded
under the policies shall not be cancelled without at least thirty (30) days' advanced written notice to
the City, or ten (10) days' written notice for non-payment of premium.
An Umbrella or Excess Liability insurance policy may be used to supplement the Operator's policy
limits on a follow -form basis to satisfy the full policy limits required by this agreement.
If the Operator obtains a license to sell beer, wine or intoxicating liquor on the golf course premises,
the Operator, at its expense, shall be required to maintain liquor liability insurance in the minimum
amount of $1,000,000 for bodily injury, destruction of property of others, loss of means of support, and
other pecuniary loss in any one occurrence. The City shall be endorsed as an additional insured.
7. Damage/Injury. The Operator agrees to reimburse the City for any and all damages or
injury to any real property or personal property of the City that may arise, directly or indirectly, from
the intentional or negligence, acts or omissions of the Operator, its agents or employees. Any accident
involving significant property damage or bodily harm occurring at the Golf Course property shall be
reported to the Park and Recreation Director as soon as possible and not later than twenty-four (24)
hours from the time of such accident. A detailed, written report shall be submitted to the Park and
Recreation Director as soon as possible and not later than three (3) business days after the date of such
accident.
8, Independent wContractor. The City hereby retains Operator as an independent contractor
upon the terms and conditions set forth in this Agreement. Operator is not an employee of the City and
is free to contract with other entities as provided herein. Operator shall be responsible for selecting the
means and methods of performing the work. Operator shall furnish any and all supplies, equipment
(except as indicated on Exhibit A), and incidentals necessary for Operator's performance under this
Agreement. Operator agrees that' Operator shall not at any time or in any manner represent that
Operator or any of Operator's agents or employees are in any manner agents or employees of the City.
Operator shall be exclusively responsible under this Agreement for Operator's and Operator's
employees FICA payments, workers compensation payments, unemployment compensation payments,
withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are
required to be paid by law or regulation.
a. Star News for league formation and membership.
b. Manage the current Pinewood Golf Course Facebook page but may not delete any old
posts, photos or videos.
17. Utilities and 0 tin Expenses. The Operator shall at its own expense be responsible
for the following payments and obligations:
a. All utilities, including gas, electric, water, cable, television, internet and telephone
service (internet/telephone provided and payable to the City).
b. Burglar alarm and monitoring system.
C. Irrigation and pump maintenance and the payment of contract fees for same, including
winterization and annual fall blow out.
18. Fees. The Operator, in its sole discretion, may set the fees for use of the Golf Course.
The Operator, in its sole discretion, shall set the fees for tournament play.
19. Log. The Operator shall create and maintain a general maintenance log of all equipment
listed in Exhibit A, attached hereto and made a part hereof. The City may request a copy of this log.
20. Repairs„and Replacement. The Operator shall be financially responsible for all
equipment maintenance and repairs. If the Operator decides to use the City for any repairs or
maintenance, they will be charged and invoiced for such services. This is for City equipment listed in
Exhibit A and for any future purchases or replacement Capital improvements and equipment
replacement will be agreed upon by the City and the Operator and shall be the responsibility of the
City. The Operator shall, however, be responsible for any repairs or replacements due to any
negligence or willful misconduct.
21. Controlling Law/Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall
be in the District Court of the State of Minnesota for Sherburne County Minnesota.
22. M_ _ sotaw Government Data_Practces Act. Operator must comply with the Minnesota
innew
Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by
the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used,
maintained, or disseminated by Operator pursuant to this Agreement. Operator is subject to all the
provisions of the Minnesota Government Data Practices Act, including but not limited to the civil
remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Operator
receives a request to release data, Operator must immediately notify City. City will give Operator
instructions concerning the release of the data to the requesting party before the data is released.
Operator agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and
volunteers harmless from any claims resulting from Operator's officers', agents', city's, partners',
employees% volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected
data. The terns of this paragraph shall survive the cancellation or termination of this Agreement.
5
)ss.
COUNTY OF SHERBURNE
The foregoing
strumept was acknowledged before me this day
2019 by n ej k;ill :tjj R—IV � t f- I-CILl ... ....... .......
the. of Elk River Country Club, Inc.,
Minnesota corporation., on behalf of the corporatjo' ary L
;! e
Maintenance Standards
Maintenance
o Maintenance Equipment
o Operator may use the current equipment allocated at Pinewood by the City to up keep
the course to the standard listed below. Any additional equipment that is needed in the
joint determination of the City and Operator shall be provided by City
Greens
o Mowed daily to keep constant speed and conditions.
o Topdressing and fertilizing will be scheduled by Jon Varty, depending upon the turf
condition starting the year coming out of the winter.
o Topdressing
o Aerification will take place in the late fall and be top dressed in the spring —Fairways, Rough,
Edging, and Tees
o Mowed 3 to 4 times a week.
o Fertilizing will be scheduled based on weather and turf conditions.
o Use of IPM (ingrate pest management). Pesticide and fertilizer may only be used by a
certified pesticide licensed company when needed, not a static plan.
o Weed control of all the grounds.
o Irrigation will be maintained with same parts as presently used, and blown out each fall during
late October.
u Equipment repairs and- maintenance will be performed by Operator.
The parties understand that there may be additional capital improvements required to make the
facility fit for public use. Any capital improvements required will be paid by the City.
Operator can assist in bidding it out to snake sure to keep cost down.
Clubhouse
e Clubhouse must be maintained in proper condition in accordance with the state health and
safety guidelines.
o Each day the closing worker will have a checklist to complete and make sure that the clubhouse
area is set for the next day.
o Wipe down all tables.
o Empty all garbage receptacles.
o Turn off coffee wanner and coffee machine.
o Clean coffee machine and coffee pots.
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