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HomeMy WebLinkAboutResolution - 2024-R0274 - Mgmt Agrmt, Orion Management Solutions, Meadowbrook Golf Course - 05/28/2024Resolution No. 2024-R0274 Item No. 7.20 May 28, 2024 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, Contract No. 17851 for the Management of Meadowbrook Golf Course, as per RFP 24-17851-TF, by and between the City of Lubbock and Orion Golf LB, Inc., of Carrollton, Texas, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on ATTEST: Co ney Paz, City Secretary APPROVCD AS TO CONTENT: �,�� Brooke Witcher, Assistant City Manager APPROVED AS TO FORM: Rachael roster, A, , istant City Attorney ccdocsi[IRES.ServiceContract 1785I Orion Golf LB, Inc. 5.22.24 May 28, 2024 , Resolution No. 2024-R0274 GOLF COURSE MANAGEMENT AGREEMENT This GOLF COURSE MANAGEMEMENT AGREEMENT (the "Agreement") is made and entered into as of this 1 S' day of October 2024 by and between the City of Lubbock (the "City"), a Texas home rule municipal corporation, and Orion Golf LB, Inc., ("Orion"), a Texas corporation. For purposes of this Agreement, City and Orion are collectively referred to as the "Parties" and each individually as a «P�.t},,, RECITALS WHEREAS, the City issued Request for Proposals # 24-17851-TF (the "RFP") in order to select a qualified professional golf course manager/operator for Meadowbrook Golf Course; and WI iEREAS, the City desires to enter into an agreement to provide for the management and operation of Meadowbrook Golf Course, which includes but is not limited to, the golf course, clubhouse, pro shop, maintenance building, driving range and appurtenances (collectively referred to as the "Facility"); and Wf-�EREAS, the City desires to utilize the services and experience of Orion, a professional golf course management company with experience and expertise related to golf course management, and Orion desires to render such services, upon the terms and conditions set forth in this Agreement; and NOW, T� �EREFORE, in consideration of the mutual promises and covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: AGREEMENT 1. TERM OF AGREEMENT. The term of this Agreement shall begin on the 1 S` day of October 2024 (the "Start Date"), and shall end at 11:59 p.m. on December 31, 2029, subject to the termination provisions stated herein. This Agreement may be renewed for up to two (2) additional five (5) year terms, under the same terms and conditions set forth herein upon written agreement from both parties. 2. SERVICES TO BE PERFORMED BY ORION. During the term of this Agreement, Orion shall operate the Facility, which shall include, but not be limited to, the collection and disbursement of all monies, the employment and management of all employees, the promotion and management of the golf course, the purchase and sale of food, beverages, merchandise, supplies and services, the purchase and maintenance of insurance coverage for its operations and equipment, the handling of disputes with third parties, the collection and payment of all appropriate taxes, the securing of all appropriate licenses, permits and approvals and the performance of all other day-to-day activities relative to the Facility. In addition to other obligations and responsibilities set forth in this Agreement, Orion shall provide and/or perform the following services: a. Golf Management Services. Orion shall provide a professionally operated Facility in a manner that is consistent with other comparable public golf facilities and the performance and service goals of the City. b. Major Decisions. Orion shall submit to City or City's representative(s) for approval, proposals for major activities, improvements or events, including, but not limited to, capital improvements and expenditures and the Proposed Annual Budgets (as defined in subparagraph 2_d. below). Orion shall secure City's prior approval of all such major proposals. Orion shall operate the Facility to the best of its ability in accordance with the major policy decisions approved by City. The parties agree that the Facility shall be operated as a Public Golf Course. c. Operational Guidelines. Orion shall develop a set of written guidelines ("Operational Guidelines") for the Facility. The Operational Guidelines shall include information necessary for the operation of the Facility, including, but not limited to, operation and maintenance of the golf course, the maintenance facility, the clubhouse, the pro shop and other operations of the Facility, the hours of operation and other policies relating to the operation of the Facility. Upon development of the Operational Guidelines, same shall be submitted to City for approval and shall become effective only upon approval by City, which approval shall not be unreasonably withheld or delayed so long as the Operational Guidelines are not in conflict with any City ordinances, State or Federal laws, city policies, or other terms or conditions of this Agreement. d. Annual Bud�ts. Not later than April 1 of each year during the term of this Agreement, Orion shall submit a proposed operating budget (the "Proposed Annual Budget") to City for the upcoming fiscal year beginning October l. The Proposed Annual Budget shall specify the amount of working capital required to continue operations of the Facility for the upcoming fiscal year considering all major policy decisions, specify all anticipated expenses required to maintain a reasonable level of equipment, supplies and inventory and all projected expenses for long-term capital improvements and equipment. City shall approve or reject the Proposed Annual Budget by October 1, annually. City shall specify, in writing, the basis for any rejected item in the Proposed Annual Budget. The Proposed Annual Budget, once approved by City, shall be referred to as the "Annual Budget". In the event that the City and Orion are unable to reach an agreement regarding the Annual Budget, either party may notify the other of their intent to terminate and this Agreement shall terminate on the last day of the term for which there was a budget approved by City. e. Promotion of Golf Activities. Orion shall follow all City marketing and social media policies and guidelines. Orion shall coordinate the creation or modification of graphics, logos and other visual materials for letterheads, envelopes, temporary and permanent signs, brochures, information profiles, progress reports, press releases, social media, email, and bulletins. Orion will use reasonable efforts (as limited by Annual Budgets) to assure that the Facility will be favorably presented in print and communications media. All materials or items developed pursuant to this paragraph shall be the exclusive property of City and may require approval by the agent designated by City prior to dissemination. f. Facility Personnel. Orion shall hire qualified Facility staff, including all on-site management personnel, golf professional staff, assistant golf professional staff, golf course superintendents, food and beverage staff, house and grounds maintenance personnel, janitorial staff, and others deemed by Orion to be appropriate for the efficient operation of the Facility and to the extent authorized by the Annual Budget for the Facility as approved by City. All matters pertaining to the employment, supervision, promotion and discharge of Facility personnel shall be the sole responsibility of Orion. Such employees are employed by Orion and in no way shall be considered to be employees of the City and shall not be eligible for any benefits or pay from the City. Orion shall be responsible for all of Facility's employee costs (including Orion's employer contribution 2 to FICA, unemployment compensation, and other employment taxes as may be applicable), and all employee training-related expenses. g. Food, Beverage and Merchandise. To the extent permitted by law, City shall permit the sale of food, beer, wine and liquor at the Facility. Orion shall apply for, obtain, and maintain all licenses required for the sale of food and alcoholic beverages to include beer and wine, and all other required permits and approvals. Orion shall comply with all laws relating to the sale of alcoholic beverages. In addition, Orion shall purchase and sell such other food, beverage and merchandise at the Facility for such prices as Orion deems prudent. 3. NET CASH FLOW. By the 15th day of each calendar month during the term of this Agreement, Orion shall report to City one hundred percent (100%) of the Net Cash Flow from the Facility, determined in accordance with the provisions of this paragraph, for the period ending on the last day of the preceding calendar month. For example, on April 15 of each year, Orion shall report to City the net cash flow for the month of March. "Net Cash Flow" shall equal the difference of: (1) Revenues minus (2) the sum o£ (i) Expenses, minus (ii) Approved Capital Expenditures, plus (iii) Approved Reserves on deposit, all as defined below. a. Revenues. "Revenues" shall mean all cash receipts from operation of the Facility, including, but not limited to, green fees, cart rentals, range fees, tournament fees, facility rentals, membership dues, and proceeds from the sale of food, beverage and merchandise. Revenues shall not include fees collected for golf lessons if the fees are paid directly to the professional providing such lessons. City also has the right to conduct lessons, schools and other activities at the Facility and any fees paid by City to Orion to conduct such lessons, schools, or other activities under an agreement with Orion shall be included as "Revenues". b. Expenses. "Expenses" shall mean all necessary, reasonable and ordinary cash expenditures authorized by the Annual Budget established by City and Orion and incurred in connection with the Facility, including, but not limited to: i. Payroll, payroll taxes, employee benefits (including, without limitation, insurance, health and welfare benefits) and unemployment insurance and taxes, and sales, rental and other taxes and governmental fees and charges assessed against the Facility or its operation; ii. Payments for food, beverage, merchandise and supplies; iii. Insurance costs for the insurance coverage specified in paragraph 13 hereof and approved in the Annual Budget for the Facility; iv. Payments for advertising and promotion of the Facility; v. Acquisition costs, lease payments and debt service payments for the Facility, equipment, furniture, fixtures and other capital items as included in the Annual Budget; vi. License fees, dues and subscriptions; vii. Expenses of hiring and training Facility personnel; viii. Costs of maintaining and improving the golf course, pro shop and other Facility assets; ix. Fees of outside consultants and third-party contractors retained by Orion in connection with the operation of the Facility, such as accountants, attorneys, tax advisers, and marketing public relations consultants, if approved in advance by City or City's representative; x. All Management Fees (as defined in paragraph 7, below) paid to Orion in accordance with this Agreement, including the Fixed Management Fee; xi. Expenses associated with an annual audit of the Facility by an auditor designated by the City; and xii. Expenses not specifically authorized by the Annual Budget that are approved in writing in advance by the City or the City's representative. c. Approved Capital Expenditures. "Approved Capital Expenditures" shall mean all cash payments for equipment, furniture, fixtures, Facility improvements or other capital items approved by City, which approval may be included in an Annual Budget or other separate form of approval. d. Approved Reserves. "Approved Reserves" shall mean the amount of cash approved by City to be held by Orion for future operation of the Facility. 4. PAYMENTS FROM CITY. If at any time the Net Cash Flow from the operation of the Facility is not sufficient to meet the Approved Capital Expenditures or Expenses authorized by the Annual Budget as they become due, City shall pay, unless such payment is prohibited by law, to Orion the amount of cash necessary to meet such obligations (such amount being referred to as "PaymenY'). 5. ACCOLJNTS. All Revenues, Payments, and Approved Reserves shall be held by Orion for City, in an account designated as such and suffcient to protect City's interest in such funds, subject to such funds being disbursed for Expenses and Approved Capital Expenditures. Orion shall maintain one or more separate accounts so designated (collectively referred to as "Facility Accounts"), which shall, whenever possible, include interest bearing accounts, at one or more commercial banks in Texas, each approved in advance by City, for the receipt of Revenues, Payments, and Approved Reserves and for the payment of Approved Capital Expenditures, Expenses, and Approved Reserves. Orion agrees that City shall have two designated signatories on such accounts (who will provide Orion reasonable notice of and account for any transactions conducted by them with respect to the accounts) and that City may have access to such accounts via the internet or other methods so that City may, without notice, review transaction activity on the accounts. Orion shall account to City and pay all payments due to City from Facility Accounts in accordance with this Agreement. Orion shall not commingle Revenues, Payments, and Approved Reserves with other money or accounts, and shall not take any money or property from the Facility Accounts or from the Facility, except to make payments for Approved Capital Expenditures and Expenses as set forth in this Agreement. Orion shall not purchase goods or services from an entity affiliated with Orion unless such purchase is on terms reasonably competitive with terms available from non-affiliated sources and City has approved such purchase in writing. Orion shall comply with requirements, if any, which may become applicable to it regarding purchase of equipment, materials and services. 6. EMPLOYEES. All employees of the Facility shall be employees of Orion. 4 7. MANAGEMENT FEES. In exchange for services rendered by Orion under this Agreement, Orion shall be (1) reimbursed from Facility Accounts for all direct and indirect out-of-pocket expenses authorized by this Agreement in connection with the operation of the Facility, (2) paid from Facility Accounts a Fixed Management Fee as described in subparagraph 7_a. hereinafter, and (3) subject to the terms and conditions of subparagraph 7_b. below, paid from Facility Accounts a Contingent Management Fee. If on any date when any of the foregoing amounts are owed to Orion, the Facility Accounts contain insufficient funds to pay Orion the amounts owing, City, unless prohibited by law, shall make a disbursement to Orion to cover the shortfall. a. Fixed Mana�ement Fee. A"Fixed Management Fee" shall be paid to Orion for each month this Agreement is in effect in the applicable amount described in subparagraph 7_c. (Schedule of Fixed and Contingent Management Fees). For any partial month, the Fixed Management Fee shall be prorated. The Fixed Management Fee shall be due and payable on the first day of each month. b. Incentive Mana�ement Fee. An "Incentive Management Fee" shall accrue and be payable to Orion at the end of the first (1 St) month following a fiscal year in which Gross Revenues equal or exceed Projected Revenue set forth in subparagraph 7_c. (Schedule of Fixed and Incentive Management Fees), provided, however, that no such Fee shall be due and owing unless and until the City has received the audited financial statements referenced in paragraph 8 hereof and as hereinafter provided. Within thirty (30) days of receipt of the unaudited annual financial statements for the Facility that are in form and substance satisfactory to the City, City will make a provisional payment of the Incentive Management Fee equal to seventy-five percent (75%) of the Incentive Management Fee as calculated based upon the unaudited financial statements. Upon receipt of the audited financial statements for the Facility, the Incentive Management Fee will be recalculated based upon the audited financial statements, and the balance paid or refunded as the case may be. If the City does not exercise its option to conduct an audit of the Facility annual iinancial statements, the balance of the Incentive Management Fee shall be paid on or before March 1 of the following year. The amount of the Incentive Management Fee shall be determined by multiplying the Incentive Management Fee Percent set forth in subparagraph 7_c. by the amount by which Gross Revenues for such year exceed the Projected Revenue for the applicable year as set forth in subparagraph 7_c. For purposes of determining the Incentive Management Fee, "Gross Revenues" shall mean the sum of all Revenues generated by the operation of the Facility as specifically defined by Section 3_a. of this Agreement. Gross Revenue for purposes of this paragraph shall not include interest, proceeds from the sale of major assets, insurance proceeds, developer subsidies, payments, and draws on letters of credit or other income not attributable to the operation of the Facility. City will not decide to make capital improvements, establish reserves or increase debt service or otherwise spend money for the sole purpose of avoiding payment of the Incentive Management Fee. c. Schedule of Fixed and Incentive Mana�ement Fees. Fixed Management Fee Year Montht Fee Year Monthl Fee Year Monthl Fee 2024 $10,000 2030 $11,000 2035 $12,000 2025 $10,000 2031 $11,000 2036 $12,000 2026 $10,000 2032 $11,000 2037 $12,000 2027 $10,000 2033 $11,000 2038 $12,000 2028 $10,000 2034 $11,000 2039 $12,000 2029 $10,000 Incentive Management Fees Orion will be eligible for a revenue-based incentive bonus calculated as a percentage of the dollar amount that actual revenues exceed projected annual revenue for the Facility. The projected revenue amount will be determined through mutual agreement between the City and Orion via an Approved Annual Budget each year this Agreement is in effect. The incentive has three (3) tiers: Tier 1(100-110% of Projected Revenue) • If actual revenues are 100-110% of the projected revenue, the management company will receive a 7% bonus on the amount exceeding the target. Tier 2(110-120% of Projected Revenue) • If actual revenues are 110-120% of the projected revenue, the management company will receive a 10% bonus on the amount exceeding the target. Tier 3(Above 120% of Projected Revenue) • If actual revenues exceed 120%, the management company will receive a 13% bonus on the amount exceeding the target. Maximum Bonus Cap: • The total incentive bonus paid to the management company shall not exceed $80,000 in any given year. EXAMPLE With a projected revenue of $2,500,000: Tier 1(100-110%): 7% bonus on revenue from $2,500,000 to $2,750,000 • If actual revenue was $2,600,000, the bonus would be: 7% x ($2,600,000 - $2,500,000) _ $7,000 Tier 2(110-120%): 10% bonus on revenue from $2,750,001 to $3,000,000 • If actual revenue was $2,900,000, the bonus would be: 10% x ($2,900,000 - $2,500,000) _ $40,000 Tier 3(Above 120%): 13% bonus on all revenue exceeding $3,000,000 • If actual revenue was $3,200,000, the bonus would be: 13% x($3,200,000 -$2,500,000) _$91,000 but capped at $80, 000 maximum. This incentive structure rewards increasing revenue growth with higher percentage bonuses, while implementing an $80,000 maximum cap on the total bonus amount. 8. ACCOiJNTING. Orion shall maintain books and records relating to the business activities of the Facility separate from its other books and records. Orion shall prepare an opening balance sheet listing assets and liabilities used or incurred in the operation of the Facility. Thereafter, Orion shall have monthly financial statements prepared, which shall include unaudited balance sheets, and income statements (each month's records shall be referred to separately as the "Monthly Financial Statements") prepared as if the operation of the Facility is a business entity separate from Orion and City. Orion shall deliver a copy of each month's Monthly Financial Statements by the fifteenth (15�h) day of the following month except where circumstances beyond the reasonable control of Orion delay delivery of such statements. City agrees that if the deadline set forth in the preceding sentence is impractical or impossible for Orion to meet, City shall modify such requirements. In addition, Orion shall deliver to City, not later than November 1 of each year during the term of this Agreement, a copy of year-end financial statements for the Facility for the preceding fiscal year prepared in accordance with Generally Accepted Accounting Principles. At any time during the term of this Agreement and for three (3) years thereafter, City shall be entitled to inspect and make copies of the books and records of the Facility maintained by Orion, and City may conduct a separate audit of the Facility and/or include the Facility within the audit of City conducted by City's independent auditors, all Monthly Financial Statements and all annual fnancial statements. As a Facility Expense, Orion shall comply with City's audit recommendations. Additionally, at the request of the City, Orion will provide any and all supporting documentation that substantiates the monthly/annual Financial Statements. 9. TERMINATION. 1. Termination by Citv. In addition to any other rights of City to terminate this Agreement that are set forth herein, City shall have the option of terminating this Agreement upon the occurrence of an event of Default, as defined in subparagraph 9.l .a. below. a. Events of Default. Any one or more of the following events shall, unless cured in accordance with paragraph 9.1.b. below, constitute a default of this Agreement ("Default"): i. Any breach by Orion of the obligations under the terms of paragraph 5 of this Agreement; ii. A discontinuance by Orion of its business or abandonment of its activities at the Facility; iii. A material breach by Orion of any material term or provision of this Agreement; iv. The filing of a voluntary or involuntary action by Orion or its creditors seeking to declare it as bankrupt; or v. Failure to keep, observe, or perform any other material covenant, agreement, term, or provision of this Agreement. b. Cure. Orion shall have thirty (30) days after receipt of written notice from City specifying the nature of its Default under paragraph 9.l .a. above within which to cure such Default. c. Exercise of Termination Option. In the event of a Default by Orion, City's right to terminate this Agreement pursuant to this section shall be exercisable immediately upon written notice to Orion given at any time after the applicable notice and cure period described in subparagraph 9.1.b. has expired, provided that Orion has not timely cured the Default. Should the Termination Option pursuant to this section be exercised, City shall pay to Orion the monthly Management Fee due (prorated, if applicable) through the date of termination and reimburse Orion for all expenses authorized under the terms of this Agreement incurred through the date of termination. In the event that the Agreement is terminated pursuant to this section, any Incentive Management Fee under 7_c. for the year in which the termination occurs is considered by both parties to be forfeited. For purposes of this paragraph, the date of termination is the date specified by City in its notice to Orion. 2. Termination bv Orion. Orion shall have the right to terminate this Agreement if City fails to keep, observe, or perform any material covenant, agreement, term, or provision of this Agreement to be kept, observed, or performed by City, and such default continues for a period of thirty (30) days after written notice and a demand to cure such default by Orion to City, which termination shall occur at the end of the notice and cure period. In the event that City disputes in good faith that it is in default, Orion agrees that it will not discontinue performing services under this Agreement, until the parties have resolved the dispute. 10. TERMINATION FOR CONVENIENCE. Either party shall have the right to terminate this Agreement for convenience, upon at least 180 days prior written notice to the other party. 11. TRANSFER. Upon termination or expiration of this Agreement, Orion shall immediately transfer and assign to City any and all interest of Orion in the Facility, including the assets set forth in subparagraph l l.a. below and City shall assume existing approved expenses relating to the Facility as authorized by the Annual Budget. a. Assets to be Transferred. Assets to be transferred and assigned to City shall include, but not be limited to, all of Orion's right, title and interest in and to any of the following arising out of activities of the Facility or purchased by Orion from Payments from City or Revenues of the Facility: i. Cash in all Facility Accounts; ii. Accounts receivable; iii. Other receivables; iv. Inventories of inerchandise, food, beverages and supplies; v. All equipment, furniture and fixtures; vi. Prepaid accounts and deposits; vii. Contract rights; viii. Trade names; ix. Books and records relating to the Facility; x. Goodwill; and xi. Operational guidelines and procedures. b. Upon the termination or the expiration of the Agreement, all employees and agents of Orion shall vacate the premises of the Facility and shall have no further rights or duties except to ensure and organize a proper transfer of the premises, keys, equipment, property, records, inventories, and funds of the Facility back to the City. 12. NO INDEMNIFICATION BY CITY. The parties agree that Orion is not an agent or employee of City, and all activities of Orion relating to the Facility shall be in Orion's capacity as an independent contractor. a. Obligations of Orion. Orion shall pay all obligations and defend all disputed claims arising out of or resulting from Orion's activities conducted in connection with or incidental to this Agreement. Orion shall keep City advised of any such matters. b. Notice of Claims. Orion shall provide City with prompt written notice of any claim arising out of or resulting from Orion's activities conducted in connection with the Facility. 13. INSURANCE. As an Expense of the Facility, Orion shall obtain insurance of the types and in the amounts set forth below from an underwriter(s) licensed to do business in the State of Texas. Orion shall furnish to City certificates of insurance and copies of policies to include all endorsements, evidencing the required insurance, on or before October 1 S', 2024, and thereafter shall furnish new certificates upon request. a. Tvpe and Amount of Insurance. The type and amount of insurance Orion shall obtain for the Facility shall be: i. Commercial General Liability Requirements: $1,000,000 per occurrence, $2,000,000 aggregate (can be combined with an Excess Liability to meet requirement). Commercial General Liability to include Products and Completed Operations, Personal and Advertising Injury, Contractual Liability, Damage to Rented Premises, and Medical Expenses of no less than $5,000 (any one person). ii. Liquor Liability Requirements: $1,000,000 per occurrence, $2,000,000 aggregate. iii. Automobile Liability Requirements: with $1,000,000 Combined Single Limit per occurrence covering owned, non-owned and hired autos. iv. Workers Compensation and Employer Liability Requirements: Employer Liability ($1,000,000) is required with Workers Compensation. The Limits for the Employer's Liability shall be not less than: ■ Bodily Injury by Accident ■ Bodily Injury by Disease ■ Bodily Injury by Disease $1,000,000 Each Accident $1,000,000 Policy Limit $1,000,000 Each Employee v. Pollution Liability Requirements: $1,000,000 per occurrence, $1,000,000 aggregate. An endorsement coverage herbicide and pesticide application will suffice. vi. Crime Protection Coverage Requirements: Employee Dishonesty or Fidelity Bond coverage REQUIRED in an amount equal to the maximum exposure. vii. Garagekeepers Legal Liability Requirements: No less than $500,000 per location. viii. Additional Insurance Requirements: ■ The City of Lubbock (including its officials, employees and volunteers) shall be afforded additional insured status on a primary and non-contributory basis on all liability policies except professional liabilities and workers' comp. ■ Waivers of Subrogation are required for CGL, AL, and WC. ■ To Include Products of Completed Operations endorsement. ■ Carrier will provide a 30-day written notice of cancellation; 10-day written notice for non-payment. ■ Carriers must meet an A.M. Best rating of A- or better. ■ Subcontractors must carry no less than the same limits as listed above. 14. COVENANT OF COOPERATION. Orion shall provide City with prompt written notice of any material injuries suffered at the Facility, significant complaints in reference to service or conditions, whether written or otherwise, about the Facility or its management, and actual or anticipated disputes with or claims by third parties, including, but not limited to, adjacent landowners. Orion further covenants to cooperate with City in resolving any such complaints, disputes or claims and City covenants to cooperate with Orion in resolving any such complaints, disputes or claims. 15. CITY'S REPRESENTATIONS AND WARRANTIES. The City makes the following representations and warranties to Orion: a. Each of the Recitals set forth in this Agreement is true and correct. b. City has the power, authority, and all legal rights to enter into and perform this Agreement. 16. ORION'S REPRESENTATION AND WARRANTIES. Orion makes the following representations and warranties to the City: a. Each of the Recitals set forth in this Agreement is true and correct. b. Orion is a duly organized and validly existing corporation in good standing under the laws of the State of Texas and the United States of America. c. Orion has the Full power and authority and all legal rights to enter into and perform this Agreement and any other agreement referred to herein or contemplated by this Agreement. This Agreement, when duly executed and delivered by the parties hereto, shall create a valid and binding obligation on the part of Orion, enforceable against Orion in accordance with its terms. d. Orion has sufficient knowledge, training, expertise, skill, and resources as to enable it to operate the Facility in a reasonable and prudent business manner. e. During the term of this Agreement, Orion will use all reasonable care to prevent the introduction of any hazardous substances into the Facility, whether contained in barrels, tanks, equipment (movable or fixed) or other containers deposited or located in land, water, sumps or any other part of the Facility or incorporated into any structure on the Facility. Orion will hold City harmless from and indemnify City for any damages and expenses which City may incur as a result of Orion's failure to comply with this warranty. City acknowledges that some substances necessary l0 for performance of this Agreement may be deemed "hazardous." City agrees that this paragraph shall not apply to such necessary substances, provided that Orion uses all care necessary in the handling and use of such substances. 17. RCLATIONSHIP OF THE PARTIES. Orion's relationship with the City shall be and at all times remain that of an independent contractor. Neither City nor Orion shall be construed or held to be a partner, limited partner, associate or agent of the other, or be joint venturers with one another. Neither City nor Orion shall be authorized by the other to contract any debt, liability or obligation for or on behalf of the other. 18. GOVERNANCE. The parties agree to attempt informal dispute resolution before proceeding with further action. Specifically, should either party believe that a dispute exists, that party shall meet and confer with a designated representative of the other party. However, the City reserves the right to exercise any right or remedy available to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms or relief in a court of competent jurisdiction. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in or related to this document, this provision shall control. 19. NOTICES. Except as otherwise specifically provided herein, any and all notices required or permitted under this Agreement shall be in writing and shall be deemed delivered upon personal delivery or upon mailing thereof when properly addressed and deposited in the United States Mail, first-class postage prepaid, registered or certified mail, return receipt requested, or when properly addressed upon deposit with Federal Express, Express Mail or other overnight courier service. Notices shall be properly addressed if addressed to the parties as follows: If to Ci : City of Lubbock Parks and Recreation Department Attn: Department Director 1314 Avenue K Lubbock, Texas 79401 If to Orion: Matt Roberts, Partner Orion Golf LB, Inc. 1650 W. Frankford Rd. Carrollton, TX 75007 The addresses for notices may change by written notice given to the other party as provided above. 20. FURTHER ACTS. Each party to this Agreement agrees to execute and deliver all documents and instruments and to perform all further acts and to take any and all further steps that may be reasonably necessary to carry out the provisions of this Agreement and the transactions contemplated herein. 21. SECTION HEADINGS. The section headings in this Agreement are for convenience of reference only and shall in no way define, limit, extend or interpret the scope of this Agreement or of any particular section contained herein. 22. INTERPRETATION. Unless the context requires otherwise, words used in the singular number shall include the plural and vice-versa; words used in the masculine shall include the feminine and vice-versa. 23. AMENDMENTS AND WAIVERS. This Agreement shall be modified only by written instrument 11 executed by the parties hereto. Any waiver of any provision of this Agreement shall be made in writing executed by the party who could demand fulfillment of such waived provision. 24. ASSIGNMENT. This Agreement shall not be assigned by Orion without the express written consent of City. 25. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 26. GOVERNING LAW AND VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. The parties hereto irrevocably consent to the sole and exclusive jurisdiction and venue of the courts of competent jurisdiction of the State of Texas, County of Lubbock, for the purposes of all legal proceedings arising out of or relating to this Agreement or the actions that are contemplated hereby. 27. COUNTERPARTS. This Agreement and all amendments and supplements to it may be executed in counterparts and all such counterparts shall constitute one agreement binding on both of the parties. 28. SEVERABILITY. Should one or more of the provisions of this Agreement be determined to be illegal or unenforceable, the other provisions nonetheless shall remain in full force and effect. The illegal or unenforceable provision or provisions shall be deemed amended to conform to applicable laws so as to be valid and enforceable if such an amendment would not materially alter the intention of the parties. 29. NON-APPROPRIATION. All funds for payment by the City under this Agreement are subject to the availability of an annual appropriation for this purpose by the City. In the event of non-appropriation of funds by the City Council of the City of Lubbock for the services provided under the Agreement, the City will terminate the Agreement, without termination charge or other liability, on the last day of the then- current fiscal year or when the appropriation made for the then-current year for the services covered by this Agreement is spent, whichever event occurs first (the "Non-Appropriation Date"). If at any time funds are not appropriated for the continuance of this Agreement, cancellation shall be accepted by Orion on thirty (30) days prior written notice, but failure to give such notice shall be of no effect and the City shall not be obligated under this Agreement beyond the Non-Appropriation Date. 30. COMPLIANCE WITH LAW. Orion shall, at all times, operate, use, and conduct business of the Facility in a lawful manner and in full compliance with all applicable governmental laws, ordinances, rules, and regulations. Orion shall not permit any illegal activities to be conducted on or at the premises of the Facility, and shall obtain and maintain all such required licenses, permits, and approvals from the appropriate regulatory agencies before undertaking any activity required in the performance of this Agreement. 31. INDEMNITY. Orion shall indemnify and hold harmless the City of Lubbock and its elected officials, officers, agents, and employees from all suits, actions, losses, damages, claims, or liability of any kind, character, type, or description, including without limiting the generality of the foregoing, all expenses of litigation, court costs, and attorney's fees, for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, to the extent arising out of, related to or occasioned by, the negligent acts or Orion, its agents, employees, and/or subcontractors, related to the performance, operations or omissions under this agreement and/or the use or occupation or city-owned property. This indemnity obligation shall survive the expiration or termination of this Agreement. � 32. ENTIRE AGREEMENT. This Agreement (together with any attached Exhibits) constitutes the entire agreement between the parties concerning the subject matter of this Agreement, and supersedes all prior agreements, arrangements, understandings, restrictions, representations or warranties, whether oral or written, between the parties relating to the subject matter of this Agreement. 33. EXHIBITS. All exhibits attached to this Agreement are incorporated herein by reference. The Exhibits are as follows: Exlribit "A"— Intent and Performance Expectations Exhibit "B"— Management Agreement Criteria Exhibit "C" — Golf Course Maintenance Standards Exhibit "D" — Building and Custodial Maintenance Standards Exhibit "E" — Golf Car and Equipment Care and Maintenance Standards Exhibit "F" — Standard Clauses [SIGNATURE PAGE FOLLOWS] 13 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF LUBBOCK ORION GOLF LB, INC. By: Matt Roberts, Partner ATTEST: Courtney Paz, City Secret APPROVED AS TO CONTENT: . �-Q � 1 Brooke Witcher, Assistant City Manager APPROVED AS TO FORM: 1 Rachael Foster, A si tant City Attorney t4 Exhibit "A" Intent and Performance Expectations It is the intent and expectation of the City of Lubbock to provide for its citizens a quality golfing facility that offers exceptional course conditions and superior customer service. All rates and fees are to be reasonable and fair, yet competitive within the local golfing market. The City fully expects the facility to be operated within golf industry standards from both the management of the clubhouse operations as well as the maintenance of the putting surfaces, fairways, tees, landscaping, overall turf'quality and agronomy. These high standards can be met only through a professional operator that has the adequate staffing, training and experience to provide these services on behalf of the City. The successful Candidate will be required to procure all goods and services necessary for the operation of the facilities, and to develop plans for any needed facility improvements. The full-service manager will work with the City to plan and implement capital improvements. Management company will be responsible for the day-to-day operation and management of the golf course; including, but not limited to, golf course maintenance, golf course operations, clubhouse operations, retail operations, concessions, special events, promotion/marketing, and facility improvements, and the rate structure which may be subject to City approval. Under a management contract arrangement, the City shall have the right to approve the annual budget as well as any proposed capital improvement expenditures for the golf course and capital equipment prior to implementation by the management company. The City will maintain an open CIP account to hold capital funding. General Meadowbrook Golf Course Requirements A. Responsibilities, Policies and Procedures 1. The successful Candidate shall provide a level of service (customer service, maintenance standards, etc.) at least equal to or superior to the standards that currently exist at Meadowbrook Golf Course. 2. The course shall be operated as a public facility in a nondiscriminatory manner. 3. The successful Candidate shall provide course maintenance and day-to-day playability conditions of the highest standards and employ state-of-the-art maintenance practices. See Exhibit "C'. 4. The successful Candidate shall be responsible to develop and implement a robust and effective marketing program that produces positive results in terms of growth of golf rounds purchased, golf car rentals, as well as concession and event sales, pro shop sales and instructional programs. 5. The golf course and concession operations shall be open on a daily basis, from dawn to dusk, with the exception of closures due to inclement weather conditions. Scheduled maintenance days require approval the Director of Parks and Recreation or authorized designee. 6. The successful Candidate shall be responsible for maintenance and daily custodial cleaning of the clubhouse facilities at quality standards. See the Attachments. 7. The successful Candidate shall be responsible for maintaining and cleaning the maintenance facilities that include the maintenance shop, equipment and parts storage, and offices. 8. The successful Candidate shall be responsible for maintaining all areas of the golf course facilities litter and trash free, including the parking lot, clubhouse area, ponds, and the golf course proper. 9. The successful Candidate shall be required to cooperate with the City during special events and other unanticipated eventualities. 10. Develop a program to support local municipal and private school golf teams through favorable rates and accommodations. 1 l. The successful Candidate shall establish and maintain effective working relationships with the employees, City officials, golf patrons, and the general public. 12. The successful Candidate shall be responsible for regular pest control inspections and extermination, in compliance with all Texas Department of Agriculture regulations concerning pesticide applications and nutrient management. 13. Smoking in any building is strictly prohibited. The successful Candidate shall be required to adhere to and enforce this policy. 14. Repair and maintenance items which include seeding, reseeding, and other general landscaping, tee box revisions and extensions, bunker reconstruction and restoration, and golf car path repair, paving, and repaving shall be the sole responsibility of the manager. 15. The successful Candidate shall be responsible for obtaining a liquor license, and be responsible for all alcohol related activities in accordance with City policies and the Texas Alcoholic Beverage Commission (TABC). B. Operations and Programming The successful Candidate shall: 1. Create and maintain a high-quality golfing experience for Lubbock citizens and visitors. 2. Implement customer service practices that shall enhance and maintain the satisfaction of patrons, including, but not limited to, ways to promote faster pace of play. These practices shall be outlined in the proposal. 3. Not permit use of the golf course without a reasonable charge for such use. 4. In addition to general operation and management staff, provide course marshals, starter, and courtesy golf car services. 5. Implement innovative and effective player development programs, particularly for juniors, female golfers, and senior citizens. 6. Maintain an ADA-compliant golf car on-site, ensuring its availability for handicap users at all times. 7. Develop and implement marketing and promotion programs that shall effectively improve the City's market share in the local/regional golf market, and employ yield management strategies to encourage play during traditional slow play periods. 8. Provide high-quality golf instruction programs for players of all ages and abilities, including individual and group lesson opportunities with well-qualified instructors. 9. Enhance leagues to promote increased activity and group camaraderie at the facility. In addition, the successful Candidate is expected to host other tournaments and outings, including the possibility of hosting local/sectional qualifiers of USGA tournaments. ] 0. Offer a convenient internet and mobile application based tee time reservation system with customer service benefits comparable to systems offered within the local/regional market. The successful Candidate shall be required to utilize a golf-specific point-of-sale (POS) system that has proper modules for maintaining a database of customer information (e.g., zip codes, emails), electronic marketing, electronic tee sheet management, retail management, reporting, and accounting. 11. Provide competent and neatly attired employees in the following areas: golf pro shop, golf course maintenance, golf starters, golf rangers, food and beverage concession, and driving range. C. Operating Revenues and Expenses, Reporting and Auditing The successful Candidate shall: 1. Submit monthly financial reports at a level of detail and in a format approved by the City. At the end of each operating year, the successful Candidate shall submit audited financial statements for the past year. 2. Maintain cash handling and revenue control systems to ensure the accurate and complete deposit and recording of all revenues, in a form and manner acceptable to the City. 3. Provide all accounting reports and procedures requested by the City. D. Food and Beverage Operation The successful Candidate shall: 1. Offer a quality food and beverage operation, including concession operation at the clubhouse and on the course. 2. Explain in detail a plan for operating the concession area and on-course services, including proposed hours of operation and the types of inerchandise, food, and beverages that will be available. 3. Attach a comprehensive company policy covering the distribution and consumption of alcoholic beverages as part of this proposal. E. Golf Shop The successful Candidate shall: 1. Operate and manage the golf shop at quality standards, with a customer-friendly point of sale, and easy access to tee times. 2. Provide a wide selection of golf inerchandise. This should include essential items, logoed items, as well as items that reflect current trends. 3. Explain in detail plans for operating the golf shop, including proposed hours of operation and the types of inerchandise and services that shall be provided. F. Capital Improvements The successful Candidate shall: 1. Assess needs and develop plans annually, including implementation strategies, for necessary and desirable capital improvements to the golf course, practice facilities, clubhouse, golf shop, food and beverage area, banquet room, and maintenance facilities. 2. Submit a proposed five-year plan for capital improvements. Any capital improvement, which may include building construction, golf car path construction, and development of new holes shall be subject to City approval. 3. In a management agreement, the successful Candidate, shall work with the City cooperatively to plan and implement capital improvement projects. Major renovation and improvement projects shall be subject to City review and shall require written City approval prior to implementation. G. Golf Course and Clubhouse Security The successful Candidate shall: 1. Provide and maintain procedures and systems to ensure the security of the golf course and the clubhouse, including but not limited to a fire and burglar alarm system. It is encouraged that security cameras be installed in high-traffic areas in the clubhouse. H. Compliance with Laws The successful Candidate shall: 1. Comply with all City, State, and Federal requirements to provide safe and accessible recreational opportunities for everyone, including persons with disabilities. 2. Exceed accessibility requirements whenever possible and not simply provide the minimum level required. 3. Comply with all environmental laws in the operation and maintenance of the golf courses. I. Quarterly Meetings with the City of Lubbock The successful Candidate shall: l. Engage in quarterly meetings with City representatives, to review and discuss their performance. These meetings will serve as opportunities to assess progress, address any concerns, and ensure alignment with the department's goals and expectations. Some meetings may consist of mutual grading of the facility. Exhibit "B" Management Agreement Criteria Basic Requirements / Responsibilities for Management Contract Prior to commencement of the contract, the successful Candidate shall work cooperatively with the City to further clarify the intended goals and purpose of the management contract, discuss and clarify any issues, gain an understanding of City operations, and establish responsibilities and timeframes. The successful Candidate shall assume responsibility for the following operations associated with Meadowbrook Golf Course on an annual basis: 1. Formulating and implementing business plans, marketing/promotion plans, maintenance, operating programs, and budgets to be submitted to the Director of Parks and Recreation, or designee, for approval for each fiscal year. 2. Developing recommendations for fees, subject to City approval, and indexed to local or regional competitive golf facilities of similar type and quality. Setting of fees shall be subject to a negotiation process and partnership between the City and the successful Candidate. 3. Procuring and maintaining all equipment used in operation of the golf facility, including maintenance vehicles and equipment. 4. Purchasing of all supplies, consumables, etc. for use in the operation of the facility. 5. Developing a facility improvements master plan, with specific recommended projects, and an implementation schedule and plans. NOTE: Under the management contract option, the City shall review the facility improvements master plan and work with the management company on cost estimates, detailed design, bidding, and implementation plans. The extent of City involvement shall be dependent on the size, scope, and budget of each proposed project. City retains responsibility for the following: 6. Administration of all terms and conditions of the contract. 7. Approval of all fees based on proposals from the management company. 8. Monitoring maintenance performance according to agreed-upon standards, specifications, and operating policies. 9. Annual approvals of operating and capital budget. 10. Prior approval of any and all expenses not budgeted. 11. Prior approval of any alterations to existing facilities and partnering on facility improvement projects. Agreement Terms for Management Contract A. Management Fee for Operations Under the terms of a Fee-for-Service Management Contract, the successful Candidate may be paid a base management fee, plus an incentive management fee. B. Term of Agreement This contract will have an initial 5-year term, starting October 1, 2024. Additionally, there are provisions for two (2) potential 5-year renewals, which means the contract has the potential to extend for an additiona) 10 years beyond the initial 5-year term. While the official start date is October l, 2024, the chosen Candidate is expected to initiate communication and preparatory work with the City as soon as the agreement is reached and the contract is signed. This will include facilitating the purchase/lease of golf cars, maintenance equipment, etc. This proactive engagement allows for a smoother transition and ensures that necessary arrangements are made well in advance. From October 1, 2024 through December 31, 2024, a transition period will be in place. During this time, the current Lessee will be phasing out their responsibilities while the incoming contractor starts to assume their role. This period allows for a seamless handover of duties without disrupting the operations of the golf course. C. Golf Cars, Utility Vehicles and Maintenance Equipment Under a management agreement, the City will purchase a new fleet of golf cars, utility vehicles and a maintenance equipment package. The selected Candidate will assist the City through this process and facilitate the acquisition of all needed equipment. D. CapitalImprovements In addition to everyday course and facility maintenance and repairs, the successful Candidate, in cooperation with the City, will be expected to develop plans for capital improvements to the golf course, driving range, clubhouse, maintenance facilities and other areas. These projects may also include renovations to tee boxes, greens, bunkers, golf car paths, and other on-course areas. Management proposals should include a proposed capital improvement plan that includes improvements to the golf course, practice facilities, and clubhouse during the term of the agreement. Candidate is to describe all proposed capital work, and provide cost estimates for each distinct project. In addition, include a preliminary capital/design timetable that clearly outlines proposed improvements and the anticipated commencement and completion dates for these improvements (i.e., the expected duration of each improvement). A brief listing of capital improvement needs is available in Attachment I. 1. The successful Candidate shall annually submit a proposed five-year plan for capital improvements. 2. All funding for capital improvements will be allocated in the City's capital budget under C►P — Golf Course Improvements. These funds shall only be encumbered or expended with written approval by the City. 3. The City shall not be liable for any encumbrances or expenditures for capital improvements that have not received the prior written approval from the City. E. Termination for Convenience The agreement may be terminated upon mutual consent of the successful Candidate and the City. If either party wishes to ter►ninate the agreement for convenience, it must notify the other party in writing at least 180 days prior to the proposed termination date. F. Termination for Cause The City shall have the right to terminate this management agreement for cause, in the sole opinion of the City, based on the management company's performance, as follows: 1. Consistent inability to achieve mutually agreed upon financial performance goals. 2. Failure to meet the performance standards for the facilities and the operations and management plan. 3. Disregard of laws, ordinances, or rules, regulations or orders of a public authority having jurisdiction. 4. Persistent or repeated failure to supply properly skilled workers. 5. Breach of fiduciary obligations under the agreement. 6. Filing of a voluntary petition for protection under federal bankruptcy laws; or the failure to obtain the dismissal of an involuntary petition under federal bankruptcy laws within 90 days. 7. Discontinuance of its business or activities at the facility. 8. Any other substantial breach of the agreement. G. Employee Transition Provision in Case of Contract Termination In the event of contract termination for any reason, the City reserves the option to extend employment opportunities to the selected Candidate's personnel. This provision allows for a potential transition of the Candidate's employees to City employment, facilitating a seamless continuity of essential services and expertise. Exhibit "C" Golf Course Maintenance Standards Golf Course Maintenance Guidelines The course maintenance at Meadowbrook Golf Course includes the upkeep of putting surfaces (including putting greens, fringes and perimeters), tees (including practice tees), approaches, collars, ditches, fairways, rough areas, sand traps, driving range, lakes, creeks, and bridges. In addition, the selected candidate will be responsible for the conservation of trees, shrubs and landscaping throughout the entire property. The maintenance practices included in this section are intended to be an overall outline for the agronomic, horticultural, and recurring service practices of the golf course maintenance operations. While the guidelines are detailed, they are intended to be only minimum rules of operation. Variances from the guidelines shall be necessary at times to allow for adjustments resulting in climatic conditions, pest infestations, golf course traffic, tournaments, and other unforeseen events or issues. The successful Candidate's primary responsibility is for ensuring the integrity of the golf course, therefore the City is will remain receptive to alternative approaches to boost efficiency and results. Note: While specific fertilizers, chemicals, seed, supplies, products, or techniques are specified below, similar items or techniques of equal or better effectiveness without additional cost to the City may be used, if preapproved by the Director of Parks and Recreation, or appointee. A. Mowing Guidelines 1. All putting surfaces shall be mowed every day the course is open for play at a height of cut that is acceptable to the City without causing undue stress to the turf. Typically, a cutting height between 5/32 inches to 1/4 inch shall be maintained. Greens should be maintained to achieve at least an 8- foot stimpmeter reading. The integrity of the original size of greens shall be maintained. 2. Tees shall be mowed three times per week. A mowing height of 1/4 inch to 1/2 inch shall be maintained. No more than 33 percent of the leaf shall be removed at any one mowing. The integrity of the original size and design of tees shall be maintained. 3. Fairways, approaches, and collars shall be mowed three times per week during the active growing season and two times per week during the cooler periods. A height of cut of 1/2 inch to 3/4 inch shall be maintained. There may be certain times during the summer when this frequency may increase due to changes in climatic conditions. The frequency of cut during the cooler periods may also be increased to three times per week when the fairways are overseeded. No more than 33 percent of the leaf blade shall be removed at any one mowing. The integrity of the original size of fairways shall be maintained. 4. Tee and green surrounds, as well as rough areas, shall be mowed weekly during the active growing season and as needed throughout the year. A height of cut of 1-1/4 inch to 1-1/2 inch shall be maintained. 5. Growth regulators shall be utilized in wet areas during the summer months when excessive rainfall is predicted to keep the turf under a manageable condition. 6. B. Aeration Guidelines: l. Greens shall be aerated as needed to provide the soil with the proper air, water, and soil ratio required for healthy putting surfaces. Two (2) conventional core aerations (2 inches deep on 2-inch centers, minimally) coupled with one deep tine aeration during the summer months shall be performed annually. Spiking of all greens shall be performed between aerations to maintain proper water infiltration. 2. Tees shall be aerated two times, minimally, during the year with a conventional aerator to alleviate compaction and help control thatch. 3. Fairways/rough areas shall be aerated one time, minimally, during the summer months to alleviate compaction. Also, supplemental aerations shall be done on the heavily compacted areas and may be accomplished with a deep-tine aerator. C. Vertical Mowing (or Verticutting) / Spiking Guidelines: 1. Greens shall be vertically mowed during the active growing season to help promote quality putting surfaces. Typically, every two weeks during the active growing season would be considered minimal. A deeper verticutting shall be accomplished following aerations in two to three directions to help promote the healing of the damage on the putting surfaces caused by aerations. Spiking of the greens shall be performed regularly. 2. Tees shall be vertically mowed in conj unction with the aeration services during the summer. The frequency of vertical mowing shall be adjusted accordingly should the playing areas become "spongy." 3. Fairways and roughs shall be vertically mowed or scalped, if necessary, in order to prevent matting and/or the build-up of thatch in these areas. D. Top Dressing Guidelines: l. Greens shall be top dressed in conjunction with the verticutting/spiking and aeration operations. This shall be accomplished with a soil mix or sand that is similar to the make-up of the existing soil profile. 2. Greens shall be top dressed every two weeks during the active growing season to help maintain a smooth putting surface. In addition to this, during the interseeding period, the greens shall be "dusted" with top dressing. 3. Tees shall be top-dressed two times during the summer in conjunction with the aeration operations. In addition, the divots shall be filled in on a weekly basis, minimally, to ensure an even playing surface. E. Fertilization Guidelines: 1. Greens shall be fertilized at a rate of 1.5 pounds of nitrogen per month with an analysis or ratio of N, P, and K determined by soil and tissue testing. Only materials specifically used on putting surfaces shall be utilized. Minor nutrients shall be applied as a foliar application in addition to what is available in the granular fertilizer. Only fertilizer specifically formulated for putting greens shall be applied. 2. Tees shall be fertilized at a rate of one pound of nitrogen per month with a fertilizer analysis to be determined by soil testing. During overseeded months, the applications of fertilizer shall be adjusted as necessary to ensure that quality teeing areas are present. 3. Fairways, irrigated rough areas, and slopes shall be fertilized with 6 to 8 pounds of nitrogen annually through either granular or liquid applications that shall be applied throughout the course of the year. Supplemental amounts of fertilizer shall be applied to weak and thin areas. Any additional amounts ofN, P, and K shall be determined by soil tissue tests and adjusted accordingly. 4. Dolomite lime applications, in conjunction with aeration, shall be used as necessary to assist in keeping the pH at a desirable level. F. Overseeding Guidelines: 1. Greens shall be overseeded as needed each fall with an initial seeding rate of 18 pounds of seed per 1,000 square feet. Additional seed shall be added as necessary to ensure a good germination and juvenile development. Standard industry guidelines shall be followed during this procedure. 2. Tees shall be overseeded each fall with a perennial ryegrass blend at a seeding rate of 15 pounds per 1,000 square feet on par 4 and par 5 and a 20-pound per 1,000 square feet seeding rate shall be utilized on par 3. Regular seeding and sanding of divots shall be performed throughout the overseeded months. 3. Fairways shall be overseeded each fall with a perennial ryegrass blend at a seeding rate of 300 pounds per acre. Regular seeding and sanding of divots shall be performed throughout the overseeded months. G. Bunker Maintenance Guidelines: 1. Mechanical raking of the bunkers shall be performed five times per week. Bunkers shall be raked all days with the exception of Tuesday and Sunday, or as designated by the Parks and Recreation Director. In addition to mechanical raking, the bunkers shall be spot hand raked during the days the bunkers are not mechanically raked. The integrity of the original size and design of each bunker shall be maintained. 2. Edging of the bunkers shall be performed monthly to ensure a manicured appearance at all times. 3. Mowing of the bunker faces shall be performed weekly throughout the growing season and as needed throughout the remainder of the year. 4. Additional sand shall be added as needed throughout the year to maintain an average depth of 4 inches in all parts of the bunkers. H. Equipment Repair Maintenance Guidelines: 1. The successful Candidate shall follow all manufacturers' guidelines in the maintenance and repair of equipment. All of the successful Candidate's equipment technicians shall be qualified and are encouraged to attend industry workshops and seminars to stay updated on the latest trends and repairs of equipment. I. Irrigation Guidelines: 1. The irrigation and well systems shall be repaired and maintained on a regular basis by qualified staff of the successful Candidate. 2. These employees may be required to attend service seminars to keep updated on the latest irrigation development and trends in the industry. 3. The successful Candidate shall be responsible for submitting and implementing a well maintenance/operation program. The well maintenanceloperation program should include a routine monitoring of water level, hours run, gallons per minute, and specific capacity of the well. J. Integrated Pest Management Guidelines: The goal is to have Meadowbrook Golf Course as weed and insect free as possible and to prevent any damaging outbreaks of pests. The successful Candidate's approach to the control of damaging pests and weeds shall include curative and preventative types of control measures using the most appropriate and legal products available. The successful Candidate shall be responsible for the implementation of an integrated pest management (IPM) program for all playing areas of the courses including rough areas via regular monitoring, problem and potential problem identification, preventative measures, diagnosis and treatment. All greens shall be inspected daily for the presence of damaging pests, insects, or fungus. All greens shall be treated as required to prevent or control fungus and insect activity and damage to the turf. All fairways shall be inspected weekly for the presence of damaging pests, insects, or fungus and treated appropriately to prevent turf damage. K. Other Maintenance/Service: 1. The successful Candidate shall be responsible for properly moving the cups and tee markers and repairing ball marks every day the courses is open for play. In addition, divot buckets/bottles shall be filled with sand and the ball washers checked for clean towel and soap solution daily. The ball washer soap shall be changed a minimum of once per week. L. Trash, Debris, and/or Organic Matter Removal: 1. During the course of the day, any trash or nonorganic debris on the golf courses shall be picked up. This shall be hauled to a legal disposal site and disposed of. Removal from the property, when necessary, shall be the responsibility of successful Candidate. M. Deep Rough/Natural Areas Maintenance: 1. The successfu) Candidate shall maintain the natural areas within the boundaries of the play areas. These areas are to be kept free of fallen limbs, undesirable vegetation, trash, and weeds. 2. The successful Candidate shall be responsible for pruning any plant material and clearing debris that obstructs the golf car paths and/or teeing areas throughout the golf courses. N. Golf Car Path Maintenance: All golf car paths shall be kept clean of cut grass and shall be edged monthly during the active growing season and as needed throughout the year. Standing water problems on golf car paths shall be promptly corrected by the successful Candidate. The successful Candidate shall repair or is responsible for repair to golf carpath breaks due to irrigation repairs. O. Lakes and Ponds Maintenance: All aquatic weed control is the responsibility of the successful Candidate. The successful Candidate's personnel shall remove litter and trash from the water bodies on a regular basis. All lakes and ponds shall be kept free of all unwanted aquatic plant life. P. Landscape Beds Maintenance: l. The successful Candidate shall install and maintain flowering plants in select landscape beds throughout the golf course and around clubhouse and patio. This shall include weed control, watering, fertilization, and pest control. The successful Candidate shall work with the City in determining planting designs. Q. Buildings: l. The successful Candidate shall maintain the landscape surrounding the maintenance buildings, on- course restrooms, and clubhouse buildings on the golf courses in a good, operable, and sanitary order. Any required repairs, replacement, rebuilding, and restoration should be brought to the attention of the Director of Parks and Recreation immediately. All such repairs, replacements, rebuilding, and restoration shal) be the responsibility of the successful Candidate. R. Tree Trimming: 1. The successful Candidate shall be responsible for tree trimming duties to: a. Ensure tee boxes, greens and golf car paths are free of overgrown branches. b. Minimize the potential of fallen limbs and branches during storms, high winds, etc. c. Ultimately, maintain safety and accessibility for all golfers and guests. 2. The successful Candidate shall remove, and dispose of, all trimmed limbs and branches. S. Tree Removal: 1. The successful Candidate must obtain approval from the Director of Parks and Recreation and a City Management Representative prior to undertaking any tree removal. Exnibit "U" Building & Custodial Maintenance Standards Maintaining the clubhouse, golf car storage building, and maintenance facilities at Meadowbrook Golf Course includes the upkeep of structural integrity, cleanliness, landscaping, utilities, equipment, and all associated amenities to ensure an inviting and well-functioning environment for patrons and staff alike. The custodial practices included in this section are intended to be an overall outline. While the guidelines are detailed, they are intended to be only minimum standards of operation. The successful Candidate's primary responsibility is for ensuring the integrity of the facility. A. Daily Custodial Duties and Requirements: 1. Empty waste receptacles and replace liners as needed. Refuse removal is the responsibility of the successful Candidate. 2. Clean and sanitize the interior and exterior surface of all trash containers. 3. Vacuum all areas of the building's interior carpet. Vacuum any floor mats and entry mats located at entry/exit doors. Spot clean any areas as needed. 4. Vacuum behind equipment using a vacuum wand. This shall avoid damage to equipment and/or equipment cords. 5. Vacuum all fabric upholstery on chairs. Spot clean as necessary. 6. Dust mop all non-carpeted floors then mop afterwards. 7. Clean and sanitize drinking fountains and remove encrustations, watermarks, etc. Polish as needed, using approved metal polish. 8. Remove cobwebs on walls, ceiling corners, or any other places. 9. Dusdwipe down tabletops, desktops, countertops, vacant shelves, windowsills, ledges, chairs, benches, etc. 10. Pick up litter, trash and debris at entryways, parking lots and surrounding areas as needed. This is to include areas around the trash dumpsters. 11. At entranceways, remove lint, cobwebs, debris, and mud from walkways, steps, floors, canopies, and ceiling corners. If necessary, remove bird droppings. 12. Clean entry door surfaces, door glass, and adjacent glass and frames. Clean entry door handles, push plates, and kick plates. 13. Clean top surface of exterior patio tables and chairs. 14. In kitchen and bar area, clean sinks and counter tops using sanitizing agent, clean tabletops and chairs in compliance with state and local food safety regulations. Fill any paper towel and soap dispensers. 15. In kitchen, clean all appliances including microwave, oven, stovetop, refrigerator, etc. in compliance with state and local food safety regulations. 16. Spot clean carpets and tile floors as needed. 17. Clean all windows inside and out with non-streak cleaner. 18. [n restrooms, resupply towels, soap, toilet paper, and other items as required. Clean all sinks, mirrors, fixtures and countertops. 19. [n restrooms, clean toilet seats, inside bowl, bowl rims of toilet, base (including hold-down bolts), as well as unclog toilets as necessary. Clean urinals in like manner. 20. Spot clean ceramic tile floors/walls, removing stains, heavy soil, graffiti, candy, gum, or any other foreign material. Clean stall partitions in like manner. 21. Sweep and mop bathrooms and locker rooms. Spot clean baseboards to remove build-up of dirt and foreign matter. Clean and polish all stainless steel and chrome. 22. Clean or replace ceiling tiles as need. 23. Report any needed large building repairs to Director of Parks and Recreation or designee. B. Weekly Custodial Duties and Requirements 1. Dust and/or vacuum both sides of blinds and other window coverings. 2. Clean all washable non-fabric seating. 3. Heavy sweep all loose soil, rocks, debris, etc. from patio areas, scoreboard, front and back entrances, building stairs/steps, and handicap ramps. 4. Pour germicidal or detergent solution into floor drains. Clean grate to remove mildew or other stai ns. 5. Clean bencheslseating on patio. C. Monthly Custodial Duties and Requirements 1. Wipe/dust all artwork, photographs, white boards, bulletin boards, plants, etc. 2. Vacuum and clean HVAC supply, return vents, and surrounding ceiling. 3. Remove any dirt or other foreign matter from all baseboards. 4. Clean all exterior surfaces of lockers. D. Quarterly Custodial Duties and Requirements 1. Clean ceiling and light diffusers/covers (only if diffusers and covers are removable without tools). Dusbwipe bulbs. 2. Clean all ceiling fans free of dirt and dust. E. Semiannual Custodial Duties and Requirements 1. Extracdshampoo all carpeted areas. 2. Steam clean all tiled areas. 3. Power wash all concrete areas. F. Additional Duties As Needed (but not limited to) 1. Paint and/or touch up facilities' interior/exterior. 2. Repair sheetrock. 3. Replace trim and/or baseboards. 4. Change out interior/exterior lightbulbs in building and patio. 5. Minor plumbing repairs. Exhibit "E" Golf Car and Equipment Care and Maintenance Standards Golf Cars — Care and Maintenance Standards A. Purpose of a Plan Having a plan in place to care for and maintain the fleet of golf cars holds significant importance, and the selected Candidate's role in preserving these vehicles should go beyond routine maintenance for the following reasons: 1. Customer Satisfaction: Golf cars are essential amenities at any golf course. Ensuring their proper maintenance contributes significantly to the overall experience of the players and patrons. Well- maintained, clean, and properly functioning golf cars enhance customer satisfaction and comfort during their rounds. 2. [mage and Reputation: The condition of the golf cars reflects the overall image and reputation of the golf course. Well-kept, clean, and properly functioning vehicles contribute to a positive image, indicating professionalism and attention to detail, which can attract and retain customers. 3. Safety: Maintaining the fleet ofgolf cars is directly linked to safety. Regular inspections and upkeep prevent potential hazards such as brake failures, steering issues, or electrical malfunctions, reducing the risk of accidents or injuries to players, staff, or property. 4. Operational Efficiency: A well-maintained fleet ensures operational efficiency. Properly functioning golf cars reduce downtime due to breakdowns, ensuring a seamless flow of play on the course and preventing disruptions that can affect the pace and enjoyment of the game. 5. Longevity and Cost-Efficiency: Regular maintenance extends the lifespan of the golf cars. It helps identify and rectify minor issues before they turn into major problems, reducing the need for costly repairs or premature replacements. Ultimately, this saves on long-term operational costs. 6. Compliance and Accountability: Proper maintenance ensures compliance with safety regulations and manufacturer's recommendations. Additionally, holding accountable the groups or individuals using the golf cars for any damages incurred helps manage resources effectively and maintain accountability. B. Daily Checks: 1. Visuallnspection a. Check and maintain proper fuel levels. b. Look for signs of leaks (fuel, oil) under the golf cars. c. Check for any visible damages, dents, or scratches on the exterior. d. Inspect seats for wear, tears, or loose bolts. e. Inspect the roof and windshield for cracks or chips. f. Ensure tires have proper inflation, adequate tread, and are free from damage. g. lf any damage is observed, promptly inform clubhouse staff and/or management. 2. Cleanliness a. Remove all trash/debris from golf car, including cup holders and all compartments. b. Power wash the golf cars' exteriors thoroughly to remove dirt, debris, and grime. c. Clean wheels, rims, and undercarriage areas. d. Once rinsed, wipe down the entire golf car with towel and/or shammy. e. Place new scorecard under the scorecard holder and put the golf car back in line to go out for play or park the golf car in its assigned parking spot in the golf car storage building. 3. Storage a. Golf cars should be parked in their assigned parking spots within the golf car storage building when not in use. b. The golf car storage building should be locked and secured nightly. c. No golf cars shall be left outside overnight. C. Weekly Checks: 4. MechanicalInspection: a. Inspect fuel lines, connections, and the fuel tank for leaks or damage. b. Start the engine and ensure it runs smoothly without unusual noises or vibrations. c. Test acceleration and responsiveness of the golf cars. 5. Electrical System, Brakes and Steering: a. Inspect battery terminals for corrosion and ensure proper connections. b. Check brakes for proper functionality and responsiveness. c. Inspect steering for smooth operation without any play or resistance. d. If any damage is observed, promptly inform clubhouse staff and/or management. D. Monthly and Quarterly Checks: 1. Fluid Checks: a. Monitor engine oil, coolant, brake fluid, and transmission fluid levels as per manufacturer's recommendations. 2. Filters and Belts: a. Inspect air filters and replace if necessary. b. Check belts for wear, tension, and potential need for replacement. 3. Scheduled Servicing: a. Adhere to the manufacturer's recommended maintenance schedule for oil changes, filter replacements, and other service intervals. 4. Documentation: a. Maintain meticulous records of maintenance performed, repairs, and any incidents/damages for each golf car. Golf Course Maintenance Equipment — Care and Maintenance Standards If a management contract is awarded, the selected Candidate will be required to provide the City with a care and maintenance plan for the golf course maintenance equipment in which the City provides to maintain both 18-hole courses. The purpose of this plan is to ensure that proper upkeep is taking place to maximize the lifespan of each piece of equipment as well as provide the best playing conditions possible. A. Inventory and Documentation: l. Record all equipment provided by the City of Lubbock, including make, model, serial numbers, and acquisition dates. 2. Keep a detailed log of equipment usage, maintenance tasks performed, and any issues encountered. B. Manufacturer Guidelines and Manuals: 1. Obtain and thoroughly review manufacturer manuals for each piece of equipment. 2. Follow recommended maintenance schedules, procedures, and specifications. C. Scheduled Inspections and Maintenance: l. Establish a regular inspection schedule for all equipment. Inspect before and after each use and perform routine maintenance tasks. 2. Conduct comprehensive inspections weekly/monthly, focusing on critical components like engines, cutting blades, hydraulics, and electrical systems. D. Cleaning and Storage Procedures: l. Implement a strict cleaning regimen after each use to remove grass, dirt, and debris. Use manufacturer-recommended cleaning agents. 2. Store equipment in a designated, secure area protected from weather elements. Utilize covers to safeguard against dust, moisture, and UV exposure. E. Lubrication and Fluid Maintenance: 1. Follow manufacturer recommendations for lubricating moving parts. Use appropriate lubricants at specified intervals. 2. Regularly check and replace engine oil, hydraulic fluids, filters, and coolant according to the manufacturer's guidelines. F. Blade and Cutting Component Maintenance: 1. Sharpen cutting blades regularly to ensure clean and precise cuts. Rotate or replace blades as needed to maintain equipment efficiency. 2. Inspect and maintain reel mowers, trimmers, and other cutting components for optimal performance. G. Battery Care: 1. Monitor battery conditions, clean terminals, and recharge or replace batteries as necessary. 2. Store batteries properly during off-seasons to prevent deterioration. H. Training and Safety Protocols: 1. Provide comprehensive training to staff on proper equipment operation, safety protocols, and maintenance procedures. 2. Emphasize safety practices and ensure all operators are certified or trained to handle the equipment properly. I. Emergency Response Plan: 1. Establish clear protocols for handling equipment breakdowns or emergencies to minimize downtime. Keep essential spare parts on hand. 2. Have contacts for authorized service centers or technicians for complex repairs. J. Budget and Record-Keeping: 1. Allocate a budget for regular maintenance, repairs, and replacements. Keep detailed records of expenses and maintenance activities. 2. Monitor equipment performance and assess the need for replacements or upgrades based on usage and condition. K. Communication and Reporting: l. Maintain open communication channels between staff and management regarding equipment issues, repairs, and maintenance needs. 2. Regularly report maintenance activities, completed tasks, and any required repairs to the relevant authorities or management. Exhibit "F" Standard Clauses A. Non-Arbitration. The City reserves the right to exercise any right or remedy to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this document, this provision shall control. B. Texas Government Code Section 2252.152_Contracts with Companies Engaged in Business with Iran, Sudan, or Foreign Terrorist Organization Prohibited. Pursuant to Section 2252.152 of the Texas Government Code, prohibits the City from entering into a contract with a vendor that is identified by The Comptroller as a company known to have contracts with or provide supplies or service with Iran, Sudan or a foreign terrorist organization C. Texas Government Code 2271.002. a) This section applies only to a contract that: (1) is between a governmental entity and a company with 10 or more full-time employees; and (2) has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity. (b) A governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. D. Texas Government Code 2274. By entering into this Agreement, Contractor verifies that: (1) it does not, and will not for the duration of the contract, have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association or (2) the verification required by Section 2274.002 of the Texas Government Code does not apply to the contract. If Contractor is a company with 10 or more full-time employees and if this Agreement has a value of at least $100,000 or more, Contractor verifies that, pursuant to Texas Government Code Chapter 2274, it does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and will not discriminate during the term of the contract against a firearm entity or firearm trade association. E. Texas Government Code 2274 Contractor represents and warrants that: (1) it does not, and will not for the duration of the contract, boycott energy companies or (2) the verification required by Section 2274.002 of the Texas Government Code does not apply to the contract. If Contractor is a company with 10 or more full-time employees and if this Agreement has a value of at least $100,000 or more, Contractor verifies that, pursuant to Texas Government Code Chapter 2274, it does not boycott energy companies; and will not boycott energy companies during the term of the Agreement. This verification is not required for an agreement where a governmental entity determines that these requirements are inconsistent with the governmental entity's constitutional or statutory duties related to the issuance, incurrence, or management of debt obligations or the deposit, custody, management, borrowing, or investment of funds. F. Texas Public Information Act. The requirements of Subchapter J, Chapter 552, Government Code, may apply to this contract and the contractor or vendor agrees that the contract can be terminated if the contractor or vendor knowingly or intentionally fails to comply with a requirement of that subchapter. To the extent Subchapter J, Chapter 552, Government Code applies to this agreement, Contractor agrees to: (1) preserve all contracting information related to the contract as provided by the records retention requirements applicable to the governmental body for the duration of the contract; (2) promptly provide to the governmental body any contracting information related to the contract that is in the custody or possession of the entity on request of the governmental body; and (3) on completion of the contract, either: (A) provide at no cost to the governmental body all contracting information related to the contract that is in the custody or possession of the entity; or (B) preserve the contracting information related to the contract as provided by the records retention requirements applicable to the governmental body. G. Professional Responsibility. All architectural or engineering services to be perfor►ned shall be done with the professional skill and care ordinarily provided by competent architects or engineers practicing under the same or similar circumstances and professional license. Request for Resolution Please ca112572 or 2171 to pick up Date Requested: 5/22/2024 Date of Initial Buyer Review: Proposed Council Meeting Date: 5/28/2024 Date of Buyer Resolution Review: O Purchase Order Contract ❑ Public Works Contract ❑ Professional Service Agreement � Service Contract Project Type/No. RFP 24-17851-TF Title Management of Meadowbrook Golf Course Contract No. 17851 Purchasing Co-op Contract No. Vendor Name Orion Golf LB, Inc. C1ty & State Carrollton, TX Resolution Signatures � Kelli Leisure, Senior Assistant City � Brooke Witcher, Assistant City Manager Attorne � Ryan Brooke, Senior Assistant City � Bill Howerton, Deputy City Manager Attorne � Mitch Satterwhite, First Assistant p Chief of Police Ci Attorne ❑ Amy Sims, l]eputy City Attorney ❑ Erik Rejino, Assistant City Manager ❑ Jeff Hartsell, Deputy City Attorney ❑ D. Blu Kostelich, Chief Financial Officer � Rachael Foster, Assistant City ❑ Shaun Fogerson, Fire Rescue Chief Attorney For Purchasin� & Contract Department Use Reviewed by: M. Alvarez: T. Flores K. Morgan: Buyer Instruction: Once resolution document is reviewed, scan and save in "�C- Resolution-#####" folder.