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6.4 Appr Golf Cart Storage Faci CITY OF SALINA REQUEST FOR COMM I SS 1 ON ACT I ON DATE T 1 ME 2/22/93 q:00 P.M. AGENDA SECT I ON: Consent OR I G I NAT I NG DEPARTMENT: APPROVED FOR AGENDA: NO. 6 PARKS & RECREATION ITEM NO' ~ BY: Steve Snyder~ BY: '/ ITEM: At the February 8 City Commission meeting, trail fees and cart storage at the Municipal Golf Course were addressed. Though there has been an association between the two, it was felt the two issues should be separate. At that meeting, new rates were established which addressed revenue for maintenance as well as the inequity in rates between off course carts and those stored on course. As was discussed also, the present building is a concern because of safety aspects, appearance, and location. An estimate of $32,000 was received in May 1991 which would remedy safety and appearance concerns, though the current value of the building is estimated at only $38,000. Allowing for increases in the repair estimate would be an investment of approximately 90% of the total value of the building in renovation costs. Renovation in the current location would also greatly effect long range development plans with the addition of a Par 3 Course. Three options regarding cart storage were presented; the first being eliminating storage of private carts on the course. The two other options involve constructing a new storage building on golf course property. The First of these two is allowing a private vendor to construct and operate a facility independent of the Municipal Golf Course operation. Rental agreements would be between the vendor and private cart owners. The newly implemented trail fees would be applicable for these carts as well as any other private carts wishing to use the course. A license agreement for the right to construct and operate the facility would be established between the vendor and the City. The second option would be for the City to construct and operate a new cart facility with rental agreements between cart owners and the City. Again, trail fees would be charged to these cart owners at the same rate as off course cart owners. The cost of construction of the building would be ammortized over a period of years with annual payments from cart owners. The location of a new facility could be on either of two taxlways, approximately 50' wide x 250' long, extending east to Markley Road adjacent to the course parking lot. COld, vi I SS 1 ON ACTION MOTION BY SECOND BY TO: RECOMMENDATION: With the opportunity available to explore privatization of an operation that may or may not be advantageous to cart owners and the City, it is staffs recommendation the City Commission approve authorization to solicit proposals from interested parties for the construction and operation of a cart storage facility. Also it is recommended the City be allowed to review and evaluate proposals and prepare a proposal for this operation. March 19 is the date recommend- ed as the deadline proposals are to be received. Attached is a proposed copy of a license agreement with a private contractor. L~CENSE A(~REE~ENT This License Agreement is entered this day of , 1993, between the CITY OF SALINA, KANSAS (the "City") and ("Licensee") Recitals ~ A. The City owns and operates an 18 hole public golf course facility known as the Salina Municipal Golf Course (the "Golf Course"). B. The City desires to provide for private operation of the indoor storage of privately owned golf carts at the Golf Course. C. desires to construct a building for the storage of privately owned golf carts and golf related items at the Golf Course (the "Golf Cart Storage Operation") upon the terms and conditions of this License Agreement. THE P~I~TIES, therefore, agree as follows: 1. Exolusive license. The City grants an exclusive license to for the use of a concrete slab, 8"-12" thick, 49 feet wide by 250 feet long, located on the Golf Course property, legally described on the attached Exhibit A (the "Property"), for the purpose of constructing and maintaining a golf cart storage building (the "Building") and conducting the Golf Cart Storage Operation, subject to the terms and conditions of this License Agreement. 2. Term of license. This license shall be for term of twenty (20) years, subject to termination pursuant to paragraph 18. 3. Bu~ldinq specifications. The Licensee shall construct and maintain the Building, at Licensee's expense, in compliance with all City codes and ordinances. All plans and specifications for the Building must be approved by the City and must meet the following requirements: A. The siding on the Building must be metal, painted a color approved by the City. B. The Building must be constructed so that thirty-five (35) privately owned golf carts may be housed dormitory style, providing one entrance/exit for all carts to access. Individual storage areas within the confines of the Building may be provided by the Licensee. C. Each cart storage space will have an individual electrical outlet with 20 amp service. 4. Maintenance Standards. Licensee shall maintain the Building and the Property in accordance with the City's maintenance standards attached and incorporated by reference as Exhibit B. 5. Exclusive use of Build~ng. Licensee agrees that the exclusive use of the Building shall be for the storage of privately owned golf carts and golf related items. 6. Hours of operation. Licensee agrees that the Building will be accessible to cart owners during all hours that the Golf Course is in operation. 7. Util~ties. The Licensee shall be responsible for installation of utility service to the Building and agrees to pay for all utility expenses incurred in the operation of the Building, including the recharging of cart batteries. 8. Storage capacity. Licensee agrees to provide storage for thirty-five (35) privately owned golf carts. All golf carts must be stored inside the Building. 9. Availability of Building. The Building must be available for lawful use no later than , 1993. The City will terminate its current golf cart storage operation no later than thirty (30) days after notification by Licensee that the Building is available for lawful use. - 10. Cart Storage A~reement. The Licensee shall~enter into a written agreement with the owner(s) of each golf cart to be stored in the Building, the term of which shal!be b~sed upon the calendar year (the "Cart Storage Agreements,)%- The City shall not be regarded as a party to the Cart Storage Agreements for any purpose. The Licensee shall maintain, a specimen copy of the Cart Storage Agreements on f~e with the director of the City's parks and recreation department (the "Parks and Recreation Director") throughout the term of this License Agreement. 11. Cart Stora=e Fees. The cart storage fee shall be (S) per (month or year), per cart. Commencing January 1, 1995, the Licensee may increase the cart storage fee effective upon any January 1st renewal of the Cart Storage Agreements by the same percentage as the rate of change in the Consumer Price Index - All Urban Consumers (the "CPI-U") from October to October of the immediately preceding year. In order to impose such a storage fee increase, the Licensee must give written notice of the increase by first class mail individually addressed to all parties to the Cart Storage Agreements, postmarked no later than the December 1st prior to the January 1st effective date of the fee increase. Any other increase in the cart storage fee shall require the prior approval of the Salina City Commission. -2- 12. 0w~ership of Buildinq. Title to the Golf Cart Storage Building shall remain with Licensee until termination of this License, either by completion of the term or by operation of the default provisions in paragraph 18, at which time title to the Golf Cart Storage Building shall transfer to the City. 13. Property taxes. Licensee shall be responsible for and shall make timely payment of all real estate or personal property taxes that may become due in relation to the Building, al~ycontents owned by the Licensee, and the real estate upon which the Building is located. 14. ~xtended coveraqe insurance. Licensee shall maintain extended coverage insurance on the Building with a Kansas authorized carrier approved by the director of risk management for the City (the "Risk Manager"). The amount of the coverage shall be based upon the replacement value of the Building as approved bythe Risk Manager before placement of the original policy and before all subsequent annual renewals. The policy shall provide that such insurance may not be canceled by issuer thereof without at least thirty (30) days' written notice to the City. Ongoing proof of such coverage must be provided to the Risk Manager. 15. General Liability Insurance. Licensee shall maintain public liability insurance coverage covering the Golf Cart Storage Operation with a Kansas authorized carrier approved by the Risk Manager, with limits of not less than the maximum liability for claims which could be asserted against the City for any number of claims arising out of a single occurrence or accident under the Kansas Tort Claims Act, as it now exists or may hereafter be amended (currently $500,000), and will from time to time increase its limits in such amount as may be necessary to at all times during the term of this license maintain such limits at the then maximum liability for such claims under the Kansas Tort Claims Act. The policy shall provide that such insurance may not be canceled by issuer thereof without at least thirty (30) days' written notice to the City. Ongoing proof of such coverage must be provided to the Risk Manager. 16. CQ~ts of Operation. Licensee shall be responsible for all of the costs of conducting the Golf Cart Storage Operation. 17. Alterations. Following the initial construction, Licensee shall not alter, improve or change the Building without the prior written consent of the City. Licensee, unless otherwise agreed in writing, shall pay all costs associated with any such alterations, improvements, or changes. 18. Indemnificat~on and Hold Harmless. Licensee shall indemnify and hold and save the City, its officers, employees, agents, and authorized contractors, harmless from any loss, cost, expense, fine, penalty, damage or judgment, including attorneys --3-- fees, that may arise from the Golf Cart Storage Operation as conducted by Licensee, its agents, contractors, employees, or others participating with either the express or implied permission of the Licensee. 19. Breach of License ~qreement. In the event that Licensee ceases the Golf Cart Storage Operation or uses the Building for any purpose other than that specifically authorized under this License Agreement, all rights granted hereunder to Licensee shall immediately cease as if never granted and Licensee shall immediately quit and surrender its use of the Building, title to which will be deemed to have transferred to the City. In the event that Licensee shall fail to comply with any other substantial term, condition or covenant of this License Agreement within ten (10) days after written notiCe to do so has been mailed to it by the City, any such events shall be deemed an immediate breach and forfeiture of the License Agreement which shall then terminate. Upon such termination of this license, Licensee will quit and surrender its use of the Golf Cart Storage Building in compliance with the terms of this License Agreement, and title to the Golf Cart Storage Building shall be d~emed to have transferred to the City. 20. Relationship of the Parties. The relationship of the parties is solely that of Licensor and Licensee, and nothing herein contained shall create any other relationship or liability. Specifically, the Licensee is not the agent of the Licensor for purposes of any contracts for improvement of the Property or with any owner of a privately owned golf cart stored in the Golf Cart Storage Building. 21. Notices. Any notice to either party hereunder shall be sufficient if mailed by United States mail, postage prepaid, at the following addresses: C~ty of S&lina, Kansas c/o City Clerk P.O. Box 736 Salina, KS 67402-0736 22. ~ss~gnment of License. Licensee shall not assign this license or any interest therein without prior consent of the City. 23. Invalidity in Part. If any clause, sentence, or paragraph of this License Agreement shall be held to be invalid, it shall not affect the validity of the remaining provisions of this License Agreement. --4-- 24. Bindin~ Effect. This License Agreement shall be binding upon the parties, their personal representatives, successors, or authorized assigns. EXECUTED the day and year first above stated. CITY OF SALINAv KANSAS b~ Carol E. Beggs, Mayor by. -5- EXHIBIT A MAINTENANCE STANDARDS for GOLF CART STORAGE FACILITY The Building and Property defined under the License Agreement (the "Facility") shall be kept and maintained in a manner that will enhance and prolong the usefulness of the Building, that will allow for the safe use of the Facility, and that will be aesthetically compatible with other golf course improvements. Specific maintenance requirements include, but shall not be limited to: 1. The facility shall be kept free of trash or litter. The Licensee shall also pick up any trash or litter anywhere on the Golf Course caused by the operation of the Facility. 2. The concrete apron adjacent to the golf course parking lot shall be swept or cleaned regularly. 3. Any portion of the Building located adjacent to turf areas shall be trimmed or mowed a distance of three feet (3') from the edge of the Building. 4. All metal siding on the Building shall be kept painted (no peeling) to match the rest of the Building. Any dents or scrapes of the siding shall immediately be repaired or the siding replaced. -6-