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HomeMy WebLinkAbout59-17 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 59-17 File Number: 2017-0105 KESSLER MOUNTAIN REGIONAL PARK CONCESSION STANDS: A RESOLUTION TO APPROVE A TEN MONTH CONTRACT WITH JAMES AND JEWEL MORROW WITH A ONE YEAR AUTOMATIC RENEWAL FOR 2018 TO PROVIDE FOR OPERATION OF THE CONCESSION STANDS AT KESSLER MOUNTAIN REGIONAL PARK SOCCER COMPLEX, GARY HAMPTON SOFTBALL COMPLEX, LAKE FAYETTEVILLE SOFTBALL COMPLEX, AND WILSON PARK POOL. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with James and Jewel Morrow to provide for operation of the concession stands at Kessler Mountain Regional Park Soccer Complex, Gary Hampton Softball Complex, Lake Fayetteville Softball Complex, and Wilson Park Pool through the end of 2017 with a one-year automatic renewal for 2018. PASSED and APPROVED on 3/7/2017 Page 1 Attest: t^r-ft 6. z�'Ux'/' Sondra E. Smith, City Clerk T"y. 010"' • Cr �t s, CJ• .�tr�r FAYEi7EVfl L E •�:: a -i • -a �•- ••� • , ANSP City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2017-0105 Agenda Date: 3/7/2017 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 8 KESSLER MOUNTAIN REGIONAL PARK CONCESSION STANDS: A RESOLUTION TO APPROVE A TEN MONTH CONTRACT WITH JAMES AND JEWEL MORROW WITH A ONE YEAR AUTOMATIC RENEWAL FOR 2018 TO PROVIDE FOR OPERATION OF THE CONCESSION STANDS AT KESSLER MOUNTAIN REGIONAL PARK SOCCER COMPLEX, GARY HAMPTON SOFTBALL COMPLEX, LAKE FAYETTEVILLE SOFTBALL COMPLEX, AND WILSON PARK POOL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with James and Jewel Morrow to provide for operation of the concession stands at Kessler Mountain Regional Park Soccer Complex, Gary Hampton Softball Complex, Lake Fayetteville Softball Complex, and Wilson Park Pool through the end of 2017 with a one-year automatic renewal for 2018. City of Fayetteville, Arkansas Page 1 Printed on 31812017 John Crow Submitted By City of Fayetteville Staff Review Form 2017-0105 Legistar File ID 3/7/2017 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/17/2017 Parks & Recreation / Parks & Recreation Department Submitted Date Division / Department Action Recommendation: To approve a contract with James and Jewel Morrow for the operation of the concession stands at the Kessler Mountain Regional Park Soccer Complex, Gary Hampton Softball Complex, Lake Fayetteville Softball Complex and the Wilson Park Pool. Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ - Funds Obligated $ - Current Balance Does item have a cost? No Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget $ - V20140710 Previous Ordinance or Resolution # Original Contract Number: none Approval Date: Comments: CITY OF Tay1� 1 ARKANSAS TO: Mayor Lioneld Jordan THRU: Don Marr, Chief of Staff Connie Edmonston, Parks and Recreation Director FROM: John Crow, Recreation Superintendent DATE: February 14, 2017 SUBJECT: Agreement with James and Jewel Morrow STAFF MEMO RECOMMENDATION: Parks and Recreation staff recommends the approval of a contract with James and Jewel Morrow for the operation of the concession stands at the Kessler Mountain Regional Park Soccer Complex, Gary Hampton Softball Complex, Lake Fayetteville Softball Complex and the Wilson Park Pool. BACKGROUND: In January of 2017 the City of Fayetteville advertised RFP 17-02 for Concession Services for the Parks and Recreation Department. The deadline of January 24 arrived with no proposals submitted. Purchasing Division staff solicited feedback from interested parties and at that time received a message from the Morrows communicating their interest in providing concession services for the City. DISCUSSION: The spring sports season is starting very soon and approval of this contract would allow our Department to provide concessions as normal to our participants and fans. The Morrows have submitted a proposal that includes all the items required and have proposed a commission of 10% of gross sales to be paid to the City ten working days following the close of each month. They will also be required to provide worker's compensation insurance and a performance bond. BUDGET/STAFF IMPACT: There will be no cost to the City for this contract and no additional staff is required. Projected revenue from the contract is roughly $7,200 annually. The contract will be for a term of one (1) year with an automatic one (1) year extension that must be mutually agreed upon by both parties. This two year period will allow the City to acquire sales data on the volume to include the Regional Park. After the initial two-year period, the City will once again go through the RFP process with better sales data to appeal to more potential vendors. Attachments: Signed Contract Proposal from James and Jewel Morrow. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 CONTRACT Vendor: 2 Morrow Enterprises Term: 1 year term with 1 year automatic renewal options THIS AGREEMENT is made and entered into this 7-" day of March, 2017 by and between the City of Fayetteville, hereinafter "City", and James Morrow and Jewel Morrow, in their individual capacities ("the Morrows"). The City and the Morrows agree as follows: 1. Leased Premises. For and in consideration of the rents, covenants, and agreements herein entered into and agreed upon by the Morrows as obligations to the City, the City lets, leases and demises unto Lessee, subject to the terms and conditions contained herein, the following described property: the concession stands (building and equipment) located at Gary Hampton Softball Complex, Kessler Mountain Regional Park Soccer Com lex Lake Fa etteville Softball Complex, and the Wilson Park Swimming Pool in Fa etteville Arkansas. To have and to hold said premises unto the said Lessee for and during the term herein stated, subject to the covenants, terms, and conditions herein contained. 2. Term. This lease shall commence on the date approved by the Fayetteville City Council and shall extend for a period of approximately ten (10) months, ending on December 31, 2017. Upon agreement of both parties, the lease shall automatically renew for one (1) more year. 3. Rent/Report. The Morrows agrees to pay City an amount equal to ten percent (10no of all gross sales of food, beverages and refreshments no later than ten (10) working days following the close of each month. In addition to the rental payment, the Morrows shall file a monthly report on the form supplied by the City. The rental payment and monthly report shall be delivered to the Parks and Recreation Offices at 113 W. Mountain, Fayetteville, AR 72701.. Any payments to City not made when due shall bear interest after maturity at the maximum effective agreement rate of 6%. City of Fayetteville, AR Concession Services Page 1 of 4 4. Records. The City shall have the right at all times to examine the Morrows' books and records and verify rental paid. Any errors or omissions shall be adjusted. 5. Use. The lease premises shall be used only for the purpose of selling food, beverages, and such refreshments as are usually incidental to a restaurant, caf6, or soft drink concession, but specifically excluding any alcoholic beverage or tobacco products. Further, the Morrows shall not use or permit the stand to be used for any unlawful, improper or offensive purpose whatsoever. 6. Maintenance. The City will perform all major and minor repairs in each of the concession stands leased by the Morrows; and will, in its sole discretion, make any such repairs as are necessary for the preservation of the said stand(s). The Morrows shall promptly notify the Parks and Recreation Division of any needed repairs. 7. Insurance. The Morrows shall provide proof of worker's compensation as required by Arkansas Statute and liability insurance with a minimum coverage of $300,000 for one person involved in death or injury $500,000 for two or more persons involved in death or injury 8. Bond. The Morrows shall provide a $5,000 bond for performance and payment of items in relation to this contract. 9. Rights and Duties of the Morrows. The Morrows agree to: A. Conduct said business as not to interfere with other uses or activities on the property. B. Open and staff the concession stand anytime the City has scheduled activities, unless otherwise stipulated by the Parks and Recreation Division staff. C. Open each day, at least fifteen (15) minutes prior to the first scheduled game, and shall remain open until the last game has concluded, unless otherwise stipulated by the Parks and Recreation Division staff. City of Fayetteville, AR Concession Services Page 2 of 4 D. Comply with all local, state and federal laws, rules, regulations, orders, guidelines, and/or directions, including, but not limited to, sales tax, HMR tax, payroll tax and the Arkansas Department of Health guidelines regarding food preparation. E. Maintain, protect, and secure the concession building, equipment and leased premises. F. The Morrows are responsible for replacing concession equipment if equipment is damaged beyond normal wear. City equipment cannot be loaned or removed from the park premises without permission from Park staff. An equipment inventory is attached hereto. G. Clean premises daily of all debris. H. Surrender leased premises at the end of each term in the same condition (except for normal wear) as received, including, but not limited to removal of all refuse. I. Leased premises must be cleaned and returned to Fayetteville Parks & recreation within five working days after the last event per location. All items remaining after five days will be considered the property of Fayetteville Parks and Recreation. J. Not employ any persons with a felony conviction, child safety, child abuse, or any child related charges who would be associated with this awarded contract. 10. Rights and Duties of the City. The City shall: A. Provide and pay for the water and electrical service. B. In its sole discretion, replace depreciated concession equipment that is no longer usable. C. Have the right to inspect the stand at any reasonable time during the term of the agreement D. Have the right to screen for felony convictions by Fayetteville Police Department. E. Have the right to permit food trucks and/or mobile vendors to sell food and beverages in parks served by the Morrows. 11. Default/Termination. If the Morrows defaults in the payment of rent, or if it violates any other covenants of this agreement, the City may terminate this contract, and the City may immediately enter and retake possession of the concession stands. In the event that the Morrows should default in the prompt payment City of Fayetteville, AR Concession Services Page 3 of 4 or performance of any obligations as set forth herein, and in the event that it should become necessary for City to collect any past due payments or to enforce the other obligations of the Morrows as set forth herein, by suit or otherwise, City shall be entitled (in addition to all other remedies to which it is entitled) to recover the costs and expenses of litigation. This contract may be canceled by either party with a 30 day written notice. 12. Miscellaneous. A. Venue and jurisdiction for this contract shall be in Washington County, Arkansas. B. The Morrows shall not sublet or assign this agreement. C. This agreement may be amended only upon mutual written agreement signed by all parties. IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS STATED ABOVE, James Morrow and Jewel Morrow, in their individual capacities, and the City sign below. WITNESS OUR HANDS THIS DAY OF ��'�+ V 2017. JAMES MORROW, an individual: Date: 21 Z 1! JEWEL MORROW, an individual: Date: d eAr l Business Address �� 7 a-7 3o City, State & Zip ode City of Fayetteville, AR Concession Services Page 4 of 4 FAYETTEVILLE, ATTEST: + 1{1111Ii11►I Sondra Smith, City Clerk -;l1 .;��'�,, FAYETTEVILLE.;� February 10, 2017 John Crow Recreation Superintendent City of Fayetteville Parks and Recreation Department Fayetteville, AR Dear Mr. Crow: Thank you for taking the time to meet with my husband, James, and me Monday. We appreciate having the opportunity to talk with you regarding the concession services for the City of Fayetteville Parks and Recreation department and to learn about the direction the City would like to see it go. As we discussed, we are submitting a proposal for James and I (2Morrow Enterprises) to operate the concession stands in the various locations as a third party vendor. The intent of our proposal is to operate these concessions per the guidelines set forth in the RFP and based on the time frames provided by the Parks and Recreation staff. The following pages will outline our business strategy, our experience, and our plan for the upcoming sports season. We look forward to partnering with the City of Fayetteville Parks and Recreation Department to have a successful and profitable year. Respectfully, ,h Jknes and Jewel Morrow ZVosvww Essterpra"s 1) Business Strategy: The purpose of the business is to operate the concession services at each of the locations outlined by the Parks and Recreation Department. The intent is to operate them in such a way as to exceed the expectations of the city. We will do this in a variety of ways, but I will outline three in this proposal: product, price, and promotion. a) Product: We will offer the standard variety of typical concession foods at all locations (bottled water and soda, candy bars, bubble gum, sunflower seeds, hot dogs, and nachos). We will tailor some products per location based on the market and times. For example; for morning soccer games we will offer coffee and hot cocoa with a variety of pastry foods in addition to the regular items, for adult evening softball games we will offer a variety of protein bars, healthier snacks, and energy drinks, and for the swimming pool we will offer plenty of candy and popsicle ice cream items. Our intention is to solicit feedback from the customer and respond to that feedback by making menu changes as we are able and still offer quality at an affordable price. b) Price: Our intention for pricing is to keep the same overall pricing scheme as used in the past. a. Bottled Drinks - $2.00 b. Energy Drinks - $3.00 c. Hot Cocoa and Coffee - $1.00 d. Candy bars, pastries, and chips - $1.00 e. Suckers and Taffy - $.25 f. Seeds and nuts - $.75 g. Bubble gum - $.05 h. Hot dogs, pizza slice, and nachos - $2.00 Our plan is offer a couple of different combos that would combine food, drink, chips, and candy for one price that will be less than if they were purchased individually. c) Promotion: The most important part of any business is marketing and promotion. All patrons to the parks will assume there will be a concession stand and that it will be the same as it always has been. We will provide information about who we are and what we offer with signage and a Facebook presence. We will offer some convenience options such as pre -ordering and text ordering. We will also offer discounts for umpires and scorekeepers and weekly discount promotions. a. Information: With today's health conscious person it important to provide nutritional information on all products sold. We will have nutritional information on hand for all products as well as information about who we are and what we offer. b. Convenience: We know the trend today is toward technology and convenience. We will offer options for placing your order to be ready when you get to the park, options for texting your order to be delivered to the dugout, weekly promotions (i.e. dollar dog night or buy one hot dog and get the second half off), and Facebook promotions (i.e. mention you saw us on Facebook and get $.25 off your order of $1.00 or more). 2) Experience: Jewel brings a wealth of concession knowledge to the table. She has 20 years of experience working with concession companies such as Swanson Corporation and Sodexo, the concessionaires for the University of Arkansas Athletic Department. She has a bachelor's degree in Accounting and an MBA. She has over 20 years of experience in Accounting and Management. She is currently the Chief Financial Officer for a local non-profit. She is familiar with profit margins, product cost, and product movement. She has extensive experience preparing profit/loss reports, cash flow reports, and balance sheets for multiple agencies. She intends to provide the city with the level of detail they would like. The intention is to provide monthly detailed sales information by location and provide quarterly detailed reports of the items that are selling and those that are not by location. It is important to manage inventory and minimize product waste. The main area a company tends to lose control is in product waste. For example, on a night where there are only two games scheduled, you wouldn't cook the same number of hot dogs you would on a night there were four games. You end up throwing most of them away. In addition to product waste, it is important to manage labor costs and products costs. It is important always know your product costs as well as your labor so that you can know where your break-even point is. We will manage all of these by keeping detailed inventory counts and balancing money collected based on those inventory counts. This will allow us to identify excess waste and possible shrinkage. We will offer products that are profitable and popular. We will attempt to introduce some new items at times as a trial to test them. We have seen the historical sales numbers and our intention is to exceed these numbers. If we aim to exceed, we will meet the standards and expectations. In addition, we propose to pay the city 10% of gross sales comparable to the percentage the concession companies have done in the past. We will remit it monthly with our sales reports. In conclusion, both of us are hard-working and customer service oriented. It is important that we provide a good product with a smile and a friendly attitude. We will go out of our way to make this an enjoyable experience. We both love sports and people. Our intention is to run an honest, customer service oriented, and successful business operating under the name of 2Morrow Enterprises. We look forward to the opportunity to partner with the City in this venture. James and Jewel Morrow