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HomeMy WebLinkAboutMinutes - 2014.01.28 - 36781 January 28, 2014 Chairperson Runestad called the meeting to order at 9:35 a.m. in Committee Room A of the Courthouse Auditorium Wing, County S ervice Center, in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT: Jim Runestad, Robert Gosselin, Gary McGillivray, Mike Bosnic, Bill Dwyer, Philip Weipert, Marcia Gershenson, David Woodward COMMITTEE MEMBERS ABSENT : None. OTHERS PRESENT: CORPORATION COUNSEL Jody Hal, Assistant Counsel FACILITIES MANAGEMENT Art Holdsworth, Director Paul Zachos, Property Specialist PARKS AND RECREATION Dan Stencil, Executive Officer Phil Castonia, Business Development Rep. PURCHASING Scott Guzzy, Chief BOARD OF COMMISSIONERS Jim VerPloeg, Administrative Director Sheryl Mitchell, Senior Analyst Helen Hanger, Sr. Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Runestad led the Pledge of Allegiance. PUBLIC COMMENT None. APPROVAL OF THE MINUTES Gosselin moved approval of the minutes of January 14, 2014 as printed. Supported by McGillivray. Motion carried on a voice vote. OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 NORTH TELEGRAPH ROAD, PONTIAC, MICHIGAN 48341-0470 Telephone: (248) 858-0100 FAX: (248) 858-1572 PLANNING AND BUILDING COMMITTEE Mike Bosnic Bill Dwyer Philip Weipert Marcia Gershenson David Woodward JIM RUNESTAD Chairperson ROBERT GOSSELIN Vice Chairperson GARY MCGILLIVRAY Minority Vice Chairperson Planning & Building Committee Page 2 January 28, 2014 APPROVAL OF THE AGENDA McGillivray moved approval of the agenda as printed. Supported by Dwyer. Motion carried on a voice vote. AGENDA ITEMS 1. OAKLAND COUNTY PARKS AND RECREATION COMMISSION – REQUEST FOR APPROVAL TO ENTER INTO A LICENSE AGREEMENT AND PROFESSIONAL SERVICES CONTRACT WITH OAK MANAGEMENT FOR FOOD AND BEVERAGE SERVICES The Oakland County Parks and Recreation Commission (PRC) is requesting approval to enter into a License Agree ment and Professional Services C ontract with Oak Management (OM) to provide food and beverage services for the continued operation of Addison Oaks Conference Center and the Glen Oaks Conference Center and Grill Room for a ten -year period beginning January 1, 2016, with an optional five - year extension at the Oakland County Parks and Recreation Commission’s sole discretion. In April 2013, the PRC formed a Food and Beverage Committee comprised of key PRC staff , commissioners and representatives of County Purchasing, Health and Corporation Counsel to design a Request for Proposal, develop evaluation criteria and accept bids to provide food and beverage services at park facilities. Recommendations for Lyon Oaks and White Lake Oaks are being developed. Commissioner McGillivray expressed concerns about allowing OM to operate only the profitable facilities and the PRC subsidy of the banquet facilities , including weddings. Mr. Stencil indicated that staff had reached out to a number of catering oper ations and received only three responses to the bid request. The PRC is currently going through its portfolio benchmarking the services it feels should not be subsidized. The proposed contract is significantly more pro parks than the current contract. The number of payments to PRC are fixed and guaranteed up front and responsibility for expenses is spread out between the PRC and the vendor. He stated that much of the banquet facilities subsidy includes capital improvements. The PRC has the opportunity to get Addison Oaks and Glen Oaks up and running immediately. Based on the bids received, one responder would not be able to get all four facilities up and running in one sweep. For Lyon Oaks and White Lake Oaks the PRC is considering a program similar to that used by other agencies which provide a selection of rental categories. The PRC would get the rental fee up front and a percent of gross. Mr. Castonia explained that the contract can be reviewed annually , and at 5 year intervals to determine whether to seek bids again and the contract contains a termination clause if needed. It was the PRC’s decision not to give OM all four facilities, which would have increased the subsidy. This contract is close to break even for the PRC , depending on 2016 sales. Ms. Hall added that risk factors were a consideration as well such as liability, liquor license, etc. Mr. Castonia explained that all four facilities were put out for bid. Vendors could choose whether to bid them as a package or individually. OM was not the lowest bidder in regards to revenue but scoring included not just the minimum monthly payment required but food quality, experience, service, etc. The third vendor was not equipped to handle the volume of these facilities. Kosch is the current vendor for concessions and there have been a number of issues with service and effective response to PRC’s concerns and they scored low. Based on negotiations the end numbers coming to the table were better than what Kosch had presented. Kosch has served notice to exercise its one-year termination option on Planning & Building Committee Page 3 January 28, 2014 wave pool concessions. Mr. Guzzy reported that Purchasing used the Michigan Bid System and sent out 400 -500 emails to attract bids. The low number of responses was probably due to the minimum pa yment commitment required. Commissioner Woodward stated that the PRC is close to eliminating the subsidy but reiterated Commissioner McGillivray’s concerns and stated that public vs. private enterprise is always a challenge. The only justification to subsidize would be to ensure that the general public has access to these recreational opportunities . He asked what the timeline was to figure out what will be done with the other facilities. Mr. Stencil explained that the PRC is within 6-12 months of completing its review. One issue mentioned today was access to both Addison Oaks and G len Oaks which are historical structures. A public access piece is included in the contract for the PRC to schedule historical and cultural events . Regarding campgrounds and water park concessions, the PRC has retained a food and beverage consultant to identify ways to improve profitability for the parks system. Commissioner Woodward stated that taking 6-12 months to explore options for these other two facilities would help but he was concerned that since other vendors were not in place for these operations the PRC subsidy would increase. He suggested that before moving forward with a 10 -15 year commitment everything be fully explored including how not to subsidize wed dings and the banquet facilities. Bosnic moved to recommend approval of the attached suggested resolution. Supported by Gosselin. Woodward moved to postpone the resolution until the next meeting on February 25, 2014. Supported by Dwyer. Motion carried on a roll call vote with Gosselin, Bosnic and Weipert voting no. Commissioner Woodward asked to have one commissioner from each party work with Mr. Stencil. Chairman Runestad assigned this task to Commissioners Woodward and Dwyer.. 2. DEPARTMENT OF FACILITIES MANAGEMENT – APPROVAL OF REAL ESTATE AGENCY LISTING AGREEMENT AND SALE PRICE REDUCTION TO ASSIST WITH THE SALE OF THE WEST OAKLAND OFFICE BUILDING IN WALLED LAKE, MICHIGAN Facilities Management is requesting authorization to enter into a list ing agreement with Newmark Grubb Knight Frank to market the West Oakland Office Building property at 1010 East West Maple, Walled Lake, Michigan. Newmark Grubb was selected with assistance by Purchasing through the competitive bid and selection process. Based on comparable property values, the property will be listed for $695,000. Gosselin moved to recommend approval of the attached suggested resolution. Supported by McGillivray. Motion carried unanimously on a roll call vote. McGillivray moved that the meeting be closed for the purpose of discussing the possible purchase or lease of real property. Supported by Weipert. Planning & Building Committee Page 4 January 28, 2014 Motion carried unanimously on a roll call vote. THE COMMITTEE WENT INTO CLOSED SESSION AT 10:20 a.m. THE COMMITTEE CAME BACK I NTO OPEN SESSION AT 10:25 a.m. Weipert moved that Facilities Management be authorized to proceed in accordance with the directive discussed in Closed Session. Supported by Gosselin. Motion carried unanimously on a roll call vote. COMMUNICATIONS A. Oakland County Building Authority Minutes – 12/11/13 B. Letter of 1/13/14 from County Executive Appointing Brownfield Redevelopment Authority Board of Directors Gosselin moved to receive and file the communications. Supported by Dwyer. Motion carried on a voice vote. OTHER BUSINESS/ADJOURNMENT There being no further business to come before the Commi ttee, the meeting adjourned at 10:27 a.m. ______________________________________ _____________________________________ Helen Hanger, Sr. Committee Coordinator Jim VerPloeg, Administrative Director NOTE: The foregoing minutes are subject to Committee approval.