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HomeMy WebLinkAboutMinutes - 2014.02.06 - 36787 February 6, 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 MEM BERS PRESENT: Jim Runestad, Robert Gosselin, Gary McGillivray, Mike Bosnic, Bill Dwyer, Philip Weipert, David Woodward COMMITTEE MEMBERS ABSENT WITH NOTICE: Marcia Gershenson OTHERS PRESENT: CORPORATION COUNSEL Jody Hall, Assistant Counsel 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 PUBLIC COMMENT None. APPROVAL OF THE MINUTES Dwyer moved approval of the minutes of January 28, 2014 as printed. Supported by McGillivray. Motion carried on a voice vote. APPROVAL OF THE AGENDA Dwyer moved approval of the agenda as printed. Suppor ted by McGillivray. Motion carried on a voice vote. AGENDA ITEMS 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 February 6, 2014 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 SERV ICES 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 Addiso n 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. This item was postponed by the Committee at its previous meeting of January 28, 2014 Dwyer moved to recommend approval of the attached suggested resolution. Supported by Bosnic. Dwyer moved to amend the resolution to insert as the first BE IT FURTHER RESOLVED paragraph the following. BE IT FURTHER RESOLVED that upon affirmation of this contract, that the Oakland County Board of Commissioners requires that the Parks and Recreation Commission immediately seek outsourcing options for the two remaining banquet facilities in conjunction with the golf course facilities in order to bring forward an additional contract proposal to the Oakland County Board of Commissioners. Supported by Weipert. Motion to amend the resolution carried unanimously on a roll call vote with Gershenson absent. Woodward moved to amend the contract, Section 2.2, to insert “Cancellation or continuation of the contract once a default occurs requires approval from the Board of Commissioners” as the second sentence (compiled as follows). The County may terminate and/or cancel this Contract (or any part thereof) at any time upon three hundred and sixty-five days (365) days written notice to the Contractor, if Contractor defaults in any obligation contained herein and within the three hundred and sixty -five days (365) notice period Contractor failed or did not attempt to cure such default. Cancellation or continuation of the contract once a default occurs requires approval from the Board of Commissioners. The effective date for termination or cancellation shall be clearly stated in the written notice. Contractor’s failure to obtain/receive four (4) million dollars in Gross Receipts/Revenues from the Facilities at the end of each Fiscal Year of this Contract, commencing with the 2021 Fiscal Year, shall b e considered a default under this Contract. Supported by McGillivray . Motion to amend the contract carried unanimously on a roll call vote with Gershenson absent. In response to Commissioner Woodward’s questions, Mr. Stencil explained that OM has not been responsible for any capital improvements to facilities since prior to the 2006 contract and would not be responsible for those in the future. All building-related capital improvement projects (CIP) will be handled through the PRC Fund. The equipment maintenance fee is a new stream of revenue and the PRC and OM will each be responsible for their own equipment repair and replacement. The Equipment Fund will be purely for things such as dish washers, refrigerators, etc. Planning & Building Committee Page 3 February 6, 2014 Commissioner Woodward stated that a key reason for the contract amendment he had offered was because there is a sizeable increase projected in the revenue stream that gives him pause to see it going up that fast in this industry and so to add the Board of Commissioners into the contract level of engagement should the revenue not line up with projections allows them to be involved in re -evaluation. Ms. Hall explained that the large increase in revenue takes into account the future negotiated 20% increase in revenue the PRC will capture because the contract includes a service charge passed on to all customers (20% off the top) and at Addison Oaks alcohol will now be included in revenue which in the past it was not. Commissioner McGillivray thanked PRC staff, Ms. Hall and everyone on th e PRC Food and Beverage Committee for their work. The report provided yesterday to commissioners shows an end to wedding subsidies. He is still concerned about OM taking the top two facilities but is glad to see that PRC is moving forward with review of operations for the other facilities. Motion on the amended resolution with amended contract carried unanimously on a roll call vote with Gershenson absent. OTHER BUSINESS/ADJOURNMENT There being no further business to come before the Commi ttee, the meeting adjourned at 9:47 a.m. ______________________________________ _____________________________________ Helen Hanger, Sr. Committee Coordinator Jim VerPloeg, Administrative Director NOTE: The foregoing minutes are subject to Committee approval.