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HomeMy WebLinkAboutAgendas/Packets - 1973.12.14 - 39569oakland county service center R. Eric Reickel Director PARKS AND RECREATION COMMISSION December 11, 1973 2800 watkins lake road pontiac, michigan 48054 To the Members of the PARKS AND RECREATION COMMISSION Oakland County, Michigan Ladies and Gentlemen: A meeting has been called of the PARKS AND RECREATION COMMISSION as follows: TIME . . . . . . o . o . . . 9:30 a.m. Friday, December 14, 1973 PLACE . . . . . . . . o o . Parks & Recreation Office 2800 Watkins Lake Road Pontiac, Michigan PURPOSE . . . . . . . . . . Regular Meeting The meeting is called in accordance with authorization of Frances P. Clark, Chairperson of the Parks and Recreation Commissions. Cordially, R. Eric Reickel ro Director RER/kj • 338-6196 Frances Clark Chairperson Richard R. Wilcox Vice -Chairman Henry A. Schiffer Secretary • Emil Jawors George Kuhn William L. Mainland Roger H. Marz Ted McCullough, Jr. William M. Richards E. Frank Richardson Addison - Oaks ° Groveland - Oaks • Independence - Oaks ° Springfield - Oaks • Waterford - Oaks • White Lake - Oaks OAKLAND COUNTY PARKS AND RECREATION COMMISSION December 14, 1973 AGENDA 1. Call Meeting to Order. 2. Roll Call. 3. Approval of Minutes of November 30, 1973. 4. Waterford -Oaks Pool Bids. 15. Mobile Recreation Vehicle Bids. 6. Groveland-Oaks Master Plan. 7. Parks & Recreation Commission Audit. 8. Agreement - Springfield Y.A.C. 1974 Rodeo and Oakland County A's Club. 9. Food & Beverage Service Draft Documents. 10. 1974 Budget Proposal 11. Unfinished Business. 12. New Business. 13. Adjourn, NOTE: Next regular meeting scheduled for December 28, 19730 ITEM # 4 WATERFORD-OAKS POOL BIDS The architect for Swanson Associates will be present to submit to the Commission the overall evaluation of the swimming pool bids that were received by the Commission on Thursday, November 29, 1973. It is expected, at this time, that the architect will have recommendations as to the disposition of this project. ITEM #5 MOBILE RECREATION BIDS We will be in a position to make recommendations for the purchase of the additional mobile recreation equipment as approved by the Commission. The bids are being compiled at present and will be available for approval from the Commission at the Friday meeting. The vehicles to be approved will be a Swim -Mobile, Puppet -Mobile, Movie -Mobile and Fashion -Mobile. ITEM # 6 GROVELAND-OAKS MASTER PLAN Proposals have been received from the firms of Anderson/Lesniak Associates, Inc. and Ellis, Arndt and Truesdell, Inc., for the purpose of coming up with a plan that will adequately analyze the present development of the park and evaluate it in relationship to a long range plan. In order to do this, it will be necessary to bring an experienced firm in so that a thorough analysis of the park can be carried out. I reviewed this with both firms and it is agreed upon that the lump sum figure of $8800.00, including incidental costs, that was proposed by AndersonAesniak, Associates, Inc., was a fair estimate and that an agreement should be drawn up with this firm so they may proceed with the proper analysis and final recommendation for an overall master plan of Groveland-Oaks be accepted. ITEM # 7 PARKS AND RECREATION COMMISSION AUDIT A total of four proposals have been submitted to this office for the purpose of performing an audit of the Oakland County Parks and Recreation Commission books for the year ending December, 1973, as well as a preliminary investigation of previous years financial activities. Three firms were invited to submit proposals: Plante and Moran of Southfield; Ernst & Ernst of Detroit; Arthur Young & Company, Bloomfield Hills and a fourth company, Karpus, Clark & Company of Detroit, also requested permission to submit a proposal. These proposals were reviewed by Commission Staff and it was determined that the services offered by all were similar as well as the estimated price range. The cost of the proposals were estimated as follows: Plante & Moran $ 7,200.00 Ernst & Ernst $8,000.00-101000.00 Arthur Young & Co. 10,750.00 Karpus, Clark & Co. 109250.00 It is the general opinion of staff that the expense of this project is equal and there would be no advantage to accepting the proposals on a low bid basis because in the long run, it is assumed that it would cost the same no matter who the Commission contracted with. The best criteria to use would be to recommend the firm who has worked close- ly in a similar field of Parks and Recreation. It seems as though all firms have had the opportunity to do some type of governmental accounting and auditing, but the one firm that has extensive experience with Parks and Recreation is Ernst & Ernst who has been employed by the Huron -Clinton Metropolitan Authority for many years. page 2-Parks & Recreation Commission Audit Taking this into consideration, staff would recommend Ernst and Ernst to do the Commission's 1973 Audit. A copy of each proposal is inclosed for review so you may understand the criteria that staff used in determining the recommended firm. FRANK S. MORAN, CPA LYLE E. ALGATE, CPA BRUCE M. BEREND, CPA Louis E. BOISVERT, CPA ROBERT J. CLARKE, CPA BRUCE CORRELL, CPA TH OMAS D. DEMERY, CPA JAMES A. DOWSLEY, CPA JOSEPH J. GERBER, CPA DON B. GILL, CPA GERALD W. HEPP, CPA WILLIAM C. HERRICK, CPA KENNETH J. KUNKEL, CPA WILLIAM L. MATTHEWS, CPA DOUGLAS M. MORRISON, CPA EDWARD M. PARKS, CPA RICHARD L. PIFER, CPA RICHARD H. SIMONIAN, CPA JOSEPH W. WENTRACK, CPA PAUL P. YODER, CPA PLANTE & MOPAN Certdt'ed f ublic Accountants P. O. BOX 30Z CENTRAL PARR PLAZA BUILDING 226211 CENTRAL PARK BOULEVARD SOUTHFIELD, MICHIGAN 48OZ6 313- 352� 2500 November 26, 1973 WILLIAM F. CLARK JAMES H. KELLER IRENE W. KRAUSE ROBERT J. PETZ ELORION PLANTE, CPA 1694-1971 JOHN I. NASLUND, CPA 1927-1973 RALPH R. GENTER, CPA MEMBER OF THE AMERICAN GROUP OF C.P.A. FIRMS WITH OFFICES IN PRINCIPAL CITIES Mr. R. Eric Reickel, Director County of Oakland Parks and Recreation Commission 2800 Watkins Lake Road Pontiac, Michigan 48054 Dear Sir: We appreciate the opportunity to discuss with you the proposed audit of the Parks and Recreation Commission, and we also appreciate the courtesy and information furnished us by Mrs. McCormick and Mr. Galloway. We are pleased that you have given us an opportunity to make a proposal regarding your auditing requirements. Our proposal consists of a brief description of our firm, an outline of auxiliary services available, our proposal for the Parks and Recreation Commission audit and an estimate of the audit fee, as well as a summary of our firm's experience relating to municipal and governmental auditing. AUDIT DEPARTMENT Since its inception over 40 years ago, our firm has had varied and extensive experience in auditing. Our firm is the largest local CPA firm in the State of Michigan and currently ranks 35th in the United States in size. Presently our staff numbers approximately 125 people, 59 of whom are Certified Public Accountants. Many of our partners and staff have had experience in city, township and other governmental audit engagements. We are currently engaged as auditors by 15 separ- ate municipalities throughout the State and numerous other organiza- tions using fund accounting, including 22 school districts. This clientele makes our firm the leading municipal accounting firm in the State of Michigan. It is our policy to assign qualified experienced personnel to each engagement. We are prepared to furnish assistance in the preparation of budgets, projections, cost analysis and other financial reports. We also supplement audit reports with a separate memorandum of com- ments on matters of interest noted in the course of the engagements. 'Mr. R. Eric Reickel - 2 - November 26, 1973 DATA PROCESSING Our Systems Service Division is composed of professional employees whose backgrounds cover a broad range of systems work, including such areas as computer software design and creation, accounting design and installation, operations research, small machine consult- ing, forms design and control, manual systems, work measurement, policy and procedure manual programs, contract programming, computer operations and feasibility studies. PERSONNEL DEPARTMENT Our staff of clinical psychologists assists clients in recruiting, evaluating and selecting personnel. In addition, we have performed the following services for municipalities: a. Development of organization charts implemented by administrative manuals b. Careful systematic reviews of existing salary struc- tures compared to related job responsibilities C. Review of personnel forms, records and procedures d. Development of job description and job function manuals e. Development of job standards and performance appraisal systems PERSONNEL ASSIGNED Because of our large municipal clientele, we are able to furnish experienced municipal personnel on each examination. I would be the primary partner and would participate actively in the audit. Mr. Kunkel would be the secondary partner who would also be available for consultation. The audit associate would be Mr. Gauthier, and the audit senior would be Mr. Opipari. Working with them would be an assistant with training in municipal accounting. EXPERIENCE The enclosed list will give you some familiarity with our municipal clients. We will provide you with the names of persons you may con- tact at these municipalities regarding our work and services if you so desire. YLANTIS & MORAN Mr. R. Eric Reickel - 3 - November 26, 1973 AUDIT PROPOSAL An audit of the financial activities for the year ended December 31, 1973, in accordance with generally accepted auditing standards, would include such tests of the accounting records and such other auditing procedures as we considered necessary. Our auditing work would be conducted during both an interim period and at the end of the year. In addition to reporting on your financial statements, as a part of our annual examination we would review your accounting procedures and system of internal control. We would furnish you a memorandum describing any improvements our review might suggest. It would be our plan to include in this memorandum your request for recommenda- tions for efficient and effective management of commission funds and recommendations for bonding personnel. Our recommendations would correlate with the Oakland County accounting system. Our estimate of the year-end audit is based on the hours worked on the audit and the preparation of the various reports at our standard billing rates. We estimate the cost of the year-end audit to be $4,700. On the same basis, we anticipate that the review of the Commission activities for prior years would be approximately $2,500. The specific requirements of this work should be discussed because, for purposes of preparing this estimate, we have limited our review to evidence of adequate control of purchases of land and cost of con- struction. These costs represent the major expenditures during the formative years of the Commission. We shall be pleased to discuss with you, at your convenience, ways in which we may serve you. Very truly yours, PLANTE & MORAN i Robe J. Clarke RJC:emp Enclosure YLAPiTr & MORAN MUNICIPAL CLIENTS OF PLANTE & MORAN, CPA's Allen Park Public Schools City of Dearborn Heights Almont Community Schools City of Ecorse Building Authority Berkley City Schools City of Farmington Bloomfield Hills Schools Farmington City and Township Dryden Community Schools District Library Farmington Public Schools City of Farmington Hills Garden City Schools City of Garden City Huron Valley Schools City of Highland Park Lamphere Public Schools Township of Highland Lapeer County Intermediate Village of Milford School Township of Milford Lapeer Public Schools City of Mount Clemens Lincoln Park Schools Township of Redford Northville Public Schools City of River Rouge Oakland Schools (Oakland City of Westland County Intermediate) City of Wixom Riverview Community Schools Southfield Public Schools South Lyon Community Schools Walled Lake Schools Waterford Schools Wayne Westland Schools West Bloomfield Schools Westwood School District 11/26/73 PEANTH & MORAN KARPUS, CLARK & COMPANY CERTIFIED PUBLIC ACCOUNTANTS 417 PENOBSCOT BUILDING DETROIT, MICHIGAN 46226 WOODWARD 1-4S60 EUGENE S. KARPUS. C.P.A. WILLIS G. CLARK, G.P.A. STEPHEN E. KARPUS, C.P.A. Pauline McCormick Administrative Assistant County of Oakland Parks and Recreation Commission 2800 Watkins Lake Road Pontiac, Michigan 48054 Dear Ms. McCormick: November 26, 1973 As requested, we are setting forth (1) the services that we propose to perform as independent certified public accountants in the audit and examination of the accounts, records, bonding, and procedures of the Parks and Recreation Commission's activities; and (2) recommendations for effective management reporting of commission funds; and (3) our proposal regarding the fee for such services. Audit of Commission Activities for Years 1967-1973 Our examination will be made in accordance with generally accepted auditing standards, and will include tests of the account- ing records and such other audit procedures as we consider necessary to enable us to render an opinion on the fairness of your financial statements. It is not contemplated that we will make a comprehensive detailed examination of transactions nor that we will necessarily discover fraud should any exist. We will, however, inform you promptly of any findings that appear unusual or abnormal. Our work will include a review and critique of your system of internal con- trols. Confirmation of cash, investments, and receivables. A review and testing of fixed assets and improvements and verification of liabilities and surplus accounts. In addition to the above the individual departmental financial statements will be tested as to control over receipts and proper departmental classification of disbursements. Included in our audit will be a review of insurance coverages including bonding procedures which should be commensurate to exposure of cash at each location. At the conclusion of the audit, we will submit a report for the year ended December 31, 1973 which will include: Our opinion Consolidated Balance Sheet Consolidated Statement of Operating Results Consolidated Statement of Surplus Consolidated Source and Application of Funds -2- Organizational Data and Supplementary Information Departmental Statements of Operations Schedule of Investments Schedule of Insurance Coverages Since the Commission has not had an audit in prior years, much of the audit would relate to prior activities of the Commis- sion. We would begin this work during the first or second week in December and complete it prior to May 1974. Management of Commission's Funds While at your office I had the opportunity to review some of the accounting records and reporting requirements presently used by your staff. Your present accounting and reporting system enables you to compare current operating results with a budget. They appear' to be functioning efficiently and accurately; however, it is our thought that in view of the tremendous increase in transactions incurred during 1972 and 1973 and the aggresive plans yet to be implemented in the future attention should be given to developing as soon as possible more complete and automated monthly accounting reports. It is my opinion that the size of your organization does not render an on site computer installation since the cost would be prohibitive and a drain on operating labor hours. We recommend an outside service center approach. All of your records and current reporting requirements have been packaged to such an extent that the cost is reasonable without any loss of internal control within your organization. That is to say your staff will totally control the input and output to your specifications and provide the following monthly reports. (1) A detailed general ledger showing by each voucher the account distribution assigned by your staff and the payee name and amount, similar to what is now done by hand. (2) A consolidated balance sheet and depart- mental balance sheets, monthly, not yearly as now done. (3) A detailed comparison of actual results to budgeted amounts with variances and per- centages automatically calculated as a by-product of the general ledger. Once installed such a reporting system provides responsi- bility in accounting, with related budgeting and control information, and permits the use of summaries and exception reporting so as to pinpoint areas where variances from the plan occurred, and permits prompt consideration of possible corrective measures. It is our feeling that such a system would reduce your staff input by approxi- mately 40%. Such a time savings would allow them the opportunity to implement corrective measures for budget variances as discovered by the reporting system. -3- From the information I gathered there would be no change necessary in documents currently used, in that, once the voucher is prepared and coded your staff is through and a copy of such voucher would be sent monthly for processing, updating and prepara- tion of financial statements and budget analysis. Such data would be handled by the mails and in all of our current installations the completed reports are on your desk between the 8th and 15th of the month depending on when sent. It is our practice to present recommendations orally with enough written material to facilitate understanding and instal- lation. We would present a plan outlining steps, responsibilities, sequence, and timing for installation and then continue monthly assistance for improvements, and supervision. It is desirable and more economical that installation, for the most part, be done by your personnel with our consultation and guidance. This approach provides your personnel with a thorough understanding of the system changes and objectives and would enable them to make most future changes or refinements in a manner which would conform with the overall system. Accounting Fee As our fee for such services, we would charge our regular per diem rates plus our out-of-pocket expenses, using the following rates: Clerical and typing $ 8 per hour Staff accountants 12 11" Senior accountants 15 " Partners 30 " Although we cannot, of course, determine very accurately how much time is needed to do this work since this is our first engagement for the commission and we have no basis for the extent of participation of your staff in the preparation of needed schedules and analysis we will provide an estimate of costs. It is my suggestion since each individual operating entity is to be self-sufficient and pay its own way that we be allowed to bill each entity separately, and accordingly I have prepared the following estimates. BEIM Consolidated Statement of Operations Administration Independence -Oaks Springfield -Oaks - Golf Course Springfield -Oaks - Mill Pond Springfield -Oaks - Youth Activity Center Waterford -Oaks White Lake -Oaks Groveland-Oaks Addison -Oaks - Park Addison -Oaks - Conference Center Consolidated Food Service Division Addison Conference Center - Food Service Springfield -Oaks - Food Service Groveland-Oaks - Food Service Addison Park - Food Service Springfield Y.A.C. - Food Service Waterford Food Service Division White Lake - Food Service Monthly Statements Audit and Budgets xxx xxx 1,000 50 1,200 - 1,000 40 100 10 400 30 400 10 1,000 60 1,000 70 1,000 50 7,500 xxx xxx 300 80 300 30 300 40 300 20 300 30 300 30 300 100 9,600 650 -5- I wish to take this opportunity of thanking you for considering us and assuring you of our desire to perform the required service. We would be pleased to furnish any additional informa- tion you may require. Very truly yours, Certified Public Accountants ITEM #8 SPRINGFIELD-OAKS - 1974 RODEO AND OAKLAND COUNTY A'S CLUB (MODEL A'S) CAR SHOW The above mentioned activities are scheduled for 1974 at the Youth Activities Center and must be bound by agreement. These two agreements have been reviewed by the Civil Counsel and have been approved as to form. It is expected that both of these activities will provide a great amount of activity at the Y.A.C. as well as generate revenues. As part of the agreement with the Model A's Club, a restored Model A will be made available as a door prize. Estimated cost is between $1000 and $1200. The advance sale of tickets by the Club is expected to offset the cost of this door prize which must be purchased by the Commission as part of the Agreement. Estimated gross revenues - $6,500.00; Total estimated expenses - $3,800.00; Total net revenue - $2,750.00. More details will be made available at the Commission meeting if there should be further questions. The agreement with the Rodeo reflects very little change from the agreement the Commission approved in 1973. A greater return to the Commission is expected because of the notoriety the Rodeo has received as well as promotional experience should encourage greater sale of tickets. ITEM #9 FOOD AND BEVERAGE SERVICE DRAFT DOCUMENTS The information that is necessary in order for the Commission to advertise for qualified bidders is enclosed. It would be appreciated if Commission would look at these documents very closely for any additions or corrections so we may proceed in attempting to come up with an operator for the Commissionts Food and Beverage facilities. The following documents are enclosed: 1. Advertisement for Invitation to Submit a Letter of In- tent for the Leasing of and/or Catering Certain Restaurant and Banquet Facilities in the Oakland County Parks and Recreation system. 2. Letter of Intent for the Purpose of Leasing White Lake - Oaks Clubhouse, Springfield -Oaks Clubhouse and Addison -Oaks Conference Center. Along with this Letter of Intent is a Quali- fication of Bidder form that is the most important item as this will determine the people that you will want to be inviting to submit proposals. 3. A synopsis of the five areas that the bids will be taken on. I have reviewed these documents with Robert Allen, Civil Counsel, and he found them to be in order. If the Commission concurs, it is requested that permission be granted to advertise for Letters of Intent to be received no later than 1:00 P.M., January 18, 1974. Document #1 PRELIMINARY DRAFT ADVERTISEMENT FOR INVITATION TO SUBMIT A LETTER OF INTENT FOR December 14, 1973 The Oakland County Parks and Recreation Commission is inviting interested parties to submit a Letter of Intent for leasing the food and beverage service at White Lake -Oaks Club- house, 991 Williams Lake Road, Pontiac, Michigan 48054, the Springfield -Oaks Clubhouse and Youth Activities Center, 12450 Andersonville Road, Davisburg, Michigan 48019, Addison -Oaks Conference Center, 1480 West Romeo Road, Oxford, Michigan 48051 and the Waterford -Oaks Activities Center, 2800 Watkins Lake Road, Pontiac, Michigan 48054, for the term of five years commencing March 1, 1974 ending on February 28, 1979. The lease, based on a percentage of the gross receipts derived from the operation of said county property, with a minimum monthly guarantee, subject to the term of lease to be negotiated with the firm chosen by the Oakland County Parks and Recreation Commission and on the terms and conditions contained in the negotiated Lease Agreement, will be received from quali- fied and experienced restaurant operators, until 1 o'clock P.M., E.S.T., on January 18, 1974, by the Director of the Oakland County Parks and Recreation Commission, 2800 Watkins Lake Road, Pontiac, Michigan 48054, and will be thereafter transferred to the Parks and Recreation Commission for the purpose of reviewing Page 2 (Advertisement for Invitation to Submit a Letter of Intent) and evaluating the letters of intent to determine qualified applicants. Once the list is determined, applicants will be called in for individual interviews before the Commission.to present their proposal for the operation of the above restaurant facili- ties and catering in the Oakland County Parks system. Upon request a Qualification of Bidder form and a set of information documents will be made available for the purpose of informing all interested parties on the type of facilities they will be making a proposal on and the past experience of these facilities. This information may be obtained from the Parks and Recreation =Commission office at 2800 Watkins Lake Road, Pontiac, Michigan, 480S4. In selecting the qualified restauranteurs, consideration will be given only tothose bidders who have demonstrated their qualifications to operate a first class restaurant by previous experience in the restaurant business, and the financial back- ground for successful operation of said county property. As soon as it is determined which qualified applicant the Commission selects, a contract will be negotiated. Final con- sideration may not necessarily be determined by the highest responsible bidder but consideration will be given to the bidder's background in the restaurant business and the success that he has received as well as the determination of who could best serve the interests of the county on a day-to-day basis throughout the five year contract agreement. Page 3 (Advertisement for Invitation to Submit a Letter of Intent) The Commission will have the right and privilege to reject all proposals if they do not meet these standards of the Parks and Recreation Commission. A Letter of Intent shall be filed in the office of the Parks and Recreation Commission within the time prescribed, and the letter shall be contained in a sealed envelope, the outside of which whall be marked "Letter of Intent, Lease of Parks and Recreation Commission Restaurants", and shall show the name of the person, firm or corporation making the bid. The Oakland County Parks and Recreation Commission reserves the right to waive any informalities and has the right to reject any or all parties if necessary. R. Eric Reickel, Director As per authority of the Oakland County Parks and Recreation Commission. Document #2 PRELIMINARY DRAFT LETTER OF INTENT FOR THE PURPOSE OF LEASING WHITE LAKE -OAKS CLUBHOUSE, SPRINGFIELD-OAKS'CLUBHOUSE AND ADDISON-OAKS CONFERENCE CENTER. December 14, 1973 TO: The Oakland County Parks and Recreation Commission The undersigned hereby submits a Letter of Intent for the purpose of leasing from the Oakland County Parks and Recreation Commission the property and premises known as the White Lake -Oaks Clubhouse, 991 Williams Lake Road, Pontiac, Michigan 48054, the Springfield -Oaks Clubhouse, 12450 Ander- sonville Road, Davisburg, Michigan 48019, and the Addison -Oaks Conference Center, 1480 West Romeo Road, Oxford, Michigan 48051, as well as catering services to the Springfield -Oaks Youth Activities Center, 12450 Andersonville Road, Davisburg, Michigan 48019 and Waterford -Oaks Activities Center, 2800 Watkins Lake Road, Pontiac, Michigan 48054. It is understood and agreed that the lease shall be for the term of five years, commencing March 1, 1974 and ending February 28, 1979, subject to a lease to be negotiated upon the approval of a qualified restauranteur to be determined by the Parks and Recreation Commission. The lease shall be upon the terms and conditions set forth in the contract documents that will be negotiated in the future. Upon execution of the pro- posed Lease Agreement, the successful bidder shall simultaneously execute a performance bond in an amount to be determined later, Page 2 (Letter of Intent) guaranteeing performance of the terms and provisions of said Lease Agreement during the entire term thereof. It is to be understood that this Lease Agreement will not be transferable to any other party without the approval of the majority of the Parks and Recreation Commission. It shall be further understood that when the final proposal is made on behalf of and no others, on a competetive basis without collusion, and that no other person, firm or corporation has any interest, direct or indirect, in this bid. The undersigned certifies that no county official has any special financial interest, direct or indirect, in the pending proposal or in the lease of said county property to the undersigned or any portion of the profits thereof, and that no promises or inducements have been made or received on behalf of the undersigned in connection with the making of this bid or the leasing of said county property. The undersigned further certifies that the contract documents aforesaid will be carefully examined, and the demised premises and all property connected therewith have been in- spected, and that at no time will misunderstanding in respect thereto be pleaded. The full names and residences of all individuals having any interest in the foregoing Letter of Intent, as principals are as follows: Name Addresses Page 3 (Letter of Intent) In Witness Whereof, the undersigned has caused this bid proposal to be duly executed the day and year first above written. If bidder is an individual: Name: If bidder is a partnership or non -corporate firm: If bidder is a corporation: (Corporate Seal) Attest: ecretary Address: Firm name: BY: Firm Address: Corporation Name: By: title Corporation Address: Sworn and subscribed to before me this day of , 19 Notary Public, (name) at large My commission expires: Page 4 (Letter of Intent) QUALIFICATIONS OF BIDDER (Confidential) 1. Name of Organization (Specify type - whether an individual, partnership, corporation or other legal entity) 2. Business Address: 3. If a Corporation - Give names and address of corporate officers and amount of stock owned by each, either legally or equitably, and anme and address of each stockholder. Also indicate when and where incorporated and if qualified to do business in State of Michigan. Give names and addresses of Board of Directors. List name and address of all persons having financial interest, direct or indirect, in corporation. 4. If a Partnership or other non -Corporate Entity - Give names and addresses of all partners or all persons having any financial interest, direct or indirect, in organization and specify the nature of such interest. S. State the number of years that the organization, under its present name, has been engaged in the restaurant business. 6. State the experience qualifications and background of all persons having management control of the organization in the restaurant business. 7. List chronologically the restaurants or similar businesses presently or heretofore operated by the organization, or by persons having management control of the organization. 8. List all pertinent information indicating the ability of the organization and its management personnel to operate on the demised premises a successful restaurant of first class character and quality. CONDENSED NET WORTH STATEMENT Date: ASSETS Cash Stocks and Bonds Notes Receivable Accounts Receivable Accrued Interest Real Estate Inventory Equipment (depreciated value) Furniture and Fixtures Other Assets LIABILITIES Notes Payable Accounts Payable Mortgages Payable Page S (Letter of Intent) Other Liabilities Reserves Capital Stock (if applicable) Surplus (net worth) earned Unearned Total Assets Liabilities, capital and surplus Dated at , this day of Name of Organization: iiie Sworn and subscribed to before me this day of , 19 Notary Public, State of Michigan My Commission expires: WATERFORD-OAKS Waterford -Oaks Activities Building is located at 2800 Watkins Lake Road, Waterford Township. This spacious Activi- ties Building can comfortably handle 500 persons for a buffet or sit-down banquet. Most food is catered into this building; however, it does have a spacious kitchen consisting of ice machine, freezer, refrigerator, gas range, and large double sink. Additional features are bar and set-up service counter, air-conditioning, and a spacious elevated stage. In 1971, 20 groups totaling 4,885 persons used the building. Gross revenues were $11,485.78 with expenditures of $7,223.11. Groups in 1972 totaled 60, bringing 13,736 persons to the center. Gross revenues totaled $35,997.52 and expenditures were $19,975.13. During 1973, the center had 39 groups with a total of 8,676 persons. Gross revenue received was $31,776.98 and ex- penditures were $9,999.03 through October. S'PRI-NGFL LD=OAKS Springfield -Oaks Clubhouse is located at 12450 Anderson- ville Road in Davisburg, Michigan. This building is a support facility for a 9 hole golf course with expansion to 18 holes by 1976. It is a two story building with the golf course lounge area situated downstairs and capable of seating 40 persons. During the 1973 golf season, which was the lounge's first year of operation, it served 11,000 persons. This area is serviced by a modern concession stand consisting of sandwich unit, two unit gas burner, stainless steel work area and complete beverage set-up. Upstairs is a dining and banquet area which was opened during the winter of 1972. It is capable of handling 75 persons for a sit-down or buffet party. During the winter months of 1972, it hosted 5 parties totaling 332 persons. The banquet room is en- hanced by a magnifici.ent stone fireplace. This banquet area is serviced by a separate kitchen upstairs which has such features as a six door upright refrigerator and freezer, dishwasher, two oven stove unit, and a grill and broiler. This rough cedar building which is nestled into the woods is fully carpeted and air conditioned. Combined gross revenues for 1972 were $5,399,65 with expendi- tures of $5,884.40. For 1973, the gross revenue was $5,884.40 with expenditures of $5,364.45. There is a Class C Liquor License pending the hiring of a co -licensee. WHITE LAKE -OAKS White Lake -Oaks Clubhouse is located at 991 Williams Lake Road, White Lake Township. It is a combined golf course support facility and a dining and banquet center. The large dining area can seat up to 235 persons for a sit-down meal. It is fully carpeted with two porta-bars, one waitress station equipped with ice machine, coffee urns, etc., and a dance floor and piano. This room has a separate outside entrance and can be closed off from the remainder of the building for private parties. The dining area was opened in August of 1972. During this time, it serviced 48 groups totaling 2,723 persons. During 1973, its first full year of operation, 204 groups totaling 26,660 persons used it. The lounge area can seat 80 people. It is equipped with an N.C.R. electra-bar and waitress station. During the same time periods as the dining room, it served 31,339 persons in 1972. In 1973 it serviced 50,000 persons. Both eating facili- ties are serviced by a modern central kitchen. Additional features of the building which will be operated by the Parks and Recreation Department are: golf course pro shop, club storage lockers and locker rooms for both men and women which include showers and clothing storage areas. It is fully air conditioned and has a pave and lighted parking lot. The dining area and lounge had a combined gross revenue of $49,242.13 and expenditures of $67,794.06 for 1972. Through September of 1973, the gross revenues were $184,065.80 with expenditures of $166,768.14. A Class C Liquor License is in force at this time and will become available as a co -licensee upon a final contract. SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER The Youth Activities Center is located on Andersonville Road in Davisburg, Michigan. It is a large activities complex consisting of a 70 x 120 exhibit hall, 36 x 60 multi -purpose room and three 18 x 18 conference rooms. The entire facility is air conditioned and serviced by a large lighted parking area. This building has a small kitchen and concession area which requires all food to be catered for large parties or con- ferences. The concession stand will be operated by the Commission. It has a banquet seating capacity of 800 in the exhibit hall and 250 in the multi -purpose room. In 1972, there were 18 banquets servicing 4,395 persons. The gross revenues were $5,124.41 with expenditures of $5,764.13. Total banquets for 1973 were 26, servicing 4,714 persons. Gross revenues through September were $10,100.60 with expendi- tures equaling $5,208.44. ITEM # 10 1974 BUDGET PROPOSAL The proposed annual budget of the Parks and Recreation Commission was reviewed on Thursday, December 6, 1973 at a special meeting of the Parks and Recreation Commission. Certain amendments and recommendations were suggested by the Commission. These corrections have been made by the staff and will be put into the final budget document once it is approved. Certain justifications requested by the Commission are attached for reference and will be added to the budget as directed. The corrected figures for the anticipated revenue and expenditures will be available at the meeting for final approval. REVENUE VI-3. Administration: Miscellaneous - 1973 9 Mos. Actual -- $33,941.35. This revenue is reimbursement obtained from the County Board of Commissioners for the operation of the Springfield Youth Activities Center. VI-6. Addison -Oaks Conference Center: Miscellaneous - 1973 9 Mos. Actual -- $11,234.40. This revenue is gratuities received from banquets and in 1974 is shown in the gratuity account. VI-9. Springfield Mill Pond: Contract Commission - 1974 Recommended. Springfield Township pays 500 of the lifeguards's cost which is $1,500.00. VI-10. Springfield -Oaks Youth Activities Center: Miscellaneous - 1974 Recommended. $90,942.00 is project reimbursement from County Board of Commissioners for anticipated operation deficit. In 1973, the deficit reimbursement was recorded in Administration Revenue. VI-12. White Lake -Oaks Golf Course Miscellaneous Gratuities for the Food Service were recorded in this account in 1973. In 1974, the gratuities will be shown for 6 months in the gratuities account. EXPENDITURES VII-3. Administration Salaries - 1974 Recommended: All sections have a large increase in salaries because the PEP Program is no longer funded. In the past, these costs were not reflected in the budget. PEP positions being fully funded are asterisked on IV-3. This is reflected in all accounts. Fringe Benefits - 1973 Budgeted Compared to 1973 9 Mos. Actual. In all sections this account was budgeted for PEP positions for which our department didn't have to pay. In 1974, this department will have to pay all fringe benefits. This is reflected in all fringe accounts. Page 2. Part -Time - 1974 Recommended: $3,780.00 is for co-op student or part-time office help. Advertising - 1974 Recommended. $10,100.00 includes developing individual park brochures. Professional Services - 1974 Recommended: $13,000.00 The major portion of this expenditure will be for an outside audit. The custodial service is also in this account. VII-5. Technical Support Section Transportation - 1974 Recommended. This is increased because county vehicles will be provided. VII-6. Addison -Oaks Park Rubbish Removal - 1974 Recommended. Increase is purchase of plastic bags for camper's garbage. VII-8. Groveland-Oaks Park Rubbish Removal - 1974 Recommended. Increase is purchase of plastic bags for camper's garbage. Grounds Maintenance - 1974 Recommended. Increase is for lake weed treatment. VII-10. Springfield -Oaks Golf Course Grounds Maintenance - 1974 Recommended. Increase is for additional work on new 9 hole development. VII-12. Springfield -Oaks Youth Activities Center ecial Events - 1973 9 Mos. Actual and 1974 Recommended This account is for expenses of Rodeo, 4-H, and Sheriff's Circus. Food for Resale - 1974 Recommended. This is for operation of concession. Part of this use to be charged to food service. Page 3 VII-13. Waterford -Oaks Part -Time - 1974 Recommended. This position was for summer maintenance of grounds. In 1974 DFO will perform this service. Grounds Maintenance - 1974 Recommended. This is increased to provide for DFO's maintenance charges.