REQUEST FOR PROPOSALS FOR THE LEASE AND OPERATION OF THE JOHNSTOWN MUNICIPAL GOLF COURSE (BERKLEY HILLS) BY THE CITY OF JOHNSTOWN, PENNSYLVANIA

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1 REQUEST FOR PROPOSALS FOR THE LEASE AND OPERATION OF THE JOHNSTOWN MUNICIPAL GOLF COURSE (BERKLEY HILLS) BY THE CITY OF JOHNSTOWN, PENNSYLVANIA CONTRACT NUMBER AUGUST 13, 2014

2 CITY OF JOHNSTOWN REQUEST FOR PROPOSALS FOR THE LEASE AND OPERATION OF THE JOHNSTOWN MUNICIPAL GOLF COURSE (BERKLEY HILLS) Contract NO The City of Johnstown is issuing this Request for Proposals (RFP) for the Lease and Operation of the Johnstown Municipal Golf Course (Berkley Hills) located in Upper Yoder Township, PA. The City is interested in proposals for the total lease and operation of the well-established regional golf facility beginning January 1, Interested firms, companies, and/or individuals interested in this proposal can receive the Proposal Package in the Finance Office, Room 104, City Hall, 401 Main Street, Johnstown, PA or at under the Resident and Visitor Information link. Parties requesting proposal packets via mail are required to send a $5.00 check made payable to the "City of Johnstown" to the above address with the request. No proposals will be faxed. Completed proposals are due in the Finance Office, Room 104 by 12:00 PM EST, October 5, The City Of Johnstown reserves the right to accept or reject any and all proposals and to waive any technicalities or inconsistencies. City of Johnstown Carlos K. Gunby Acting City Manager 2

The City is interested in proposals for the total lease and operation of the well-established regional golf facility beginning January 1, 2015.

3 A. Proposal Instructions 1. The City of Johnstown (City) is accepting Proposals under Contract Number for the Lease and Operation of the Berkley Hills Golf Course, owned by the City. The lessee will be expected to assume complete responsibility for the operation, maintenance, repair, and capital improvements of the golf course during the terms of the lease. The course shall be maintained as a public, non-exclusive facility. 2. The Lease shall be for an initial term of a minimum of five (5) years beginning on January 1, All proposers shall clearly identify the proposed lease fee, include a detailed lease payment schedule and clearly identify all components of the proposed lease fee. 4. All proposers are invited to attend a site visit/walk through on Friday September 12, 2014 at 10:00 at the Berkley Hills Golf Course. This will be the only guided walk through. 5. A $5, bid bond must be included with the bid submission. The bid bond can be a surety or "certified" check made payable to the City of Johnstown. The Bid Bond will be held until the successful proposer signs,a lease with the City. Should the selected proposer fail to enter into an agreement with the City, the Bid Bond shall be forfeited to compensate for damages to the City. 6. All communications and Requests for Information (RFI) made regarding any portion of the bid specification or submittal shall be made via to cgunby@cojtwn.com. Requestor must allow at least forty-eight (48) business hours in which to respond. No inquires or communications will be accepted after 12:00 PM EST, October 5, All proposals shall include a Business Plan for the operation of the golf course and include a three-year pro-forma budget, including capital expenditures and investments and a proposed price list. The Business Plan shall also include detailed resumes of the principle proposers for the golf course, outlining golf course and management experience. 8. The proposer shall present evidence to the City of Johnstown indicative to his/her ability to operate and maintain the specified facilities. To that end the proposer shall furnish the following information: 3

The course shall be maintained as a public, non-exclusive facility. 2. The Lease shall be for an initial term of a minimum of five (5) years beginning on January 1, 2015. 3.

4 a. Financial Statement a Full and detailed Audited Financial Statement prepared by a C.P.A., as of December 31, 2013, or more recently if available, of the proposer's assets, liabilities and net worth or other such data that the City may require to determine the proposer's financial ability. If the proposer is a partnership or joint venture, individual Financial Statements must be submitted for each general partner or joint venture thereof. b. In the event that bank-financing will be used to fund any portion of this venture, letters of intent from the bank or lending institution indicating amount to be loaned must be attached. Letters-of-intent may contain the qualification that the loan will only be consummated upon award of the lease. c. A minimum of five (5) Business References, including names, addresses, and telephone numbers. d. A minimum of five (5) Personal References, including names, addresses, and telephone numbers. e. A minimum of five (5) Credit References, including names, addresses, and telephone numbers. f. Proof of Insurability - a letter of commitment from an acceptable insurance company, acceptable to the City, stating that the required insurance coverage's will be available at the time of the commencement of the contract. 9. Completed proposals are due in the Finance Office, Room 104 by 12:00 PM EST, October 5, The proposal submissions shall be sealed and clearly labeled Berkley Hills Golf Course " Contract Number The City of Johnstown reserves the right to accept or reject any and all proposals and to waive any technicalities or inconsistencies. 11. Proposers must supply a working fax number to the City of Johnstown and/or address. 12. Successful proposer must provide a performance bond to the City of Johnstown in the amount of $250, and keep it in force for the duration of the lease. 13. All Correspondence shall have the Contract Number referenced. 4

, as of December 31, 2013, or more recently if available, of the proposer's assets, liabilities and net worth or other such data that the City may require to determine the proposer's financial

5 14. AII correspondence shall be directed to Carlos Gunby, Acting City Manager, at fax number AII bid submissions shall include the following: a. Proposer Cover Sheet ("INSERT A") b. Certifications of Receipt of Addendum(s), if any are issued. c. Rental Payment and Schedule. d. Certification of Receipt of Complete Bid Specifications for Contract Number ("INSERT B") e. Bid bond in the amount of $5, f. Business Plan and Pro Forma. g. All information required and listed in #8 of this proposal. 16. The proposer may withdraw proposals until the deadline of receipt of proposals. Withdrawal requests must be made in writing to the Acting City Manager. 17. AII proposals shall be firm offers and may not be withdrawn for a period of ninety (90) days following the date set to receive proposals. B. Project Description 1. The City of Johnstown (City) is accepting Proposals under Contract Number for the Lease and Operation of the Berkley Hills Golf Course, owned by the City. The lessee will be expected to assume complete responsibility for the operation, maintenance, repair, and capital improvements of the golf course during the terms of the lease. The course shall be maintained as a public, nonexclusive facility. The golf course is averaging approximately thirty-five to forty thousand rounds annually. The selected proposer shall have the exclusive right to operate the golf course, pro shop and concession area in a manner that the proposer determines most effective. The proposer shall set rates and staffing levels. The proposer shall be required to maintain and improve the current condition of the course and keep it open to golf during the term of the lease. Berkley Hills Golf Course is located on 54 acres in Upper Yoder Township and is a 3164 yard nine hole golf course, with a Men's Regulation Rating of Facilities include small club house with locker rooms, pro-shop and golf cart storage building, separate maintenance shed, 40 space parking area, irrigated tees and greens with two separate tees per hole. 5

Bid bond in the amount of $5,000.00 f. Business Plan and Pro Forma. g. All information required and listed in #8 of this proposal. 16.

6 2. The City shall make available, as part of the lease, all maintenance and turf care equipment as well as consumable products remaining after the 2013 season. An inventory of the items is attached as "Attachment 1." The lessee shall maintain and improve the inventory of equipment thorough out the term of the lease. The City of Johnstown shall audit and inventory the equipment on an annual basis. (Please note some equipment may no longer be operational and/or repairable.) 3. The lessee shall continue to charge a five percent (5%) surcharge on all greens fees and permits for capital projects. This surcharge shall be turned over to the City of Johnstown in addition to any rent that shall be paid. 4. The lessee shall implement and maintain a computerized system of accounting and golf management to allow for the automated tracking and reporting of the operations. 5. The lessee shall submit an annual independent audit to the City no later than April 30 each year. 6. The lessee shall maintain the following insurances during the term of the lease: a. Comprehensive General Liability Insurance in the amount of $1,000,000 per occurrence and not less than $2,000,000 in aggregate. b. Comprehensive Automobile Insurance in an amount not less than $1,000,000 per occurrence for any vehicles used for the golf course. c. Workers Compensation Insurance not less than $500,000. d. Loss of Rents or Business Interruption Insurance not less than the annual operating budget of the lessee. e. Umbrella Insurance not less than $2,000,000 for any occurrence and $2,000,000 in the aggregate. The Lessee shall list the City of Johnstown as an additional insured n each policy and provide proof of coverage annually. 6

The City of Johnstown shall audit and inventory the equipment on an annual basis. (Please note some equipment may no longer be operational and/or repairable.) 3.

7 City of Johnstown Proposal Cover Sheet Contract Number Vendor Address State Zip Code Primary Contact Person Telephone ( ) Fax ( ) "INSERT A"

8 City of Johnstown Certification of Receipt of Bid Specifications For Contract Number Vendor Address State Zip Code Primary Contact Person I hereby certify that I / we have received the complete bid specification for City of Johnstown Project Number listed above and have reviewed it prior to submitting any bid quotation. By signing this certification I/we acknowledge not only receipt of the bid specifications but also agreement and understanding to the content therein. Vendors Authorized Agent Date Witness Date "INSERT B"

above and have reviewed it prior to submitting any bid quotation.

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