Flourtown Country Club RFP, 2005

TOWNSHIP OF SPRINGFIELD Montgomery County Pennsylvania

REQUESTS FOR PROPOSALS

For the lease and operation of the Flourtown Country Club and related facilities

Due Date: June 8, 2005, 12:00 Noon at the Township administrative building located at 1510 Paper Mill Road, Wyndmoor, PA 19038

Procedural Inquiries:

Steven M. Wiesner Phone: 814-455-3200

INTRODUCTION

Springfield Township, Montgomery County, will accept sealed proposals for lease of the Flourtown Country Club located at 150 McCloskey Road, Flourtown, PA 19031. The facility consists of a nine-hole golf course, three swimming pools, and a clubhouse with banquet facility and a snack bar serving both the golf and pool patrons. The facility will be divided into two separately leased operations, the food and beverage portion being one, and the combination of the golf and pool facilities being the second. Experienced contractors are encouraged to submit proposals for either, or both operations. The lease for each will commence on January 1, 2006 and will be for a ten (10) year period with an option to renew for two (2) consecutive five (5) year terms.

Additional informational documents may be obtained at the Springfield Township Administrative building located at 1510 Paper Mill Road, Wyndmoor, PA 19038, during normal business hours.

Informational/open house meetings will be held on May 11, 2005 and May 18, 2005, from 10:00AM to 2:00PM at the Flourtown Country Club. Reservations are recommended to ensure space and to be placed on a mailing list for subsequent announcements. Attendance at a minimum of one open house is required to submit a proposal. Reservations can be made by calling Carol Holcomb, Springfield Township Administrative Assistant, at 215-836-7600. Technical questions regarding the RFP should be directed to Steven M. Wiesner, at 814-455-3200. Please note, the Flourtown Country Club is a private club and site visits will be limited to the open houses currently scheduled for May 11th and May 18th.

DESCRIPTION OF PROPERTY

The Flourtown Country Club is situated on approximately 53 acres located in the center of Springfield Township, Montgomery County Pennsylvania. The facility includes a nine-hole golf course, three swimming pools and a large stone clubhouse with parking available for approximately 225 vehicles. The facility was constructed in the early 1900's and has been in continual operations since. Springfield Township purchased the course in the mid 1950's. The golf course plays 18 holes as a par 70, 5,768 yards in length.

The golf club primarily serves golfers interested in recreation at an affordable price. The current Flourtown Country Club members do not demand a high degree of difficulty in course design, but do expect a well-maintained course. Men's and women's locker rooms are provided for members.

The pool club includes a 33 –yard six lane competition pool with a one meter diving board, a shallow round kiddy play pool thirty (30') foot in diameter and a twenty-five (25') foot wide by forty-five (45') foot long pool five (5') feet in depth for wading. The two large pools were constructed in the mid 1950's and, although older, are well maintained without any structural problems or concerns. The shallow round pool was reconstructed in 2002 and includes new coping, decking and piping.

The dining hall, which was added to the clubhouse in 1956, is 3,710 square ft and seats approximately 200. There is a snack bar on the lower level that serves both the golf and pool members. The operator of the facility utilizes the Township's Catering Club Liquor License.

DESCRIPTION OF CURRENT GOLF COURSE & POOL OPERATIONS

Golf operations

The golf club consists of a nine-hole course on approximately 53 acres. The club is currently operated as a private facility with a variety of membership levels. Golf memberships do not include pool privileges. The current lease requires that the lessee first offer golf memberships to Township residents, at rates approved by the Township. Historically, the membership for golf has been capped at 350 persons. The operator maintains a waiting list for new members. Over the past five years, golf memberships have generated on average $252,635 (gross) annually.

The following table shows the current rates for various levels of membership:

Golf membership fees — As of January 1, 2005

Notes:

• A discount of $25 has historically been applied to each golf membership paid in full by December 31 of the previous year
• Family memberships include two golfers, each additional member $210.

Pool operations

The swim club consists of three pools, a 33-yard competition pool, a wading pool, and a pool for younger children. The current operator provides swimming programs, including lessons, and also coordinates the activities of the FCC swim team. Swim memberships are issued separate from golf memberships.

There are currently 572 memberships outstanding which amount to approximately 1,500 people when all family members are counted. Swim memberships have generated on average, $227,500 (gross) annually over the past five years. Rates are competitive with other private facilities located in Southeastern Pennsylvania.

FCC Swim club membership fees As of January 1, 2005

Guest fee $5.00 weekday $10.00 weekend

DESCRIPTION OF CURRENT FOOD AND BERVERAGE OPERATION

The banquet facility primarily consists of a fifty-three (53') foot long by seventy (70') foot long dining area that can accommodate wedding receptions and parties of up to 200. The hall was built in the 1950's and has received only minor cosmetic enhancements over the years. Lease of the Food and Beverage operation consists of the entire main building excluding the golf club locker rooms, pro-shop, and pool mechanical room located on the lower level.

Currently, the main building is utilized only for banquets held in the main dining room and the snack bar located on the lower level which serves both the golf and pool members from the same location. The first floor of the main building includes a foyer, lobby, lobby bar, kitchen, food storage areas, walk in freezer, bathrooms and an office. The second floor includes a ladies reception area and bathroom, along with two large rooms and several offices that are not currently utilized other than for storage.

PROJECT DESCRIPTION

Golf and Pool Lease:

The successful applicant (lessee) shall furnish all of the necessary labor, supervision, equipment, tools, insurances, and other items incidental to the operation of a golf course and pool club for a period of ten (10) years commencing on January 1, 2006, with an option to renew for up to two (2) consecutive five (5) year periods, at a rental rate to be mutually agreed upon. The Township has prepared a report identifying and prioritizing potential capital improvements to the golf course and pool facilities. The Township is seeking a partner willing to make an initial investment and ongoing commitment to assist the Township in completing most or all of the projects listed in this report. The report is available for inspection at the Township building and will be reviewed during the open house meetings scheduled for May 11th and May 18th. The Township will also consider alternate improvements. It is the intention of the Township to maintain the current operational structure (private membership with discount to township residents) of both the golf and pool facilities. However, as part of this request for proposals, the Township will consider alternate operational fee structures, including the possibility of making either or both the golf and pool facilities open to the public at a daily rate.

Food and Beverage Lease:

The successful applicant (lessee) shall furnish all of the necessary labor, supervision, equipment, tools, insurances and other items incidental to the operation of a banquet facility and snack bar for a period of ten (10) years commencing on January 1, 2006, with an option to renew for up to two (2) consecutive five (5) year periods, at a rental rate to be mutually agreed upon. The lessee may utilize all areas of the building under lease for operations, including the two rooms located on the second floor currently not being used.

The township recognizes that the facility, in particular the banquet hall, has not been updated for several years. The Township is seeking a lessee willing to make a capital investment to update the appearance of the facility and maximize its potential. The Township has prepared a report identifying and prioritizing potential capital improvements to the clubhouse facility, which is available for inspection at the Township building, and which will be reviewed during the scheduled open house meetings. The Township will also consider alternate improvements to the facility and will consider reasonable expansion of the banquet hall and the snack bar area. The Township will also consider the possibility of converting the snack bar to a full service restaurant open to the public.

Combined Lease:

Proposals will be accepted for the golf and pool lease, the food and beverage lease, or both. Should the applicant require both leases as part of acceptance of their proposal, that fact should be clearly indicated in their submission.

DUE DILLEGENCE / INFORMATIONAL MEETINGS / SITE INSPECTION

The Township has available the following documents which may be viewed during normal business hours at the Township Administrative building located at 1510 Paper Mill Road Wyndmoor, PA 19038:

• Un-audited Financial Statements for the past five years
• Current Lease arrangement
• Capital Improvement Study
• Photo file
• Equipment lists

Informational open house meetings will be held on May 11th and May 18th beginning at

10:00 AM. Those wishing to submit proposals are required to attend at least one of the open house meetings. The open house will begin promptly at 10:00 AM with a brief presentation describing the facility followed by a question and answer session. Reservations are encouraged to ensure available seating and can be made by calling Carol Holcomb at 215 — 836-7600.

Site Inspection — a tour of the facility will be performed during both of the open house meetings. During these tours, applicants will have an opportunity to inspect the equipment and facilities and take appropriate measurements and pictures. You are encouraged to bring along any professionals necessary for you to gain an accurate assessment of the equipment and facility. The Township does not make any representations as to the quality or useful life of the equipment provided. Those wishing to make a proposal are required to perform the due diligence necessary to assess both the quality and functionality of the equipment provided and to determine whether or not it meets their needs. Please note, the Flourtown Country Club is currently a private club and site visits will be limited to the open houses currently scheduled for May 11th and May 18th.

Oral statements made by or on behalf of the Township shall not be binding upon the Township or its Consultants.

GENERAL CONDITIONS FOR BOTH LEASES

The operation of the facility must be performed in a safe and professional manner;

The facility and grounds under control of the lessee must be maintained and kept in good order by the lessee;

The lessee must keep the facility open a reasonable minimum number of hours during the normal customary seasons for both the golf and pool operations;

The lessee must make prompt and timely payment of all applicable taxes and remittance of all employee related withholdings, including but not limited to all real estate, sales and amusement taxes, employment taxes;

Lessee is responsible for payment of all utilities which will be put in the tenants name;

Lessee shall indemnify, defend and hold harmless the Township from any and all claims, suits or liability arising out of and/or relating to the possession, use, or operation of the premises under lease including but not limited to claims by members of the general public and agents, servants, and employees of the lessee;

Application of all herbicides and pesticides shall be made in accordance with applicable laws, regulations, rules, ordinances, and resolutions of governmental entities and in accordance with manufactures' recommendations, by bonded and certified applicators;

Lessee shall purchase and maintain insurance covering claims for liability and/or damage caused by the application of herbicides and pesticides, including damage to the leased premises;

Lessee shall purchase and maintain commercial liability insurance;

Lessee shall purchase and maintain insurance necessary to comply with state, county, and federal regulations, including but not limited to workmen's compensation;

Lessee shall allowance for inspection of the premises by the Township upon reasonable notice;

Lessee must acquire and maintain all required licenses and permits with the exception of the Pennsylvania Liquor License, which shall remain the property of the Township, but all annual renewal fees shall be the responsibility of the food and beverage lessee;

Lessee shall do nothing to jeopardize the good standing of the Township owned liquor license;

Any improvements proposed to be constructed by the lessee are subject to the Township's input and approval. All improvements made, and trade fixtures installed by the lessee shall become the property of the Township at the expiration or termination of the lease without further compensation to the lessee;

The lessee must provide the Township with verification of the actual cost to complete any agreed upon improvements;

The right of the lessee to retain all receipts and profits from the operation of the premises, except as may be negotiated as a rental term;

The right of the lessee to bargain for an increase in the size and extent of the leased premises;

Continuation of the name "Flourtown Country Club" unless otherwise agreed by the parties;

Annual audits of the complete operations performed by a competent Certified Public Accountant selected by the Township and paid by the lessee;

The right for the Township to perform an internal examination of the financial records at any time during normal business hours and perform any audit or internal control review deemed appropriate;

Inclusion of the Township as an additional, named insured on all policies of insurance purchased under and pursuant to the lease;

Use and storage of hazardous materials (including but not limited to gasoline, petroleum, and petroleum related products) must be done in accordance with applicable laws, regulations, rules, ordinances, and resolutions of governmental entities and in accordance with manufacturer's recommendations; and

Lessee must purchase and maintain insurance covering claims for liability and/or damage caused by the use and storage of hazardous materials (including but not limited to gasoline, petroleum and petroleum related products), including damage to the leased premises.

Any other general conditions normally found in leases of this type.

PROPOSALS

The base proposal shall consists of and incorporate all necessary provisions of this RFP and shall include but not be limited to the following:

1. A description of the lessee's understanding of what is to be leased, lease term, and commencement date
2. A complete description of any proposed capital improvements to be made to the facility by the lessee along with an estimate of their cost and timeline for completion which shall include the design, township approval, and construction phases
3. A brief narrative describing how the proposed construction schedule will accommodate the normal busy seasons of the golf pool and banquet facilities
4. A description of the proposed lease rental fee for the original term and any option periods
5. A description of the lessee's proposed operational fee structure for the golf and pool facilities
6. Financial projections for the proposed operations for the initial term of the lease
7. A description of how the facility will be managed and by whom
8. Details of all similar facilities operated by the lessee and a list of references
9. Proof that a performance bond can be secured covering 100% of the proposed construction costs

SUBMISSION OF PROPOSALS

Proposals shall be accompanied by security in the form of a certified check made payable to the Township in the amount of Five Thousand Dollars ($5,000.00) to secure the negotiation of the lease, which shall be forfeited by the selected applicant in the event of a failure to negotiate and execute a lease in good faith, regardless of the cause of fault. The lease security shall be released upon the timely execution of the lease agreement and receipt of the appropriate proof of insurance certificates required as part of the lease.

An original and nine (9) copies of each proposal, along with the requisite security as stated herein, shall be submitted to Donald E. Berger, Jr., Township Manager, 1510 Paper Mill Road, Wyndmoor, PA 19038 no later than 12:00 Noon (prevailing time) on June 8, 2005. All proposals shall be type written and shall set forth the name and address and phone number of the applicant on the first page.

The proposal shall be submitted in a sealed envelope and shall be plainly and boldly marked with the inscription "PROPOSAL FOR LEASE OF THE FLOURTOWN CONTRY CLUB". The sealed envelope shall bear the name address and telephone number of the applicant. Any proposal submitted after 12:00 Noon on June 8, 2005, shall be returned unopened.

WITHDRAWAL OF PROPOSALS

Any proposals may be withdrawn prior to the scheduled time for the opening of proposals or any authorized postponement thereof. Any proposals received after the time and date specified herein will not be considered. No applicant may withdraw a proposal or the security relating thereto after opening until ninety (90) days following the date set for opening unless otherwise extended by agreement of the applicant and the Township.

DISQUALIFICATION OF CONTRACTOR

Any inappropriate attempt to influence or gain support in any manner from the Board of Commissioners or any employee or designated representative of the Township for this contract will constitute grounds for disqualification.

AWARD OF CONTRACT

The contract will be awarded to a responsible applicant based upon the following considerations:

• The financial ability, experience, capacity, and skill of the applicant to perform the contract or provide the services required
• The quality of the proposal itself, including the use of realistic operational and financial assumptions
• The ability of the applicant to perform the contract promptly or within the specified time without delay or interference
• The quality of performance of previous contracts or similar operations, including the results of reference inquiries
• The previous and existing compliance by the applicant with laws, ordinances, rules and regulations of this and other municipalities and governmental entities
• The demonstrated and proven financial resources of the applicant and the demonstrated ability of the applicant to perform the contract and follow through with the operation of the facility and the completion of any proposed improvements to the facility
• The quality of the proposed improvements to be performed by the lessee and the extent to which they fit the desires of the Township
• How well the applicant demonstrates that the proposed improvements are real and achievable
• The time frame for completing any proposed improvements
• The quality and availability of the supplies and services
• The evaluation of references as they relate to the applicants ability to fulfill the requirements of any lease agreements
• The most favorable overall financial benefit to the Township
• Such other considerations as may be lawful and appropriate under the circumstances.
• The Township reserves the right to negotiate mutually agreeable changes in any proposal
• The Township reserves the right to reject any and all proposals and is not obligated to accept the highest responsible bid or proposal

EXECUTION OF CONRACT

The successful applicant will be required to immediately commence good faith lease negotiations and execute a lease agreement with the Township within sixty (60) calendar days from the date when the Notice of Award shall be mailed first class, postage prepaid to the applicant, unless otherwise agreed by the Township in writing. In case of failure of the applicant to timely execute the contract, the Township may, at its sole option, award the contract to another applicant unless earlier withdrawn in accordance with this RFP. Should the Township fail to award a contract to an applicant, the notice inviting proposals may be withdrawn.

COMMENCEMENT OF WORK

The successful applicant shall commence operations, and or construction, at the facility on January 1, 2006 or sooner, and shall continue operations through the end of the term of the lease.

COLLUSION — GENUINE BID

By submitting a proposal, the applicant certifies that the proposal is genuine and not collusive or a sham or made in the interest or on the behalf of any person not named as applicant, and that the applicant has not directly or indirectly induced or solicited any other applicant to put in a sham bid or any other person, firm or corporation to refrain from submitting a proposal and that the applicant has not in any manner sought by collusion to secure an advantage over another applicant.

LICENSE FEES

All licenses and other fees necessary to operate the facility or provide services under the lease, shall be paid by the lessee.

CATERING CLUB LIQUOR LICENSE

To the extent allowed by law, the food and beverage lessee shall become the designated steward, manager, and responsible officer with respect to the Township's Catering Club liquor license, and shall be responsible for payment of all fees relating thereto. The Township shall at all times retain ownership of the license.

CONTACT

Inquiries concerning this RFP should be directed to Steven M. Wiesner via telephone at 814-455-3200.