2007/07/25 Council Agenda Packet

8 I. COSTS AND EXPENDITURES 1. Direct Cost a. The normal and ordinary costs of operating and maintaining the courses ("Direct Costs") shall be paid by the Contractor from the Contractor's bank account. A Direct Cost shall be any cost which is directly related to the normal and ordinary staffing, operations or maintenance of the courses, repairs and restorations incurred by the contractor unless they constitute a capital expense as defined herein and additionally including, but not limited to, the following: 1) Employee salaries. 2) Employee commissions. 3) Employee benefits including uniforms, vacation, sick leave, health insurance, disability insurance and worker's compensation insurance. 4) Lease and/or rental of equipment. 5) Repair, maintenance and acquisition of golf and hand carts and capital equipment, furnishings and fixtures. 6) Operating supplies. 7) Office supplies. 8) Cleaning supplies. 9) Other miscellaneous supplies. 10) Audits. 11) Non-Contractor advertising and marketing expenses. 12) Mileage associated with daily operations, excluding Contractor staff commute costs. 13) Fees, Permits and Licenses. 14) Custodial services. 15) Necessary start-up purchases referenced in Exhibit I. 16) Insurance premiums, and, in the event of a claim on the property or liability insurance required the amount paid up to the deductible. 17) Merchandise (pro shop) inventory. 18)Food and beverage inventory. 19)Applicable taxes on the Direct Costs or reimbursement of same. 20) Utility costs not paid by the City. 2. Direct Cost Budget a. The Direct Cost Budget is contained within the Business Plan setting forth all projected Direct Costs. The Direct Cost Budget may be amended or modified from time to time, in accordance with City policies and procedures, to reflect actual operating circumstances, after written notice to and consultation with the Contractor. t 19