2007/07/25 Council Agenda Packet

8 3. Excluded Operating Costs a. Excluded operating costs are those costs that are paid by the City and not included in the Direct Cost Budget. They include and are limited to the following: 1. Leasehold Excise Taxes, if any. 2. Those maintenance and/or operating costs that are due to any reason beyond the Contractor's reasonable control (an "occurrence of force majeure") including, without limitation, acts of God, riots, strikes, fires, provided, however,that such expense shall continue only during the pendency of the particular occurrence of force majeure. Such excluded costs must exceed $5,000.00 per incident, and are not subject to the prior approval of the Director. If such costs do not exceed $5,000.00 per incident,they shall be treated as Direct Costs. 3. Utility services required by the courses which are water, gas, electricity, sewer service and trash removal. 4. Base Management Fees and Contractor Growth Incentive. 5. Golf course maintenance expenses including the courses' maintenance equipment. 4. Capital Expenditures a. A capital expenditure is any expenditure for new or replacement capital equipment or improvements to the courses that have a life expectancy greater than or equal to one year and a cost of no less than $5,000.00. b. A capital expenditure must be approved by the Director before it may be undertaken. If approved, the capital expenditure will be a direct cost. c. A list of examples of capital equipment owned or possessed by the City relating to this Contract as of the Effective Date is attached hereto as Exhibit H. d. Parks may, by prior agreement, have the Contractor contract for and make capital improvements and reimburse the Contractor for these improvements. e. The Contractor shall submit complete and detailed construction drawings for review and approval by Parks prior to the start of any construction and shall submit as-built drawings and breakdown of construction costs within thirty (30) days after completion of construction. 20 j