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HomeMy WebLinkAboutItem 08 - Persimmons Bar & GrillMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: OCTOBER 4, 2022 SUBJECT: GOLF ENTERPRISE FUND APPROPRIATION ORDINANCE AND AUTHORIZE ESTIMATED EXPENSES TO OPERATE PERSIMMONS BAR & GRILL WITH MULTIPLE VENDORS RECOMMENDATION: City Council consider authorization to operate Persimmons Bar & Grill, with multiple vendors, and Ordinance No. 2022-067 appropriating funds to the Golf Enterprise Fund. FUNDING SOURCE: Upon approval of the attached appropriation ordinance, funding will be available in the Golf Enterprise Fund. BACKGROUND: This item appropriates $1,718,000 to the Golf Enterprise Fund for the operation of Persimmons Bar & Grill at the Grapevine Golf Course. The expenses for which this budget appropriation is based are the first year expenses of the previous operator, Coury Hospitality. Anticipated food and beverage revenues are expected to offset Persimmons annual expenses. The vendors who we anticipate will be above $15,000 in expenses are as follows and total approximately $667,000 of the total of $1.7 million; Food Ben E. Keith Foods: $210,000 Hardies Fresh Foods: $44,000 Beverages Andrews Distributing: $56,000 Republic National Distributing: $22,000 Ben E. Keith Beverages: $73,000 Sigel's Beverages: $28,000 Spec's Family Partners: $97,000 Other Pinnacle Propane: $37,000 Restaurant Ventures Unlimited; Staffing (providing some key front line staff) : $100,000 The balance of expenditures are mostly for personnel costs to run the restaurant (the restaurant is open 7 days a week from 7 am to 9 pm) and other smaller operating expenses. Again, it is anticipated that revenue earned will offset anticipated expenses and we will keep Council informed (via an operating summary) on a monthly basis through the Weekly Update. This procurement will be made in accordance with Local Government Code Chapter 252, Subchapter B, § 252.022. General Exemptions (a) (4) (14), personal, professional or planning services and goods purchased by the municipality for subsequent retail sale by the municipality. Staff recommends approval. ORDINANCE NO. 2022-067 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, REVISING THE GOLF ENTERPRISE FUND ADOPTED BUDGET FOR THE FISCAL YEAR ENDING IN 2023; PROVIDING FOR THE INCREASE IN ESTIMATED RECEIPTS AND APPROPRIATIONS; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine assumed operation of Persimmons Bar & Grill on October 1, 2022; and �I WHEREAS, the City is responsible for all expenses of Persimmons Bar & Grill; and WHEREAS, revenues from the sale of food and beverages will offset expenses; WHEREAS, FY2023 expenses are estimated to total $1,718,000; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act and Chapter 211 of the Local Government Code; and WHEREAS, the City Council deems the adoption of this ordinance to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City Council hereby authorizes the increase in estimated receipts and appropriations of the Golf Enterprise Fund in the amount of $1,718,000. Section 3. That a copy of the revised Fiscal Year 2022-2023 Operating Budget document shall be kept on file in the office of the City Secretary and on the City of Grapevine website. Section 4. That the terms and provisions of this ordinance shall be deemed to be severable, and that if the validity of any section, subsection, word, sentence or phrase shall be held to be invalid, it shall not affect the remaining part of this ordinance. Section 5. That the fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an emergency for the immediate preservation of the public business, property, health, safety, and general welfare which requires that this ordinance shall take effect immediately from and after its passage and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 4th day of October, 2022. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: Matthew C. G. Boyle City Attorney Ordinance No. 2022-067 2