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Home My WebLink AboutPR 14518: AQUILA GOLF - CONTRACT RENEWALinteroffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney ~,,,^ yj/t.~y~ Date: January 23, 200'8 Subject: P. R. No. 14518; Council Meeting January 29., 2008 Attached is P. R. No. 14518 as it pertains to renewing the contract between the City of Port Arthur and Aquila Golf, Inc. for the operation and maintenance of the Babe Didrickson Zaharias Memorial Golf Course. Aquila Golf, Inc. has been managing the Babe Didrickson Zaharias Memorial Golf Course since July 31, 1993. The existing contract with Aquila Golf, Inc. to manage the Babe Didrickson Zaharias Memorial Golf Course was approved by Resolution No. 03-051 on February 18, 2003. The term of the contract was for five (5) years, beginning on March 1, 2003 and ending.on February 28, 2008 and renewable for another five (5) years. Per said agreement,.Aquila will pay the City $50,000 per year, plus a percentage of sales in excess of $500,000 during the contract year, at 100 of green fees, cart fees, and annual fees and 5°s of food and beverage sales. The City agreed to maintaining a minimum of $50,000 annually for capital improvements. Per Resolution No. 04-228. on July 20, 2004, the City approved a First Amendment. Said amendment gave the City greater discretion to pay for repairs at the golf course. The City of Port Arthur and the Pleasure Island Commission have also retained Aquila Golf; to maintain the Palms at Pleasure Island Golf Course, as per Resolution No. 07-103 and Resolution No. 07-197. Under the Palms Agreement, the City agreed to the following: "XX. So long as this Agreement remains in effect, the City will waive the $50,000 per year payment that Aquila Golf, Inc. is paying the City as it pertains to the Babe Didrickson Zaharias-Golf Course, and such waiver shall be prorated for any partial year calculated at the time of the commencement or termination of this agreement or the agreement governing the Babe Didrickson Zaharias Golf Course. XX2. Aquila_Golf, Inc. agrees that the City of Port Arthur can utilize-the capital improvement fund from the Babe Didrickson Zaharias Golf Course for the subsidies and z.pr1S518_memo other expenses that the City will incur.in this Agreement." The City Manager and staff are satisfied with the management services of Aquila Golf at the Palms at Pleasure Island Golf Course and wants to continue the provisions as to waiving the $50,000 per year payment, as denoted in Paragraph XX, and wants to continue utilizing the capital improvement fund from the Babe Didrickson Zaharias Golf Course for the subsidies and other expenses that the City will incur in the Palms .Agreement. MTS:ts Attachment cc: Assistant •Director of Human Resources Assistant Director of Public Works " George W. Brown, III, President AQIIILA GOLF, INC. F z.pri45bB_memo P. R. No. 14518 01/23/08 is RESOLUTION NO. A RESOLUTION AS IT PERTAINS TO RENEWING THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND AQUILA GOLF, INC. FOR THE OPERATION AND MAINTENANCE OF THE BABE DIDRICKSON ZAHARIAS MEMORIAL GOLF COURSE WHEREAS, on February 18, 2003, the City Council adopted Resolution No. 03-051; and WHEREAS, Resolution No. 03-051 approved a management contract with Aquila Golf for the Babe Didrickson Zaharias Memorial Golf Course; and WHEREAS, the City Council approved the First Amendment to the management contract, per Resolution No. 04-228; and WHEREAS, the .term of the contract was for five (5) years, beginning on March 1, 2003, and ending February 28, 2008, and renewable for another five (5) years; and WHEREAS, Aquila Golf has requested a renewal of the contract, as delineated in Exhibit "A"; and WHEREAS, the City of Port Arthur has been satisfied with the management services of Aquila Golf, Inc at the Babe Didrickson Zeharias Golf Course; and WHEREAS, the City of. Port Arthur and the Pleasure Island Commission have also retained Aquila Golf to maintain the Palms at Pleasure Island Golf Course, as per Resolution. No. 07-.103 and Resolution No. 07-197; and z.pr14518 WHEREAS, under the Palms agreement, the City agreed to the following: "XX. So long as this Agreement remains in effect, the City will waive the $50,000 per year payment that Aquila Golf, Inc. is paying the City as it pertains to the Babe Didrickson Zaharias Golf Course, and such waiver shall be prorated for any partial year calculated at the time of the commencement or termination. of -this agreement or the agreement governing the Babe Didrickson Zaharias Golf Course. XXI. Aquila Golf, Inc. agrees that the City, of Port Arthur can utilize the capital improvement fund from the Babe Didrickson Zaharias Golf Course for the subsidies and other expenses that the-City will incur in this Agreement." and WHEREAS, the City Council is satisfied with the management services of Aquila Golf at-the .Palms at Pleasure Island Golf . Course and wants to continue the provisions as to waiving the $50,000 per year payment, as denoted in Paragraph XX, and wants to continue utilizing the capital improvement fund from the Babe Didrickson Zaharias Golf Course for the subsidies and other expenses that the City will incur in the Palms Agreement. z.pr14518 NOW THEREFORE,- BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: ' Section .l. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council herein approves the renewal of the contract with Aquila Golf, Inc. •f or the management of the Babe Didrickson Zaharias Memorial Golf Course for the period of March 1, 20.08. until February 28, 2013 Section 3. That a duly authorized.representative of Aquila Golf, Inc. will sign this Resolution agreeing to the terms hereof. Section 4.. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2008, at a Meeting of .the City Council of the City of Port Arthur-, Texas, by the following vote:. AYES: Mayor Councilmembers NOES: MAYOR ATTEST: ACTING CITY SECRETARY' z.pr14518 APPROVED AS^ ,TO/FORM/: CITY ATTORNEY APPROVED FOR~ADMINISTRATION: ~;%~[/ ~~ CITY AGER P ROVED AS T VAILABILITY OF FUNDS: i C ~~--. DIRECTOR OF FINANCE AGREED T0: AQUILA GOLF, INC. BY: George W. Brown, III .President z.prin Sie EXHIBIT "A" f ~... - - DECEIVED --: . ~ ~ ~~: ®EC 2 6 2001 $~~ CIry E AQUILA G®LF MANAGERS pFFlC 395 TENTN AT BROADWAY BEAUMONT, TEXAS 77702 (409) 832-GOLF December 20, 2007 ~ ~ ~ ~ l ~~' ~ Mr. Steve Fitzgibbons ~ : n~ /7 ~h` City Manager ,,jug, ~ City of Port Arthur ~j ~ ~~ ' P.O. Box 1089 / Port Arthur, TX .77641-1089 ~~ `~y ~G:% " RE: Babe Zaharias Golf Course contract renewal Dear Mr. Fitzgibbons: As outlined in Paragraph I of the Contract for the Operation and Mainteriance of Babe Didrickson Memorial Golf Course, Aquila Golf, Inc. would welcome the opportunity to 'renew the Contract it has with the City of Port. If this meets with the City's approval, please advise me what Aquila Golf can do tc help facilitate the renewal. Sincerely, AQUILA GOLF, INC. ' George W. Brown, III -President ~~~~~'~ JAN 0 i 20118 L~~~~ ~~~~~t~ET