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HomeMy WebLinkAboutPR 11701: AQUILA GOLFINTER OFFICE MEMO To: Mayor, City Council & City Manager From: Judith S. Rawls, First Assistant City Attorney Subject: P. R. No. 11701 Council Meeting March 19, 2002- Date: March 15, 2002 Attached is P.R. No. 11701 requesting a third amendment to the contract with Aquila Golf Inc. as it relates to maintenance and repair costs shared by the City. The additions are shaded on the attached document.(Requested by City Manager) MTS/ts Attachment cc: City Secretary z.pr 11701.memo THIRD AMENDMENT TO CONTRACT FOR OPERATION AND MAINTENANCE OF BABE DIDRICKSON ZAHAKIAS MUNICIPAL GOLF COURSE This amendment to the contract for operation and maintenance of Babe Didrickson Zaharias Municipal Golf Course is made and entered into, and effective the __ day of , 2002. WHEREAS, the City of Port Arthur and Aquila Golf, Inc. entered into the original contract to operate and maintain the Babe Didrickson Zaharias Municipal Golf Course per Resolution No. 93-138; and WHEREAS, the City of Port Arthur entered into a first amendment to the contract per Resolution No. 97-29; and WHEREASE, the City of Port Arthur entered into a second amendment to the contract per Resolution No. 97-191; and WHEREAS, on the recommendation of the golf committee, the parties to the contract now desire to enter into a third amendment to the contract that will amend Article VIII of the original contract as follows: "VIII. MAINTENANCE AND REPAIRS (a) It is the intention of the parties that the income for the term of this Contract shall constitute a net return to City free of any expenses, charges or other deductions whatsoever. Accordingly, Manager shall, at its sole cost, keep and maintain the premises and structures, improvements, fixtures, equipment and utilities which may now or thereafter exist thereon, in good operable, usable and sanitary order and repair and in a good, safe condition consistent with other municipal golf courses' business practices throughout the term of this Contract, making such repairs as maybe required to comply with the requirements of this contract. The City shall be responsible for the replacement of any individual item, listed in Exhibit "A", when estimated repair cost exceed 50% over a one (1) year period of replacement cost as determined by the City. as¸ Manager shall take all steps to perfect and keep in force all dealer's and manufacturer's guarantees and warranties available on all installations made and equipment used on the z.prl 1701 P. Ro No. 11701 03/~5/02 - ta RESOLUTION NO. A RESOLUTION AMENDINH THE CONTRACT WITH AQUILA ~OLF, INC. AS IT RELATES TO MAINTENANCE AND REPAIR COSTS SHARED BY T~E CITY (REQUESTED BY CITY MANAHER) WHEREAS, the original management agreement of Babe Didrickson Zaharias Municipal Golf Course was approved by Resolution No. 93- 138; and WHEREAS, the contract was amended by Resolution No. 97-29 to change the percentage payment from 15% to 10% of all gross receipts above $500,000 excluding merchandise; and WHEREAS, the contract was amended a second time by Resolution No. 97-161 to extend the terms of the management agreement for a period of four (4) years; and WHEREAS, the City Council considers Aquila Golf, Inc. as a professional/planner in the management of golf courses; and WHEREAS, the City Council considers it in the best interests of the City to amend the agreement with Aquila Golf, Inc. for a third time to amend Section VIII of the Contract for Operation and Maintenance of Babe Didrickson Zaharias Municipal Golf Course; and, WHEREAS, the amendment has been recommended by the Golf Course Committee which believes that there is adequate consideration for the amendment. z.pr11701 NOW, OF PORT ARTHUR: Section 1. true and correct. Section 2. THEREFORE, BE IT RESOLYmm BY THE CITY COUNCIL OF THE CITY That the facts and opinions in the preamble are That the City Manager is authorized to sign the third amendment as denoted in Exhibit "A". Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this A.D., 2002, Port Arthur, AYES: __ day of at a Regular Meeting of the City Council of Texas, by the following vote: the City of ; NOES: ATTEST: OSCAR ORTIZ, MAYOR JAN STRODER, ACTING CITY SECRETARY APPROVED AS TO FORM: T. SOKOLOW, ClT~f ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER z.prl 1701 EXHIBIT "A" THIRD AMENDMENT TO CONTRACT FOR OPERATION AND MAINTENANCE OF BABE DIDRICKSON ZAHARIAS MUNICIPAL GOLF COURSE This amendment to the contract for operation and maintenance of Babe Didrickson Zaharias Municipal Golf Course is made and entered into, and effective the __ day of , 2002. WHEREAS, the City of Port Arthur and Aquila Golf, Inc. entered into the original contract to operate and maintain the Babe Didrickson Zaharias Municipal Golf Course per Resolution No. 93-138; and WHEREAS, the City of Port Arthur entered into a first amendment to the contract per Resolution No. 97-29; and WHEREAS, the City of Port Arthur entered into a second amendment to the contract per Resolution No. 97-191; and WHEREAS, on the recommendation of the golf committee, the parties to the contract now desire to enter into a third amendment to the contract that will amend Article VIII of the original contract as follows: "VIII. MAINTENANCE AND REPAIRS (a) It is the intention of the parties that the income for the term of this Contract shall constitute a net return to City free of any expenses, charges or other deductions whatsoever. Accordingly, Manager shall, at its sole cost, keep and maintain the premises and structures, improvements, fixtures, equipment and utilities which may now or thereafter exist thereon, in good operable, usable and sanitary order and repair and in a good, safe condition consistent with other municipal golf courses' business practices throughout the term of this Contract, making such repairs as maybe required to comply with the requirements of this contract. The City shall be responsible for the replacement of any individual item, listed in Exhibit "A", when estimated repair cost exceed 50% over a one (1) year period of replacement cost as determined by the City. Ail drainage facilities repair costs related only to the run-off from the golf course shall be shared equally on a 50% City / 50% Aquila Golf basis. If a portion of the drainage facilities are used for non-golf course drainage, that portion, as determined by the City, will be paid by the City. The City will determine, through run-off calculations, what the additional percentage will be in each case. Manager shall take all steps to perfect and keep in force all dealer's and manufacturer's guarantees and warranties available on all installations made and equipment used on the z.prl 1701 premises. Upon termination of this Contract, all of such guarantees and warranties shall be assigned to City." SIHNED ON THIS THE day of , 2002. AQUILA HOLF, INC. WITNESSED BY: BY: SIHNED ON THIS THE __ day of , 2002. CITY OF PORT ARTHUR WITNESSED BY: BY: z.prl 1701