Res 190-92 12/15/1992RESOLUTION NO. /9-0-
RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE GOLF COURSE CONTRACT AMENDMENT
NUMBER SEVEN WITH RECREATIONAL SERVICES
LIMITED FOR MANAGEMENT OF THE WEEKS PARK
MUNICIPAL GOLF COURSE
WHEREAS, the City and RSL entered into a temporary
arbitration agreement for operation of the Weeks Park Municipal
Golf Course concerning fees, payments to the City, and utilities,
and
WHEREAS, the agreement was necessitated due to losses at the
golf course due to lower than anticipated play, and
WHEREAS, the arbitration agreement expires December 31,
1992, and
WHEREAS, RSL and the City desire to modify the contract to
reinstate a portion of the lease payment to the City; and
WHEREAS, RSL requested certain fee increases to offset the
cost of the lease payment;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WICHITA FALLS, TEXAS, THAT:
The City Manager is hereby authorized to execute Amendment
Number Seven to the Golf Course Management Contract with RSL. A
copy of this amendment is attached hereto and hereby made a part
of this resolution.
PASSED AND APPROVED this the 15thday f Decem• -r, 19•
Adg
M A Y •
ATTEST:
Cit. Clerk
GOLF COURSE MANAGEMENT CONTRACT
AMENDMENT NUMBER SEVEN
NOW, Therefore, in consideration of the premises and at the
request of both parties and in consideration of their desire to
make changes to the original contract, as amended, the contract
between them is hereby modified as follows:
Sections Thirteen and Twenty-Eight of the original contract,
as amended, are modified and hereinafter shall provide in their
entirety as follows:
Section Thirteen. Fees
Because the golf course is a public facility, all
merchandise sold and services offered to customers at the
premises shall be competitively priced. The following fees are
authorized at Weeks Park effective January 1, 1993 :
Weekday Green Fee 8.25
Weekend and Holiday Green Fee 10.25
Weekday (Junior/Senior) Green Fee 5.25
Weekday Twilight Green Fee 6.75
Weekend Twilight Green Fee 7.75
Ladies (Tuesdays Only) Green Fee 5.25
Weekday Senior Annual Membership (62 and Over) 325. 00
Individual or Family Membership
Weekday and Weekend)
Individual Annual Membership 455. 00
Spouse 150. 00
Each Dependent 90.00
Junior Summer Membership Age 17 and Under
Weekday Only May 1 - Aug 31)110.00
18 Hole Cart Fee 15.00
9 Hole Cart Fee 8. 00
It is hereby agreed by both parties that green fees shall
not exceed the rates established above. However, RSL shall have
the option to accept installment payments for the annual
membership passes and charge a reasonable administration fee for
that service. It is further agreed that the annual membership
fees shall be prorated in accordance with the number of months
remaining in the membership year at the time of payment, except
that any passes purchased during the first four months of the
membership year shall be assessed at the full membership rate.
RSL shall annually have the right to file a request for any
increase in fees with the City. In order to assist the City in
evaluating proposed fees, RSL shall submit, along with their fee
request, comparison fee information on no less than ten similar
municipal courses in the State of Texas. Courses to be used must
be approved in advance by the City.
City shall have the right to approve the proposed increases
in whole or in part and to negotiate a fee structure with RSL
which may result in lower than requested increases. In case of
disagreement between City and RSL regarding fees, such
disagreement shall be submitted for arbitration. City shall
select one member of the arbitration panel, RSL one, and these
members shall select a third member acceptable to both parties.
Decisions of the arbitration panel shall be final.
Should City not act on recommended fee increases within
forty-five (45) days of their submission by RSL, RSL may request
that an arbitration panel be established.
Section Twenty-Eight. Payments to City
RSL shall pay to the City the following minimum guaranteed
annual payments, or a percentage of Gross Revenues, whichever is
greater:
MINIMUM PERCENTAGE OF
YEARS (MONTHS) OF CONTRACT ANNUAL PAYMENT GROSS REVENUES
01-08-86 through 07-31-86 0 0%
08-01-86 through 10-31-86 4, 000/month 0%
11-01-86 through 04-30-89 1, 000/month 0%
05-01-89 through 10-31-90 50, 000 9%
11-01-90 through 02-28-91 50, 000 10%
03-01-91 through 12-31-92 0 0%
Beginning January 1, 1993 until the end of the original ten
year contract term, the minimum guaranteed annual payment to the
City shall be 5% of annual green fee revenue. In lieu of the
minimum annual payment, the City has the option to require RSL to
make capital improvements to the course in addition to those
improvements required in another section of this contract. In no
event shall RSL be required by the City to expend more than 10%
of annual green fee revenue on capital improvements in any one
contract year. The City shall inform RSL of its desire to accept
capital improvements in lieu of the minimum annual payment during
the annual review of the capital improvement program.
Minimum annual payments shall be made to the City in quarterly
installments in the amount of 5% of annual green fees received
during each quarter. Payments shall be made to:
Director of Finance
City of Wichita Falls
Memorial Auditorium
1300 Seventh Street
P. O. Box 1431
Wichita Falls, TX 76307
Also, one copy of each payment shall be sent to the Assistant
City Manager at the same mailing address.
All payments are due and payable on the 20th day of the
month following each payment period. RSL agrees that all
payments shall be paid in full within 20 days after they are due.
Thereafter, payments shall be considered late. Late payments
will include a two percent (2%) penalty on the full amount
overdue. RSL also agrees that payments received after thirty
30) days of due date shall include a two percent (2%) penalty
plus interest calculated from the 20th day when payment was due
at the same rate as quoted in the Wall Street Journal at prime
rate plus 2%. "
This modification shall become effective as of the date it
is signed by both parties.
IN WITNESS WHEREOF, the parties hereto have caused this
modification to be signed this day of December, 1992 .
CITY OF WICHITA FALLS
By:
James Berzina, City Manager
ATTEST:
City Clerk
RECREATIONAL SERVICES, LTD.
By:
Title:
ATTEST:
Title:
APPROVED AS TO FORM:
City Attorney