Res 056-89 4/26/1989RESOLUTION NO. J�6 f
RESOLUTION AUTHORIZING THE CITY
MANAGER TO EXECUTE GOLF COURSE
CONTRACT AMENDMENT NUMBER FOUR
WITH RECREATIONAL SERVICES, LTD.
FOR MANAGEMENT OF WEEKS PARK
GOLF COURSE
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 Four to the Golf Course Management Contract with
Recreational Services, Ltd. A copy of this amendment is attached
hereto and hereby made a part of this resolution.
PASSED AND APPROVED this the-4 1'c�day of April, 1989.
ATTEST:
ity Clerk
STATE OF TEXAS H
COUNTY OF WICHITA H
WHEREAS, on the
Wichita Falls, Texas
"City ", and Recreatil
hereinafter referred
MANAGEMENT CONTRACT;
WHEREAS, on the
GOLF COURSE MANAGEMENT
CONTRACT AMENDMENT
NUMBER FOUR
8th day of January, 1986, the City of
therein, and hereinafter referred to as
Dn Development and Management, therein and
to as "RDM", entered into a GOLF COURSE
and,
27th day of July, 1988, the City and RDM
entered into an Aareement Consentina to Assignment of Golf Course
Management Contract wherein the City agreed that Recreation
Development and Management, Incorporated, may assign its rights
and obligations under the contract dated January 8, 1986, and all
amendments thereto with the City, to Recreation Development and
Management, Ltd; and
WHEREAS, on the 3rd day of October, 1988, Recreation
Development and Management, Ltd. filed with the Office of the
Secretary of the State of Texas to change only its name to
Recreational Services, Limited, therein and hereinafter referred
to as "RSL":
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:
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I. MODIFICATIONS
A. Section Twenty -Eight of the original contract as
amended is modified and hereinafter shall provide in its entirety
as follows:
"SECTION TWENTY- EIGHT. PAYMENTS TO CITY.
RSL shall pay to the City the following minimum
guaranteed annual payments, or a percentage of the Gross
Revenues, whichever is greater:
MINIMUM PERCENTAGE OF
YEARS (MONTHS) OF CONTRACT ANNUAL PAYMENT GROSS REVENUES
01 -08 -86
08 -01 -86
11 -01 -86
05 -01 -89
05 -01 -90
11 -01 -90
11 -01 -95
03 -19 -96
through
through
through
through
through
through
through
through
07 -31 -86
10 -31 -86
04 -30 -89
04 -30 -90
10 -31 -90
10 -31 -95
03 -18 -96
03 -18 -2001
0 0%
4,000 /month 0%
1,000 /month 0%
50,000 9%
50,000 9%
50,000 10%
50,000 (pro rata equivalent) 10%
50,000 10%
For the period, May 1989 through April 1990, payments shall be
made monthly and shall be due on the 15th day of the month for
which the payment is due.
Beginning with the period, May 1990 on the above
payment schedule, quarterly interim payments shall be paid
according to the scheduled percentage of gross revenues. Any
additional sums due because the minimum annual payment owed by
RSL exceeds the sums paid as quarterly interim payments shall be
due in full and shall be fully satisfied in the fourth quarter
payment for that year. Payments shall be made to:
Director of Finance
City of Wichita Falls
Memorial Auditorium
1300 Seventh Street
P.O. Box 1431
Wichita Falls, Texas 76307
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All payments are due and payable on the first day of
the month following each payment period. RSL agrees that all
payments shall be paid in full within 25 days after they are due.
Late payments will include a two percent (2 %) penalty on the full
amount overdue. RSL also agrees that payments received after
thirty -five (35) days of due date shall include a two percent
(2 %) penalty plus interest calculated from the 15th day when
payment was due at the current prime rate as quoted in the Wall
Street Journal.
City acknowledges that RSL has proposed a minimum
annual payment of $100,000 per year or 10% of gross sales,
whichever is greater, for years 16 -20 of the Contract. City
reserves the right, at its sole option, to negotiate these
figures and such other terms and conditions of this Contract as
it deems necessary in return for the exercise of its option.
B. SECTION NINE. UTILITIES.
City shall provide raw water to the Golf Course for
purpose of course irrigation at no charge for the period
beginning September 1, 1987, and ending April 30, 1990. At the
expiration of this period, the terms of the original contract
shall govern the obligations of the parties. City also agrees to
transfer electric accounts located at the Golf Course to City's
name in order to take advantage of lower municipal rates. In
return, RSL agrees to provide City with a deposit equal to the
average of all electric bills for a two month period. Accounts
shall be transferred into City's name upon receipt of such
deposit. City shall pay electric bills from such deposit and
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forward invoice to RSL as to the amount of such payment. RSL
shall reimburse City within fifteen (15) days of receipt of
invoice. City shall not pay subsequent month(s) bills until
reimbursement has been received from RSL. All other utility
expenses, including treated water, gas, telephone, sewer, and
waste disposal, required to operate the golf course and its
associated facilities will continue to be paid directly by RSL.
C. FAMILY MEMBERSHIP AND JUNIOR SUMMER MEMBERSHIP GREEN
FEES. (New)
The following fees shall permanently take effect on the
effective date of this amendment:
1. Single Annual Membership and Spouse (Weekday and
Weekend)
Single annual membership (current) $385.00
Spouse $150.00
Each dependent $ 90.00
2. Junior Summer Membership (Weekdays Only)
Age 17 and under (May 1 - August 31) $ 90.00
D. HOURS OF OPERATION. (New)
The hours of operation for the course and club house,
including food and beverage area, shall hereinafter be seven days
a week, dawn to dusk, throughout the year except for Christmas
Eve, Christmas Day or when the forecasted daytime high
temperature is below 32 0F."
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 ,
1989.
CITY OF WICHITA FALLS, TEXAS
By:
James Berzina, City Manager
ATTEST:
City Clerk
By:
ATTEST:
Title:
APPROVED AS TO FORM:
Assistant City Attorney
RECREATIONAL SERVICES, LTD.
Title:
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