Res 039-87 3/5/1987RESOLUTION NO. j9_ 07
RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NUMBER ONE TO THE CONTRACT
BETWEEN THE CITY OF WICHITA FALLS AND RECREATION
DEVELOPMENT AND MANAGEMENT, INCORPORATED RELATING
TO MANAGEMENT OF THE WEEKS PARK MUNICIPAL GOLF
COURSE
WHEREAS, the City of Wichita Falls entered into a golf course management
contract with Recreation Development and Management , Incorporated,
on January 8 , 1986 ; and
WHEREAS, Recreation Development and Management has requested a change
in the payment provisions of such contract in order to base quarterly
payments on the percentage of gross sales for the quarter; and
WHEREAS, ,such change will not effect the total revenues to be received
by the City in any given payment year; and
WHEREAS, both parties have agreed to certain other technical changes
in the wording of the contract ;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WICHITA FALLS, TEXAS, THAT :
The City Manager is authorized to execute Amendment Number One to the
contract between the City of Wichita Falls , and Recreation Development
and Management relating to the management of Weeks Park Municipal
Golf Course . A copy of Admendment Number One is attached to and made a
part hereof.
PASSED AND APPROVED this the 5th day of March , 1987.
1111r
MAYOR
ATTEST :
City Clerk
STATE OF TEXAS X
COUNTY OF WICHITA X
GOLF COURSE MANAGEMENT
CONTRACT MODIFICATION
WHEREAS, on the 8th day of January, 1986 , the City of Wichita
Falls, Texas , therein and hereinafter referred to as "City" ,
and Recreation Development and Management, therein and hereinafter
referred to as "RDM" , entered into a GOLF COURSE MANAGEMENT
CONTRACT; and,
WHEREAS, the parties now desire to modify the original
contract.
NOW, THEREFORE, in consideration of the premises and at
the request of both parties and in consideration of their desire
to remove ambiguities from the original contract and make the
rights and obligations of the parties more certain, the original
contract between them is hereby modified in respect to payments
made to City as follows:
I . MODIFICATION
Section Twenty-Eight of the original contract is modified
and hereinafter shall provide in its entirety as follows :
SECTION TWENTY-EIGHT. PAYMENTS TO CITY.
RDM 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
Effective date through July, 1986 0 0%
August, 1986 through October, 1986 4 ,000/month 0%
2nd year (beginning 11/1/86) 50 , 000 8%
3-5 years 65 , 000 9%
6-10 years 75 , 000 10%
11-15 years 100 ,000 10%
For any period within the contract term not covered by the
above payment schedule, the payment rate to City shall be ten
percent (10%) of gross revenues or the pro rata equivalent of
100 , 000 . 00 , whichever is greater.
Payments shall be made quarterly in arears, and shall be
due on the 15th day of the first month following the end of the
quarter. Beginning with the period designated as "2nd year"
on the above payment schedule, quarterly interim payments may
be paid according to the scheduled percentage of gross revenues.
Any additional sums due because the minimum annual payment owed
by RDM 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
P. 0. Box 1431
Wichita Falls , Texas 76307
All payments are due and payable on the first day of the
month following each payment period. RDM 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. RDM also agrees that payments received after
2-
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 same rate which the City receives on its
most recent investments .
City acknowledges that RDM 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.
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 1987 .
CITY OF WICHITA FALLS, TEXAS
By:
ATTEST: James Berzina, City Manager
City Clerk RECREATION DEVELOPMENT AND
MANAGEMENT, INC.
By:
Title:
APPROVED AS TO FORM:
Assistant City Attorney
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