HomeMy WebLinkAboutReso - CC - 076-2011RESOLUTION NO. 76-2011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO.3 TO THE AGREEMENT WITH VB GOLF H FOR THE
OPERATION AND MANAGEMENT OF THE BURLINGAME GOLF CENTER
WHEREAS, Burlingame and VB Golf II desire to amend the Agreement between
them for the operation and management of the Burlingame Golf Center, to allow VB Golf
II to reduce its annual use payment and to provide the City a share of VB Golf's gross
sales on certain items at the Burlingame Golf Center (BGC); and
WHEREAS, given the adverse economic conditions of the past two years, the
City of Burlingame is willing to revise the Agreement to provide some relief to VB Golf
II in an effort to encourage VP Golf II's continued use and management of the BGC; and
WHEREAS, the parties have agreed that this amendment to the Agreement shall
become effective on January 1, 2012 and until that time, both parties shall operate under
the current agreement;
NOW, THEREFORE, the City Council of the City of Burlingame does hereby
resolve and order as follows:
1. The City Council hereby approves Amendment No. 3 to the Agreement between
VB GGolf II, as amended, and the City of Burlingame in the form attached hereto and
incorporated herein as Exhibit 'W'.
2. The City Council hereby authorizes the City Manager to execute said Amendment
No. 3 in the form attached hereto and incorporated herein as Exhibit "A".
Terry NS gel, Maor
I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify
that the foregoing Resolution was introduced at a regular meeting of the City Council on
the 7h day of November, 2011, and was adopted thereafter by the following vote:
AYES: Councilmembers: BAYLOCK,BROWNRIGG,DEAL, IOEIGHRAN,NAGEL
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
MaryAlen' Ke ey, City lerk
AMENDMENT NO.3 TO AGREEMENT
BETWEEN THE CITY OF BURLINGAME AND VB GOLF II FOR
CONDUCT OF GOLF OPERATIONS AT THE BURLINGAME GOLF CENTER
THIS AMENDMENT NO. 3, made and entered into this day of 2011, by and
between the CITY OF BURLINGAME, a municipal corporation ["Burlingame"], and VB GOLF 11, a
limited liability corporation ["VB Golf'], amends the Agreement between the parties dated 1999, as
amended by Amendments No. t (2003) and No. 2 (2006) [collectively "Agreement"].
RECITALS
WHEREAS, the City of Burlingame and VB Golf II desire to amend the Agreement
between them for the operation and management of the Burlingame Golf Center (BGC), to allow
VB Golf II to reduce its annual use payment and to provide the City a share of VB Golf II's
gross sales on certain items at the BGC; and
WHEREAS, given the adverse economic conditions of the past two years, the City of
Burlingame is willing to revise the Agreement to provide some relief to VB Golf II in an effort to
encourage VP Golf U's continued use and management of the BGC; and
WHEREAS, the parties have agreed that this amendment to the Agreement shall become
effective on January 1, 2012 and until that time, both parties shall operate under the current agreement;
NOW, THEREFORE, THE PARTIES AGREE TO THIS AMENDMENT AS FOLLOWS:
1. This amendment to the Agreement shall become effective on January 1, 2012. Until that time,
the parties agree that the terns and conditions of the current agreement shall be operative.
2. Section 2.01, "Term and Scope of Service":
Section 2.01, "Term and Scope of Service", is hereby amended to delete the entire first and
second paragraphs of the section and to add a new first paragraph to Section 2.01 to read as
follows:
"VB Golf shall have the exclusive right, license, privilege, and obligation to operate Golf
lessons and activities at BGC for the period from January 1, 2012, to December 31, 2016.
If either party desires to renew the agreement for an additional tern, that parry shall
notify the other party in writing at least four (4) months prior to the end of the term.
Absent such notice, the agreement shall terminate at the end of the term."
All other provisions of section 2.0 1, beginning with the language "The scope of
services...", shall remain unchanged and in full force and effect.
3. Section 2.03, "Compensation":
Subsection "A" of Section 2.03, Compensation" is hereby amended to delete the entire
subsection "A" and to add a new subsection "A". to read as follows:
"A. VB Golf agrees to pay City the following annual payments, paid quarterly:
July 1, 2011 to December 31, 2011 (1/2 year) -$35,000 ($17,500 quarterly)
January 1, 2012 to December 31, 2012 - $70,000 ($17,500 quarterly)
January 1, 2013 to December 31, 2013 - $70,000 ($17,500 quarterly)
January 1, 2014 to December 31, 2014 - $70,000 ($17,500 quarterly)
January 1, 2015 to December 31, 2015 - $70,000 ($17,500 quarterly)
January 1, 2016 to December 31, 2016 - $70,000 ($17,500 quarterly)
In addition to the annual payment paid quarterly, VB Golf agrees to pay City,
quarterly, a percentage of the total gross sales for range balls, short game and
merchandise, as follows:
Total gross sales of $225,000 to $300,000: 25% of total
Total gross sales of $300,000 or more: 50% of total"
All other subsections of section 2.03 shall remain unchanged and in full force and effect.
4. Except as expressly amended by this Amendment No. 3, all other terms and conditions
contained in this Agreement as amended shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment No. 3 on the day and year
first above written
CITY OF BURLINGAME
By
City Manager
Attest:
By
City Clerk
Approved as to form
By
City Attorney
VB GOLF 11
By
Chief Executive Officer