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HomeMy WebLinkAboutReso - CC - 098-2000RESOLUTION NO. 98-2000 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO AGREEMENT FOR OPERATION OF THE BURLINGAME GOLF CENTER WHEREAS, pursuant to California Government Code, the City of Burlingame and VB Golf LLC have entered into that agreement known as Agreement for Operation of the Burlingame Golf Center on November 1, 1999, and WHEREAS, the City and VB Golf desire to simplify the method of exchanging payments between the two entities, and WHEREAS, the City and VB Golf, under terms of the above Agreement, must set a mutually acceptable date for Commencement of Operations at the Burlingame Golf Center, and WHEREAS, the City have agreed on the assignment of ongoing responsibility for the regular cleaning of the Burlingame Golf Center grease trap, NOW, THEREFORE, the City Council of the City of Burlingame does hereby resolve, determine and find as follows: 1. The public interest and convenience require the cooperation of the City of Burlingame and VB Golf LLC and the execution of the agreement amendment cited in the title above. 2. The City Manager shall be, and is hereby authorized to sign said Amendment for and on behalf of the City of Burlingame 3. The City Clerk is hereby ordered and instructed to attest such signature. /msµ rH. o MAYOR I, ANN T. MUSSO, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 18th day of September , and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: COFFEY, GALLIGAN, JAdNEY, SPINELLI, O'MAHONY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE FR L..��- 1711• AMENDMENT NO. 1 TO AGREEMENT FOR OPERATION Of The Burlin ame Golf Center THIS AMENDMENT NO. 1, made and entered into this 6114 day of SPf" I&C� 2000, by and between the City of Burlingame, a municipal corporation [hereinafter "City'% and VB Golf, LLC, a Delaware limited liability company [hereinafter "Operator"], amends the Agreement between the parties dated November 1, 1999 [hereinafter "Agreement"]. RECITALS WHEREAS, City and Operator now have the experience of establishing and opening the Burlingame Golf Center and desire to amend the Agreement to better clarify procedures and responsibilities for the parties pursuant to this Amendment No. 1, NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Paragraph 2.01(1) is deleted in its entirety. 2. Pursuant to Paragraph 2.03(B), the Commencement Date is March 4, 2000. 3. Section 2.12(C) is amended to read as follows: "C. Incentive Management Fee -Operations. Based on the proposal made by Operator and accepted by City, Operator will earn an Incentive Management Fee for its performance with regard to its management of City's Golf Range. The fee is based upon the Gross Receipts derived from range ball and other City revenues collected by Operator. Provided Operator then is current in its payments to City under Sections 2.13 and 2.15 hereof, City will pay Operator 10% of gross range ball and other City Gross Receipts as an earned Incentive Management Fee. Operator and City have jointly developed operational procedures for sales and accounting reports. City will develop a daily report of sales and financial activities compiled from data provided by golf ball dispensing equipment at City's Golf Range; from Operator's point of sale system; and from data provided by Operator. In case of discrepancies or differences in accounting figures, Operator and City shall meet and resolve such differences to the satisfaction of the Operator and the City. Closing statements shall be developed by the City on a semi-monthly basis. Closing statements shall account for the Incentive Management Fee earned during the previous semi-monthly reporting period. The earned Incentive Management AMENDMENT NO. 1— August 28, 2000 -1- Fee, less the amount due for the same period from Operator to City for City's percentage of gross sales of Operator's Golf -Related Activities, shall be paid to the Operator on a semi-monthly basis,. Should the amount of the City's percentage of the Operators' Golf Related Activities due for the period be more than the earned Incentive Management Fee for that period, City will bill the Operator for the difference." 4. Section 2.13 is amended to read as follows: "2.13 Payments to City for Operator Golf Related Activities. Operator will provide golf instruction, merchandise sales and food and beverage sales for the public utilizing City's Golf Shop and Golf Range. In exchange for the use of these facilities, Operator will pay the following to the City: From gross sales derived for individual golf instruction ----------------- 5% of Gross Sales From gross sales derived from group golf instruction -------------------- 0% of Gross Sales From gross sales derived from merchandise sales from BGC ------------ 2% of Gross Sales From gross sales derived from food and beverage sales from BGC ----- 2% of Gross Sales PayMelft fbL ead, nionth will be made to City by the end of the next month- For purposes of this Agreement, "group golf instruction" means concurrent, joint instruction of more than two persons by one or more instructors. As described in Section 2.12(C) above, Operator will only make a direct payment to City for City's earned percentage of Golf Related Activities when the amount owed for this percentage in a semi-monthly period exceeds the amount owed by the City to Operator for the Management Incentive Fee for that period; this direct payment shall only be for the amount owed by Operator that is in excess of the Management Incentive Fee." 5. A new Section XI(B) is added to Exhibit E of the Agreement as follows: "B. Operator shall arrange for regular cleaning of the grease trap facility serving the Burlingame Golf Center. Operator shall be diligent in the servicing of the facility so that possible problems in the grease trap area are prevented to the extent possible, and conformance with City standards for maintenance of these grease traps is met." 6. Except as expressly amended in this Amendment No. 1, all other terms and conditions contained in the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 on the day and year first above written. AMENDMENT NO. 1— August 28, 2000 -2- City: IS Attest: City Manager City Clerk Approved as to form: City Attorney Operator: VB GOLF, LLC By // AMENDMENT NO. 1— August 28, 2000 -3-