2012/08/01 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 2 PROJECT TITLE: Amendment No. 2 to the Briefing COUNCIL BILL# Premier Golf Management Proposed Action Originating Department Parks Agreement. Consent Contact Person Lori Cummings Action Phone Number 425-257-8353 First Reading FOR AGENDA OF August 1,2012 Second Reading Third Reading Public Hearing Initialed by: Department Head (46) CAA Council President Location Preceding Action Attachments Department(s) Approval City Golf Courses Council approval on Amendment Two Admin,Legal April 6,2011 Amount Budgeted -0- Expenditure Required -0- Account Number(s): Budget Remaining -0- Additional Required -0- DETAILED SUMMARY STATEMENT: On July 27,2007 City Council approved a five year management agreement with Premier Golf Centers,LLC for the American Legion Memorial and Walter E.Hall Golf Courses. The agreement expires on September 30,2012. The agreement may be renewed by mutual consent of both parties for up to a five year period. On April 6,2011 City Council approved Amendment No. 1 to incorporate golf cars under an operating lease. Amendment No. 2 includes three major changes. The first is extension of the agreement to December 31, 2017. The second increases the annual fixed management fee from$12,500 to $13,500 (total for both courses). The third major change is a revision in the gross operating profit thresholds in order to allow the contractor to be eligible for an incentive payment. Several minor changes have also been made. These include the frequency in which customer surveys are conducted and the frequency of facility cleaning. All major and minor changes are summarized in Exhibit A of the Amendment. • RECOMMENDATION(Exact action requested of Council):Authorize the Mayor to sign Amendment No. 2 to the Premier Golf Management Agreement. 7