2020-21 Landmark Golf Management Amendment 3 - SilverRock Golf ManagementRevised May 2017
M E M O R A N D U M
TO: Jon McMillen, City Manager
FROM: Monika Radeva, City Clerk
DATE: June 16, 2020
RE: Landmark Golf Management, LLC, Amendment 3, for SilverRock
Golf Course Management services
Please sign the attached agreement(s) and return to the City Clerk for processing
and distribution.
Requesting department shall check and attach the items below as
appropriate:
X Contract payments will be charged to account number: 601-0000-60208
X Amount of Agreement, Amendment, Change Order, etc.: $ 112,632 Amendment 3
N/A A Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) is
attached with
_____ no reportable interests in LQ or ____ reportable interests
N/A A Conflict of Interest Form 700 Statement of Economic Interests is not required because this
Consultant does not meet the definition in FPPC regulation 18701(2).
Authority to execute this agreement is based upon:
X Approved by the City Council on JUNE 16, 2020
N/A City Manager’s signature authority provided under Resolution No. 2019-021 for budgeted
expenditures of $50,000 or less. This expenditure is $___________ and authorized by
Director
N/A Initial to certify that 3 written informal bids or proposals were received and considered in
selection
The following required documents are attached to the agreement:
X Insurance certificates as required by the agreement – Approved MR June 16, 2020, in LF
N/A Performance bonds as required by the agreement (originals)
X City of La Quinta Business License number LIC-0001185; Exp: 01/31/2021
X A requisition for a Purchase Order has been prepared (amounts over $5,000)
PURCHASE ORDER WILL BE SUBMITTED BY CM’s Office
N/A A copy of this Cover Memo has been emailed to Finance
AMENDMENT NO. 3
TO GOLF COURSE MANAGEMENT AGREEMENT
This Amendment No. 3 (“Amendment 3”) to Golf Course Management
Agreement (“Agreement”) is made and entered as of the 1st day of July 2020
(“Effective Date”) by and between the CITY OF LA QUINTA (“City”), a
California municipal corporation, and LANDMARK GOLF MANAGEMENT, LLC.
(“Manager”).
RECITALS
WHEREAS, on or about July 1, 2013, the City and Manager entered into
an Agreement to provide services related to managing golf course operations
at SilverRock Resort; and
WHEREAS, on or about July 1, 2018, the City and Manager executed
Amendment No. 1 and mutually agreed to amend Section 4.1.1 Management
Fee by an additional $114,000, and to extend the term for one additional year
from July 1, 2018 until June 30, 2019 (“Extended Term”); and
WHEREAS, on or about June 19, 2019, the City and Manager executed
Amendment No. 2 and mutually agreed to amend:
xSection 2.2 Management Term by extending the Term for one
additional year, from July 1, 2019 to June 30, 2020 (“Extended
Term”); and
xSection 3.10.1 Capital Improvement Funds by suspending
deposit from the Golf Course Accounts for the 2% Capital
Improvement Funds until June 30, 2020; and
xSection 4.1.1 Management Fee by increasing the annual
management fee by 4% for a total not to exceed amount of
$119,000 for fiscal year 2019/21; and
xSection 8.1 Termination by City by granting the City sole
discretion, without penalty or cause to terminate the Agreement
on any date after June 30, 2020 with a minimum sixty (60) day
prior Written Notice on early termination to Landmark.
WHEREAS, City and Manager would like to execute Amendment No. 3
and mutually agree to extend the term of the Agreement for one additional
year, from July 1, 2020 to June 30, 2021 (“Extended Term”) pursuant to
Section 2.2 Management Term; and
WHEREAS, City and Manager mutually agree to suspend deposits from
the Golf Course Accounts for the 2% Capital Improvement Funds pursuant to
Section 3.10.1 Capital Improvement Funds until June 30, 2021; and
WHEREAS, City and Manager mutually agree to amend Section 4.1.1
Management Fee by implementing a five percent (5%) annual decrease to the
Management Fee for a total not to exceed annual amount of $112,632 for
fiscal year 2020/21; and
WHEREAS, Section 8.1 Termination by City was amended via
Amendment No. 2 to change the date by which the City, in its sole discretion,
without penalty or cause, may terminate the Management Term on any date
after June 30, 2020, with a minimum sixty (60) day prior Written Notice on
early termination to Landmark, and will remain in full force and effect.
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises
hereinafter contained, and for good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto agree as
follows:
2.2 Management Term
The Management Term shall commence July 1, 2020. The Management
Term and this Agreement shall end on June 30, 2021. The City has the
option to renew the contract for one (1) additional one-year extensions.
3.10.1 Capital Improvement Funds
City shall suspend deposits from the Golf Course Accounts for the 2%
Capital Improvement Funds until June 30, 2021.
4.1.1 Management Fees
Manager shall receive from City an annual Management Fee decrease of
five percent (5%) in the amount of One Hundred and Twelve Thousand
Six Hundred and Thirty-Two Dollars ($112,632) until expiration of the
Agreement.
In all other respects, the Agreement, Amendment No. 1, and Amendment No.
2 shall remain in effect.
SIGNED IN COUNTERPART
SIGNED IN COUNTERPART
SIGNED IN COUNTERPART
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