HomeMy WebLinkAbout6/16/2010 - STAFF REPORTS - 2.Q. 60110 CITY COUNCIL STAFF REPORT
DATE: June 16, 2010 CONSENT CALENDAR
SUBJECT: EXTENSION OF THE MANAGEMENT AGREEMENT WITH CGPM
MANAGERS, LLC AND THE CITY OF PALM SPRINGS FOR THE
MANAGEMENT AND OPERATION OF THE CITY-OWNED LEGENDS
AND RESORT GOLF COURSES FOR TWO YEARS, BEGINNING JULY
1, 2010 THROUGH JUNE 30, 2012
FROM: David H. Ready, Esq., Ph.D., City Manager
BY: Thomas J. Wilson, Assistant City Manager
SUMMARY
On October 22, 2008, the City Council approved an Agreement with CGPM Managers,
LLC, for the management and operation of the city-owned Legends and Resort Golf
Courses. The Agreement set to expire on December 31, 2009, was extended on a
month-to-month basis on December 22, 2009, with all provisions of the Agreement
remaining full force and effect. To date, CGPM Managers, LLC has successfully
managed and operated the golf courses, fulfilling all of the terms of the agreement.
RECOMMENDATION:
1. Staff recommends that the City Council extend the Agreement for two (2) years
beginning July 1, 2010 at the same fee of $225,000 per year and with no changes
in any other terms of the Agreement.
FISCAL IMPACT:
No new fiscal impact. The management fee remains $225,000 per year.
David;Hdy, City r
Douglolland, City Attorney Thoma�JWilsor n,, ssistant City Manager
ITEM NO. f�
AMENDMENT NO, 1 TO
MANAGEMENT AGREEMENT
THIS AMENDMENT NO. 1 TO MANAGEMENT AGREEMENT ("Amendment') is
made and entered into this _ day of 2010 by and between the City of
Palm Springs, a California charter city ("City") and CGPM Managers, LLC ("Manager").
RECITALS
A. City and Manager entered into a Management Agreement for the purpose
of managing the Legends and Resort Golf Courses on October 29, 2008.
B. The initial term of the Management Agreement provided that Management
Agreement would expire on December 31, 2009. The Management Agreement was
extended on a month to month basis and is currently in effect as of the date of this
Amendment.
C. It is the desire of the Parties that the Management Agreement be
extended until June 30, 2012,
AGREEMENT
1. The foregoing Recitals are true and correct.
2. Section 2.3 of the Management Agreement is amended to read, in its
entirety, as follows,
2.3 Term.
The term of this Agreement shall begin on October 28, 2008 and
shall expire at the close of business on June 30, 2012 and shall
automatically renew on a monthly basis thereafter unless or until either the
City or the Manager provides the other Party with at least thirty (30) days
written notice of its intent to not renew the Agreement. Notwithstanding
the foregoing or any other provision of this Agreement, either the City or
Manager shall have the right to terminate this Agreement early without
cause upon 90 days written notice delivered to the other party.
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3. Except as expressly provided above, all other terms and conditions of the
original Management Agreement shall remain unchanged and in full force and effect.
City of Palm Springs
"City"
Date: By:
David Ready, City Manager
APPROVED AS TO FORM: ATTEST:
By: By:
City Attorney City Clerk
CGPM Managers, LLC
"Manager"
Date: By:
Name:
Title:
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