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1ACT NO.
AMENDMENT NO. 3 TO
CITY SECRETARY CONTRACT NO. 23858
CITY OF FORT WORTH GOLF OPERATIONS
FOOD AND BEVERAGE AGREEMENT
THIS THIRD
�� y NT to City Secretary Contract Number 23858 is
entered into this da of. ,,�
2004, by and between the City
of Fort Worth, a home rule municipal corporation situated in Tarrant, Denton and Wise
Counties, Texas (hereinafter referred to as "City") acting by and through Libby Watson,
its duly authorized Assistant City Manager, hereinafter referred to as "City", and PRP
Food Services, Inc., acting herein by and through Phil Parker, its duly authorized
President, hereinafter referred to as "Contractor."
WHEREAS, on the 11th day of May, 1998, the City of Fort Worth and PRP Food
Services, Inc. entered into an agreement whereby PRP Food Services, Inc. is to provide
food and beverage concessions at the Pecan Valley, Meadowbrook and Rockwood
Municipal Golf Courses, same being City of Fort Worth City Secretary Contract No.
23858, amended August 3, 1999 by City Secretary Contract No. 25126; and January 10,
2001 by City Secretary Contract No. 26484; and
WHEREAS, since the execution of City Secretary Contract No. 23858, staff has
determined that the number of golf rounds have dropped over thirty percent from the
1997 levels; and
WHEREAS, an overbuilt golf course market area coupled with a sluggish
economy and anticipated future golf course construction will require closure of some
portions of City golf facilities; and
WHEREAS, the parties to City of Fort Worth City Secretary Contract No. 23858,
as amended by City Secretary Contract Nos. 25126 and 26484, desire to amend the terms
thereof to address the effects of the reduced golf rounds on gross sales and the golf course
snack shops by allowing a comparable decrease in the guaranteed minimums.
NOW, THEREFORE, KNOW ALL BY THESE PRESENTS:
The City and Contractor do hereby agree as follows:
1.
Paragraph 3, FEES AND PAYMENTS, of City of Fort Worth City Secretary
Contract No. 23858, as amended under City Secretary Contract Nos. 25126 and 26484 is
hereby amended by amending Section 3.1 to reduce the annual rental
payment. from.
$60,000.00 to $40,000.00 to read as follows:'
3.1 Contractor, for and in consideration of the use of the Facilities and
the rights and privileges granted hereunder, hereby covenants and
agrees to pay the City without notice and free from any and all
claims, deductions or set-off against the City, rent for each
Contract Year of the term hereof, the greater of (1) $40,000 or (2)
ten percent (10%) of gross sales as hereinafter defined.
All other terms, conditions and covenants of Section 3.1 shall remain
in full force and effect.
2.
All other terms, conditions and covenants of City of Fort Worth City Secretary
Contract No. 23858, as amended by City Secretary Contract Nos. 25126 and 26484, not
expressly amended herein remain in full force and effect.
Executed this the ,'' Y M day of J" , 2004.
CITY,FORT WORTH
�b y Watso ._ ,
Assistant City Manager
ATTEST:
lor
Ga Pearson Cites
;t y Secretary
APPROVAL RECOMMENDED:
Randle H'arwo d, Acting Dii''ector
Parks and Community Services
Contract Authorization
Date
PRP FOOD SERVIC S, INC.
Phil ar, er, President
oK�.PQ% JOHN E M"FIELO
ATTEST:*Jco*� i NOTARY PUBLIC
State of Texas
'Z of Comm. Exp, 03-07-2005
S
APPROVED AS TO FORM AND
LEGALITY:
David Yett, City Attorney
Assistant ity Attorney
"
¢7
"
W TPA o a you • `"
COUNCIL • Approved • 2/17/20'04
Tuesday, -• 114
LOG NAME: 80PRP#3 REFERENCE NO.: C-19970
SUBJECT:
Execution of Contract Amendment No. 3 with PRP Food Service, Inc. to Reduce Guaranteed
Minimums at Pecan Valley, Meadowbrook and Rockwood Golf Courses
I7xXiPiP [AHIL•7-ZE
It is recommended that the City Council authorize the City Manager to execute an amendment with PRP
Food Service, Inc. to reduce annual guaranteed minimums from $60,000 to $40,000 through the remainder
of their contract.
DISCUSSION:
On April 21, 1998 (M&C C-16735), the City Council authorized the City Manager to execute a five (5) year
agreement with PRP Food Service, Inc. (PRP) for the management and operation of the snack shops at
Rockwood, Pecan Valley and Meadowbrook golf courses. This was a result of a golf management study,
which recommended that one concessionaire specializing in food and beverage operations operate the golf
course snack shops.
On July 20, 1999 (M&C C-17535), the City Council authorized an amendment that reduced the guaranteed
minimum PRP paid to the City during golf course construction at Pecan Valley from $60,000 to
$50,000. The 10% of gross sales originally stated in the contract were retained. Additionally, on December
19, 2000 (M&C C-18400), the City Council authorized amendment No. 2 (M&C C-18400), that reduced
gross sales from 10% to 5% at Pecan Valley due to lost revenues following extended closure for
renovation. Both of these amendments reverted back to the original $60,000 guarantee once facilities were
reopened.
An overbuilt market area, the current sluggish economy and anticipated future golf course construction will
require closure of some portions of the golf facilities. This will reduce the total number of golf rounds being
played at the facilities. Staff has reviewed the number of rounds upon which the contractor based its
original pro forma and determined that rounds have dropped over 30% from 1997 levels. It is staff's belief
that the contractor should receive a comparable decrease in the guaranteed minimums. Amendment No. 3
would reduce the guaranteed minimums from $60,000 per year to $40,000. The 10% of gross sales
originally stated in the contract will be retained. The proposed amendment would be effective as of January
1, 2004, and remain effective through the remainder the of the contract period, ending in September 2005.
Both the Golf Advisory Committee and the Parks and Community Services Advisory Board approved a
motion to endorse this contract amendment at their regularly scheduled meetings of January 7 and 20,
2004, respectively.
Rockwood Golf Course is located in COUNCIL DISTRICT 2.
Pecan Valley Golf Course is located in COUNCIL DISTRICT 3.
Logname: 80PRP#3 Page 1 of 2
` Meadowbrook Golf Course is located in COUNCIL DISTRICT 4.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Municipal Golf Fund of the Parks and Community Services
Department will be responsible for the collection and deposit of all revenues due the City under this
contract.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE39 466252 VARIOUS $0.00
Submitted for City Manager's Office by. Libby Watson (6183)
Originating Department Head: Randle Harwood (Acting) (5704)
Additional Information Contact: George Kruzick (5717)
Logname: 80PRP#3 Page 2 of 2