HomeMy WebLinkAbout2nd Amendment to Mgmt Agmt
.
..
,.
SECOND AMENDMENT TO THE INTERIM MANAGEMENT AGREEMENT FOR
THE CITY OF MIAMI BEACH NORMANDY SHORES GOLF COURSE BETWEEN
THE CITY OF MIAMI BEACH AND PROFESSIONAL COURSE MANAGEMENT II
LTD.
This Second Amendment to that certain Agreement, dated September 5, 2001, and
effective October 1, 2001, between the City of Miami Beach, Florida ("City"), and Professional
Course Management II Ltd. ("PCM II"), to Provide Professional Services for the Management of
the City's Normandy Shores Golf Course (the "Agreement"), and as amended on November 25,
2003 (the "First Amendment"), is entered into this /714 day of )/1f/t.{I/f , 2004 (the
"Second Amendment").
RECITALS
WHEREAS, the City currently has an Agreement with PCM II for professional services
for the management of the City's Normandy Shores Course, as amended by the First
Amendment, and effective through April 30, 2004, or until closure of Normandy Shores Golf
Course for planned construction/renovations, which ever is first; and
WHEREAS, due to the delay relative to the closure of the Normandy Shores Golf
Course and the additional costs associated with such delay, a portion of which have been borne
by PCM II, the City and PCM II have realized that amendments to certain terms and conditions
of the Agreement are necessary; said amendment(s) extending the term of the Agreement
through April 30, 2005; and
WHEREAS, the Second Amendment, as set forth below, is in the best interest of the
City and PCM II for a continued relationship between the parties and for PCM II to continue to
provide the exceptional level of service expected by the City;
NOW THEREFORE, in consideration for the mutual covenants and promises provided
herein and which are part of the Agreement, the parties herein agree to amend the Agreement as
follows:
1. Section 3 of the Agreement entitled "TERM", is hereby amended to read as follows:
The Term of this Agreement shall begin on October 1, 2001 and conclude on April 30, 2004-
2005, or immecliately upoa the closlHe of Normaeay Shores Golf Course for planned
eenstmetionlronoyations, which ovor is fI-rst, including a cancellation clause upon sixty (60) day~
written notice to PCM II for convenience and without cause, to be exercised at the will of the
City, if deemed in the best interest of the City, subject to the City's rights to terminate same
pursuant to Section 15 of the Agreement.
2. Section 4 of the Agreement entitle "RENT", is hereby amended to read as follows:
In consideration of the City executing this Agreement, and granting the rights provided in this
Agreement, PCM II shall pay the City $6,000 per month, or a total of $72,000 annually. If after
the closure of the Bayshore Golf Course there is a 20% increase in the number of rounds of golf
played at the Normandy Shores Golf Course (over a base annual number of 45,000 rounds and a
monthly allocation as broken down in Attachment "Exhibit A") the monthly payment will
increase from $6,000 to $9,000 for the month. In consideration for PCM II continuing to provide
professional golf course management services through April 30, ~ 2005, ar liBtil the elasaro
of NOfR'um.dy Shores Golf CoW'so for planned constmetioa/roRElVations, ',vhieh ever is fIrst, the
parties agree that, commencing retroactively on May 1, 2003, and continuing through the end of
the term of this Agreement, the City shall abate all future rent due as provided for in the
Agreement. Notwithstanding the aforestated rent abatement, all the other terms and conditions of
the Agreement, as amended herein, shall continue to apply.
3. Section 123 of the Agreement entitled "Personal Property" and found under Section 12
entitled "ALTERATIONS, MAINTENANCE. AND REPAIRS", is hereby amended to
read as follows:
At the commencement of this Agreement the City will purchase or lease the necessary golf
course maintenance equipment, as mutually agreed upon by both parties, for Normandy Shores
Golf Course, and as shall offered and incorporated herein as Exhibit A. PCM II, will pay the
City for approximately 75% of the annual cost of this maintenance equipment expense. Said
payment should be submitted at the time the rent payment is made, PCM II will be responsible
for the maintenance and proper operation of all equipment, to ensure that all warrantees and
guarantees remain in effect. It is further understood that this golf course maintenance equipment
will be relocated to the Bayshore Golf Course when it reopens, and at that time the 100% of the
cost for the lease/ purchase will be the responsibility of the City. A list of City provided golf
course equipment included in the Agreement for use by PCM II during the term hereof, is
attached and incorporated herein as Exhibit D. PCM II shall maintain all City-owned equipment
at its sole cost and all equipment such other equipment as may be necessary to maintain the
Premises in a condition which satisfies those maintenance standards set forth in Exhibit C. The
City shall have the right to periodically take an inventory of any or all equipment on the
Premises, In consideration for PCM II continuing to provide professional golf course
management services through September 30, ~ 2005, or URtil the clas1:lre of NormaRay
Shares Golf Ca1:l,rse for ]3laRHod eal'lstruetion/l'ellayations, '.vhieh eyer is first, the parties agree
that, commencing retroactively on May 1, 2003, and continuing through the end of the term of
this Agreement, PCM II shall have no responsibility to pay the City for approximately 75% of
the annual cost of this maintenance equipment expense, and the City shall assume all such costs.
Notwithstanding the aforestated waiver of responsibility for equipment maintenance costs, all the
other terms and conditions of the Agreement, as amended herein, shall continue to apply,
The parties further acknowledge that if deemed necessary, PCM II will be responsible to
supplement the maintenance equipment through either the direct lease or purchase by PCM II of
any equipment not included in Exhibit D, to be used for the operation and maintenance of the
Premises,
4. Section 1,1 of the Agreement entitled "Real Property" and found under Section 1 entitled
"PREMISES TO BE MANAGED", is hereby amended to read as follows:
Those certain City owned golf course commonly known as:
a, Normandy Shores Golf Course, 2401 Biarritz Drive (excluding sanitary sewage area)
Together with all buildings, improvements and fixtures located thereon,
In consideration for PCM II continuing to provide professional golf course management services
through April 30, ~ 2005, or lffitil the e1osl:H'o af NormaRay Shores Galf COl:H'se for ]3laRHed
eaflstmetian/reBa'/atiol'ls, whieh ever is first, the parties agree that commencing retroactively on
May 1, 2003, and continuing through the term of this Agreement, the terms and conditions of
this Agreement shall not apply to, and PCM II shall not provide professional services for, the Par
3 Golf Course, 2795 Prairie Avenue, and the City shall assume management responsibility for
that Golf Course, Notwithstanding the aforestated release of duty to provide services for the Par
3 Golf Course, all the other terms and conditions of the Agreement, as amended herein, shall
continue to apply,
[THIS PAGE LEFT INTENTIONALLY BLANK]
IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed
by their duly authorized officers and representatives as of the day and year first above written, as
a sealed instrument.
~tf~
CITY CLERK
BY:
ATTEST:
ATTEST:
d),,- '
PROFESSIO AL COURSE MANAGEMENT II,
LTD, (PC II)
LA PONZINA
PRESIDENT
BY:
SECRETARY
(CORPORATE SEAL)
I F:\atto\AGUR\AGREEMNTIPCM-Normandv GolfCo"rse Second Amend-Redline,doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1-{ ~c..{
Data