HomeMy WebLinkAbout10/03/2012 7A AGENDA BILL 1A
CITY OF BREMERTON
CITY COUNCIL
eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee■
SUBJECT: Resolution No 3181 Study Session Date September 12, 2012
authorizing a sole source contract with COUNCIL MEETING Date October 3, 2012
Columbia Hospitality, Inc for management Department Financial Services
of the Gold Mountain Golf Club Presenter Becky Hasart
Phone 473 -5722
SUMMARY: The proposed resolution authorizes the City to enter into a sole source management
agreement and transition agreement with Columbia Hospitality, Inc for the promotion, operation and
management of the Gold Mountain Golf Club
ATTACHMENTS: Proposed Resolution No 3181 , Proposed Transition Agreement, Proposed Golf
Course Management Agreement, Draft Pro -Forma Scenano (updated)
FISCAL IMPACTS (Include Budgeted Amount) The current proposal on the table is for Columbia
Hospitality to receive a 5% base management fee and a 20% incentive fee for any net operating
income above $600,000 The attached pro -forma shows the impacts of this proposal If the
revenues come in as listed under the yellow highlighted column, the management fee for 2013 would
be $185,048 and the City would be in the positive by $466,864 before any consideration for debt
service and capital reserve With debt service and a targeted 4% of revenue for capital reserve, the
City would be in the positive by $36,796 ($282,030 for 2013 debt service and $148,038 reserved for
capital)
APPROVALS:
DEPARTMENT DIRECTOR
CITY ATTORNEY
FINANCE DIRECTOR
19 4--
MAYOR
RECOMMENDED MOTION:
Move to pass Resolution No 31 61 approving the sole source Golf Course Management
Agreement and the Transition Agreement with Columbia Hospitality, Inc, and further authorizing the
Mayor to negotiate, finalize and execute the agreements with substantially the same terms and
conditions as presented
STUDY SESSION ACTION: ❑ Consent Agenda KGeneral Business ❑ Public Hearing
COUNCIL PRESIDENT
COUNCIL ACTION: Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 11/02/2011