HomeMy WebLinkAbout06/01/2016 6C AGENDA BILL 6
CITY OF dREMERTON
CITY COUNCIL
SUBJECT: Management Agreement with Study Session Date: May 25, 2016
Columbia Hospitality, Inc. for Management COUNCIL MEETING Date: June 1, 2016
of the Kitsap Conference Center at Department: Financial Services
Bremerton Harborside Presenter: Cathy Johnson
Phone: (360)473-5296
SUMMARY: The City has contracted with Columbia Hospitality (CHI)for management of the Kitsap
Conference Center since its construction in 2003. In the intervening years the management
agreement has been amended three times to update provisions and expand service to Harborside
Fountain Park. In 2015 service was expanded to the recently constructed third floor meeting facilities
in the Bremerton Harborside Transit Building allowing the facility to service larger conferences
requiring additional breakout rooms. The qualiry of the service that Columbia Hospitality provides to
its customers is evidenced by the outstanding customer approval ratings that the facilityreceives.
Due to the economic downturn and sequestration the gross income for the facility has suffered over
the last several years. With an improving economy and the addition of the third floor space,
revenues increased by 12% in 2015 and are showing improvement over budget for 2016. Since CHI
took over management of Gold Mountain Golf Course in 2013 the finro facilities have worked together
to stem expenses at both facilities, for example, their ability to allocate trained employees as needed.
Because of this positive trend, it is staff's recommendation that the City enter into a three year
contractfor management services. The proposed contract does not include an automatic renewal
and any further extension would require City Council approval.
ATTACHMENTS: Management Agreement befinreen the City of Bremerton and Columbia
Hospitality, Inc.
FISCAL IMPACTS (Include Budgeted Amount): The contract provides for an annual management
fee increase of$18,000 which reflects the addition of the Fountain room in Harborside Fountain Park
and the Third Floor space.
STUDY SESSION AGENDA: ❑ No Presentation o Full Presentation
STUDY SESSION ACTION: ❑ConsentAgenda oGeneral Business ❑ PublicHearing
RECOMMENDED MOTION:
Move to approve the Management Agreement with Columbia Hospitality, Inc; and authorize the
Mayor to finalize and execute the agreement with substantially the same terms and conditions as
presented.
COUNCIL ACTION: [�Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01/07/15