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Home My WebLink About2012-04-24; Public Financing Authority; 44; Extension of Kemper Sports AgreementPUBLIC FINANCING AUTHORITY - AGENDA BILL 10 44 4/24/12 P&R EXTENSION OF KEMPER SPORTS MANAGEMENT AGREEMENT FOR THE CROSSINGS AT CARLSBAD DEPT.DIRECTOR ^ GEN COUNSEL EXEC DIR. rC9 RECOMMENDED ACTION: Approve Resolution No. 58 extending the golf course management agreement with Kemper Sports Management for an additional 6 month period. ITEM EXPLANATION: In May 2006, the Carlsbad Public Financing Authority (the "Authority") entered into an agreement with Kemper Sports Management (KSM) to operate the soon to be opened City golf course - The Crossings at Carlsbad. The term of the agreement was to be 5 years from opening day which was July 28, 2007. The agreement is scheduled to terminate on July 28, 2012 however a clause in the agreement allows for an additional 5 year extension should both parties agree. Although satisfied with the performance of KSM to date, staff is recommending that the Authority issue a request for proposals to determine the current best value in the market for golf course managers. The timing for issuance of a request for proposals and possible change of management would best occur in the winter months rather than in August for the following reasons: 1. Summer is typically the high season for golf and events (i.e. weddings, tournaments, etc.) and if the Authority were to change management companies it may result in significant disruption and possible loss of revenues. 2. Recently the golf course revenues have been trending upward and the food and beverage revenues continue to be strong. Staff feels it is important to keep this momentum moving fonward without interruption. 3. We have several projects at the course undenA/ay and KSM is playing an integral part in implementing them. Therefore, staff recommends that the Authority extend the current KSM contract for a period of 6 months from July 28, 2012 to January 28, 2013 under the same terms and conditions of the existing contract. KSM is agreeable to this extension. Staff anticipates issuing a request for proposals in August/September 2012 with the Authority awarding a contract for golf course management by the end of the year to the best value operator. If the selected firm is other than KSM, there will need to be a transition period in January 2013. DEPARTMENT CONTACT: 760-434-2855 mark.stevaert@carlsbadca.qov FOR SECRETARY'S USE ONLY. BOARD ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • WITHDRAWN • RETURNED TO STAFF • AMENDED • BOARD RECEIVED THE • REPORT/PRESENTATION OTHER-SEE MINUTES • Pg.2 ENVIRONMENTAL IMPACT Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. FISCAL IMPACT: The calendar year 2012 budget has already been approved by the Carlsbad Financing Authority and therefore there is no additional fiscal impact to retaining KSM through the end of the year. Appropriation for the period that covers January 2013 will be included in the calendar year operating budget brought forward in the fall. EXHIBITS: 1. Resolution No. 58 extending the agreement with Kemper Sports Management for an additional 6 month period 2. Amendment to the Kemper Sports Management Contract z 1 RESOLUTION NO. 58 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC FINANCING AUTHORITY, EXTENDING THE GOLF COURSE MANAGEMENT AGREEMENT BETWEEN THE CARLSBAD PUBLIC FINANCING AUTHORITY AND KEMPER SPORTS 5 MANAGEMENT FOR AN ADDITIONAL SIX MONTHS WHEREAS, the Carlsbad Public Financing Authority (the "Authority") currently has a Golf Course Management Agreement ("Agreement") (dated May 10, 2006) with 6 7 8 g Kemper Sports Management (KSM) to manage The Crossings at Carlsbad ("The 10 Crossings") golf course; and 11 WHEREAS, KSM is currently managing the The Crossings in accordance with 12 the said Agreement; and WHEREAS, the Agreement is scheduled to expire on July 28, 2012; and WHEREAS, it is in the best interest of the Authority to extend the Agreement for six additional months to January 28, 2013. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Public Financing Authority as follows: 1. That the above recitations are true and correct. 14 15 16 17 18 19 20 2. That the Golf Course Management Agreement with Kemper Sports Management 21 for management of The Crossings at Carlsbad golf course (dated May 10, 2006) is hereby extended by six (6) months to January 28, 2013. 23 3. That other provisions of the current Agreement remain in full force and effect. 24 " 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad Public Financing Authority held on the 24*^ day of April 2012, by the following vote to wit: AYES: Board Members Hall, Kulchin, Blackburn and Packard. NOES: None. ABSENT: Board Member Douglas. ATTEST: ORRAiHE M, WOOD, Secretary (SEAL) ^ -Oris V/, .tV Exhibit 2 AMENDMENT NO.1 TO EXTEND THE AGREEMENT FOR GOLF COURSE MANAGEMENT KEMPER SPORTS MANAGEMENT This Amendment No. 1 is entered into and effective as of the C3(J?^ day of CLfiJuJi , 2012, extending the agreement dated May 10, 2006 (the "Agreement") by and between the Carlsbad Public Financing Authority (the "Authority"), and Kemper Sports Management, ("Contractor") (collectively the "Parties") for golf course management of The Crossings at Carlsbad. RECITALS A. On May 10, 2006, the Parties entered into the Agreement to for golf course management; and B. The Parties desire to extend the Agreement for a period of six (6) months. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein. Authority and Contractor agree as follows: 1. The Agreement, as may have been amended from time to time, is hereby extended for a period of six (6) months ending on January 28, 2013. 2. All other provisions of the Agreement, as may have been amended from time to time, shall remain in full force and effect. 3. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, as may have been amended from time to time, shall include coverage for this Amendment. City Attorney Approved Version 5/12/11 4. The individuals executing this Amendment and the instruments referenced on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions hereof of this Amendment. CONTRACTOR CARLSBAD PUBLIC FINANCING AUTHORITY Chairman of the Board ( (print name/title) ATTEST: )n here) (print name/title) ^ L(2fRRAI^ M. WO Secretary If required by Authority, proper notarial acknowledgment of execution by Contra^pjl attached. If a corporation. Agreement must be signed by one corporate officer from''6^|;]|(j),f^^i^^^ following two groups: Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney BY: ^sistant City Attorney City Attorney Approved Version 5/12/11 Kira Liivber From: Sent: To: Cc: Subject: Attachments: Agenda Item # /0 For the members ofthe: ;ipr COUNCIL ACM ^"DCM Chris Cate <chris@sdcta.org> on behalf of Lani Lutar <lanfasdcta ora^. " V- " Tuesday April 24, 2012 3:21 PM L«WOpij,=C!ty Manage Lisa Hildabrand Council Internet Email; Chris Hazeltine Request for Proposals for Management of City Golf Course Letter to Carlsbad re Golf Course RFP, 4-24-12.pdf Sin l >k-K*«)< iHUUv I'cix payers i Association Taxpmy»n vmtctvSog tlncm IUS 707 Broadway, Suite 905, San Diego, CA 92101 • P: (619) 234-6423 • F: (619) 234-7403 • www.sdcta.org April 24, 2012 Lisa Hildabrand City Manager City of Carlsbad 1200 Carlsbad Viiiage Dr. Carlsbad, CA 92008 Re: Request for Proposais for Management of City Golf Course Dear Ms. Hildabrand: Date:_ Distributio'h: City Clerk Asst. City Clerk Deputy Clerk Book It IS our understandmg that the current five-year contract for management ofthe City of Carlsbad's (City) golf course The Crossings, is set to expire in August 2012. Because ofthe ongoing subsidy by the City, the San Diego County Taxpayers Association recommends that the City issue a Request for Proposals (RFP) for management ofthe golf course prior to the termination date ofthe current contract. Since the golf course opened in 2007, subsidies from the City to balance the budget of the golf course have totaled approximately $6.2 milhon. The coui'se has also been a recipient of SDCTA's Grand Golden Fleece Award due to the continuous need for taxpayer subsidies to cover annual operating losses. Before the contract expires, the City should move forward with an RFP to identify a management company to provide the best service at the best value service for Carlsbad City taxpayers, recognizing that the agreement can be stmctured in a variety ot ways to mimmize risks and liabilities for taxpayers (e.g. absoiption ofthe subsidy). ^fo^^^.Ti^^.^^''"f consideration of our recommendation. If you have any questions, please feel free to contact me at (ol9) 234-6423 or lanira.;sdcta.org. Sincerely, Lani Lutar President and CBO LLycjc"""" cc: Mayor Matt Hall Honorable City Council Chris Hazeltine, Director, Parks & Recreation Chris Cate | Vice President j San Dlego County Taxpayers Association 707 Broadway, Suite 905 | San Diego, CA 92101 T: (619) 234-6423 xll | F: (619) 234-7403 j C: (760) 845-9223 E; rhris(S)sdcta.org I Twitter: twitter.com/sdcta Taxpayers Watchdog since 1945 Join SDCTA. San Diego's only independent, non-partisan government watchdog.