Req.#9623
RESOLUTION NO. 35907
WHEREAS, in April 2001, the City entered into an Operating Agreement
2 with Tacoma Firs Golf Center, LLC ("TFGC"), for the operation of the golf
3 center, driving range, and associated facilities located adjacent to the Tacoma
4 Landfill, and
5 WHEREAS, under the Operating Agreement, the City's Solid Waste
6
Management Division not only receives rent from TFGC but also receives a
7
8 portion of the revenues generated by TFGC, and
9 WHEREAS the existing Operating Agreement does not specifically
10 authorize major improvement to the facilities nor does it provide for promotion
11 of TFGC by the City in City publications, and
12 WHEREAS the proposed amendment will authorize TFGC to construct a
13
cover over the second level of the driving range, which is expected to increase
14
TFGC's revenues and, therefore, also increase the revenues received by the
15
16 Solid Waste Management Division, and
17 WHEREAS the City will agree to share in the cost of the construction of
18 the second level cover in an amount roughly proportional to the amount of
19 increased revenues the City expects to receive under the Operating Agreement
20 as a result of the improvements, and
21
WHEREAS, the City's share of the cost of construction of the second
22
23 level cover will consist of a reduction in the monthly arnount.TFGC pays the
24 City and so will not require the City to expend any funds, and
25
26
res9623.doc-ALSJId
LEG 004 (11/89)
WHEREAS the proposed amendment also will provide for the City to
promote TFGC in normal City publications where the City determines that the
2
3 cost to the City is minimal or where the City determines it is appropriate to have
4 TFGC pay for the promotion; Now, Therefore,
5 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
6 That the proper officers of the City are hereby authorized to execute an
7 amendment to the Operating Agreement with Tacoma Firs Golf Center, LLC,
8
for the purposes hereinabove enumerated, said document to be substantially in
9
the form of the proposed Amendment No. 1 to the Operating Agreement on file
10
1 1 in the office of the City Clerk.
12 Adopted JUL 2 9 2003
13
14
Mayor
15 Attest:
16
17
18 City Clerk
19
Approved as to form and legality:
20
21 4:5@
22 Assistant City Attorn6@)
23
24
25
26
4 2 -
res9623.doc-ALS:j1d
LEG 004 (11/89)
CITY CLERK USE
f1N 1-1
REQUEST FOR ORDINANCE Request CG-)
OR RESOLUTION Ordinance
Resolution
ZJ
1. DATE: June 26, 2003
2. REQUESTING DEPARTMENT/DivisION/PROGRAM 3. CONTACT PERSON (for questions): PHONE/EXTENSION
Public Works/Solid Waste Management Alan M. Tebaldi 7739
4. PREPARATIONOFARESOLUTIONISREQUESTEDFORTHECITYCOUNCILMEETINGOFTUESDAYJULY22.
5. SUMMARY TITLE/RECOMMENDATION: (A concise sentence, as it will appear on the Council Agenda)
Authorizing the execution of an amendment to the Operating Agreement for Tacoma Firs Golf Center.
6. BACKGROUND INFORMATION/GENERAL DISCUSSION: (Why is this request necessary? Are there legal
requirements? What are the viable alternatives? Who has been involved in the process?)
In April 2001, the City entered into an Operating Agreement with Tacoma Firs Golf Center, LI-C (TFGC)
for the operation of the golf center, driving range, and associated facilities located adjacent to the
Tacoma Landfill. That Agreement did not provide for major improvement to the facilities. Nor did it
provide for promotion of the Golf Center by the City. The proposed amendment allows TFGC to
construct a cover over the second level of the driving range, which is expected to increase revenues
received by the Solid Waste Utility., in exchange, the City agrees to share in the cost of the construction
in an amount proportional to the expected increased revenues received by the City as compared to the
increased revenues received by TFGC. The proposed amendment also provides for the City to promote
the Golf Center in normal City publications, where the cost to the City is minimal.
7. FINANCIAL IMPACT: (Future impact on the budget.)
It is anticipated that there will be an overall net increase in revenue to the Solid Waste Utility.
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document
Draft amendment City Clerk
9. FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & State $ city $ Other $ Total Amp
Name:
N/A
If an expenditure, is it budgeted? 0 Yes E-1 No Where? Org# N/A
10. ATTORNEYCONTACT: (EnterNameofAttorneythatyou'vebeenworkingwith)
Anne Spangler
Approved as to Availability ofFunds
e gNnager al
GSWehMg,ID@uments. Office SystemsB
(01/99)
AMENDMENT NO. 1
To the OPERATING AGREEMENT
Between the CITY OF TACOMA and TACOMA FIRS GOLF CENTER LLC
THIS Amendment No. 1 is made and entered into this day of
2003, by and between the CITY OF TACOMA, a municipal corporation,
hereinafter referred to as the "City," and TACOMA FIRS GOLF CENTER. LLC, a
Washington limited liability company doing business as Tacoma Firs (hereinafter
referred to as "TFGC").
WHEREAS, the existing Operating Agreement for the operation of the driving
range and golf center facilities on Tacoma landfill property that is known as the
"Tacoma Firs Golf Center" authorizes only minor alterations to the facilities and
provides that any alterations and improvements shall be at the expense of TFGC;
and
WHEREAS, TFGC has proposed an improvement project that will provide a
cover for the second floor of the driving range facility (hereinafter the "Second
Floor Project"), which TFGC believes will increase the revenue generated by the
Tacoma Firs Golf Center, and
WHEREAS, the parties wish to provide a mechanism by which the City may fund
a portion of the cost of the construction of the Second Floor Project through a
reduction in the total monthly installment that TFGC is required to pay to the City
under the Agreement, beginning when construction of the Second Floor Project
commences, and continuing for a period of approximately 120 months; and
WHEREAS, promotion of the Tacoma Firs Golf Center by the City will benefit the
Solid Waste Management ratepayers by increasing revenues received by the
utility;
Now, Therefore, the parties agree to modify the Operating Agreement as follows:
New Section 3.6 is added as follows:
3.6 Second Floor Proiect Cost Deduction: In the event that TFGC
proceeds to construct the second floor cover described in section 1 0. 1 below, the
total monthly fee installment payable to the City shall be reduced by an amount
equal to 0.167% of the total estimated construction costs, not to exceed $666.67
in any given month. This monthly reduction shall begin with the first monthly
installment that occurs after construction of the Second Floor Project
commences, and shall end after 120 monthly payments, or until the aggregate
amount of monthly reductions equals 20% of the actual construction costs,
whichever is earlier. The monthly reduction shall be based upon the total
Amendment No. 1 to
Tacoma Firs Golf Center Operating Agreement
estimated construction cost until completion of the second floor cover, at which
time an adjustment may be made to reflect the actual construction cost.
Section 1 0. 1 is amended to read as follows:
10.1 TFGCmaymakeminoralterationsinoradditionstothe
improvements without having to obtain the written consent of the City. For
purposes of this paragraph, "minor alterations" shall mean alterations which do
not affect the structural integrity of the building. Examples of minor alterations
may include changing the location of electrical outlets or remodeling the interior
of the building. TFGC may also construct a second floor cover for the driving
range upon approval of the plans and the construction costs by the City. Such
approval shall be in addition to the approvals required by the City's Building and
Land Use Services Division., In the performance of such work TFGC agrees to
hold City harmless from any damage, loss or expense and to comply with all
laws, ordinances, rules and regulations of any proper public authority. Upon
termination of this Agreement, such alterations, additions and improvements
made in, to or on the Property (except unattached moveable business fixtures)
shall remain upon and be surrendered as a part of the Property. With the
exception of the monthly fee reduction described in section 3.6 above, any such
alterations, additions and improvements shall be at the sole expense of TFGC.
New Section 32.6 is added as follows:
32.6 Promotions: The City agrees to promote the services of Tacoma
Firs Golf Center in normal City publications as the City deems appropriate,
provided there is minimal cost to the City for such promotion. If any promotions
exceed what the City deems a minimal cost, the City may allow TFGC to proceed
with the promotion at its own cost.
Amendment No. 1 to
Tacoma Firs Golf Center Operating Agreement
_2-
IN WITNESS WHEREOF the parties hereto have executed this Amendment
No. 1 to the Operating Agreement as of the day and year first written above.
CITY OF TACOMA TACOMA FIRS GOLF CENTER
LLC
Bv
James L. Walton, Interim City Manager
By
Countersigned:
Tacoma Firs Golf Center LLC
William L. Pugh, P.E. c/o 11716 Madera Drive SW
Director, Public Works Dept. Lakewood, WA 98499
Steven A. Marcotte e@
Finance Director
Debbie Dahlstrom, Interim Risk Manager
Approved as to form:
Anne L. Spangler
Assistant City Attorney
Attest:
Doris Sorum, City Clerk
Amendment No. 1 to
Tacoma Firs Golf Center Operating Agreement
-3-
Resolution No. 35907
Adopted: JUL 2 s 2003
Maker of Motion: "rjAy et--3-4,;
Seconded:
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr.Evans
Ms. Ladenburg
Mr. Lonergan
Dr. McGavick
Mr. Miller
Ms. Moss
Mr. Phelps
Mr. Talbert
Mayor Baarsma
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr.Evans
Ms. Ladenburg
M r. Lonergan
Dr. McGavick
Mr. Miller
Ms. Moss
Mr. Phelps
Mr. Talbert
Mayor Baarsma
g: @cityclk Vorms @re sol. doc