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HomeMy WebLinkAboutORD 87-11 I ORDINANCE NO. 7- ENTITLED AN ORDINANCE AUTHORIZING EXECUTION OF A MANAGEMENT AND CONCESSION AGREEMENT WITH THE BEAUMONT YACHT CLUB; AMENDING THE BUDGET OF THE CITY OF BEAUMONT FOR THE FISCAL PERIOD COMMENCING OCTOBER 1 , 1986 AND ENDING SEPTEMBER 30, 1987 BY ESTABLISHING A NEW ENTERPRISE FUND CALLED THE "MARINA FUND"; AUTHORIZING A LOAN OF FIVE HUNDRED THOUSAND DOLLARS ($500,000 ) FROM THE GENERAL FUND TO THE MARINA FUND; AND AUTHORIZING THE TRANSFER OF THIRTY (30 ) ACRES OF REAL PROPERTY FROM THE LANDFILL FUND TO THE MARINA FUND; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1 . That the City Manager be, and he is hereby, authorized to execute a management and concession agreement substantially in the form attached hereto as Exhibit "A". Section 2. The budget of the City of Beaumont for the fiscal period commencing October 1 , 1986 and ending September 30, 1987 be, and the same is hereby, amended as follows: There is hereby created a new Enterprise Fund to be known as the "Marina Fund". The sum of Five Hundred Thousand Dollars ($500,000) is hereby allocated and appropriated to the Marina Fund from the General Fund, fund balance, said allocation to be in the form of a loan repayable to the General Fund by the Marina Fund over a fifteen (15) year period with terms and conditions i parallel to the repayment formula set out in the Management and Concession Agreement attached hereto as Exhibit "A". Thirty (30) acres of land presently in the Landfill Fund valued at Three Hundred Forty-Seven Thousand Three Hundred Dollars ($347,300) is hereby transferred to the Marina Fund. Section 3. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 4. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 10 ?114 day of �G�� , 1 987. Mayor - 2 - Management and Concession Agreement THE STATE OF TEXAS COUNTY OF JEFFERSON WHEREAS, the City of Beaumont, a municipal corporation domiciled in Jefferson County, Texas, hereinafter called "City" and Beaumont Yacht Club, Inc. , a Corporation domiciled in Jefferson County, Texas, hereinafter called "Yacht Club" have heretofore entered into a lease contract concerning the property described in Exhibit "A" attached hereto and made a part hereof for all purposes (herein "facility"; and, WHEREAS, the parties recognize the mutual benefit to Yacht Club and City derived from the existence of a first class boating marina and yacht club on the facility; and, WHEREAS, to that end, City and Yacht Club agree as follows: 1 . City and Yacht Club mutually cancel and rescind the lease contract on the facility presently existing between the parties executed on the 29th day of September, 1978 as of the date of completion of improvements as that phase is defined in paragraph 4. 2. City hereby agrees to improve the facility in a manner consistent with the master plan of improvement as shown and described on Exhibit "B" attached hereto and made a part hereof for all purposes. Specific plans, specifications, and/or bids for improvements to the facility will be subject to approval of both Exhibit "A" i City and Yacht Club. Such approval shall not be unreasonably withheld by either party. 3. City hereby agrees to improve and pave the road to the facility and include that road in the city' s normal street maintenance program. It is estimated that the costs of such improvement shall not exceed Forty-Four Thousand Dollars ($44,000 ) . 4. Commencing upon the date of completion of improvements, as that phrase is defined herein, Yacht Club shall commence management and concession payments to the City of Beaumont. Management and concession payments shall be paid monthly by Yacht Club. Such payments shall be determined as follows: The principal amount shall be equal to the cost to pave the road to the facility and complete the improvements shown and described on Exhibit "B". The City engineer shall provide documentation of such cost to Yacht Club but the City engineer' s determination of cost shall be final. Such principal amount shall be amortized over fifteen ( 15) years at an annual interest rate of 6.56% for the first twelve (12) months of this agreement. Thereafter, the interest rate shall be the ninety (90 ) day Treasury Bill yield as of July 31 each year plus one percent ( 1 %) . City will provide Yacht Club a calculation of monthy payments each year. Interest rates used in calculation of payments hereunder shall not go below six percent (6%) per annum or above eleven percent (11 %) per annum regardless of the Treasury Bill yield. "Date of Completion of Improvements", as used herein, shall mean the first of the month next following the date upon - 2 - i which improvements upon which improvements described on Exhibit "B" are substantially complete and certified as substantially complete by City Engineer of City. The term of this agreement shall be for a period of fifteen (15) years commencing with the date of completion of improvements. At the expiration of this agreement, the Yacht Club shall have first option to renew a management agreement on the facility with terms that are mutually agreeable to both the City and the Yacht Club. 5. During the term of this agreement, all operating costs of the facility shall be paid by Yacht Club. In addition thereto, Yacht Club shall carry fire and extended coverage insurance on all structures described in Exhibit "B" and general liability, and contractual liability coverage in the amount of Three Hundred Fifty Thousand Dollars ($350,000 ) per occurrence. Yacht Club hereby indemnifies the City of Beaumont from any and all liabilities, claims, damages, injuries and costs which may arise against the City of Beaumont for any such claims, damages, injuries, . liabilities and costs arising from operation of the facility, specifically including such liabilities, claims, damages, injuries and costs which are alleged to have arisen from the negligence of City. 6. Yacht Club may make capital improvements other than those described in Exhibit "B" subject to the approval of City Engineer of City. Such approval shall not be unreasonably withheld. The partys may cancel this agreement by mutual consent. Yacht Club' s - 3 - obligations to make payments to the City of Beaumont, as set out herein, can be affected or reduced by any mutually agreed cancellation of this agreement. In the event that this agreement is cancelled, all obligations set forth in the agreement are also cancelled. 7. Yacht Club agrees to operate and manage the facility located on Exhibit "A" hereto as a public marina facility. The initial schedule of authorized charges for use of the facility are attached hereto as Exhibit "C", but may be amended from time to time with the approval of City Manager of City. All such amendments to the schedule shall be in writing and shall be filed with the City Clerk of City as a public record. In the operation of said facility, Yacht Club shall be responsible for the maintenance of the facility and agrees to keep said facility in a safe condition and not to permit any hazardous conditions to exist on said facility. Yacht Club further agrees not to use all or any part of said facility for any unlawful purpose. 8. Yacht Club shall be responsible for the payment of all charges for water, gas, sewage, garbage, trash and other utility charges incurred during the term hereof. 9. Yacht Club shall have no authority to incur any obligation on behalf of the City nor does City have any authority to incur any obligations on behalf of Yacht Club concerning the facility. This Management and Concession Agreement shall not be assignable in - 4 - I whole or in part by Yacht Club or City without the written consent of the other party. 10. Yacht Club agrees to provide City with an annual financial statement of its operations on the facility no later than one hundred twenty (120 ) days after the close of its fiscal year. The statement is to be performed in a manner common to sound business accounting practices. During the term of this agreement City retains the right, upon reasonable notice, to examine the books and records of Yacht Club. Yacht Club shall, at all times, keep the property of City free and clear of all liens, attachments, encumbrances or claims arising out of Yacht Club' s operations. 11 . Yacht Club shall, at its own expense, employ such competent help and personnel as it shall deem necessary for the safe operation and management of the facility. 12. In the event either party defaults in the performance of any of its obligations under this agreement, and such default continues uncorrected for thirty (30) days after written notice from the other party of the particular default, said notice being given by registered mail, return receipt requested, addressed to the defaulting party at its address as hereinafter set forth, thereupon, at the sole election of the non-defaulting party, this agreement may be terminated. 5 - 13. All notices required to be given hereunder by City to Yacht Club shall be in writing, by mail, telegram, prepaid, and addressed to Yacht Club as follows: Steven C. Barkley 815 Goodhue Bldg. Beaumont, Texas 77701 All notices required to be given by Yacht Club to City shall be similarly given, address to City as follows: City Manager City of Beaumont P. O. Box 3827 Beaumont, Texas 77704 Provided that either party may, by notice in writing to the other designate any additional of alternative address to which such notices shall be given. 14. This agreement shall be deemed to be made and shall be performable in Jefferson County, Texas and shall be construed in accordance with the laws of the State of Texas. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day of , 1987. BEAUMONT YACHT CLUB ATTEST: By. 6 - I CITY OF BEAUMONT Albert E. Haines ATTEST: City Manager City Clerk 7 - Exhibit "A" W I T N E S S E T H : Owner does, by these presents, lease, let and demise unto Lessee the following described property, to-wit: BEING a tract of land of approximately 30.18 acres out of the W. H. Hodges Survey and the James Drake Survey, in the City of Beaumont, Jefferson County, State of Texas, and being more particularly described by metes and bounds as follows: BEGINNING at the intersection of the north right-of-way line of the Interstate Highway 10, with the left ascending bank of the water' s edge of the Neches River; THENCE in a northeasterly direction following the left ascending bank of the water' s edge of the Neches River up said river with its meanderings one thousand eight hundred (1800 ' ) feet more or less, to a point lying one thousand six hundred fifty ( 1650 ' ) feet perpendicularly distant from the said north right-of-way line of Interstate Highway 10; THENCE West along a line parallel with and one thousand six hundred fifty (1650 ' ) feet distant from the said north right-of-way line of Interstate Highway 10, one hundred eighty (180 ' ) feet more or less to a point for corner; THENCE in a southwesterly direction one hundred fifty (150 ' ) feet from and parallel to the left ascending bank of the Neches River a distance of seven hundred (700 ' ) feet more or less, to a point for corner, said point being one thousand ( 1000 ' ) feet perpendicularly distant from the north right-of-way line of Interstate Highway 10; THENCE West along a line one thousand ( 1000 ' ) feet from and parallel to the said north right-of-way line of Interstate Highway 10 a distance of one thousand two hundred thirty ( 1230 ' ) feet to a point being thirty (30 ' ) feet east of the centerline of the old garbage dump road; THENCE in a southerly direction thirty (30 ' ) feet from and parallel to the old garbage dump road a distance of one thousand ten ( 10101 ) feet more or less to its point of intersection with the north line of Interstate Highway 10; THENCE East along the said north right-of-way line of Interstate Highway 10 to one thousand fifty ( 1050 ' ) feet more or less to the PLACE OF BEGINING: SAVE AND EXCEPT out of the above-described property, a strip of land one hundred fifty (150 ' ) feet wide from the water' s edge back one hundred fifty (150 ' ) feet more or less to west line of the north prong of said lease tract; the centerline of said strip being one thousand two hundred fifty (1250 ' ) feet from the north line of Interstate Highway 10 measured along the left ascending bank of the Neches River. 2 - i Exhibit "B" I Master Drawing II Showing: 24 new covered wet sheds 110 new covered dry sheds Rest Rooms Paved access road Electrical and plumbing as specified 15 rehab stalls