01/24/2024 Page 1
SECOND AMENDMENT TO AGREEMENT FOR SERVICES: GOLF PROFESSIONAL This Second Amendment to Agreement for Services: Golf Professional ("Second Amendment")
municipal corporation and Brian Smock Golf, LLC, a California Limited Liability Company (hereinafter referred to as "Professional") and is made in reference to the following facts:
A. On February 1, 2017, the Parties entered into that certain Agreement for Services: Golf Professional greement , pursuant to which the Professional assists in the operation, promotion, and management of the Golf Pro Shop operation at the Coronado Municipal B. Effective April 27, 2021, the Parties entered into that certain First Amendment to Agreement for Services: Golf Professional (First Amendment), modifying promotional and advertising requirements, coordination with the Food and Beverage Concessionaire, driving range equipment specifications, defining appropriate use of City facilities, and exercising the first extension on the term of the Agreement, extending the Agreement through January 31, 2027. C. Resolution 2023-41 was enacted on January 1, 2024, after approval from City Council on November 7, 2023. The resolution revised fees for the Golf Course including green fees, tournament fees, and advance booking fees, which affected the revenue of the Professional and total remittance from the Professional to the City. D. The Parties now wish to amend the Agreement to include additional language modifying the monetary considerations for the Professional to remit to the City and the incentive pay due to the Professional.
NOW, THEREFORE, in consideration of their mutual promises as herein set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree to amend the Agreement, as previously amended, as follows:
1. The above recitals are true and correct.
2. The terms set forth in this Second Amendment shall have the meanings ascribed to them in the Agreement, as amended by the First Amendment, for all purposes unless the context clearly indicates some other meaning.
Attachment 1
01/24/2024 Page 2
3. Section 8.01.1 (entitled Monetary Consideration is hereby deleted in its entirety and replaced with the following:
Monetary Consideration. As consideration for this Agreement, Professional shall pay to the City of Coronado an amount as follows for the services provided as indicated:
Merchandise: Five Percent (5%)
Non-Merchandise: Fifteen Percent (15%)
Lessons: Ten Percent (10%)
Advanced Booking Fees: Eighty Percent (80%)
As used in this Agreement, Gross Merchandise Revenue shall mean all revenue from sale of Merchandise from the Pro Shop.
As used in this Agreement, Gross Non-Merchandise Revenue shall mean all revenue from golf cart rentals, driving range, club rental and equipment rental, equipment repair and storage, but shall exclude revenues from green fees.
As used in this Agreement, Lesson Revenue shall mean all revenue from the sale and the development of golf that is no cost or low cost may be waived by the Director in writing. The Professional shall discount Junior Lessons in an amount equal to, or greater than, twenty (20) percent. Additionally, the Director may waive the Junior Lesson percentage to Junior Lesson program(s) as approved in writing.
4. Section 8.01 Incentive is hereby deleted in its entirety.
5. Except as otherwise provided in this Amendment, each and every provision, term, condition, covenant, representation and warranty contained in the Concession Agreement shall remain in full force and effect.
6. In the event of any inconsistencies between the Agreement and this Second Amendment, the terms of this Second Amendment shall control.
7. This Second Amendment may be executed in counterparts, each of which will be deemed an original but all of which together shall constitute one and the same Second Amendment. Facsimile and electronic signatures will have the same weight and effect as originals.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] Attachment 1
IN WITNESS WHEREOF, the Parties have caused their properly authorized representatives to execute this Second Amendment.
CITY:
CITY OF CORONADO
PROFESSIONAL:
BRIAN SMOCK GOLF, LLC
a California Limited Liability Company
By:
Tina Friend,
City Manager
Date:
By:
Brian Smock,
President and CEO
Date:
APPROVED AS TO CONTENT:
By:
Tim Farmer, Date
Director of Recreation and Golf Services
APPROVAL AS TO FORM:
By:
Johanna N. Canlas, Date
City Attorney
ATTEST:
By:
Kelsea Holian, MMC, CPM Date
City Clerk
Attachment 1