HomeMy WebLinkAboutStaff Report 12343
City of Palo Alto (ID # 12343)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/21/2021
City of Palo Alto Page 1
Summary Title: Renewal of Golf Course Management and Restaurant
Contracts
Title: Approval of Contract Amendment Number 1 to Contract Number
C18169712 With OB Sports Golf Management (Baylands) LLC for a Period of
Three-years for a Not-to-Exceed Increase Am ount of $8,878,721 for the
Management of Golf Course Operations at the Baylands Golf Links; and
Approval of Contract Amendment Number 1 to Contract Number C18171872
With OB Sports Golf Management (Baylands), LLC for a Period of Three -years
for Restaurant Licensing to Provide Food and Beverage Services
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that City Council:
1. Approve and authorize the City Manager or his designee to execute the attached
Contract Amendment Number 1 to contract C18169712 with OB Sports Golf
Management (Baylands), LLC (Attachment A) to renew the terms for three additional
years in the amount of $8,878,722 for a revised not to exceed compensation of
$17,886,722 for golf management services on the course, at the driving range, at the
Golf Shop, and surrounding areas of the Palo Alto Baylands Golf Links for the term of
July 1, 2021 through June 30, 2024;
2. Approve and authorize the City Manager or their designee to execute the attached
Contract Amendment Number 1 to contract C18171872 with OB Sports Golf
Management (Baylands), LLC (Attachment B) to renew the terms for three additional
years for OB Sports to provide food and beverage services under a license arrangement
for the term of July 1, 2021 through June 30, 2024 and for OB Sports Golf Management
(Baylands), LLC to pay a minimum of $198,000 which is subject to mutual increase based
on net revenue expectations.
Background
City of Palo Alto Page 2
In 2012, the City of Palo Alto sought designs for modification to the f ormer Palo Alto Municipal
Golf Course due to an adjacent San Francisquito Creek levee expansion project which would
change the boundaries of the golf course. After a golf course architect was selected and
designs were reviewed, the City Council selected a full course renovation design and staff began
a five-year process of planning, architectural review, environmental permitting, course
management contract revisions, course construction, and new course management selections.
On July 1, 2016, the golf course closed to commence construction of a full course renovation
and re-opened in May 2018 as the Baylands Golf Links.
In 2013, several existing course management and maintenance contracts were negotiated to
expire concurrently in 2018 to allow the City to issue a Request for Proposal (RFP) for a full-
service golf course operator to provide services after completion of the course renovation. The
City received five formal proposals for review and conducted interviews with
BrightView/Kemper Sports, Course Co., Landscapes Unlimited, OB Sports, and Troon.
Preceding the May 2018 course re-opening, OB Sports Golf Management (Baylands), LLC was
awarded contracts through an RFP process to be the single full-service operator for Fiscal Years
2019, 2020, and 2021. Course management, course maintenance, customer service, and golf
shop retail sales are provided through a golf management services contract while the provision
of food and beverages is through a facility lease with a restaurant license agreement contract.
OB Sports Golf Management (Baylands), LLC is a golf management company providing services
in course operations, course maintenance, food and beverage, sales and marketing, and course
design. Based in Scottsdale, Arizona, the company operates or manages 55 courses in the
United States, Bahamas, and Scotland. Courses managed include private, resort, and daily fee
courses. Locally, OB Sports Golf Management (Baylands), LLC manages the Golf Club at Moffett
Field, a daily fee course open to the public.
The selection of OB Sports Golf Management (Baylands), LLC to manage the Baylands Golf Links
on the City’s behalf included an assessment of their management operations as well as financial
performance projections. The City reviewed OB Sports’ projections, compared them to pro -
formas prepared by the National Golf Foundation, and asked for an assessment by an
established industry consultant.
Discussion
The City and OB Sports Golf Management (Baylands), LLC have two contracts for full -service
operations at the Baylands Golf Links. The golf management contract covers cour se
management, course maintenance, customer service, and golf shop retail sales. The restaurant
facility lease covers the provision of food and beverage through a restaurant license agreement
for OB Sports to operate Baylands Café.
The two contracts with OB Sports Golf Management (Baylands), LLC were established in 2018
through June 30, 2021 and each contain a mutual renewal option for up to three years (FY 2022
City of Palo Alto Page 3
– FY 2024). If the first option to renew is exercised, a second mutual renewal option may be
exercised for up to three additional years (FY 2025 – FY 2027).
Staff recommends Council approve contract renewals for both contracts for a period of three
years (FY 2022 – FY 2024) to continue having a single operator provide all services at the golf
course. For the first three fiscal years since the golf course re-opened after full course
renovation, this operation model has resulted in a desired player experience with higher service
levels than before.
For the past three fiscal years, OB Sports Golf Management (Baylands), LLC has successfully
managed and maintained the Baylands Golf Links by reestablishing a customer base and making
the Baylands Golf Links one of the premiere municipal courses in the Bay Area. OB Sports Golf
Management (Baylands), LLC has placed an emphasis on creating a high-quality player
experience, which incorporates attention to course play, course conditions, customer service,
practice facilities, food and beverage selection, and aesthetics of the golf shop and restaurant.
The efforts of course design, construction, and course management has resulted in the course
receiving several recognitions and awards. The course was named as one of Golfweek
magazine’s Best Courses You Can Play in the category of public courses. Additionally, the
course has received recognition from Golf Inc. Magazine for design and the California Parks &
Recreation Society for environmental sustainability.
In Fiscal Year 2019, green fee revenue from course play and tournaments overachieved its
financial pro-forma projection and budget by 1%. However, revenue from merchandise sales
underachieved sales targets. Numerous retail and online vendors competing for golf related
merchandise sales remains an alternative for players. Although green fee revenue
overachieved, when considered in combination with low merchandise sales, overall revenue
from golf operations ended FY 2019 at 6% under target.
For Fiscal Year 2020, the overall revenue target was increased in alignment with prior pro -
formas. Because the prior fiscal year resulted in strong green fee revenue, this revenue
category was increased while the revenue target for merchandise sales was decreased.
However, in Fiscal Year 2020, the golf course underperformed financially by 26% less than
target. During part of the first eight months of the fiscal year, the course was impacted by poor
air quality from the 2019 wildfire season. Despite the poor air quality, revenue was performing
on par in comparison to the prior Fiscal Year 2019. However, the course closed all operations in
March 2020 due to the COVID-19 pandemic and in accordance with the Santa Clara County
Shelter-in-Place Health Order. The course remained closed during most of the Spring 2020
season. Upon re-opening at the end of spring, the course operated at drastically less than
capacity in accordance with the State and County Health Orders. Initial re -opening during the
health pandemic was limited to singles play only, and as the Health Orders further changed,
doubles play with members of the same household was allowed.
City of Palo Alto Page 4
For Fiscal Year 2021, golf course revenue is projected to be 22% above revenue target. This is
attributed to several factors:
• Increased leisure time during the COVID-19 health pandemic with few recreation and
sports opportunities deemed safer than golf , combined with changes in State and
County Health Orders allowing foursome play;
• Mild to warm weather throughout all four seasons in the Fiscal Year; and
• The reputation of Baylands Golf Links as a preferred premium player experience.
If not approved, the City would no longer have an operator for the golf course, pro shop, or
restaurant facility until a new provider or new business model was developed and
implemented. This would impact the strong customer base an d reputation that OB Sports and
the City has worked to develop since the opening of this new facility. The City and OB Sports
have worked closely over the difficult first three years and recommend continuing this
agreement ensuring no interruption in services at the golf course.
Resource Impact
The golf course operating budget in the General Fund FY 2022 Proposed Operating Budget is
$3.8 million in revenue and $3.5 million in expenses, which includes debt service payments. The
recommendation in this report to extend these contracts does not result in any direct change to
resource impact, however staff and OB Sports may recommend revenue and expense
adjustments as appropriate for the City Council’s consideration during the FY 2022 Midyear
budget process. As of the writing of this report, staff and OB Sports estimate a revenue increase
of approximately $250,000 for a new total revenue target of $4.1 million and an expense
increase of approximately $85,000 for a new total expense budget of $3.6 million. These
projected impacts represent the assumption of continued strong revenue performance and the
resources necessary to maintain service levels and the premium player experience the golf
course has established. The expense increase will cover irrigation drainage improvements,
higher costs of course maintenance supplies and materials, leasing of more powered golf carts,
and additional staffing to include more on course marshals to monitor and reduce instances of
slow play on course.
In addition to compensation for course management and maintenance services, the contract is
established to financially incentivize the contractor to exceed annual revenue targets through a
revenue share. After achieving select annual revenue targets, amounts in excess are shared by
an 80/20 split with 80% retained by the City and 20% paid to the Contractor. However, all
revenue up to the revenue target is fully retained by the City.
For FY 2023 and FY 2024, the revenue target is to be developed by OB Sports Golf Management
(Baylands), LLC and City staff, with approval by Council during the annual budget process.
Payment to the contractor for course management and maintenance is limited to no more than
a 3% increase over the prior fiscal year.
City of Palo Alto Page 5
The restaurant facility lease contract is a revenue contract with OB Sports Golf Management
(Baylands), LLC paying rent and utilities in an amount of $5,500 per month during the contract
renewal period (FY 2022 – FY 2024) and subject to increase based on net revenue. This is the
same amount of rent and utilities during FY 2020 and FY 2021 and an increase is not proposed
as the restaurant has been negatively impacted by the COVID-19 pandemic. Impacts include
complete closure during the County’s Shelter-in-Place Health Order, restricted capacity upon
re-opening, and loss of non-golf customer base. During the pandemic, the restaurant has not
had sales from banquets due to restricted capacity and social distancing requirements. The
restaurant also lost sales from surrounding businesses due to employees working remotely. OB
Sports Golf Management (Baylands), LLC has remained current on their monthly rent and
utilities payments to the City.
Stakeholder Engagement
Community Services Department has been in communication with OB Sports an d the
Administrative Services Department to assess the financial impact of renewing the contracts for
a term of three years.
Environmental Review
Council’s approval of these Contract Amendments for golf course services is categorically
exempt from CEQA per CEQA regulations 15301 (Existing Facilities), 15304 (Minor Alterations to
Land), and 15323 (Normal Operations of Facilities for Public Gatherings).
Attachments:
• Attachment A: Golf Operations Contract with OB Sports Golf Management (Baylands),
LLC_C18169712 Amendment No. 1
• Attachment B: Restaurant Licensing with OB Sports Golf Management (Baylands),
LLC_C18171872 Amendment No. 1
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C18169712
BETWEEN THE CITY OF PALO ALTO AND
OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC
This Amendment No. 1 (this “Amendment”) to Contract No. C181769712 (the “Contract” as defined
below) is entered into as of June 21, 2021, by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC,
a Limited Liability Company, Department of Industrial Relations Registration No. 1000056828,
located at 7025 E Greenway Parkway, Suite 550, Scottsdale, AZ 852540 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of golf programming services of golf course management, course maintenance,
practice facility maintenance, and retail sales, as more fully described in Exhibit “A” (Scope of
Services).
B. The Parties now wish to amend the Contract in order to extend the term for three
years through June 30, 2024 for continuation of golf programming services and to increase the
compensation by Eight Million Eight Hundred Seventy Eight Thousand Seven Hundred Twenty One
Dollars and Thirty Seven cents( $ 8,878,721.37) from Nine Million Eight Thousand Dollars
($9,008,000), to a not to exceed amount of Seventeen Million Eight Hundred Eighty Six Thousand
Seven Hundred Twenty One Dollars and Thirty Seven Cents($17,886,721.37).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C18169712
between CONSULTANT and CITY, dated April 10, 2018.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, “TERM AND OPTION”, of the Contract is hereby amended to read as
follows:
“The term of this Agreement shall be from the date of its full execution and approval by City’s City
Council (the “Commencement Date”) through June 30, 2024, unless terminated earlier pursuant to
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Page 2 of 3
Section 19 of this Agreement.
A renewal option for a period or periods of up to 3 years (from July 1, 2021 through June 30, 2024,
is available as mutually agreed, to be executed in accordance with Section 27.4 of this Agreement.
(In June 2021, the Parties agreed to the first renewal option in Amendment 1 to this Agreement.) A
second renewal option for a period or periods of up to an additional 3 years (from July 1, 2024
through June 30, 2027), is available as mutually agreed, to be executed in accordance with Section
27.4 of this Agreement. Absent a mutually extended agreement, the City reserves the right to extend
this Agreement for up to six months. During such six-month extension period, the parties may agree
to a renewal option as provided for herein.
SECTION 3. Section 4, “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit “A” (“Scope of Services”), and reimbursable expenses as specified in Exhibit “B”
(“Compensation”) herein, shall not exceed Seventeen Million Six Hundred Eighty Eight
Thousand Eight Hundred Thirteen Dollars and Twenty Four cents ($17,688,813.24), as detailed
in Exhibit “B” (“Compensation”). CONSULTANT agrees to complete all Services, including
specified reimbursable expenses, within this amount. Any work performed or expenses incurred for
which payment would result in a total exceeding the maximum amount of compensation set forth
herein shall be at no cost to the CITY. A Contingency Amount of One Hundred Ninety Seven
Thousand Nine Hundred Eight Dollars and Thirteen Cents ($197,908.13) is available, as
detailed in Exhibit “B” (“Compensation”), to provide for reasonable and unforeseen costs/services,
upon approval of City and to be executed via written amendment to this Agreement as provided for
in Section 27.4 herein. In the event such Contingency Amount is utilized as provided for herein, the
total compensation for Services, reimbursable expenses and the costs/services added under the
Contingency Amount, shall not exceed Seventeen Million Eight Hundred Eight Six Thousand
Seven Hundred Twenty One Dollars and Thirty Seven Cents ($17,886,721.37 ) as detailed in
Exhibit “B” (“Compensation”).
SECTION 4. The following exhibit(s) to the Contract is hereby amended, as indicated below,
to read as set forth in the attachment to this Amendment, which ishereby incorporated in full into
this Amendment and into the Contract by this reference:
a. Exhibit “B” entitled “COMPENSATION”, AMENDMENT NO.1”
(AMENDED, REPLACES PREVIOUS)
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
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Page 3 of 3
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager (Contract over $85k)
APPROVED AS TO FORM:
City Attorney or designee
(Contract over $25k)
OB SPORTS GOLF
MANAGEMENT(BAYLANDS), LLC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
EXHIBIT "B" entitled “COMPENSATION, AMENDMENT NO. 1”
DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313
Phil Green
COO
C. A. Roberts
President
EXHIBIT “B”
COMPENSATION, AMENDMENT NO.1
(AMENDED, REPLACES PREVIOUS)
A. NOT TO EXCEED COMPENSATION.
ORIGINAL TERM (Execution of Agreement until June 30, 2021)
The not-to-exceed compensation to be paid to Consultant for performance of the
Services described in Exhibit “A”, including both payment for professional services and
reimbursable expenses, as detailed in this Exhibit “B” (“Compensation”), shall not
exceed $859,000 for FY 2018, and for Year 1 of this Agreement (FY 2019). The not-
to-exceed amounts for Year 2 and Year 3 annual compensation to Consultant hereunder
shall be as determined in the approved Annual Operating Budget for each such year, as
provided for in this Agreement.
Payment of the annual compensation due to Consultant hereunder shall be made in
quarterly installments.
Quarterly payments consist of the following:
1. A quarterly management fee of $27,000.
2. Up to $1,000 per month for travel reimbursement up to the not-to-exceed amount
of $39,000 for the Term of this Agreement.
3. Quarterly lump sum payments based on the approved Annual Operating Budget.
The first quarterly lump sum payment includes payment for start-up costs which
are detailed in Section D (“Start-Up Costs”) below.
Quarterly payments for FY 2018 and for Year 1 (FY 2019), paid upon receipt of invoice
as provided for herein, shall follow the schedule below:
Q4 FY 2018* $ 859,000
Q1 FY 2019 $ 670,000
Q2 FY 2019 $ 662,000
Q3 FY 2019 $ 618,000
Q4 FY 2019 $ 679,000
Total $3,488,000
* Including start-up costs detailed in Section D (“Start-Up Costs”) below.
The quarterly payments for Year 2 (FY 2020) and Year 3 (FY 2021) of this Agreement
shall be based upon the approved Annual Operating Budget for each such year as
provided for in this Agreement. In no event shall the Annual Operating Budgets for
Year 2 and Year 3 of this Agreement grow by more than 3% over the prior year.
BUDGET SCHEDULE NOT TO EXCEED AMOUNTS (ORIGINAL TERM ONLY):
Sub-total Services: $ 8,862,000
Total Reimbursable Expenses (Travel): $ 39,000
Total Services and Reimbursable Expenses: $ 8,898,000
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Contingency Amount: $ 110,000
Maximum Total Compensation: $9,008,000
FIRST RENEWAL TERM (July 1, 2021-June 30, 2024)
The not-to-exceed compensation to be paid to Consultant for performance of the
Services described in Exhibit “A”, including both payment for professional services and
reimbursable expenses, as detailed in this Exhibit “B” (“Compensation”), shall not
exceed $2,844,095 for Year 4 of this Agreement (July 2021-June 2022, aka FY2022).
The not-to-exceed amounts for Year 5 (July 2022-June 2023) and Year 6 (July 2023-
June 2024) annual compensation to Consultant hereunder shall be as determined in the
approved Annual Operating Budget for each such year, as provided for in this
Agreement.
Payment of the annual compensation due to Consultant hereunder shall be made in
quarterly installments.
Quarterly payments consist of the following:
1. A quarterly management fee of $27,000.
2. Up to $1,000 per month for travel reimbursement up to the not-to-exceed amount
of $36,000 during the First Renewal Term of this Agreement.
3. Quarterly lump sum payments based on the approved Annual Operating Budget.
Quarterly payments for Year 4, paid upon receipt of invoice as provided for herein, shall
follow the schedule below:
Q1 FY 2022 $ 711,023.75
Q2 FY 2022 $ 711,023.75
Q3 FY 2022 $ 711,023.75
Q4 FY 2022 $ 711,023.75
Total $ 2,844,095.00
The quarterly payments for Year 5 and Year 6 of this Agreement shall be based upon the
approved Annual Operating Budget for each such year as provided for in this Agreement.
In no event shall the Annual Operating Budgets for Year 5 and Year 6 of this
Agreement grow by more than 3% over the prior year.
BUDGET SCHEDULE NOT TO EXCEED AMOUNTS FOR YEARS 4 THROUGH 6:
Sub-total Services: $ 8,754,813.24
Total Reimbursable Expenses (Travel): $ 36,000
Total Services and Reimbursable Expenses: $ 8,790,813.24
Contingency Amount: $87,908.13
Maximum Total Compensation for Years 4-6: $ 8,878,721.37
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
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photocopying, printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses.
City shall reimburse Consultant for the following reimbursable expenses at cost. Expenses
for which Consultant shall be reimbursed are:
Travel for Consultant’s management staff to travel from Consultant’s headquarters
to the Premise/City to ensure performance in accordance with this Agreement, not
to exceed $1,000 per month over the Term of this Agreement.
The expenses eligible for reimbursement under this paragraph are ordinary business
expenses of Consultant and not operational expenses of managing the Premise.
INCENTIVE PAYMENTS
Consultant is eligible to receive incentive payments based upon achieving/exceeding
annual revenue targets. For example, for FY 2022, revenue excluding golf retail
merchandise sales, must exceed $ 3,761,644 in order for Consultant to be eligible for
incentive payments. If the revenue target is achieved/exceeded, then for every dollar of
revenue achieved in excess of the annual revenue target, Consultant may retain $0.20 as an
incentive payment.
CONTINGENCY AMOUNT
An additional 1% of CONSULTANT compensation will be a contingency amount and is
reserved by the City for possible use in the event of any reasonable and unforeseen costs
during the fiscal year, as agreed to by City and implemented pursuant to a written
amendment to this Agreement as provided for herein.
ADDITIONAL SERVICES
No Additional Services are authorized by the City through this Agreement, unless
pursuant to a written amendment to this Agreement as provided for herein.
B. PAYMENT. Subject to Section 5 (“Invoices”) of the Agreement, Consultant shall
submit quarterly invoices to the City in advance of each quarter. The Consultant’s
invoice will then be submitted to the fiscal section for payment at which point the City
has 30 working days from the last date of the invoice to render payment to the Consultant.
Invoices must include Consultant name, address, contract number, description of
services, date of services, and compensation amount.
C. LATE FEES.
1. City shall pay to Consultant all of the fees described above, and any other sums due
Consultant, at the times, at the places, and in the manner herein provided. If any
payment or any part thereof to be made by City to Consultant pursuant to the terms
hereof shall become overdue for a period of sixty (60) days, a “late charge” may be
charged by Consultant for the purpose of defraying the expense incident to handling
such delinquency.
2. The late charge shall be equal to the lesser of: (i) 1% of the quarterly management
fee; or (ii) $2,000 per month overdue based on the date payment was due.
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3. In the event any portion of this Section violates any state or federal law or
regulation, this Section shall be deemed void and shall have no other effect or make
invalid any other provision of this Agreement.
D. START-UP COSTS. The City has agreed to pay, as a part of the Q4 FY 2018 payment
to Consultant, the following items that Consultant shall purchase but City will retain
ownership of. These include:
Item(s) Amount
Point of Sale/Tee Time Systems “Clover” & Computers $ 10,000
Goose Dog $ 7,500
Office/Pro-Shop Equipment $ 16,116
Cart Storage & Range Equipment / Supplies $ 13,750
Restaurant tables, chairs and other furniture $ 44,189
Paint, Carpet, Flooring in Restaurant/Pro-Shop $ 80,000
New Inventory Purchases-Retail $ 50,000
Pre-Opening Marketing $ 71,075
Total Start-Up Costs $ 292,630
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Vers.: Aug. 5, 2019
Page 1 of 2
AMENDMENT NO. 1 TO CONTRACT NO. C18171872 (RESTAURANT)
BETWEEN THE CITY OF PALO ALTO AND
OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC
This Amendment No. 1 (this “Amendment”) to Contract No. C18171872 (the “Contract” as defined
below) is entered into as of June 21, 2021, by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC,
a Limited Liability Company, Department of Industrial Relations Registration No. 1000056828,
located at 7025 E Greenway Parkway, Suite 550, Scottsdale, AZ 852540 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of restaurant services to provide food and beverages and banquet services, as
more fully described in Exhibit “A” (Scope of Services).
B. The Parties now wish to amend the Contract in order to extend the term for three
additional years from June 30, 2021 to June 30, 2024.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C18171872
between CONSULTANT and CITY, dated April 10, 2018.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, “TERM AND OPTION”, of the Contract is hereby amended to read as
follows:
“The term of this Agreement shall be from the date of its full execution and approval by City’s City
Council (the “Commencement Date”) through June 30, 2024 unless terminated earlier pursuant to
Section 19 of this Agreement.
A renewal option for a period or periods of up to 3 years (from July 1, 2021 through June 30, 2024,
is available as mutually agreed, to be executed in accordance with Section 27.4 of this Agreement.
(In June 2021, the Parties agreed to the first renewal option in Amendment 1 to this Agreement.) A
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Page 2 of 2
second renewal option for a period or periods of up to an additional 3 years (from July 1, 2024
through June 30, 2027), is available as mutually agreed, to be executed in accordance with Section
27.4 of this Agreement. Absent a mutually extended agreement, the City reserves the right to extend
this Agreement for up to six months. During such six-month extension period, the parties may agree
to a renewal option as provided for herein.
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager (Contract over $85k)
APPROVED AS TO FORM:
City Attorney or designee
(Contract over $25k)
OB SPORTS GOLF
MANAGEMENT(BAYLANDS), LLC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
DocuSign Envelope ID: 20557A8E-FD53-419A-AFCF-4DC9C044897F
COO
Phil Green
C. A. Roberts
President