ORDINANCE No. 181540

*Acquire equipment, furnishings and fixtures at Heron Lakes Golf Course (Ordinance).

The City of Portland ordains:

Section 1.  The Council finds:

1.  Pursuant to Contract No. 50989, the City Council granted concession privileges at the Heron Lakes Golf Course to Byron Wood Enterprises, Inc.

2.  Contract No. 50989 has expired according to its terms, and the City is in the process of negotiating an agreement with a new operator for the Heron Lakes Golf Course, as the result of a Request for Proposals authorized by the Council.

3.  Under Section 7 of Contract No. 50989, the successor concessionaire would be required, under certain circumstances, to purchase the remaining equipment, furnishings and fixtures of Byron Wood Enterprises, Inc.

4.  Prior to its expiration, Byron Wood Enterprises, Inc., with the City’s consent, subcontracted or assigned Contract No. 50989 to Dale Bernards and Erik Vervloet, who subsequently established Heron Lakes Management, LLC, for the purpose of managing the golf course, and who are now temporarily operating the course under a revocable permit, as Heron Lakes Golf, LLC.

5.  Byron Wood Enterprises, Inc., has made a claim of entitlement, under Contract No. 50989, to have the City purchase or require the new operator to purchase its remaining equipment, furnishings and fixtures.

6.  The City disputes the claim, but the Director of Golf, in consultation with the City Attorney, has determined that it is in the City’s best interest to compromise the claim by purchasing the equipment, furnishings and fixtures for the sum of $212,500, less $11,756.87 in outstanding revenue owed to the City, in return for releases and consents from Byron Wood Enterprises, Inc., Dale Bernards, Erik Vervloet, Heron Lakes Management, LLC, and Heron Lakes Golf, LLC, in forms acceptable to the City Attorney.

NOW, THEREFORE, the Council directs:

a.  The Mayor and Auditor are authorized to draw and deliver a check in the amount of $200,743.13 from the Golf Fund, payable to Byron Wood Enterprises, Inc., subject to receipt of releases and consents from Byron Wood Enterprises, Inc., Dale Bernards, Erik Vervloet, Heron Lakes Management, LLC, and Heron Lakes Golf, LLC, in forms acceptable to the City Attorney.

b.  Upon the request of the Bureau of Parks and Recreation, there may be deducted from said payment, and paid directly to the lessors of such equipment, any remaining lease payments under existing equipment lease agreements.

c.  The Bureau of Parks and Recreation will execute payment authorizations as described in subparagraphs (a) and (b) above.

Section 2.  The Council declares that an emergency exists in order to avoid undue and costly delay in negotiating a contract with the successful proposer for the operation and improvement of the Heron Lakes Golf Course; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council

Passed by the Council: January 16, 2008    GARY BLACKMER

Commissioner Saltzman          Auditor of the City of Portland

Prepared by:  Harry Auerbach:kmg          By /s/Susan Parsons

January 3, 2008              Deputy  

BACKING SHEET INFORMATION

AGENDA NO. 104-2008

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 181540