The City Council voted unanimously this week to transfer the franchise agreement for Avalon Mooring and Diving Services, Inc., from Mark Bray to Scott Gorelczenko.
The council also authorized the city manager to execute the eighth amendment to the franchise agreement. “This assignment is contingent upon the parties executing an agreement to transfer the business,” according to the staff report by City Manager David Maistros and Management Analyst Devin Hart.
This was a Consent Calendar item. Consent items are voted on collectively, without discussion, unless pulled for separate consideration. This item was not pulled from the July 2 Consent Calendar.
Background
“Avalon Mooring & Diving Service, Inc. has been contracted to provide mooring maintenance services in Avalon since July 1, 1994,” Maistros and Hart wrote.
“On June 26, 2024, City Staff were notified of Scott Gorelczenko’s intention to purchase Avalon Mooring & Diving Services, Inc. from Mark Bray. The purchase is conditioned upon the approval of an assignment by the City,” Maistros and Hart wrote.
“Per Section 12 of the existing franchise agreement: ‘This Contract Agreement granted to Avalon Mooring Services hereunder or any rights therein thereunder may not be assigned, transferred, hypothecated, or sublet by Avalon Mooring Service without the prior approval of the City Council. Any transfer of the majority of the stock of Avalon Moring Service shall constitute an assignment for the purposes of this paragraph. Approval by the City Council will not be unreasonably withheld,’” according to the staff report.
“On July 18, 2023, the City Council approved a Seventh Amendment to the existing mooring maintenance agreement extending the contract term for an additional five years,” Maistros and Hart wrote.
“The current term expires on June 30, 2028. The Seventh Amendment also approved mooring service rates to increase on an annual basis consistent with CPl,” Maistros and Hart wrote.
“City Staff recommend the City Council make the affirmative finding that Scott Gorelczenko meets the criteria established by the AMC and authorize the requested assignment of the existing term of the Contract Agreement for Mooring Services on the condition the business transfer takes place,” Maistros and Hart wrote.
“If approved by the City Council, the current business operator will continue negotiations with Scott Gorelczenko with the intention to transfer majority ownership on November 1, 2024,” Maistros and Hart wrote.
