8F Consent 2007 1217 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: December 17, 2007 TO: John Jermanis, City Manager FROM: Michael Bakaldin, Public Works Director M$ BY: David Sams, Shoreline Operations Manager SUBJECT PROJECT/PROJECT DESCRIPTION APPROVED AND FORWARDED TO CITY COUNCIL Jo Jermanis Ci anager MONARCH BAY GOLF CLUB (TONY LEMA GOLF COURSE ONLY) PROPOSED RESIDENT GREEN FEES CHANGES. SUMMARY AND RECOMMENDATION It is recommended City Council approve a resolution amending resident green fees for the Monarch Bay Golf Club (Tony Lema Golf Course only). BACKGROUND American Golf Corporation (AGC) entered into a lease agreement with the City of San Leandro (City) for the renovation and operation of the San Leandro Golf Facility (Monarch Bay Golf Club) on November 15, 1997. AGC's 20-year lease agreement with the City included an $8.1 million plus renovation of the Tony Lema Golf Course, Marina Golf Course and the Everett Rooney Driving Range. AGC completed the renovation in 2001. AGC's lease agreement also states AGC shall maintain and operate Monarch Bay Golf Club and in return pay the City percentage rent on all gross revenues derived from the golf facility. Section 3.3(a) of AGC's lease with the City states: Lessee will charge green fees to residents of the City in accordance with a rate schedule approved by Lessor which approval will not be unreasonably withheld or delayed. Lessor shall, in setting resident rates, consider (i) the revenue impacts to the operation of the Golf Facility; (ii) prevailing rates at similar public courses; and (iii) changes in the Consumer Price Index (CPI) or comparable indicator of cost of living changes. On February 20, 2001, City Council approved a resident fee schedule for Monarch Bay Golf Club, Since that time, the resident fees have remained unchanged. In November 2007, AGC sent a request to the City to modify the resident fees. Below are the current fees since 2001 as well as AGC's requested fee increases.