8I Consent 2009 0406 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: Apri16, 2009 TO: Stephen L. Hollister, City Manager FROM: Michael Bakaldin, Public Works Director 1.n$ BY: David Sams, Shoreline Operations Manager SUBJECT PROJECT/PROJECT DESCRIPTION APPROVED AND FORWARDED TO CITY COUNCIL Stephen L. Hollister City Manager RESOLUTION AMENDING RESIDENT GREEN FEES FOR THE MONARCH BAY GOLF CLUB (TONY LEMA AND MARINA GOLF COURSES), EFFECTIVE MAY 1, 2009 SUMMARY AND RECOMMENDATION It is recommended City Council approve a resolution amending resident green fees for the Monarch Bay Golf Club (Tony Lema and Marina Golf Courses), effective May 1, 2009. 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 December 17, 2007, City Council approved a resident fee schedule for Monarch Bay Golf Club. Prior to Council's approval in 2007, the resident rates had remained unchanged since 2001. In February 2009, AGC sent a request to the City to modify the 18-hole weekday and weekend resident green fees. Below are all the current resident fees being charged at Monarch Bay as well as AGC's requested fee increase for both the 18-hole weekday and weekend resident rate.