8F Consent 2010 0301 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: March 1, 2010 TO: Stephen L. Hollister, City Manager FROM: Michael Bakaldin, Public Works Director APPROVED AND FORWARDED TO CITY COUNCIL ~-- tephen L. Hollister City Manager BY: Debbie Pollart, Facilities & Open Space Manager SUBJECT PROJECT/PROJECT DESCRIPTION RESOLUTION AUTHORIZING AN APPROPRIATION FROM THE GOLF COURSE CAPITAL IMPROVEMENT FUND FOR CAPITAL IMPROVEMENTS AT MONARCH BAY GOLF CLUB (TONY LEMA AND MARINA GOLF COURSES) SUMMARY AND RECOMMENDATION It is recommended that the City Council approve a Resolution authorizing an appropriation from the Golf Course Capital Improvement Project (CIP) Fund in an amount not to exceed $192,702 for capital improvements at Monarch Bay Golf Club (Tony Lema and Marina Golf Courses). 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 a percentage rent on all gross revenues derived from the golf facility. Section 13.9, Establishment of Capital Improvement Fund, of AGC's agreement with the City indicates that the City and AGC will establish a Capital Improvement Fund (CIP Fund). The purpose of the CIP fund is to refurbish and improve the Golf Facility. As long as the total unexpended CIP Fund is less than $500,000, the Parties will deposit into the CIP Fund annually, in arrears, an amount equal to four percent (4%) of gross green fee, cart fee and driving range fee revenues for such Lease Year. One-half of such amount will be deposited by AGC and one-half of such amount will be deposited by the City. Section 13.10 of AGC's lease with the City states: CIP Budget and Expenditures. AGC shall submit to the City for its review and approval a proposed five (5) year budget (CIP Budget) for major capital improvements, refurbishment and enhancements for the Facility. Expenditures from the CIP Fund may be made only for capital improvement projects costing more than $7,500, approved by the City and AGC, and completed in the Lease Year to which the approval relates. (It should be noted that AGC operates on a calendar year). AGC has submitted a