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City of San Leandro <br /> Meeting Date: March 2, 2015 <br /> aAt � Staff Report <br /> File Number: 15-060 Agenda Section: CONSENT CALENDAR <br /> Agenda Number: 8.F. <br /> TO: City Council <br /> FROM: Chris Zapata <br /> City Manager <br /> BY: Debbie Pollart <br /> Public Works Director <br /> FINANCE REVIEW: David Baum <br /> Finance Director <br /> TITLE: Staff Report for a Resolution Approving a 5-Year Project Plan for Golf Course <br /> Capital Improvements at Monarch Bay Golf Club and Authorizing an <br /> Appropriation of$133,000 from the Golf Course Capital Improvement Fund for <br /> Capital Improvements at Monarch Bay Golf Club (Tony Lema and Marina Golf <br /> Courses) <br /> RECOMMENDATION <br /> Staff recommends that the City Council approve a Resolution authorizing a new 5-year project <br /> plan for the Monarch Bay Golf Club and also approve a Resolution for an appropriation from <br /> the Golf Course Capital Improvement Project (CIP) Fund in an amount not to exceed <br /> $133,000 for planned capital improvements for FY 2015 at Monarch Bay Golf Club (Tony <br /> Lema and Marina Golf Courses). <br /> BACKGROUND <br /> American Golf Corporation (AGC) entered into a lease agreement with the City of San <br /> Leandro (City)for the renovation and operation of the San Leandro Golf Facility (Monarch Bay <br /> Golf Club) on November 15, 1997. AGC's 20-year lease agreement with the City included an <br /> $8.1 million renovation of the Tony Lema Golf Course, Marina Golf Course and the Everett <br /> Rooney Driving Range. AGC completed the renovation in 2001. AGC's lease agreement also <br /> states AGC shall maintain and operate Monarch Bay Golf Club and in return pay the City a <br /> percentage rent on all gross revenues derived from the golf facility. <br /> Section 13.9, Establishment of Capital Improvement Fund, of AGC's lease with the City <br /> indicates that the City and AGC will establish a Capital Improvement Fund (CIP Fund). The <br /> purpose of the CIP Fund will be to refurbish and improve the Golf Facility. As long as the total <br /> unexpended CIP Fund is less than $500,000, the Parties will deposit into the CIP Fund <br /> annually, in arrears, an amount equal to four percent (4%) of gross green fee, cart fee and <br /> driving range fee revenues for such Lease Year. One-half of such amount will be deposited by <br /> AGC and one-half of such amount will be deposited by the City. <br /> City of San Leandro Page 1 Printed on 2124/2015 <br />