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Management Agreement American Golf Corp Monarch Bay
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Management Agreement American Golf Corp Monarch Bay
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8/7/2020 12:24:46 PM
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7/29/2020 1:19:52 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
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DocuSign Envelope ID: 3C2D3BBB-9622-434A-9243-AF02B243E3A3 <br />ARTICLE 3 - OPERATING RESPONSIBILITIES <br />3.1 Grant to Manager. Except as otherwise expressly provided in this Agreement, <br />Owner grants to Manager the right to manage and operate the Facility pursuant to the terms of <br />this Agreement, and Manager agrees that it will manage and operate the Facility in accordance <br />with this Agreement, the approved Annual Plan, except as otherwise set forth in this Agreement. <br />Manager shall perform its services in a timely and diligent manner. Manager, with the approval <br />of Owner and in accordance with the terms of this Agreement, shall have the authority and <br />responsibility to: (a) implement each approved Annual Plan; (b) determine, establish, and <br />implement the policies, standards, and schedules for the operation and maintenance of the <br />Facility and all matters affecting customer relations; (c) hire, train, and supervise the general <br />manager, course superintendent, and all Facility employees; (d) supervise and direct all phases <br />of advertising, sales, marketing, and business promotion for the Facility; and (e) establish payroll <br />procedures and functions for the Facility. To the extent the foregoing duties are discussed, <br />detailed, or included in the Annual Plan, Manager will carry out such duties consistent with the <br />Annual Plan. Owner agrees it will reasonably cooperate with Manager to permit and assist <br />Manager to carry out its duties under this Agreement provided Manager provides reasonable <br />advance notice for such cooperation and assistance. <br />3.2 Annual Plans. <br />3.2.1 Preparation. Manager will submit to Owner no later than January 311t of <br />each year thereafter an "Annual Plan" for the following fiscal year (commencing July 11t) <br />consisting of (a) a budget that shall include for the ensuing year estimates for the projected <br />detailed revenues of the Facility (detailed on a line item basis) and the projected detailed <br />expenditures for (i) property operation and maintenance, (ii) capital improvements which <br />constitute normal repairs, replacements, and alterations for the following operating year which <br />the Annual Plan otherwise covers, (iii) furnishings, equipment and operating inventory, (iv) <br />advertising, sales, and business promotion, (v) employee compensation and (vi) an <br />operating/business plan forthe Facility setting forth a marketing and promotions plan, a schedule <br />of proposed golf fees, an operating schedule (which shall include hours of operation and staffing <br />levels), a maintenance plan, and to the extent applicable, membership sales plans, membership <br />dues, and initiation fee schedules. Owner acknowledges that the Annual Plans, budgets, and <br />operating/business plans contained therein are estimates and will not and do not constitute a <br />guarantee of the actual revenues or expenses of operating the Facility. The parties understand <br />that, as provided in Section 10, budgets for Major Capital Improvements will be treated <br />separately and will not form part of the Annual Plans. The Annual Plan for the initial Operating <br />Year (which in this case, shall commence on and conclude on June 30, 2021) is attached <br />as Exhibit B to this Agreement. <br />3.2.2 Approvals. Each Annual Plan shall be subject to the prior written approval <br />of Owner, and the new Annual Plan for a given Operating Year cannot go into effect without such <br />Management Agreement Between June 1, 2020 <br />City of San Leandro and American Golf Corporation Page 6 of 28 <br />
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