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City of San Leandro <br />Meeting Date: December 6, 2021 <br />Staff Report <br />Agenda Section:File Number:21-684 CONSENT CALENDAR <br />Agenda Number:8.E. <br />TO:City Council <br />FROM:Fran Robustelli <br />City Manager <br />BY:Debbie Pollart <br />Public Works Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for a City of San Leandro City Council Resolution to Approve an <br />Appropriation of $260,834.19 from the Shoreline Enterprise Golf Course Fund <br />(596); and to Approve a $360,234.19 Disbursement for Fiscal Year 2020-2021 <br />for American Golf Corporation’s Incentive Management Fee for the Management <br />of Monarch Bay Golf Club <br />SUMMARY AND RECOMMENDATIONS <br />American Golf Corporation (AGC) completed the first fiscal year of management of Monarch Bay <br />Golf Club for the City of San Leandro (City). The City’s agreement with AGC states the City shall <br />pay AGC 20% of the amount by which net operating income for a given operating year exceeds <br />$750,000. The first operating year was June 2, 2020 to June 30, 2021 (13 months). Staff <br />recommends that the City Council adopt a resolution to approve an appropriation of $260,834.19 <br />from the Shoreline Enterprise Golf Course Fund (596) unrestricted fund balance, and to approve <br />a $360,234.19 payment for AGC’s Incentive Management Fee for the management of Monarch <br />Bay Golf Club. <br />BACKGROUND <br />On November 15, 1997, the City entered into a lease agreement with AGC for the operation and <br />maintenance of Monarch Bay Golf Club, which includes the 9-hole, par 30, Marina golf course, the <br />18-hole, par 71, Tony Lema golf course, the Everett Rooney driving range and the 9,000 square <br />foot clubhouse. <br />The general terms of the 1997 Lease Agreement were: <br />·20-year term with two 5-year extensions, if mutually agreed to; <br />·AGC to spend $8.1M on renovations; <br />·Creation of a Golf Capital Improvement Project account; <br />·Minimum rent of $750K annually, or 75% of the average total annual rent paid for the <br />Page 1 City of San Leandro Printed on 12/2/2021 <br />64