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File Number: 21-684 <br />were $2,607,862, which is by far the highest in its history. The year prior to the pandemic, <br />Monarch Bay Golf Club’s net revenues were $1,018,676. Staff has spoken to multiple municipal <br />golf facilities in California, and they have also seen their net revenues more than double from <br />pre-pandemic years. <br />AGC’s Incentive Management Fee calculation: <br />$ 2,551,171 Net Revenue <br />$ 750,000 Target Net Revenue <br />$ 1,801,171 Net Revenue (NR) in excess of Target Net Revenue (TNR) <br />$360,234.19 Incentive Management Fee (20% of NR in excess of TNR) <br />The City’s net revenues are $2,190,936.81 after payment of AGC’s Incentive Management Fee. It <br />should be noted that the City’s net revenues for Monarch Bay Golf during the lease with AGC for <br />the past five fiscal years averaged under $900,000. <br />Previous Actions <br />·Resolution No. 2020-052 Authorizing the City Manager to Enter into a Management <br />Agreement with American Golf Corporation and to Terminate the Lease Agreement <br />Fiscal Impacts <br />AGC’s Incentive Management Fee is $360,234.19 for Fiscal Year 2020-2021. The Fee will be <br />funded by the Shoreline Enterprise Golf Course Fund (596) unrestricted fund balance. <br />Budget Authority <br />On June 28, 2021, Council approved an appropriation of $99,400 in the Shoreline Enterprise Golf <br />Course Fund FY2021/2022 budget (596-56-001-5890). Appropriation requested by this action is <br />for $260,834.19 from the unrestricted funds in the Shoreline Enterprise Golf Course to Account <br />596-56-001-5890. Total Incentive Management Fee, $360,234.19. <br />ATTACHMENT(S) <br />· Management Agreement Monarch Bay Golf Club <br />PREPARED BY: Liz Jimenez, Public Works Services Manager <br />David Sams, City’s Golf Consultant <br />Page 3 City of San Leandro Printed on 12/2/2021 <br />66