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City of San Leandro <br />Meeting Date: November 19, 2018 <br />Staff Report <br />Agenda Section:File Number:18-552 CONSENT CALENDAR <br />Agenda Number:8.N. <br />TO:City Council <br />FROM:Jeff Kay <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 City of San Leandro City Council Resolution to Amend the <br />5-Year Project Plan for Golf Course Capital Improvements at Monarch Bay Golf <br />Club and to Authorize an Appropriation of $476,000 from the Golf Course Capital <br />Improvement Fund for Capital Improvements at Monarch Bay Golf Club <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council approve a Resolution to amend the 5-year project plan for <br />the Monarch Bay Golf Club and to approve an appropriation from the Golf Course Capital <br />Improvement Project (CIP) Fund in an amount not to exceed $476,000 for planned capital <br />improvements for FY 2019 at Monarch Bay Golf Club. <br />BACKGROUND <br />American Golf Corporation (AGC) entered into a lease agreement with the City of San Leandro <br />(City) for the renovation and operation of the San Leandro Golf Facility (Monarch Bay Golf Club) <br />on November 15, 1997. AGC’s 20-year lease agreement with the City included an $8.1 million <br />renovation of the Tony Lema Golf Course, Marina Golf Course and the Everett Rooney Driving <br />Range. AGC completed the renovation in 2001. AGC’s lease agreement also states AGC shall <br />maintain and operate Monarch Bay Golf Club and, in return, pay the City a percentage rent on all <br />gross revenues derived from the golf facility. <br />Section 13.9, Establishment of Capital Improvement Fund, of AGC’s lease with the City indicates <br />that the City and AGC will establish a Capital Improvement Fund (CIP Fund). The purpose of the <br />CIP Fund will be to refurbish and improve the Golf Facility. As long as the total unexpended CIP <br />Fund is less than $500,000, the Parties will deposit into the CIP Fund annually, in arrears, an <br />amount equal to four percent (4%) of gross green fee, cart fee and driving range fee revenues for <br />such Lease Year. One-half of such amount will be deposited by AGC and one-half of such amount <br />will be deposited by the City. <br />Page 1 City of San Leandro Printed on 11/13/2018