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City of San Leandro <br />Meeting Date: June 1, 2020 <br />Staff Report <br />Agenda Section:File Number:20-174 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Debbie Pollart <br />Public Works Director <br />FINANCE REVIEW:Liz Warmerdam <br />Interim Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Authorizing the <br />City Manager to Enter into a New Management Agreement Between the City of <br />San Leandro and American Golf Corporation and to Authorize the City Manager <br />to Terminate the Existing Lease Agreement between the City of San Leandro <br />and American Golf Corporation <br />SUMMARY AND RECOMMENDATIONS <br />With the City’s intention of selling a portion of the 9-hole golf course to Cal Coast as part of the <br />proposed Shoreline development project, the recommended action terminates the existing Lease <br />Agreement between the City and American Golf Corporation (AGC), which currently runs through <br />November 14, 2024 (in addition to the option for two additional 5-year extensions, if mutually <br />agreed upon). If authorized by the City Council, the existing agreement would be replaced with a <br />new Management Agreement. <br />BACKGROUND <br />The Marina Golf Course was originally built in 1963, while the Tony Lema Course and Everett <br />Rooney Driving Range opened in 1983. Prior to November 1997, these recreational amenities <br />were operated and maintained by the City, and at the time, at a loss to the City. There was <br />significant need for capital improvements to enhance the quality of play and to improve the golfing <br />experience, but with no identified funding source. The City issued a Request for Proposals and <br />seven firms responded. A subcommittee of three councilmembers and two golfers from the public <br />reviewed the proposals and narrowed the field of interviewees down to three firms: AGC, Arnold <br />Palmer Company, and Senior Tour Players. <br />The general terms of the 1997 Lease Agreement are: <br />·20-year term (to commence after completion of Phase III work, which was November 15, <br />2004) + two 5-year extensions if mutually agreed to; <br />Page 1 City of San Leandro Printed on 5/28/2020 <br />134