Title
Review and recommend to City Council a Resolution Authorizing the City Manager to Enter into a One (1) 5-year Renewal Term of the Management Agreement Between the City of San Leandro and American Golf Corporation.
Staffreport
SUMMARY AND RECOMMENDATIONS
On June 1, 2020, the San Leandro City Council adopted a Resolution authorizing the City Manager to execute a Management Agreement with American Golf Corporation (AGC) which runs through November 14, 2024 (Initial Term). Upon expiration of the Initial Term, the parties may mutually agree to renew this Agreement for up to two (2) successive five (5) year terms (Renewal Terms).
Staff recommends that the Facilities and Transportation Committee recommend to the City Council that the Initial Term be renewed for (1) 5-year term to expire on November 15, 2029. City staff has completed a series of evaluative and due diligence reviews to ensure that AGC is fully in compliance with the terms of the Management Agreement.
With the execution of the Extension, one minor addition will be made to the Agreement clarifying the purchase, lease and ownership of the golf cart fleet and other large equipment as transferrable/surrendered to the City upon termination or expiration of the Agreement. All other terms and conditions remain.
BACKGROUND
The 9-hole Marina Executive Golf Course was originally built in 1963 and expanded to an 18-hole Executive course in 1973. The Everett Rooney Driving Range opened in 1971 and in 1983 the Tony Lema 18-hole regulation course was opened and the Marina course reverted back to a 9-hole Executive course. From 1963 to 1997, these recreational amenities were maintained by the City's Public Works Department, while the Food & Beverage and Golf Shop operations were concessioned out.
During those years the golf operations struggled financially and it was reported that in 1996 (last complete year of a City operation), the City lost $250,000 from the operation. There was significant need ...
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