Laserfiche WebLink
12 <br /> THE CITY OF <br /> pLEASANTON CITY COUNCIL AGENDA REPORT <br /> December 1, 2020 <br /> Operations Services <br /> TITLE: APPROVE OPERATOR EXTENSION AND AMENDMENT OF AGREEMENT <br /> WITH PLEASANTON GOLF, LLC (CourseCo) <br /> SUMMARY <br /> The Operator Agreement with Pleasanton Golf, LLC (CourseCo) is scheduled to end on <br /> December 31, 2020. Staff representatives from the City Attorney's Office, Finance, and <br /> Operations Services departments have been discussing an extension and amendment to the <br /> Agreement with Pleasanton Golf, LLC (CourseCo) management for several months. The <br /> amendment addresses a term extension of five years with additional extension options, <br /> payment practices, and minor language cleanup to the Agreement. <br /> Under this Agreement, Pleasanton Golf, LLC (CourseCo) would manage the maintenance <br /> and operations of Callippe Preserve for the City. Expenses would be passed through for <br /> reimbursement by the City from golf course revenues. Pleasanton Golf, LLC (CourseCo) <br /> would receive a "fixed" fee each year of the agreement, plus "incentive" fee payments tied to <br /> meeting aggressive revenue goals, including green fees, cart rentals, driving range fees, <br /> merchandise, lessons, and food and beverage through enhanced marketing efforts. <br /> In the first year, payments are divided between both a "fixed" and "incentive" management <br /> fees. The first-year fixed fee is $120,000, and the combined management fee (fixed and <br /> incentive) cannot exceed $150,000. The combined management fee would increase by a <br /> maximum of the Consumer Price Index (CPI) on July 1, 2021 and July 1st thereafter, in the <br /> same proportion as changes to the Consumer Price Index in each subsequent contract year. <br /> The City would utilize revenues generated from golf course operations to pay for all operating <br /> costs, with any excess funding going towards internal service funds for golf course capital <br /> projects and repair and maintenance projects. <br /> PARKS AND RECREATION COMMISSION RECOMMENDATION <br /> That the City Council approve the Extension and Amendment to the Operator Agreement with <br /> Pleasanton Golf, LLC (CourseCo) for management of Callippe Preserve Golf Course. <br /> RECOMMENDED ACTION <br /> Approve the Extension and Amendment to the Operator Agreement with Pleasanton Golf, <br /> LLC (CourseCo) for management of Callippe Preserve Golf Course. <br />