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HomeMy WebLinkAboutAgenda Report - November 4, 1992 (64)r OF U� Q CITY OF LODE COUNCIL COMMUNICATION CgCtFOR�`P AGENDA TITLE: (Information Only) A. Extension of Golf Driving Range Agreement with County of San Joaquin and Grape Festival Board. B. Golf Driving Range Sublease MEETING DATE: November 4, 1992 PREPARED BY: Parks and Recreation Director RECOMMENDED ACTION: Information ONLY. BACKGROUND INFORMATION: A. We are currently drafting a new extension for a (3) three year renewal for our driving range sublease operation with the County of San Joaquin and the Festival Board. The new term would run from July 1, 1993 to June 30, 1996. h rough draft has been prepared by City Attorney, Bob McNatt, which we and the Festival people are reviewing. Once this has been accomplished, it will be presented to the County and Festival Board for approval and back to the City Council for their review and approval. I would think you will see something before you by December or the first part of the new year. We have enjoyed a very good working relationship with Graeme Stewart and the Festival Board over these many years and see no reason for that to not continue. B. As we work towards our extension agreement, we have been contacted by Mr. George Sakurai, current operator of the Golf Driving Range, that he wants to sell his interests in his range to Mr. Ken Choo and Mr. Duke Nicholls. We, the City of Lodi, through agreement with the County/Festival Board, lease from them the property and then sublease the operation to a third party. We receive monthly a rental fee, currently $450.00 per month, and a 108 of ball rentals sold monthly at the range. These figures monthly can vary - low season, $150.00-$200.00; high season, $350.00-$400.00. This ball rental is split in half, and we (City) send a check to the Festival for that amount. (Please see Exhib,c A attached - 1991-1992 Golf Range Income/Expense accounting.) You will see by this report that we are on the plus side of this operation by about $1,164.83. Our operational services are mowing, electrical, water/sewer and occasionally we participate in some minor maintenance. Over the years, we have also participated jointly with the owner and festival in a major improvement. At this point, we are considering Mr. Choo's and Mr. Nicholls' abilities to take over the operation of the range and what they will bring to the range for our citizens. We have seen some major improvements, faci.litywise, within the last two months - (1) a new viewing and seating deck, (2) cement driving range pads, and (3) golf shop renovation. Planned is a remodel of the pro shop and possibly a small breakfast/lunch cafe on that corner (Locke ford/Cherokee Lane). Currently, though, Mr. Choo and Mr. Nicholls are ironing out their working relationship. Once this is resolved to our satisfaction and we know we'll have a solid teaching pro in place, we would then endorse the change in owner/operator. Hopefully, we will likewise be back to you with a recommendation for approval of a new owner/operator within the next couple of months. APPROVED. THOMAS A. PETERSON City Manag©r ;i recycled paper CG -1 A Extension of Golf Driving Range Agreement with County of San Joaquin and Grape Festival Board. B. Golf Driving Range Sublease November 4, 1992 Page 2 FUNDING: No financial cost impact, with the exception of increased income once a new contract with the owner/operator is put in place. We will be asking for a rent increase July 1, 1993 to $500.00; then $550.00 in 1994 and $600.00 in 1995. Ball rent to etay the same. t / Ron Williamson Parks and Recreation Director RW: arb Attachment cc: City Attorney Lodi Golf Driving Range Ycar: Month Rent Ball % Total July $450.00 $336.60 $786.60 Aug $450.00 $365.42 $815.42 Sept $450.00 $445.35 $895.35 Oct $450.00 $177.45 $627.45 Nov $450.00 $261.68 $711.68 Dec $450.00 $223.55 $673.55 Jan $450.00 $104.34 $554.34 Fcb $450.00 $193.68 $643.68 Mar $450.00 $234.82 $734.82 Apr $450.00 $433.35 $553.35 May $450.00 $320.70 $770.70 June $450.00 $382.7.2__ $832.72 Totals: Percent a es va $1,764.83 Rent Total Income City est. to operate Plus/Minus Cost to City $5,400.00 $7,164.83 $6,000.00