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Home My WebLink AboutAgenda Report - August 19, 1987 (74)CITY COUNCIL MEETING AUGUST 19, 1987 ACTION DEFERRED ON PROPOSED AGREEMENT BETWEEN CITY OF LODI AND GEORGE SAKURAI AND KEN WOLLENBERG TO OPERATE THE GOLF DRIVING RANGE LOCATED AT 531 EAST LOCKEFORD rove Agreement between the City of STREET, LODI Agenda item e -1-N - "APP Lodi and George Sakurai and Ken Wollenberg tc operate the CC -27(a) Go -if Driving Range located at 531 East Lockeford Street" was removed from the Consent Calendassa�dc�nsceunsee regarding the Regular Calendar. Council exp certain language in the proposed agreeR-e+it and requested that the City Attorney amend the Agreement and bring back an amended draft for Council review at the Regular Council Meeting of September Z, 1987• TC THE CITY COUNCIL FROM THE CITY MANAGER'S OFFICE -OUNCII, COMMUNICATI"1 DATE NO. August 1.', 1.987 SUBJECT APP-<.CYVE AGT2 �� _,)T B01� = CITE' OF LODI AND CFS?RG- S'\_K1 RAI ALiD 70 OPS ATu = GOLF DRIVING RANGE LOCA`_71) AT 531 Fc St' I,00CE'ORD Li_)D! PREPARED BY: Director, Parks and Recreation RECOMMENDED ACT10N: That the City Council approve the attached agreement between George Sakurai/ Ken Wollenberg and the City of Lodi to sublease the Golf ~Driving Range property for the purpose of a Golf Driving Range operation. BACKGROUND INFORMATION: The agreement between Sakurai/Wollenberg and the Citv of Lodi officially puts in writing the sublease agreement bet-een the two parties to operate a Driving Range operation at the City -leased Golf Driving Range on the property of the Lodi Grape Festival and National Wine Show/ San Joaquin County facility. The City has allowed Sakurai/Wollenberg to operate the present business for the last two years and approves the continued relationship from J,ily 1', 1987, to June 30, 1990. The City has adjusted the monthly rental fee to ;350.00 per month beginning July 1, 1987, and gradually increasing the fee over the span of this agreement to $400.00 per month July 1, 1988, and $450.00 per month July 1, 1989. This would provide for a more reasonable rental fee agreement for the City to better cover its costs for general upkeep and maintenance of the Driving Range facilities. The 10% for ball rental (monthly gross) would remain the same with no increase required at this time. Additionally, in this agreement we have cleaned up the language and understanding in relation to hours of operation, accounting/auditing, and procedures to address reassignment of this sublease should same occur. Re'sti 'ctfU11_ ubm' e , 1 onald [J, Williamson Parks and Recreation Director RWW : j d InW OFFICES HI'_aTZ & 111'N'TZ ....,I, T -1--Zn S LID "G 50: - STRE_CT. 5u;TE. 3c� SACRUM: NTO. C�:.�F,�ana r:. �55 - i+AMiLT0N : NTZ. E 21c . ..'NTZ August 14, 1987 Mr. Ronald M. Stein, Esq. City Attorney 125 North Stockton St. Lodi, CA 95240 Re: Sakurai and Wollenberg Sublease Agreement Dear Ron: 'Ei EF' ONE ("'6" --3,00 This will memorialize and confirm our telephone conversation of August 12, 1987, wherein we discussed the revisions you made to the proposed sublease agreement following our meeting of July 6, 1987. As I indicated to you in our telephone conversation, the revisions appear, for the most part, to have addressed the concerns raised in our meeting. As we discussed, however, I still am uncomfortable with paragraph 16 which does not, in my mind, clearly articulate our understanding regarding the possibility of an assignment or sublease. Notwithstanding your assurances that the City of Lodi has no desire to prevent an assignment or sublease to a qualified prospective assignee/sublessee, I would feel more comfortable recommending that my clients sign the new lease with the following subtle change: 0t16) It is understood that Second Party shall be entitled to assign or sublease the property hereinabove referred to only with the prior written consent of First Party. First Party agrees that it will approve such an assignment or sublease in the absence of commercially reasonable objections to the proposed assignee or sublessee." Following our conversation of August 12, I also discussed with my clients the language of paragraph 5 which appears to impose a new obligation to complete monthly records on forms provided by the City. I do not personally have a problem with this proviso, however, I have recommended that they discuss this issue with Ron Williamson in order to assess the additional burden, if any, this will place on their bookkeeping responsibilities.. Mr. Ronald M. St--,-?; n, Esq. City Attorney August 14, 1987 Page Two If the proposed change to paragraph 16 is acceptable to you, and the question posed by paragraph S can be resolved, I would recommend that my clients execute the new sublease agreement in your office on August 19, 1987. It is also my understanding that the necessary insurance arrangements have been made and that appropriate proof of the same will be made available to you prior to execution of the new sublease. Ron, based on our conversation, I am confident that my proposed change to paragraph 16 should not cause you any concern. If a question does arise, please do not hesitate to contact my office. I will personally be on vacation during the week of August 17-24, but my secretary can contact me if necessary. Thank you very much :or your continued courtesy and cooperation in this matter. Very truly yours, HINTZ & H!T�NTTZ ERIC H. HINTZ ehh/ny cc Ken and Rose Wollenberg George Sakurai w/enclosure Phil Hiroshima, Esq. w/enclosure C 1 Y C(x *11C t! I0H111 N ,R_u:;•;yj fi%ER ti{A''u, Plo i t'ttl(h it t' DNVID M MN( E{M.AN JA\-tESW PI,NKERTCON_ it FRED rt.RCtf) August 20, 1987 CITY OF LODI l i:. ,i\'_ . ., _... PINE. STREET CALL BOX 3001b LODI, CALIFORNIA 95 241-1 910 (209) 334-5634 TEIECOP11ft {209{131-b795 Eric H. Hintz Hintz & Hintz Court Plaza Building 901 H Street, Suite 301 Sacramento, CA 95814 Re: Sakurai and Wollenberg Sub -.ease Agreement Dear Eric: Your August 14, 1987 letter re adding additional language to the above -referenced Agreement was presented to the City Council at its regular meeting held August 19, 1987. The City Council felt uncomfortable with this language and would ask that the Lessees consider signing the lease agreement for the golf driving range as it was originally prepared. The reason for the Council's concern was that they believe that the phrase "commercially reasonable objections" is too narrow. One council member suggested for example, that an individual who was a convicted child molester, could possibly be allowed to have the assignment or sublease, and the City could not, under the "commercially reasonable objections" phrase, object to a child molester having the assignment/sublease. Perhaps you can think of other RMS:vc hintz/txta.Oly _- 4 a� guage we can agree on. OONAL5 M. STEIN CITY ATTORNEY r Ct,N' ti{a nage ALtCF-.M' R11,MCHF C its Clerk t'.J _ R(JtiK�D Vt �T�I� City Attomev {{ �• C'J K Your August 14, 1987 letter re adding additional language to the above -referenced Agreement was presented to the City Council at its regular meeting held August 19, 1987. The City Council felt uncomfortable with this language and would ask that the Lessees consider signing the lease agreement for the golf driving range as it was originally prepared. The reason for the Council's concern was that they believe that the phrase "commercially reasonable objections" is too narrow. One council member suggested for example, that an individual who was a convicted child molester, could possibly be allowed to have the assignment or sublease, and the City could not, under the "commercially reasonable objections" phrase, object to a child molester having the assignment/sublease. Perhaps you can think of other RMS:vc hintz/txta.Oly _- 4 a� guage we can agree on. OONAL5 M. STEIN CITY ATTORNEY r t LAwO«ICES ,, I HP TZ & HI\TZ �`, �l U '87 COURT PLA$A BVrLCrNG 90' - STREET. 5i iTE 30r SACRAKE NTO. CAL"'C'RNiA 958"1 City pt, rfle`/`5 ��{�e HAMILTON L. HINTZ. jR 111 TELERHONE ERIC H. HINTZ (9:6) 444-3IOC August 14, 1987 Mr. Ronald 14. Stein, Esq. City Attorney 125 North Stockton St. Lodi, CA 95240 Re: Sakurai and Wollenberg Sublease Agreement Dear Ron: This will memorialize and confirm our telephone conversation of August 12, 1987, wherein we discussed the revisions you made to the proposed sublease agreement following our meeting of July 6, 1987. As I indicated to you in our telephone conversation, the revisions appear, for the most part, to have addressed the concerns raised in our meeting. As we discussed, however, I still am uncomfortable with paragraph 16 which does not, in my mind, clearly articulate our understanding regarding the possibility of an assignment or sublease. Notwithstanding your assurances that the City of Lodi has no desire to prevent an assignment or sublease to a qualified prospective assignee/sublessee, I would feel more comfortable recommending that my clients sign the new lease with the following subtle change: sb. 0(16) It is understood that Second Party shall be entitled to +� assign or sublease the property hereinabove referred to only with the prior written consent of First Party. First Party agrees that it will approve such an assignment or sublease in the absence of=F commercially reasonable objections to the proposed assignee or L2 , sublessee. fi x r �4 Following our conversation of August 12, I also discussed with my clients the language of paragraph 5 which appears to impose a new obligation to complete monthly records on forms provided by the 5` City. I do not personally have a problem with this proviso, however, I have recommended that they discuss this issue with Ron Williamson in order to assess the additicaal burden, if any, this will place on their bookkeeping responsibilities. ar ( E K Mr. Ronald M. Stein, Esq. City Attorney August 14, 1987 Page Two If the proposed change to paragraph 16 is acceptable to you, and the question posed by paragraph 5 can be resolved, I would recommend that my clients execute the new sublease agreement in your office on August 19, 1987. It is also my understanding that the necessary insurance arrangements have been made and that appropriate proof of the same will be made available to you prior to execution.of the new sublease. Ron, based on our conversation, I am confident that my proposed change to paragraph 16 should not cause you any concern. If a question does arise, please do not hesitate to contact my office. I will personally be on vacation during the week of August 17-24, but my secretary can contact me if necessary. Thank you very much for your continued courtesy and cooperation in this matter. very truly yours, HINTZ & HINTZ 4r� ERIC H. HINTZ ehh/ny cc Ken and Rose Wollenberg George Sakurai w/enclosure Phil Hiroshima, Esq. w/enclosure C C jr - _ � p i RESOLUTION N0. 87-107 RESOLUTION ACCEPTINfG THE BD r n F'iPROVEME!'TS lis,;r UE -�- St i�IS10.1 11 T J 'L 11':11 l`C SUBDIVISION AGREEMENT AND ADDENDUM FOR JOHNSON RANCH UNIT NO. 1 The City Council of the City of Lodi finds: 1. That all requirements of Chapter 16 of the Lodi Municipal Code have been complied with in connection with the improvements included in Johnson Ranch Unit No. I, located along Century Boulevard west of Cherokee Lane, which map was filed on August 22, 1986, in Volume 27, Page 93, Book of Maps and Plats, San Joaquin County Records. 2. That the offer to dedicate the following streets has not been revoked. STREET LENGTH IN MILES Cherokee Lane 0.00 Century Boulevard 0.3I Swallow Lane 0.17 Sandpiper Circle 0.30 Chickadee Lane 0.04 Thrush Court 0.04 Starling Way 0.06 Bluejay Way 0.06 0.98 (Total new miles of City streets) Dated: August 19, 1987 I hereby certify that Resolution No. 87-107 was passed and adopted by the City Council of the City of Lodi in a regular a meeting held August 19, 1987, by the following vote: is Ayes: Councilmembers - Hinchman, Pinkerton, Reid, and Olson (Mayor) z Noes: Councilmembers - None Absent: Councilmembers - Snider h, 4,1 ALICE M. REIMCHE City Clerk 87-107 f. i CITY OF LODI, GEORGE SAKURAI AND KEPI WOLLENGERG AGREEMENT SUBLEASE AGREEMENT TO OPERATE THE GOLF GR11l:iiG RAI.GE JULY 1, I987 to JUNE 30, 1990 A G R E E M E N T THIS AGREEMENT made and entered into as of the day of , 19__. by and between the CITY OF LODI, a municipal corporation, hereinafter called First Party, and GEORGE SAKURAI and KEN WOLLENBERG, hereinafter called Second Party. W I T N E S S E T H: First Party does hereby grant to Second Panty the exclusive right to operate the GOLF DRIVING RANGE located at 531 East Lockeford Street, Lodi, California, for a term commencing July 1, 1987, and terminating at midnight on June 30, 1990, on the following terms and conditions. (1) If First Party renews its Master Lease entered into July 1, 1987 with the Lodi Grape Festival and National Wine Show, Second Party will have an option to renew this Agreement for a period of two (2) years upon expiration of this Agreement, upon giving to First Party 60 days prior to end of term, a written notice of intent to renew, at which time both parties hereto shall have the opportunity to evaluate this Agreement for continuance and/or adjustments and to negotiate monthly -I- I a rer+.ai rate, g -11f ball rental percentage rate, evaluate eeperal operations and upkeep of driving ranee area. (2) As consideration for this Agreement, Second Party agrees to pay First Party a monthly rental as follows: (a) Beginning July 1, 1987 of $350.00 per current month, due and payable by the 10th of each month. (b) Beginning July 1, 1988, Second Party agrees to pay First Party a monthly rental of S400.00 per current month, due and payable by the 10th of each month. ( c ) Beginning July 1, 1989, Second Party agrees to pay. First Party a monthly rental of $450.00 per current month, due and payable by the 10th of each month. (3) Second Party to pay to First Party commencing July 1, 1987 through June 30, 1990, ten percent (10%) of the gross revenue received for the rental of balls, which 10% payment is due the First Party, payable with the monthly rental payment on the 10th day of each month for the previous month's rental of balls. Should any other new operation become a part of said driving range, it shall require approval by the First Party's representative and will be up for negotiation as to rental fee or percentage return to First Party. -2- (4) Second Party to pay to First Party for any non-payment of rent beyond the 10th day of each month, and/or non-payment of the previous month's gross revenue of rental of balls, a service charge of five percent (5',11) of any amount due and payable. (5) Second Party shall keep and maintain accurate records and books of accounts of all receipts and disbursements and does hereby give to the City or its authorized agents, the right to examine and audit said records and books at any time City desires. Second Party will complete monthly records on forms provided by the City, which must accompany monthly gross receipts payment. (6) Second Party agrees to maintain in full force during the term hereof a policy of general liability insurance which contains an Additional Named Insured Endorsement naming the City of Lodi as an Additional Insured, and under which the insurer agrees to indemnify and hold the City of Lodi harmless from and against all costs, expenses, and liability arising out of, or based upon, any and all property damage, or damages for personal injuries, including death, sustained in accidents occurring in or about the demised premises; where such accident, damage, or injury, including death, results or is claimed to have resulted, from any act or omission on the part of Second Party or Second Party's agents or employees, in the implementation of this Agreement. The minimum limits of such insurance shall be $500,000/ $1,000,000 Bodily Injury; $50,000 Property Damage, or $1,000,000 combined single limit. In addition to the huditional Named Insured Endorsement on Second Party's policy of insurance, said insurance policy shall be endorsed to include the following language: -3- "Such insurance as is afforded by the endorsement for 'the Additional Insureds shall apply as primary lrisurance. Any other insurance maintained by the City of Lodi or its officers and employees shall be excess only and not contributing with the coinsurance afforded by this endorsement." A duplicate or certificate of said bodily injury and property da -mage insurance containing the above -stated required endorsements shall be in the City Attorney's hands on or before the time of the execution of this Agreement, with satisfactory evidence that each carrier is required to give the City of Lodi at least 30 days prior notice of the -car:-ollation or reduction in coverage of any policy during the effective period of this Agreement. The insurance certificate must state on its face or as an endorsement, that the insurance certificate is an insurance certificate for the GOLF DRIVING RANGE. All requirements herein provided shall appear either in the body of the insurance certificate or as an endorsement and shall specifically bind the insurance carrier. (7) Second Party shall not allow alcoholic beverages to be sold or consumed on the premises. (8) Second Party shall provide and furnish, free of charge to patrons, necessary golf clubs. (9) Second Party shall keep said GOLF DRIVING RANGE open to the public six days each week. Days of operation and times said Driving Range shall be open to the public will be determined by the First Party and -4- Second Party representatives who will consider operational hours for Spring/Summer and Fall/hinter seasons. (10) Second Party shall post on the premises, daily hours of operation. Said daily hours of operation are to be as agreed upon between the City of Lodi City Manager or his designee, and Second Party. Second Party must adhere to agreed-upon posted hours of operation. Failure of Second Party to adhere to agreed-upon posted daily hours shall constitute grounds for First Party to terminate and cancel this Agreement. (11) Second Party shall keep said premises in a clean and neat condition at all times and to properly and at seasonal times water the grass area of said GOLF DRIVING RANGE. (12) First Party covenants and agrees to do the following: a) Cut grass at GOLF DRIVING RANGE, as per schedule mutually agreed upon b) Furnish utilities, install, and replace all necessary light bulbs c) Maintain general property and buildings. e ( 13) Second Party does hereby that all improvements and s structures located on said premises are the property of First Party. r Second party will confer with and seek approval on any and all improvements to said property and/or buildings prior to rehabilitation or construction of same. It will be the financial responsibility of } -5- Second Party to make adjustment's or improvements to said pro;??r4VibUi (14) Second Party does hereby acknowledge that he has read the Master Lease entered into July 1, 1987 and terminating June 30, 1940, attached hereto as Exhibit "A" and incorporated herein by reference, wherein Lodi Grape Festival and National kine Show, Inc. is referred to as Lessor and First Party as Lessee, and which lease covers the property hereinabove referred to. Second Party does hereby agree to be bound by the terms of said Master Lease insofar as said terms affect his operation and use of said property by Second Party. (15) In the event that Second Party fails to comply with any of the foregoing covenants and/or conditions, First Party shall then have the right to terminate and cancel this Agreement, it being understood and agreed that First Party shall be the sole judge as to whether the terms of this Agreement are being met. (16) It is understood that Second Party shall have no right or authority to assign or sub -lease the property hereinabove referred to, and no such assignment or sub -lease will be permitted without the approval of the First Party. First Party agrees that its approval or denial must be on a reasonable basis. (I7) Upon the conclusion of the term of this Agreement, all conditions of this Agreement shall be reevaluated and/or renegotiated as to property rental rate, ball rental percentage rate and/or any other -6- conditions of this Agreement deemed requiring adjusting, reevaluation, or agreement between the parties hereto. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands the day and year first hereinabove written. CITY OF LODI, a municipal corporation First Party THOMAS A. PETERSON City Manager ATTEST: ALICE M. REIMCHE City Clerk Approved As To Form: RONALD M. ST IN City Attorney agrgolf2/txta.02v KEN WOLLENl3 R Second Party GEORGE ATCURM Second Party -7-