HomeMy WebLinkAboutAgenda Statement 1988/09/27 Item 05
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COUNCIL AGENDA STATEMENT
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Item
5
ITEM TITLE:
Resolution
Golf Course
Director of~~s
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City Managerf
t,
Meeting Date 9/27/88
Adjusting greens fees at Chu1a Vista
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SUBMITTED BY:
and Recreation
REVIEWED BY:
(4/5ths Vote: Yes___No~)
American Golf Corporation is requesting a greens fees adjustment for the Chula
Vista Golf Course as provided in the lease agreement. The effective date of
the increase, if approved, would be October 27, 1988.
RECOMMENDATION: That Council adopt resolution approving the greens fees
adjustment effective October 27,1988.
BOARDS/COMMISSIONS RECOMMENDATION: At its June 16, 1988 meeti ng, the Parks
and Recreation recommended approval of a greens fees increase that woul d be
effective the first calendar day of the month after all lease agreement
conditions involving capital improvement projects were completed. At its
September 15, 1988 meeting, the Commission reconsidered its June 16, 1988
. acti on and are now recommendi ng that the proposed rate increase be permi tted
to be implemented 30 days after Council approval due to expected delays
American Golf will face, through no fault their own, in completing river
channel improvements and installation of bridges (Attachment A). It was
further recommended by the Commission that any subsequent request for an
increase in fees not be made within 12 months unless there are delays (in
completing the improvements) beyond American Golf's control.
DISCUSSION:
American Golf Corporation, under lease agreement with the City, has operated
. the Chula Vista Municipal Golf Course and Driving Range since November, 1984.
The lease agreement requires written notice to the City no less than 60 days
prior to the date that any new greens fees are to go into effect. Pursuant to
that provision, American Gol f submitted a request for greens fees adjustment
on May 10, 1988. The proposed adjustment (Attachment B) was considered by the
Parks and Recreation Commission at their June 16, 1988 meeting. At its June
16, 1988 meeting, the Parks and Recreation Commission recommended approval of
the requested rate increase but its effective date was not to occur until all
the improvements required under the lease agreement had been completed
(Attachment C).
American Golf's last fee adjustment was more than two years ago on July 10,
1986. They did not seek an increase in 1987 because staff informed American
Golf we could not recommend any further fee adjustments until all the
improvements required under the contract had been completed. In early 1987,
. there were still several major projects in the three year capital improvement
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Page 2, Item 5
Meeting Date 9/2//88
program that had not been completed. Those items included river channel
improvements, cart path construction, bridge improvements, tree planting, new
golf carts and course furnishings. Since early 1987 and prior to the Parks
and Recreati on Commi ss i on I s consi derati on of the proposed rate increase on
June 16, 1988, American Golf had made significant progress in completing the
above referenced improvements except for the channel improvements and new
bridges. Completion of those two projects resulted in the Commission's
conditional recommendation for approval of the requested rate increase.
Subsequent to the June 16 action of the Commission, American Gol f submitted
improvement pl ans for the channel improvements and new bri dges to the City's
Engi neeri ng Department. A consul ti ng engi neeri ng fi rm is al so pre pari ng, as
required by our Engineering Department, a grading plan in preparation for the
channel improvements.
The problem American Golf faces is that in addition to obtaining City
approval, a 404 Permit from the U.S. Corps of Engineers and State Fish and
Game approval is required. It now appears as though actual work on the
channel cannot be anticipated to occur until sometime after January, 1989
because any major improvements in the Sweetwater River Channel must secure a
permit from these agencies and, as the City is well aware, considerable time
and effort is i nvol ved in securi ng thei r permi ssi on. In vi ew of the above,
American Golf is seeking implementation of the proposed greens fees increase
. and has offered to provi de the City a $185,000 1 etter of credit guaranteei ng
that these improvements will be completed when all necessary approval s are
obtained (said letter of credit will be subject to the approval of the City
Attorney as to form and content). Since the timing of the improvements is not
within the total control of American Golf, it was the feeling of the Parks and
Recreation Commission and staff that further delays in implementing the new
fee schedule is an unfair burden to place on American Golf.
A comparison of the fees requested by American Golf show that they are
comparable to other local golf courses (Attachment D) in San Diego County and
are supported by the Chula Vista Men's Golf Club. In the proposed new fee
~ structure, perhaps one of the most significant changes involves a new
non-County resident fee which would be $2.00 per 18 holes over and above the
rate proposed for a County resident.
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FISCAL IMPACT: Increased fees would generate additional
City as well as American Golf. Using a base figure for the
played in the prev i ou s yea r , the new fee s truc ture
approximately $15,000 more for the City.
revenue for the
number of rounds
woul d generate
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