DATE: August 7, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 1 TO AN AGREEMENT WITH OCEANSIDE GOLF, LLC FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF A NEW IRRIGATION SYSTEM AT THE OCEANSIDE MUNICIPAL GOLF COURSE
RECOMMENDATION
title
Staff recommends that the City Council approve Amendment 1 to the Agreement for Reimbursement of Costs for the construction of a new irrigation system with Oceanside Golf, LLC for the Oceanside Municipal Golf Course located at 825 Douglas Drive; appropriate an additional $200,000 from the golf course assigned fund balance to the Municipal Golf Course Irrigation Improvement Project for a total of $3,810,804; and authorize the City Manager to execute the Amendment upon receipt of all supporting documents.
body
BACKGROUND AND ANALYSIS
On June 23, 2010, the City of Oceanside (“City”) and Oceanside Golf, LLC (“OGL”) entered into a Golf Course Management & Operation Agreement (“Management Agreement”) for OGL to manage the Oceanside Municipal Golf Course (“OMGC”) for an initial term of ten years. The Management Agreement was amended in June 2020 to adjust the management fees paid to OGL and extend the term for an additional five years to expire on June 30, 2025.
On February 15, 2023, OGL entered into a Reimbursement Agreement (“Agreement”) with the City for the construction and installation of a new golf course irrigation system (“Improvements”), which provided for a preliminary cost estimate for design, construction and supervision of the Improvements for a total initial budget of $3,610,804. The Agreement provides that the City is to reimburse OGL for the actual pre-approved costs incurred by OGL, up to the budget amount (as it may be amended), for the Improvements.
In October 2023, OGL entered into a construction contract, which was amended by Amendment 1 on January 2024, with Diamond Golf International, Inc. (“Contractor”), to perform the installation of Improvements. OGL has been providing project management and oversight services related to the installation of the Improvements to ensure timely and successful completion.
At this time, OGL is requesting an amendment to its Agreement with the City to increase the initial budget by $200,000, which will be used to complete much needed repairs and replacements to bunkers and tee boxes, along with costs associated with additional construction materials required to complete the installation of the Improvements, which are to be funded with funds from the golf course fund.
In March 2024, the Contractor began installing the Improvements. Due to the antiquated condition of the existing irrigation system, it quickly became evident to OGL and the Contractor that the tee boxes and sand bunkers are also in need of major repairs and in some cases complete replacement. These types of repairs/replacements were discussed with City staff and have been deferred at OMGC for many years. City staff determined it to be beneficial for the project and most efficient to do such repairs in conjunction with the installation of the new irrigation system while the golf course has limited play and the Contractor is on site. In addition, due to the age of the existing system, the Contractor has encountered numerous installation challenges, resulting in the need to order additional wiring and other project materials. Furthermore, in many instances, the original irrigation lines were not in the locations that were set forth in the old system plans; therefore, the Contractor has had to make field adjustments. Many of these adjustments have improved the efficiency of the new irrigation system; however, this has also created adjustments to the material needs of the project, which has added to the overall cost. The combination of these construction changes described above have translated into an estimated increase to the overall budget for the Improvements in the amount of $200,000.
The installation of the Improvements is well underway and estimated to be complete by the end of August 2024. OMGC has remained open during construction with a minimum of nine holes consistently playable at all times. Once completed, these repairs, upgrades and field adjustments will significantly improve the course, reduce maintenance labor costs and water consumption, while providing golfers with an enhanced experience.
FISCAL IMPACT
Amendment 1 of the OGL Reimbursement Agreement in the amount of $200,000 will be charged to the Municipal Golf Course Irrigation Improvement account 906177622596.5703.10600. Staff is requesting to use Assigned Golf Course Irrigation fund balance in the amount of $200,000 and appropriate to the Municipal Golf Course Irrigation Improvement account 906177622596.5703.10600 to cover the cost of the amendment. The funding source is assigned Golf Course Irrigation fund account 596.3020.0225 which has an available balance of $945,909; therefore, sufficient funds are available.
|
Amount for Amend 1 |
Request to Appropriate |
Account |
Funding Source |
Available Balance |
|
$200,000 |
$200,000 |
906177622596.5703.10600 Muni Golf Course Irrigation Improvements |
596.3020.0225 Assigned Golf Course Irrigation |
$945,909 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form
end
Prepared by: Vicki Gutierrez, Real Estate Manager
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Amendment 1