DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 2 TO THE GOLF COURSE MANAGEMENT & OPERATION AGREEMENT WITH OCEANSIDE GOLF, LLC TO EXTEND THE TERM ON A MONTH-TO-MONTH BASIS
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 2 to the Golf Course Management & Operation Agreement with Oceanside Golf, LLC to extend the term of the agreement on a month-to-month basis until terminated by either party with 90-days prior written notice; and authorize the City Manager to execute the Amendment upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On June 23, 2010, the City and Oceanside Golf, LLC (OGL) entered into the Golf Course Management & Operation Agreement for OGL to manage the Oceanside Municipal Golf Course (OMGC) located at 825 Douglas Drive, Oceanside ("Premises"). The agreement was amended on June 17, 2020 by Amendment No. 1 (collectively, the "Agreement").
The Agreement provides OGL a fixed annual management fee in the amount of $120,000 payable monthly and a percentage management fee of five percent (5%) of the gross revenues in excess of approximately $2,900,000 as of FY 2024-25, payable annually, if applicable. The Agreement expires June 30, 2025 with no options to extend.
At this time, the City and OGL are desirous of extending the term of the Agreement on a month-to-month basis to be terminable with a 90-day notice of termination by either party. It is the City's desire to issue a Request for Proposal ("RFP") for operation or lease of the Premises. The City anticipates the RFP being issued within the next six months. With additional time needed to proceed with the RFP process, an extension of the term of the Agreement is required. The Amendment adjusts the fixed management fee to a monthly fixed management fee of $10,000 per month, with proration required for any partial months of the extended month-to-month term.
OMGC generated $619,...
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