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
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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.
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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 Improvemen...
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