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Home My WebLink About2006 CON American Golf Corporation - Las Palmas Golf Course - Amendment to Agreement (2)AMENDMENT TO AGREEMENT This Amendment to Agreement is made and entered this 1st day of August, 2006, by and between the City of National City, a municipal corporation, hereinafter referred to as "LANDLORD," and American Golf Corporation, hereinafter referred to as "TENANT." RECITALS This Amendment to Agreement is made with reference to the following recitals: A. On May 3, 1984, LANDLORD and TENANT entered into a "Lease and Operating Agreement for the Las Palmas Municipal Golf Course," and said Agreement was subsequently amended on various dates, with the last amendment occurring on February 12, 2002. B. LANDLORD and TENANT desire to amend Paragraph 10.2.A of said Agreement pertaining to fees. NOW, THEREFORE, the parties hereto mutually agree as follows: 1. Paragraph 10.2.A of the "Lease and Operating Agreement of Las Palmas Municipal Golf Course" is hereby amended, effective August 1, 2006, to read as follows: "10.2. All fees charged to patrons at the demised Premises will be comparable to those fees charged by comparable competing Southern California public golf courses for similar goods and services and facilities. follows: A. TENANT and LANDLORD agree that green fees and cart fees will be as GREEN FEES — Weekday 9-HOLE 9-hole Non -Resident $12.00 9-hole Resident $10.00 Seniors Non -Resident $10.00 Seniors Resident $7.00 Juniors $7.00 Twilight $9.00 Adults — Replay Seniors — Replay Juniors — Replay Twilight — Replay GREEN FEES — Weekend 9-hole Non -Resident 9-hole Resident Seniors Non -Resident Seniors Resident Juniors Twilight $8.00 $6.00 $6.00 $6.00 9-HOLE $15.00 $13.00 $11.00 $8.00 $8.00 $11.00 Adults — Replay Seniors — Replay Juniors — Replay Twilight — Replay CART FEES — Weekend and Weekday Rates Per Person Pull Cart Cart Replay — Per Person RANGE Range prices per ball: $8.00 $6.00 $6.00 $6.00 $8.00 $4.00 $4.00 $0.08 For purposes of this section, 'seniors' shall mean all persons 60 years old or older and 'juniors' shall mean all persons 16 years old or younger." 2. Except as otherwise provided herein, all of the terms and conditions of the "Lease and Operating Agreement for Las Palmas Municipal Golf Course" dated May 3, 1984, and as subsequently amended, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on the date first above stated. APPROVED AS TO FORM: George H. Eiser, III City Attorney AMERICAN GO ORPORATION By: Senior;,' President/General Counsel By: As istant Secr RESOLUTION NO. 2006 - 163 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN GOLF CORPORATION PERTAINING TO FEES AT THE NATIONAL CITY GOLF COURSE WHEREAS, on May 3, 1.984, the City and American Golf Corporation entered into a Lease and Operating Agreement for the National City Golf Course, and said Agreement was subsequently amended on various dates, with the last amendment occurring on March 12, 2002; and WHEREAS, the City and American Golf Corporation desire to amend Paragraph 10.2.A of said Agreement pertaining to fees, to be effective September 5, 2006. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute an Amendment to the Agreement with American Golf Corporation pertaining to fees at the National City Golf Course. .Said Amendment to Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 1st day of August, 2006. Nick Ina -Mayor APPROVED AS TO FORM: George H. Eiser, III Clty Attorney follows: AMENDMENT TO AGREEMENT This Amendment to Agreement is made and entered this 1st day of August, 2006, by and between the City of National City, a municipal corporation, hereinafter referred to as "LANDLORD," and American Golf Corporation, hereinafter referred to as "TENANT:' RECITALS This Amendment to Agreement is made with reference to the following recitals: A. On May 3, 1984, LANDLORD and TENANT entered into a "Lease and Operating Agreement for the Las Palmas Municipal Golf Course," and said Agreement was subsequently amended on various dates, with the last amendment occurring on February 12, 2002. B. LANDLORD and TENANT desire to amend Paragraph 10.2.A.of said Agreement pertaining to fees. NOW, THEREFORE, the parties hereto mutually agree as follows: 1. Paragraph 10.2.A of the "Lease and Operating as Palmas Municipal Golf Course" is hereby amended, effective August 1, 2006, tonent of Lread as follows: "10.2. All fees charged to patrons at the demised Premises will be comparable to those fees charged by comparable competing Southern California public golf courses for similar goods and services and facilities. A. TENANT and LANDLORD agree that green fees and cart fees will be as GREEN FEES — Weekday 9-HOLE 9-hole Non -Resident $12.00 9-hole Resident $10.00 Seniors Non -Resident $10.00 Seniors Resident $7.00 Juniors $7.00 Twilight $9.00 Adults — Replay Seniors — Replay Juniors — Replay Twilight — Replay $8.00 $6.00 $6.00 $6.00 GREEN FEES —Weekend 9-HOLE 9-hole Non -Resident 9-hole Resident Seniors Non -Resident Seniors Resident Juniors Twilight $15.00 $13.00 $11.00 $8.00 $8.00 $11.00 Passed and adopted by the Council of the City of National City, California, on August 1, 2006, by the following vote, to -wit: Ayes: Councilmembers: Inzunza, Morrison, Parra, Zarate. Nays: Natividad. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Mayor of the City of National City, California City CI 4 ation k of the City of al City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-163 of the City of National City, California, passed and adopted by the Council of said City on August 1, 2006. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 1, 2006 22 AGENDA ITEM NO. %ITEM TITLE Resolution Authorizing the Mayor to Execute an Amendment to the Agreement between the City of National City and American Golf Corporation Pertaining to Fees at the National City Golf Course PREPARED BY Leslie Deese DEPARTMENT Community Services/City Manager Phone: (619) 336-4242 EXPLANATION The American Golf Corporation has responded in writing to the City Council's request to decrease the green fees for city residents at the National City Golf Course. (See attachment.) American Golf recommends a $1 decrease in resident's green fees on weekends, but no decrease for such fees during the week. American Golf is also asking for an increase in the green fees paid by non-residents, as well as an increase in golf cart fees for all users, effective September 5, 2006. The last fee increase was March, 2002. Also attached is a copy of the General Manager's 2005 Executive Summary Review on the National City Municipal Golf Course. This information is provided in response to the City Council's request for periodic updates from American Golf on golf course performance and property improvements. Additionally, staff has asked American Golf for quarterly updates. Regarding the Council's inquiry about building ownership, National City owns the clubhouse and other buildings on the golf -course property, and American Golf is responsible for their maintenance and repair. L Environmental Review N/A Financial Statement N/A Account No. STAFF RECOMMENDATION The proposed rate adjustment only partially addresses the City Council's request for discounts to National City residents. Staff is submitting the proposed fee adjustment to City Council for their consideration. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. ; . ),', 1. American Golf letter dated June 3, 2006 C $ I `1 2. Resolution ' l 03. American Golf's 2005 Executive Summary Report on the National City Municipal Golf A-200 (9/80) Course RESOLUTION NO. 2006 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN GOLF CORPORATION PERTAINING TO FEES AT THE NATIONAL CITY GOLF COURSE WHEREAS, on May 3, 1984, the City and American Golf Corporation entered into a Lease and Operating Agreement for the National City Golf Course, and said Agreement was subsequently amended on various dates, with the last amendment occurring on March 12, 2002; and WHEREAS, the City and American Golf Corporation desire to amend Paragraph 10.2.A of said Agreement pertaining to fees, to be effective September 5, 2006. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute an Amendment to the Agreement with American Golf Corporation pertaining to fees at the National City Golf Course. Said Amendment to Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 1st day of August, 2006. Nick lnzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney June 3, 2006 Leslie A. Deese Community Services Director City of National City 141 East 12th Street Suite A National City, CA 91950-3312 Dear Ms. Deese, As per your request, I am respectfully submitting this letter to propose a rate increase at The National City Golf Course. We would like to propose the new rates to be effective as soon as possible. We are proposing an increase of two dollars to our weekday non- resident and senior non-resident rates. We are also proposing an increase to our weekday and weekend twilight rate of $1.00, as well as a $1.00 increase to the weekend non- resident rate. We are not requesting an increase to the weekday National City resident rate. In fact, we are proposing a decrease to the National City weekend resident rate by $1.00 at the request of Mayor Inzunza. National City residents will now be eligible for the discounted resident rate, weekday and weekend, upon check in with valid identification. We are also proposing a fifty cent increase to the weekend replay rate and $1.50 increase to the weekday twilight replay rate. This proposed rate increase was supported by the recent facility audit performed by MBIA Muniservices Company. The findings of the recent facility audit performed by MBIA were published on April 7th, 2006 and shared with The City of National City and American Golf Corporation. Our last rate increase was in 2002. The golf course is in the best shape ever. We are confident the golfers will support the increase. I have included a comparative rate survey for executive golf courses and local municipal golf courses for your review. I have also attached a rate sheet that shows the proposed changes. Thanks for all the support. Sincerely, Randy Lohrenz General Manager National City Golf Course National City Golf Course Proposed Rates Date: 7/24/2006 Green Pees Weekday 9-hole Non -Resident 9-hole Resident Seniors Non -Resident Senior Resident Juniors Twilight Adults - Replay Seniors - Replay Juniors - Replay Twilight - Replay Proposed Current 9-hole Variance $10.00 $12.00 $2.00 $10.00 $10.00 $0.00 $8.00 $10.00 $2.00 $7.00 $7.00 $0.00 $7.00 $7.00 $0.00 $8.00 $9.00 $1.00 $8.00 $8.00 $0.00 $5.50 $6.00 $0.50 $4.50 $6.00 $1.50 $4.50 $6.00 $'1.50 Weekend Proposed Current 9-hole Variance 9-hole Non -Resident $14.00 $15.00 $1.00 9-hole Resident $14.00 $13.00 -$1.00 Seniors Non -Resident $9.00 $11.00 $2.00 Senior Resident $8.00 $8.00 $0.00 Juniors $8.00 $8.00 $0.00 Twilight $10.00 $11.00 $1.00 Adults - Replay $8.00 $8.00 $0.00 Seniors - Replay $5.50 $6.00 $0.50 Juniors - Replay $5.50 $6.00 $0.50 Twilight - Replay $5.50 $6.00 $0.50 Cart Fees Weekend and Weekday Rates Current $7.00 $2.00 Per person Pull Cart Cart Replay Current Per person $3.50 Proposed $8.00 $4.00 Proposed $4.00 National City Golf Course 2005 Review Executive Summary Craig Hill General Manager 2005 Review Summary Index Page # 2005 Performance Recap 3 2006 Opportunities 4-5 2005 SWOT Analysis 6 2006 Green Fee & Cart Fee Rates 7 Competitive Market Analysis 8 Rounds of Golf History 9 Course Staff 10 Photo Album 11-15 2 2005 Performance Recap Performance Summary • Green Fee Revenue affected by record amounts of rainfall in the l st quarter • Driving Range Revenue has exceeded 2004 by 5% to date. • The Golf Practice Experience has greatly improved due to improved ball quality, revamped lighting, and new range mats. • Cart revenue is up by 8% --twenty-two new carts has added to the guests' experience. • Food and Beverage revenue is down mainly to 1st quarter rainfall -the close proximity of numerous fast food and quick service restaurants has added to the competitive market. • Golf Course conditions are better than average; fire damage in a maintenance storage building (end of 2004) and rain damage (early 2005) have both been repaired 1. Fire debris was removed; fill dirt and fresh sod replaced Reference photographs p. 11 2. Rain and silt damage on Fairway # 2 repaired with sod Reference photographs p.12 3. Ongoing Driving Range carpet repairs to improve drainage 4. Safety rail added to protective fence between Green # 8 and Tee # 9 Reference photograph p. 13 5. Purchased new turf maintenance equipment • Remodeling clubhouse interior with: 1)New furniture, 2) Big screen television, 3) New carpeting, and 4) fresh paint Reference photographs p. 14 • Replaced faded and aging sign with new sign Reference photographs p. 15 • Currently trending at --66,000 rounds of golf played; number is flat to prior year performance 2006 Opportunities • We continue to seek tournament business by providing an alternative to full scale large golf events. Our selling point is based on our relaxed atmosphere of golf that all levels of skill can enjoy, and not spend all day doing it. Current and past events have been; Sweetwater Kiwanis, San Diego Junior Golf Association, and the USS Ronald Reagan (CVN 76). • Continue to welcome ongoing league play and the creation of new golf leagues through out the year. • Dining Room Food Sales - Renovating clubhouse interior with new carpet and paint. The addition of a big screen television and newer tables and chairs to attract and retain guests. • Maintain strong Green Fee/Cart Fee revenues through increasing the number of rounds and rate. See proposed rate increases on page 7. Last time rates were increased was February 2002. • Better COS controls in Food & Beverage and Merchandise. • Strive to continue to reach out to the local community with ongoing junior programs to teach children the fundamentals of playing golf, and special discounted rates for Seniors. We currently work with Sweetwater High School as their home course for matches and practice. Southwestern College also uses the facility for their golf class. • Continue to improve course conditions with additional new equipment and a meticulous agronomic plan for healthy turf. Summary The beginning of 2005 brought record amounts of rainfall in the San Diego area. Being a business that is based upon the weather, the 1st quarter of operations was a struggle, especially compared to the prior year which had spectacular weather. As the weather conditions improved, the golfers came back to enjoy better golfing conditions. The addition of new equipment has helped improve our turf conditions. Continued capital improvement of the property helps freshen curb appeal and improve playing conditions of the golf course. A consistent staff of professionals, are dedicated to serving the City of National City's golfing needs. In 2006, we are conservatively projecting that revenue and rounds remain fairly flat due to decreasing golf participation nationwide, We will seek the highest levels of productivity and efficiency, providing a product and service that meets the needs of the people of National City, and other surrounding communities, We are dedicated to provide an outstanding golf value, a quick round of golf, and quality service to all of our guests, As always, we look forward to our continued relationship with the City of National City, 5 S.W.O.T. Analysis Strengths • Central Location - Easy access and freeway close. • Consistent customer base and established reputation in the community • Fast pace of play; usually under 2 hours for 9 holes • Great value for our guests • Lighted Driving Range Weaknesses • Not a championship full length 18 hole golf course • No grass tee line for the driving range • Limited amount of carts. • Using well water that is high in salinity, is a challenge for growing healthy turf. Opportunities • Continued growth of our niche (9-hole golf course with a fast pace of play) • Tournament sales - better resource, and alternative to full scale events. • Increase sales in Merchandise through proper planning and execution of our merchandising plan. Continue to grow our driving range business with high quality range balls, and mats. • Maintain and increase Green Fee/Cart Fee revenues through quality revenue management strategies and training. • Better course conditions Threats • Continued course improvements at competing golf courses • Economy and downward trend of participation in golf • Higher end publics causing downward pressure through aggressive discounts. • The continued increase in the price of gasoline erodes consumer discretionary spending for recreational activities. • Poor weather such as rainy days in the winter, and high heat and humidity in the summer. 6 Green Fee & Cart Fee Rates Green Fees 2003 2004 2005 2006 (Proposed) * Weekday $10 $10 $10 $11 Weekend $14 $14 $14 $15 Twilight - WD $8 $8 $8 $9 Twilight - WE $9 $9 $9 $10 Senior $8 $8 $8 $9 Senior - Resident $7 $7 $7 $8 Senior - WE $10 $10 $10 $11 SuperTwi - WD $5 $5 $5 $6 SuperTwi - WE $5 $5 $5 $6 Junior $7 $7 $7 $7 Cart Fees Regular $7 $7 $7 $8 * Last rate increase was February 2002, and the cost of operations has increased significantly over the last couple of years, and will continue to increase in order to provide continued quality of service. 2005 MARKETING • PUBLIC COURSE CMA blslance from Your Course NOyaIlIV, leHn0 (Typo off nurse IlCol roe $blue (B 00, " llf (U¢',er IP) pale oI Opening andie Woakday Ndn-Resident, . ie acleWeeKday=,Realdohl + ; .'-. c&o , y, 16 Nole 18o6kend =t✓off-Fje8ldor8 r • (rent Month Groed Feee pS Hole -weekend R9eldol ,f(Calt Nol Included),Senldr u. 4..90pioi (alter 2 or 3'rb mbsi co Wee WWIIgtll Weekday „': ' gYTWIIIgM W eakafd t M00 0 1. 00e I15110te iifwoakdey : :, l0 hole weekend r (Pyl)Cgn)y a 0.ilrgefed"Annuai gainds lVafdage (eackTeesl.:•1;r;4.:,. pl'be Cpndlllon haling IGr4ao:Cohdhmn liatl0q �,alrway(_Oondlll(sn,Rapnd,' lOvorei Gduice,Rating:.-Z;. /Number Of Stations 1'l`. (di Grans.'(M) Mats or j01 tiom ; ; [NIOht Llgbtin9 iOuallly Neling' v aay �Prp.$hop Rating , 1 Shack Bar/Restaurant Raping ISanduel%dunng,6ecitglos' lell6g 0Verali,F&B Reting 'P ; verel(C(ubhcuse Haling 'r '�"Cuotomer" service Rating,,;, Pi specIaIslpllere f 0))* .0 167, i$peglal [atea via Newspaper Ema11;'olc' f$poc1a11 atu(ea awards'or Onlque tgg�h4radelIsllca Ihal Bet each pop dy epe}l tider'e.d>j�IBller 4tiori�NV'Jeypgnjed g/ bbMlon 6'dd )fray; Dr eo lr,+r wypp Kx¶},at .a'�51abw�l fpp4xY l,Y '0 rileert on ony o)her lntormatlon'WoO40ting. :10ilye ldcompetllryo'btrenglhsbr'Weal/Cocas r ( o(8lo0plc en lac. d " , Y 25.04 1$0 1da4 ''0050 20.50 '$,,. 'Y27.00 24'00 "$ 1240 12.00 0.du "7. Fa1C i �Very G18d_ 10 Holo bogleg and a separate executive 0 hainggyOsa Oanliolry Iacatgd.t a0r dchN010Wi Groat Vlewe, tie Viaw1 s: E r ia'afOtie 13 ;Ooad,l, 0,00 7,0D 7.00 .0O Tgpolo{d'a 24.00 z4:0t$ Undulmixf.1 )✓old helyl>,! c rennovat#d bapqust.}; +, lobllity aryd (ial, and fs`sfuii bay E e EkIetln ' 17.00 20.00 $ 5500b 2;7)g.•F 2`:Fo:I - 2::Fair 153' 30 4.06.00 15p0 22.0b 24.00 24.00 4 V0i:090'„ 4, Vary flood' 4:- Very Gobd' :. Fair -h, Gobd.,..',. : 'g'.'File t i- 71Ggod elect one 4 1!aryGood ti—,,b d' ` - '.'a vary q 600,one .:'4 Very 0ood'?- leel bde' -2 Palr 4 Very Gopd''. 7 select qnu:' ' Fair ' ..::-'4..VeryGood . Selectone .,.. Seleol one SeleCCM r'6eled) 4n9� fir; 'Seleol 'OR golf (s.en opUofl Mgelly )or-Yod.begldning 061fer `Genlrellyloceted, rift, Paolllo Beech ,Pon' golf oogrse off the be,alen pal(I,.yet epelly A.00 lble 6Gleat patio, Ore 0,4 01110 down end, . /(oleic alt4rword. "�:;x select orier4,,Io sele0 ono Seleafpne^ : Salop[bnatj'�'l� Soled one 'v: ,. 6alcel dne: �. Seleol one Se 4c(one Se col one 9elotl dne=' - 11/23/2005 PAGE 10E1 1][1u1a1,,,; Military Tournament Senior Junior Super TW 9-hole 9-hole resident American Golf Club Comp 0 98 0 0 0 73105 1810 1176 3057 0 433 0 0 0 71783 1840 1402 4544 2222 423 0 0 0 63802 1250 1774 5170 1845 1042 60 410 341 55710 3433 1722 3791 2707 702 242 216 852 52741 4068 1063 3953 TOTAL 79246 80003 74641 68354 66545 Course Staff • Craig Hill, General Manager, has been at National City for the last year. Craig is a native of Los Angeles, and attended California State Polytechnic University, Pomona where he earned his Bachelor of Science in Communication. Has been with AGC for 5 years, Most recent assignments has been at The Vineyard at Escondido as Operations Manager, and General Manager of Jess Ranch Golf Course in Apple Valley, CA. When not playing golf, Craig enjoys outrigger canoe racing as a member of Hanohano Outrigger Canoe Club of Mission Bay. • Cameron Stephens joins the San Diego Region as Regional Vice President for American Golf. Mr. Stephens was the Regional Vice President for Arizona, Colorado, and Hawaii golf properties of American Golf before moving to San Diego. • Patrick Gonzalez PGA, is a class -A member in good standing with the Professional Golfers Association of America (PGA). Not only is Patrick our Head Golf Professional, he is also Golf Shop Manager. Patrick originates from Austin, Texas where he attended the University of Texas earning his degree in Computer Science. Prior to attending the University of Texas, Patrick was a naval aviator on the carrier USS Nimitz, and is also a licensed commercial pilot. Patrick joined American Golf in 1989 working at Chula Vista Golf Course, and then moved over to National City Golf Course. • Ismael "Mayo" Velasco, course superintendent, has been maintaining golf courses since 1988, Mayo started with American Golf at Chula Vista Golf Course as an equipment operator, and has risen through the ranks to become a course superintendent. Before arriving at National City, Mayo was the Assistant Superintendent at Riverwalk Golf Club, in Mission Valley. It was at Riverwalk under the watchful eye of the Superintendent, where Mayo sharpened his skills and gained an eye for details, Originally from Tijuana, Mexico, Mayo now lives in nearby Chula Vista with his wife and 4 children. When not minding the greens, you can catch Mayo playing soccer in an adult league in Tijuana, Mexico, or restoring his 1968 Chevy Impala. • Leticia "Lefty" Torres remembers when the permanent clubhouse was built. Work on the clubhouse was completed in September 1985, and by December, Lefty was working here. Lef-y has worked at the National City Golf Course continuously since then as Snack Bar Supervisor. Originally from Tijuana, Mexico, Lefty first came to California to live with her sister in Van Nuys, California. She soon moved to San Diego, and eventually National City where she has lived for the last 25 years. When not at work, Lefty enjoys spending time with her family, especially her 2 grandchildren. 10 Photo Album Maintenance storage building after fire on 12/23/04 Completed clean-up of debris, and turf replacement 11 #2 fairway after heavy rainfall in early 2005, as seen from #8 fairway #2 fairway after silt removal and 8000 square feet of turf replacement with Bermuda sod 12 Rail added between fence poles for added safety of golf carts on cart path between #8 green and #9 tee 13 Clubhouse snack bar interior before new furniture, big screen television, and new carpet Updated snack bar. New menu board and paint are to be completed by the end of November. 14 Old and faded sign facing Sweetwater Rd. New sign installed July 2005 15 Community Services Department Memo To: Lin Wurbs, Assistant City Manager From: Leslie Deese, Date: December 1, 2005 Re: 2005 Executive Summary - National City Golf Course Craig Hill, General Manager of the National City Golf Course requested that the Mayor and City Council receive a copy of the attached 2005 Executive Summary. Thank you. Attachment cc: City Manager AMENDMENT TO AGREEMENT This Amendment to Agreement is made and entered this 1st day of August, 2006, by and between the City of National City, a municipal corporation, hereinafter referred to as "LANDLORD," and American Golf Corporation, hereinafter referred to as "TENANT." RECITALS This Amendment to Agreement is made with reference to the following recitals: A. On May 3, 1984, LANDLORD and TENANT entered into a "Lease and Operating Agreement for the Las Palmas Municipal Golf Course," and said Agreement was subsequently amended on various dates, with the last amendment occurring on February 12, 2002. B. LANDLORD and TENANT desire to amend Paragraph 10.2.A of said Agreement pertaining to fees. NOW, THEREFORE, the parties hereto mutually agree as follows: 1. Paragraph 10.2.A of the "Lease and Operating Agreement of Las Palmas Municipal Golf Course" is hereby amended, effective August 1, 2006, to read as follows: "10.2. All fees charged to patrons at the demised Premises will be comparable to those fees charged by comparable competing Southern California public golf courses for similar goods and services and facilities. follows: A. TENANT and LANDLORD agree that green fees and cart fees will be as GREEN FEES — Weekday 9-HOLE 9-hole Non -Resident $12.00 9-hole Resident $10.00 Seniors Non -Resident $10.00 Seniors Resident $7.00 Juniors $7.00 Twilight $9.00 Adults — Replay Seniors — Replay Juniors — Replay Twilight — Replay $8.00 $6.00 $6.00 $6.00 GREEN FEES — Weekend 9-HOLE 9-hole Non -Resident 9-hole Resident Seniors Non -Resident Seniors Resident Juniors Twilight $15.00 $13.00 $11.00 $8.00 $8.00 $11.00 Adults — Replay Seniors — Replay Juniors — Replay Twilight — Replay CART FEES — Weekend and Weekday Rates Per Person Pull Cart Cart Replay — Per Person RANGE Range prices per ball: $8.00 $6.00 $6.00 $6.00 $8.00 $4.00 $4.00 $0.08 For purposes of this section, 'seniors' shall mean all persons 60 years old or older and juniors' shall mean all persons 16 years old or younger." 2. Except as otherwise provided herein, all of the terms and conditions of the "Lease and Operating Agreement for Las Palmas Municipal Golf Course" dated May 3, 1984, and as subsequently amended, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on the date first above stated. APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor AMERICAN/GOL • - -ORATION By: By: Senior V ce President/General Counsel As istant Se City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 August 28, 2006 Mr. Cameron Stephens Regional Vice President American Golf Corporation 7380 Golfcrest Place San Diego, Ca 92119 Project: City of National City — Las Palmas Municipal Golf Course Agreement Amendment. Dear Mr. Stephens: On August 1, 2006 the City Council of the City of National City passed and adopted Resolution No. 2006 - 163, amending the agreement between the American Golf Corporation and the City of National City pertaining to fees at the Las Palmas Municipal Golf Course. We are pleased to enclose a fully executed original contract and a certified copy of the Resolution for your records. Should you have any questions, please contact Ms. Leslie Deese, Community Services Director at (619) 336-4290. Sincerely, Michael R. Dalla City Clerk MRD Enclosure cc: Leslie Deese File C86-17 ® Recycled Paper