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2011-01-25 Joint CC ARRA CIC Packetr .L'wlf C 17, Cn 4'.7 41 GI Gy SPECIAL JOINT MEETING OF THE CITY COUNCIL ALAMEDA REUSE AND REDEVELOPMENT AUTHOITY (ARRA), AND COMMUNITY IMPROVEMENT COMMISSION (CIC) TUESDAY JANUARY 25, 2911 8:99 P.M. CITY OF ALAMEDA •CALIFORNIA Location: City Council Chambers Conference Room, City Hall, corner of Santa Clara Avenue and Oak Street A ends: 1. Roll Call —City Council, ARRA, CIC 2. Public Comment on Agenda Items Only Anyone wishing to address the Council /Board /Commission on agenda items only, may speak for a maximum of 3 minutes per item 3. Adjournment to Closed Session to consider: City Council 3 -A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov. Code Section 54956.9(b) Number of cases Two City Council 3 -B. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (54956.9) Name of case: United States v. City of Alameda et al City Council, ARRA, CIC 3 -C. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (54953.9) Name of case: SCC Alameda v. City of Alameda et al, U.S. District Court 4 City Council 3 -D. LIABILITY CLAIMS (54956.95) WORKERS' COMPENSATION CLAIM Claimant: John Cayanne Agency Claimed Against: City of Alameda 4. Announcement of Action Taken in Closed Session, if any 5. Adjournment City Council, ARRA, CIC Marie L. Gilmore, Mayor Chair, ARRA and CIC r .L'wlf C Ry CITY OF ALAMEDA CALIFORNIA Gay SPECIAL MEETING OF THE CITY COUNCIL TUESDAY JANUARY 25, 2011 7:00 P.M. Location City council Chambers, City Hall, corner of Santa Clara Ave and Oak street Public Participation Anyone wishing to address the council on agenda items or business introduced by Council members Members may speak for a maximum of 3 minutes per agenda item when the subject is before the Council PLEDGE OF ALLEGIANCE 1 ROLL CALL City Council 2. AGENDA ITEM 2 -A. Recommendation to Receive a Presentation by Kemper Sports Management on the Chuck Corica Golf Complex and Provide Direction to the Acting City Manager to Continue Negotiations, Develop Deal Points for the Preferred Option, and Return to the City Council with along -Team Lease Agreement. (Golf) 3. ADJOURNMENT City Council Marie L. Gilmore, Mayor Materials related to an item on the agenda are available for public inspection in the City Clerk's Office, City Hall, Room 330, during normal business hours sign language interpreters will be available on request. Please contact the City clerk at 747 -4800 or TDD number 522 -7538 at least 72 hours prior to the Meeting to request an interpreter Equipment for the hearing impaired is available for public use. For assistance, please contact the city clerk at 747 -4800 or TDD number 522 -7538 either prior to, or at, the council Meeting Accessible seating for persons with disabilities, including those using wheelchairs, is available Minutes of the meeting available in enlarged print Audio Tapes of the meeting are available upon request Please contact the City Clerk at 747 -4800 or TDD number 522 -7538 at least 48 hours prior to the meeting to request agenda materials in an alternative format, or any other reasonable accommodation that may be necessary to participate in and enjoy the benefits of the meeting CITY 1 oP AL.AMEDA Memorandum To: Honorable Mayor and Members of the city Council From: Lisa Goldman Acting City Manager Date: January 25, 2011 Re: Receive a Presentation by Kemper Sports Management on the Chuck Coripa oo.lf Complex and Provide Direction to .the Acting City Manager to Continue Negotiations, Develop Deal Points for the Preferred Option, and Return to the Council with a Long-Team Lease Agreement BACKGROUND Honorable Mayor and January 25, 2011 Members of the City Council Page 2 of 3 firms in the industry submitted proposals, Kemper Sports Management and Bellows Golf Management/Landscape Golf Group. Following an. extensive. review of both of the. proposals, Kemper Sports �1lanagernent eras. once again selected as the top. firm based on. its national experience. and solid reputation in the field as well as its commitment to providing capital funding for much- needed improvements to the. Golf Complex. (The National Golf Foundation report identified $10 million of necessary improvements to the Golf Complex. The City Council approved the. selection of Kemper.Sports I .anagement on Larch 1 2010, and directed staff to begin negotiations .for .a .long -term agreement. DISCUSSION Between March 2010 and December 2010 the then lnteri City Manager and the Director of Recreation and Parks. w o rked with Kernper Sports Management to develop a number of scenarios for. the future long term operation of. the Chuck corida Golf Complex. U nder the no- change. scenario Ke mper ill continue to run the 45 -hole. Golf Complex via a management agreement, subject to annual cost increases, .but will provide. no. infusion of capital into.. the. Golf Com plex to impro the. d.rai.nage, greens and.other infrastructure .as recommend d .by: the.. National 'Golf Foundation. Staff does not consider this a viable option given that the Golf Com to lose revenue each year due to declines. in rounds played. While the loss .has been slowed by Kemper actions to improve..custorner service and maintenance, the :Golf Enterprise. Fund. balance was. $6.1 2,199. as of Decerr ber 3.1 .20.10. should revenues continue to decline at the sane rate, or. should the Golf Complex ex hce some catastrophic maintenance. failure. the.: Golf Enterprise Fund could .:easily become ex austed. Moreov the City. Council has indicated. repeated that the long -term financial sustainability of the.Golf Corr plea is .of.paramount importance. Under additional scenarios. developed by. Kemper: ire consultation :with City .staff, Kemper will operate either .27 holes total .(1 on the North Course: and nine on the South Course), or the ful.l .36 holes on .the north and. South.: Cou rses. Kemper..staff .has completed their analysis of these. two scenarios. and will make their presentation .to the City ouncil on Janu 25 th re their: lans for the two ion courses. 0 0 p g er both of the :scenarios Kemper. will present, the remaining nine holes of the �ilif Albright par 3 course gill be operated by a non -profit: organization rather than by Kemper. The Council discussed:. thy'. non profit operation of a par 3 course at the March 6 1 2010, meeting and again on December 7, 2010, in response to a referral from then- Mice Ivlayor deHaan. At the. December 7 meeting, the. City Council approved a motion to .direct staff to finalise negotiations for the lease of the Mif. Albright Cou rse. with the principals of the Alarneda Junior Golf Association (AJGA� and to reserve $100,060 from the Golf Enterprise Fund as a match fora grant from the Wadsworth Foundation to the AJGA for the I1if Albri ht 0 course. The Wadsworth Foundation is offering not only $250,000 in cash for the Honorable Mayor and January 25, 2011 Members of the City Council Page 3 of 3 course but also in -kind support for capital improvements to the course. In return, they are seeking an agreement from AJGA to operate the Mif Albright Course for 15 years. Subsequent to the December 7, 2010, City council meeting, the then- Interim City 'manager and the Director of Recreation and Parks attended a meeting of. the AJGA Board at which they were informed that the AJGA Board was working to form a new separate non profit organization, tentatively titled "Friends of the. Mf, to. negotiate with the city and receive the grant from the Wadsworth Foundation. (The Wadsworth Foundation will only give grants to non profit organizations; it will not give money to cities.) City staff recently asked representatives of the new non profit organization to provide a variety of documents, such as a roster of the Board of Directors, articles of incorporation, bylaws, an IRS Exemption letter, a course maintenance plan, an operating budget, a three -year pro forma, insurance information, etc. for. staff's review. Those documents are critical to determining hoer to successfully move forward with .the Mif Albright Course. FINANCIAL IMPACT The financial impact of each of the scenarios will be detailed during Kemper's presentation on January 25. As described above, the Golf Enterprise Fund had a balance of $612,199 as of December 31, 2010. While Kemper has managed to slog the rate of revenue loss, the current situation is not sustainable. Receive the presentation by Kemper Sports management on the Chuck Corica .Golf Complex and provide direction to the Acting City .Manager .to continue negotiations, develop deal points for the preferred option, and return to the City council vwith a long- term lease agreement. Approved as to funds and account, Fred Marsh Controller