pages: CityCouncil/2011-01-25.pdf, 6
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CityCouncil | 2011-01-25 | 6 | Councilmember Tam stated that she would like to better understand the rate of depletion of the fund balance; further stated the staff report recognizes that the fund balance would be depleted over time because of the decline in revenues. The Recreation and Park Director stated the amount would probably last 18 months as long as there are no serious maintenance issues. Councilmember Tam inquired whether the fund still continues to go down in spite of the rate at which the fund is depleted decreasing when Kemper started, to which the Recreation and Parks Director responded in the affirmative; stated the [depletion] amount was $700,000 when the City was operating the course and is $350,000 under Kemper; Kemper has cut the amount in half. Councilmember Johnson inquired whether spending $5 million on 36 holes would not allow Kemper to improve the course to the extent needed to increase the level of play to generate more revenue, to which Mr. Blake responded in the affirmative. Councilmember deHaan stated the estimate to upgrade the Mif was $500,000; inquired whether the amount is similar to Kemper's estimate, to which Mr. Blake responded that he would have to review the estimate; stated Kemper's budget is very specific about the what needs to be done. Vice Mayor Bonta inquired whether there are other 36-hole courses and whether having 36 or 27 holes is more common. City Consultant David Sams responded there are a few 36 hole courses in the East Bay area; stated the courses were probably built over 30 or 40 years ago; in the last 20 years, 2 notable courses that have been built, Cinnabar Hills and Poppy Ridge, have 27 holes; both could have constructed 36 holes and after extensive study, determined 27 holes would return a better profit; the trend now is to build 27 or 18 holes. In response to Mayor Gilmore's inquiry how the 27 hole golf courses are doing financially, Mr. Sams responded the courses are doing better than they would be doing with 36 holes. Vice Mayor Bonta inquired whether one option is for Kemper to continue to manage the current course under a management agreement without a long-term lease, to which Mr. Blake responded in the affirmative; stated the presentation was on Kemper's proposal to invest $5 million; if the City opts to keep 36 holes, Kemper would love to continue to manage the property; 36 holes on the investment side does not work for Kemper. Vice Mayor Bonta inquired whether there would be capital investment under the 36-hole scenario, to which Mr. Blake responded in the negative. In response to Vice Mayor Bonta's inquiry about what Kemper anticipates would happen under said scenario, Mr. Blake stated the course needs capital improvements to be Special Meeting Alameda City Council 4 January 25, 2011 | CityCouncil/2011-01-25.pdf |