Birch Hills Golf Course
In March of 2011, City Council approved a lease agreement with Imperial Golf to operate and maintain the 18-hole Birch Hills Golf Course. Per the agreement, the lease would become effective when the course was transferred to the City of Brea, which occurred in October of 2019. Shortly after the golf course transferred to the City, Imperial cited concerns regarding specific terms in their lease and requested for some concessions from the City. After discussion, Imperial and the City decided to mutually terminate their lease and the City would seek a new operator. Imperial’s last day on their lease was July 5, 2020.
Given the short turnaround time to take over the golf course operations and look for a permanent operator, City Council approved an interim operation and maintenance contract with WGP for the golf course on June 20, 2020. The term for the interim contract was July 1, 2020 through December 31, 2020 while a permanent operator was selected for a longer term. Since the procurement process for a new operator is taking longer than expected, there is a need to extend the term of the existing interim agreement past December 31, 2020 on a month-to-month term until the City terminates the contract.
Therefore, staff proposes to extend the term for a maximum of three additional months, terminating on or before March 31, 2021. Western Golf has agreed to honor their previous monthly fee of $137,530 for the extended period. Funds were budgeted in Fund 465 for the ongoing operation and maintenance during the budget process.
Brea Creek Golf Course
In 2007, City Council approved a lease agreement with Imperial Golf to operate and maintain the 9-hole Brea Creek Golf Course. Per allowable provisions in the lease agreement, Imperial Golf decided to opt-out of the agreement and concluded their operation and maintenance responsibilities as of August 31, 2019. On August 20, 2019, the City Council approved an interim agreement with WGP to operate and maintain the course from September 1, 2019 through June 30, 2020 with the intent of going to a month-to-month term should their services be needed beyond June 30, 2020. Since Brea Creek Golf Course was later added to the Birch Hills Request-for-Proposal (RFP), City Council approved an addendum on July 21, 2020 that ratified to formally move to a month-to-month arrangement and extended the term an additional six month to December 31, 2020 or until the City terminates the contract. As previously stated, since the procurement for a permanent operator for both courses is taking additional time, there is a need to extend the term of the existing interim agreement past December 31, 2020 on a month-to-month term until the City terminates the contract.
Therefore, staff proposes to extend the term for a maximum of three additional months, terminating on or before March 31, 2021. Western Golf has agreed to honor their previous monthly fee of $51,350 for the extended period. Funds were budgeted in Fund 465 for the ongoing operation and maintenance during the budget process. |