City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Kevin Werner, City Administrator
Date: 10/08/2024
Subject: Jack Tone Golf Lease
RECOMMENDED ACTION
Approve and authorize the Mayor to sign the Lease Agreement between the City of Ripon and Sierra Golf Management, Inc for the Jack Tone Golf Course.
BACKGROUND
On January 1, 1996, the City of Ripon and George & Sharon Buzzini (“Lessee”) entered into an agreement to lease 72 acres of City of Ripon owned property to develop, operate, and maintain the Jack Tone Golf Course. Under the terms of the lease, the Lessee was responsible for developing and constructing the golf course using private funds, and to operate the golf course for a term of 29 years with George Buzzini, because of his unique experience, specifically named as the Golf Course Manager. The current lease expires on December 31, 2024.
The original lease specified that rent would be paid to the City based upon 8% of gross receipts, as defined in the lease, or a minimum of $2,000 per month. In 2008, the City Council approved a resolution that modified the rent structure because of various financial difficulties that were experienced by the Lessee, which led to deferred capital improvements of the golf course. This policy continues to collect 8% of all gross receipts as rent, but with the 2008 resolution, directs a portion of that rent to a Golf Course Capital Improvement Account in order to financially assist the Lessee in making upgrades to the golf course so that it would not fall into disrepair.
The Lessee could use the funds in this account to fund 50% of the cost for “Long-term Capital Improvements” of the golf course that are permanent in nature, such as new holes, replacement or improvement of greens, fairways, tee boxes, water features, or other capital improvement expenditures approved by the Golf Course Capital Improvement Committee. In addition to the Long-term Capital Improvements, the funds in the Capital Improvement Account could be used for 100% of the “Emergency Improvements and Repairs” to restore the golf course in the event of a flood, or other “Acts of God”.
Since this account was established in 2008, the Lessee has only utilized $28,420 for Long-term Capital Improvements and $190,572.73 for Emergency Improvements and Repairs, as summarized in the table below:
Table 1
Summary of Funds Expended from City of Ripon Capital Improvement Account Year Long-Term Capital Improvements a Emergency Improvements and Repair b Amount Description Amount Description
2014 $19,500 Well Pump and Motor Purchase
2016 $28,420 Irrigation System
2017 $165,000 Flood Repairs
2019 $6,072.73 Flood Repairs
Notes:
a. 50% of the expenses were paid through the City Golf Course Capital Improvement Account, the remaining portion by Lessee. b. 100% of the expenses were paid through the City Golf Course Capital Improvement Account.
The balance in the City of Ripon Capital Improvement Account as of July 1, 2024 is $607,831.
In late 2021, George Buzzini requested the City of Ripon assign the lease to Jack Tone Golf, LLC, a company whose ownership includes George Buzzini and his son, Vincent Buzzini. The City of Ripon did not complete this assignment because of an on-going legal challenge from Tim Norris, a family member of George Buzzini. At this time, George Buzzini is no longer operating as the Golf Course Manager as he has relocated to Southern California.
DISCUSSION
The City of Ripon released a Request for Proposals on May 30, 2024 and sealed responses were due by 2:00 pm on July 23, 2024. Three proposals were received, as described below:
Table 2
Proposals Received for Jack Tone Golf 2025 Lease
Proposer Company Address Years in
Business
#
Employees
Golf Course Manager
Jack Tone Golf, LLC 74133 El Paseo Suite #10
Palm Desert, CA 92260
3* 21 Vincent Buzzini
Sierra Golf
Management, Inc
PO Box 788
Chowchilla, CA 93610
31 437 Chad Jackson
CourseCo 5341 Old Redwood Hwy, Ste 202
Petaluma, CA 94954
35 24 TBD
*Jack Tone Golf, LLC is owned by Vincent Buzzini and George Buzzini, who was the original Jack Tone Golf lessee since 1996.
The scoring committee, which consisted of 4 members, reviewed the proposals received and visited golf courses currently being operated by Jack Tone Golf, LLC and Sierra Golf Management, Inc. Sierra Golf Management, Inc was identified as the most qualified proposer.
A summary of the scoring is attached as Attachment A.
It is recommended that the Jack Tone Golf Course 2025 lease be awarded to Sierra Golf Management, Inc, with the terms summarized below:
Term: 15 years beginning January 1, 2025 with two 5 year options. Rent: 9% of gross receipts.
Capital Improvement Account: A portion of the rent shall be transferred to a capital improvement account that allows the Operator to use the funds for Long-term Capital Improvements to fund 50% of the cost of improvements that are permanent in nature and Emergency Improvements and Repairs without a need to match the funds. Golf Course Manager: Position to be in active control of the daily operations of the course. Individual assigned to this role to be approved by the City. Standards to Operate and Maintain Golf Course: A list of golf courses that represent the standards to operate and maintain Jack Tone Golf Course are listed, which includes Micke Grove Golf Course, The Reserve at Spanos Park Golf Course, La Contenta Golf Club, Manteca Municipal Golf Course, and River Oaks Golf Course.
FISCAL IMPACT
Over the last three fiscal years, the Jack Tone Golf Course rent resulted in an average of $58,215 and $68,000 deposited each year to the City’s General Fund and the Golf Course Capital Improvement Account, respectively.
The 2025 Jack Tone Golf Course lease represents minimal fiscal impact to the City as compared to the current lease. As previously mentioned, the current Lessee rent is 8% of gross revenue, which is split by formula between the Golf Course Capital Improvement Account and the City’s General Fund. The proposed 2025 lease increases the rent to 9% of gross revenue, which is split by formula similar to current lease. The proposed 2025 lease is projected to increase the amount received by $15,500 per year.
Attachments:
1. Attachment A - Scoring Summary
2. 2025 Jack Tone Golf Lease Agreement
3. 2025 Lease Agreement Exhibits