HUNTINGTON BEACH : Course Renovation Gives City Leverage

A major renovation of the city-owned Meadowlark Golf Course may give the city some control over the facility for the first time in 16 years.

Under an agreement the city signed in 1975 that turned over operation of the 50-year-old course to a private firm, the city collects a portion of Meadowlark’s revenues but has had no authority over physical conditions or the fees charged.

American Golf, the course operator, sets the fees charged at the Warner Avenue facility and is solely responsible for its maintenance.

But its contract with the city also requires the firm to obtain city approval for renovations or new development.

As a result of American Golf’s plans to overhaul its pro shop, a restaurant, banquet room and other facilities, city officials said they now have leverage to influence operations.

So far, the firm has agreed to share decision-making on conditions and fees, said Ron Hagan, the city’s community services director. “They want to make some improvements there. . . . Right now, they’re willing to put everything on the table,” he said.

Hagan, who joined the city staff in January, said it is unclear why city officials 16 years ago signed an agreement relinquishing all authority to the operator. He said he surmises that the city feared the financial risk of running a golf course.

“At the time, it probably sounded like a pretty good deal,” he said. “The city got a percentage (of the income), and there was no risk involved.”

Meanwhile, the golf industry has boomed, and the city is earning a lower percentage of the income than other cities typically receive from similar golf-course leases, Hagan said.

The city each year earns 12.5% of Meadowlark’s gross income from cart rentals and fees to use the course or driving range. It also collects 8% of the course’s gross revenue from its pro shop, restaurant and bar. Last year, these levies generated $305,600 in city income from the golf course, which earned $2.6 million in gross revenue.

The current unilateral operating agreement “does not serve the best interests of the public on a public golf course,” Hagan said.

In addition to monitoring fees and physical conditions, the city hopes to expand course hours. Currently, members of the Meadowlark Men’s Club are provided guaranteed reservation times. As a result, the course is not available for public use between 7 a.m. and 11 a.m. each day.

The City Council is expected to consider American Golf’s renovation proposal this summer, and an amended operating contract should be finalized during the fall, Hagan said.