2nd Lawsuit Threatened Over City’s Golf Contract

The golf management company that has run Ventura’s Olivas Park Golf Course for 15 years is going to war with the city over its threatened contract.

Avila Golf Management recently filed a lawsuit against the city after they failed to come to terms on a new contract.

The dispute escalated Monday night when the council voted 5 to 1 to let other management companies bid on a short-term city contract to manage the course while a golf master plan is being developed. An attorney for Avila warned the council that his client was seriously considering a second lawsuit against the city.

“Unless things change dramatically, we will probably be filing a breach-of-contract action,” Tom Buford, a former councilman who represents Avila Golf Management, said Tuesday. “The city has failed to fulfill its obligations under the agreement.”

Avila will also be seeking an injunction to prevent the city from seeking a replacement for Avila, whose lease with the city expires Sept. 30, Buford said.

Mayor Jack Tingstrom did not vote Monday because he is a consultant to Avila. Councilman Jim Monahan cast the dissenting vote, saying that Avila is doing a good job.

“I think we should reopen negotiations and go back to the table,” Monahan said, noting Avila’s 10-year association with the city.

But other council members said they want to explore the market.

“It’s very possible that we will come out with Avila,” Councilman Steve Bennett said, adding that he thinks Avila has done a good job managing the course. “But everybody will be better served if we go out and check the marketplace.”

After two months of negotiations failed to bring an agreement, Avila Golf Management filed a lawsuit against the city on June 30.

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The suit contends that the city violated the terms of its lease during negotiations by refusing to grant rent credit for $1.3 million in capital improvements to the golf course made over the last 10 years.

But Public Works Director Ron Calkins says the city has already paid for those improvements in the form of the relatively low rents Avila was allowed to pay.

“They paid a lower rental rate to reflect those improvements,” Calkins said. “We paid for those improvements, and now they want us to pay them again.”

Buford said the purpose of the suits, and the injunction Avila plans to pursue, is to keep the city from booting Avila off the golf course at the end of September.

“What Avila intends to do is seek protection from the court to keep the city from moving ahead” in opening management up to bidders, Buford said. “We view that as being in violation of our rights.”

Avila has managed Olivas Park Golf Course since 1982.

Avila operates all aspects of the 18-hole Olivas Park course, except food concessions, and provides carts and operates the pro shop at the city’s nearby Buenaventura Golf Course. Avila currently pays about 20% of the cart and greens fees it collects to the city. The company also pays 27% of its driving range fees.

The city contends that rental rates at courses comparable to Olivas Park are about 40% of greens fees.

City officials say Avila has rejected three rental offers from the city.

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In its final proposal, the city offered to let Avila walk away from the Buenaventura course and pay 37% of the fees it collects at Olivas Park Golf Course; or to pay 40% at Olivas and 30% of cart fees at Buenaventura.

Buford said Avila has not yet decided whether they will join the bidding process for temporary management of the golf course.

“If Avila were to bid, it would be done without waiving any of the rights Avila has under the agreement,” Buford said.

In the meantime, Calkins emphasized that turning management of the Olivas Park Golf Course over to another company temporarily will not mean an increase in greens fees for golfers beyond the annual increase for inflation.