Golf Course Fees. CITY hereby reserves the right to establish the schedule for green, driving range, golf cart rental, lesson and resident card fees for the Premises which shall be in compliance with the CITY’s adopted fees and charges schedule. Further, CITY hereby reserves the right to establish the golf cart rental fees and other equipment rental fees that may be charged by OPERATOR. No changes in green fees, driving range fees, lesson fees, golf cart rental fees, or golf equipment rental fees may be made by OPERATOR without the advance written consent of CITY in CITY’s sole and absolute discretion. From time to time, OPERATOR may discount fees as a promotion to build business, provided that OPERATOR shall use its best efforts to obtain the Director’s prior verbal or written approval, which approval shall not unreasonably be withheld. If OPERATOR uses such best efforts but does not receive a response from the Director within twenty-four (24) hours, OPERATOR may proceed to offer the discount without the Director’s approval. The OPERATOR and the Director may also agree upon general parameters within which discounts may be offered without Director approval. All fees must fall within the ranges specified in the City’s adopted fees and charges schedule, with the exact fees to be approved in advance in writing by the Director. If OPERATOR desires changes to the green fees, driving range fees and/or golf cart rental fees, OPERATOR shall submit with the Annual Plan, or at such other times as may be needed, a written request and analysis of fees charged by comparable public golf courses in the greater San Francisco Bay Area, as well as the change in the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Xxxx metropolitan area for the applicable period. OPERATOR shall post notices of the proposed fee increase at prominent locations in the Clubhouse a minimum of 30 days prior to the effective date of the proposed fee increase.
Golf Course Fees i. Lessee shall pay to Lessor ten percent (10%) of the gross receipts derived from all fees earned from, net of collection fees: (i) daily play on the Golf Course, and (ii) dues and other sums collected from persons for the privilege of playing on the Golf Course (collectively, “Golf Course Fees”). Golf Course Fees shall also include fees and charges collected from groups holding golf outings on the Golf Course, but only the portion attributable to, and actually received for, use of the Golf Course and shall not include portions of such fees or charges attributable to other services including, but not limited to, rentals or other services offered by the pro shop staff or food service charges. Except as set forth in Section 15.1(b) below, Golf Course Fees shall include revenue earned from the use of golf carts and the driving range, and any bond, initiation, membership deposit and other membership fees for becoming a member of the Golf Course, net of collection fees, refunds, and membership sales consultants’ compensation and commissions, but shall not include any revenue earned from the use of golf carts or the sale of equity or an ownership interest in Lessee’s organization.
i. ii. Lessee covenants and agrees that fees charged for the use of golf carts and fees and charges collected from groups holding golf outings on the Golf Course, and the amount of any bond initiation fee and membership deposits shall be established to maximize revenue to both Parties, and that such fees and charges for these items and all other operations at the recreational complex will not be established for the purpose of, or have the effect of, diverting Golf Course Fees from areas from which Lessor derives revenue.
