Guinta Enterprises will be paying a $500 a month capital facilities fee as part of a 10-year lease of the banquet and snack bar facilities at Manteca’s municipal golf course clubhouse.
The lease — approved last week by the Manteca City Council — also includes two additional 5-year extension options.
The longer agreement follows industry standards. It is designed to encourage Guinta Enterprises to invest in additional equipment to improve operations.
Manteca Recreation & Community Services Director Brandy Clark in a report to the council noted since Guinta Enterprises assumed the clubhouse operations, the snack bar and banquet facility has experienced notable improvements, renovations in the upstairs banquet area, a significant boost in facility rentals, updated and additional menu items, and has employed a professional team of staff members.
The snack bar is being rented for $2,389.19 a month with an annual 2.5 percent increase built into the contract. The previous terms were $2,330.92 a month with annual increases of 2 percent.
Banquet facilities now are being rented for $3,385.58 a month with a 2.5 percent annual increase. The previous terms were $3,303 with an annual increase of 2 percent.
The city has not been collecting a capital facilities fee.
The $500 a month charge will increase at an annual rate of 2.5 percent in 2025.
The lease payments will generate roughly $67,000 annually. The revenue goes to the golf course fund. It is used to cover overall operating costs the city incurs in maintaining and running the 18-hopls golf course.
Guinta Enterprises has been running the food service operations at the golf course since August 2002.
They followed two disastrous city contracts with back-to-back vendors who failed to pay bills that the city ended up being on the hook for such as PG&E. One of the operators took advances from the city to buy kitchen equipment but never purchased it.
Those problems disappeared when Guinta Enterprises leased the operations.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
