July 9, 1998

 To:Chairman and Members of the Scarborough Community Council

 From:Bruce Fleury, Commissioner, Parks and Recreation, Scarborough Region

 Subject:Tam Heather Country Club - Extension of Agreement

  Purpose:

 To seek approval to extend the current interim agreement with the Tam Heather Country Club for the period June 29, 1998 to June 30, 1999.

 Funding Sources:

 Not applicable.

 Recommendations:

 It is recommended that:

(1)the current interim agreement with the Tam Heather Country Club be extended from

June 29, 1998 to June 30, 1999;

 (2)the facility continue to be operated at no additional operating cost to the City; and

 (3)the financial report for the 1997 - 98 season be reported to the Community Council in September.

 Council Reference/Background/History:

 The former City of Scarborough acquired the Tam Heather Country Club in 1994 and has been operating the facility in partnership with the Club since that date under the authority of an "interim" operating agreement which directs that the Club be responsible for the operating costs of the facility.

 The operating agreement has been renewed on a year-to-year basis and expired June 28, 1998.

 Comments and/or Discussion and/or Justification:

 The Club entered into the 1997-98 season with a previous year operating deficit of $13,893 which became a budget obligation for the new season.

 Preliminary year end results indicate that the Club succeeded to operate in the 1997-98 season with revenues of $830,031 and an operating surplus estimated at $8,214, before consideration of the prior year deficit. These amounts need to be reviewed and verified and full details will be reported to the Community Council in September.

 Conclusions:

 The Board of Directors of the Club are working very hard to satisfy the terms of the agreement and have presented a 98-99 budget which reflects appropriate actions to continue to operate the facility on a break-even basis, and staff is supportive of the Board's continued operation of the facility. Staff will continue to monitor the financial results and will review all long term implications for this partnership to succeed.

 Contact Name:

 Rick McMulkin

Director

Recreation Facilities and Community Services

Telephone: 396-7398

Facsimile: 396-5399

 Bruce F. Fleury

Commissioner

Parks and Recreation, Scarborough Region

 RMcM/kk