Agenda Packet_2026-03-03 - Laserfiche WebLink

Home Browse Search

Riverview Golf Course Management Services March 3, 2026 Page 5 surrounding community, which is in the best interests of the City and public. Moreover, CourseCo's recent management agreement with the City of Fullerton was competitively bid and the agreement proposed here is substantially similar to Fullerton's, as is Fullerton's competitive bidding process substantially equivalent to that of the City's. Lastly, CourseCo's agreement is one for services, which is also exempted from the competitive bidding process (SAMC § 2-807). This management agreement provides the City with an opportunity to increase oversight of River View Golf Course, strengthen fiscal accountability, expand community-focused programming, and implement a sustainable reinvestment strategy that supports long-term stewardship of this valued public recreational asset. Contract Summary The proposed Management Agreement with Santa Ana Golf, LLC (CourseCo's wholly owned subsidiary) establishes a five-year professional management structure for River View Golf Course, with two additional five-year renewal options at the City's discretion. CourseCo will provide full turnkey municipal golf operations including golf services, food and beverage, maintenance oversight, marketing, staffing, and capital planning while the City retains ownership, policy authority, and annual budget approval. Under the agreement, CourseCo will receive a fixed Management Fee of $95,000 annually, paid in equal monthly installments, increasing by 3% annually. In addition, the City will pay a separate Accounting Fee of $21,000 annually for financial reporting and administrative services, also increasing by 3% annually beginning in year two. A performance-based Incentive Management Fee is only triggered if Gross Revenues exceed $4.0 million in a fiscal year and is capped at 50% of the annual Management Fee. For comparison, first- year projected revenue is approximately $3.7 million. The agreement also includes structured capital planning, annual City-approved budgets, and full indemnification and insurance protections, transferring operational risk while preserving municipal oversight. CourseCo will process all revenue and expenditure transactions through a city approved bank account that is managed by CourseCo. Each month, CourseCo will issue a check to the City for any net revenue, which will be deposited in the City's Golf Course Enterprise Fund. Additionally, CourseCo will provide financial information of revenue and expenditures that will be entered into the City's financial system. The City Attorney's Office worked collaboratively with staff to develop and finalize the Management Agreement to ensure compliance with municipal contracting standards, risk allocation requirements, and California law. Overall, this approach strengthens financial sustainability, addresses deferred maintenance, and enhances the guest experience, while expanding community programming, youth access, and event opportunities ensuring River View remains an City Council 16 — 5 3/3/2026