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