Item 16 - Agreement for River View Golf Course Managment Services

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Riverview Golf Course Management Services March 3, 2026 Page 6 affordable, well -maintained, and community -centered public asset for Santa Ana residents and surrounding communities. Staff recommends awarding an agreement with CourseCo, Inc. (Exhibit 1) based on the firm's extensive experience managing municipal golf courses, proven ability to transition publicly owned facilities into structured management models, and demonstrated capacity to improve operational performance while expanding community programming. CourseCo's proposal provides a competitive fee structure, a defined capital planning framework, and operational continuity through retention of existing staff where feasible. Staff believes this agreement best positions the City to enhance oversight, strengthen long-term fiscal sustainability, and preserve River View Golf Course as a high -quality public recreational asset. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The golf course is expected to be self-sufficient with no fiscal impact to the General Fund. The $395,000 request from the General Fund is solely to provide initial cash flow, structured as a short-term payable [no. 01101001-12128 (Due from Other Funds) to no. 11201001-20200 (Due to Other Funds)] to be repaid in FY 2026-2027. The fees for management services and other operational costs are to be paid from revenue received from the golf course and any excess revenue is to be deposited into the Golf Course Enterprise Fund to fund future capital improvements. Previously, the City realized approximately $175,000 of annual revenue in fiscal year 2024-2025 from leasing its land to the golf course operator. In the short-term, staff recommends reinvesting net proceeds back into golf course improvements. However, in the long-term, staff expects to have recurring net revenue available for the General Fund. The CourseCo incentive fee is to be re -negotiated prior to the execution of the first renewal period. Financial statements will be audited annually by a certified public accounting firm, and the City will have the right to review golf course financial records at any time. The following tables provide financial data that provides a narrative of operating revenues and expenses. Summary of management, incentive, and accounting fees for the initial five-year term will be as follows: Fiscal Year Management Services Incentive Fee (Maximum) Accounting Services Total 25/26 $15,834 $0 $3,500 $19,334 26/27 $95,475 $47,500 $21,105 $164,080