Item 16 - Agreement for River View Golf Course Managment Services

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Fee Schedule/Cost Proposal CourseCo is proposing a management agreement with a flat annual management fee plus yearly incentive. We believe that the relationship between a management company and a City is not simply a contractual agreement, but rather a partnership. The two sides must work collaboratively on establishing goals and working towards them. Understanding the City's desire to provide an exceptional golf experience, while producing the best possible financial results, we have designed a fee structure that will help achieve this goal. Our base fee proposal is based on the assumption of CourseCo being awarded full management of all areas of operation. Term As requested, our proposal is an initial five (5) year agreement, with two (2) optional five-year extensions. Base Fee (Full Operations) Year One ............................ Subsequent Years ............... .................. $95,000 .................. Increase by CPI Incentive Fee As part of our management fee proposal, we are proposing an incentive fee. In the spirit of the true partnership, we believe the agreement between a management company and a City should include an incentive fee that is based on the ability of the management company to improve the financial performance of the property. We propose that CourseCo receives: • 10% of revenues in excess of $3.9 million *Total incentive fee not to exceed 50% of base fee We believe it is important for the incentive fee to work equally well for client and management company and are open to negotiating this to ensure the needs of the client are met. The incentive fee is calculated and paid annually and would be limited such that the Incentive Fee could not exceed the percentage of the Total Fee (Base fee and Incentive Fee combined) allowable under IRS Revenue procedure 97-13. Fees for Off -Site Services Travel and Support All corporate travel and support is included in the base fee; there are no additional travel or support expenses. CourseCo will not charge the golf course for any costs associated with travel to the property by CourseCo's executive team or support from other CourseCo personnel. HR/Payroll Administration All Human Resource and Payroll administration is included in the base management fee. This includes oversite and coordination with our third -party payroll provider (ADP). The direct ADP fees including payroll taxes and workers compensation insurance are not included in the base management fee but are a direct cost to the property. COURSECO PageA-1 I