CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT

Transcription

1 Mission Statement We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow. CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 14 Meeting Date: May 28, 2013 Department: Public Works and Community Services Submitted By: John McArthur, Director of Public Works & Community Services Agenda Title: City Council review and consideration of the Draft Foxtail Golf Course Performance Measurement Report designed to develop a baseline performance measurement and to track the ongoing performance of golf course operations as required by Foxtail Golf Course Lease Agreement with Rohnert Park Golf, LLP. RECOMMENDED ACTION Staff seeks City Council direction on the proposed Draft Foxtail Golf Course Performance Measurement Report ("Draft Performance Measurement Report"). BACKGROUND The Foxtail Golf Course Lease Agreement with Rohnert Park Golf, L.L.P., for the operation and maintenance of the Foxtail Golf Course and facilities, has a provision in Section 1.3 for the development of performance measurements. The performance measurements and evaluation criteria serve the following two purposes: 1 1. Track the performance of golf course operations with Performance Measurements that reflect financial growth, customer satisfaction, improvements, maintenance, and other relevant measures and become the basis by which the City and the Tenant may elect to exercise the ten (10) year extension of the term per Article 2 of the Lease; and 2. Set an initial baseline or benchmark of the conditions and performance of the golf course. Once the Draft Performance Measurement Report is approved, the final version would be used to complete the baseline assessment and would also be used as a performance monitoring plan for the ongoing operation, maintenance, and improvements of the City's two 18-hole golf courses. A summary report would be submitted quarterly to the City Council following each performance review. These reports would present findings, summarize current and historical performance, detail regional golf industry trends, prescribe remedies for areas identified as needing special attention, and provide a mechanism to follow-up on previously outlined areas of concern. Process City staff began work on the development of the Draft Performance Measurement Report earlier this year. Due to the complexity of developing an objective platform to quantitatively and qualitatively measure golf course operations, a consultant was hired to provide technical assistance with this project. In February 2013, the City hired Pro Forma Advisors to assist with

2 ITEM NO. 14 this project. Please note that Rohnert Park Golf, Inc is reimbursing the City for all consulting costs related to this project. The estimated cost of the consulting services is $16,600. The Current Draft Performance Measurement Report has received multiple preliminary reviews prior to being presented to the City Council for direction. Previously, this Report was reviewed by the Golf Course Oversight Committee (on two different occasions), the Parks and Recreation Commission, and was tested by City staff to perform a trial or "dry-run" inspection of the two golf courses and facilities. Through this preliminary review process, comments and revisions were incorporated into this Draft Performance Measurement Report. Upon City Council direction, Staff anticipates the following remaining steps to finalize the Performance Measurement Report: 1. June 1 and June 7 - Conduct walkthrough inspection - performed by City staff and consultant. This will serve as the initial baseline assessment of the maintenance of courses and facilities. The assessment rating will be based on a comparison of standards defined in the lease agreement and actual field observations. Some areas may meet standards, while others may be found to be deficient and in need of improvement. Corrective action and remedies will be described later in this report. 2. June Golf Review Committee (described below) input on Performance Measurements. 3. June 18 - Present Baseline Report and Performance Measurement Plan to City Council for final approval and adoption. 4. October Conduct quarterly walkthrough of course and complete comprehensive Performance Measurement Report. 5. January Conduct 2 nd quarterly walkthrough and complete Performance Measurement Report. ANALYSIS The Lease Agreement calls for a minimum of an annual performance review. Since the course operations and field conditions change significantly throughout the different seasons, staff recommends conducting the maintenance review quarterly and have Rohnert Park Golf conduct customer satisfaction reviews quarterly - once in May at the beginning of the peak season, and then a second review in late October at the end of the peak season, January at the seasonal low, and finally in March when golf play is expected to increase. This approach would provide a more comprehensive representation of the maintenance and condition of the courses and facilities through all seasons and peak and low periods and would also coincide with the Golf Course Review Committee's biannual review meetings. Section 1.3 of the Lease Agreement requires the formation of a Golf Review Committee to facilitate the management and review of ongoing requirements set forth in the Lease Agreement. The Golf review committee is comprised of two City representatives designated by the City Manager and two members from Rohnert Park Golf. Rohnert Park Golf has designated Michael Sharp, Executive VP, and Brad Dutler, General Manager at Foxtail. The City Manager has designated City Manager Gabriel Gonzalez, and Public Works and Community Services Director John McArthur as the two City representatives. 2

3 ITEM NO. 14 The Golf Review Committee shall meet, at a minimum, every six (6) months of the Lease year (June 30 and December 30) for the purpose of examining the preceding quarters', and annual, report of Gross Receipts along with a review of the quarterly inspections of the golf courses and facilities, and develop plans for any needed repairs or improvements. Within ten working days following the meeting of the Golf Review Committee, a report summarizing the findings or recommendations of the Golf Review Committee shall be forwarded to the City Council and City Manager. Other performance measurement elements, including financial review and capital improvements, would be assessed annually. The financial review incorporates measures such as total rounds and annual revenue, from Foxtail Golf Course and considers other local and regional courses for comparison purposes. Since this type of measurement data can vary significantly with the different seasons, analyzing this data on a more frequent interval would make it prone to seasonal spikes; so, for the purpose of most accurately measuring performance, less frequent intervals is more effective. Please note that the Golf Review Committee will be reviewing financial information every six months for the purpose of determining monthly and quarterly percentage rent lease payments to the City. Baseline Establishment Once finalized, the Performance Measurement Report will serve two purposes by establishing: 1) a baseline or benchmark assessment of the courses and facilities, and 2) a performance measurement plan that will be used on a quarterly basis to measure current performance and compare to the established baseline measurements. The baseline measurements are a record of actual current conditions (May 2013), not desired performance standards. Actual field baseline measurements could indicate conditions that are either above or below acceptable standards as defined in the Lease Agreement. Depending upon actual baseline measurements, corrective action may or may not be required. Maintenance Baseline - Staff recommends using the standards and specifications defined in the Lease Agreement. These standards detail required maintenance conditions of the courses and facilities and per the Lease Agreement; the Tenant is required to achieve these standards. Actual field measurements are to be compared to the baseline standards, Financial Baseline - Staff recommends using current financial data for establishing a baseline. The recommended categories are: 3 1. Actual rounds played - rounds directly affect golf and other revenues and can be readily compared on a year-to-year basis to measure growth. Weather factor can be used to adjust or normalize these figures would be the baseline measurement. 2. Actual revenues - current (2012 year end) revenue would be the benchmark, and future revenues would be compared to measure growth or decline. 3. Current actual rounds compared to regional competitors - this measurement would measure overall market share of golf play in Sonoma County. Calendar year 2012 rounds played would serve as the baseline measurement. It is reasonable to discount the affects of weather and national economic factors since other courses would be subjected to the same external factors. 4. Regional golf revenue growth/decline comparison - This would measure the rate of financial change compared to regional competitors. The baseline measurement would be growth/decline in years 2011 to 2012 for Foxtail and regional competitors. These

4 ITEM NO. 14 measurements when compared regionally discount external factors such as weather and the national economy since all course operators would be subjected to the same factors. Customer Satisfaction Baseline - Rohnert Park Golf currently has several survey mechanisms to gauge customer satisfaction. These reports provide numerical scores that can be used to measure current performance and trends over time. Staff recommends using the most recent survey scores as the baseline measurements and compare future ratings for ongoing performance measurement. The performance measurement categories identified in the Lease Agreement and included in this Draft Report for ongoing evaluation of the Foxtail Golf Course are organized into four major sections that consist of the following categories: 1. financial performance, 2. maintenance, 3. customer satisfaction, and 4. improvements. Financial Performance The Draft Performance Measurement Report measures financial performance in the following areas: annual rounds, green and cart fees, merchandise revenue, food and beverage revenue, and total revenue. As described in the baseline section above, these financial categories capture all facets of financial performance that are used to determine the overall financial performance of the courses. Golf, merchandise, and food and beverage revenue figures are used for determining percentage rent payments to the City. This data is used to compare performance with previous year s totals as well as local competitor s financial information. Changes in annual rounds are also compared to the Bay Area region to further consider and examine changes in the regional golf industry. Initial findings included in the draft report reveal the following information: Foxtail Year Growth (%) Rounds Played 59,775 76, Golf Revenue ($ in millions)

5 ITEM NO. 14 Windsor and Bennett Valley Year Growth (%) Rounds Played 136, ,590 (7) Golf Revenue ($ in millions) (9) Foxtail rounds played and golf revenue has increased since Through the same period, the two neighboring publicly-owned golf courses have seen a decline in golf rounds and revenue. Also, during this period, there was a slight decrease in rounds played throughout the entire San Francisco-Oakland region. It appears that Foxtail is in a period of growth while local and regional competitors are in a state of decline. It is not certain whether the current growth will continue. Factors such as the weather, the economy, and regional competition could affect the current growth rate. One desired outcome of the ongoing performance measurement plan is to ensure maintenance, improvements, and customer satisfaction factors are monitored and addressed promptly. This approach will give the course operator the opportunity to realize continued growth. Maintenance The maintenance section of the Draft Performance Measurement Report has a rating sheet for each component of the two courses (greens, fairways, cart paths...) and facilities (clubhouse, shop, restrooms...). Course safety is another aspect of golf course operations that will be evaluated on an ongoing basis. Items of particular importance that would affect patrons and pedestrians include proper warning devices, trip hazard abatements, standing water, or other items that could endanger the public. Safety evaluation criteria are not yet included in the draft performance report, but will be added and included in the final draft report. In each evaluated area, the standards defined in the Lease Agreement are listed with the expectation that the actual rating is scored relative to the standard. Although the actual rating has not been performed, staff is aware of some maintenance-related deficiencies. These deficiencies, if not corrected, will be graded as below standard and in need of improvement as compared to the standards set forth in the Lease Agreement. These, or other deficiencies, will not become the new acceptable standard. In its current form, the maintenance section of the Draft Performance Measurement Report is shown as a plan for completing an actual evaluation and is a currently a blank scorecard. Staff anticipates conducting an actual evaluation of the courses and facilities between May 16 th and May 30 th using the rating sheets shown in the maintenance section of this Draft. This evaluation would serve as a baseline assessment for the courses and facilities. Afterwards, the maintenance section would be completed on a quarterly basis. Customer Satisfaction Rohnert Park Golf currently uses several tools to measure customer satisfaction on a regular basis: 1. Golfer's survey - Surveys sent electronically to everyone in Rohnert Park Golf's data base. These are annual surveys that provide a numerical rating or score in each measured category. 5

6 ITEM NO Secret Shoppers - A third party secret shopper visits Foxtail previously performed on a quarterly or semi-annual basis, will now be conducted monthly. The Secret Shoppers also provides a numerical rating. 3. Comment Cards - recently implemented to receive feedback on a daily basis. The comment cards provide a numerical performance rating as well as a place for written comments. 4. President s Survey Every tournament or outing group leader that utilizes Foxtail for their event gets a first class mailing from CourseCo with a self-addressed stamped one page survey that provides an Excellent to Poor rating for a range of criteria including price, communication, course conditions, and service quality. The President s survey is conducted about 70 to 80 times per year. 5. Annual National Golf Foundation Customer Loyalty and Satisfaction Program (CLASP) Survey - This electronic survey is sent to Foxtail Golf Course patrons from the National Golf Foundation (NGF), a third party, using Rohnert Park Golf's database. The NGF conducts surveys for other local golf courses who are also NGF members. The Foxtail Golf Course survey could be expanded to include and data from other regional golf courses. This additional data could be used to compare customer satisfaction at Foxtail to other regional golf courses. 6. Members of the Golf Course Oversight Committee (a citizen s committee) also perform an evaluation of the course and facilities. These evaluations performed by Rohnert Park citizens will also be incorporated into the customer satisfaction section of ongoing the performance measurement plan. Secret shopper data showed the lowest customer satisfaction rating of 87 in 2007, and a current rating of 95 (scale is 1-100). This improvement in customer satisfaction coincides with the increase in golf rounds and total revenue. Detailed completed survey results will be included in the Final Performance Review Report. These surveys numerically score customer satisfaction and will serve as a customer satisfaction baseline measurement. Future surveys will be compared to the baseline score to determine and evaluate change in the customer's experience. Capital Improvements Extensive capital improvements were made to Foxtail Golf Club in 2002, with the North Course fully renovated. While extensive improvements were completed, and an ongoing capital improvements program is in-place, the South Course's basic infrastructure is aged. Specifically, a new irrigation system and cart path network are required and many of the sand bunkers need to be renovated. The cost of the irrigation system and cart path network is estimated to be in excess of two million dollars. Without the replacement of these fundamental golf course infrastructure components, the South Course maintenance conditions will remain somewhat compromised. Through this performance measurement program, staff will be identifying and prioritizing capital needs to address infrastructure improvements. Staff will also work with Rohnert Park Golf to fund and plan these needed improvements. A draft annual 5-year Capital Improvement Plan has been prepared by the operator and will be updated annually for subsequent five year periods. The 5-year CIP will be included in the final Performance Measurement Reports and will be reviewed biannually by the City's Golf Review Committee and annually by the City Council.

7 ITEM NO. 14 The preliminary capital project list (below) has not been reviewed by the Golf Review Committee. The Golf Review Committee, which consists of City staff and Rohnert Park Golf representatives, will review this list and set recommended priorities for the City Council's review and approval. Please note that projects 11 through 16 do not have an identified funding plan. Most recent improvements not included in this list include new golf carts throughout the facility. Preliminary 5-year Capital Improvement Plan Years 1 through 5 Project Project Name Project Description Estimated Cost Project 1 2 South Course Irrigation Audit $ 5, $5,000 1 South Course Irrigation New VFD $ 6, $6, Bunkers North $ 45, $5,000 $15,000 $10,000 $10,000 $5, Bunkers South $ 25, $5,000 $5,000 $10,000 $5, Tee Renovation Tee Leveling $ 25, $5,000 $5,000 $5,000 $5,000 $5, Clubhouse Entry Sign/Statue Rehabilitation $ 20, $15,000 $5, Cart Path repair North $ 25, $10,000 $5,000 $5,000 $5, Cart Path repair South $ 10, $5,000 $5, Clubhouse Carpeting $ 20, $20, Painting Clubhouse $ 20, $10,000 $10, Clubhouse 12 Irrigation 13 Grading 14 Parking Lot 15 Practice Area 16 Practice Area Construct covered pavilion (TBD) $ 100, South New and North Pump house New (TBD) $ 1,900, erosion control 10/18 lake north (TBD) $ 250, Slurry Seal and Re-stripe (TBD) $ 65, Range Tee expansion (TBD) $ 70, New Chipping green $ 100, Total Expenses 21,000 60,000 $60,000 $35,000 $25,000 7

8 ITEM NO. 14 Performance Enforcement Though a process has not specifically been defined, continued failures to meet performance standards or to correct deficiencies could constitute a default by the tenant. A formal notice procedure consisting of a series of written notice of correction needed, warnings, and other written enforcement procedures will be developed and included in the Performance Monitoring Plan as a mechanism to enforce needed corrective actions. OTHER OPTIONS CONSIDERED No other options are available - development of the performance Measurement Program and ongoing monitoring is a requirement of the Lease Agreement. FISCAL IMPACT/FUNDING SOURCE Payment for the Draft Performance Measurement Report was made by Rohnert Park Golf LLP. There was no financial impact to the City for the preparation of this report. In future years, through ongoing performance monitoring of golf course operations, staff is hopeful that golf revenue continues to increase. With further financial growth, the City would realize increased lease payments through the percentage rate schedule in the Lease Agreement. Department Head Approval Date: 4/29/2013 City Manager Approval Date: 5/23/2013 City Attorney Approval Date: 5/8/2013 Attachments (list in packet assembly order): 1. Draft Performance Measurement Report 8

9 DRAFT Summary Report: Foxtail Golf Course Performance Evaluation Rohnert Park, California Prepared for: The City of Rohnert Park Prepared by: Pro Forma Advisors, LLC April 2013 PFAID: Version: 1.3 Pro Forma Advisors, LLC Los Angeles T New York Metro T F

10 Introduction The City of Rohnert Park owns the 36-hole Foxtail Golf Course complex, located on Golf Course Drive, onehalf mile east of Redwood Highway (State Highway 101) in central Rohnert Park. The City leases the golf facility to CourseCo, Inc., a professional golf course management company. The City of Rohnert Park and CourseCo, Inc. recently modified the terms relating to the Foxtail Golf Course lease agreement. One element of the modified agreement states Within six (6) months of formal adoption by Landlord of this Lease agreement, the Landlord shall develop performance measurements and evaluation criteria to track the performance of golf course operations (Performance Measurements). Performance Measurements shall reflect financial growth, customer satisfaction, improvements, maintenance, and other relevant measures and shall become the basis by which the Landlord and the Tenant may elect to exercise the ten (10) year extension of the term per Article 2. The following summary report presents criteria developed to be applied to Foxtail on a semi-annual basis in evaluating the performance of the golf facility, and to establish the benchmark (baseline) data. The criteria has been developed based on input from numerous stakeholder groups. Specifically, the work program consisted of the following tasks: Discussions with City of Rohnert Park administrative staff responsible for monitoring the golf course lease agreement. Discussions with representatives of the Golf Course Oversight Committee. Interviews with representatives of the current lessee, CourseCo, Inc. Comprehensive inspection of the property and interviews of Foxtail Golf Course manager and maintenance superintendent. A review of market area competitive golf course performance data. A review of the experience in auditing other municipal golf courses throughout the State of California. The performance review is comprised of various components: Foxtail Golf Club financial performance (rounds and revenues) Golf course maintenance conditions (North and South courses) Support facility maintenance conditions (entry, clubhouse, cart storage, maintenance yard, other) Golfer services (reservations, golf shop, food and beverage, starting, practice range, other) Capital improvements Pro Forma Advisors, LLC Page 2 PFAID:

11 Several elements of the performance review will be evaluated on a quarterly basis, including the course and facility inspections. Other elements, including the financial review, golfer services, and capital improvements, will be assessed semi-annually or annually. The course and facility inspections will be scheduled for the Spring, Summer, Fall and Winter seasons of the year, and the other elements reviewed in the Fall and/or Spring season. A summary report would be submitted to the City Council following each performance review. The report would present the findings along with a historical trend of performance, prescribe remedies for areas identified which require special attention, and provide follow-up on previously outlined areas of concern. While this report is not intended to represent a formal review, selected information and analysis which will be contained in a formal evaluation are included to illustrate the content and flavor of the performance review process. Pro Forma Advisors, LLC Pro Forma Advisors, LLC Page 3 PFAID:

12 Executive Summary The findings of the performance review will be highlighted in an overall summary. Financial Performance In FY 2012, Foxtail generated 76,269 total golf rounds, an increase of 7.5% from FY The National Golf Foundation reports rounds for the San Francisco-Oakland region as a whole were up 2.7% in 2012 versus With 33 days of precipitation exceeding one-tenth inch, a part of the gain was attributable to favorable weather. Weather adjusted, the FY 2012 increase is estimated at just over 4.0% compared with FY Golf revenue (greens, carts and range) in FY 2012 totaled $2,157,700, an increase of 6.6% from FY Weather adjusted, the FY 2012 increase in revenue is estimated at just under 4.0% above FY Total FY 2012 gross revenue was $3.64 million in FY 2012, an increase of 4.0% versus FY Based on greens fees revenue at the local pool of courses (Foxtail Golf Club, Bennett Valley Golf Course in Santa Rosa, and Windsor Golf Club in the Town of Windsor), Foxtail s market share was 34% in FY 2012, the same as achieved in FY Foxtail s market share in FY 2008 was only 28%. Golf Course and Support Facility Maintenance The score derived from the quarterly inspection of Foxtail Golf Club is summarized as follows: Foxtail Inspection Scoring Spring Summer Fall Winter Spring Summer Fall Winter North Course South Course Support Facilities Pro Forma Advisors, LLC Pro Forma Advisors, LLC Page 4 PFAID:

13 Golfer Services Based on the results of secret shopper surveys, the overall customer rating for golfer services for the period is summarized as follows (1:100 scale, with 100 representing excellent): Year Overall Rating % Foxtail Overall Customer Rating 95 Overall Customer Rating (1:100 Scale, 100 Rated Excellent) Pro Forma Advisors, LLC Pro Forma Advisors, LLC Page 5 PFAID:

14 Capital Improvements Extensive capital improvements were made to Foxtail Golf Club in 2002, with the North Course fully renovated. While extensive improvements were completed, and an ongoing capital improvements program is in-place, the South Course basic infrastructure is aged. Specifically, a new irrigation system and cart path network are required, and many of the sand bunkers need to be renovated. The cost of the irrigation system and cart path network is in excess of $2 million. Without the replacement of these fundamental golf course infrastructure components, the South Course maintenance conditions will remain somewhat compromised, regardless of maintenance efforts. The 2013 annual 5-year capital improvements plan has been prepared by the operator. The plan is updated annually for the subsequent five year period. Capital improvements completed in the previous year will be specified and compared with the 5-year plan. A reconciliation between the plan and implemented improvements will be provided. The 2013 Capital Improvements Plan is summarized as follows: Pro Forma Advisors, LLC Pro Forma Advisors, LLC Page 6 PFAID:

15 Foxtail Capital Improvements Plan-2013 # Project Description Total Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 1 South Course Irrigation Audit $ 5,000 $ 5,000 2 South Course Irrigation New VFD $ 6,000 $ 6,000 3 Bunkers North $ 45,000 $ 5,000 $ 15,000 $ 10,000 $ 10,000 $ 5,000 4 Bunkers South $ 25,000 $ 5,000 $ 5,000 $ 10,000 $ 5,000 5 Tee Renovation Tee Leveling $ 25,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 6 Clubhouse Entry Sign/Statue Rehabilitation $ 20,000 $ 15,000 $ 5,000 7 Cart Path repair North $ 25,000 $ 10,000 $ 5,000 $ 5,000 $ 5,000 8 Cart Path repair South $ 10,000 $ 5,000 $ 5,000 9 Clubhouse Carpeting $ 20,000 $ 20, Painting Clubhouse $ 20,000 $ 10,000 $ 10, Clubhouse Construct covered pavilion (TBD) 12 Irrigation South New and North Pump house New (TBD) 13 Grading erosion control 10/18 lake north (TBD) $ 100,000 $ 1,900,000 $ 250, Parking Lot Slurry Seal and Re-stripe (TBD) $ 65, Practice Area Range Tee expansion (TBD) $ 70, Practice Area New Chipping green $ 100,000 Total $ 2,686,000 $ 21,000 $ 60,000 $ 60,000 $ 35,000 $ 25,000 * 5 year preliminary capital project list includes rough estimates of projects to be performed depending on the availability of capital funding. CourseCo has advanced funds to the capital fund in prior years in excesss of the required levels so there is no current available capital in the fund. Pro Forma Advisors, LLC Pro Forma Advisors, LLC Page 7 PFAID:

16 Financial Performance Pro Forma Advisors, LLC Page 8 PFAID:

17 Financial Performance Foxtail financial performance is based on the analysis of a series of measures including annual utilization (rounds played), golf gross revenue, and total gross revenue, each measured against a market standard. First, performance data is presented, followed by Foxtail performance. Financial performance would be measured annually, based on fiscal years ending June 30. Data Foxtail Golf Course rounds and revenue over the past five year period is reported as follows: Annual Rounds 59,775 59,221 70,967 76,269 Rain Days Annual Gross Revenue ($000) Greens Fees $1,308.5 $1,177.5 $1,403.1 $1,476.5 Cart Fees Practice Range Subtotal--Golf Revenues $1,812.1 $1,731.1 $2,023.5 $2,157.7 Merchandise Food & Beverage 1, , , ,219.8 Miscellaneous Total $3,332.7 $3,294.7 $3,504.1 $3,644.3 Source: CourseCo, Inc. The change in rounds played for the San Francisco-Oakland region, expressed as percentage change from the prior year, is reported by Golf Data Tech as follows: Pro Forma Advisors, LLC Page 9 PFAID:

18 San Francisco-Oakland Rounds Played Annual Change Year Annual Percent Change Rain Days* % (9.4) * Number of days with over.1 inches of precipitation. Source: National Golf Rounds Played Report, Golf Data Tech, various annual summary reports; and National Oceanic and Atmospheric Administration, National Climate Data Center reporting for Santa Rosa Sonoma County Airport (station COOP: ). Rounds and revenue performance for Foxtail and key municipal competitors--windsor Golf Club in Windsor and Bennett Valley Golf Course in Santa Rosa-- for 2013: Annual Rounds Average Greens Fees Annual Greens Fees Revenue Foxtail Bennett Windsor Foxtail Bennett Windsor Foxtail Bennett Windsor Valley Valley Valley Number of Holes 36 Holes 18 Holes 18 Holes 36 Holes 18 Holes 18 Holes Fiscal Year FY ,200 86,000 55,000 $19.22 $20.00 $29.00 $1,284,000 $1,720,000 $1,590,000 FY ,800 82,360 53, ,308,500 1,602,900 1,505,000 FY ,200 63,800 51, ,177,600 1,369,300 1,336,000 FY ,970 65,260 51, ,403,100 1,437,600 1,280,000 FY ,300 70,630 55, ,476,500 1,409,000 1,455,000 Percent Change FY2008-FY % (17.8%) 1.8% (3.1%) (0.2%) (10.3%) 15.0% (18.1%) (8.5%) Source: CourseCo, Inc.; Town of Windsor Finance Department; City of Santa Rosa, Parks and Recreation Department. Pro Forma Advisors, LLC Page 10 PFAID:

19 Foxtail Performance Foxtail Vs. Bay Area Average Rounds: A comparison of Foxtail actual annual paid rounds versus a Bay Area average index (base year equals 100). Foxtail Bay Area 100 Foxtail: Annual Rounds (000) Bay Area: Index (base year=100) Pro Forma Advisors, LLC Page 11 PFAID:

20 Foxtail Rounds-Weather Adjusted: Foxtail actual rounds versus Foxtail rounds adjusted for annual precipitation Actual Rounds Weather Adjusted Rounds 80 Foxtail Rounds (000) Note: Rounds are adjusted for weather based by calculating the number of rain days above or below the average annual rain days for the period at an average of 150 rounds per day. Pro Forma Advisors, LLC Page 12 PFAID:

21 Foxtail Gross Golf and Total Revenue: Foxtail golf (greens fees, annual passes, cart rentals and practice range) gross revenue and total gross revenue. Golf Revenue Total Revenue Gross Revenue ($000) Pro Forma Advisors, LLC Page 13 PFAID:

22 Foxtail Local Market Share: Foxtail annual greens fees revenue as a percentage of combined market greens fees, including Foxtail Golf Club, Windsor Golf Club, and Bennett Valley Golf Course 35 Foxtail Local Market Share Percentage of Local Market Area Total Play Pro Forma Advisors, LLC Page 14 PFAID:

23 Golf Course Maintenance Pro Forma Advisors, LLC Page 15 PFAID:

24 Golf Course Maintenance Golf course maintenance is based on a comprehensive inspection of Foxtail, conducted on a quarterly basis. The inspection consists of an evaluation of the condition of the golf course features including greens, bunkers, water features, cart paths, fairways, roughs and a series of other course components. Each feature or component is rated on a numerical scale of 1 to 5: Rating Condition 1 Unacceptable 2 Poor 3 Average 4 Very Good 5 Excellent A weighting is applied to each feature/component yielding an overall golf course maintenance rating. The full evaluation is presented in Appendix A. A summary of the weighted average course maintenance rating is as follows: North Golf Course Evaluation Feature Points Available Points Earned Weight Weighted Average 1. Greens Bunkers Fairways Roughs Tees Practice Range Cart Paths Trees and Shrubs Water Features Traffic Control Course Restrooms Total/Average Overall Weighted Average Score (Weighted Average Divided by 5.0) Pro Forma Advisors, LLC Page 16 PFAID:

25 South Golf Course Evaluation Feature Points Available Points Earned Weight Weighted Average 1. Greens Bunkers Fairways Roughs Tees Practice Range Cart Paths Trees and Shrubs Water Features Traffic Control Course Restrooms Total/Average Overall Weighted Average Score (Weighted Average Divided by 5.0) Pro Forma Advisors, LLC Page 17 PFAID:

26 Support Facility Maintenance Pro Forma Advisors, LLC Page 18 PFAID:

27 Support Facility Maintenance Support facility maintenance is based on a comprehensive inspection of Foxtail, conducted in the Spring and Fall seasons of the year. The inspection consists of an evaluation of the condition of the support facilities including the property entry, clubhouse exterior, restrooms, golf shop, snack bar/pub, banquet room, golf carts, cart storage and the maintenance facility. Each element is rated on a numerical scale of 1 to 5: Rating Condition 1 Unacceptable 2 Poor 3 Average 4 Very Good 5 Excellent A weighting is applied to each component yielding an overall support facility maintenance rating. The full evaluation is presented in Appendix B. A summary of the weighted average support facility maintenance rating is as follows: Support Facility Evaluation Feature Points Available Points Earned Weight Weighted Average 1. Clubhouse Exterior Clubhouse Restrooms Golf Shop Snack Bar/Pub Banquet Room Golf Carts/Storage Property Entry Maintenance Facility Total/Average Overall Weighted Average Score (Weighted Average Divided by 5.0) Pro Forma Advisors, LLC Page 19 PFAID:

28 Golfer Services Pro Forma Advisors, LLC Page 20 PFAID:

29 Golfer Services An evaluation of golfer services is based on a periodically (quarterly or semi-annually) conducted secret shopper survey. These surveys are conducted by an independent professional services firm at the request of CourseCo, with the City receiving a copy of the full report. The survey addresses various golfer service components including the reservation/tee time process, check-in procedure, starter function, pro shop merchandising, golf carts, practice range conditions, and marshals. Each service is rated on a numerical scale of 1 to 100, with 100 being excellent. The full evaluation is presented in Appendix C. A summary of the weighted average golfer services rating is as follows: Rating Section January 2012 January 2013 Reservations/Tee Time 89% 100% Arrival/Environment Pro Shop Driving Range Food & Beverage Golf Course Starting Overall Rating 90% 95% In addition to the secret shopper survey, the golf advisory committee independently conducts a review of golfer services. It is intended that the results of this review will be presented as supplementary commentary on specific areas of performance. Pro Forma Advisors, LLC Page 21 PFAID:

30 Capital Improvements Pro Forma Advisors, LLC Page 22 PFAID:

31 Capital Improvements The capital improvements evaluation is based on completed capital improvements at the facility over the past year, and the proposed 5-year capital improvements plan. The following capital improvements plan (2013) for Foxtail has been prepared by CourseCo. Note that projects beyond year 5 are unfunded at this time. Foxtail Capital Improvements Plan-2013 # Project Description Total Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 1 South Course Irrigation Audit $ 5,000 $ 5,000 2 South Course Irrigation New VFD $ 6,000 $ 6,000 3 Bunkers North $ 45,000 $ 5,000 $ 15,000 $ 10,000 $ 10,000 $ 5,000 4 Bunkers South $ 25,000 $ 5,000 $ 5,000 $ 10,000 $ 5,000 5 Tee Renovation Tee Leveling $ 25,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 6 Clubhouse Entry Sign/Statue Rehabilitation $ 20,000 $ 15,000 $ 5,000 7 Cart Path repair North $ 25,000 $ 10,000 $ 5,000 $ 5,000 $ 5,000 8 Cart Path repair South $ 10,000 $ 5,000 $ 5,000 9 Clubhouse Carpeting $ 20,000 $ 20, Painting Clubhouse $ 20,000 $ 10,000 $ 10, Clubhouse Construct covered pavilion (TBD) 12 Irrigation South New and North Pump house New (TBD) 13 Grading erosion control 10/18 lake north (TBD) $ 100,000 $ 1,900,000 $ 250, Parking Lot Slurry Seal and Re-stripe (TBD) $ 65, Practice Area Range Tee expansion (TBD) $ 70, Practice Area New Chipping green $ 100,000 Total $ 2,686,000 $ 21,000 $ 60,000 $ 60,000 $ 35,000 $ 25,000 Pro Forma Advisors, LLC Page 23 PFAID:

32 Pro Forma Advisors, LLC Page 24 PFAID:

33 Golf Course Evaluation Form Comments and Corrective Actions Pro Forma Advisors, LLC Page 25 PFAID:

34 Course: Date: Evaluator: 1. Greens CONTRACT: 2.11 Greens Maintain all turf in accordance with playability and industry wide standards as determined by the GSM, observing the following minimum requirements: Greens shall be mowed as needed with an approved greens reel type mower at a height of 5/32, or as recommended by the Tenant and approved by the GSM. Frequencies and height of cut may be modified from time to time as deemed necessary by the golf course Tenant with the prior approval of the GSM. All grass clippings must be collected and removed from the site during each mowing operation, including dispersed in a method to prevent unplayable conditions. Greens must be mowed, and rolled if performed, prior to first golfer of day reaching each respective green, including the putting green. Care will be given on clean up lap mowing to reduce turf loss and playability Ball cups are to be relocated daily to USGA Standards to enable worn turf spots to recover. Putting and chipping green cups to be changed weekly. Hole positions will be rotated using front, middle, and back locations for each three hole sequence Verticutting of greens shall be scheduled bi-weekly or more, including double verticutting, during periods of active turf growth. Each verticutting shall be at 90 degrees to the previous cut. Verticutting activities should match the agronomic requirements of plant growth. This function shall be coordinated to compliment the aerification and topdressing schedules. Combing or brushing may also be done. Verticut depth should be appropriate to playing conditions and agronomic needs. If play conditions are such that greens are not smooth for ball roll (bumpy), Tenant shall utilize verticutting and other agronomic methods to improve golf ball roll Aerify greens at least two (2) times per year, in April and August, or more frequently if needed, and remove plugs the same day. Aerification shall be carried out with a minimum of interference to play. Aerification shall be scheduled in November of each year for the following year in conjunction with the GSM and golf professional. All aerification hole sizes, with a minimum of 5/8 inch hollow tine utilized, and spoil locations shall be pre-approved by the GSM. Aerification holes shall penetrate to a depth of three inches. Care should be taken to have as minimal disturbance to green surface from manual and equipment applications during aerification process. Aerification of greens for agronomic purposes, other than annual regularly scheduled aerifications, shall be reviewed and scheduled with the golf professional to reduce golfer impact Following all annual regularly scheduled aerifications, a topdressing sand material approved by the GSM shall be applied and brushed into the turf, with follow applications performed as Pro Forma Advisors, LLC Page 26 PFAID:

35 needed. Application shall be done with an approved topdressing spreader. Spot topdressing may be applied to repair damage from ball marks or any other damage. Light topdressing will be done every two weeks during the active growth season to maintain turf playability and agronomic conditions. Turf irrigation requirements shall be adjusted during process to ensure proper agronomic conditions are met Tenant shall have the soil analyzed after the start of the term of the contract and twice every year thereafter, on dates pre approved by GSM. Apply fertilizer and nutrients in the quantity and type recommended by soil analysis and growing conditions at the time of treatment and in a manner to provide uniform growth of turf. Under normal conditions, 0.5 to 1.2 pounds of actual nitrogen per thousand square feet shall be applied per growing month. Typically, a variety of granular slow release types of material or liquid sprayable fertilizer may be utilized. Use of materials to control salt damage and water infiltration shall be applied to meet the requirements of the turf and playable conditions. Fertilizer shall be applied every three (3) weeks during the active growing season and every five (5) weeks for the remainder of the year Treat greens with proper chemicals to control insects, disease, weeds and other pests Greens shall be kept free of foreign grasses and/or broadleaf weeds that tend to creep in from the edges EC readings should be taken during the spring and fall to determine salts levels and if they are above normal, corrective action taken to reduce to appropriate levels to promote optimum health of the turf Green speed should be consistent daily on all greens, with the difference between the lowest green speed and the highest green speed no more than one (1) foot in variance on the stimp meter throughout golf course. Green speeds should be no lower than 9 feet in average daily during the months of May, June, July, August, September, and October, and no lower than 9 feet 6 inches daily for the other months. Green speeds should be maintained as high as agronomic conditions and play conditions allow Debris from trees shall be cleaned prior to mowing and during day as needed to ensure quality playing conditions Ball marks shall be repaired daily Collars, Approach, Banks and Green Surrounds Maintain all turf in accordance with playability and industry wide standards as determined by the GSM observing the following minimum requirements: Collars shall be mowed a minimum of two (2) times each week to maintain a height of ½ inch, mowing with a triplex mower Green surrounds shall be mowed a minimum of (1) time each week to maintain a height of one (1) to 1-1/4 inch or a height as recommended by the Tenant and approved by the GSM. If a rotary mower is used, it shall be specifically designed to prevent scalping of the turf. Pro Forma Advisors, LLC Page 27 PFAID:

36 Fertilization frequency, types of material and analysis shall be determined from results of bi-annual soil nutrient level testing and growing conditions at the time of treatment. Under normal conditions 0.25 to 0.75 pounds of actual nitrogen per thousand square feet shall be applied every six (6) weeks during the active growth season and every eight (8) weeks for the remainder of the year.. Typically combinations of granular slow release type of materials may be utilized Mowing directions should be changed to prevent turf depressions and turf loss Approach shall be mowed a minimum of two (2) to three (3) times each week to maintain a height of ½ inch, or a height as recommended by the Tenant and approved by the GSM, cut with a greens type triplex mower Grass clippings shall be removed and dispersed properly to not negatively affect golf play..7 Bunker banks shall be mowed to ensure no rutting occurs and proper turf heights are maintained. If rutting occurs, areas shall be sodded for repair..8 Verticutting shall be performed at least two (2) times per year. All other provisions of section shall be followed..9 Aerify at least two (2) times per year, in April and August, or more frequently if needed, and remove plugs the same day. Aerification shall be carried out with a minimum of interference to play. Aerification shall be scheduled in November of each year for the following year in conjunction with the GSM and golf professional. All aerification hole sizes, with a minimum of 5/8 inch hollow tine utilized, and spoil locations shall be pre-approved by the GSM. Aerification holes shall penetrate to a depth of three inches. Care should be taken to have as minimal disturbance to the turf surface from manual and equipment applications during aerification process. Aerification for agronomic purposes, other than annual regularly scheduled aerifications, shall be reviewed and scheduled with the golf professional to reduce golfer impact..10 Following all annual regularly scheduled aerifications, a topdressing sand material approved by the GSM shall be applied as needed. Application shall be done with an approved topdressing spreader. Turf irrigation requirements shall be adjusted during process to ensure proper agronomic conditions are met. STANDARD: Smooth, uniform turf, firm but not hard, well defined, consistent, of suitable speed for location. Cups placed in accordance with USGA recommendations. Flags stand up straight. Cups, poles and flags are uniform, clean and in good repair. Pin placement indicators uniform and properly used. Color and texture of turf, uniformity of the mowing, conditions of the areas around the greens visually appealing. No diseases, weeds, insects, rodents, bare spots or off-color areas. Pro Forma Advisors, LLC Page 28 PFAID:

37 1. Greens Rating Green Rating (1-5) Green Rating (1-5) Comments #1 #10 #2 #11 #3 #12 #4 #13 #5 #14 #6 #15 #7 #16 #8 #17 #9 #18 Total --- Subtotal Average* * Total score divided by 18. Pro Forma Advisors, LLC Page 29 PFAID:

38 2. Bunkers CONTRACT: 2.17 Sand Bunkers Sand bunkers shall be cleaned and raked, by mechanical method or by hand, a minimum of three (3) times per week Sand depth shall be randomly checked monthly for depth of sand and shall be maintained no less than four inches (4 ) deep. Tenant shall submit written report to City of any bunkers with less than four (4 ) inches of sand. Additional sand may be added, at City expense, at City sole discretion Turf shall be mechanically edged along sand bunker edges at a minimum monthly, or more frequently if required, to ensure a neat appearance. Care shall be taken to maintain the design outline of the bunkers to insure the integrity of the bunker shape. Chemical control of sand edges through use of a non-selective herbicide or growth regulator around sand bunkers shall be allowed with pre- approval of GSM Excess sand in the turf surrounding the trap shall be removed on a regular basis A minimum of two (2) to five (5) rakes are to be available, depending on bunker size, at all sand bunkers at all times. (Color and style subject to GSM approval.) Bunker sand shall be cultivated as needed, or at a minimum of once per month, to ensure sand is not compacted. Methods should be used to not disturb existing soil below the sand All debris such as pine needles and cones, branches and other debris shall be removed as needed to ensure playable conditions and reduce sand contamination Excessive water ponding and silt accumulated by rain falls and irrigation applications shall be removed prior to bunker raking. STANDARD: Sand surface is uniform and smooth, sand is adequate depth for play. No weeds or debris in bunkers. Drainage is good, no standing water or wet sports. Rakes are adequate in number, in good condition and properlly placed. Quality of mowing and trimming around bunkers maintains a consistent edge and clean lip. Bunker walls are maintained and not collapsing. Pro Forma Advisors, LLC Page 30 PFAID:

39 Area Front Nine Back Nine Practice Area Total Average* Rating (1-5) 2. Bunkers Rating Comments * Total divided by 3 Pro Forma Advisors, LLC Page 31 PFAID:

40 3. Fairways CONTRACT: 2.14 Fairway Maintenance Maintain all fairways in accordance with playability and industry wide standards as determined by the GSM, observing the following minimum requirements: Mow fairway two (2) times weekly at height of 3/4 inch or at a height as recommended by the Tenant and approved by GSM Aerify all fairways at least one (1) time a year. The equipment used to aerify the fairways shall be Power Take-Off (PTO) or self engine powered to enable a three (3) to five (5) inch coring depth (Toro ProCore or equivalent) utilizing hollow coring, with a minimum of ¾ inch hollow tine, as recommended by the Tenant and approved by the GSM and cores shall be removed from the fairways. Aerification shall be scheduled in November of each year for the following year in conjunction with the Golf Professional and the GSM. All aerification hole sizes and spoil locations shall be pre- approved by the GSM. Care should be taken to have as minimal disturbance to turf surface from manual and equipment applications during aerification process. Slicing of the fairways at various intervals is recommended to promote turf growth, improve water infiltration, and improve salt damage Over seed all fairways once per year, in the fall and at a pre- approved date with the GSM and golf professional, with an 80/20 rye/blue seed mix, pre-approved by the GSM, at a minimum rate of 450 lbs. per acre. All seed shall be slit seeded into the soil to ensure adequate soil and seed contact. A post seed application of fertilizer ( or equivalent) shall be applied with four (4) weeks of the over seed process at a rate of one (1) lb per thousand of nitrogen. Over seed and topdress (or re-sod) worn or bare areas of fairways as necessary Treat turf to control weeds, invasive grasses (i.e. Kukuyu), diseases, insects, and other pests as necessary to maintain a weed free and healthy turf, and to eliminate weed infestation A proper fertilizing and nutrient program shall be performed per soil testing recommendations each calendar year. Fertilization shall occur a minimum of every six (6) weeks during the active growth season and every eight (8) week during the remainder of the year Policing to control litter shall be done on a regular basis for the removal of all paper, leaves, cans, bottles, tree branches, etc Excessive turf clippings shall be dispersed by a method of dragging, baskets, vacuumed or blown to ensure proper playable conditions are provided. STANDARD: Smooth, uniform turf cover, smooth mowing and trimming, firm but not hard, well defined turf that properly supports the ball for play. Divots filled, ground under repair areas marked, no wet spots or standing casual water. No weeds, disease, insects, rodents, or off-color areas. Hazards properly marked. Pro Forma Advisors, LLC Page 32 PFAID:

41 3. Fairways Rating Rating (1-5) Fairway Fairway Rating (1-5) Comments #1 #10 #2 #11 #3 #12 #4 #13 #5 #14 #6 #15 #7 #16 #8 #17 #9 #18 Total --- Subtotal Average* * Total score divided by 18. Pro Forma Advisors, LLC Page 33 PFAID:

42 4. Roughs CONTRACT: 2.15 Roughs Maintenance Maintain all turf in accordance with playability and industry wide standards as determined by the ACR, observing the following minimum standards: Mow one (1) time per week at a height of 1-1/2 inches, or a height as recommended by the Tenant and approved by the GSM Aerify all roughs at least one (1) time per year. The equipment used to aerify the fairways shall be Power take off (PTO)or self engine powered to enable a three (3) to five (5) inch coring depth (Toro Pro Core or equivalent), utilizing hollow tines, with a minimum ¾ inch hollow tine, as recommended by the Tenant and approved by the GSM. Aerification shall be scheduled in November of each year for the following year in conjunction with the GSM and golf professional. All aerification hole sizes and spoil locations shall be pre-approved by the GSM. Care should be taken to have as minimal disturbance to green surface from manual and equipment applications during aerification process. Cores shall be removed from the roughs Overseed and topdress (or resod) worn or bare turf areas as necessary Fertilization frequency, materials and analysis shall be determined from results of bi-annual soil nutrient level testing and growing conditions at the time of treatment. Fertilization shall occur a minimum of every six (6) weeks during the active growth season and every eight (8) week during the remainder of the year Treat turf to control weeds, disease, insects and other pests as necessary to maintain a healthy turf and eliminate weed infestation. STANDARD: Properly mowed and trimmed, clean of debris and adequately uniform for play. Distinct in height from fairways. Mowed at a height which allows player to find ball without undue delay of play. Perimeter fencing properly trimmed. Hazards and out of bounds clearly marked. Pro Forma Advisors, LLC Page 34 PFAID:

43 4. Roughs Rating Rough Rating (1-5) Rough Rating (1-5) Comments #1 #10 #2 #11 #3 #12 #4 #13 #5 #14 #6 #15 #7 #16 #8 #17 #9 #18 Total --- Subtotal Average* --- * Total score divided by 18. Pro Forma Advisors, LLC Page 35 PFAID:

44 5. Tees CONTRACT: 2.13 Tee Maintenance Maintain all turf in accordance with playability and industry wide standards as determined by the GSM, observing the following minimum requirements: Service tees daily by moving tee markers, removing trash and checking benches and ball washers. Change tee towels and water weekly and keep ball washers filled to proper level with water and appropriate cleaning agent. Tee markers shall be moved daily to healthy turf areas, placed at appropriate direction to play Mow tees two (2) times weekly with reel type mower, with baskets, at height of 1/2 inch or a height as recommended by the Tenant and approved by the GSM. All grass clippings will be collected and dispersed properly for playable conditions Aerify and topdress tees, with sand and mulch pre-approved by the GSM, at least two (2) times per year, or more frequently if needed, using the appropriate equipment with the minimum of interference to play. Aerification shall be carried out with a minimum of interference to play and plugs removed the same day. Aerification shall be scheduled in November of each year for the following year in conjunction with the Golf Professional and the GSM. All aerification hole sizes, with a minimum of 5/8 inch utilized, and spoil locations shall be pre-approved by the ACR. Care should be taken to have as minimal disturbance to tee surface from manual and equipment applications during aerification process Fertilization frequency, materials and analysis shall be determined from results of bi-annual soil nutrient level testing and growing conditions at the time of treatment. Under normal conditions, 0.25 to 0.75 pounds of actual nitrogen per thousand square feet shall be applied every six (6) weeks during the active growth season and every eight (8) weeks during the remainder of the year. Typically combinations of granular slow release type of materials may be utilized Repair worn and damaged turf areas as they occur by topdressing, over seeding or resodding to ensure playability at all times Tees shall be overseeded, with approved seed by GSM, following aerification and before topdressing at a rate of lbs. per thousand square feet of tee area Treat tees for control of insects, disease, weeds and other pests as necessary to maintain healthy turf Trash receptacles are to be emptied daily A sand and seed container, approved by the GSM, must be available on all Par 3 holes, for use in repairing divots. A container must be set at each respective set of tee markers for each hole. Tee divots shall be filled with sand and seed at a minimum of once per week on all holes and Pro Forma Advisors, LLC Page 36 PFAID:

45 twice per week on par 3 holes Ample score card and pencil supplies shall be kept in stock at the scorecard station between the No. 1 green and the No. 2 tee Tee yardage plaques, stations and signs shall be maintained and edged at all times Tee station items, such as markers, signs, trash cans, ball washers, etc. shall be in good condition and repaired or replaced as needed Recycle trash containers shall be utilized and all recyclable glass and plastic bottles and aluminum cans shall be collected and turned into appropriate recycle centers. STANDARD: Tees level, smooth, completely turfed, firm but not hard, clean of debris, properly directed, with amenities (trash receptacles, signs, tee markers, monuments, ball washers, towels, and divot mixture) and provide safe access for players and maintenance employees. No weeds, diseases, insects or rodents. Consistent top dressing. Pro Forma Advisors, LLC Page 37 PFAID:

46 5. Tees Rating Tee Rating (1-5) Tee Rating (1-5) Comments #1 #10 #2 #11 #3 #12 #4 #13 #5 #14 #6 #15 #7 #16 #8 #17 #9 #18 Total --- Subtotal Average* --- * Total score divided by 18. Pro Forma Advisors, LLC Page 38 PFAID:

47 6. Practice Range CONTRACT: None STANDARD: Artificial turf tee mats in good condition, rubber tees in-place, adequate and safe swing space. Balls in good condition and clean with convenient access to range balls. Landing areas covered with turf, clean and mowed for easy ball retrieval. 6. Practice Range Rating Area Practice Range Rating (1-5) Comments 7. Cart Paths CONTRACT: 2.22 Cart Path/Steps/Ramps/Walkways/Bridges To be swept or blown clean of debris every Friday or more often as needed Concrete paths to be edged and scraped clean a minimum of one (1) time per month, or as needed Tenant shall identify all potholes and/or other surface damage or defects to be repaired and report to City. The repair of such areas shall be the responsibility of the City, at City sole discretion. STANDARD: Cart paths are clear of all debris, clear of overhead and adjacent obstructions for safety of players and maintenance employees. Cart paths are edged and ground adjoining concrete edge are in good repair. Paths are smooth for safe cart operation and grades have sufficient traction for safe walking with spikes. Any voids or pot holes are filled. Pro Forma Advisors, LLC Page 39 PFAID:

48 Area Practice Range Rating (1-5) 7. Cart Paths Rating Comments 8. Trees and Shrubs CONTRACT: 2.2 Trees All tree trimmings shall be performed on a schedule approved by the GSM and in accordance with the tree, shrub and other wood plan maintenance pruning practices outlined by the American National Standards Institute, Inc. (ANSI). However, such trimming and pruning is a minimum level and shall not relieve Tenant of other responsibilities set forth herein Trees shall be pruned as required to remove broken or diseased branches. The Tenant shall develop a pruning program, which will promote proper tree scaffolding, strength, and appearance consistent with its intended use. Tenant shall prune trees to allow wind to pass through the tree, reducing and preventing a sail effect Trees located adjacent to vehicular and/or pedestrian traffic ways shall be maintained so as not to obstruct vehicle and/or pedestrian visibility and clearance Fertilization shall be scheduled as often as required to keep trees in a healthy and desirable condition as outlined in the pruning specifications. Avoid applying fertilizer to root ball or base of main stem; instead, spread evenly in area of drip zone Tree stakes, ties, and guys shall be checked and corrected as needed. Ties will be adjusted to prevent girdling. Remove unneeded stakes, ties, and guys as required. Re-stake trees, as required, using lodge pole stakes Prune trees along sidewalks and cart paths to allow ten (10) foot clearance for pedestrians Ailing or stunted trees, which fail to meet expected growth will receive additional nutrient treatments to correct any deficiencies Surface roots, which become maintenance or appearance problems, will be removed or additional soil and sod cover shall be placed as required to prevent damage to adjacent areas, mowers and golf carts. Pro Forma Advisors, LLC Page 40 PFAID:

49 2.2.9 Any tree requiring removal, at no fault of Tenant, shall be replaced by the Tenant, at City expense, with prior GSM approval. 2.3 Shrubs Prune shrubs to retain as much of the natural informal appearance as possible Shrubs used as formal hedges or screens shall be pruned as required to present a neat, uniform appearance Remove any spent blossoms or dead flower stocks as required to present a neat, clean appearance Plants growing over curbing and/or sidewalks shall be trimmed on a natural taper rather than vertical so as not to appear to be hedged Schedule the application of a commercial fertilizer as often as required to promote optimum growth and healthy appearance to all shrubs Any plant requiring removal shall be replaced by the Tenant. STANDARD: Pruned to maintain specimen health and safety to golfers and maintenance employees. Pruned and thinned to allow adequate sun and air circulation for proper turfgrass conditions. 8. Trees and Shrubs Rating Area Trees & Shrubs Rating (1-5) Comments 9. Water Features CONTRACT: None Pro Forma Advisors, LLC Page 41 PFAID:

50 STANDARD: Lakes, streams and ponds are clean with no algae growth, no noxious odors, no floating debris and controlled plant growth. Edges are well defined with hazard area clearly staked, with no marked erosion. Mowing and trimming around hazards is well defined. 9. Water Features Rating Area Water Features Rating (1-5) Comments 10. Traffic Control CONTRACT: None STANDARD: Traffic control devices such as stakes, ropes and signs are clean, orderly and placed in such a manner as to provide good directional advice. Placement of stakes and ropes is done to avoid worn areas at the beginning and ending of cart paths and for avoidance of greens, hazards and areas of ground under repair. 10. Traffic Control Rating Area Rating (1-5) Comments Traffic Control 11. Golf Course Restrooms CONTRACT (1.0): Golf Course Restrooms 1. Must be clean and stocked daily. 2. Operational and odor free. 3. No graffiti. 4. Lights operational. 5. No worn spots. 6. Lockable partitions. Pro Forma Advisors, LLC Page 42 PFAID:

51 STANDARD: Entry mat or carpet clean. Walls clean, toilet bowls, rims, tank tops, bodies and seats clean. Counter tops, wash basins and faucet fixtures clean. Mirrors clean and free of streaks, soap, towel, toilet paper and seat cover dispensers full. Light fitures clean and working. Bug and insect control dispenser clean and working. Air freshener supplied, trash container lined and reasonably empty. Floors clean, outside entry clean and well marked. 11. Golf Course Restrooms Rating Area Restrooms Rating (1-5) Comments Pro Forma Advisors, LLC Page 43 PFAID:

52 Comments and Corrective Actions Support Facility Evaluation Pro Forma Advisors, LLC Page 44 PFAID:

53 Date: Evaluator: CONTRACT: V. CLUBHOUSE / PRO SHOP A. Preparation and Appearance 1. The Tenant shall be responsible for the maintenance, cleaning, repair and general appearance of the clubhouse/pro shop (including the food and beverage portion), cart storage, maintenance building and golf shop. 2. All supplies, cleaning equipment and materials and paper goods shall be provided by the Tenant. 3. Cleaning and preparation shall be scheduled not to impact business operations. 4. Maintenance and repairs shall be conducted on a timely basis with minimal impact on business operations. B. Other Common Space 1. Tenant shall establish a quality standard and schedule and oversee performance of its employees or subtenants to: a. Vacuum carpets and clean as needed. b. Clean any provided exterior ash trays daily. No smoking will be permitted within the clubhouse/pro shop c. Empty waste baskets and clean daily. d. Sweep all building entrances daily. e. Dispose of all waste daily. f. Dust all desks, counters, chairs, file cabinets, tables and shelves daily. g. Clean baseboards weekly. h. Clean window glass in the doors inside and out as often as needed. Pro Forma Advisors, LLC Page 45 PFAID:

54 i. Clean all windows inside and outside monthly or more often as needed. j. Replace defective lamps in light fixtures as soon as possible after discovery. C. Merchandise Quality/Quantity 1. Tenant shall provide and maintain such inventory of golf merchandise as is deemed necessary by mutual consent of the Tenant and the City. 2. Tenant shall provide all fixtures necessary for the display and sale of merchandise. 3. The Tenant shall offer for sale only goods of premium quality consistent with the quality of goods sold at equivalent daily fee golf courses. 4. Inventory shall include at a minimum: clothing for men and women; equipment including, balls, gloves, tees, etc. 5. Tenant shall not offer for sale or rental any item of merchandise which the City deems objectionable or beyond the scope of the agreement. 6. Prior to commencement of operations, the Tenant will submit copies of its initial purchase orders and City will have the right to subsequently confirm receipt of goods ordered. D. Pricing 1. The Tenant shall have the right to charge competitive prices for the same or similar goods sold at equivalent quality, daily fee golf courses in the area consistent with the cost to provide such goods. 2. Prior to initial stocking and sale of golf shop inventory, the Tenant shall submit a price list to the City for approval. 3. Subsequently, if the Tenant wishes to materially change prices or the types of goods to be sold, Tenant shall submit a proposed general list of goods and suggested prices to the City for approval. This does not apply to items that are placed on sale to prevent inventory from becoming stale in accordance with a previously approved merchandising plan. 4. When an item has a suggested retail price pre-marked and established by the manufacturer or distributor, the Tenant shall not charge the public a price that is higher than the pre-marked price. 5. Prices for all items for sale shall be marked or displayed. 6. If in the opinion of the City, the Tenant is charging prices which discourage purchase of items offered for sale, the City may sample pricing for the same or similar goods at equivalent golf courses and Tenant shall reduce prices to a competitive level based upon validation of the City's data by the Tenant. 7. At the City's request, the Tenant shall discontinue sale of any item of merchandise on City finding(s) that the item(s) is not necessary or in the best interests of the City of the public. VI. GOLF AND OTHER SERVICES D. Rentals 1. The Tenant shall provide and maintain for rental an inventory of quality, recognized brand golf clubs (and cloth or vinyl bags) sufficient to meet player's demands. Pro Forma Advisors, LLC Page 46 PFAID:

55 2. The Tenant shall provide and maintain for rental a supply of pull carts sufficient to meet player's demands. 3. The Tenant will provide, at Tenant's sole cost,sufficent electrically-powered golf carts. Tenant will maintain an adequate number of this supply in a clean, fully-charged manner sufficient to meet player's demand. 4. Prior to commencing rental services, the Tenant will have submitted and the City will have approved a plan for pricing and use of rental equipment and any necessary documents. E. Practice Areas 1. The Tenant shall be responsible for the quality operation of the practice facilities providing and maintaining a sufficient number of artificial hitting mats, grass tees, putting green(s), sand and turf surfaces for the proper teaching and practice of all phases of the game. 2. The Tenant shall be responsible for maintaining a high quality and sufficient quantity of all elements used at the practice facilities including balls, hitting surfaces, landing area, cups and flags 3. Prior to offering access to practice facilities, the Tenant will have submitted and the City will have approved a plan for the use of the practice facilities and the pricing of fees, if any. 1. Clubhouse Exterior STANDARD: Parking lot striped, clean and free of debris and trash. Signage in place. Exterior clubhouse wall surfaces clean. Windows clean and paint in47 good condition. Clubhouse grounds well manicured, debris free, walkways clean and edged, flowers fresh and in colorful planter beds and debris free. Bag racks, shoe cleaners in good condition. Pro Forma Advisors, LLC Page 47 PFAID:

56 Component Parking Lot Clubhouse Exterior Surface Clubhouse Grounds Bag Racks/Shoe Cleaners Total Average (Total/4) Rating (1-5) 1. Clubhouse Exterior Rating Comments 2. Restrooms STANDARD: Entry mat or carpet clean. Walls clean, toilet bowls, rims, tank tops, bodies and seats clean. Counter tops, wash basins and faucet fixtures clean. Mirrors clean and free of streaks, soap, towel, toilet paper and seat cover dispensers full. Light fitures clean and working. Bug and insect control dispenser clean and working. Air freshener supplied, trash container lined and reasonably empty. Floors clean, outside entry clean and well marked. 2. Clubhouse Restrooms Rating Component Men s Women s Total Average (Total/2) Rating (1-5) Comments Pro Forma Advisors, LLC Page 48 PFAID:

57 3. Pub Interior STANDARD: Interior paint in good condition and clean. Walls and vents clean. Wall mounted pictures hung properly and clean. Carpet vacumed and spot free, and other floor surfaces clean and non-slip. 3. Pub Interior Rating Component Pub Interior Rating (1-5) Comments 4. Banquet Room Interior STANDARD: Interior paint in good condition and clean. Walls and vents clean. Wall mounted pictures hung properly and clean. Carpet vacumed and spot free, and other floor surfaces clean and non-slip. 3. Banquet Room Interior Rating Component Banquet Interior Rating (1-5) Comments 5. Golf Shop STANDARD: Merchandise hung and folded properly by color and size. Signage in place and clean. Carpet vacuumed and spot free, and floor clean. Windows and mirrors clean and streak free. Shelves, counter tops, base boards, window ledges dusted. Starter counter clean. Dressing room clean. Pro Forma Advisors, LLC Page 49 PFAID:

58 Component Golf Shop Interior Rating (1-5) 3. Golf Shop Interior Rating Comments 6. Golf Carts STANDARD: Seats clean and good repair. Floor mats clean and in good repair. Cart bodies and roofs clean. Cart storage area clean and free of unsafe obstructions. Chargers hung properly. 6. Golf Carts Rating Component Golf Carts Condition Cart Storage Area Total Average (Total/2) Rating (1-5) Comments 7. Property Entrance STANDARD: Signage and monuments clean, and in good repair. Landscaping trimmed. Fresh color plants. Trash and debris free. Directional signage adequate. Pro Forma Advisors, LLC Page 50 PFAID:

59 Component Property Entry Rating (1-5) 7. Property Entrance Rating Comments 8. Maintenance Facility STANDARD: All material and equipment storage contained within the fenced facility. Maintenance yard clean and organized. 8. Maintenance Facility Rating Component Maintenance Facility Rating (1-5) Comments Pro Forma Advisors, LLC Page 51 PFAID:

60 Secret Shopper Survey Pro Forma Advisors, LLC Page 52 PFAID: