HomeMy WebLinkAbout2015-11-12 Study Session - Desert Willow Golf Resort ................ CITY OF P11LM DESERT
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NOTICE OF STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene
Thursday, November 12, 2015, at 2:00 p.m. in the Administrative Conference Room of
the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California 92260,
for the purpose of conducting a Study Session. Said Study Session will be held in order
to discuss the Desert Willow Golf Resort.
RA HELLS D. KLASSE , CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
November 6, 2015
NO ACTIONS WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
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MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT(this "Agreement") is made and entered into this
1st day of July, 2013 by and among the CITY OF PALM DESERT, a charter city, organized and
validly existing under the Constitution and laws of the State of California(the "City"), the
PALM DESERT RECREATIONAL FACILITIES CORPORATION, a California nonprofit
public benefit corporation("PDRFC") and KEMPER SPORTS MANAGEMENT, INC., an
Illinois corporation("Kemper").
PRELIMINARY STATEMENT
A. The City is the owner of certain real property located in the City of Palm Desert,
California, which is improved with two 18-hole golf courses and related facilities (the "Golf
Resort"), as defined herein.
B. The City desires to utilize the services of Kemper to operate and manage the Golf
Resort, upon the terms and conditions set forth in this Agreement.
C. The City and the PDRFC have entered into that certain Lease Agreement dated as
of March 14, 1997, as amended(the"Lease Agreement")pursuant to which the City leases the
restaurant premises at the clubhouse to PDRFC.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the City,PDRFC and Kemper hereby agree as follows:
ARTICLE I
DEFINITIONS
1.1 Definitions. As used in this Agreement, the following terms shall have the
respective meanings indicated below:
Affiliate-Any and all corporations, partnerships, trusts, and other entities directly
or indirectly controlled by, controlling, or subject to direct or indirect common control of an
entity or person.
Capital Improvements - Any alteration, addition, improvement, repair,
replacement, rebuilding, or renovation to the Golf Resort, the cost of which exceeds $5,000.00.
Cause - The failure of any party to keep, observe or perform any material
covenant, agreement, term or provision of this Agreement to be kept, observed or performed by
such party.
City- The City of Palm Desert, a charter city, duly organized and validly existing
under the Constitution and laws of the State.
City Manager-The person holding the position of City Manager of the City.
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Compensation - The direct salaries and wages paid to or accruing for the benefit
of the management staff and all other persons employed by Kemper at the Golf Resort, together
with all fringe benefits payable to or accruing for the benefit of such employees, including
employer's contribution under the Federal Insurance Contributions Act("FICA"),
unemployment compensation, or other employment taxes, pension fund contributions, worker's
compensation, group life and accident and health insurance premiums, retirement,'disability and
other similar benefits; provided, however, compensation shall be in general conformity with that
paid at other golf courses operated by Kemper, taking into account geographic and project
specific differences, and industry standards.
CPI- The CPI shall mean the Consumer Price Index for All Urban Consumers for
the Los Angeles - Anaheim - Riverside area(1982-84 = 100), as published by the United States
Department of Labor, Bureau of Labor Statistics. Should the United States Department of Labor,
Bureau of Labor Statistics discontinue the publication of the CPI or publish the CPI less
frequently or vary the method of calculating the CPI, then the parties shall agree upon a
substitute index or substitute procedure which reasonably reflects and monitors consumer prices
and most closely matches the CPI initially provided herein.
Furnishings and Equipment - All furniture, furnishings, trade fixtures, apparatus
and equipment, including without limitation course maintenance vehicles and equipment, golf
carts, driving range pickers and pullers, mats, range ball baskets, cash registers, rental golf clubs
and bags, ball washers, benches, uniforms, kitchen equipment, appliances, china, glassware,
silverware, office equipment, computers, copy machines, facsimile machines, telephone systems
(not including pay telephones), and other personal property used in or held in storage for use in
the operation of the Golf Resort, other than Operating Inventory.
Golf Resort - The Golf Resort is the Desert Willow Golf Course at Palm Desert,
owned by the City and which includes two 18-hole golf courses, a clubhouse, pro shop, driving
range, maintenance facility and related facilities.
Golf Course Committee - The Golf Course Committee is the group of individuals
appointed by the City Manager. The composition of the Golf Course Committee may,from time
to time, be altered in size or membership by the City Manager.
Golf Resort Expenses - All costs and expenses incurred in the operation,
management, and maintenance of the Golf Resort, including (a) all expenditures incurred by
Kemper in the performance of its obligations under this Agreement on behalf of the City or
expenditures incurred by the City for the benefit of the Golf Resort; (b) all expenses specifically
identified as "Golf Resort Expenses" in this Agreement; and (c) all other expenses incurred by
Kemper in connection with the Golf Resort or this Agreement, which expenses were not
reasonably anticipated by the parties or otherwise provided in this Agreement and which
expenses, if assumed by Kemper, would be consistent with the role of a golf resort manager;
provided, however, any such unplanned expense which exceeds $5,000.00 must have prior
written approval from the City Manager, which approval shall be acted upon within 15 days and
shall not be unreasonably withheld. Golf Resort Expenses shall not include any expenses of
Kemper's corporate office or the Compensation of any employee of Kemper except as otherwise
provided in Section 3.4.3 of this Agreement.
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Gross Revenues - Gross Revenues has the meaning set forth in Section 6.3 hereof.
Impositions - All taxes and assessments (including without limitation real
property taxes and assessments, possessory interest taxes, and personal property taxes), water,
sewer or other similar rents, rates and charges, levies, license fees, permit fees, inspection fees
and other authorization fees and charges, which at any time may be assessed, levied, confirmed
or imposed on the Golf Resort or the operation of the Golf Resort.
Insurance Requirements - All requirements of each insurance policy, and all
orders, rules, regulations and other requirements of the National Board of Fire Underwriters (or
any other body exercising similar functions) applicable to the Golf Resort or the operation of the
Golf Resort.
Kemper- Kemper Sports Management, Inc. or any successor to Kemper's interest
under this Agreement as provided in Section 9.2 of this Agreement.
Key Employees - The on-site general manager, the golf course superintendent,
and the clubhouse manager, and director of food and beverage are Key Employees of Kemper.
Learning Center- The Learning Center is a free-standing facility, located adjacent
to the driving range, providing golf services to the Golf Resort independent of Clubhouse
facilities.
Legal Requirements - All laws, statutes, ordinances, orders, rules, regulations,
permits, licenses, authorizations, directives and requirements of all governments and
governmental authorities, which now or hereafter may be applicable to the Golf Resort or the
operation of the Golf Resort.
Operating Inventory- Consumable items used in or held in storage for use in the
operation of the Golf Resort, including score cards and cart tickets, driving range balls, golf pro
shop merchandise, food and beverage inventory,kitchen supplies, paper and plastic ware, locker
room and bathroom supplies, towels, fuel, cleaning materials, fertilizers, pesticides, seed,
maintenance parts and supplies, office supplies, and other similar items.
Operating Year- An Operating Year shall be a 12 month period during the term
of this Agreement commencing on July 1 and continuing through and including the following
June 30; provided, however, the first Operating Year shall commence on the Commencement
Date and shall end on June 30 of the next following year.
Resident- A Resident is a person whose primary residence is the City.
Restaurant- The restaurant shall mean each location at the clubhouse premises
and Golf Resort where the food & beverage operations occur, including selling of alcoholic
beverages at the restaurant, bars, banquets, outside catering and on-course food and beverage
operations.
State - The State of California.
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Threshold Amount- The term "Threshold Amount" is the amount set forth in
Section 6.2 hereof.
ARTICLE II
TERM OF AGREEMENT
2.1 Term.
A. The term of this Agreement shall commence on July 1, 2013 (the
"Commencement Date") and continue through July 1, 2016 (the"Termination Date").
Notwithstanding the foregoing, however, either party may terminate this Agreement for Cause at
any time by delivery to the other party of written notice (the"Initial Notice") 60 days prior to the
date of termination, which Initial Notice shall specify the Cause and provide for the action
required to remedy the Cause within 30 days of the notice (the "Cure Period"). If the non-
terminating party performs the required action to remove the Cause within the Cure Period to the
sole satisfaction of the terminating party, then this Agreement shall remain in full force and
effect. If the non-terminating party fails to remove the Cause to the terminating party's
satisfaction within the Cure Period, then this Agreement shall terminate on the specified date of
termination set forth in the Initial Notice. In addition, either party may terminate this Agreement,
in its sole and absolute discretion, on or after June 30, 2016, by delivery to the other party of
written notice 60 days prior to the date of termination.
B. The City, at its option, may extend the term of this Agreement for one year
by giving written notice of the exercise of such option to Kemper prior to January 1, 2016. In the
event of the exercise of such option by the City, all other terms of this Agreement shall remain
the same, except"July 1, 2017", shall be the new Termination Date in Section 2.1 A hereof. In
the event that the City exercises the option described above in this paragraph B, the City at its
further option, may extend the term of this Agreement for a second year by giving written notice
of the exercise of such option to Kemper prior to January 1, 2017. In the event of the exercise of
such second option by the City, all other terms of this Agreement shall remain the same, except
"July 1, 2018," shall be the new Termination Date in Section 2.1.A hereof.
ARTICLE III
OPERATING RESPONSIBILITIES
3.1 Management of the Golf Resort by Kemper. The City hereby contracts with
Kemper to manage and operate the Golf Resort pursuant to the terms of this Agreement, and
Kemper agrees it shall manage and operate the Golf Resort pursuant to the terms of this
Agreement. Subject to the terms of this Agreement, Kemper shall have the authority and
responsibility to: (a) determine, establish, and implement the policies, standards, and schedules
for the operation and maintenance of the Golf Resort and all matters affecting customer relations;
(b)hire, train, and supervise the general manager, course superintendent, and all Golf Resort
employees; (c) supervise and direct all phases of advertising, sales, and business promotion for
the Golf Resort; and(d) establish accounting and payroll procedures and functions for the Golf
Resort. The City agrees it shall cooperate with Kemper to permit and assist Kemper to carry out
its duties under this Agreement; provided, however, that the City Council's annual resolution
setting rates and the season schedule shall govern to the extent of its terms. All policies and
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procedures of Kemper relating to the Golf Resort including but not limited to those set forth in
clauses (a) through (d), above, shall be subject to the approval of the designee of the City and the
designee of the City may, from time to time, recommend other policies or procedures, which
Kemper shall follow and implement.
3.2 Annual Plans.
3.2.1 Preparation and Approval. Kemper shall submit to the City Manager on or
before execution of this Agreement by the City and on or before March 1, of the fiscal year the
annual plan(the "Annual Plan") for the Golf Resort for the next Operating Year. The Annual
Plan shall include an operating budget containing estimates of all Golf Resort Expenses for the
next Operating Year, including expenditures for(a) property operation and maintenance,
(b) repairs, replacements, and alterations which do not constitute Capital Improvements,
(c) Furnishings and Equipment and Operating Inventory, and (d) advertising, sales, and business
promotion. The Annual Plan shall also include the course maintenance plan and the marketing
and business plan for the Golf Resort for the next Operating Year. The parties agree that they
shall use their best efforts to limit any increase in Golf Resort Expenses during the term of this
Agreement to three percent(3%). The parties understand that, as provided in Article IV of this
Agreement, recommendations and budgets for Capital Improvements will be treated separately
and will not form part of the Annual Plan. The Annual Plan shall be subject to the prior written
approval of the City, which approval shall not be unreasonably withheld. The City agrees to
examine each Annual Plan submitted by Kemper and it is contemplated by the parties that the
Annual Plan will be agreed upon by the parties not later than July 1 of each year. Each Annual
Plan may contain a contingency item equal to five percent of the total projected Golf Resort
Expenses.
In the event of a dispute with regard to the Annual Plan, pending the resolution of
such dispute, Kemper shall continue to manage and operate the Golf Resort in accordance with
the standards set forth in this Agreement at a level of expenditures comparable to those of the
preceding Operating Year, plus up to an additional three percent(3%). This amount shall apply
to actual costs, not to the Fixed Management Fee described in Section 6.1.
3.2.2 Compliance. Kemper shall comply, to the extent reasonably and
commercially practicable, with the applicable Annual Plan. Kemper shall not spend for Golf
Resort Expenses in excess of the amount budgeted in the Annual Plan without the prior written
consent of the City Manager. Notwithstanding the foregoing sentence, Kemper shall be entitled
to make additional expenditures not authorized under the then applicable Annual Plan in the
event of an emergency or in order to comply with any applicable Insurance Requirements or
Legal Requirements.
3.2.3 Quarterly Review of Annual Plan. The general manager of the Golf Resort
shall meet not less frequently than quarterly with the City Manager and discuss the operating
results of the Golf Resort, and the parties shall agree upon any amendments or revisions to the
Annual Plan to take into consideration variables or events that did not exist, or could not be
anticipated by Kemper or the City, at the time the Annual Plan was prepared. Any material
amendments or revisions to the Annual Plan shall be subject to the prior approval of the City. In
addition to Quarterly Reviews of the Annual Plan with the General Manager, the senior
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leadership of Kemper Sports and City Staff will conduct a review at or around each mid-fiscal
year of the Term to discuss whether or not there may need to be a change in operating strategies
for the remainder of the fiscal year due to unforeseen market changes that might require an
adjustment to the Annual Plan. Further, if at any time during the fiscal year a material event
occurs which detrimentally harms the operations of the Golf Resort by resulting in a loss of
revenues or increase in expenditures in excess of 5% of the Budget, then Kemper shall meet with
the City Manager to present a plan to mitigate the financial and economic impact to the Golf
Resort. Both Kemper and the City agree to promptly implement appropriate contingencies,
policies and procedures to reasonably reduce the material loss of revenues or material increase in
expenses.
3.3 Responsibilities of Kemper. Without in any way limiting Kemper's right to
manage and operate the Golf Resort in accordance with the terms of this Agreement, Kemper
shall perform the following services, or cause the same to be performed for the Golf Resort, and
all expenditures of Kemper and costs and expenses incurred by Kemper in performing these
services shall be Golf Resort Expenses:
3.3.1 consummate arrangements with concessionaires, licensees, tenants of the
City or subtenants of the City, or other intended users of the Golf Resort;
3.3.2 enter into such contracts for the furnishing of utilities and maintenance
and other services to the Golf Resort, subject to the terms of Section 3.6 below;
3.3.3 make all repairs, decorations, replacements, additions, revisions,
alterations and improvements to the Golf Resort as shall be reasonably necessary for
maintenance of the Golf Resort in good order, condition and repair, subject to the terms of
Article IV of this Agreement;
3.3.4 incur such expenses as shall be necessary for the proper operation and
maintenance of the Golf Resort, including without limitation rental expenses for leased
Furnishings and Equipment;
3.3.5 maintain a level of Operating Inventory deemed appropriate by Kemper
and the City Manager for supplying the needs of the Golf Resort and its customers;
3.3.6 apply for, obtain and maintain, all licenses and permits required of
Kemper and the City in connection with the operation and management of the Golf Resort; and
the City agrees to execute any and all applications and such other documents as shall be
reasonably required and to otherwise cooperate, in all reasonable respects, with Kemper in the
application for, and obtaining and maintenance of, such licenses and permits; if licenses or
permits for the Golf Resort are held(or to be held) in the City's, or the Palm Desert Recreational
Facilities Corporation's name, then Kemper will assist City with obtaining and maintaining such
licenses and permits;
3.3.7 use commercially reasonable efforts to do, or cause to be done, all such
acts and things in and about the Golf Resort as shall be reasonably necessary to comply with all
Insurance Requirements and Legal Requirements;
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3.3.8 pay all Golf Resort Expenses, Impositions and insurance premiums,
whether incurred by the City or Kemper, when due;
3.3.9 implement a marketing, advertising, and promotional plan for the Golf
Resort;
3.3.10 purchase Furnishings and Equipment on behalf of the City necessary to
operate and maintain the Golf Resort in the manner provided in this Agreement.
3.4 Personnel.
3.4.1 General. Kemper shall recruit, hire, train, discharge, promote and
supervise the management staff of the Golf Resort(i.e., the general manager, the course
superintendent, and other Key Employees), and Kemper shall supervise through the management
staff the recruiting, hiring, training, discharge, promotion and work of all other employees of
Kemper at the Golf Resort. The general manager of the Golf Resort shall confidentially inform
the City Manager of all terminations and the reason therefor. All employees of Kemper at the
Golf Resort shall be properly experienced and qualified for their positions. Kemper may at its
expense assign its management trainees to the Golf Resort. From time to time, Kemper shall
provide safety training to its employees, including but not limited to training with respect to the
California Occupational Safety and Health Act. Kemper shall hire and maintain the Key
Employees, and the compensation of such Key Employees shall be at Kemper's expense.
3.4.2 Pension and Benefit Plans. Subject to written approval by the City
Manager, Kemper shall have the right to provide the non-management employees of the Golf
Resort with pensions and other employee retirement benefits and disability, health and welfare
benefits, and other benefit plans at customary levels now or hereafter available to similarly
situated employees of other golf courses and country clubs operated by Kemper, and the
allocable share of such employee benefits accrued while working at the Golf Resort shall be a
Golf Resort Expense.
3.4.3 Temporary Assignment of Other Kemper Personnel. If the positions of
Key Employees are not filled for whatever reason, Kemper may temporarily assign to these
positions the staff of other golf courses and country clubs operated by Kemper. During such time
as these employees are temporarily assigned to the Golf Resort, all such employees will be paid
their regular Compensation.
3.4.4 Management Staff. The general manager of the Golf Resort shall be
responsible for the day to day management and operation of the Golf Resort. The name and
telephone number (both home and business) of the general manager shall be provided, in writing,
to the City Manager and shall be current at all times. The general manager shall be reasonably
available during normal working hours to meet with the City Manager. After normal working
hours, the general manager shall be reasonably available to appear at the Golf Resort if deemed
necessary by the City Manager. The course superintendent for the Golf Resort shall be a member
in good standing of the Golf Course Superintendents Association. The director of golf for the
Golf Resort shall be a current Class "A" member in good standing of the Professional Golf
Association of America. The City Manager shall have the right to approve the individuals whom
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Kemper intends to hire to fill the positions of General Manager, Golf Course Superintendent
Clubhouse Manager, Director of Food & Beverage, and Controller.
3.4.5 Key Employees. It is understood and agreed by the City that the City shall
not employ, seek to employ or discuss employment opportunities with any Key Employees
during the term of this Agreement or for a period of two years after the termination of this
Agreement.
3.5 Specific Operating Procedures. In addition to the more general responsibilities of
Kemper as manager of the Golf Resort as provided in this Article, Kemper shall operate and
manage the Golf Resort in accordance with the following operating procedures:
3.5.1 Golf Resort Hours of Operation. Except upon the occurrence of the events
described in Article X of this Agreement, the Golf Resort shall be kept fully open to adequately
serve the public utilizing the Golf Resort, except for instances in which normal maintenance
requires temporary closure, as determined by Kemper and the City in such parties' reasonable
discretion. After seven days prior written notice to the City, the golf courses and the driving
range may be closed at the same time for winter overseeding. The inside food and beverage
services of the Golf Resort clubhouse shall be open all year, except as otherwise approved in
writing by the City Manager. The hours of food and beverage services in the clubhouse
restaurant shall be adequate to serve the general public, subject to the approval of the City
Manager. The City of Palm Desert will have the right to temporarily close parts of or the whole
Golf Resort, driving range, clubhouse, academy, and all other facilities for special use event(s)
with written notice to Kemper not less than 60 days prior to the date of such special event(s).
3.5.2 Fees and Charges. Kemper shall recommend, and the City shall establish
annually(or more frequently and in all cases consistent with resolutions and orders of the City
Council) all fees and charges for use of the golf course, golf carts, bag storage, club rental and
driving range. All other fees, charges, and prices for services at the Golf Resort shall be set by
Kemper and shall be comparative and competitive with other first class golf resorts in the
Coachella Valley.
3.5.3 Dress Code. Bathing attire, cut-offs and short shorts, halter tops, tube tops,
running outfits, and similar types of recreational wear are not considered proper dress on the golf
courses and shall not be permitted. Shirts and shoes shall be worn at all times at the Golf Resort.
This dress code shall apply to all visitors, golfers, and employees.
3.5.4 Handicap Service. During the term of this Agreement, Kemper shall
implement a United States Golf Association golf handicap service for golfers who patronize the
Golf Resort. Kemper shall make the necessary arrangements to implement such a handicap
system. The fee charged to golfers by Kemper for such handicap service shall be an annual fee
and shall not exceed two times the fee charged to the Golf Resort by Southern California Golf
Association or United States Golf Association, as the case may be, for providing the handicap
service. The handicap service shall not include as part of its benefits any privileges to use the
golf courses, other than the privileges otherwise available to the public.
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3.5.5 Starter Service and Marshals. Starter services shall be provided in the golf
pro shop, and shall include the assignment of tee times and carts and the collection of fees. While
the golf courses are open for play, marshals shall closely monitor and control the speed of play
and assist the slower golfers in order to maintain golf play at acceptable levels, in a manner to be
determined by Kemper in its reasonable judgment.
3.5.6 Club Cleaning. Golf club cleaning services shall be provided to golfers
immediately upon their completion of golf play. There shall be no charge to the golfers for golf
club cleaning services. Appropriate Golf Resort employees may accept gratuities from golfers
for such services.
3.5.7 Tee Times. The tee time schedule for the golf courses shall be
recommended by Kemper and approved by the City Manager. "Starter" tee times shall not be
reserved, and the starter shall not work in groups if it will result in not remaining "on schedule"
throughout the day.
3.5.8 Fivesome Play. It shall be the policy of the Golf Resort not to permit
fivesomes. However, Kemper may permit fivesomes, when appropriate (such as group or family
events), at its reasonable discretion and notify the City Manager in writing.
3.5.9 Tournaments. Consecutive tee times, shotgun starting formats, and
modified shotgun starting formats shall be acceptable forms of reservations for tournaments.
During the appropriate seasons and provided the weather conditions permit such an arrangement,
when a full shotgun(use of all 18 holes) starting procedure is used, it shall be timed in such a
manner so as to potentially accommodate two full shotguns per day- one in the morning and one
in the afternoon. In preparation for a tournament, Kemper shall, if necessary, prepare tee settings,
spectator areas, and tents for judges and players and shall mark hazards and damaged turf areas.
Kemper shall provide player identification cards for golf carts, and if necessary provide "closest
to the pin" and "longest drive" markers and scoring forms. If requested, Kemper shall arrange for
food and beverage services including box lunches and beverage carts. Kemper may charge a
separate fee if the tournament group wants any additional services, including but not limited to:
prior reservations, bag handling, merchandise, food and beverage services, scoring, shuttle
service between hotels and the Golf Resort, videotaping, portraits, shoe cleaning services, or club
cleaning services.
3.5.10 Golf Pro Shops. The golf pro shops shall be open for business in
accordance with the provisions of Section 3.5.1. Kemper shall employ a qualified person for the
golf pro shops, who will be responsible for promoting and increasing sales at the golf pro shops.
Kemper shall employ qualified personnel to work in the golf pro shops each day that the golf
courses are open for play. Merchandise that can reasonably be classified as "stale" or "unsalable"
may be marked down. If Kemper determines that any aged merchandise in the golf pro shops
should not be sold, whether on a discounted basis or otherwise, because of the reputation or
image of the golf pro shops, then with the approval of the City Manager, Kemper may purchase
with its own funds (and not from the Golf Resort Accounts) such merchandise at cost for
purposes of selling such merchandise at other golf courses operated by Kemper. Space shall be
provided in the golf pro shops for merchandise that the City may develop as part of its marketing
programs.
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3.5.11 Learning Center. Kemper may operate a Learning Center on the
designated Learning Center Area on the Golf Resort. The City shall have the right, at the City's
sole discretion, to re-purpose or close the Learning Center at any time upon 60 days' written
notice to Kemper.
3.5.12 Golf Instruction. Kemper shall either employ or shall retain as
independent contractors golf instructors to provide golf lessons and golf instruction at the Golf
Resort. All golf instructors must be certified Professional Golf Association or Ladies
Professional Golf Association golf professionals or apprentices, and shall be certified by the
director of golf at the Golf Resort. All golf instruction fees shall be handled as a cash register
transaction and reported in the same manner as green fees. Kemper shall develop a golf
instructional program that will offer individual and group lessons, video instruction, golf clinics,
junior golf clinics, and golf schools. This golf instructional program shall be used to complement
golf package promotions offered by the owner of the timeshare projects and hotels adjacent to
the Resort Course. A golf professional shall only be allowed to conduct golf lessons at the Golf
Resort if he or she has first obtained the approval to do so by Kemper; such approval may be
conditioned on payment of an appropriate fee.
3.5.13 Golf Driving Range. The driving range property shall be open in
accordance with the provisions of Section 3.5.1. The driving range building shall be staffed
appropriately by Kemper. Driving range balls shall be of reasonable and appropriate quality, and
all cracked and worn range balls shall be removed daily. A driving range fee shall be
recommended by Kemper and set by the City Manager.
3.5.14 Golf Club Rentals and Bag Storage. Rental golf clubs and bags shall be
available for customers of the Golf Resort. Storage space for golf bags shall be made available,
and bag tags shall be placed on all golf bags stored at the Golf Resort with the name of the player
printed on the bag tag. The fee for golf bag storage shall be recommended by Kemper and set by
the City Manager.
3.5.15 Golf Carts. Golf cart rentals shall be required for all golfers on the golf
courses. Kemper shall not permit the use of private golf carts on the golf courses. A minimum of
160 electrically powered golf carts per golf course shall be maintained at the Golf Resort. Golf
carts shall be new when acquired and shall be manufactured by a reputable firm. The entire golf
cart fleet shall be replaced with new units upon Kemper's recommendation and when approved
by the City Manager. All golf carts shall be four-wheel vehicles, and shall be equipped with
canopies, windshields, coolers, and sand and seed containers and holders. Kemper shall employ a
mechanic who is qualified to repair and maintain the golf carts or provide for third-party
maintenance through the golf cart lease agreement or an authorized manufacturer's
representative.
3.5.16 Food and Beverage Operations. The Golf Resort shall include a restaurant
located in the clubhouse and a snack bar. Temporary food stands shall not be installed on the golf
courses except for special events. If permitted by applicable law, with the prior written consent
of the City Manager, Kemper may establish an on-course cart food and beverage service.
Kemper shall comply with all requirements of state and local law governing the sale and
distribution of alcoholic beverages. Kemper shall obtain and maintain all permits from the
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County of Riverside Department of Health for all food and beverage operations at the Golf
Resort. Kemper shall obtain all necessary licenses required for operation of the restaurant and
snack bar. Kemper shall comply with all regulations of the County of Riverside Department of
Health and all other present and future health laws and regulations as may be established by all
federal, state, and local governmental agencies and their instrumentalities. All food service
employees shall possess valid food handler cards, and a copy of these cards shall be maintained
in the administrative office at the Golf Resort. Kemper shall comply with the City's municipal
code and state and federal law as it relates to health and disease testing as now or hereafter
required by applicable law, for all food and beverage employees. Prices of food and beverages
sold at the Golf Resort shall be comparable to prices charged at other first class golf resorts in the
Coachella Valley.
3.5.17 Office Operations. Kemper shall employ an administrative staff at the
Golf Resort to accomplish the administrative functions as required by this Agreement. The Golf
Resort shall be equipped with all necessary equipment to allow for the efficient administration of
the Golf Resort business. Upon the written request of the City Manager, Kemper shall provide
the City with a written job description for each management position at the Golf Resort. The City
shall keep these job descriptions in strict confidence, subject to applicable public records
disclosure laws.
3.5.18 Safety and Security. Kemper shall take all commercially reasonable action
to cause the Golf Resort to comply with all safety regulations of federal, state, and local
governmental agencies and their instrumentalities, including without limitation any requirements
imposed by California Labor Code Sections 1720 et seq. and 6300 et seq. and regulations
promulgated with respect thereto, and applicable federal occupational, health, and safety laws
and regulations. Kemper shall take all reasonable actions to protect the safety of all Golf Resort
employees, customers and visitors. The Golf Resort shall contain appropriate security systems as
determined by Kemper and the City Manager. Kemper shall keep for 60 days computer back-up
tapes for all accounts payable and accounts receivable information. All records at the Golf Resort
shall be kept by Kemper in fireproof files.
3.5.19 Customer Forms. Forms shall be visible and readily available to customers
of the Golf Resort to present their comments or complaints regarding the Golf Resort. Completed
forms shall be made available to the designee of the City upon request.
3.6 Contracts and Agreements. Except as provided below, all leases and financing
agreements for Furnishings and Equipment, and all contracts and agreements relating to the
operation and maintenance of the Golf Resort (including without limitation golf professional
contracts, contracts for maintenance and repair services, pest control, supplies, and landscaping
services, and agreements for tournaments, banquets, and other group functions), entered into
during the term of this Agreement shall be entered into by Kemper as the contracting party, on
behalf of the City unless mutually agreed upon to the contrary. If the term of the lease, financing
agreement, or other contract or agreement extends beyond the expiration date of this Agreement
or if the date for performance under such contract is after the expiration date of this Agreement,
then the City (and not Kemper) shall be the contracting party to such contract. The preceding
sentence shall not apply to agreements for tournaments, banquets, and other group functions to
take place after the expiration date of this Agreement, and such agreements shall be entered into
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by Kemper on behalf of the City. Upon the expiration or earlier termination(for whatever
reason) of this Agreement, the City agrees to assume all contracts and agreements entered into in
accordance with this Section 3.6.
3.7 Alterations to Buildings. Kemper shall not make any alterations, additions, or
changes to the exterior appearance or the structural nature of the clubhouse, golf pro shop,
maintenance building, or other buildings located at the Golf Resort without the prior consent of
the City.
3.8 Operation and Maintenance Standards. The parties acknowledge and agree that
the Golf Resort shall be operated and maintained as a first class golf resort. In addition to all
other responsibilities of Kemper under this Agreement, Kemper agrees that at all times during
the term of this Agreement, the Golf Resort shall be operated and maintained in accordance with
the Standards for Operation and Maintenance set forth as Exhibit"A" of this Management
Agreement. The City Manager, may, from time to time, inspect the Golf Resort for purposes of
compliance with the terms of this Section 3.8. The City Manager, shall act reasonably and in
good faith in making the determination whether the Standards for Operation and Maintenance
have been satisfied, and if not, the City Manager shall provide Kemper with a list of written
deficiencies. Kemper shall correct such deficiencies within 30 days of receipt of such written list
of deficiencies.
In particular, Kemper is aware that there is a concern with respect to the maintenance of
the "desert-scape" portion of the Golf Course, and maintenance standards for the desert-scape,
which are now on file in the office of the City Clerk, shall be included with such Standards.
Except as provided below, if a particular Corrective Action Item has not been corrected,
improved, or repaired within 30 days after receipt of the report containing the Corrective Action
Item, then the City shall have the right to declare a default hereunder and terminate this
Agreement. The following items shall be excluded from the Evaluation Form for purposes of
determining whether a Corrective Action Item has been corrected, improved, or repaired within
such 30 day period: (a) any outstanding Corrective Action Item that Kemper is diligently and
timely correcting in accordance with the time schedule jointly prepared by the City Manager and
the general manager of the Golf Resort, as provided above, (b) any item in disagreement between
the parties as provided in the immediately following paragraph, (c) any Corrective Action Item
in which the correction, improvement, or repair is considered a Capital Improvement, and
(d) any Corrective Action Item that Kemper is unable to correct, improve, or repair because of
the occurrence of a"Force Majeure Event" (as defined in Section 10.3 of this Agreement).
In the event Kemper disagrees with the results of any Evaluation Form or in the event the
parties disagree as to whether any Corrective Action Item has been properly or timely corrected,
improved, or repaired, then the parties shall submit the matter in disagreement to the City or Golf
Course Committee. The parties agree that Kemper shall comply with the recommendations made
by the City or Golf Course Committee as to the correction, improvement, or repair of any
Corrective Action Item in accordance with Kemper's responsibilities under this Agreement. With
regard to any matter in disagreement, during the period of time that such matter has been
submitted to the City Manager as provided above, the penalty applicable to such matter shall be
suspended until such matter has been finally resolved and no additional damages for such matter
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shall accrue during the period of time that such matter has been submitted to the City. If Kemper
does not agree with the recommendation of the City or Golf Course Committee, then Kemper
and the City shall, within 15 days after the date of the recommendation, select an independent
third party to make such decision. If Kemper and the City cannot agree on such third party, then
the matter shall be submitted to the local Judicial Arbitration and Mediation Services office for
resolution.
3.9 Contract Administration. The City has designated the City Manager as the
individual who is responsible for administering this Agreement on behalf of the City. The City
Manager may designate any member or members of his or her staff or other person to carry out
the City Manager's responsibilities in administering this Agreement. Kemper has designated
James R. Stegall, Executive Vice-President, as the individual who is responsible for
administering this Agreement on behalf of Kemper. Kemper shall notify the City in writing if
another individual has replaced James R. Stegall as the person responsible for administering this
Agreement on behalf of Kemper. The parties acknowledge that except as otherwise expressly
provided herein(a) the City Manager has the authority to approve or consent to those matters
identified in this Agreement as requiring the City's approval or consent and to make all other
decisions on behalf of the City regarding the administration of this Agreement(except where
approval by the City Council is expressly required herein), and (b)James R. Stegall or such other
individual designated by Kemper has the authority to approve or consent to those matters
identified in this Agreement as requiring Kemper's approval or consent and to make all other
decisions on behalf of Kemper regarding the administration of this Agreement. The City's
management direction to Kemper shall be given by the City Manager.
3.10 Meetings with Golf Course Committee. The General Manager of the Golf Resort
shall attend all meetings of the Golf Course Committee and discuss all standards, changes,
policies and other matters required to be discussed.
3.11 Compliance with Environmental Laws. In performing its responsibilities under
this Agreement, Kemper shall comply with all federal, state, and local laws and regulations
pertaining to the storage, use, and disposal of"hazardous or toxic wastes, substances, or
materials" as defined by applicable law, to the extent such"hazardous or toxic wastes,
substances, or materials" are within Kemper's control or under Kemper's management. The City
shall not exercise any remedies to terminate this Agreement in the event of non-material breach
hereof Kemper agrees to indemnify the City for any costs, fees, fines or losses that may result
from environmental contamination or natural resource damage on the subject property if caused
by Kemper's performance in storing, using or disposing of hazardous or toxic substances or
materials or wastes such as, but not limited to, herbicides, pesticides, algicides or other water
treatment chemicals. The City acknowledges and agrees that the City shall be responsible for any
legal or other liability or damage arising out of the presence of environmental contamination or
natural resource damage on the subject property by any cause other than Kemper's performance
in storing, using or disposing of hazardous or toxic substances or materials or wastes such as, but
not limited to, herbicides, pesticides, algicides or other water treatment chemicals.
3.12 Cooperation with other City Agreements. Kemper agrees to honor and cooperate
with the City in all agreements between the City and third parties concerning the use of the Golf
Resort, including agreements by which the City offers special privileges to Residents of the City
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of Palm Desert, to owners of interests in the timeshare development adjacent to the Golf Resort,
and to guests of any hotels adjacent to the Golf Resort. To the extent that such agreements
impact on the operation of the Golf Courses, Kemper shall have the right to review and comment
on such agreements prior to their approval by the City. The City may approve or disapprove of
any such agreements in its sole and absolute discretion.
3.13 Radius Restriction. During the Term of this Agreement, neither Kemper nor any
affiliate or subsidiary of Kemper shall manage, own or operate another golf course within a 20
mile radius of the Golf Resort, without first obtaining the City's prior written consent.
3.14 Good Standing. Kemper shall be a management company recognized in the golf
course management community as a first-class manager of high-quality golf courses and shall be
authorized to conduct business in the City.
ARTICLE IV
CAPITAL IMPROVEMENTS
4.1 Capital Improvement Plans. Kemper shall submit to the City on or before April 1
of each year during the term of this Agreement, commencing a"Capital Improvement Plan" for
the Golf Resort for the next Operating Year, which shall include Kemper's recommendation of
Capital Improvement projects for the next Operating Year and the estimated costs of such
Capital Improvement projects.
4.2 Implementation of Capital Improvement Projects. The parties acknowledge and
agree that all Capital Improvement projects are in the sole control and discretion of the City, and
all costs and expenses of Capital Improvement projects shall be paid from City funds. The costs
and expenses of Capital Improvement projects shall not be considered Golf Resort Expenses.
The parties acknowledge and agree that this Agreement imposes no responsibilities or
obligations on the part of Kemper with respect to any aspect of a Capital Improvement project,
including design, construction, or supervision. In the event the City desires Kemper to be
involved in any capacity in a Capital,Improvement project, the parties will enter into a separate
agreement setting forth the terms and conditions of such involvement, including without
limitation fees to be received by Kemper for such involvement.
ARTICLE V
INSURANCE
5.1 Coverage. Kemper agrees to procure and maintain, on behalf of the City as a Golf
Resort Expense, at all times during the term of this Agreement, a minimum of the following
insurance:
5.1.1 insurance on the contents of the buildings located at the Golf Resort and
other personal property located at the Golf Resort, which contents and personal property are
owned or leased by the City or Kemper, against loss or damage by fire, lightning and/or any
other perils insurable under the form of"all risk" coverage then available(including specifically
irrigation and/or sprinkler system leakage damage, vandalism and malicious mischief, if
available), in an amount no less than$5,000,000 or such other amount as the parties may agree in
writing. The City and the Agency shall be named as a loss payees. The parties agree that Kemper
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shall not be responsible for procuring or maintaining"all risk" insurance coverage on the
buildings, structures, or other improvements located at the Golf Resort, and the City shall either
procure or maintain such insurance coverage or shall self-insure for such risks.
5.1.2 if requested by the City in writing or by electronic mail, if available,
business interruption insurance related to contents damage only covering actual losses to the
contents sustained due to fire, lightning and other perils insurable under the form of"all risk"
coverage then available (including specifically irrigation and/or sprinkler system leakage
damage, vandalism and malicious mischief, if available) in an amount equal to the annual value
of lost business. The City and the Agency shall be named as a loss payees to the extent of the
their interests under this Agreement.
5.1.3 commercial general liability insurance including without limitation bodily
injury, personal injury, property damage, advertising injury, products liability, contractual
liability, and liquor liability, in an amount not less than$10,000,000.00 single limit per
occurrence. Defense costs must be paid in addition to limits. This insurance shall be primary and
non-contributing insurance for the work performed. The City, PDRFC, the Agency and their
officers, officials, employees, agents, representatives, and volunteers (collectively, "City
Personnel"), shall be named as an additional insureds. Coverage for the additional insured shall
not be limited to its vicarious liability. If excess or umbrella liability insurance is used to meet
the limits, the policy shall provide coverage as broad as specified for the underlying coverages.
Such excess or umbrella policies shall include as insured those of the underlying policies,
including additional insureds. Such policies shall have defense costs payable in addition to policy
limits.
5.1.4 automobile liability insurance in an amount not less the $10,000,000.00
single limit per occurrence. This insurance shall be primary and non-contributing insurance for
the work performed. The City and the Agency shall be named as additional insureds.
5.1.5 workers' compensation insurance covering all Golf Resort employees who
are Kemper's employees in an amount of$1,000,000, and employer's liability insurance in an
amount of$1,000,000 covering all Golf Resort employees who are Kemper's employees.
Kemper shall have the right to increase(but not to decrease without the prior
written consent of the City) the minimum amount of any insurance to be maintained by Kemper
with respect to the Golf Resort under this Section 5.1 in order to make such coverage comparable
to the amount of insurance carried with respect to other golf courses and country clubs operated
by Kemper, taking into account the size, character, and location of the Golf Resort. The types of
insurance and the coverage amounts specified in this Section 5.1 are the requirements of the City
in connection with the operation of the Golf Resort. The City acknowledges and understands that
Kemper has made no representations or warranties that such insurance is adequate to protect the
City or the Agency. Any losses, damages, liability, or expenses that may not be covered by any
of the insurance specified in this Section 5.1 shall be a Golf Resort Expense.
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5.2 Policies and Endorsements.
5.2.1 Policies. All insurance coverage provided for under Section 5.1 above
shall be secured through policies issued by insurance companies of good reputation and of sound
and adequate financial responsibility having a general policy holder's rating of not less than"A-"
and a financial rating of not less than Class VIII in the most current edition of Best's Rating
Guide, unless such requirements are waived in writing by the City. Such insurance companies
shall be qualified to do business and in good standing in California. Prior to the Effective Date,
Kemper shall deliver to the City certificates of insurance with respect to all of the policies of
insurance to be maintained by Kemper pursuant to Section 5.1 and the City shall have approved
(which approval shall not unreasonably be withheld) such certificates of insurance. In the case of
insurance about to expire, Kemper shall deliver to the City certificates of insurance with respect
to renewal policies not less than ten days prior to the respective dates of expiration. All
certificates of insurance shall be signed by a person authorized by the insurance company to bind
coverage on its behalf. In the event any subcontractors perform work for Kemper under this
Agreement, Kemper shall include such subcontractors as insureds under the policies of insurance
to be maintained by Kemper pursuant to Section 5.1 or in the alternative, Kemper shall obtain
from such subcontractors separate certificates of insurance that satisfy the requirements of
Section 5.1 unless otherwise waived by the City. Neither the procuring of insurance by Kemper
pursuant to Section 5.1 nor the delivery by Kemper to the City of certificates of insurance
evidencing such insurance coverages shall be construed as a limitation of Kemper's indemnity
obligations under Section 11.3.1 of this Agreement.
5.2.2 Endorsements. All policies of insurance to be maintained by Kemper
pursuant to Section 5.1 shall, to the extent obtainable, have attached an endorsement that such
policy shall not be canceled or materially changed without at least 30 days prior written notice to
the City by certified mail, return receipt requested. If such endorsement is not obtainable from
the insurer(s), Kemper shall provide to the City the required 30-day prior written notice in the
manner set forth in this Section 5.2.2.
5.2.3 Blanket Policies. Any insurance policies provided by Kemper under this
Article V may be effected under policies of blanket insurance which cover other properties in
addition to the Golf Resort, and in such case an allocable portion of the premiums for such
blanket policies of insurance shall be considered a Golf Resort Expense.
5.2.4 Workers Compensation Insurance. Prior to the Effective Date, Kemper
shall deliver to the City a certificate of workers compensation insurance indicating that such
insurance complies with all requirements of California law. Such policy shall not be cancelled or
materially changed by Kemper without the City's approval, which shall not be withheld
unreasonably. Kemper shall require all subcontractors performing work for Kemper under this
Agreement to maintain workers compensation insurance covering such subcontractors'
employees. Prior to the Effective Date, Kemper shall file with the City the following signed
certification:
"The undersigned is aware of, and will comply with,
Divisions 4 and 5 of the California Labor Code by securing, paying
for, and maintaining in full force and effect for the duration of the
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Agreement, complete workers compensation insurance, and shall
furnish a certificate of insurance to the City prior to the
commencement of the term of the Agreement."
The City, the Agency, and the City Personnel shall not be responsible for any
claims in law or equity occasioned by the failure of Kemper to comply with this Section 5.2.4 or
with the provisions of California law relating to workers compensation insurance.
5.3 Waiver of Subrogation. Neither Kemper nor the City shall assert against the other,
and Kemper and the City hereby waive with respect to each other, any claims and rights of
recovery for any losses, damages, liability or expenses (including attorneys' fees) incurred or
sustained by either of them on account of injury to persons or damage to property arising out of
the ownership, operation, and maintenance of the Golf Resort to the extent that the same are
covered by the insurance required to be obtained(or self-insured) under this Article V. The City
and Kemper hereby grant to each other, on behalf of any insurance company providing insurance
covering the Golf Resort, a waiver of any right of subrogation which any insurer or party may
acquire against the other party by virtue of payment of any loss under any insurance policy. The
City and Kemper shall give notice to the insurance companies providing insurance under this
Agreement of the mutual waiver of subrogation contained in this Section 5.3.
5.4 Insurance Maintained by Kemper. Any insurance maintained by Kemper under
this Article V may contain deductible provisions and self-insurance or self-assumption
provisions in such amounts as are approved by the City Manager. The parties acknowledge and
understand that as of the Effective Date the following applies to insurance to be maintained by
Kemper: (a) $5,000.00 deductible per occurrence for property damage insurance, and
(b) $250.00 self-insured retention per occurrence for comprehensive public liability insurance,
automobile liability insurance. The City understands and agrees that with respect to all policies
of insurance required under this Article V, the portion of any claim, loss, or damage subject to a
deductible amount or a self-insurance or self-assumption amount shall be a Golf Resort Expense.
Kemper shall obtain the City's consent in writing of the City Manager at least 30 days prior to
any increase in the deductible amount or self-insured or self-assumed amounts for the insurance
coverage maintained by Kemper under this Article V. Any failure to comply with reporting or
other provisions of the policies including breach of warranties shall not affect coverage provided
to the City, the Agency and City Personnel.
5.5 Claims Review Procedures. Kemper and the City shall mutually establish a claims
review process for the coordination of all claims under this Article V.
ARTICLE VI
MANAGEMENT FEES TO KEMPER
6.1 Fixed Management Fee. For the period from the date of this Agreement to the
expiration of the Term, Kemper shall receive a"Fixed Management Fee" of sixty-five thousand
seven hundred fifty dollars ($65,750) per month.
The Fixed Management Fee shall be paid monthly, in advance, on the first day of each
calendar month. Any fixed management fee owing at the expiration or early termination of this
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agreement or resulting from correction of errors or adjustments shall be paid concurrently with
the delivery to the City of the final statements per section 7.7.2 hereof.
6.2 Percentage Management Fee. In addition to the Fixed Management Fee, for the
period from the date of this Agreement to the expiration of the Term, Kemper shall receive a
"Percentage Management Fee" equal to five percent(5%) of the amount by which the Gross
Revenues of the portions of the Golf Resort operated by Kemper exceeds the Threshold Amount;
provided that in no event shall the Percentage Management Fee in any one Operating Year
exceed One Hundred Seventy-Five Thousand Dollars ($175,000) ("Percentage Management Fee
Cap"). Notwithstanding the above or the Threshold Amount below, the Percentage Management
Fee Cap shall increase by three percent (3%) per Operating Year of the Term. The Threshold
Amount is the sum of$6,500,000.00.
The Percentage Management Fee shall be paid to Kemper annually, in arrears, within 45
days following Kemper's delivery to the City of the annual statement required by Section 7.7.2,
below, and shall be based on the Gross Revenues for the Operating Year covered by such
statement.
In the event of any corrections to any monthly or annual statements, the parties shall
promptly make the necessary adjustments between themselves.
Any Percentage Management Fee owing as of the expiration or earlier termination of this
Agreement shall be payable concurrently with the delivery to the City of the final statement per
Section 7.7.2 hereof.
6.3 Gross Revenues Defined. For the purpose of determining the Percentage
Management Fee, the term"Gross Revenues" means all money received as a result of the
operation of the Golf Resort and the sale of goods and services at the Golf Resort, determined on
a cash basis in accordance with generally accepted accounting principles consistently applied.
Gross Revenues shall include all green fees; rental fees for golf carts, golf clubs and bags, and
other rental items; bag storage fees; range balls; reservation fees; fees for golf handicap service;
rental and concession payments; food and beverage sales; liquor sales; revenue generated from
space rentals and from meetings, banquets, parties, receptions, tournaments, and other group
gatherings; merchandise sales; golf instruction fees; and revenues received by the City from golf
schools operated by the City or Kemper. The following shall be excluded from Gross Revenues:
6.3.1 Cost of goods returned to suppliers.
6.3.2 Monies and or credits received in settlement of claims for loss or damage
to goods, wares, food, or merchandise.
6.3.3 Compensation paid to golf pros providing lessons and related services.
6.3.4 Revenues from the Learning Center, unless operated by Kemper.
6.3.5 The amount of cash refunded or credit allowed on merchandise or gift
certificates returned by customers, or the amount of cash refunded or credit allowed in lieu of
Kemper's acceptance therefor.
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6.3.6 Receipts in the form of refunds from, or the value of merchandise,
supplies or equipment returned to, shippers, suppliers or manufacturers.
6.3.7 Credit card carrying charges.
6.3.8 All sales taxes, admissions taxes, use taxes, so-called luxury taxes,
entertainment taxes, value added taxes, excise taxes, gross receipt taxes, and similar taxes,
whether imposed under any existing or future rules, regulations, laws or ordinances, upon the
sales of food, beverages, merchandise or services, and whether or not added to or included in the
selling price;
6.3.9 Delivery charges.
6.3.10 Interest, service or sales carrying charges paid by customers for extension
of credit on sales.
6.3.11 Any receipts from the transfer of goods, wares or merchandise from the
Golf Resort to any other store owned by the City.
6.3.12 Bad debts and bad checks.
6.3.13 Proceeds of insurance, except business interruption insurance proceeds.
6.3.14 Receipts from vending machines, telephones, lottery ticket sales, stamp
machines, and the like.
6.3.15 Receipts from sales to employees at a discount.
6.3.16 Proceeds from the sale of fixtures or equipment or of all or of a substantial
part the stock-in-trade and merchandise at a sale other than at retail, or the sale of the business as
a whole.
6.3.17 Proceeds from the bulk sale of any merchandise(i.e., a sale not made in
the ordinary course of business).
6.3.18 Gross receipts received by licensees or concessionaires, except to the
extent any portion of such receipts is received by the Golf Resort.
6.3.19 The amount of any gratuities paid or given by customers to Golf Resort
employees, or service charges added to customer billings which represent gratuities to Golf
Resort employees.
6.3.20 Proceeds of any borrowings by Kemper or the City.
6.3.21 Any amount received by Kemper in connection with any claim, demand,
or lawsuit.
6.3.22 Initial operating funds in the Golf Resort Accounts and funds subsequently
provided by the City, if any.
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ARTICLE VII
ACCOUNTS; WORKING FUNDS; DISBURSEMENT OF FUNDS;
RECORDS AND REPORTS
7.1 Golf Resort Accounts.
7.1.1 The City shall cause to be established bank accounts for the Golf Resort
(including a "Capital Reserve Account" to be used for approved capital expenditures) at a
banking institution or institutions (which banking institution or institutions shall have branches
located in the City and in close proximity to the Golf Resort), such accounts to be in the City's
name or the City's name (collectively the "Golf Resort Accounts"). Kemper will collect and
deposit daily in the Golf Resort Accounts designated by the City all monies received from the
operation of the Golf Resort. There shall be on deposit the sum of$500,000, which shall be
maintained, as described in more detail in Section 7.4. Kemper shall have check writing
privileges with respect to the Operating Account, subject to a limit of$5,000.00 per check, for
the purpose of disbursement of the payment of Golf Resort Expenses as set forth in Sections 7.3
and 7.4 below. The City shall have the right to require additional controls on check writing
privileges. Notwithstanding the provisions of the foregoing sentence, subject to the City's
approval, Kemper shall be entitled to maintain funds in reasonable amounts in"cash register
banks" or in petty cash funds at the Golf Resort.
7.1.2 All revenues generated by the Golf Resort shall be the property of the
City. Revenue collection procedures shall be in accordance with the method approved by the
City. The deposit shall be made with the bank no later than the next business day following the
date on which the revenues are collected. A duplicate copy of the deposit receipt identifying the
amount collected by Kemper and its deposit with the bank shall be delivered by Kemper(or
designated representative)to the City Manager at the address set forth below, on a weekly basis,
or, at the option of the City, Kemper shall provide the City with a weekly bank deposit report via
a computerized "on-line"reporting system.
7.1.3 Until such monies or other things of value have been deposited in the
City's account and verified by the bank in accordance with this Agreement, Kemper bears all
risk of loss therefore, including, but not limited to, damage, destruction, disappearance, theft,
fraudulent or any dishonest or unlawful act, or other hazard, irrespective of location and whether
by Kemper's employees or any other person or entity. Should such an event or act occur,
Kemper shall notify as soon as possible the City Manager and the County Sheriff and Kemper
shall prepare a report of such incident. Kemper shall notify the City of any operational changes
deemed necessary by Kemper to safeguard the City's monies or things of value.
7.1.4 Kemper shall require of the bank holding the City's funds that all funds be
secured to such an extent and in such a manner as is required by applicable law in connection
with the deposit of funds of a public entity.
7.2 Accounting System. Kemper shall design, establish, implement and maintain
procedures for the accounting and control of the revenues from the time of their collection by
Kemper to the time of deposit at the bank. This shall include a system of internal controls to
account for all gross revenues. Such procedures shall include each of the accounting and cash
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control processes identified recommended by Kemper and approved by the City Manager, which
approval shall not unreasonably be withheld.
7.3 Disbursements from Operating Account. From the Operating Accounts (or, if
applicable, from"cash register banks" or petty cash funds available at the Golf Course), Kemper
is authorized to pay all Golf Resort Expenses when incurred, except for fees due to Kemper
under Sections 6.1 and 6.2, which shall be paid by the City from other Golf Resort Accounts.
7.4 Operating Accounts. Kemper shall maintain at all times, in the reasonable
judgment of the City and Kemper, sufficient funds in the Golf Resort Accounts to satisfy the
daily working capital needs of the Golf Resort, including the timely payment of Golf Resort
Expenses. To this end, upon the commencement of the Term hereof, the City shall deposit into
the Golf Resort Accounts the amount of$500,000. If at any time, or from time to time, the Golf
Resort Expenses are greater than the operating income of the Golf Resort, to the point that funds
equal to less than the amount of$500,000 are on deposit in the Golf Resort Accounts, then
Kemper shall advance into the Golf Resort Accounts, monthly, within 15 days after the last day
each calendar month, an amount sufficient to restore the Golf Resort Accounts to an amount
equal to $500,000. All net operating income shall be retained in the Golf Resort Accounts until
the Golf Resort Accounts are restored to an amount equal to $500,000; and after the Golf Resort
Accounts have been restored to an amount equal to $500,000, then the next amounts of net
operating income shall be used to reimburse Kemper for any unreimbursed amounts that Kemper
advanced to the Golf Resort Accounts pursuant to the preceding sentence. To the extent that the
Golf Resort has annual capital expenditures under Section 4.2 to be paid from the Golf Resort
Accounts, the maximum amount to be disbursed from the Golf Resort Accounts shall not exceed
$100,000 annually. Any capital expenditures under Section 4.2 in excess of$100,000 annually
will be credited to the $500,000 minimum set forth in the Golf Resort Accounts under this
Section 7.4. The City shall have the right to withdraw and retain any net operating income in
excess of the amounts required for maintaining the Operating Accounts or reimbursing Kemper
as described in this Section. The City shall pay to Kemper on May 15 of each year the
investment earnings, if any, on amounts deposited by Kemper into the Golf Resort Accounts and
remaining unspent as of the immediately prior April 30. Upon termination of this Agreement,
amounts deposited by Kemper into the Golf Resort Accounts and remaining unspent, together
with investment earnings thereon, if any, shall be paid to Kemper. Investment earnings shall be
those as calculated by Union Bank of California(or such other depository of moneys in the Golf
Resort Accounts as selected by the City)based upon deposits in the Highmark Money Market
Account(or such other money market or other account selected by the City).
7.5 Books and Records. Kemper shall maintain in accordance with GAAP (Generally
Accepted Accounting Principles) adequate books of account with respect to its management and
operations of the facilities and shall maintain such books at its local offices in Palm Desert,
California. Kemper shall keep full and accurate books of account and such other records as are
necessary to reflect the results of the operation of the Golf Resort. For this purpose, Kemper
agrees it will make available to the City at all times all books and records in Kemper's
possession relating to the Golf Resort, including contract documents, invoices and construction
records. All accounting records shall be maintained in accordance with generally accepted
accounting principles and shall be maintained in a cash format for each Operating Year. All such
books, records, and reports shall be maintained separately from other facilities operated by
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Kemper. Kemper agrees to maintain reasonable and necessary accounting, operating, and
administrative controls relating to the financial aspects of the Golf Resort, and such controls
shall provide checks and balances designed to protect the Golf Resort, Kemper, and the City.
Kemper shall maintain all financial and accounting books and records for a period of at least
three years after the expiration or earlier termination of this Agreement, and the City shall have
the right to inspect and audit such books and records during such period as provided in
Section 7.6, below.
Kemper shall provide the City with a verification and accounting system as directed by
the City for all monies, gross receipts, revenues, fees, and charges collected at the Golf Resort.
Such system shall include:
(a) Recordation of all sales by means of a cash register, which will display the
amount of each sale and automatically issue a customer's receipt. The cash registers used by
Kemper shall be approved by the City. Said cash registers shall in all cases have locked in sales
total transaction counters that are constantly accumulating and which cannot, in any case, be
reset, and in addition, a tape loaded within the cash registers on which transaction numbers and
sales details are imprinted. Beginning and ending cash register readings shall be made a matter of
daily record. In the event of a mechanical or electrical failure of cash register, Kemper shall
record by hand all collections and issue a customer receipt in like manner
(b) A written record of the physical count of each and every player on the golf
tee sheet with each player's name who reserved the tee time. Kemper will make reasonable
efforts to capture all players' names at the point of sale, if possible. Kemper shall provide a
complete count of resident play on a daily basis.
(c) Totaling of golfers' starter sheets at the end of each day's play and
reconciliation of fee category totals on cash register detail tapes.
(d) Maintenance of a daily log book detailing the number of rounds played by
fee category and total amount of cash collected by fee category.
7.6 Inspection. The City or its authorized agents, auditors, or representatives shall
have the right during normal business hours to review, inspect, audit, and copy the books,
records, invoices, deposit receipts, canceled checks, and other accounting and financial
information maintained by Kemper in connection with the operation of the Golf Resort. All such
books and records shall be made available to the City at the Golf Resort, unless the City and
Kemper agree upon another location. The City, at its own expense, shall have the right to retain
an independent accounting firm to audit the books and records of the Golf Resort on an annual
basis. The City's rights under this Section shall continue after termination of this Agreement.
7.7 Reports to City. Kemper shall deliver to the City the following financial
statements, in a form reasonably acceptable to the City:
7.7.1 Within 20 days after the end of each calendar month, a statement of
profits, losses, and Gross Revenues, showing the results of operation of the Golf Resort for such
month and for the Operating Year to date, which statement shall include sufficient detail to
reflect all Gross Revenues, Golf Resort Expenses and the Fixed Management Fee. Such
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statements shall include a budget comparison, a variance report, and such other customary
reports as may reasonably be requested by the City. Such statement shall be certified as correct
by an authorized financial officer of Kemper. Such statement shall be in a form reasonably
acceptable to the City; and
7.7.2 Within 30 days after the end of each Operating Year, a statement of
profits, losses, and Gross Revenues, showing the results of operation of the Golf Resort for such
Operating Year which statement shall include sufficient detail to reflect all Gross Revenues, Golf
Resort Expenses, the Fixed Management Fee, and the Percentage Management Fee (if
applicable) for such period. Such statement shall be certified as correct by an authorized officer
of Kemper. Such statements shall include a budget comparison, a variance report, and such other
customary reports as may reasonably be requested by the City Manager. If requested by the City
Manager, and at the sole expense of the City, these financial statements shall be certified by an
independent certified public accountant acceptable to the City Manager and provided to the City
within 90 days after the end of the Operating Year. Kemper shall provide to the City Manager,
within 30 days of end of each calendar month, that calendar month's payroll register by
department and individual.
If Kemper fails to provide to the City any monthly or annual statement at the time and in the
manner specified in this Agreement, this failure shall constitute a material default under this
Agreement and the City shall have the right, in addition to any other rights or remedies it may
have under this Agreement, to conduct an audit to determine these sales, and Kemper shall
immediately reimburse the City for the cost of the audit on written demand by the City. If the
actual monthly or annual Gross Revenues shown by any audit of the City(whether hereunder or
under Sections 7.5 or 7.6) is found to be three percent or greater than the amount of the Gross
Revenues shown on the statement provided by Kemper, or if there are any other material
irregularities, the overstatement or such irregularities shall be deemed willful and the City may
terminate this Agreement upon written notice given at any time within 60 days after receipt of
the audit by the City. If at any time Kemper causes an audit of Kemper's business at the Golf
Resort to be made by an independent accountant, Kemper shall furnish the City a copy of the
report of this audit at no cost to the City, within ten days after Kemper's receipt of the audit
report.
7.8 Kemper Payroll and Accounting Software. Kemper shall provide the City with all
computerized data in a DBF format, or another format acceptable to the designee of the City
Manager.
ARTICLE VIII
TERMINATION RIGHTS
8.1 Termination by the City. In addition to the City's option to terminate this
Agreement pursuant to Section 2.1, the City shall have the right to terminate this Agreement,
without further compensation to Kemper, other than as to amounts theretofore accrued, upon the
occurrence of any one of the following events:
8.1.1 Kemper has misappropriated any funds of the City;
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8.1.2 Kemper fails to perform its operation and maintenance duties described in
Section 3.8 and the expiration of the cure periods described therein;
8.1.3 Kemper fails to comply with the provisions of Section 3.4.1 or 7.7.2.
8.1.4 Kemper fails to keep, observe or perform any other material covenant,
agreement, term or provision of this Agreement to be kept, observed or performed by Kemper,
and such default continues for a period of 30 days after written notice of such default by the City;
or
8.1.5 (i) Kemper applies for or consents to the appointment of a receiver,
trustee or liquidator of Kemper or of all or a substantial part of its assets; (ii) Kemper files a
voluntary petition in bankruptcy or commences a proceeding seeking reorganization, liquidation,
or an arrangement with creditors; (iii) Kemper files an answer admitting the material allegations
of a bankruptcy petition, reorganization proceeding, or insolvency proceeding filed against
Kemper; (iv) Kemper admits in writing its inability to pay its debts as they come due; (v)
Kemper makes a general assignment for the benefit of creditors; or(vi) an order,judgment or
decree is entered by a court of competent jurisdiction, on the application of a creditor,
adjudicating Kemper a bankrupt or insolvent or approving a petition seeking reorganization of
Kemper or appointing a receiver, trustee or liquidator of Kemper or of all or a substantial part of
its assets, and such order,judgment or decree continues unstayed and in effect for any period of
90 consecutive days.
8.2 The City's right to terminate this Agreement pursuant to this Section 8.1 shall be
exercised upon written notice to Kemper given at any time. The City's termination notice shall
specify the effective date of such termination, which may be effective immediately, but which
date shall not be more than 30 days after the date of the City's termination notice.
8.3 Termination by Kemper. Kemper shall have the right to terminate this Agreement
if the City fails to keep, observe, or perform any other material covenant, agreement, term or
provision of this Agreement to be kept, observed or performed by the City, and such default
continues for a period of 30 days after notice of such default by Kemper to the City. Kemper's
right to terminate this Agreement pursuant to this Section 8.2 shall be exercised upon written
notice to the City given at any time after the applicable grace period has expired. Kemper's
termination notice shall specify the effective date of such termination, which date shall not be
less than 90 days after the date of Kemper's termination notice.
8.4 Curing Defaults. Any default by Kemper or the City under the provisions of
Section 8.1 or 8.2, as the case may be, which is susceptible of being cured shall not constitute a
basis for termination of this Agreement if the nature of such default will not permit it to be cured
within the grace period allotted; provided that within such grace period the alleged party in
default shall have given notice of its intent to cure,has commenced to cure such default, and is
proceeding to complete the cure in good faith and with reasonable diligence, and such cure is
effected, in any event, within 90 days of the date of the notice of default.
8.5 Effect of Termination. The termination of this Agreement under the provisions of
this Article VIII shall not affect the rights of the terminating party with respect to any damages it
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has suffered as a result of any breach of this Agreement, nor shall it affect the rights of either
party with respect to any liability or claims accrued, or arising out of events occurring, prior to
the date of termination.
8.6 Remedies Cumulative. Neither the right of termination, nor the right to sue for
damages, nor any other remedy available to a party under this Agreement shall be exclusive of
any other remedy given under this Agreement or now or hereafter existing at law or in equity.
ARTICLE IX
TITLE MATTERS; ASSIGNMENT
9.1 Ownership of Improvements and Personal Property. All improvements to the Golf
Resort made during the term of this Agreement and all Furnishings and Equipment and
Operating Inventory purchased by Kemper during the term of this Agreement shall be property
owned by the City at such time as the improvements are made or the Furnishings and Equipment
or Operating Inventory are purchased.
9.2 Assignments. The City may assign its rights and obligations hereunder to another
governmental entity without Kemper's consent, and upon the effective date of such assignment
and the assignee's assumption of the City's obligations hereunder, the City shall be released
from any obligations hereunder accruing from and after the effective date of such assignment.
Except for an assignment of this Agreement by the City to another nonprofit corporation or to a
governmental entity, neither party shall assign this Agreement without the prior written consent
of the other party, which consent may be granted or withheld in the sole and absolute discretion
of the other party. It is understood and agreed that any consent granted by a party to any such
assignment shall not be deemed a waiver of any consent required under this Section 9.2 as to any
future assignment. Any assignment by either party of this Agreement in violation of the
provisions of this Section 9.2 shall be null and void and shall result in the termination of this
Agreement. In addition to any other remedies available to the parties, the provisions of this
Section 9.2 shall be enforceable by injunctive proceeding or by suit for specific performance.
9.3 Successors and Assigns. Subject to the foregoing, this Agreement shall inure to
the benefit of and be binding upon the parties and their respective heirs, legal representatives,
successors and assigns.
ARTICLE X
DAMAGE OR DESTRUCTION;
EMINENT DOMAIN; FORCE MAJEURE EVENTS
10.1 Damage or Destruction. Should the Golf Resort be destroyed or substantially
damaged by fire,flood, acts of God, or other casualty, the City shall have the right to terminate
this Agreement, by written notice to Kemper given within 60 days following the occurrence of
such event, and in such event neither party shall have any further obligation to the other party
under this Agreement,except with respect to liabilities accruing, or based upon events occurring,
prior to the effective date of such termination. For the purpose of this Section 10.1, the Golf
Resort shall be deemed to have been substantially damaged if the estimated length of time
required to restore the Golf Resort, or any portions thereof, substantially to its condition and
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character just prior to the occurrence of such casualty shall be in excess of six months, as
indicated by an architect's certificate or other evidence reasonably satisfactory to Kemper. If this
Agreement is not terminated in the event of damage to the Golf Resort either because:
(i) the damage does not amount to substantial damage as described above, or
(ii) notwithstanding destruction of or substantial damage to the Golf Resort,
the City elects to restore the Golf Resort,
then the City shall proceed, at the City's own expense, with all due diligence to
commence and complete restoration of the Golf Resort to its condition and character just prior to
the occurrence of such casualty. If as a result of any damage or destruction to the Golf Resort as
provided in this Section 10.1, the responsibilities of Kemper under this Agreement are
substantially changed, then the parties shall meet and discuss in good faith appropriate
modifications to this Agreement including the Management Fees.
10.2 Eminent Domain. If all of the Golf Resort(or such a substantial portion of the
Golf Resort so to make it unfeasible, in the reasonable opinion of the City, to restore and
continue to operate the remaining portion of the Golf Resort for the purposes contemplated in
this Agreement) shall be taken through the exercise (or by agreement in lieu of the exercise) of
the power of eminent domain, then upon the date that the City shall be required to surrender
possession of the Golf Resort or of that substantial portion of the Golf Resort, this Agreement
shall terminate and neither party shall have any further obligation to the other party under this
Agreement except with respect to liabilities accruing, or based upon events occurring, prior to
the effective date of such termination. If such taking of a portion of the Golf Resort shall not
make it unfeasible, in the reasonable opinion of the City, to restore and continue to operate the
remaining portion of the Golf Resort for the purposes contemplated in this Agreement, then this
Agreement shall not terminate, and the City shall proceed, at the City's own expense, with all
due diligence to alter or modify the Golf Resort so as to render it a complete architectural unit
which can be operated as a golf resort of substantially the same type and character as before. If
as a result of any alternation or modification of the Golf Resort as provided in this Section 10.2,
the responsibilities of Kemper under this Agreement are substantially changed, than the parties
shall meet and discuss in good faith appropriate modifications to this Agreement including the
Management Fees.
10.3 Force Majeure Events. As used in this Agreement, the term"Force Majeure
Event" means declared or undeclared war, sabotage, riot or acts of civil disobedience, acts or
omissions of governmental agencies, accidents, fires, explosions, floods, earthquakes, or other
acts of God, strikes, labor disputes, shortages of materials, or any other event not within the
control of Kemper and not caused by the gross negligence or intentional wrongful conduct of
Kemper. For purposes of this Agreement, any disruption of the operation of the Golf Resort
caused by a Capital Improvement project shall also constitute a Force Majeure Event. If as a
result of the occurrence of a Force Majeure Event, the responsibilities of Kemper under this
Agreement are substantially changed, then the parties shall meet and discuss in good faith
appropriate modifications to this Agreement including the Management Fees.
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ARTICLE XI
GENERAL PROVISIONS
11.1 Purchases by Kemper. In connection with any purchases made by Kemper or an
Affiliate of Kemper for the account of the City, or the City on behalf of the City, it is understood
that Kemper or such Affiliate may perform services as a representative of the manufacturer to
secure the benefits of lower costs, and that any resulting savings shall be passed on to the City,
including representatives' fees. In addition, all trade discounts, rebates and refunds pertaining
directly to purchases for the Golf Resort shall accrue to the benefit of the City. Any rebates
earned for the benefit of the City due to Kemper's national agreements with major manufacturers
for equipment and golf carts will be deposited into the Capital Reserve Account as referenced in
Section 7.1.1 of this Agreement.
11.2 Purchases from Kemper Affiliates. If any purchases of goods or services for the
Golf Resort are made from or through an Affiliate of Kemper, the charges to the Golf Resort for
such goods or services shall be on the same terms as those made to other golf courses and
country clubs operated by Kemper and such charges shall not exceed the market prices for such
goods and services. Before consummating such transaction, Kemper shall notify the City
Manager in writing of any such purchase, including the type of merchandise and services to be
purchased and the price and fees therefore.
11.3 Indemnities.
11.3.1 Kemper's Indemnity. Kemper agrees to indemnify, defend (with counsel
reasonably satisfactory to the City Manager), protect, and hold harmless the City, the Agency,
and all City Personnel from and against any and all claims, demands, actions, lawsuits,
proceedings, damages,liabilities,judgments, penalties, fines, attorneys' fees, costs, and
expenses:
(a) which result from any action taken by Kemper relating to the Golf
Resort (i) that is expressly prohibited by this Agreement, or(ii) that is not within the scope of
Kemper's duties under this Agreement, or(iii) that is not within Kemper's delegated authority
under this Agreement; or
(b) which result from any violations by Kemper or Kemper's agents,
employees, invitees, contractors, subcontractors or assignees of any law, ordinance, rule or
regulation governing or otherwise affecting the business operations of Kemper or Kemper's
performance of services and obligations under this Agreement; or
(c) which result from any injury or death of any person (including,
without limitation, injury or death of Kemper's employees, agent, visitors, invitees, assignees,
contractors or subcontractors within Kemper's control) or damage or destruction of the property
of any person or entity which occurs by reason of the negligent actions or omissions or willful
misconduct of Kemper or Kemper's agents, employees, invitees, contractors, subcontractors, or
assignees, or material breach or default by Kemper or Kemper's agents, employees, invitees,
contractors, subcontractors, or assignees, in performance of Kemper's services under this
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Agreement or otherwise caused by the negligent actions or omissions or willful misconduct of
Kemper or Kemper's agents, employees, invitees, contractors, subcontractors, or assignees; or
(d) which result from Kemper's material breach of the covenant
contained in Section 3.11 of this Agreement; or
(e) which result from any other act or omission not enumerated above
constituting the negligence or willful misconduct by Kemper or any officer, director, or
employee of Kemper.
(f) for any costs, fees,fines or losses that may result from
environmental contamination or natural resource damage on the subject property if caused by
Kemper's performance in storing, using or disposing of hazardous or toxic substances or
materials or wastes such as, but not limited to, herbicides, pesticides, algicides or other water
treatment chemicals
This indemnity provision shall survive the expiration or termination of this Agreement. Kemper
hereby stipulates and agrees that no condition precedent to its indemnification obligations stated
herein, whether by way of notice or otherwise, exists or shall constitute a defense to its
obligation to defend, indemnify and hold harmless the Agency and the City, and the City
Personnel in any of such circumstances.
11.3.2 City's Indemnity. The City agrees to indemnify, defend(with counsel
reasonably satisfactory to Kemper), protect, and hold harmless Kemper and its owners, officers,
directors, and employees from and against any and all claims, demands, actions, lawsuits,
proceedings, damages, liabilities,judgments, penalties, fines, attorneys' fees, costs, and expenses
arising from(i) any act or omission to the extent caused by the negligence or willful misconduct
by the City or any officer, director, employee, or agent of the City, (ii) the ownership, leasing,
organization, development or construction of the Golf Course, (iii) any environmental
contamination conditions that are the result of the presence of hazardous or toxic substances or
materials or wastes that were pre-existing before the original agreement between Kemper and the
City first executed, and which may be uncovered or discovered during or after the term of this
Agreement, or if present on the Golf Resort by any cause other than Kemper's performance in
storing, using or disposing of hazardous or toxic substances or materials or wastes, such as, but
not limited to, herbicides, pesticides, algicides or other water treatment chemicals or(iv) claims
by third-parties against Kemper arising from any other actions or omissions of the City, the
Agency, the City Personnel or others for whom any of them are responsible but only if such
claim or claims also neither arise from, nor are caused in whole or in any part by, the wrongful or
negligent act, error or omission of Kemper, any officer, director, or employee of Kemper or
others for whom any of them are responsible.
11.4 Bonds. In connection with the Agency's issuance or refunding of any bonds or
certificates of participation, Kemper shall have the right to approve, which approval shall not be
unreasonably withheld, any description of Kemper or any description of this Agreement or of the
City's relationship with Kemper under this Agreement, which description is contained in any
prospectus or similar materials delivered in connection with such bonds or certificates of
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participation. The City agrees to furnish to Kemper copies of all such materials for such purpose
not less than 20 days prior to the delivery of such materials to the public.
11.5 Golf Course Names. The Golf Resort shall be known by such trade name and/or
trademark or logo as may from time to time be determined by the City. The parties acknowledge
and understand that the names, logos, and designs used in the operation of the Golf Resort,
together with appurtenant goodwill, are the exclusive property of the City. Kemper may identify
the Golf Resort as a golf resort managed and operated by Kemper.
11.6 Notices. All notices, demands, requests, consents, approvals, replies and other
communications ("Notices") required or permitted by this Agreement shall be in writing and
may be delivered by any one of the following methods: (a) by personal delivery; (b) by deposit
with the United States Postal Service, postage prepaid to the addresses stated below or(c) by
deposit with an overnight express delivery service. Notice deposited with the United States
Postal Service in the manner described above shall be deemed effective three business days after
deposit with the Postal Service. Notice by overnight express delivery service shall be deemed
effective upon receipt. Notice by personal delivery shall be deemed effective at the time of
personal delivery.
For purposes of Notices hereunder, the address of the City shall be:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attention: City Manager
For purposes of Notices hereunder, the address of Kemper shall be:
Kemper Sports Management, Inc.
500 Skokie Boulevard
Suite 444
Northbrook, Illinois
Attention: CEO
Each party shall have the right to designate a different address within the United
States of America by the giving of notice in conformity with this Section 11.6.
11.7 Independent Contractor. Kemper shall at all times be considered an independent
contractor under this Agreement. Nothing contained in this Agreement shall be construed to be
or create a partnership or joint venture between the City and its successors and assigns, on the
one part, and Kemper and its successors and assigns, on the other part.
11.8 Modification and Changes. This Agreement may be amended or modified only by
a writing signed by both parties.
11.9 Understandings and Agreements. This Agreement constitutes all of the
understandings and agreements of whatever nature or kind existing between the parties with
respect to Kemper's management and operation of the Golf Resort, and this Agreement
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supersedes all prior understandings and Agreements, whether written or oral, between the City
and Kemper pertaining to the management and operation of the Golf Resort.
11.10 Headings. The Article, Section and Subsection headings contained in this
Agreement are for convenience and reference only and are not intended to define, limit or
describe the scope or intent of any provision of this Agreement.
11.11 Survival of Covenants. Any covenant, term or provision of this Agreement which
in order to be effective must survive the termination of this Agreement shall survive any such
termination.
11.12 Third Parties. None of the obligations under this Agreement of either party shall
run to or be enforceable by any party other than the party to this Agreement or by a party
deriving rights under this Agreement as a result of an assignment permitted pursuant to the terms
of this Agreement.
11.13 Waivers. No failure by Kemper or the City to insist upon the strict performance of
any covenant, agreement, term of condition of this Agreement or to exercise any right or remedy
consequent upon the breach of this Agreement shall constitute a waiver of any such breach or
any subsequent breach of the same covenant, agreement, term or condition. No covenant,
agreement, term or condition of this Agreement and no breach of this Agreement shall be
waived, altered or modified except by a written instrument. A waiver of any breach of this
Agreement shall only affect this Agreement to the extent of the specific waiver, and all
covenants, agreements, terms and conditions of this Agreement shall continue in full force and
effect.
11.14 Applicable Law. This Agreement shall be construed and interpreted in accordance
with, and shall be governed by, the laws of the State of California. The parties agree that the
Superior Court of the State of California, County of Riverside shall have jurisdiction of any
litigation between the parties relating to this Agreement.
11.15 No Presumption Regarding Drafter. The City and Kemper acknowledge and agree
that the terms and provisions of this Agreement have been negotiated and discussed between the
City and Kemper, and that this Agreement reflects their mutual agreement regarding the subject
matter of this Agreement. Because of the nature of such negotiations and discussions, it would be
inappropriate to deem either the City or Kemper to be the drafter of this Agreement, and
therefore no presumption for or against the drafter shall be applicable in interpreting or enforcing
this Agreement.
11.16 Enforceability of Any Provision. If any term, condition, covenant, or obligation of
this Agreement shall be determined to be unenforceable, invalid, or void, such determination
shall not affect, impair, invalidate, or render unenforceable any other term, condition, covenant,
or obligation of this Agreement.
11.17 United States Currency. All amounts payable pursuant to this Agreement shall be
paid in lawful money of the United States of America.
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11.18 Counterparts. This Agreement and any amendment may be executed in
counterparts, and upon all counterparts being so executed each such counterpart shall be
considered as an original of this Agreement or any amendment and all counterparts shall be
considered together as one agreement.
11.19 Attorneys' Fees. In the event of a dispute involving the non-performance by a
party hereto of its obligations under this Agreement, the prevailing party shall be entitled to
reasonable attorneys' fees and all other expenses (including fees and costs related to discovery)
reasonably incurred in connection with such dispute, whether or not litigation is commenced, in
addition to all other relief to which the party is entitled. If the successful party recovers judgment
in any legal action or proceeding, the attorneys' fees and all other expenses of litigation shall be
included in and made a part of any such judgment.
11.20 Easements. Kemper shall recognize all easements of record affecting the Golf
Resort.
11.21 Publicity. Any commercial advertisements, press releases, articles, or other media
information using the City's or the Agency's name shall be subject to the prior approval of the
Agency or the City(as the case may be), which approval shall not be unreasonably withheld.
11.22 Covenants Against Discrimination. Kemper agrees that in connection with its
performance under this Agreement, there shall be no discrimination by Kemper against any
person on account of race, color, creed, religion, sex, marital status, national origin or ancestry.
Kemper agrees to include a provision similar to this Section 11.22 in all subcontracts entered into
by Kemper in connection with work being performed under this Agreement.
11.23 Time of the Essence. Time is of the essence of this Agreement. The parties
understand that the time for performance of each obligation has been the subject of negotiation
by the parties.
11.24 Authority. The parties represent for themselves that(a) such party is duly
organized and validly existing, (b) the person or persons executing this Agreement on behalf of
such party is/are duly authorized to execute and deliver this Agreement on behalf of such party,
(c) by so executing this Agreement, such party is formally bound to the terms and provisions of
this Agreement, and(d) the execution of this Agreement does not violate any provision of any
other agreement to which such party is bound.
11.25 Possessory Interest. Pursuant to California Revenue and Taxation Code
Section 107.6, the City hereby informs Kemper that this Agreement may create a possessory
interest subject to property taxation, and in such event Kemper may be subject to the payment of
property taxes levied on such interest. The parties agree that in the event possessory interest
property taxes are levied against Kemper in connection with this Agreement, such taxes shall be
considered a Golf Resort Expense and shall be paid from the Golf Course Accounts.
11.26 Conflict of Interest. The parties hereto hereby covenant that during the term of
this Agreement they will not employ any person to administer any portion of this Agreement that
has an interest, direct or indirect, which would conflict in any manner or degree with the
performance of services required under this Agreement.
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11.27 Supercede and Replace. This Agreement supercedes and replaces any and all
agreements regarding the management, operation and maintenance of the Golf Resort by
Kemper.
ARTICLE XII
CLUBHOUSE RESTAURANT
12.1 Restaurant Operations.
12.1.1 The City hereby assigns to PDRFC, and PDRFC hereby assumes, all
rights and obligations of the City set forth herein, to the extent applicable to the restaurant at the
clubhouse.
12.1.2 The parties agree that the Lease Agreement shall have no effect on
Kemper's management obligations or rights set forth in this Agreement, except as herein
specified to the contrary. To that end, Kemper shall continue to have the obligation to manage
and operate the restaurant as provided, inter alia, in Sections 3.5.1 and 3.5.16 hereof.
12.1.3 Notwithstanding the foregoing, the parties agree that PDRFC shall obtain
the license to sell alcoholic beverages from the restaurant, and Kemper shall assist PDRFC in
receiving such license.
12.1.4 Kemper agrees to attorn to PDRFC with respect to performance of the
management, operation and maintenance obligations with respect to the restaurant. The City
Manager shall have oversight responsibilities over the restaurant as with the oversight
responsibilities over management, operation and maintenance of the other portions of the Golf
Resort.
12.1.5 Pursuant to the PDRFC's Articles of Incorporation, and a resolution of the
PDRFC, all income from the restaurant is payable to the City, and Kemper may aggregate the
cash held by and amounts payable to PDRFC together with other amounts payable to the City, on
the same terms as are provided in this Agreement.
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IN WITNESS WHEREOF, the parties have executed or caused this Agreement to be
executed as of the day and year first written above.
CITY: KEMPER:
CITY OF PALM DESERT KEMPER SPORTS MANAGEMENT, INC.
By: By:
Mayor Its:
ATTEST:
By:
City Clerk Its:
PDRFC:
PALM DESERT RECREATIONAL
FACILITIES CORPORATION
By:
Its:
By:
Its:
-33-
12812-0001\1488707v2.doc
State of California )
County of Riverside )
On , before me,
(insert name and title of the officer)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
State of California )
County of Riverside )
On , before me,
(insert name and title of the officer)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
-34-
12812-0001\1488707v2.doc
EXHIBIT "A"
GOLF COURSE OPERATIONS AND MAINTENANCE STANDARDS
GOLF AND MAINTENANCE OPERATIONS EVALUATION
DATE:
SUPERINTENDENT:
EVALUATOR(S):
NEEDS
AREA UNACCEPTABLE IMPROVEMENT ACCEPTABLE
Greens ❑ ❑ ❑
Tees ❑ ❑ ❑
Fairways & Roughs ❑ ❑ ❑
Lakes and other Water Bodies ❑ ❑ ❑
Driving Range ❑ ❑ ❑
Maintenance Records and Schedules ❑ ❑ ❑
Maintenance Employees ❑ ❑ ❑
Maintenance Shop and Equipment ❑ ❑ ❑
Traffic Control ❑ ❑ ❑
Restrooms:
• On Course ❑ ❑ ❑
• Maintenance ❑ ❑ ❑
COMMENT:
1
GREENS
QUALITY STANDARD: Smooth, uniform, turf, firm but not hard, well-defined, consistent, of
suitable speed. 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 use only where necessary.
1. Greens Maintenance
Manager shall maintain all greens in accordance with accepted playability and industry
wide standards. Without limiting the generality of the foregoing, Manager shall maintain
all greens in accordance with the following minimum requirements:
i. Change cups and repair ball markers daily.
ii. Mow and maintain greens to provide "Best in Class" playing surfaces year round,
with a reel-type mower designed: specifically for mowing golf greens and of the
type, make and model accepted by the golf industry.
iii. Verticut all greens as needed to control mat and thatch buildup.
iv. Aerify greens as needed and remove plugs the same day, top-dress the greens
following each aerification if necessary, or if conducive to aerifications goals and
season.
v. Treat greens with proper chemicals to control insects, disease, and other pests.
vi. Fertilize greens at a rate and frequency that will promote healthy turf
propagation.
vii. Manager shall have the soil analyzed quarterly (90) days after the
commencement of the Management Term and quarterly thereafter. Complete soil
tests to be performed annually. Manager shall apply fertilizer in the quantity and
type recommended by such analysis in a manner to provide uniform growth of
turf.
2. QUALITY: How do they Putt and Play?
100% turf cover, smooth and uniform, no diseases, weeds, insects, rodents, or bare
spots. Do the greens hold approach shots? Are the cups cut cleanly and in proper
locations?
Unacceptable ❑ Needs Improvement 0 Acceptable El
3. APPEARANCE: How do they look?
Color and texture of the greens turf, no diseases, weeds, insects, rodents, or off-color
areas, uniformity of the mowing, condition of cup, flag and pole, condition of the areas
around the greens.
Unacceptable 0 Needs Improvement 0 Acceptable 0
2
4. SAND TRAPS GREENS: How do they play and look?
Sand surface is uniform and smooth; no weeds or debris in traps, sand is adequate
depth for play. Rakes properly placed, adequate in number and condition. Quality of
mowing, trimming around traps. As necessary, edge traps to always maintain a neat lip.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
TEES
QUALITY STANDARD: Tees smooth, completely turfed, leveled, firm but not hard, clean,
properly directed, with amenities trash cans, signs, tee markers, monuments, ball washers,
towels, sand & seed containers, as appropriate, in good condition and repair, consistent and
uniform.
1. Tee Maintenance
Manager shall maintain all tees in accordance with accepted playability and industry
wide standards. Without limiting the generality of the foregoing, Manager shall maintain
all tees in accordance with the following minimum requirements:
i. Service tees daily by moving markers and ball washers as needed based on
volume of play and turf damage.
ii. Change tee towels regularly and keep ball washers filled to proper level with
water and an appropriate cleaning agent
iii. Mow and maintain tees to provide "Best in Class" playing surfaces year round
with reel-type mower at appropriate height for turf type and climate conditions.
iv. Verticut tees as needed for thatch removal.
v. Repair worn and damaged turf areas as they occur by overseeding or resodding
to ensure playable tees at all times.
vi. Treat tees for control of insects, disease, weeds, and other pests necessary to
maintain healthy turf.
vii. Fertilize tees at a rate and frequency that will promote healthy turf propagation.
viii. Repair divots daily, and Aerify tees as needed, removing plugs the same day.
Top-dress the tees following each aerification if necessary and/or conducive to
aerfications goals and/or season.
2. APPEARANCE, MANICURED AND CLEAN.
100% turf cover, no weeds, diseases, insects, or rodents, smooth and uniform.
Consistent, adequate top dressing and seeding program. Minimal litter or broken tees.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
3
3. PERIMETER AREA AROUND TEES
Area between cart path (if any) and tee-uniformity and smoothly turfed, no mud or dirt,
ball washers are clean, in good repair and located for the tee positions, cart paths are
clean and property placed as necessary; no identifiable traffic wear into tee.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
FAIRWAYS AND ROUGHS
QUALITY STANDARD: Smooth, uniform turf cover, smooth mowing, and trimming, clean,
firm but not hard, well defined, that properly supports the ball for play. Roughs: Properly
mowed and trimmed, clean and adequately uniform for play, distinct in height from
fairways.
1. Fairway Maintenance (including Driving Range Area)
Manager shall maintain all fairways in accordance with accepted playability and industry
wide standards. Without limiting the generality of the foregoing, Manager shall maintain
all fairways (including the driving range area) in accordance with the following minimum
requirements:
i. Mow fairways with a reel-type mower.
ii. Verticut fairways as necessary for turf health and playing conditions
iii. Aerify all fairways as needed.
iv. Overseed and top dress (or, resod) worn or bare areas of fairways as necessary
v. Treat turf to control weeds, disease, insects and other pests necessary to
maintain weed-free and healthy turf.
vi. Fertilize fairways at a rate and frequency that will promote healthy turf
propagation.
2. Maintenance of Rough and Other Turf Areas
Manager shall maintain rough, turf, perimeter landscape areas, and landscape lawn
areas, including plant and annual color areas, in accordance with accepted playability
and industry-wide standards. Without limiting the generality of the foregoing, Manager
shall maintain all rough, turf, perimeter landscape areas, and landscape lawn areas,
including plant and annual color areas, in accordance with the following' minimum
requirements:
i. Maintain rough to provide desired result, and mow other turf areas at least once
per week
ii. Verticut as necessary to promote healthy growth
iii. Aerify as needed and seed or sod worn or bare areas in turf as necessary
4
•
iv. Treat turf to control weeds, diseases, insects, and other pests to maintain a
healthy turf.
v. Fertilize rough at a rate and frequency that will promote healthy turf propagation.
3. QUALITY. How do they play?
Mowing height of fairways and roughs is within USGA specifications, mowing frequency
is appropriate for the turf type and season. Fairway turf properly supports the ball for
play. Absence of wet or dry spots in play areas.
Unacceptable 0 Needs Improvement ❑ Acceptable ❑
4. APPEARANCE. How do they look?
Uniformity of color, irrigation and, texture, no weeds, disease, insects, rodents, or off-
color areas. Quality mowing: appearance of being "Manicured". Turf coverage in traffic
areas.
Unacceptable 0 Needs Improvement ❑ Acceptable ❑
5. SAND TRAPS ROUGHS. How do they play and look?
Sand surface is uniform and smooth; sand is adequate depth for play. No weeds or
debris in traps. Rakes properly placed, adequate in number and condition. Quality of
mowing, trimming around trees. As necessary, edge traps to always maintain a neat lip.
Unacceptable 0 Needs Improvement ❑ Acceptable 0
6. TREES AND SHRUBS. How do they look?
Pruned to maintain specimen health and safety to golfers and maintenance employees.
Unacceptable 0 Needs Improvement 0 Acceptable ❑
IRRIGATION
Manager shall maintain the entire irrigation system serving the Golf Course property,
including main lines, valves, lateral lines; sprinkler heads, and controllers, in good
repair, functioning properly and conforming to all related codes and regulations at all
times. Manager shall irrigate the Golf Course property as required to maintain adequate
moisture for growth rate and appearance in accordance with accepted industry
standards. Adequate soil moisture shall be determined by visual observation, plant
resiliency, turgidity, examining cores removed by soil probe, moisture sensoring devices,
and programming irrigation controllers accordingly. In addition:
i. Consideration shall be given to soil texture, structure, water holding capacity,
drainage, compaction, precipitation rate, run-off, infiltration rate, percolation
rate, seasonal temperatures, prevailing wind condition, time of day or night, type
of grass or plant, and root structures.
5
ii. In areas where wind creates problems of spraying onto private property or road
rights-of-way, the controller shall be set to operate during the period of lowest
velocity.
iii. Manager shall be responsible for monitoring all systems within the Golf Course
property and for correcting the same for coverage, adjustment, clogging of lines,
and sprinkler heads, and removal of obstacles, including plant materials, which
obstruct the spray.
iv. Manager shall check the system daily and adjust and/or repair any sprinkler
heads causing excessive run-off, or which throw directly onto, roadway, paving or
walks within rights-of-way.
v. The central control system shall be inspected on a daily basis and adjusted as
required, considering the water requirements of each remote control valve
vi. A soil probe or tensiometer shall be used regularly to determine the soil moisture,
content in various areas, with particular attention being given to the greens.
vii. Manager shall repair all leaking or defective valves within appropriate time
period.
viii. Upon written request by City, Manager shall file a monthly statement with the
City certifying that all irrigation systems are functioning properly.
ix. If there is a reduction of the volume of water supplied to the Golf Course
property during peak demand periods, the priority of water distribution by
Manager shall be as follows:
(a) greens,
(b) tees,
(c) fairways, and
(d) other turf and landscape areas.
LAKES AND OTHER WATER BODIES
QUALITY STANDARD: Clean, well defined, free of weeds and noxious growth; well marked
and attractive.
1. Appearance of water-clean, no weeds, or noxious growth, no noxious odors, no floating
trash/debris.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Ground around lakes - mowing, trimming, etc;
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
6
DRIVING RANGE
1. APPEARANCE - MANICURED AND CLEAN
Uniformity of mowing, color, texture of turf, smoothness of surface, cleanness of
mowing on perimeters, absence of scalping. Consistent, adequate top dressing and
seeding program, trash free, quality and quantity of clean balls, bag stands.
Unacceptable ❑ Needs Improvement ❑ Acceptable El
2. PERIMETER AREAS AROUND TEES
Area between cart path and tees - uniformly and smoothly turfed, no mud or dirt, club
washers, bag stands are clean, in good repair and properly located for the tee positions,
cart path is clean and properly edged, curbing or ropes/stakes are clean and properly
placed as necessary; no identifiable traffic pattern into tee.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
3. RANGE LANDING AREA
Turfed, clean and mowed per fairway maintenance section of audit.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
MAINTENANCE OF NURSERY
Manager shall maintain sod nurseries for the greens at all times according to the
foregoing greens maintenance specifications.
MAINTENANCE OF ACCESSORY EQUIPMENT
Manager shall maintain all golf course accessory equipment. In a clean, safe, functioning
condition at all times, replacing with equipment and/or materials as necessary, including,
but not limited to, the following:
i. Signs
ii. Tee markers.
iii. Ball washers, including tee towels and soap.
iv. Out-of-bounds markers, water hazards, cart directional signs, etc.
v. Directional flags and poles.
vi. Distance markers (150 yards, etc.).
vii. Greens flags, poles and cups
viii. Practice green markers and cups.
7
ix. Trash receptacles
x. Cleat brushes
Other Required Duties
i. Manager shall remove all litter form the Golf Course grounds; including but not
limited to the Golf Course, maintenance yard, landscape areas, and the driving
range. Manager shall remove all trash and debris resulting from Golf Course
maintenance as it occurs. Manager shall clean, repair, and replace trash
receptacles as necessary to maintain clean, safe and sanitary conditions at all
times.
ii. Manager shall maintain shrub and ground cover plantings and lawn areas in a
manner to promote proper healthy growth and an aesthetically pleasing
appearance at all times.
iii. Manager shall maintain all trees in a safe, healthy and aesthetically pleasing
condition at all times. Trees shall be pruned regularly in order to promote
growth, safety, and beauty.
iv. Manager shall maintain all sand traps in a raked, edged, and weed-free condition
at all times, replacing sand in kind and rakes as necessary.
v. Manager shall take whatever preventive steps are necessary and legal to protect
all slope areas from erosion at all times, subject to the approved budget.
vi. Manager shall control rodent and other animal pests as necessary to prevent
erosion and destruction of plantings.
vii. Manager shall maintain and repair as necessary surface flow lines, swales, catch
basins, grates, subsurface drainage systems, and other ,drainage structures in a
clear, weed-free and properly functioning condition at all times.
viii. Manager shall observe all legal requirements and safety regulations in the use
and storage of chemicals, hazardous materials, supplies, and equipment.
ix. Manager shall maintain the golf maintenance storage room and yard in a clean,
orderly, and safe condition at all times, conforming to all applicable laws and
regulations.
x. Manager shall take reasonable measures to protect golfers from injury and the
Golf Course from damage in periods of frost, rainy weather and other unusual
conditions.
xi. Manager shall maintain bridge abutments and approaches in a safe and stable
condition.
xii. Manager shall maintain walkways, steps, handrails on walkways, header-boards,
and cart paths in a clean, edged, safe, and weed-free condition.
8
xiii. Manager shall maintain, repair, and replace parking lots and driveways to achieve
clean, safe and weed-free conditions.
xiv. Manager shall inspect the following frequently and repair as needed:
(a) all area lighting systems for safe and functioning condition, and
(b) all golf course parking lots, walkways and interior paved and/or unpaved
surface roads.
MAINTENANCE RECORDS AND SCHEDULES
All of the following maintenance records properly kept, on site, and up to-date.
NEEDS
CRITERIA UNACCEPTABLE IMPROVEMENT ACCEPTABLE
1. Expense Ledger - Weekly ❑ ❑ ❑
2. Equipment Maintenance Records ❑ ❑ ❑
3. Labor Scheduling (Job Board) ❑ ❑ ❑
4. Fuel Log(s) ❑ ❑ ❑
MAINTENANCE EMPLOYEES/CORE STAFF
1. Required state and federal forms posted.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Uniforms, pith helmets, or hats, and appropriate footwear on all Department employees,
except superintendent.
Unacceptable ❑ Needs Improvement 0 Acceptable ❑
MAINTENANCE SHOP AND EQUIPMENT
1. Shop area is orderly, clean, with no obvious safety hazards. Fertilizer and chemical
storage is per training manual. No disorganized junk or trash in yard or shop. Condition
of superintendent's office.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Equipment is in good repair, is clean and properly maintained. Check oil, air cleaners,
hydraulic oil, and status of machines under repair.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
9
TRAFFIC CONTROL
1. Ropes, stakes, and other traffic control devices are clean as necessary, in good
condition, straight and repaired. Traffic control devices are used, effectively to minimize
turf wear in high traffic areas. Worn areas are under repair. Routes used by golf carts
are well, maintained, free of potholes, and present a generally smooth and clean
appearance.
Unacceptable 0 Needs Improvement 0 Acceptable 0
2. Cart paths - Concrete paths are uniform in width and surfaces are safe for spikes,
smooth for operation of golf carts.
Unacceptable 0 Needs Improvement 0 Acceptable 0
10
CLUBHOUSE AUDIT
DATE:
MANAGER:
AUDITOR(S):
NEEDS
AREA UNACCEPTABLE IMPROVEMENT ACCEPTABLE
Clubhouse Maintenance ❑ 0 0
Managers Office ❑ ❑ 0
Golf Pro Shop 0 0 ❑
Food and Beverage 0 ❑ 0
Kitchen ❑ ❑ ❑
Security and Accounting ❑ ❑ ❑
Carts ❑ 0 0
Personnel ❑ 0 ❑
Restrooms:
• Clubhouse ❑ ❑ 0
• Patio 0 ❑ 0
COMMENT:
11
CLUBHOUSE MAINTENANCE
1. Parking lot trash-free, lot well striped and in good repair, trash bin area clean. Flags
flying, flags and poles in good condition.
Unacceptable ❑ Needs Improvement ❑ Acceptable El
2. Exterior wall surfaces dean and cobweb-free, windows clean. Paint in good condition.
All signage in good condition and uniform.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
3. Ground well manicured, trash-free, walkways clean and edged, proper planting, flowers
fresh and colorful, planter beds weed and trash-free
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
4. Preventative maintenance programs in place for building and equipment
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
5. Interior paint in good condition, walls and vents clean, wall-mounted, pictures hung
properly and clean, carpet vacuumed and spot-free or floor clean.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
MANAGERS OFFICE
1. Clean, files organized, manuals available, schedules current and available, manager
dressed appropriately with name badge. Monthly course inspection report available.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Staff dressed appropriately with name badge.
Unacceptable ❑ Needs Improvement El Acceptable ❑
3. Bring Up file on contracts and agreements. Banquet and Golf Outing information
available/contracts completed and signed for each booking with deposit/contract being
used. Banquet histories, and files in place and current
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
GOLF PRO SHOP
1. Customer Service: all staff have been trained in and provide first class service to
customers, including staff empowered to handle customer problems.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Ready Golf: Starters and marshals trained.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
12
3. Rounds and carts counted daily per Tee Sheet, Waiting Lists, utilizing back nine, when
appropriate.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
4. Cash handling: excess cash removed from cash register on a regular basis, checks
endorsed with ID: major credit card, driver's license, employee's initials; register drawer
closed between transactions.
Unacceptable 0 Needs Improvement ❑ Acceptable ❑
5. Prices marked clearly, employee product knowledge, suggestive selling, approved
signage, merchandise hung and/or folded properly by color, departmentalized, clean and
neat, no old stock.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
6. Carpet vacuumed and spot-free, windows and mirrors clean and streak free. Shelves,
counter tops, baseboards, and window ledges dusted, counter clean.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
7. Staff dressed and groomed appropriately with name badge.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
8. Starter's responsibilities: Printed version of digital tee sheet with cart numbers assigned
to each group and verification of fees paid.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
FOOD AND BEVERAGE
1. Customer Service: Non-transactional response, everyone has been empowered to
handle customer's problem.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Staff in uniform: logo shirt, name badge, staff is friendly, smiling, and helpful.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
3. Cash Handling: Excess cash removed on a regular basis, drawer closed between
transactions.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
4. Menu board and menus clean and clearly written.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
5. Storage areas: clean, shelves organized. Food and chemicals stored per applicable
governmental regulations.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
13
6. Dining area carpet vacuumed and spot-free, windows clean and streak-free; tables and
chairs neatly arranged, table tops clean and bases dusted, chairs clean, linens neat and
clean, lights clean and functional.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
7. Bar seating area clean, bar top clean with supplies neatly arranged, floor clean, staff in
uniform with nametags. Light fixtures clean and functional, back bar organized, liquor
brands displayed and dusted, refrigerators clean and organized, beer dispenser and
drains clean. TABC License: framed, posted and current, liquor storage shelves
organized and clean, walls, and vents clean.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
8. Bar breakage being disposed of properly.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
Kitchen:
1. Dish washing machine clean and sanitation procedures followed, garbage disposal
operable, pots, pans and all shelving grease-free, garbage cans clean with liners;
chopper, slicer, and mixer clean and operable. Kitchen floors clean, drains operable and
clean, hoods, filters clean. Refrigerators clean and organized, food stored off of the
floor. Food, covered as needed in refrigerators and freezers, walls and floors clean, fire
extinguishers current, last Health Department Inspection in file.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Inventory organized, in locked storage when applicable, two staff members take the
inventories.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
3. Equipment clean and function, freezers and refrigerators at correct temperature. Sink
areas clean. Grill areas: clean, and filters clean.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
SECURITY AND ACCOUNTING
1. Staff properly trained in procedures for rain checks, voids, credits, returns and
manager's approval for said transactions are in place as appropriate.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. Payables, sales receipts filed in date order, utilized per profit and loss statements,
payroll registers and general ledgers for management access only.
Unacceptable LI Needs Improvement ❑ Acceptable ❑
3. Alarm system operational, staff trained to use, only management has pass through, fire
extinguishers tagged.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
14
4. Proper accounting software in use.
Unacceptable ❑ Needs Improvement El Acceptable ❑
5. Parking and clubhouse lighting adequate, functional and on time, set properly for the
season.
Unacceptable ❑ Needs Improvement ❑ Acceptable 0
6. Bank-deposits made during daylight hours only, one day or less, of receipts in locked
safe, deposits in bank daily, transfers made daily.
Unacceptable ❑ Needs Improvement ❑ Acceptable 0
7. Point of sale cash drawer verification daily.
Unacceptable El Needs Improvement ❑ Acceptable Cl
8. Tournament contracts filed with receipt attached. Deposit rung and recorded on the day
received.
Unacceptable ❑ Needs Improvement El Acceptable ❑
CARTS
1. Electric Carts on site: Quantity Available % of Total
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
2. General Manager and cart mechanic understand and comply with the cart agreement
parts and batteries, warranties.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
3. Maintenance records: current, maintenance card or form in use, all repairs dated, tools
available.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
4. Necessary tools on site, carts being rotated, records kept, surfaces of batteries clean
and free of acid, rest of cart chassis and mechanical components recently cleaned.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
5. Carts being used for golf operations only, seats clean and in good repair, floor mats
clean and in good repair and cart bodies and roofs in good repair.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
6. Cart storage area clean, no junk.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
15
7. Employees demonstrate caring customer service, neat and clean, appropriately
groomed, employees in uniform with name badge, proper shoes.
Unacceptable ❑ Needs Improvement 0 Acceptable 0
8. Scorecards on carts with pencil, also available at golf shop counter
Unacceptable ❑ Needs Improvement ❑ Acceptable 0
PERSONNEL
1. Time clocks operational, cards available, racks for cards. Spanish available where
necessary.
Unacceptable ❑ Needs Improvement ❑ Acceptable 0
2. Required state and federal forms posted by time clock. OSHA 200 form posted.
Unacceptable 0 Needs Improvement ❑ Acceptable 0
3. Personnel card files up to date to include key and uniform issue. Attendance forms on
file for all employees.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
4. First aid kit available and adequately stocked; phone number for emergencies, police,
and fire posted.
Unacceptable 0 Needs Improvement ❑ Acceptable ❑
5. Monthly staff and safety meetings being held. Forms complete and up-to-date.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
6. Inclement weather staff-reduction program in place
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
7. New employee forms available, checklist, applications, loss prevention, employee
handbook, insurance enrollment cards, liability claim form.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
8. Additional personnel forms available, verbal warning, written warnings, termination,
checklist, liability claim form.
Unacceptable ❑ Needs Improvement ❑ Acceptable ❑
16
WOMEN'S RESTROOMS
Clubhouse Patio On Course Maint Bldg
Z Z Z Z
m m m rn
m m m m
0 0 0 0
c ac ac a c a
I a P I )0' f i P 1 4 i 4 i 4 i 4 i
CRITERIA m m i
1. Entry mat or carpet clean ❑ ❑ ❑ Cl 0 ❑ ❑ 0 El ❑ 0 ❑
2. Entry door finger mark-free ❑ 0 ❑ El 0 ❑ ❑ 0 El 0 ❑ ❑
3. Tile and painted walls clean ❑ 0 El ❑ 0 ❑ ❑ 0 ❑ ❑ ❑ ❑
4. Toilets clean ❑ 0 ❑ El 0 ❑ 0 0 El ❑ 0 El
5. Bowls, rims, tank tops and bodies El ❑ ❑ El 0 0 ❑ 0 ❑ ❑ 0 ❑
6. Toilet seats clean, tops and under sides ❑ 0 ❑ El 0 ❑ El 0 ❑ ❑ 0 ❑
7. Mirrors clean and streak free El 0 El ❑ 0 El 0 0 ❑ ❑ 0 ❑
8. Soap dispenser clean and full ❑ 0 ❑ El 0 ❑ ❑ 0 El ❑ ❑ El
9. Paper towel dispenser dean and full ❑ 0 El ❑ 0 El ❑ ❑ ❑ El 0 ❑
10. Toilet paper dispenser clean and full ❑ El El El ❑ El ❑ 0 ❑ El ❑ El
11. Seat cover and dispenser clean and full El 0 ❑ ❑ ❑ ❑ ❑ 0 El ❑ ❑ ❑
12. Counter top clean ❑ 0 ❑ El 0 ❑ ❑ 0 ❑ El 0 El
13. Sink and faucet fixtures clean and functional ❑ El ❑ El 0 ❑ ❑ ❑ ❑ ❑ ❑ ❑
14. Light fixtures clean, functional and bug-free El ❑ ❑ ❑ El ❑ ❑ 0 ❑ ❑ 0 ❑
15. Room air freshener clean and functional El El El El ❑ ❑ ❑ 0 ❑ ❑ 0
16. Trash receptacle, clean, reasonable empty ❑ ❑ ❑ ❑ 0 ❑ ❑ 0 ❑ El 0 ❑
17. Napkin receptacles clean with liners ❑ ❑ ❑ ❑ 0 El ❑ ❑ ❑ ❑ 0 El
17
MEN'S RESTROOMS
Clubhouse Patio On Course Maint Bldg
Z Z Z Z
IA le IA IA
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fi 9 °1 il i 1 o at in
1 i 1 1 -1 i 1 il 1
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CRITERIA iA ill in i ill to i ;
1. Entry mat or carpet clean ❑ 0 ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑
2. Entry door finger mark-free ❑ ❑ ❑ ❑ 0 ❑ ❑ 0 ❑ ❑ ❑ ❑
3. Tile and painted walls clean ❑ 0 ❑ ❑ 0 ❑ ❑ 0 ❑ 0 0 ❑
4. Toilets clean ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ 0 ❑
5. Bowls, rims, tank tops and bodies ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ 0 0
6. Toilet seats clean, tops and under sides ❑ 0 ❑ ❑ 0 ❑ ❑ 0 ❑ ❑ 0 ❑
7. Mirrors clean and streak free ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑
8. Soap dispenser clean and full ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑
9. Paper towel dispenser dean and full ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑
10. Toilet paper dispenser clean and full ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0
11. Seat cover and dispenser clean and full ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑
12. Counter top clean ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ 0 ❑
13. Sink and faucet fixtures clean and functional ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑
14. Light fixtures clean, functional and bug-free ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑
15. Room air freshener clean and functional ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑
16. Trash receptacle, clean, reasonable empty ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑ ❑ ❑ ❑
17. Urinals: clean, with splash mats and ❑ ❑ ❑ ❑ 0 ❑ ❑ 0 ❑ ❑ 0 ❑
deodorant blocks
18
Golfweek's Best: Municipal Courses ((2010-11)
Location Opened Designer(s) Raters avg.
1.Bethpage State Park-Black Farmingdale,N.Y. 1935 A.W.Tillinghast 8.10
2.Chambers Bay University Place,Wash. " >' "2007 Robert Trent Jones Jr.,Bruce Charlton 7,70
3.ButterfieldTrail........ .......`.,...........,, ElPaso;Texas 2007"? Torn Fazio 656
4.Pinon Hills Farmington,N.M. 1990 Ken Dye 6.24
5.Torrey Pines-South La Jolla,Calif. 1957 William F.Bell 6.21
6.TPC Scottsdale-Stadium Scottsdale,Ariz. 1987 Jay Morrish,Tom Weiskopf 6.09
7.Arrowhead Pointe* Elberton,Ga. 2003 Robert Walker 5.90
8.Indian Wells Golf Resort-Players Indian Wells,Calif. 2007 John Fought 5.90
9.Highlands of Elgin* Elgin,III. 2010 Keith Foster,Art Schaupeter 5.86
10.Memorial Park Houston 1936 John Bredemus;Baxter Spann(1996) 5.85
11.Soldier Hollow-Gold Midway,Utah 2004 Gene Bates 5.83
12.Olympic Course at Gold Mountain Bremerton,Wash. 1996 John Harbottle 5.80
13.Laurel Hill Lorton,Va. 2005 Bill Love 5.78
14.Haggin Oaks-MacKenzie Sacramento,Calif. 1932 Alister MacKenzie 5.75
15.TPC Harding Park San Francisco 1925 Willie Watson 5.74
16.Wintonbury Hills Bloomfield,Conn. 2003 Pete Dye,Tim Liddy 5.70
17.Torrey Pines-North La Jolla,Calif. 1957 William F.Bell 5.69
18.Thunderhawk Beach Park,III. 1999 Robert Trent Jones Jr. 5.67
19.Sleepy Hollow* Brecksville,Ohio 1925 Stanley Thompson 5.67
20.Indian Wells Golf Resort-Celebrity Indian Wells,Calif. 2006 Clive Clark 5.63
21.Bethpage State Park-Red Farmingdale,N.Y. 1935 A.W.Tillinghast 5.60
22.Crandon Park Key Biscayne,Fla. 1972 Bruce Devlin,Robert von Hagge 5.58
23.Sunbrook-Pointe/Woodbridge St.George,Utah 1991 Ted Robinson 5.56
24.Hideout Monticello,Utah 2002 Forrest Richardson 5.55
25:Desert WilioNjdf 1 r ffICAI ATI fI `ilfi A IZ ',.''M i s ti irrz WA s ",mArtf,441
26.Indian Canyon Spokane,Wash. 1935 H.Chandler Egan 5.54
27.SilverRock La Quinta,Calif. 2005 Arnold Palmer 5.52
28.Bowes Creek* Elgin,111. 2009 Rick Jacobson 5.51
29.Washington County Hartford,Wis. 1997 Arthur Hills 5.50
30.Brackenridge Park San Antonio 1915 A.W.Tillinghast 5.50
31.Soule Park Ojai Calif. _ 1962 Robert Baldock,William F.Bell;Gil Hanse(2005) 5.50
32 Otivas Lihlkl' `...,.... Venturafeali 1 `r.•'" ,, ' `Forrest Rchardsom, tip' """ r V '`�-
2007 ` �'"
33.Aspen GC Aspen,Colo. 1970 Frank Hummel 5.44
34.Montauk Downs Montauk Point,N.Y. 1968 Rees Jones 5.43
35.Breckenridge Breckenridge,Colo. 1987 Jack Nicklaus 5.42
36.Tierra Verde* Arlington,Texas 1998 David Graham,Gary Panks 5.40
37.Shepherd's Crook Zion,Ill. 1999 Keith Foster 5.39
38.North Palm Beach North Palm Beach,Fla. 1928 Charles Banks,Seth Raynor,Jack Nicklaus(2006) 539
39.Chaska Town Course Chaska,Minn. 1997 Arthur Hills 5.38
40.Audobon Park Executive* New Orleans 2002 Dennis Griffiths 538
41.TPC Scottsdale-Champions Scottsdale,Ariz. 2007 Randy Heckenkemper 5.35
42.Boulder Creek Boulder City,Nev. 2003 Mark Rathert 5.35
43.Harborside International-Starboard: Chicago. 1996 Dick Nugent 5.3241
44.Lassing Pointe Union,Ky. 1994 Michael Hurdzan 5.31
45.Wingpolnt Salt Lake City 1991 Arthur Hills 530
nwie.x°^.rt rae,^�Tt Zh , '7 ,�?'i Y4 A .e..#e�, cR,f�^ t4` ` .rev"-
46.Sand Creek Station'•:...........: ...... :: Newton;tKan�4 .1<- 4 2006 7eff8rauer--� r..,�- <tt,_", �-�- a trt` ''
,.�c�'i4a:s�.�.�.�Ys�.�.«'t . .rro . r:.,,5'. ,1..4a f�.�ii' .G� r�n'rM#n a.s�u�b3��a€.?5.2.;Q
47.Inniscrone* Avondale,Pa. 1998 Gil Hanse,Bill Kittleman 5.29
48.Neshanic Valley* Neshanic Station,NJ. 2004 Michael Hurdzan 5.29
49.Fossil Trace Golden,Colo. 2003 Jim Engh 5.28
50.Cobblestone Acworth,Ga. 1993 Ken Dye 5.27
*New to list y���yQ_�yj/ a g��g
- " , rr ',m� " . k �' " .. : . i. ` :: " Na 46 Sand Creek Station ;
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Reprinted with permission from the May 13,2011 Issue of Golfweek®Copyright 2011,Turnstile Publishing.All rights reserved.
For more information on the use of this content,contact Wright's Media at 877-652-5295. _..
THE GOLF LIFEGoLFwEEK
„„„,,,,„....,,,...
REPRINTED FROM MAY 13, 2011
Talk
towns
MANY TOP MUNIS ARE CHAMPIONSHIP-CALIBER TESTS
The top of the 2010-11 Golfweek's Best courses were built since 1995, and many of
Municipal Courses list looks a lot like 2011 those are positioned in the marketplace
last year's list, with the top six courses t as championship layouts that sometimes
remaining unchanged. command green fees well above$100.
Arrowhead Pointe crashed the party atBEST: Chambers Bay, for instance,has a$205 peak
No. 7. That eastern Georgia layout leads rate and even charges county residents$115.
a list of nine courses that weren't on last MUNICIPAIIe `,: At TPC Harding Park,which reopened in 2003
year's list.The newcomers include Neshanic (OURSEti}+Pa- *,.. after a$23 million renovation,the standard
Valley, at No.48,which returns after a year's weekend rate is$170($99 for county residents).
absence. Golfweek ranks At SilverRock,the peak rate is $165.
The Black Course at Bethpage State Park, courses in a variety of By comparison, fourth-ranked Pinon Hills,
which has hosted two U.S. Opens in the past categories,inducing located in a remote part of northwest New
nine years,remains a formidable force in the best modern,classic Mexico, might be one of the nation's best
Golfweek's Best rankings.Aside from being and state-by-state. golf deals,with weekend nonresident rates
No. 1 on the Municipal list,it's No.1 among To learn more,visit topping out at$47.
public-access courses in New York, and wwwgolfweek.com/ It's noteworthy that several high-profile
No. 21 on the Classic (pre-196o) list. news/golfweeks-best/ courses did not crack the top 50, including
The list includes two other major- Brown Deer Park, a former PGA Tour site;
championship sites: Chambers Bay,which The Crossings at Carlsbad,the most expensive
hosted the 2010 U.S.Amateur and is scheduled to host municipal course ever built,at more than$60 million;and
the 2015 U.S. Open;and Torrey Pines-South,which Sharp Park,an Alister MacKenzie-Jack Fleming design just
hosted the 2008 U.S. Open. south of San Francisco that has received more attention
Municipal golf historically has been positioned as a in recent years because of environmental litigation and
low-cost,no-frills alternative to privately operated courses. a controversial restoration plan.
That's changed in recent years.Twenty-eight of the 50 -Martin Kaufmann
5 .'
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Golf Destination Expertise
KemperSports manages a number of the premier golf destinations in the country including our flagship
property, Bandon Dunes Golf Resort in Bandon, OR.
Bandon Dunes Golf Resort offers four of the Top 15 Courses in the U.S. according to Golf
Magazine. In 2012, Bandon Dunes has been ranked as the #1 Golf Resort in the United States by
Golf Digest and Golf Magazine, Bandon Dunes offers unparalleled amenities to accompany its award
winning golf courses. KemperSports has been actively involved with owner, Mike Keiser during the
development phase and has managed all aspects of the resort since 1997.
"7 spent nearly a decade assembling the land to build Bandon Dunes Golf Resort. When it came to
choosing a development partner and management company, it was a simple choice. No one shared my
passion for golf and my commitment to the tradition of S cottish links like KemperSports. This team of
seasoned professionals have managed the golf and lodging operations and helped open all five of our
golf courses, four of which consistently rank among the top courses you can play in America.
KemperSports is more than a partner— they're kindred spirits."
-Michael Keiser, Owner
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September 11,2012
Seven KemperSports Properties Named to GOLF Magazine's List of Top ioo
Courses You Can Play
Bandon Dunes Golf Resort, Chambers Bay, The Glen Club and The Prairie Club are recognized in 2012 list
NORTHBROOK, Ill. - Sept. 11, 2012 - Seven KemperSports managed properties have recently been
recognized by GOLF Magazine and named to the publication's 2012 list of"Top 100 Courses You Can Play."
Determined by GOLF Magazine's course-rating panelists, this list is published biennially in the September
issue of the publication and features the best public-access courses in the U.S.
Pacific Dunes at Bandon Dunes Golf Resort in Bandon, Ore., tops the list this year and is ranked as the best
public course in the U.S. by GOLF Magazine. The course maintained its top position from 2010 and has held
the highest ranking on this list since 2006.
Following Pacific Dunes (No. 1), the"Top 100 Courses You Can Play" list features Bandon Dunes in Bandon,
Ore., No. 8, Old Macdonald in Bandon, Ore., No. 9, Chambers Bay in University Place, Wash., No. 14,
Bandon Trails in Bandon, Ore., No. 15, The Glen Club in Glenview, Ill., No. 72, and The Dunes Course at The
Prairie Club in Valentine, Neb., No. 78.
"It is a great honor to have a number of our managed properties ranked by the prestigious GOLF Magazine
panel," said Steve Skinner, CEO of KemperSports. "We are equally proud of the numerous other courses in
our portfolio that have also been ranked among the best in their state."
The Dunes Course at The Prairie Club is new to the"Top 100 Courses You Can Play" list this year. Designed
by Tom Lehman and Chris Brands, the course opened in May 2010 and was built into the natural, wind-
shaped landscape of the Sand Hills region of western Nebraska. Pacific Dunes, Bandon Dunes, Old
Macdonald, Chambers Bay, Bandon Trails and The Glen Club were all featured in the previous Top 100 list,
which was published in September 2010.
As part of GOLF Magazine's biennial "Top 100 Courses You Can Play" list, the publication also ranks the best
public courses in every state. Below is a list of KemperSports-managed properties that have also been
recognized by region in the publication's 2012 list of"Best Public Golf Courses in Every State."
California Nebraska
• No. 15: Desert Willow Golf Resort (Firecliff), • No. 2: The Prairie Club (Dunes), Valentine
Palm Desert • No. 3: The Prairie Club (Pines), Valentine
Florida New Jersey
• No. 16: Old Corkscrew, Estero • No. 16: Heron Glen Golf Course, Ringoes
Illinois New York
• No. 2: The Glen Club, Glenview • No. 11: Seneca Hickory Stick Golf Club,
Indiana Lewiston
• No. 5: Prairie View Golf Club, Carmel Oregon
Kansas • No. 1: Pacific Dunes, Bandon
• No. 2: Sand Creek Station, Newton • No. 2: Bandon Dunes, Bandon
Maryland • No. 3: Old Macdonald, Bandon
• No. 3: Whiskey Creek Golf Course, Ijamsville • No. 4: Bandon Trails, Bandon
Michigan • No. 15: Bandon Preserve, Bandon
• No. 8: The Golf Club at Harbor Shores, Benton Texas
Harbor • No. 9: Butterfield Trail Golf Club, El Paso
Minnesota Washington
• No. 2: The Wilderness at Fortune Bay, Tower • No. 1: Chambers Bay, University Place
9
KemperSports
KemperSports' Four Key Operating Businesses
Golf Course Golf Course!
Management development.
•; KemperSports'
Event Management Sales, Marketing and
Communications
Golf Course Operations
KemperSports has been managing golf facilities for public and private sector clients for more than 34
years. Today, we manage over 100 golf courses and stand-alone driving ranges across the United States
and Caribbean. Many of these courses are ranked in the Top 100 in the U.S. including Bandon Dunes
Golf Resort, recently ranked as The #1 Golf Resort in the U.S by Golf Magazine and Golf Digest; and
Chambers Bay, Tacoma, Washington, site of the 2010 U.S. Amateur and 2015 U.S. Open.
Golf Course Development
Over 33 years ago, KemperSports developed the Kemper Lakes Golf Course in Chicago, site of the 1989
PGA Championship, and viewed by many as the first "upscale public golf course" in the U.S. Since then,
we have developed or consulted on the development and pre-opening of over 45 golf course projects
throughout the United States. Today, we continue to have a golf course and clubhouse development
division to provide development and construction management services.
Sales, Marketing and Communications
KemperSports has an industry-leading marketing division to provide integrated marketing and public
relations services for both large and small clients. We excel at promoting products and services through
public relations, building brands through corporate marketing communications, creating exciting
experiences for our customers and clients and delivering information through professional copywriting
and design. Our success at integrating events, corporate sponsorships and public relations consistently
results in maximum visibility for our clients while building valuable relationships with customers.
Tournament Event Management
KemperSports has been hosting, managing and marketing collegiate, professional and national amateur
golf tournaments for over 40 years.
g,MI0.q R y+5 4 2010
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US. OPEN '� MPIONSHIP l+f♦���In�C CKLII[l MISERS •• •• '
IiAY SOON DUN err ? cylCA600+ `,.a
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KemperSportsa
KemperSports' Philosophy
One size does not fit all...
KemperSports is committed to the idea that one size does not fit all. With the best people in the golf
business and industry leading proprietary marketing and management tools, KemperSports delivers a
Custom Fit solution for each property we manage. This customized approach allows us to better
connect with customers, members and guests and deliver a superior customer experience. The end
result is peak property performance. Our Custom Fit approach, implemented in a transparent fashion,
has allowed us to outperform the industry year in and year out.
In addition, we embrace a hands-on, client-centric approach to managing our client's properties. Each
property we manage is supported by a team of experts including a regional operations executive, regional
marketing director, national food & beverage director, regional agronomist, national retail director and a
corporate controller.
Success at our managed properties is due, in large part, to the company's strong marketing prowess and
our strategy of marketing our client's golf courses as"Best in Class". We understand the most successful
daily fee, resort golf courses appeal to a broad player profile and, regardless of green fee, must provide a
"value proposition"to each and every customer.
Reive� N
m .rr..,.
• Revenue Management System
• Customized Sales, Marketing & Loyalty Strategies
• Center of Excellence
• Pace Reporting Tool
Customer Experience
• True Service Program r? `
• TrueReview Survey Tools
• Best-In-Class Course Conditions .t
• Player Development Programs
Operational Excellence v
• Installation of KS Fundamentals
• Staff Hiring, Testing &Training
• National Purchasing Power& P`
Expense Management
• Green-to-a-Tee Program
sF e .; 7 C, rt,
Tl
KemperSports
KemperSports' Municipal Portfolio Highlights
KemperSports currently manages 35 municipally-owned facilities throughout the U.S.
Highlights include:
0, As selected by Golfweek Magazine, 6 of the Top 50 Municipal Courses in the U.S in 2011 are
managed by KemperSports - see attached exhibit
0 8 of the 35 municipally-owned courses are at least 36 holes
0 Chambers Bay in University Place, WA, will host the 2015 US Open and hosted the 2010 US Amateur
Sand Creek Station in Newton, KS will host the 2014 USGA US Amateur Public Links Championship
0 Galloping Hill GC in Kenilworth, NJ, will host the 2016 New Jersey Open Championship
While we are proud of our entire portfolio of municipally-owned properties, we are especially proud of the
performance of our California municipal properties. These properties received the following recognition in
2011:
O Desert Willow Golf Resort—Palm Desert, CA
D. Ranked #25 "Best Municipal Courses" U.S., Firecliff—Golfweek
D Ranked #1 "Public Course in the Coachella Valley", Firecliff—Desert Golf Magazine
D. "Top 50 Courses for Women", Mountain View—Golf Digest
O Olivas Links—Ventura, CA
• Ranked #32 "Best Municipal Courses" U.S. —Golfweek
• "US Commerce Association Award", Best of Ventura for Exceptional Marketing Success
0 Black Gold Golf Club—Yorba Linda, CA
➢ Rated "Best Public Golf Course in Southern CA" by Golf Digest
➢ 4 '/2 Stars"Best Places to Play" by Golf Digest
D. 5 Stars "Bride's Choice Award"—The Wedding Wire
0 Ridge Creek Golf Club—Dinuba, CA
• Club Fitter of the Year in —Northern California Section PGA
Instructor of the Year, San Joaquin Valley Chapter—Northern California Section PGA
D "Business of the Year"—Dinuba Chamber of Commerce
O The Crossings at Carlsbad—Carlsbad, CA
v "Bride's Choice" San Diego Best Weddings, Venue—The Knot
"Where You Can Rip It"Top 3 of Southern California—The Western Golf Alliance
444 KemperSports®
Memorandum
To: John Wohlmuth
CC: Paul Gibson, Rudy Acosta,Martin Alvarez
From: Derek White,General Manager
Date: 7/1/2015
Re: Junior Golfer Programs offered at Desert Willow
Desert Willow Golf Resort and the Palm Desert Golf Academy are dedicated to growing the
game of golf through junior golfer development and playing opportunities. We have
participated and in many programs offered by the Southern California Professional Golfer's
Association (SCPGA),American Junior Golf Association(AJGA), PGA of America campaigns and
others over the years. Below is a summary of the Junior golfer programs currently offered at
Desert Willow Golf Resort and the corresponding policies are attached:
• Year Round Junior Golf Rates—Junior golfers are offered a rate of 50%off the public
rack rates when playing with a paying adult.
• $10 Green Fee Program—Juniors may play for$10 after the last tee time of the day on a
walk on basis. This program is year round.
• Fairway Kids Junior Programs—Weekly camps offered to juniors ages 6-12 throughout
the summer and during winter and spring breaks. The price is$199 and each junior
receives professional golf instruction,on course play and awards.
• Summer Family Golf Days—Starting the summer of 2014, Desert Willow has offered a
summer Family Golf Calendar of events. These specific days allow juniors to play for$1
each with the adult cost only$35. This program promotes families to play together.
Clinics, open play and other fun events have been scheduled for families to participate
in this summer.
• Driving Range Discount—Juniors are offered use of the practice facility for$10 (Range is
included with green fees complimentary). Range memberships at the Academy of
offered at$500 per year(Adult Price$1,900).
• Rental Club Discounts—Rental Clubs are available to Juniors for$20 and include
experienced balls. Adult rate$75.
• PDHS and COD golfer access—Palm Desert High and College of the Desert current team
members are offered complimentary play at Desert Willow as long as they adhere to
our attached policies. These rounds account for 25%of all complimentary rounds
played at Desert Willow(over 760 rounds annually).
The above programs are our standard junior programs;however,as mentioned above we
partner with other organizations to offer special junior clinics,programs and tournaments as
the need arises.
1
July 1, 2015
It was also requested we look into the SCPGA's Junior program. This program subsidizes green
fees up to$5 if the course agrees to charge up to$5. Therefore,the total green fee potentially
received is$10. The course is allowed to restrict access as necessary. Most courses who
participate restrict access to slow times of the day. This program is only offered to juniors who
are members of the SCGA. Since this program was only offered to SCGA members,we felt our
programs were sufficient to spur on Junior play.
2
Junior Golf Play Policy at Desert Willow Golf Resort
Mission Statement: To promote the game of golf through juniors by providing juniors of
all ages and skills an accessible and affordable practice area and golf course.
Definition: a child or young adult up to the time of high school graduation or 18 years of
age if unable to provide a valid student identification card.
Rules:
• All junior golfers must wear an athletic closed toe shoe or golf shoe, if spiked
it must have USGA approved soft spikes.
• All junior golfers must abide by the dress code: collared shirts required/no
denim or swim wear allowed.
• Junior golfers are required to walk unless accompanied by an adult at least 21
years of age. (see rates for golf car use below)
• Junior golfers must maintain required pace of play and follow proper golf
etiquette at all times.
• Parents leaving property must provide emergency numbers to the golf shop.
Rates:
Practice Facility
• Use of the practice facility is$10—Academy memberships are available for
juniors for$500/year
Golf Course
• Juniors pay 50% off the posted rate when reserving a time and riding with
a paying adult.
• Juniors are allowed to walk the course after the last reservation of the day for
only$10. (Walk on basis only, no advanced reservations allowed)
Golf Cars
• Golfing adults accompanying juniors must pay the appropriate green fee based
on the season,time of day,and customer type which includes the use of a golf
car.
• Non-golfing adults wishing to accompany a walking junior with a golf car
must pay a golf car rental fee of$15,agreeing that no more than two persons
ride in the car at all times. If we see juniors driving the golf car,hanging off
the car or operating dangerously they will be removed from the course
immediately,no exceptions.
Rental Clubs
• Rental Clubs are available to juniors for$20 and include Experienced balls.
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FAIRWAY KIDS JUNIOR GOLF CAMP L.S. h«<s Golf
CERTIFIED
Coachella Valley's Leading Summer Golf Camp for Boys and Girls Ages 6-12 INSTRUCTOR
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C k A S Juniors Learn to Play Golf Through Skills Development,On-Course Play,And Coaching
44)Al GOLD S . Fun and Active Program
Itsday PrO 5 • 6:1 Golfer to Coach Maximum Ratio
5_ : 6 1t,' e 22 �_ • On Course Shuttles with Ice, Water, and Towels to Keep Juniors Cool
iui it, i uk 2 e July 6 3 • Golf Swing Video Analysis
lune 29 16 e)u1y 20 2
ju$y 13 3-6 Summer Camp Daily Schedule
r 3� ° �u 45t 17-20 Academy Drop Off 8:00 am
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,-i J1e p u cipantS Per camp Dynamic Warm-Up 8:00 am-8:20 am
ited Shills Training 8:20 am-9:45 am
*Space is fim
to
Nutritious Snack 9:45 am-10:00 am
Ask About Sibling Discounts! (Fruit,Nuts,Sports Bars, Water and Gatorade)
Program Tuition...$199.00 per camp' On-Course Play 10:00 am-l2:00pm
*Include after 10:00 am(June-August) Academy Pick-up I:00pm
-
--"— -- Camp Celebration and Awards Thursday After Golf/ ail
t y ,( s *Early imp off and late pick-up arrangements are available for S t 0,00 per day
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GOLF ACADEMY/ To Register Call 760.340.4057 or visitwww.desertwillow.comlFairwayKids
- - 38-500 Portola Avenue•Palm Desert,CA•92260•www. almdesert of acade .cam• a@desertwillowcom
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Join us on select dates From July 10th 2015 through September I3ff'7 2015 For Fun, Family golf
activities, including Family FootGoIF Days, Family Tee Days, and Family Teaching Clinics.
Family Tee Days - Juniors play For just $1.00 with each paying Adult
Family Foo Goff Days - Juniors play For just $10.00 with each paying Adult ($20.00)
likutpkgae, ,"1 10-12 Satt rda ,Jul 18 Sunda ,Jul 19
Family FootGolf Day Family Tee Golf Day Family Tee Golf Day
Mountain View All Day FirecliFF After clam Mountain View After clam
•• , 26 Frida - •• ,A • 7-9 Saturda ,Au•• 15
Family FootGolf Day Family FootGolf Day `' Family Tee Golf Day
Mountain View All Day Mountain View All Day w, , FirecliFF After clam
___ Sunda A •ust 16 S •• . Sunda ,A •ust 30 . ,
Family Tee Golf Day Family FootGolf Day -r; Family Teaching Clinic
Mountain View After clam m„ Mountain View All Day Palm Desert Golf Academy
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Family Tee Golf Day Desert ., ' - Family Tee Golf Day
FireclifF After clam t�T,;��` -,---- Mountain View After 9am
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For More Information Visit w'w w.deserfVilloW.COmJFamityGolf or Call (760)346-0015
38-995 Desert Willow Drive I Pain,Desert, CA (92260
w.> ACADEMY MEMBERSHIP
4
•
Single Membership $1,900.00
Family Membership I $2,900.00
Purchase
Unlimited use of ACADEMY Practice Facility Platinum Club Membership ( Champions Club Membership I No
Fee and \o Monthly Dues ; Titleist Pro-VI Practice Balls for Putting and Chipping (4) Complimentary 50 M
Individuai I essnr3s (4) Complimentary Academy Day Passes for Friends and Family (1)Complimentary Acam
"Works" Club Fitting Complimentary Member-Only Clinics I Complimentary Bottled Water Annual Membc
Competition ar+: Member 9-Hole Outings and Special Events ( 30%OFF Apparel in the Academy and Desert
Golf Shops ! 25'0 OFF Academy Private Instruction,Club Fitting and TPI I l 0%OFF Restaurant Dining(Food
Only) Pi-eferr:.i Seating at Dining Special Events ; Member Bag Tag I USGA Handicap Private Parking
..; JUNIOR ACADEMY MEMBERSHIP
Juniors Ages 12 to 17 I $500.00
. _
Purchase
Unlimited use of ACADEMY Practice Facility I Year Round$10 Walking Fee (after last tee time of the day)
I3a Ta ! 9-Hole Junior Member Tournament j Junior Skills Challenge f Titleist Pro-V I Practice Balls for Put
and Ciiippint! ) 30 Minute Individual Junior Video Lesson k (4)Complimentary Academy Day Passes for F
and Iarnii'. (I)Academy"Works" Club Fitting
••
Palm Desert High School Play Policy at Desert Willow Golf Resort
Palm Desert H.S. Golf Team members are encouraged to play at Desert Willow Golf Resort at no
charge within the following guidelines:
• On Monday—Thursday during the appropriate teams"season" (Friday only with GM or Head
Professional approval.)
> No more than 12 players may play on any particular day(exception during qualifying and team
matches when the school may have as many as 24 players)
• Each player must check in at the golf shop, show identification that matches a name on the
team roster provided by the golf coach,and receive a receipt for the days play.
• Will only be allowed after the completion of all other play.
• Meet the dress code and all other regulations set by Desert Willow Golf Resort
> Any guest of the Palm Desert H.S,golf team member must pay the appropriate fees.
Team members are required to walk and will not be allowed to take a golf car.
Team members that would like to play on days not scheduled for team play are subject to
junior golf guidelines.These requirements are listed in the junior golf policy.
Any exceptions to this policy should be brought to the Head Golf Professional or General Manager for
approval.
Anything within this policy may be booked between the player and the Tournament Director, Head
Professional,or General Manager.
•Page 1
C.O.D. Play Policy at Desert Willow Golf Resort
College of the Desert Golf Team members are encouraged to play at Desert Willow Golf Resort at no
charge within the following guidelines:
> On Monday—Thursday during the appropriate teams"season"
• No more than 12 players may play on any particular day
• Each player must check in at the golf shop, show identification that matches a name on the
team roster provided by the golf coach,and receive a receipt for the days play.
All play will only be allowed after the completion of all other play.
Meet the dress code and all other regulations set by Desert Willow Golf Resort.
• Any guest of the C.O.D.golf team member must pay the appropriate fees.
Team members are required to walk and will not be allowed to take a golf car.
Golf Management Program Students are encouraged to play at Desert Willow Golf Resort for a$30 fee
within the following guidelines
On Monday — Thursday during the school year and while enrolled in the C.O.D. golf
management program (a list of these students must be provided by program instructor)
r Each player must check in at the golf shop, show identification, and receive a receipt for the
days play
• Will only be allowed after the completion of all other play.
• Meet the dress code and all other regulations set by Desert Willow Golf Resort
Any guest of the C.O.D. program student must pay the appropriate fee.
Students are required to walk and will not be allowed to take a golf car.
Any exceptions to this policy should be brought to the Head Golf Professional or General Manager for
approval.
Anything within this policy may be booked between the player and the golf professional on duty.
• Page 1
•
Memorandum
To: John Wohlmuth
CC: Paul Gibson, Rudy Acosta,Martin Alvarez
From: Derek White,General Manager
Date: 7/1/2015
Re: Programs offered to Residents at a Discount
In addition to the City's official Resident Program, Residents are offered other programs and
discounts at Desert Willow. Below are a summary of the additional discounts and programs
available:
• City Council approved a reduced rate of$30 for all resident card holders after 3pm from
May through September.
• Champion's Club—This program is a weekly league play program. The specifics are
listed below:
o Only Residents can participate
o Price is$299 for the membership(Resident Rate applies for weekly golf)
o League available October through May
o 52 Player block of tee times guaranteed each Wednesday Morning
o Tee times start at 7:30am (Shotgun if over 40 participants)
o 10%off Dining in the Restaurant(Food Only)
o 25%off Apparel(Non-Sale Items)
o 50%of Driving Range Access
o Complimentary SCGA Handicap
• Platinum Club Card Program—Residents receive discounted access to the Platinum Card
Program. Residents have historically received between $50 and$100 off the purchase
of the card compared to Non-Residents. 2014-2015 was the exception and no discount
was offered. There will be a discount in 2015/2016, but the exact amount has not
been determined. All other benefits received as a part of the program were the same
for Residents and Non-Residents.
• Summer VIP Card Program—Similar to the Platinum Card Discount, Residents have
historically been offered a discount to purchase the Summer VIP Card. The price for
Residents this year was$49 versus$79 for Non-Residents. All other benefits of
program were the same for all card holders.
Flyers for the above programs are attached with more detail. Management has not directly
offered discounts for Residents through the City's Resident Card program since it is a council
approved program.
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�.� -.� �� 2015 CHAMPIONS CLUB 1
,.. ,i ■ ,,' ",. Become a Part of the Best Mens and Ladies League in the Desert' -
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CLUB BENEFITS
M esert ' •$48 Resident Rate for Weekly Play f$5Buyln
y i, „ {{{NY Y •50%Off DrivingRange Discount
Golf Resort
:.i Pm ii$A Mrnmtain View •
•25%Off Golf Shop Apparel(Non-Sale Items) -.� ^
•15%Of Accessories,Gift Item,and Footwear r
". ° CLUB FEE (Non-Sale Items)
$149 for 2015 Partial Season •103%Of RestaurantDining(Food Ortly)
(Musthavea valid Resident's Card to participate) •Complimentary SCGA Handicap
Date Format Time Course
Wednesday,February 4,2015 Individual Stroke Play 7:30AM Shotgun Mountain View
Thursday,February 12,2015 Best 9 Holcs 7:30AM Shotgun Mountain View
Thursday,February 19,2015 Odds or Evens 8:00AM Shotgun Firecliff
,„ Wednesday,February 25,2015 Individual Stroke Play 7:30AM Tee Times Mountain View
Wednesday,March 4,2015 Stableford Points 8:00AM Shotgun Firecliff
Wednesday,March 11,2015 9 The Easy Way 730AM Shotgun Mountain View
Wednesday,March 18,2015 Odds or Evens 7:30AM Shotgun Mountain View
Wednesday,March 25,2015 9 The Hard Way 7:30AMFirecliff Shotgun Firecl ' p
Wednesday,April 1,2015 Individual Stroke Play 730AM Shotgun Mountain View
Wednesday,April 8,2015 Individual Stroke Play 7:30AM Shotgun Mountain View
Wednesday,April 15,2015 Member.:Member 7:30AM Shotgun Firecliff
Wednesday,April 22,2015 2 Person Scramble 7:30AM Shotgun Firecliff
Wednesday,April 29,2015 9 The Easy Way 7:30AM Shotgun Mountain View
Wednesday,May 6,2015 Blind Partners 7:30AM Shotgun Firecliff
Wednesday,May 13,2015 Individual Stroke Play 7:30AM Shotgun Mountain View
Wednesday,May 20,2015 Individual Stroke Play 7:30AM Shotgun Firecliff
2015 CHAMPIONS CLUB PARTIAL SEASON (February to May2015)
Name ------.__--____-- Phone Email
Address City/State/Zip
Form of Payment ['Credit Card(Circle One) VISA I MC I AMEX( DISCOVER Exp Date / Security Code
Name on Card Card Number
Authorized Signature
Note that your signature authorizes the charges to the designated credit card
Please Return his Form to the Desert Willow Gull Shop:38-995 Desert Willow Drive Palm Desert,CA I 92260 1 760.3.16.001 3
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Our Platinum CIub Card is one of the most popular frequent player _
programs in the Coachella Valley. Invest today and start enjoying the 7(1/1.i/ti N1
benefits of saving some serious green.
For Green Fee Schedule and More In ormation Stop b Our Gol Sho►, £)i t
Visit' %1W I esertm Iow.co} ' 1 , or CalI:`760 346-001 S
PU! '° PRICES 9C1/l'0
Pa m Desert Rest t ent— $229 .Non-Resident— $329 ,.
PURCHASE BEFORE OCTOBER 1sT AND SAVE $50!
•Discounted Green Fees for Cardholder and for up to 3 Guests
• Secure Tee Times up to 21 Days in Advance „..)
• 50% OFF Driving Range Follow the live Tweet with
@golfDWGR
•25% OFF Apparel(Non-Sale Items) pIaflrrumClubDWGR
• 15% OFF Accessories, Gift Items or Footwear(Non-Sale Items)
• 15% OFF Golf Lessons or Schools
• 10% OFF Restaurant Dining(Food Only) ,,. 00.ces,c.
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• Valid September 23,2013 through September 21,2014 e Golf Dige t
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CARD
►HOT DEAL, COOL_ CARD }' "
Play Like A VIP All Summer Long With Our 2015 Summer VIP Card,
The Hottest Deal In Desert Golf!
RESIDENTS - $49.00 1 NON-RESIDENTS - $79.00
Summer VIP Card Green Fees
May 26,2015 -September 20,2015 Posted Summer VIP
•Sinn 1sc' (Open-7:55am) $35
• Prirne(S:00ton-I0:25aiu) $35
• Tit'iliglrt (I0:30uut-12:55prri) $30
•Sunset (Ater 1:00pm) $25
Benefits of the 2015 Summer VIP Card Include:
• Discounted Green Fees for Cardholder
• Sectire Tee Times up to 7 Days in Advance
• 1/2 Hour Earlier Tivili,lit
• 5096 Of Driving Range
• 2596 Of f Apparel(Non-Sale)
• 1596 Off Footwear Accessories(Non-Sale)
• 1596 Of Golf Lessor is or Schools
• 1096 Off Restaurant Dining(Food Only)
• Valid Alai'26,2015 through Septen&er20,2015
Purchase lirur Sumner- VIP Card Today!
l'isit wwwdesertit'illow.com/VIP,stint into the Golf Shop or call760.3,16.0015
PalmDesert Children and dependents up to age 23 can obtain a card.
Resident Golf Card Proofeofd byo residency fo 11 winn and dependants must be
provided by one of the following:
r
Exclusively available to Palm Desert residents, the golf card `�' Student ID or registration documentation from a Coachella
provides discounted golf rates at the City-owned Desert Willow ',''ti';;., Valley school/college and legal documentation reflecting
Golf Resort. Residents with a card pay$48(subject to annual � that the child is the resident's dependent,as well as the
C.P.I.adjustments). ,� ,t.` parent/guardian's proof of residency,i.e.CDL/CID
and utility bill reflecting Palm Desert physical address;or
Child/dependent's CDL/CID with a Palm Desert address
Applying for a Resident Golf Card #a• x � t `�: ` s and parent/guardian's proof of residency reflecting the
The Desert Recreation District is responsible for verifying `,e v- same address,i.e.CDL/CID and utility bill with a
er.sidency and issuing cards. Stop by the Palm Desert " _ s_ Palm Desert physical address.
Community Center, 43-900 San Pablo Ave., Palm Desert, NOTE:If last name of child/dependent applying for the card is
Monday-Friday,6 a.m.to 8 p.m.,or Saturday,10 a.m.to 2 p.m. different from the parent/guardian,legal documentation that
Information:(760)568-9697 Applicants who do not have a valid CDL with a Palm Desert the child is the resident's dependent must be provided.
address may obtain a California Identification Card (CID)
Fees, Expiration, and Renewal issued by the Department of Motor Vehicles (DMV). Both friend or Significant Other
There is a processing fee of$10 per card per year.Replacement the CDL/CID and utility bill must reflect the same name and Each person must have a CDL or CID with a Palm Desert
of a lost or stolen card costs$15. physical Palm Desert address. If the applicant's CDL/CID address and one utility bill reflecting service to the Palm Desert
reflects a different address than that on their utility bill,they address. If the individual does not pay the utility bills,a bank
All cards expire annually at the end of the month in which they must change their address on record with the DMV and statement or other most recent official mail must be provided
were issued. Residents can renew cards one month prior to with the CDL or CID.
expiration. Proof of residency and payment of the obtain a certified copy of their driver's record on official DMV
processing fee is required annually. All requirements outlined letterhead reflecting the updated address. No handwritten
in"Proof of Residency"must be met at time of renewal. "Change of Address Certificate(DL43)"cards will be accepted. Desert Willow Rates for Non-Residents
Any exceptions must go through the appeal process. Non-residents pay Desert Willow's established seasonal
Please bring your current card with you when renewing. rate. Green fees are subject to change without notice.
Proof required by the DMV to obtain a CID varies; the basic For additional information on re
If you do not present your card at the time of renewal,it will green fees contact Desert Willow
be considered lost or stolen, and the$15 replacement charge information required is a birth certificate(certified copy)/legal Golf Resort.
applies. presence document(passport),and social security card. If you
are not required to obtain a social security number, then a Appeal Process
Determining Residency letter of denial from Social Security must be provided. Palm Desert residents with a P.O. Box or a non-residential
iplResidency is determined by a person's primary residence The DMV and Social Security require specific information.You are physical address(i.e.Mail Boxes Etc.or business address)listed
ccording to the California Vehicle Code, Section 12505. encouraged to contact those offices prior to your visit to ensure on their CDL/CID may request an appeal by providing a written
Resident Golf Cards will only be issued to residents who that you bring all necessary documentation. The following statement to the City's Director of Special Programs as to the
qualify by providing proof of this status. Residency is not forms are available at the agencies: "DMV Birth Verification/ circumstances/reasoning for the appeal along with the
automatically established by ownership of property in Palm Legal Presence Fast Facts","SSN Requirement Fast Facts",and following documentation:
Desert nor is it based on ownership of or employment with a "Lawfully Admitted Aliens-When You Need A Number And
Palm Desert business. When You Don't". 1. Previous year's tax return or property tax bill showing
the homeowner exemption;
2. Copies of three(3)months gas,water,and electric bill
Proof of Residency Other Individuals in the Home
A person must meet the following criteria to prove residency: Spouse/Dependents statements listing the applicant's name and Palm Desert
Valid California Driver's License(CDL)with a physical A spouse must show a CDL or CID with a physical Palm Desert residential/service address(no exceptions);and
to
Palm Desert address; address. A spouse's utility bill is acceptable, but it must reflect • Proof as se why a CDL/CID with resident's physical
Live within Palm Desert City limits;and the same last name. If the last names are different,a marriage Palm Desert address cannot be obtained.
. Bring a current utility bill,i.e.gas,water,or electric(not certificate is necessary for proof of residency for the unnamed NOTE:Appeal process is for residents with a legitimate reason
more than 30 days old/non-commercial properties)that spouse. If both last names are listed on the utility bill,then both for not listing their physical Palm Desertaddress on theirCDL/
notes the resident's name and Palm Desert service address. may obtain a Resident Golf Card. CID(e.g.for public safety personnel or safety reasons).
Resident Golf Card Rules Helpful Numbers &More Information
1. Resident Golf Cards may only be used by the Desert Recreation District
registered cardholder. 43-900 San Pablo Avenue,Palm Desert,CA 92260 Palm Desert
2. Resident Golf Card holders may book tee times (760)568-9697
up to 72 hours in advance of desired time. City of Palm Desert Resident
3. Resident Golf Card holders reserving a tee time 73-510 Fred Waring Dr.,Palm Desert,CA 92260
more than 72 hours in advance,or playing as Phone: (760)346-0611 Fax: (760)340-0574 Golf Card
part of a group in a tee time made more than Email: friddle@cityofpalmdesert.org
72 hours in advance,will be charged the full rate. Desert Willow Golf Resort
4. All guests of Resident Golf Card holders 38-995 Desert Willow Drive,Palm Desert,CA 92260
will be charged the full rate. (760)346-7060 Eiuictelines and Rules
Department of Motor Vehicles �T
5. Residents who do not present their Resident Golf 74-740 Technology Drive, Palm Desert,CA 92211
Card at time of check-in will be charged the full rate. 800-777-0133
6. Resident Golf Card holders are required to Social Security Office
guarantee tee times with a credit card. 800-772-1213 p°
Cancellations must be received by the golf shop )1'
no later than 48 hours prior to the scheduled tee 111-„roc,...- er
time. No-shows are billed in full.
7. Resident Golf Cards are issued on an annual
basis and expire at the end of the month in PALM DESERT Golf Resort
which they were issued.
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STUDY SESSION AGENDA
• Resident Program Update
— Champion's Club Update
— Resident Play Statistics
— Resident Card Requirements
• Existing Contract
— Description of Existing Terms
— Contract Option vs. RFP
• Financial Results
— DWGR Financials
City of Palm Desert
Resident Play Statistics — Rounds Played
Resident Rounds vs. Total Rounds
100,000
• 90,000
80,000
•
70,000
60,000
w
50,000
0
c
40,000
30,000
20,000 -��+
• 1 0,000
e cP''' cp ci) cip cP1 cP cPc' otio o,~ o', o'N. oN. c*.
,ti\1' 4ti\`� ,A,,\'ti ,e\\"1 cP`'\� cPC\� ,z41' ,Act,\'ti ,(\ti o1°\' o1,1\ti o'ti\ti o�' o1a\ti
ti ti ti ti ti ti 1 ti ti 1 ti ti ti 1
Fiscal Year
--S—Total Resident Rounds Played — Total Rounds
City of Palm Desert
Resident Play Statistics — In Season Rounds Played
Resident
Total Resident Playas a
Fiscal Year Rounds from
Oct - Apr
of Total
Rounds
2014/2015 15,574 25%
2013/2014 18,010 29%
2012/2013 17,782 30%
2011 /2012 18,333 30%
2010/2011 18, 146 30%
2009/2010 17,363 29%
2008/2009 19,617 l 34%
2007/2008 16,374 27%
City of Palm Desert
Resident Play Statistics — % of Rounds by Time Slot
• Month % of Resident % of %of Resident %of Resident
(2014/2015 Play Sunrise Resident %of Resident
Play Midday (11 Play Twilight
(Open - Play Prime Play All Times
Stats 7:55am) (8-10:55am) 't2 55pm) (1 Close)
October 35% --� 25% 29% 12% 26%
November 36% 21% 33% 19% 26%
December 36% 38% 37% 12% 33%
January limb 33% 40% 32% - 21% 35%
February 25% 24% 20% : €; 26% 23%
• March 27% 26% 36°A - 15% 26%
April 35% 35% 30% 16% 31%
City of Palm Desert
KemperSports Contract History
• 1996 — 2001 (Original) 5 years
• 2001 — 2003 3 years
• 2003 — 2006 3 years
• 2006 — 2008 2 years
• 2008 — 2011 3 years
• 2011 — 2012 1 year
• 2012 — 2013 1 year
• 2013 — 2016 3 years (Current)
• 2016 — 2017 1 year (Option)
• 2017 — 2018 1 year (Option)
City of Palm Desert
Special Contract Provisions
• 20 Mile Radius ` Non-Compete' clause
• - Maintains `uniqueness' of KemperSports Management services
— Focus on Desert Willow as opposed to other local courses within
area
• Key Employees Clause
— Protects key KemperSports Management personnel from hire by
City
• $500K Cash Flow Requirement
• - Funds used to cover monthly expenses prior to City reimbursement
— Covers expenses during off-season months
City of Palm Desert
Why Solicit New Operator?
• Non-Compliant with City Policies/Operation Procedures?
• Consistent Poor Customer Service Ratings?
• Improper Care/Maintenance of Golf Facilities (Courses,
Clubhouse, Infrastructure)?
• Exercise Poor Financial Practices?
• Failure to Meet Audits?
• Operate Outside City Business Plan , Goals, Objectives?
City of Palm Desert
Discussion : Contract Option vs . RFP ?
Option : RFP:
• Retain institutional knowledge of Desert • Potential to reduce management fees
• Willow — systems, facilities and programs New perspectives on managing the facility
• Knowledge/Compliance with City policies Potential to broaden market
and procedures
• Positive relationships with Desert Willow
developments — Intrawest and Westin
• Reliable customer service performance
levels and product quality important to
potential developers
• Customer service performance remains at
a high rating
4110 • KemperSports Management is compliant
with non-compete clause (20 miles)
• Avoids potential layoffs of existing staff
(110)
• Avoids lengthy RFP process (4-6 months)
• Over 35 years experience in municipal golf
club management
• Financial performance meets/exceeds
goal of City City of Palm Desert
was
f #
DWGR Financial Results
2014/2015 2013/2014 2012/2013 2011/2012
Golf Revenue $ 7,894,676 $ 7,804,903 $ 7,349,155 $ 7,635,352
F&B Revenue $ 2,671,630 $ 2,450,213 $ 2,343,733 $ 2,314,665
Total Revenue $ 10,566,306 $ 10,255,116 $ 9,692,888 $ 9,950,017
EBITDA $ 1,498,769 $ 1,391,720 $ 607,759 $ 841,560
Rounds 87,252 89,001 84,314 86,671
Average Green Fee $ 72.78 $ 71.21 $ 70.64 $ 71.64
City of Palm Desert 10
• QUESTIONS?
City of Palm Desert
Desert Willow Golf Resort Financials
Desert Willow Gott Resort
Standard Summary Income Statement
For the Twelve Month.Ending Jury 30,2012
MID %d MID %of YTD %of YTD %of Annual Rolling
Actual 6069et Bucket Nlor♦e4r PY Actual Bu69et Bu69a1 Rid Yost PY Brbgel 12 Months
1177.257) (176,0I71 134% 1161.141) 105% EBr7DA 781.115 1.361,701 SI% 647.735 122% 1,351,701 711,955
1162,134) (I05150) 79% 1137,707) 110% MANAGEMENT FEES (177,134) (410250) 91% 1154,3161 127% (410,250) 1137,04)
'NNWCNO ACITMTY
(1,569) (1.1W4) ti* (5.3591 R Sanest Eveme'Debt (20.0031 (20.000) Ian (14,559) 1Jr11. (20.006) 720,000)
(9073) (0404) ta+ (7,125) 12. honest Eipense.Lease7 (911DI) (72.728) 175% 126,5571 xe% (72.725) (St101)
2 0 011 t 20ri ederesi Intone 15 0 0% 237 el
0 15
(10,541} 410,070) 106% 113,03) N% TOTAL FINANCING AC 7101Y (111,9671 (12.720 120% 144.301) 251% (92,721) (111,047)
)711ER INCOME(EXPENSE)
1117137) (106.500) tma (1e1,773) M% Oetrre'cnbon 3 amortize.. 11.009251 0,020001 0%
0 0 0% (8,921) 0% GanitIn00)On D u 00os4)Of Aer 0 n (6ti021) 170 (1.]D2.0001 II.OB91s01
72 ors 0 r36 .1970% 7aen {0(775 0 0
(724) 0 � (775) tm 0 S724)
[109.1271 (101.600) 102% 1117.6301 67% 70701 OTHER NC OW t5290343E) 1.392.000(1661.976) {1.392000) 12% (151.617) /21% {1,302.000) (1,041.175}
(459,974) (451,842) 102% (512,419) 90% NET INCOME (839.201) (515,277) 162% (607,167) 136% (516,277) (636,201)
6.154 5.800 109% 6,177 906 Pad 00onr07 05.370 83,735 t,,, 85 749 tee. 03.735 63.326
173 236 73% 245 716 Other Rands 3.345 2.774 121% 3.015 1l1% 2 774 3.34S
8.327 8.018 105% 8.722 0% Total Rounds 66671 B8509 tom 06.764 100% 60.509 86.671
161.52 38466 00 15545 II11 Re.en,.Fad Roags 191.83 19380 me
355 3105 59080 11.032 98
55963 361.30 IOW 353{] Ht2 Re.ReveRevenue/lots/ o lo Rounds 36610 590 Vet 97 f048156 ild SIF25
f9060 f995 iB
55137 S54.37 tau 54564 6tt7 Green Fees/Cart Fen Per Pad Rands 57451 17540 20i7 37221 71:.. 0640 352327
149 96 35223 moos 344.16 71 13 Green Fen/Can Fen per Total Rounds 171 64 574 02 097
569.01 it r, f51 02 1S12 37
f111 {017 s4 to SO el st 0 a 0M FMB Re.ex7rIRa,nOa ff 11 f115 sea 31.01 s1:s
3535 f750 WTI 6459 6t tRevenue/total �ae Revenue/total Roras f68e 1673 71 5125 2
575] It rc 18.73 i10)01.12
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♦ ♦
DWGR vs. SoCal and National Markets
(PGA PerformanceTrak Statistics)
The PGA of America collects statistics for golf courses Nationwide. Below are some
key indicators and how Desert Willow Golf Resort compares.
YTD 2015 (January through September) Desert Willow SoCal PGA Section California United States
Rounds Played (per 18 holes) 34,098 28,456 25,447 18,574
Utilization (%) 63.0% 43.2% 39.5% 27.7%
Golf Fee Revenue / Rounds Played ($) $ 70.62 $ 55.77 $ 55.77 $ 45.73
Total Revenue / Rounds Played $ 115.84 $ 80.77 $ 94.28 $ 84.12
2014 (January through December) Desert Willow SoCal PGA Section California United States
Rounds Played (per 18 holes) 43,887 36,897 31,444 23,917
Utilization (%) 63.7% 47.7% 35.7% 27.0%
Golf Fee Revenue / Rounds Played ($) $ 72.65 $ 70.82 $ 61.92 $ 44.54
Total Revenue / Rounds Played $ 119.75 $ 110.36 $ 121.90 $ 88.75
City of Palm Desert
♦ a
Customer Service Results
1,4; KemperSports TrueReview-
TrueReview serves as the measuring tool for our proprietary TrueService
customer service program. TrueReview surveys are sent daily to all golfers
who played the previous day. Below is a summary of the customer
responses for the last two years:
DESERT WILLOW GOLF RESORT
Fiscal Year Net Promoter Overall Service Course Food Recommend # of
Score (NPS) Rating Rating Rating Rating Rating Surveys
2014/2015 73.8 9.0 9.3 8.6 8.5 9.2 1 ,821
2013/2014 72.5 8.9 9.1 8.7 8.4 9.2 1 ,209
City of Palm Desert
�• •
♦ ♦
Customer Service (Continued)
Net Promoter Score (NPS)
The Net Promoter Score, or NPS, is based on the fundamental perspective that every
company's customers can be divided into three categories: Promoters, Passives, and
Detractors.
By asking one simple question — How likely is it that you would recommend Desert
Willow to a friend or colleague? — you can track these groups and get a clear measure
of your company's performance through your customers' eyes. Customers respond on
a 0-to-10 point rating scale and are categorized as follows:
❖ Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer
others, fueling growth.
❖ Passives (score 7-8) are satisfied but unenthusiastic customers who are
vulnerable to competitive offerings.
❖ Detractors (score 0-6) are unhappy customers who can damage your brand
and impede growth through negative word-of-mouth.
To calculate your company's NPS, take the percentage of customers who are
Promoters and subtract the percentage who are Detractors.
0=Not atoll likely S=Neutral 10=Extremely Likely
0 1 2 4 5 6 7 b
NPS Promoters (%) MINI Detractors (%)
ewes
(Net Promoter Score) (9s and 10s) (0 through 6s)
City of Palm Desert
•
Customer Service (Continued )
Below are a list of NPS scores for well known companies who are
leaders in their industry and how their score compares to Desert
Willow's.
Company 2015 NPS Score
Desert Willow 73.8
Costco 79
Starbucks 77
Amazon 69
Southwest Airlines 62
Westin 59
Walt Disney 50
Apple 47
NGF Premium Facilities 45.7
Nike 30
City of Palm Desert
0
Customer Service (Continued)
Desert Willow is also measured by customers on external websites. Below is a
summary of Desert Willow's results on popular sites:
TripAdvisor Ranking Overall Excellent Very Good Average Poor Terrible Total
Reviews
(Cummulative Results)
Golf(Attraction Category) #4 of 20 4.5 of 5 146 46 13 7 2 214
F&B (Restaurant Category) #9 Of 220 4.4 of 5 68 23 13 4 1 109
YELPOverall 5 Stars 4 Stars 3 Stars 2 Stars 1 Star Total
Reviews
(Cummulative Results)
DWGR 4 Star 37 21 4 9 6 77
Rating
Golf Advisor Overall 5 Stars 4 Stars 3 Stars 2 Stars 1 Star Total Recommend
Reviews
(Cummulative Results)
Firecliff 4.28 Star 50 29 10 5 1 95 90.1%
Rating
Mountain View 4.47 Star 62 35 4 0 3 104 95.1
Rating
City of Palm Desert
•
a..
rs
Awards
Golfweek Magazine I Golfweek's Best Municipal Course
..�.;. • #29 - Firecliff Course 2014
41r, • #33 — Firecliff Course 1 2013
MUNIOPAI
Golf Digest Best Places to Play
Q`p,CEST • Mountain View 4 1/2 Stars 1 2000-2014
y�
2008/20094
1/4 • Firecliff 4 Stars 1 2000-2014
Golf Digest • Top 50 Courses for Women 2012, 2013
* * * * �
Golf World Readers Choice I Top 50 Public Courses
• Rated # 25 2010
TOP
&&
PUMJC
READERS'
CHOICE
Desert Golf Magazine
• Firecliff Rated #1 Public Course in the Coachella Valley 2012, 201 3
City of Palm Desert
.
•.*
♦r•
Awards
C V Weekly
C�WEEKLY • Best Public Course 12014
BEST PUBLIC
GOLF COURSE
2014
Desert Sun's: Best of the Valley
• Voted 1st Place Public Course 12003-2006, 2008
• Voted 2nd Place Public Course 12010, 2011, 2012
• Voted 3rd Place Public Course 12013
Desert Golf Guide Top 100 Holes
• #44 I Firecliff#17
• #58 I Mountain View #9
• #68 I Firecliff#6
• #76 I Mountain View #10
WeddingWire.com
WEDDINGWI? • Couples Choice Award 2015
COUPLES'CHOICE
Awards
City of Palm Desert 20