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o Management Fee — Proposed payments are equally divided between both a <br /> "fixed" and "incentive" management fee, and are outlined below. The first year <br /> "fixed" fee is $102,000, and the combined management fee (fixed and incentive) <br /> increases by a maximum of the Consumer Price Index (CPI) on July 1, 2016 and <br /> July 1st thereafter. In addition, an "incentive" fee can be achieved on gross <br /> revenues (excluding food and beverage, merchandise and lessons) after <br /> established revenue thresholds have been achieved. In year one, Pleasanton <br /> Golf, LLC would receive 15% of all gross revenues in excess of $3,000,000. In <br /> addition, they would receive 15% of all food and beverage revenues in excess of <br /> $950,000. In no event could Pleasanton Golf, LLC (CourseCo) receive an <br /> "incentive" fee that is greater than the "fixed" fee: <br /> Operating Year Total Management Fee 50% Fixed Fee <br /> Attainable <br /> July 1, 2015 to $204,000 $102,000 <br /> June 30, 2016 <br /> On July 1, 2016 and on each July 1st thereafter the amounts indicated above, for <br /> the ensuing year, shall be increased in the same proportion as changes in the <br /> Consumer Price Index, All Urban Consumers, San Francisco-Oakland-San Jose <br /> area; base years 1982-1984 = 100 published by the U.S. Dept. of Labor, ("CPI") <br /> shall have occurred since July 1, 2015. <br /> As noted above, the proposed Extension and Amendment of Agreement with <br /> Pleasanton Golf, LLC is for a period of five (5) years. Under this Agreement, Pleasanton <br /> Golf, LLC would not have an ownership interest in the golf course, but merely manage <br /> the maintenance and operations of Callippe Preserve for the City. Expenses would be <br /> passed through for reimbursement by the City from golf course revenues. Pleasanton <br /> Golf, LLC would receive the noted "fixed" fee each year of the contract, with any <br /> "incentive" fee payments tied to meeting aggressive revenue goals, including green <br /> fees, cart rentals, driving range, merchandise, lessons, and food and beverage. <br /> Submi e / Fisc view: Approved by: <br /> 0 <br /> Daniel Sm , Tina Olson Nelson Fialho <br /> Director of Operations Services Director of Finance City Manager <br /> Attachment: <br /> 1. Extension and Amendment of Golf Course Operator Agreement <br /> 2. CourseCo Agreement Comparison <br /> 3. Operator Agreement between the City of Pleasanton and Pleasanton Golf, LLC <br /> Agreement available online; Exhibits A-U available at the City Clerk's office upon <br /> request <br /> Page 4 of 4 <br />