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FINANCIAL STATEMENT The proposed Extension and Amendment of the Agreement with Pleasanton Golf, LLC (CourseCo) is for a period of 5 years with an option to extend the agreement for one additional 3 year and one 2 additional year terms. The cost of the Agreement to the City in the first year may not exceed $150,000, and the next four years will increase by a maximum of the CPI on July 1, 2021 and July 1st thereafter, in the same proportion as changes to the Consumer Price Index in each subsequent contract year. Funding for the payments to CourseCo would be generated through golf course revenues. BACKGROUND In August 2001, the City solicited proposals from various golf course operators to operate and maintain the proposed municipal golf course in the Happy Valley area (Callippe Preserve). A total of 10 proposals were received and reviewed by a screening committee comprised of Golf Committee members and City staff. Three firms were invited to make presentations to a selection subcommittee and, after careful review and visitations to several currently operated courses, Pleasanton Golf, LLC (CourseCo) was recommended as the proposed operator for Callippe Preserve. CourseCo, Inc. is a Petaluma based company that has been operating public golf courses since 1989. CourseCo operates and manages 38 facilities including locally: Boundary Oak in Walnut Creek, Metropolitan Golf Links in Oakland, Las Positas in Livermore, Crystal Springs in Burlingame, Deep Cliff in Cupertino, Los Lagos and Rancho Del Pueblo in San Jose, Napa Golf Course in Napa, Foxtail Golf Club in Sonoma County, Pacific Grove and Laguna Seca in Monterey County, Petaluma GCC in Petaluma, Rio Vista GC in Rio Vista, Ancil Hoffman and Cherry Island and Mather GC in Sacramento County, and Callippe Preserve in Pleasanton. In 2004, the City of Pleasanton entered into two separate agreements with Pleasanton Golf, LLC (CourseCo) which is wholly owned by CourseCo, Inc., to prepare Callippe Preserve Golf Course for public play, and to operate the course for the City once it was opened. The Operator Agreement commenced prior to the opening of the golf course, to allow sufficient time for Pleasanton Golf, LLC (CourseCo) to secure staff and equipment. Under the Agreement, Pleasanton Golf, LLC (CourseCo), has acted as the City's agent in all matters related to golf course operations, including employment of all golf course personnel. In 2010, the City entered into a 5-year Operator Agreement with Pleasanton Golf, LLC (CourseCo) that ended on June 30, 2015. In the first year of the agreement, the combined fixed/incentive fee could not exceed $180,000. The combined management fee (fixed and incentive) increased by a maximum of$6,000 each year for the remaining 4 years (approximately 4% each year). The City has utilized revenues generated from golf course operations to pay for all operating costs, and prior to the City paying off the golf course debt in June 2013, any excess funding was used first to make annual debt service payments on the bonds sold to finance the course construction, and second, to pay back the loan from the General Fund that was used to help construct the infrastructure that supports the golf course including roads and utility lines. Page 2 of 5