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Home My WebLink About05004 - NATIONAL GOLF FOUNDATION CONSULTING INC GOLF COURSE CONSULTING SERVICES TAHQUITZ CREEK GOLF RESORT Document Tracking Page: 26 Report: Documents to Expire within 180 days for ALL Groups,ALL services,ALL XREFs-Summary September 1,2005 Document# Document Descrintion Approval Date Expiration Date Closed Date A4990 Water Facilities Agreement A. D. 162 Villas In Old P S 48 @ Baristo P S 11/03/2004 11/01/2005 Company Name: Desert Water Agency Address: P.O. Box 1710, Palm Springs, CA 92263 Service: In File xRef: ENGINEERING Ins. Status: No Certificate on file. A5003 Subdivision Agr Fm 31354 2765 &2801 Spc Section 35 11/17/2004 11/01/2006 Company Name: Palm Canyon Townhomes LLC Address: , , Service: In File xRef: ENGINEERING Ins. Status: No Certificate on file. A5004 Golf Couse Opr Audit Consulting Service$46,000 City Portion$35,000, 12/01/2004 12/01/2005 Company Name: National Golf Foundation Address: Service: In File xRef: PARKES&RECREATION �;' `. v g`LL' Ins. Status: No Certificate on file. `. LAJ �+r' �r National Golf Foundation Consulting Inc Golf Course Consulting Services AGREEMENT#5004 MO 7590, 12-1-04 CITY OF PALM SPRINGS CONTRACT SERVICES AGREEMENT FOR PROVIDING GOLF COURSE CONSULTING SERVICES THIS CONTRACT SERVICES AGREEMENT (herein "Agreement"), is made and entered into this day of _ � v_uiV _ , 2005 by and between the CITY OF PALM SPRINGS, a municipal corporation, (rein "City") and National Golf Foundation Consulting, Inc., (herein "Contractor"). (The term Contractor includes professionals performing in a consulting capacity.) The parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference, which services may be referred to herein as the "services" or "work" hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Contractor's Proposal. The Scope of Service shall include the Contractor's proposal which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. 1.4 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest,which may be imposed by law and arise from or are necessary for the Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees,assessments,taxes penalties or interest levied,assessed or imposed against City hereunder. 1.5 FamiliaritV with Work. By executing this Contract, Contractor warrants that Contractor(a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed, and (c)fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Contractor discover any latent or unknown conditions,which will National Golf Contract-Final 12-28.doc ] ORIGIi Av _ Li� AND/OR AGREEMENT materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer. 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers,documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. 1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other. 1.8 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i)the Contract Sum,and/or(ii)the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of up to five percent (5%) of the Contract Sum or $25,000;whichever is less, or in the time to perform of up to one hundred eighty(180)days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore. 1.9 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the"Special Requirements"attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit"B" and any other provisions of this Agreement, the provisions of Exhibit"B" shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of Forty Six Thousand Dollars, ($46,000) (herein "Contract Sum"), except as provided in Section 1.8. The method of compensation may include: (i)a lump sum payment upon completion, (ii) payment in accordance with the percentage of completion of the services, (iii) payment for time and materials based upon the Contractor's rates as specified in the Schedule of Compensation, but not exceeding the Contract Sum or(iv)such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expense, transportation expense approved by the Contract Officer in advance, and no other expenses and only if specified in the National Golf Contract-Final 12-28.doc 2 Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City; Contractor shall not be entitled to any additional compensation for attending said meetings. 2.2 Method of Pavment. Unless some other method of payment is specified in the Schedule of Compensation, in any month in which Contractor wishes to receive payment, no later than the first(1 st)working day of such month, Contractor shall submit to the City in the form approved by the City's Director of Finance, an invoice for services rendered prior to the date of the invoice. Except as provided in Section 7.3, City shall pay Contractor for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the "Schedule of Performance"attached hereto as Exhibit"D", if any, and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer, but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Maleure. The time period(s)specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten(10)days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement,however caused, Contractor's sole remedy being extension of the Agreement pursuant to this Section. 3.4 Term. Unless earlier terminated in accordance with Section 7.8 of this Agreement,this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit"D"). 4.0 COORDINATION OF WORK National Golf Contract-Final 12-28.doc 3 4.1 Representative of Contractor. The following principals of Contractor are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Richard B. Singer Director of Consulting Services It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducementfor City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the foregoing principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontractinq or Assiqnment. The experience, knowledge,capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise,without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent(25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. The City's policy is to encourage the awarding of subcontracts to persons or entities with offices located within the jurisdictional boundaries of the City of Palm Springs and, if none are available, to persons or entities with offices located in the Coachella Valley ("Local Subcontractors"). Contractor hereby agrees to use good faith efforts to award subcontracts to Local Subcontractors, if Local Subcontractors are qualified to perform the work required. In requesting for the City to consent to a subcontract with a person or entity that is not a Local Subcontractor, the Contractor shall submit evidence to the City that such good faith efforts have been made or that no Local Subcontractors are qualified to perform the work. Said good faith efforts may be evidenced by placing advertisements inviting proposals or by sending requests for proposals to selected Local Subcontractors. The City may consider Contractor's efforts in determining whether it will consent to a particular subcontractor. Contractor shall keep evidence of such good faith efforts and copies of all contracts and subcontracts hereunder for the period specified in Section 6.2. National Golf Contract-Final 12-28.doc 4 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge,supervision or control of Contractor's employees,servants,representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. 5.0 INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. The Contractor shall procure and maintain,at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance: (a) Commercial General Liabilitv Insurance. A policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of a least $1,000,000 bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations.The Commercial General Liability Policy shall name the City of Palm Springs as an additional insured in accordance with standard ISO additional insured endorsement form CG2010(1185) or equivalent language. The Commercial General Liability Insurance shall name the City, its officers, employees and agents as additional insured. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in an amount which fully complies with the statutory requirements of the State of California and which includes $1,000,000 employer's liability. (c) Business Automobile Insurance. A policy of business automobile liability insurance written on a per occurrence basis with a single limit liability in the amount of $1,000,000 bodily injury and property damage, Said policy shall include coverage for owned, non-owned, leased and hired cars. (d) Additional Insurance. Additional limits and coverages, which may include professional liability insurance, will be specified in Exhibit B. All of the above policies of insurance shall be primary insurance. (Reference Section 5.4 regarding sufficiency.) The insurer shall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents, and their respective insurers. In the event any of said policies of insurance are canceled,the Contractor shall, prior to the cancellation date,submit new evidence of insurance in conformance with this Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance, endorsements or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance, endorsements,or binders are approved by the City. National Golf Contract-Final 12-28.doc 5 The contractor agrees that the provisions of this Section 5.1 shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or person for which the Contractor is otherwise responsible. In the event the Contractor subcontracts any portion of the work in compliance with Section 4.3 of this Agreement the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same polices of insurance that the Contractor is required to maintain pursuant to this Section. 5.2 Indemnification. Contractor agrees to indemnify the City, its officers,agents and employees against, and will hold and save them and each of them harmless from, any and all actions,suits, claims, damages to persons or property, losses, costs, penalties,obligations, errors, omissions or liabilities, (herein"claims or liabilities")that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees,subcontractors, or invitees, provided for herein,or arising from the negligent acts or omissions of Contractor hereunder, or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement,whether or not there is concurrent passive or active negligence on the part of the City, its officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents or employees, who are directly responsible to the City, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys'fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers,agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys'fees. 5.3 Performance Bond. Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of this Agreement, in the form provided by the City Clerk, which secures the faithful performance of this Agreement, unless such requirement is waived by the Contract Officer. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement. National Golf Contract-Final 12-28.doc 6 5.4 Sufficiencv of Insurer or Suretv. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A"or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, unless such requirements are waived by the City Manager or designee of the City ("City Manager") due to unique circumstances. In the event the City Manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the performance bond required by this Section 5 may be changed accordingly upon receipt of written notice from the City Manager or designee; provided that the Contractor shall have the right to appeal a determination of increased coverage by the City Manager to the City Council of City within ten (10) days of receipt of notice from the City Manager. 6.0 REPORTS AND RECORDS 6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact,circumstance,technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services,the estimated increased or decreased cost estimate for the project being designed. 6.2 Records. Contractor shall keep, and require subcontractors to keep, such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. 6.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement,and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all damages resulting therefrom. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. National Golf Contract-Final 12-28.doc 7 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute,claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the injured party; provided that if the default is an immediate danger to the health,safety and general welfare, such immediate action may be necessary. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's or the Contractor's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor's acts or omissions in performing or failing to perform Contractor's obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other parry requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. National Golf Contract-Final 12-28.doc 8 7.6 Legal Action. In addition to any other rights or remedies, either parry may take legal action, in law or in equity, to cure, correct or remedy any default,to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Liquidated Damaqes. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of _NONE ----------------($----------) as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance (Exhibit "D"). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. 7.8 Termination Prior to Expiration Of Term. This Section shall govern any termination of this Agreement except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty(30)days'written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Agreement at any time upon, with or without cause, upon sixty (60) days' written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as maybe specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. 7.9 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7.10 AttorneVs' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action,taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. National Golf Contract-Final 12-28.doc 9 8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of Citv Officers and Emplovees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of the City shall have anyfinancial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Aqainst Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid,first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, CITY OF PALM SPRINGS, P.O. Box 2743, Palm Springs, California 92263, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two(72)hours from the time of mailing if mailed as provided in this Section. 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Integration;Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements,agreements and understandings, if any, between the parties,and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or National Golf Contract-Final 12-28.doc 10 unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that(i)such party is duly organized and existing, (ii)they are duly authorized to execute and deliver this Agreement on behalf of said party, (III) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. SIGNATURES ON NEXT PAGE National Golf Contract-Final 12-28.doc 11 IN WITNESS WHEREOF,the parties have executed and entered into this Agreement as of the date first written above. CITY OF PALM SPRINGS - "ATTEST: a municipal corporation y./ J ._ r� :... .s _._.. Es ity Clerk City Manager APPROVED AS TO FORM: Agreement Amount By: � .,°� e � Qe� e�ved �� ravedby py n d r 3� N p� y City Attorney Procurement chi Contracting ill National Golf Contract-Final 12-28.doc 12 !fir` �� _ � � � �. CONTRACTOR: Check one:__Individual—Partnership ✓Corporation Corporations require two notarized signatures: One from each of the following. A. Chairman of Board,President,or any Vice President: AND B.Secretary,Assistant Secretary,Treasurer,Assistant Treasurer,or Chief Financial Officer). Signatl otarized) Signature( otarized) Name:—_Joe l�,edl ----------- Name:_ 'L�VI( AA w1L(sdYY`_ ' Title_11<es l d e.wt i CEO____----_-- Title:- S o to .•tAJL f, National Golf Foundation Consulting, Inc. Address:1150 South U.S. Highway 1, #401 Jupiter, FL 33477 State of jeb p State of /'/-/D�rti County of_ aie, �ykss /J G //�� County of.�kl.�s.�sc�s Ont Aeforeme, ✓-J� 1-011d.KS k� On I/Lj_[O 5i before me, /IU- +� 10��_h_S_�'y _ personally appeared fo e /3 act ITS_ personally appeared 16 1M erlt yy_� .4 s o M 7� personally known to me (or proved to me on the basis of personally known to me (or proved tGme on the basis of satisfactory evidence)to be the person(s)whose name(s)is/are satisfactory evidence)to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the capacity(ies), and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. person(s)acted,executed the instrument. WITNESS my hand and official seal. D / WITNESS my hand and official seal. Notary Signature:_ 4 l _ Notary Signature:_S. _ Notary Seal: G / Notary Seal: Fyn a Gwyn S Polan�ky (Ur S Polarnky �P My Cgnmluion DD336172 EzpkM Juty 06,2000 w MY Co mmisibn DD330172 q 1 Expires July00.200H National Golf Contract-Final 12-28.doc 13 EXHIBIT 'A' SCOPE OF SERVICES Task One: Project Coordination Contractor shall attend any necessary meetings and conduct field visits over the period of the engagement. During this time the Contractor shall: • Meet with City of Palm Springs personnel and officials to review the scope of work set forth in this proposal. This process will be repeated as needed throughout the project in order to discuss any necessary refinements, additions,or deletions to the scope of work. • Visit and inspect the City's golf facilities at Tahquitz Creek Golf Resort. • Collect and review all relevant data,documents and existing contracts relating to the golf facilities. This material will include financial records, budgets, activity reports, marketing plans and materials, and policies and procedures. • Visit competitive golf facilities in the local market area and obtain information regarding proposed new golf facilities in and around the City of Palm Springs. • Meet with City officials and key City staff members to obtain information on the current golf operation for each facility. Task Two: Coachella Valley Golf Market Analysis Contractor shall develop a detailed market analysis, including projections with explanations of golf activity in the present and for the near future in the greater Coachella Valley area. Contractor shall analyze the economic and demographic profile of area residents in an attempt to realistically estimate the golf demand in this market, and how this demand directly impacts the financial health of the Palm Springs golf operation. Contractor will also examine the potential impact of area visitors on the current and future demand for public golf in this area. Contractor shall review existing and planned golf facilities that may impact the continued operation of the City of Palm Springs' facilities to establish benchmarks for local golf facility operating parameters such as memberships, rounds and fees. Contractor shall identify any potential market opportunities and shall estimate the present and possible future market share of the Tahquitz Creek Golf Resort.The potential impact of any changes recommended by Contractor will be documented in relation to other area golf facility offerings. Task Three: Tahquitz Creek Golf Resort Comprehensive Audit of Operations Contractor will conduct a comprehensive review of the City's current golf course operations and facilities and prepare a grade for the physical condition of each golf course in terms of playability and in comparison to key competitors.A careful review of staffing levels, employee compensation, and all concession contractual agreements (if applicable)will also be undertaken.The areas to be examined include but are not limited to: National Golf Contract-Final 12-28.doc 14 Golf operations Analysis Contractor will review the present operating structure to gain insight into how the operations have evolved to their present status. Further, Contractor will meet with officials and key staff members at each subject golf course to gain insight into the operation. During the site visit, Contractor will collect from management all relevant data and documents that pertain to the golf operation. This material will include financial records, budgets, activity reports, and policies and procedures. The analysis will include a review of all facilities and amenities including: Management and oversight Leases and concession contracts in place Golf operations policies Marketing plan review Financial statements (revenue and expense analysis) Staffing analysis Customer service/brand loyalty Tournament/outing policy Profit center evaluation Golf revenue Food and beverage Driving range Merchandise Player development programs Cash control procedures Tee time reservation system procedures Green fees/membership fees Golf cart usage/needs Contractor shall implement its Customer Loyalty and Satisfaction Program (NGF CLASPTM) over a defined period of time (approximately 3-4 weeks) to determine: Customer perceptions of subject facilities Customer loyalty Customer perceptions of relevant competition The subject facilities' "wallet share" of customers' golf dollars Customer profiles Customer origin (including tourists) Media Habits National Golf Contract-Final 12-28.doc 15 By analyzing this information, Contractor will provide the City with an understanding of the golf operation in relation to its customers and competition. Task Four: Proposed Marketing/Revenue Enhancement Strategies Contractor shall develop a strategic marketing plan to increase market share for the Tahquitz Creek Golf Resort in light of market, operational and facility findings. This plan will be based upon the research and consultative work conducted jointly by Contractor and Fletcher Rowley Consultants, Inc. (FRC).This market and facility analysis will provide Contractor with an accurate measure of the facility's market position from a price/value standpoint. When the relative market positioning is determined, Contractor will implement its proprietary methodology for targeting and motivating golfers. Contractor will examine the Tahquitz Creek Golf Resort's current marketing programs to understand: Marketing focus/message, including target markets Congruity between product and message Marketing budget Materials used Promotions/Discounting Player programming Web design and effectiveness Contractor will prepare a detailed marketing plan for Tahquitz Creek Golf Resort. The major components of this plan will include: • Determination of the facilities' appropriate market positioning from a price-value perspective. • Determination of the facilities' differential advantage over competitors, in terms of quality of product, price, services and programs offered, location, etc. • Communication of this advantage as the focus of the facilities' marketing efforts. • Recommendations regarding the total marketing budget, including the appropriate mix between advertising, promotions, direct selling, and public relations. • Recommendations regarding the appropriate advertising mix, including relative allocations to various vehicles such as print, television, radio, internet, and direct mail. Media mix will be broken down into both directional (e.g., yellow pages) and creative (billboards, newspaper, etc.) components. • Recommendations regarding printed materials such as brochures, as well as advertising copy and specific advertising vehicles to be utilized. • Specific recommendations about the use of promotions and discounts, including daily discounts and packages (e.g., stay-and-play/hotel/group/tournament), and National Golf Contract-Final12-28.doc 16 longer-term programs aimed at rewarding customer loyalty (frequent player programs). • Specific recommendations about on-site marketing, including customer service, merchandising layout, etc. • Discussion of yield management and how the Palm Springs golf facilities can most efficiently fill tee-times that often go unused. Contractor will examine the Tahquitz Creek Golf Resort current marketing programs to understand: Marketing focus/message, including target markets Congruity between product and message Marketing budget Materials used Promotions/Discounting Player programming Web design and effectiveness Task Five: NGF Consulting Recommendations Contractor will prepare a full schedule of recommendations designed to provide the City with the best possible operational and physical structures for the subject facilities. The recommendations will be made based on Contractor's independent review of the facilities in the context of their relative placement in the Palm Springs area golf market, and may or may not include elements of the existing City golf program. These recommendations will cover several topics including: • Golf course administration and operations • Physical condition of the golf facilities and recommendations for improvement • Identification of revenue centers that should be present at the City facilities • Operating condition of ancillary/accessory facilities (i.e., clubhouses) and recommended changes • Capital improvement plan • Marketing plan recommendations, including pricing and policies • Management recommendation, including staffing issues • Key design recommendations National Golf Contract-Final 12-28.doc 17 Economic Analysis of NGF Consulting Recommendations Contractorwill provide estimates ofthefinanGial impactof enacting Contractor's recommendations. Contractor will project the activity levels at the facilities from all sources, expected revenue from all sources, and all costs associated with implementing Contractor's recommendations. Upon analyzing the City golf facilities and the competitive market, Contractor will make recommendations regarding the optimal specifications of the physical components of each facility. Contractor will prepare documentation of general cost levels associated with the recommended improvements. Task Six: Use Projections and Revenue Enhancement After Improvements Contractor will develop a five-year use projection for the City facilities under the assumption that Contractor's recommendations are implemented. This will include estimates of all golf facility use levels such as rounds played (broken out by type), membership levels (by type and/or category), and driving range/practice facility activity. Further,the corresponding fees for each revenue center will be estimated for the first five years of operation after recommendations are implemented.These projections will take into account any potential impact on facility closure during the renovation. This process will involve integrating market,facility and customer findings,along with expected use and market share estimates, into a five-year strategy to maximize revenue. In consideration of market conditions and proposed facility modifications, attainable pricing will be estimated and detailed revenue and expense estimates developed for each facet of the golf operation. Contractor will provide City with a five-year financial pro-forma statement that will project the bottom line financial impact resulting from any changes made to the City's golf program. Develop Short and Long-Range Master Plans In conjunction with the projections and revenue enhancement program, Contractor will prepare a short-range (3-5 years) and long-range (10-20 years) master plan for the Tahquitz Creek Golf Resort. Task Seven: Report Delivery and Presentations To The City Contractor shall have frequent communication with appropriate staff at the City and at the golf facilities during the course of this engagement.At the conclusion of the study process, Contractor will develop a detailed written report that will contain all findings, recommendations,documentation, and a concise executive summary. A draft version of the document will be made available to City officials for review and comments. National Golf Contract-Final 12-28.doc 18 EXHIBIT 'B' SPECIAL REQUIREMENTS 5.3 The requirements of Section 5.3 for a performance bond are hereby waived. 7.7 Liquidated Damages shall not apply to this agreement. National Golf Contract-Final 12-28.doc 19 acORO. CERTIFICATE OF LIABILITY INSURANCE OF ID T DATE(MMIDDIYVVY) NATIO-9 12/30/04 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Bollinger, Inc. HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 101 JFK Parkway ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Short Hills NJ 07078-5000 Phone: 973-467-8005 Fax:973-921-2876 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER Pacific Indemnity Company INSURERS Federal Insurance Company 124 National Golf Foundation, Inc. NSURERC 1150 South US Highway One INSURER Jupiter FL 33477 — INSURER E COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR AUU'LJ POLICY NUMBER POLICY EFFECTIVE POLICY( D/YY) EXPIRATION LIMITS LTR INSRD TYPE OP INSURANCE DATE MMIDD/YV) DATE MMID GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 A X COMMERCIAL GENERAL LIABILITY 35279111 11/01/04 11/01/05 UAINAbh I U HEN I EU PREMISES(Ea occurence) _ $ 1, 000,000 CLAIMS MADE- � OCCUR MED EXP(Any one person) _ a 10,000 PERSONAL B ADV INJURY $ 1, 000,000 PRP -- __ GEMERL n'L A'GReG IOPAG _—_ J- - - - III—, s2,000,000 IPOLICY GATE LIMIT APPLIES PER PRODUCTS-COMPIOP AGG $ included00,00 POLICY ] JECT [7 LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ B ANY AUTO 74969360 11/01/04 11/01/05 (Ea accident) ALL OWNED AUTOS BODILY INJURY $ 1, OOO, OOO SCHEDULED AUTOS (Per person) X HIRED AUTOS BODILY INJURY X NON-OWNED AUTOS (Per accident) $ _ PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY AGO $ EXCESSIUMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ _ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND TORV LIMTS UER EMPLOYERS'LIABILITY ANY PROPRIETORIPARTNERIEXECUTIVE E L EACH ACCIDENT $ OFFICERIMEMBER EXCLUDED? EL DISEASE-EA EMPLOYEE $ -'--- --Il yes,describe under SPECIAL PROVISIONS below -Eti-DISEASE-POLICY-CIMT I -" - OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS Certificate Holder is included as Additional Insured CERTIFICATE HOLDER CANCELLATION PALSSSS SHIOULDANY OFTHEABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN City of Palm Springs NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,BUT FAILURE TO DO SO SHALL Attn: Mari Lynn Boswell IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR 3200 E. Tahquitz Canyon Way Palm Springs CA 92263-2743 REPRESENTATIVES. AUTHORIZED REPIR ACORD 25(2001108) ©ACORD CORPORATION 1988 ACORD,M CERTIFICATE OF LIABILITY INSURANCE (301/ YY 12DAT ) / 2004 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION WORKERS ' COMPENSATION GROUP, INC. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR PO BOX 410 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. BOCA RATON FL 3 3 42 9-0410 INSURERS AFFORDING COVERAGE 561-392-3300 INSURED NATIONAL GOLF FOUNDATION INC INSURER A. BRIDGEFIELD EMPLOYERS INS. CO. 1150 SOUTH US HIGHWAY 1 INSURER JUPITER FL 33477 INSURERC: INSURER D. INSURER E COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES,AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE(MMIDDIYYI DATE(MMIDDMI GENERAL LIABILITY EACH OCCURRENCE S COMMERCIAL GENERAL LIABILITY _ _ _ _ _ FIRE DAMAGE(Any one Fire) $ CLAIMS MADE ❑OCCUR MED EXP(Any one person) S PERSONAL&ADV INJURY S GENERAL AGGREGATE S GEN'L AGGREGATE LIMIT APPLIES PER PRODUCTS-COMPIOP AGO $ —1 POLICY n ECT LOG AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO (Ea accitlenl) ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Per person) HIRED AUTOS — BODILY INJURY $ NON-OWNED AUTOS (Per amdenp — PROPERTY DAMAGE $ (Per acgdenl) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT S ANY AUTO OTHER THAN EA ACC S AUTO ONLY AGG S EXCESS LIABILITY� EACH OCCURRENCE I 5 OCCUR a CLAIMS MADE AGGREGATE $ S DEDUCTIBLE S RETENTION 5 $ WORKERS COMPENSATION AND I TORV L MITS X OTH- FR EMPLOYERS'LIABILITY 0830-30390 11-01-04 11-01-05 EL EACH ACCIDENT 51, 000 , 000 A E.L.DISEASE-EA EMPLOYEE $1, 0 0 0, 0 0 0 EL DISEASE-POLICY LIMIT $1, 000 000 0 OTHER DESCRIPTION OF OPERATIONSILOCATIONSNEHICLESIEXCLUSIONS ADDED BY ENDORSEMENTISPECIAL PROVISIONS CERTIFICATE HOLDER ADDITIONAL INSURED;INSURER LETTER: CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITY OF PALM SPRINGS DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 1() DAYS WRITTEN 3200 E TAHQUITZ CANYON WAY NOTICETO THE CERTIFICATE HOLDER NAMED TO THE LEFT,BUT FAILURETO DOSOSHALL PALM SPRINGS CA 92263-2743 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR ATTN: MARI LYNN BOSELL, ADM SEC REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25-S(7197) ©ACORD CORPORATION 1988 M E M O R A N D U M TO: Mari Lynn Boswell, Administrative Secretary kProcurement Office FROM: Kathie Hart Chief Deputy City Clerk DATE: January 27, 2005 SUBJECT: National Gold Foundation Consulting Inc. A5004 cc: Jay Thompson, City Clerk File Attached are three (3) duplicate originals of the above referenced agreement. We have retained the original our files. Please feel free to contact me if there are any questions, ext. 8206. /kdh attach. 0 CONSULTING September 14, 2004 Tel: (760)323-8269 Harold E. Good, CPPO Director Department of Procurement and Contracting City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 NGF Consulting Proposal#204067 Re: RFP 01-05 Proposal for Providing Golf Course Consulting Services Dear Mr. Good: Thank you for the opportunity to submit this proposal to conduct an operational review of the City of Palm Springs' (City) "Tahquitz Creek Golf Resort" municipal golf operation. National Golf Foundation Consulting, Inc. (NGF Consulting) understands that the City of Palm Springs is seeking a consultant to assist the City in evaluating golf course operations and marketing and to recommend strategies for maximizing the potential of the City's golf operation. The purpose of this review will be to examine the current golf operation and make informed recommendations for marketing and operational strategies that can best fulfill the long-range objectives of the City. NGF Consulting, together with its parent company, the National Golf Foundation, is uniquely qualified to conduct this study for the City of Palm Springs. NGF Consulting has extensive experience in helping municipalities optimize their golf facility operations in light of market conditions and increasing costs (qualifications enclosed). We are the recognized industry leader in all facets of golf facility consulting and boast an extensive client list of municipalities, including recent efforts on behalf of cities like Wasco, California, San Antonio, Texas, West Palm Beach, Florida, Groton, Connecticut and Charlotte, North Carolina. The team of consultants NGF Consulting will bring to this project possesses more than 75 years of relevant experience in golf and economic consulting, golf facility operation, golf facility design, golf clubhouse design, investment, and legal fields. Because NGF Consulting does not solicit business for the design, financing, construction, or operation of golf courses, we offer our clients the highest level of objectivity in all consulting assignments. Thank you for the opportunity to submit this proposal. Please call if there are any questions or if we can be of further assistance. Sincerely Esinger Rich Dire to of Consulting Services rsinger@ngf.org RBSgsc NATIONAL GOLF FOUNDATION CONSULTING,INC. A Subsidiary of the National Golf Foundation 1160 SOUTH U S HIGHWAY ONE,SUITE 401,JUPITER,FL 33477•(561)744-6006•FAX:(561)744-9085•www ngf org Proposal to Conduct an Operational Review of Tahquitz Creep Golf Resort Golf Facilities Submitted to: City of Palm Springs, California Submitted By: &I/%—C CONSULTING National Golf Foundation Consulting, Inc. 1150 South U.S. Highway One, Suite 401 Jupiter, FL 33477 (561) 744-6006 September 14, 2004 Table Of Contents A. NGF CONSULTING BACKGROUND AND QUALIFICATIONS............................................ 1 A.1 Firm Information..................................................................................................... 1 A.2 Principal Officer...................................................................................................... 1 A.3 Background and Qualifications............................................................................. 1 National Golf Foundation................................................................................................ 1 NGFConsulting.............................................................................................................. 2 A.4 Proposed Project Team ......................................................................................... 3 Richard B. Singer, Director of Consulting Services......................................................... 3 Edward Getherall, Senior Project Director— NGF Consulting ......................................... 5 Ashley Best, Facility Services/CLASP Manager— NGF Consulting ................................ 6 Angelo Palermo, Senior Associated Consultant.............................................................. 6 Richard L. Norton, Senior Associated Consultant........................................................... 7 Forrest Richardson &Assoc. /Golf Course Architects...................................................10 Fletcher& Rowley Consulting -Advertising, Media Placement, Communications..........11 WilliamB. Fletcher, Jr., CEO.........................................................................................12 JohnRowley, President.................................................................................................12 B. PROPOSED OPERATIONAL ANALYSIS............................................................................13 B.1 Understanding of Objectives................................................................................13 StudyObjectives ...........................................................................................................13 B.2 Scope of Services .................................................................................................14 Task One: Project Coordination.....................................................................................14 Task Two: Coachella Valley Golf Market Analysis.........................................................15 Task Three: Tahquitz Creek Golf Resort Comprehensive Audit of Operations...............15 Task Four: Proposed Marketing/Revenue Enhancement Strategies..............................17 Task Five: NGF Consulting Recommendations.............................................................17 B.3 Cost Reduction Strategies....................................................................................18 Task Six: Use Projections and Revenue Enhancement After Improvements .................18 Task Seven: Report Delivery and Presentations To The City ........................................18 B.4 Information Required from Client.........................................................................19 C. PROPOSED MARKETING/REVENUE ENHANCEMENT STRATEGIES.............................20 CAMethodology..........................................................................................................20 Task Four: Proposed Marketing/Revenue Enhancement Strategies..............................20 C.2 Revenue Enhancement.........................................................................................20 C.3 Information Required from the Client..................................................................21 D. REFERENCES.....................................................................................................................22 D.1 Operational Analyses............................................................................................22 D.2 Marketing/Revenue Enhancement.......................................................................26 E. COST SCHEDULE...............................................................................................................29 F. TIMELINE FOR COMPLETION OF SERVICES...................................................................30 F.1 Contract Services Agrement................................................................................30 F.2 Timeline..................................................................................................................30 A. NGF Consulting Background and Qualifications A.1 FIRM INFORMATION National Golf Foundation Consulting, Inc. 1150 South U.S. Highway One, Suite 401 Jupiter, FL 33477 Tel: (561) 744-6006 Fax: (561) 744-9085 (Incorporated in State of Delaware) A.2 PRINCIPAL OFFICER Joseph F. Beditz, PhD, is President of the National Golf Foundation and National Golf Foundation Consulting, Inc. All consulting work is conducted under the direction of Richard B. Singer, Director of Consulting Services at the National Golf Foundation. Other staff members will work as part of the study team in providing professional insight, gathering additional data, applying participation models, conducting financial analyses, and reviewing the written report. Resumes of key professional staff appear on the following pages. A.3 BACKGROUND AND QUALIFICATIONS National Golf Foundation Founded in 1936 as an industry service organization, the National Golf Foundation (NGF) is a non-profit organization dedicated to providing information and insights on the business of golf. The NGF has been assisting municipalities and private developers/owners with golf course planning, development, and operational needs as well as industry research for golf businesses for more than 60 years. All research and consulting projects are conducted out of our offices in Jupiter, Florida, by our staff of 35 professionals. The Foundation's work today is supported by a membership base of nearly 6,000 members representing every facet of the industry: private and public golf facilities; golf course architects; developers and builders; companies offering specialized services to the golf industry; national, regional, state, and local golf associations; teachers, coaches, and instructors; and individuals. The 35-member board of governors includes the chief executives of the PGA TOUR, PGA of America, American Society of Golf Course Architects, Golf Course Builders Association of America, National Club Association, Club Managers Association of America, National Golf Course Owners Association, and International Association of Golf Administrators. The National Golf Foundation has long been recognized as the U.S. golf industry's primary source for golf market research. The National Golf Foundation's multifaceted research database has set an untouchable standard in the golf industry, with an entire department devoted to daily data collection through telephone interviews and surveys. NGF research data is frequently quoted by other consulting firms, and utilized by these firms to analyze the viability of golf markets. The National Golf Foundation's annual surveys are designed to ascertain golfing habits and trends of golfers, golf facilities and golf manufacturers nationwide. From this research, the NGF publishes upwards of 60 research documents that provide dependable information on the number, nature, and habits of golfers in each state, as well as golf facility operational issues, Golf travel issues, alternative golf facility operations, and an annual directory of golf. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 1 Our most important "flagship" research includes several publications that are widely quoted in national and international press and are used by numerous other golf-oriented consulting and information firms. The key"flagship" NGF publications include: • Golf Participation in the U.S. —2004 • Golf Facilities in the U.S. —2004 • Development and Operation Manual: How to Plan Build and Operate a Successful Golf Range—2003 • Marketing Your Golf Course—2003 • Women Welcome Here! A Guide to Growing Women's Golf—2003 • The NGF Golf Business Almanac—2003 • The Spending Report: Sizing the Golf Consumer Marketplace—2003 • U.S. Golf Travel Market- 2003 • Careers in Golf: An Insider's Guide to Careers in the Golf Industry—2001 • A Strategic Perspective on the Future of Golf— 1999 NGF Consulting National Golf Foundation Consulting, Inc. (NGF Consulting) is a subsidiary of the National Golf Foundation that provides assistance to clients regarding the feasibility of potential development projects and the efficiency/profitability of existing golf facilities. This specialized consulting group has been providing advisory services to golf facilities for more than 15 years and has become the recognized leader in new golf facility feasibility studies and existing facility operational reviews. NGF Consulting's industry contacts are extensive, through both NGF members and consulting assignments. Our clients are from all parts of the world, and as a result of this international posture, we have singularly examined more golf markets than any other golf consulting firm in the world. In any consulting assignment, NGF Consulting brings together a team of experts whose efforts are exclusively devoted to the business of golf course development and operations. Our goal is to fully understand the needs of our clients, to thoroughly examine the golf market (with staff members personally visiting the area), and to analyze that market's ability to support a successful golf course. The unique golf demand estimation practice developed by NGF Consulting in the late 1980s was the first to incorporate age and income modeling to create market specific golf participation and frequency estimates based on the demographic profile of any given subject population. In the late 1990s, this modeling technique was updated to include other key factors relating to golf participation such as availability of local golf supply, seasonality in selected markets, price point segmentation (premium, mid-fee, value) and other household specific variables. While our demand modeling capabilities are unmatched in the industry, it is our hands-on presence in the local market of our projects that truly allows NGF Consulting to make the most accurate projections of future golf activity and generate reality-based market and facility financial projections. NGF Consulting prides itself on the level to which we involve local communities in our consulting engagements and refrain from producing statistical-based reports without hands- on local input. Since the National Golf Foundation is not involved in the design, construction, or operation of golf facilities, our staff will not hesitate to advise clients against proceeding with a golf project or to identify operational deficiencies that affect the performance of an existing facility. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 2 Since 1987, NGF Consulting has conducted more than 900 assignments throughout the United States, plus Europe, Asia, the Caribbean, and South America, covering a broad spectrum of services. This experience is the cornerstone of NGF Consulting, from which all our clients benefit. A.4 PROPOSED PROJECT TEAM Richard B. Singer, Director of Consulting Set-vices Richard B. Singer has been the Director of Consulting Services for the National Golf Foundation (NGF) since 1997, and now has a total of 15 years of golf facility consulting experience. Mr. Singer first joined the NGF consulting staff in 1989 as a project analyst after completing his Finance MBA at the University of Florida. Mr. Singer has successfully managed the NGF's well- known golf consulting practice with an industry-respected track record of success and a reputation for delivering projects on time and on budget. Experience Mr. Singer's background includes hands-on experience in the following functional areas: -Golf Facility Feasibility Analysis -Financial Analysis -Golf Business Valuation -Golf Operations Consulting -Business Plan Preparation -Golf Market Analysis -Account Management -Budgeting/Planning -Staffing/HR -Real Estate Master Planning -Public Presentations - Proposal Writing -Expert Witness -Due Diligence -Credit Evaluation National Golf Foundation Consulting Experience During his tenure with NGF Consulting, Mr. Singer has been responsible for preparing over 200 research studies for specific projects including: public and private sector feasibility studies for golf facility development and expansion; due diligence studies for golf facility acquisition and/or refinancing; public sector Request For Proposal preparation; private club membership development plans; and public and private sector golf facility operational reviews. In his 13 years as a golf consultant, Mr. Singer has visited and/or profiled more than 2,000 public and private golf facility operations in the United States and internationally. Mr. Singer also has extensive experience as an expert witness in matters related to golf facility operation, and he has demonstrated considerable poise while under public attack in defense of highly controversial local projects. Golf Facility DevelopmenVAcquisition Consulting - In his 14 years with NGF Consulting, Richard Singer has become one of the most experienced golf facility development consultants available today. His extensive experience includes market and financial feasibility analysis, funding/ implementation strategies, golf master plan development, and golf facility business plan preparation. In the 1999-2002 period, Mr. Singer has completed several consulting engagements involving the conversion of"sensitive" sites into golf facilities (i.e. landfills). Golf Facility Operations Consulting - Mr. Singer's golf facility operations consulting assignments have included golf course inspections, operational/accounting audits, clubhouse design/needs assessments, RFP preparation assistance, golf marketing strategies, green fee/member pricing, and business plan preparation. Mr. Singer has also provided litigation assistance to golf facilities in the form of expert testimony including some 'hit by golf ball' litigation and concessionaire agreements. National Golf Foundation Consulting, Inc -Proposal#204057—City of Palm Springs, CA 3 Alternative Golf Facility Consulting - Mr. Singer's consulting services for alternative golf facilities have included both new development and operational reviews for driving ranges, putting courses, miniature golf courses, golf learning centers, executive/par-3 courses, and various combinations with other facilities. He co-authored the NGF publication How to Plan, Build and Operate a Successful Golf Range. Regional Market and Economic Impact Analyses — During his tenure with NGF Consulting Mr. Singer has completed several statewide or regional golf market and economic impact studies. These studies typically involve preparing estimates of golf supply and demand in large geographies, as well as estimating the hard dollar impact of golf facilities on a local economy. Key Accounts Managed (1999-2003) Representative public sector clients in 1999-2003 include: City of Wasco, California (Adjacent land use analysis); City of Reno, NV(new development); Anguilla (B.W.I.) Tourist Board (new development); City of Ft. Pierce, FL (acquisition); Gila River Indian Community, AZ (new development); City of Warwick, RI (acquisition); Town of Gilbert, AZ (new development); City of Ft. Lauderdale, FL (new GC on landfill); Town of Linden, NJ (new GC on landfill); Town of Beech Mountain, NC (new development); City of Garland, TX (Operations review- Firewheel Golf Park); the City of Monroe, NC (Operations review- Monroe CC). These public sector projects include extensive participation in public meetings and a full defense of all project work. Representative private sector golf development clients in 1999-2003 include: U.S. Home Corporation; Trump International; Greg Norman Golf Course Design Company; Del Webb Corporation; Senior Tour Players, Inc.; First Boston Mortgage Company; PaineWebber, Incorporated; Howard Hughes Corporation; Strategic Hotel Capital; National Fairways, Inc.; Meridian Venture Partners; General Motors Corp.; Watermark Communities Inc.; GATX Capital Golf Group; Developer Resource Group; Whitley Development Group, Inc.; Palmer Investments; Marriott Golf Management; Transit America, Inc.; Coral Creek Partners; Smokerise Golf& Country Club; Viera East Golf Club; Loudoun Golf& Country Club; Orix USA; Rotunda Golf, Florida; Thornetree Country Club; US Naval Academy Golf Club; and Mahogany Run GC (St. Thomas, USVI). Representative alternative facility clients in 1999-2003 include: Greens of Las Vegas, Inc.; Golden Bear International; Palm Beach County, Florida; County of Ft. Lauderdale, FL; Development Consulting Co. (three ranges in CA & FL); Brevard Golf Driving Range (Melbourne, FL); and Collier Golf Enterprises (Orlando, FL). Representative regional market and economic impact clients in 1998-2003 include: Bonita Bay Properties; Golf 20120— Raleigh-Durham MSA Study; Reliance National Insurance Company; GATX Capital Golf Group; C. Cabot Incorporated; Gunster, Yoakley, Valdes-Fauli & Stewart, P.A.; Public Finance Consultants Inc.; and Morgan Stanley— Dean Witter. International Experience Mr. Singer's professional resume includes golf facility consulting on projects located in the countries of Sweden, Korea, Egypt, Anguilla (BWI), St. Marten, Brazil, Bahamas, and Chile. background/Education Mr. Singer is a long-time resident of Palm Beach County, Florida and grew up around the North Palm Beach Country Club. He earned his Bachelor's degree in marketing and Insurance from the University of Florida in 1985, and worked as a financial consultant for Northwestern Mutual National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 4 Life and Baird Securities before earning an MBA in Finance from the University of Florida in 1989. Edward Getherall, Senior Projeci Direcior— PGF ConsuRing Ed Getherall joined the NGF Consulting staff as Project Analyst in 2000 after several years of sub-contracting consulting services to the NGF. Mr. Getherall, who was promoted to Senior Project Director in 2001, has been instrumental in coordinating NGF Consulting's golf facility databases since 1997, with a particular focus on key golf course revenue center activity and fee research. Since joining NGF Consulting, Mr. Getherall has become a respected industry authority on issues pertaining to clubhouse operations, including the issue facing every facility at one time or another—whether to renovate or replace an aging or obsolete clubhouse. NGF Consulting Projects Experience Mr. Getherall's extensive business and marketing background has enhanced NGF Consulting's ability to provide marketing expertise to the facility segment of the golf industry. Since joining NGF Consulting, Mr. Getherall has been responsible for processing golf facility data for use in all of our market, financial, and operational consulting projects. Additionally, in the two years since joining NGF's Consulting division, Ed has been the lead project director for more than thirty consulting assignments, covering a broad range of services, including public and private golf course feasibility studies, operational audits, golf-related real estate absorption analyses, and clubhouse renovation/replacement studies. Mr. Getherall's recent clients include: Village of Wellington, FL; City of Miramar, FL; First National Bank of Montgomery, AL; The Trump Organization; Textron Financial Corporation; Hoffman Properties, Ltd.; Oaktree Capital Management; Town of Wallingford, CT; City of Concord, NC; City of Solon, OH; Fortune Bay Resort & Casino; General Motors Corporation; Front Royal Country Club; H.C.D.A.; Bonita Bay Properties; Rose Hill Associates; Conley- Manning LLC; Scituate Highlands, LLC; Watermark Communities, Inc.; Coral Ridge C.C.; American Golfers, Inc.; the Vauderine Group; Shodeen Management; Arthur Anderson, LLP; Prestwick Plantation, LLC; City of West Palm Beach, Florida; City of Henderson, Nevada; City of Glendale, Arizona; The World Golf Foundation; Palm Beach County, Florida; Callaway & Price; Loving & Campos Architects; City of Concord, CA; City of Gilbert, AZ; City of Reno, NV; City of Lake Havasu, AZ; City of Tempe, AZ; Town of Kershaw, SC; City of San Antonio, TX; the Mohegan Sun Tribe; Poxabogue Golf Course; Lely Development Corporation; Partyka Resource Management; Triangle Equities; Town of Farmington, CT; River Bluff Resort, LLC; the City of Naples, FL; Palmer Investments, Inc.; Golf Trust, Inc.; Dominion Realty Advisors, Beazer East, Inc.; Kealakehe Ahupua'a 2020; Jonathan's Landing POA; and, Pocoy Consulting. Background/Education Prior to joining the NGF, Mr. Getherall held several positions in the business community including extensive marketing work for such organizations as South Florida Blood Banks, Inc., the Florida Lottery and the American Cancer Society. His areas of expertise cover a broad spectrum of marketing activity, including research, product management, special event planning and consulting. Mr. Getherall earned his M.B.A. from the University of Florida in 1989, with a concentration in finance. Ed also achieved his undergraduate degree at Florida, with a B.S. in Business Administration (Marketing) in 1986. With a diversified educational and professional background National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 5 in both marketing and finance, Mr. Getherall has the experience and knowledge to assist in all aspects of golf facility management, marketing, operations and development. Ashley Best, Facility Services/CLASP Manager- NGF Consulting Ashley Best joined the National Golf Foundation Membership Services department as an Account Manager in March 2003, where she managed more than 500 accounts including facilities and golf management companies. In July 2003, Ms. Best was promoted to her current position with NGF Consulting. Her primary area of focus is on golf consumer research at facilities nationwide to grow rounds and revenues. She is also involved in various business development initiatives such as the newly-created Marketing and Media Services division of the NGF. Ms. Best is also an instructor at the National Institute of Golf Management. NGF Consulting Projects Experience Ms. Best's extensive sales and marketing background has enhanced NGF Consulting's ability to provide marketing expertise to the facility segment of the golf industry. Since joining NGF Consulting, Ms. Best oversees the more than 425 facilities that are CLASP clients. She is responsible for ensuring the success of their customer feedback programs to assist clients in setting benchmarks, improving operations and creating marketing plans. Ms. Best's current clients include: Arnold Palmer Golf; Western Golf Properties; Honours Golf; Premier Golf Management; the U.S. Marines; Timber Ridge Golf Club; Sterling Hills Golf Club; American Golf Corporation; Meadowbrook Golf Management; KemperSports; Evergreen Alliance Golf; the U.S. Army; Marriott Golf; Hamilton County Park District; Salt Lake City Golf Division; Prince William County Park Authority; and Incline Village Parks and Recreation. Background/Education Prior to joining the NGF, Ms. Best worked for several organizations in sales and marketing, including worldwide research company, FIND/SVP Inc. in New York City. Ms. Best is very active in the community, chairing fundraising committees for the Junior League of the Palm Beaches. Her areas of expertise cover a broad spectrum of marketing activity, special event planning, merchandising and public relations. Ms. Best earned her Bachelor's of Science degree from the University of Florida in 1990 in Public Relations. Prior to that, she studied vocal music at the University of Colorado in Boulder for two years. Angelo Palermo, Senior Associated Consultant Angelo Palermo joined the staff of the NGF in 1988 after a 32-year career in municipal government in the New York Metropolitan area. Since joining the NGF as Vice President for Golf Course Development, he has conducted feasibility studies, operational and management audits, and has worked with architects, environmental specialists, and course superintendents. He has been responsible for conducting surveys of new golf course development, planning seminars for developers and operators and publishing various NGF manuals and reports. Mr. Palermo's areas of expertise include: Operational and Management Audits Golf Course Planning and Construction Feasibility Studies Environmental Liaison Market and Financial Analyses Seminar Studies Golf Course Operations Consulting Publications and Reports National Golf Foundation Consulting, Inc -Proposal#204057—City of Palm Springs, CA 6 Consulting Expedience Mr. Palermo's recent consulting experiences have included municipal and daily fee operational and management audits, private non-equity feasibility studies and market/financial analyses. Representative public sector clients include: New Orleans City Park Improvement Association, LA; Town of Truro, MA; Town of Barnstable, MA; City of Hollywood, FL; City of Clearwater, FL; City of San Jose, CA; City of Blue Springs, MO; City of Delavan, WI; City of Ontario, Oregon; City of Boise, Idaho, Arizona State University, Arizona, Fort Walton Beach, Florida, Salt Lake City, Utah; City of Modesto, California; Wheaton Park District, Wheaton, Illinois; City of Glendale Heights, Illinois; City of Cedar Rapids, Iowa; Springfield Park District, Springfield, Missouri; City of Tarpon Springs, Florida; Town of Longboat Key, Florida; Peoria Park District, Peoria, Illinois; City of Arvada, Colorado; City of Winter Haven, Florida; City of Cape Coral, Florida; City of Massillon, Ohio; Palm Beach County, Florida; Westchester County, New York; Municipality of Anchorage, Alaska; Town of Greenwood/County of Leflore, Mississippi; and Town of Jamestown, North Carolina. Representative private sector clients include: Wintuckett Development Corporation, Martha's Vineyard, MA; MDP &Associates, Palm Bay, FL; Simonson &Associates, Littleton, CO; Collier Enterprises, Orlando and Naples, FL; Prudential/Cullinan, Peoria, Illinois; The DuPont Country Club, Wilmington, Delaware; Minisceongo Country Club, Pomona, New York; and The Flatley Company, Braintree, Massachusetts. Golf industry Experience During the 22 years Mr. Palmermo was Director of Parks & Recreation for the Town of Ramapo in Rockland County, NY, he supervised the planning, construction, and operation of the Spook Rock Golf Course, which opened in 1970. Spook Rock has been cited by Golf Digest as one of the nation's top public golf courses on several occasions; the most recent ranking in 1990 placed the course as one of the top 25. As a member of the founding Board of Regents of the National Institute of Golf Management, Mr. Palermo was instrumental in the development of a comprehensive program of instruction for golf course managers. He served as Chairman of the Board of Regents in 1987-88 and is now a Regent Emeritus. Mr. Palermo graduated from the State University of New York at Cortland with a Bachelor of Science Degree in Recreation Administration. Richard L. Norton, Senior Associated Consuliant Richard L. Norton, President of Norton Consulting, Inc. and Senior Associated Consultant with the National Golf Foundation, is an expert at conducting real estate and leisure land use analyses. Highlights from his 21 years of consulting and industry experience are summarized below. Consulting Experience Mr. Norton has 21 years of experience in providing development and operational consulting to a variety of clients in both the public and private sectors. Mr. Norton directed the National Golf Foundation's (NGF) consulting practice in the 1990s. Prior to joining the NGF in 1990, Mr. Norton was a manager and partner in the international consulting firm of Economics Research Associates, specializing in real estate and commercial recreation development and operations consulting. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 7 Economic Impact of Golf Mr. Norton has conducted studies of the economic impact of the golf industry on local, regional, and national economies. In additional to a national study produced for the NGF, Mr. Norton has conducted economic impact studies for the State of Pennsylvania, Massachusetts Golf Association, Southern California Golf Association, the Arizona Golf Association and the Arizona Department of Commerce, and the Minnesota Golf Association. Real Estate and Land Use Analysis Mr. Norton's real estate and land use analysis experience includes a broad range of residential, office, industrial, and retail consulting. He has conducted market and financial analyses for several large-scale master planned developments, nearly all of which included golf as a major component. He has completed in-depth studies in nearly all states of the United States and several foreign countries concerning the strategic development of large tracts of land. Mr. Norton made specific recommendations concerning product types, market targets, pricing, amenities, and absorption period. Several of the studies have served to provide support for preparation of Environmental Impact and Development of Regional Impact reports. Mr. Norton has been actively involved in evaluating the potential of primary and second home oriented golf communities. Mr. Norton has been involved in assessing market potential covering the spectrum of retail development including regional malls, community retail development, neighborhood centers, and specialty retail/restaurant developments. Past consulting assignments have been conducted at several locations in Florida, Georgia, North and South Carolina, Texas, Utah, Nevada, California, Spain, Argentina, Venezuela, Costa Rica and several Caribbean islands. Resort Development Consulting Mr. Norton has been involved in evaluating the development potential of several major resort and second home projects located in Mexico, Chile, Spain, Costa Rica, France, Argentina, Venezuela, throughout the Caribbean, Arizona, Florida, Utah, California, South Carolina, Texas, Colorado, and Montana. These were large-scale projects requiring comprehensive market and financial analyses. For each project, applicable recommendations were made concerning hotel, condominium, home-site, town center development, and recreation components such as golf, tennis, skiing, and marinas. Hotel and Conference Center Feasibility Studies Mr. Norton has been involved in evaluating the development potential of specific hotel and executive conference center locations and concepts for many developers and operators that have included such properties as Four Seasons, Rosewood Hotels and Resorts, Foresthills Hotels and Resorts, Holiday Inns International, Sheraton Corporation (now Starwood Hotels and Resorts), and the Marriott Corporation. Representative site locations have included Florida, Arizona, California, South Carolina, Utah, Spain, Argentina, Mexico, Costa Rica and several islands in the Caribbean. Mr. Norton has typically provided occupancy and financial projections and space programming upon which to base investment decisions. Commercial Recreation Consulting Mr. Norton's extensive commercial recreation consulting experience includes market and financial feasibility studies of family recreation centers, aquatic parks, and theme parks. Mr. Norton typically evaluated the proposed attraction's concept and made attendance and cash flow projections. National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 8 Tourism Development Analysis Mr. Norton has extensive experience in developing tourism strategy and development plans. For a native Eskimo corporation of northwest Alaska, Mr. Norton provided many workable recommendations to increase tourism, visitation, expenditures, and tourism related employment opportunities for local people. For the Tourism Company of Puerto Rico, Mr. Norton participated in a comprehensive market analysis that resulted in development recommendations to accommodate specific tourism market segments. For various clients in Hawaii, Mr. Norton's analysis of visitor trends provided strategic alternatives for developing commercial, entertainment, and specialized recreation developments on the islands of Oahu, Maui, Hawaii, and Kauai. Golf Industry Experience Mr. Norton's golf industry experience includes development consulting (feasibility studies), golf consumer research studies, operating studies of golf facilities and golf related publications development. Mr. Norton has an active working relationship with the Golf Course Superintendents Association of America, the USGA Green Section, the National Golf Course Owners Association, the PGA of America, the Club Managers Association of America, the National Club Association and various state/regional golf associations. Golf Course Development Feasibility and Operations Studies Mr. Norton's golf course and golf club consulting assignments have included strategic positioning analysis, market/financial feasibility studies, funding/ implementation strategies, membership development plans, and operational audits. Mr. Norton has conducted golf range and learning center consulting for variety of public and private sector clients. Golf Industry Research and Publications Development Under Mr. Norton's direction, the NGF has produced many research reports and publications including: A Strategic Perspective on the Future of Golf(produced in association with McKinsey & Company); Golf Participation in the US; The Power of the Junior Golf Market,' Golf Facilities in the US; Golf Travel in the US; How to Finance a Golf Course; The Economic Impact of Golf on the Local, Regional, and National Economies; Operations and Financial Performance Profiles Reports for 18 hole Regulation Golf Facilities- Daily Fee, Municipal, and Private editions for both 18-hole and 9-hole regulation length golf courses; several golf consumer publications, selected titles include: Golf Consumer Spending, Golf Consumer Potential, and Golfer Segmentation and Positioning Strategies for the 90's. International Experience Mr. Norton's professional resume includes extensive consulting experience in foreign countries including Spain, France, England, Argentina, Brazil, Chile, Venezuela, Costa Rica, Dutch Antilles, Jamaica, St. Marten, Bahamas, and Mexico. Mr. Norton speaks Spanish fluently and is particularly well suited for project work in Latin America. Education and Work History Norton Consulting, Inc. President; 1999 to present National Golf Foundation (NGF) Associated Consultant; 1999 to present National Golf Foundation (NGF) VP & General Manager; Jupiter, FL; 1990— 1999 Economics Research Associates VP & Manager; Ft. Lauderdale, FL; 1982-1990 National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 9 Economics Research Associates Associate; San Francisco, CA; 1980 - 1982 Brigham Young University MBA; 1980 Economics Research Associates Internship;1978 and 1979; SanFrancisco, CA Brigham Young University BA Economics; Magna Cum Laude, 1978 Professional and Public Service • Member, Urban Land Institute; Recreation Development Council • Allied Associations of Golf- Environment Committee • Member, Tourism & Travel Research Association Forrest Richardson 8z Assoc. / Golf Course Architects Introduction to the Firm Forrest Richardson &Assoc. was established in 1988. The firm was created to formalize the working relationship of golf course architects Forrest Richardson and Arthur Jack Snyder who worked in collaboration prior to the formation of the practice. In early 2000, CBS Golf Commentator and longtime international tour player, Peter Oosterhuis, formed an alliance with the architects to consult on design projects and assist in the marketing of finished facilities. The firm provides golf course architectural services, including feasibility studies, land planning for golf course projects, complete golf course design services, remodeling studies and observation of construction during golf course building. The principals have extensive experience with golf courses throughout the Southwest and in and climates. Their designs are focused toward creating enjoyable courses with sound water conservation and efficient operational budgets. Both architects have been involved with numerous projects on native desert sites; and have designed courses and observed construction for government agencies. By design, the firm is not large. Forrest Richardson &Assoc. has focused its work on projects in the Southwest, Mexico and Hawaii and does not aspire to become a firm too big or too preoccupied with quantity. During his more than forty years designing golf courses, Jack Snyder has built a reputation for a "hands-on" approach and one in which particular experts are brought in to address specific issues. This approach is even more important in recent years as the complexities involved in planning, permitting and addressing issues involving golf course feasibility and building have increased. In many instances the necessary expertise is not possible to acquire at any one particular firm — nor would it be advisable. In much the same way that medical experts collaborate, the firm now builds tailored teams which work together to answer questions and assist in solving issues on a customized basis. Forrest Richardson, ASGCA, Golf Course Architect Forrest Richardson studied golf course architecture as part of an independent study program of the ALSG at the University of Dundee in Dundee, Scotland. It was across the United Kingdom that he gained an appreciation for the traditions and uniqueness of the game of golf. National Golf Foundation Consulting, Inc.—Proposal#204057--City of Palm Springs, CA 10 He established Forrest Richardson &Assoc. in 1988 and is the firm's current president. Mr. Richardson has worked in association with golf course architect Arthur Jack Snyder since the mid 1980s. Together, they have completed new design and remodeling projects throughout the United States in California, Nevada, Arizona, New Mexico, Texas, and Hawaii. Internationally, they have worked in Mexico and Asiatic Russia, on the north shore of the Sea of Japan. Prior to forming his own firm, Mr. Richardson edited and published The Golf Course Designer, the only international journal devoted exclusively to the profession of golf course architecture. The journal was published under Mr. Richardson's direction from 1974 through 1979. The consultancy provides golf course architectural services, including land planning for golf course projects, complete golf course design services, remodeling studies and construction observation during golf course building. The principals firmly believe in the value of detailed plans as part of the process building new golf courses. While it is possible to merely direct the work of construction personnel without the benefit of formal plans, the firm has developed a practice where detailed grading plans are combined with on-site inspection and interpretation to produce the best possible results for their clients. They attract qualified golf course shapers and graders who understand how to translate plans to the physical environment, yielding golf courses projects which are built to specifications— as well as expectations. Mr. Richardson has extensive knowledge of working in and climates, designing for water conservation, and limited turf facilities. Among his many innovative concepts have been designs for a short"Children's Course" to accompany an 18-hole regulation public golf course; integration of unique features; and the design of a "regulation" par-2 hole. Among his writings, Mr. Richardson has written "On Course", a compendium of terms used to describe golf courses. In 2000, John Wiley & Sons Publishing negotiated a contract for Mr. Richardson to author a book about golf course routing. The publishing date is expected to be in 2001. Professional Memberships: American Society of Golf Course Architects/ASGCA National Golf Foundation (NGF) Fletcher & Rowley Consulting - Advertising, kgedia Placement, Communications Nasvhille-based advertising and marketing firm Fletcher& Rowley Consulting Inc. has formed a partnership with the National Golf Foundation to form NGF Marketing and Media Services. NGF Marketing and Media services develops marketing and advertising campaigns for multi-course oeprators, resorts, and individual golf courses. Fletcher& Rowley specializes in: • Conceptualization, writing, directing and producing television and radio commercials • Conceptualization, writing, directing and producing television programs, long form fundraising films and biographical films • Targeted media placement National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 11 • Theme and message development • Categorical media budgets and paid media plans • Media relations • Crisis management Recent Sports Marketing Clients The Governors Club, Brentwood, Tennessee-TV and Direct Mail Marketing Bear Trace, 5 courses in Tennessee-TV and Direct Mail Marketing William B. Fletcher, Jr., CEO Photographer, musician, writer, reporter, editor, producer, director ... Bill Fletcfier has spent his life in the pursuit of creative excellence. He started writing for newspapers at the age of 14 and was a top reporter covering Tennessee politics for a major daily newspaper at 22. Since 1984, "Fletch" has produced compelling commercials and cutting edge strategies for political campaigns across America. Fletcher has contributed articles to Campaigns & Elections and Campaign magazines and is a featured speaker at Campaigns & Elections Magazine Campaign Training Seminars. John Rowley, President John Rowley's first work was in television production, radio production as a public affairs director, and as a news reporter. In 2000, Campaigns and Elections magazine named Rowley a "Rising Star in Politics." He has served as a media consultant on more than 150 Democratic campaigns. In addition to his writing, directing, and producing responsibilities for the firm's corporate and political clients, Rowley handles media relations, crisis communication, and speech writing. Partial list of clients: -Sallie Mae/USA Group ( Las Vegas) -Tennessee County Services Association -U.S. Department of Defense -Wisconsin Education Association Council •HCA(Corporate HR subcontractor, Nashville) -Eric Hamilton Band (Curb Records, Nashville) -Revelation America/Western -Benefit Funding Exchange (Atlanta ) Union/MasterCard/Debit Card ( Memphis) •Oaktree Capital Management(Los Angeles -Trammel Crow Company( Nashville) and New York) -Tennessee Association of Mental Health -Bellevue Center Mall ( Nashville) Centers --North Carolina Center for Voter Education -Henry Ford Village ( Detroit) -Mt. Olive Pickle Company(Mt. Olive , NC ) -Charlestown Retirement Village ( Baltimore) --Alton Steel, Incorporated (Alton , IL) -Hobe Sound Development( Boca Raton , FL) -National Guard Association of Tennessee -Cumberland University( Lebanon , TN ) -Public Safety and Justice Campaign ( U S., -Tennessee State Employees Association Canada and United Kingdom ) National Golf Foundation Consulting, Inc.-Proposal#204057-City of Palm Springs, CA 12 B. Proposed Operational Anal ss s B.1 UNDERSTANDING OF OBJECTIVES National Golf Foundation Consulting, Inc. understands that the City of Palm Springs is seeking an independent consulting firm to review the existing golf operations of the two City-owned golf courses (The Legends Course and the Resort Course) — known collectively as the Tahquitz Creek Golf Resort— and to make recommendations that will ensure that an optimal long-term plan for future management and operation of the golf facilities is in place. Among the key areas to be examined include a review of the Palm Springs area golf market, an audit of the City's golf operation, a review of the physical condition of all facilities, and a review of the financial condition and future economic potential of the Tahquitz Creek Golf Resort. In addition, a thorough understanding of customer perceptions and opinions of both of the City's golf courses will be established so that customer loyalty and frequency of play can be maximized. Study Objectives This NGF Consulting proposal has been prepared to complete the following basic study objectives: • Analyze and review the local golf market dynamic in terms of trends for golf activity and how these trends may impact the market share and financial performance of the Palm Springs facilities. • Review the present operating and maintenance condition of the two City golf facilities and determine each facility's relative position in the local golf market. • Estimate what capital improvements (if any) are required to bring the golf courses to their optimal operating condition. • Gain understanding of regional and national experience of municipalities with respect to golf facility management and operations. • Develop understanding of the perceptions and opinions of current golf facility user groups regarding each of the City facilities • Provide a set of recommendations for the future operation, marketing and management of the City facilities based on sound market and facility research. • Document the costs and incremental revenues associated with any improvement or re-development recommendation to be made for the City facilities, along with any new service contracts that may be required. • Propose a comprehensive short and long-range plan for the future operation and management of the City of Palm Springs golf facilities. To address these issues, NGF Consulting proposes to complete the scope of services specified on the following pages. National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 13 B.2 SCOPE OF SERVICES NGF Consulting will complete the scope of work set forth in this proposal in the following sequence: • Task One: Project Coordination • Task Two: Coachella Valley Golf Market Analysis • Task Three: Tahquitz Creek Golf Resort Comprehensive Audit of Operations • Task Four: Proposed Marketing/Revenue Enhancement Strategies (addressed in Section C) • Task Five: NGF Consulting Recommendations • Task Six: Use Projections and Revenue Enhancement • Task Seven: Report Delivery and Presentations Task One: Project Coordination Upon receiving your authorization to proceed, NGF Consulting will arrange for the consultant(s) to attend any necessary meetings and conduct field visits over the period of the engagement. During this time the consultant(s) will: • Meet with City of Palm Springs personnel and officials to review the scope of work set forth in this proposal. This process will be repeated as needed throughout the project in order to discuss any necessary refinements, additions, or deletions to the scope of work. • Visit and inspect the City's golf facilities at Tahquitz Creek Golf Resort. • Collect and review all existing contracts relating to both golf facilities (if applicable). This will enable NGFC to develop an understanding of these arrangements, the changes that can be made, and their potential impact/benefit to the City. • Visit competitive golf facilities in the local market area and obtain information regarding proposed new golf facilities in and around the determined market area. • Meet with City officials and key City staff members to obtain information on the current golf operation for each facility. This will provide NGF Consulting with the necessary background, and aid in assessing how the operation has evolved into its present status. These meetings will provide insight into the present operation and provide those who are being interviewed with an opportunity to express their concerns and expectations. • Collect from the City all relevant data, documents and contracts that pertain to the golf operation. This material will include financial records, budgets, activity reports, marketing plans and materials, and policies and procedures. This information will be used to gain further insight into the golf course operation. Although our review will not include an official audit of the financial aspects of the golf operations, the financial records will assist in our understanding of the golf operation and help in identifying potential problem areas. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 14 Task Two: Coachella Valley Golf Market Analysis To gain a thorough understanding of the overall market for golf and golf facility services, NGF Consulting will develop a detailed market analysis, complete with projections of greater Coachella Valley area golf activity for the present and near future. We will analyze the economic and demographic profile of area residents in an attempt to realistically estimate the golf demand in this market, and how this demand directly impacts the financial health of the Palm Springs golf operation. We will also examine the potential impact of area visitors on the current and future demand for public golf in this area. NGF Consulting will review existing and planned golf facilities that may impact the continued operation of the City of Palm Springs facilities to establish benchmarks for local golf facility operating parameters such as memberships, rounds and fees. A realistic picture of the present and projected future status of the public golf market will be presented, and any potential market opportunities will be identified. Present and possible future market share of the Tahquitz Creek Golf Resort will be estimated. The potential impact of any changes recommended by NGF Consulting will be documented in relation to other area golf facility offerings. Task Three: Tahquitz Creek Golf Resort Cornprehensive Audit of Operations The NGF Consulting team will conduct a comprehensive review of the current golf course operations and facilities and prepare a grade for the physical condition of each golf course in terms of playability, and in comparison to key competitors. A careful review of staffing levels, employee compensation, and all concession contractual agreements (if applicable) will also be undertaken. The areas to be examined include but are not limited to: Golf Operations Analysis NGF Consulting will review the present operating structure to gain insight into how the operations have evolved to their present status. The consultant(s) will meet with officials and key staff members at each subject golf course to gain insight into the operation and provide those who are being interviewed with an opportunity to express their concerns and expectations. During the site visit, we will collect from management all relevant data and documents that pertain to the golf operation. This material will include financial records, budgets, activity reports, and policies and procedures. The analysis will include a review of all facilities and amenities including: • Management and oversight • Leases and concession contracts in place • Golf operations policies • Marketing plan review • Financial statements (revenue and expense analysis) • Staffing analysis • Customer service/brand loyalty • Tournament/outing policy National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 15 • Profit center evaluation o Golf revenue o Food and beverage o Driving range o Merchandise • Player development programs • Cash control procedures • Tee time reservation system procedures • Green fees/membership fees • Golf cart usage/needs Customer Loyalty and Satisfaction Program (CLASPT") Customer perceptions of a facility are a key factor influencing its potential success. With the City of Palm Springs golf courses, we will implement our Customer Loyalty and Satisfaction Program (NGF CLASPTM) over a defined period of time (approximately 3-4 weeks) to determine: • Customer perceptions of subject facilities • Customer loyalty • Customer perceptions of relevant competition • The subject facilities' "wallet share" of customers' golf dollars • Customer profiles • Customer origin (including tourists) • Media Habits By analyzing this information, NGF Consulting will provide the City with an understanding of the golf operation in relation to its customers and competition. The results will provide insight into what potential (if any) the facility has to increase activity among those that have played these courses, thus bolstering operating performance. A Sample Loyalty/Satisfaction Survey can be viewed at the link below: Sample Golfer Survey Link: http://ngfsurvey.co m/ngfsu rvey/ngf/cg i/su rvey.asp?SC=testaugust 14 Sample Report Link: hftp://ngfsurvey.com/ngfsurvey/ngf/cgi/courselogin.asp Username: testaugust14 Password:testaugust14 National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 16 Facility Analysis NGF Consulting will complete a basic inspection of both City golf facilities for the purpose of establishing the present condition and market position of each facility. This inspection will include a review of all facilities and amenities, including: • Golf layout and playability • Standards of quality • Maintenance practices • Labor issues • Materials, supplies & services • Leases and contracts • Vendor mix and/or national distributors • Agronomic condition • Structures • Equipment Task Four: Proposed Marketing/Revenue Enhancement Strategies (Addressed in Section C of this proposal) Task Five: NGF Consulting Recommendations In light of the present status of the City of Palm Springs golf facilities, our analysis of the local and regional golf market, and the various management alternatives available to City of Palm Springs, NGF Consulting will prepare a full schedule of recommendations designed to provide the City with the best possible operational and physical structures for the subject facility. The recommendations will be made based on our independent review of the facilities in the context of their relative placement in the Palm Springs area golf market, and may or may not include elements of the existing City golf program. These recommendations are expected to cover several topics including: • Golf course administration and operations • Physical condition of the golf facilities and recommendations for improvement • Identification of revenue centers that should be present at the City facilities • Operating condition of ancillary/accessory facilities (i.e., clubhouses) and recommended changes • Capital improvement plan • Marketing plan recommendations, including pricing and policies • Management recommendation, including staffing issues • Key design recommendations National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 17 Economic Analysis of NGF Consulting Recommendations NGF Consulting will provide estimates of the financial impact of enacting NGF Consulting recommendations. NGF Consulting will project the activity levels at the facilities from all sources, expected revenue from all sources, and all costs associated with implementing NGF Consulting recommendations. Upon analyzing the City golf facilities and the competitive market, NGF Consulting will make recommendations regarding the optimal specifications of the physical components of each facility. NGF Consulting will prepare documentation of general cost levels associated with the recommended improvements. B.3 COST REDUCTION STRATEGIES Task Six: Use Projections and Revenue Enhancement After Improvements NGF Consulting will develop a five-year use projection for the City facilities under the assumption that NGF Consulting recommendations are implemented. This will include estimates of all golf facility use levels such as rounds played (broken out by type), membership levels (by type and/or category), and driving range/practice facility activity. Further, the corresponding fees for each revenue center will be estimated for the first five years of operation after recommendations are implemented. These projections will take into account any potential impact on facility closure during the renovation. This process will involve integrating market, facility and customer findings, along with expected use and market share estimates, into a five-year strategy to maximizing revenue. In consideration of market conditions and proposed facility modifications, attainable pricing will be estimated and detailed revenue and expense estimates developed for each facet of the golf operation. We will provide you with a five-year financial pro-forma statement that will project the bottom line financial impact resulting from any changes made to the City's golf program. NGF Consulting's financial pro-formas are prepared for research purposes, and therefore will be conservative and unbiased. Develop Short and Long-Range Master Plans In conjunction with the projections and revenue enhancement program, NGF Consulting will prepare a short-range (3-5 years) and long-range (10-20 years) master plan for the Tahquitz Creek Golf Resort considering all NGF Consulting recommendations and detailed capital improvement schedules. These mater plans will incorporate full financial projections as prepared by NGF Consulting. Task Seven: Report Delivery and Presentations To The City NGF Consulting anticipates frequent communication with appropriate staff at the City and at both golf facilities during the course of this engagement. At the conclusion of the study process, NGF Consulting will develop a detailed written report that will contain all findings, recommendations, documentation, and a concise executive summary. A draft version of the National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 18 document will be made available to City officials for review and comments. Upon authorization, ten copies of the final study will be delivered. The lead NGF consultant will also be available to make one formal presentation of findings to City of Palm Springs officials, and be available to answer any questions from other groups the City may deem appropriate. B.4 INFORMATION REQUIRED FROM CLIENT NGF Consulting will collect from the City and/or Arnold Palmer Golf Management all relevant data, documents and contracts that pertain to the golf operation. This material will include financial records, budgets, activity reports, marketing plans and materials, and policies and procedures. This information will be used to gain further insight into the golf course operation. Although our review will not include an official audit of the financial aspects of the golf operations, the financial records will assist in our understanding of the golf operation and help in identifying potential problem areas. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 19 C. Proposed Marketing/Revenue Enhancement Strategies C.1 METHODOLOGY Task Four: Proposed Marketing/Revenue Enhancement Strategies The NGF Consulting Team will develop a strategic marketing plan to increase market share for the Tahquitz Creek Golf Resort in light of market, operational and facility findings. This plan will be based upon the research and consultative work conducted jointly by NGF Consulting and Fletcher Rowley Consultants, Inc. (FRC). This market and facility analysis will provide us with an accurate measure of the facility's market position from a price/value standpoint. When the relative market positioning is determined, the NGF Consulting Team will implement its proprietary methodology for targeting and motivating golfers. This is based on a combination of research, experience, creativity, targeting, media mix and list development. Review Present Marketing NGF Consulting will examine the Tahquitz Creek Golf Resort's current marketing programs to understand: • Marketing focus/message, including target markets • Congruity between product and message • Marketing budget • Materials used • Promotions/Discounting • Player programming • Web design and effectiveness C.2 REVENUE ENHANCEMENT Preparation of Marketing Plan The results of the Tahquitz Creek Golf Resort facilities overview and customer analysis, as well as NGF Consulting's detailed investigation of the golf market in which the courses operate, will aid in preparation of a detailed marketing plan for Tahquitz Creek Golf Resort. The major components of this plan will include: • Determination of the facilities' appropriate market positioning from a price-value perspective. • Determination of the facilities' differential advantage over competitors, in terms of quality of product, price, services and programs offered, location, etc. • Communication of this advantage as the focus of the facilities' marketing efforts. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 20 • Recommendations regarding the total marketing budget, including the appropriate mix between advertising, promotions, direct selling, and public relations. • Recommendations regarding the appropriate advertising mix, including relative allocations to various vehicles such as print, television, radio, internet, and direct mail. Media mix will be broken down into both directional (e.g., yellow pages) and creative (billboards, newspaper, etc.) components. • Recommendations regarding printed materials such as brochures, as well as advertising copy and specific advertising vehicles to be utilized. • Specific recommendations about the use of promotions and discounts, including daily discounts and packages (e.g., stay-and-play/hotel/group/tournament), and longer-term programs aimed at rewarding customer loyalty (frequent player programs). • Specific recommendations about on-site marketing, including customer service, merchandising layout, etc. Discussion of yield management and how the Palm Springs golf facilities can most efficiently fill tee-times that often go unused. C.3 INFORMATION REQUIRED FROM THE CLIENT NGF Consulting will examine the Tahquitz Creek Golf Resort current marketing programs to understand: • Marketing focus/message, including target markets • Congruity between product and message • Marketing budget • Materials used • Promotions/Discounting • Player programming • Web design and effectiveness National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 21 0. References DA OPERATIONAL ANALYSES Following are summaries of similar operational studies conducted by NGF Consulting in recent years. SHENNECOSSETT GOLF CLUB Groton, CT Municipal Operational Review In February 2004, the Town of Groton retained NGF Consulting to assist in evaluating the operations and management of the Town's golf course for the purpose of maximizing the economic potential of this golf facility. Shennecossett is a historic golf facility that is very important in the overall defining character of the Town of Groton, and the facility has been experiencing a decline in its economic performance. The Town is concerned that a continued shortfall in revenue may lead to significant changes in the way Shennecossett is operated and/or limit the accessibility to the facility the public now enjoys. The results of this operations and management review will be used to assist Town officials in determining the appropriate course for the future of this operation. NGF Consulting found that Town of Groton's municipal golf operation is fulfilling its mission to provide affordable golf to the citizens of southeast Connecticut. The golf operation generates revenues that have traditionally been sufficient to cover all costs associated with the golf operation, but in recent years the revenues have fallen for a number of reasons, some of which cannot be controlled by the Town and some that can be. The NGF Consulting recommendations contained in the report generally involve expanding on what the Town is presently doing right, but also focusing on activities that can stimulate greater activity at the facility and improving its overall condition. Recommendations included changes to management, maintenance, and policies,with very little change in playing fees. We also recommended that the Town of Groton use the generally beginner-friendly facilities at Shennecossett to become active in growing golf activity in the southeast Connecticut community. In July 2004, the Town of Groton has begun a program to implement NGF Consulting recommendations. Client: John Silsby Director of Parks and Recreation Town of Groton 45 Fort Hill Road Groton, CT 06340 (860) 536-5680 124002 National Golf Foundation Consulting, Inc.-Proposal#204057 City of Palm Springs, CA 22 Cl T Y OF MONROE, NC Monroe, INC Municipal Facility Maintenance & Operations Analysis_ _ National Golf Foundation Consulting, Inc. was retained by the City of Monroe, NC in August of 2001 to review the operational structure of the Monroe Country Club in order to determine if the City was maximizing the potential use and revenue of this facility. Key areas reviewed by NGF Consulting included the local golf market, the business operation, and course maintenance issues. NGF Consulting examined the Monroe/south Charlotte resident golf market, the area's economic climate, and the activity levels, revenues, expenses, and annual debt service for the subject Monroe Country Club golf facility.A complete physical inspection of the golf course was also conducted to determine what, if any, deficiencies were present. NGF Consulting recommended changes to the golf facility, including a restructuring of some player- unfriendly hazards, a change in mowing patterns, and an allowance for the grass on the greens to grow longer. NGF Consulting also recommended a change in operational attitude to be more aggressive in marketing and promotion, particularly with local tournaments. Client: Mr. Mike Courtney Director of Parks&Rec. City of Monroe PO Box 69 Monroe, NC 28111 (704)282-4659 121027 CITY OF CONCORD Concord, NC Municipal Operational Audit National Golf Foundation Consulting, Inc.was retained by the City of Concord, NC in January of 2001 to review the current operational structure of the Rocky River Golf Club in order to determine if the City is maximizing the potential use and revenue of this facility. Among the key areas reviewed by NGF Consulting were the business operation, the overall pricing structure, and the maintenance condition of the course. NGF Consulting analyzed the City of Concord resident golf market, the area's demographic and economic profile, and the activity levels, revenues, expenses, and annual debt service for the subject Rocky River golf facility. A complete physical inspection of the golf course was also conducted to determine if any deficiencies existed. After careful evaluation of the golf facility and market, NGF Consulting determined that the difficulty of the golf course was cutting down drastically on repeat play, and that it should be made more playable for the typical municipal golfer,while retaining challenging features for low handicap golfers. NGF Consulting also recommended that a variety of program elements be implemented to help stimulate greater demand for golf. Client: Joyce Allman Finance Director City of Concord 26 Union Street Concord, NC 28025 (704) 920-5220 121011 National Golf Foundation Consulting, Inc. -Proposal#204057-City of Palm Springs, CA 23 WEST PALM BEACH MUNICIPAL GOLF COURSE West Palm Beach, FL Municipal Operations and Market Review The City of West Palm Beach retained NGF Consulting to conduct a review of the operation and management of its municipal golf course. In recent years, there has been a deterioration of the condition of the West Palm Beach Municipal Golf Course (WPBMGC) and a reduction of more than 1,000 active members to only 375 members (end of 2003). The study effort involved visits to the golf facility, staff interviews, golfer surveys, and collection of opinions from the general West Palm Beach public at large. As a result of this research, the NGF team of consultants found several ordinance-driven problems with the operation. NGF Consulting's recommendations included restructuring management, upgrading/restoring the facility to its original configuration and condition, and revising operational and fee structures. Client: Jim Roberts General Manager West Palm Beach Country Club 7001 Parker Avenue West Palm Beach, FL 33405-4564 (561) 582-7131 123021 PRINCE WILLIAM COUN T Y PARK AUTHORITY GOLF COURSES Manassas, VA Municipal Operational Review In 2003, NGF Consulting was retained to evaluate the operational performance and market environment of the three Prince William County Park Authority golf courses located in Prince William County, Virginia The purpose of this evaluation was to examine the current golf operation and make informed recommendations as to how the future operation can better fulfill the Park Authority's objectives. In its examination of the facilities, NGF Consulting found numerous areas where profitability can be improved, both through a reduction of expenses and through an improvement in performance. Recommended changes were grouped in three areas management structure, course improvements, and marketing. NGF Consulting proposed that the Park Authority take some corrective actions in order to achieve profitability with its golf operation.These actions will entail both capital investment(around $2,000,000), an increase in operational budgets, and changes in operations. Most important among the changes are a streamlining of management and a repositioning of two of the golf courses. Client: Rick Washco Product Development Manager Prince William County Park Authority 14420 Bristow Road Manassas,VA 20112 (703) 792-4286 123017 National Golf Foundation Consulting, Inc.—Proposal#204057—City of Palm Springs, CA 24 MUNICIPAL GOLF OPERATIONS San Antonio, TX Municipal Operational Review& Recommendations The City of San Antonio retained NGF Consulting to conduct a detailed review of the management and operation of its seven municipal golf courses. This evaluation involved several weeks of facility observations, interviews with staff, golfer surveys, and opinion surveys from the San Antonio public at large. The NGF Consulting team observed a good municipal golf system in place in San Antonio with a variety of golf offerings that are generally well perceived in the local community. The City's golf courses are an integral part of the parks and recreation program, and the golf program is one of the few City- provided recreational amenities that has traditionally earned enough revenue to sustain its own operations. In recent years, there has been a clear reduction in the level of revenue earned by the City's seven facilities. In preparing this report for the City of San Antonio, NGF Consulting made specific recommendations that, if implemented, would help bring the City's golf operation back to a level of profitability.This objective would be accomplished while staying true to the operation's mission of providing affordable golf to San Antonio residents, many of whom cannot afford to join private country clubs or regularly play private-fee courses The NGF Consulting report included recommendations for improving the overall City of San Antonio municipal golf operation. However, NGF's recommendations were focused more on the City's five"in- town"golf facilities (Riverside, San Pedro, Olmos Basin, Brackenridge Park and Willow Springs). It was recommended that the City strongly consider turning over operations of the two outlying courses (Cedar Creek and Mission Del Lago) to a private management company in exchange for lease or professional fees to the City. Client: George Logan Director of Golf Operations City of San Antonio 2315 Avenue B San Antonio,TX 78215 --_... (210)288-6091 _ 23a27 BAYOU OAKS GOLF COURSES New Orleans, LA Municipal Operations Review_ In 2002, the New Orleans City Park Improvement Association (CPIA) retained NGF Consulting to review its golf operation and make recommendations for its future management. The scope of services involved: conducting an overview and evaluation of the four City Park golf course facilities and operations, identifying any need for course improvements and/or upgrades, assisting the CPIA with the development of a Request for Proposals for future management and operation, conducting a customer satisfaction survey of a representative sampling of golf course users, reviewing the existing contract, and recommending a new contract package that will best meet CPIA's objectives After reviewing responses to the RFP, the CPIA extended its agreement with its current management company to include full operational control of Bayou Oaks. Client: Robert W. Becker Chief Executive Officer New Orleans City Park Improvement Association 1 Palm Drive New Orleans, LA 70124-4608 (504)483-9412 122003 National Golf Foundation Consulting, Inc -Proposal#204057-City of Palm Springs, CA 25 D.2 MARKETING/REVENUE ENHANCEMENT ROSEWOOD LAKES AND BROOKSIDE GOLF COURSES Reno, NV Municipal Evaluation/Planning & Marketing Assistance NGF Consulting was retained by the City of Reno, Nevada in 2002 to offer recommendations for improving the financial condition of the City's existing Rosewood Lakes and Brookside municipal golf courses. NGF Consulting had previously assisted the City regarding the feasibility of developing a new golf facility on property just across the street from the Rosewood Lakes operation. This report detailed several expense reduction and revenue enhancement opportunities(such as closing in winter, removing clubhouse at one facility, and changing the green fee structure) considered by the City of Reno, as well as other suggestions based on our review of the market area and results of our survey of the facilities' regular users. NGF Consulting discovered that the economic situation experienced at the City of Reno facilities, particularly Rosewood Lakes, is not unique to public golf facilities in this market.Almost all area public courses are experiencing reductions in play greater than those observed at the City's courses. NGF Consulting found that many of the economic troubles affecting the City's golf courses are due more to market insufficiencies than operational policies. The solutions for increasing net income at the City's golf courses probably lie in growing revenues (i.e., rounds), as the expenses to operate these facilities are presently as low as can be reasonably expected. Suggestions for growing rounds activity included modifying the fee structure to include more twilight rates, segmenting fees between weekday and weekend, and allowing golf course staff more flexibility in scheduling tournaments during off-peak periods. NGF Consulting expects that the recommendations contained in the report,when implemented, will begin to show results by the end of Fiscal Year 2003-04. Client: Nancy E. MacCartney Director of Parks, Recreation &Community Services City of Reno 925 Riverside Drive Reno, NV 89503 (775) 857-2895 122026 National Golf Foundation Consulting, Inc.-Proposal#204057-City of Palm Springs, CA 26 Fletcher Rowley Chao, Inc. Golf Case Studies The Governors Club Our Los Angeles-based client hired us to take over marketing and advertising for this high-end residential development just outside Nashville. FRC, Inc. managed the news media when our client foreclosed on the original developer who had defaulted on a large loan. We mitigated negative news coverage with high quality advertising and direct marketing for this community and its Arnold Palmer Signature Golf Course. As a direct result of our work, residential and golf membership sales are up dramatically, resulting in sufficient demand to allow our client to raise prices and open new sections of the development. • The Challenge: When we were first hired by this guard-gated, golf course community,the development had just been through a foreclosure sale The new owners brought FRC, Inc. in to handle PR surrounding the foreclosure and then to rebuild the property's image. The previous owner had overspent and under-delivered and no one was excited about living at The Governors Club or buying a golf membership there • The Strategy: We wanted to create an image of The Governors Club in the community that matched is multi-million dollar Arnold Palmer Signature Golf Course and homes ranging in price from $500,000 to$2 million plus. We needed the public to know The Governors Club was back and that it was not a place where all homes cost$1 million or more.We used TV spots featuring dramatic, aerial footage of the scenic property combined with up-tempo, orchestral music to convey our message. We shifted the advertising focus from print advertising in the area's largest daily newspaper to TV, radio, and targeted direct mail, supplemented by print in business focused outlets hitting our core audience. • The Result: The public response was dramatic and immediate. Within one week of the TV ads airing, the sales staff was inundated with calls. Within one year of the start of our plan, the development went from foreclosure to having 50% of its homes and home sites sold. Golf memberships were also selling at a brisk pace. In the second year of our strategy, we focused more heavily on targeted direct mail to hit just those consumers who would become solid prospects. After two years, The Governors Club is nearly sold out of both homes and lots and golf memberships are approaching the 300 mark. Our strategy exceeded expectations and helped create an image of The Governors Club as the premier development in Middle Tennessee. Client: Philip Jones, General Manager The Governors Club Brentwood, TN (615) 776-4313 National Golf Foundation Consulting, Inc.-Proposal#204057-City of Palm Springs, CA 27 The Bear Trace This collection of Jack Nicklaus Signature Golf Courses in Tennessee is spectacular but initial marketing efforts were not.A combination of direct mail, television, radio, print and Internet marketing is providing top-notch marketing outreach, generating paid memberships and increasing traffic on courses. Bear Trace's web site traffic increased 11,000 percent within days of our first concentrated marketing and advertising efforts. • The Challenge: The Bear Trace golf courses were underutilized and in difficult locations. These challenges combined with a tough economy to result in a dramatic decrease in rounds at the five Bear Trace Courses. • The Strategy: FRC, Inc. was hired to develop a comprehensive, long-term strategy including research, advertising and marketing and overall communications. The first survey research for The Bear Trace performed in early 2002. Following the research the path became clear.A strategy of broadcast TV, cable TV, web-based advertising, outdoor advertising and direct mail was devised and launched. During the U.S. Open we had our first week of broadcast TV advertising coupled with a piece of direct mail targeted at core audience. Website usage increased dramatically. In the 6 days leading up to the U.S. Open, there were 19 visits to the website. In the 6 days after we started advertising the website had 2,265 hits-an increase of 11,900 percent The Result: Utilization at all Bear Trace courses is up since the advertising and marketing strategy developed by FRC, Inc. was implemented The Bear Trace recently retained FRC, Inc. for a second year of advertising and marketing services. Daily visits to The Bear Trace Website since we began advertising have stayed between 250 and 594 per day Client: Tommy Smith, Marketing Director Redstone Golf Management Tennessee (615) 371-5431 VICTORIA HILLS GOLF CLUB Deland, FL Marketing Plan In 2003, NGF Consulting was engaged by Victoria Hills Golf Club to formulate a marketing plan for their golf facility. Victoria Hills in located northeast of the greater Orlando, Florida area. NGF Consulting conducted a market analysis, reviewed the facility and its competition, and fielded an NGF CLASPTM (Customer Loyalty and Satisfaction Program) survey. Providing a concise summary of each element addressed, we identified key issues and target markets, reviewed/critiqued current marketing efforts, and provided additional recommendations for revenue enhancement. Client: David Buth General Manager Victoria Hills Golf Club 300 Spalding Way Deland, FL 32724-8802 (386) 738-6000 123005 National Golf Foundation Consulting, Inc. -Proposal#204057-City of Palm Springs, CA 28 E. Cost Schedule Cost Operational Analysis Task One: Project Coordination $1,000 Task Two: Coachella Valley Golf Market Analysis 5,000 Task Three. Tahquitz Creek Golf Resort Comprehensive Audit of Operations 10,000 Task Five: NGF Consulting Recommendations 2,000 Task Six: Use Projections/Revenue Enhancement/Maser Plans 10,000 Task Seven Report Delivery and Presentations 2,000 Marketing/Revenue Enhancement Strategies Task Four: Proposed Marketing/Revenue Enhancement Strategies 12,000 Total $42,000 Out-of-pocket expenses associated with travel (at least 2 trips to City of Palm Springs), postage, telephone, purchase of demographic data, and mailing expenses are not included in the professional fees shown above. Reimbursable expenses will not exceed $4,000 without the client's permission. The total not-to-exceed price, including expenses, will be $46,000 including all direct project expenses. National Golf Foundation Consulting, Inc —Proposal#204057—City of Palm Springs, CA 29 F. Timeline for Completion of Services FA CONTRACT SERVICES AGREMENT NGF Consulting has no concerns in executing the City's standard agreement form. F.2 TIMELINE Timing Task One: Project Coordination 1 Week Task Two: Coachella Valley Golf Market Analysis 1-2 Weeks Task Three: Tahquitz Creek Golf Resort Comprehensive Audit of Operations 2-3 Weeks Task Four: Proposed Marketing/Revenue Enhancement Strategies 2-3 Weeks Task Five: NGF Consulting Recommendations 1-2 Weeks Task Six: Use Projections/Revenue Enhancement/Maser Plans 1-2 Weeks Task Seven Report Delivery and Presentations Total 8-13 weeks (56-91 days) National Golf Foundation Consulting, Inc. -Proposal#204057-City of Palm Springs, CA 30