STAFF REPORT CITY OF PALM DESERT DEVELOPMENT …

STAFF REPORT CITY OF PALM DESERT

DEVELOPMENT SERVICES DEPARTMENT

MEETING DATE: September 30, 2021 PREPARED BY: Martin Alvarez, Director of Development Services REQUEST: Authorization to Advertise and Solicit a Request for

Qualifications/Proposals for the Management and Operations of the Desert Willow Golf Resort

_______________________________________________________________________ Recommendation

By Minute Motion, that the City Council authorize staff to:

1. Advertise and solicit a Request for Qualifications/Proposals (RFQ/RFP) from qualified golf course management companies for the management and operations of the City’s Desert Willow Golf Resort; and

2. Establish the formation of an Evaluation Committee for the purpose of conducting the interview and evaluation process of the proposals submitted by qualified golf course operation firms.

Strategic Plan Authorization to pursue a Request for Qualifications/Proposals for the management and operations of the Desert Willow Golf Resort aligns with the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together: Parks and Recreation Priority 2

• Make recreational and exercise opportunities pervasive in all public spaces events to enhance and expand the Palm Desert economy and lifestyle.

The continued development and operation of Desert Willow Golf Resort aligns with multiple objectives of the City’s Strategic Plan. Desert Willow’s golf courses and hospitality components provide Palm Desert residents and guests a premier resort-recreational experience within an environmentally responsible and sustainable environment. Background

In 2016, the City issued a Request for Qualifications/Proposals (RFQ/RFP) for management and management of the Desert Willow Golf Resort. After the release of the RFQ/RFP, the City Council authorized the formation of an evaluation committee that included two City Councilmembers, City staff from various departments, and three community-at-large members with experience in the golf course management, golf course maintenance, and the tourism industry. Following the review of proposals submitted, the evaluation committee interviewed the top three ranked operator proposals. Following this process, the evaluation committee concluded that Kemper Sports Management, Inc. (Kemper) was the highest-ranked and most qualified operator, and direction was given to negotiate a contract with KMS as the Desert Willow Golf Resort operator. On April 13, 2017, the City Council approved a management agreement with Kemper to operate the Desert Willow Golf Resort with a term of 3-years, including the option of two, one-year extensions. On May 23, 2019, the City Council exercised their option to extend the golf

September 30, 2021 - Staff Report Desert Willow Mangement RFP Page 2 of 4

course management agreement with Kemper for two years, July 1, 2020 – June 30, 2022. The City Council also directed City staff to prepare a RFQ/RFP in the Fall of 2021 to seek golf course operators for Desert Willow beyond June 30, 2022. Discussion

Given the City Council's direction, staff has prepared a ‘Draft’ RFQ/RFP for the Operations and Management of Desert Willow Golf Resort. A copy of the draft RFQ/RFP document is attached for the City Council’s review and discussion prior to issuance. Prior to finalizing and releasing the RFQ/RFP, there are four (4) key components within the current Management Agreement, that staff requests feedback and direction to include or exclude in the new RFQ/RFP. Those key components are:

1) Current Radius Restriction 2) Agreement Term 3) Management Fee Structure 4) Performance Incentive

The following table outlines the current components of the Desert Willow management agreement and staff recommendations for the new RFQ/RFP and future management agreement.

Desert Willow Management Agreement Key Components Current Contract Components 2022 Recommended RFQ/RFP Components

Term – 3 years, (2) – 1 yr. Extensions (July 2017- June 2022)

5 – Year, with an Option of up to 5 Additional Years (Approval by City Council)

Management Fee - $20,833.33 / month $250K / Year

Management Fee - Cap at $25K / month $300K annually

Percentage Management Fee – 5% above $6.5M Gross Resort Revenues / Cap $200K (Plus Annual CPI) (NOTE: This is no longer an option when combined together with reimbursement of other specific operational costs to the manager.)

Performance Incentive - Cap of $200K / Negotiated based on including, but not limited to agreed-upon criteria for:

• Course/Property Condition while containing costs– up to $150K

o Criteria - Customer Surveys, Pace of Play, Greens/Tee Box conditions per time of year

• Consumer Ratings - (ORCA

Report)/USGA Ranking up to $50K Subjected to 1.5% adjustment annually

Radius Restriction – Prohibits vendor from operating any other golf course property within a 20-mile radius of Desert Willow without the City approval (prevents conflict of interest in marketing/staffing /resourse deployment)

No Management of golf courses within City limits or comparable Coachella Valley resort / Municipal Course


RFQ/RFP Evaluation Committee: The RFQ/RFP process will require a fair and comprehensive evaluation of the proposing teams and their respective submittals. Due to the broad requirements and multiple complexities of Desert Willow’s operation, staff is recommending that a RFQ/RFP Evaluation Committee be assembled to interview the teams and evaluate the submittals of those firms who submit qualified proposals. Staff recommends that the Evaluation Committee be comprised of the following members

• City Council liaison to the Desert Willow Presidents Committee • One additional City Council • One member from the Palm Desert Recreational Facilities Corporation Board • Key staff from various City Departments (City Manager, Finance, Economic

Development, Public Works) • 1- At large member of the community with expertise in golf course management,

maintenance, and hospitality Upon authorization by the City Council, staff will prepare proposal evaluation criteria for the committee members to utilize during the interview and evaluation process. Upon completion of the evaluations, staff will provide the Committee’s recommendation of the City Council for consideration. RFQ/RFP Schedule: It is anticipated that the RFQ/RFP process may be completed by the end of the calendar year. The timing will be critical in order to allow sufficient time to develop a successful transition of any potential new operator to Desert Willow Golf Resort. Therefore staff recommends the following milestones be employed for the RFQ/RFP process: RFQ/RFP Advertisement and Solicitation October 11, 2021 Voluntary Pre-Proposal/Site Visit-Meeting October 29, 2021 RFQ/P Questions Deadline November 1, 2021 RFQ/RFP Submittal Due Date November 12, 2021 RFQ/RFP Evaluations November 15 – December 3, 2021 Operator Interviews December 6-13, 2021 / December 13-17 Recommendation to City Council January 2022

Fiscal Analysis: The current annual Desert Willow Golf Resort Management and Operations fixed annual fee is $250,000. In addition the current mangement fee structure includes an annual incentive fee based on 5% of gross revenues that exceed a threshold of $6.5M. The annual incentive fee is capped at $216,486 for the fiscal year ending 2022.


Fiscal Year Fixed

Management Fee

Percentage Management Fee

Total Management Fee

Percentage of Gross Revenues

2017-2018 $250,000 $195,601 $445,601 3.88% 2018-2019 $250,000 $204,000 $454,000 3.89% 2019-2020 $250,000 $127,258 $377,258 4.02% 2020-2021 $250,000 $207,669 $457,669 4.02% Projected 2021-2022

$250,000

$204,000

$454,000

3.88%

Historically, the total management fee has ranged from 3.88% to 4.02% of gross revenues. The proposed management fee changes are designed to yield a similar percentage of management fee to gross revenue while refocusing the scope from a gross revenue incentive to one that focuses attention to the course conditions, customer rankings, market compliance, effective operations, and economic efficiency. LEGAL REVIEW DEPT. REVIEW FINANCIAL

REVIEW ASSISTANT CITY MANAGER

WLS

William L. Strausz Legal Counsel

Martin Alvarez Martin Alvarez Development Services Director

Janet M. Moore Janet M. Moore Director of Finance

Andy Firestine Andy Firestine Assistant City Manager

City Manager, L. Todd Hileman: L. Todd Hileman

ATTACHMENT: Draft Desert Willow Management RFQ/RFP

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REQUEST FOR PROPOSALS

BY

CITY OF PALM DESERT

FOR

MANAGEMENT, OPERATION, AND MAINTENANCE

PROFESSIONAL SERVICES AT DESERT WILLOW GOLF RESORT

CITY OF PALM DESERT 73-510 Fred Waring Drive

Palm Desert, CA 92260-2578

Telephone: (760) 346-0611 www.cityofpalmdesert.org

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CITY OF PALM DESERT

NOTICE REQUESTING PROPOSALS

MANAGEMENT, OPERATION, AND MAINTENANCE PROFESSIONAL SERVICES AT DESERT WILLOW GOLF RESORT [CONTRACT NO. __________ ]

NOTICE IS HEREBY GIVEN that proposals will be received by the City of Palm Desert (“the City”) electronically through the City’s online bid management provider (“PlanetBids”), until, [5:00 p.m., Friday, November 12, 2021.] Proposals may not be submitted by fax, email, telephone, mail, hand delivery, or other means; any proposals received through any means other than Planet Bids will be returned to the proposer unopened.

The City is requesting proposals from experienced and qualified golf course management firms to provide management, operation, and maintenance professional services at the City-owned Desert Willow Golf Resort.

The City is committed to inclusion and diversity and welcomes proposals and bids from contractors, consultants, and vendors of all faiths, creeds, ancestries, and ethnicities without regard to disability, gender identity, sexual orientation, or immigration status. The City condemns and will not tolerate prejudice, racism, bigotry, hatred, bullying, or violence towards any group within or outside of our community.

Certain labor categories under these services may be subject to prevailing wages as identified in the California Labor Code at Sections 1720 et seq. and 1770 et seq. If applicable, employees working in these categories at the site must be paid not less than the basic hourly rates of pay and fringe benefits established by the California Department of Industrial Relations. Copies of the State of California wage schedules are available for review at www.dir.ca.gov/dlsr/. In addition, a copy of the prevailing rate of per diem wages will be made available by the successful proposer upon request. The successful proposer shall post a copy of the prevailing wage rates at each job site. It will be mandatory upon the proposer to whom the contract is awarded, and upon any subcontractors, to comply with all California Labor Code provisions, which include but are not limited to the payment of not less than the specified prevailing wage rates to all workers employed by them in the execution of the contract, employment of apprentices, hours of labor and debarment of contractors and subcontractors. Pursuant to California Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations (“DIR”). No proposal will be accepted nor any contract entered into without proof of the proposer’s and subcontractors’ current registration with the DIR to perform public work. If awarded a contract, the proposer and its subcontractors, of any tier, must maintain active registration with the DIR for the duration of the services. Notwithstanding the foregoing, the contractor registration requirements mandated by California Labor Code Sections 1725.5 and 1771.1 do not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in California Labor Code Sections 1725.5 and 1771.1. The contract awarded pursuant to this proposal may also be subject to compliance monitoring and enforcement by the DIR.

Interested proposers may register as vendors and download copies of the Request for Proposals (“RFP”) by visiting the City’s website, www.cityofpalmdesert.org under “Quick Links,” click on “Professional Services Up For Bid”. Once registered, interested proposers may obtain more information regarding the RFP through PlanetBids.

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CITY OF PALM DESERT REQUEST FOR PROPOSALS

I. BACKGROUND AND INTRODUCTION

The City of Palm Desert (“the City”) is requesting proposals from experienced and qualified golf course management firms (“Proposers”) to provide management, operation, and maintenance professional services (“Services”) at the Desert Willow Golf Resort.

The City is a thriving community of approximately 55,000 full-time and 32,000 seasonal residents. It is located in the Coachella Valley in eastern Riverside County, part of the low desert region of Southern California. The City features big-city resources in a friendly, small-town setting, offering first-class educational opportunities, safe and clean streets, as well as plentiful shopping and community events. The City is considered by many as the geographical, educational, and retail center of the Coachella Valley.

Incorporated in 1973, the City operates under a council-manager form of government with a five-member City Council. The City Council meets on the second and fourth Thursdays of the month at Palm Desert City Hall, 73-510 Fred Waring Drive.

The Desert Willow Golf Resort, which is owned by the City, consists of two 18-hole golf courses designed by architects Dr. Michael Hurdzan and Dana Fry, and known as Firecliff and Mountainview, respectively. Firecliff opened in 1996 and Mountainview opened in 1998. The Desert Willow Golf Resort also features a 37,000 square foot clubhouse, a golf course maintenance facility, a golf academy, and a driving range. The clubhouse includes an equipped commercial restaurant, bar and entertainment areas for tournaments, and cart service for golf course food and beverage, and a pro shop for the sale of golf related sporting goods and apparel.

II. REQUEST FOR PROPOSALS

A. Scope of Services

The Services sought under this Request for Proposals (“RFP”) are set forth in more detail in Attachment “A”, attached hereto. Notwithstanding the inclusion of such Services in Attachment “A”, the final scope of Services negotiated between the City and the successful Proposer will be set forth in a professional services agreement executed by and between City and the successful Proposer. Certain anticipated provisions of the professional services agreement are described in Attachment “B”, attached hereto.

B. Principal Contact for this RFP

The principal contact at the City regarding this RFP will be Martin Alvarez, the City’s Director of Development Services, or a designated representative, who will coordinate the assistance to be provided by the City to the Proposer.

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C. Requests for Clarification

All questions, requests for interpretations or clarifications, either administrative or technical, must be requested in writing through the City’s online bid management provider, “PlanetBids.”

All written questions, if answered, will be answered in writing, conveyed to all interested firms, and posted through PlanetBids. Oral statements regarding this RFP by any City staff should be considered unverified information unless confirmed in writing. To ensure a response, questions regarding this RFP must be received in writing by p.m. local time on the date identified in the Proposal Schedule.

D. Pre-Proposal Meeting

Each Proposer is requested to attend a pre-proposal meeting to be held on [Friday, October 29, 2021, from ____ p.m. to ____ p.m.] at the Desert Willow Golf Resort Clubhouse, 38995 Desert Willow Drive, Palm Desert, California 92260. Failure to attend this meeting will not preclude a Proposer from submitting a proposal.

E. Content and Format of Proposal

Proposals should be concise, well organized and demonstrate the qualifications and applicable experience of the Proposer. Proposals should include page numbers for all pages in the proposal. The proposal should be uploaded (.pdf file) as an attachment(s) and submitted through PlanetBids.

Proposals should also include:

1. Cover Letter: The cover letter should briefly introduce the firm, summarize the firm’s general experience and qualifications, include an executive summary of the specific approach which will be used to deliver the scope of Services, and identify the name, address and phone number of the individual or individuals authorized to negotiate terms and compensation under a professional services agreement for the Services.

2. Experience and Technical Competence:

a. Provide a history of the Proposer’s experience and qualification relating to golf course and food and beverage management.

b. Include a list of current and past golf course and food and beverage management services that are similar in scope to the Services requested under this RFP. Provide a description of each facility, and the name, title, and telephone number of the primary contact person at each facility, and indicate your consent to City staff contacting such persons.

3. Firm Staffing and Key Personnel:

a. Provide the number of personnel to be assigned to perform the Services and describe your firm’s capacity to provide additional personnel as needed.

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b. Identify key personnel who will be primarily responsible for working at the site and working with the City. Indicate the job title, role, and responsibility of each individual.

c. Identify any functions that are likely to be subcontracted and identify the subcontractor that is anticipated to perform each function.

4. Proposed Method to Accomplish the Work: Describe the management approach to addressing the scope of Services. Include a draft first year work plan and budget, which includes an estimate of all costs and expenses, as well as tasks and milestones that will provide for timely provision of the Services. In reviewing the scope of Services described in Attachment “A”, the Proposer may identify additional necessary tasks and should describe these within the discussion of the proposed method to accomplish the Services.

5. Proposed Monthly Fixed Fee: Provide a proposed monthly fixed fee for the scope for Services.

6. Litigation: Provide a list of claims filed by your firm or against your firm related to the provision of golf course management services in the last five years. Describe any prior or pending litigation, civil or criminal, involving your firm, or key personnel, in the last five years.

7. Team Resumes: Submit resumes of all key personnel who will provide the Services. Describe their experience, qualifications, education, and professional licensing.

8. Owners: The full name of each and every individual having an ownership interest in the Proposer.

F. Exceptions Taken

If any exceptions are taken to this RFP, the scope of Services, or the anticipated provisions of the professional services agreement, such exceptions must be clearly noted.

G. Selection Process

1. The City will evaluate proposals based on the following criteria:

a. Clarity, and conformance of the proposal to the RFP.

b. Content of the proposal, including the management approach and the work plan.

c. Proposer’s and key personnel’s experience, qualifications, and references.

d. Fixed fee proposal and estimated costs and expenses.

2. During the evaluation process, the City reserves the right to request additional information or clarifications from Proposers, or to allow corrections of errors or omissions.

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3. It is the City’s intent to select a Proposer best evidencing the necessary qualifications, experience, and competence to perform the Services. The City reserves the right to reject all proposals, select by proposal review only, or interview as needed. Certain Proposers may be selected to make a brief presentation and oral interview. Upon selection of a Proposer, the City will endeavor to negotiate a mutually agreeable professional services agreement with the selected Proposer. In the event that the City is unable to reach agreement, the City may proceed, at its sole discretion, to negotiate with the next Proposer selected by the City.

4. After negotiating a proposed agreement, City staff will make the final recommendation to the City Council concerning the proposed professional services agreement. The City Council has the final authority to approve or reject the agreement.

H. Proposal Schedule

The tentative schedule is as follows:

ACTION DATE

Release of Request for Proposal [October 11, 2021]

Last Day to Submit Questions for Clarification received by the City on or before ___ p.m.

[November 1, 2021]

Clarifications Issued by City on or before ___ p.m. [November 5, 2021]

Deadline for Receipt of Proposals submitted on or before ___ p.m.

[November 12, 2021]

Notification of Finalist(s) [December ____, 2021]

Interview of Finalist(s) [December ____ 2021]

The above scheduled dates are tentative and the City reserves the right in its sole

discretion to adjust the above schedule. Nothing set forth herein shall be deemed to bind the City to award a professional services agreement for the Services and the City reserves the right in its sole discretion to cancel or modify any part of or all of this RFP at any time.

J. Submittal Requirements

1. Preparation: Bindings and promotional materials, etc., are not necessary or desired. Emphasis should be concentrated on completeness, approach to performing the Services and clarity of the proposal.

2. Authorization: The proposal must be signed by an individual authorized to execute documents on behalf of the Proposer.

3. Confidentiality of Proposal: Proposals submitted in response to this RFP will be held by the City and not be disclosed until after either the City and the successful Proposer have entered into an agreement, or the City has rejected all proposals. All

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correspondence with the City, including responses to this RFP, will become the exclusive property of the City. All information in the proposals will be subject to public disclosure. The City will have no liability to the Proposer or any other person as a result of any public disclosure of any proposal or the agreement.

4. Timing: A proposal must be received no later than 5:00 p.m. local time, on or before [November 12. 2021] through the City’s online bid provider, PlanetBids. It is the sole responsibility of the Proposer to see that its proposal is properly submitted to PlanetBids in proper form and prior to the stated closing time. PlanetBids will not accept late proposals. The City will only consider proposals that have transmitted successfully and have been issued a confirmation number with a time stamp from PlanetBids indicating that the proposal was submitted successfully. Proposers are and will be solely responsible for informing themselves with respect to the proper utilization of PlanetBids, ensuring the capability of their computer system to upload the required documents, and the stability of their internet service. Proposers experiencing any technical difficulties with the proposal submission process may contact PlanetBids Support at (818) 992-1771. If you continue to have difficulty, please contact Martin Alvarez at (760) 776-6467. Neither the City nor PlanetBids make any guarantee as to the timely availability of assistance or assurance that any given problem will be resolved by the proposal submission date and time.

5. Amendments to RFP: The City reserves the right to amend the RFP, issue addenda to all Proposers, or request additional information.

6. Costs for Preparing: The City will not compensate any Proposer for the cost of preparing any proposal, and all materials submitted with a proposal will become the property of the City. The City will retain all proposals submitted and may use any idea in a proposal regardless of whether that Proposer is selected.

7. Cancellation of RFP: City reserves the right to cancel this RFP at any time prior to selection, without obligation for proposal preparation, interview, or other marketing, or other costs associated with this RFP.

8. No Commitment to Award: Issuance of this RFP and receipt of proposals does not commit the City to award an agreement for the proposed professional service. The City expressly reserves the right to postpone evaluation of the proposals for its own convenience, to accept or reject any or all, or parts of any and all, proposals received in response to this RFP, to negotiate with more than one Proposer concurrently, or to cancel all or part of this RFP.

9. Right to Negotiate and/or Reject Proposals: The City reserves the right, in its sole discretion, to negotiate any provision, task, or service, to accept any part or all of any proposal, and waive any irregularities in any proposal.

10. Non-Discrimination: The City does not discriminate on the basis of race, color, national origin, religion, age, ancestry, medical condition, disability, or gender in the award of any agreement.

Publication Date of RFP: [October 11, 2021]

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ATTACHMENT “A”

SCOPE OF SERVICES

GENERAL:

• Manage, operate, and maintain the golf courses and ancillary facilities in a first-class

manner consistent with the quality expected in a premier golf resort in accordance with standards established by the City.

• Prepare and manage the golf course in a manner required by PGA Tour specifications.

• Interface with adjacent hotel management in accommodating hotel guests' golf play.

• Assist the City in negotiating arrangements with concessionaires, licensees, tenants and other users of the facilities.

• Prepare and submit to the City an annual operating budget including expenditures for facility operation and maintenance, repairs and alterations, furnishings, equipment and operating inventory, advertising, sales and business promotion and a five year capital improvement program.

• Obtain and maintain all necessary food and beverage permits from the Riverside County.

• In cooperation with City staff, develop and implement finance and accounting procedures necessary to accurately account for all income and operational expenses.

• Provide a system that allows the City’s Finance Department to review the golf course financial records at any time.

• Maintain an appropriate level of supplies for the facility and its customers.

• Hire, train and supervise the staff necessary to manage, operate, maintain, and market the facilities.

• Provide a general manager for the golf course who will be responsible for day-to-day management who shall reasonably be available during normal working hours.

• Provide a director of golf who is a current Class "A" member in good standing of the Professional Golf Association or Ladies Professional Golf Association.

• Provide United States Golf Association golf handicap services to all golfers who patronize the facility.

• Provide starter services in the golf shop, including assignment of tee times and carts and the collection of fees.

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• Provide paid marshals when the course is open for play to closely monitor and control

speed of play.

• Provide Professional Golf Association or Ladies Golf Association certified instructors for golf lessons.

• Provide golf carts with GPS, cooler, and ball and club washer system. GOLF COURSE OPERATIONS AND MAINTENANCE MINIMUM STANDARDS: 1. Greens Maintenance Maintain all greens in accordance with accepted playability, and golf industry-wide, and City Landscape standards. Without limiting the generality of the foregoing, maintain all greens in accordance with the following minimum requirements:

• Change cups and repair ball markers daily.

• Mow and maintain greens to provide “Best in Class” playing surfaces year round, with a reel-type mower designed: specifically for mowing golf greens and of the type, make and model accepted by the golf industry.

• Verticut all greens as needed to control mat and thatch buildup.

• Aerify greens as needed and remove plugs the same day, top-dress the greens following each aerification if necessary, or if conducive to aerification goals and season.

• Treat greens with proper chemicals to control insects, disease, and other pests.

• Fertilize greens at a rate and frequency that will promote healthy turf propagation.

• Analyze the soil within 30 days after commencement of the term of the professional services agreement and monthly thereafter. Complete soil tests must be performed quarterly. apply fertilizer in the quantity and type recommended by such analysis and in a manner to provide uniform growth of turf.

2. Tee Maintenance Maintain all tees in accordance with accepted playability and go l f industry-wide standards. Without limiting the generality of the foregoing, maintain all tees in accordance with the following minimum requirements:

• Service tees daily by moving markers and ball washers as needed based on volume of play and turf damage.

• Mow and maintain tees to provide “Best in Class” playing surfaces year round with reel-type mower at appropriate height for turf type and climate conditions.

• Verticut tees as needed for thatch removal.

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• Repair worn and damaged turf areas as they occur by overseeding or resodding

to ensure playable tees at all times.

• Treat tees for control of insects, disease, weeds, and other pests necessary to maintain healthy turf.

• Fertilize tees at a rate and frequency that will promote healthy turf propagation.

• Repair divots daily, and Aerify tees as needed, removing plugs the same day. Top-dress the tees following each aerification if necessary and/or conducive to aerfications goals and/or season.

3. Fairway Maintenance (including Driving Range Area) Maintain all fairways in accordance with accepted playability and golf industry-wide standards. Without limiting the generality of the foregoing, maintain all fairways (including the driving range area) in accordance with the following minimum requirements:

• Mow fairways with a reel-type mower.

• Verticut fairways as necessary for turf health and playing conditions.

• Aerify all fairways as needed.

• Overseed and top dress (or resod) worn or bare areas of fairways as necessary.

• Treat turf to control weeds, disease, insects and other pests necessary to maintain weed-free and healthy turf.

• Fertilize fairways at a rate and frequency that will promote healthy turf propagation. 4. Maintenance of Rough and Other Turf Areas Maintain rough, turf, perimeter landscape areas, and landscape lawn areas, including plant and annual color areas, in accordance with accepted playability and industry-wide standards. Without limiting the generality of the foregoing, maintain all rough, turf, perimeter landscape areas, and landscape lawn areas, including plant and annual color areas, in accordance with the following' minimum requirements:

• Maintain rough to provide desired result, and mow other turf areas at least once per week.

• Verticut as necessary to promote healthy growth

• Aerify as needed and seed or sod worn or bare areas in turf as necessary.

• Treat turf to control weeds, diseases, insects, and other pests to maintain a healthy turf.

• Fertilize rough at a rate and frequency that will promote healthy turf propagation.

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5. Maintenance of Nursery Maintain sod nurseries for the greens at all times. 6. Maintenance of Accessory Equipment Maintain all golf course accessory equipment in a clean, safe, functioning condition at all times, replacing with equipment and/or materials as necessary, including, but not limited to, the following:

• Signs

• Tee markers.

• Out-o-bounds markers, water hazards, cart directional signs, etc.

• Directional flags and poles.

• Distance markers (150 yards, etc.).

• Greens flags, poles and cups

• Practice green markers and cups.

• Trash receptacles

• Cleat brushes 7. Irrigation Maintain the entire irrigation system serving the golf c o u r s e , including main lines, valves, lateral lines; sprinkler heads, and controllers, in good repair, functioning properly and conforming to all related codes and regulations at all times. Irrigate the g o l f c o u r s e property as required to maintain adequate moisture for growth rate and appearance in accordance with accepted golf industry standards. Adequate soil moisture must be determined by visual observation, plant resiliency, and turgidity, examining cores removed by soil probe, moisture sensor devices, and programming irrigation controllers accordingly. In addition:

• Consideration must be given to soil texture, structure, water holding capacity, drainage, compaction, precipitation rate, run-off, infiltration rate, percolation rate, seasonal temperatures, prevailing wind condition, time of day or night, type of grass or plant, and root structures.

• In areas where wind creates problems of spraying onto private property or road rights-of-way, the controller must be set to operate during the period of lowest velocity.

• Monitor all systems within the golf course and for correcting the same for coverage,

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adjustment, clogging of lines, and sprinkler heads, and removal of obstacles, including plant materials, which obstruct the spray.

• Check the system daily and adjust and/or repair any sprinkler heads causing excessive run-off, or which throw directly onto, roadway, paving or walks within rights-of-way.

• Inspect the central control system on a daily basis and adjusted as required, considering the water requirements of each remote control valve.

• Regularly use a soil probe or tensiometer to determine the soil moisture, content in various areas, with particular attention being given to the greens.

• Repair all leaking or defective valves within appropriate time period.

• File a monthly statement with the City certifying that all irrigation systems are functioning properly.

• If there is a reduction of the volume of water supplied to the golf course property during peak demand periods, the priority of water distribution shall be as follows:

(a) greens, (b) tees, (c) fairways, and (d) other turf and landscape areas. 8. Other Required Duties

• Remove all litter from the golf course grounds, maintenance yard, landscape areas, and the driving range. R emove all trash and debris resulting from g o l f c o u r s e maintenance as it occurs. C l e a n , repair, and replace trash receptacles as necessary to maintain clean, safe and sanitary conditions at all times.

• Maintain shrub and ground cover plantings and lawn areas in a manner to promote proper healthy growth and an aesthetically pleasing appearance at all times .

• Maintain all trees in a safe, healthy and aesthetically pleasing condition at all times. Trees shall be pruned regularly in order to promote growth, safety, and beauty.

• Maintain all sand traps in a raked, edged, and weed-free condition at all times, replacing sand in kind and rakes as necessary.

• Take whatever preventive steps are necessary and legal to protect all slope areas from erosion at all times, subject to the approved budget.

• Control rodent and other animal pests as necessary to prevent erosion and destruction of plantings.

• Maintain and repair as necessary surface flow lines, swales, catch basins, grates, subsurface drainage systems, and other ,drainage structures in a clear, weed-free and properly functioning condition at all times.

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• Observe all legal requirements and safety regulations in the use and storage of chemicals, hazardous materials, supplies, and equipment.

• Maintain the golf maintenance storage room and yard in a clean, orderly, and safe condition at all times, conforming to all applicable laws and regulations.

• Take all reasonable measures to protect golfers from injury and the Golf Course from damage in periods of frost, rainy weather and other unusual conditions.

• Maintain bridge abutments and approaches in a safe and stable condition.

• Manager shall maintain walkways, steps, handrails on walkways, header-boards, and cart paths in a clean, edged, safe, and weed-free condition.

• Maintain, repair, and replace parking lots and driveways to achieve clean, safe and weed-free conditions.

• Inspect frequently and repair as needed: (a) all area lighting systems for safe and functioning condition, and (b) all golf course parking lots, walkways and interior paved and/or unpaved surface roads.

RESTAURANT AND BAR OPERATIONS AND MAINTENANCE MINIMUM STANDARDS:

• Manage, operate, and maintain the restaurant and bar in a first-class manner consistent with _________________________________________________________________.

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ATTACHMENT “B”

ANTICIPATED PROVISIONS OF PROFESSIONAL SERVICES AGREEMENT

SUMMARY OF CERTAIN COMPENSATION RELATED PROVISIONS

• The City would reimburse reasonable costs and expenses (as defined in the professional services agreement) incurred by the selected Proposer in connection with the operation, and maintenance of the facilities at the site.

• The City would pay a monthly fixed fee to the selected Proposer of $25,000.

• The City would consider annually the payment of a performance incentive of up to [$100,000] to the selected Proposer, which would be based upon [independent ratings of the golf course and restaurant].

• The City would consider annually the payment of a performance incentive of up to [$50,000] to the selected Proposer, which would be based upon the reduction of, or the absence of or a limited increase in, costs and expenses.

• The professional services agreement would not provide for any performance incentive based upon revenues or profits associated with the facilities.

• The reimbursement of costs and expenses, the amount of the monthly fixed fee, and the consideration of a performance incentive, if any, would be subjects of negotiations with the selected Proposer in the professional services agreement.

• The selected Proposer and any of its affiliates and subsidiaries cannot own, manage, operate, or maintain another golf course or restaurant within a [20-mile] radius of the Desert Willow Golf Resort during the term of the professional services agreement.

• The initial term of the professional services agreement would be five years. The City would have the sole option to extend the term for up to an additional five years.

SPECIFIC PROVISIONS RELATING TO INDEMNITY AND INSURANCE

Indemnity. [Proposer] agrees to indemnify, defend (with counsel satisfactory to the City Manager), protect, and hold harmless the City, the Palm Desert Recreational Facilities Corporation, and their elected or appointed officers, officials, employees, agents, and volunteers from and against any and all claims, demands, actions, lawsuits, proceedings, damages, liabilities, judgments, penalties, fines, attorneys’ fees, costs, and expenses:

(a) which result from any action taken by [Proposer] relating to the facilities (i) that is expressly prohibited by this agreement, or (ii) that is not within the scope of [Proposer’s] duties under this agreement, or (iii) that is not within [Proposer’s] delegated authority under this agreement; or

(b) which result from any violations by [Proposer] or [Proposer’s] agents, employees, invitees, contractors, subcontractors or assignees of any law, ordinance,

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rule or regulation governing or otherwise affecting the business operations of [Proposer] or [Proposer’s] performance of services and obligations under this agreement; or

(c) which result from any injury or death of any person (including, without limitation, injury or death of [Proposer’s] employees, agent, visitors, invitees, assignees, contractors or subcontractors within [Proposer’s] control) or damage or destruction of the property of any person or entity which occurs by reason of the negligent actions or omissions or willful misconduct of [Proposer] or [Proposer’s] agents, employees, invitees, contractors, subcontractors, or assignees, or material breach or default by [Proposer] or [Proposer’s] agents, employees, invitees, contractors, subcontractors, or assignees, in performance of [Proposer’s] services under this agreement or otherwise caused by the negligent actions or omissions or willful misconduct of [Proposer] or [Proposer’s] agents, employees, invitees, contractors, subcontractors, or assignees; or

(d) which result from [Proposer’s] material breach of the covenant to comply with environmental laws; or

(e) which result from any other act or omission not enumerated above constituting the negligence or willful misconduct by [Proposer] or any officer, director, or employee of [Proposer].

(f) for any costs, fees, fines or losses that may result from environmental contamination or natural resource damage on the subject property if caused by [Proposer’s] performance in storing, using or disposing of hazardous or toxic substances or materials or wastes such as, but not limited to, herbicides, pesticides, algicides or other water treatment chemicals

This indemnity provision shall survive the expiration or termination of this agreement. [Proposer] hereby stipulates and agrees that no condition precedent to its indemnification obligations stated herein, whether by way of notice or otherwise, exists or shall constitute a defense to its obligation to defend, indemnify and hold harmless the City, the Palm Desert Recreational Facilities Corporation and their elected or appointed officers, officials, employees, agents, and volunteers in any of such circumstances.

Insurance Without limiting [Proposer’s] indemnification of the City or the Palm Desert Recreation Facilities Corporation, and prior to execution of the agreement by the City, [Proposer] shall obtain, provide and maintain during the term of this agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to the City.

(a) General Liability Insurance. [Proposer] shall maintain commercial

general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $10,000,000 per occurrence, $10,000,000 general aggregate, on a per location basis, for all activities of [Proposer] under this agreement, including coverage for bodily injury, personal injury, property damage, advertising injury, products liability, contractual liability and full liquor liability. Liquor liability coverage shall apply to all alcohol/liquor-related incidents arising out of liquor service at the facilities, including without limitation hosted alcohol service and sale of alcohol in any form. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

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(b) Automobile Liability Insurance. [Proposer] shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of [Proposer] under this agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $10,000,000 combined single limit for each accident.

(c) Umbrella or Excess Liability Insurance. [Proposer] may opt to

utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, [Proposer] may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury property damage, advertising injury, products liability, contractual liability and full liquor liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:

• A drop down feature only upon erosion of the underlying policy aggregate limit; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and. • Insureds under primary policies shall also be insureds under the umbrella or excess

policies.

(d) Workers’ Compensation Insurance. [Proposer] shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). [Proposer] shall require all subcontractors performing work for [Proposer] under this agreement to maintain workers compensation insurance covering such subcontractors’ employees. The City, the Palm Desert Recreational Facilities Corporation and their elected or appointed officers, officials, employees, agents, and volunteers shall not be responsible for any claims in law or equity occasioned by the failure of [Proposer] to comply with this section, or with the provisions of California law relating to workers compensation insurance.

(e) Personal Property Coverage. [Proposer] shall not be required to maintain any first party property insurance for the facilities. The City, in its sole discretion, may procure or maintain any first party property insurance for the facilities that it deems necessary or self-insure for such risks.

(f) Crime Insurance/Fidelity Bond. [Proposer] shall maintain crime insurance or fidelity bond coverage, naming all persons signing checks or otherwise possessing fiscal responsibilities on behalf of [Proposer], including, but not limited to, officers, directors, trustees and employees of [Proposer]. Such coverage shall be no less than one $1,000,000 per occurrence, or equivalent to the estimated maximum funds in custody of [Proposer], whichever is greater.

(g) Right to Increase Insurance Coverage. [Proposer] shall have the right to increase, but not to decrease without the prior written consent of the City, the minimum amount of any insurance to be maintained by [Proposer] with respect to the facilities under this section, in order to make such coverage comparable to the amount of insurance carried with respect to other golf courses and country clubs operated by [Proposer], taking into account the size, character, and location of the facilities. The types of insurance and the coverage amounts specified in this section are the requirements of the City in connection with the operation of the facilities. Any losses, damages, liability or expenses that may not be covered by any of the insurance specified herein, and that are not within the scope of [Proposer’s] indemnity obligation, shall be a facilities expense.

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(h) Insurance Maintained by [Proposer]. Any insurance maintained by [Proposer] under this section may contain deductible provisions and self-insurance or self-assumption provisions, but must be declared to and approved by the City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance or self-assumption provisions will not be considered to comply with these specifications unless approved by the City. The City understands and agrees that with respect to all policies of insurance required under this section, the portion of any claim, loss, or damage subject to a deductible amount or a self-insurance or self-assumption amount shall be a facilities expense. [Proposer] shall obtain the consent in writing of the City Manager at least 30 days prior to any increase in the deductible amount or self-insured or self-assumed amounts for the insurance coverage maintained by [Proposer] under this section. Any failure to comply with reporting or other provisions of the policies, including breach of warranties shall not affect coverage provided to the City, the Palm Desert Recreational Facilities Corporation, and their elected or appointed officers, officials, employees, agents, and volunteers.

(i) Proof of Insurance. [Proposer] shall provide certificates of insurance to City as evidence of the insurance coverage required herein. Insurance certificates and required endorsements must be approved by the City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with the City at all times during the term of this contract. The City reserves the right to require insurance summaries be prepared by [Proposer’s] insurance broker at any time. Upon request from the City, [Proposer] shall provide certified copies of all insurance coverage forms and endorsements related to any insurance required by this agreement. [Proposer] may satisfy the requirement to provide certified copies of forms and endorsements either (i) by providing certified copies of actual policy documents with redactions of any information unrelated to the insurance requirements of this agreement, or (ii) by providing specimen copies of such forms and endorsements certified to be accurate and correct by the insurance carrier.

(j) Duration of Coverage. [Proposer] shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance under this agreement hereunder by [Proposer], their agents, representatives, employees, subcontractors, or consultants.

(k) Primary/Non-Contributing. Coverage provided by [Proposer] shall be primary and any insurance or self-insurance procured or maintained by the City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

(l) Blanket Policies. Any insurance policies provided by [Proposer]

may be effected under policies of blanket insurance which cover other properties in addition to the facilities, and in such case an allocable portion of the premiums for such blanket policies of insurance shall be considered a facilities expense.

(m) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger)

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in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

(n) Waiver of Subrogation. The Automobile, Workers Compensation, General Liability and Crime or Fidelity Bond insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the City, the Palm Desert Recreational Facilities Corporation, and their elected or appointed officers, officials, employees, agents and volunteers, or shall specifically allow [Proposer] or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. The Umbrella policy shall follow this provision in the aforementioned primary insurance. [Proposer] hereby waives its own right of recovery against the City and the Palm Desert Recreational Facilities Corporation, and their elected or appointed officers, officials, employees, agents and volunteers, and shall require similar written express waivers and insurance clauses from each of its subcontractors or consultants.

(o) Enforcement of Contract Provisions (non estoppel). [Proposer] acknowledges and agrees that any actual or alleged failure on the part of the City to inform [Proposer] of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

(p) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.

(q) Notice of Cancellation. [Proposer] agrees to oblige its insurance agent or broker and insurers to provide the City a 30-day notice of cancellation (except for nonpayment for which a 10 day notice is required) or nonrenewal of coverage for each required coverage.

(r) Insurance Premium Expenses. The expense of insurance premiums for any insurance required by this agreement shall be a facilities expense.

(s) Additional Insured Status. General Liability and Automobile

Liability policies shall provide or be endorsed to provide that the City, the Palm Desert Recreational Facilities Corporation, and their elected or appointed officers, officials, employees, agents and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

(t) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to the City and approved of in writing.

(u) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that [Proposer’s] insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

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(v) Pass Through Clause. [Proposer] agrees to ensure that its consultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by [Proposer], shall provide the same classes of insurance coverage and endorsements required of [Proposer] with coverage limits no less than the following: General Liability limits of $1,000,000 per occurrence and $2,000,000 aggregate; Automobile Liability limits of $1,000,000 combined single limit; and Workers Compensation coverage with statutory limits, including Employer’s Liability limit of $1,000,000 per accident or disease. [Proposer] agrees to ensure, by obtaining and verifying certificates of insurance and policy endorsements that its consultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by [Proposer], shall provide the same classes of insurance coverage and endorsements required of [Proposer]. [Proposer] agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to the City for review.

(w) City’s Right to Revise Specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving [Proposer] (90) days advance written notice of such change. (x) Timely Notice of Claims. [Proposer] shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from [Proposer’s] performance under this agreement, or are related in any way to the facilities, and that involve or may involve coverage under any of the required liability policies.

(y) Additional Insurance. [Proposer] shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection in performance under this agreement. [Proposer] must obtain the City’s prior written approval to have any additional expenses under this section included as a facilities expense.

(z) Safety. [Proposer] shall execute and maintain its work so as to avoid injury or damage to any person or property. [Proposer] shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees, consultants, and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

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