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14-120 NGF Consulting for Blackberry Farm Golf course Facility Review NaFCONSULTING LEM ® v m MM MATIONei GOLF FOUND z o 44--� (408)777-3226 carols @cupertino.org June 16, 2014 Carol Atwood Director of Parks & Recreation City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 NGF Consulting Proposal#214021 Re: Blackberry Farm Golf Course Facility Review Dear Carol: It was great to meet with you, David, and the team a couple of weeks back to tour Blackberry Farm Golf Course. We understand that the City of Cupertino ("City")faces an annual operational shortfall with the 9-hole short course, requiring some general fund support. The City would like an independent expert to evaluate BlackBerry Farm, from both operational and physical facility perspectives, and make recommendations that wil'I result in improved financial results. Results of the facility analysis will also be incorporated into the City's overall Parks Master Plan. Toward that end, we submit this summary letter for consulting services to be provided by NGF, with Forrest Richardson, ASGCA, of Forrest Richardson &Associates, acting as subcontractor to NGF. The proposed engagement will comprise the following scope of services: • Meet with City staff, including the City Manager and Director of Administrative Services, to review the scope of work and obtain information on the golf operation. • Collect relevant data, documents and contracts that pertain to the golf operation, including fee schedules, financial records, budgets, activity reports, and marketing plans & materials. • Meet with golf course staff, including the golf professional and superintendent, to review operating policies and procedures. ® Review the maintenance condition of the Blackberry Farm Golf Course, including golf course, buildings and equipment. • Undertake a facility data and performance analysis, focusing on activity levels, revenues, and expenses. • Review marketing communications and make recommendations for improvements. • Summarize external factors, such as local competition, demographic and economic variables that have the potential to affect performance at Blackberry Farm GC. • Analyze the Blackberry Farm fee structure in the context of the competitive golf market and make recommendations regarding the club's pricing and market position. NATIONAL GOLF FOUNDATION CONSULTING,INC. A Subsidiary of the National Golf Foundation 1150 SOUTH U.S.HIGHWAY ONE,SUITE 401,JUPITER,FL 33477 o(561)744-6006 o FAX:(561)744-9085 c www.ngf.org • Prepare a 10-Year Capital Plan for Blackberry Farm Golf Course. • Prepare 5-year Blackberry Farm GC financial projections, assuming implementation of recommended operational and physical improvements. NGF Consulting anticipates frequent communication with City staff during the course of this engagement. At the conclusion of the study process, NGF will develop a concise written report that will contain all updated findings, recommendations, and documentation, as well as an executive summary. A draft version of the documont will be delivered to the client for review and comments. Once the report is finalized, the lead NGF consultant will be available to make a formal presentation of findings to the City(direct travel expenses may be incurred), or be available to answer any questions via conference call. STUDY COST AND TIMING SUMMARY The total professional fee for this engagement will be $15,000. This fee does not include direct project expenses (e.g., lodging, coach airfare, rental car) associated with the field visit to Cupertino by NGF project manager Ed Getherall rind sub-consultant Forrest Richardson. These expenses will be billed at cost and will not exceed $3,000 without the client's permission. (If an additional site visit(s) is required for a presentation of findings, no additional professional fees will be charged, but direct travel-related expenses will be billed to the City if original expense cap is exceeded). NGF Consulting anticipates a six-to-seven week timeframe to deliver a draft report of findings to the City. ACCEPTANCE Acceptance is indicated by providing NGF Consulting with a signed copy of this proposal (incorporated in a City of Cupertino contract as necessary). Carol, if you need any additional information, or would like to discuss any of the spE�cifics of this proposal, please call me at(561) 354-1650. Sincerely, - , Ed Getherall Senior Director of Operations (561)354-1650 egetherall ngf.orq ! s r Acceptance: L -�_ } Date: NATIONAL GOLF FOUNDATION CONSULTING QUALIFICATIONS The NGF's work is supported by a base of approXimately 3,500 members representing every facet of the industry: public and private golf facilities; golf course architects; developers and builders; companies offering specialized services to the golf industry; national, regional, state, and local golf associations; instructors; schools, and individuals. The NGF's board of directors includes senior executives from the leading complanies in each major segment in the golf industry including officers from The First Tee, Callaway Golf Company, Leisure Financial Group, Billy Casper Golf, Myrtle Beach Golf Holiday, GOLF Magazine/Sports Illustrated, TaylorMade- Adidas Golf, Toro Golf Company, the United States Golf Association, Conde Nast, and Hallmark Retail. There is no greater authority than the NGF on the economics of supply and demand in the business of golf. The NGF's exclusive Golf Demand Model provides best-in-class data on every U.S. market and is utilized by many clients to improve both forecasting and customer targeting. The NGF's database of U.S. golf facilities is the industry's gold standard and is licensed by the USGA, PGA of America, Club Managers Association of America and the Golf Course Superintendents Association of America, as well Cas private enterprise such as Weather.com and NAVTEQ. Our most important research is published and distributed to NGF members and non-members and is widely quoted in local, national, and international press and are used by numerous other golf-oriented consulting and information firms. NGF publications include: Golf Participation in the U.S., annual editions; Golf Facilities in the U.S., annual editions; NGF Dashboard newsletter, published monthly; The Future of Public Golf in America, 2010; Golf Industry Overview 2009; Golfer Technology Profile, 2009; Golf'Consumer Buying Profiles, 2009; Golf Travel in the U.S., 2009; The Future of Private Golf Clubs in America, 2008; National Golf Rounds Played Report quarterly with annual summaries; A Strategic Perspective on the Future of Golf, 2007; Operating & Financial Performance Profiles of 18-hole Golf f=acilities in the U.S., 2010. The NGF's Consulting Division was established in 1987 and has conducted more than 950 assignments throughout North America, plus Europe, Asia, the Caribbean, and South America. These engagements cover a broad spectrum of services, although assistance to U.S. municipalities operating golf facilities has become the landmark service for which the NGF consultants are most well-known. Since the National Golf Foundation is not involved in the design, construction, or operation of golf facilities, we are able to provide our clients with completely independent advice, and our staff will not hesitate to identify operational deficiencies that affect the performance of an existing facility or-to advise clients against proceeding with a golf project. All consulting work is conducted under, the direction of Edward Getherall, Director of Operations, and Richard B. Singer, Director of Consulting Services at the National Golf Foundation. Other staff members 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 for the two consulting principals appear on the following pages. Edward Getherall, Senior Director of Operations Ed Getherall joined the NGF Consulting staff as Project Analyst in 2000 after several years of subcontracting consulting services to the NGF. IViIr. Getherall, who was promoted to Senior Project Director in 2001 and Senior Director of Operations in 2013, has been instrumental in cementing NGF Consulting's status as the leader in municipal golf facility consulting, with a particular focus on improving municipal golf courl,e marketing and making smooth transitions to alternative operating structures for their golf systMS. Mr. Getherall has also directed NGF's effort to be the leading industry resource for accurate golf market information pertaining to facility activity levels, revenue center performance, and green fee levels and trends. Since joining NGF Consulting, Mr. Getherall has become a respected industry authority on food & beverage operations, clubhouse renovation/replacement, municipal golf management alternatives, outsourcing assistance (RFP preparation/analysis of responses/contract negotiations), and other areas of expertise. NGF Consulting Projects Experience Mr. Getherall's extensive business and marketing background has enhanced NGF Consulting's ability to provide expertise to the facility segment of the golf industry. In 12 years in NGF's Consulting division, Ed has been the lead project director for more than 80 consulting assignments, covering a broad range of services, including public and private golf course feasibility studies, acquisition studies, operations reviews, golf-related real estate absorption analyses, pricing / market positioning analyses, and clubhouse renovation /replacement studies. Public Sector Clients (partial list) City of Houston,TX City of Palm Spring:, CA Mecklenburg County, NC City of Melbourne, FL Bergen County, NJ City of Greeley, CO City of Alameda, CA Town of Wallingford, CT City of Concord, NC City of Omaha, NE City of Yonkers, NY City of White Plains, NY City of Yuma,AZ City of Farmington, NM Woodbridge Township, NJ City of Gainesville, FL City of Gallup, NM Village of Royal Palm Beach, FL City of Clayton,OH City of Redmond, OR Town of Brookline, MA City of Antioch, CA City of West Palm Beach, FL Village of Wellington, FL Miami-Dade County, FL City of Henderson, 1\11V Palm Beach County, FL City of Concord, CA City of Gilbert,AZ City of Reno, NV City of Lake Havasu,AZ City of Tempe,AZ City of Oakland Park, FL City of San Antonio,TX Town of Farmington, CT City of Naples, FL Kealakehe Ahupua'a 2020, HI City of Palm Coast, FL City of Tarpon Springs, FL City of Victorville, CA City of Apple Valley, MN City of Kentwood, MI City of San Diego,CA Borough of Dunmore, PA City of Soldotna,AK Municipality of Anchorage,AK City of Gresham, OR City of Portland, OR City of Oviedo, FL City of San Francisco, CA City of New York, NY City of Livermore, CA El Dorado Hills, CA((3SD) Ft. Belvoir GC(U.S.Army),VA National Golf Foundation Consulting, Inc.—Proposal#214021 —Blackberry Farm GC Facility Review—2 Private Sector Clients Textron Financial Corporation Meadowbrook Golf Pulte Homes Dalhousie Golf Club Hoffman PropertiES, Ltd. Oaktree Capital Management Front Royal C.C. Bonita Bay Propeities Conley-Manning, LLC Scituate Highlands, LLC Watermark Communities, Inc. Prestwick Plantation, LLC Black Clover Golf, UT Callaway& Price Loving&Campos Architects The Mohegan Sun Tribe Poxabogue Golf Course Lely Development Corporation Partyka Resource Management Triangle Equities River Bluff Resort,LLC Palmer Investments, Inc. Golf Trust, Inc. Dominion Realty Advisors Beazer East, Inc. Jonathan's Landing POA Pocoy Consulting Stauffer Management Co. Mizner Trail Golf Club Keyser Marston Associates Belfonti Capital Partners Fuzzy Zoeller Productions. University of the South Putting Zone, Inc. Sun City Center Golf Around the World 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, and special event planning and consulting. Mr. Getherall earned his M.B.A. from the University of Florida with a concentration in finance. Ed also achieved his undergraduate degree at Florida with a B.S. in Business Administration (Marketing). With a diversified educational and professional background 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. National Golf Foundation Consulting, Inc.—Proposal#214021 —Blackberry Farm GC Facility Review—3 Richard B. Singer, Director of Consulting Services Richard B. Singer has been the Director of Consulting Services for the National Golf Foundation (NGF) since 1997, and now has a total of 24 years of golf facility consulting experience. Mr. Singer first joined the NGF consulting staff in 1989 as a project analyst after completing his Real Estate Finance MBA at the University of Florida. IVIr. 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 arid 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 -Economic Impact Analysis -Clubhouse Programming -Staffing/HR -Real Estate Master Planning -Public Pmsentations -Proposal Writing -Expert Witness -Golf Course Brokerage -Portfolio Analysis National Golf Foundation Consulting Experience— During his tenure with NGF Consulting, Mr. Singer has been responsible for preparing over 350 research studies for specific projects related to golf facilities. Mr. Singer is a widely recognized expert and frequent speaker, host and expert witness on subjects related to golf facility development, operation, management, finance, and transactions. In his 24 years as a golf consultant, Mr. Singer has visited and/or profiled more than 2,800 public and private golf facility opE.,rations in the United States and internationally. Mr. Singer also has extensive expfience as an expert witness in matters related to golf facility operation, providing litigation assistance to golf course owners for estimating economic damages and in helping to defend golf facility owners in civil litigation. Golf Facility Operations Consulting — Mr. Singer's golf facility operations consulting assignments comprise all aspects of golf facility operations, including golf courses, driving ranges, clubhouses, merchandise and food and beverage operations. Many golf facility operational consulting engagements require public: presentations and Mr. Singer has demonstrated considerable poise in defending controversial golf facility proposals. Golf Facility Development/Acquisition Consulting— In his 24 years with NGF Consulting, Richard Singer has become one of the most experienced golf facility development and acquisition consultants available today. His extensive experience includes feasibility studies, acquisition due diligence, appraisal and brokerage support, golf master plan development, and golf facility business plan preparation. Through the last three decades, Mr. Singer has completed several consulting engagements involving the conversion of"sensitive" sites into golf facilities (i.e. landfills). 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. National Golf Foundation Consulting, Inc.—Proposal#214021 —Blackberry Farm GC Facility Review—4 Key Accounts Managed (2009-2014) Representative public sector clients in 2009-2014 include: Fairfax County(VA) Park Authority (operations review—7 courses); City of Edina, MN (3-facility review of operations); State of Georgia (7-course review of operations and outsource assistance); City of Portland, OR (5-course operations review); City of Phoenix, AZ (6-course operations review); City of Aurora, CO (7-course operations review); City of Alameda, CA (golf facility operations review and master plan preparation); City of Burbank, CA (golf facility operations review and lease preparation); City of Auburn, WA(clubhouse review); City of Casselberry, FL (Private club acquisition); City of Thornton, CO (operations reviiew); Borough of Sea Bright, NJ (beach/pool club development); City of Coronado, CA(GC performance benchmarking); the City of Dunedin, FL (golf facility review of operations and lease preparation); City of Portland, ME (6-course operations review); City of Lincoln, NE (5-course operations/sustainability review); the State of Utah (6-course operations review). These public sector projects include extensive participation in public meetings and a defense of project work. Representative private sector clients in 2009-2014 include: The Trump Organization (private club lease analysis); The Pointe Lake and Golf Club (strategic plan); Waterlefe CDD (strategic plan); Heritage Isles CDD (clubhouse program plcan); Verdict Ridge CC (member-acquisition analysis); Fleming Island CDD (rate study); Nicklaus Golf Companies (business plan review); Evergreen Investments (golf property portfolio analysis); The Moorings Club (market positioning analysis); Palmer Investments (new facility feasibility study); Walt Disney Imagineering (strategic plan for golf); Bonita Bay Properties (strategic plan for golf); Dartmouth College/ Hanover CC (sustainability analysis); US Naval Academy Golf Club (review of operations); and Mahogany Run GC (St. Thomas, USVI —acquisition analysis). Representative alternative facility clients in 2005-2014 include: Greens of Las Vegas, Inc. (new facility feasibility); Golden Bear International (new facility feasibility); City of Lake Oswego, OR (par-3 course reconfiguration and range expansion); Palm Beach County, Florida; City of Ft. Lauderdale, FL (new facility on landfill feasibility); City of Plantation, FL (litigation support); Gambrell & Stoltz (Macon, GA—expert testimony); and Development Consulting Co. (three ranges in CA & FL). Representative regional market and economic impact clients in 1999-2014 include: the State of West Virginia (Statewide 'Golf Trail' study); State of Oklahoma (Statewide Economic Impact Study); Bonita Bay Properties; Golf 20120-- Raleigh-Durham MSA Study; 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 facillity consulting on projects located in the countries of Canada, Sweden, Korea, Egypt, United Arab Emirates, Dominican Republic, Anguilla (BWI), US Virgin Islands, 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 Life and Baird Securities before earning an MBA in Real Estate Finance from the University of Florida in 1989. Mr. Singer is a Licensed Real Estate Broker in Florida (Lic.#BK3077126). National Golf Foundation Consulting, Inc.—Proposal#214021 —Blackberry Farm GC Facility Review—5