Parks, Recreation, and Community Services
www.santa-ana.org/parks
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 3, 2026
TOPIC: River View Golf Course Management Services
AGENDA TITLE
Agreement with Santa Ana Golf, LLC, a Wholly Owned Subsidiary of CourseCo, Inc., for River View Golf Course Management Services (Specification No. 26-002) (Non-General & General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute an agreement with CourseCo, Inc. to provide management services for the River View Golf Course in an amount not to exceed $3,083,377 which includes a 3% annual CPI adjustment, an incentive fee equal to 10% of Gross Operating Income above an established baseline threshold with a maximum cap of 50% of the annual management fee, as defined in the Agreement, for a term effective March 3, 2026, with operations commencing May 1, 2026, and expiring June 30, 2031, with provisions for two, five-year extensions expiring June 30, 2041. (Agreement No. A-2026-XXX)
2. Approve an appropriation adjustment to make a payment in the amount of $395,000 to the Golf Course Enterprise Fund (Fund 112) from the General Fund spendable fund balance (Fund 011) to provide initial working capital for operations of the golf course, which will be repaid from Golf Course revenue. (Requires five affirmative votes)
3. Approve an appropriation adjustment to budget the remaining two months of the 2025-2026 fiscal year, which will recognize $729,950 in Golf Course revenue account (no. 11213002-57990) and appropriate the same to the Golf Course expenditure accounts (no. 11213200-Various). (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
Approval of the proposed professional golf course management agreement represents a strategic shift in River View Golf Course operations that prioritizes public benefit, increased City oversight, and long-term reinvestment. With the existing lease expiring on April 30, 2026, the City has an opportunity to transition from a passive lease model to an
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operational structure that more closely aligns with the City’s mission: to make the golf course self-sustainable with no general fund contribution.
Background
River View Golf Course has served the Santa Ana community for more than 60 years and operates on land owned by the City and the Orange County Flood District. The City acquired property along the Santa Ana River channel north of 17 th Street in 1953 and entered into a lease agreement in 1964 with Riverview Golf Company (later restructured as Riverview Golf LLC) for the construction and operation of the golf course. In 1969, operations expanded to an 18-hole public golf course through an additional lease with the Orange County Flood District for adjacent land, comprised of approximately 70 acres.
Since that time, the course has operated under a private lease model under third-party management, Riverview Golf LLC.
The City’s lease agreement with the Riverview Golf LLC is set to expire on April 30, 2026.
The current operator’s lease with the Orange County Flood District has expired and is currently in a month to month status.
To ensure continuity of operations, the City and the Orange County Flood District are concurrently entering into a new lease agreement to support continued operation of River View Golf Course as an 18-hole public course. Since a portion of the golf course is located on land owned by the Orange County Flood Control District, the agreement includes requirements related to maintenance of District-owned property. Because these maintenance requirements may be periodically updated by the District, the agreement authorizes the City Manager or their designee to amend this section of the agreement, only, to reflect any new, updated, or amended District requirements.
Staff will separately propose a lease agreement between the County and the City for use of the property owned by the Orange County Flood Control District at a future council meeting, the cost of which will be part of the Golf Course Enterprise Fund annual operating budget.
As these lease agreements transition, the City is responsible for securing professional management for the full operation of the facility, creating an opportunity to increase City oversight, expand regional community recreational use, and strive to make itself sustainable.
Increased City Oversight
Under the proposed management agreement, the City retains ownership of River View Golf Course while the operator manages day-to-day operations on behalf of the City. This model provides the City with authority over operating budgets, fee structures, Riverview Golf Course Management Services
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programming priorities, and performance expectations. All management details are supported in the agreement with clear reporting requirements and audit rights.
Unlike a traditional lease arrangement, this management structure allows the City to play an active role in shaping how the course is operated, programmed, and reinvested. The increased oversight will ensure River View Golf Course functions as a public recreation asset.
Expanded Community Programming and Access
The management agreement model supports integration of Parks, Recreation, and Community Services Agency led programming, events, and partnerships into golf course operations. This includes expanded opportunities for youth golf instruction, increased access and programming for seniors, and the development of resident membership/pass options that encourage consistent community use.
The agreement also provides flexibility to host community events and tournaments that activate the course and strengthen community connections. For example, the operator will be required to host a minimum of three (3) community events annually at no cost to participants. This approach expands access while maintaining a high-quality golf experience.
Capital Investment Strategy
Transitioning to a professional golf course management agreement allows the City to take a more proactive and structured approach to capital investments at River View Golf Course. Through collaborative evaluation during the first six months of operating, City staff and the proposed operator will outline immediate needs critical to improving the overall golf experience and supporting safe operations. Anticipated priority projects may include the driving range, netting, and pro shop improvements.
The City is committed to identifying one-time funding sources to address these priority improvements early in the transition period. These initial investments will enhance customer experience, improve relations with neighboring residents, and support the successful launch of expanded programming and events.
Beyond these initial needs, the agreement establishes a framework for ongoing capital planning. City staff will work with CourseCo annually to evaluate capital improvement priorities and identify an appropriate portion of golf course revenues to dedicate to a capital improvement fund designated for the golf course. These investments will be reviewed and approved by the City Council as a part of the operator’s annual budget process, ensuring continued City oversight and alignment with community priorities. This reinvestment strategy supports future enhancements such as cafe upgrades, irrigation improvements, and modern golf technology.
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Qualified Municipal Golf Operator
In identifying a qualified operator for River View Golf Course, the City reviewed municipal golf course management agreements, consulted with multiple golf management firms, and evaluated operating models utilized by public agencies throughout California. Given the limited timeframe to transition operations prior to the April 30, 2026 lease expiration, emphasis was placed on selecting a firm with demonstrated experience in seamless municipal transitions, financial stabilization, and long-term asset stewardship.
City staff has selected CourseCo, Inc. as the proposed management firm to operate the golf course. CourseCo, Inc. is a California-based golf management firm founded in 1989 with extensive experience operating publicly owned golf facilities. The company currently manages more than 40 golf properties nationwide, the majority of which are owned by public agencies. Courses in Southern California managed by CourseCo are Altadena Golf Course, Eaton Canyon Golf Course, Fullerton Golf Course, Green River Golf Club, and Santa Barbara Golf Club. CourseCo specializes in municipal golf operations, including 18-hole championship courses, driving ranges, practice facilities, food and beverage services, and retail pro shop operations.
CourseCo has successfully transitioned numerous golf facilities from traditional lease arrangements to management agreement models, providing public agencies with enhanced oversight, improved financial transparency, and structured capital reinvestment strategies. Their operational approach emphasizes: agronomic best practices, preventative maintenance programs, customer service training, revenue optimization, and community-based programming that supports youth golf, instructional programs, tournaments, and special events.
CourseCo’s management model provides a competitive and transparent fee structure supported by comprehensive capital planning and equipment lifecycle strategies. The firm utilizes data-driven financial reporting and performance benchmarking to ensure accountability and informed decision-making. CourseCo also prioritizes operational continuity through staff retention strategies, including on-site hiring fairs and training programs, while leveraging procurement efficiencies and established vendor relationships to reduce operating costs. In addition, the company brings extensive risk management and regulatory compliance expertise specific to publicly owned facilities, ensuring operations align with public agency standards and requirements.
Under current market conditions, initiating a new standalone competitive procurement within a shortened timeframe could expose the City to operational disruption and higher transition risk. CourseCo’s established municipal expertise allows for an efficient and structured transition while maintaining uninterrupted service to golfers and the Riverview Golf Course Management Services
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surrounding community, which is in the best interests of the City and public. Moreover, CourseCo’s recent management agreement with the City of Fullerton was competitively bid and the agreement proposed here is substantially similar to Fullerton’s, as is Fullerton’s competitive bidding process substantially equivalent to that of the City’s.
Lastly, CourseCo’s agreement is one for services, which is also exempted from the competitive bidding process (SAMC § 2-807).
This management agreement provides the City with an opportunity to increase oversight of River View Golf Course, strengthen fiscal accountability, expand community-focused programming, and implement a sustainable reinvestment strategy that supports long-term stewardship of this valued public recreational asset.
Contract Summary
The proposed Management Agreement with Santa Ana Golf, LLC (CourseCo’s wholly owned subsidiary) establishes a five-year professional management structure for River View Golf Course, with two additional five-year renewal options at the City’s discretion.
CourseCo will provide full turnkey municipal golf operations including golf services, food and beverage, maintenance oversight, marketing, staffing, and capital planning while the City retains ownership, policy authority, and annual budget approval. Under the agreement, CourseCo will receive a fixed Management Fee of $95,000 annually, paid in equal monthly installments, increasing by 3% annually. In addition, the City will pay a separate Accounting Fee of $21,000 annually for financial reporting and administrative services, also increasing by 3% annually beginning in year two. A performance-based Incentive Management Fee is only triggered if Gross Revenues exceed $4.0 million in a fiscal year and is capped at 50% of the annual Management Fee. For comparison, first- year projected revenue is approximately $3.7 million. The agreement also includes structured capital planning, annual City-approved budgets, and full indemnification and insurance protections, transferring operational risk while preserving municipal oversight.
CourseCo will process all revenue and expenditure transactions through a city approved bank account that is managed by CourseCo. Each month, CourseCo will issue a check to the City for any net revenue, which will be deposited in the City’s Golf Course Enterprise Fund. Additionally, CourseCo will provide financial information of revenue and expenditures that will be entered into the City’s financial system.
The City Attorney’s Office worked collaboratively with staff to develop and finalize the Management Agreement to ensure compliance with municipal contracting standards, risk allocation requirements, and California law.
Overall, this approach strengthens financial sustainability, addresses deferred maintenance, and enhances the guest experience, while expanding community programming, youth access, and event opportunities ensuring River View remains an Riverview Golf Course Management Services
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affordable, well-maintained, and community-centered public asset for Santa Ana residents and surrounding communities.
Staff recommends awarding an agreement with CourseCo, Inc. (Exhibit 1) based on the firm’s extensive experience managing municipal golf courses, proven ability to transition publicly owned facilities into structured management models, and demonstrated capacity to improve operational performance while expanding community programming.
CourseCo’s proposal provides a competitive fee structure, a defined capital planning framework, and operational continuity through retention of existing staff where feasible.
Staff believes this agreement best positions the City to enhance oversight, strengthen long-term fiscal sustainability, and preserve River View Golf Course as a high-quality public recreational asset.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
The golf course is expected to be self-sufficient with no fiscal impact to the General Fund.
The $395,000 request from the General Fund is solely to provide initial cash flow, structured as a short-term payable [no. 01101001-12128 (Due from Other Funds) to no. 11201001-20200 (Due to Other Funds)] to be repaid in FY 2026-2027. The fees for management services and other operational costs are to be paid from revenue received from the golf course and any excess revenue is to be deposited into the Golf Course Enterprise Fund to fund future capital improvements. Previously, the City realized approximately $175,000 of annual revenue in fiscal year 2024-2025 from leasing its land to the golf course operator. In the short-term, staff recommends reinvesting net proceeds back into golf course improvements. However, in the long-term, staff expects to have recurring net revenue available for the General Fund.
The CourseCo incentive fee is to be re-negotiated prior to the execution of the first renewal period. Financial statements will be audited annually by a certified public accounting firm, and the City will have the right to review golf course financial records at any time.
The following tables provide financial data that provides a narrative of operating revenues and expenses.
Summary of management, incentive, and accounting fees for the initial five-year term will be as follows:
Fiscal Year Management
Services
Incentive Fee
(Maximum)
Accounting
Services
Total
25/26 $15,834 $0 $3,500 $19,334
26/27 $95,475 $47,500 $21,105 $164,080
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27/28 $98,340 $48,925 $21,738 $169,003
28/29 $101,290 $50,393 $22,390 $174,073
29/30 $104,328 $51,905 $23,062 $179,295
30/31 $107,458 $53,462 $23,754 $184,674
With the approval of recommended action number two, an appropriation adjustment to provide working capital for the Golf Course Enterprise fund will be as follows:
Fiscal
Year
Accounting Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY 25-26 11213200-69135 Golf Course
Enterprise
Fund
Golf Course Enterprise,
Payment to Subagent
$395,000
The estimated spendable General Fund balance is $11,627,075.
The working capital provided by the General Fund will be repaid during the 2026-2027 fiscal year.
With the approval of recommended action number three, funds will be budgeted for the remaining two months of the fiscal year (May and June) as follows:
Fiscal
Year
Accounting Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY 25-26 11213002-57990 Golf Course
Enterprise Fund
Golf Course Revenue,
Miscellaneous Income
$729,950
FY 25-26 11213200-69135 Golf Course
Enterprise Fund
Golf Course Enterprise,
Payment to Subagent
$594,755
FY 25-26 11213200-69011 Golf Course
Enterprise Fund
Golf Course Enterprise,
Reserve Appropriation
$135,195
CourseCo, Inc. has provided a pro forma budget for FY26-27 of operations with a Net Operating Revenue of $3,689,885 and Operating Expenses Before Capital Improvement of $2,919,316 for a Net Operating Income of $770,569. The Parks, Recreation, and Community Services Agency (PRCSA) in collaboration with the Finance Department also reviewed the financial information of the current operator (River View Golf) and the information provided by CourseCo, Inc. is in line with the City’s estimates. CourseCo, Inc.’s annual budget plan may be adjusted quarterly to account for changes that occur during the year, similar to how the City has Quarterly Budget Updates, and as CourseCo, Inc. obtains additional operational information from actually managing the facility.
Revenue and appropriations for fiscal year 2026-2027 will be included in the City’s annual budget development process.
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EXHIBIT(S)
1. Agreement with CourseCo, Inc.
2. CourseCo - River View Proposal
Submitted By: Hawk Scott, Executive Director of Parks, Recreation, and Community Services Agency
Approved By: Alvaro Nuñez, City Manager