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Home My WebLink About2026-29 Landmark Golf Management Amendment 8 - SilverRock Golf ManagementAMENDMENT NO. 8 TO GOLF COURSE MANAGEMENT AGREEMENT This Amendment No. 8 ("Amendment 8") to Golf Course Management Agreement ("Agreement") is made and entered as of the 1st day of July 2026 ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation, and LANDMARK GOLF MANAGEMENT, LLC. ("Manager"). RECITALS WHEREAS, on or about July 1, 2013, the City and Manager entered into an Agreement to provide services related to managing golf course operations at SilverRock Resort; and WHEREAS, on or about July 1, 2018, the City and Manager executed Amendment No. 1 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2018 until June 30, 2019 ("Extended Term"); • Section 4.1.1 Management Fee. by increasing the Management Fee for a total not to exceed amount of $114,000 for fiscal year 2018/19; • Section 8.1 Termination by City granting the City sole discretion, without penalty or cause to terminate the Agreement on any date after June 30, 2019 with a minimum sixty (60) day prior Written Notice on early termination to Landmark; and WHEREAS, on or about June 19, 2019, the City and Manager executed Amendment No. 2 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2019 to June 30, 2020 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by suspending deposit from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2020; • Section 4.1.1 Management Fee by increasing the annual management fee by 4% for a total not to exceed amount of $119,000 for fiscal year 2019/20; and • Section 8.1 Termination by City granting the City sole discretion, without penalty or cause to terminate the Agreement on any date after June 30, 2020 with a minimum sixty (60) day prior Written Notice on early termination to Landmark; and WHEREAS, on or about June 16, 2020, the City and Manager executed Amendment No. 3 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2020 to June 30, 2021 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by suspending deposit from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2021; • Section 4.1.1 Management Fee by decreasing the annual fee by 5% to a total not to exceed amount of $112,632 for fiscal year 2020/21; and WHEREAS, on or about June 1, 2021, the City and Manager executed Amendment No. 4 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2021 to June 30, 2022 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by reinstating deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2022; • Section 4.1.1 Management Fee by implementing an annual increase to the annual fee, reinstating it to the previous not to exceed amount of $118,560 for fiscal year 2021 /22; and WHEREAS, on or about June 21, 2022, the City and Manager executed Amendment No. 5 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2022 to June 30, 2023 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by reinstating deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2023; • Section 4.1.1 Management Fee by implementing an annual increase to the annual fee, reinstating it to the previous not to exceed amount of $124,488 for fiscal year 2022/23; and WHEREAS, on or about June 20, 2023, the City and Manager executed Amendment No. 6 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for three additional years, from July 1, 2023 to June 30, 2026 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by reinstating deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2026; • Section 4.1.1 Management Fee by implementing a 5% annual increase to the annual fee, for a total not to exceed amount of $130,704 for fiscal year 2023/24 and an annual 5% increase for consecutive years; and WHEREAS, on or about June 4, 2024, the City and Manager executed Amendment No. 7 and mutually agreed to amend: • Section 5.1 Golf Course Accounts by raising the amount of Advance funds by $50,000 from $250,000 to a total of $300,000 for the purpose of paying routine Golf Course Expenses. WHEREAS, City and Manager mutually agree to extend the term of the Agreement for three additional years, from July 1, 2026 to June 30, 2029 ("Extended Term") pursuant to Section 2.2 Management Term; and WHEREAS, City and Manager mutually agree to reinstate deposits from the Golf Course Accounts for the 2% Capital Improvement Funds pursuant to Section 3.10.1 Capital Improvement Funds until June 30, 2029; and WHEREAS, City and Manager mutually agree to amend Section 4.1.1 Management Fee by implementing a five percent (5%) annual increase to the Management fee for a total not to exceed annual amount of $151,284 for fiscal year 2026/27 and an annual 5% increase for consecutive years; and WHEREAS, Section 8.1 Termination by City was amended via Amendment No. 2 to change the date by which the City, in its sole discretion, without penalty or cause, may terminate the Management Term on any date after June 30, 2020, with a minimum sixty (60) day prior Written Notice on early termination to Landmark, and will remain in full force and effect. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 2.2 Management Term The Management Term shall commence July 1, 2026. The Management Term and this Agreement shall end on June 30, 2029. 3.10.1 Capital Improvement Funds City shall reinstate deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2029. 4.1.1 Management Fees Manager shall receive from City an annual Management Fee in the amount of One Hundred and Fifty -One Thousand Two Hundred and Eighty -Four Dollars ($151,284) for fiscal year 2026/27 and an annual 5% increase for consecutive years. In all other respects, the Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5, Amendment No. 6, and Amendment No. 7 shall remain in effect. IN WITNESS WHEREOF, the City and Manager have executed this Amendment No. 8 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation and Charter City SIGNED IN COUNTERPART Jon McMillen, City Manager Dated: ATTEST: SIGNED IN COUNTERPART Monika Radeva, City Clerk City of La Quinta, California APPROVED AS TO FORM: SIGNED IN COUNTERPART William H. Ihrke, City Attorney City of La Quinta, California LANDMARK GOLF MANAGEMENT, LLC .; V Joe Gill, President & CEO Dated. June 3, 2026 CITY OF LA QUINTA a California municipal corporation and Charter City illen, City Manager Dated: 2U ATTEST: —*4bq Monika Radeva, ity rk City of La Quinta, Cali rnia APPROVED AS TO FORM: William H. Ihrke, ity Attorney City of La Quinta, California LANDMARK GOLF MANAGEMENT, LLC SIGNED IN COUNTERPART Andy Vossler, President & CEO Dated: City of La Quints BUSINESS SESSION ITEM NO. 5 CITY COUNCIL MEETING: May 5, 2026 STAFF REPORT AGENDA TITLI : APPROVE AMENDMENT NO. 8 TO GOLF COURSE MANAGEMENT AGREEMENT WITH LANDMARK GOLF MANAGEMENT, LLC FOR SILVERROCK GOLF COURSE MANAGEMENT SERVICES RECOMMENDATION Approve Amendment No. 8 to Golf Course Management Agreement with Landmark Golf Management, LLC to provide SilverRock golf course management services for three additional years until June 30, 2029, for a total not to exceed amount of $151,284 for fiscal year 2026/27 and an annual 5% increase for consecutive years; and authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY • In 2013, the City entered into a five-year Golf Course Management Agreement (Agreement) with Landmark Golf Management (Landmark) for SilverRock golf course management services, which was extended in 2018, 2019, 2020, 2021, 2022, and 2023 (Amendment Nos. 1, 2, 3, 4, 5, and 6), and will expire effective June 30, 2026. In 2024, Amendment No. 7 was executed to raise the advance amount established in Section 5.1 Golf Course accounts by $50,000 to a total of $300,000. • Amendment No. 8 (Attachment No. 1) will extend the term for three years, through June 30, 2029; the Agreement allows for additional extensions if desired to continue coordinating with the development of the hotels and other adjacent facilities. • Amendment No. 8 includes a 5% increase to the annual management fee from $144,084 to $151,284, with an annual 5% increase for consecutive years. FISCAL IMPACT The golf course annual management fee pursuant to Amendment No. 8 for fiscal year (FY) 2026/27 would be $151,284 with an annual 5% increase for consecutive years. This amount is included in the proposed 2026/27 SilverRock Resort Annual Plan and the FY 2026/27 SilverRock Fund Management Fee budget in Account No. 601-0000-60208. 175 BACKGROUND/ANALYSIS In July 2013, the City entered into a five-year Agreement with Landmark for SilverRock golf course management services, which was extended in 2018 (Amendment No. 1); 2019 (Amendment No. 2); 2020 (Amendment No. 3); 2021 (Amendment No. 4); 2022 (Amendment No. 5) and in 2023 (Amendment No. 6); the term will expire on June 30, 2026. Additionally, in 2024, Amendment No. 7 was executed to raise the advance amount established in Section 5.1 Golf Course Accounts by $50,000 to a total of $300,000. As TBE RE Acquisition Co., a subsidiary of Turnbridge Equities, advances the development of the project site, it is in the best interest of all stakeholders to continue retaining Landmark Golf Management as the golf course operator throughout this period. Landmark is highly experienced in golf course operations, particularly in maintaining stable service levels amid ongoing construction disruptions, and is therefore uniquely suited to continue management. Amendment No. 8 provides the following changes: • Extend the term until June 30, 2029 (Section 2.2 Management Term); • Reinstate the deposits from the Golf Course Accounts for the 2% Capital Improvement funds until June 30, 2029 (Section 3.10.1 Capital Improvement Funds); • Reinstatement of the 2% Capital Improvement funds is recommended to ensure funding is available for anticipated improvements as aging infrastructure reaches its useful life. The estimated amount for FY 2026/27 is $93,000 and is included in the proposed SilverRock operating budget; • Increase the annual Management Fee by 5% for a total annual amount of $151,284 (Section 4.1.1) for (FY) 2026/27, and an annual 5% increase for consecutive years. ALTERNATIVES Due to the timeline of the development and the operational knowledge of the golf course by Landmark, no alternatives are recommended at this time. Prepared by: Claudia Martinez, Finance Director/City Treasurer Approved by: Jon McMillen, City Manager Attachment: 1. Amendment No. 8 to Golf Course Management Agreement 176