PLEASANTON GOLF - COURSECO OPERATOR AGREEMENT

3.07 Intrusions. OPERATOR acknowledges that the Premises are located adjacent to CITY open space and trails and that use of the trail facilities by the public may result in some intrusions in or upon the Premises. OPERATOR shall treat trail users with consideration and courtesy even when they may be wrongfully on the Premises, but shall have the right to deny use of the Premises for unauthorized purposes. CITY reserves the right from time to time during the term of this Agreement, to promulgate such reasonable rules and regulations concerning the use of the Premises and any part or parts thereof, as CITY, in its sole discretion, shall deem appropriate. 3.08 Monthly Reports and Annual Plans. 3.08.1 Monthly Reports and Activities. Within twenty (20) days after the end of each month, OPERATOR shall provide CITY with the following reports and documents: a) Year-to-date balance sheet, and income and expense statement including all Direct Costs for that month and Gross Revenues for that month (itemizing each source of Gross Revenues including, without limitation, green fees, golf cart rentals, Pro Shop sales, food and beverage sales, lesson fees, nonrefundable tournament reservations and driving range operations); b) Duplicate bank statement; c) Check register or equivalent report; and d) A reconciliation between the bank statement and the check register. 3.08.2 Preparation of the Annual Plan. OPERATOR shall submit to Director the Annual Plan for the Golf Course for the next Operating Year ("Annual Plan") no less than one hundred and fifty (150) days prior to the start of that Operating Year. 3.08.3 Contents of the Annual Plan. The Annual Plan shall include: a) Operating budget showing Golf Course Expenses for previous year and estimates of all Golf Course Expenses for the next Operating Year and for CITY's two-year budget, including expenditures for: (i) property operation and maintenance; (ii) repairs, replacements, and alterations which do not constitute Capital Expenditures; (iii) Furnishings and Equipment and Cost of Goods Sold; and (iv) advertising, sales, and business promotion; b) Actual numbers for previous years and estimates for the following Operating Year for the following items: (i) Gross Revenues separated into green fees, driving range fees, cart fees, lesson fees, merchandise revenue, food and beverage revenue, and tournament revenue; (ii) number of employees; (iii) number of rounds to be played categorized by weekday/weekend/holiday, time of day, rate and residents/nonresidents; and (iv) Combined Management Fee; E