2008 06 02 RDA&# 4 4 ade6i
Redevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calls Tampico
La Quinta, California 92253
Adjourned Meeting
MONDAY, JUNE 2, 2008
3:00 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2008-002
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Osborne, Sniff, and Chairman Kirk
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CLOSED SESSION
NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when acquisition of real property is
considered.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS
R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL PRICE, TERMS, AND CONDITIONS OF
ACQUISITION AND/OR DISPOSITION OF REAL PROPERTIES IDENTIFIED AS
APNS: 773-370-028 AND -029, SILVERHAWK APARTMENT HOMES.
PROPERTY OWNER/NEGOTIATOR: G COMPANIES, JAMES C. GIANULIAS.
Redevelopment Agency Agenda 1 June 2, 2008 - 001
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
4:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Redevelopment Agency on any matter
not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
APPROVAL OF MINUTES OF MAY 20, 2008.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF DEMAND REGISTER DATED JUNE 2, 2008.
BUSINESS SESSION
CONSIDERATION OF A CONTRACT AMENDMENT WITH ALTEVERS
ASSOCIATES FOR SILVERROCK RESORT PERMANENT CLUBHOUSE
DESIGN SERVICES.
A. MINUTE ORDER ACTION
STUDY SESSION
1. DISCUSSION OF SILVERROCK RESORT CLUBHOUSE FINANCING AND
OPERATIONS PROGRAM.
002
Redevelopment Agency Agenda 2 June 2, 2008
AND BOARD MEMBERS' ITEMS - NONE
PUBLIC HEARINGS - NONE
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on June 17,
2008, commencing with closed session at 3:00 p.m. and open session at 4:00
p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Redevelopment Agency adjourned meeting
of June 2, 2008, was posted on the outside entry to the Council Chamber at
78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and
78-630 Highway 111, on May 29, 2008.
DATED:/May 29, 2008
VERONICA J.AONTECINO, City Clerk
City of La Quinta, California
-- - 00.3
Redevelopment Agency Agenda 3 1June 2, 2008
La�
444 � 5
C ` OF
COUNCIL/RDA MEETING DATE: June 02, 2008
ITEM TITLE: Demand Register Dated
June 02, 2008
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
June 02, 2008 of which $33,401.97
represents Redevelopment Agency Expenditures
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR
STUDY SESSION
PUBLIC HEARING
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
ME
Fc£`y OF'CK09�
COUNCIL/RDA MEETING DATE: June 2, 2008
ITEM TITLE: Consideration of a Contract Amendment
with Altevers Associates for SilverRock Resort
Permanent Clubhouse Design Services
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve an amendment to the Professional Services Agreement with Altevers
Associates to provide additional architectural and sub -consultant services in an
amount not -to -exceed $76,537 and authorize the Executive Director to execute the
amendment.
FISCAL IMPLICATIONS:
The PSA amendment is included as Attachment 1; Exhibit "A" "Professional Scope
of Services and Compensation" identifies the respective fees.
The Phase II SilverRock Resort Improvements are included within the 2008- 2009
Capital Improvement Program. Project components include: Infrastructure,
Permanent Clubhouse, Second Golf Course, and Entry Feature/Roads. Each of the
above -listed components includes funding for "engineering' as follows:
Project Component
Fiscal Year 2008-09
En ineering Budget
Infrastructure
$1,989,000
Permanent Clubhouse
$1,404,000
Second Golf Course
$2,106,000
Entry Feature/Roads
$351,000
Total
$5,850,000
005
The Permanent Clubhouse component includes funding from the engineering and
construction as follows:
Task
Budget
Design (Engineering)
$1,404,000
CM/Testing/Inspections
$775,000
Construction
$18,674,000
Entry Feature/Roads
$4,559,010
Total
$25,412,010
The costs for the additional architectural and sub -consultant services (Items 1 and
2 of Exhibit A) will be charged to the "engineering" category of the "Permanent
Clubhouse" project components.
BACKGROUND AND OVERVIEW:
On April 17, 2007, the Agency Board approved a contract with Altevers
Associates, clubhouse architects, to provide Professional Services for the design of
the Phase II SilverRock Resort Permanent Clubhouse. At that time, the preliminary
clubhouse program was established; however, there had been no consideration by
the Agency Board to pursue certification through the U.S. Green Building Council's
LEED Program.
On October 2, 2007, the Agency Board approved a PSA with Nestor + Gaffney
Architects, to provide LEED consulting services for the clubhouse project.
As part of the Clubhouse Schematic Design presentation to the Agency Board on
January 15, 2008, an update on the LEED Certification Program and the efforts of
the RDA's Design Team to incorporate energy efficiency into the clubhouse design
was discussed.
Throughout the Design Development phase of work, the Design Team has
continued to incorporate additional features and energy efficient systems into the
clubhouse plans and specifications, under the direction of Nestor + Gaffney
Architects. As part of the Clubhouse Design Development presentation to the
Agency Board on May 21, 2008, an update on the LEED Certification Program was
presented along with the updated clubhouse plans. The current Design
Development Plans were reviewed by Nestor + Gaffney and the updated Pre -
Certification Estimates indicated the project might achieve a "Certified" or "Silver"
certification.
006
At the May 21, 2008 meeting, the Agency Board gave direction to staff to
continue the pursuit of LEED certification for the Clubhouse, based on the LEED
update presented by Nestor + Gaffney Architects.
At this time, Altevers Associates is requesting additional compensation to provide
the additional coordination and design services required to incorporate LEED
recommended design considerations into the clubhouse plans and specifications
($64,037)
Additionally, Altevers Associates will be providing electrical engineering sub
consulting services for the design of the clubhouse site and parking lot lighting
systems ($11,500). These services were originally included in RBF Consulting's
(project engineer) scope of services. However, the RDA's Technical Team, in
consultation with Altevers Associates and RBF Consulting, placed these services
under Altevers Associates' scope of services to ensure design consistency and
compatibility.
The services requested in this Amendment include architectural and sub -consultant
services related to the design of the "Permanent Clubhouse" including additional
LEED coordination and design services, and site electrical services. A detailed
summary of the additional work, task and fees is set forth in Amendment No. 1,
Altevers Associates Professional Services Agreement, Amendment, Exhibit "A",
Professional Scope of Services and Compensation.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve an amendment to the Professional Services Agreement with
Altevers Associates to provide additional architectural services in an amount
not -to -exceed $76,537 and authorize the Executive Director to execute the
amendment; or
2. Do not approve an amendment to the Professional Services Agreement with
Altevers Associates to provide additional architectural services in an amount
not -to -exceed $76,537; or
3. Provide staff with alternative direction.
- 00
Respectfully submitted,
Assistant City Manager -Development Services
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 : Professional Services Agreement, Amendment No. 1
ATTACHMENT
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PROJECT:
CONSULTANT:
PROFESSIONAL SERVICES AGREEMENT
AMENDMENT NO. 1
SilverRock Resort, Clubhouse Design Services
Altevers Associates
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Pursuant to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do
the following described work not included in the plans and specifications for this Contract. Unless otherwise stated all work
shall conform to the terms, general conditions, and special provisions of the original Contract.
DESCRIPTION OF CHANGE
Provide additional design and sub -consultant services for LEED enhancements; add site electrical engineering to
scope of services.
****x****x*k****k*x***k*******kkx**w*****x**********w****x*k************************k*************
Previous Contract Amount
$1,249,000
Amendment No. 1
$76,537
Revised Contract Total
$1,325,537
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Submitted By: Date:
Approved
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We, the undersigned Consultant, have given careful consideration to the changeproposed and hereby agree, if this proposal
is approved, that we will provide all equipment, furnish all materials, perform all labor, except as maybe noted above, and
perform all services necessary to complete the above specified work, and hereby accept as full payment the amount shown
above.
Accepted By: Title:
Consultant: Date:
PSA96041.dm — ' 009
AVENTINE, SUITE 250
8910 UNIVERSITY CENTER LANE
SAN DIEGO, CALIFORNIA 92122
TEL 858 535 9722
FAX 858 535 1181
E-MAIL architecture®akt lers.com
A L T E V E R S A S S O C I A T E S
ARCHITECTURE - PLANNING
March 10, 2008
Mr. Robert E. Jones, ASLA
Golf Dimensions
3 Park Plaza, Suite 1490
Irvine, CA 92614
RE: SllvLrRock Golf Clubhouse
Dear Rob:
In accordance with the Professional Services Agreement, Exhibit D - Hourly Based Services and
Additional Services. Below please find our request for the following Additional Services:
1. Architectural fees required to design and coordinate the LEEDS Certification requirements,
Architectural $18,750.00
MechanicaVPlumbing $23,500.00
Electrical $16, 750.00
Service Fee (1.15 x Consultant Fee) 037.00
Subtotal $65,037.00
2. Add site electrical to the Architectural/Consultant Scope of Services:
Electrical $10,000.00
Service Fee (1.15 x Consultant Fee) $1,500,00
Subtotal $11,500.00
GRAND TOTAL Additional Service 1 & 2 $76,537.00
Sincerely,
ALTEVERS ASSOCIATES
Robert J. Altevers, AIA
Managing Principal
RJA/Icb
Enclosures
cc: Lyla Aitevers
0 A
IlCliiylanl� n6 Sun & Carter
Consulting Mechanical Engineers
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Lerry Sun, P.E
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February 12,2008
Mr. Anthony Tarra
ALTEVERS ASSOCIATES
8910 University Center Lane, Suite 250
San Diego, California 92122
Subject: Additional Services Proposal
SilverRock Golf Clubhouse
LEED Coordination Services
Dear Anthony:
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The following additional services have been requested.
They constitute a change in scope and are hereby presented for your review.
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LEED Coordination Services:
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a. Water Use Reduction: 20% Reduction & 30% Reduction WE-3.1 & WE-3,2
Incl.
Incl.
Incl.
b. Minimum Energy Performance calculations EA-P2
Incl.
I Incl.
Incl.
c. Fundamental Refrigerant Management EA-P3
WA
Incl.
Incl.
d. Optimize Energy Performance EA-1
Incl.
Incl.
Incl.
e. Enhanced
Refrigerant Management(EA-4)
Ind.
Incl.
Incl.
f. Minimum
IAQ Performance EQ-P1
Ind.
Incl.
Incl.
g. Increased Ventilation EQ-2
Incl.
Ind.
Incl.
h. Indoor Chemical & Pollutant Source Control. Includes provision of MERV-13
Excl.
Excl.
Excl.
filters and exhaust for hazardous gas areas. EQ-5
I. Thermal Comfort: Design: (EQ-7.1).
Incl.
Incl.
Incl.
j. Meetings for LEED Coordination. (One meeting in San Diego, One meeting
N/A
NIA
N/A
in Santa Ana and Four conference calls.
The Additional Fee for this Scope Change: .... ......................... ............................................... $23,500.00
17911 Von Karmen Avenue • Suite 250 - Irvine • California 92614. 949.756.0565 - FAX 949.756.0927
'such iyI"rrtti Sun & Carter
Consulting Mechanical Engineers
Mr. Anthony Tarra
ALTEVERS ASSOCIATES
February 12, 2008
Page 2
If this description of the additional services requested and the related scope change design cost are
correct, please indicate your acceptance by signing below and return one copy for our files.
Sincerely,
TSUCHIYAMA KAINO SUN & CARTER
Roger Carter, P.E.
Principal
taa
Enclosure: One copy
iaaddserv%QAA071e6-1.doc
Accepted and Agreed:
ALTEVERS ASSOCIATES
Oil
k
February 20, 2008
Mr. Anthony Tarra
Altevers
The Aventine, Suite 250
8910 University Center Lane
San Diego, California 92122
Re: SilverRock Golf Club — New Clubhouse
Electrical Engineering Proposal
Dear Anthony,
Thank you for requesting this proposal to furnish electrical engineering services for the project referenced
above.
This proposal is in accordance with the program information received to date.
Please refer to the attached Exhibit A for the proposed compensation pertaining to this project.
Please refer to the attached Exhibit B for the proposed scope of services pertaining to this project.
We are looking forward to working with you on this project.
Please contact me if you have any questions and / or comments regarding this proposal.
Sincerely,
%ONSORTUM1
Raymond W. Swartz
Raymond W. Swartz, PE / LEED AP / IES
President
/rws
HAProposaa0802024 doe
Attachments
1714) SeS-4200 • 1714) 686.4215 fax • 1532 E Werner Avenue • Santa Ana, Ca 52705 • w Aanaortum1.oam
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SilverRock Golf Club — New Clubhouse
Electrical Engineering Proposal
February 20, 2008
Page 1
A.
C.
H
E.
EXHIBIT A
COMPENSATION
Compensation for the scope of services described in Exhibit B, shall be based upon the following
fixed fees:
LEED-NC Certification Scope of Work:
Sixteen Thousand Seven Hundred Fifty Dollars ($16,750.00)
If additional services are required, the following hourly rates shall apply:
Principal
$160.00
Associate
130.00
Engineer
120.00
Project Manager
110.00
Designer
90.00
Cad Drafting
70.00
Clerical
55.00
Reimbursable expenses are in addition to compensation and include the expense of reproductions,
plotting, express mailing, delivery charges, travel charges, and plan check fees. Billing for
allowed reimbursable expenses will be as follows:
Cost plus 10%.
Total liability for this project shall be limited to the following amount, and shall not include any
claims based upon the Owners loss of revenue.
One Hundred Thousand Dollars ($100,000.00).
This proposal is valid for a time period of sixty (60) days from date of proposal.
---- END---
014
j„ wf'gY
SilverRock Golf Club — New Clubhouse
Electrical Engineering Proposal
February 20, 2008
Page 1
A.
10
C.
EXHIBIT B
ELECTRICAL ENGINEERING SCOPE OF SERVICES
Proiect Description:
This scope of work is for the LEED Certification of the SilverRock Resort Golf facility new
Clubhouse. The Clubhouse is a two level structure with a 20,000 s.f. ground level and a 12,000
s.f basement level. The project is located in the La Quints area of Southern California.
The following LEED Credit points are included in this scope of work:
SS Credit 8
Light Pollution Reduction
EA Prereq 2
Minimum Energy Performance
EA Credit I
Optimize Energy Performance
EA Credit 2
On -Site Renewable Energy (36 kW PV system)
IEQ Credit 6.1
Controllability of Systems — Lighting
IEQ Credit 8.1
Daylight & Views — 75% of Spaces
ID Credit 1.2
Reduced Mercury Content
The following LEED exhibits and paperwork will be provided.,
Credit Exhibits / Models
SS Credit 8 Site Lighting Photometric Plan
EA Prereq 2 Title 24 Documentation
EA Credit I Enhanced Title 24 Documentation
EA Credit 2 PV Drawings / Specifications
IEQ Credit 6.1 Lighting Plan Exhibit
IEQ Credit 8.1 Daylight Model
ID Credit 1.2 Mercury Content / Lumen Hour Matrix
Design Development Services
Paperwork
LEED Online Paperwork, Enhanced
Title 24 Documentation, and Lumen
Distribution Matrix Summary
N/A
N/A
LEED Online Paperwork and kWH
Calculations.
LEED Online Paperwork
LEED Online Paperwork
LEED Online Paperwork
1. Meet with the design team, as necessary, to discuss LEED concepts and alternatives for
the project.
2. Incorporate selected LEED Credit points into the design development electrical plans on
base sheets as provided by the Architect.
Construction Document Services:
Meet with the design team to discuss LEED concepts and alternatives for the project.
2. Incorporate LEED Credit points into the electrical construction documents.
SilverRock Golf Club — New Clubhouse
Electrical Engineering Proposal
February 20, 2008
Page 2
D. Construction Administration Services
1. Interpret the electrical construction documents during the bidding phase and assist the
architect in the preparation of addenda responding to these interpretations.
2. Interpret the electrical construction documents for proper execution of electrical work
during construction. Office consultations with the owner, architect or contractor as
required during construction are included.
3. Review shop drawings and submittals as required by the construction documents.
4. Perform the following site visit:
a. One rough -in observation.
b. One final punch list observation.
5. Prepare site visit reports for the Architect.
6. Review of the contractor's electrical record drawings.
7. Provide LEED Online support of all applicable credit points.
E. Additional Services Not Included in the Scope of Warlc
1. Extensive revisions to plans and specifications after substantial completion of design.
2. Temporary power design / documentation.
3. Structural calculations or details for poles, foundations, supports, etc.
4. Cost estimates.
5. Value engineering services.
6. Submittal of documents to governmental agencies. Preparation of document package for
review by government agencies.
7. Any LEED commissioning services.
----END---
0 i6
COUNCIL/RDA MEETING DATE: June 2, 2008
ITEM TITLE: Discussion of SllverRock Resort
Clubhouse Financing and Operations Program
RECOMMENDATION:
As deemed appropriate by the Agency Board.
FISCAL IMPLICATIONS:
AGENDA CATEGORY:
[UMIR►T*T&1 *111610
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
The 2008/2009 SilverRock Resort Annual Plan, approved by the City Council on
April 15, 2008, estimates an operating deficit of $342,426. The first year
projection for the new Clubhouse operations (including estimated golf operations)
estimates an operating deficit of $499,961. The second year projection estimates
an operating deficit of $310,638 (Attachment 1). The larger deficit for the first
year of new clubhouse operations is due to the larger facility and increased staffing
without the immediate increase in banquet and restaurant revenues.
BACKGROUND AND OVERVIEW:
Staff and Landmark Golf Management have worked together to develop a two year
operations projection for the new clubhouse as currently designed by Altevers
Associates. Landmark has experience in large clubhouse operations at PGA West
and the Landmark Club (now Terra Lago). Staff worked closely with Landmark to
develop the operations projection which was then reviewed by the General Manager
at Desert Willow Resort.
The Clubhouse Projection Assumptions (Attachment 2) include:
Revenue
Food & Beverage Revenue. For the first year, banquet sales will not be at full
capacity due to the timing of selling weddings, parties, and special events. Lead
time to sell banquets is between 6 and 12 months; therefore, banquet sales will be
lower in the first year of operations. For projected revenue in the restaurant,
terrace, snack bar, and beverage carts, a capture ratio of $20.36 per round of golf
�l�
was used. This assumption is based upon Landmark's knowledge of other similar
18-hole resort golf courses. For the second year of new clubhouse operations and
projected banquet revenue, an assumption of two banquet events per week for the
entire year (104 total banquets) with an average size of 125 people
per banquet and an average of $45 per person was used. This equals $5,625 per
banquet event (a total of $585,000 in banquet revenue for year two).
Food & Beverage Gross Revenue. Gross revenue is calculated by taking the Food &
Beverage Revenue (restaurant and banquet) less the standard Cost of Sales of
39%.
Golf Rounds & Revenue. It is assumed that rounds of golf will increase 1 % by
2009-2010. It is also assumed that the average green fee rate will increase from
$79.12 to $79.86. Based on these two assumptions, green fee revenue will
increase nearly 2% to $3,315,435 by 2009-2010.
Miscellaneous Revenue/Range. It is assumed that miscellaneous revenue, including
driving range revenue, will increase to $118,217 annually. This increase will be a
result of the driving range's proximity to the Clubhouse.
Golf Shop Merchandise. It is assumed that merchandise sales will increase to
$14.39 per round of golf. The increase will be due to the size of the golf shop and
the ability to have additional product selection in inventory.
Expenses
Food & Beverage Expenses. Food & Beverage expenses consist of staffing (salaries
and benefits), supplies and materials (no actual food or beverage costs). The
staffing model is based upon operating a full-size kitchen, grill, snack bar, beverage
carts, and banquets. Additional banquet staff may be contracted as needed during
concurrent banquet events.
Clubhouse Expenses. Clubhouse expenses consist of the increased size of the
Clubhouse. It is assumed that all utilities expenses (electricity, telephone, cable,
water, sewer, and gas) will increase proportionally with the size of the Clubhouse.
In addition, insurance costs will increase to cover the increased size of the
Clubhouse.
Golf Cars/Bags/Range Expenses. Will increase due to Clubhouse logistics.
Additional staff will be needed to cover the bag drop and staging area while other
staff members will be in the cart storage area tending to other golf service duties.
Golf Shop Merchandise Expenses. Will increase due to additional sales staff needed
to cover and maintain the increased inventory and size of the golf shop.
Golf Course Maintenance Expenses. The existing parking lot and Clubhouse area at
the Ahmanson Clubhouse will need to be maintained as well as the new Clubhouse
• I OA
area, which will be somewhat larger. Also, the new water feature located at the
Clubhouse will need to be maintained which will require additional manpower and
supplies.
Marketing Expenses. It is assumed that a Sales Manager will be added. The Sales
Manager will be responsible for selling banquets, special events, and golf events
and will also be part of the coordination and planning process. Additional
advertising money will be necessary to promote and sell banquet events at the
Clubhouse.
General and Administration Expenses. It is assumed that a Concierge will be
added. The Concierge will welcome, greet, answer telephone calls, and direct
guests. In addition, general and administration expenses (recruiting, payroll
processing, equipment rental, office supplies, computer supplies, and uniforms) will
increase due to increased staff and larger Clubhouse.
Clubhouse Financing
Staff has been operating under a 'pay as you go method using previous bond
issue proceeds and tax increment to fund the Phase 2 SilverRock Resort
improvements, which include the permanent Clubhouse. At the May 21, 2008
Agency Board meeting, the Agency Board expressed its support for an additional
$6 million (plus contingency) in improvements and enhancements to the permanent
clubhouse, and requested staff investigate the cash flow implications. Staff has
reviewed the cash flow impacts arising from this meeting and believes that by
shifting the construction of the second golf course from Fiscal Year 2009/2010 to
Fiscal Year 2010/201 1, these improvements may be funded on a "pay as you go"
basis. Market conditions do not support moving forward with the second golf
course in Fiscal Year 2009-10.
Estimated cost for Phase 2 Infrastructure is $25,358,941, and the clubhouse is
estimated at $30,103,961. The anticipated completion date for the clubhouse is
March/April 2010.
It is important to note that staff's projections are based upon current economic
conditions. Events may occur in the future that could require staff to recommend
modifications to this 'pay as you go' strategy. The potential events may include
State take-aways, or decreasing property tax values. If these were to occur, staff
would first evaluate the materiality of the impacts and offer alternative solutions.
These solutions would include first recommending to the Agency Board
implementing General Fund Advances or, as a last resort, issuing tax increment
financing.
Life Cycle Analysis
At the May 21, 2008 Agency Board meeting, the Agency Board requested a life
cycle analysis of the proposed solar panels and pavers. Staff is currently working
on this analysis and will report back to the Agency Board in the near future.
Respectfully submitted,
nwi L�
Douglas R. Evans
Assistant City Manager — Development Services
Edie Hylton
Community Services Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. New Clubhouse Projections vs. Annual Plan
2. Clubhouse Projection Assumptions
020
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021
ATTACHMENT 2
4/28/2008
Clubhouse Projection Assumptions
REVENUE
Food and Beverage Revenue
• For the first year, Banquet sales will not be at full capacity due to the timing of selling weddings,
parties and special events. Lead time to sell banquets are between 6 and 12 months, therefore
banquet sales will be lower in the first year of operations.
• For projected revenue in the Restaurant, Terrace, Snack Bar and Beverage Carts, we used a
capture ratio of $20.36 per round of golf. This assumption is based upon Landmark's knowledge of
other similar 18 hole resort golf courses.
• For the 2" year of Operations in the new clubhouse and projected Banquet Revenue; we used an
assumption of 2 banquet events per week for the entire year (104 total banquets) with an average
size of 125 people per banquet and averaging $45 per person. This equates to $5,625 per banquet
event.
Food and Beverage Gross Profit '
• Gross profit is calculated by taking the Foodand Beverage Revenue (Restaurant and Banquet)
less the standard Cost of Sales of,39%.
Golf Rounds and Revenue
• It is assumed that rounds of golf will increase 1,% by 2009-2010. It is also assumed that the
average green fee rate will increase from $79.12 to $79.86. Based on these two assumptions,
green fee revenue will increase nearly 2% to $3,315,435 by 2009-2010.
Misc. Rev./Rance
• It is assumed that misc. revenue including driving range revenue will increase to $118,217
annually. This increase will be a result of the driving range's proximity to the Clubhouse.
Golf Shoo Merchandise
• It is assumed merchandise sales will increase to $1,4.39 per round of golf. The increase will be due
to the size of the golf shop and the ability to have,2dditional selection of product in inventory.
EXPENSES
Food and Beverage Expenses
• Food and Beverage expenses consist of staffing (salaries and benefits), supplies and materials (no
actual food or beverage costs). The staging model is based upon operating a full size kitchen, grill,
snack bar, beverage carts and banquets. Additional banquet staff may be contracted as needed
during concurrent banquet events
Clubhouse Expenses
• Clubhouse expenses consist of the increased size of1hp Clubhouse. It is assumed that all utilities
expenses (Electricity, Telephone, Cable, Water, Sewer, Gas) will increase proportionally with the
size of the Clubhouse. 'in addir6n,lnsuranoe cost will ,increase.fo cover the increasecj,$ize of the
Clubhouse. .
Golf Carts/Baas/Ranae Expenses -
• Will increase due to Clubhouse logistics. Additional staff will be needed to cover the bag drop and
staging area while other staff members will be in the cart storage area tending to other golf service
duties.
Golf Shoo Merchandise Exoenses , ... f
• Will increase due to additional sales staff needed to cover and maintain the increased inventory
and size of the golf shop.
Golf Course Maintenance Expenses
• The existing parking lot and Clubhouse area at the Ahmanson Ctubhouse will need to be
maintained as well as the new Clubhouse area which will be somewhat farger then 18 hole usually
requires while waiting on the second 18 holes. Also, the new water feature located at the
Clubhouse will need to be maintained which will require additional manpower and supplies.
Marketina Expenses
• It is assumed that a Sales Manager will be added. The Sales Manager will be responsible for
selling banquets, special events and golf events and will also be part of the coordination and
planning process.
• Additional advertising money will be necessary to promote and sell banquet events at SilverRock
Resort's Clubhouse.
General and Administration Expenses
• It is assumed that a Concierge will be added. The Concierge will welcome, greet, answer telephone
calls and direct guests. In addition, G & A expenses (recruiting, payroll processing, equipment
rental, office supplies, computer supplies, uniforms) will increase due to an increased staff and
larger Clubhouse. ,- . 0 ` 2