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2009 01 20 RDA64440dja Redevelopment Agency agendas are available on the City' web page (rot www.la-quinta.oro REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, JANUARY 20, 2009 3:00 P.M. Closed Session / 4:00 P.M. Open Session Beginning Resolution No. RA 2009-001 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Franklin, Henderson, 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 TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTIES IDENTIFIED AS APNs: 773- 370-028 AND -029 (SILVERHAWK APARTMENTS ON EISENHOWER DRIVE). PROPERTY OWNER/NEGOTIATOR: G COMPANIES, JAMES C. GIANULIAS. Redevelopment Agency Agenda 1 January 20, 2009 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 DECEMBER 16, 2008. CONSENT CALENDAR NOTE: Consent Calenda► items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTERS DATED JANUARY 6 AND 20, 2009. 2. RECEIVE AND FILE TREASURERS REPORT DATED NOVEMBER 30, 2008. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT FOR NOVEMBER 30, 2008, AND INVESTMENT SUMMARY REPORT FOR QUARTER ENDING DECEMBER 31, 2008. BUSINESS SESSION 1. CONSIDERATION OF REDEVELOPMENT AGENCY REORGANIZATION. A. MINUTE ORDER ACTION Redevelopment Agency Agenda 2 January 20, 2009 2. CONSIDERATION OF SILVERROCK RESORT CLUBHOUSE CONSTRUCTION DOCUMENT PLANS, FINAL LANDSCAPE PLAN, LEED CERTIFICATION UPDATE, BUDGET UPDATE, CLUBHOUSE OPERATIONS UPDATE, AND PHASE II INFRASTRUCTURE. A. MINUTE ORDER ACTION STUDY SESSION — NONE CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — NONE ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on February 3, 2009, 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 meeting of January 20, 2009, 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 1 1 1, on January 20, 2009. DATED: anuary 20 VERONICA J. NT 2009 NO, City Clerk City of La Qu'a, California Public Notice Any writings or documents provided to a majority of the Redevelopment Agency regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. Redevelopment Agency Agenda 3 January 20, 2009 r' J U rY M OF T1 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: January 6, 2009 BUSINESS SESSION ITEM TITLE: Demand Register Dated CONSENT CALENDAR / January 6, 2009 STUDY SESSION PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated January 6, 2009 of which $1,526,163.05 represents Redevelopment Agency Expenditures PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA �a�uwr]`q,r V S M OF� AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: January 20, 2009 BUSINESS SESSION ITEM TITLE: Demand Register Dated CONSENT CALENDAR January 20, 2009 STUDY SESSION PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated January 20, 2009 of which $150,009.78 represents Redevelopment Agency Expenditures PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA CeitY 4 664P QUM& COUNCIL/RDA MEETING DATE: January 20, 2009 ITEM TITLE: Transmittal of Treasurer's Report as of November 30, 2008 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File. AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: o_ STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA I.' 6 #VtV7e OF ' COUNCIL/RDA MEETING DATE: January 20, 2009 AGENDA CATEGORY: ITEM TITLE: Transmittal Of Revenue and Expenditure BUSINESS SESSION: Report for November 30, 2008 and Investment CONSENT CALENDAR: 3 Summary Report for the Quarter Ending December 31, 2008 STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Transmittal of the November 30, 2008 Statement of Revenue and Expenditures and Investment Summary Report for the Quarter Ending December 31, 2008 for the La Quinta Redevelopment Agency. Respectfully submitted, John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Revenue and Expenditures Report, November 30, 2008 2. Investment Summary Report for the Quarter Ending December 31, 2008 2 LA OUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.1: ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LORP-Rem Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Rehabilitation Loan Repayments 2nd Trust Dead Repayment Transfer In TOTAL LOW/MOD TAX DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest - Courtly Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE 11,501,200.00 23,52381 11,477,67619 0.200% 53,000.00 6,87182 46.128,18 12.970% 000 648.69 (64869) 0.000% 0.00 000 0.00 0000% 0.00 000 0.00 0.000% 225,000 GO 103,359 DO 121,641 00 45 940% 150,000.00 ODD 150,00000 0.000% 0.00 000 000 O.D00% 000 603.34 (603 34) 0.000% 000 000 000 0000% 000 92,500 00 (92,500 00) 0.000% 0.00 000 0.00 0 000 % 11,929,200.D0 227,50666 11,701,69334 1910% 46,004,900 GO 94,09521 45,910,80479 0200% 173.600.00 40,46744 133,13256 23310% 000 000 000 0000% 0.00 000 000 0000% 000 000 000 0000% 444447900 2951,54156 1,492,93744 66410% 50,622,979.00 3.086.10421 47,536,87479 6100% CAPITAL IMPROVEMENT FUND - NON-TAXABLE Pooled Cash Allocated Interest 000 87,48559 (87,485,59) 0000% Non Allocated Interest 300.000 DO 144,384.40 155,615.60 48130% Developer Agreement Funding 0DO 0OD 0.00 0000% Sale of Land Proceeds 3,894,600.00 0 DD 3,894,600 00 0000% Rental Income 000 000 000 0 000 % Transfers In 15,000,000 00 000 15,000,000 00 0 000 % TOTAL CAPITAL IMPROVEMENT 19,194,60000 231,869.99 18,962,73001 1.210% E 9 3 LA OUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 1: 07/01/2008 - 11/30/2008 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET LOW/MODERATE TAX FUND: PERSONNEL 1,10000 000 000 1.100.00 SERVICES 328,36900 64,80298 000 263,56602 BUILDING HORIZONS 0.00 0.00 000 0.00 LO RENTAL PROGRAM 275,000 00 69,534.24 0.00 205,465.76 BUILDING HORIZONS 250,000.00 000 0.00 250,00000 LAND ACQUISITION 4,371,453 DO 4,130,708.50 0.00 240,74450 LOW MOD HOUSING PROJECTS 0.00 0.00 0.00 0.00 FORECLOSURE 150.00000 189,411.73 000 (39,411.73) REIMBURSEMENT TO GEN FUND 706,27100 294,280.45 000 411,990.55 TRANSFERS OUT 4444,47900 295114156 0.00 1,492,937.44 TOTAL LOWIMOD TAX DEBT SERVICE FUND: SERVICES 403,200.00 8,770.00 000 394,43000 BOND PRINCIPAL 2,960.00000 2,960,000.00 000 0.00 BONDINTEREST 7,330,189.00 3,709,245.13 0.00 3,620,94387 INTEREST CITY ADVANCE 1,020,000.00 425,000.00 000 595,000.00 PASS THROUGH PAYMENTS 25,404,68000 682,517.05 000 24.722.162.95 ERAF SHIFT 000 0.00 000 000 TRANSFERS OUT 18 966 396 00 2 533 690 85 0.00 16 432 705 15 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: PERSONNEL 1,10000 000 000 1,10000 SERVICES 935,21500 98,62562 000 836,58938 LAND ACQUISITION 000 000 000 000 ASSESSMENT DISTRICT 0.00 0.00 0.00 000 ADVERTISING -ECONOMIC DEV 000 0.00 000 0.00 ECONOMIC DEVELOPMENT 000 0.00 000 0.00 BOND ISSUANCE COSTS 000 000 000 0.00 CAPITAL - BUILDING 9,000.00 000 000 9,00000 REIMBURSEMENT TO GEN FUND 294,883.00 122,868.35 000 172.014 65 TRANSFERS OUT 59,521,815.00 483, 317.26 58038497.74 TOTAL CAPITAL IMPROVEMENT 1:7U4317.26000 LA OUINTA REDEVELC REVENUE SUMMARY PROJECT AREA NO.2: ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Nan Allocated Interest Developerfunding Vista Dunes MHP Rental Rev 2nd Trust Deed Repayment ERAF Shift- Interest Sale of Land Mnaflcres Note Repayment Transfer In TOTAL LOWIMOD TAX 2004 LOWIMODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOWIMOD BOND DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transferin TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Developer Agreement Transfers In TOTAL CAPITAL IMPROVEMENT 5,872.70000 9,18283 5,863.51717 0.160% 380,50000 34,590.98 345.90902 9.090% 0.00 000 0.00 0 000 % 000 0.00 000 0 000 % 0.00 000 000 0000% 000 40,458 25 (40,458 25) 0.000% 0.00 0.00 000 0.000 0.00 000 0JI0 0.000% 0.00 000 000 0,000 % 000 0.00 000 0 000 % 6,253,20000 84,23206 6,168,96794 1350% 0 Do 0.00 000 0.000% 0.00 0.00 000 0.000% 102,00000 147,03368 (45.03368) 144150% 0.00 000 000 0 000 % 102,000 00 147,033 68 (45,033 68) 144 150 % 23,490,800.00 36,731.35 23.454,06865 0A60% 0.00 41,03578 (41,035.76) 0.000% 000 0.00 000 0,000 % 000 000 000 0000% 1,953,598 00 1,247,937 28 705,66072 63,880% 25,444.39800 1,325,70441 24,118,69359 5210% a4,00000 10,229.79 73.77021 12180% 0.00 000 0.00 0 000% 000 000 0.00 0.000% 000 0.00 000 0000% 84,00000 10,229.79 73,77021 12180% LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 2: LOWIMODERATE TAX FUND: 07/01/2008 - 1 V30I2008 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET PERSONNEL 700.00 000 0OD 700 DO SERVICES 512,82800 128,71150 0DO 384,116.50 2ND TRUST DEEDS 000 0.00 0.00 000 LOW MOD HOUSING PROJECTS 0.00 000 000 000 FORECLOSURE ACQUISITION 100,000.00 000 000 100,00000 VISTA DUNES PARK 50,00000 000 0.D0 50,000.00 LAND ACQUISITION 0.00 5,03600 000 (5,038.00) REIMBURSEMENT TO GEN FUND 360,60400 150,25205 0.00 210,351.95 TRANSFERS OUT 4,468,71400 48583457 0.00 3982,879.49 TOTAL LOWIMOD TAX94 2004 LOW/MODERATE BOND FUND HOUSING PROGRAMS 3,052,800.00 1,581,00000 0DO 1,471,80000 LAND 0.00 000 000 000 TRANSFERS OUT 12 390,202 00 9 509 959 50 0.00 2 880 242.50 TOTAL LUW/MOO BONG DEBT SERVICE FUND: SERVICES 209,30000 3,275.00 000 206,02500 BOND PRINCIPAL 115.00000 115,000.00 000 0.00 BONDINTEREST 305,184.00 153,87L25 000 151.31275 INTEREST CITY ADVANCE 1,656.52800 854,35191 000 802,17609 PASS THROUGH PAYMENTS 19,248,787.00 15,16334 000 19,233,62366 TRANSFERS OUT 1,953,59800 1,247,937.28 000 705,66072 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: PERSONNEL 70000 0.00 0.00 700.00 SERVICES 286,413.00 60,81456 000 225,59844 CAPITAL 000 000 000 0.00 ECONOMIC DEVELOPMENT ACTIVITY 000 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 60,741.00 25,309.15 000 35.431 85 TRANSFERS OUT 74,896.00 4,495.83 000 7040017 TOTAL CAPITAL IMPROVEMENT C \ )ciCi 4 33 # ] <» 3 0 f, )� //))}))}))}})) ; r ;l7fff$}f7f7lf 0000 \ \ k j \ \/) -6 E { {/!\ }\ \VJ FEa§= §f | :§22 { m { tf ©:( ± }]/ t 3()f ,3= — - j§!® rC) {a■\ / )/ «J Q E- _ \§) �)k - c k - { !� am \\ <2321 C}3 7 COUNCIL/RDA MEETING DATE: January 20, 2009 ITEM TITLE: Consideration of Redevelopment Agency Reorganization RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: / CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Select a Chairperson and Vice -Chairperson of the La Quinta Redevelopment Agency for the Calendar Year 2009. FISCAL IMPLICATIONS: Iron" None. BACKGROUND AND OVERVIEW: On January 19, 1999, the Redevelopment Agency adopted Resolution No. RA 99-01, amending the Agency by-laws to establish the procedure for electing the Chair and Vice -Chair. Section 2.02 and Section 2.03 of the Redevelopment Agency by-laws state that the Agency Board shall annually, at its first meeting held after December 30`h or as soon thereafter as possible, vote to elect one of its number as Chair and elect one as Vice - Chair. The Mayor shall specifically be excluded from being eligible to serve as Chair and Vice -Chair of the Agency. i� The Chair shall preside at all meetings of the Agency, except as otherwise authorized by resolution of the Agency or the provisions of these by-laws, the Chair shall have the authority to sign on behalf of the Agency, all contracts, deeds, and other instruments made by the Agency. The Vice -Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Select a Chairperson and Vice -Chairperson of the La Quinta Redevelopment Agency for the Calendar Year 2009; or 2. Provide staff with alternative direction. Respectful) submitted, Veronica J,.;,Montecino, CIVIC City Clerk' Approved for submission by: Thomas P. Genovese, Executive Director Attachment : 1. Redevelopment Agency By -Laws Attachment 1 AMENDED AND RESTATED BYLAWS OF THE LA QUINTA REDEVELOPMENT AGENCY ARTICLE I - THE AGENCY Section 1.01. - Name of Agency. The official name of the Agency shall be the "La Quinta Redevelopment Agency." Section 1.02. - Seal of Agency. The seal of the Agency shall be in the form of a circle and shall bear the name of the Agency and the year of its organization. Section 1.03. - Office of Agency and Place of Meeting. The office of the Agency shall be at City Hall, 78-495 Calle Tampico, La Quinta, California, but the Agency may hold its meeting at any place in the City of La Quinta, California, which the Agency may from time to time designate by resolution. Section 1.04. - Powers. The powers of the Agency shall be vested in the members thereof then in office, who reserve unto themselves the right to delegate by resolution such powers as are appropriate and permissible by law. Seaton 1.05. - Members. The members of the Agency shall be the members of the City Council of the City of La Quinta. ARTICLE If - OFFICERS AND EX OFFICIO POSITIONS Section 2.01. - Officers. The officers of the Agency shall be a Chair and a Vice Chair. Ex officio positions acting as its staff shall be an Executive Director, Secretary to the Board and Treasurer. Section 2.02. - Chair. Unless otherwise provided by law, ordinance, or resolution of the Agency, the Agency Board shall annually at its first meeting held after December 30th, or as soon thereafter as possible, vote to elect one of its number as Chair. The Mayor shall specifically be excluded from being eligible to serve as chair of the Agency. The Chair shall preside at all meetings of the Agency. Except as otherwise authorized by resolution of the Agency or the provisions of these Bylaws, the Chair shall have the authority to sign on behalf of the Agency, all contracts, deeds and other instruments made by the Agency. Section 2.03. - Vice Chair. Unless otherwise provided by law, ordinance, or resolution of the Agency, the Agency Board shall annually at its first meeting held after December 30th, or as soon thereafter as possible, vote to elect one of its number as Vice Chair. The Mayor shall specifically be excluded from being eligible to serve as Vice Chair of the Agency. The Vice Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. Section 2.04. - Executive Director. The Executive Director shall be the City Manager of the City of La Quinta. The Executive Director shall have general supervision over the administration of Agency business and affairs, subject to the direction of the Agency. The Executive Director shall have the authority to sign on behalf of the Agency all contracts, deeds, and other instruments made by the Agency. Section 2.05. - Secretary to the Board. The Secretary to the Board shall be the City Clerk of the City of La Quinta. The Secretary to the Board shall keep the records of the Agency, act as secretary at meetings of the Agency, record all votes and keep a record of the proceedings of the Agency in a journal of proceedings to be kept for such purpose, and perform all duties incident to the Secretary to the Board's office. The Secretary to the Board shall maintain a record of all official proceedings of the La Quinta Redevelopment Agency and the redevelopment program. Section 2.06. - Treasurer. The Treasurer shall be Treasurer of the City of La Quinta. The Treasurer of the City of La Quinta is the Finance Director. The Treasurer shall have the care and custody of all funds of the Agency and shall deposit same in the name of the Agency in such bank or banks as the Agency may select. The Treasurer shall sign all orders and checks for the payment of money and shall pay out and disburse such monies under the direction of the Agency. The Treasurer shall keep regular books of account, showing receipts and expenditures, and shall render to the Agency at each regular meeting, or more often when requested, an account of transactions and the financial conditions of the Agency. The Treasurer shall give such bond for faithful performance of the Treasurer's duties as the Agency may determine. Section 2.07. - Special Counsel. The Agency may appoint Special Counsel to give advice to the Agency and to provide a variety of services, including without limit. the preparation of all proposed resolutions, laws, rules, contracts, bonds and other legal papers for the Agency. The Special Counsel for the Agency is the City Attorney, The Special Counsel may give advice or opinions in writing to the Chair or other Agency officers whenever requested to do so. The Special Counsel may attend to all suits and other matters to which the Agency. is a part or in which the Agency may be legally interested and do such other things pertaining to the Special Counsel's office as the Agency may request. Such Special Counsel shall serve at the pleasure of the Agency. Amended: 9/19/2000 page 2 Section 2.08. - Compensation. The members of the Agency shall receive such compensation as the City Council prescribes, but said compensation shall not exceed that amount as set forth in Section 33114.5 of the Health & Safety Code as such Section may from time to time be amended. Section 2.09. - Additional Duties. The officers and ex officio positions of the Agency shall perform such other duties and functions as may from time to time be required by the Agency or the Bylaws or rules and regulations of the Agency. Section 2.10. - Absences. In the temporary absence of both the Chair and the Vice Chair, the most senior Board Member shall serve as Presiding Officer. In the event that there are two Board Members with equal seniority, then the Member who received the highest number of votes in the General Municipal Election shall serve as Presiding Officer. Section 2.11. - Additional Personnel. The Agency may from time to time appoint or employ such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by the California Community Redevelopment Law and all other laws of the State of California applicable thereto. Additional personnel may include, but is not limited to, contract consultants, attorneys, special counsel and project implementation contractors as conditions warrant. The selection, duties and compensation of such personnel shall determined by the Agency, subject to the laws of the State of California. ARTICLE II - MEETINGS Section 3.01. - Regular Meetings. The regular meetings of the Agency shall be held on the first and third Tuesday of each month at the time designed in La Quinta City Council Resolution No. 2006-102, as it currently exists or as it is amended in the future, in the Chambers of the City Council, 78-495 Celle Tampico, La Quinta, California. In the event such date shall fall on a legal holiday, the regular meeting shall be held on the next succeeding business day. Section 3.02. - Special Meetings. The Chair of the Agency may, when it is deemed expedient, and shall, upon the written request of two (2) members of the Agency, call a special meeting of the Agency for the purpose of transacting the business designated in the call. The means and method for calling such special meeting shall be as set forth in the Ralph M. Brown Act, California Government Code Sections 54950, at seq., as it now exists or may hereafter be amended. At such special meeting, no business shall be considered other than as designated in the call. Section 3.03. - Quorum. Three (3) members of the Agency shall constitute a quorum fro the purpose of conducting Agency business, exercising Agency powers and for all other purposes, but a smaller number may adjourn from time to time (.1J 8 Amended: 9/19/2006 Page 3 until the quorum is obtained. Every official act of the Agency shall be adopted by a majority vote. A "majority vote" shall mean a majority of all members present when a quorum is present. Section 3.04. - Order of Business. At the regular meetings of the Agency, the following shall be the order of business: (1) Roll Call; (2) Public Comment; (3) Closed Session; (4) Public Comment; (S) Confirmation of Agenda; (6) Approval of Minutes; (7) Consent Calendar; (8) Business Session; (9) Study Session; (10) Department Reports; (11) Chair and Board Members' Items; (12) Public Hearings; (13) Adjournment. All resolutions shall be in wilting and designated by number, reference to which shall be inscribed in the minutes and an approved copy of each resolution filed in the official book of resolutions of the Agency. . Section 3.05. - Manner of Voting. The voting on formal resolutions, matters to any federal, state, countyor city agency, and on such other matters as may be requested by a majority of the Agency members, shall be by electronic voting, and the ayes, noes and members present not voting shall be entered upon the minutes of such meeting, except on the election of officers, which may be by ballot. Section 3.06. - Parliamentary Procedure. Unless a different procedure is established by resolution of the Agency or set forth in these Bylaws, the rules of Parliamentary procedure as set forth in Robert's Rules of Order Revised shall govern all meetings, of the Agency. The Agency adopts the Rules of Procedure adopted by the City Council of the City of La Quinta as its rules of procedure. To the extent of conflict between these bylaws and the Rules of Procedure adopted by the City Council, the Rules of Procedure shall govern. ARTICLE IV - PUBLIC NOTICE Section 4.01. - Public Notice. The Desert Sun, with offices located at 750 North Gene Autry Trail, Palm Springs, California 92262, is hereby designated as the Agency's official newspaper for all legally required public notices. Amended: 9/19/2006 Page 4 ARTICLE V - AMENDMENTS Section 5.01. - Amendments to Bylaws. The Bylaws of the Agency may be amended by resolution by the Agency at any regular or special meeting by majority vote. ARTICLE VI - CONFLICTS Section 6.01.. - Conflicts. Conflicts shall be determined and governed by a Conflict of Interest Code adopted by the Agency and approved by the City Council. (12C Amended: 9/19/2005 Page 5 o� �a/'V1 �o �yiQ • � ��W c COUNCIL/RDA MEETING DATE: January 20, 2009 ITEM TITLE: Consideration of SllverRock Resort Clubhouse Construction Document Plans, Final Landscape Plan, LEED Certification Update, Budget Update, Clubhouse Operations Update, and Phase II Infrastructure RECOMMENDATION: AGENDA CATEGORY: ee�� BUSINESS SESSION: d- CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: 1. Direct staff to proceed with final plans for infrastructure including streets, water, sewer, and other utilities. (Final plans need to be coordinated with the Coachella Valley Water District (CVWD) with regards to any necessary modifications to the Coachella Canal. Construction is anticipated to commence in 2009 and be completed in approximately one year.) 2. Defer construction of the clubhouse due to overall economic conditions, State takeaway of $4.85 million in redevelopment funds, and allow project infrastructure to be completed. (Clubhouse plans are nearly complete and will be completed to permit/bid-ready so the Redevelopment Agency (RDA) can proceed with construction as economic conditions warrant.) 3. Approve the final clubhouse landscape plan, decorative tile designs, and other project details. 4. Consider and provide additional direction regarding the overall project schedule, Financial Analysis Report, and other project details. OVERVIEW The purpose of this project update is to provide the Agency Board the opportunity to review, evaluate, and provide direction regarding the Clubhouse and Phase II infrastructure. At its last meeting, the RDA discussed constructing the clubhouse in 2009 and opening it in February or March 2010. This schedule included U21 constructing the Phase II infrastructure (roads, bridges, sewer, water, and associated improvements). Staff has been actively working with CVWD regarding possible modifications of the Coachella Canal ("Canal"). Potential changes to the canal would affect project infrastructure and the project budget. Based upon this condition, the infrastructure plans have not been completed and the project schedule has been delayed. CVWD is preparing a study of alternatives to the current canal. This study is underway and until it is completed, plans, schedule, and budgets cannot be finalized. The clubhouse plans are in second plan check and are nearing completion. The final site and landscape plans have not been approved by the Agency Board. In addition to review and approval of site plans, the Agency Board will be briefed on architectural details, environmental design factors, and other items. At its August 5, 2008 meeting, the Agency Board discussed timing of clubhouse construction and directed staff to work with Landmark Golf Management (golf course operator) to prepare a Fiscal Analysis Report for the operations of the golf course and clubhouse. This report evaluates the operation costs of the clubhouse with 18, and then 36 holes of golf. In addition, the Board discussed several design issues as follows: use of non- potable/grey water; concrete finish and color; use and number of date palms; golf cart staging area arch vs. proposed trellis; and possible use of artificial turf. Each of these items will be addressed later in this report. FISCAL IMPLICATIONS: The Phase II SilverRock Resort improvements are included within the adopted 2008-2009 Capital Improvement Program. Project components include: Infrastructure, Permanent Clubhouse, Second Golf Course, and Entry Feature (s)/Roads. The total CIP budget for the clubhouse is $25,412,010. When the Agency Board last reviewed the clubhouse design development program budget on May 21, 2008, the estimate of project costs showed the building, site improvements and soft costs to be approximately $30,103,961 plus contingency. Based on the current construction document plans being presented to the Agency Board, the updated estimate of projected costs shows the building, site improvements and soft costs to be approximately $30,545,236 plus contingency. The current revised estimate of project costs for the building and the various site improvements were prepared by Altevers Associates and their estimating consultant Roel Construction, Golf Dimensions and the RDA's Design Team of HSA Design Group, RBF Consulting, Aquatic Design Group, Jacobsen/Hardy Golf Course Design and Harvey Mills Design. The revised budget includes the following primary project components: Building: Site: ■ Building $ 14,283,781 ■ Furniture Fixtures & Equipment $ 2,027,144 ■ Furnishings — Owner Provided $ 682,500 ■ Permits & Fees $ 401,466 ■ Emergency Generator $ 200,000 ■ On/Off-Site Improvements $ 5,387,724 ■ Grading/Earthwork $ 700,000 ■ Lake $ 307,615 ■ Entry Fountain $ 150,000 ■ Golf Course Retrofitting $ 83,408 ■ Practice Green $ 53,260 The following represents the total projected expenditures for the clubhouse project: ■ Design (Soft Costs) ■ Project Management ■ Construction (Hard Costs) ■ Contingency 05%) ■ IID Rebates Total Project Costs $ 2,069,833 $ 687,874 $ 27,786,529 $ 4,581,785 TBD $ 35,126,021 The Construction Document estimate of project cost is based on current industry pricing for materials and labor. These costs do not take into account escalation beyond September 2009. Consideration must be given for the potential increase in material costs such as concrete, asphalt, steel, etc. which may result from market changes. The Agency Board does not need to take action on the budget at this time. Final budget adjustments will be made after the project is ready for construction and a contract proposal is ready for approval. However, if the Agency Board desires to reduce the estimated project cost, this is the meeting that this direction and action should be taken. The original CIP budget was developed prior to going through a clubhouse programming process. During the programming, a number of design considerations were discussed and eventually added into the clubhouse plans. These items include a larger clubhouse building, larger cart barn, larger clubhouse site, practice putting green, lake, full banquet kitchen, backup generator, LEED project design, enhanced event areas, and garden wall around the cart staging area. While the budget has increased, it must be noted that the quality of the site design, building design and overall project amenities have been significantly upgraded to provide a four -star destination resort golf course clubhouse. As currently proposed, the clubhouse is on par with some of the finest private clubhouses in the Coachella Valley. Due to current and projected State budget deficits, the State has approved a $4.85 million reduction in RDA funding. This funding loss, combined with RDA direction to not issue any new bonds, will make it difficult to build the clubhouse, infrastructure, and any costs associated with the canal modifications. At this time, CVWD is considering making modifications this summer. By deferring the clubhouse construction to future years, adequate funding should be available to proceed on a cash flow basis provided the State does not take away any additional funds. BACKGROUND: The Phase II SilverRock Resort improvements currently include the installation of: the "backbone" infrastructure, including on -site streets, one box culvert and two (2) golf cart bridges spanning the Coachella Canal, water, sewer and dry utilities; the Permanent Clubhouse; the second Municipal Golf Course; the project entry features (Jefferson Street and Avenue 54), and on -site landscape and irrigation. The clubhouse site and roadway locations have been previously approved by the Agency Board. The Clubhouse Schematic Design Plans were presented to the Agency Board on January 15, 2008; the clubhouse Design Development Plans were presented to the Agency Board on May 21, 2008; and the revised Site Plans were presented to the Agency Board on August 5, 2008. Attachments 1 — 3 include minutes of the January 15, 2008 and May 21, 2008 meetings, and the staff report and minutes of the August 5, 2008 meeting. Clubhouse Design Process The RDA is in the Construction Document stage of building and site design, interior programming, budgeting for the Permanent Clubhouse. The RDA's Technical Team, in collaboration with the project architect, the RDA's Design Team, and Landmark Golf ("Operator") have conducted a thorough process for evaluating the requirements of the RDA, and evolving the clubhouse design to the current level of detail. The conceptual clubhouse floor plans were presented to the Agency Board on October 2, 2007 and represented the clubhouse architect's interpretation of the RDA's program requirements, square footage allocations, and input received from the RDA Technical Team and the Operator collectively. This design included 20,790 sq. ft. of area on the main floor and 17,015 sq. ft. of area within the lower floor, for a total of 37,805 sq. ft. The primary increase in floor area was caused by the need to accommodate approximately 180 golf carts and associated equipment within the lower level (cart barn). Based on comments received by the Agency Board to the Clubhouse Conceptual Plans, on January 15, 2008, the clubhouse architect presented to the Agency Board the Schematic Design Plans and exhibits depicting more detailed information on the clubhouse design, site design and LEED design considerations. This design included 20,595 sq. ft. of area on the main floor and 17,248 sq. ft. of area within the lower floor, for a total of 37,843 sq. ft. Agency Board members discussed the increased building size, interior modifications, appropriateness of the 'dome' feature and alternatives for the asphalt parking lot. Based on comments received by the Agency Board to the clubhouse Schematic Design Plans, the architect presented to the Agency Board on May 21, 2008, the Design Development Plans depicting a higher level of detailed information on the clubhouse design, site design and Leadership in Energy and Environmental Design (LEED) design considerations. This design included 21,022 sq. ft. of area on the main floor and 17,782 sq. ft. of area within the lower floor for a total of 38,804 sq. ft. Project Description The architectural concept is a Mexican Hacienda -style featuring a mix of authentic building materials. Building materials include two-piece clay tile with mortar, smooth stucco/plaster finish, steel pane window frames, ornamental iron, brick, heavy wood beams, and other design elements. The building ranges in height from 22-feet 6-inches to a maximum of 42-feet at the entry feature dome. The current Construction Document plans reflect the total building area of 38,804 square feet. The site area remains unchanged at approximately 10 acres. Landmark Golf has also been consulted regarding the operational characteristics of the proposed Clubhouse design. The following modifications to the site and floor plans were made subsequent to the RDA meetings on May 21, 2008 and August 5, 2008: Clubhouse Site Plan: • Redesigned parking lot layout to maximize parking stalls, and to incorporate handicapped parking, low -emitting vehicle. golf cart parking, and bus drop off areas. • Reduced asphalt in parking lot with the addition of enhanced paving materials (pavers) at the project entries. • Redesigned cart staging area to increase function and cart circulation. • Redesigned fire access road to create more functional use of space. • Reduced lake area and volume by 8,000 sq. ft. (20%) and designed lake to be interconnected with the existing golf course irrigation system. Clubhouse Exterior: • Redesigned patio area, terrace walls, handicap ramp and planters at rear of clubhouse to better function with new event lawn and lake design. • Soften roof line by adding parapets to buffer equipment and solar panels. Clubhouse Interior: • Redesigned locker area to create better function. • Redesigned kitchen layout to maximize function, circulation, and a relocated elevator to better service downstairs. • Revised administrative offices to increase function. • Relocated fireplace to grill lounge. • Redesigned entry foyer to increase function of space. • Revised storage downstairs to accommodate elevator relocation. • Adjusted loading area at back of house to block views from conference room above. Final Landscape Plans The RDA Board reviewed the preliminary landscape plan at its August 5, 2008 meeting, and at this time, the final landscape plan is proposed for review and approval. The landscaping plans have been designed to provide a transitional effect between desert landscaping (beginning along the outer edge of the project site) to a desert oasis (the area immediately surrounding the clubhouse) with a large variety of trees, multiple -sized palms, shrubs, and ground cover. The design features a range of colorful shrubs that will result in bloom year-round, including winter. Landscaping along the outer perimeter of the site will include trees ranging from 24"-36" box size and California Fan Palms ranging in height between 12'-18' (caliper and other size specifications are noted on the tree plan — Attachment 9). The parking lot area will mostly include Chilean Mesquite and Blue Palo Verde, shrubs and accent plants. The entry/arrival landscaping will include a high canopy of date palms with the focal point being the fountain water feature. The courtyard area includes a semi- circular drive with two planters in the center. One planter will include ornamental plants, including limited annual color, with the water fountain feature in the center; the other half -radius planter, closest to the entry door to the clubhouse includes 'Mediterranean Fan Palms', a 48" box size 'Blue Palo Verde', and ornamental plant materials. The golf cart staging area is designed for day-to-day golf cart use as well as receptions and events. The goal is to create a comfortable canopy within the cart staging area, as well as the other outdoor spaces around the building. Date Palms have been used to create a symmetrical pattern within the staging area and to keep views from the pro shop and walkways symmetrical as well. Located southwest of the project area is a rectangular -shaped event lawn area surrounded by a screen wall to provide an intimate courtyard for wedding, dinners, and special events, at the same time providing a view of the mountains on the south end. The landscaping outside to the north, northeast, and northwest will include trees such as the 'Blue Palo Verde', 'Sweet Acacia', and 'Chilean Mesquite'. Southwest of the event lawn, the area opens up to a patio that includes 'Date Palms', 'Mediterranean Fan Palms', and a 'Blue Palo Verde'. The northwest and northeast sides of the screen wall will be adorned with vines. The event lawn area is the only location on the project site that will incorporate the use of three different types of palms such as the 'Mediterranean Fan Palm', 'Date Palm', and a 'Pindo Palm' variety. At its August 5, 2008 meeting, the RDA Board discussed the use and quantity of date palms. The discussion ranged from adding more date palms (up to 24) to their maintenance requirements. The current landscape plans utilize 35 date palms and uses them to accent the project entry, cart staging area, patios, and event lawn. The design team recommends maintaining the existing design so date palms are used to accent the building and its outdoor spaces. Washingtonia Filifera Palms (52) are used along SilverRock Way and as a transition to the existing and proposed golf course. The design of the irrigation plans will be to the standards of the Coachella Valley Water District (CVWD) with no overhead spray irrigation within 24" of sidewalks or curbs. Although the City has adopted a strict water conservation ordinance, turf will be installed but kept to a minimum. Artificial turf was considered, but because of heat gain and the locations being in close proximity to the public viewing, it was concluded that it would be inappropriate for the areas surrounding the clubhouse. During the review of Design Development plans, the RDA Board discussed the golf cart staging area entry design. As proposed, it is a wrought iron gate within two columns topped with a wood trellis element. Comments regarding this element ranged from replacing the wood trellis with an arch, to removing the trellis (see Attachment 7 for concept design). After a careful review of this element, the project design team recommends that adding an arch would create a much larger design element and not be in proper scale. Additionally, this element is similar to a design element at the event lawn (see Attachment 8). Decorative paving will play an integral role in connecting all aspects of the Clubhouse site, starting with the intersection at SilverRock Way, to the path leading to the courtyard and entrance and the cart staging area. A sample of the acid wash sidewalk will be available for review. The landscape construction plans were presented to the Planning Commission on January 13, 2009. The Planning Commission reviewed the proposed landscape plan and unanimously recommended approval. One Planning Commission member suggested that staff carefully review the planting density and determine if fewer shrubs could be considered to reduce costs. Staff and the design team will evaluate possible cost saving measures while maintaining the integrity of the landscape design. The Architecture and Landscape Review Committee reviewed and approved the landscape construction plans on January 7, 2009. LEED Considerations The current Construction Document plans have been reviewed by Nestor + Gaffney Architecture and the updated Pre -Certification Estimates indicate the project will achieve a "Certified" and possibly a "Silver" certification. Design considerations for the clubhouse architecture and site design included maximizing energy efficiency and the potential to develop long term cost savings through efficient design. �� J Design considerations incorporated into the Construction Document plans, which are beneficial to the achieving of a higher level of environmentally friendly design, now include: Site Development ❑ Water efficient landscape irrigation ❑ Use of non -potable irrigation water ❑ Light pollution reduction within parking lot and landscape areas ❑ Heat island reduction by using light colored roofing materials ❑ Addition of bike racks for both employees and guests ❑ Water efficient landscape irrigation ❑ Water use reduction inside building ❑ Reduced asphalt in parking lot with concrete pavers Energy and Atmosphere ❑ Solar panels ❑ Energy efficient interior lighting ❑ Management of "refrigerant" within kitchen ❑ Post operations verification of energy systems and controls Materials and Resources ❑ Management of waste and the recycling of materials ❑ Use of material resources manufactured within the region Environmental Quality ❑ Use of environmentally appropriate materials ❑ Reduced indoor chemical use ❑ Lighting control systems throughout the building ❑ Thermal comfort control systems within the building interior ❑ 90% of regularly -occupied interior space has outdoor views ❑ Designated smoking area between event lawn and lake Innovation and Design Process ❑ Golf cart parking and multi -use trail system ❑ Exemplary landscape irrigation system ❑ Green cleaning methods for operations ❑ Reduction of mercury from lighting sources Included in the LEED improvements are solar panels located on the clubhouse roof. Currently there are 238 panels proposed to produce a 12.5% reduction in energy costs. In addition, the building design will be up to 24.5% more energy efficient than the LEED baseline energy standard. The current additional construction costs (hard costs) associated with the proposed LEED recommended improvements to the clubhouse building and site are $1,006,374. Use of Non -Potable Water In response to Agency Board member comments, staff researched the use of non - potable water or grey water generated inside the building. Currently golf course and other areas are irrigated with non -potable canal water. Utilization of grey water from on -site plumbing fixtures is carefully regulated by various water quality and health entities. Staff worked with the California Regional Water Quality Control Board and CVWD to see if this may be feasible. Current regulations for use of grey water from non-residential uses require all grey water to be treated prior to use. Currently, CVWD operates a water reclamation plant in Palm Desert and will construct one in the east valley in the future. Based upon discussions, it does not appear economically viable for the City to go into the wastewater treatment business for SilverRock Resort. IID Coordination As a result of working with Imperial Irrigation District (IID) on city-wide energy programs, IID has assigned a consultant to work with the RDA on the clubhouse energy system design. IID is assisting in designing the clubhouse to utilize existing IID rebate programs that are targeted at reducing overall energy consumption. The consultant is working directly with the architect to increase energy efficiency and achieve IID rebates. Emergency Operations Considerations The project design includes an emergency generator that would allow the clubhouse to provide a range of services during an emergency ranging from a community cooling center, emergency kitchen, overnight shelter, and/or an emergency personnel staging area. The additional cost for the emergency generator system has been estimated to be $200,000. C 3� Additional Consultant Services Staff will be bringing forward an amendment to the landscape architect budget for additional structural engineering of retaining walls. It is estimated that this amendment will not exceed $20,000. This cost is factored into the cost estimates presented in this report. Clubhouse Operations Considerations Based on the January 6, 2009 Financial Analysis Report for SilverRock Resort (Attachment 10) provided by Landmark Golf Management, staff recommends that consideration be given to delaying the construction of the clubhouse until the economy improves. Highlights from the report include; ❑ There is an additional estimated increase in the subsidy for a new clubhouse within the first five years of its opening totaling $710,866. ❑ In 2014-2015, the SilverRock Resort Golf Course shows an increase in gross revenues over expenses of $947,370. ❑ The development of the second golf course and the increased golf rounds reduce the subsidy of the golf operations. ❑ Charts located on page 9 in the Financial Analysis Report demonstrate the revenue projections showing the estimated five year subsidy. In addition to the report, the recent economic downturn has also affected current golf course rounds and revenue. Current revenues from golf course rounds and the sale of merchandise is down approximately 12%. The 2008-09 Annual Plan targets 40,850 rounds at $80.23 a round. The updated forecast for this fiscal year is reduced to $75.54 per round with 1623 fewer rounds. In addition to operational costs, there is a concern that constructing the infrastructure, clubhouse, and modifications to the canal at the same time would have an effect on golf course play and revenue. Clubhouse Development Schedule The original Clubhouse Schedule indicated the clubhouse plans being complete and publically bid in December 2008. This schedule was coordinated with the timing of the street improvements and related infrastructure to avoid project delays. Construction for the clubhouse was originally scheduled to begin first quarter 2009, and project completion / acceptance was based on a 12 month duration and anticipated in March — April 2010. A key component to maintaining the clubhouse schedule is the installation of new CVWD irrigation lines and the abandonment of the existing lines located within the clubhouse site. For this purpose a permit is required from the Bureau of Reclamation (BOR) which is currently being delayed due to CVWD's canal relocation study. Also, prior to the start of the clubhouse construction, at a minimum, a portion of the street improvements and related utilities for SilverRock Way should be installed to accommodate site access and the availability of utilities to the clubhouse site required for its construction. Should the RDA Board decide to delay clubhouse construction by one year, the Schedule shows the clubhouse plans being bid in the third quarter of 2009. The clubhouse construction would begin approximately two months later and based on revised construction duration of 14 months, project completion/acceptance is anticipated in the first quarter of 2011. Infrastructure required to serve the clubhouse would be bid and constructed in phases, beginning in late 2009. Exhibits A variety of exhibits (Attachments 4-1 1) are included for reference purposes, and are listed below. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1 . Provide direction to staff regarding: A. Proceeding with final plans for infrastructure including streets, water, sewer, and other utilities; and B. Deferring construction of the clubhouse due to overall economic conditions, State takeaway of $4.85M in redevelopment funds, and allow project infrastructure to be completed; and C. Approving the final site, landscape, and associated plans; and D. Considering and providing direction regarding the overall project schedule, Financial Analysis Report, and other project details; or 2. Provide staff with alternative direction. Respectfully submitted, Douglas R. Evans Assistant City Manager -Development Services �Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1 . RDA Board Minutes — January 15, 2008 2. RDA Board Minutes — May 21, 2008 3. RDA Board Staff Report and Minutes — August 5, 2008 4. Site Plan 5. Building Elevations 6. Clubhouse Courtyard Imagery 7. Cart Staging Area Imagery 8. Event Lawn Imagery 9. Overall Landscape Plan 10. Landscape Irrigation, Tree & Shrub Planting Plans (RDA Board only) 11. Fiscal Analysis Report Redevelopment Agency Minutes 5 January 15, 2008 ATTACHMENT 7:00 P.M. The Redevelopment Agency reconvened the meeting at 7:54 p.m. BUSINESS SESSION (Continued) 2. CONSIDERATION OF SILVEROCK RESORT CLUBHOUSE SCHEMATIC DESIGN PROGRAM DEVELOPMENT AND BUDGET UPDATE. Assistant City Manager -Development Services Evans presented the staff report. Ule Rowe, HAS Design Group, reviewed the Site Plan and landscape architecture. Assistant City Manager -Development Services Evans commented on the request to center the building on the site; and reviewed the reorientation of the parking lot and the effects of relocating the staging area. Agency Member Adolph stated the overall function and layout is great. Mr. Rowe confirmed a caliper per box is included in the specifications of the plan for the clubhouse, in response to Agency Member Henderson. In response to Agency Member Adolph, Mr. Rowe explained the use of Mesquite trees along with desert trees. Agency Member Henderson questioned on the use of black instead of colored asphalt. Mr. Rowe stated the determination of using black, as opposed to colored asphalt, may been due to a cost prohibitive factor. Agency Member Henderson conveyed her concern of the black asphalt retaining heat. Mr. Rowe illustrated the use of many trees in the parking area which will provide a significant amount of shade. Agency Member Henderson questioned the use of an oblong template rather than square for the parking area. Mr. Rowe explained the design gives the opportunity of not providing everything on a straight axis, and decreasing the size of the planters may affect the growth of the trees. Agency Member Henderson further questioned if solar panels are planned to be utilized for the clubhouse building. Mr. Rowe stated there are no physical structures in the plans to support solar panels. Redevelopment Agency Minutes 6 January 15, 2008 In response to Agency Member Kirk, Assistant City Manager — Development Services Evans stated staff can explore other alternatives and the use of other colors for the design of the clubhouse. In response to Agency Member Adolph, Assistant City Manager - Development Services Evans explained a decision has not been made as to what decorative floor material will be used at the entrance of the clubhouse. Mr. Rowe explained staff has been working closely with Coachella Valley Water District (CVWD) to comply with the new landscape efficiency ordinance, which allows use of 72 acres of turf and an additional 80 acres in the ancillary areas, in response to Agency Member Kirk. Mr. Rowe confirmed the second course does need to comply with CVWD ordinance, and explained the existing course is using less water than what was applied for. In response to Agency Member Kirk, Mr. Rowe explained there are upfront costs associated with creating a nursery of trees in 36" boxes in preparation for planting upon completion of the parking lot; stated it is not a common practice because of the costs associated. Mr. Rowe explained a curb will enclose the planting area around the trees, and that no thought has been give to the color of the curb; stated color will be added around the trees; explained annual color will be installed in accent, entry areas and possibly to the driving range; consideration will be given to maintain and prune the trees without disrupting the course activities; stated no evaluation or testing of the soil has been conducted, in response to Agency Member Sniff. Mr. Rowe further explained drainage of the soil will be part of the design development process, a metered system will be installed for irrigation, and drip system will also be utilized, in response to Agency Member Sniff. In response to Agency Member Henderson, Mr. Rowe explained the planters will be curbed, and vehicle will not be able to drive through the tree areas of the parking lot. Mr. Robert Altevers, Altevers & Associates, reviewed the floor plans. Redevelopment Agency Minutes 7 January 15, 2008 Agency Member Adolph stated the dome accent is an expensive component to the project and is not necessary and it is not compatible with the building design; stated a water feature was a better component than a fireplace; and would rather see a hip roof with a clear panel to allow natural light. Mr. Altevers stated the dome feature is common in Mexican architecture. Agency Member Henderson conveyed her appreciation of Agency Member Adolph's concern over the costs; stated the Agency is building something where everything on that project is supposed to take it into the future and give it stature; conveyed her opposition to approving a project without any identifying feature; understands the concept of the fireplace and questioned if the feature can be a convertible water and fire feature; stated the concept will become better as the process proceeds; and has no problem with the dome. Agency Member Kirk conveyed his appreciation of Mr. Altevers attendance and spending so much time on the elevations; stated when first saw elevations looked for something special; stated the window treatment under the dome is fantastic and if took the dome away, this could be almost any place in Southern California; conveyed concerned if don't do something to identify the building it could look like a large grocery store and a common place building; would like to see more special features incorporated; stated in this case, some of these additional elements may be less than 1 °!o of the total cost; with respect to fire or water, supports the fireplace over the water feature due to the water conservation issue; stated there have been Spanish/Mexican influences in the region, and would like to see more of the special elements; and stated the final design is 95% to completion. Agency Member Sniff stated the dome is great and may be a tad larger but not necessarily higher; suggested to incorporate another roof top feature on the left side of the building; would like to see the use of colored tile, particularly in the archways; have no problem with the fireplace and depends on the time of year whether to burn it or not; stated this building could be outstanding, with a few modifications; stated when reviewed the color rendering, first thought of the Alamo, and suggested to give more color. Redevelopment Agency Minutes 8 January 15, 2008 Agency Member Kirk reinforced comments made by Agency Member Sniff regarding the uniform roof; suggested to incorporate not only the flat but the hip roof, and could go up and include the elements that breakup the horizontal monotony. Chairman Osborne stated this matter was discussed at a meeting which ended about midnight, four year ago; stated he has no comments regarding the architecture of the building. Agency Member Kirk requested a photo montage of buildings with parapet walls. Chairman Osborne suggested those concerns can be addressed when the solar paneling is reviewed and discussed. Agency Member Henderson questioned if the the presented is only one of many. Mr. Altevers stated the tile design will be a pallet of color with different tiles in different areas. Agency Member Sniff conveyed his support of the use of wrought iron wherever possible; stated the brick effect varies the wall and expands the dome inside; and suggested little out coves of light as they give depth to the wall and can be very pleasing without being dominant. Mr. Altevers stated shafts of light will be seen as there will be skylights. Agency Member Sniff suggested the use of colored glass to give a different hue of light. Agency Member Henderson conveyed her appeal of the decorative tiles and patterns displayed, but a little more subtle and symmetrical; stated the site plan clearly illustrates the roof is necessarily a flat line; stated she is hesitant in supporting the Planning Commission's suggestion to use solar, but is delighted to have them incorporated. Agency Member Kirk conveyed his concerned of the parapet style and a long flat roof; stated there are solar products out today that can give slopes or an angle that my be more effective; and questioned if the dome from the interior is a bit of a faux dome. Mr. Altevers confirmed. Agency Member Kirk further commented by stating there is something special to looking at the building and having a literal interpretation of the building on the inside as well as the outside; and suggested to extend the dome. Mr. Altevers explained the interior dome can be stepped in as the height progresses. Agency Member Adolph conveyed his like to the material pallet; stated the long horizontal line of the building needs to be addressed, but it will not be seen when standing next to the building at ground level. Redevelopment Agency Minutes 9 January 15, 2008 Chairman Osborne conveyed his support of the roof as it is presented because it allows for the solar panels and they will not be noticed; stated he likes the dome and making it progress all the way on the inside, as well as the proposed color pallet. In response to Chairman Osborne, Assistant City Manager - Development Services Evans stated staff has spoken to the design team regarding completion date; explained staff would need to move up the schedule a couple of months to be able to complete the project by the Bob Hope Chrysler Classic event in the year 2010; and stated staff can report back to the Agency regarding this issue Agency Member Henderson stated it was her understanding the clubhouse opening would be closely tied with the opening of one of the hotels. Agency Member Kirk stated the architect has received a number of comments tonight. Assistant City Manager -Development Services Evans stated the next stage would be the design development which will be more refined and have better cost estimates, and responses to the comments made tonight. Agency Member Adolph stated his appeal of the building and the layout and is convinced on the two entry doors to the clubhouse; stated he is not supportive of the dome feature as it is not compatible to the design of the building; stated he will support the concept nonetheless; and stated for the record he believes making a mistake if we start into overrides of the project. MOTION - It was moved by Agency Members Henderson/Kirk to approve the SilverRock Resort permanent clubhouse schematic design program and budget, incorporating the consensus comments made by the Agency when it comes back. In response to Agency Member Sniff, Assistant City Manager - Development Services Evans stated additional details will come back in the next stage that he feels will satisfy any concerns. Motion carried by a vote of 4-1, Agency Member Sniff dissenting. ATTACHMENT 2 LA QUINTA REDEVELOPMENT AGENCY ADJOURNED MEETING MINUTES MAY 21, 2008 An adjourned meeting of the La Quinta Redevelopment Agency was called to order by Chairman Kirk at 5:30 p.m. PRESENT: Agency Members Adolph, Henderson, Osborne, Sniff, Chairman Kirk ABSENT: None PUBLIC COMMENT — None CONFIRMATION OF AGENDA — Confirmed CONSENT CALENDAR - None BUSINESS SESSION 1. CONSIDERATION OF SILVERROCK RESORT CLUBHOUSE DESIGN DEVELOPMENT PLANS, SITE PLAN, INTERIOR DESIGN PROGRAM, LEED CERTIFICATION UPDATE, AND BUDGET UPDATE. Assistant City Manager -Development Services Evans presented the staff report. Bob Altevers, of Altevers Associates, reviewed the Clubhouse Arrival Perspective with modifications based on comments from the Agency at a previous meeting relating to the tower dome; and reviewed materials for the exterior, location of fountains, and clubhouse floor plan. Agency Member Osborne inquired about an outside smoking area, and why the golf entry area is accessed through the seating area. Mr. Altevers explained there is more room in the seating area than what is depicted in the renderings, and stated a smoking area will be provided off of the locker room area. He added a remade can also be provided away from the building for smoking. Redevelopment Agency 2 May 21, 2008 Adjourned Meeting Minutes Assistant City Manager -Development Services Evans provided an update on legislation regarding indoor/outdoor smoking, and stated there are many lawn areas that will accommodate smoking. Agency Member Osborne stated it would be nice to have a place for smokers and not offend others. Agency Member Sniff stated he likes the dome, and asked how it would be illuminated. He also asked about the bands of color on the exterior and the interior beams to be used. Mr. Altevers stated there will be up -lighting from the landscaping on the outside, and the inside will be illuminated by a chandelier and cove lighting. The color bands will be approximately six inches wide; and the solid timber beams will vary in size from 6" X 8" to 12" X 14". Agency Member Sniff asked about the height of the ceilings, and how many people the building would accommodate. Mr. Altevers stated the heights range from 10' to 15"6", and the building will accommodate up to 400 people. He also confirmed the clubhouse design is approximately 1,000 square feet larger than previously proposed, and that ceiling fans can be used to circulate air in the high ceilings. Agency Member Adolph asked about the possibility of using the long hallway for lockers instead of being wasted space. Mr. Altevers stated they anticipate the hallway being used as a bag drop area. Agency Member Adolph noted the interior elevations don't show the fireplace at the entrance, and Ms. Amy Altevers, of Altevers Associates, stated it will be similar to the outside design. Agency Member Adolph stated he supports the changes made to the cart barn area. Agency Member Henderson stated she is very impressed with the dome, especially since it has been opened up. Chairman Kirk expressed appreciation for the presentation and photo simulation. He feels the cart barn design is much better, and asked if staff is happy with it. Randy Duncan, representing Landmark Golf, responded, "Yes." Chairman Kirk inquired about the colors used for the dome and the design of the top element. Mr. Altevers stated the patterns and colors still need to be designed, but assured him they will not be washed-out colors. He stated the top element of the dome is a stone copula to decorate the dome. Chairman Kirk asked if any door surrounds would be used on the outside where they are not being used on the inside of an opening. Mr. Altevers stated there would be some at the board room, conference room, and golf shop, but they Redevelopment Agency 3 May 21, 2008 Adjourned Meeting Minutes didn't feel it was needed on the inside. Chairman Kirk stated the use of palm trees has significantly mitigated his concerns about the horizontal plane of the roof. He asked if the perspective was done before completing a study of the dome, to which Mr. Altevers responded that it was not. Agency Member Sniff stated he would like to see some banding differentiation on the exterior of the tower leading to the dome to provide a better sense of design. Chairman Kirk stated he would like to see more detail on the tower in the final design. Ms. Altevers then reviewed the interior design, including materials to be utilized for paving inside and outside of the building, wall finishes, upholstery, lighting, dining areas, bar area, banquet seating area, board room, restrooms, and locker rooms. Agency Member Henderson asked about the size of the chandelier in the entrance. Ms. Altevers stated it has not yet been determined, but will be scaled to the area. Agency Member Henderson commented on the light color of the carpet, the gothic look of the chandeliers in the dining room, and asked if red chairs are proposed in the interior. Ms. Altevers stated they are still working on carpet colors; as for the chandeliers, the chain will be different and shades will be added. She confirmed no red chairs are proposed. In response to Agency Member Adolph, Ms. Altevers confirmed area rugs will be fastened down in areas where tripping is a concern. She also addressed his concern about the difficulty of moving stacking chairs on the carpet, stating carpet glides will be used on the dining and banquet chairs and casters on the bar chairs. Agency Member Sniff asked about any plans for water features or inset lighting along the walls, and if the carpeting would be fire resistant. Ms. Altevers stated no water features or inset lighting are proposed, and confirmed the carpeting and fabrics will be fire resistant. Agency Member Sniff also asked about the height and adjustability of the light fixtures, and the possibility of using partition walls for added privacy in any of the rooms. Ms. Altevers stated the chandeliers will be 8 to 9 feet high, and have dimmer controls. She further stated the ballroom will have two walls, and the board room could be used as a private dining area. Agency Member Osborne suggested the possibility of using teak wood instead of wrought aluminum for patio seating because of heat from Redevelopment Agency 4 May 21, 2008 Adjourned Meeting Minutes the sun. Ms. Altevers stated the wrought aluminum will get warm, but not hot, and the teak wood would be heavier and more expensive. Agency Member Osborne voiced concern about the size of the board room. Ms. Altevers stated the table seating can be increased to accommodate 14 chairs, and a few chairs can be added along the side wall. Agency Member Sniff stated he believes there will be a demand for private areas. Chairman Kirk inquired as to how a group of 20 to 30 people could be accommodated. Ms. Altevers referenced the possibility of outdoor seating, or having partition walls available. In response to Agency Member Sniff, Mr. Altevers stated the glass will be a light solar bronze tone, and a skylight will be utilized in the hallway going into the golf shop. Agency Member Adolph asked about the availability of umbrellas on patio areas to deflect the sunlight. Mr. Altevers stated the plans call for umbrellas near the trellis area. In response to Agency Member Osborne, Mr. Altevers stated heaters will be available, and misters for cooling can be added along the back wall in the patio area. Chairman Kirk suggested a solar study of the patio areas would be beneficial, and inquired about a theme for the artwork. Ms. Altevers stated the artwork theme, which they do not have at this time, will tie in to the hacienda atmosphere. Yul Roe, of HAS Landscape Architects, reviewed various aspects of the site plan including a reduction in the lake size, arrival and cart staging areas, and parking. Agency Member Osborne inquired about the surface proposed for the staging area, and about any plans for an outside grill. Mr. Roe stated pavers will be used with tree grates around the date palms. As for plans for an outside grill, he stated there will be a snack bar. Agency Member Sniff questioned Medjool Date Palms being the most appropriate type of date tree to use. In response to an inquiry by Chairman Kirk, he stated date trees about 15 feet high that have not been moved multiple times should be fine to use. ('4� Redevelopment Agency 5 May 21, 2008 Adjourned Meeting Minutes In response to Chairman Kirk, Mr. Roe confirmed the tree grates will be of sufficient size to accommodate the ball of the trees if any have to be removed. Agency Member Adolph commented on the importance of harvesting the date trees to avoid having dates fall to the ground. He also suggested not using an abundant number of citrus trees because they attract bees. Agency Member Henderson commented on the importance of having shade in the staging area and adequate space for the trees to grow. Mr. Roe stated the tree fronds will overlap as they mature, and they anticipate the trees growing to approximately 18 feet high. Chairman Kirk stated he feels a more obvious drop-off area is needed for self -parking. Mr. Roe confirmed the area can be widened, and Assistant City Manager -Development Services Evans noted there is enough space to include a pull-out lane. Chairman Kirk asked what will make this clubhouse special from other clubhouses. Mr. Roe stated he feels the introduction of date palms in the entry will have a dramatic effect. Chairman Kirk stated he would like to see something special or unique incorporated. Mr. Roe explained they have not gone to that level of detail yet. Chairman Kirk requested they come back with something dramatic to review. Ron Nester, of Nestor+Gaffney Architects, reviewed the qualifications the project meets for LEED certification. He stated additional LEED points are possible through reduction of mercury in lighting fixtures, exemplary landscape irrigation, green cleaning methods, and golf cart trails. In response to Agency Member Osborne, Mr. Nester stated about 12'/2 % of the electricity generated for the clubhouse will be from solar panels. Assistant City Manager -Development Services Evans noted solar panels will be a large percentage of the total amenity package cost for LEED certification. He noted LEED only allows credits for up to 12'%% of the building. Agency Member Osborne stated he is more concerned about energy and water efficiency than he is about LEED points. He questioned the cost effectiveness of spending $500,000 to generate 12% of the facility's energy. Assistant City Manager -Development Services Evans l �i Redevelopment Agency 6 May 21, 2008 Adjourned Meeting Minutes stated LEED certification will allow the City to get a rebate of approximately $100,000 from Imperial Irrigation District. He stated the intent is to maximize energy efficiency and reduce long-term operation costs instead of just generating LEED points. He stated a suggestion has been made to consider firms that provide the upfront capital and install solar panels in order to receive a tax credit; the City would pay for the energy and get a reduced energy price for that percentage of the power. He stated staff is looking at different ways to finance the cost, but do not wish to delay the project. Chairman Kirk stated he believes the Agency is in agreement that energy efficiency is more important than LEED certification. Agency Member Sniff suggested one way to make the project special would be to enhance the entry ways with water features that include lighting and color. He feels the sign design could be of significant value, and suggested using pavers instead of just asphalt. Agency Member Adolph suggested installing Insta-Hot for water heating as a water conservation measure. Mr. Nester stated they will consider it in the design. Agency Member Henderson commented on the importance of being leaders in energy efficiency, and the expense of the LEED brand. She noted solar energy will not be less expensive until municipalities step forward and showcase it by using it in their buildings. Regarding the idea of coming back with something dramatic, she suggested using the logo or a monument to provide a dramatic accent at the clubhouse. She also referenced the possibility of using Art in Public Places funds. Chairman Kirk noted the capital cost of being energy efficient may not be as sensitive an issue as ongoing operation and maintenance costs. Assistant City Manager -Development Services Evans stated if the industry comes up with a more cost-effective solar panel, there may be additional opportunities in the future to construct carports near the canal and use solar panels. He also commented on the cost increases related to LEED certification, and requested direction from the Agency as to whether or not staff should pursue LEED certification. He noted LEED certification would make the SilverRock clubhouse unique because no other public clubhouses in the State have it. Agency Member Adolph questioned the concern, noting the project is already close to meeting the LEED Silver designation. Agency Member f -r L 4 -. Redevelopment Agency 7 May 21, 2008 Adjourned Meeting Minutes Osborne pointed out the LEED certificate alone will cost $30,000. Chairman Kirk noted the City's marketing budget for next year is $500,000, and he feels having the first public clubhouse with LEED certification will provide far more than $30,000 in marketing value. Agency Member Henderson noted the additional time component for LEED certification is also an issue. Assistant City Manager - Development Services Evans confirmed there are a number of elements where the LEED budget influences production of the project, including hard costs of the software, soft costs of the consultant time, and tracking everything on the job site. However, the hard and soft costs are already included in the projected cost of the project. Agency Member Sniff suggested skipping LEED certification and just building an energy efficient building. Agency Member Henderson noted skipping that would not change the timeframe at this point. Mr. Altevers stated the cost of LEED certification for the clubhouse at this time is approximately $1.1 million, including approximately $895,000 in additional costs to the contractor. In response to Chairman Kirk, he confirmed the $895,000 cost will be there regardless if the same level of efficiency is desired. Agency Member Henderson stated she will support going for LEED certification because of its advantages for marketing. She feels, however, it's important to get some expertise in the future to keep from having to go down the LEED pathway. Agency Member Osborne stated he doesn't feel $200,000 is worth the certificate. Agency Member Sniff agreed. Chairman Kirk stated he supports continuing with the LEED certification. Chairman Kirk recessed the Agency meeting at 7:42 p.m. and reconvened it at 7:54 p.m. Assistant City Manager -Development Services Evans presented a brief review of amenities that have increased costs beyond the budgeted amount. He stated that with the LEED program, the building cost is approximately $30.1 million plus contingencies. Redevelopment Agency 8 May 21, 2008 Adjourned Meeting Minutes Agency Member Sniff asked how the project will be financed. Assistant City Manager -Development Services Evans stated staff anticipates the City being able to build the clubhouse with existing Redevelopment Agency funds and future revenues without having to sell additional bonds. Finance Director Falconer stated the clubhouse will be fully funded by next fiscal year, adding that approximately $10 million is generated each year of excess tax increment money in Project Area 1. He referenced the possibility of needing a brief two-year loan from the General Fund to make up the difference between the $30.1 million cost and the $25 million on hand. The second golf course is budgeted for $19 million in Fiscal Year 2009/2010, but construction is anticipated to take about 1'/z years, and depending on the construction schedule, another short-term loan from the General Fund could be needed to complete the project. Assistant City Manager -Development Services Evans stated the second golf course will probably not happen in the timeframe budgeted because of market conditions. He stated at the next meeting staff will be coming back with the operational budget for the clubhouse, and presenting some contract amendments for design services. After that, staff will be able to come back with an outline of the budget. Agency Member Sniff stated he would feel more comfortable if the Agency had a relative certainty of when the hotels would be built. Assistant City Manager -Development Services Evans stated although the market is difficult at this time, Lowe Destination Development still has their equity firms in place and anticipates submitting for plan check in July 2008. He confirmed Lowe is not yet fully funded for construction. In response to Agency Member Adolph, Assistant City Manager - Development Services Evans stated staff anticipates being able to do the clubhouse without another bond, but will take an additional look at it to bring it back with the operational budget. Agency Member Henderson inquired about a statement in the staff report regarding the potential use of the clubhouse as an alternative emergency operations center. Assistant City Manager -Development Services Evans explained the clubhouse could be used as a field command center, but the generator would not be sufficient to handle a full emergency operations center. Redevelopment Agency 9 May 21, 2008 Adjourned Meeting Minutes In response to Agency Member Osborne, Ms. Altevers confirmed they are comfortable that $2 million is a sufficient amount for the interior improvements, and added the amount includes some room for inflation. Mr. Altevers also confirmed the overall budget amount of $30.1 million is consistent with other clubhouses they have designed. Chairman Kirk asked for confirmation that the amount of the interior budget will be sufficient to achieve a high quality interior, to which Ms. Altevers responded, "Yes." Agency Member Adolph asked if the acoustic material will be sufficient to absorb noise. Mr. Altevers stated the space decking will have acoustical material on top, plus carpeting and furniture. Agency Member Adolph pointed out the renderings presented do not accurately depict how the building will look when it is first constructed because it will take years for the landscaping to mature. He commented on the need for consistency, referencing prior concerns from Agency members about using too much .water on the project, and the fact that an earlier suggestion was made today about adding more water features. In response to Agency Member Henderson, Ms. Altevers confirmed the octagon rug at the entrance is inset in the stone. Agency Member Henderson suggested they consider the possibility of wanting to move the rug out sometime in the future. She also referenced the need for enough electrical outlets, including floor receptacles. Agency Member Sniff stated he would like to have the budget discussion at the next meeting before making a final decision. Agency Member Osborne expressed appreciation for an outstanding job by the design team, and stated he likes the idea of putting something for SilverRock in the front. In response to Chairman Kirk, Assistant City Manager -Development Services Evans confirmed staff is looking for approval of the design at this time. Chairman Kirk reviewed the Agency recommendations for design considerations including adopting a special feature, a smoking area, bands around the tower, and pavers. He added the Agency would also like the design team to look at lifecycle costs and come back with Redevelopment Agency 10 May 21, 2008 Adjourned Meeting Minutes a financial plan. Assistant City Manager -Development Services Evans stated staff can come back with the financial plan at the next meeting, but it may take a little longer to obtain all the details for lifecycle costs. MOTION - It was moved by Agency Members Osborne/Sniff to tentatively approve the design package as presented with information coming back on lifecycle costs and a financial plan. Agency Member Henderson voiced concern about delaying the project, and questioned staff being able to present anything new in the budget that hasn't already been discussed. Chairman Kirk noted the motion gives authority to expend funds per the design details presented. Due to the market changes from two years ago, he stated he would like to know how it relates to hotel development, the second golf course, and cash flow. In response to Agency Member Henderson, Assistant City Manager - Development Services Evans confirmed it is staff's understanding that the motion allows them to move forward with complete engineering and design. Motion carried unanimously. STUDY SESSION - None CHAIR AND AGENCY MEMBERS' ITEMS - None PUBLIC HEARINGS - None ADJOURNMENT There being no further business, it was moved by Agency Members Sniff/Osborne to adjourn. Motion carried unanimously. Respect lly submitted, c '2�ZZ97��fZ VERONICA J. NTECINO, Secretary City of La Quinta, California ATTACHMENT 3 `0 `&t�, 4 a�w to s�c AGENDA CATEGORY: COUNCIL RDA MEETING DATE: August 5, 2008 / BUSINESS SESSION: ITEM TITLE: Consideration of SilverRock Resort Clubhouse Site Design Development Plans CONSENT CALENDAR: STUDY SESSION: PUBLIC }TEARING: _ RECOMMENDATION: Consider approval of the Permanent Clubhouse Site Design Development Plans and various landscape exhibits; and provide comments and direction in regard to the plans and exhibits. FISCAL IMPLICATIONS: When the Agency Board last reviewed the Permanent Clubhouse Design Development Plans and budget estimate on May 21, 2008, the estimate of project costs including the cost of the building, site improvements, LEED Certification, and soft cost was $30,103,961, plus contingency. The current revised estimate of project costs for the clubhouse site improvements was prepared by HSA Design Group, RBF Consulting, Aquatic Design Group and Golf Dimensions. The clubhouse site budget has remained unchanged from the May 21, 2008 estimate. The quality of the site design, and overall project amenities have been designed to provide a four -star destination resort clubhouse. The Design Development estimate of project cost is based on current industry pricing for materials and labor. These costs do not take into account escalation beyond September 2008, and will require adjustment during the final Construction Document Design phase. There may be potential material cost increases for items such as concrete, asphalt, steel, etc. which may result from market changes. 017 c4, J The Agency Board does not need to take action on the budget at this time. Final budget adjustments will be made after the project is ready for construction and a contract proposal is ready for approval. BACKGROUND AND OVERVIEW: The City Council approved the SilverRock Resort Specific Plan on July 8, 2006. The Specific Plan Section 2.4 Master Plan Use identifies Planning Area 1 as Golf Course Open Space, including a clubhouse site allocation of approximately seven acres which has since increased to 10.23 acres in size as a result of the final RDA Board -approved road alignment of SilverRock Way. The site plan has been developed to be centrally located between the Arnold Palmer Classic Course and the proposed Jacbosen/Hardy Golf Design golf course. The site location and building orientation are intended to maximize views of the hillside, and the existing and future Golf Courses. The Clubhouse Schematic Design Plans were presented to the Agency Board on January 15, 2008, and the clubhouse Design Development Plans were presented to the Agency Board on May 21, 2008. At this time, staff is requesting Agency Board comments, additional direction, and approval of the updated site' plan and landscape concepts. Clubhouse Design Process The RDA is in the Design Development stages of building and site design, interior programming and budgeting for the Permanent Clubhouse. The RDA's Technical Team, in collaboration with Altevers Associates (the project architect), the RDA's design consultants, and Landmark Golf ("Operator") have conducted a thorough process for evaluating the requirements of the RDA, and have evolved the clubhouse site design to the current level of detail. The landscape architect, NSA Design, has continued to refine the clubhouse site plan based on comments received from the Agency Board to the Conceptual Plans presented on January 15, 2008, and the clubhouse Design Development Plans presented on May 21, 2008. In the future, the Agency Board, will review the final clubhouse construction documents, which include detailed landscape architectural and civil engineering plans and specifications. Once these have been approved, the plans will be publicly bid to general contractors. 018 L 5 C Clubhouse Site Design Considerations The architectural concept that is to be developed throughout the clubhouse site is a Mexican Hacienda -style featuring a mix of authentic building materials which is intended to be compatible with the future hotel projects. The following design objectives were initially established by the RDA Board for the Clubhouse architects and site features: • Maximize hillside views; • Create indoor and outdoor event spaces; • Accommodate 200 people within the building for events; • Provide sufficient parking for golf and event functions; • Create an inviting entry that features convenience for golfers and allows separate access for events; • Facilitate golf cart staging and storage areas with sufficient area to accommodate two shotgun starts; • Orient the building and site improvements to protect the Clubhouse from the No. 1 tee; • Design an outdoor event lawn which creates a unique outdoor activity space with sufficient screening from SilverRock Way; • Secure LEED Certification; • Initiate Water efficient design principals. The site plan has been modified as a result of continued refinement of the project, and Landmark Golf has been consulted regarding the operational and functional characteristics of the proposed Clubhouse site plan. The following modifications to the clubhouse schematic site plan were made subsequent to the RDA meeting on May 21, 2008 based on the comments provided (meeting minutes are included as Attachment 1): • Review life cycle cost of pavers. • Designate a smoking area (per state/local laws) outside, perhaps a "Ramada" area away from building. • Reconsider use of citrus tree planting near building due to maintenance concerns and bees. • Reconsider use of date palms due to maintenance concerns. • Consider a "pull-out" lane near golf cart staging area for golf club drop off. 019 (51 • Incorporate "dramatic" site design features into the landscape. • List key elements that make the site plan "special." Elements that make this site plan special include: 1) Site with mountain views - architecture and site plan maximize views of the mountain, golf, and lake from all interior spaces, and from outdoor activity and event areas such as cart staging, practice green, patios, and event lawn. 2) Multi -function outdoor areas maximize rental for weddings, dinners, receptions, entertainment events, corporate events, and the Hope Classic. 3) Arrival courtyard with multiple drop-off areas and upgraded finish materials, and traditional water fountain. 4) Architecture and site plan complements the impressive site location without trying to compete with the natural beauty of the setting. 5) Hacienda courtyard event lawn with multiple even focal points, reception patio, lake view pre -function area, and grand, residential estate -feel. LEED Considerations 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. Design considerations incorporated into the Clubhouse Site Development plans, which are beneficial to the achieving of a higher level of certification; now include: ❑ Increased water efficiency through reduced water consumption, use of native plant materials, and use of non -potable water. ❑ Light pollution reduction within parking lot and landscape areas. ❑ Heat island reduction by reducing asphalt in parking lot and substituting concrete and pavers. ❑ Addition of bike racks for both employees and guests. I.. 0 21 0 J� ❑ Golf cart parking and multi -use trail designed as a continuation of the City's existing golf cart program. IID Coordination As a result of working with Imperial Irrigation District (IID) on city-wide energy programs, IID has assigned a consultant to work with the RDA on the clubhouse energy system design. IID is assisting in designing the clubhouse site to utilize existing IID rebate programs that are targeted at reducing overall energy consumption. The consultant is working directly with the architect to increase energy efficiency and achieve IID rebates. As of this time, rebate estimates are not available. Paving Materials Considerations The Agency Board has requested the Design Team study various types of paving materials/products for the clubhouse parking lot, as alternatives to using asphalt paving. Both concrete paving and modular concrete pavers were evaluated and compared for their structural integrity, longevity, and environmental advantages over asphalt paving. The draft study has just been completed; staff will provide a verbal update regarding the study at the Agency Board meeting. Clubhouse Design Concepts The following is an outline and brief description of the various Design Development concepts being present for the RDA Board's review and consideration. Clubhouse Entry The intersection of SilverRock Way and the clubhouse main entry is accentuated with concrete pavers to announce the clubhouse entry and to provide connection to the public sidewalk and the multi use trail. This same intersection configuration and paving treatment is also proposed to be installed at the intersection of SilverRock Way and Hotel Drive. The crosswalks are scored, colored concrete, which provide a border for a field of concrete pavers in the center of the intersection. Wayfinding signage and a traffic calming section of roadway is proposed to be incorporated prior to the intersection in either direction to help announce the entry. Low plantings at the clubhouse entry will assure that vehicular line of sight is maintained. Entry Courtyard Low, stone retaining walls, matching those incorporated along the streetscapes throughout the project, flank the entry, and help to screen the parking lot and t J� service yard to the east and west. Three flagpoles are triangulated in the raised planter behind the stone wall to the east and a single specimen Palo Verde is planted above the wall on the west. The courtyard is announced by a large traditional Mexican fountain, which dominates the landscape in front of the clubhouse. The concrete pavers carry through the main drive entry and into the entry courtyard. Large pots are placed next to the parte-cochere columns to enhance the hacienda feel. Clubhouse Signage In addition to a common community -wide vehicular and pedestrian signage program, it is envisioned that each individual project component, (i a., clubhouse, hotels, retail) will have its own unique project Signage which reflects the character of the overall project. For the clubhouse site, the architect is recommending a single monument sign of similar architectural features as the clubhouse. Materials may include stone or the facing; stucco with brick caps to match the proposed walls adjacent to the building; and logo/signage of rustic steel. The final sign program will be presented to the Agency Board in conjunction with an overall SilverRock Resort sign program. Cart Staging Area The entire staging area is contained within the extended grounds of the hacienda to create an intimate experience for the golfer. The low perimeter walls and the pilasters are finished with an earth tone, roughened stucco and topped with brick capping to match the architecture. Canopy trees surround the staging area providing shade and scale. The number of date palms has been reduced to address maintenance concerns. Decorative tree grates have been reduced to only two (2) to maximize the usable parking area during tournament events. Citrus trees have been eliminated due to their potential mess and bee attraction. The cart staging area will receive permeable decorative concrete paving similar to the clubhouse entry paving, with designated parking stalls finished with a contrasting paver and color. A four (4) inch curb creates a border and wheel stop around the parking and drive aisles. During tournament events the carts would be lined up in the drive aisles and extend out onto the cart path servicing both golf courses accommodating enough carts to facilitate a "double" shotgun start. The functionality of the cart staging area has been improved by reducing the number of palm trees and tree grates, adding a secondary entry, and refinement of layout. While fully functional for golf cart staging, the design and finish detail would allow this area to be used as an event, reception, or other uses when the golf course is closed. It was determined that a "pull-out" lane near the staging area is not necessary, as there is a 30' driveway adjacent to the staging area, allowing ample room for a car to pull over and drop off golf clubs. Event Lawn This hacienda -style courtyard will provide a highly flexible event and entertainment venue. Its privacy and intimate feel will be accentuated by its spectacular mountain views. The outdoor event area is designed to accommodate a number of different functions and group sizes. It is dominated by a large, 5,000 square foot turf area and surrounded by smaller, hard surface nodes finished in decorative paving. These smaller patio areas provide opportunities for casual seating, food services, entertainment, and presentation setups, with a variety of seasonal exposures. A hardscape patio below the covered outdoor terrace west of the banquet room surrounds a specimen Palo Verde tree in a raised, seat wall planter. Benches along three sides of the patio provide opportunities for informal gathering and more intimate conversation. To the south, the event lawn is connected to the Fire Access Road, which is finished in colored, scored concrete to match the terraces adjacent to the banquet room and outdoor lounge. Service Area Serving as the utility portion of the building, the service area will be screened from both off -site, as well as on -site views. Six foot high perimeter stucco walls, with brick caps matching the architecture, will surround the service area, eliminating views from approaching vehicular and pedestrian traffic. Desert landscape along SllverRock Way will reduce the visual impact of the walls themselves, directing views to the architecture. The arched "windows" proposed along the entry courtyard will be designed at a height that will detfer views to the service area. Likewise, a wrought iron grill will be placed in the "windows," and vines will be allowed to grow on them, as an additional buffering measure. 023 Parking Lot The current parking lot configuration will accommodate a total of 314 stalls, including the required handicap stalls, and stalls dedicated to low emissions vehicles: per the requirements of the LEED Certification Program. Both primary and secondary bus and bag "drop-off" areas have been designed near the cart staging area, in addition to the drop off area provided at the entry courtyard. Golf cart parking for the guest will be located at the south side of the parking lot, where a future "charging station" is being considered as part of the LEED certification program. Enhanced concrete pavers, similar to those proposed at the entry courtyard, will be installed at the secondary entry at the east side of the parking lot. For large events, the parking lot is designed to have multiple valet stations and its parking capacity can be substantially increased while maintaining emergency access and general circulation. Practice Green The practice green has slightly increased in area during the design process, due to the need to accommodate a larger number of users at any given time. Since the driving range is at a remote location, this practice green is envisioned to accommodate both golfers waiting to tee off, as well as visitors who will not venture the long distance to the driving range. The realignment of the practice green location has accommodated a more functional Fire Access Road, golf cart circulation adjacent to the cart staging area, and the transition to the future second golf course. Clubhouse Lake The lake will be functional, and interconnected to the irrigation lake system of the existing golf course. In addition to the aesthetics it will offer the clubhouse site, the lake is designed to utilize canal water, and can be supplied with well water when increased water quality and clarity is desired. The lake will offer protection from the #1 tee boxes located to the south, and a visual focal point when viewed from the clubhouse site. The lake can be viewed from the interior of the clubhouse, and will create dramatic images of the mountains reflecting off its surface. A small pool and waterfall feature acts as the source of the lake water, and will make a spectacular backdrop for weddings and special events. ay. Several shoreline treatments are proposed around the lake perimeter, including a direct connection to the banquet terrace, stone retaining walls adjacent to the tee boxes, turf to the water's edge, seating areas, and areas where natural landscape will abut the lake. The lake has been dramatically reduced in size during the design process to scale down water use, and the lake design will include recirculation, aeration, and aquatic systems to achieve a higher water quality and clarity. To allow maximum operational flexibility and to preserve views, it was decided not to propose a free-standing "Ramada." However, there are many locations throughout the site plan that could be used for smoking, including the lake area, event lawn, and numerous areas on the patio. During the May 21, 2008 Agency Board meeting, the Board requested Altevers Associates conduct a solar study of the patio area. Altevers Associates has completed the study, analyzing various sun angles at different times of the day in the months of June, September, and December (exhibits are attached for Agency Board review). Because of the southern exposure, there will be times when the area will be sunny. Altevers Associates is planning to install roll -down shades at the grille terrace by the arched stone openings. These would be in a recessed pocket so they would not be visible unless lowered. The above -mentioned clubhouse site components are depicted in Attachments 2- 12. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve the SilverRock Resort Clubhouse Site Plan; or 2. Provide staff with direction regarding the Clubhouse Site Plan; or 3. Provide staff with alternative direction. Respectfully submitted, ADouglas Evans Assistant City Manager -Development Services Attachments: Approved for submission by: Thomas P. Genovese, Executive Director 1. RDA Board Meeting Minutes of May 21, 2008 2. Clubhouse Illustrative Landscape Plan 3. Clubhouse Site Plan 4. Clubhouse Entry Courtyard Enlargement 5. Clubhouse Courtyard Imagery 6. Cart Staging Plan Enlargement 7. Cart Staging Area Imagery 8. Event Lawn Enlargement 9. Event Lawn Imagery 10, Solar Study, June 11. Solar Study, September 12. Solar Study, December 026 ( 5a ATTACHMENT LA QUINTA REDEVELOPMENT AGENCY ADJOURNED MEETING MINUTES MAY 21, 2008 An adjourned meeting of the La Quinta Redevelopment Agency was called to order by Chairman Kirk at 5:30 p.m. PRESENT: Agency Members Adolph, Henderson, Osborne, Sniff, Chairman Kirk ABSENT: None PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed CONSENT CALENDAR - None BUSINESS SESSION 1. CONSIDERATION OF SILVERROCK RESORT CLUBHOUSE DESIGN DEVELOPMENT PLANS, SITE PLAN, INTERIOR DESIGN PROGRAM. LEED CERTIFICATION UPDATE, AND BUDGET UPDATE. Assistant City Manager -Development Services Evans presented the staff report. Bob Altevers, of Altevers Associates, reviewed the Clubhouse Arrival Perspective with modifications based on comments from the Agency at a previous meeting relating to the tower dome; and reviewed materials for the exterior, location of fountains, and clubhouse floor plan. Agency Member Osborne inquired about an outside smoking area, and why the golf entry area is accessed through the seating area. Mr. Altevers explained there is more room in the seating area than what is depicted in the renderings, and stated a smoking area will be provided off of the locker room area. He added a remade can also be provided away from the building for smoking. 021 Redevelopment Agency 2 Adjourned Meeting Minutes May 21, 2008 Assistant City Manager -Development Services Evans provided an update on legislation regarding indoor/outdoor smoking, and stated there are many lawn areas that will accommodate smoking. Agency Member Osborne stated it would be nice to have a place for smokers and not offend others. Agency Member Sniff stated he likes the dome, and asked how it would be illuminated. He also asked about the bands of color on the exterior and the interior beams to be used. Mr. Altevers stated there will be up -lighting from the landscaping on the outside, and the inside will be illuminated by a chandelier and cove lighting. The color bands will be approximately six inches wide; and the solid timber beams will vary in size from 6" X 8" to 12" X 14". Agency Member Sniff asked about the height of the ceilings, and how many people the building would accommodate. Mr. Altevers stated the heights range from 10' to 15"6", and the building will accommodate up to 400 people. He also confirmed the clubhouse design is approximately 1,000 square feet larger than previously proposed, and that ceiling fans can be used to circulate air in the high ceilings. Agency Member Adolph asked about the possibility of using the long hallway for lockers instead of being wasted space. Mr. Altevers stated they anticipate the hallway being used as a bag drop area. Agency Member Adolph noted the interior elevations don't show the fireplace at the entrance, and Ms. Amy Altevers, of Altevers Associates, stated it will be similar to the outside design. Agency Member Adolph stated he supports the changes made to the cart barn area. Agency Member Henderson stated she is very impressed with the dome, especially since it has been opened up. Chairman Kirk expressed appreciation for the presentation and photo simulation. He feels the cart barn design is much better, and asked if staff is happy with it. Randy Duncan, representing Landmark Golf, responded, "Yes." Chairman Kirk inquired about the colors used for the dome and the design of the top element. Mr. Altevers stated the patterns and colors still need to be designed, but assured him they will not be washed-out colors. He stated the top element of the dome is a stone copula to decorate the dome. Chairman Kirk asked if any door surrounds would be used on the outside where they are not being used on the inside of an opening. Mr. Altevers stated there would be some at the board room, conference room, and golf shop, but they 027 I. 6 Redevelopment Agency 3 May 21, 2008 Adjourned Meeting Minutes didn't feel it was needed on the inside. Chairman Kirk stated the use of palm trees has significantly mitigated his concerns about the horizontal plane of the roof. He asked if the perspective was done before completing a study of the dome, to which Mr. Altevers responded that it was not. Agency Member Sniff stated he would like to see some banding differentiation on the exterior of the tower leading to the dome to provide a better sense of design. Chairman Kirk stated he would like to see more detail on the tower in the final design. Ms. Altevers then reviewed the interior design, including materials to be utilized for paving inside and outside of the building, wall finishes, upholstery, lighting, dining areas, bar area, banquet seating area, board room, restrooms, and locker rooms. Agency Member Henderson asked about the size of the chandelier in the entrance. Ms. Altevers stated it has not yet been determined, but will be scaled to the area. Agency Member Henderson commented on the light color of the carpet, the gothic look of the chandeliers in the dining room, and asked if red chairs are proposed in the interior. Ms. Altevers stated they are still working on carpet colors; as for the chandeliers, the chain will be different and shades will be added. She confirmed no red chairs are proposed. In response to Agency Member Adolph, Ms. Altevers confirmed area rugs will be fastened down in areas where tripping is a concern. She also addressed his concern about the difficulty of moving stacking chairs on the carpet, stating carpet glides will be used on the dining and banquet chairs and casters on the bar chairs. Agency Member Sniff asked about any plans for water features or inset lighting along the walls, and if the carpeting would be fire resistant. Ms. Altevers stated no water features or inset lighting are proposed, and confirmed the carpeting and fabrics will be fire resistant. Agency Member Sniff also asked about the height and adjustability of the light fixtures, and the possibility of using partition walls for added privacy in any of the rooms. Ms. Altevers stated the chandeliers will be 8 to 9 feet high, and have dimmer controls. She further stated the ballroom will have two walls, and the board room could be used as a private dining area. Agency Member Osborne suggested the possibility of using teak wood instead of wrought aluminum for patio seating because of heat from 029 Redevelopment Agency 4 Adjourned Meeting Minutes May 21, 2008 the sun. Ms. Altevers stated the wrought aluminum will get warm, but not hot, and the teak wood would be heavier and more expensive. Agency Member Osborne voiced concern about the size of the board room. Ms. Altevers stated the table seating can be increased to accommodate 14 chairs, and a few chairs can be added along the side wall. Agency Member Sniff stated he believes there will be a demand for private areas. Chairman Kirk inquired as to how a group of 20 to 30 people could be accommodated. Ms. Altevers referenced the possibility of outdoor seating, or having partition walls available. In response to Agency Member Sniff, Mr. Altevers stated the glass will be a light solar bronze tone, and a skylight will be utilized in the hallway going into the golf shop. Agency Member Adolph asked about the availability of umbrellas on patio areas to deflect the sunlight. Mr. Altevers stated the plans call for umbrellas near the trellis area. In response to Agency Member Osborne, Mr. Altevers stated heaters will be available, and misters for cooling can be added along the back wall in the patio area. Chairman Kirk suggested a solar study of the patio areas would be beneficial, and inquired about a theme for the artwork. Ms. Altevers stated the artwork theme, which they do not have at this time, will tie in to the hacienda atmosphere. Yul Roe, of HAS Landscape Architects, reviewed various aspects of the site plan including a reduction in the lake size, arrival and cart staging areas, and parking. Agency Member Osborne inquired about the surface proposed for the staging area, and about any plans for an outside grill. Mr. Roe stated pavers will be used with tree grates around the date palms. As for plans for an outside grill, he stated there will be a snack bar. Agency Member Sniff questioned Medjool Date Palms being the most appropriate type of date tree to use. In response to an inquiry by Chairman Kirk, he stated date trees about 15 feet high that have not been moved multiple times should be fine to use. .... , 030 Redevelopment Agency 5 May 21, 2008 Adjourned Meeting Minutes In response to Chairman Kirk, Mr. Roe confirmed the tree grates will be of sufficient size to accommodate the ball of the trees if any have to be removed. Agency Member Adolph commented on the importance of harvesting the date trees to avoid having dates fall to the ground. He also suggested not using an abundant number of citrus trees because they attract bees. Agency Member Henderson commented on the importance of having shade in the staging area and adequate space for the trees to grow. Mr. Roe stated the tree fronds will overlap as they mature, and they anticipate the trees growing to approximately 18 feet high. Chairman Kirk stated he feels a more obvious drop-off area is needed for self -parking. Mr. Roe confirmed the area can be widened, and Assistant City Manager -Development Services Evans noted there is enough space to include a pull-out lane. Chairman Kirk asked what will make this clubhouse special from other clubhouses. Mr. Roe stated he feels the introduction of date palms in the entry will have a dramatic effect. Chairman Kirk stated he would like to see something special or unique incorporated. Mr. Roe explained they have not gone to that level of detail yet. Chairman Kirk requested they come back with something dramatic to review. Ron Nester, of Nestor+Gaffney Architects, reviewed the qualifications the project meets for LEED certification. He stated additional LEED points are possible through reduction of mercury in lighting fixtures, exemplary landscape irrigation, green cleaning methods, and golf cart trails. In response to Agency Member Osborne, Mr. Nester stated about 12%% of the electricity generated for the clubhouse will be from solar panels. Assistant City Manager -Development Services Evans noted solar panels will be a large percentage of the total amenity package cost for LEED certification. He noted LEED only allows credits for up to 1234% of the building. Agency Member Osborne stated he is more concerned about energy and water efficiency than he is about LEED points. He questioned the cost effectiveness of spending $500,000 to generate 12% of the facility's energy. Assistant City Manager -Development Services Evans 3 Redevelopment Agency 6 Adjourned Meeting Minutes May 21, 2008 stated LEED certification will allow the City to get a rebate of approximately $100,000 from Imperial Irrigation District. He stated the intent is to maximize energy efficiency and reduce long-term operation costs instead of just generating LEED points. He stated a suggestion has been made to consider firms that provide the upfront capital and install solar panels in order to receive a tax credit; the City would pay for the energy and get a reduced energy price for that percentage of the power. He stated staff is looking at different ways to finance the cost, but do not wish to delay the project. Chairman Kirk stated he believes the Agency is in agreement that energy efficiency is more important than LEED certification. Agency Member Sniff suggested one way to make the project special would be to enhance the entry ways with water features that include lighting and color. He feels the sign design could be of significant value, and suggested using pavers instead of just asphalt. Agency Member Adolph suggested installing Inste-Hot for water heating as a water conservation measure. Mr. Nester stated they will consider it in the design. Agency Member Henderson commented on the importance of being leaders in energy efficiency, and the expense of the LEED brand. She noted solar energy will.not be less expensive until municipalities step forward and showcase it by using it in their buildings. Regarding the idea of coming back with something dramatic, she suggested using the logo or a monument to provide a dramatic accent at the clubhouse. She also referenced the possibility of using Art in Public Places funds. Chairman Kirk noted the capital cost of being energy efficient may not be as sensitive an issue as ongoing operation and maintenance costs. Assistant City Manager -Development Services Evans stated if the industry comes up with a more cost-effective solar panel, there may be additional opportunities in the future to construct carports near the canal and use solar panels. He also commented on the cost increases related to LEED certification, and requested direction from the Agency as to whether or not staff should pursue LEED certification. He noted LEED certification would make the SilverRock clubhouse unique because no other public clubhouses in the State have it. Agency Member Adolph questioned the concern, noting the project is already close to meeting the LEED Silver designation. Agency Member U 3 A- n L o -, Redevelopment Agency 7 May 21, 2008 Adjourned Meeting Minutes Osborne pointed out the LEED certificate alone will cost $30,000. Chairman Kirk noted the City's marketing budget for next year is $500,000, and he feels having the first public clubhouse with LEED certification will provide far more than $30,000 in marketing value. Agency Member Henderson noted the additional time component for LEED certification is also an issue. Assistant City Manager - Development Services Evans confirmed there are a number of elements where the LEED budget influences production of the project, including hard costs of the software, soft costs of the consultant time, and tracking everything on the job site. However, the hard and soft costs are already included in the projected cost of the project. Agency Member Sniff suggested skipping LEED certification and just building an energy efficient building. Agency Member Henderson noted skipping that would not change the timeframe at this point. Mr. Altevers stated the cost of LEED certification for the clubhouse at this time is approximately $1.1 million, including approximately $895,000 in additional costs to the contractor. In response to Chairman Kirk, he confirmed the $895,000 cost will be there regardless if the same level of efficiency is desired. Agency Member Henderson stated she will support going for LEED certification because of its advantages for marketing. She feels, however, it's important to get some expertise in the future to keep from having to go down the LEED pathway. Agency Member Osborne stated he doesn't feel $200,000 is worth the certificate. Agency Member Sniff agreed. Chairman Kirk stated he supports continuing with the LEED certification. Chairman Kirk recessed the Agency meeting at 7:42 p.m. and reconvened it at 7:54 p.m. Assistant City Manager -Development Services Evans presented a brief review of amenities that have increased costs beyond the budgeted amount. He stated that with the LEED program, the building cost is approximately $30.1 million plus contingencies. 03.3 i OJ Redevelopment Agency 8 May 21, 2008 Adjourned Meeting Minutes Agency Member Sniff asked how the project will be financed. Assistant City Manager -Development Services Evans stated staff anticipates the City being able to build the clubhouse with existing Redevelopment Agency funds and future revenues without having to sell additional bonds. Finance Director Falconer stated the clubhouse will be fully funded by next fiscal year, adding that approximately $10 million is generated each year of excess tax increment money in Project Area 1. He referenced the possibility of needing a brief two-year loan from the General Fund to make up the difference between the $30.1 million cost and the $25 million on hand. The second golf course is budgeted for $19 million in Fiscal Year 200912010, but construction is anticipated to take about 1'/2 years, and depending on the construction schedule, another short-term loan from the General Fund could be needed to complete the project. Assistant City Manager -Development Services Evans stated the second golf course will probably not happen in the timeframe budgeted because of market conditions. He stated at the next meeting staff will be coming back with the operational budget for the clubhouse, and presenting some contract amendments for design services. After that, staff will be able to come back with an outline of the budget. Agency Member Sniff stated he would feel more comfortable if the Agency had a relative certainty of when the hotels would be built. Assistant City Manager -Development Services Evans stated although the market is difficult at this time, Lowe Destination Development still has their equity firms in place and anticipates submitting for plan check in July 2008. He confirmed Lowe is not yet fully funded for construction. In response to Agency Member Adolph, Assistant City Manager - Development Services Evans stated staff anticipates being able to do the clubhouse without another bond, but will take an additional look at it to bring it back with the operational budget. Agency Member Henderson inquired about a statement in the staff report regarding the potential use of the clubhouse as an alternative emergency operations center. Assistant City Manager -Development Services Evans explained the clubhouse could be used as a field command center, but the generator would not be sufficient to handle a full emergency operations center. 039 L 6J Redevelopment Agency 9 May 21, 2008 Adjourned Meeting Minutes In response to Agency Member Osborne, Ms. Altevers confirmed they are comfortable that $2 million is a sufficient amount for the interior improvements, and added the amount includes some room for inflation. Mr. Altevers also confirmed the overall budget amount of $30.1 million is consistent with other clubhouses they have designed. Chairman Kirk asked for confirmation that the amount of the interior budget will be sufficient to achieve a high quality interior, to which Ms. Altevers responded, "Yes.' Agency Member Adolph asked if the acoustic material will be sufficient to absorb noise. Mr. Altevers stated the space decking will have acoustical material on top, plus carpeting and furniture. Agency Member Adolph pointed out the renderings presented do not accurately depict how the building will look when it is first constructed because it will take years for the landscaping to mature. He commented on the need for consistency, referencing prior concerns from Agency members about using too much ,water on the project, and the fact that an earlier suggestion was made today about adding more water features. In response to Agency Member Henderson, Ms. Altevers confirmed the octagon rug at the entrance is inset in the stone. Agency Member Henderson suggested they consider the possibility of wanting to move the rug out sometime in'the future. She also referenced the need for enough electrical outlets, including floor receptacles. Agency Member Sniff stated he would like to have the budget discussion at the next meeting before making a final decision. Agency Member Osborne expressed appreciation for an outstanding job by the design team, and stated he likes the idea of putting something for SilverRock in the front. In response to Chairman Kirk, Assistant City Manager -Development Services Evans confirmed staff is looking for approval of the design at this time. Chairman Kirk reviewed the Agency recommendations for design considerations including adopting a special feature, a smoking area, bands around the tower, and pavers. He added the Agency would also like the design team to look at lifecycle costs and come back with 03f to Redevelopment Agency 10 Adjourned Meeting Minutes May 21, 2008 a financial plan. Assistant City Manager -Development Services Evans stated staff can come back with the financial plan at the next meeting, but it may take a little longer to obtain all the details for lifecycle costs. MOTION - It was moved by Agency Members Osborne/Sniff to tentatively approve the design package as presented with information coming back on lifecycle costs and a financial plan. Agency Member Henderson voiced concern about delaying the project, and questioned staff being able to present anything new in the budget that hasn't already been discussed. Chairman Kirk noted the motion gives authority to expend funds per the design details presented. Due to the market changes from two years ago, he stated he would like to know how it relates to hotel development, the second golf course, and cash flow. In response to Agency Member Henderson, Assistant City Manager - Development Services Evans confirmed it is staff's understanding that the motion allows them to move forward with complete engineering and design. Motion carried unanimously. STUDY SESSION - None CHAIR AND AGENCY MEMBERS' ITEMS - None PUBLIC HEARINGS - None ADJOURNMENT There being no further business, it was moved by Agency Members Sniff/Osborne to adjourn. Motion carried unanimously. Respe ly submitted, C. i��L VERONICA J. NTECINO, Secretary City of La Quinta, California 03_9 Uo � �� ;. c.. �;, ��� e � AJi��y � dr, ��ia � �-i� '� ,i 4.�. fr � �� � -� �� b' �� _ -, >r. V A� � INNR4i ��.' 7 5 a t t q sy r� ,; i A � t � �� �y 11 A � \ �lN I �_ � ..� ,� '�il. ' ,. �k � t.. � �4L �I Y i. ,. >. E i} _ _ '.ki `�lct � .:�' � J �? �..5 $j i � �� 5�k� iF:�� ;1.. i �W �. ,: `n„.� ` �� ����. . P Y ar Il Jtltl �� ' r L 11 iaj� rtl�l Fe i a Iffml t►�1, 1 ?titi I iql I �1 , f ,T i- � j•A. 7` ji § ) e -d§/o§ $| wjil|i/$ |§/o \\ /\ ! "}� \ T r � � | � ! � | � ! i §\ ! (� . - —_ -sit ^�-7p� � ! | ! | � | ! | ° 046 y; 8r g a M's s - - o r _t Lead S S S z $ tl i3 2 N` b i e [2 C 04� Redevelopment Agency Minutes 3 August 5, 2008 CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED AUGUST 5, 2008. 2. APPROVAL OF PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE (PS&E), AND AUTHORIZATION TO ADVERTISE FOR BID THE PM10 CONTROL AND TEMPORARY PARKING LOT AT SILVERROCK RESORT, PROJECT NO. 2008-07. 3. APPROVAL OF AN AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT (ENA) BY AND BETWEEN THE LA OUINTA REDEVELOPMENT AGENCY AND VIP MOTORCARS, LTD., FOR PROPERTY LOCATED NEAR HIGHWAY 111 AND DUNE PALMS ROAD. 4. APPROVAL OF AN AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT (ENA) BY AND BETWEEN THE LA OUINTA REDEVELOPMENT AGENCY AND DESERT CITIES DEVELOPMENT, INC., FOR PROPERTY LOCATED NEAR HIGHWAY 111 AND DUNE PALMS ROAD. MOTION — It was moved by Agency Members Sniff/Adolph to approve the Consent Calendar as recommended. Motion carried unanimously. BUSINESS SESSION 1. CONSIDERATION OF SILVERROCK RESORT CLUBHOUSE SITE DEVELOPMENT PLANS. Assistant City Manager -Development Services Evans presented the staff report. Chuck Shepardson, representing HAS Design Group, reviewed revisions to the site plan regarding landscaping, traffic areas, entry/arrivals, cart staging area, and the event lawn. In response to Agency Member Henderson, Mr. Shepardson confirmed water use for the entire site has been calculated, and it came in under the new calculations from the Coachella Valley Water District (CVWD). Chairman Kirk referenced previous concerns raised about a target golf - like experience on the second course, which he expects would mean G8IQ' Redevelopment Agency Minutes 4 August 5, 2008 more water use, and asked if that had been included with the water calculations. Mr. Shepardson stated an increased amount of turf has been included through negotiations with CVWD, as well as added acreage for retention and increased observation areas for the tournament. In response to Agency Member Adolph, Mr. Shepardson confirmed that includes the lake in front of the clubhouse. Agency Member Henderson asked if the specially -cast silver rock blend design stonework that was discussed in the beginning, still being considered on the columns and around the clubhouse. Public Works Director Jonasson confirmed the veneer on the entry walls is tied to the comfort stations, and will compliment the pavers. Agency Member Osborne asked about the grade difference between the clubhouse and parking lot and the use of non -potable water. Mr. Shepardson there is a two -foot differential between the clubhouse and secondary entry, and confirmed non -potable water will be used for irrigation into the lake. Assistant City Manager -Development Services Evans explained the intent is to use canal water year-round, but well water can be supplemented to provide better water quality for special events. Agency Member Osborne asked about the use of cactus at the golf course, and the signage logo at the clubhouse. Mr. Shepardson stated cactus, if used at all, would only be in remote areas away from play. He stated the signage logo will be separate and mounted to a silver steel sign, matching the current logo. In response to Agency Member Osborne, Assistant City Manager - Development Services Evans stated staff is working with Altevers on the sunlight angles. He stated they recommend not blocking it with structure, but rather have a roll -down shade in a recessed coffer. He explained the shades could help reduce sunlight exposure in the interior of the building, especially on the east or west sides of the building in the morning and late afternoon. In response to Agency Member Sniff, Mr. Shepardson stated the sidewalks will be colored concrete with a brushed or acid wash finish. He confirmed the building designs are solely developed for the architectural style provided by Altevers. � Gi Redevelopment Agency Minutes 5 August 5, 2008 Agency Member Sniff voiced concern about reducing the number of date palms. He suggested planting a total of 24 in groups of three in the parking lot, as opposed to clustering the trees, which inhibits growth of the leaves. In regard to architecture, he stated he likes the arch effect better than a straight line, and suggested removing the trellis above the gate. He inquired about the irrigation, noting some items require more water than others. Mr. Shepardson stated different size emitters will be used to accommodate the various types of plant material. Agency Member Sniff suggested using succulent cactus, such as Night Blooming Cereus, in various outlying areas of the site. In regard to varying levels of ground area, he asked how puddling of water would be handled. Mr. Shepardson stated the grades will be slightly sloped with any runoff directed to the golf course or the lake. Agency Member Adolph noted date palms are messy, and will have to be maintained to avoid having fruit on the ground. He voiced concern about the costs to build this according to the site plan, and stated he would not be supportive of going beyond the budgeted amount. Agency Member Sniff stated the date palms should be planted in areas that are easily serviced. In regard to costs, he voiced concern about there being any significant changes to the design, and noted there may be a different Council after the election. He questioned the need for urgency to move forward when there is some uncertainty regarding the size and design of the hotel, as well as when it will be built. In response to Chairman Kirk, Assistant City' Manager -Development Services Evans stated staff anticipates coming back in two or three months with a fiscal evaluation of the clubhouse operational costs. The Agency will then look at the construction market and overall tourism market, and make a determination before the end of the year whether or not to build the project this year or in the future. Agency Member Henderson inquired about the number of seats in the rendering of the event lawn. Assistant City Manager -Development Services Evans stated the event tent is designed to accommodate 200 for dinner. Agency Member Henderson suggested using the silver SR logo wherever a decorative insert exists in the center of the rustic gates, and arching the trellis for the bougainvillea above the gate to lessen the ranch look. She further suggested harvesting the dates from the date palms to sell in the gift shop. Redevelopment Agency Minutes 6 August 5, 2008 Chairman Kirk asked if the traffic calming device on the main road would be elevated or decorative. Public Works Director Jonasson stated that has not yet been designed, but the intent is to have something that will get the drivers' attention. Chairman Kirk stated he would not mind seeing elevated calming devices. He also inquired about the use of pavers, to which Assistant City Manager - Development Services Evans responded that they have been brought out into the street, but are the same amount as before. Chairman Kirk asked if artificial turf had been considered in areas not utilized for active or passive use. Mr. Shepardson stated around the staging area would probably be the only application. Chairman Kirk asked for a consensus regarding the number of date palms to be used. Agency Member Henderson stated she is not set on any particular number of date palms. Agency Member Osborne pointed out they do not provide much shade. Chairman Kirk stated he agrees with adding a few more date palms, but wished to see them planted in areas that are easily maintained. He suggested using a limited amount of cactus, and using trellises where some radius is needed. MOTION - It was moved by Agency Members Osborne/Adolph to approve the SilverRock Resort Clubhouse Site Plan as submitted with the direction provided by the Agency Board. Motion carried unanimously. STUDY SESSION - None CHAIR AND AGENCY MEMBERS' ITEMS - None PUBLIC HEARINGS - None d (J5 _ »- � \ � � \� � v-v.: .� ,, \� ©` , � ? < �� §, «-,��\:�} %\: « :©� y � � y < .aa „ J2: � v§.,� \� 7 . � ��2\��� � � �\ \ � /� � �� � f\ƒ! � !� \��� � � ,�ygc����� .-.c:..� «� w, \2� - \ � { §»G� �� �/ :.� ��� � :� z� d��! : \ ! . Via\ ��,` ... - { • 1L.(H! li . ATTACHMENT _§! V \ j (\))? | !) £ !, Egg ATTACHMENT 11 f S I LVC K KOC K TM R E S O R T SilverRock Resort Financial Analysis Report Prepared For: City of La Quinta SilverRock Resort Prepared By: Landmark Golf Management Submitted: January 6, 2009 (91 1 SilverRock Resort Financial Analysis Report Table of Contents Part I Cover Letter 1 Part II -Assumptions General Assumptions 2,3 Important Dates 2 Projected Golf Rounds 3,4 Revenue Assumptions 4,5 Cost of Goods Sold 5 Expense Assumptions 5,6,7 Part III -Financials Pro Forma 8 SilverRock Resort Net Operating Income Chart 9 SilverRock Resort Net Income Chart 10 Part IV Golf Club Expense Comparison Table & Chart 11 C �? J r� Landmark Golf Management January 6, 2009 Ms. Edie Hylton City of La Quinta Community Services Director 78-495 Calle Tampico La Quinta, CA 92253 Dear Edie, The City of La Quinta and Landmark Golf Management, LLC entered into a Consulting Agreement dated August 4, 2008 allowing Landmark the opportunity to prepare for the City a Financial Analysis Report ("Report") addressing SilverRock Resort at build out. The Report enclosed herewith includes projected Revenues and Expenses for the operation of SilverRock Resort's golf facilities beginning with opening of the new Golf Clubhouse in 2010, through the build out of both the Boutique and Resort Hotels including the Jacobsen & Hardy golf course projected to open in 2015. SilverRock Resort's Financial Analysis Report is based on estimates, assumptions and other information developed by Landmark Golf Management, LLC from its independent research efforts, general knowledge of the industry and consultation with representatives of the golf industry. No responsibility is assumed for inaccuracies in reporting by the City of La Quinta, its agents and representatives or any other data source used in preparing this projection. No warranty or representation is made by Landmark Golf Management, LLC that any projected values or results contained in the Financial Analysis Report will actually be achieved. Landmark Golf Management looks forward to continuing to work with you and all representatives of the City of La Quinta as this exciting project comes to fruition. Respectfully Submitted, Landmark Golf Management, LLC 74-947 Highway]]], Suite 200, Indian Wells, California 92210 Telephone: (760) 776.6688 Facsimile: (760) 776.6686 SILVERRoc r R E 5 0 R T Financial Analysis Report Assumptions January 6, 2009 GENERAL ASSUMPTIONS Bob Hope Chrysler Classic: It is assumed in this report SilverRock Resort will be utilized as a Bob Hope Chrysler Classic facility through the year 2017. Also assumed is that the second golf course (Jacobsen & Hardy) will be a PGA Tour caliber golf course and if the opportunity is presented, it will be a caliber that can be included into the Bob Hope Classic's rotation. It is assumed in this Report, that only one (1) of the two (2) SilverRock Resort courses will be utilized during each Bob Hope Classic. Important Dates: • Permanent Clubhouse Opening, Summer 2010 • Spa Boutique Hotel, Phase 1, 112 Rooms, Online April 2013 • Spa Boutique Hotel, Phase 2, 113 Additional Rooms, April2014 • Ranch Villas, 50 Rooms, Available April 2014 • Resort Hotel, Phase 1, Opens with 141 Rooms, August 2015 • Jacobsen & Hardy Golf Course Opens, November 2015 • Resort Hotel, Phase 2, Final 141 Rooms, August 2016 • Lake Casitas, 50 Rooms, Become Available August 2016 • Golf Casitas, Brings Online 72 Rooms, February 2017 The above information was provided by the City of La Quinta on December 18, 2008 and utilized to formulate this Report. Fiscal Year: All projected revenues and expenses are forecasted on a fiscal year, July 1 through June 30. Economy: This Report is based upon long term historic trends and experiences in the Coachella Valley. Green Fees: In this Report, a green fee includes golf cart and warm-up range balls. It is assumed that Guests of a La Quinta Resident will continue to be offered a discount rate as accompanied guests of La Quinta Resident card holders. A La Quinta Resident's Guest rate represents a 20% discount on the prevailing posted rates and follows similar booking procedures as those extended to a La Quinta Resident card holder; booking three (3) days in advance. l JP Green Fee Rates: Upon completion, the green fee rates for the Jacobsen & Hardy Golf Course will be similar in price to those of Arnold Palmer Classic Course. Also, it is projected that green fee rates including Resident rates will increase nominally and stay in line with the competition and inflation. Inflation: An inflation rate of 3% per year was used to calculate forecasted expenses. Growth Rate: A volume and pricing combined growth rate of 3% was factored into projecting revenues for this Report. Jacobsen & Hardy Golf Course: The second golf course (total operation 36 holes) opens November 2015. Overseeding: Both courses will close for overseeding yearly during the fall and will alternate so one (1) course remains open while the other course is closed. Hotel Occupancy: Hotel occupancy is projected to average 70% on an annual basis. Hotel Golf Capture Ratio: Hotel capture ratio (percentage of occupied rooms nightly that will play golf) is projected to be 25% as presented below. Hotel Average Room Rate: This Report projects that the annual average room rate will be $190 per room night. Bed Tax: It was projected that bed tax will be 11 %- PROJECTED GOLF ROUNDS Year Hotel Rounds Resident Non -Resident Total Round Rounds Rounds 2012-2013 8 1,764 10,559 31,677 44,000 2013-2014 9 9,721 9,107 27,322 46,150 2014-2015 10 17,566 7,484�_ 22,450 47,500 2015-2016 11 25,708 ( 11,323 33,969 71,000 2016-2017 12 39,550 11,388 1 34,162 85,100 —J 2017-2018 13 43,435 11,841 35,524 90,800 4 Hotel rounds of golf played are projected in this report to equal the average of similar Golf ReSOrUHotels in the Coachella Valley which equates to an annual average of 25% of the occupied rooms. 4 When allowing for hotel rounds to be booked in advance and utilizing proper marketing, yield management and limited advanced Resident bookings the projected remaining mix of rounds played is projected to be: Resident (25%), Regular (30%), Twilight (10%) & Other (35%). REVENUE ASSUMPTIONS Banquet Revenue • In the initial year of Clubhouse operations (2010-2011), banquet sales will not achieve full capacity due to the lead time required to sell 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. It is projected that in the initial year of Clubhouse in operations, there will be approximately 35 banquets or $200,000 in gross banquet revenue. • In the second year of Clubhouse operations (2011-2012), it is projected that banquet gross revenue will be made up as follows; 2 banquets per week for the entire year (104 total banquets) averaging 125 people per banquet at $45 per person. This equates to $5,625 per banquet or $585,000 in annual gross banquet revenue. It is projected that in each subsequent year; a 3% growth factor, which includes volume and pricing, was used in forecasting total gross banquet revenue. Food & Beverage Revenue • It is projected when the Clubhouse opens; $18 per round was used to calculate Grill Room revenue which includes snack bar, Grill Room and beverage cart revenue. Each subsequent year, a 3% growth factor, including volume and pricing, was used to forecast future food and beverage revenue. Green Fee Revenue • Green fee revenue will increase as rounds of golf and average rate increase. It is projected that green fee rates will continue to be in line and/or competitive with competing golf facilities in the Coachella Valley. Green fee revenue will increase yearly and then jump significantly as the Jacobsen & Hardy Golf Course opens. Green fee rates for the second golf course will be similar to the Arnold Palmer Classic Course. Merchandise Sales • It is projected that with the increased size of the new Clubhouse, golf shop merchandise space will increase which allows for additional merchandise display area and selection of inventory. These improvements will increase merchandise sales. It is projected that merchandise sales will average $14.39 per paid round during the initial year the new Clubhouse is operational and that in each subsequent year, a 3% growth rate on the merchandise capture ratio was used to forecast future merchandise sales. ( DS Miscellaneous and Other Revenue • Consists of golf club rentals, golf club repairs, handicap fees, driving range fees, rider fees, 15 % of golf lesson revenue and Independent Contractor's Fees for outside teaching golf professionals. Other City Revenue • Consists of revenue generated from sales and renewals of La Quinta Resident Cards. Also accounted for was a one time contribution of $50,000 to the City of La Quinta from the Bob Hope Chrysler Classic, in the year 2007-2008, for the installation of turf, irrigation and soil preparation and contouring on the 45-acre parking lot site. Cost of Goods Sold Merchandise 55 % Food & Beverage 33 % The above cost of goods sold percentages (excluding labor and supplies) was used annually throughout this Report. EXPENSE ASSUMPTIONS Inflation: An inflation rate of 3% per year was used to calculate forecasted expenses. Golf Services: Includes golf professionals, merchandising sales staff, receiving staff and golf shop operational expenses. As the new Clubhouse opens, two (2) additional sales clerks will be added to help serve the increased retail merchandise area. Also Golf Services includes valet, bag room, starters, rangers and driving range staff plus supplies and operating expense for this department. Three (3) to four (4) additional part time staff were added to the Outside Service Department upon opening of the new Clubhouse. These additional staff members will help service the additional bag drop locations, valet and location of the proposed cart storage area. As the Jacobsen & Hardy Golf Course opens, eight (8) to ten (10) part time additional outside service employees will be required seasonally. Course Maintenance: Includes grounds maintenance staff, supplies, and materials. The existing parking lot and the Ahmanson Clubhouse area will continue to be maintained by Golf Course Maintenance as well as the new Clubhouse area which will be larger than an 18 hole facility usually requires. Also, the new water feature located at the Clubhouse will be maintained by Golf Course Maintenance which requires additional manpower and supplies. Water and electrical costs are also included which are the costs to irrigate the golf courses and properly maintain the lake systems. Water and electrical expenses were increased due to the new Clubhouse lake and the additional electrical pumping costs. L. 71 Food & Beverage: Includes food & beverage staff and expenses for the new Clubhouse. Food and 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. Due to the increased size of the new Clubhouse, additional staff will be added to service the snack bar, bar, Clubhouse dining (inside & outside dining) and kitchen. Additional banquet staff will be contracted as needed during certain banquet events. The food and beverage operating expenses were projected to be 65% of the food and beverage revenue which is based upon the average of similar Golf Resorts in the Coachella Valley. Marketing: Includes marketing, public relations, advertising, web page, collateral and tournament sales, etc. Additional marketing costs are projected to help promote new Clubhouse amenities. Additional advertising funds are necessary to promote and sell banquet events at SilverRock Resort's Clubhouse. Clubhouse: Includes Clubhouse expenses, maintenance/cleaning staff, landscape maintenance, parking lot and entry drive clean up. Roving patrol expenses to secure the entire property making up SilverRock is included in this Report. It is projected that utility expenses (electricity, telephone, cable, water, sewer, gas) will increase proportionally with the size of the new Clubhouse. Management Fee: The current Management Fee paid monthly is $90,000 per year. With the existing Management Agreement expiring in January 2010, it is projected in the Report that the Management Fee will increase to $150,000 annually effective January 2010. Based upon the ERA Report dated June 2002, an annual Management Fee of $300,000 was used to project the Management Fee upon the second golf course opening in November 2015. Insurance: Per the requirements stated in the existing Golf Course Management Agreement, this Report includes the cost for comprehensive golf club insurance, general liability, property, equipment and business interruption etc. Personal Property Lease Tax: SilverRock Resort is exempt, except for personal property taxes on equipment purchases or leases. This rate is projected at 1.6% annually. Golf Carts and Maintenance Equipment Leases: It is assumed that golf carts and maintenance equipment will be leased and both the maintenance equipment lease and the golf cart lease will increase in 2015-2016 or upon the Jacobsen & Hardy Golf Course opening. It is also assumed that SilverRock Resort will continue to lease all golf carts and golf maintenance equipment for the term of this Report. The expense of Capital Leases is included in depreciation and interest expenses. General & Administrative: It is projected that a Concierge will be added to the staff when the new Clubhouse opens. The Concierge will welcome, greet, direct guests and answer telephone calls. It was also projected that a Sales Manager will ��s become necessary. The Sales Manager will be responsible for selling banquets, special events, and golf events and also will be part of the coordination and planning process for golf operations at SilverRock Resort. In addition, G&A expenses (recruiting, payroll processing, equipment rental, office supplies, computer supplies, uniforms) will increase due to additional staff and a larger Clubhouse. Rental Payments: Consists of operating leases and rentals Bob Hope Expenses: Consists of additional supplies, materials and labor to prepare the golf course for the Bob Hope Classic Tournament. These requirements are directly related to PGA Tour specifications and are not negotiable. Other City Expenses: Consists of a portion of the Golf and Parks Manager's salary and benefits and other miscellaneous city expenses related to SilverRock Resort. Also included is the interest expense on the yearly subsidy advance. Capital Reserves: As stated in the Golf Course Management Agreement, it was projected that Capital Reserves will continue to equal 2% of total annual green fee revenue. It is also projected that Capital Improvement expenditures will be accounted for in Capital Reserves. Interest Expense: Consists of interest expense on Capital and Fair Market Value Leases which includes, golf course maintenance equipment, GPS units and golf carts. Depreciation Expenses: Consists of the depreciation of Capital and Fair Market Value Leases and Capital items purchased. Depreciation expenses will increase upon the Jacobsen & Hardy Golf Course opening November 2015. This is a result of added golf course maintenance equipment and golf carts needed to operate a 36 hole facility. Also, the number of GPS units will increase upon bringing an additional 85 golf carts for the second golf course which will increase the GPS lease. 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N W OJ uiwn cLfnmmiUf W4C Amu2 LLYY F �m qEOW=nmg°Lo«, w uo paf. m muYi ou id E mSwnz OF Qn NQLLF go Q.s�m?0? i20 a�C w y% �O i, ry0� Q% ;i`s ti0• E .Q �O ci ry ej ti 01 k O�ry Z t 009ti0 ti L ry0 Q 000 d ryoo0 0 f 0 er ti N O O O O i O O CD O O O O Off' O O O LLO O LO LO � T ER 61�} 6P} 44 sso- owooul a .lb 0 �L s1 ryO `s" ry0 f O ry 0 ^bry ry0 �a ry0 Qi ry� a x U) � yr ry O O O O O O O O O O O O O O O O O O O O O L -t:M N r r N ER 4* to d4 sso- ewooul Golf Club Expense Comparison Table Desert Willow IW Resort SRR @ 36 Holes ERA" Expenses 2008-2009 2008-2009 2015-2016' Golf Services $ 996,710 $ 1,350,000 $ 624,500 $ 650,000 Course Maintenance $ 3,101,849 $ 3,800,000 $ 3,500,000 $ 1,850,000 Food & Beverage $ 1,400,763 $ 2,100,000 $ 1,283,596 $ 467,000 G & A (includes marketing) $ 1,466,134 $ 1,300,000 $ 1,153,477 $ 1,240,000 Management Fee $ 485,000 $ 290,000 $ 300,000 $ 300,000 Total S 7.450.456 $ 8.840.000 $ 6.820.482 $ 4.507.000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 =° $5,000,000 o° $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Includes a 3 % annual inflation rate from 2008-2016 " Per the SilverRock Pro Forma Financial Performance in the ERA study prepared in 2002. Golf Club Expense Comparison Chart o5ey &°y acGe `ache `pA `fie°°tea �e �° G°Jy 1< �P Expense Category ❑DesertWillow aIW Resort ❑SRR @ 36 Holes ❑ERA"