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2023-26 Landmark Golf Management Amendment 7 - SilverRock Golf ManagementMEMORANDUM, U]I ORN1.1 DATE: 6/5/2024 TO: Jon McMillen, City Manager FROM: Monika Radeva, City Clerk RE: Landmark Golf Management - Amendment no. 7 to Golf Course Management Agmt to increase advance funds to $300,000 Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: JVJ_ Approved by City Council on June 4, 2024 Business No. 5 .a City Manager's signing authority provided under the City's Purchasing Police [Resolution No. 2023-008] for budget expenditures of $50,000 or less. Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): .Q Bid _❑ RFP 0 RFQ _❑. 3 written informal bids QSole Source F] Select Source 1-1 Cooperative Procurement Reauestina deuartment shall check and attach the items below as aunrooriate: QAgreement payment will be charged to Account No.: ✓� Agreement term: Start Date July 1, 2023 _ End Date June 30, 2026 _ ✓ Amount of Agreement, Amendment, Change Order, etc.: $ Advance Funds increased to $300,000 REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! L� El NOTE: a .a Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Oscar Mojica Date: 6/6/2024_ Bonds (originals) as required by the Agreement (Performance, Payment, etc.) Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) Business License No. LIC -0001185 Expires: 1/31/2024 Requisition for a Purchase Order has been prepared (Agreements over $5,000) AMENDMENT NO. 7 TO GOLF COURSE MANAGEMENT AGREEMENT This Amendment No. 7 ("Amendment 7") to Golf Course Management Agreement ("Agreement") is made and entered as of the 1St day of July 2024 ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation, and LANDMARK GOLF MANAGEMENT, LLC. ("Manager"). RECITALS WHEREAS, on or about July 1, 2013, the City and Manager entered into an Agreement to provide services related to managing golf course operations at SilverRock Resort; and WHEREAS, on or about July 1, 2018, the City and Manager executed Amendment No. 1 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2018 until June 30, 2019 ("Extended Term"); • Section 4.1.1 Management Fee. by increasing the Management Fee for a total not to exceed amount of $114,000 for fiscal year 2018/19; • Section 8.1 Termination by City granting the City sole discretion, without penalty or cause to terminate the Agreement on any date after June 30, 2019 with a minimum sixty (60) day prior Written Notice on early termination to Landmark; and WHEREAS, on or about June 19, 2019, the City and Manager executed Amendment No. 2 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2019 to June 30, 2020 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by suspending deposit from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2020; • Section 4.1.1 Management Fee by increasing the annual management fee by 4% for a total not to exceed amount of $119,000 for fiscal year 2019/20; and • Section 8.1 Termination by City granting the City sole discretion, without penalty or cause to terminate the Agreement on any date after June 30, 2020 with a minimum sixty (60) day prior Written Notice on early termination to Landmark; and WHEREAS, on or about June 16, 2020, the City and Manager executed Amendment No. 3 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2020 to June 30, 2021 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by suspending deposit from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2021; • Section 4.1.1 Management Fee by decreasing the annual fee by 5% to a total not to exceed amount of $112,632 for fiscal year 2020/21; and WHEREAS, on or about June 1, 2021, the City and Manager executed Amendment No. 4 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2021 to June 30, 2022 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by reinstating deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2022; • Section 4.1.1 Management Fee by implementing an annual increase to the annual fee, reinstating it to the previous not to exceed amount of $118,560 for fiscal year 2021/22; and WHEREAS, on or about June 21, 2022, the City and Manager executed Amendment No. 5 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for one additional year, from July 1, 2022 to June 30, 2023 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by reinstating deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2023; • Section 4.1.1 Management Fee by implementing an annual increase to the annual fee, reinstating it to the previous not to exceed amount of $124,488 for fiscal year 2022/23; and WHEREAS, on or about June 20, 2023, the City and Manager executed Amendment No. 6 and mutually agreed to amend: • Section 2.2 Management Term by extending the Term for three additional years, from July 1, 2023 to June 30, 2026 ("Extended Term"); • Section 3.10.1 Capital Improvement Funds by reinstating deposits from the Golf Course Accounts for the 2% Capital Improvement Funds until June 30, 2026; • Section 4.1.1 Management Fee by implementing a 5% annual increase to the annual fee, for a total not to exceed amount of $130,704 for fiscal year 2023/24 and an annual 5% increase for consecutive years; and WHEREAS, Section 5.1 Golf Course Accounts establishes that a Golf Course Account be established with a $250,000 Advance to be utilized to pay Golf Course Expenses, with such Expenses reimbursed by the City through a twice monthly invoicing process to replenish such Advance; and WHEREAS, the City and Manager mutually agree to execute Amendment No. 7 to the Agreement, raising the Advance amount established in Section 5.1 Golf Course Accounts by $50,000 to a total of $300,000. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: Section 5.1 Golf Course Accounts is amended as follows: The amount of Advance funds shall be raised by $50,000 from $250,000 to a total of $300,000 for the purpose of paying routine Golf Course Expenses. In all other respects, the Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5 and Amendment No. 6 shall remain in effect. IN WITNESS WHEREOF, the City and Manager have executed this Amendment No. 7 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation and Charter City J i en, City Manager Dated:/(a/ZC)2.4-r ATTEST: Monika Rad a, Cit Jerk City of La Quinta, California APPROVED AS TO FORM: William H. Ihrke, City Attorney City of La Quinta, California LANDMARK GOLF MANAGEMENT, LLC SIGNED IN COUNTERPART Andy Vossler, President & CEO Dated: NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: Section 5.1 Golf Course Accounts is amended as follows: The amount of Advance funds shall be raised by $50,000 from $250,000 to a total of $300,000 for the purpose of paying routine Golf Course Expenses. In all other respects, the Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5 and Amendment No. 6 shall remain in effect. IN WITNESS WHEREOF, the City and Manager have executed this Amendment No. 7 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation and Charter City SIGNED IN COUNTERPART Jon McMillen, City Manager Dated: ATTEST: SIGNED IN COUNTERPART Monika Radeva, City Clerk City of La Quinta, California APPROVED AS TO FORM: SIGNED IN COUNTERPART William H. Ihrke, City Attorney City of La Quinta, California LANDMARK GOLF MANAGEMENT, LLC CLA Andy Vossle+rj, President & CEO Dated:6- BUSINESS SESSION ITEM NO. 5 City of La Quinta CITY COUNCIL MEETING: ,lune 4, 2024 STAFF REPORT AGENDA TITLE- APPROVE SILVERROCK RESORT 2024/25 ANNUAL PLAN AND APPROVE AMENDMENT NO. 7 TO THE GOLF COURSE MANAGEMENT AGREEMENT WITH LANDMARK GOLF MANAGEMENT, LLC RECOMMENDATION A. Approve the SilverRock Resort 2024/25 Annual Plan. B. Approve Amendment No. 7 to the Golf Course Management Agreement with Landmark Golf Management, LLC.; and authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY • Landmark Golf Management LLC (Landmark) manages the SilverRock Resort golf course and is required to provide an annual operations plan for Council's review and approval. • The SilverRock 2024/25 Annual Plan (Plan) (Attachment 1) reflects the projected number of rounds, revenues, and operation costs. • The golf operations are projected to have a net loss of $230,000 due to several factors including increased operational expenses, re -allocation of resident card sales revenue and continued on-site construction. • Landmark has requested an increase to the advance amount due to inflationary impacts to golf course operating expenses. FISCAL iivirAL, i The General Fund is projected to underwrite $500,000 of the overall 2024/25 SilverRock expenses. The projected golf operations expenses (not including City staff oversight costs) are $5,476,252 and projected golf operations revenue is $5,248,776 for a net loss of $227,476. The City will also fund $310,000 for golf course and non -golf course management/oversight by City staff and will recognize $150,000 in resident card revenue, which is not currently listed in the Plan. All revenue and expenses will be included in the proposed 2024/25 City Budget. 291 SilverRock Golf Course Operations Revenue $5,248,776 Operations Budget -$5,476,252 Net Revenue $227,476 SilverRock PropertyMana ement/Oversi ht General Fund Advance 500,000 City Management/Oversight -310,000 Resident Card Revenue 150,000 Golf Course Net Revenue -227,476 Final Surplus/(Deficit) 112,524 The additional $50,000 advance will be a one-time transfer to the golf operations bank account to be utilized to pay normal operating expenses of the golf course. BACKGROUND/ANALYSIS In July 2013, the City entered into a Golf Course Management Agreement (Agreement) with Landmark. The Agreement requires an annual plan for golf operations. The Plan provides projected annual revenues and expenses, department costs, staffing and service levels. In 2023, Council approved Amendment No. 6 to the Agreement, extending the term through June 30, 2026. The Plan forecasts continuing the food service from the Ahmanson House and continuing the pro -shop from the temporary club house until the permanent club house opens. Additional assumptions include: 44,545 rounds of play; the average projected revenue is $108.53 per round, based on the total revenue (less food and beverage) divided by the total rounds. The average green fee is $98.93. The difference between revenue per round and the average green fee is the additional revenue generated from merchandise sales, and revenue from the driving range, including lessons. Revenue from the food and beverage operations is not included. • Minimum wage is proposed to increase $2.00 to $18 per hour on January 1, 2025. • Continuing the 2% annual contribution reserve as contained in Amendment No. the capital reserve is $625,000. of approximately $88,000 to the capital 2 to the Agreement. The current balance of • Increasing the annual management fee by 5% pursuant to Amendment No. 6. • Removing golf cart lease costs due to purchase of a new golf cart fleet in January 2024. 292 The proposed advertising budget is $113,787 and is included in the Marketing Department expenses ($171,186) on page 20 of the Plan. SilverRock will continue to be promoted as a premier golf destination, especially during hotel construction, via the internet, newspapers, magazines, directories, television, and radio. The golf course bank account operating amount was set back in 2013 at $250,000. This account is used to pay the normal operating expenses of the golf course by the Management Company and is replenished twice monthly upon submittal of an invoice with all corresponding documentation. Due to inflationary pressures on operational expenses, Management has requested that the advance fund be increased to $300,000 in order to be able to pay vendors in a timely manner. If this increase is approved, the proposed Amendment No. 7 (Attachment 2) will be executed to amend Section 5.1 of the Agreement to reflect this change. ALTERNATIVES Council may direct staff to make modifications to the Annual Plan. Prepared by: Bryan McKinney, P.E., Public Works Director/City Engineer Approved by: Jon McMillen, City Manager Attachments: 1. SilverRock Resort 2024/25 Annual Plan 2. Amendment No. 7 to Agreement with Landmark Golf Management 293 ATTACHMENT 1 LVEPP\OCK 0 R E S O R T SilverRock Resort -Arnold Palmer Classic Course 2024-2025 ANNUAL PLAN Prepared For: City of La Quinta SilverRock Resort Prepared BT. Landmark Golf Management Submitted: May 17, 2024 294 SILVERROCK RESORT Annual Plan Fiscal Year 2024-2025 Table of Contents Part I -Project Overview Project Fact Sheet 1 Mission Statement 2 Philosophy Statement 3 Organizational Chart 4 Key Employee Staffing 5 Part II -Assumptions 2024-2025 Assumptions 6, 7, 8, 9 Part III -Operational Financial Projections 2024-2025 Consolidated Income Statement 10 Part IV -Department Detail Golf Rounds and Revenue 1 1 Golf Shop / Merchandise 12 Carts, Bagroom & Range 13 Course Services 14 Golf Course Maintenance 15, 16 General & Administrative 17 Marketing 18 Clubhouse 19 Miscellaneous 20 Part V -Food and Beverage Department Detail 21 Part VI -Other Marketing Narrative Plan 22,23 295 SILVERROCK" R E S 0 R T PROJECT FACT SHEET COURSE NAME SilverRock Resort -Arnold Palmer Classic Course ADDRESS 79-179 Ahmanson Lane, La Quinta, Ca. 92253 TELEPHONE 1-888-600-7272 1-760-777-8884 WEBSITE WWW.SILVERROCK.ORG MANAGEMENT COURSE YARDAGE GRASS TYPES OWNER MANAGED BY DATE COURSE OPENED Randy Duncan, PGA, Director of Golf / General Manager Chris Hoyer, Golf Course Superintendent SILVER 7,239 PAR 72 GOLD 6,809 PAR 72 BLUE 6,313 PAR 72 WHITE 5,669 PAR 72 GREEN 5,089 PAR 72 RED 4,542 PAR 72 GREENS: FAIRWAY / TEES: ROUGHS: CITY OF LA QUINTA TIF DWARF TIF SPORT / 419 TIF SPORT / 419 LANDMARK GOLF MANAGEMENT, LLC 74-947 HIGHWAY 111, SUITE 215 INDIAN WELLS, CA 92210 PHONE: (760) 776-6688 February 14, 2005 5/17/2024 1 296 SILVERROCK RESORT Annual Plan Fiscal Year 2024-2025 Mission Statement "TO BE THE BEST" "TO HAVE THE BEST GOLF FACILITIES" "TO HAVE THE BEST GOLF COURSE CONDITIONS" "TO PROVIDE THE BEST SERVICE" SilverRock Resort is dedicated to providing the finest public golf experience. All Staff Members of the facility play an important role in our Mission. Staff is supported through training and resources to ensure success. SilverRock Resort aspires to represent ownership and management with the highest standard of service in the Golf/Resort Industry and produce superior golf course conditions to meet and exceed the goals. Goals and Objectives: To support our Mission Statement and to achieve the projected Annual Plan; SilverRock Resort will pursue the following goals and objectives: • To hire and train staff members that will provide a high standard of guest services and maintain the highest level of course conditions • To maintain and pursue an aggressive Marketing Plan that benefits/acknowledges the La Quinta Residents, local residents, avid tourist golfers and golfing public • To have each Department operate within their annual budget allowing SilverRock Resort to reach the net operating goals 5/17/2024 2 297 SILVERROCK RESORT Annual Plan Fiscal Year 2024-2025 PHILOSOPHY STATEMENT After nineteen and a half years of operations, an Annual Plan accommodated the operational start-up through and including grow -in, final construction of the Arnold Palmer Classic Course, a notable Grand Opening Celebration and four successful years as one of the home courses of the Bob Hope Classic. As the 2024-2025 Annual Plan is implemented, SilverRock will embark on its 20th year of operations. Focus will continue to be on broadening the awareness, marketability and noteworthiness of SilverRock Resort's Arnold Palmer Classic Course, golf facilities and amenities. The philosophy that Landmark Golf Management perpetuates at SilverRock Resort is: an operation that allows management to utilize golf industry best -practices in accommodating market-driven demands as market shifts may occur. Each golf course facility has its own personality and characteristics; therefore, each golf operation is unique to some degree and should be managed with personality and characteristics taken into consideration. Golf operators that adjust procedures to short and long term market and industry fluctuations are better suited to maximize opportunities. In this upcoming twelve months of operations, Landmark Golf Management will put forth every effort to best position SilverRock Resort as a place to frequent in the eyes and minds of the influential decision makers in the world of golf. BRAND PROMISE Discover the mystique of SilverRock Resort, the crown jewel of La Quinta and its golf legacy. Rich in both history and legend, the majestic Santa Rosa Mountains frame an unwavering commitment to an exceptional experience at SilverRock Resort. Our Promise: Exceptional in All, For All, Always. 5/17/2024 3 298 Annual Plan 2024-2025 SRR.xls City of La Quinta City Council & Staff City Manager Landmark Golf Management Management Team SilverRock - Randy Duncan General Mgr. / Director of Golf Golf Shop Golf Course Maintenance Accounting Head Golf Professional Superintendent Controller / Human Resources Asst. Golf Professionals Asst. SuperintendentAdmin. Asst. To Controller & GM Golf Shop Buyer Mechanic(s) Sales Associates Irrigation Technician Guest / Outside Service Spray Technician Outside Services Manager Greenskeeper(s) Carts/Bag Room ShuttleNalet Starters/Rangers Driving Range Administrative Asst. Food & Beverage F&B Manager Restaurant F&B Server(s) / Cart Attendent(s) Marketing & Sales Tournament Sales Manager 5/17/2024 4 299 Key Employee Staffing RUN DATE: 17 -May -24 EREEAREDaY: Landmark Golf Management 2024-2025 ANNUAL PLAN HEAD GOLF PROFESSIONAL (FULL TIME) 1 DEPARTMENT SUMMARY JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. GOLF OPERATION OUTSIDE SERVICES 0 0 0 0 0 0 0 0 MERCHANDISER (FULLTIME) 1 1 1 1 1 1 1 OUTSIDE SERVICES MANAGER (FULL TIME; 1 1 1 1 1 1 1 1 1 1 1 1 OUTSIDE SERVICES SUPERVISORS (FULL-- 1 1 1 1 1 1 1 1 1 1 1 1 DRIVING RANGE (PART-TIME) 1 1 1 1 1 1 2 2 2 2 1 1 CART/BAG/VALET/BAG DROP (FULL-TIME) 1 1 1 1 1 1 1 1 1 1 1 1 CART/BAG/VALET/BAG DROP (PART-TIME) 3 3 4 6 9 9 9 9 9 9 8 4 SHUTTLE DRIVER (PART-TIME) 1 1 1 1 2 2 2 2 2 2 0 0 GOLF SHOP HEAD GOLF PROFESSIONAL (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 IST ASSISTANT PROFESSIONAL (FULLTIM 0 0 0 0 0 0 0 0 0 0 0 0 MERCHANDISER (FULLTIME) 1 1 1 1 1 1 1 1 1 1 1 1 ASSISTANT PROFESSIONAL (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 SALES CLERKS (FULL TIME) 0 0 0 0 1 1 1 1 1 1 0 0 SALES CLERKS (PART TIME) 2 2 3 4 4 4 4 4 4 4 4 2 1 5 5 6 7 8 8 8 8 8 8 7 5 COURSE SERVICES STARTERS (PART TIME) 3 3 3 3 5 5 5 5 5 5 5 3 RANGER/MARSHALS(PART TIME) 1 1 1 1 5 5 5 5 5 5 4 3 4 4 4 4 10 10 10 10 10 10 9 6 GOLF COURSE MAINTENANCE SUPERINTENDENT (FULLTIME) ASST SUPERINTENDENT (FULLTIME) FOREMAN/SPRAY TECHNICIAN (FULLTIME HEAD MECHANIC / FACILITY MANAGER (FL ASST MECHANIC (FULL TIME) HEAD IRRIGATOR (FULL TIME) ASST IRRIGATOR (FULLTIME) GREENKEEPERS (FULL TIME) GRENSKEEPERS (PARTTIME) TOTAL COURSE MAINTENANCE STAFF FOOD & BEVERAGE F& B MANAGER / SUPERVISOR (FULL TIME 0 0 0 0 0 0 0 0 0 0 0 0 CHEF (FULLTIME) 1 1 1 1 1 1 1 1 1 1 1 1 COOK (FULL TIME) 1 1 1 1 1 2 2 2 2 2 1 1 PREP COOK (PARTTIME) 0 0 0 1 2 2 3 3 3 3 2 0 LEAD SERVER (FULL-TIME) 1 1 1 1 1 1 1 1 1 1 1 1 F& B WAIT/BEVERAGE CART/HALF(FULL TI 1 1 1 1 1 1 1 1 1 1 1 1 F& B WAIT/BEVERAGE CARTMALF(PART TI 2 2 2 1 3 4 4 4 4 3 2 1 BUSER/ DISHWASHER (PART TIME) 0 0 1 0 1 1 1 1 1 1 1 0 6 6 7 6 10 12 13 13 13 12 9 5 G&A DIRECTOR OF GOLF/GM (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 CLUB CONTROLLER (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 ADMINISTRATIVE ASSISTANT (FULLTIME) 1 1 1 1 1 1 1 1 1 1 1 1 CONSULTANT TO CONTROLLER 0 0 0 0 0 0 0 0 0 0 0 0 3 3 3 3 3 3 3 3 3 3 3 3 MARKET/NGITOURNAMENT TOURNAMENT SALES / GROUP COORDINAI 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOTAL EMPLOYEES 45 45 48 51 66 68 70 70 70 69 60 46 5/17/2024 5 300 SILVERROCK RESORT 2024-2025 ANNUAL PLAN 2024-2025 Assumptions Revenue Operations It is assumed all construction of hotel/commercial components will be paused during the fiscal year 2024-2025. This will again have a negative impact on golf course operations during the summer of 2024 and into the entire season of 2024-2025. It is also assumed, maximum revenue is not achievable given the current state of construction; unsightly construction fences, temporary dirt cart paths, construction noises/dust, temporary facilities, construction trash that consistently spill over to the course, reduced practice facilities, etc. In addition, access to the Ahmanson Ranch House and parking will continue to be limited which will result in a reduction in Food & Beverage Sales for the 2024-2025 fiscal year. However, all efforts will be made to make the experience the best it can possibly be, despite the current state of construction challenges at SilverRock. It is assumed the Permanent Clubhouse will not open during the 2024-2025 Fiscal Year. It is also assumed that Golf Operations will continue to operate out of a Temporary Clubhouse (Double Wide Trailers) located in the "dog bone" area adjacent to hole #2 tee boxes until a Permanent Clubhouse opens. The SilverRock Grill will remain open at the existing Ahmanson Clubhouse in its current location until the Permanent Clubhouse opens. Lastly, it is assumed, the golf course will remain "SilverRock Resort", the rebranding to "Talus Golf Club" may occur at a future date but not projected in the 2024-2025 Fiscal Year. New Turf Grass Trial This summer, a new turf grass trial will be introduced on the 5t" hole. The plan is to eliminate the existing turf (TifSport) on hole #5 and replant with various new varieties of Bermuda grass that have proven to transition quicker and possibly may not have to be overseeded in the desert. Hole #5 will be out of play from July through August 2024. To accommodate the closure of hole #5, hole #7, an existing par 5, will be split into two (2) holes making the course still have 18 holes. Golf & Merchandise • July -August, the last tee time will be 12:00 p.m. with the Golf Shop being open 6:00 a.m. to 2:00 p.m. daily. • Reduced traffic (due to ongoing construction) in Golf Shop will have a negative impact on merchandise sales from July through October 2024. 5/17/2024 6 301 SILVERROCK RESORT 2024-2025 ANNUAL PLAN Food & Beverage • The Ahmanson Ranch House and the Grill at SilverRock will continue to operate with reduced access and hours of operation during the summer of 2024, from July 1, 2024 through September 2024. Green Fees: A green fee includes golf cart and warm-up range balls. A combination of the various green fee rates and green fee mix of Regular, Twilight, and Resident play is anticipated to yield an average rate of $98.93 per round based on 44,545 annual paid rounds. The non-resident green fee rates for the 2024-2025 fiscal year are projected to increase approximately 3% but may vary depending upon market conditions. Green fee rates will continue to be based on market conditions, dynamic pricing and course utilization levels. La Quinta Resident rates will remain the same as the prior year; $60 (high season), $49 (shoulder seasons) and $35 (summer season). Accompanied La Quinta Resident Guests will continue to received 30% off prevailing posted rates (not including twilight or any discounted rates) and will follow similar booking procedures as extended to a La Quinta Resident Card Holder; booking three (3) days in advance. It is assumed the overseeding dates will be September 30 - October 31, 2024. Annual overseeding reduces revenues during these dates which is taken into consideration in these projections with the course being closed these dates. For fiscal year 2024-2025, it is also projected that aerification will occur in August 2024 and June of 2025 which reduces revenue for 5-7 days with each of these two (2) aerification cycles. Greens Fee Mix: Through proper marketing, yield management, and limited advanced Resident bookings the projected mix of green fees is: 33% Resident, 25% Public, 10% Public Twilight, & 32% Other (tournaments, wholesalers, juniors, resident guests, replays and discounts). Miscellaneous and Other Revenue: Is based on $4.04 per round. This consists of golf club rentals, golf club repairs, handicap fees, driving range fees, rider fees, and Independent Contractor's Fees (Teaching Professionals). Golf Shop Merchandise: Is based on retail sales of $5.56 per round. Resident Card Fees: All resident card distribution and renewals will be issued out of the Wellness Center for 2024-2025 Annual Plan. As a result, Annual Revenues of approximately $165,000 will be omitted from SilverRock's revenue projections. 5/17/2024 7 302 SILVERROCK RESORT 2024-2025 ANNUAL PLAN Cost of Goods Sold Merchandise 55 Food & Beverage 33% Expenses Mandated California Minimum Wage Increase: It is assumed, a new minimum wage increase to $18 per hour will be implemented on January 1, 2025. This $2 per/hour increase will have a significant impact on labor costs across all departments including, Outside Services, Golf Shop, Course Maintenance and Food & Beverage affecting approximately 40+ employees. For the 2024- 2025 Annual Plan, this mandated increase will be used to calculate new increased wages effective January 1, 2025. Golf Carts, Bag Room, and Driving Range: Includes outside service, bag room, and driving range staff plus supplies and operating expense for this department. Additional shuttle shifts will remain in this year's Annual Plan to shuttle customers down and back from the restaurant, driving range and practice area. This is a result of the location of the temporary golf clubhouse and the existing restaurant at the Ahmanson Ranch House. Golf Shop: Includes golf professionals, merchandising sales staff, receiving staff and golf shop operational expenses. Course Services: Includes course service staff consisting of course rangers/starters and related department supplies and materials. Golf Course Maintenance: Includes compensation and payroll related costs for the Golf Course Maintenance Superintendent, grounds maintenance staff, supplies, and materials. Overseeding dates are projected to be September 30 -October 31, 2024, which results in projected higher labor cost and supply costs during the annual overseeding process. Golf Course Superintendent Education, training and travel expense are included in the 2024-2025 Annual Plan. Water & Electrical: The 2024-2025 Annual Plan includes water and electrical costs to irrigate the golf course & properly maintain the lake system. This is accounted for in the Golf Course Maintenance budget. Projected Annual Electric costs of $236,340 will cover 100% of the facilities electric costs including, front entry waterfall, water well pump, golf course pump station, north village lake waterfalls & 5/17/2024 8 303 SILVERROCK RESORT 2024-2025 ANNUAL PLAN circulation pumps, cart storage area and both clubhouses. These expenses will continue to be budgeted in the 2024-2025 Annual Plan as water and electrical costs. Food & Beverage: Includes food & beverage staff and expenses for the temporary clubhouse. There is a separate Agreement for the Food & Beverage Department including the Liquor License arraneement between the Citv and Landmark Golf Manaeement. Marketing: Includes marketing, public relations, advertising, web page, collateral and tournament sales, etc. Refer to pages 22 & 23, for the Marketing Plan Narrative. Clubhouse: Clubhouse expenses, maintenance/cleaning staff, landscape maintenance, parking lot and entry drive clean up. Roving patrol expenses to secure the entire property of SilverRock continues to be included in this department's operating budget. Management Fee: For the 2024-2025 Annual Plan and per the Golf Course Management Agreement, Landmark's Management Fee will be increased 5% to $11,436 per month. Insurance: Per requirements of the Golf Course Management Agreement in the Annual Plan is the cost for comprehensive golf club insurance policy, general liability and equipment. Property and business interruption insurance has been removed from Landmark's insurance coverage. G&A: Expenses include General Manager, Controller & Administrative Assistant Salaries, Professional Fees, Payroll Processing Fees, Equipment Expenses and Equipment Rental. Personal Property Lease Tax: Exempt, except personal property taxes on equipment purchases or leases which are included in this Annual Plan. Capital Reserves: Capital Reserves of 2% of green fees will be allocated in the 2024-2025 Annual Plan upon City of La Quinta Staff direction. Golf Carts Lease: A new golf cart fleet was purchased by City of La Quinta in January 2024. As a result, the operating budget will not reflect golf cart lease payments for the 2024-2025 fiscal year budget. GPS Lease: The new monthly golf cart GPS rental/lease expense for the fleet of golf carts is $5,092 per month. Golf Shop Trailer Lease: Due to the Developer in default and not able to pay the lease for the Golf Shop Trailer and Restrooms, this expense of $5,200 per month will fall onto the Operations Budget. 5/17/2024 9 304 2024-2025 ANNUAL PLAN SilverRock Resort CONSOLIDATED INCOME STATEMENT aon ore. , Mau o.:o FOR FISCAL YEAR - JULY 2024 - JUNE 2025 rnanneoev. �.ecan �km.e DEPARTMENT BUDGET JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. ROUNDS ROUNDS 44,545 1,900 1,850 2,700 0 5,400 4,700 4,900 5,200 6,100 4,995 4,500 2,300 REVENUE GREEN FEES 4,406,783 95,760 93,240 186,354 0 577,800 453,315 526,505 652,860 759,755 505,244 417,375 138,575 MISC. REV/RANGE/CARTS/RENTALS 179,960 4,150 3,550 4,150 1,150 18,000 22,300 28,350 29,500 30,600 21,645 11,420 5,145 GOLF SHOP MERCHANDISE 247,518 5,510 5,365 9,450 0 29,700 28,200 29,400 36,400 42,700 27,473 22,050 11,270 FOOD & BEVERAGE 774,989 19,000 18,870 34,560 0 94,770 86,010 97,412 101,660 120,780 98,901 75,656 27,370 TOTAL REVENUE 5,609,250 124,420 121,025 234,514 1,150 720,270 589,825 681,667 820,420 953,835 653,263 526,501 182,360 COST OF SALES PRO SHOP 138,536 3,084 3,003 5,289 0 16,623 15,784 16,455 20,373 23,899 15,376 12,341 6,308 FOOD & BEVERAGE 221,939 5,455 5,541 10,213 0 27,440 24,652 27,661 29,039 34,380 27,832 21,551 8,175 TOTAL COST OF SALES 360,474 8,539 8,544 15,502 0 44,063 40,435 44,116 49,412 58,279 43,208 33,892 14,483 GROSS PROFIT 5,248,776 115,881 112,481 219,012 1,150 676,207 549,390 637,551 771,008 895,556 610,054 492,609 167,877 OPERATING EXPENSES GOLF CARTS\BAGS\RANGE 459,670 23,835 23,835 24,956 20,110 57,799 41,159 49,992 49,992 49,617 49,117 39,702 29,558 GOLF SHOP 281,235 14,461 14,461 15,461 12,546 27,174 28,351 32,026 30,511 30,511 29,970 26,755 19,005 COURSE SERVICES 139,295 4,015 4,015 4,565 1,000 15,334 15,509 17,217 17,167 17,167 17,492 15,448 10,365 GOLF COURSE MAINTENANCE 2,075,925 155,646 136,731 157,131 376,878 152,966 156,756 155,487 149,955 153,107 165,112 147,195 168,959 WATER & ELECTRIC COST 333,584 27,130 26,130 27,380 28,180 33,620 25,025 26,920 25,840 26,870 29,840 30,230 26,419 GENERAL & ADMINISTRATIVE 520,777 41,969 42,019 43,219 43,669 43,769 47,069 44,019 43,069 43,069 42,769 42,869 43,269 MARKETING 171,186 5,037 5,037 6,132 17,087 22,457 17,375 22,580 20,225 20,900 13,705 12,450 8,205 CLUBHOUSE 168,276 13,698 13,698 13,698 16,198 13,698 13,698 14,198 13,698 14,198 13,698 13,698 14,098 MANAGEMENT FEE 137,232 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 CAPITAL RESERVES 88,136 1,915 1,865 3,727 0 11,556 9,066 10,530 13,057 15,195 10,105 8,348 2,772 INSURANCE 55,200 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 PERSONAL PROPERTY LEASE TAXES 15,000 6,000 0 5,000 4,000 0 0 0 0 0 0 0 0 LEASES 421,264 31,672 31,672 31,672 31,672 36,822 36,822 36,822 36,822 36,822 36,822 36,822 36,822 FOOD & BEVERAGE 609,473 36,263 35,213 38,279 21,996 51,981 60,177 74,192 71,372 72,817 62,299 50,401 34,482 TOTAL OPERATING EXPENSES 5,476,252 377,677 350,712 387,257 589,372 483,212 467,044 500,019 487,744 496,309 486,964 439,953 409,990 NET INCOME (227,477) (261,796) (238,231) (168,245) (588,222) 192,995 82,346 137,532 283,264 399,247 123,090 52,656 (242,113) NET INCOME % -4.1% -210.49/6 -196.8% -71.7°/ -51149.8% 26.8% 14.0% 20.2% 34.5% 41.9% 18.8% 10.0% -132.89/6 Average Green Fee $98.93 $50.40 $50.40 $69.02 #DIV/0! $107.00 $96.45 $107.45 $125.55 $124.55 $101.15 $92.75 $60.25 Average $ Misc. Income per Rd $4.04 $2.18 $1.92 $1.54 #DIV/0! $3.33 $4.74 $5.79 $5.67 $5.02 $4.33 $2.54 $2.24 Average $ Merchandise per Rd $5.56 $2.90 $2.90 $3.50 #DIV/0! $5.50 $6.00 $6.00 $7.00 $7.00 $5.50 $4.90 $4.90 Total Average Revenue per Round $108.53 $65.48 F $65.42 $86.86 #DIV/0! $133.38 $125.49 $139.12 $157.77 $156.37 $130.78 F $117.00 $79.29 5/17/2024 10 305 2024-2025 ANNUAL PLAN SilverRook Resort RUN DATE: 17 -May -24 07:20 PM Pro ectione . Jul 2024 to June 2025 PREPARED BY: Laedm,& Golf Maeag,mem Golf Rounds Total JUL. AUG. SEP. IFOCT. I NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. Resident Rnds (Weekday) 7,573 323 315 459 0 918 799 833 884 1037 849 765 391 Resident Rnds (Weekend) 5,791 247 241 351 0 702 611 637 676 793 649 585 299 Sub -Total Resident Rnds 13,364 570 555 810 0 1620 1410 1470 1560 1830 1499 1350 690 of Total 0.30 Public Rnds (Weekday) 8,909 380 370 540 0 1080 940 980 1040 1220 999 900 460 Public Rnds (Weekend) 6,682 285 278 405 0 810 705 735 780 915 749 675 345 Sub -Total Public Rnds 15,591 665 648 945 0 1890 1645 1715 1820 2135 1748 1575 805 of Total 0.35 Public Twi (Weekday) 4,900 209 204 297 0 594 517 539 572 671 549 495 253 Public Twi (Weekend) 4,009 171 167 243 0 486 423 441 468 549 450 405 207 Sub -Total Twilight Rnds 8,909 380 370 540 0 1080 940 980 1040 1220 999 900 460 of Total 0.20 Other (Weekday) 4,009 171 167 243 0 486 423 441 468 549 450 405 207 Other (Weekend) 2,673 114 111 162 0 324 282 294 312 366 300 270 138 Sub -Total Other 6,682 285 648 945 0 1890 1645 1715 1820 2135 1748 1575 805 % of Total 0.15 Total Rounds 44,545 2,700 - 5,400 4,700 4,900 5,200 6,100 , Green Fees Resident Rnds (Weekday) $ 33.00 $ 33.00 $ 40.00 $ 49.00 $ 49.00 $ 49.00 $ 60.00 $ 60.00 $ 60.00 $ 49.00 $ 49.00 $ 49.00 Resident Rnds (Weekend) $ 33.00 $ 33.00 $ 49.00 $ 49.00 $ 49.00 $ 49.00 $ 60.00 $ 60.00 $ 60.00 $ 49.00 $ 49.00 $ 49.00 Public Rnds (Weekday) $ 55.00 $ 55.00 $ 65.00 $ 75.00 $ 140.00 $ 120.00 $ 130.00 $ 165.00 $ 165.00 $ 135.00 $ 125.00 $ 60.00 Public Rnds (Weekend) $ 65.00 $ 65.00 $ 100.00 $ 85.00 $ 150.00 $ 125.00 $ 140.00 $ 175.00 $ 175.00 $ 145.00 $ 135.00 $ 75.00 Public Twi (Weekday) $ 50.00 $ 50.00 $ 65.00 $ 80.00 $ 110.00 $ 105.00 $ 120.00 $ 135.00 $ 130.00 $ 100.00 $ 95.00 $ 65.00 Public Twi (Weekend) $ 60.00 $ 60.00 $ 95.00 $ 80.00 $ 115.00 $ 105.00 $ 125.00 $ 140.00 $ 135.00 $ 110.00 $ 100.00 $ 75.00 Other (Weekday) $ 55.00 $ 55.00 $ 65.00 $ 70.00 $ 125.00 $ 120.00 $ 120.00 $ 135.00 $ 135.00 $ 110.00 $ 85.00 $ 50.00 Other (Weekend) $ 65.00 $ 65.00 $ 105.00 $ 80.00 $ 135.00 $ 120.00 $ 120.00 $ 145.00 $ 145.00 $ 115.00 $ 95.00 $ 65.00 Golf Revenue Resident Rnds (Weekday) 387,023 $ 10,659 $ 10,379 $ 18,360 $ - $ 44,982 $ 39,151 $ 49,980 $ 53,040 $ 62,220 $ 41,608 $ 37,485 $ 19,159 Resident Rnds (Weekend) 299,118 $ 8,151 $ 7,937 $ 17,199 $ - $ 34,398 $ 29,939 $ 38,220 $ 40,560 $ 47,580 $ 31,818 $ 28,665 $ 14,651 Public Rnds (Weekday) 1,115,615 $ 20,900 $ 20,350 $ 35,100 $ - $ 151,200 $ 112,800 $ 127,400 $ 171,600 $ 201,300 $ 134,865 $ 112,500 $ 27,600 Public Rnds (Weekend) 911,854 $ 18,525 $ 18,038 $ 40,500 $ - $ 121,500 $ 88,125 $ 102,900 $ 136,500 $ 160,125 $ 108,641 $ 91,125 $ 25,875 Public Twi (Weekday) 507,100 $ 10,450 $ 10,175 $ 19,305 $ - $ 65,340 $ 54,285 $ 64,680 $ 77,220 $ 87,230 $ 54,945 $ 47,025 $ 16,445 Public Twi (Weekend) 443,876 $ 10,260 $ 9,990 $ 23,085 $ - $ 55,890 $ 44,415 $ 55,125 $ 65,520 $ 74,115 $ 49,451 $ 40,500 $ 15,525 Other (Weekday) 430,308 $ 9,405 $ 9,158 $ 15,795 $ - $ 60,750 $ 50,760 $ 52,920 $ 63,180 $ 74,115 $ 49,451 $ 34,425 $ 10,350 Other (Weekend) 311,891 $ 7,410 $ 7,215 $ 17,010 $ - $ 43,740 $ 33,840 $ 35,280 $ 45,240 $ 53,070 $ 34,466 $ 25,650 $ 8,970 Total Revenue 4,406,783 $ 95,760 $ 93,240 $ 186,354 $ - $ 57800 $ 453,315 $ 526,505 $ 652,860 $ 759,755 $ 505,244 $ 417,375 $ 138,575 Avg. Rate S 98.98 $ 50.40 $ 50.40 $ 69.02 #DIV/0! $ 107.00 $ 96.45 $ 107.45 $ 125.55 $ 124.55 $ 101.15 $ 92.75 $ 60.25 Misc Revenue Club Rental 42,175 $ 800 $ 750 $ 1,000 $ 3,900 $ 4,500 $ 6,000 $ 7,000 $ 7,500 $ 6,000 $ 3,500 $ 1,225 Driving Range Balls 102,000 $ 1,600 $ 1,500 $ 1,400 $ 10,000 $ 13,000 $ 17,000 $ 18,000 $ 18,500 $ 9,900 $ 7,425 $ 3,675 Rider Fees 22,190 $ 1,000 $ 1,100 $ 1,500 $ - $ 2,500 $ 3,100 $ 3,100 $ 3,100 $ 3,200 $ 2,850 $ 495 $ 245 Handicap Fees 4,595 $ 250 $ 200 $ 250 $ 650 $ 600 $ 700 $ 750 $ 400 $ 400 $ 395 $ - $ - Independent Instructor Fees 6,500 $ - $ - $ - $ - $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,500 $ - $ - Ball Retreival 2,500 $ 500 $ - $ - $ 500 $ - $ - $ 500 $ - $ - $ 1,000 $ - $ - Total 179,960 $ 4,150 $ 3,550 $ 4,150 $ 1,150 $ 18,000 $ 22,300 $ 28,350 $ 29,500 $ 30,600 $ 21,645 $ 11,420 $ 5,145 5/17/2024 11 306 2024-2025 ANNUAL PLAN SilverRock Resort BON DATE: 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management GOLFSHOP-61 TOTAL JUL. AUG. I SEP. OCT. NOV. DEC. JAN. I FEB. I MAR. I APR. MAY JUN. GOLF SHOP MERCHANDISE SALES TOTAL # OF ROUNDS 44,545 1,900 1,850 2,700 0 5,400 4,700 4,900 5,200 6,100 4,995 4,500 2,300 AVERAGE REVENUE / ROUND $5.56 $2.90 $2.90 $3.50 $2.50 $5.50 $6.00 $6.00 $7.00 $7.00 $5.50 $4.90 $4.90 TOTAL MERCHANDISE SALES $247,518 5,510 5,365 9,450 0 29,700 28,200 29,400 36,400 42,700 27,473 22,050 11,270 MERCHANDISE REVENUE Soft Goods Sales 185,638 4,133 4,024 7,088 0 22,275 21,150 22,050 27,300 32,025 20,604 16,538 8,453 Hard Goods Sales 61,879 1,378 1,341 2,363 0 7,425 7,050 7,350 9,100 10,675 6,868 5,513 2,818 TOTAL MERCHANDISE REVENUE 247,518 5,510 5,365 9,450 0 29,700 28,200 29,400 36,400 42,700 27,473 22,050 11,270 COSTOFSALES 55.97% 55.97% 55.9796 55.9796 #DIV/0! 55.97% 55.97% 55.97% 55.9796 55.97% 55.9796 55.97% 55.97% COS - Merchandise (58%) 143,560 3,196 3,112 5,481 0 17,226 16,356 17,052 21,112 24,766 15,934 12,789 6,537 Purchase Disc Taken - (5%) (7,178) (160) (156) (274) 0 (861) (818) (853) (1,056) (1,238) (797) (639) (327) Freight - Merchandise 2,153 48 47 82 0 258 245 256 317 371 239 192 98 TOTAL COST OF SALES 138,536 3,084 3,003 5,289 0 16,623 15,784 16,455 20,373 23,899 15,376 12,341 6,308 GROSS PROFIT 108,982 2,426 2,362 4,161 0 13,077 12,416 12,945 16,027 18,801 12,096 9,709 4,962 SALARIES AND BENEFITS Salaries and Wages 207,300 10,040 10,040 10,890 8,094 20,782 21,782 23,682 23,682 23,682 23,222 17,502 13,902 Payroll Taxes 20,212 979 979 1,062 789 2,026 2,124 2,309 2,309 2,309 2,264 1,706 1,355 Workers' Compensation 16,380 793 793 860 640 1,642 1,721 1,871 1,871 1,871 1,835 1,383 1,098 Health Insurance/Benefits 18,468 1,539 1,539 1,539 1,539 1,539 1,539 1,539 1,539 1,539 1,539 1,539 1,539 TOTAL SALARIES AND BENEFITS 262,360 13,351 13,351 14,351 11,061 25,989 27,166 29,401 29,401 29,401 28,860 22,130 17,895 OTHER EXPENSES Office Supplies 3,000 250 250 250 250 250 250 250 250 250 250 250 250 Dues and Subscriptions 2,300 0 0 0 0 0 0 0 0 0 0 2,300 Freight / Delivery 75 0 0 0 25 25 25 0 0 0 0 0 0 Travel 90 0 0 0 0 0 0 15 15 15 15 15 15 Uniforms 2,400 100 100 100 100 300 200 500 200 200 200 200 200 Telephone 1,320 110 110 110 110 110 110 110 110 110 110 110 110 Seminars/Training 3,690 150 150 150 500 0 100 1,250 35 35 35 1,250 35 Miscellaneous 6,000 500 500 500 500 500 500 500 500 500 500 500 500 TOTAL OTHER EXPENSES 18,875 1,110 1,110 1,110 1,485 1,185 1,185 2,625 1,110 1,110 1,110 4,625 1,110 TOTAL EXPENSES 281,235 14,461 14,461 15,461 12,546 27,174 28,351 32,026 30,511 30,511 29,970 26,755 19,005 Seminars/Training - Reimbursement for eligible golf shop employees (Director of Golf, Head Professional & 1st Assistant Golf Professional) for PGA Training, Education and Travel Expenses Office Supplies are made up of: Golf Cart Rental Agreements, Golf Club Rental Agreements, Gift Certificates & Merchandise Bags Uniforms- Each Full -Time Emp receives (1) shirt per month 5/17/2024 12 307 2024-2025 ANNUAL PLAN SilverRock Resort RUN DATE: 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management CARTS, BAGROOM & RANGE - 641 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. SALARIES AND BENEFITS Salaries and Wages 284,534 13,532 13,532 14,838 8,713 26,960 26,960 34,320 34,320 34,320 34,320 24,960 17,760 Payroll Taxes 35,424 1,685 1,685 1,847 1,085 3,357 3,357 4,273 4,273 4,273 4,273 3,108 2,211 Workers' Compensation 22,483 1,069 1,069 1,172 688 2,130 2,130 2,712 2,712 2,712 2,712 1,972 1,403 Health Insurance/Benefits 16,416 1,026 1,026 1,026 1,026 1,539 1,539 1,539 1,539 1,539 1,539 1,539 1,539 TOTAL SALARIES AND BENEFITS 358,857 17,312 17,312 18,883 11,512 33,986 33,986 42,844 42,844 42,844 42,844 31,579 22,913 SUPPLIES AND MATERIALS Range Expendable Supplies 6,750 600 600 150 150 1,800 150 1,000 1,000 150 150 500 500 Towel Replacement 2,182 120 120 120 120 185 195 250 250 250 250 250 72 Bottled Water 30,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Cart Supplies 1,850 0 0 0 500 500 500 75 75 50 50 50 50 Range Balls 15,000 0 0 0 0 15,000 0 0 0 0 0 0 0 TOTAL SUPPLIES AND MATERIALS 55,782 3,220 3,220 2,770 3,270 19,985 3,345 3,825 3,825 2,950 2,950 3,300 3,122 REPAIRS AND MAINTENANCE Equipment Repair - Golf 3,600 300 300 300 300 300 300 300 300 300 300 300 300 TOTAL REPAIRS AND MAINTENANCE 3,600 300 300 300 300 300 300 300 300 300 300 300 300 OTHER EXPENSES Expendable Supplies 525 25 25 25 50 50 50 50 50 50 50 50 50 Printing / Stationary 420 0 0 0 0 0 0 70 70 70 70 70 70 Cart Maintenance & Repairs 18,036 1,503 1,503 1,503 1,503 1,503 1,503 1,503 1,503 1,503 1,503 1,503 1,503 Freight / Delivery 450 75 75 75 75 75 75 0 0 0 0 0 0 Uniforms 5,200 0 0 0 2,000 500 500 0 0 500 0 1,500 200 Laundry and Linen 9,600 800 800 800 800 800 800 800 800 800 800 800 800 Miscellaneous 7,200 600 600 600 600 600 600 600 600 600 600 600 600 TOTAL OTHER EXPENSES 41,431 3,003 3,003 3,003 5,028 3,528 3,528 3,023 3,023 3,523 3,023 4,523 3,223 TOTAL EXPENSES 459,670 23,835 23,835 24,956 20,110 57,799 41,159 49,992 49,992 49,617 49,117 39,702 29,558 Expendable Supplies are made up of: - Scorecards, Tees, Pencils, Trash Bags, Cups & First Aid Supplies. Uniforms- Each employee receives 4 shirts, 1 hat per season 5/17/2024 13 308 2024-2025 ANNUAL PLAN SllverRock Resort RUN DATE: 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management COURSE SERVICES - 643 TOTAL JUL. I AUG. I SEP. I OCT. I NOV. I DEC. I JAN. I FEB. I MAR. I APR. I MAY I JUN. SALARIES AND BENEFITS Salaries and Wages 115,017 3,264 3,264 3,689 0 12,800 12,800 14,400 14,400 14,400 14,400 12,960 8,640 Payroll Taxes 11,214 318 318 360 0 1,248 1,248 1,404 1,404 1,404 1,404 1,264 842 Workers' Compensation 9,088 258 258 291 0 1,011 1,011 1,138 1,138 1,138 1,138 1,024 683 TOTAL SALARIES AND BENEFITS 135,319 3,840 3,840 4,340 0 15,059 15,059 16,942 16,942 16,942 16,942 15,248 10,165 SUPPLIES AND MATERIALS Expendable Supplies 1,050 50 50 100 100 100 100 100 100 100 100 75 75 TOTAL SUPPLIES AND MATERIALS 1,050 50 50 100 100 100 100 100 100 100 100 75 75 OTHER EXPENSES Uniforms 2,125 75 75 75 800 75 250 75 75 75 400 75 75 Safety Equipment 600 50 50 50 50 50 50 50 50 50 50 50 50 Miscellaneous 200 0 0 0 50 50 50 50 0 0 0 0 0 TOTAL OTHER EXPENSES 2,926 125 125 125 900 175 350 176 125 125 450 125 125 TOTAL COURSE SERVICES EXPENSES 139,295 4,015 4,015 4,565 1,000 15,334 15,509 17,217 17,167 17,167 17,492 15,448 10,365 Expendable Supplies are made up of: Clipboards, Paper (starter sheets, ranger sheets), Towels, Trash Bags Uniforms- Each employee receives 4 shirts, 1 hat per season 5/17/2024 14 309 2024-2025 ANNUAL PLAN SilverRock Resort BUN DATE: 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management MAINTENANCE DEPARTMENT -63 TOTAL I JUL. I AUG. I SEP. I OCT. NOV. DEC. I JAN. I FEB. I MAR. I APR. I MAY I JUN. SALARIES AND BENEFITS Salaries and Wages 847,222 61,134 62,684 62,684 72,107 71,081 74,210 75,284 75,232 75,238 75,238 72,079 70,250 Overtime Hourly Wages 30,518 0 1,824 1,824 16,000 2,052 0 0 2,106 2,500 2,106 2,106 0 Payroll Taxes 85,580 5,961 6,290 6,290 8,590 7,130 7,235 7,340 7,540 7,579 7,541 7,233 6,849 Workers' Compensation 41,298 2,910 3,042 3,042 3,940 3,449 3,532 3,584 3,648 3,661 3,648 3,498 3,344 Health Insurance/Benefits 100,863 8,106 8,106 8,106 8,106 8,619 8,619 8,619 8,619 8,619 8,619 8,619 8,106 TOTAL SALARIES AND BENEFITS 1,105,480 78,111 81,946 81,946 108,743 92,331 93,596 94,827 97,145 97,597 97,152 93,535 88,549 SUPPLIES AND MATERIALS Fertilizer 114,000 6,000 4,000 9,000 30,000 10,000 10,000 10,000 4,000 4,000 15,000 4,000 8,000 Flowers/Plants 13,000 0 0 0 6,000 0 0 5,000 0 0 0 2,000 0 Gas & Oils 81,600 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 Golf Course Accessories 16,000 0 0 0 14,000 0 0 0 0 2,000 0 0 0 Chemicals & Pesticides 47,000 14,000 1,000 8,000 8,000 2,000 0 0 3,000 0 6,000 0 5,000 POA Control 10,000 0 0 0 0 0 10,000 0 0 0 0 0 0 Sand/Mulch/Bunker 8,500 0 0 0 6,000 2,500 0 0 0 0 0 0 0 Seed 150,000 0 0 0 150,000 0 0 0 0 0 0 0 Small Tools 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Sod 15,500 7,500 2,500 1,000 0 0 0 0 0 0 0 0 4,500 Topdressing 19,000 3,000 0 3,000 0 0 0 0 0 0 0 3,000 10,000 TOTAL SUPPLIES AND MATERIALS 480,600 37,800 14,800 28,300 221,300 21,800 27,300 22,300 14,300 13,300 28,300 16,300 34,800 REPAIRS AND MAINTENANCE Buildings & Bridges 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Equipment 46,500 3,000 3,500 4,000 10,000 5,000 2,500 2,500 3,500 5,000 2,500 2,500 2,500 Irrigation System 29,000 4,500 4,500 2,500 2,500 1,000 1,000 1,500 2,000 2,000 2,500 2,500 2,500 Pumps 10,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 0 Lake Maint Contract 52,152 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 Trees 16,550 0 0 6,000 550 0 0 0 0 0 0 0 10,000 TOTAL REPAIRS AND MAINTENANCE 160,702 13,346 13,846 18,346 18,896 11,846 9,346 9,846 11,346 12,846 10,846 10,346 19,846 5/17/2024 15 310 2024-2025 ANNUAL PLAN SilverRock Resort Rote DATE: 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management MAINTENANCE DEPARTMENT -63 TOTAL I JUL. I AUG. I SEP. I OCT. NOV. DEC. I JAN. I FEB. I MAR. I APR. I MAY I JUN. OTHER EXPENSES Contract Services Soil/Tissue Tests Dues and Subscriptions Employee Education Equipment Rental Auto Expense Licenses and Permits Miscellaneous Supplies Propane/Natural Gas Safety Equipment & Training Telephone/DSL Waste/Trash Removal Uniforms & Linen/Towels TOTAL OTHER EXPENSES TOTAL MAINTENANCE EXP. (EXCL Landscaping) LANDSCAPE Contract Labor Landscape Wages & Benefits Small Tools Repairs & Maintenance - Drip Irrigation Uniforms TOTAL LANDSCAPE MAINTENANCE COURSE & LANDSCAPE MAINTENANCE TOTAL (EXCL UTILITIES) WATER & ELECTRICITY COSTS Water Cost Electricity Cost TOTAL WATER AND ELECTRIC COST TOTAL COURSE MAINTENANCE EXPENSES 4,500 0 0 1,500 0 0 0 1,500 0 0 0 1,500 0 1,100 0 0 0 0 0 0 800 200 0 0 0 100 3,900 50 50 50 50 50 50 50 1,000 2,400 50 50 50 3,400 200 150 150 1,000 600 200 200 200 200 200 200 100 4,800 400 400 400 400 400 400 400 400 400 400 400 400 4,300 100 0 0 250 0 50 0 0 1,000 2,900 0 0 1,200 100 100 100 100 100 100 100 100 100 100 100 100 5,950 750 750 750 500 500 500 500 500 500 500 100 100 360 30 30 30 30 30 30 30 30 30 30 30 30 3,850 200 100 750 800 500 400 400 200 200 100 100 100 5,700 475 475 475 475 475 475 475 475 475 475 475 475 6,288 524 524 524 524 524 524 524 524 524 524 524 524 11,040 920 920 920 920 920 920 920 920 920 920 920 920 56,388 3,749 3,499 5,649 5,049 4,099 3,649 5,899 4,549 6,749 6,199 4,399 2,899 1,803,170 133,006 114,091 134,241 353,988 130,076 133,891 132,872 127,340 130,492 142,497 124,580 146,094 4,500 264,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 264,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 1,025 100 100 100 100 100 75 75 75 75 75 75 75 4,250 250 250 500 500 500 500 250 250 250 250 250 500 3,480 290 290 290 290 290 290 290 290 290 290 290 290 272,755 22,640 22,640 22,890 22,890 22,890 22,865 22,615 22,615 22,615 22,615 22,615 22,865 2,075,925 155,646 136,731 157,131 376,878 152,966 156,756 155,487 149,955 153,107 165,112 147,195 168,959 97,244 8,630 7,630 8,880 9,680 14,480 3,785 5,680 4,600 5,630 8,600 11,730 7,919 236,340 18,500 18,500 18,500 18,500 19,140 21,240 21,240 21,240 21,240 21,240 18,500 18,500 333,584 27,130 26,130 27,380 28,180 33,620 25,025 26,920 25,840 26,870 29,840 30,230 26,419 2,409, 509 182,776 162,861 184,511 405,058 186,586 181,781 182,407 175,795 179,977 194,952 177,425 195,378 5/17/2024 16 311 2024-2025 ANNUAL PLAN SilverRock Resort RUN DATE: 17 -May -24 03:20 PNI Projections- July 2024 to June 2025 PREPAREDBY: Landmark Goff Management & A DEPARTMENT - 67 TOTAL JUL. I AUG. I SEP. I OCT. I NOV.JAN. j FEB.MAY JUN. bALAKILb AND BENEFITS 1,260 105 105 105 105 105 105 105 105 105 105 105 105 Salaries and Wages 311,607 25,967 25,967 25,967 25,967 25,967 25,967 25,967 25,967 25,967 25,967 25,967 25,967 Payroll Taxes 30,382 2,532 2,532 2,532 2,532 2,532 2,532 2,532 2,532 2,532 2,532 2,532 2,532 Workers' Compensation 24,622 2,052 2,052 2,052 2,052 2,052 2,052 2,052 2,052 2,052 2,052 2,052 2,052 Health Insurance/Benefits 61,776 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 TOTAL SALARIES AND BENEFITS 428,387 50 50 50 50 50 50 50 50 50 50 50 , REPAIRS AND MAINTENANCE 1,100 0 100 0 0 0 0 0 100 0 200 500 200 Equipment Repair 7,300 150 150 1,000 1,500 900 850 700 500 750 450 250 100 TOTAL REPAIRS AND MAINTENANCE 7,300 150 150 1,000 1,500 900 850 700 500 750 450 250 100 OTHER EXPENSES Office Supplies 1,260 105 105 105 105 105 105 105 105 105 105 105 105 Printing / Stationary 3,300 100 100 100 100 100 400 400 400 400 400 400 400 Postage 900 75 75 75 75 75 75 75 75 75 75 75 75 Recruiting / Relocation 1,200 0 0 150 150 150 200 150 200 200 0 0 0 Dues and Subscriptions 1,550 50 0 300 50 50 50 100 200 50 50 50 600 Freight / Delivery 600 50 50 50 50 50 50 50 50 50 50 50 50 Travel 1,100 0 100 0 0 0 0 0 100 0 200 500 200 Promotion 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Auto Expense 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Equipment Rental(Copier/Storage/Cell Phone) 13,200 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 Uniforms 2,000 150 150 150 350 150 150 150 150 150 150 150 150 Professional Fees (I.T. & Safety Fees) 18,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Seminars / Training 3,400 200 200 200 200 200 200 1,200 200 200 200 200 200 Payroll Processing 18,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Computer Supplies (POS Support Fees) 6,300 500 500 500 500 500 500 500 500 500 500 500 800 Bank & ADP Fees 1,080 90 90 90 90 90 90 90 90 90 90 90 90 Miscellaneous 6,000 100 100 100 100 1,000 4,000 100 100 100 100 100 100 TOTAL OTHER EXPENSES 85,090 6,120 6,170 6,520 6,470 7,170 10,520 7,620 6,870 6,620 6,620 6,920 7,470 TOTAL G & A EXPENSES 520,777 41,969 42,019 43,219 43,669 43,769 47,069 44,019 43,069 43,069 42,769 42,869 43,269 Uniforms- Benefit to be shared between GM & Controller Entertainment & Promotion - GM promoting property for potential clients 5/17/2024 17 312 2024-2025 ANNUAL PLAN SilverRock Resort MARKETING 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management MARKETING DEPARTMENT -66 TOTAL JUL. I AUG. I SEP. I OCT. I NOV. I DEC. JAN. I FEB. I MAR. I APR. I MAY I JUN. SALARIES AND BENEFITS 0 200 3,000 200 200 200 125 125 125 125 125 600 50 Salaries and Wages 15,000 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Payroll Taxes 1,463 122 122 122 122 122 122 122 122 122 122 122 122 Workers' Compensation 1,185 99 99 99 99 99 99 99 99 99 99 99 99 Health Insurance/Benefits 3,591 0 0 0 0 0 513 513 513 513 513 513 513 TOTAL SALARIES AND BENEFITS 21,239 1,471 1,471 1,471 1,471 1,471 1,984 1,984 1,984 1,984 1,984 1,984 1,984 OTHER EXPENSES Office Supplies Printing / Stationary Postage Contract Services Web Page Dues and Subscriptions Uniforms Telephone Civic, Community and Trade Show Public Relations Promotions / Meals Promotion - (Media, Vendor Days, etc) Advertising (Ad Purchases) Collateral Material - (Scorecards, Rack Cds, Tees, Pencils, Miscellaneous TOTAL OTHER EXPENSES TOTAL MARKETING EXPENSES 1,200 100 100 100 100 100 100 100 100 100 100 100 100 4,425 0 0 200 3,000 200 200 200 125 125 125 125 125 600 50 50 50 50 50 50 50 50 50 50 50 50 1,800 150 150 150 150 150 150 150 150 150 150 150 150 735 0 0 0 0 0 0 35 400 300 0 0 0 600 0 0 0 300 50 50 50 50 50 50 0 0 1,200 100 100 100 100 100 100 100 100 100 100 100 100 2,250 75 75 75 75 750 750 75 75 75 75 75 75 1,000 0 0 0 0 0 0 500 500 0 0 0 0 300 25 25 25 25 25 25 25 25 25 25 25 25 700 0 0 0 50 50 50 300 50 50 50 50 50 113,787 2,566 2,566 3,461 10,266 15,961 11,366 16,461 14,066 15,341 8,446 8,741 4,546 21,000 500 500 500 1,500 3,500 2,500 2,500 2,500 2,500 2,500 1,000 1,000 350 0 0 0 0 50 50 50 50 50 50 50 149,947 3,566 3,566 4,661 15,616 20,986 15,391 20,596 18,241 18,916 11,721 10,466 6,221 171,186 5,037 5,037 6,132 17,087 22,457 17,375 22,580 20,225 20,900 13,705 12,450 8,205 Promotion/Meals - Off property events (Chamber Mixers, Rotaries and entertaining potential clients) Promotion/Media/Vend or Days - Radio/TV Onsite Broadcasting. Vendor Days - Show casing property in exchange for positive publicity 5/17/2024 18 313 2024-2025 ANNUAL PLAN SilverRock Resort MARKETING 16 -May -24 11:20 AM Projections - July 2024 to June 2025 PREPARED BY. Landmark Golf Management TEMPORARY CLUBHOUSE -800 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. SUPPLIES AND MATERIALS 8,000 500 500 500 2,500 500 500 500 500 500 500 500 500 Expendable Supplies 2,400 200 200 200 200 200 200 200 200 200 200 200 200 Laundry Supplies 2,400 200 200 200 200 200 200 200 200 200 200 200 200 TOTAL SUPPLIES AND MATERIALS 4,800 400 400 400 400 400 400 400 400 400 400 400 400 REPAIRS AND MAINTENANCE 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Building Structures 3,600 300 300 300 300 300 300 300 300 300 300 300 300 Restaurant Repairs 8,400 700 700 700 700 700 700 700 700 700 700 700 700 Equipment Repair 8,400 700 700 700 700 700 700 700 700 700 700 700 700 TOTAL REPAIRS AND MAINTENANCE 20,400 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 OTHER EXPENSES Contract Services Cleaning 8,000 500 500 500 2,500 500 500 500 500 500 500 500 500 Telephone 21,000 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 Cable -Roadrunner 5,040 420 420 420 420 420 420 420 420 420 420 420 420 Water 7,296 608 608 608 608 608 608 608 608 608 608 608 608 Safety Equipment 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Propane Gas 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Flowers and Decorations 1,900 0 0 0 500 0 0 500 0 500 0 0 400 Building Security (Roving Patrol) 85,200 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL OTHER EXPENSES 141,636 11,478 11,478 11,478 13,978 11,478 11,478 11,978 11,478 11,978 11,478 11,478 11,878 TOTAL CLUBHOUSE EXPENSES 166,836 13,578 13,578 13,578 16,078 13,578 13,578 14,078 13,578 14,078 13,578 13,578 13,978 Expendable Supplies made up of: Locksmith, Trashbags, Lightbulbs, Mats, Items related to Maintenance of Clubhouse 5/17/2024 19 314 2024-2025 ANNUAL PLAN SilverRock Resort RUN DATE: 17 -May -24 03:20 PM Projections - July 2024 to June 2025 PREPARED BY: Landmark Golf Management MISC. DEPARTMENT - 980 & 990 TOTAL JUL. I AUG. SEP. OCT. NOV. I DEC. I JAN. I FEB. MAR. I APR. I MAY JUN. MISC OTHER EXPENSES 25,200 2,100 Management Fee - Fixed 137,232 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 11,436 FF&E Reserve (2.0%) 88,136 1,915 1,865 3,727 0 11,556 9,066 10,530 13,057 15,195 10,105 8,348 2,772 General Liability Insurance 55,200 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 Personal Property Taxes 15,000 6,000 0 5,000 4,000 0 0 0 0 0 0 0 0 LEASE EXPENSES Golf Cart Maint Trailer Leases Golf Course Maintenance Lease GPS Lease (Up -Link) Equipment Rental Other 295,568 23,951 17,901 24,763 20,036 27,592 25,102 26,566 29,093 31,231 26,141 24,384 18,808 25,200 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 62,400 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 252,600 18,150 18,150 18,150 18,150 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 60,864 5,072 5,072 5,072 5,072 5,072 5,072 5,072 5,072 5,072 5,072 5,072 5,072 20,200 1,150 1,150 1,150 1,150 1,950 1,950 1,950 1,950 1,950 1,950 1,950 1,950 421,264 31,672 31,672 31,672 31,672 36,822 36,822 36,822 36,822 36,822 36,822 36,822 36,822 5/17/2024 20 315 2024-2025 Annual Budget 2024-2025 Annual Budget RUN DATE: 17 -May -24 03:20 PM PREPARED BY: Landmark Golf Management FOOD& BEVERAGE DEPT -62 TOTAL JUL.AUG. I SEP. OCT. I NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. FOOD REVENUE TOTAL NUMBER OF ROUNDS 44,545 1,900 1,850 2,700 0 5,400 4,700 4,900 5,200 6,100 4.995 4,500 2,300 GRILL ROOM AVERAGE FOOD REVENUE PER ROUND $6.75 $5.00 $5.00 $6.00 $2.50 $8.00 $8.00 $8.50 $8.50 $8.50 $8.00 $7.00 $6.00 TOTAL GRILL ROOM FOOD REVENUE 338,710 9,500 9,250 16,200 0 43,200 37,600 41,650 44,200 51,850 39,960 31,500 13,800 BEVERAGE CARTS AVERAGE FOOD REVENUE PER ROUND $0.85 $0.25 $0.50 $0.75 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $0.75 TOTAL BEVERAGE CART FOOD REVENUE 40,945 475 925 2,025 0 5,400 4,700 4,900 5,200 6,100 4,995 4,500 1,725 AVERAGE FOOD $ PER ROUND $7.60 $5.25 $5.50 $5.00 $3.50 $8.50 $8.50 $9.50 $9.50 $8.25 $6.50 $8.00 $6.75 BEVERAGEREVENUE TOTAL NUMBER OF ROUNDS 44,545 1,900 1,850 2,700 0 5,400 4,700 4,900 5,200 6,100 4,995 4,500 2,300 GRILL ROOM/FERRACE AVERAGE BEVERAGE REVENUE PER ROUND $3.06 $1.50 $1.50 $1.50 $1.50 $3.75 $4.50 $4.00 $4.00 $4.00 $4.00 $4.50 $2.00 TOTAL SNACK SHOP BEVERAGE REVENUE 160,705 2,850 2,775 4,050 0 20,250 21,150 19,600 20,800 24,400 19,980 20,250 4,600 45.43% BEVERAGE CARTS AVERAGE BEVERAGE REVENUE PER ROUND $3.96 $3.25 $4.00 $3.50 $2.50 $4.00 $4.00 $5.50 $5.50 $5.25 $4.00 $3.75 $2.25 'DEAL BEVERAGE CART BEVERAGE REVENUE 193,030 6,175 7,400 9,450 0 21,600 18,800 26,950 28,600 32,025 19,980 16,875 5,175 54.57% AVERAGE BEVERAGES PER ROUND $4.75 $5.50 $5.00 $4.00 $7.75 $8.50 $6.00 $9.50 $9.25 $8.00 $8.25 $4.25 FOOD REVENUE Snack Shop/Terrace Food $ 338,710 $ 9,500 $ 9,250 $ 16,200 $ - $ 43,200 $ 37,600 $ 41,650 $ 44,200 $ 51,850 $ 39,960 $ 31,500 $ 13,800 Beverage Cart Food $ 40,945 $ 475 $ 925 $ 2,025 $ - $ 5,400 $ 4,700 $ 4,900 $ 5,200 $ 6,100 $ 4,995 $ 4,500 $ 1,725 Other Food Income $ - $ - $ - $ - $ - $ - $ - Non -Taxable Tournament Sl a Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Special Events $ - $ - $ - $ - $ - TOTAL FOOD REVENUE $ 379,655 $ 9,975 $ 10,175 $ 18,225 $ - $ 48,600 $ 42,300 $ 46,550 $ 49,400 $ 57,950 $ 44,955 $ 36,000 $ 15,525 BEVERAGE RE Snack Shop/Terrace Beer & Wine $ 128,564 $ 2,280 $ 2,220 $ 3,240 $ - $ 16,200 $ 16,920 $ 15,680 $ 16,640 $ 19,520 $ 15,984 $ 16,200 $ 3,680 Snack Shop/Terrace Sodas $ 32,141 $ 570 $ 555 $ 810 $ - $ 4,050 $ 4,230 $ 3,920 $ 4,160 $ 4,880 $ 3,996 $ 4,050 $ 920 Beverage Cart Beer & Wine $ 208,748 $ 5,558 $ 5,180 $ 7,560 $ - $ 23,760 $ 20,680 $ 29,645 $ 28,600 $ 35,228 $ 29,970 $ 16,875 $ 5,693 Beverage Cart Sodas $ 25,882 $ 618 $ 740 $ 4,725 $ - $ 2,160 $ 1,880 $ 1,617 $ 2,860 $ 3,203 $ 3,996 $ 2,531 $ 1,553 TOTAL BEVERAGE REVENUE $ 395,334 $ 9,025 $ 8,695 $ 16,335 $ - $ 46,170 $ 43,710 $ 50,862 $ 52,260 $ 62,830 $ 53,946 $ 39,656 $ 11,845 TOTAL FOOD & BEVERAGE REVENUE $ 774,989 $ 19,000 $ 18,870 $ 34,560 $ - $ 94,770 $ 86,010 $ 97,412 $ 101,660 $ 120,780 $ 98,901 $ 75,656 $ 27,370 LESS COST OF SALES COS - Food (37%) $ 136,676 $ 3,591 $ 3,663 $ 6,561 $ - $ 17,496 $ 15,228 $ 16,758 $ 17,784 $ 20,862 $ 16,184 $ 12,960 $ 5,589 COS - Beer & Wine (25%) $ 70,757 $ 1,567.50 $ 1,554.00 $ 2,268.00 $ - $ 8,391.60 $ 7,896.00 $ 9,518.25 $ 9,500.40 $ 11,496.98 $ 9,650.34 $ 6,945.75 $ 1,968.23 COS - Sodas (27%) $ 14,506 $ 296.88 $ 323.75 $ 1,383.75 $ - $ 1,552.50 $ 1,527.50 $ 1,384.25 $ 1,755.00 $ 2,020.63 $ 1,998.00 $ 1,645.31 $ 618.13 COS- Employee Meals $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTAL COST OF SALES $ 221,939 $ 5,455 $ 5,541 $ 10,213 $ - $ 27,440 $ 24,652 $ 27,661 $ 29,039 $ 34,380 $ 27,832 $ 21,551 $ 8,175 GROSS PROFIT $ 553,051 $ 13,545 $ 13,329 $ 24,347 $ - $ 67,330 $ 61,359 $ 69,752 $ 72,621 $ 86,400 $ 71,069 $ 54,105 $ 19,195 SALARIES AND BENEFITS Salaries and Wages $ 389,900 $ 20,548 $ 20,548 $ 22,160 $ 9,955 $ 32,397 $ 40,782 $ 49,209 $ 49,209 $ 49,209 $ 42,732 $ 32,566 $ 20,585 Payroll Taxes $ 42,889 $ 2,260 $ 2,260 $ 2,438 $ 1,095 $ 3,564 $ 4,486 $ 5,413 $ 5,413 $ 5,413 $ 4,701 $ 3,582 $ 2,264 Workers'Compensation $ 18,559 $ 978 $ 978 $ 1,055 $ 474 $ 1,542 $ 1,941 $ 2,342 $ 2,342 $ 2,342 $ 2,034 $ 1,550 $ 980 Health Insurance $ 73,168 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 TOTAL SALARIES AND BENEFITS $ 524,517 $ 29,883 $ 29,883 $ 31,749 $ 17,621 $ 43,601 $ 53,306 $ 63,062 $ 63,062 $ 63,062 $ 55,564 $ 43,796 $ 29,927 SUPPLIES AND MATERIALS Expendable Supplies $ 4,280 $ 300 $ 300 $ 300 $ 580 $ 200 $ 400 $ 400 $ 400 $ 400 $ 400 $ 300 $ 300 Bar Utensils $ 1,250 $ 150 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 Menus, Napkins and Placemats $ 3,825 $ 175 $ 175 $ 175 $ 500 $ 250 $ 250 $ 550 $ 350 $ 350 $ 350 $ 350 $ 350 TOTAL SUPPLIES AND MATERIALS $ 9,355 $ 625 $ 575 $ 575 $ 1,180 $ 550 $ 750 $ 1,050 $ 850 $ 850 $ 850 $ 750 $ 750 REPAIRS AND MAINTENANCE Equipment Repair $ 51900 $ 400 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 TOTAL REPAIRS AND MAINTENANCE $ 51900 $ 400 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 OTHER EXPENSES Office Supplies $ 1,500 $ 100 $ 100 $ 100 $ 250 $ 250 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 Phone $ 857 $ 71 $ 71 $ 71 $ 71 $ 71 $ 71 $ 71 $ 76 $ 71 $ 71 $ 71 $ 71 Equipment Rental $ 1,285 $ 109 $ 109 $ 109 $ 95 $ 109 $ 100 $ 109 $ 109 $ 109 $ 109 $ 109 $ 109 Natural Gas- Propane $ 12,000 $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - Non -Capital Equipment $ 2,050 $ 100 $ 100 $ 100 $ 50 $ 50 $ 50 $ 700 $ 700 $ 50 $ 50 $ 50 $ 50 Uniforms $ 4,300 $ 150 $ 150 $ 150 $ 1,500 $ 150 $ 500 $ 250 $ 250 $ 350 $ 550 $ 150 $ 150 Laundry and Linen $ 81850 $ 650 $ 650 $ 650 $ - $ 650 $ 650 $ 1,200 $ 1,200 $ 1,200 $ 650 $ 650 $ 700 Bank Fees $ 20,630 $ 1,150 $ 1,150 $ 1,250 $ - $ 2,400 $ 21500 $ 2,500 $ 2,700 $ 2,700 $ 2,080 $ 1,150 $ 1,050 Seminars/Training $ 225 $ 25 $ 25 $ 25 $ 25 $ - $ - $ - $ 25 $ 25 $ 25 $ 25 $ 25 Cleaning Supplies $ 7,400 $ 400 $ 400 $ 400 $ - $ 850 $ 850 $ 950 $ 950 $ 950 $ 950 $ 350 $ 350 Flowers and Decorations $ 2,604 $ 100 $ 100 $ 100 $ 204 $ 300 $ 300 $ 300 $ 250 $ 250 $ 300 $ 200 $ 200 Licenses and Permits $ 11800 $ - $ 900 $ - $ - $ - $ - $ 900 $ - $ - $ - $ - Miscellaneous $ 6,200 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 600 $ 600 $ 500 $ 500 $ 500 TOTAL OTHER EXPENSES $ 69,701 $ 5,355 $ 4,255 $ 5,455 $ 2,695 $ 7,330 $ 5,621 $ 9,580 $ 6,960 $ 8,405 $ 5,385 $ 5,355 $ 3,305 TOTAL EXPENSES $ 609,473 $ 36,263 $ 35,213 $ 38,279 $ 21,996 $ 51,981 $ 60,177 $ 74,192 $ 71,372 $ 72,817 $ 62,299 $ 50,401 $ 34,482 TOTAL FOOD 6 BEVERAGE PROFIT ILou) $ (56,422) $ (22,719) $ (21,884) $ (13,932) $ (21,996) $ 15,349 $ 1,181 $ (4,440) $ 1,249 $ 13,583 $ 8,770 $ 3,704 $ (15,287) 5/17/2024 316 SilverRock Resort 2024-2025 Marketing Plan Narrative OBJECTIVE: Continue to expand brand awareness for SilverRock Resort, promote the Arnold Palmer Classic Course as a premier golf course in the Coachella Valley and increase golf and golf -related revenues. In light of the paused construction around the golf course of two luxury hotels, spa, convention center, permanent clubhouse and private residences, it will be imperative to continually market SilverRock in a positive light during all construction phases of the development. The 2024-2025 Marketing Plan is built around a slightly scaled back budget of $171,186. The total Marketing Plan includes: reduced print advertising, TV, digital marketing, social media, collateral materials, partial tournament coordinator salary, public relations, supplies, internet websites and email marketing. The total Advertising budget will be $113,787 for the year. PRINT ADVERTISING Continuing from last year, further reduction in print advertising will be evident, however SilverRock will still have a presence in a few staple local & regional magazines (Golfing Palm Springs, Desert Golf & Tennis, CV Golf Guides, Desert Golfing Digest). These publications will target the Coachella Valley Residents and tourist/resort golfers in local, regional and Southern California golf and travel publications. Print advertising consists of golf and travel magazines and regional directories. All print advertising now includes a digital component that is included in each buy. TV & RADIO Television commercials (30 seconds) are placed on some local network affiliates. There is no plan for a new commercial to be created until construction around the golf course is further along and the new Clubhouse is complete. For this fiscal year, there is no Local radio ads planned in the advertising budget. IN ROOM MEDIA In conjunction with the Travelers Channel, currently the SilverRock commercial is showcased in 18 local hotels representing over 3,500 hotel rooms throughout the Coachella Valley. The Travelers Channel operates in each hotel, and becomes the hotels local in roorr concierge. The Travelers Channel primary goal is to visually promote the local area, points of interest, history, services, restaurants, shopping, and to help visitors enjoy their stay. DIGITAL MARKETING The marketing plan includes website display banners through the geo target channels like ESPN LA, Golf Channel.com, PGA.com, SCGA.com, and anyone searching keywords such as Golf, Best Golf Courses, Tee Times in Greater Palm Springs/La Quinta producing 10 million impressions. Included in this 2024-2025 Marketing Plan is an ongoing partnership to continue a strong presence in the digital marketing sector. 5/17/2024 22 317 SOCIAL MEDIA Working in partnership with Golf Now, social media has proven to be a very successful, powerful and cost-effective method of promoting SilverRock. There will be a continued effort and focus on social media including enhancing SilverRock's Facebook "fan base" which has generated nearly 20,000 likes and has been very effective way of communicating SilverRock's news and information. Increased presence on Instagram will continue this year with short beauty video clips of the golf course. ONLINE REVIEWS / REPUTATION MANAGEMENT / WORD OF MOUTH Online reviews for SilverRock provide a great feedback tool for management but are also helpful for consumers when deciding which golf course to play for their next golf trip. Any review on Google, Yelp or Golf Pass (powered by Golf Now) are acknowledged and responded to within 48 hours of a review or post. It is critical to maintain this reputation during and throughout the construction phases of the development at SilverRock. CONTENT EMAIL MARKETING Working in collaboration with several magazines, a continued effort will be implemented to utilize content email marketing as a strategic component of this year's marketing plan. This helps to engage and inform subscribers to be used to promote the course for both golf and food and beverage. WEBSITE & ONLINE BOOKINGS The majority of all tee times are booked online and prepaid upon booking; a continued emphasis on the mobile website -booking interface that allows visitors to navigate SilverRock's website more efficiently and effectively will again be a priority for 2024- 2025. The SilverRock website is a responsive website which allows any user with a PC, tablet or mobile phone to navigate the SilverRock website. Customers now have the ability to purchase digital gift cards through the SilverRock.org website. In addition, the SilverRock Grill menu for breakfast and lunch are displayed on the SilverRock website. SilverRock also offers a free App (available on both Droid and iPhones) which allows golfers to book tee times instantly through the App with no booking fees. JUNIOR GOLF SilverRock will continue to support local Junior Golf by offering Junior Lessons, Junior Rates and being a host course for the La Quinta High School Boys and Girls Golf Teams. SilverRock will also continue to participate in SCGA's Youth on Course program which will provide juniors in Southern California another avenue to have access to golf courses at affordable green fees. COLLATERAL MATERIALS Rack cards, scorecards, and information packets presenting SilverRock Resort are used as marketing tools for SilverRock Resort. Printed material will be produced, as needed, to promote SilverRock Resort as a former Home Course of the Bob Hope Classic 2008-2011. 5/17/2024 23 318