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Annual Plan FY 2009-2010 SilverRock ResortTww 4 4aQumrw COUNCIL/RDA MEETING DATE: April 21, 2009 ITEM TITLE: Consideration of the SilverRock Resort 2009/2010 Annual Plan RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: / CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The 2009/2010 Annual Business Plan (Attachment 1) as drafted for SilverRock Resort projects operating expenses of $3,606,598 and revenues of $3,254,563 for an operating deficit of $352,035. As a result of the Food and Beverage License Agreement between the City and Landmark Golf Management, LLC, the food and beverage revenue and expenses are not recognized in the 2009/2010 Annual Plan. Instead, food and beverage revenues and expenses, which are equal, will be accounted for through the Food and Beverage License Agreement. As a component of the Annual Plan, the operator is recommending Capital Purchase Expenditures of $25,375 and supplemental 2010 Bob Hope Chrysler Classic Tournament expenses (personnel, materials, and equipment) in the amount of $116,639. If these additional costs are approved, the operating deficit will be $494,049. Staff proposes an advance of $494,049 from General Fund reserves to the SilverRock Resort Golf Enterprise Fund to fund this operating deficit. In addition, staff is finalizing the Fiscal Year 2008/2009 revenue and expenditure projections and will be reporting on such at the June 16, 2009 City Council meeting. In addition to the expenses contained in the operators' annual plan and the supplemental expenses for the Bob Hope Chrysler Classic Tournament, the Fiscal Year 2009/2010 Preliminary Budget will include additional expenses in operating the golf course outside of the Landmark Golf contract. These additional expenses will include the $100,000 annual payment to the Bob Hope Chrysler Classic per the agreement and $30,250 for site preparations (Electrical, Fencing, and Road Improvements). The proposed Fiscal Year 2009/2010 budget for all operating costs at SilverRock Resort totals $4,126,838. 304 The golf course will be closed for a total of seven (7) days for the 2010 Bob Hope Chrysler Classic. The loss of seven days has been factored into the 2009/2010 Annual Plan for SilverRock Resort with an estimated loss of $150,000 in revenue and 1,500 rounds of golf. Any additional days of course closure for the Bob Hope Chrysler Classic would result in a further impact the revenue budget for the month of January 2010. CHARTER CITY IMPLICATIONS: Operation of the golf course is not subject to prevailing wage requirements. BACKGROUND AND OVERVIEW: The City entered into a Golf Course Management Agreement with Landmark Golf Management, LLC (Operator) in April 2004. Section 3.2.1 of the Agreement provides that the Operator shall submit an Annual Plan to the City Manager, including a projected operating budget, for the upcoming fiscal year. The Annual Plan for Fiscal Year 2008/2009 was $4,099,379 for operating expenses with projected revenues of $3,756,926, thereby reflecting an operating deficit of $342,453. A $250,000 advance from the General Fund, per the Management Agreement, was provided to an Operating Bank Account on January 31, 2005. 2009/2010 ANNUAL PLAN Assumptions used in this plan include: 39,150 rounds of play for Fiscal Year 2009/2010; • No rate changes are recommended; • An average projected revenue of $76.13 per round; • A 2% capital reserve ($59,610) for future golf course improvements/renovations, per the Management Agreement (section 3.10.1); • Maintenance of the SilverRock entry landscape for $54,296 (unchanged since 2007/2008) funded from the Lighting and Landscape District; An additional $25,375 separate from the Annual Business Plan is being requested for new capital expenses as follows: 1. Replacement Computers = $1,800. The replacement of two computers for golf operations. 2. Replacement Seat Cushions = $1,800. The replacement of sixty cushions in the clubhouse dinning room. 305 3. Utility Trailer = $3,000. This double axle trailer will be used to transport equipment. The maintenance department is currently using a staff workers personal trailer. 4. Replacement Irrigation Heads = $6,599. Two hundred Rainbird irrigation heads will be purchased to replace the less efficient Hunter irrigation heads. 5. Irrigation Software Renewal = $12,176. This amount covers a three year renewal contract with Rainbird for the software that runs the irrigation computer. This contract includes a replacement computer and three radio controllers for staff to control the irrigation system in the field. BOB HOPE CHRYSLER CLASSIC TOURNAMENT The golf course operator recommends a proposed amount of $116,639 in supplemental expenses for the 2010 Bob Hope Chrysler Classic as follows: 1. Personnel Costs = $17,439. The additional personnel costs will cover the overtime expenses that will be required to prepare the course for the tournament as well as having the golf course being open to the public through the opening day of the event. 2. Supplies and Materials = $85,000. This amount will cover any unforeseen incidents, such as acts of nature, which may require bunker sand replacement, tree replacement, seed and sod for the turf, and plants for replacement or enhancement purposes. 3. Equipment = $14,200. This amount will cover equipment rental for pumps, generators, and any other equipment they may be necessary for the event. FRONT ENTRY LANDSCAPING The operator has proposed $54,296 in supplemental expenses for the front entry area that encompasses the entrance at SilverRock Way and Avenue 52. This amount remains unchanged from last year. MARKETING The Marketing Narrative is on pages 25 and 26 of the proposed 2009/2010 Annual Plan with the Marketing Budget listed on page 20. Direct advertising and creating awareness for SilverRock Resort is budgeted for $185,984. The Arnold Palmer Classic Course is being promoted as a premier golf destination in the Coachella Valley through newspapers, magazines, directories, the internet, television, and radio. 306 EXPENSE REDUCTIONS Due to current economic conditions, Landmark has implemented many expense reductions as described on page 1 of the proposed 2009/2010 SilverRock Annual Plan. These reductions are approximately $282,000 and are factored into the proposed Annual Plan. Landmark has prepared additional considerations for expense reduction that are listed on pages 2 thru 4 but are not included in the 2009/2010 proposed Annual Plan. These reductions include limiting the over -seeding (est. $30,000 to $40,000 annually), reducing the Food & Beverage operations to only cold sandwiches, snacks, and drinks in the months of July and August (est. $10,000 annually), and eliminating one roving patrol personnel ($49,200 annually). Staff is seeking direction from City Council if any or all of these considerations for additional reductions should be implemented. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Annual Plan as submitted by Landmark Golf Management, LLC which projects operating expenses of $3,606,598 and revenues of $3,254,563 for an operating deficit of $352,035 plus an additional $25,375 for Capital Expenses and $116,639 for the Bob Hope Chrysler Classic Tournament expenses for a net loss of $494,049; or 2. Do not approve the Annual Plan as submitted by Landmark Golf Management, LLC which projects operating expenses of $3,606,598 and revenues of $3,254,563 for an operating deficit of $352,035 plus an additional $25,375 for Capital Expenses and $1 16,639 for the Bob Hope Chrysler Classic Tournament expenses for a net. loss of $494,049; or 3. Approve the Annual Plan with modifications. Respe tfully submitted, Edie Hton Community Services Director Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. 2009/2010 Annual Business Plan 307 ATTACHMENT 1 SilverRock Resort -Arnold Palmer Classic Course 2009-2010 ANNUAL PLAN Prepared For: City of La Quinta SilverRock Resort Prepared BY: Landmark Golf Management Submitted: March 26, 2009 SILVERROCK RESORT Annual Plan Fiscal Year 2009-2010 Table of Contents Part I -Project Overview Project Fact Sheet Economy Overview & Expense Reductions 1-4 Mission Statement 5 Philosophy Statement 6 Organizational Chart 7 Key Employee Staffing and Salaries 8 Part II -Assumptions 2009-2010 Assumptions 9,10 Part III -Operational Financial Projections 2009-2010 Consolidated Income Statement by Month 11 Part IV -Department Detail Capital Expenditures 12 Golf Rounds and Revenue 13 Carts, Bagroom & Range 14 Golf Shop Merchandise 15 Course Services 16 Golf Course Maintenance 17,18 General & Administrative 19 Marketing 20 Clubhouse 21 Miscellaneous 22 Part V-Food and Beverage Department Detail 23,24 Part VI -Other Marketing Narrative Plan 25,26 2009-2010 Golf Rates 27 Bob Hope Assumptions 28 Bob Hope Supplemental Budget 29 Front Entry Maintenance Budget 30 309 Sn_vFrtRoCK 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 WEBSITE W W W.SI LVERROCK.ORG MANAGEMENT Randy Duncan, Director of Golf / General Manager Willie Lopez, Golf Course Superintendent COURSE YARDAGE SILVER 7,558 PAR 72 BLUE 7,101 PAR 72 WHITE 6,639 PAR 72 YELLOW 5,974 PAR 72 GREEN 5,306 PAR 72 RED 4,884 PAR 72 GRASS TYPES GREENS: TIF DWARF FAIRWAY / TEES: TIF SPORT ROUGHS: TIF SPORT OWNER CITY OF LA QUINTA MANAGED BY LANDMARK GOLF MANAGEMENT, LLC 74-947 HIGHWAY 111, SUITE 200 INDIAN WELLS, CA 92210 PHONE: (760) 776-6688 DATE OPENED February 14, 2005 3A ECONOMY OVERVIEW & EXPENSE REDUCTIONS 20o9-2oio Annual Plan Currently, the national and local economies are experiencing recessionary - like conditions. Unemployment rates are double digits, the housing market has collapsed, the credit market stalled and consumer confidence is at a historical low. In the Coachella Valley, golf revenue and hotel occupancy are down by 12%-25% and consumers are seeking discounts wherever they go. Although SilverRock is not immune to these conditions, SilverRock is doing better than the competition; with a 12% reduction in revenue compared to prior year figures. The fate of the economy is uncertain during the next 12 months, therefore, for the 2009-2010 Annual Plan; all efforts are being made to create a budget that presents a plan to compensate for a reduction in revenues by reducing expenses 10% or $300,000. Stated immediately below are explanations of areas of expense reductions presented herein f6r the year 2009-2010. EXPENSE REDUCTIONS Labor -Each department has been thoroughly analyzed and reduced to the lowest staffing level. All efforts are being made to continue providing first class service and quality playing conditions. Further staffing reductions will result in quality and service deficiencies. The following is a summary of expenses that have been reduced and projected in this 2009-2010 Annual Plan. No Raises -Employee raises are not projected for the year 2009-2010 for any department which equates to a $42,000 annual expense reduction. Reduce Course Services -Eliminate golf course rangers, May - September 2009-2010. Golf shop personnel will monitor pace of play through the GPS system. This equates to a $6,400 seasonal expense reduction. 311 Reduce Golf Course Maintenance -Reduce the staff by two (2) full- time employees. Greens in the summer months will be mowed with a tri-plex machine rather than walk mowed. This will save labor during the summer; anticipated expense reduction of $58,884 annually in the golf course maintenance department. Insurance- Health, Workman's Comp and General Liability Insurance have been reduced collectively by as much as $60,000-$70,000 in the 2009-2010 Annual Plan. Workman's Comp Insurance is subject to change depending upon claims that may or may not occur before the end of the contracted term (September). Golf Course Maintenance Lease -The lease for golf course maintenance equipment will begin expiring in the coming fall (2009). It is projected through a lease renewal process; an annual expense reduction of $60,000 is budgeted. The current monthly lease payment of $20,000 should be reduced to approximately $15,000 per month; a $5,000 per month expense reduction. This projected savings is a result of several maintenance equipment items currently being purchased (as anticipated almost five (5) years ago) for $1 rather than entering new leases for these certain pieces of equipment. Marketing -The desert rotating billboard will be eliminated as a marketing expense. This amounts to a $47,400 annual expense reduction. Food & Beverage -Changing to paper napkins rather than linen napkins for day to day use. The linen napkins will be used for special events. This change will reduce expenses $3,000 annually. Outside Services -Bottle water placed on the golf carts will be purchased through Costco at a reduced rate. This will amount to $4,100 annual expense reduction. ADDITIONAL EXPENSE REDUCTIONS DISCUSSION Listed below are discussions in regard to additional expense reductions that are not provided for in the 2009-2010 Annual Plan. The additional reductions are not necessarily recommended by Landmark, but are presented with options and ramifications of each possible reduction. These options could further reduce expenses, but could have significant implications on 2 312 service and quality levels which most likely will have a detrimental affect on the reputation and future of SilverRock. Golf Course Maintenance Limited Overseeding-Limited overseeding involves overseeding only the integral parts of the golf course; tee boxes, fairways, approaches, greens and collars. The rest of the golf course would not be overseeded and during the season, these non -seeded areas would turn brown. This is a common seeding practice for some courses here in the Coachella Valley and Arizona. SilverRock has approximately 110 total turf acres; this option/proposal would entail 20 acres that would not be overseeded. This includes eight (8) acres at the driving range where only target greens and the practice hitting area would be overseeded, the rest would not. Pros: Reduces the annual overseeding expense approximately $30, 00- $40,000 in seed, fertilizer and labor costs. This is an acceptable practice and approved by the PGA Tour. By not overseeding most of the rough areas, transition would be faster and easier. Some golfers prefer this look, due the contrast in fairways to roughs. This concept has been approved by Thomas V Brown, III with the PGA Tour. Cons: The entire golf course would not be green. There would be a mixture ofgreen and brown areas. Two (2) applications of an herbicide ($5,000 per application) would be required during the season to provide the desired look in the non-overseeded areas. Food & Beverage Reduce Food & Beverage Operation -During the summer months from June -September, the SilverRock Grill normally reduces the menu by only serving breakfast on Friday -Sunday and offering a limited lunch menu. This option will further reduce the menu to only cold sandwiches, snacks and drinks from July -August. There would not be hot food available and would be similar to a snack bar operation as opposed to the current full service restaurant for the months of July -August. Pros: -Reduce expenses by $10,000. This would allow valuable full time employees to not be laid off during the summer. Cons: It would require three (3) part time valuable employees to be laid off. We could potentially lose these valuable employees who 3 313 have been loyal for 2 to 3 years. A limited menu without hot food may be viewed as a negative to some Residents and golfers. Clubhouse and Security Reduce Roving Patrol/Security- Currently, SilverRock has two (2) roving patrol officers per day/night that patrol the entire SilverRock property from dusk to dawn, seven days a week, 365 days per year. This amounts to a $98,400 annual expense that is included in the SilverRock Golf Operations budget. Eliminate one (1) roving patrol personnel. This second shift would be eliminated and the remaining roving patrol officer's hours would be readjusted. This equates to a $49,200 annual expense reduction to the Golf Operations budget. Pros: Expense reduction of $49,200 to the Golf Operations budget Cons: Would not have full security coverage since the second roving patrol officer would not be present. SilverRock hours of operations are primarily from 5:30 a.m. to 7: 00 p.m. daily (depending upon the time of year). This leaves 10-12 hours where SilverRock employees are not present. One (1) roving patrol officer can only cover 8 hours per night/shift. 314 4 SILVERROCK RESORT Annual Plan Fiscal Year 2009-2010 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 present a facility and golf course conditions that qualifies to host the Bob Hope Classic with a continuing strong commitment to be in the rotation of golf clubs • To have each Department operate within their annual budget allowing SilverRock Resort to reach the net operating goals 315 SILVERROCK RESORT Annual Plan Fiscal Year 2009-2010 PHILOSOPHY STATEMENT After four (4) 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 SilverRock's second successful year in the Bob Hope Chrysler Classic. As the 2009-2010 Annual Plan is implemented, focus will continue to be on broadening the awareness, marketability and noteworthiness of SilverRock Resort's Arnold Palmer Classic Course, golf facilities and amenities. Also a strong emphasis will continue to be placed on SilverRock's participation in future Bob Hope Chrysler Classic Tournaments which SilverRock is contracted to be part of for the next eight (8) years. 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 fifth complete twelve (12) months of operations, Landmark Golf Management will put forth every effort to better 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. 316 SilverRock Resort 2009-2010 Annual Plan C4 H .11.r.. ll..� Key Employee Staffing and Salaries n K60m. L6nEm rk Gag M6n60.m6n1 2009-2010 ANNUAL PLAN SEP. OCT. NOV. DEG. JAN. FEB. MAR. APR. MAY JUN. DEPARTMENT SUMMARY JUL. AUG. GOO F OPERATION OUTSIDE SERVICES OUTSIDE SERVICES MANAGER 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 OUTSIDE SERVICES SUPERVISORS (FULL-TIME) 1 1 1 I 1 1 2 2 2 2 1 I DRIVING RANGE(PART-TIME) 1 1 1 1 1 1 0 0 1 1 0 K CARTMAGNALET/BAG DROP (FULL-TIME) 0 A 0 A A 0 2 2 2 2 2 1 1 CARTIBAGNALETIBAG DROP (PART-TIME) 0 0 0 2 2 2 2 SHUTTLE DRIVER (PART-TIME) D 0 0 0 2 2 PRO SHOP 1 1 1 1 1 1 HEAD GOLF PROFESSIONAL - I 1 1 1 1 1 1 1 1 I I I 1 1ST ASSISTANT PROFESSIONAL 1 1 1 1 1 1 1 1 I I 1 MERCHANDISER I 1 1 1 1 1 2 2 2 2 2 2 2 ASSISTANT PROFESSIONAL 2 2 2 2 2 2 2 3 2 2 2 SALES CLERKS (FULL TIME) 1 1 1 2 2 2 1 1 1 1 0 SALES CLERKS (PART TIME) 0 0 1 t 1 1 1 6 6 6 0 r 6 6 T 6 6 6 6 COURSE SERVICES 3 3 3 ] 2 3 ] J ] 3 J ] STARTERS (PART TIME) 0 2 3 < A L ] 0 0 RANGERJMARSHALS(PARTTIME) 0 0 0 8 T T T 6 3 3 ] 3 ] ] 6 GOLF1 1 1 1 1 1 1 1 1 1 1 SUPERINTENDENT 1 1 1 1 1 1 1 1 1 ASSTSUPERINTENDENT 1 1 1 1 1 1 1 1 1 1 FOREMANSPRAY TECHNICIAN 1 1 1 1 1 1 1 1 1 1 1 1 HEAD MECHANIC I FACWTY MANAGER 1 1 1 1 1 1 1 1 1 1 1 ASST MECHANIC 1 1 1 1 1 1 1 1 1 1 1 1 1 HEAD IRRIGATOR 1 1 1 1 1 1 1 1 1 1 1 1 ASSTIRRIGATOR 1 1 1 1 1 1 iT tT 17 17 tT 17 17 GREENSMEN tT tT 17 tT 17 1 1 1 1 1 1 ADMINISTRATIVE ASSISTANT 1 1 1 1 1 1 25 23 25 25 25 25 TOTAL TURF A ADMIN STAFF 25 25 25 25 S 25 LANDSCAPE MAINTENANCE 1 1 1 1 1 1 1 FOREMAN 1 1 1 1 1 1 1 1 1 1 1 1 1 IRRIGATOR 1 1 1 1 5 5 5 5 S S 5 5 LANDSCAPERS 5 5 5 5 T T T T T T T TOTAL LANDSCAPE CREW r T r r T 32 32 32 32 TOTAL COURSE MAINTENANCE STAFF 32 32 32 32 32 32 32 32 FOOD 6 BEVERAGE 1 1 1 1 1 F 50 MANAGER I SUPERVISOR I 1 1 1 1 1 1 1 I 1 I 1 CHEF 1 1 1 1 1 1 I 1 1 1 1 1 1 COOK I 1 1 1 1 1 1 PREP COOK 1 1 1 1 1 1 1 1 1 I I LEAD SERVER (FULL-TIME) I I I 1 1 1 1 1 ( 1 1 F SB WNTMEVERAGE CARTMALF(FULL TIME) 1 1 1 1 1 1 1 3 3 3 3 2 F 6 B WAITMEVERAGE CARTMALF(PART TIME) 2 2 2 3 3 ] 3 1 1 1 1 1 BUSER I DISHWASHER (PART TIME) 1 1 1 1 1 1 1 10 10 10 9 9 9 9 10 10 10 10 1D 1 I 1 1 1 1 1 1 DIRECTOR OF GOLFIGM 1 1 1 1 1 1 1 1 1 I CLUB CONTROLLER 1 1 1 1 1 1 1 1 1 1 1 1 1 ADMINISTRATIVE ASSISTANT 1 1 1 1 1 3 I 3 3 ] 3 3 3 3 D 3 3 MARNETWG?OURNAMENT 1 1 1 1 TOURNAMENT SALES I GROUP COORDINATOR 1 I 1 1 1 1 1 1 TOTAL EMPLOYEES 61 61 fit 88 89 T1 T3 T] 73 72 65 63 SILVERROCK RESORT ANNUALPLAN 2009-2010 Assumptions Revenue Green Fees: A green fee includes golf cart and warm-up range balls. A combination of the various green fee rates and green fees mix of Regular, Twilight, and Resident play is anticipated to yield an average rate of $76.13 per round on an annualized basis. The Green fee rates for 2009- 2010 are projected to remain consistent with the prior year's rates due to economic and competitive concerns. It is assumed in this Annual Plan that Resident's Guests will continue to be offered a discount as accompanied guests of La Quinta Resident card holders. The Resident Guest rate represents a 20% discount on the prevailing posted rates and follows similar booking procedures as extended to a La Quinta Resident card holder; booking three (3) days in advance. It is assumed that the golf course will be closed to public play during the Bob Hope Chrysler Classic from January 17-23, 2010. It is also assumed the overseeding dates will be October 5 through November 3, 2009; over seeding reduces revenues, which is taken into consideration in these projections, due to the course being closed during these dates. It is also projected that aerifrcation will occur in August of 2009 and June of 2010 which reduces revenue for 3-5 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: 30% Resident, 25% Public, 10% Public Twilight, & 35% Other (tournaments, wholesalers, juniors, resident guests, replays and discounts). Miscellaneous and Other Revenue: Based on $2.79 per round. This consists of golf club rentals, golf club repairs, handicap fees, driving range fees, rider fees, 15 % of golf lessons and Independent Contractor's Fees. Golf Shop Merchandise: Based on retail sales of $8.32 per round Cost of Goods Sold Merchandise 53 % Food & Beverage 33 % Expenses Golf Carts, Bag Room, and Driving Range: Includes outside service, valet, bag room, and driving range staff plus supplies and operating expense for this department. Golf Shop Merchandise: Includes golf professionals, merchandising sales staff, receiving staff and golf shop operational expenses. 319 SILVERROCK RESORT ANNUALPLAN Course Services: Includes course service staff consisting of course rangers/starters and related department supplies and materials. Golf Course Maintenance: Includes grounds maintenance staff, supplies, and materials. Over seeding dates are projected to be October 5 through November 3, 2009, which results in projected higher labor cost and supply costs during the annual overseeding process. Bob Hope Chrysler Classic: It is assumed that SilverRock Resort will host the 2010 Bob Hope Chrysler Classic. An Assumption sheet and a Supplemental Budget (not part of the Operations Budget, attached hereto as pages 28 & 29) provide the extra maintenance expenses required to prepare the facility. Front Entry Maintenance: A Supplemental Budget (not part of the Operations Budget, attached hereto as page 30) provides the maintenance schedule and expenses for the front entry area that encompasses the entrance at SilverRock Way south of Ave. 52. Water & Electrical: This includes water and electrical cost to irrigate the golf course and properly maintain the lake system. This is accounted for in the Golf Maintenance budget. 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 arrangement between the City and Landmark Golf Management. Marketing: Includes marketing, public relations, advertising, web page, collateral and tournament sales, etc. Clubhouse: Includes clubhouse expenses, maintenance/cleaning staff, landscape maintenance, parking lot and entry drive clean up. Roving patrol expenses used to secure the entire property of SilverRock is included in the Operations Budget. Management Fee: The monthly Management Fee of $7,500 per the Golf Course Management Agreement is budgeted for the 2009-2010 fiscal year. Insurance: Per requirements of the Golf Course Management Agreement in the Annual Plan is the cost for comprehensive golf club insurance policy, general liability, property, equipment and business interruption etc. Personal Property Lease Tax: Exempt, except personal property taxes on equipment purchases or leases which are included in this Annual Plan. Golf Carts and Maintenance Equipment Leases: Golf carts and maintenance equipment are being leased for the Golf Club. 10 •- 320 2C093010 ANNUAL PLAN Sil-Rock Rootl W CONSOLIDATED INCOME STATEMENT•^^•^ •' "• FOR FISCAL WAR. JULY 2009 -JUNE 3010 nvumn+.vu.�. DEPARTMENT 300]3W6 AduaL 2V0&2009 Actual l Dutl9et JUL AUG SEl OCT NOV DEC JAN FEB MPR APR MAY JUN. ROUNDS ROUNDS 40,516 38,551 309A0 2,150 1,800 3,100 500 4,000 3,450 2,500 4,700 5600 5200, 4,000 2,150 TOTAL ROUNDS 40,S16 35,851 2.160 1,500 3,100 500 4,000 3,450 2,500 4,700 51600 5,209 A,000 2,150 REVENUE GREEN FEES 3,285,296 2,928,579 2,99P1?p3 06376 72,315 143,143 29,881 324.750 257,672 221 094 450,025 536,200 440,310 271,650 147,087 MISC. REVIRANGEICARTSIRENTALS 439,353 ",ON 7,461 3,970 6,115 5,325 12,100 11.693 8.625 15320 17$60 11000 8,800 3,540 GOLF SHOP MERCHANDISE 30.372 319,558 10,750 81100 21,700 3,000 30,ON 24,150 35,000 47,OOD 56000 46.800 28,000 15.050 FOOD 6 BEVERAGE CONCESSIONS 12,00 12,000 500 500 500 1,500 1,500 1,500 1,500 1,500 1,500 500 500 500 TOTAL REVENUE 3.797.021 3,359,137 105,087 84.985 171,458 39,709 369.350 295,014 206,219 513,7A5 611,290 498,690 306,750 166,184 COST OF SALES PRO SHOP 199,253 180000 1 5.706 4,299 11,517 1,592 15,923 12,81E 19,576 24,945 29,722 24,839 14861 7,988 TOTAL COST OF SALES 199,253 180,000 ..7T 1AA S,706 4,299 110517 1,592 15,923 12,818 ta,5T6 24,94S 29,722 24.539 l4,9fi1 7,988 GROSS PROFIT 0,S97,768 3,179,137 3 99382 80,586 159,940 38,114 352.428 2S2,197 247,643 AS8,SO0 581,53E 473,851 291,899 158.197 OPERATING EXPENSES GOLF CARTS%BAGSWANGE 231,653 221,150 W.09 15,557 18,609 12,971 25,263 24,991 20,317 22.410 20,616 20,798 19,623 16,638 15,338 GOLF SHOP MERCHANDISE 273.173 245,800 241Ea,�493 18,811 18.211 20,270 11503 21.776 21,676 23,191 21,726 21726 20,792 23.683 19,959 COURSE SERVICES 90,215 $3,268 Au- 2.765 2,765 2957 1697 3,918 5,74D 6651 6600 6,600 0597 2,790 2,790 GOLF COURSE MAINTENANCE 1,751,017 1,650,327 ,9A9u770 122873 127,623 141,606 268632 125,376 123,358 117,738 117008 114,470 117,670 114.730 118.288 WATER S ELECTRIC COST 97,026 93,500 04,071 6814 6,659 0,034 8,254 8,349 B,349 8,504 8,427 8,504 6,504 6659 6.814 GENERAL A ADMINISTRATIVE 303,866 314,950 31A300 25.412 25,662 26,262 28,187 26,187 26p%2 28,812 26,312 26,112 26,112 26,862 26,012 MARKETING 252,631 290,984 ffifi,7A9 6,007 9,097 20,777 22.282 29,772 26.972 35.02 32322 26,072 23,122 13.572 11322 CLUBHOUSE 154,264 166100 168,106 13,842 13842 13842 14442 13042 13842 15,242 13842 13042 13842 13842 13,842 MANAGEMENT FEEQ"m ,ea r.eew..t 85.000 102,500 9 99A 2S987 22,394 10,794 15661 (1,524) 110445 (383) (2,340) (10,090) (6601) 5359 19,299 CAPITAL RESERVES 70,136 68,75O AtO 1,728 1,446 2.863 598 6e95 5,153 4.422 9,001 10,724 8,8M 5.433 2,942 INSURANCE 40,000 45,000 A'tj00@ 3,500 3,500 3,500 3,500 3,500 3,Soo 3,500 3,500 3,500 3,500 3,500 3,500 PERSONAL PROPERTY LEASE TAXES 18,250 20,000 20.d29 20,000 0 0 0 0 0 0 0 0 0 0 0 LEASES Carl B Maint. 484.235 489.500 a 37453 37,453 37,453 3],453 3],453 37,453 34,581 34,581 31,581 34,681 34,581 34.581 TOTAL OPERATING EXPENSES 3881,568 3,778,929 06A 300,749 201,182 301,329 435,632 300,135 3"367 300,109 291,594 276,839 252,348 267,649 274,666 NET INCOME 253,708) S9Q793 (201,367 (200,576 (141.309 (397.518 52,292 (22,1 ]0 (52,488 197,205 301,699 201.503 24,240 (118,490 NET INCOME% -7A% .17.9% 0 -191.6% -236.3% -82.5% -1001.1% 44.2% -7.5% -19.7% 38.A% 19.8% 40.4% 7.9% -70.1% Average Graen Fee f81.09 373.3E A7R1S $40.18 E4018 U618 $5976 $8119 $7469 $8844 E9575 $9575 EBd fiB E6T 91 $6841 Avenge f Misc. Income Per RE f3AS $2.55 $1" $347 $2,21 $197 $1D 65 $303 E339 $345 $324 $3.14 f21J E165 $185 Avenge f Merchandise per Rd Total Avenge RevenOe per Round 58,89 $9112 $8.23 $86.15 9E32 wlu $500 $A6.68 $450 $47.16 $700 $5531 $600 A9A1 $750 $92.09 $7.00 S85.S1 $14 OD $106.49 $1000 $10931 $10.00 3109.15 E9.00 395.90 f]00 S1fi.fi8 $7.00 S]L30 2009-2010 ANNUAL PLAN SilwrR..kR..A SUNDATS: 36-MarL9 0102 PM Prolecbons -July 2009 to June 2010 Capital Expendrtures PREPARED By: Landmark Golf Managrmurt CAPITAL EXPENDRURES TOTAL JUL AUG. SEP. DOT. NOV. DEC. JAN. FEB. MAR. AP0. MAy JUN. GOLF OPERATIONS 3 GO.PYa. $ 1,800 $ 1,800 TOTAL GOLF OPERATIONS $ 1,800 $ 1,800 $ - $ - $ - $ - $ CLUBHOUSE 60 Seat Cushions ($30 EACH) $ 1,800 $ 1,800 TOTAL CLUBHOUSE OPERATIONS $---1,800 $ 1,800__$_ S _.7 !._..___E__..:... GOLF COURSE MAINTENANCE 1 Double Axe ublity Truk, $ 3,000 $ 3,000 mo RalnNre Romra. Hplece dw Hodder brlaatbn Heae• $ 6,599 $ 6,699 1 Computer&3FrMa RWimfor RalnnnElrr,ga onx MGSPwl3yearrmewal $ 12,176 $ 12,176 $ $ $_ '_ $ $- TOTAL GOLF COURSE MAINTENANCE _$ 21,776 $ 21,775 $ _-_ $ ---_-- $ _ $ __ _' _ __ __ _...$ __ TOTAL CAPITAL EXPENDITURES— $ 25,375 $ 25,376 $ - $ - $ $ $ - $ $ $ $ $ $ - EXPLANATIONS GOLF OPERATIONS Two 12) compute. will be needed to roPlaca a8rn9 egmP bbook CLUBHOUSE OPERATIONS Replace seal mahigne for I.h.u.--burs GOLF COURSE MAINTENANCE Double Rile Deny Trader la handed! to bwwoorn noulPmmt Ralothd Robot u, relexe Me Hunts In,gmon Hens. The tracing Hunter Hens we not durable and haw eamM coe0y nownNnanu Issues. ComW W 6 3 FreMom Redlasfw Rain Blyd It lgatm wlth GSP al yearrmewW. The current GSP contract extern ads winter. W N N 12 2009-2010 ANNUAL PLAN SllverRack Resort RUN DATE: 26 tlar49 08:41 AN Projectoons-Jul M09 to June 2010 PREPAREDBY: Landmark Golfblenagemmt Golf Reall Total JUL. AUG. SEP. MT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. Resident suits (Weekday) 5.285 290 243 419 68 540 4bb 33B 635 756 702 540 390 Resident Rnds(Werkend) S460 355 297 512 83 660 50 413 76 924 858 660 355 Sub -Total Resident Rnds 77,745 645 540 930 1S0 12M lat5 750 1410 1680 15W 12M 645 um of I n,d Public Rnds (Wekday) 030 4,904 242 203 349 56 450 388 281 529 00 585 450 242 Public Rads(Wekend) 5.383 2% 248 426 69 550 474 344 646 70 715 550 2% Sub -total Public Birds 9,788 538 450 75 125 1" 863 625 1175 1" 1300 1000 BOB 1'ofiatnl UT 1,7h2 97 81 IQ 23 180 155 113 212 252 24 ISO 97 Pubkc Tic,(Weekday) 118 99 171 28 22O 1% 138 259 SUB 286 2W 118 Pubkc Twi(Weekend) 2,153 310 50 400 US no 470 560 520 400 215 Sub -Total Tedg)d Birds 3,915 215 160 ae of rood 010 6,166 339 284 488 79 630 543 3W 740 881 819 630 339 Other (Weekday) 7,536 414 347 597 96 70 664 481 905 1078 1001 70 414 Other (Weekend) 2B0 242 175 329 392 364 280 151 Toonan,rds 2.741 151 151 126 126 212 217 35 35 280 242 175 329 392 364 no 151 IM�olesales 2,741 75 63 109 18 IQ 121 88 165 1% 182 IQ 75 Resident Gueat 1,370 109 18 140 121 88 165 1% 182 140 75 Stand By Golf 1,370 75 188 63 158 221 44 350 302 219 411 4% 455 350 188 D¢mm�is 3.426 38 32 54 9 70 60 44 82 98 91 70 38 PGA hour 685 685 38 32 54 9 70 60 44 82 98 91 70 3B Replay 685 38 32 54 9 70 60 44 82 98 91 70 38 Su1.Tota1 Other 13,703 753 630 INS 175 1" 12M 875 1645 1950 1820 14M 753 o ftatal Total Rounds 035, 39,150 21% 1" 3100 BOB 4000 3450 2500 4700 5600 5" 4" 2150 Green Fees $ 30M $ 30M $ 30W $ 3000 $ 45W 8 4500 $ 55W 8 55M S 5500 S 5500 E 9500 $ 4500 Resident Rads(WeekdaY) 30M $ Not) $ 30W $ 30W $ 45W $ 45M $ 5500 S 55W $ 55W $ 5500 $ 950o $ 450O Resident Rnds(Wekered S 45W $ 55M $ 85M $ 115 OO $ 10000 $ 175W $ 15000 $ 15000 $ 13500 $ 90 OD $ ad 00 Public Suds(Wekday) $ 45W $ $ 5500 $ 65M $ 10500 $ 1200o 8 105W $ 13000 $ ISOM $ 1WOO S 13500 $ 95M $ 9500 Public Bids(Wekend) $ 55M 400O $ 40M $ 400D $ 6000 $ 8500 $ 75M $ 850D $ 85M S 85M $ B000 $ 60M $ 65M Public Twl(Wekdav) $ S 50 AD $ 50M $ 70W $ 85 do S 750O $ 850D S 85W $ 8500 $ so 00 $ 70 D0 $ 75W Public Tic. (Weekend) S $ 50M 4000 $ 40M $ 5000 $ 55W $ 85W $ sow $ 90 do $ 95W 8 95 D0 $ 70W $ 6500 $ 65 Do Othef(Weekdae) 40W $ 4000 $ SO 00 $ 60M $ 8500 $ BOW $ SO do $ 9500 $ 93M $ 80M $ 75W $ 75M Oir,(Weekend) $ Golf Revenue $ 8,7W $ 7,290 $ 12,555 8 2025 8 29,300 S 20,959 $ 18,563 $ ?4,898 8 41,580 8 38,610 8 29,300 8 13,061 Resident Rod$(Weekday) 246848 $ 8,910 $ ISIA5 $ 2,475 $ 29,700 $ 25,616 $ 22,688 $ e653 $ 50,820 $ 47,190 $ 29,700 $ 15,964 Resident Rads(Wekend) WI,703 S 10,643 $ 4,781 $ 51,750 $ 38,813 $ 35,1% $ 79,313 $ 94,500 $ ]8,9]5 $ 40,500 $ 21,769 Public Rads(Wekday) 484,734 $ 10,884 S 9,113 $ 19,181 $ 7,219 S 66,000 $ 49,809 $ wblo S 96938 $ 113,500 S 96,525 $ 52.250 $ 28,084 Public Rands (Weekend) 614,591 $ 16,259 $ 13,613 $ 2],]06 1,350 $ ISMO $ 1116,14 S 9,5b.3 $ 1],9]8 $ 21,420 $ 18,720 $ 10180D $ 6,289 Public Twi(Weekday) 125,753 8 3R90 $ 3,240 $ 5,580 $ 8,525 $ Lan $ 18,700 S 14,231 $ 11,688 $ 21,97`3 $ 26,180 $ 2;880 $ 151100 $ 8,80 Public Tic, (Weekend) 161.233 $ 5,913 $ 4,950 $ $ 24,413 $ 4,331 $ 53,550 $ 43,470 $ 35A38 $ 70,324 $ 83,790 $ 51,330 $ 40,950 $ 22,011 Old,(Wekday) 460,491 $ 13,545 $ 11,340 $ 5,75 $ 65,450 $ 53,130 $ 43,313 $ 85,951 $ 102A10 $ SOON $ 5],]50 $ 31,041 Ohe,(Weekend) 585,152 $ 16,555 $ 13,860 $ 29,838 324,750 $ 257,6P1 $ 221,0i)4 $ 450,025 $ 536,200 $ 440,310 $ 2711650 $ 147J87 Total Reaenue 2,98g503 $ %,376 $ 72,315 $ 143343 $ 29,881 $ Avg. Rate 3 S ]8.13 - -$ 40.18 8 4018 8 4618 $ 5976 $ etl9 8 74.69 $ Basil 95.75 $ 95.75 $ 84.68 8 6791 68.41 - Will Revenue Club Rental ($ 30 per round) 26,168 $ 1,183 $ 990 $ 1,705 $ 275 $ 2,200 $ 1.898 $ 1,375 $ 4,900 $ SAM $ 2,860 $ 2.200 $ 1,183 Onvmg Range Santa ($➢5 per round) 441300 $ 2,150 $ 1,800 $ 3,100 $ Soo $ 4,000 $ 3.450 $ 2,500 $ 7,050 $ 8,400 $ 5,200 $ 4.000 $ 2,150 Rider Fees Sna $ 2,129 $ 180 $ 310 $ 5O $ 400 $ 345 $ 250 $ 470 $ 560 $ 520 $ 400 $ 215 Independent InslructOr Fees 9'" $ - $ - $ - $ - $ 1,500 $ 1.500 $ 1,500 $ 1.500 $ 1.600 $ 1.500 $ - $ - Bell Relrerval LOl0 $ I WO $ - $ 1.000 $ 1,000 $ 1,000 $ - $ - GPSAdveNsmglncome 12.00O $ lAOO $ 1.000 $ 1.000 $ 2,000 $ 2,000 $ 2,000 $ 1,000 $ 1,000 $ 1,000 Hantlic4p Fees (based on 200 @ $40) 8,000 $ - $ . $ - $ 1,500 $ 2.00D $ 2.500 $ 1,000 $ S00 $ NO $ - $ - $ - Tatal IOB296 $ 7.,l61 $ 3,970 $ 6,115 $ 5,325 $ 12,100 $ 11.693 $ 8,625 $ 15,220 $ 11,560 $ 11.080 $ 6.600 $ 3.548 W N 13 W 2009-2010 ANNUAL PLAN SllverRoek Resod Pr eG6one - July 2009 tO June 2010 RUN DATE a &D,Ae as Ur Am PRLPAREDBY Wedmeek Gruslamgeme r GOLF SHOP MERCHANDISE.61 TOTAL JUL. AUG. SEP, I OCT I NOV, DEC I JAN. I FEB I MAR I APR, I MAY JUN. O NOPM R XdNDI Fe TOTAL BOF ROUNDS 39,150 2,150 1,800 3.100 500 4.000 3,450 2,500 4,700 5.600 5,200 4,000 2,150 $7.00 AVERAGE REVENUE I ROUND $832 $5.00 $4.50 $7.00 $8.00 37.50 67.00 $14.00 $10.00 $10.00 $9.00 57.00 TOTAL MERCHANDISE SALES $325,550 10,750 8,100 21,700 3,000 30,000 24,150 35,0W 41,000 56,000 46,800 28,000 15.050 4Q550 57,150 211,608 6.988 5,265 14,105 119M 19,500 15,698 22,750 30,550 36,400 30,420 18,200 9783 Safi Goods $ales 7,595 1,050 10.500 8,453 12.250 16,450 19,600 16,380 9,800 5,268 Hard Goods Sales 113,M 3,763 2,835 TOTAL MERCHANDISE REVENUE 325,550 10,750 8,100 21,700 3,000 30,000 24,150 35,000 47,000 %,909 46.800 28,000 15,060 53.08% 53.08% 0.08% 53.08% 53.08% 53.08% 5308% 53.08% 53.08% 53.08% 53.08% 83.08% 53.08% COSTOFSAIES 179,053 5.913 4,455 11,935 1,650 16,500 13,283 19,250 25,850 30,800 25740 15.400 8.278 COS -Merchands.(58%) (8,953) (296) (223) (597) (83) (825) (664) (963) (1,293) (1,540) (1,281) (]]0) (414) Purehase Disc Taken -(5%) 89 67 179 25 2" 199 289 388 462 386 231 124 Freight - Merchandise 2,686 172,786 5,706 4.299 11,617 1,592 15,923 12,818 18,576 24,945 29,722 24,839 14,861 7,988 TOTAL COST OF SALES 152,784 5,044 3,801 10,183 1,408 14,078 11.332 16,424 22.055 26,278 21,961 13,139 7,062 GROSS PROFIT SALARIE&AND-BENEETS 161,627 12,479 12,479 13,240 6,027 14,924 14,924 15,114 15,114 15,114 14,324 14,134 13,754 Salaries and Wages 1,648 750 1,858 1,858 1,882 1,882 1,882 1783 1760 1,712 Payroll Taxes 20,123 1,554 1,554 713 756 344 852 852 863 663 863 818 807 785 Workers Compensation 9,229 713 480 480 480 480 480 180 480 480 420 Empbyee Meals 5,400 360 360 420 2,317 2,317 2.317 2,317 2,317 2.317 2,317 2.317 Health Insurance 26,811 1,986 1.986 1,986 2,317 TOTAL SALARIES AND BENEFITS 223,190 17,091 17,091 18,050 9,918 20431 20,431 20.656 20,656 20.656 19,722 19,498 18,989 OTHER EXPNR 2,950 300 300 300 503 300 300 150 200 200 200 100 100 Office Supplies 6,000 500 500 500 Soo 500 Soo 500 500 SM 500 500 500 Contract Services Merchandise Consultant 0 0 0 0 0 0 0 2,000 Dues and Subscnptens 2,000 0 0 0 25 0 0 0 0 0 0 Freight l DRoery 75 0 0 0 25 25 0 15 15 15 15 15 15 Travel 90 2,400 0 100 0 100 0 100 0 100 0 300 200 S00 200 200 200 200 200 Uniforms 840 70 70 70 10 70 70 70 70 70 70 70 70 Telephone 5,490 750 150 1.250 500 100 100 1,250 35 35 35 1,250 35 Seminars l Training 0 0 50 50 50 50 50 50 50 50 50 Miscellaneous 450 0 1,120 2.220 1,745 1,345 1,245 2,535 1,070 1,070 1.070 4.185 970 TOTAL OTHER EXPENSES 20,295 1,720 20.270 11,663 21776 21.676 23,191 21,126 21726 20,792 23.683 19,959 TOTAL EXPENSES 240,485 18,811 18,211 TOTAL GOLF SHOP MERCHANDISE INCOME(LOSS) (90,720) (1310) (14410) (10087) (10256) (76991 (10344) (6767) 329 4,552 1,188 (10,544) (12,897) Expendable Supplies are made up of Golf Can Rental Agreement, Golf Club Rental Agreements, GiR CaLlIcates 8 Merchandise Bags Uniforms- Each Full-Tme Emp reo0ives (1) shirt per month w N 14 der 2009-2010 ANNUAL PLAN SilverRock Resort BUN DATE 16M.rL9 02:39 PM Projections -July 2009 to June 2010 PREPABEDBV: bntlmn4 CaHMmv{emem CARTS, SAGROOM & RANGE- Ii TOTAL JUL I AUG. I SEP. I OCT. I NOV. I DEC. I JAN. I FEB. MAR. APR I MAV JUN. SALARIES AND BENEFITS 112,549 9.076 6,790 7,076 2,516 9,000 11,665 13,836 11,946 12,009 12,009 8,425 6,426 Salaries and Wages 14,012 1,130 845 881 313 1,132 1439 1,698 1487 1,495 1.495 1,049 1,049 Payroll Taxes 16,162 1.303 975 1,016 361 1,305 1,659 1,958 1 715 1,724 1.724 1,210 1.210 Workers' Compensation 6,960 420 420 420 540 660 660 720 720 720 720 480 480 Employee 7g44 662 662 662 662 662 662 662 662 662 662 662 662 Health Insurance TOTAL SALARIES AND BENEFITS 167,627 12,590 9,692 10,054 4,393 12,849 15,975 18,673 16,529 16,611 16.611 11,826 11,326 SUPPLIES AND MATERIALS 6,000 150 150 150 150 1.800 150 15(1 1,000 150 150 500 500 Expendable Supplies 72 72 72 100 72 72 72 72 72 72 72 72 Towel Replacement 892 19,400 400 400 400 15,000 400 400 400 400 400 400 400 4W Bottled Water 2,350 0 0 0 5W 1,000 500 75 75 50 50 50 50 Cad Supplies 0 0 0 6.000 0 0 0 0 0 0 0 Range Balls 6,000 0 100 100 400 400 1,250 1,000 500 500 25) 200 200 Handicap Expenses (Based on 200 @ $25ea) 5,000 100 TOTAL SUPPLIES AND MATERIALS 38,642 722 722 722 16,150 9,672 2,372 1.697 2,047 1,172 922 1,222 1,222 REPAIRS AND MAINTENANCE 300 300 300 300 300 300 300 300 3W 300 300 Equipment Repair - Golf 3,600 300 TOTAL REPAIRS AND MAINTENANCE 3,600 300 300 300 300 300 300 300 300 300 300 300 300 OTHER EXPENSES 526 25 25 25 50 50 50 50 50 50 50 50 50 Office Supplies 0 0 0 0 70 70 70 70 70 70 Prnting l Stationary 420 8,640 0 720 0 720 720 720 720 720 720 720 720 720 720 720 Cad Contract Services - ($9 per can per mo 80 cads) 250 250 250 250 250 250 250 250 Can Maintenance & Repairs 4,000 500 500 500 500 75 75 75 75 75 FreigSoo rDelivery 75 75 75 75 75 75 75 0 0 925 1, 500 200 Uniforms 6,625 6,000 0 500 0 500 0 500 2.500 500 500 500 0 500 500 500 500 500 500 500 Laand Linen Laundry 75 75 75 75 75 75 75 126 125 125 125 Miscellaneous 1,160 125 TOTAL OTHER EXPENSES 27,260 I'm 1,895 1,695 4,420 2,170 1,670 1,740 1.740 2,716 1,790 3,290 1,990 TOTALEXPENSES 227,129 15,557 12,609 12,971 26,263 24,991 20,317 22,410 20,616 20,798 19,623 16,638 15,338 Expendable Supplies are made up of - Scorecards, Tees, Pencils, Trash Bags, Cups & First Aid Supplies Uniforms- Each employee receive 4 shirts, 1 hat Per season N 15 c,.n 200&2010 ANNUAL PLAN Sllvedi«k Rawd RUN DATE. 26Mar-09 08:41 AM P..-,July 2009b June 2010 PREPARED BY: Landmark Golf Man..erneet SALAKIC.rv. CEKCmn Salaries and Wages 36,240 2.040 2,040 2,160 480 2.880 4.320 5,040 5,040 5,040 3,120 2,040 2,040 254 Payroll Taxes 4,512 254 254 269 60 359 538 627 627 627 288 388 178 254 116 116 Workers Compensation 2,069 116 116 123 27 164 247 360 288 420 288 420 420 360 180 180 Employee Meals 3,300 180 180 180 180 747 240 3,643 5,465 6,375 8,375 6,375 4,047 2.590 2,590 TOTAL SALARIES AND BENEFITS 46,121 2.590 2,590 2,732 SUPPUES AND MATERIALS 50 50 100 100 100 100 100 100 100 100 75 75 ExpentlabIs Supplies 1,080 50 100 100 100 100 100 100 100 100 75 75 TOTAL SUPPLIES AND MATERIALS 1,050 50 OTHER EXPENSES 1,900 75 75 75 750 75 75 75 75 75 400 75 75 Uniforms 600 50 50 50 50 50 50 50 50 50 50 50 50 Safety Equipment 200 0 0 0 50 50 50 50 0 0 0 0 0 Miscellaneous 125 125 850 175 175 176 125 125 450 725 125 TOTAL OTHER EXPENSES 2,701 125 TOTAL COURSE SERVICES EXPENSES 49,872 2.765 2,765 2,957 1,697 3,918 5.740 6,651 6,600 6,600 4.597 2,790 2.790 Expendable Supplies are made up of Clipboards, Paper (starter sheets, ranger sheets), Towels, Trash Bags Uniforms- Each employee receives 4 shots, 1 hat per season w N 16 2009-2010 ANNUAL PLAN SllverRock Resort RUN BATE 26M.1-09 .it AM Pro actions - Jul 200H lB June 2010 PREPARED BY Lanemi con Mnn.Pmmt MAINTENANCE DEPARTMENT -63 TOTAL JUL. AUG. SEP. OCT NOV DEC. JAN. I FEB. I MAR. R. I MAY I JUN. E9 A D ENEFITS 687,712 57,306 57,306 57,306 51,306 57,306 5I,300 5],300 5],306 5],310 5],31a 5],310 ,316 52.808 Salaries and Wages 0 0 0 10,312 3.114 0 0 0 0 0 0 2,806 OverOma Houdy Wages 16.1 87,611 7,135 7.135 7,135 8.418 7,522 7,135 7,135 7,135 7.136 7,136 7,136 7,485 Payroll Taxes 39,887 3,272 3,272 3.272 3.665 3,391 3,272 3,272 3,272 3,273 3.213 3.273 3.380 Wodmrm'CompensaBon 2,880 240 240 240 240 240 240 240 240 240 240 240 240 Employee Meals 104.880 8,140 8,740 8,740 8740 8,740 8.740 e,740 8,740 8740 8.740 8.740 e,740 Health Insurance TOTAL SALARIES AND BENEFITS 939,234 Tfi,693 76,693 ' 76,693 88,681 80,313 76,693 76,693 76,693 76,705 76,705 95,200 5,W0 11,500 9,600 18,100 51000 12,000 5,500 8,000 5.000 5,000 5,000 51000 Femhzer 3,500 0 0 1,000 250 0 11000 950 100 100 100 FlowerarPlanis 3.600 3,600 3,750 6,500 4.180 3,100 2.950 3,000 3,100 3,600 2.860 2,860 Gas &Oils 43,100 8,000 200 200 200 6,000 200 500 200 100 100 100 100 100 Golf Course Accessones 3,500 2,500 3.500 4.500 2,700 2.200 2,000 2,000 1,500 2,000 90D 2,000 Chemicals B Peseades 29,300 0 0 3,500 0 3,500 0 0 0 0 0 POA Control 7,000 0 390 0 390 5,000 2,000 2,01%1 800 380 100 100 100 100 100 SandlMulchBunker 11,1 350 350 250 98,060 350 350 350 350 350 350 350 350 Seed 101,810 5,000 100 100 2,000 2.000 100 100 to 100 100 100 100 100 Small Tools 5,750 1,000 1,000 1.000 250 250 250 500 0 0 0 500 1,000 Sod 7,600 1,250 1250 0 2,500 0 0 0 0 0 0 1.300 1,300 Topdmasmg 317,720 15,890 20,690 26,300 1,10,160 18,280 20,300 16,430 13,750 10,350 11,350 11,210 121 TOTAL SUPPLIES AND MATERIALS REPAIRS AND MAINT NAN 1,750 250 250 250 0 0 0 250 250 0 250 250 Buildings B Bndges 4,400 4,400 4,400 10,000 2.000 1.500 1,500 1,500 1,500 1.500 1.500 1,500 Equipment 35,700 2,100 2,200 2,000 Rod 550 1,200 1,000 1,000 1,000 11000 I'Dop Irnganon System 16,050 2100 1.000 1.000 1,090 l.wo 1,000 1,000 1,000 1.000 500 0 Pumps 10,500 1,000 1.000 1,500 2,500 500 500 2,500 500 1.500 1,500 1,500 1.500 1,500 SW Aqua0cs Lake Mami Contract 17.000 1,500 0 0 0 0 2,000 4,000 0 0 Trees 10,050 0 0 3,500 550 9,250 11.850 14,050 4,400 5,550 4,650 5,250 ],000 9,000 4,750 4,250 TOTAL REPAIRS AND MAINTENANCE 91.050 9,250 w N V 17 2009-2010 ANNUAL PUN 811XerR,.k Resort sun e4T6 H rai war •m Projection, - Jul 200, ar Jun, 2010 P9ee4R29 By us4-1, GOX s6istormr MAINTENANCE DEPART110E111-83 1 OTAI 1 5 q I AUG. I SEP. I CT. NOV. I DEC I JAN I FEB I MAR. I APR. I MAY I JUN. OMEREXPENSES Contract Services Soinssue Tests 4,000 0 0 2.000 Dues and Subscriptions 900 200 0 0 Employee Education 1,550 50 50 50 Equipment Rental 4,200 200 150 150 Auto Expense 6,000 500 500 500 Licenses and Penolls 680 100 100 BO Miscellaneous 1,200 IN 100 100 Supplies Miscellaneous 4,350 750 750 750 PropaneiNatural Gas 600 50 50 50 Safety Eguipmeri Training 2,600 100 100 No Taleph.n&DSL 10,200 850 850 850 Green West. Removal 6,288 524 524 524 Umi.ans 6 L raun eels 9,840 820 820 820 TOTAL OTHER EXPENSES 52,408 4,244 3,994 6,774 0 0 0 0 0 0 0 2.000 0 0 2W 0 0 200 0 200 0 IN 50 50 SO 50 1.000 50 50 50 50 1.800 600 200 200 200 200 200 200 100 500 500 500 500 500 500 Soo Soo Soo 0 0 0 0 0 250 150 0 0 IN IN 100 IN 100 100 IN IN IN 500 500 500 too 100 100 IN 100 100 50 50 50 50 50 50 50 50 50 200 200 200 200 200 200 100 100 100 850 850 850 850 850 850 850 850 850 524 524 524 524 524 524 524 524 524 A2n 820 820 820 820 820 820 820 820 TOTAL MAINTENANCE EXP.(EXCL Landscaping) 1,400,412 106,077 110,82] 123,61T 348,285 10].]e] 106,33T 100,98i 100,23] 97,699 100,699 97,959 100.323 4,500 LANDSCAPE 13.000 12.200 12.700 13,100 11,400 13,800 12,600 91600 140,544 11,712 11,712 11,712 11,712 11,712 11712 11,712 11,712 11,712 11,712 11,712 11,712 Wages 5,272 0 0 811 2,839 811 0 0 0 0 0 0 811 Cv rtlme Hourly Wages 1,458 1,559 1,812 1,559 1,458 1,458 1.458 1.458 1.458 1,458 11559 Paymll Taxes 18,154 1,458 TTT 700 669 669 669 669 W9 669 700 Workers' Compensation 8,229 669 669 700 2,311 2,31] 2,31T 2,31T 231T 231T 2,31T 2,31T 2,31, Health Insurance Landscape Wages B Benefits 2T,804 200.003 2,31T 16,156 231T 16,156 231T 1T,099 19AST 1T,099 16,156 16,166 16156 16,156 16.156 16,156 1],099 Small Tools 1,025 100 100 100 100 100 75 75 75 250 75 250 TS 250 75 250 75 500 Repaus B Maintenance- Drip Irrigation 4.250 250 250 500 500 NO 500 250 290 290 290 290 290 290 Uniforms 3,480 290 290 290 290 290 290 TOTAL LANDSCAPE MAINTENANCE 208,758 16796 16,7911 17,989 20,347 17,9B9 17,021 16.171 16,771 167T1 16,TT1 16,771 114,730 17,964 11812M COURSE B LANDSCAPE MAINTENANCE TOTAL 1.609.170 122,614 1211623 141.606 258,632 125.376 123.358 117,738 117,008 114,470 117,470 (EXCL UTILITIES) WATER 6 ELECTRICITY COSTS 3,034 3,254 1,349 1,349 1,504 1.427 1,504 1.504 1,659 1,814 Water Cost 21,671 70.000 1,814 5,000 1,659 5,000 51000 5,000 7,000 7,000 Two 7,000 7,000 51000 51000 5,000 Electricity Pumping Costs 8,034 8.254 8,349 8,349 8.504 8,427 9.504 6,504 6,659 6,814 TOTAL WATER AND ELECTRIC COST 91,871 6.814 6.659 134,282 1.... 2T8,88. 1a4",o 131,707 126,242 125.434 122,W/ 123,W4 t21,38a 125,t02 TOTAL COURSE MAINTENANCE EXPENSES 1701,041 129,687 C li N 00 18 2009-2010 ANNUAL PLAN SllverROok Resort Projections - July 2009 to June 2010 RUN DATE: E Mnr- 01:02 PM PREPAREDDY: L=stvirkGKMeugemmt G B A DEPARTMENT -67 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. I MAR. APR. MAY I JUN. SALARIES AND BENEFITS 206,256 17,186 17,188 17,188 17,188 17,188 17,188 17,188 17,188 17,188 17.188 17,188 17,188 Salaries and Wages 25,679 2,140 2,140 2,140 2,140 2,140 2.140 2,140 2,140 2,140 2,140 2,140 2.140 Payroll Taxes 11,777 981 981 981 981 981 981 981 981 981 981 981 981 Workers' Compensation 2,160 180 180 180 180 180 180 ISO 180 180 180 180 180 Employee Meals 17,496 1,458 1,458 1.458 1,458 1,458 1,458 1.458 1,458 1,458 1,458 1,458 1,458 Health Insurance 263,368 21,947 21,947 21,947 21,947 21,947 21.947 21,947 21,947 21,947 21,947 21,947 21,947 TOTAL SALARIES AND BENEFITS REPAIRS AND MAINTENANCE 100 100 100 100 700 100 100 100 100 100 100 100 Equipment Repair 1,200 100 100 100 100 100 100 100 100 100 TOTAL REPAIRS AND MAINTENANCE 1,200 100 700 100 OTHER EXPENSES 1,500 125 125 125 125 125 125 125 725 125 125 725 125 Office Supplies 3,200 0 100 100 100 100 400 400 400 400 400 400 400 Printing/Stationary 75 75 75 75 75 75 75 75 75 75 75 Postage 900 75 0 0 500 500 500 500 200 200 200 0 0 0 Recruiting /Relocation 2,600 SO 50 200 ISO 150 50 50 500 50 Dues and Subscnpbons 1,600 50 0 200 50 50 50 50 50 50 Freight l Delivery 600 50 50 50 50 50 SO 0 0 100 0 200 Soo 200 Travel I'm 2,600 0 100 100 100 0 100 0 100 0 100 100 1.500 100 100 100 100 100 Entertainment & Promotion 4,800 400 400 400 400 400 400 400 400 400 400 400 400 Auto Expense 4,200 350 350 350 350 350 350 350 350 350 350 350 350 Equipment Rental(Copier/Storage) 100 100 100 100 100 100 100 100 100 Non -Capital Equipment 900 0 0 75 75 75 75 75 75 75 Uniforms 1,050 4,800 75 400 75 400 75 400 150 400 150 400 400 400 400 400 400 600 400 Professional Fees (I.T. &Safety Fees) 200 200 200 200 200 200 200 200 200 200 Seminars/Training 2,400 200 550 200 550 550 550 550 550 550 550 550 550 550 550 Payroll Processing 6,600 10,800 800 800 800 800 800 800 2,000 800 800 800 800 800 Computer Supplies (POS Support Fees) 90 90 90 90 90 90 90 90 Bank & ADP Fees 1,080 90 90 90 90 100 100 100 100 100 100 100 100 100 Miscellaneous 1,200 100 100 100 TOTAL OTHER EXPENSES 51,530 3,365 3,515 4,215 4,140 4,140 4,515 6,765 4,265 4,065 4,065 4,815 3,985 318,398 25,412 25,562 26,262 26,187 26,187 26,562 28,812 26,312 26,112 26,112 26,862 26.012 TOTAL G8AEXPENSES Uniforms- Benefit to be shared betvreen GM & Controller Entertainment & Promotion- GM promoting property for potential clients Cu 19 N CD 2009.2010 ANNUAL PLAN SltverRock Resort Pmjectlons • Jul 2"as to June 2010 MARKETNG S Mer-09 06:41 AM PREPAREDBY: Lmdmerk Golrsia.w.mt MARKETING DEPARTMENT• 66 1 TOTAL I JUL. I AUG. I SEP. OCT. NOV. DEC. 1; i I FEB. I MAR. I APR. I MAY I JUN. RI 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 Salaries and Wages 3,735 311 311 311 311 311 311 311 311 311 311 311 311 Payroll Taxes 1,713 143 143 143 143 143 143 143 143 143 143 143 143 Workers Compensation 60 60 60 60 60 60 60 60 60 Employee Meals 720 60 60 60 331 331 331 331 331 331 331 331 331 Health Insurance 3,972 331 331 331 TOTAL SALARIES AND BENEFITS M, 140 3,345 3,345 3.345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 OTHER EXPENSES Office Supplies Printing I Stationary Postage Contract Services Web Page Dues and Subscriptions Uniforms Telephone Civet, Community and Trade Show Public Relations Promotions I Meals Promotion - (Media, Vendor Days, etc Advertising (Ad Purchases) Collateral Material -(Yrd Skis, Rack Cps, Slam Brochures) Miscellaneous TOTAL OTHER EXPENSES TOTAL MARKETING EXPENSES 1,200 100 100 100 100 100 100 100 100 1W 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 2,100 175 175 175 175 175 175 175 175 175 175 175 175 735 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 2,926 75 75 75 750 750 750 75 75 75 75 75 75 6,500 0 0 500 500 4 000 500 500 500 0 0 0 0 300 25 25 25 25 25 25 25 25 25 25 25 25 700 0 0 0 5o 50 50 300 50 50 50 50 50 1115,984 2,137 5,227 16,207 11,387 19,877 21,577 27,937 26,777 21,127 18,477 8,477 6,777 9,000 0 0 0 2,500 1,000 0 2,500 500 500 500 1,000 500 350 0 0 0 0 M 50 50 50 50 50 50 216,619 2,662 5,752 17,432 18,937 26,427 23,627 32,097 28,977 22,727 19,777 10,227 7,977 266,759 6,007 9,097 20,777 22,282 29,772 26,972 35,442 32,322 26,072 23,122 13,572 11,322 PfonlotlpnlMeals - Oft property events (Chamber Mixers, Rotanes and entertaining potential clients) PromotioNMedialVendor Days -Rad,01TV Onsite Broadcasting Vendor Days - ShoW casing property in exchange for positive publicly co w O 20 2009-2010 ANNUAL PLAN SllverRock Resort MAREETING zs.Mm-m 08:41 AM PTectlons - Jul 2009 to June 2010 PRTAREDBY: Landmark GUDManagement TEMPORARYCLUBHOUSE-800 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. TAN. FEB. MAR. APR. MAY JUN. SUPPLIES AND MATERIALS Supplies 4,800 400 400 400 400 400 400 400 400 400 400 400 400 Expendable 4,300 400 400 400 400 400 400 400 400 400 400 400 400 TOTAL SUPPLIES AND MATERIALS REPAIRS AND MAINTENANCE 200 200 200 200 200 200 200 200 200 200 200 200 Building Structures 2,400 4,800 400 400 400 400 400 400 400 400 400 400 400 400 Restaurant Repairs Repair 4,800 400 400 400 400 400 400 400 400 400 400 400 400 Equipment TOTAL REPAIRS AND MAINTENANCE 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 OTHER EXPENSES 22,500 1,825 1,825 1,825 2,425 1,825 1.825 1,825 1,825 1.825 1,825 1,825 1825 Contract Serves Cleaning 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 Telephone 3,800 317 317 317 317 317 317 317 317 317 317 317 317 Cable -Roadrunner 2,400 200 200 200 200 200 200 200 200 200 200 200 200 Water 2,400 200 200 200 200 200 200 200 200 200 200 200 200 Sewer 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Safety Equipment 3,600 300 300 300 300 300 300 300 300 300 300 300 300 Natural Gas 2,600 100 100 100 100 100 100 1,500 100 100 100 100 100 Flowers and Decorations 98,400 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 Building Sammy(Rovmg Patrol) 2,400 200 200 200 200 200 200 200 200 200 200 200 200 Miscellaneous TOTAL OTHER EXPENSES 151,300 12,442 12,442 12,442 13,042 12,442 12,442 13,842 12,442 12,442 12,442 12,442 12,442 TOTAL CLUBHOUSE EXPENSES 16,100 13,842 13,842 13.1 42 1,442 :1 ;i 13,84E 15.242 13,842 1;i : 13.842 13,842 13,842 Expendable Supplies made up of Locksmdh, Trashbags, Lightbulbs, Mats, Items related to Maintenance of Clubhouse co co 21 2009.2010 ANNUAL PLAN SllverRock Resort nun DATE: m-4Pr.n9 le"Am Projections- July 2009 to June 2010 PREPAREDBY l do GuV.......I MIS DEPARTMENT - 980 & 990 TOTAL I JUL. I At SEP. I OCT. I NOV. DEC. JAN. FES. MAR. I APR. MAV JUN. MISC OTHER EXPENSES 90,000 25,987 22.394 10.794 15,661 (1,524) 11,445 (383) (2,340) (10,090) (6,601) 5,359 19,299 Management Fee - Fixed 598 6,495 5,153 4.422 9.001 10.724 8.806 5,433 2.942 FF&E Reserve (2.0%) 69,610 1,728 1,446 2,863 3.500 3.500 3,500 3,500 3,600 3,500 3,500 3,500 General Liability Insurance 42,000 3.500 3,500 3,500 3.500 Property Taxes - Regular ($ISM @ 1.25%) 0 0 0 0 Personal Property Taxes 20,000 20,000 0 0 0 0 0 0 0 0 211,610 51.215 27,341 17,157 19,759 8,471 20,098 7,539 10,160 4,134 5,705 14,292 25,740 LEASE EXPENSES 11,581 11,581 11,581 11.581 11,581 11,581 11,581 71,581 71,581 Gott Cart Leases 138,972 77,581 71581 11,581 600 600 600 600 600 600 600 600 Trailer Leases 7,200 600 600 600 600 0 0 0 Computer l Software Lease 8,232 1,372 1,372 1,372 1,372 1,372 1,372 0 0 0 7,400 7.400 7.400 7,400 GPS Lease (Up -Link) 88,800 7,400 7,400 7,400 7,400 7,400 7,400 7.400 7,400 189,000 16,500 16,500 16,500 16.500 16.500 16,500 15,000 15,000 15,000 15,000 15,000 15,000 Golf Course Maintenance Equipment Leases 432.206 37,45J 37,453 37,653 17,453 37,453 37,463 34,581 34,581 34,681 34,581 34,581 34,581 CO w N 22 20094010 ANNUAL PLAN si ndtoel,.. RUN DATE: 26-Mm,49 08.41 AM Projections -July men m Jane" I- PREPAREDBV: Landmark Coif Management FOOD 6 BEVERAGE DEPT-62 TOTAL JUL 1 11 SEP. OCT. NOV. OEC JAN FEB.I MAR. APR. I MY JUN. FOOD REVENUE TOTAL NUMBER OF ROUNDS 39,150 2,150 1,800 3,100 500 4,000 3,450 2,500 4,700 5,800 5,200 4,000 2,150 RIL ROOMTERlRA AVERAGE FOOD REVENUE PER ROUND $4.26 $300 $300 $450 $375 $450 $390 $900 P50 $425 $400 $375 $300 TOTAL SNACK SHOP FOOD REVENUE 168,830 6,450 5,400 13,950 1.875 18.000 13,455 22,500 21,150 23,800 20,800 15,000 6,450 REVERAGECARTS AVERAGE FOOD REVENUE PER ROUND $2.03 $150 $125 $125 $225 $375 $240 $350 $220 $200 $175 $125 $125 TOTAL BEVERAGE CART FOOD REVENUE 80.833 3.225 2,250 3,0]5 1,125 15,000 8,280 B,750 10,340 11,200 9.100 5,000 2,668 AVERAGE FOOD$ PER ROUND $6.29 $450 $425 $575 $600 $825 $630 $1250 $670 $625 $575 $500 $425 BEVERA- REV N TOTAL NUMBER OF ROUND$ 39,150 2,150 1,800 3,100 500 4,000 3,d50 2,500 4,700 5,600 5,200 6,000 2,150 -RII I ROOMTERM AVERAGE BEVERAGE REVENUE PER ROUND $2.38 $150 $150 $200 $250 $225 $200 $500 $225 $300 $300 $175 $175 TOTAL SNACK SHOP BEVERAGE REVENUE 95,513 3,225 2,]00 8,200 L250 9,000 Q900 12,500 ID,5]5 16,800 15,600 TOM 3.]83 465]% BEV RF AGE CAR< AVERAGE BEVERAGE REVENUE PER ROUND $2.71 $200 $200 $200 $200 $200 $200 $400 $300 $300 $300 $375 $375 TOTAL BEVERAGE CART BEVERAGE REVENUE 109,563 4,300 3,600 6.200 1.000 6,000 8,900 10,000 14,100 16,800 15,600 15,000 B4Ofi3 AVERAGE BEVERAGE$ PER ROUND $ 534 % 11.38 $350 $350 $400 $450 $425 $400 $900 $525 $600 $600 $550 $550 w Co 23 w 2009-2010 ANNUAL PLAN SllwiPeek noon RUN DATE: 2f-MarA9 08:41 &M Proictinm- July 1009 to Jum"Is PREPAREDBY: Landmark Golf Mnn.Brmrnt FOOD BEVERAGE DEPT-62 TOTAL JUL. AUG SEP. OCT. NOV DEC JAN. FEB. MAR. APR MAY JUN. Snack Shop]ferm. Food 168,830 6,450 5,40E 13,950 1,875 181000 13.455 22,500 21,150 23,800 20,800 15,00E 5,000 6,45E 2.688 Beverage Cad Food 80,833 3,225 2,250 3,875 1,125 15,000 8,280 8,750 10,340 11,200 9,100 Other Food Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Non -Taxable Tournament Site Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 More Non -Taxable Site Fees (Weddings) 12.05 0 0 2,350 7,060 3.085 36,085 21,735 31,25E 31,49E 35,00E 29,90E 20,00E 9,138 TOTAL FOOD REVENUE 662.158 9,675 7,650 20.175 10.060 BEV R - REV NU Snack ShopRenace Bear& Wine Snack ShoplTerrace Sodas Beverage Cad Beer E Wine Beverage Cart Sodas TOTAL BEVERAGE REVENUE TOTAL FOOD &BEVERAGE REVENUE COS - Food (37%) COS - Bear & Wine (25%) COS - Sodas (27%) TOTAL COST OF SALES GROSSPROFR Salanes and Wages Payroll Taxes WOAers' Compensation Employee Meals Health Insuranw TOTAL SALARIES AND BENEFITS JPPLJES AND MATERIALe Expandable Supplies Bar Utensils Menus, Napkins and Placemats TOTAL SUPPLIES AND MATERIALS Equipment Repair TOTAL REPAIRS AND MAINTENANCE OTHERSES Office Supplies Phone Equlpment Rental Non -Capital Equipment Uniforms Laundry and Linen Lease Payment Bank Fees Seminars J Training Cleaning Supplies Licenses and Permits Miscellaneous TOTAL OTHER EXPENSES TOTAL EXPENSES TOTAL FOOD 6 BEVERAGE PROFIT 11-wr) 47,756 1,613 1,350 3,10E 625 4,500 3,450 6,250 5,288 8,40E 7.800 3,500 1.881 47,756 1.613 1.350 3.100 625 4.500 3,450 6.250 5,288 8,60E T,800 3,50E 1,881 54,701 2,15E 1,800 3,100 500 4,00E 3,450 S,o00 7,050 8,400 7.60G T500 4,031 54,781 2,15E 1,80E 3,100 500 4,00E 3,450 5,00E 7,050 8,400 7,800 7,500 4,031 2OK0�6 7,525 6,300 12,40 2,250 17,00E 13,80E 22, 24,fi]5 33,fi0 31,20E 22,00E 11,625 467 2 17,200 13,85E 32,515 12,31E 5],085 35,53 53,T5 SQ18 68,fi00 61,1E 62,00E 20.98 92,375 3,58E 2,831 6,595 1,110 12,210 8,042 11,563 11,651 12,950 11,063 7,400 3,381 25,634 941 788 1.550 281 2.125 1,725 2,813 3,084 4,200 3,90E 2,750 1,478 27,685 1,016 851 1,674 304 2,295 1,863 3,038 3,331 4,536 4,212 2,970 1,596 14$695 5,536 4,489 9, 19 1,695 16,630 11.630 17,413 18,067 21.686 1 ,175 1 ,120 6.455 1,5]e H. 1 ,455 .338 . 10 188,074 15.147 15,147 16.369 8,558 16,107 16,292 16763 16,763 16,903 16,903 16,578 16,543 24.280 1.956 1.956 2.113 1,105 2.079 2.103 2,164 2.164 2.182 2.182 2,140 2.136 10,739 865 865 935 489 920 930 957 957 965 965 947 945 6,960 640 AO NO 600 600 fi0u NO 800 600 6. 3,310 e. 3,310 SCO 2,979 38.396 2,979 2,979 2,979 3.310 3,310 3,310 3.310 3,310 3,310 668, 21,487 21,487 22,936 14,062 23,011 23,236 23,794 23,794 23,960 23,96E 23.575 23,142 5,400 300 300 300 300 600 No 600 600 600 No 300 300 1.250 150 100 100 100 100 100 100 100 100 100 350 100 350 100 350 3,825 175 175 175 500 250 250 550 350 350 10,419- 625 575 STS 900 950 950 1,2W 1,05E 1,05E 1,05E ]50 750 2,400 200 200 200 200 200 200 200 200 200 200 200 200 2,"0 200 200 200 200 200 zoo 200 zoo 200 zoo 200 200 1,50E 100 100 100 250 250 100 100 100 100 100 100 to 840 TO 109 70 109 10 109 70 109 TO 109 To 109 70 109 70 109 TO 109 TO 109 TO 109 TO 109 1,308 600 50 50 50 50 50 50 50 50 50 50 50 50 3,050 150 150 150 650 150 400 500 600 1So 400 150 dust 150 400 550 600 1So 400 150 400 4,650 12,000 400 500 400 500 400 500 250 1.500 1,500 1,500 1,500 1,500 1,500 500 500 500 4.020 336 335 335 335 335 335 335 335 335 335 335 25 335 25 750 250 250 25 250 250 250 25 250 25 250 25 250 25 346 25 350 25 350 25 350 350 350 3,596 900 6,400 1,500 5,500 125 125 125 125 125 125 125 125 125 125 125 125 60,214 7,839 2.114 2,339 3.614 3,264 3,46E 3,21E 3,214 4,114 2,614 2,214 2,214 30,151 26,W6 26,05E 18,]]6 2T,431 2],850 28,4 4 28,258 29,32 2].624 26739 2fi,306 1 14,8 4 1 83 41 Supplies Expendable is made up of Smalhsares, Papergoods, First -aid Undorms- Each employee receives 4 shirts, 1 hat per season co W 24 SilverRock Resort 2009-2010 Marketing Plan Narrative OBJECTIVE: 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. The July 2009-June 2010 Marketing Plan is built around an annual Marketing Budget of $256,759. The Marketing Plan includes: advertising and promotions, collateral materials, civic and community networking, public relations, golf/consumer trade shows, and internet websites and e- mail marketing. ADVERTISING and PROMOTIONS Advertising and promotions are targeted for La Quinta Residents and tourist/resort golfers through advertising and media coverage in local, regional and Southern California golf and travel publications. Advertising consists of local newspaper, golf and travel magazines, regional directories, local television and area radio. Advertising is budgeted at $185,984 for 2009-2010. Newspaper advertising is placed in The Desert Sun with primary emphasis on the sports enthusiasts with weekly "ear ads" appearing on the front page of the Sports Section; ear ads are visible to all readers of the paper. Newspaper advertisement makes up 15% of the Marketing Budget. Special promotions are designed, as needed by season, and placed in various print advertisements. Magazines and directories consist of local and regional magazines, yellow pages and golf -related directories. These ads vary from full page to quarter page ads and are full color. Magazines and directories compose over half (65%) of the advertising budget. Television commercials (30 seconds) are placed on all three (3) local network affiliates (CBS2, KESQ3-ABC, KMIR6-NBC) and Time Warner cable stations. Local radio is used for 30-second spots and specific promotions. TV and radio ads make up 20% of the advertising budget. 25 335 COLLATERAL MATERIALS Rack cards, scorecards, and information packets presenting SilverRock Resort are used as marketing tools for SilverRock Resort. An emphasis will be placed upon SilverRock's participation in the Bob Hope Chrysler Classic. Printed material will be produced, as needed, to promote SilverRock Resort as a Home Course of the Bob Hope Chrysler Classic. CIVIC AND COMMUNITY NETWORKING AND TRADESHOWS SilverRock Resort is positioned as a community -friendly golf facility and is committed to developing strong relationships with community organizations such as the La Quinta Chamber of Commerce and various local service organizations. At various venues locally and around Southern California, trade shows and expos are held that provide an opportunity to promote SilverRock Resort. These trade shows and expos are focused on tourism, golf and golf equipment/apparel, recreation, weddings and other related industries and businesses. TOURNAMENTS & GROUP OUTINGS A continued concentrated effort to attract corporate and group outings will be positioned through various networking opportunities. Tournament business represents a large amount of outside play and is vital to SilverRock's success. JUNIOR GOLF SilverRock will continue to support local Junior Golf by offering various Summer Junior Camps, Junior Rates and being a host course for the La Quinta High School Boys Golf Team. INTERNET WEBSITES AND E-MAIL MARKETING A benefit of memberships in selected local Chambers of Commerce and the Convention and Visitors Authority is access to cross -marketing opportunities through website links to SilverRock Resort. E-mail database marketing is targeted to consumer e-mail addresses that are collected daily through comment cards, tee -time bookings, selected websites and the La Quinta Resident renewal process. This e-mail database is used to send e-mail blasts promoting SilverRock Resort and/or to offer specials during slower days of the seasons in an effort to maximize tee sheet utilization. 26 336 SilverRock Resort -Arnold Palmer Classic Course GOLF RATES 2009-2010 Reservation Type Book 90 Daysl Public Public Twi Replay (Booked After Rnd) Bock 3 Days! La Ownta Resident U ou:ma Revdmt caaat(20%0 pcclea rain) Book 990ays1 Wholesale Wholesale Twilight tFock 1 Da PGA PAID Junior Rate (Before 2 00 p m.) Junior Rate (After 2 00 p.m.) (Book 1Da 2009 2009 Julyi-SePL20 July 1-sept 20 n•Thu n $ 55.00 $ 65.00 $ 40.00 $ 50.00 $ 25M $ 25.00 $ 30.00 $ 30,00 $ 44.00 $ 52.00 Is 68.00 $ edoo $ 50,W E 60.00 E 7S,W $ 65.W $ W.00 $ 35.W $ 50.00 $ 60.W E 25.001 $ 25.00 $ 25. 25.00 $ 10.Ot100 $$ 10.00 $ 25.W $ 25.00 $ 1-00 $ 25.00 E 15.00 1 $ 16A0 n4 Fri ra tr rt to 2010 2010 Dec. 264r.30 Dec. 26-A r.30 M n-Th M Fd-Su $ 165.00 $ 165.00 $ 95.00 $ 95.00 $ 50.00 $ 50.00 $ 55.00 $ 55.00 Is 132.00 1$ 132.00 3123/2009 2010 2010 uJ0ns30 May 1-Junem $ 86.00 $ 105.00 $ 6540 $ 76.01) $ MOD $ 35.00 $ 45.00 1 $ 46.00 $ 66.0 $ 64.00 Is 135.00 $ 135.00 1 $ 75.00 i 85.00 Is 75.W $ 75.00 $ 40.00 $ 55.W 35.00 $ 25 DO $ 25.00 $ 1500 $ 15.W S 25.00 $ 25.00 25 fi . $ 25W $ 152,W09 $ 15.00 Stand By Golf Ratesto varybasedupanactualbookmgs Rates to vary based upon actual bookings Rates to vary based upon actual bookings Rates to vary based upon actual bookings Rates to vary based upon actual broke, (Book Up to 1 Year) Groups(13.) Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates NegouatedRates Negotiated Rates Negotiated Rates NegotiatedRales " Juniors are 17 and under ' All rates to include green fee, golf cart limited amount of range balls prior to round except golf cart for Juniors ` Non golfers -ride alongs-must abide by dress code, riders permitted based upon availability at a rate of $25 per cider ' Gry Employees -Prevailing Resident Rates OTHER FEES Range Not Plavino Rate/Fee 1 Hour $ 10.00 All Day Range Fee $ 25.00 Rental Clubs $ 45.00 Handicap Membership $ 45.00 Golf Lessons 1 Hour $ 75.W 112 Hour $ 50.00 W W 27 SILVERROCK RESORT ANNUAL PLAN 2009-2010 Bob Hope Assumptions OPERATIONAL EXPENSES Revenue: It is assumed that the golf course will close for public play on Sunday, January 17, 2010 for the Bob Hope Chrysler Classic and reopen for play on Sunday, January 24, 2010. The golf course will be closed for a total of seven (7) days per the tournament contract. This loss of seven (7) days of revenue has been factored into the 2009-2010 Annual Plan for SilverRock Resort and amounts to a loss of approximately $150,000 in revenue and 1,500 rounds of golf. Any additional days of course closure will impact the revenue budget for the month of January 2010. Wages: It is assumed that the SilverRock Resort golf course maintenance crew of 30 employees will work an additional 41 hours of overtime per person in the month of January to ensure PGA Tour course standards. Also, additional payroll taxes and workers compensation insurance will be an added expense as a result of the extra hours worked. Supplies and Materials: Two (2) extra fertilizer applications (December and January) will be needed to ensure top quality turf conditions. Additional seasonal flowers and plants will be added at the entrance and clubhouse area. Also, additional sand will be required to ensure all sand bunkers on the course are consistent and are in compliance with PGA Tour standards. Additional cool season seed may be required in order to be in compliance with PGA Tour standards; a heavier seed rate will be used when overseeding the fairways, tees and greens in the fall of 2009. If there are any areas of the course that do not meet PGA Tour standards, those areas must be sodded prior to the tournament. Other Expenses: Additional maintenance equipment may be rented short term to get the course ready for PGA Tour standards. 28 338 W CID 2009-2010 ANNUAL PLAN Sll—rRock RasoO RVHp4Te x6M.Ma ai 4: Pm Pro actlana-Jul 2009 to Jane 2010 PR6PARCD 9Y Wamna coltm.n.aemmi SUPPLEMENTAL BOB HOPE EXPENSES Salanes and Wages 9 0 0 0 0 0 0 0 0 0 0 0 0 Overture Hourly Wages(41 hours at 30 employees) 15,000 0 0 0 0 0 0 15,NO 0 0 0 0 0 Payroll Taxes 1,868 0 0 0 0 0 0 1,868 0 0 0 0 0 WoMem'Compensahon 571 0 0 0 0 0 0 571 0 0 0 0 0 TOTAL SALARIES AND BENEFITS 17,09 0 0 0 0 0 0 17,439 0 0 0 0 0 SUPPLIES AND MATERIALS F.61u,.r 22,000 0 0 0 0 0 11,000 11,000 0 0 0 0 0 Fl.am1P1ants 2,000 0 0 0 0 0 2,000 0 0 0 0 0 0 SandlBunkar 30,000 0 30,000 0 0 0 0 0 0 0 0 0 0 Seed 25,000 0 0 0 0 25,000 0 0 0 0 0 0 0 Sod 6,000 0 0 0 0 2,000 4,000 0 0 0 0 0 0 TOTAL SUPPLIES AND MATERIALS 85,000 0 30,000 0 0 27,000 17,000 11,000 0 0 0 0 0 OTHER EXPENSES Eewpment Rental 14,200 0 0 0 0 0 0 14,200 0 0 0 0 0 TOTAL OTHER EXPENSES 14,200 0 0 0 0 0 0 14,200 0 0 0 0 0 TOTAL COURSE MAINTENANCE EXPENSES 116,639 0 30,000 0 0 27,000 17,000 42,639 0 0 0 0 0 P44 2009-2010 ANNUAL PLAN SllverRock Resort RUN DATE: 26Mer-09 09:24 AM Projections-Ju 2009 to June 2010 PREPARED BY: Landmark Golf Management Front Entrance Landscaping TOTAL JUL. I AUG. I SEP. I OCT. I NOV. I DEC. I JAN. I FEB. I MAR. I APR. I MAY I JUN. Employee Count Landscapers 6 8.26 2 2 2 2 2 2 2 2 2 2 2 2 SALARIES AND BENEFITS Salaries and Wages 34,320 2,860 2,860 2,860 2,860 2,860 2,860 2,860 2,860 2,860 2,860 2,860 2,860 Payroll Taxes 4,272 356 356 356 356 356 356 356 356 356 356 356 356 Workers' Compensation 3,432 286 286 286 286 286 286 286 286 286 286 286 286 Employee Meals 0 0 0 0 0 0 0 0 0 0 0 0 0 Health Insurance 4,512 376 376 376 376 376 376 376 376 376 376 376 376 TOTAL SALARIES AND BENEFITS 46,536 3,878 3,878 3,878 3,878 3,878 3,878 3,878 3,878 3,878 3,878 3,878 3,878 SUPPLIES AND MATERIALS Fertilizer 1,800 150 150 150 150 150 150 150 150 150 150 150 150 Flowers/Plants 1,500 0 0 0 750 0 0 0 0 0 0 750 0 Pesticides 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Seed Soo 0 0 0 500 0 0 0 0 0 0 0 0 Miscellaneous 11200 100 100 100 100 100 100 too 100 100 100 100 100 Uniforms & Linenrrowels 360 30 30 30 30 30 30 30 30 30 30 30 30 Irrigation Systems 11200 100 100 100 100 100 100 too 100 100 100 100 100 TOTAL SUPPLIES AND MATERIALS 7,760 480 480 480 1,730 480 480 480 480 480 480 1,230 480 Total Front Entrance Landscaping 64,296 4.358 4,358 4,358 6,608 4,358 4,368 4,358 4.358 4,368 4,358 6,108 4,368 w 30