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Annual Plan FY 2007-2008 SilverRock ResortTw4f 4 44 QU&M COUNCIL/RDA MEETING DATE: May 1, 2007 ITEM TITLE: Consideration of the SilverRock Resort 2007/2008 Annual Plan As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The 2007/2008 Annual Business Plan as drafted for SilverRock Resort projects operating expenses of $3,822,646 and revenues of $3,410,555 for a net loss of ($412,091). (Attachment 1) 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 2007/2008 Annual Plan. Instead, food and beverage income 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 $29,455 and supplemental Bob Hope Chrysler Classic Tournament expenses (personnel, materials, and equipment) in the amount of $121,708. These expenditures are contingent upon the tournament being played. If these additional costs are approved, the net loss will be ($563,254). Staff proposes an advance of $563,254 from General Fund reserves to the SilverRock Resort Golf Enterprise Fund to fund this operating deficit. In addition, staff is finalizing the Fiscal Year 2006/2007 revenue and expenditure projections and will be reporting on such at the June 19, 2007 City Council meeting. In addition to the expenses contained in the operators annual plan and the supplemental expenses for the Bob Hope Tournament the Fiscal Year 2007/2008 Preliminary Budget will include additional expenses in operating the golf course outside of the Landmark Golf contract, which will be brought before the City Council later in June. These additional expenses will include a $100,000 annual payment to the Bob Hope which would be in addition to the aforementioned $121,708. "_1 173 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. ANNUAL PLAN Fiscal Year 2006/2007 Annual Plan was $3,806,556, with projected revenues of $3,190,786. A $250,000 advance from the General Fund, per the Agreement, was used to establish the Landmark Golf Operating Account. Fiscal Year 2007/2008 Proposed Annual Plan is $3,822,646 with projected revenues of $3,410,555. This reflects a 33% improvement or $203,679 from last year's operating deficit. Assumptions used in this plan include: • 40,580 rounds of play for Fiscal Year 2007/2008; • Changes to the posted Golf Rates starting November 7, 2007; • An average projected revenue of $88.03 per round; • A 2% capital reserve ($71,686) for future golf course improvements/renovations, per the Management Agreement (section 3.10.1); • Maintenance of the SilverRock entry landscape for $54,296 and funded from the Lighting and Landscape District; • An additional $29,455 separate from the Annual Business Plan is being requested as new capital expenses for an Email Exchange Server with Software, an additional kitchen refrigerator, and a deep tine aerator. An additional $90,868 in operations expenses related to the Bob Hope Chrysler Classic Tournament, and $30,840 in capital expenses. This total amount of $121,708 which is contained in the Annual Business Plan but would be expended only upon use of the course for this event. GOLF RATES Fiscal Year 2007/2008 Proposed Annual Plan recommends increasing the posted golf rates as follows: November - December January through April 2007/2008 $125 (7 days a week) $165 (7 days a week) 2006/2007 $95 (Monday - Thursday) $1 15 (Friday - Sunday) $145 (Monday - Thursday) $160 (Friday - Sunday) 174 The green fee rate increases are justified by the high demand of play that was experienced in 2006/2007 and the increased marketability of SilverRock Resort being a home course for the Bob Hope Chrysler Classic. There is no change in the green fee rates for La Quinta Residents. As the City Council is aware, the City has received correspondence regarding discount rates for guests of City Residents. The City's Golf Operator and staff propose a Resident Guest Rate which will be offered to accompanied guests of La Quinta Resident card holders. This guest rate will be limited to three guests accompanying a Resident Cardholder. The guest rate represents a 20% discount off of the prevailing posted rates and follows similar booking procedures as extended to a La Quinta Resident card holder; booked 3 days in advance. In order to maintain the budgeted revenue per round, the City's Operator and staff do not recommend discounts to business owners. CAPITAL EXPENDITURES The Operator has proposed $29,455 in additional capital expenditures (not included in the budget) for the following: Exchange Server = $6,900. The email exchange server and software will allow the SilverRock Resort golf operations to process emails internally as well as generate mass emails for informational and promotional purposes rather than relying on the City's server and Informational Services Analyst. The new server will also act as a back-up for the existing network server which currently stores all operational data and the point -of -sale records including inventory. 2. Refrigerator= $3,555. An additional refrigerator is needed for the food and beverage operations to meet service needs due to the increasing number of patrons to the SilverRock Resort Grill. 3. Aera-Vator= $19,000. An Aera-Vator is a deep tine aerator used for the transitional areas in the golf course roughs. Currently, the maintenance department does not have this type of aerator which, unlike conventional aerators, is able to aerate through high cut turf areas. BOB HOPE CHRYSLER CLASSIC TOURNAMENT The Operator has proposed $121,708 in supplemental expenses for the Bob Hope Chrysler Classic (not included in the budget) for the following: Personnel Costs= $17,868. 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= $72,000. This amount will cover any unforeseen incidents, such as acts of nature, which may require bunker sand replacement, seed and sod for the turf, and plants for replacement or enhancement purposes. �- 170 3. Equipment= $31,840. This amount will cover any unforeseen equipment rental such as pumps and generators, and the purchase of four walk -behind greens mowers and trailers that will be necessary to have all of the greens freshly cut in a timely manner for the morning tee -off. 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. Staff concurs with the aforementioned recommendations. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: Approve the Annual Plan as submitted by Landmark Golf Management, LLC which projects $3,410,555 in revenues and $3,822,646 in expenses for a net loss of ($412,091) plus an additional $29,455 for Capital Expenses and $121,708 for the Bob Hope Chrysler Classic Tournament expenses for a net loss of ($563,254); or 2. Do not approve the Annual Plan as submitted by Landmark Golf Management, LLC which projects $3,410,555 in revenues and $3,822,646 in expenses for a net loss of ($412,091) plus an additional $29,455 for Capital Expenses and $121,708 for the Bob Hope Chrysler Classic Tournament expenses for a net loss of ($563,254); or 3. Approve the Annual Plan with modifications Res, e tfully submitted, Edie H I on Community Services Director Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. 2007/2008 Annual Business Plan U_" 17U ATTACHMENT 1 SilverRock Resort -Arnold Palmer Classic Course 2007-2008 ANNUAL PLAN Prepared For: City of La Quinta SilverRock Resort Prepared By: Landmark Golf Management Submitted: April 17, 2007 "- 177 SILVERROCK RESORT Annual Plan Fiscal Year 2007-2008 Table of Contents Part I -Project Overview Project Fact Sheet 1 Mission Statement 2 Philosophy Statement 3 Organizational Chart 4 Key Employee Staffing and Salaries 5 Part II -Assumptions and Capital Expenditures 2007-2008 Assumptions 6,7 Golf Operations 8 Course Maintenance 8 Food and Beverage 8 Part III -Operational Financial Projections Consolidated Income Statement by Month 9 Department Detail Golf Rounds and Revenue 10 Carts, Bagroom & Range 11 Golf Shop Merchandise 12 Course Services 13 Golf Course Maintenance 14,15 General & Administrative 16 Marketing 17 Clubhouse 18 Miscellaneous 19 Part IV -Food and Beverage Department Detail 20,21 Part V-Other Marketing Narrative Plan 22,23 2007-2008 Golf Rates 24 Competitive Golf Rate Analysis 25 Bob Hope Assumptions 26 Bob Hope Supplemental Budget 27 Front Entry Maintenance Budget 28 (1 SILvexRoc K PROJECT FACT SHEET COURSE NAME ADDRESS TELEPHONE WEBSITE MANAGEMENT COURSE YARDAGE GRASS TYPES OWNER SilverRock Resort -Arnold Palmer Classic Course 79-179 Ahmanson Lane, La Quinta, Ca. 92253 1-888-600-7272 W W W.SILVERROCK.ORG Randy Duncan, Director of Golf / General Manager Willie Lopez, Golf Course Superintendent 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 GREENS: TIF DWARF FAIRWAY / TEES: TIF SPORT ROUGHS: TIF SPORT CITY OF LA QUINTA MANAGED BY LANDMARK GOLF MANAGEMENT, LLC 74-947 HIGHWAY 111, SUITE 200 INDIAN WELLS, CA 92210 PHONE: (760) 776-6688 OPENING DATE February 14, 2005 SILVERROCK RESORT Annual Plan Fiscal Year 2007-2008 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 insure 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 a staff 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 qualify to host the Bob Hope Classic with a strong commitment to be in the club rotation • To have each Departments operate within their annual budget allowing SilverRock Resort to reach the net operating goals a 189 SILVERROCK RESORT Annual Plan Fiscal Year 2007-2008 PHILOSOPHY STATEMENT In the first two (2) 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 and a notable Grand Opening Celebration. As the 2007-2008 Annual Plan is implemented, focus should naturally shift from a construction completion and opening mode to concentrated efforts in to broaden the awareness, marketability and noteworthiness of SilverRock Resort's Arnold Palmer's Classic Course golf facility. Also a strong emphasis will be placed on SilverRock's participation in the 2008 Bob Hope Chrysler Classic which will help put SilverRock on the map through national media exposure. 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 third 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. ��i SILVERROCK RESORT Annual Plan Fiscal Year 2007-2008 Cary of La Oumta City Council & Staff City Manager Community Services Director Landmark Golf Management Managent emTeam SilverRock Resort Golf Club General MGR.IDirector of Golt Go Shop Head Golf Professional Golf Course Maintenance Superintendent Accounting Controller/Human Resources Food 8 Beverage Marketing 8 Sales F&B Manager Tournament Sales Manager Asst. Golf Professionals Asst. Superintendent Admin. Asst. Restaurant To Controller & GM kF&Brver(s) Golf Shop Buyer Mechanic(s) / Cart Attendsnt(s) (Sub -Contract) Sales Associates Irrigation Technician Guest/Outside Service Spray Technician Outside Services Manager Greenskeeper(s) Carts/Bag Room Starters P.A Rangers Driving Range Admmistratrve Asst 4 el'NoaTf I, -A-. Key Employee Staffing and Salaries PBEPAitFDIR Landw* Golf M8n4gem8M 2007.2008 ANNUAL PLAN DEPARTMENT SUMMARY SALARY JUL. AUG SEP. OCT. NOV. DEC. JAN. FEB. I MAR. APR. MAY NUN. GOLF OPERATION OUTSIDE SERVICES OUTSIDE SERVICES MANAGER $10.51) 1 1 1 1 1 1 1 1 I 1 1 1 OUTSIDE SERVICES SUPERVISORS (FULL -TIME) $9.% 1 1 1 1 1 1 1 1 1 1 i 1 DRIVING RANGE (PART-TIME) 68.00 1 1 1 1 1 2 2 2 2 2 1 1 CARUBAG/VALET/BAG DROP(FULLJIME) $&OD 4 4 4 4 4 4 4 4 4 4 4 4 CARDBAGIVALETISAG DROP (PART-TIME) $6.00 0 0 0 0 2 2 2 2 2 2 1 1 7 7 7 7 9 10 10 10 10 10 8 8 PRO SHOP HEAD GOLF PROFESSIONAL $42,000.00 1 1 1 1 1 1 1 1 1 1 1 1 1 ST ASSISTANT PROFESSIONAL I TC S30,M110 1 1 1 1 1 1 1 1 1 1 1 1 ASSISTANT PROFESSIONAL $26,locLoo 2 2 2 2 2 2 2 2 2 2 SALES CLERKS (FULL TIME) $10.00 1 1 1 2 2 2 2 2 2 2 2 2 SALES CLERKS (PART TIME) $a.50 0 0 1 1 1 1 1 1 1 1 1 0 5 5 6 7 7 ➢ 7 7 7 7 7 6 COURSE SERVICES STARTERS (PART TIME) $&00 2 2 2 2 2 2 2 2 2 2 2 2 RANGERIMARSHALS(PART TIME) $8.00 1 1 2 2 3 3 3 3 3 3 2 2 3 3 4 4 5 5 5 5 5 5 4 4 GOLF COURSE MAINTENANCE SUPERINTENDENT $99,000.00 1 1 1 1 1 1 1 1 1 1 1 1 ASST SUPERINTENDENT $49,00&00 1 1 1 1 1 1 1 1 1 1 1 1 FOREMAN/SPRAY TECHNICIAN $14.52 1 1 1 1 1 1 1 1 1 1 1 1 HEAD MECHANIC/ FACILITY MANAGER $mQ0 1 1 1 1 1 1 1 1 1 1 1 1 ASST MECHANIC Slim 1 1 1 1 1 1 1 1 1 1 1 1 HEAD IRRIGATOR $15.50 1 1 1 1 1 1 1 1 1 1 1 1 ASST IRRIGATOR $11.50 1 1 1 1 1 1 1 1 1 1 1 I GREENSMEN $9.70 18 18 18 1a IB 18 18 18 18 18 18 18 ADMINISTRATIVE ASSISTANT $1,Lw 1 1 1 1 1 1 1 1 1 1 1 1 TOTAL TURF& ADMIN STAFF 26 26 28 26 26 26 26 26 26 28 26 28 LANDSCAPE MAINTENANCE FOREMAN $15.00 1 1 1 1 1 1 1 1 1 1 1 1 IRRIGATOR $11.33 1 1 1 1 1 1 1 1 1 1 1 1 LANDSCAPERS $Sm 6 6 6 6 6 6 6 6 6 6 6 6 TOTAL LANDSCAPE CREW 8 8 8 a 8 a a 8 a 8 8 8 TOTAL COURSE MAINTENANCE STAFF 34 34 34 34 34 34 34 34 34 3a 34 34 FOOD & BEVERAGE F&BMANAGER /SUPERVISOR $45,000.00 1 1 1 1 1 1 1 1 1 1 1 1 CHEF / LEAD COOK $17.00 1 1 1 1 1 1 1 1 1 1 1 1 PREP COOK $1200 1 1 1 1 1 1 1 1 1 1 1 1 LEAD SERVER (FULL-TIME) $1200 1 1 1 1 1 1 1 1 1 1 1 1 F& B WAITISEVERAGE CART/HALF(FULL TIME) $&00 2 2 2 2 2 2 2 2 2 2 2 2 F& B WATISEVERAGE CART/HALF(PART TIME) $6.00 0 0 0 0 1 1 2 2 2 2 1 0 BUSER I DISHWASHER (PART TIME) $8.00 2 2 2 2 2 2 2 2 2 2 2 2 8 a 8 8 9 9 10 10 10 10 9 a G&A DIRECTOR OF GOLF/CM $105.000.00 1 1 I 1 1 1 1 1 1 1 1 1 CLUB CONTROLLER $53,000.00 1 1 1 1 1 1 1 1 1 1 1 1 ADMINISTRATIVE ASSISTANT $15.75 1 1 1 1 I I 1 1 1 I 1 1 3 3 3 3 3 3 3 3 3 3 3 3 TOTAL EMPLOYEES 60 60 62 63 67 68 69 69 69 69 65 63 TOTAL EMPLOYEES - FULL TIME 54 54 5a 55 55 55 55 55 55 55 55 55 TOTAL EMPLOYEES - PART TIME 6 6 8 8 12 13 14 14 14 14 10 8 F—+ 00 Co SILVERROCK RESORT ANNUALPLAN 2007-2008 Assumptions Revenue Green Fees: The green fee includes a 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 $77.90 per round on an annualized basis. The Green fee rates for 2007-2008 will increase in our peak season (January -April) to $165 (7 days a week). This represents a $20 increase from prior year's weekday rates and a $5 increase on prior year's weekend rates. Resident Rates will remain the same as previous year, A 2007-2008 golf rate schedule is attached on page 24 and a competitive rate analysis on page 25. Rounds of golf were maxed out during peak season. 2006- 2007 compared to 2005-2006 was a strong year in rounds of golf played at SilverRock Resort and these large annual increases usually do not occur in back to back years. It is assumed in the Annual Plan that Resident Guest Rates will be offered to accompanied guests of La Quinta Resident card holders. This guest rate represents a 20% discount off of the prevailing posted rates and follows similar booking procedures as extended to a La Quinta Resident card holder; book 3 days in advance. The financial impact of this program is expected to be negligible; however if there were to be a larger discount and/or a larger booking window of time it would most likely result in a lower annual average green fee rate and would have a negative impact on the budgeted revenue. It is assumed that the golf course will be closed to public play during the Bob Hope Chrysler Classic from January 13-19, 2007. It is also assumed the overseeding dates will be October 8 through November 6, 2007; over seeding reduces revenues due to the course being closed during these dates. It is also assumed that aerification will occur in August of 2007 and June of 2008 which reduces revenue for 3-5 days with each of these two aerification cycles. Greens Fee Mix: Through proper marketing, yield management, and limited advanced Resident bookings the projected mix of green fees is: 25% Resident, 30% Regular, 10% Twilight, & 35% Other. Miscellaneous and Other Revenue: Based on $2.06 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 $8.07 per round Cost of Sales Merchandise 53 % Food & Beverage 33 Expenses Minimum Wage: The California Minimum Wage requirement will increase to $8.00 per hour on January 1, 2008 from $7.50. This will impact, Course Maintenance, Outside Services and Food and Beverage Departments with higher labor costs for the 2007-2008 budget. 184 SILVERROCK RESORT ANNUALPLAN 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. 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 of October 8 through November 6, 2007, which will result 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 2008 Bob Hope Chrysler Classic. An Assumption sheet and a Supplemental Budget (not part of the Operations Budget, attached hereto as pages 26 & 27) provide the extra maintenance expenses needed to prepare the course. Front Entry Maintenance: A Supplemental Budget (not part of the Operations Budget, attached hereto as page 28) provides the maintenance schedule and expenses for the front entry area that encompasses the entrance at SilverRock Way off Ave. 52. Water & Electrical: This includes water and electrical cost to irrigate the golf course and properly maintain the lake system. 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, promotions, advertising, web page, collateral and tournament sales, etc. Clubhouse: Includes clubhouse expenses, maintenance/cleaning staff, landscape maintenance, parking lot and entry drive clean up. Management Fee: $7,500 per month; Based off the Golf Course Management Agreement, dated the 8th April 2004. Insurance: Per requirements of the Golf Course Management Agreement; included is a comprehensive golf club insurance policy, general liability, property, equipment and business interruption etc. Property Tax: Exempt, except personal property taxes on equipment purchases or leases. Golf Carts and Maintenance Equipment Leases: Golf carts and maintenance equipment are being leased for the Golf Club. 185 2007.2008 ANNUAL PLAN SllverRock Reson RUN DATE. 12-Apr47 12.12 rnt Prolections -July 2007 to June 2M Capital Expenditures PREPAREDBY LaMmark Golf Man,emem CAPITAL EXPENDITURES TOTAL JUL AUG. SEP. OCT. NOV. I DEC. JAM FEB. MAR. APR. MAY JUM GOLF OPERATIONS 1 Email Exchange Server 6 Software $619W O,goO TOTAL GOLF OPERATIONS $61900 $6,900 $0 >A $0 $0 $0 $0 $0 $0 So $0 $0 FILE DEPARTMENT Refrigerator $$,555 TOTAL FOOD $BEVERAGE $$555__,.._. ..�"'Wi._..._.so ._Wsit $�_____—_____._- ..__$0 $0 so_ GOLF COURSE MAINTENANCE 1 Aera-Valor $19,000 $19,000 TOTAL MAINTENANCE $191000 $19,000 TOTAL CAPITAL EXPENDITURES-- $291455 $29,455 $0 W $0 $o >b $0 $0 $0 $o $0 bb GOLF Email Exchange Server A Software Needed so the club can process enrage Inherently fanner than rely on the Clty's Server or IT to help when problems occur. Mao N will serve as a back-up server. FSB Refrigerator Extra refrigerator needed to keep up with the high demand on the kitchen. Aen-Valor Will help with transition in the rough areas. Currently, we do not have an aemyer for the roughs. 0, 8 C5j 2007-2000 ANNUAL PLAN S,NerRock Rea rl CONSOLIDATED INCOME STATEMENT ...,..n ,...., ....., FOR HSCAL YEAR - JULY 20W - JUNE 2009 .....,.,.., ,�........�..�. DEPARTMENT 06-01 Butl l Tw JUL. AUG. S£P OCT NOV DEC JAM FEB. MAR. APR. MAY JUN ROUNDS ROUNDS 39,220 g9,63O 1,900 1,900 3,250 1,300 3,800 3,600 2,500 4,880 5,800 5,200 3,950 2.500 TOTALROUNDS 39,220 40,5311 1,900 1,900 3,250 1,300 3,800 3,W0 2,5D0 4,880 5,800 5,200 3,950 2,500 REVEN E GREEN FEES 2.985.870 3;161,21t 80,536 80,536 164,572 80,616 298,965 278,730 235,000 485.560 577,100 440,310 268,254 171,031 MISC. REVIRANGEICARTSIRENTALS 62,181 63,725 4,375 3,375 5A63 6,125 10,250 10,500 7,625 9,100 10,250 91000 4,938 3,125 GOLF SHOP MERCHANDISE 311,248 32T,370 13.300 13,300 22.➢50 10,400 30,400 30 23,'!50 43,920 12,200 41,6D0 27,650 17,500 FOOD B BEVERAGE CONCESSIONS 12,000 ASSID. 500 500 500 1,500 1,500 1500 1,500 1500 1,500 500 500 500 TOTAL REVENUE 3,311,299 3 &¢796 98,711 97,711 192,884 96,641 341,115 321,311 267,875 540,080 641,050 491,410 301,342 192,156 COSTOFSALES PROSHOP 180,513 ti m, 7,059 7,059 12075 5,520 16,135 16,241 12,605 23,311 27,705 22.079 14,675 9,288 TOTAL COST OF SALES 180,513 17un 7,059 7,059 12,075 5,520 16,135 16,241 12,605 23,311 27,705 22,079 14,675 9,288 GROSSPROFIT 3,190,786 $,#(.' 9 91,552 90,652 180,810 93,121 324,980 305,089 255,270 516,769 613,345 469,331 286,667 182,868 OPERATING EXPENSES GOLF CARTS\BAGS\RANGE 232,779 32b,35{ 15790 15,7)8 15682 13,613 20,541 20,206 21,589 21,685 22,127 20,77I 20,042 18222 GOLF SHOP MERCHANDISE 211,697 x6'h4? 18,373 17773 20,376 14,111 22,261 23,093 24,283 22,963 22,963 22,963 26,178 21.360 COURSE SERVICES 58,797 Tt p2` 4,048 4,048 4,984 3,872 6,380 6,839 7,176 7,126 7,681 8,006 5,571 5.571 GOLF COURSE MAINTENANCE 1,536,041 $67A41 124,706 130,983 142.591 266,255 142237 128,022 123,556 120.R23 119,250 121,055 124,854 131,908 WATER 6 ELECTRIC COST 201,768 1201126 10,314 10,159 9,074 10,469 9.849 9,849 10,004 9,927 10,004 10,004 10,159 10,314 GENERAL B ADMINISTRATIVE 311,576 Wl;,86 25,920 26,070 27,270 27,195 27,195 27470 26,620 26,720 26.520 26.620 27,470 26,520 MARKETING 319'"1 82,469 6,337 8.677 20,357 21,862 29,352 26,552 35022 31 A02 25,652 22702 13,152 10,902 CLUBHOUSE 197,095 172,906 14,242 14,242 14,242 14,842 14,242 14 242 15,642 14 242 14,242 14,242 14.242 14,242 MANAGEMENT FEE 1uva,aK rae namLwu 125,196 fl1,2TT 24342 18,420 9226 14743 9,773 8,995 12215 (3434) (9,900) (6,304) 13,356 19.844 CAPITAL RESERVES 67,426 7*00 1.974 1,954 3,858 1,973 6,822 6,427 5,358 10,802 12821 9,828 6,027 1843 INSURANCE 50,A00 Sohn 42W 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4.200 4,200 4,200 PROPERTY TAXES 20,000 Bum 0 0 20000 0 0 0 0 0 0 0 0 0 LEASES (Can B MamL) 471,90) 471,900 39325 39,325 39325 39,325 39,325 39,325 39,325 39,325 39,325 39,325 39,325 39,325 TOTAL OPERATING EXPENSES 3,806,556 3.022,646 289,571 291629 331,186 432,460 332,177 315,220 324990 306,280 294885 293,418 3D4,577 306,252 NET INCOME (615,770) (412,091) (191,919) (200.976) (150376) (339,338) (7,197) (10,131) (69720) 210489 318,460 175,912 (17910) (123,384) NET INCOME% -18.3% -11 -200.5% -205.7% -78.0% -344.0% .2.1% -3.2% -26.0% 39.0% 49.7% 35.8% -5.9% 414.2° Average RouR43 par Day 120 84 87 90 112 100 91 139 148 164 164 136 93 Average Green Fee $T6.13 $TT-90 $42 39 $42 39 $50 64 $62 Ot $78 68 $T] 43 $94 00 $99 50 $99 50 $84 68 $67 91 $68 41 Avenge$ M,ac. l_O_,., Rd $1.59 V-06 $230 $178 $156 $471 $270 $292 $3.05 $186 $177 $173 $125 $1.25 Average $ MercM1antlise per Rd $7.94 58.07 $7,00 $] 00 $T 00 $e 00 $e 00 $8 50 $9.50 $9 00 $9 00 $8 00 $T 00 $T 00 Tote, Avenge Revenue Per Rountl $85.66 $8&03 $51.95 $51.431 $59.35 $T5.68 S897T 589.26 $107.15 $110.67 $110.53 $94.W $76.29 $76.86 00 2007-2008 ANNUAL PLAN SilawRock Resort RUN DATE: 12-Apr-07 12:12 PM Projections- July W0710 June 2008 PREPAREDBY: Landmark Golf Management Golf Rounds Total JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB- MAR. APR. MAy JUN. Resident Rod,(Weekday) 5,478 257 257 439 176 513 986 338 659 783 702 533 338 Resident Rods,(Weekend) 6,696 314 314 536 215 627 594 413 805 957 858 652 413 Sub-Tatat Resident Rnds 12.174 570 570 975 3% 1140 1080 750 14M 1740 1560 P185 750 %nJ trim[ 025 Public Birds (Weekday) 4,565 214 214 366 146 428 405 281 549 653 585 444 281 Public Rod,(Weekend) 5,580 261 261 447 179 523 495 3" 671 798 715 543 344 Snb-Tota1 Public Rnds 10,145 475 475 813 325 950 900 on 1220 1450 1300 988 625 %afl and 030 - PubhcTwi(Weekday) 1,826 86 86 146 59 171 162 113 220 261 2M 178 113 Public Twi(Weekend) 2,232 105 105 179 72 209 1% 138 26S 319 2% 217 P38 SnbTotnl Tun6ght Rands 4,058 1% 190 325 Pill 380 360 250 488 580 520 395 250 %ofleml 010 Other(Weekdav) 6.391 299 299 512 205 599 567 391 769 914 819 622 3W Other(Weekend) 7,872 3" 366 626 250 T32 6% 481 939 1117 1001 760 481 Toarnainnus 2,841 133 133 228 91 266 252 175 342 4% 364 277 175 IMrolesales 2,841 133 133 228 91 266 252 175 M2 4% 364 277 175 Fe dent Guest 1,420 67 67 114 46 133 126 88 171 203 182 138 88 Stand By Golf 1,420 67 67 114 46 133 126 88 171 203 182 138 88 Orsmurrls 3,551 166 166 284 114 333 315 219 427 508 455 M6 219 PGA 710 33 33 57 23 67 63 44 85 102 91 69 44 Junior no 33 33 57 23 67 63 44 85 102 91 69 44 Repay 710 33 33 Sr 23 67 63 085 102 91 69 44 SaoTotalCos, 14,203 665 665 1138 455 1330 1260 875 1708 2030 1820 1383 875 %cfCntal 033 Total Rormds ousw 1900 1900 3250 13M 3800 3600 2500 11880 5800 5200 3950 2500 Golf Revenue Resident Rads(Weekday) 254,428 $ 7,695 $ 7,695 $ 13,163 $ 5,265 $ 23,085 $ 21,870 $ 18,563 $ M,2M $ 43,065 $ 3B,610 $ 23,9% $ 15,188 Resident Rnds(Weekead) 310,967 $ 9,405 $ 9,405 $ 16,088 $ 6,435 $ 28,215 $ 26,730 $ 22688 $ 44,286 $ 52635 $ 47,190 $ 29,329 $ 18,563 Public Rnds(Weekday) 542,498 $ 10,688 $ 10,688 $ 21,938 $ 12,431 S 53AM $ 48,600 $ 42188 $ 90,585 $ 107,663 $ 78,975 $ 39,994 $ 25,313 Public Rod, (Weekend) fiali $ 15,675 $ 15,675 $ 31,281 $ 18,769 $ 65,313 $ 59,400 $ 51,563 $ 110,715 $ 131,588 S 96,51" $ 51,597 $ 32656 Public Twi(Weekday) 129,310 $ 3,420 $ 3,420 $ 6,581 $ 3,803 $ 12,825 $ 12,150 $ 9,563 $ 18,666 $ 22,185 $ 18,720 $ 10,665 $ 7,313 Public Twi(Weekend) 166,185 $ 5,275 $ 5,M5 $ 9,831 $ 5,363 $ 15,675 $ 14,850 S 11,688 $ M,314 $ 27,115 $ 22,880 $ 15,208 $ 10,313 Other(Weekday) 464,562 $ 11,970 $ 11,970 $ 28,153 S 12,285 $ 41,895 $ 39,690 5 35436 $ Tt,017 $ 66,783 $ 57,330 $ 40,438 $ 25,594 Other(Weekend) 612,506 $ 16,459 $ 16,459 $ 37,538 $ 16,20 $ 56,520 $ 55A,10 $ 43,313 $ 89,243 $ 106,066 $ 80,080 $ 57,028 $ 36,094 Total Revnure 3,161$11 $ 80,536 $ 80,536 $ 164,572 $ W,616 $ 298,965 $ 278,730 $ 235,000 $ "SW $ ST1,101 $ 440,310 $ 268,2% $ 171,031 Avg Rate $ 77.90 $ 42.39 $ 4239 $ 5064 $ 62.01 $ 78.68 $ 7743 $ AN $ 99.50 $ 9950 $ 8468 $ 67.91 $ 6841 MI00 Reveeee Club Rental ($ 30 per round) 14,203 $ 665 $ 665 $ 1138 $ 455 $ 1330 $ 1260 $ 875 $ 1708 $ 2,030 $ 1,820 $ 1,383 $ 875 Living Range Balls ($ 75 per round) 32464 $ 1,520 $ 1,520 5 2600 $ 1,040 $ 3.040 $ 2,880 $ 2,000 $ 3,904 $ 4,640 $ 4,160 $ 3,160 $ 2,000 Bid., Fees 4,058 $ 190 $ 1% $ 325 $ 130 $ 380 $ 360 $ 250 $ 488 $ 580 $ 52D $ 395 $ 250 Independent Instructor Fees 9,000 $ - $ - $ - $ - $ 15M $ 1.500 $ 1,5W $ 1,500 $ 1.500 $ 1,500 $ - $ - Call Retrenal 4,000 $ 1,000 $ - $ 1,D00 $ 1,0W $ 1,000 $ - $ - GPS Advertising Income 12oD0 $ 1,000 $ 1,000 $ 1,000 $ 2,WD $ 2.000 $ 2,000 $ 1,000 $ 1.000 $ 1,000 Handicap Fees (owed on 200 @ S40) 8,000 $ - $ - $ - $ 1,500 $ 2A00 $ 2,500 $ 1 Onto $ 5DD $ 500 $ - $ - $ - Total 83,725 $ 4,375 $ 3375 $ 5063 $ 6,125 $ 10,250 $ 10,500 $ 7,625 $ 9,100 $ 10,250 $ 9000 $ 4938 $ 3125 10 2897.2096 ANNi PLAIN SilverRock Resort RUNT 12-Apr-07 12 121 Projections- July 2007 to June 2000 PR6PARER AI L.a1m.M1 pn4Mameemex CARTS, BAGROOM &RANGE - SIR TOTAL JUL. I AUG. SEP. OCT. NOV. DEC. JAN FEB. MAR. APO. MAY JUN. Rounds SAI ARIESAND B N FITS Salaries add Wages Payroll Taxes Workers' Compensation Employee Meals Health Insurance TOTAL SALARIES AND BENEFITS DPPLIES AND MATERIALS Expendable Supplies Towel Replacement Bottled Water Can Supplies Range Balls Handicap Expenses (Based on 200 @ $251 TOTAL SUPPLIES AND MATERIALS REPAIRS AND MAWRIWAJ Equipment Replan - Golf TOTAL REPAIRS AND MAINTENANCE Utica Supplies Printing I Stationary Cad Contract Sernces - ($9 par can per me @ 80 carts) Cad Maintenance & Repeus Freight I Delivery Umforms Laundry and Linen Miscellaneous TOTAL OTHER EXPENSES TOTAL EXPENSES 40,580 119M 1,900 3,250 1,300 3,800 3,600 2,500 4,880 5,800 5,200 3,950 2,SW 112,095 8,625 If arm 3,240 5,90 11,100 11,640 11,640 11,640 I -I'm 9,720 9,720 13,956 1,074 1,074 1,063 403 743 1,382 1,449 1,449 1449 1,449 1.210 1.210 11 1,239 1239 1,226 465 657 1,594 1,672 1,672 1,672 1,672 1,396 1,3% 6,180 420 420 420 420 540 600 600 600 600 600 480 480 8,640 720 720 720 720 720 720 720 720 720 720 720 720 156,968 12,077 12,017 11,W0 5,249 %824 15,396 16,081 16,081 Ili 16,081 13,526 13,526 5,050 150 150 150 1,000 1,000 150 150 1,000 150 150 500 500 2,292 72 72 72 1,500 72 72 72 72 72 72 72 72 22,631 1,571 1,609 1,620 669 1,200 1,293 2,596 2,342 2,684 2,509 2,529 2,009 2,350 500 11000 500 75 75 50 50 50 50 6,000 6,000 5,000 100 100 100 400 400 1,250 11000 500 500 250 200 200 43,323 1,893 1,931 1,942 4,01 11 3,265 3,893 3,989 3,456 3,031 3,351 2,831 1,500 125 125 125 125 125 125 125 125 125 125 125 125 1,500 125 125 125 125 125 125 125 125 125 125 125 125 525 25 25 25 50 50 50 50 50 50 50 50 50 420 70 70 70 70 70 70 8,640 720 720 720 720 720 720 720 720 720 720 720 720 4,000 500 500 500 500 250 250 250 250 250 250 250 250 900 75 75 75 75 75 75 75 75 75 75 75 75 5,625 21500 500 925 two 200 3,000 250 250 250 250 250 250 250 250 250 250 250 250 1,150 125 75 75 75 75 75 75 75 125 125 125 125 24,260 1,695 1,645 1,645 4,170 1,920 1,420 1,490 1,490 2,465 1,540 3,040 1,740 226,051 15,790 15,778 15,02 13,613 21 201 21,589 21,05 22,127 201 21 18,222 Expendable Supplies are made up of - Scorecards, Tees, Pencils, Trash Bags, Cups, First Pod Supplies & Bodied Water for guests Uniforms Each employee receive 4 shuts, 1 hat per season I-+ 00 11 i 2007-20(8 ANNUAL PLAN SibeaRock Resort Proections - Jul 2007 to June 2008 Rlry once tl-'M 1212PM aktankep er w .n n. M.-irrean GOLF SHOP MERCHANDISE-61 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. GOLF SHOP MERCHANDISE SALES TOTAL 4OF ROUNDS 40,580 1.900 1,900 3,250 1,300 31800 3.600 2500 4880 Swo 5.M 3,95) 2.500 AVERAGE REVENUE I ROUND $8.07 $7.00 $7.00 $T.00 $8.00 $8.00 RLw $9.50 59.w $9. 0 SHOO $] 00 STAG TOTAL MERCHANDISE SALES $32T,3T0 13,300 13,300 22,75) 10,400 30400 30,600 23,]5(1 431 52200 41 ON) 276% 17.500 49,350 71,400 MERCHANDISE REVENUE Soft Goods Sales 212,711 S645 8.645 14.788 6760 19760 19,890 15,438 28,548 33.930 27.040 1],9]3 11,375 Had Goods Sales 114,580 4,655 4.655 7.963 3,640 10640 10,710 8,313 15,3]2 18,270 14,560 9,678 6.125 TOTAL MERCHANDISE REVENUE 32T,3T0 13,300 13,300 22,760 10,400 30,400 3g600 23,750 43,920 52,200 41,600 27,650 17,500 COST OF SALES 59.08% 53.1H% 531181)6 5109% nVIN, 5108% Milli% 53.081's 53.11 5305% 5105% 5308% 5108% COS- Merchandise(58°/) 180,054 7,315 7,315 12,513 5.720 16,720 16,830 13,063 24,156 28,710 22,880 15,208 9,625 Purchase Disc Taken -(5%) (9,003) (366) (366) (62m (286) SVh (842) (03) (1,208) (1,436) (1.144) (760) (481) Freight - Merchandise 2,701 110 110 188 B6 251 252 196 362 431 343 228 144 TOTAL COST OF SALES 173,752 7,0% ],059 12,075 5,5 O 16,135 16241 12,605 23.311 27,705 22,079 14,675 9288 GROSS PROM 153,618 6,241 6,241 10.6]5 4,880 14,265 14,359 11,145 20,609 24.495 19,521 12,975 8,212 SALARIES AND BENEFRB Salaries and Wages 162,474 12,(64 12,064 13,243 7,069 14,378 14,976 14,976 14,976 14,976 14,976 14,976 13,]9] Payroli Taxes tni'm 1,502 1,502 1,649 880 1,790 1,%5 1,865 1865 1,BG5 1,855 1,865 1,718 WorkersCompensation 16,247 1,206 1,206 1,324 ]0] 1438 1,498 1498 1498 1498 1,498 1498 1,380 Employee Meals 4,680 300 300 360 420 420 420 420 44 420 420 420 360 Health Insurance 35,640 1." 1.800 I.600 3,360 3.360 3,360 3.360 3,M 3,360 3,360 3,360 3,360 TOTAL SALARIES AND BENEFITS nigmg 16,BT3 16,8T3 18,376 12436 21,386 22.118 22,118 22 11 B 22,118 22,118 22J18 20,615 OTHER EXPENSES s 150 500 IDO 45 45 45 45 Se Cantracl Sainte.-Merchantlise Consultant Contract Swo 6,000 500 500 500 500 59a 500 500 500 500 500 GY) X) `AO 500 500 500 500 Dues and Subscriptions 2,000 2,000 Freight l Delnery 75 25 25 25 Travel 90 15 15 15 15 15 15 Uniforms 1,800 1W I 100 100 100 200 200 200 200 200 200 100 Seminars l Training 5,490 750 150 1.250 500 100 100 1 250 35 35 35 1.2W 35 Miscellaneous 0.W 50 50 50 50 50 50 50 50 50 TOTAL OTHER EXPENSES 17,00 1,500 900 2,OX) 1,675 875 975 2,165 845 SAS 845 4,060 745 TOTAL EXPENSES M'M 18.3T3 17,A3 20,376 14,111 22261 23,093 24283 22.%3 22,963 22.963 26178 21,360 TOTAL GOLF SHOP MERCHANDISE INCOME (LOSE (103,081) (12132) (ll,M2) (9701) (9231) (705) (BT34) (13139) (2354) 1531 (3,443) (13,204) (13,148) Expendable Supplies are made up of Golf Can Rental Agreements Golf Club Rental Agreements, Gift Certificates 8 Merchandise Bags Umt.mrd Each Full Time Emp ratan.. (1) shirt par month F.i C.7 12 J 2 .3We ANNUAL PLAN RUN DATE tE-Apro] U12 PN PREPAREDBY 1y.d-rk6alf Mvna¢emenl COURSE SERVICES-643 TOTAL JUL. AUG. SEP. OGT. NOV. OEC. JAN. FER. MAR. APR. MAY JUN. SALARESAND BENEFrtS Salanes aM Wages 40,T32 2,025 2.025 2,700 12W 3,750 4,125 4,400 4,4W 4.853 4,853 31200 3,200 Payrok Taxes 5,071 252 252 336 149 467 514 548 548 604 604 398 398 Workers Compensa0on 4.O73 203 203 270 120 375 413 440 440 485 485 320 320 Employee Meek 3,120 180 180 240 240 3W 300 300 300 300 300 240 240 TOTAL SALARES AND BENSIWS 52,996 2,660 2.660 3,546 I.]09 4.892 5.351 5.688 5,688 6.243 6,243 4.158 a.158 SUPPLES ANO MATERM LS Erp .W SLO.a 1,050 50 50 100 1O0 100 100 100 100 100 100 75 75 TOTAL SUPPLES AND MATERIALS 1,U50 50 50 100 100 100 100 100 100 100 100 75 75 650 OTHER EXPENSES Safety s 1,00 TS 75 75 750 TS 75 75 75 75 40 75 75 Safety ERmpmeltt 00 50 50 50 50 50 50 50 50 50 50 50 2 MisGelkreous 00 50 50 50 50 TOTAL OTHER EXPENSES 2,701 125 125 125 850 175 175 1]8 125 125 450 125 125 PREPAM CAPITAL EXPENSES Course Sewne Cagtal ExpeM4ures 14,556 1,213 1,213 1,213 1,213 1,213 1213 1,213 1,213 1,213 1,213 1213 1.213 TOTAL COURSE SERVICES EXPENSES ]1,302 4,048 4,048 4,984 3,872 6,380 6839 7,176 7,126 7,681 8,006 5,91 5,571 EpMtY suT menaMwoi a{4vm, vave,lsdd Lxxtl .aes nwl. *cwa *,a, a+€ l' cc ~d 13 era 2007-2008 ANNUAL PLAN SiNerRock ResoG 811 Deis 11-b -01 to to 1v Projections- July 2002 to June 2008 vUYARaDer 1Am &cNoi,.v, w MAINTENANCE DEPARTMENT-0 TOTAL JUL. I AUG. I SEP. I MT. I NOV. I DEC. I JAN. I FEB. I MAR. I APR. MAV JUN. SALARIES AND BENEFITS Sal and Wages 713,951 %,103 581103 58,103 68608 61,272 58103 58.103 58103 58,113 58,113 58113 61,114 Overnme Hourly Wages 15,916 0 0 0 10,022 3,031 0 0 0 0 0 0 2S(Kt Payroll Taxes Sg868 7,234 7,234 7,234 9789 8006 7,234 7,234 7,234 7,235 7235 7,235 7,965 Workers' Con:purrah.0 72,453 5,810 5,810 5,810 7,529 6,329 5,810 5810 5,810 51811 5814 5,811 6,302 Employee Meals 2,8B0 240 240 240 240 240 240 240 240 240 240 240 240 Health Insurance 105,200 8850 8850 8,850 B850 8,850 8,850 B850 88M SEW 8850 8.850 8.850 TOTAL SALARIES AND BENEFITS 1,002,268 80,237 80,237 Bg237 105,038 al 80,237 80,23T 60,237 80,249 $0.249 W249 87,334 Femlixer 681950 2,000 8,000 4.01 12,700 7,000 9000 3.800 3,800 5,000 3.800 5.000 4,850 Floinrs/Plants 3,500 0 0 1,000 250 0 1,000 950 100 100 100 Gas &OIIS 41,1100 3,400 34W 3,400 5Bw 3,800 3,400 2,900 2RN 3,200 3,900 2,800 2,600 Golf Course Accessories 4,200 200 200 200 2,500 200 200 200 100 100 100 100 100 Chemicals & Pesticides, nkg0o 2,400 11000 2,000 4,500 2,700 2,200 2,00D 2,000 200 2,000 9W 2,M POA Control 6,000 0 0 0 0 3,000 0 3,000 0 0 0 0 0 Sand/Mulch 6,660 390 390 0 2,100 2,100 800 380 100 100 1W 100 lw Sand/Bunker 5,000 0 0 5,000 0 0 0 0 0 0 0 0 0 Seed 93,750 350 350 250 90,000 350 350 350 350 350 350 350 350 Small Tools 6,500 350 8550 0 0 100 1W 100 too 100 100 Sod 5,750 1,000 1,OOo 1,000 250 250 250 500 500 1,000 Topdressmg 3,900 1,300 0 0 0 0 0 0 0 0 0 1,300 1,no TOTAL SUPPLIES AND MATERIALS 259,510 11,390 14,340 22,400 118,200 19,400 17,200 14,180 914.50 9,160 Il 10,950 12,400 REPAIRS AND MAINTENANCE Buddings B Bridges 500 250 250 Equipment 28800 1,500 A000 4,000 3,500 51000 2,000 1,400 1,400 1400 1400 11400 1,400 litigation System 15,450 1,50o 2,100 2,200 2,000 900 550 1,200 1000 1,000 1,0,%1 1,000 1,000 Pumps 5,000 l." 1,000 1,000 1000 I'm SW Aquatics Lake Mamt Contract 14,OD0 1,500 1,500 1,500 500 500 500 500 1,500 1,500 1,M(t 1,So0 1,500 Trees 4,000 3,0M 1,000 TOTAL REPAIRS AND MAINTENANCE 67,750 S" 6,fi0o 8,700 10,000 6,400 4,050 3,350 4,150 3,900 3,900 4,900 3,900 14 2007-Mall ANNUAL PLAN SllveritocX Resort am on r, R.APut in r4 ew Projections- July 2007 to June 2008 essrAaao er r..m..n coo Na,.p,ren MAINTENANCE DEPARTMENT -63 TOTAL JUL. AUG. I SEP. OCT NOV. DEC I JAN. FEB. MAR. APR. MAY JUN. OTHER EXPENSES Contract Semces SolMosue Tests 4,000 2.000 2000 Dues and Subscriptions 900 200 200 200 no 100 Employee Education 600 So 50 So 50 50 50 50 50 50 50 50 50 Equipment Rental 4,201) no 150 150 1,800 600 200 200 200 200 200 200 100 Auto Expense 6,000 500 500 500 Son Soft 500 500 500 500 trot) 500 500 Licenses and Permits 1,600 100 t00 n TOM 250 150 Miscellaneous 1,200 100 100 100 100 100 1Do 100 too 100 100 100 100 Supplies Mrscellaneous 1,200 100 100 100 100 100 100 100 100 100 1C, 100 100 Propane/Natural Gas 1,800 150 150 150 150 150 150 150 150 150 150 150 150 Safely Equipment & Trading 3,400 100 100 1,700 200 no no no 200 200 100 100 100 Telephone 7,200 600 600 600 600 600 600 600 600 600 600 600 600 Trash Removal 7,200 600 600 600 600 600 600 600 600 no 600 600 600 Green Waste Removal 0 0 0 0 0 0 0 0 0 0 0 0 0 Uniforms & Linem Towels 93N 720 720 720 1,470 720 720 720 720 720 720 720 72o Uhhbhes-Eledrol,-Budmgs 22,080 2,274 3,151 1,765 1,918 2,070 11605 1,109 11106 1,021 1,526 2,175 2,360 TOTAL OTHER EXPENSES 71 5,694 6,321 8,435 7,488 5,890 4,825 4,329 5,526 4,01 4,9M T,295 5,480 PREPAID CAPITAL EXPENSES Course Maintenance Capital Expenditures 44,w 3700 3,700 3,700 3.700 3.700 3,700 3,700 3)00 3,700 3,700 3.700 3,700 TOTAL MAINTENANCE UP. (EXCL Landscaping) 1,454,698 11 113,198 123,472 244,426 123,118 110,012 105,T96 103,063 101 10,nis 10,094 lIZ814 Wages 157.692 13,141 13,141 13,141 13.141 13,141 13141 13,141 13.141 13,141 13,141 13,141 13,141 Ovemme Hourly Wages 5,915 0 0 910 3,185 910 0 0 0 0 0 0 910 Payroll Texas 2Q369 1,636 1,636 1,749 2,033 1,749 1,06 1,06 11636 1,636 1,636 1,636 1,749 Workers Compensation 16,163 1,314 1.314 1,375 1526 1,375 1 314 1,314 1,314 1 314 1,314 1,314 1,375 Health Insurance 13,248 1,1p4 1104 1,104 1,104 1,104 1,104 1,104 1,104 1,10i 1,104 1,104 1,1W Landscape Wages & Benefits 213,387 17,195 11195 18,279 20989 18,279 TI 195 17,195 1)195 17,195 17, 195 17 195 18,279 Small Tools 1,025 in 100 100 100 100 75 75 75 75 75 75 75 Repairs&Mentenance -Drip Irrigation 4,250 250 250 500 500 500 500 250 20 250 250 250 500 Uniforms 2880 240 240 240 240 240 240 240 240 240 240 240 240 TOTAL LANDSCAPE MAINTENANCE 221542 17,785 17,785 19,119 21,829 19,119 18,010 11760 17,760 17,760 17,760 17,760 19394 COURSE& LANDSCAPE MAINTENANCE TOTAL 1,676,241 124706 130.983 142,591 266,255 142,237 128,022 123,556 120,B23 119,250 121U55 124,854 131,908 (EXCL UTILITIES) WATER & ELECTRICRY COSTS Water Cost 18,126 1,814 1659 574 1969 1,349 1349 1.504 1427 1,504 1504 1,659 1.814 Electricity Pumping Costs 102,000 8,500 8.500 8,500 85M 6500 8500 8.500 8500 8,500 a500 8,500 8,500 TOTAL WATER AND ELECTRIC COST 14,126 10,314 10,159 9,074 10,469 9,849 9,849 10,004 9927 10,o04 10,004 10,159 10,314 TOTAL COURSE MAINTENANCE EXPENSES 11T96,366 135,020 141,142 151,60 216,724 152,086 137,871 133,560 130,749 129,254 131,059 131 142,222 15 20D7-2008 ANNUAL PLAN SiherRock Resort eue on it. ¢.nP-4v 12 Uent Projections- July 2007 to June 408 Y.E .luOAv G & ADEPARTMENT -6] 1 TOTAL I 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 Wages Payroll Taxes W omars' Compensation Employee Meals Health Insurance TOTAL SALARIES AND BENEFITS Equipment Repair TOTAL REPAIRS AND MAINTENANCE OTHER EXPENSES Office Supplies Panting/Stationary Postage RecmNng / Relocation Dues and Subscriptions Freight/ Detisery Trawl Entertainment & Promotion Auto Expense Equipment Rental (Copier/Storage) NonCapitalEquipment Uniforms Professional Fees (I T & Safety Fees) Seminars / Training Payroll Processing Computer Supplies (POS Support Fees) Bank & ADP Fees Miscellaneous TOTAL OTHER EXPENSES TOTAL G & A EXPENSES 200,756 16,730 16,730 16,730 16,730 16,730 16,730 16,730 16,730 16,730 1fi730 16,730 16,730 24,994 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2083, 20,076 1,673 1,673 1,673 1,673 1,bi 3 1,673 1.673 1.673 1,673 1,673 1,673 1,673 2,/60 1W 180 180 180 180 180 180 180 IN 180 180 180 23,760 1,9W 1,980 1.980 11980 1.980 1.980 1.980 1,980 1.980 1.980 1.980 1980 271,746 22,645 22,645 22,645 22,645 22,645 22,645 22,645 22,645 22,645 22,645 22,645 22,645 1,200 100 100 100 100 100 100 100 100 100 100 too 100 1,200 100 100 100 100 t00 100 too 100 100 100 100 100 1,500 125 125 125 125 125 125 125 125 125 125 125 125 3,200 100 too 100 100 400 400 400 400 400 400 400 goo 75 75 75 75 75 75 75 75 75 75 75 75 4,11N 1,000 1,000 1,000 1,000 200 200 200 1,500 50 200 50 50 200 150 1W 50 50 500 50 600 50 50 50 50 50 50 50 50 50 50 50 50 1,100 I 100 200 500 20a 1,200 100 100 100 100 100 100 100 100 100 100 100 100 4,WD 400 400 400 400 400 400 400 400 400 400 400 400 4,20D 350 350 350 350 350 350 350 350 350 350 350 350 900 to0 100 100 100 100 t00 100 100 100 1,050 75 75 75 150 1So 75 75 75 75 75 75 75 4,9011 400 400 400 400 400 400 400 400 400 400 400 400 900 I 100 100 100 100 0 0 0 0 100 No 100 6,600 550 550 550 550 550 550 550 550 550 550 550 550 6,000 500 500 No 500 500 No 500 500 500 500 No 500 3,600 300 300 300 300 300 300 300 300 300 300 No 300 1,200 100 100 100 100 100 100 100 100 100 100 103 100 48,650 3,175 3,325 4,525 4,450 4,450 4,725 3,875 3,975 3,775 3,875 4,725 3,TT5 321,596 25,920 26,O70 27,270 27,195 27,195 27,470 26,620 26,720 26,520 26,620 27,470 26,520 Uniforms- Evense to be shared between GM & Controller Entertainment & Promotion - GM promoting property for potential clients 16 2007-2008 ANNUAL PLAN SilverRock Resort Projections - July W07 to June 2008 MARKETING 12-Apr-07 12:12 PM PREPAR]i I-sKe 10r1[Goir Management MARKETING DEPARTMENT-66 I TOTAL I JUL. I AUG. I SEP. I MT. I NOV. I DEC. JIM. I FEB. I MAR I APR I MAY I JUN. OTHER EXPENSES Office Supplies 1,200 100 100 100 100 100 100 too 100 100 100 100 100 Printing/Stationary 4,425 200 3,000 no 200 200 125 125 125 125 125 Postage KID 50 50 50 50 50 50 50 50 50 50 So 50 Contract Seneces Web Page 2,100 175 175 175 175 175 175 175 175 175 175 175 175 Dues and Subscriptions 735 35 400 300 Uniforms 600 300 50 50 50 50 50 50 Telephone 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Give, Community and Trade Show 2,925 75 75 75 750 750 750 75 75 75 75 75 75 Public Relations 6,500 500 500 4.000 500 500 500 Promotions/Meals 300 25 25 25 25 25 25 25 25 25 25 25 25 Promotion -(Media, Vendor Days, etc) 700 50 50 50 300 50 50 50 50 50 Adw ising(Ad Purchases) 221,834 5,812 8,152 19,132 14,312 22,802 24,502 30,862 29,702 24,052 21,402 11,402 9,702 Collateral Material - (Yrd Bks, Rack Cup, Stato, Brochures) 9,000 0 0 0 2,500 1,000 0 2,500 500 500 500 l'ooO 500 Miscellaneous 350 50 50 50 50 50 50 50 TOTALOTHER EXPENSES 252,469 6,337 8,6P W,n7 21,862 29,352 26,552 35,022 31,902 25,02 22,702 13,152 10,902 TOTAL MARKETING EXPENSES 02,469 6,337 8,671 20,357 21,862 29,352 26,552 35,022 31,902 25,652 22,702 13,152 10,902 Prometmn/Meals - Off property events (Chamber Mixers, Rotaries and entertaining potential clients) Promotion/MadiarVendor Days - Rac ii Onsite Broadcasting Vendor Days - Show casing property in exchange for positive publicity v_ 17 2007-2008 ANNUAL PLAN 51NerRPck Resort Bury DAIP 1bAprM 1212 P61 Projections-Ju1Y200Y to June 2008 Pntsl B"DBY. La.-rk GOYMa.,,-. MISC DEPARTMENT-9806990 TOTAL JUL. I AUG. I SEP. I OCT I NOV. I DEC. I JIM. I FEB. I MAR. I APR. I MAY I JUN MISC OTHER EXPENSES Management Fee -Fxetl 111,2n 24,342 18,420 9,226 14,143 9,773 8,995 12,215 (3,434) (9,900) (6,304) 13,356 19,844 FFBE Rase" (20Y) 71,686 1,974 1,954 3,858 1,973 6,822 6,427 5.358 10,802 12,821 9,828 6,027 3,843 General Liability Insurance 50,400 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 Personal Prop" Taxes 20,000 0 0 20,000 0 0 0 0 0 0 0 0 0 253,363 3Q517 24,574 37,284 2Q916 20,796 19,622 21,712 11,568 7,121 7,724 23,583 27,887 IE4 EEPPENCF< Golf Can Leases 117,600 9180) 9,800 9,800 9.800 9,800 9,800 9.800 9,800 9,800 9,800 91800 9,600 Trailer Leases 7,200 600 600 600 600 600 as) 600 600 600 600 600 600 Computer / Software Lease 18,300 1,525 1,525 1,525 1,525 1,525 1,525 1,525 1,525 1.525 1,525 1,525 1,525 CPS Lease (Up-Lmk) 88,800 7.400 7,400 7,400 7,400 7,4 O 7,400 7,400 7,400 7,400 7,400 7,400 7,400 Golf Course Maintenance Equipment Leases 240,000 20,000 20.000 20,000 20,000 20,000 20,000 20,000 M,000 20,000 20,000 20,000 20,000 471,900 39,325 39,325 39,325 39,325 311 39,325 39,325 39,325 39,325 39,325 39,325 39,325 18 Ci) 2007.2008 ANNUAL PLAN Stive Brock Res00 n1ARReTOW 12-Ai 12 12 PM Projects 200]ID June 2008 PRAPAREDDY. Lvn Ai(oRWw{ w TEMPORARY CLUBHOUSE-800 TOTAL JUL. AUG SEP OCT. NOV. DEC. JAN. FEB MAR. APR. MAY JUN SUPPI FES AND MATERIALS Evendable Supplies 4,800 400 400 400 400 400 400 400 400 400 400 400 400 TOTAL SUPPLIES AND MATERIALS 4,800 400 400 400 400 400 4W 400 400 400 400 400 400 _ PARS AND MAMIT NF ANCE Building Structures 2,400 200 200 200 200 200 200 200 200 200 200 200 200 Restaurant Repair 4,1 400 400 4W 400 400 400 400 400 400 400 400 400 Equipment Repair 4,800 400 400 4W 400 400 400 400 400 400 400 400 400 TOTAL REPAIRS AND MAINTENANCE 12,NO 1,00I 1,000 LOW 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 OMER Contract Senrees Cleaning 22,800 1,825 1,825 1,825 2,425 1,825 1,825 1,825 1,825 1,825 1,825 1,825 1,825 Refuse Disposal 6,000 500 500 500 50) 500 500 500 51 500 500 500 500 Telephone 12,000 1,000 1,000 1,000 1,000 I'm 11000 1,000 1,000 1,000 1,000 1,000 1,000 CableRoadrunner3,800 317 317 317 317 317 317 317 317 317 317 317 317 Water 2,4011 200 200 200 200 200 200 200 200 200 200 200 200 Sewer 2,400 200 200 zoo 200 200 200 200 200 200 200 200 no Safety Equipment 1,200 100 100 IN 100 100 100 100 100 100 100 100 100 Natural Gas 3,600 300 300 300 300 300 300 300 300 300 300 300 no Flowers and Decorations 2,600 100 100 100 1W Ioo 100 1,500 1W IN 100 1W 100 Building Sei(Rowng Patrol) 97,200 81100 8,100 8,100 8,100 8,100 8.100 8,100 8,100 8,100 8.100 81100 8110)0 Miscellaneous 2,400 200 200 200 200 200 200 200 2W 200 200 200 200 TOTAL OTHER EXPENSES 156,100 12,842 12,842 12,842 13,442 12,842 12,842 14,242 12,S42 12,842 12,842 12,81 12,842 TOTAL CLUBHOUSE EXPENSES 17f4W 14,242 14,242 14,242 14,S42 14,242 14,242 15,642 14,242 14.242 14,242 14,242 14,242 Ereenclable Suppies made up of Locksmith, Trashbags, Lghlbulbs, Mats, Items related to Maintenance of Clubhouse 19 F""✓. cb CU 2007-2008 ANNUAL PLAN 9 rRwk Reron RUN DATE: 12-Apn47 12:12 PM vro none-AAy M7 to Jum ..,AREDRY: Landmark Coif Management FOODSBEVERAGE OEPT-62 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAV JUN. FOOD REVENUE 40,580 1,900 t,900 3,250 1,300 3,800 3,600 2,500 4,BB0 5,800 5,200 3,950 2,500 TOTAL NUMBER OF ROUNDS GRILL ROO TERRACE AVERAGE FOOD REVENUE PER ROUND $3.46 $2.25 $225 $300 $300 $400 $4.00 $5.00 $400 $4.00 S4.00 $300 $3.00 TOTAL SNACK SHOP FOOD REVENUE 147,170 4,275 4275 9750 3900 15200 14400 12500 19.520 23200 20.800 11,850 7,500 BEVERAGE CARTS AVERAGE FOOD REVENUE PER ROUND $tb1 $1 75 MOO $225 $175 $125 $2.00 $225 $200 $200 $195 $125 $125 TOTAL BEVERAGE CART FOOD REVENUE 73,850 3,325 3,800 7,313 2,275 4,750 7,200 5,625 9,76D 11,600 10,140 4,935 3,125 AVERAGE FOOD$ PER ROUND S400 $425 $5.25 $C75 $525 $600 $7.25 $600 S6.00 $5.95 $4.25 S425 BV RA RV N/ 40,580 1,900 1,900 7,250 1,700 3,800 3,600 2,500 4,880 5,800 5,200 3,950 2,500 TOTAL NUMBER OF ROUNDS GRILL ROOMRERRACE AVERAGE BEVERAGE REVENUE PER ROUND $2.21 $100 $1.00 $200 $200 $200 $2.00 $5.00 $3.OD $300 $3.00 $125 $125 TOTAL SNACK SHOP BEVERAGE REVENUE 95.903 1,900 11900 6,500 2,600 7,600 7.200 12,500 14,640 17,400 15,600 4,938 3125 50.50% BEVERAGE CARTS AVERAGE BEVERAGE REVENUE PER ROUND $2.17 $2.00 $1 75 $1.75 $1.75 $200 $2.25 $300 $3.00 $300 $3.00 $1.25 $125 TOTAL BEVERAGE CART BEVERAGE REVENUE 93,990 3,800 3,325 51688 2,275 7,600 SUM 7,500 14,MO 17,400 15,600 4,938 3,125 49.M% AVERAGE BEVERAGE S PER ROUND $ 9.64 $3.00 $2.75 $375 $375 $400 $4.25 $800 S600 $600 $600 $250 $250 20 2007-2008 ANNUAL PLAN RUN DATE: 12-ApMI7 12 12 PM PREPAREDBY: Landmark Golf Management FOOD B BEVERAGE DEPT-62 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. FOOD REVENUE Snack Shop/Temem, Food Beverage Can Food Either Food Income Non -Taxable Tournament Site Fees Misc. Non -Taxable Site Fees (Weddings) TOTAL FOOD REVENUE Snack Shop/Terrace Beer 6 Wine Snack Shop/ emace Sodas Bexerage Cad Beer 8 Wine Be rage Cad Sodas TOTAL BEVERAGE REVENUE TOTAL FOOD A BEVERAGE REVENUE COS - Food (37%) COS - Beer 8 Wine (25%) COS - Sodas (27%) TOTAL COST OF SALES GROSS PROM Salanes and Wages Payroll Taxes W otkers' Compensa0on Employee Meals Health Insurance TOTAL SALARIES AND BENEFITS SUPPLIES AND MATERIALS Eeeendable Supplies Bar-tensds Menus, Napkins and Placemats TOTAL SUPPLIES AND MATERIALS REPAIRS AND MAINTEM4W Equipment Repair TOTAL REPAIRS AND MAINTENANCE Office Supplies Postage Equipment Rental NonCapitalEquipment Uniforms Laundry and Linen Lease Payment Seminars I Trammg Cleaning Supplies Licenses and Permits M,scellaneous TOTAL OTHER EXPENSES TOTALEXPENSES TOTK FOOD 5 BEVERAGE PROOD losst 147,170 4,275 4,275 9750 3,900 15,200 14,400 12,500 19,520 23,200 20,800 11.850 7500 73,850 3,325 3,800 7,313 2,275 4,750 7,200 5,625 9,760 11,600 10,140 4,938 3,125 0 0 0 0 0 0 D 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 221,020 7,600 8075 17063 6.175 19A50 21,600 10,125 29,280 34,800 30,940 16.788 10,625 47,951 950 950 3,250 1,300 3800 3,600 6,250 7,320 8,700 7,800 2,469 1,563 47,951 950 950 3,250 1,300 3,800 3,600 6,250 7,320 8,700 7,800 2.469 1,563 46,995 1,900 11663 2,844 1,138 31800 4,050 3,750 7,320 8,700 7,800 2,469 1,563 4Q995 11900 1,663 2844 1,138 3,800 4,050 3,750 7,320 8,700 7,800 2,469 1,563 189,893 5,700 5,225 12,188 4,875 15,200 15,300 2g000 29,280 34,800 31,200 9,875 6,250 410,913 13,300 13,300 29,250 11,050 35,150 36,900 38,125 58,560 69,600 62,140 26,663 16,875 81,]TI 2,812 2,988 6,313 2,285 7,382 7,992 6,706 10,834 12,876 11,448 6,211 3,931 23,737 713 653 1,523 609 1,900 1,913 2,500 3,660 4,350 3,900 1,234 781 25,635 770 705 1,645 658 2,052 2,066 2,700 3,953 4,698 4,212 1,333 844 131,149 4,294 4,346 9482 3,552 11,334 11,970 11.906 18,446 21,924 19,560 8,779 5,556 9,006 8,954 9,]68 7,498 2 , 41-r 3,9 0 26,219 40,114 47,676 42,580 1 ,884 11,319 159,692 11756 11,256 12,892 5550 13,612 14,007 15,763 15,923 16.082 16,082 12,994 13,273 K,616 1548 1,518 IBM ]1] 1757 1,808 2,035 2056 2,076 2076 16]] 1.714 15,969 1,176 1,176 1,289 555 11361 1,401 L576 1,592 1,608 1,608 1,299 1,327 5,66D 3W 3. YA 42n 540 5f0 Nor too Fee YU G80 420 44,860 2,160 2,160 21W 2,520 4,440 4,"0 4800 4,800 4,800 4,800 4,080 3,720 247,037 ISMS 16,969 18,356 %762 21,111 22,196 24,115 24,971 25,167 25,167 20,530 20,454 10,]20 620 620 620 870 870 870 2 500 750 750 750 750 750 1,450 350 100 100 100 100 100 100 too 100 100 100 100 3.1l 175 125 175 500 250 250 550 350 350 350 350 350 15,995 1,145 895 895 1,470 1 220 1,220 3150 1,200 1.200 1,200 t 200 1,200 S, .. EKia.H. mass..' S.Wa,es, Papergoons F,siatl Unto- Eacn eni 1--4.11a 11ui �, reason 2,40D 2,400 t,soo 0 I'm 600 2,]00 4,650 12,000 ]50 4,200 6,400 1,500 35,6108 301,040 (21,2]]) no 200 200 200 200 200 200 200 200 200 200 200 100 100 100 250 250 100 100 100 100 1D0 100 too 109 109 109 109 109 109 109 109 109 109 109 109 50 SO 50 50 50 50 50 50 SO 50 50 50 150 150 150 650 150 150 150 1S0 1S0 550 150 150 400 400 400 250 400 400 400 400 400 400 400 400 Soo 500 500 1,500 1,500 1,sw 1,500 1500 1,500 500 500 500 250 25 250 25 25 25 25 25 25 25 25 25 350 350 350 350 350 350 350 350 350 350 3So 350 5,500 900 125 125 125 125 125 125 125 125 125 125 125 125 7534 1,809 2034 3,309 2959 2,809 2809 2509 3f09 2209 1,809 11809 25848 19.873 21495 14741 26090 26.425 30934 29, 180 30276 28776 23,739 23,663 (16842) (10920) (1726) (7,243) (2273) (1495) (4715) 10934 17,400 13804 (5,859) (22,344) 21 SilverRock Resort 2007-2008 Narrative Marketing Plan 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 2007-June 2008 Marketing Plan is built around an annual Marketing Budget of $252,469. The 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, area radio, and a rotating local billboard. Total advertising is budgeted at $221,834 for 2007-2008. 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 the 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 half (50%) of the advertising budget. Television commercials (30 seconds) are placed on all three local network affiliates (CBS2, KESQ3-ABC, KMIR6-NBC) and Time Warner cable stations. Local radio is used for 30-se6ond spots and specific promotions. TV and radio ads are 15% of the advertising budget. 22 400 Billboard advertising is 20% of the advertising budget and is designed to reinforce other ad programs and catch the attention of those who may not see other types of ads. The program involves a rotary billboard; every two months the location changes within the valley. The billboard ad is 10.6 feet tall and 36 feet wide. The billboard graphic design will be updated so that the SilverRock information (tee times, website, phone number, etc.) is easier to read. COLLATERIAL MATERIALS Rack cards, scorecards, and information packets on 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 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 businesses. 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. 23 Y, 204 SilverRock Resort -Arnold Palmer Classic Course Golf Rates 2007.209 PROPOSED Reservation Type (Book 90 Days) Public Public Twi Replay (Booked After Rnd) (Book 3 Daysl La Ouinta Resident to Duinb Revdent Gued (20%an ported vale( (Brook900ays1 Wholesale Wholesale Twilight (Book 1 Davl (Overseedina Dates: Course Closed Oct 9 - Nov. 7, 2007) 2007 2007 July I -Sept. 20 Jul 1-Se t.20 Mon-Thurs Fri -Sun $ 5500 $ 65.00 $ 40.00 $ 5000 $ 25.00 $ 2500 $ 3000 S 30.00 $ 44.00 $ 52 W 2007 2007 Sept 2117 SepL 21.Oct 7 Mon -Thum Fri -Sun $ 85.00 $ 105 DO $ 65.00 $ 7500 $ 3500 $ 35.00 $ 30 00 $ 30.00 $ 68.00 Is 84 00 (Easter Sunday March 23. 2008) 20B'7. ':NeY.:T 26 Moo-Thurs Aov.7-Dab, 2$ Fri -Sun $ 12500 $ 125.00 $ 80.00 $ 8000 $ 5000 $ 50.00 $ 4500 $ 45.D0 Is 100.00 $ 1 W 00 20M 2008 Dec. 26130 Dec. 26130 Mon -Thum Fri -Sun $ 16500 $ 165.00 $ 95.00 $ 9500 $ 5000 $ 50.00 $ 5500 $ 55.00 $ 132.00 $ 132 00 3/22/2007 2008 2009 way 1-June 30 May 1-June 30 Mon -Thum Fn-Sun $ 8500 $ 105 DO $ 65.00 $ 75.00 $ 35.00 $ 35.00 $ 45.00 $ 45.00 $ 68.00 $ 84.00 $ 50001 $ 60.00 1 $ 7500 $ 1 $ 100.00 $ 100.00 $ 135 00 $ 135.00 $ 75.00 $ 8500 $ 30.00 $ 3500 $ 50001 $ 60.00 $ 65 00 $ 80.000 $ 4000 $ 55.00 $ 40.00 1$ 55.00 Stand By Goff 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 bookings Rates to vary based upon actual booker (Book Up to 1 Year) Groups 03+) Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates Negotiated Rates (Book 1 Day) PGA PAID $ 25.00 $ 25.00 $ 2500 $ 25.00 $ 3500 $ 3500 $ 35.00 $ 3500 $ 2500 $ 25.00 Junior Rate (Before 2 DO p.m.) $ 2500 $ 2500 $ 25.00 $ 25 DO $ 25.00 $ 2500 $ 25.00 $ 2500 $ 2500 $ 2500 Junior Rate (After 200 p m.) $ 10.00 $ 1000 $ 1500 $ 1500 $ 15.00 $ 15.00 $ 1500 $ 15.00 $ 1500 $ 15 D0 Juniors are 17 and under All rates to include green lee, got( can, kmded amount of range balls prior to round. except god cart for Juniors Non golfersridealongs-must abbe by dress code, trusts permitted based upon availability at a rate of $25 per rider City Employees-Prevadeg Resident Rates OTHER FEES Range Not Playing 1 Hour $ 10.00 12 Hour $ 700 Y Rental Clubs $ 45.00 C Handicap Membership $ 45.00 Gott Lessons IV 1Hour $ 7500 12 Hour $ 50.00 O N 24 Golf Course PGA West (Stadium, Nicklaus, Mountain) Public Twilight Accompanied Guest Rate Sponsored Guest Rate Classic Club Public Twilight Indian Wells Resort Public Twilight Accompanied Guest Rate SilverRock Resort Public Twilight Accompanied Guest Rate Desert Willow Resort Sunrise (Open-7:55 a.m.) Prime(8:00-11:55 a.m.) Midday (12.00-1:00 p.m.) Twilight (1:00-1:55 p m.) Sunset (Alter 2:00 p.m.) Guest Rate' Westin Mission Hills Resort Public Twilight Shadow Ridge Public Twilight Trilogy Public Twilight Competitive Rates Coachella Valley November -December January -April Mon-Thurs Fri -Sun Mon-Thurs Fri -Sun $ 155.00 $ 155.00 ; $ 235.00 $ 235.00 $ 85.00 $ 85.00 ; $ 115.00 $ 115.00 $ 115.00 $ 115.00 $ 115.00 $ 115.00 $ 300.00 $ 300.00 $ 300.00 $ 300.00 $ 145.00 $ 165.00 $ 195.00 $ 195.00 $ 95.00 $ 110.00 $ 175.00 $ 175.00 $ 125.00 $ 125.00 $ 170.00 $ 170.00 $ 60.00 $ 60.00 $ 85.00 $ 85.00 $ 65.00 $ 65.00 $ 65.00 $ 65.00 $ 125.00 $ 125.00 $ 165.00 $ 165.00 $ 80.00 $ 80.00 : $ 95.00 $ 95.00 $ 100.00 $ 100.00 $ 132.00 $ 132.00 $ 135.00 $ 135.00 $ 135.00 $ 135.00 $ 135.00 $ 135.00 $ 175.00 $ 175.00 $ 100.00 $ 100.00 $ 135.00 $ 135.00 $ 75.00 $ 75.00. $ 95.00 $ 95.00 $ 65.00 $ 65.00 , $ 65.00 $ 65.00 $ 86.00 $ 86.00 $ 86.00 $ 86.00 $ 135.00 $ 135.00 $ 165.00 $ 16500 $ 67.50 $ 67.50 $ 82.50 $ 82.50 $ 115.00 $ 115.00 $ 170.00 $ 170.00 $ 75.00 $ 75.00 $ 110.00 $ 110.00 $ 99.00 $ 119.00 $ 130.00 $ 155.00 $ 60.00 $ 70.00 $ 72.00 $ 85.00 To receive a guest rate at Desert Willow; you must purchase an annual Platinum Card. Non -Residents pay $450 Annually & Residents pay $350 Annually 25 203 SILVERROCK RESORT ANNUAL PLAN 2007-2008 Bob Hope Assumptions OPERATIONAL EXPENSES Revenue: It is assumed that the golf course will close for public play on Sunday, January 13, 2008 for the Bob Hope Chrysler Classic and reopen for play on Sunday January 20, 2008. 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 2007-2008 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 2008. Wages: It is assumed that the SilverRock Resort golf course maintenance crew of 30 employees will work an additional 41 hours of overtime 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 flowers and plants will be added at the entrance and clubhouse area. Also, additional sand will be needed to ensure all sand bunkers on the course are consistent and are in compliance with PGA Tour standards. Additional seed will be required 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 2007. If there are areas on the course that do not meet PGA Tour standards, these 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. Also, additional green waste removal will be required when removing additional course debris. CAPITAL EXPENSES Four (4) additional John Deere walk mowers (and trailers to haul them) will be required to prepare the course during the tournament. Per PGA Tour standards, greens will be double -cut which requires twice as many greens mowers. Also, tournament play will start off holes #1 and #10 which will require the course to be prepared quicker than normal and these additional mowers will be needed to meet the time schedule. These mowers will be used each year during the ten (10) year tournament contract. 2s ri... 204 N O C; i 2007-2008 ANNUAL PLAN SUPPLEMENTAL BOB HOPE EXPENSES SilverRock Rased RI.N DATE 1]�Ap.-0] II:L AX Protections-Ju1y2007 to June 2008 - IReP ay rpMw.k carna,,.pm.m Solari and Wages 0 0 Overtime Hourly Wages(41 hours at 30 employees) 15,000 15,000 Payroll Taxes 1,868 11868 Workers Compensation 1,000 1,000 TOTAL SALARIES AND BENEFITS 17,80 0 0 0 D D 0 17,868 SUPPLIES AND MATERIALS Fertilizer 14,000 7,000 7,000 FlowenVi'lants 2,000 2,000 Sand/Bunker 25,1300 25,000 Seed 25,DD0 25,000 Sod 6,000 2,000 4.000 TOTAL SUPPLIES AND MATERIALS 72,000 0 25,000 0 0 27,000 13,000 7,000 0 0 0 0 0 OTHER EXPENSES Equipment Rental 1,000 1,000 Green Waste Removal 0 TOTAL OTHER EXPENSES 1,000 0 0 0 0 0 0 1,000 0 0 0 0 0 TOTAL COURSE MAINTENANCE EXPENSES 90,868 0 25,00D 0 0 27,000 13,000 26,868 0 0 0 0 0 CAPITAL EXPENSES Walk Mowers(4) Trailers(4) TOTAL MAINTENANCE $26,280 $4,560 TOTAL CAPITAL EXPENDITURES^ $ 30,840.00 $0 $0 $0 $0 $0 $3D,840 $0 m $0 $0 $0 27 2007-2008 ANNUAL PLAN SilverRock Resort RUN DATE: 16-Mar-07 09:24 AM Projections - July 2007 to June 2008 PREPARED BY: Landmark Golf Management Front Entrance Landscaping I TOTAL JUL. I AUG. I SEP. I OCT. 1 NOV. I DEC. I JAN. I FEB. I MAR. I APR. I MAY I JUN. Employee Count Landscapers $ 8.25 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 2,060 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 500 0 0 0 500 0 0 0 0 0 0 0 0 Miscellaneous 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Uniforms & Linen/Towels 360 30 30 30 30 30 30 30 30 30 30 30 30 Irrigation Systems 1,200 100 100 100 100 100 100 100 100 100 100 100 100 TOTAL SUPPLIES AND MATERIALS 7,760 480 480 480 1,730 480 480 480 480 480 480 1,230 480 Total Front Entrance Landscaping 54,296 4,358 4,358 4,358 5,608 4,358 4,358 4,358 4,358 4,358 4,358 51108 4,358 N 28 O G7