Loading...
HomeMy WebLinkAboutEstablish DWGR Resident Advisory Cmte CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: Consideration for the establishment of a Desert Willow Golf Resort Resident Advisory Committee SUBMITTED BY: Rudy Acosta, Assistant City Manager DATE: March 9, 2017 CONTENTS: No additional attachments Recommendation That City Council provide direction to staff regarding the establishment of a Desert Willow Golf Resort Resident Advisory Committee. Envision Palm Desert The context of this discussion has no specific relation to the objectives of the Strategic Plan. Background At the City Council meeting of January 12, 2017, Council member Nestande requested staff place the subject item on a future agenda for the City Council discussion. Staff has since met to establish an inventory of information that the City Council may wish to consider in making their determination. Discussion Currently, the operations of Desert Willow Golf Resort are overseen by three separate committees. These committees include the Desert Willow President's Committee (DWPC), the Palm Desert Recreational Facilities Committee (PDRFC), and the Palm Desert Audit and Investment Committee (PDAIC). Each committee was established by City Council to perform their specific roles in overseeing the broad aspects of operating and maintaining a municipal golf resort. The DWPC meets monthly to review the overall operations of the resort. The DWPC agenda is the broadest of the three committees and generally touches on all areas pertinent to the operator's management agreement. Staff Report Desert Willow Golf Resort Resident Advisory Committee March 9, 2017 Page 2 of 4 The typical review topics include: • Manager's activity/financial report • Food/beverage report • Maintenance report • Capital projects • Resident programs/Special programs • Other operational issues. The PDRFC meets annually to specifically review the restaurant's Food and Beverage operations and performance. The PDRFC agenda is generally the most limited of the three oversight committees. Its formation was necessary to comply with liquor license requirements and restrictions for municipalities. The PDRFC includes two appointed Palm Desert residents. The PDAIC meets monthly and typically reviews the financial reports filed by the DWGR operator as a constant item on their agenda. The PDAIC reviews all aspects of the City's financial activities, reporting requirements, and investments, and maintains four appointed Palm Desert residents. Finally, although not a City committee function, DWGR is annually inspected and audited by the United States Golf Association (USGA). The independent USGA audit report provides the City with a valuable review of golf course conditions and its compliance with USGA standards. This action is also a requirement of the DWGR operator agreement. Since initiation, the majority of DWGR challenges/issues have been resolved at one or another committee level. Policy related issues such as resident rate adjustments, resident card requirements or resident discount programs require City Council action and are therefore brought before City Council for direction as needed. The City of Palm Desert's City Council and staff have historically placed great value on the participation and input of its residents. As with all the City committees, meetings are conducted in the context of the established purpose and objectives of the respective committee. This practice ensures that the City remains respectful and mindful of the time committed by committee members and that their service is fruitful and productive for the City. Staff has discussed and evaluated the potential merits and the logistics of facilitating an additional advisory committee for the operations of DWGR. Over the years, some resident golfers have suggested that insufficient voice is given within the current structure to resident issues and ideas. These individuals have asked for either an advisory committee that works exclusively in their interests, or for membership on the President's Committee. In the past two years, actions such as the re-instatement of the Champion's Club program and the programming of a City championship have occurred G 1Eco^De,eiop:nen,1Rudy Acosta\Staft Reports-20171SR 03-09-17 DWGR ResComt doc Staff Report Desert Willow Golf Resort Resident Advisory Committee March 9, 2017 Page 3 of 4 in great part because of resident golfers' input. Ultimately, both issues were discussed and a supportive recommendation was made by the DWGR President's Committee. In both cases, the issues did not rise to the level requiring formal City Council action because they were resolved within the framework of the current City policy and/or the management agreement. In reviewing the information relevant to formation of a new advisory committee, staff has identified a large number of variables that impact the financial condition of Desert Willow. These variables - - "or moving parts" - - include: • the effects of minimum wage increases at DWGR and, • the potential effects to DWGR operations from the non-potable water rate increases (CVWD agreement) and, • the effects of utility rate increases at DWGR and, • the overall effects to DWGR operations from the summer 2016 renovation at the Firecliff course. These moving parts all have cost implications that cannot be qualified until after the end of the fiscal year. Because Desert Willow is a municipally owned asset, and its financial condition has implications for the General Fund, staff suggests that it might be premature to define the purview of a resident golfers advisory committee. In addition, staff notes concern with its own capacity to coordinate and manage an additional committee assignment. For these reasons, staff suggests that any official formation of a DWGR Resident Advisory Committee be facilitated in early fall 2017. The additional time would allow staff to effectively complete its research and evaluation of DWGR 2016-17 financial performances, and to address necessary staffing resources through the annual budget process. In the interim, staff believes that the existing oversight committees are able to address any resident issues raised that do not require the City Council to modify existing policies. C,•Lco De.eloorenl\Rudy Acosta\Staff Reports-2017\SR 03-09-1 7 DWGR ResCom1 coc Staff Report Desert Willow Golf Resort Resident Advisory Committee March 9, 2017 Page 4 of 4 Fiscal Analysis No information on fiscal impacts is available at this time because the DWGR Resident Advisory Committee does not currently exist. Staff costs associated with supporting a new advisory committee would depend on the frequency of meetings and the nature and number of concepts proposed by the committee for implementation. Submitted By: Rudy A osta, Assistant City Manager Reviewed: , - t)`-62_ J oore, Director of Finance Approved: Lauri Aylaian, City Manager G'•E:cn Deve,oprnect\Rudy Acosta\Staff Reports-2017\SR 03-09-17 DWGR ResComl doc