HomeMy WebLinkAboutDWGR - South Course N T E R
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To: Honorable Mayor
Members of the City Council
From: Paul S. Gibson, Director of Finance
Subject: Pre-Opening Budget for Desert Willow Golf Course-South Course
Date: May 19 1998
RECOMMENDATION:
Adopt budget for pre-opening, appropriate $304,458 to Desert Willow Golf Resort- South
Course and authorize payment of the items listed in the attached Pre-Opening Budget.
BACKGROUND:
Originally when the North Course opened, City Council appropriated $1.2 million for the Pre-
Opening of the North Course.
Section 3.3.10 of the Operations Agreement with Kemper, City of Palm Desert and Palm Desert
Redevelopment Agency, states that Kemper will provide the City with a Pre-Opening Budget.
Kemper has provided the City with the required Pre-Opening Budget for the South Course,
divided between the Palm Desert Redevelopment Agency and the City of Palm Desert. The
City's portion of that budget totals $304, 458.00. That figure consist of all maintenance of the
South Course until which time it is accepted by the City and completed by the contractor. It will
also reflect additional equipment, supplies, etc. per the Pre-Opening Budget.
Staff has reviewed the Pre-Opening budget with Kemper and has broken down all regular
operating costs, resulting in the $304,458.00 budget. All expenditures will be paid out of the
City's accounts to insure proper tracking of the total cost of the pre-opening.
Respectfully submitted, Reviewed and concur,
0 , CITY (lie_ :e
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Paul S. Gibson `CEI • .' •• : �!• - 1�•
Director of Finance/City Treasurer - ,
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3ERIFIED BY:on. F 1 ith i ty Clerk's Office
3.3.1 consummate arrangements with concessionaires, licensees, tenants, or other
intended users of the Golf Resort;
3.3.2 enter into such contracts for the furnishing of utilities and maintenance and
other services to the Golf Resort, subject to the terms of Section 3.6 below;
3.3.3 make all repairs, decorations, replacements, additions, revisions, alterations
and improvements to the Golf Resort as shall be reasonably necessary for maintenance of the Golf Resort in
good order, condition and repair, subject to the terms of Article IV of this Agreement;
3.3.4 incur such expenses as shall be necessary for the proper operation and
maintenance of the Golf Resort, including without limitation rental expenses for leased Furnishings and
Equipment;
3.3.5 maintain a level of Operating Inventory deemed appropriate by Kemper and the
Agency for supplying the needs of the Golf Resort and its customers;
3.3.6 apply for, and use its best efforts to obtain and maintain, all licenses and
permits required of Kemper in connection with the operation and management of the Golf Resort; and the
Agency agrees to execute any and all applications and such other documents as shall be reasonably required
and to otherwise cooperate, in all reasonable respects, with Kemper in the application for, and obtaining and
maintenance of, such licenses and permits;
3.3.7 use commercially reasonable efforts to do, or cause to be done, all such acts
and things in and about the Golf Resort as shall be reasonably necessary to comply with all Insurance
Requirements and Legal Requirements;
3.3.8 pay all Golf Resort Expenses, Impositions and insurance premiums, whether
incurred by the Agency or Kemper, when due;
3.3.9 implement a marketing, advertising, and promotional plan for the Golf Resort;
3.3.10 purchase Furnishings and Equipment necessary to operate and maintain the
Golf Resort in the manner provided in this Agreement.
Kemper shall also provide pre-opening services to each golf course, which shall consist of, but not be limited
• to, pre-opening marketing services; re-o enin
p p g golf course maintenance and preparation for play;
maintenance of all golf course facilities in preparation for opening (including but not limited to clubhouse (or
temporary clubhouse) and maintenance (or temporary maintenance) facilities); provision of all necessary
equipment, furnishings, and fixtures; coordination of special events; and purchase of inventory and
preparation for sale of merchandise and services related to the opening of a golf course and clubhouse.
3.4 Personnel.
3.4.1 General. Kemper shall employ, all of the employees of the Golf Resort. The
number of employees shall be no more than reasonably necessary to efficiently operate the Golf Resort.
Kemper shall recruit, hire, train, discharge, promote and supervise the management staff of the Golf Resort
(i.e., the general manager, the course superintendent, and other key personnel), and Kemper shall supervise
through the management staff the recruiting, hiring, training, discharge, promotion and work of all other
employees of the Golf Resort. The general manager of the Golf Resort shall confidentially inform the
Executive Director of all terminations and the reason therefor. All employees of the Golf Resort shall be
960916 P6402-00001 0761276.3 - 5 -
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CITY OF PALM DESERT
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DESERT WILLOW GOLF RESORT
PRE—OPENING BUDGET co
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SOUTH COURSE 209,358
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CAPITAL 95,100 f
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TOTAL 304,458
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SUMMARY
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CITY OF PALM DESERT
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DESERT WILLOW GOLF RESORT c
SOUTH COURSE 0
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PRE-OPENING BUDGET
SUMMARY Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 TOTAL
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EXPENSES/MAINT - - - - 85,439 - 118,519 - 203,958 1
EXPENSES/GOLF OPERATIONS - - - - - 5,400 - 5,400
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CITY OF PALM DESERT P
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Desert Willow-Pre-Opening Budget 1998/1999 i
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South Course-Maintenance t0
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Course&Grounds Apr-98 May-98 Jun-98 Jul-98 Au9-98 Sep-98 Oct-98 Total
Course Accessories - 30,319 30,319 1•;,
Equipment Lease NJ
Equipment Rental - D
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Gas/Oil 0
Irrigation rn
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Computer,printer,software 7,866 7,866 n
Radios 9,698 9,698 C
Equipment Purchase 19.727 19,727 -
Seed/Sod - 88,200 88,200 z
Small Tools 48,148 48,148 "*
Trash Removal -
Uniforms V O
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- - 85,439 - 118,519 203,958 G.)
" 0' See Exhibit"A" r
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Desert Willow Golf Resort
South Course Pre-Opening Budget
Maintenance Purchases
Qty. ITEM Price Amount
10 Radios $ 900.00 $ 9,000.00
1 Tire Changer $3,000.00 $ 3,000.00
1 Ice Machine $5,000.00 $ 5,000.00
2 computers, printer $3,000.00 $ 6,000.00
1 electric hoist 120 volt $1,145.00 $ 1,145,00
1 heavy duty swivel crate 2 ton 70-204DX $ 727.90 $ 727.90
1 telescoping crane wit beam 72-283D 10001bs $1,436.00 $ 1,436.00
3 amaid single&dual piston $2,333.00 $ 6,999.00
1 Trims Program Software $1,300.00 $ 1,300.00
Sub-Total $34,607.90
Small Tools(Misc.Vendors)
Qty. ITEM Price Amount
8 Sarlo 8hp. Mowers $1,550.00 $12,400.00
8 Allen mowers $ 835.00 $ 6,680.00
2 Snapper Push mowers $ 949.00 $ 1,898.00
6 Echo backpack blowers PB 400 E $ 489.00 $ 2,934.00
4 Back pack Sprayers $ 240.00 $ 960.00
1 Chainsaw sharpener $ 578.00 $ 578.00
2 Stitt' chainsaw w36"bar $ 979.95 $ 1,959.90
6 Stringtrimmers Echo SRM 3100 $ 549.99 $ 3,299.94
3 Power prunners Stihl $1,299.95 $ 3,899.85
3 Power stick edgers $ 399.99 $ 1,199.97
4 Redmax Reciprocators $ 599.99 $ 2,399.96
4 Bluebird renovators $1,369.00 $ 5,476.00
2 Power edgers 3.5 hp $ 499.95 $ 999.90
sub-total $44,685.52
TOTAL $79,293.42
SALES TAX $ 6,145.24
GRAND TOTAL $85,438.66
90 d 1717bL 9t7c. 09L A109 M011IM _. -S30 bL I :60 86-6I-SEW
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CITY OF PALM DESERT
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OUTSIDE PRE-OPENING EXPENSES
SOUTH COURSE CO
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EXPENSES Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 TOTAL t0
Mobile Radios (6) 5,400 5,400 co
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TOTAL OUTSIDE - - - - - 5,400 - 5,400 1
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CITY OF PALM DESERT
PRE-OPENING EXPENSE
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CAPITAL COSTS EXPANDING CURRENT CLUBHOUSE OPERATIONS a
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GOLF SHOP MODIFICATIONS 8,200•
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YARDAGE MARKERS (RANGE) ! 5,300
BAG RACKS - - - - _ — • - 5,100
RENTALCLUBS 16,500
POINT OF SALE SYSTEM (OCTOBER) 5,000
ICE MACHINES 7,500 O
COMPUTERS (G&A) 16,000
TELEPHONE SYSTEM (OCTOBER)
RESTAURANT ENLARGEMENT
PRACTICE AREA EXPANSION-GOLF ACADEMY_ T 23,500
TOTAL 95,100
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PALM DESERT REDEVELOPMENT AGENCY c
DESERT WILLOW GOLF RESORT
PRE-OPENING BUDGET
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SOUTH COURSE 108,750
PAYROLL 186,137
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TOTAL 294,887 0
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