HomeMy WebLinkAbout0422.000~ w
July 19, 1990
HONORABLE CITY COUNCIL
Palo Alto~ California
Attention: Finane. and PUblic Works committee
Golf course CApital Improvement Pro1ects
Members of the Council.
At the April 23 , 1990 meeting, city Council considered an award of
contract for -Golf Course Ranqe Tee Expansion.-Council directed
staf.! t.o come back to F'PW during the budget process vith
information r8;9ardinq -the. fe.asibility of a qreen fee rate that
vill offset all or part of the qolf course'/i onqoing capital
improvements,· and a -10 year accounting of capital expenditures
at the qolf course .. -
Att.&~~ent -A-is a 20 year revenue projection for golf fees and
tenant revenues developed as part of a long-range improvement and
renovation plan. The user fees and tenant revenue increases are
consistent with others in the marketplace and with the projections
of qrowth locally and nationally; and. as such, we. feel that the
projections are accurate.
In April 1981, the city council approved " methodology for
determining the Golf course's financial performance based on costs
bein<J equal ~o.
1. S~laries and ~enefits of maintenance staff;
2. SUpplies ... materIals and services purchased to support
course operations:
3. Work actually accomplished by other City departments: and
C. Debt service.
This methocSology did not include qeneral City adD!nistrative
overbead or capital vehicle purchases. In June, 1990, the Council
adopted a comprehensive user fee/cost allocation methodology which
vas based upon total costs of providing services, with cost
recovery le.vels that reflected the type of service provided, fee
purpose, and service population. Attachment -A-reflects the
change in methodology trom direct cost recovery only to total cost
CXR.422.0
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July 19, lI~O
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recovery a. a basi. tor fee calculation. Attachment -A-makes the
following assumptions for purposes of projections:
Salerie. and Benefits are
projected at +5'
OVerhead Charges frOID the cost
allocation plan at +5'
Contract Services and Supplie. ,
KaterIals
Utilities (Water) costs projecte<S
$22 ... 000 increase
8S .. 000 ne'W' cost
85 ... 000 increase
50.000 increase
rbe revenues proposed continue to recover all cost. completely,
including Debt service (1978 revenue bonds), and provide sufficient
cash flow for capital projects if approve<S.
AttDchment .,. Is a listing of the Golf Course CIP projects over
the last 10 years and includes the DrIving: Ram;e Tee project
currently underway. Total crp project costs for the period vere
$667,000.
,,"ashmen!; ·c· Is the annual fee survey completed: in January, 1991).
Comparisons clearly show room for tee increases t.o off.et potential
capital projects. On an averaqe basis, a one dollar Increase in
18 bole fees qenarates an additional $60100~ in additional annual
revenue. Attachment -A-reflects these llOderate increases in fees.
Tbe proposed Fee SChedule for ravenues as outlined in Attachment
-A-is structured to fully recover current bond indebtedness and
proposed capital costs on a "pay-as-you-'JO basis" for 'JOlt
improvements, and it has been .. endorsed by the Golf Advisory
commlttee~ the Nonprofit Corporation Officers and Oirectors, and
the qeneral public at large.
Respectfully submitted, _
~ {y~ ~ JiiZ.I6-;J __
Paul Dias Paul Tbiltgen
~ng~ Golf Director of Community Services
ASsistant City Kanager
Attachments: 20 Year Revenue Projection
Golf Course CIP Projects
Annual Fee Survey
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0 PAUl WI) I!IJIIICIF!L Il:l!l = ,"" ATTACHMENT -... -
.J
!IIlI1! lEU IMIllE !lPJ:ISl PiOJEt1lil1
III'IIUES DliECI 0\nruD DEBT !OrAL Jt\!lIlJIS ) = 51:1\1":1 0lSTS ElPO'stS ----
1I9C)I'1 11,1<6,000 (I) 11,153,000 (I) $81,000 (I) $lU,OOO $l,m~ooo $l2.lCOJ
11911'2 $1,511,000 (I) '$1~215,900 $92~400 $144.000 $l,E2,ll..)Q $fl,700
1992/91 $-l,620,MlO $1,126,6~ II) $97 4 820 1I1ll,000 $lj3E)~ns $15<,215
lJ911't $1,710,000 $],lU .. 030 IInl,en 'l.l6~OOO fl.t20}iOl $289,OS9
199(~ U,101,OOO $l ... 242,UJ $106,965 $m,ooo $1,U1,146 $31~j854
19'JS[96 $l,!ICXI.CXXI $1,304,290 $ill,3n $-153,000 $1,5069.603 $330.397
1996/91 $1."'.000 $1,)69 ... 5(15 $Ui .. '21 $lt"tXXl $l,ne,O) $341,'561
1"1/91 $2 ... m .. ooo $1,43' .. 9&0 $123,.25 $142,000 ~1,703Ja05 $373 .. 195
I"'''' $2,172.000 $1 ... 509.179 $130.016 ~L36.000 $1,775 ... 895 $l%,lOS
Lmf2000 $.2r 2e,OOO $1.~S. .. 37J. $-U6))17 $155 .. 00:1 $1,116,190 i388,U<J
2OOlj2001 $.2,30.00c $1 .. 654 ... 641 $143,30 $111,000 $1,955.984 $393.,Ol{i
2001/2002 '$2: .. (U"OOO 11,7l1.11' $15C .. 510 $1(1,000 12,039,m $4.(;] ... 616
200.2j2OO1 $2,533 .. 000 $l,US,261 $15I ... 03S. $159,(1()(} ~.lS.2,303 $1!O,69i
1003{200( $2,625.,00D $llm.flll $165,9>7 $0 $2 .. 092,96' $532,03.2
IOO4j2OO5 $2,746,0C(I $2 .. 1123,382 $11.,2.'4 $0 $2 .. 197,6111 $548 ,l84
200Sf2OO' $2,83t ... OOO f2,l2'C,S51 1111,946 $0 $2~307,C97 $530,503
lOO6f1OO1 $2jUJ,OOO fl,230,n9 f19.1 .. 09J $0 $2~t22,112 $~1,12t
200 1/2001 $3,021,000 U,ID,lU $2<)1,,," $0 *2,544,016 'kTI,9.14.
IOO!f2OO'l $3,U4,~ $2' .. 6',434. $211, '&2 $0 $2,671,216 'kU,784
_,lOIO '$),206",000 $2,512.(06 S222,372 $0 $2,I04,m $401/223
------------------
IotII.S '$46,265,000 $34 ... 070,5.J7 $2,909,104 $1,181,tlOO $:uI,I61,!2:i $7,tCI3,E/g =-----==--=~
.. , ..... il>c:M. ,.... .... femWlt IeIlts,
(1) Prtjel;:Ue' .. le'lenues histor-kally un5uest!aatea by $!M) ... OOO wually for· worst cue· IioHSOna] vari.mc:es.
(l) Inclu&$ 51 .. lory tdjus_t -.11 .the: costs hctm Ilso I +5l wWIJ.
(3) O",,,.d costs I $13;160 I 1.051
(I) Pr.j0ru4 501 .. t.,. "'!JJ<p cost of $150,Il00 ... lI<lllllP" ""I'lru" of R"~ inigaUoo
wi ern.."t .. tor I",Wlili ...
41/90 carcip2
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