Capital Projects 2017-2020
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Trustee Peter Morris concocts up a "Scientific Survey"
At the IVGID Board of Trustee meeting, last Wednesday, after Trustee Dent explained that a majority of the community did not want the Parasol deal to proceed, Trustee Morris chimed in and stated he disagreed with Dent and indicated Mr. Dent's survey conducted by Flash Vote was NON SCIENTIFIC.
Morris stated : "I believe a significant portion of the community does want additional space, they do want additional services from us and I think we need to take that into account, certainly as we've seen from the Scientific Surveys that we've done".
We know of no such survey and we question how you would actually conduct a Scientific Survey. We are aware of a survey conducted for the Diamond Peak Master Plan and a survey conducted for the Incline Beach building replacement but no survey for additional space and additional services. Hear his complete statement on LiveStream beginning at 1:50:58.
Morris must be "out to lunch" or maybe he found the new retail store NEW LEAF and dropped in for a puff, or maybe he misread the prepared statement provided to him by Guinasso. He has little to offer and remember he is spending your money.
#CapitalProjects
At the IVGID Board of Trustee meeting, last Wednesday, after Trustee Dent explained that a majority of the community did not want the Parasol deal to proceed, Trustee Morris chimed in and stated he disagreed with Dent and indicated Mr. Dent's survey conducted by Flash Vote was NON SCIENTIFIC.
Morris stated : "I believe a significant portion of the community does want additional space, they do want additional services from us and I think we need to take that into account, certainly as we've seen from the Scientific Surveys that we've done".
We know of no such survey and we question how you would actually conduct a Scientific Survey. We are aware of a survey conducted for the Diamond Peak Master Plan and a survey conducted for the Incline Beach building replacement but no survey for additional space and additional services. Hear his complete statement on LiveStream beginning at 1:50:58.
Morris must be "out to lunch" or maybe he found the new retail store NEW LEAF and dropped in for a puff, or maybe he misread the prepared statement provided to him by Guinasso. He has little to offer and remember he is spending your money.
#CapitalProjects
Nov 20, 2017 8:36:17am
Our Village Voice updated their status.
IVGID Trustees take a PAUSE on the Parasol deal
After eight months of deliberating over buying out Parasol and concluding there is no definitive answer on whether or not IVGID could occupy the building, the Trustees have decided to take a PAUSE for approximately 6 months and complete the Community Services Master Plan. In the mean time, Guinasso, will initiate "negotiations" with Office Depot, the agent for the dissolved Gardena Service Corporation, the successor to Boise Cascade, to REMOVE the Covenants, Conditions and Restrictions placed on the remaining 22 acres of land IVGID purchased from Boise in 1977. The land under the Parasol building is part of the 22 acres. Approximately 4 acres were released from the CC&R's when Washoe County acquired the acreage for the Middle School.
Trustee Morris still believes the deal is a good opportunity once we get the numbers right and clear the hurdles. He has no idea what the numbers are but it's still remains a good deal.
Trustee Horan wanted the public to know that in his mind the price was never $5,500,000, however, we never got what his price might be. He also stated that the borrowings required for the deal could not muster the 4 votes necessary to make the acquisition
Trustee Wong stated that prioritization of project REPLACEMENTS was necessary to see if there was enough money. She stated the cost of the culvert at Diamond Peak is UP and other replacement projects were only conceptual. Keep in mind, next month she, along with Morris and Horan, will approve the expenditure of $700,000 for an enviormental impact statement for the NEW Diamond Peak expansion. According to her, the extra revenues achieved at Diamond Peak from two years of excellent snow conditions have now become permanent so we have her proclamation the District will have extra revenues going forward.
Trustee Callicrate statement was one of simple amazement that after 8 months there is no answer from the tag team lawyers about IVGID's ability to occupy the building.
Trustee Dent stated that the community never wanted the deal and for $6,000,000 a new office building could be built next to the Recreational Center with enough money left over to rehab the 25 year old Rec Center This could be accomplished without all of the constraints imposed by the Parasol deal.
All in all we can now take a deep breath and wait for the circus to return in the Spring of 2018.
#CapitalProjects
After eight months of deliberating over buying out Parasol and concluding there is no definitive answer on whether or not IVGID could occupy the building, the Trustees have decided to take a PAUSE for approximately 6 months and complete the Community Services Master Plan. In the mean time, Guinasso, will initiate "negotiations" with Office Depot, the agent for the dissolved Gardena Service Corporation, the successor to Boise Cascade, to REMOVE the Covenants, Conditions and Restrictions placed on the remaining 22 acres of land IVGID purchased from Boise in 1977. The land under the Parasol building is part of the 22 acres. Approximately 4 acres were released from the CC&R's when Washoe County acquired the acreage for the Middle School.
Trustee Morris still believes the deal is a good opportunity once we get the numbers right and clear the hurdles. He has no idea what the numbers are but it's still remains a good deal.
Trustee Horan wanted the public to know that in his mind the price was never $5,500,000, however, we never got what his price might be. He also stated that the borrowings required for the deal could not muster the 4 votes necessary to make the acquisition
Trustee Wong stated that prioritization of project REPLACEMENTS was necessary to see if there was enough money. She stated the cost of the culvert at Diamond Peak is UP and other replacement projects were only conceptual. Keep in mind, next month she, along with Morris and Horan, will approve the expenditure of $700,000 for an enviormental impact statement for the NEW Diamond Peak expansion. According to her, the extra revenues achieved at Diamond Peak from two years of excellent snow conditions have now become permanent so we have her proclamation the District will have extra revenues going forward.
Trustee Callicrate statement was one of simple amazement that after 8 months there is no answer from the tag team lawyers about IVGID's ability to occupy the building.
Trustee Dent stated that the community never wanted the deal and for $6,000,000 a new office building could be built next to the Recreational Center with enough money left over to rehab the 25 year old Rec Center This could be accomplished without all of the constraints imposed by the Parasol deal.
All in all we can now take a deep breath and wait for the circus to return in the Spring of 2018.
#CapitalProjects
Nov 21, 2017 1:40:58pm
Our Village Voice updated their status.
Escalating costs of Capital Projects – Diamond Peak drainage culvert and parking lot paving (from $1,725,000 to $7,411,000)
As far back as 2011/2012 the drainage culvert, which takes Incline Creek water under the Diamond Peak Parking lots and an adjacent culvert taking water off the ski slopes were determined to be in poor condition and in dire need of replacement. In addition, the large parking lot at Diamond Peak needs to be redone after the culvert work is completed.
Both projects were scheduled for 2013 at a combined estimate of $1,725,000. For many unknown reasons the project never got started. The delay may have been budget constraints or stalled, awaiting changes which might be imposed by the TRPA for the proposed expansion at Diamond Peak.
In 2014 the budget jumped to $4,295,000, jumped again in 2015 to $4,651,000, jumped again in 2016 to $5,651,000, and jumped again in 2017 to $5,938,000.
During the spring of 2017, a portion of the culvert on the ski slopes failed and an emergency repair contract for $328,000 was issued. When completed the costs ended up at $443,000 a 35% increase. Fortunately 75% was paid by FEMA.
In December, 2017 more bad news, the condition of the culvert under the parking lot required a new design and the estimated costs for the projects have escalated to $7,411,000. This does not even include the 3,000 feet of culvert higher up the ski slopes. Management has considered replacement is unnecessary at this time. There would be at least $1,500,000 MORE if the complete project was done.
One major concern is Management's decision not to design and competitively bid the projects. Their approach is a Construction Manager at Risk, which means no bidding but selecting one contractor, one construction manager, and one design firm. If management doesn't know their costs how will they determine a fair price. Not good in our eyes but the decision has been made.
The problem we see here is very poor management and their inability to provide reasonable cost estimates for major projects. In this case, we started at $1,725,000 and are now at $7,411,000 a 430% increase (515% if all culverts were replaced). The major project work has not even started. Based on historical project cost overruns expect another 30%-35% more. The costs could be as much as $10,000,000.
Is there enough money? Probably, with the excess funds achieved from excellent snow conditions the past two years and delaying some other projects. With the lack of snow this year cash could tighten up.
Five year plans get banged up pretty good with these budget misses. Consider there really is no FIVE YEAR PLAN. Remember Parasol. It was added to the five year plan then taken off within six months. There is no real planning.
#Rec #CapitalProjects
As far back as 2011/2012 the drainage culvert, which takes Incline Creek water under the Diamond Peak Parking lots and an adjacent culvert taking water off the ski slopes were determined to be in poor condition and in dire need of replacement. In addition, the large parking lot at Diamond Peak needs to be redone after the culvert work is completed.
Both projects were scheduled for 2013 at a combined estimate of $1,725,000. For many unknown reasons the project never got started. The delay may have been budget constraints or stalled, awaiting changes which might be imposed by the TRPA for the proposed expansion at Diamond Peak.
In 2014 the budget jumped to $4,295,000, jumped again in 2015 to $4,651,000, jumped again in 2016 to $5,651,000, and jumped again in 2017 to $5,938,000.
During the spring of 2017, a portion of the culvert on the ski slopes failed and an emergency repair contract for $328,000 was issued. When completed the costs ended up at $443,000 a 35% increase. Fortunately 75% was paid by FEMA.
In December, 2017 more bad news, the condition of the culvert under the parking lot required a new design and the estimated costs for the projects have escalated to $7,411,000. This does not even include the 3,000 feet of culvert higher up the ski slopes. Management has considered replacement is unnecessary at this time. There would be at least $1,500,000 MORE if the complete project was done.
One major concern is Management's decision not to design and competitively bid the projects. Their approach is a Construction Manager at Risk, which means no bidding but selecting one contractor, one construction manager, and one design firm. If management doesn't know their costs how will they determine a fair price. Not good in our eyes but the decision has been made.
The problem we see here is very poor management and their inability to provide reasonable cost estimates for major projects. In this case, we started at $1,725,000 and are now at $7,411,000 a 430% increase (515% if all culverts were replaced). The major project work has not even started. Based on historical project cost overruns expect another 30%-35% more. The costs could be as much as $10,000,000.
Is there enough money? Probably, with the excess funds achieved from excellent snow conditions the past two years and delaying some other projects. With the lack of snow this year cash could tighten up.
Five year plans get banged up pretty good with these budget misses. Consider there really is no FIVE YEAR PLAN. Remember Parasol. It was added to the five year plan then taken off within six months. There is no real planning.
#Rec #CapitalProjects
Jan 14, 2018 3:23:12pm
The "Facility Fee" – Is there really any money for large Capital Projects or do we believe in the Tooth Fairy?
Remember the Tooth Fairy. Go to sleep at night, wake up in the morning and under the pillow is money. Most of us can no longer count on that sort of revenue.
Our annual Recreation Fee and Beach Fee which are collected as standby and service charges have been renamed a singular "Facility Fee". One naturally assumes this Fee is used to maintain and replace the recreational facilities. That, however, is not true. The "Facility Fee" of approximately $6,800,000 annually is used for operating shortfalls, capital projects, and repayment of debt obligations.
Of the approximate $20,400,000O in Facility Fees collected over the past three years only 39% or $8,000,000 was budgeted for capital projects. Other money for capital projects can come from General Fund transfers, Grants and once in awhile from sporadic operating cash flow.
So what happened over the past three years?
A total of $10,086,000 was spent on what the District termed “capital projects”.
Over 64% of that sum was actually spent on four general operating areas. These categories in our view, are really not capital projects but ongoing purchases, maintenance and repairs or small replacements which are constantly needed. Paving maintenance alone was $500,000.
Maintenance Equipment, rolling stock, tables & chairs (174 items) $3,136,000.
Repairs, maintenance and minor replacements (44 items) $1,705,000
Software and Consultants Studies $1,009,000
Rental Skis and Employee Uniforms $583,000
The remaining $3,652,000 was spent on only five TRUE capital projects:
Incline Creek Restoration $947,000
Recreation Center- new roof and new boiler $762,000
Bathrooms at Incline Beach, Aspen Grove and the
Golf Courses $631,000
New irrigation at the baseball fields $332,000
Design of the Diamond Peak Culvert $268,000
(on going not completed)
Retaining walls and sidewalk pavers $712,000
The Analysis shown above is presented to demonstrate that ONLY A SMALL PORTION OF THE “FACILITY FEE” IS ACTUALLY SPENT ON REAL CAPITAL PROJECTS. The three-year average is only $1,217,000 per year. Only Seventeen Percent (17%). That is not a typo. It’s Only 17%!
SO LET’S GET SERIOUS
This past year, Trustees Wong, Horan and Morris have revealed a tremendous appetite to fund real "capital projects". This Board majority or Blind majority, wanted the following:
Parasol Building (purchase plus improvements) $6,168,000
Dog Park $5,000,000
(based on purchase of old elementary school site)
Diamond Peak Master Plan Expansion $14,551,000
(Steering Committee Report)
Mountain Golf Course Clubhouse $ 2,350,000
“BEACH HOUSE” at Incline Beach $ 3,500,000
Tennis Facility Remodel $ 300,000
Two CRITICAL Infrastructure Projects, which have been delayed for several years and won't find funding under anyone’s pillow are:
Diamond Peak Culvert $5,291,000 Parking Lot & Ski Way Road Paving $3,500,000 to $5,300,000
GULP!
The above estimates range between $40,690,000 to $42,490,000. Based on the past average $1,217,000 of the REC FEE available each year it will take the District about 33 to 35 years to fund these projects. Or longer, as these estimated costs continue to escalate.
We have yet to see the unveiling of the Community Services Master Plan, which we can assure you, will propose a basket of additional "goodies" and no doubt require BIG MONEY to fund them. Can't wait to see that list.
Luckily, the snowfall in 2015 and 2016 provided good ski conditions and Diamond Peak generated positive cash flow resulting in approximately $4,515,000 in excess reserves. Those reserves will be used for the Culvert and Parking Lot. At present, this year, as with several years in the past, poor snow conditions will lead to operating losses.
If anyone believes all of these REAL Capital Projects can be accomplished without raising the “Facility Fee” or borrowing a whole bunch of money must also believe in the Tooth Fairy.
#CapitalProjects
Remember the Tooth Fairy. Go to sleep at night, wake up in the morning and under the pillow is money. Most of us can no longer count on that sort of revenue.
Our annual Recreation Fee and Beach Fee which are collected as standby and service charges have been renamed a singular "Facility Fee". One naturally assumes this Fee is used to maintain and replace the recreational facilities. That, however, is not true. The "Facility Fee" of approximately $6,800,000 annually is used for operating shortfalls, capital projects, and repayment of debt obligations.
Of the approximate $20,400,000O in Facility Fees collected over the past three years only 39% or $8,000,000 was budgeted for capital projects. Other money for capital projects can come from General Fund transfers, Grants and once in awhile from sporadic operating cash flow.
So what happened over the past three years?
A total of $10,086,000 was spent on what the District termed “capital projects”.
Over 64% of that sum was actually spent on four general operating areas. These categories in our view, are really not capital projects but ongoing purchases, maintenance and repairs or small replacements which are constantly needed. Paving maintenance alone was $500,000.
Maintenance Equipment, rolling stock, tables & chairs (174 items) $3,136,000.
Repairs, maintenance and minor replacements (44 items) $1,705,000
Software and Consultants Studies $1,009,000
Rental Skis and Employee Uniforms $583,000
The remaining $3,652,000 was spent on only five TRUE capital projects:
Incline Creek Restoration $947,000
Recreation Center- new roof and new boiler $762,000
Bathrooms at Incline Beach, Aspen Grove and the
Golf Courses $631,000
New irrigation at the baseball fields $332,000
Design of the Diamond Peak Culvert $268,000
(on going not completed)
Retaining walls and sidewalk pavers $712,000
The Analysis shown above is presented to demonstrate that ONLY A SMALL PORTION OF THE “FACILITY FEE” IS ACTUALLY SPENT ON REAL CAPITAL PROJECTS. The three-year average is only $1,217,000 per year. Only Seventeen Percent (17%). That is not a typo. It’s Only 17%!
SO LET’S GET SERIOUS
This past year, Trustees Wong, Horan and Morris have revealed a tremendous appetite to fund real "capital projects". This Board majority or Blind majority, wanted the following:
Parasol Building (purchase plus improvements) $6,168,000
Dog Park $5,000,000
(based on purchase of old elementary school site)
Diamond Peak Master Plan Expansion $14,551,000
(Steering Committee Report)
Mountain Golf Course Clubhouse $ 2,350,000
“BEACH HOUSE” at Incline Beach $ 3,500,000
Tennis Facility Remodel $ 300,000
Two CRITICAL Infrastructure Projects, which have been delayed for several years and won't find funding under anyone’s pillow are:
Diamond Peak Culvert $5,291,000 Parking Lot & Ski Way Road Paving $3,500,000 to $5,300,000
GULP!
The above estimates range between $40,690,000 to $42,490,000. Based on the past average $1,217,000 of the REC FEE available each year it will take the District about 33 to 35 years to fund these projects. Or longer, as these estimated costs continue to escalate.
We have yet to see the unveiling of the Community Services Master Plan, which we can assure you, will propose a basket of additional "goodies" and no doubt require BIG MONEY to fund them. Can't wait to see that list.
Luckily, the snowfall in 2015 and 2016 provided good ski conditions and Diamond Peak generated positive cash flow resulting in approximately $4,515,000 in excess reserves. Those reserves will be used for the Culvert and Parking Lot. At present, this year, as with several years in the past, poor snow conditions will lead to operating losses.
If anyone believes all of these REAL Capital Projects can be accomplished without raising the “Facility Fee” or borrowing a whole bunch of money must also believe in the Tooth Fairy.
#CapitalProjects
Feb 17, 2018 9:13:42am
Our Village Voice updated their status.
Incline Beach House – No longer in the District’s Proposed 5 Year Capital Plan
Here one year and gone the next. We are confused, trying to keep score. Although the new Incline Beach House was scheduled to be completed this upcoming fiscal year, the District’s proposed 5 year capital plan has eliminated it COMPLETELY . It joins the disappearance or further delay of the Dog Park, the Mountain Course Clubhouse, the Tennis Center and other improvements that our Staff or Board always fails to discuss when they bring forth a new Plan. All you will see are Staff’s requests and budgets for more new stuff.
Back in 2014, when Pinkerton arrived, he obtained authorization to conduct a $50,000 beach survey providing a number of options for beach improvements and asking our community what they wanted. The primary answer was Rest and Relaxation and a solution for the overwhelming summer overcrowding and lack of parking. About half of the respondents thought the existing restrooms and food service building should be upgraded.
Over several years, $1,600,000 was collected for reserves to construct a new Beach building.
In 2016 and 2017, the Board authorized a $300,000 budget for design work. A new preliminary plan was presented which massively increased the size and scope of the building, and the cost estimates doubled to $3,221,000. At the same time, the $1,600,000 set aside in reserves was raided to cover an explosion in operating expenses. These annual expenses increased from a six year average of $1,100,000 (2010 through 2015) to $1,730,000 for the fiscal year 2018 Budget. Last year, parcels owners saw their annual Beach Fee raised by 25% to help offset about $200,000 of new annual expenses.
Just last year, with reserves drained down and estimated costs of the new building doubling, the Board majority approved a five year plan which required $3,000,000 in bonds to finance most of the new building costs . Suddenly, over the last 8 months, Staff discovered that leaks had developed at the Burnt Cedar Beach pool piping requiring $450,000 of new funding in addition to the $125,000 already budgeted for resurfacting. This pool project will further reduce the Beach Fund excess reserves to approximately $850,000 after the project is completed. Borrowing $3,000,000 would have required another $350,000 in annual debt service payments and Beach Fees would have to be increased again. There apparently was no stomach for another bump.
The Incline Beach House will now become a distant memory as it has been removed from the proposed five year capital plan.
On a side note, of the $350,000 which had been budgeted for the survey and design, $180,000 was spent and $170,000 apparently has either been spent to continue the design or repurposed for some other project. We have requested information on this matter.
So here was the trade off. The new 5 year capital plan keeps $3,494,000 to spend on the Diamond Peak Master Plan. In exchange for prioritizing the use of our funds on Summer
Amusements at Diamond Peak, the new building at Incline Beach is off the table. Talk about bad planning…
#Rec #CapitalProjects
Here one year and gone the next. We are confused, trying to keep score. Although the new Incline Beach House was scheduled to be completed this upcoming fiscal year, the District’s proposed 5 year capital plan has eliminated it COMPLETELY . It joins the disappearance or further delay of the Dog Park, the Mountain Course Clubhouse, the Tennis Center and other improvements that our Staff or Board always fails to discuss when they bring forth a new Plan. All you will see are Staff’s requests and budgets for more new stuff.
Back in 2014, when Pinkerton arrived, he obtained authorization to conduct a $50,000 beach survey providing a number of options for beach improvements and asking our community what they wanted. The primary answer was Rest and Relaxation and a solution for the overwhelming summer overcrowding and lack of parking. About half of the respondents thought the existing restrooms and food service building should be upgraded.
Over several years, $1,600,000 was collected for reserves to construct a new Beach building.
In 2016 and 2017, the Board authorized a $300,000 budget for design work. A new preliminary plan was presented which massively increased the size and scope of the building, and the cost estimates doubled to $3,221,000. At the same time, the $1,600,000 set aside in reserves was raided to cover an explosion in operating expenses. These annual expenses increased from a six year average of $1,100,000 (2010 through 2015) to $1,730,000 for the fiscal year 2018 Budget. Last year, parcels owners saw their annual Beach Fee raised by 25% to help offset about $200,000 of new annual expenses.
Just last year, with reserves drained down and estimated costs of the new building doubling, the Board majority approved a five year plan which required $3,000,000 in bonds to finance most of the new building costs . Suddenly, over the last 8 months, Staff discovered that leaks had developed at the Burnt Cedar Beach pool piping requiring $450,000 of new funding in addition to the $125,000 already budgeted for resurfacting. This pool project will further reduce the Beach Fund excess reserves to approximately $850,000 after the project is completed. Borrowing $3,000,000 would have required another $350,000 in annual debt service payments and Beach Fees would have to be increased again. There apparently was no stomach for another bump.
The Incline Beach House will now become a distant memory as it has been removed from the proposed five year capital plan.
On a side note, of the $350,000 which had been budgeted for the survey and design, $180,000 was spent and $170,000 apparently has either been spent to continue the design or repurposed for some other project. We have requested information on this matter.
So here was the trade off. The new 5 year capital plan keeps $3,494,000 to spend on the Diamond Peak Master Plan. In exchange for prioritizing the use of our funds on Summer
Amusements at Diamond Peak, the new building at Incline Beach is off the table. Talk about bad planning…
#Rec #CapitalProjects
Apr 06, 2018 7:50:51am
ATTENTION ALL GOLFERS
CHAMPIONSHIP GOLF COURSE – NEXT FIVE YEAR PLANNED CAPITAL EXPENDITURES
$3,036,000-
26% ($789,000 ) for improving the Golf Course – half will not be spent until the 5th year
The entire List
MAINTENANCE EQUIPMENT
$1,159,000 on 44 pieces of maintenance equipment and bar carts
THE GOLF COURSE
$111,000 for irrigation improvements spread over the five years.
$391,000 for bunkers, tees and greens with EIGHTYTHREE THREE PERCENT 83% ($325,000) not scheduled until the fifth year.
$287,000 for pavement maintenance of Golf Paths spread over 5 years
THE GRILL
$88,000 for kitchen equipment and new flooring
OTHER ITEMS
$730,000 for Maintenance Building rehab and Wash Pad for equipment (2021)
$150,000 for pavement maintenance on parking lots spread over 5 years
$70,000 for NEW SIGNAGE and demolition of the starter shack at the 10th tee
$50,000 for two new ice makers, a printer and an unknown item at the driving range ???
What is really interesting is that 80 golf carts which are scheduled to be replaced every five years are NOT included in the plan. New carts costing $480,000 were acquired in 2017. Wonder how the carts will be funded four years from now?
Let's hope all the new maintenance equipment will help improve the course conditions.
#Rec #CapitalProjects
CHAMPIONSHIP GOLF COURSE – NEXT FIVE YEAR PLANNED CAPITAL EXPENDITURES
$3,036,000-
26% ($789,000 ) for improving the Golf Course – half will not be spent until the 5th year
The entire List
MAINTENANCE EQUIPMENT
$1,159,000 on 44 pieces of maintenance equipment and bar carts
THE GOLF COURSE
$111,000 for irrigation improvements spread over the five years.
$391,000 for bunkers, tees and greens with EIGHTYTHREE THREE PERCENT 83% ($325,000) not scheduled until the fifth year.
$287,000 for pavement maintenance of Golf Paths spread over 5 years
THE GRILL
$88,000 for kitchen equipment and new flooring
OTHER ITEMS
$730,000 for Maintenance Building rehab and Wash Pad for equipment (2021)
$150,000 for pavement maintenance on parking lots spread over 5 years
$70,000 for NEW SIGNAGE and demolition of the starter shack at the 10th tee
$50,000 for two new ice makers, a printer and an unknown item at the driving range ???
What is really interesting is that 80 golf carts which are scheduled to be replaced every five years are NOT included in the plan. New carts costing $480,000 were acquired in 2017. Wonder how the carts will be funded four years from now?
Let's hope all the new maintenance equipment will help improve the course conditions.
#Rec #CapitalProjects
May 12, 2018 1:17:13pm
IVGID’s Dangerous Planning
Last year the General Manager and three Board members almost pushed through the $6,168,000 purchase of the Parasol Building with the costs for renovation. Through accounting sleight of hand the General Manager devised a five year capital projects plan to demonstrate that the District had the financial resources to accomplish the deal. This was quite a feat as the Plan could not require an increase in the Recreation Facility Fee. It also had to preserve the $3,500,000 required for the Diamond Peak expansion for summer amusements. Through the magic of understating the actual estimated costs of the other planned capital projects in addition to draining the bank accounts, the purchase could be pulled off.
In the fall, when the Parasol debacle failed to meet the legal test for IVGID to actually use the Building for administrative office space, it was decided to take a "pause" after spending at least $75,000 on studies and legal fees.
Then the real numbers for the other large capital projects in the 5 year capital plan began to be revealed and the Board was presented with startling increases in budget estimates.
The new five year capital projects plan just presented in April had budget estimates on five large projects jump from $5,975,000 to $12,177,500. This is a 103% increase of $6,202,500! Interesting how those increases "wiped out" or replaced the planned Parasol purchase. Also, three large Ski maintenance equipment purchases rose from $325,000 to $1,015,000 as the plan now gave the actual cost of the equipment rather than the previously stated and misleading partial lease payments.
Since General Fund money could no longer be used as a source of funding, the Incline Beach Building and the Mountain Clubhouse projects estimated to cost almost $4,000,000 were dropped from the plan. Still not having enough money for the other planned capital projects, the plan now calls for borrowing $4,000,000.
As we have stated before these five year capital project plans are phony documents. They have as much value as counterfeit bills. Project cost estimates are simply made up to back into the amount of available funding sources. As a result, project budgets are massively understated, and rarely approach the actual costs for completing the projects. So who knows what the future holds and the amount of funding the District actually needs to rehabilitate its aging infrastructure. The Budgets are what IVGID staff decides and nothing more.
From where we sit this is a dangerous game to play and as dishonest as it is disappointing.
You can draw your own conclusions.
Below is a list of the sudden increases in large project and equipment budgets over the last 10 months along with the legacy capital projects removed from the new plan:
#Rec #CapitalProjects
Last year the General Manager and three Board members almost pushed through the $6,168,000 purchase of the Parasol Building with the costs for renovation. Through accounting sleight of hand the General Manager devised a five year capital projects plan to demonstrate that the District had the financial resources to accomplish the deal. This was quite a feat as the Plan could not require an increase in the Recreation Facility Fee. It also had to preserve the $3,500,000 required for the Diamond Peak expansion for summer amusements. Through the magic of understating the actual estimated costs of the other planned capital projects in addition to draining the bank accounts, the purchase could be pulled off.
In the fall, when the Parasol debacle failed to meet the legal test for IVGID to actually use the Building for administrative office space, it was decided to take a "pause" after spending at least $75,000 on studies and legal fees.
Then the real numbers for the other large capital projects in the 5 year capital plan began to be revealed and the Board was presented with startling increases in budget estimates.
The new five year capital projects plan just presented in April had budget estimates on five large projects jump from $5,975,000 to $12,177,500. This is a 103% increase of $6,202,500! Interesting how those increases "wiped out" or replaced the planned Parasol purchase. Also, three large Ski maintenance equipment purchases rose from $325,000 to $1,015,000 as the plan now gave the actual cost of the equipment rather than the previously stated and misleading partial lease payments.
Since General Fund money could no longer be used as a source of funding, the Incline Beach Building and the Mountain Clubhouse projects estimated to cost almost $4,000,000 were dropped from the plan. Still not having enough money for the other planned capital projects, the plan now calls for borrowing $4,000,000.
As we have stated before these five year capital project plans are phony documents. They have as much value as counterfeit bills. Project cost estimates are simply made up to back into the amount of available funding sources. As a result, project budgets are massively understated, and rarely approach the actual costs for completing the projects. So who knows what the future holds and the amount of funding the District actually needs to rehabilitate its aging infrastructure. The Budgets are what IVGID staff decides and nothing more.
From where we sit this is a dangerous game to play and as dishonest as it is disappointing.
You can draw your own conclusions.
Below is a list of the sudden increases in large project and equipment budgets over the last 10 months along with the legacy capital projects removed from the new plan:
#Rec #CapitalProjects
May 14, 2018 11:48:29am