Diamond Peak Master Plan Governmental Approvals: No Progress BUT They Have Tripled The Budget

At the Board Meeting on Wednesday, January 24, 2018, a member of the community asked for an update on the Diamond Peak Master Plan.
If you recall, the Plan calls for the addition of several summer amusements as well as the expansion of facilities and activities on the mountain. The Plan consisting of four phases at an estimated cost exceeding $16 million was approved by a previous Board in late 2014 with an original budget of $250,000.

In October 2015, after a review by a citizens steering committee, it was decided to submit the Plan and obtain the required environmental clearances and approvals from the U.S. Forest Service, the Tahoe Regional Planning Agency and Washoe County and an additional $150,000 was added to the budget. Trustee Matthew Dent, who had recently been appointed to the Board, asked District Asset Manager Brad Johnson, if the additional appropriation of $150,000 would be all that is required. Brad's answer was YES. The very next year another $250,000 was added to the 2017 budget without any discussion.
After approvals were obtained, the Board would determine the feasibility and timing of each phase of the Plan.
SO WHERE ARE WE?

Mike Bandelin, Manager of Diamond Peak, stated that the Plan was stuck in the IN Basket at the U.S. Forest Service as the agency had other pressing matters. GM Pinkerton said the agency was short-handed. THAT IS THE PROGRESS AFTER ALMOST 28 MONTHS.

An obvious question should be asked: If there is no progress, then why did a majority of the Board vote to increased the budget by 200% from $250,000 to $750,000 over 28 months with only $49,881 being spent. .

We need to add this Master Plan Budget escalation to the list of “Budget Creeps". Apparently, the District’s standard practice for budgeting capital projects begins with a "low ball" number followed by doing little or nothing year after year, while increasing the amount of the project’s budget annually. Remember the Diamond Peak Culvert with its 404% budget increase and the Parking Lot Paving 214% increase all in five years. Just wait for the new numbers on accomplishing Phase II of the Effluent Pipeline!
#Rec #MasterPlans

BREAKING NEWS – US Forest Service Declines IVGID’s request for free Federal Land

In April of 2018, IVGID Staff requested 12 parcels of US Forest Land be transferred to IVGID under the proposed Washoe County Economic Development and Conservation Act. Seven of these whole or partial parcels are currently being leased by IVGID for Diamond Peak operations under a Special Use Permit for Alpine and Nordic skiing. Three of the remaining parcels are on the Championship Golf Course; one parcel is across from the High School and one parcel is next to Pet Network. The Washoe Bill, which is in draft form, requires approval by the US Congress.
We recently reported that the acreage IVGID requires for the planning and implementation of the Diamond Peak Master Plan would not be transferred to IVGID as the Washoe Indian Tribe, according to Washoe County, had ancestral rights to the land. This was recently confirmed.

On Tuesday, August 14th representatives from the County, the Forest Service, the Washoe Indian Tribe and IVGID met to discuss the disposition of these parcels. According to the County, IVGID’s request for transfer of ALL of these parcels was denied as IVGID failed to meet all five of the principles required for transfer.

First and foremost was the Washoe Tribes cultural recording on the US Forest land IVGID is currently leasing. As a consequence, with the consent of the Washoe Tribe, these parcels will remain with the US Forest Service and will be removed from the Bill. In order for IVGID to proceed with the permitting and approvals for the Diamond Peak Master Plan, IVGID will now have to negotiate a deal with the Forest Service to expand their Special Use Permit to include provisions for the contemplated Mountain Coaster, Zip Lines, Canopy Tours and other year round activities. An Environmental Impact Statement will also be required. It will be interesting to see what input the Washoe Indian Tribe may have regarding these new intrusions on their ancestral land.

As it currently stands, IVGID’s current request for the remaining five parcels conflict with the US Forest Service principles for transfer. Among many issues, IVGID could not demonstrate that the transfer would be a cost savings for US taxpayers and the intended use would conform with all the land use deed restrictions on these parcels. IVGID’s next step is to provide the County and the Forest Service with a more detailed plan on the “USE” for these parcels. Until then, this land will not be part of the Bill.

As citizens, we can only hope that our Board and our community will have greater knowledge and play a more active role in any US Forest Service negotiations and proposed Washoe County land transfers. After all, IVGID is a local government and all its actions and decisions should not be hidden behind closed doors!

Written by Cliff Dobler & Linda Newman
#Rec #MasterPlans

Over the past three years, below are the projects IVGID management would like to take on. See below which IVGID candidates have supported each project.

Chairman Wong also believes there is funding for an Ice Rink. This funding of approximately $500,000 was raised 15-20 years ago when Bill Zink, a former resident, was to be the major donor. The asperation fell apart. The Scientific Survey of residents presented in February 2018, indicated a lack of support for an Ice Rink. We have no idea of the cost nor location of an Ice Rink.
Correction on chart below: Diamond Peak Master Plan amusements should be $16,400,000 instead of $14,500,000 (page 55 of the plan dated 8/15) bringing the total to $53,215,000
#MasterPlans

WE HAVE A REVISION
On September 9, 2018 we did a report entitled "IVGID's latest Absurdity: The Community Service Master Plan". In that report we stated that a presentation was given to the Board of Trustees in July. This was an incorrect statement. Actually the presentation was given to citizens on August 6, 2018 and consisted of 18 pages and was limited to Parks and the Recreation Center. The Plan provided to the Board on July 24, 2018 was a 121 page document and addressed additional venues. All other information posted is correct.
#MasterPlans

Community Services Master Plan – Estimated Costs of all new projects recommended by consultants.

Below is a list of ALL projects in five Master Plan reports which constitutes the entire Master Plan for all of our recreational venues. Recently IVGID management released a plan which only addressed Parks and the Recreation Center and three "opportunity sites" for purchase. The total of all projects is a staggering $63,673,000.

The approved FIVE year capital spending plan for 2019 to 2023 consists of $26 million dollars in spending. The two largest projects are over $9 million and consist of completing the Culvert and the Paving and Parking Reconfiguration both at Diamond Peak . Two emergencies rehab projects, the pool at Burnt Cedar Beach and the Maintenance Building at the Championship Golf Course are planned ito be done.

The only project which was listed in the Master Plans is a rehab of the Tennis Center.

So we are set for the next five years and any projects in the Master Plans will have to wait until 2024, unless borrowing money is in the cards.
#MasterPlans

IVGID's Latest ABSURDITY: The Community Services Master Plan

In 2016, the General Manager decided it was important to update the District’s 15 year old Community Services Master Plan ("Plan"). He hauled in the consultants and the Board approved a $215,000 contract. The consultants’ first objective was to determine what our community wanted. The GM provided a WISH list of all the new and expanded facilities and services he wanted and incorporated these “goodies” into a $48,000 Survey conducted by the new consultants. 3,134 residents were contacted and 838 responded (26.7%).

Well, the results were not quite what IVGID had hoped for. Here are the key results:

A. Funding priorities: 68% of the respondents said "take better care of what we have and improve the condition and appeal of our recreation facilities and parks". NO NEW STUFF!

B. 58% of respondents were willing to "chip in" an extra $50 per year in annual Recreation Fees, but no more. This would generate about $400,000 per year and enable the financing of approximately $4,000,000 of new or expanded facilities and services.

C. 75% did not want to attract new visitors and promote tourism.

D. The majority of respondents supported more trails, a dedicated dog park, bocce ball courts and a warm water pool.

E. There was insignificant support for a Field house, indoor tennis courts, an additional gymnasium and skate board park expansion.

F. Since the question was not asked, it is unknown what support, if any, may exist for a new field to accommodate soccer and lacrosse.

The survey was completed in August of 2017 although IVGID kept the results under "wraps" until February of 2018 when many of our residents are away. The survey data was presented by the consultant to the Board. Only one Trustee asked a question. Trustee Morris: "Was the response by citizens considered good?" The answer was "Yes".

At this stage of the game, one would think, based on the survey results of what citizens wanted and did not want, that the Board might provide some direction to Staff to taper down the size of the goodie bag and come up with a reasonable plan. Not IVGID's style.

In July of 2018 a Plan with a price tag ranging from $36.775,000 to $39,875,000 was presented to the Board. This Plan can only be described as ABSURD. Keep in mind this is only for Parks and the Recreation Center.

So here we go with the plan:

New Land Parcels

The Plan calls for the potential acquisition of three land parcels called "opportunity sites" to put in a new field and a dog park, which can also be situated on existing IVGID owned land. Costs range from $350,000 for fields at the High School to $7,600,000 for elaborate schemes at the old Elementary School. IVGID provided options for each land parcel and if all parcels were acquired the average for the suggested options would be $10,940,000. None of these additional parcels are actually necessary. We could lease the High School site and construct a new field at an estimated cost of only $350,000. And, ALL items that citizens actually want could be accommodated on the existing IVGID owned land from Hwy 28 south down to the Beaches. This is a large area with several pockets of unused land.

The Plan’s Proposals for Development on IVGID's property:
IVGID has tossed in $2,600,000 to upgrade Village Green with pavilions, "adventure play," a boardwalk, picnic areas, seating areas and other "amenities".
There is another $2,700,000 to put the Dog Park next to the skate board park. Costs significantly increase when you need a picnic pavilion, parking, restrooms and other "amenities".
The plan incorporates a field house which the citizens do not want. But, who cares, it will only cost $2,250,000.

NOW the absolute STUNNER is the proposed expansion of the Recreation Center. Our guess is double the size. The Cost: $19,625,000. Why? Because we need a warm water pool? May as well add the extra gymnasium which the citizens don't want and expand everything else. And while we're at it, add an entire new wing for IVGID administrative offices. Of course, the offices could not be built there because of the land use restriction (remember the Parasol debacle when Trustees Wong, Horan and Morris continued to pursue the $5.5 million purchase despite the fact that the land use restrictions did not permit its use for administrative offices). But what the hell. IVGID violates other laws without any consequences so breaking a contract is no big deal.

So how much and why?

Add all this up, throw out the two unnecessary "opportunity sites" and keep the high school, and for the grand sum of $27,525,000 our citizens can pay and pay and pay for everything they don’t want.
Remember, 58% of our citizens who responded to the survey said they would finance an extra $50 per year for a total of $400,000 per year. Our annual Rec Fees to support this PLAN would increase by at least $500 per year which only 3% of the citizens surveyed said they would pay. "Houston we have a problem here.” Unless of course IVGID can ask the 3% to finance the Plan.

At the July meeting, Chair Wong asked the consultant presenting the plan: "In your expert opinion, how far off of the mark do you think we really are?" The consultant replied: "It's really about just that small delta, so, direction or functions, but it could function better. It’s serving the community that you have. But it's really the improvements to really take it to the next level." What?

Wong's response: "So in my mind what I'm hearing is really it just comes down to, what do we want as a community and what do we want to fund?" The consultant: "Yes."

TRANSLATION: The Consultant said that our existing facilities and services are “right-sized” for our community. However, the Plan provides the opportunity to “upscale” everything depending upon what you want to pay.

Was Wong asleep when the survey results were presented back in February? The results clearly stated what citizens wanted and how much they were willing to pay.

IVGID will now perform in "community re-engagement." In other words, IVGID will use the Consultants, Staff and Social Media to SELL the Community on the Plan. Remember the Diamond Peak Master Plan when hundreds of citizens opposed the YEAR-ROUND Amusements and the $16.4 million price tag? The GM created a 13 member Steering Committee and after 9 members gave that Plan a thumbs up, the Board budgeted millions of dollars for the Plan’s permitting and implementation. History suggests we can expect more of the same. Just check out the inviting story boards from the last Community Services Master Plan Presentation given at the Chateau where not a single dollar amount was attached to any project.

Since the power to spend is controlled by a three person Board majority (Wong, Horan, Morris) who not only don’t want to hear what you have to say at public meetings or in your written correspondence, they also don’t want to read the results of your responses to surveys they have used your money to conduct. Apparently, they believe that GM Pinkerton knows best and their next step is to allow him to convince our residents to agree with the plan and do the same.

For your reference, the Parks and Recreation Center already consumes 45% or $2,700,000 of the annual Rec Fee.

Yes, we’ve been a bit snarky –but the facts are the facts and the bottom line is still the same:

How do you want your money spent? And Who Can You Trust To Responsibly Spend It?
#MasterPlans

WHAT HAPPENED to the DIAMOND PEAK MASTER PLAN EXPANSION ?

We thought this was a good time to bring everyone up-to-date on the District’s Diamond Peak Master Plan expansion to include all sorts of amusements for tourists to use during the summer and winter months that according to our paid consultants would provide IVGID with buckets full of money.

Back in 2014, after several years of drought conditions the skiing at Diamond Peak was not good and according to GM Pinkerton, global warming was here to stay and it was extremely necessary for us to join the trend of other Ski resorts by seeking other revenue sources to stay alive.

The SE Group consultants were engaged to come up with a plan for new activities and the numbers began to fly off the page dripping with future profits. In late 2014 a preview of the SE Plan was brought to the Board of Trustees and for the mere sum of $18,000,000 we could be in a new business and have a new $6.5 million Snowflake Lodge. Although the Board was aware that the Community Services Fund was out of reserves, our Trustees allowed GM Pinkerton to select 13 members of our community to serve on his Steering Committee to review the SE Plan and come back with some recommendations for its phasing.

Diamond Peak is located on three parcels: 367 acres are owned by IVGID and the remaining 361 acres are on two parcels leased from the US Forest Service under a Special Use Permit which expires on 12/31/2023. IVGID pays the Forest Service annual rent based on a percentage of sales. The current Permit limits the use of the leased land to Alpine and Nordic skiing and does not provide for any other activities.

Since big plans often require big imaginations, an additional 452 acres of Forest Service land called the "Backside" was also added to the plan for future expansion of the ski area. IVGID does not hold any leases on that property nor is there any indication that the Forest Service has an interest in leasing that land.

During the Steering Committee deliberations in early 2015, the majority of members decided that the Alpine Coaster and the Zip Lines should be relocated onto the leased Forest Service land. They felt that locating these amusements on the IVGID land created too much congestion. With the magic of a pencil and an eraser the costs for the project was dropped from $18,000,000 to $14,500,000. Most of these “savings” relied upon reducing the multi-millions of dollars envisioned for the new Snowflake Lodge.

Over the objections of more than 150 citizens who signed a petition opposing the Diamond Peak Master Plan and others who called for an independent survey of all Parcel Owners, in the summer of 2015, the Board of Trustees accepted the Steering Committee recommendations. These recommendations included a five-phased plan with Phases 1a and 1b (the Coaster, Zip Lines, Canopy Tours and other stuff) being a top priority. Staff was authorized to proceed with the required Environmental Clearances and Approvals from the TRPA, US Forest Service and Washoe County. They were also authorized to seek concurrent review of Phase 1a by TRPA and Washoe County to 'fast track" permits in order to begin construction in 2016. The Board approved Budget for these required clearances, approvals and permits started at $250,000 in 2015 and have rapidly crept up to $750,000. Based upon the records currently available, only $67,000 has been spent so far.

THEN WHAT –

NOTHING FOR THREE YEARS except record snowfalls brought skiers up in droves and revenues at Diamond Peak increased substantially. These revenues miraculously came at the right time as the Incline Creek culvert needed replacement and the estimated costs for completing this legacy project doubled over what was budgeted two years earlier. The extra $5,000,000 in revenues came in and will go out pretty quick. We will sit on our hands and see what Global warming may bring this winter.

SO WHAT'S GOING ON?

About six months ago, GM Pinkerton was asked about the status of the Diamond Peak Master Plan. He stated that the District’s application was stuck in the US Forest Service’s overflowing in-basket and no action had taken place. This was a bit hard for us to believe so we did some research.

HERE’S OUR TAKE

From reviewing the Forest Service Land Use Permit it is quite clear that the two parcels leased to IVGID can only be used for Alpine and Nordic skiing. A perusal of the Forest Service handbook suggests that under the current lease, this land cannot be used for an alpine coaster and zip lines. We assume that the Forest Service has conveyed this to IVGID staff but nothing to the public. Thus there is not much to talk about.

In late 2016 Washoe County decided to ask Nevada's U.S. congressional delegation to sponsor a bill whereby certain departments of the US government would release, FOR FREE, various land parcels to the County for economic development and conservation and, in turn, certain municipalities would receive them. IVGID requested the County include in the bill the three land parcels owed by the Forest Service and needed for the master plan. Immediately the County eliminated the "backside parcel' because UNR wanted it and then we learned in May, 2018 , through the newspaper, that the Washoe Indian Tribe wanted the remaining two Forest Service land parcels (which are leased to IVGID) , claiming their ancestral rights to the land. Nothing came to the Board of Trustees or the public about any of attempt to obtain this "Free Land". Recently we learned the County told IVGID that the two parcels would be for the Indian Tribe. IVGID came away empty handed. Pinkerton and Wong are now running around trying to negotiate some "deal" with the Indian Tribe without any public hearing to understand the COSTS of the deal.

IVGID IS NOT A DEVELOPER

All in all after many years of experience in real estate development, the land on which you would like to develop something should be tied down before plans are initiated. IVGID's approach seems to rest upon spending money on initiating a plan and then figuring out how to get the land. Backwards? Probably.

After many years as Incline Village residents, there continues to be another inversion of proper community planning. We refer specifically to asking the entire Community for their priorities and keeping the full Board and our citizens in the information loop before prematurely initiating and furthering these GRAND PLANS.

DIAMOND PEAK MASTER PLAN GOING ANYWHERE OR JUST COCKTAIL TALK?

$750,000 and $3,500,000 of public money remains stashed away for the first two "fast track" phases of the Master Plan and is now predicted to blossom sometime in the 2020-2021 fiscal year. . Anyone for holding their breath.

How about a true Board and Citizen review with complete and accurate regulatory and financial information to determine if there is any real hope or actual community demand for Phase 1a and 1b of the Diamond Peak Master Plan?

Just asking. Thanks for reading!
#MasterPlans

Oct. 1, 2018
The Dog Park Runaround

In the Draft Community Services Master Plan, IVGID staff made sure that the location of a dedicated dog park will be difficult if not impossible for citizens to decide upon or obtain. The consultants suggested two very expensive "opportunity sites". The first is the old elementary school parcel owned by the Washoe County School District which is estimated to cost over 7 million dollars. The second is the U. S. Forest Service land east of the high school with an estimated cost of 3.4 million dollars. IVGID cannot confirm that either site is actually offered for sale let alone having a chance of being acquired. The third site is at Incline Park adjacent to the skate park. This site actually makes sense because IVGID owns the land. However, IVGID indicated that this site's use as a Dog Park would require relocating the Disc Golf Course.

In order to ensure that nothing will actually be done, IVGID apparently decided to offer two options that were non-starters beginning with their outrageous price tags. The third option appears as an afterthought with its own set of hurdles. The likelihood that a majority will reach consensus on one site is remote. If either of the two opportunity sites could possibly be agreed upon, IVGID cannot provide any assurances that either site could be acquired. We see this potential Dog Park as way, way out in the distant future as IVGID keeps stumbling around.
No need to wonder why the Village Green has been a temporary location for the Dog Park over the last 18 years.
Ignoring our community’s priorities and coming up with unrealistic proposals continues IVGID’s Dog Park runaround.
#Rec #MasterPlans

Why is a $7,500,000 Administration Building included in the Community Services Master Plan?

The Community Services Master Plan is being presented to the residents (and anyone else) on October 10, 2018.

Included in the plan is a building addition to the Recreation Center to relocate the administrative staff from the building located at 893 Southwood Blvd.

This is ridiculous.

First of all, when the BOT hired Design Workshop to develop the Master Plan (which will cost over $200,000), the BOT did not authorize the inclusion of a Governmental administrative office wing to the Rec Center. Why is it in the Master Plan?

The proposed wing is estimated to cost $7,500,000 and apparently IVGID management wants residents to pick up the tab by using the annual Rec Fee rather than from General Fund tax revenues. The tax revenues for fiscal 2019 are $4.6 million and as property values rise more tax revenue will be collected which, in turn, should be used to pay for a new building. What do you think? The 2019 budget indicates General Fund expenses will have increased by $787,000 or 21% above 2017 levels gobbling up a large portion of tax revenue increases. How about slowing down that spending spree.

Remember the Parasol fiasco when it was determined that IVGID's administrative operations could not occupy the office building because of the 1977 restrictive covenant placed on the property. Stated clearly from the property's CC&R: "The Property shall be used ONLY for park and recreational and related purposes and for no other purposes."

Do you think administrative offices for the government fits the description ?

When the property's restrictive covenant expires in November, 2027 then IVGID should consider a new office building using General Fund revenues.

So, here we go again. The BOT approves one thing, the staff ignores the BOT and does whatever it wants. The BOT, as currently structured with an iron clad majority of spenders, needs a change. We have runaway government.

Look for our upcoming post called the "Incline Beach Blues" which draws attention to the ballooning increases in operating expenses.
#MasterPlans

The Incline Beaches Blues – Future plans

We thought an update on plans for the Beaches would be appropriate, after an incomplete Master Plan presentation by IVGID was presented on October 10, 2018. We expected there would be limited discussion on the Beaches.
We have provided below the current status using IVGID’s own numbers.

1) 2019 Budgeted Operating Revenues and Expenses
Revenues increases will always be limited because most visits are from Picture Passes and Punch Cards. Food and beverage sales and rentals could increase but will only have a minor impact. Revenues from outside sources are estimated at $1.4 million for the 2019 fiscal year.
Since 2014, however, operating expenses have almost doubled and now are a little shy of $2 million for the 2019 fiscal year.
The 2019 Budget has revenues increasing by only $35,000 above 2018 but expenses are budgeted to increase by over $350,000.
The food concessions were taken over by IVGID and it appears that may have been a bad economic decision. No more revenues but lots more expenses.

2) Annual Beach Fees from parcel owners
The Beach Fee was increased by 25% last fiscal year presumably to begin gathering an extra $200,000 annually for the new enhancements recommended in the 2016 Master Plan and approved by the BOT. That only lasted one year and the $200,000 is now being diverted to cover increased operating expenses. Almost $1million is collected annually from The Beach Fee.

3) Capital Projects planned for the next five years
The five year capital plan approved by the BOT and filed with the State call for an average of about $326,000 per year.
None of the projects below were included in the 2016 Master Plan and are for ongoing Maintenance and Replacements of existing facilities:
The Burnt Cedar Pool rehab $575,000
Paving Maintenance $216,500
Playground Equipment $230,000
Retaining walls $220,000
Ski Beach Bridge Replacement $120,000
Furnishing & Kitchen Equipment $100,500
Other replacements $171,000
Total $1,633,000
We bet the cost of the Burnt Cedar Pool Rehab will double.

4) The Beaches 2016 Master Plan
Was approved by the BOT in February 2016 and has 13 projects which are now estimated at $6,500,000. The largest project is replacing the Concession and Restroom building at Incline Beach. Proposed projects are summarized below.

5) Incline Beach – New Concessions and Restroom Building Stalled
The BOT awarded a design contract in May, 2016. IVGID spent about $125,000 and then were told the cost estimate was $1,000,000 higher than the $2,000,000 recommended in the 2016 Master Plan. The design contract has been cancelled or put on ice. Right out of the gate there is 50% increase in estimated costs before we even start. The design had too much building area. In the 2017 budget the building was planned for 2018 completion.

6) The Beach Fund Reserves
The Beach Fund reserve balance at 6/30/2018 is estimated at $1,444,000, of which, only $963,000 is available for new projects.

7) Required Borrowing – Beach Fee must be increased.
In order to accomplish all projects in the 2016 Master Plan, $5,500,000 would have to be borrowed and the excess reserves used. Assuming the borrowing is repaid over 10 years and with expected increases in operating expenses , the Beach Fee would have to be increased by another $100 per year. Only $8 per month if you want the stuff in the 2016 Master Plan.

Why nothing gets done and Master Plans are just eye candy
As we have demonstrated, Almost three years after approving the 2016 Master Plan, and for the next five years, only ongoing maintenance and replacements of existing facilities is planned. The NEW improvements suggested in the 2016 Master Plan are nowhere in sight.

KENDRA WONG AND BRUCE SIMONIAN HAVE TOLD YOU THEY WILL IMPLEMENT THE 2016 MASTER PLAN AND NOT RAISE THE BEACH FEE.
AS ALWAYS THEY ARE OVER PROMISING AND UNDER DELIVERING.
WONG AND PINKERTON HAVE SERIOUSLY UNDERESTIMATED THE COST OF MAINTAINING OUR INFRASTRUCTURE.

There are only three ways to raise funding for the Master Plan:
1. Allow more outsiders on the Beaches and charge like crazy,
2. Raise guest rates out of sight or
3. Price a martini at $20 and hope people love to drink.
None are really feasible. Raising the Beach Fee is the only answer.
#MasterPlans #Rec

Old Elementary School site – Up for sale – a Dog Park or Soccer Fields?

On January 11,2019,. IVGID received a letter from the Washoe County School District that the school site could be acquired for $2,000,000. The appraisal done in 2017 indicated a price of $3,000,000. The school site must be used for a public purpose and IVGID would be responsible for demolishing the existing structures. IVGID must respond by April 30,2019. Apparently, IVGID and the School District have agreed on the price and the School Staff must obtain approval from the School Board of Trustees. Expect some decision from the IVGID Trustees to buy or not to buy in the next 60 days.

The Master Plan has not been approved and must be before a purchase can be made. The Master Plan survey of Parcel Owners indicates that 72% want a dedicated Dog Park. Soccer Fields obtained no support. More Importantly, 68% of Parcel Owners do not want to spend money on new amenities but just take care of the facilities we have. A conflict of interest here. The Dog Park at Village Green has been temporary for 18 years with no action by the IVGID Trustees to find a permanent location.

Not one of the options will provide a dime in revenues and the annual estimated expenses have not been disclosed. Annually we spend $968,000 to operate Village Green, Incline Park and Preston Field. A best estimate would be $300,000 per year which will have to be paid somehow.

If we borrower $8,000,000 to construct one of the options, our annual Recreation Fees will have to be increased by $125 for 10 years to repay the debt. That increase, no doubt, will become permanent.

Alternatively, the Community Services Special Revenue Fund is anticipated to have $6,700,000 of funds in excess of required reserves by the end of June. This amount could be used, but the Diamond Peak Summer Expansion, which nobody wants and has gone nowhere, would have to be pulled off the table. A few more bucks will still need to be found. There will be no money to rehab the Mountain Golf Course Clubhouse.

Citizens most probably will find $8 million hard to swallow so dogs can take a pee or a poop. We have a Board Majority of Big Spenders right now, so let's see what they will do.

Our recommendation is not to allow IVGID to buy the parcel until all Trustees agree on what should go on the site and the required money for the development be set aside and restricted.

#MasterPlans

The Mountain Golf Course Clubhouse – A rushed attempt at a Rehab without an honest accounting of estimated costs and necessary funding.

On August 11, 2018, a fire erupted in a storage room at the Mountain Golf Course Clubhouse. The kitchen and dining area was shut down but golf continued and food and beverage was sold from the pro shop. An insurance claim was made and GM Pinkerton expects a check of between $250,000 and $400,000 will be received. On November 9, 2018, Mr. Pinkerton issued a $41,000 contract to Smith Design Group to produce concept and working drawings on a rehab of the interior, expanding the outside deck to provide more seating and providing better ADA access. The interior renovation would relocate the pro shop downstairs, remove kitchen equipment in favor of a "grab and go" service and convert the upstairs to an office for a Pro and storage area. Upgrading the restrooms was not part of the design. More seating for a "grab and go" Really!

Some Board members knew nothing about the contract because Pinkerton believed issuing the contract was within his authority and Board approval was not required. He has that authority providing there is a budget for the contract. There was no budget. He believes the entire budget for all of the recreational venues is just one big pot of money which he can use for anything if he keeps contracts for purchases or projects less than $50,000. As such, he believes he can cancel or delay any budgeted item and use the money elsewhere. The Board needs to know nothing. We don't see anything anywhere in the Board Policies or Practices giving him that authority. We ask Trustee Peter Morris to show us where to look.

On December 12, 2018, concept drawings were presented to the Board for consideration. Pinkerton's main objective was an urgent but feeble attempt to get the plans out to bid in January, 2019 so construction could commence in the early spring and the building would be open for the start of the golf season in May, 2019. A herculean task which could never be achieved. Pinkerton stated the architects estimate was $900,000 and if $400,000 in insurance proceeds was received, the remaining $500,000 could be obtained by using some of the 2018/2019 Capital Projects Budget for the Mountain Golf Course if certain projects or purchases were cancelled or delayed. Tim Callicrate felt the Board should consider the new construction options in the 2012 and 2014 consultant reports and do both the Clubhouse and Maintenance building at the same time. He felt the insurance proceed should be firmed up first and believes operations for the upcoming season could continue without much disruption. The two consultant reports were part of the Master Plan presented to the Board on July 24, 2018. Has Pinkerton now discarded the reports?

Chairman Wong, in order to push through the rehab, stressed the point that three years ago the Clubhouse replacement was voted as a "priority" and because of that priority Pinkerton's rehab needs to be done. The replacement or rehab was never a priority. She seems to have forgotten that in February 2017, the BOT decided to "Slow" the Clubhouse replacement and only move forward on the Maintenance building electric cart charging upgrade and the Clubhouse ADA compliance. According to the latest five year capital plan only $95,000 is budgeted for the "Slow" plan and not scheduled to be spent until 2022/2023. So the approved Slow plan has been planned to be real, real slow. Amazing how priorities can change. But because of a fire, we now have a "Rush Rush" Clubhouse rehab and no Maintenance Building upgrade.

The Board gave the go ahead to continue with the plan.

After considerable research and public records requests, we found that Pinkerton lied to the Board. The architect's estimate was $1,150,000 not $900,000. The budget for 2018/2019 Capital Projects does not even have $500,000 needed for the rehab. The budget is only $403,263 consisting of $150,300 for new projects and $255,963 for projects carried over and funds appropriated in previous years. The budget includes $110,200 for repairing the Clubhouse roof and painting the exterior which we believe must be done before any rehab is completed. Neither item was in the architect's estimate. Amazingly this month the Board approved $125,000 for a contract and other costs to complete the ADA access at the two golf course bathrooms. So if we start with the $406,000 budget and subtract the three items above plus the unbudgeted $41,000 design contract only $130,000 would be left. That is a far cry from Pinkerton stating he can cancel or delay projects to come up with the $500,000 needed. Based on facts the rehab will be at least $1,200,000 for design and construction not the $900,000 he stated. After deducting $400,000 in insurance proceeds, at least $800,000 is needed not $500,000. A misstatement of 60%. Do we need this lying? If he wanted to proceed with the rehab in this fiscal year he needed to be honest and tell the Board and the Public the total cost estimates and where the $800,000 would actually come from.

So now what is happening? At the February 6th, 2019 meeting, Pinkerton gave a report that the insurance claim was not firmed up and moving forward on the "rush rush" project may be postponed but he is proceeding with getting final plans to the County for review. He now is recommending painting and carpeting the interior and then proceeding with the rehab in the fall. Tim Callicrate again stated that this is nothing more than putting lipstick on a "you know what". That would be a PIG. He wants a debate on the broader approach of new construction recommended by the consultants.

We think this rushed rehab should be stopped immediately. A proper discussion before the public should focus on why the five options for a new Clubhouse and a new maintenance building recommended by the consultants have been completely ignored. A survey of the citizens conducted by the same consultants indicated that a majority want a new clubhouse not an old rehabbed one. What right does Pinkerton have to unilaterally decide to rehab the building and chuck the consultants recommendations overboard?

The Board should also review the reason why the Mountain Golf Course operations have failed to meet the consultants projections of a breakeven by 2018. For this fiscal year a subsidy of $517,000 will be needed from the Recreation Fee assessed to parcel owners. The subsidy was increased by 17% over 2017. WE ARE GOING IN THE WRONG DIRECTION AND THE REASONS SHOULD BE GIVEN before we jump into a rehab.

Within the next week another report on Our Village Voice will review the 2013/2014 Master Plan and what the citizens actually wanted, the continuing dismal operations, the endless increasing subsidy and the fake revenues recorded to boost revenues.
#MasterPlans #Accounting

IVGID's Board latest Priorities for Facility Projects – the Six Year Plan and the Wish List

The Board of Trustees will present and vote on a convoluted set of master plans for recreational venues at the July 17, 2019 Board Meeting. The IVGID staff now refers to the master plans as a "Wish List" and it is quite a list. Trustee Dent requested that before adopting the master plans, Trustees should agree on which projects would be priorities. At the last meeting, a six year priority plan was agreed upon with the caveat that the priorities can always change. A major accomplishment was removing the Diamond Peak Master Plan amusements which have been listed for several years as an ongoing project but were really going nowhere.

The 6 year priority plan will be funded by the extra $9,800,000 generated from Diamond Peak over the past four years and not required for reserves. Good snow, good money. The plan assumes that the annual Rec and Beach Fees will continue to be used to support operations and other ongoing capital purchases and maintenance projects. Our equipment needs for the venues are quite extensive. Paving has been backlogged so several million will be needed to maintain parking lots and golf course cart paths.

The priority plan also assumes $4,850,000 will be borrowed in 2023 for a major renovation on a portion of Skiway (owned by IVGID) and replacement and reconfiguration of the parking lots at Diamond Peak. Approximately 66.6% of the bond payments over the 10 year term will be funded by continuing the payments currently being made on existing bonds which will be fully repaid in 2022/2023. A portion of the Rec Fee will pay for the balance. Annual bond payments will be about $600,000.

The agreed upon priorities listed below are by project, the fiscal year when started and the estimated costs :

Mountain Golf Course Clubhouse Rehab – Construction in 2020 – $1,600,000

Mountain Golf Course gas tanks removal and replacement – Construction in 2020 – $200,000

NEW Incline Beach Building – Design in 2020 and construction in 2021 – $3,000,000

Tennis Facility Rehab – Design in 2020 and construction in 2021 – $1,200,000

NEW seasonal Ice Rink – Design in 2020 and construction in 2021 – funded by the Incline Ice Foundation

Championship Golf Course Maintenance Bldg – Construction in 2021 – $700,000

NEW (hopefully) Burnt Cedar Pool – Design in 2021 and construction in 2022 – $2,200,000

NEW Dog Park – Design in 2021 and construction in 2022 – $500,000 ( anticipate donor for $2,900,000)

Mountain Golf Course Maintenance Building Rehab – Construction in 2024 – $600,000

We would prefer if the Board would actually commit the $9,800,000 for these projects and set the money aside. Priorities over the past several years have changed as often as changing a baby's diaper. This commitment would avoid future disruptions in planning. NO GOOD PLANNING CAN OCCUR WHEN PRIORITIES ARE SHUFFLED LIKE A DECK OF CARDS.

The dog park which has been "temporary" at Village Green for almost 20 years is planned to be located on 12 acres across from the High School owned by the US Forest Service. IVGID intends on applying for a Special Use Permit to "conduct community recreation, including a dog park". We do not see this endeavor succeeding since the property was acquired by the United States through the Santini-Burton Act of 1980 which specifically "provided for the acquisition of environmentally sensitive lands in the Lake Tahoe Basin". In other words not to be built upon. We certainly understand the excitement of having a local donor commit $2,900,000 for the dog park, but the 12 acres site has a sensitive stream zone. Our observation is that by chasing this special use permit, the "temporary" dog park will continue at Village Green. We will see what happens.

The IVGID staff is quite concerned that the Burnt Cedar pool remains open during the summer period. The pool would have to be closed for one summer to construct a new pool, therefore the IVGID staff has suggested a very expensive rehab costing as much as a new pool in an attempt to keep the pool open. We do not agree with another rehab of an aged old structure. New is better.

Combining all of the entire Master Plan, the Wish List is 28 projects with estimated costs at between $63,800,000 and $65,000,000. It is rather odd that three of the nine projects listed as priorities are not even on the wish list. The old elementary school site remains as a wish even though IVGID declined to purchase it from the County.

Based on the cost estimates of these 28 projects and assuming there is excellent snow conditions and attendance each winter, the wish list projects may all get done in 36 to 40 years. Our grandchildren may have grandchildren by the time the wish list projects are complete. Seems that this expensive exercise is rather ludicrous when citizens tell the Board not to raise the Rec and Beach Fee by more than $100 per year and then the Board plops a master plan on their lap for over $60,000,000.

Just more razzle dazzle
#MasterPlans

Is IVGID skating on thin ice?

On July 17, 2019, the IVGID Board of Trustees approved a community services master plan for an enormous expansion of recreational facilities of which most will probably never get done. The current Trustees, under control of Ex General Manager Pinkerton, approved everything he wanted without any consideration of what citizens want, capital costs or operating expenses. What popped up as a PRIORITY was an Ice Skating facility. The master plan prepared by Design Workshop and costing over $200,000, did not provide for an Ice Skating Facility nor was it ever mentioned in any previous Board meetings. After two years of study, and a citizen survey indicating a lack of support, one would believe an ice skating rink would be a non starter. Apparently not so.

According to the departed Pinkerton and 3 Board members, this new venue would be a partnership between IVGID and the Incline Ice Foundation and will be located somewhere yet to be determined. The Ice Foundation was formed about 20 years ago with an initial donation of $350,000 from Mr. Bill Zink and now has $550,000 sitting in a dormant bank account. It was originally intended that IVGID or Sierra Nevada College would supply the land but nothing ever got off the ground. IVGID, under former GM Bill Horn's leadership, refused to consider any venture. The Ice Foundation is inactive and may not have any future support from donors. Mr. Zink, who was also a large donor to Sierra Nevada College, left town many years ago.

Since the majority of Trustee's now want an Ice Skating rink, they are willing to waste time and money determining a suitable location, hiring more consultants and deciding if $550,000 is an adequate amount to take on the adventure. We can assure you that without support from tourism, this will become another bottomless pit of operating expenses which will exceed revenues. IVGID will pay the losses.

This Board majority does not seem to remember, care, or understand that an extensive scientific survey of citizens was completed in 2016 and consisted of three main responses:

1) 68% want Funding Priorities focused on taking better care of WHAT WE HAVE and improve the condition and appeal of the recreation facilities and parks.

2) 75% do NOT want to attract visitors and promote tourism.

3) 52% do NOT support an ice skating rink.

While it is always tempting to take "FREE" money, the temptation should not be a prerequisite to ignore the desires of a majority of citizens. If so, why do surveys, why do master plans, and why waste money?.

In 15 months, there is an election for three new Board members. Let's hope we can find better people. So much time and money has been wasted on consultants providing guidance on what should be done, only to be ignored by a majority of the Trustees.
#MasterPlans

Correction on our July 31, 2019 post "Is IVGID skating on thin ice?".

On June 19, 2019, the Board only approved a six year sequencing Project Implementation Plan which included determining the feasibility of an Ice Rink with construction to begin in 2021. At the July 17, 2019 Board meeting the master plan was only discussed and the final Master Plan will be on the agenda for approval at the August 14, 2019 Board Meeting.
#MasterPlans

IVGID’s Community Services Master Plan ( Absent of Common Sense and Logic) was approved, with immediate priorities finally established.

Our Board of Trustees is so confused. It's incredible they show up for a meeting so unprepared. We have indicated several times, that the mind-boggling list of projects on the Community Services Master Plan is really 147 pages of jumbled up information lacking the most important element, AN ACTUAL PLAN. What was approved at the Board meeting last Wednesday is a wishlist of goodies.

Common Sense and Logic would suggest that if goodies are desired (about $60 million) then four things should be detailed to determine if the goodies are even attainable. This is common practice.

1) A timeline of when each of the projects might be constructed

2) The estimated costs of each project

3) The estimated revenues and expenses of each project

4) The proposed funding sources for each project.

These factors are probably the most important things citizens would like to know since their pocketbooks would certainly be affected. Kendra Wong stated that the financial information was not included because she did not want to "scare the public". Thanks for the transparency. Tim Callicrate, having common sense and logic, did not vote for the plan, but would have, if the above items were included and the other four master plans for ski, tennis, golf, and beaches were combined into one complete plan. Within the 147 pages, only one page was dedicated to the other plans, yet three venues are the largest in the district. Wong would rather just have these four plans referenced.

Now keep in mind that most of the goodies listed in the five plans are not even desired by the public. See the survey results on the website.

Trustee Dent, realizing that the Master Plan would be passed by the other three Trustees, proposed a motion to adopt the plan and designate five immediate priorities so something may actually get done. As a result, on a 4 to 1 vote the plan was adopted and the following priorities were established:

The FIRST PRIORITY is to try and obtain a special use permit from the US Forest Services for a dog park on land directly east of the High School. This land was purchased by the Forest Service under the Santini Burton Act of 1980 and is to be kept as open space because of a stream zone which is environmentally sensitive. Good luck on getting the permit. An environmental impact statement will be required and we will grow much older waiting for an answer. Think about the Diamond Peak Master Plan. That plan was submitted to the Forest Service four years ago and we have been told no action has been taken. Wait until the Sierra Club finds out about this.

The SECOND PRIORITY is to continue the design on a new Incline Beach Building which was canceled two years ago because the building was much too big and there was inadequate funding. The funding will have to occur by adjusting the allocation of money between the Rec Fee and Beach Fee with more going to the Beach Fund.

The THIRD PRIORITY is to continue the design on the Tennis Center rehabilitation. The Trustees, a month ago, accepted a preliminary design to rehab the existing pro shop and add two Bocce Ball courts by removing the tennis practice area. Staff was directed to bring back a contract for final plans. At the next meeting and because of a ridiculous 3 to 2 vote on a budget of $1,285,000 ( no details other than consultants indicating only $450,000 was necessary), the Board wanted to see a small, medium and large design whatever that means. Then at this meeting, before adopting the master plan, the Trustees voted to provide a $123,000 design contract for the Tennis Center for choices of a small, medium or large project, eliminate the two Bocce Ball courts (no expansion available) and leave the tennis practice area in place. Bocce will have to find a new home. Where will the location be? No one knows.

The FOURTH PRIORITY is to provide a timeline to operate the Burnt Cedar pool as options for reconstructing the existing pool or providing a new pool is determined. How about this, the Burnt Cedar pool is not even in the master plan. The consultant engaged to study the project recommended a new pool but our staff created a silly scheme of reconstruction. It seems the majority of the Board is now leaning towards a NEW POOL. There apparently is no major cost difference.

The new FIFTH PRIORITY will be to find a home for the bocce ball courts and provide cost estimates for design and building them. Locations suggested in the Master Plan are Village Green or the northeast side of the Rec Center area .

A new Ice Skating Rink was scratched as a priority.
What becomes really deceptive about the master plan is the eight criteria WHICH CAN BE USED for prioritization of a project. In other words, no criteria is REQUIRED. One criteria is "Offers a high return on investment OR maximize public resources". All of the new projects in the Master Plan, except maybe the Diamond Peak expansion, will not make a dime and will need support from citizens. Another criteria – "Addresses needs associated with growth and increased demand". Interpretation – more tourism. The first will never be considered, the second will always be considered. Thanks to Dent the prioritization is over for a while.

So after spending three years and also spending between $700,000 and $1,000,000 on consultants, we have no plan but instead, a bunch of gibberish about several wishlists not codified into an actual PLAN. It is crystal clear that 68% of the public is not willing to ramp up sizable spending on new projects. We thank Trustee Dent for his work on cornering the Board to address the citizen's priorities since they have been waiting a long, long time.

Unfortunately, Dent's work is not yet done. He now must get the Board to commit the necessary amounts from the $10,000,000 in excess reserves to accomplish these priorities and then begin addressing the deferred maintenance on existing infrastructure. The Board majority of three persons have not been willing to restrict any amount for anything. They want a continued slush fund to do anything they want. Now they have a plan and must follow priorities.

Hopefully, our interim General Manager, Indra Winquest will recommend that the Board amend the Master Plan to include all project costs, estimated operating deficits, source of funding and a timeline for all of the projects on the wishlist and consolidate the five plans into one. Wong will say no but so what. Transparency is not her GIG.
#MasterPlans