Ordinance 7
MY VIEW AND CONCERN ABOUT OVERCROWDING AT INCLINE BEACHES.
By: Clifford F. Dobler
October 9, 2017
Much Discussion and debate has been held regarding Ordinance 7 and the ever increasing number of people using beach facilities. This analysis may help you understand the various factors which affect beach use.
First and foremost there are 7,756 parcels or dwelling units that are entitled to obtain a maximum of 5 Picture passes or punch cards in any combination for payment of the annual Rec Fee. Each parcel owner can chose to buy an unlimited number of additional punch cards.
The Picture passes provide unlimited use and can be obtained by anyone who is one of the 32 different relatives listed on the Family Tree of the parcel owner. The punch cards can be given to anyone the parcel owner chooses to give it to.
The latest data provided by Steve Pinkerton's GM Corner in the Bonanza on August 3, 2017 is there are 38,780 Picture Passes or Punch Cards which are required to be issued to parcel owners, of which 20,417 pictures passes and 10,326 punch cards have been issued so far this year. . There remains 8,037 cards which are available to be issued but have not been claimed.
All of these cards are void each May 1, and must be renewed each subsequent year.
Beginning in 2013, the district began issuing White Forms and Access Tickets to guests or renters who are staying in parcel owners homes. The White Forms were eliminated this year.
The official "Beach season" consists of 140 days beginning two weeks prior to Memorial day and ends two weeks after Labor Day. After that the gates are not manned and access is on a walk in basis to anyone.
This is what we know about usage
In 2016, 111,711 beach visits were from using the 20,417 Pictures Passes issued. Based on the 140 day season, each resident, on average, used the Beaches once every 39 days or only 5.5 times per season
In 2016 there were 77.750 beach visits from Guests of Residents, and their entry was either paid by using a punch card or paid with cash. It is unknown the exact breakdown between cash or punch cards as IVGID will not release that information. Our best guest is approximately 40,000 guests entries are by using punch cards and the remaining 37,000 guests are paying in cash at the gate.
The last group of people entering the beaches are guests of a parcel owner who rents their property on a short term basis. The property owner or rental agent obtains Guest Access Tickets for their guests . A owner can obtain an unlimited number of Guest Access Tickets normally for no longer than two weeks and are used for daily use. IVGID staff attempts to control the numbers but it really depends on how many people are using the rental and at best it is not manageable unless a spy ring is developed . In 2016, there was 9,418 people entering the beaches by presenting a Guest Access Ticket.
Adding it all up during the 2016 season 189,281 visits to the beach were made or 1,353 people per day. There are a few additional visits by children under 5 who get in free. We do not have that count. Ten years ago, Beach visits were 155,106 meaning an increase of 22% or 2.2% per year.

SOME FRIGTHING NUMBERS
Now let's say that our demographics change and as older people move out and younger people move in, there may be a desire by residents to visit the beach one extra day per season. That will add another 20,417 people on the beach. What if, because IVGID begins offering more amenities, like the Beach House, rental equipment, more playgrounds and retaining walls to nowhere residents decide to go one additional time. Add another 20,417 visits to the beach. There is no stopping these increases as visits from Picture Passes are unlimited and can be used 1,000 items . By the way, Guests will also tag along and which cannot be limited if they are willing to pay the entry fee..
Now let's remember those 8,037 cards which have not been issued suddenly get issued because people begin to realize they have value, are useful in gaining free beach access, can be given away to one of 32 Family Tree relative, or given away to anyone if it's a punch card. . If each card is used 5.5 times each season, Beach visits could increase by another 40,145 per year .
Within the next 5 to 10 year time period, a safe prediction is visits to the beach will exceed 240,000 per year.
Why do you think Ordiance 7 has not been changed since 1998?. You cannot take away from citizens something you have already given them. The Management, Trustees and Staff have no solution to limiting beach access other than placing limits. This will not work. Many more fruitless discussions will be on the way. Good luck on a wasted endeavor.
#Rec

The DOG PARK remains in NEVER NEVER LAND

An agenda item at last week's IVGID Board meeting had update on the progress of a permanent DOG PARK. This all started back in 2004, a mere 13 years ago. Washoe County at that time, passed rules that all dogs must be on a leash unless in a dog park. IVGID thereafter designated the Village Green to be a Temporary Dog Park. Mr. Dolan , a resident, who attends most board meeting is concerned about health issues by mixing dog usage with children sport activities. He feels a permanent solution must be addressed.
The Staff explained that the perfect dog park requires at least 3 acres plus additional land for parking and restrooms. Only three locations could be considered: the old elementary school owned by Washoe County with six acres, ten acres across from the high school owned by the Forest Service and another parcel of unknown size or which is privately owned.
The Staff indicated the elementary school site would cost about $3,000,000, another $1,000,000 to demolish the building and probably at least $1,000,000 for the park, restroom and parking. Really $5,000,000. Is anyone paying attention.
The Forest Service land involves an act of the US Congress, land swaps and a multiple of other bureauratic agencies. Trustee Dent suggested renting the land but that also involves substantial red tape.
A suggestion was made to use a portion of Diamond Peak. Brad Johnson stated it was not appropriate for social interaction. On the other hand, several dog owners mentioned Diamond Peak is an ideal area for the summer and fall months. It has easy access, adequate parking, restrooms and very little congestion. Ski Beach is used during the winter and early spring so it's a perfect fit.
IVGID has its hands open seeking a non profit or a donor to help with the costs of which, none exist at this time. So there is no location, no plan and no budget but the Board wants the community to "Hang in there" and the Dog Park will be a priority in the new Master Plan to be completed next June. We will see where it ends up in the 2019-2023 capital plan. It's only been a priority for 13 years and has gone nowhere. Similar to the Mountain Golf Course Clubhouse and the Incline Beach House.
The simple solution is Diamond Peak. The land costs nothing. It is not utilized for over half the year so why would we spend $3,000,000 on another piece of land and get involved in a great number of convoluted ideas ending up with a $5,000,000 Dog Park. After all its only money. Would you have better plans for it?
#Rec

The $64 question – Use of the Chateau and Aspen Grove

The December 13, 2017 Board of Trustees Meeting revealed some startling facts on the rental revenues the District actually receives for Wedding and Community Events held at the Chateau and Aspen Grove. The Chateau and Aspen Grove comprise the District’s “Facilities Division” of Community Services.
During Staff’s Facilities Division wrap up for 2017 and the presentation for the Board to approve staff’s proposed 2018 Key Rental Rates, we learned that there were 94 weddings generating $322,741. That’s an average of $3,428 per wedding. And, there were 402 community events that generated $25,797 for an average of $64. That’s right $64 per event.
Staff stated that “The goal is to maximize the use of our venues using revenue from weddings to defray the cost of community events. As the data shows, we successfully struck a balance." Sounds good, but what does the data actually show? The presentation did not disclose any costs or expenses incurred at these venues, only the revenues.
According to the District’s 2017 Audited Financial Report, the costs and expenses to operate the two facilities were $663,000. So, the reported revenues only recovered 52% of the costs and expenses. That seems out of balance to us. Rather than striking a balance, IVGID struck out. And guess who covered the short fall? The citizens, subsidizing these costs and expenses with our annual Recreation Fee.
The revenues from Food and Beverage at these events were also reported but the costs and expenses were buried in the costs and expenses of operating the Championship Golf Course. As if weddings and community events have anything to do with putting a golf ball for a birdie. As a consequence, we cannot determine the actual costs and related expenses of providing food and beverage at the community events.
The entire presentation was a sham and the approval of rental rates ranging from $724 to $7,990 depending upon the day of the week and time of the year the venues are rented is a whitewash. The actual rental rates charged are so heavily discounted they have no relevence. $64 on average to rent the facilities is ridiculous. Trustees Wong, Horan and Morris must feel real good about budgeting our Rec Fee to subsidize another money losing IVGID venture and approving what IVGID is trying and failing to get in rents from their suggested rates.
#Rec

Golf Courses – "The Gift of Giving"

At the Board of Trustee meeting held on December 13, 2017, the Golf Courses pricing for 2018 was approved. The presentation reported the rounds used and average price achieved per round for 2017. No total revenues or expenses were discussed so we gathered the information from the recently released audited financial statements.

Golf fees for 2018 will not change, however, the Play passes are to be discussed later. A Play pass is sold for 10, 20 or unlimited rounds. Play passes are used for half of all resident rounds. It was stated limitations may be placed on when the Play passes can be used. Avid golfers won't be too happy about that.

Championship Golf Course

Rounds for 2017 at the Championship Course were down 8% from 2016. The primary cause was the 3 week delay in opening. There was no information on actual rounds compared to the potential rounds which could have been played. In other words occupancy.
Residents and their guests comprise 69% of the rounds played.
Rounds by residents without play passes have fallen by 24% since 2014 with an average rate increase from $79 to $99. There is a direct correlation – raise rates and get less rounds.
Non residents (tourists) comprise only 24% of the total rounds and pay an average of $126. There was a small decrease in rounds The remaining 7% were for charities, schools and comps.
Revenues which include food, beverage and merchandise sales were $3,542,663, however, expenses and capital costs were $4,872,782. A LOSS OF $1,330,119. To cover the loss all citizens chip in. In order to break even, the price of a round would have to increase by $66. If an attempt is made to recover the shortfall from residents an INCREASE of $119 would be required. Residents would have to pay about $220 per round. Seems impossible to us.
Big concepts are used like "dynamic pricing" and "yield management" which simply mean different rates at different times and getting butts seated in golf carts. Earlier starting times will be implemented on the weekends to attempt an increase in rounds.
We do not like the idea of eliminating two days of maintenance a month. Any avid golfer knows the course conditions were extremely poor this last season and deferred maintenance continues to increase. Scott Hill, a member of the IVGC golf club, spoke about the course requiring additional dollars for maintenance because of its poor condition.

Mountain Course

Rounds at the Mountain Course dropped by 16% probably because of a 3 week delay in opening.
Residents and their guests comprise 63% of the rounds played
THERE WAS NO INFORMATION ON HISTORIC AVERAGE RATES. WHY NOT? AFTER ALL THIS WAS A RATE STUDY.
Revenues which include food, beverage and merchandise sales were only $627,986, however, operating expenses and capital costs were $1,123,783. A LOSS of $495,797. To cover the loss all citizens chip in. There were no birdies here.

Opinion

We do not believe the way out of losses is to raise fees which has been the agenda for several years. The expense and cost structure is never publically reviewed. Over the past two years, Trustee Matt Dent and Tim Callicrate requested a zero based budgeting system and got a blockade from the other Trustees. GM Pinkerton said more staff would be needed to prepare such a budget.
We are currently attempting to gather expense data from several other courses in the area. If the Trustees would allow us to take a "deep dive" into the numbers we may come up with some ideas to create better results.
#Rec

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

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

Mounting Losses for Community Programming at the Recreation Center and Parks!!!

The fiscal year 2018 Budget reveals some disturbing numbers which seem to be glossed over as IVGID Staff produces a sea of reports with limited information when seeking Board approvals.

The Community Services Fund receives $5,777,000 of annual Recreation Fees as additional revenue to help support the various venues. Not much is ever discussed regarding three departments: Community Programming (Recreation Center activities), the Parks and the Administration Department. We thought we would provide some insight.

It becomes mindboggling that almost 63% of our annual Recreation Fee is used to subsidize these three small operations. A little over $300,000 per month, month after month or $3,629,000 every year based on the 2018 Budget. This leaves very little money to support the big stuff like Diamond Peak, the Golf Courses, Tennis, the Chateau and Aspen Grove.

The 2018 Budget states these three departments will have expenditures of $4,647,000 although they will only collect charges for services of $811,000. This means that customers using these Facilities only provide 17.5 cents of every dollar needed to operate and maintain these three departments. Your Recreation Fee is covering the shortfall!

Salaries and Benefits are $2,025,000 (44%); Project Maintenance Costs are $1,055,000 (23%); and a catch all called Services and Supplies make up the remaining spending.

We report this in order to shed some light and provide insight on how little of the Recreation Fee is actually devoted to the major venues. According to the 2018 Budget only $2,148,000 is budgeted for Diamond Peak, the Tennis Facility, the Golf Courses and the Chateau/Aspen Grove facilities. These venues are where the real money is needed.

It concerns us that beginning in March of last year in an eight month ordeal the Board majority wanted the Parasol Building for IVGID Office Space and the expansion of Community Programming. Twenty-five new programs from cooking classes to adult languages were suggested producing nothing but requiring our Recreation Fee to fund a $5,500,000 building.

Over the past month, we are seeing the necessary massive infrastructure replacement costs for the Diamond Peak Culvert and repaving the parking lots and Ski Way. We issued a report two weeks ago stating these two projects were estimated at $7,400,000 only to find out this week the Board may consider expanding the parking and Ski Way for safety and traffic circulation which could take the combined costs for both projects up to $10,600,000.

Where are we going with this? If you read our weekly posts, bags of money will be needed within the next five years just to keep existing facilities operating. Certain members of our Board want to expand our Recreational facilities and services. Adding more money losing venues to this District places a heavier burden on our Recreation Fee, higher customer entry fees and service rates, and inevitably, the need to issue Bonds. Remember the Diamond Peak Master Plan, Parasol and the Dog Park. These three alone are estimated to cost $26,500,000.
#Rec #Budget

WATCH OUT!

Community Programming: What is it? What Costs are Recovered ? And the whole razzle dazzle…

At the Wednesday, February 21, 2018 Board Meeting, our Parks and Recreation Director Indra Winquest gave a 26 page presentation titled Community Programming – Service and Cost Recovery Methodology. In an attempt to compare all of the programs and the percentage of costs recovered from user pricing, he created a pyramid diagram. Twenty nine programs were listed with the cost recovery ranging from zero to 100%. The programs that do not recover 100% of the costs require subsidies from our annual Recreation Facility Fee.

There was a very large audience with more than 90 minutes of public comment supporting Community Programming. It was gratifying to see so many community members, from our youth to our seniors, coming out to have their voices heard.

We happen to like Indra quite a bit. He has always been open and professional. We also appreciate the occasional feedback he shares on our Posts. No doubt, Indra loves his job and our community. We support community funding for youth through senior programing as long as there is a solid demand for each program AND complete transparency on the costs our annual Recreation Facility Fees are subsidizing.

Now, we do not know who actually prepared the presentation, which in some respects were incomplete. “Long Range Principal #6 – Communications” states: "Promote transparency in all areas including finance, operations and public meetings." This is an important objective, which unfortunately, missed the mark in being reached.

Let's face it, the Recreation Center, the Parks and the Community Programming revenues are nowhere near recovering costs. Two weeks ago, our post demonstrated that these Departments including Administration operate at a significant loss. Based on the 2018 Budget these losses will chew up about $3,800,000 of the Recreation Fee or 70% of the Fees collected.
So in order to soften the blow and blur the impact, the presentation inferred that Parks and Open Space were part of Community Programming. Yet, when it came to reporting the costs to operate the Parks they were not included. Omitting $1,200,000 is not a small lack of accountability and transparency. And, to include Kayak/Paddleboard storage as a program with a 100% cost recovery when the racks are paid by the Beach Fund and not the Community Services Fund is not comparing apples to apples. One cannot draw any conclusion by only listing the amount of the Rec Fee used for EACH program visit but not listing the number of visits for each program. We could go on but you probably get the point.

Indra made two statements which we think need some more thought:

1) "The visits at the Rec Center include anyone coming to the counter." He did clarify that the increase in visits was due to counting anyone getting a Rec Pass as a visit. Is that really a user visit? Without these visits, did Rec Center usage actually go down?

2) "If we didn't do these programs nobody else would." Recently the Boys and Girls Club came into town providing a host of youth programs. The County just reopened the old library to provide space for senior and other community programs. Our library and other local charities also provide youth through senior programs. Maybe Indra’s statement is not quite true.

Along with the audience, Trustees Dent, Callicrate and Horan saw all sorts of numbers yet knew immediately there were no identified costs. Dent stated that all community programming including the Golf Courses and Diamond Peak should be brought together as one package so everyone can see the extent of all programs and what cost support is being provided.
Many years ago, Trustees felt that programs should stand on their own. Under recent Boards and our current Board that policy was abandoned and swept under the rug.

Keep in mind, that when the Board passes the annual Resolution assessing the Recreation and Beach Facility Fees, it clearly states that the money is to be used to make the facilities available for our use. There is no language to suggest that the Recreation and Beach Fee is there to subsidize the operating shortfalls of all programing.

Indra will come back to the Board with a revised presentation. We will await the results…
#Rec #Violations

Mr. Winquest attempts to discredit our OVV post reviewing his Community Programming presentation but fails to identify the items he deems inaccurate, nor does he provide his corrections.

In Mr. Winquest’s first response to our post on Community Programming, he stated: "In the future, before posting inaccurate information, please contact me directly."

If we knew the information he was challenging and provided the facts to substantiate his claims, we would welcome an open discussion. Consulting with Mr. Winquest for his pre-approval of our extensively researched OVV Posts, is not in our DNA.

Mr. Winquest’s second comment shared information about his busy schedule, his lack of time and raising his children , but he did not provide any additional information relevant to the issues we raised in our post.

What we did learn from Mr. Winquest is that he knows the financial information like the "back of his hand." If this is in fact the case, perhaps he can advise why he stated our Recreation Fee allocation to Parks was approximately $700,000. The Fiscal Year 2017 Board approved Budget states the allocation was $957,000.

On pages 26 and 27 of the Board Packet, his presentation of the Fiscal Year 2017 operating sources (cash coming in) and expenditures (cash going out) is titled Incline Village PARKS & RECREATION. That heading is misleading: All the amounts are for Community Programming activities while THE AMOUNTS FOR PARK ACTIVITIES ARE OMITTED. WHY would the District create two pages of numbers for Parks and Recreation –then leave out the numbers for the Parks?

The current Budget for Fiscal Year 2018 indicates another $1,241,000 is required to subsidize the Parks. Using the generic word “Recreation” may also prove misleading as Community Programming is the actual subject of his presentation.

As Incline Village/Crystal Bay citizens we all have a right to complete and accurate financial information. The Community Programming Presentation accomplished neither.

We do not expect a statement from Mr. Winquest providing factual counterpoints to any information he deems inaccurate. In the event he does, we will post it. In the meantime, don't hold your breath.
#Violations #Rec

$575,000 in REPAIRS for the Burnt Cedar Pool! REALLY????

The Burnt Cedar Pool was built in the 1960’s and is made of fiberglass. According to past Capital Project Budgets it requires resurfacing every seven years. In last year’s Five Year Capital Improvement Plan (“CIP”) the cost for resurfacing was estimated at $125,000 and would be completed between 2019 and 2020. The 20 Year CIP called for resurfacing again in 2027 and 2034.
The new proposed Five Year Plan included in the March 28, 2018 Board Meeting Packet indicates the pool's piping is effectively shot as it is currently leaking 20,000 gallons of water per month causing "health and safety impacts."

THE BUDGET IS NOW $575,000! THIS IS A BUDGET INCREASE OF 360% IN ONE YEAR!

Design is now scheduled to take place in fiscal year 2019 and the repair and resurfacing work performed in 2020. The work will include cutting into the pool shell and surrounding pool deck and excavating to install the new piping. This sounds like a very expensive patch job to us.

Despite all the staff, engineers and administrative personnel available to us, from year to year, we continue to have “sudden” or “unexpected” unbudgeted “emergency” costs becoming a reality and soaring through the roof.

We wonder if a brand NEW pool should be built. After all $575,000 is quite a lot of money.

Seems to us that every time a project gets started there is a major explosion in costs. From where we sit, the Five and Twenty Year Capital Project Plans are not worth the paper they are printed on.
#Rec

Championship Golf Course Maintenance Building Repairs – $730,000 and Rising!

We will continue to expose the misleading five year capital project plans IVGID produces each year. These are not actually plans but random numbers on pieces of paper. There is no Plan!

The Championship Golf Course Maintenance Building constructed in 1992 suddenly requires various site improvements. The proposed five year plan indicates that design will begin in fiscal year 2020 and the work completed in 2021. Apparently there is groundwater infiltration under the building slab because of poor drainage. In addition, there are environmental concerns about equipment wash down and runoff. As such, a MODERN wash pad system is planned "which will conserve water, improve safety and increase overall productivity." WOW! When did this happen? Just last year, the five year capital budget for this project was $70,000.

THE BUDGET NOW CALLS FOR A STAGGERING $730,000!

Last year, $90,000 was budgeted in 2019-2020 for a new roof. Apparently, the roof is no longer important as this year’s budget plans does not include any funding for a new roof.
Again, as in so many other examples, the budget for individual capital projects skyrocket year after year while other so-called vital projects disappear. Here, the budget has increased by 942% and we don't get a new roof.

This has now become an outrage. IVGID Staff is lying to us and our Board majority is not paying attention or exercising oversight. The capital plans are bogus. We need expert outside help to find out what the deferred maintenance and replacement costs actually are for all of our venues.

Danger signs are flashing before our eyes as we see enormous increases in budgets for funding the Diamond Peak Culvert, Ski Way Repaving, Burnt Cedar Beach Pool Resurfacing and now the Championship Golf Course Maintenance Building Repairs. We believe important maintenance and asset replacement projects are being omitted from our annual and five year capital project budgets along with the complete costs for the capital projects planned.
Why is this critical information being suppressed? Some might point to the General Manager’s pursuit of the Parasol Building for administrative office space and the summer amusements in the Diamond Peak Master Plan. These are two financial debacles that the District cannot afford and the Community does not want.

Who will demand that our Board and our Citizens receive complete and accurate information to make informed decisions?
#Rec

Tennis Center Renovation – Delayed For Another Year!

The proposed five year capital plan now calls for the Tennis Center renovation to be completed in the 2020 fiscal year. This is a one year delay from the capital plan approved in August, a mere seven months ago.

For fiscal year 2018, $30,000 was budgeted for design. At this stage, with three months to go, we haven't seen anything to review.

Our estimated budget has now climbed from $330,000 to $420,000. Based on other triple digit project cost increases this one is up only 27%. We would consider doing some backslapping, but we’ll wait until the new funding budget for this project arrives next year.

Keep in mind we paid a consultant $40,000 three years ago to tell us the facility needed remodeling and that one of the tennis courts should be converted to a pickle ball court.

Based on other project delays or outright cancellations, this could be considered on a "fast track" to actually accomplishing something in five years.

We remember the Board meeting where several seniors came out to support more pickle ball courts and the facility upgrade. We wonder how many may still be alive or able to play on the upgraded facility.

Sarcasm intended…
#Rec

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

Food and Beverage at the Beaches will now be serviced by IVGID rather than outsourced.
More revenues + more expenses = more losses

Prior to Pinkerton's arrival, previous Board of Trustees decided that Food and Beverage services at the Beaches and Snowflake Lodge would be operated by outside firms since IVGID could not seem to avoid losing money. They selected Brimm Catering, a local merchant, who has and continues to operate the food and beverage concessions at the Shakespeare Festival at Sand Harbor. Brimm paid a monthly rent to IVGID. Last year the contract was not renewed at Snowflake Lodge and this year the Beach contract was not renewed. So IVGID is back in the food and beverage business. Incline Spirits still will operate the Beach bars.

The tentative budget for the year that ends on June 30, 2018, presented at the March 13, 2018 Board meeting, states ALL operations at the Beaches (excluding the parcel owners annual Facility Fee contribution and costs for capital projects) will lose $425,000. The upcoming fiscal year ending June 30, 2019 is budgeted to lose $554,000. This is an additional $129,000 in losses.

Now here's the rub. In the narrative presented with the tentative budget on March 13, 2018, it stated that taking over the Beaches' Food and Beverage operations will increase revenues by $334,000 and related expenses will increase by $223,000. Thus one would conclude the change from outside contractors for food and beverage to internal operations would have a POSITIVE effect. Instead it's just the opposite. As stated above our losses will actually increase.

We don't get it. Across the United States, government entities have been shedding as much operating responsibilities to outside contractors. Only at IVGID are services conducted opposite of trends resulting in increased losses.

Will someone explain this!
#Rec

Renovation of IVGID Baseball fields get added boost of cash from the Duffield Family

At tonight's IVGID Board of Trustees meeting, a unanimous vote is expected to accept the additional grant from the Duffield Family for increased costs to renovate the baseball fields located next to the middle school.

In December 2017 the costs were estimated $760,000 but additional "scope" changes increased the estimate to $1,208,000. The final designs are near completion. Construction bids are expected on May 24, 2017 and the Board is expected to approve a bid shortly thereafter. If approved, construction will start immediately and should be finished by the end of this summer. In the event bids are higher than the estimates, it is presumed that IVGID would be responsible.

We again want to thank the Duffield Family for making the project a reality through this massive increased donation. It should be a humdinger of a project.

In order to facilitate tax benefits for private grants to IVGID, the Incline-Tahoe Parks and Recreation Vision Foundation, Inc. also known as the Incline Tahoe Foundation was formed in 2009 to act as a "middleman" between the donors and IVGID. A master Memorandum of Understanding between the Foundation and IVGID lays out the responsibilities of each. The goal is to enhance improvements for the parks and recreation venues of IVGID. Naming rights are provided to donors. Each new grant for a project has a separate agreement. It should be noted that IVGID will pay the foundation 3% of the donors grant for administrative services. IVGID's General Manager is on the Board of Directors of the Foundation as an "ex officio" member and also negotiating and executing contacts on behalf of IVGID. Good business practices should avoid any conflicts of interest and we believe the GM should act on only one side of the transaction.
#Rec

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

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

Wednesday, June 13th IVGID BOARD MEETING Brought Some Good and Some Bad News

First, the Good News:

1. The 2017/2018 Community Services Special Revenue Fund budget was amended to reflect $850,000 of additional revenues from Diamond Peak with related expenses of $370,000. The beginning fund balance at July 1, 2017 was also increased by $484,338 due to some extra cash lying around that was not included in the original budget. Budgets every year are done about six weeks in advance of the end of a fiscal year so estimates can be off. Long story short, we apparently have an extra $964,000 of additional funds over and above the budget. *Keep in mind this improvement relates only to the Operations of the recreational venues. It does not reflect any variances which might exist in the budgeted amounts and expenditures for Capital Projects. We will not get that information until sometime in August. Mother Nature has been good to us the past three years providing ample snow to make Diamond Peak successful.

2. A genuinely streamlined meeting – under two hours!

Now, the Bad News:

1. Red White and Tahoe Blue (“RWTB”) Fourth of July events have been drastically cut back. There will be no Parade, and no activities on the fields at Aspen Grove. The Lion's Club breakfast, the Rotary Club duck races and the Beer and Brats will still go forward. Fireworks are still on hold due to Washoe County’s concerns with unresolved safety and traffic issues. On June 26th, RWTB is scheduled to appeal the County’s current refusal to provide a Fireworks Permit. We will all have to stay tuned until then.

2) The New and Improved Incline Park Ball Fields next to the Middle School will be delayed for another year. According to Brad Johnson, there were no bids received from contractors for the $1,200,000 project. IVGID will seek bids this fall for an early start of construction in May, 2019 (providing they receive an acceptable bid).

3) Although the Holman Family Bike Park’s Beginners Pump Track is complete, construction of the Advanced Pump Track is delayed until donated funding can be secured.

4) US Forest Service funding of approximately $300,000 for water system improvements to increase firefighting water flows has been cut back and will not be available this fiscal year. It is unknown what IVGID intends to do to continue the program.
#Rec

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

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

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

"We will not raise your Rec and Beach Fee and we will provide new venues for your enjoyment."

Kenda Wong and Bruce Simonian have proposed the above plan without explaining how.

Now let's get real.

IVGID has nine recreational departments which historically HAVE and ALWAY WILL consume ALL of the existing Rec and Beach Fees year after year just to repair, maintain and replace facilities and equipment. Revenues (other than Diamond Peak) have been maxed out and expenses will continue to rise. The Rec and Beach Fee of $830.00 per parcel provides approximately $6,750,000 annually of which 40% has consistently been required to cover operating expenses and the remaining 60% is necessary for purchases, repairs, maintenance and paying debt. (see chart)

Our only "ACE IN THE HOLE" is the performance at Diamond Peak which will vary depending on Mother Nature (SNOW). Diamond Peak is the only venue which can have large swings in revenues and expenses. The last three years brought long snowy winters and Diamond Peak's operations shined like a "Diamond". The venue was allocated, but did not need, a Rec Fee subsidy and operations provided $4,610,000 in excess revenues (see budget augmentations). These excess revenues allowed for the multimillion Incline Creek Culvert replacement and also provided some additional money for future projects. No borrowing was necessary. So unless excess revenues are produced at Diamond Peak, long awaited project rehabilitations and new projects, cannot take place. For example: The Mountain Golf Course Clubhouse and the new building at Incline Beach were on and off the five year capital plan several times as no money was available.

So a simply choice from two questions must be made:

Do we increase the Rec and Beach Fees to provide funding for new recreational venues?

or

Do we wait each year to find out if Diamond Peak generates excess revenues and then decide on replacing existing facilities first and then adding new low priority recreational venues.

We suggest there will be no new venues constructed for at least the next four years.
#Rec

The Mountain Golf Course – A dismal situation

Did you know that for 2017, 2018 and the budget for 2019, the Mountain Golf Course required a subsidy of $681,000 PER YEAR? Did you know that during this three year period the budgeted subsidy of $1,466,000was exceeded by $579,000 or 39.4%? In other words, $2,045,000 or approximately $40 is needed to subsidize each round of golf played. The extra money over what the Board budgeted had to come from the successful Diamond Peak operations.

Did you know that in April 2018, as more losses mounted, the Board approved a promotion to allow residents to redeem the unused portion of their Punch Cards which expired in May, to purchase play passes? This resulted in the District’s reporting $97,000 of additional revenues although NO actual cash was received for these play passes. Instead the money to supply these revenues was taken from the Administration department of the Community Services Special Revenue Fund. Without this extra boost, Mountain Course revenues would have missed the budget by 22%. Keep in mind, this promotion violated Ordinance 7 as punch cards can only be used for guests not residents.

Did you know that in 2012, Global Golf Advisors provided a road map to implement an operating strategy which projected the golf course operations should break even by 2018. However, in 2018 the actual operations missed the projections as follows:

– Golf play revenues were 59% lower than projections -Expenses were 8% higher than projections (This does not include capital improvements)
– Rounds played were only 83% of projections
– Revenue per round was only 65% of projections

Did you know that 55% of citizens responding to a 2012 survey conducted by Global Golf Advisors want a NEW clubhouse?

Did you know that GM Pinkerton is trying to punch through a rehabilitation of the Clubhouse at a preliminary cost of $1,200,000 ignoring Global Golf Advisors recommendation that a NEW clubhouse MUST be built?

Did you know that the renovation of the Maintenance Building to provide electric charging stations, HVAC upgrades and crew quarters are estimated to cost $445,000 and have been pushed off until 2024?

Did you know that in 2014, BJG architects and engineers designed one option for a new clubhouse, a renovation of the maintenance building and a new full swing warm-up area estimated to cost $2,005,000, which was considered a superior design? So for an extra $360,000 our community could obtain something brand spanking new rather than Pinkerton’s "Putting lipstick on a PIG." It would take two years to construct, but so what? The course could remain open and as BJG stated: "Implementing the SUPERIOR design would span two golf seasons, but would incur limited temporary facility costs and would be the least disruptive construction project for golfers."

Who is making decisions here? Why pay consultants $105,000 to explore options and find a SUPERIOR plan for the Golf Course property and then ignore it? Why survey our citizens and then ignore their response? Apparently, Pinkerton has the three "pocket" votes of Trustees who will do anything he says.

How would anyone think that operations would improve by ignoring the recommendations of experts and doing nothing? Do we need a building fire to build a fire under the Board to stop treating everything as an emergency so rash that bad decisions end up being made. There is no emergency here. Let's do this right and stop applying expensive bandages. The Mountain Golf Course is here to stay. The big question is why are recommendations of the experts being tossed overboard? And why are the voices of our citizens being silenced?

#Rec

A NEW Burnt Cedar Pool – $2.5 million plus $487,000 in interest requested by Pinkerton when consultants say less than $1 million is needed. What's up?

IVGID staff has known for at least 18 months that the underground piping around the Burnt Cedar Pool has been leaking about 20,000 gallons of water per month, which presumably is going somewhere into the ground. Data from the current project summary states: "Leak testing and video inspections have indicated that the pool's main drain piping, skimmer piping and return lines (which date from the mid 1960) all have leaks and are at end of life. Replacing the piping would be planned to coincide with the pool resurfacing. The work would involve cutting into the pool shell and the surrounding pool deck and excavating to replace the piping." A rehab is planned.

In August, 2018, Terracon Consultants Inc. from Concord, California was engaged for $25,000 to do another inspection, material testing of the pool shell, design for a piping rehab which would include staff's desire for a new water recirculation system.

On December 4, 2018, Terracon issued a report which detailed a substantial number of faults with the pool, the wading pool and decks. In addition, the pool's structure would not support a recirculation system. Finally the report stated: "With regard to urgency of repairs, it is our opinion that the pool shells and deck will continue to perform as it has for the past few years." Terracon further recommended a plan of action for a future project in the 1-3 year time frame for a complete replacement of the pool, wading pool, decks and ADA compliance. The project would take 30-42 weeks to complete and the cost estimate was $950,000 including 12% for design.

So let's get going and build a new pool. Well not so fast here.

The avaricious man – Pinkerton

At the December 12, 2018 Board meeting, Pinkerton lied in his normal fashion stating a new pool would be required but he did not have the estimated costs, but he knew there was not enough money in the Beach Fund. Really, the Terracon estimate was provided 8 days earlier.

Then at the Board meeting on February 27, 2019, his status report stated that the pool piping project would be bid in March, 2019 with construction in April, 2019. This was impossible because most of the 2018/2019 $75,000 budget had been spent on consultants. More appropriation of money was required. That statement would suggest he was doing something when he was not.

The absolute WHOPPER,

At the March 18, 2019 Board meeting Mr. Pinkerton presented the new five year capital budget which includes $500,000 this year for the pool piping and resurfacing the pool shell and then in the very next year another $2 million is budgeted to construct an entirely NEW pool area . Now, of course, crying poor is standard for government, so he claims the $2 million must be borrowed. Untrue. The District is awash in excess cash reserves which are available for recreation projects and reallocating the annual Rec and Beach Fee but keeping the same total would solve the funding problem. A design of a new pool area should start immediately and 42 weeks later we would have a new pool. Just for extra joy we will SAVE $500,000 on an unnecessary project and SAVE another $487,000 in interest charges.

At the Board meeting this Wednesday, we expect the three Pinkerton puppets to approve the tentative budget. Trustees Callicate and Dent will probably vote NO on this stupidity. We would like to see Morris, Horan and Wong actually remove their puppet strings and look at the facts and turn the budget down. Let's wait and see.

Pinkerton is creating an unnecessary project, going into unnecessary debt, and wasting money on interest charges. Why is he doing this? He is not looking out for us. Does anyone wonder why we write this stuff? We are trying to help. A new manager is needed. His contract is up for renewal in August. Think about it.
#Rec

Golf Rates for the 2019 season. Joe Lunchpail ( the working man) gets the shaft

Golf Rates at the Championship Golf Course have been set by the Board of Trustees

Resident rates for prime time play from morning until 4 PM have remained the same for three consecutive years. However, beginning at 4PM when resident, Joe Lunchpail, and his friends get off work and can maybe squeeze in 18 holes before dark, the IVGID board decided to raise the rate on that time period by 18%. Guests of residents will also pay 18% more for the same time period. Why were rates only raised for that time slot? The previous rate was affordable and the working man filled the tee times. Demand exceeded supply, Joe Lunchpail felt good about the rate and went out and played so raise their rate. Fair? We don't see it that way. If IVGID needs more money (as they always do) apply an increase in resident rates over all time slots.

For those who do not play golf, the IVGID Board majority (Wong, Horan and Morris) just approved a tentative budget for 2020 which included a 22% increase in the annual Rec Fee to subsidize the Championship Golf Course from $800,000 (2017 and 2018 average)per year to $976,000 per year. In other words, the subsidy equates to $65 per round played by residents and their guests (2018 golf season). We are sure the golfers appreciate the gift.

Rates for Non Residents were also increased by $10 to $20 per round with Friday Saturday and Sunday morning hitting $200 per round. We will see how than works out.

The moral of the story: whack the working man, shaft the working man and soak the tourists, to keep rates the same for the appeasing members of the various golf clubs, who have retirees able to play anytime. Poor dears, It's expensive for them to maintain their million dollar homes and lifestyle and cannot possibly afford to pay a slight increase in rates.

You can probably guess where the votes came from to elect Wong.

#Rec

Hooray for Diamond Peak

Diamond Peak has sure been a big winner with the help of good snow, a good economy and excellent employees lead by Mike Bandelin, the General Manager of the Ski area.

Over the past four years, the Community Services Fund, which accounts for all recreational venues except the Beaches, had overall positive operating results. Diamond Peak alone had $13.7 million in operating revenues which exceeded expenses. Of that, $11.8 million was used to support continued losses at all of the other venues with the remaining $1.9 million assumed to be for capital projects.

Just as exciting, over the same four years, annual Recreational Fees of $7.8 million budgeted to support operations was NOT NEEDED and has been accumulated to pay for future capital projects. At the end of June 30, 2019 excess reserves are expected to be $8.2 million. Super. We now have money to spend on the neglected recreational infrastructure.

The draft 2019-2020 capital budget cash flow, presented at the last Board meeting, calls for immediately using $4.6 million of the excess reserves to complete the outstanding Carryover Projects ($1.3 million), to rehab the Mountain Golf Course Clubhouse ($1.4 million-$900,000 funded by insurance proceeds and a general fund transfer), to rehab the Tennis Center ($1.3 million) and $1 million to purchase equipment and golf carts and replace a fuel oil tank. IVGID staff also plans to push forward on spending almost $500,000 for design of a Dog Park, Bocce Ball Courts and a Sprung Structure next to the Recreation Center.

According to the cash flow report, the remaining excess reserves of $3.7 million will shrink to only $1.6 million over five years as most of the $2.1 million will be spent on design for seven other Master Plan projects. Construction costs for the 10 new projects is estimated to cost almost $30 million.

Borrowing $4,850,000 to create roundabouts on Ski Way, repave the road and parking lots is scheduled in two years as a two year project. Annual payments on the borrowings will be $600,000 consuming almost 20% of the Rec Fee now allocated for capital projects which will put more pressure on funding sources. Construction of the first phases of Diamond Peak's summer amusements has been thrown overboard for at least the next five years.

We have been quite fortunate that Diamond Peak has produced cash so admirably but there are limits, most of which are weather related causing wet and dry years. That is our earth. Gambling on mother nature to fund capital projects should be considered risky.

Now let's be clear about one thing. Without continual robust Diamond Peak revenues exceeding operating budgets, there will be no money to implement ANY of the major proposed master plan projects and the designs may end up sitting on the shelf. The only place to find more money is Diamond Peak's success or increasing the Recreation Fee.
From the $5.8 million in the annual Rec Fee paid by property owners, $400,000 is needed for debt service, $3.3 million is needed just to keep up with ongoing equipment purchases, facilities maintenance and small improvements. Operating the two golf courses, the parks, the Recreation Center, Aspen Grove, the Chateau, providing Community programming and supporting the recreational administration department require almost $3.7 million annually to cover losses. Luckily, $1.6 million is expected to come from positive operations at Diamond Peak offsetting some of the losses. The Ski operations are the key. Otherwise it is your pocketbook.

The Beach Fund, after completing the Burnt Cedar Pool resurfacing and mechanical repairs for $800,000 and $150,000 for storm drain improvements, there will only be $400,000 in excess reserves which will not accomplish much. Trustee Callicrate wanted to allocate a portion of the 2019-2020 Rec Fee to the Beach Fee in order to provide an extra $3 million for a new Incline Beach building rather than cranking up millions for designs on new projects. He and Trustee Dent believe the Beach building was designated as a priority and should be done first. No such luck, the other three Trustees want to proceed with master plan designs without providing a clue on how construction costs will be funded or how a new beach building will be funded. The Beach Fee will have to be raised to construct the building either by a onetime cash payment of $400 per parcel or $50 per year for 10 years to repay a $3 million dollar bond. Wong made a campaign promise not the raise the Beach Fee, so without some concession on her part, there will be no new building
.
At any rate, HOORAY FOR DIAMOND PEAK

#Rec

Finally some good news – Interim General Manager Indra Winquest actually wants to get something done

A NEW Burnt Cedar Beach Pool may finally get done. Over the last three years, the piping around the pool has been leaking around 30,000 gallons per month. Big time spender, Pinkerton hired consultant Terracon, to determine if the 60 years old pool could be saved. Terracon stated a NEW pool should be built and the estimated costs including design would be $935,000.

Instead of accepting professional recommendations, Pinkerton budgeted $800,000 to spent on a rehab. "Work would involve cutting into both the concrete pool shell and the pool deck and excavating to replace the underground pipe and fittings and then consider regrading the pool bottom for 300 cubic yards of concrete fill to bring up the pool to be a level six feet deep". CRAZY. The rehab was planned to be completed in time for opening next June. He then budgeted another $1,450,000 in next year's budget "if a decision is made to do a new pool". The real plan was to do nothing.

The consultants say $950,000 for a new pool, Pinkerton says $2,250,000 for a rehab and then a new pool. The Beach Fund doesn't even have $2,250,000 to spend. Based on the estimated fund balance at the end of June next year, Pinkerton would have had to scrounge around and find another $900,000 probably looking for Eick to perform some razzle dazzle accounting or raise the Beach Fees. His cronies, Trustees Wong, Horan and Morris voted for the budget which violated their own policy which effectively states you can't spend money you don't have. Duh. Oh, by the way it's against the law. Pinkerton is gone and we are relieved but another year has been wasted. A new pool looks like summer of 2021.

Indra, who ran Parks and Recreations for over 13 years, thought the pool rehab plan was a bad idea and believes a new pool is more appropriate, however, he was not the boss. Now he's in charge and at the last Board meeting, he clearly stated that ONLY a new pool should be built and the goofy rehab abandoned. Finally some common sense. He will bring back recommendations to the Board in November, find a design team and get more citizen input.

Trustee Morris was concerned that the pool might be closed for a summer and people will be upset. Indra reminded him that there is a pool at the Rec Center and if one looks south there is a lake. Some people will always be upset, but in the end most get over it.

A breath of fresh air, with Indra running the show. We wish him well.
#Rec

Waiting for a Dog Park

Does IVGID Board of Trustees even listen to paid professionals? The latest waste of time on finding a location.

As everyone is probably aware, Village Green has been used as a "temporary" Dog Park for almost 20 years. In 2016, a survey of citizens found that constructing a dedicated Dog Park was a high priority. Let's get going, it's been a long time coming. Yeah.

On May 1, 2019, a presentation on the progress of chasing Federal Grants was provided by Marcus Faust, a lawyer and IVGID's Federal Legislative Advocate who gets paid $65,000 annually to lobby. Hurdles and Red tape consumed most of the 30 minute shindig but Mr. Faust believes some money may fall like snow on IVGID for the Effluent Pipeline Project. At that same meeting his one year contract turned into three years.
Trustee Callicrate asked Mr. Faust the possibility of acquiring Forest Service parcels for a dog park. Faust responded the Forest Service was not authorized to give land but would have to be directed by the US Congress. Callicrate then asked about a special use permit in the interim and Faust replied, those permits would take 10 years, Congress is faster.

So believe it or not, on July 17, 2019, the unrealistic optimists controlling the Board of Trustees voted to pass a Community Services Master Plan and the number 1 priority was to obtain, from the Forest Service, a special use permit for 13 acres across from the High School to be used for a dog park . Was anyone listening to Mr. Faust back in May?
Just for reference, a special use permit is nothing more than a lease with an expiration date. You own nothing. Factor in the $3.4 million estimate for construction and the additional burden of $208,000 annually in operating expenses and with your money a luxury resort can be provided for our four legged friends. Oh boy!

Then at the last Board meeting in September, Nathan Chore, P.E. Engineering Manager of IVGID, provided a memo updating progress on the established priorities. Regarding the Dog Park he wrote: "Reached out to the Forest Service to set up an initial meeting. The District will exhaust Forest Service parcel opportunities prior to other site selections.". Indra Winquest, indicated that if a special use permit cannot be obtained for the 13 acres, then an attempt would be made on the acreage west of Pet Network which is also owed by the Forest Service. Any logic here? Marcus Faust said a special use permit will take 10 years to get. IVGID's Board majority is out to lunch wasting time and money chasing rainbows while ignoring the Utility Fund's financial disaster.

The real deal is Mr.& Mrs. Duffield, Incline residents, have indicated one of their foundations might donate the costs for a new dog park, and that is just too irresistible to pass up. Forget about people wanting a dedicated dog park in a reasonable time period. Make them wait.

It looks to us that the "temporary" Dog Park will remain at Village Green for probably 30 years.

The same wild goose chase for a special use permit for summer amusements at Diamond Peak has been under way with the Forest Service for over four years. According to our previous King, Pinkerton, nothing has occurred and so we assume we wait six more years for anything to blossom. We have already spent about $400,000 to consultants and the Board majority has approved another $700,000 for an environmental impact statement ("EIS"). Right before Pinkerton left, he passed out several gifts which included a $33,000 contract to a firm in Zephyr Cover for a "biological survey" in anticipation of a future EIS. Normally gifts are exchanged for gifts.

Must we accept this 3 member Board majority to waste time and money for another year?
#Rec

Incline Beach House – A wasted $210,000 on lavish designs

In May, 2016, our esteemed leaders rushed to initiate a design contract for a massive building to replace the small snack shop and restrooms at Incline Beach. Little thought was given about a modest increase in size. Instead the design was patterned after a building located at Sand Harbor, disregarding what the actual needs might be based on beach visits. For comparison, Sand Harbor has between 800,000 to 1,000,000 visitors per year compared to less than 92,000 (2018) visits at Incline Beach. The preliminary design provided two options with the building size averaging 3,000 square feet and decks averaging almost 3,200 square feet. One of these monstrosities would replace the lowly 1,000 square foot crummy building. The original budget was $1,900,000 which also included a reconfiguration of the entry kiosk and the loading/unloading area. How to pay for the project was not identified.

In March, 2017, a grand presentation of Staff's opulence appeared, which never included a discussion of the small amount of food and beverage actually sold, the increase in operating costs or a comparison with Sand Harbor operations. The price tag jumped to $2,300,000 with a caveat that estimates could be higher. In reality, Pinkerton and Johnson, had two completed outside estimates between $4,000,000 to $5,300,000, but obviously they were too embarrassed to present them to the Board. The Board, astounded by costs, gave marching orders with the same old storyline and the same old suggestions to complete costs estimates, solicit public input and coordinate the project into the Community Service Master Plan. In other words, do nothing and sweep this fiasco under the rug. The project was kept on the capital plan with a new estimate of $3,211,000 by simply dropping off the entrance improvements of $1,000,000. A deceptive maneuver. Finally last year the entire project disappeared from the plan completely.

Through June 30, 2018, $210,000 has been wasted on designing a much needed project by making it grandiose and unaffordable.

The project has now been resurrected as a Board "priority" and "results" of the marching order given 30 months ago will be presented at the Board Meeting on November 13, 2019.

Our citizens need a 3,000 square foot building and 3,200 square feet of deck like they need a hole in their head. They want clean restrooms. Food sales average less than $1.63 per beach visit and generate no "profits". The only income is $23,000 annually in lease payments by Incline Spirits for the booze operations.

The latest beach priority is to replace the leaky Burnt Cedar Pool first, which has a budget of $2,250,000. Assuming that goes forward, there will not be one thin dime in the Beach Fund to accomplish replacing the Incline Beach Building. Borrowing money through tax exempt bonds is not available because the Beaches are private not public. Only one choice left, increase the beach fee.

Let's see what Indra Winquest might have in mind after presenting results of the marching orders given 30 months ago. Seems to be no rush here, but our Trustees tell us it's a Priority.
#Rec

Snow Making at Diamond Peak by the numbers

Last week we had a good conversation with Michael Bandelin the chief at Diamond Peak. It had been cold so Snowmaking began and 1 million gallons of water was converted to snow. He told us in a normal year about 35 million gallons of water will be magically changed to snow. Got to love Mother Nature.

By comparison that would be 560 million 8 ounce cups of water

or enough water to supply 486 homes each year in Incline Village (average home uses 72,000 gallons annually)

IVGID provides 1 billion gallons of water annually to customers, so 35 million converted to snow represents only 3.5% of the annual supply

Tired of numbers yet

Lake Tahoe has 39 trillion gallons of water. That would be 39,000,000,000,000 a little less than double our National Debt of $21 trillion (now we ruined it)

Cost of making that snow is unknown.

Mike said snow making is halted until it gets cold again but the snow guns are ready.

Thanks Mike for the info. Everyone have a great ski season.

We love the numbers.

#Rec

The $1,300,000 Tennis Center Renovation

On June 10, 2020, the IVGID Board of Trustees approved contracts and a final budget for the Tennis Center renovation.

Beginning July 2015 several studies, designs and staff time was spent to begin a renovation of the Tennis Center. The Cost: $288,000. On May 21, 2020, six construction bids were received and the low bidder was Daniel Fraiman Construction at $709,000. Matthew Dent, a Trustee, is an employee of the low bidder and recused himself from voting to approve the contract to avoid any conflict of interest. Trustee Schmitz supported the renovation but objected to $22,000 of unnecessary project upgrades added to the $687,000 construction bid. Big spender of YOUR money, Kendra Wong, asked why the Board should stress over "nickels and dimes." After all, what is $22,000? By our count, that would be 440,000 nickels.

Other anticipated costs include $71,000 for change orders; $49,200 for more design during construction; $40,000 for more IVGID staff time, and $41,000 for permit fees and new furnishings which include an outdoor television.

No Trustee volunteered a motion to examine the add-ons and the significant overall budgeted costs.

All in all, the project will end up costing $1,300,000. Our only criticism is the heavy front loading of $288,000 for studies, design and IVGID staff time before a shovel is put in the ground.

While it seems there was enough bid coverage, we can only wonder why this project will end up costing so much? The Mountain Golf Course Clubhouse remodel cost the same amount. However, that building was three times larger, has two levels and included a major water line replacement. Design costs and staff time was less than half of what has been incurred on the Tennis Center.

The Tennis Center building has only two 220 sq ft bathrooms and the pro shop is only 612 sq ft . The cost estimate for the outside deck and canopy is over $250,000 with overhead and profit.

Why so much in overall costs? Quite simple. Because of a fire, the Mountain Golf Course Clubhouse remodel needed to get done immediately. Staff and their sole source design contractors played around with the Tennis Center renovation for half a decade. What's the rush, when year after year there can be more professional service contracts and billable staff hours.

Construction will begin on August 17, 2020 and will be completed by April Fool’s Day, 2021. Landscaping and irrigation will be completed by the end of May 2021.

The Board approved the Renovation on a 3 to 1 vote.

Enjoy! If you get tired of pickle ball or tennis, just relax on the deck and watch television and marvel at the $21,000 Aluminum Deck Railing and the Stone Wainscot. As for that other $1,000, admire the ceramic tile in the two restrooms.

By coincidence, at the same meeting, the Trustees awarded a $38,000 contract to Moss Adams, LLP, to perform an audit on a sampling of past construction and engineering sole source consultant contracts. Hmmm.

#Rec