Transcript Concept
Capital Project Improvement
Proposal
February 2009
0
Project Elements
New Storage and Charging Facility for 28 Carts
New Fitness Center
Increased Parking Capacity for Clubhouse
Remodel existing Fitness Facility at Montgomery
Center to become Learning Center and
Presentation Center
1
Project Cost
Total Project Costs are Estimated at $2.5 million
Cost can be reduced by value engineering
2
Funding
Partial Funding from Facilities Fund ($1 million)
Remaining Project Funding ($1.5 million)
Options
Borrowing Funds in a Traditional Manner from a
Lending Institution (seven percent interest)
Borrowing Funds from the Association (three
percent interest)
Borrowed Funds Could be Repaid Within a
Three-Year Period
Member Loan Program (similar to Clubhouse
scheme)
3
A Closer Look at the Project
and What it Entails
4
FITNESS CENTER
&
CART STORAGE/CHARGING FACILITY
5
Existing Area Aerial View
6
Existing Area Street View
7
DRIVING RANGE IMPACT
8
Proposed Project Aerial View
9
Proposed Project Street View
10
Site Plan
11
Floor Plan
12
Rear Side Elevation
13
Range Side Elevation
14
Transforming the Existing
Fitness Center
15
Montgomery Center
16
Montgomery Center North
Existing Floor Plan
17
Proposed
Learning Center
18
the Villages
Learning Center
19
Cart Storage and Charging Facility
History of Initiative/Background
Project Description
Arguments
20
History
May 2000 - A Community Planning Task Force
Report suggests the project
May 2002 – EPA issues notice regarding gas golf
carts (can no longer purchase them)
March 2005 – SPC recommends cart
charging/storage facility
August 2005 – Then golf pro encourages the Board
to move forward on the initiative
21
September 2005 – Architectural Task Force
recommends 24 cart facility as Phase I – Phase II
to expand to 48 carts
December 2005 – Attempts by the Board to
negotiate an architectural design contract with
architect fail
March 2006 – Board negotiates architectural
design contract with Wudtke
August 2006 - Wudtke submits cost estimate for
cart charging/storage facility and parking area $1,091,000
22
October 2006 – The Finance Committee
recommends to the Board to move forward with a
24 cart structure
February 2007 – Board approves $12,000
temporary structure – purchases 14 new electric
carts for $58,500
April 2007 – Board approves civil engineering
design work at $12,500 – allocates roughly
$130,000 to relocate driving range fence – and
adjusts architectural design contract
23
January 2008 – Board terminates architectural
design contract (philosophical differences) and
contracts with Renshaw ($10,000) for re-design
March 2008 – Board approves design/build process
– hires Hollander/Smith General Contractor to
assist with design and project estimating
24
Project Description
Wood or metal structure – whatever provides the
best value at the time the project takes shape
Exterior elements blend well with community
aesthetics
Stucco finish - clay tile roof
Mansard wrapping around flat roof
25
Rear Side Elevation
26
4,000 square feet of gross space
Storage and charging locations for 28 carts
20 storage areas (5 foot by 10 foot) for use by community
organizations (DACs have been clamoring for storage
space)
Four service doors for access and two overhead doors
providing entry and exit for the golf carts
A cart washing area
The building’s roof will be constructed in a manner that
will make it ready for future solar power equipment –
when the time is right and the ROI is reasonable
27
Cart Charging & Storage
28
Arguments Against
What’s the matter with the existing cart
storage and charging facility – it works fine?
It’s a temporary structure and was designed that
way
Stores and charges 14 carts
It’s not a permitted facility
What would it take to get it permitted?
Why not get it permitted and just keep it – no need
to expand and spend the money
29
Arguments For
Member play has steadily declined since 1999
(10,000 rounds annually)
Unless outside play continues at its current
level, member green fees will eventually
increase – unless services are cut drastically
87 out of 117 Villages Club Golfers responded to
a VGC survey supporting outside play versus
increased green fees
15 area courses were surveyed and all maintain
a permanent golf cart storage and charging
facility.
30
2008-2009 Budget Forecast –
Outside Play
Play Category
Regular Guest Play
Guest Day
Outside Tournaments
2008/2009 Budget Forecast
Increase in Cost to Member Round
Total Revenue
Based on 31,000 Member Rounds
$376,400
$12.09
$19,200
$0.62
$90,000
$2.89
$485,600
$15.60
Note: Roughly $100,000 of food and beverage revenue is generated as a
result of the outside play.
31
Actual Non-Member Green Fees
Actual Non-Member Green Fee Revenue
(Calendar Year)
2005
$289,107
2006
$376,616
2007
$435,159
2008
$427,952
32
Purchase of Additional 14 Carts
33
Purchase of Additional 14 Carts
The purchase of 14 additional electric golf carts is being
considered.
Maintaining a golf cart fleet of at least 28 carts will
enable the operation to recover the roughly $10,000 of
revenue lost each year to outside cart rental companies.
The cost of the 14 additional electric carts is $4,500 each
(including tax and delivery). The gross cost (Reserve
Fund) of the carts is estimated at roughly $63,000.
The pay back period on the carts is less than 6.5 years.
Let’s consider the following with regard to the costs of
the new carts…
34
Additional Golf Carts
Batteries in electric vehicles need to be replaced every
four to five years at a cost of $400 to $500
Performing the manufacturer’s recommended
maintenance on the carts, the lifespan of an electric golf
cart is about 10 years - but manufacturers report carts
lasting 15 or even 30 years in some cases
With this plan in place, the gas carts would be used at
times when the 28 electric carts were all in use – this
scenario could apply with half of the outside tournaments
The estimated cost then to maintain the 14 new golf carts
would be $200 per year per cart, or $2,800
35
Fitness Center
History of Initiative/Background
Project Description
Arguments
36
History
May 2000 – Community Planning Task Force
recommends expanded fitness center – cites
survey that indicates same
March 2003 – Board approves $50,000 for Reel
Grobman to provide long range planning options –
report indicates that existing space is inadequate
– future expansion still limited in current location
March 2005 – SPC recommends a new fitness and
wellness center
37
September 2005 – Architectural Task Force
recommends 3,000 square foot facility
December 2005 - Architectural Firm of Mark
Cavagnero submits a proposal to perform
architectural design work on a 3,000 square foot
fitness center
February 21, 2007 – Reel Grobman is brought back
to perform further studies
38
December 2007 – City of San Jose comments on
expansion plans – no substantial objections
July 2008 – Board of Directors decides not to
expand into social side of center
August 2008 - Board of Directors prioritizes two
future projects in the following order: 1) a new
fitness center and 2) and expansion of the
Clubhouse
39
August 2008 - The following considerations were
presented to the Board by staff and option three was
selected by the Board of Directors
Remodeling and expansion of the current
Montgomery Center (as per Reel Grobman’s plans
of Dec 2007)
Construction of a new +/- 4000 sq. ft. building at
the present Cribari Center area "bank building" site
Construction of a new +/- 4000 sq ft building at the
"greens" site adjacent to the north side of the
Village Parkway
40
Project Description
Wood or metal structure – whatever provides the
best value at the time the project takes shape
Exterior elements blend well with community
aesthetics
Stucco finish - clay tile roof
Mansard wrapping around flat roof
Attractive entrance (bridge over natural drainage
area)
Host station
41
Fitness Center
Note: Showers and an outdoor spa are being considered and will cost roughly
$75,000, which can be absorbed by the project budget of 2.5 million
42
Project Description
Provides 3,750 square feet of gym space which is
more than three times that of the existing fitness
center
A cardio/strength center (2,125 square feet) and a
multi-purpose room (1,625 square feet)
Two restrooms, storage space and a small office
All of the existing fitness center equipment can
be utilized in the new proposed center and only
6-7 various machines should be required to fulfill
the facility’s equipment needs
43
The Existing Facility
44
The Existing Facility
The current fitness center occupies 1,030 square
feet of Montgomery Center and has been at that
location since 1999, after moving from Building C.
The existing facility opens at 5 a.m. and closes at
10 p.m. seven days a week, and is closed daily
from 12 noon to 1 p.m. for maintenance.
45
Equipment Currently Available
Five treadmills
Two upright stationary bicycles
Three recumbent bicycles
One rowing machine
One Pec-Deck
Assorted free weights
One stair stepper
Three elliptical trainers
One chest press
One vertical lift
One abdominal machine
One leg press
One seated leg curl
One leg extension
One bicep curl
46
The ability to conduct group activities is severely
limited within the current confines of the space
Personal training is available on a one-on-one basis
There is no supervision of the area and members with
a key are free to come and go as they please
Expanding the current location has been considered in
the past - an expansion would only present limited
opportunities for improvement and, considering the
fact that Villagers are always looking for more meeting
and social gathering space, that option was
discounted
47
Arguments Against New Facility
The existing facility is fine – no one uses it
anyway – I can use it anytime I want after 9 a.m.
and it’s not crowded
It’s in a great location adjacent to the pool and
spa
By leaving the facility where it is we can save the
cost of a new facility
We don’t need bigger and better – that’s just how
some feel
48
Arguments For
The average age of the “new Villager” is 68
compared to the overall average of 72
The multi-purpose room will be able to serve the
needs of various activity groups now holding
classes at Cribari Center – classes such as
Parkinson’s, Pilates, Beat the Clock aerobics,
Waist Shapers, Tai-Chi classes, Yoga, and maybe
even Line Dancing
In a normal month, 25-30 of these classes are
held at Cribari Center. These groups generally
consist of 25 to 30 participants
49
Arguments For
Freeing up Cribari Center space by moving the classes to
the new proposed fitness center would address a whole
set of needs related to the desire for more meeting and
social gathering space
Our research on user data indicates that there are 300 to
400 regular fitness center users – 1,700 keys are being
held by Villagers currently
We can only speculate why so few Villagers use their keys
and utilize the center, but consider the following…
There’s no one to help them
They may have been taking part in some form of therapeutic
treatment that is no longer needed
The facility is not welcoming
50
Arguments – the Prospective Buyer
Consider the following: Information provided by American
Sports Data Research in the report Tracking the Fitness
Movement showed the 55 and older market leading the
way in healthy living, for example…
Individuals 55 and older have the largest percentage (29 percent)
of frequent participants in fitness activities, compared to all
other groups
The number of people 55 and older who exercise frequently has
soared by 75 percent since 1987 to 14.2 million
2.7 million belong to a health club
More than a million lift weights twice a week
51
Arguments – Staffing
The question of whether or not to staff the new
facility is a good one. As General Manager, I
believe (if the facility materializes) it should be
staffed for at the least 10 hours each day. A staff
person can supervise the facility and help to
coordinate activities, while serving at the
reception area as well.
Volunteers can fill the remaining four hours each
day
52
Arguments - User Fees
Fitness Committee Survey – November 2008
Of roughly 1,400 surveys distributed, the Fitness
Committee heard back from 614. Of the
responses 30 percent (187) indicated a favorable
response to user fees and 70 percent (427)
indicated a negative response
53
Operating and Reserve Costs for Fitness
Center and Cart Charging Facility
54
Cart Storage and Charging Facility
Fitness Center
Operating Budget Estimate
Expenditures:
Salaries & Wages
Taxes, Benefits & Insurance
Employee Development
Total Employee Expense
$72,800
$14,560
$2,912
$90,272
Operating Supplies
Pest Control
Repair & Maintenance
Total Supplies & Maintenance
$3,000
$1,000
$6,000
$10,000
Irrigation Supplies
Planting, Sand & Misc
Tree Trimming
Landscape Contract
Total Landscape
Water
Gas
Electric
Telephone
Trash
Total Utilities
Total Direct Expense
$300
$1,500
$600
$7,555
$9,955
$1,800
$4,000
$8,000
$2,000
$1,800
$17,600
$127,827
Intra-Co Transfer – Facilities
Intra-Co Transfer – Landscape
Intra-Co Transfer – Maint
Total Transfer
*$6,000
*$500
$24,000
$30,500
Total Operating Expenditure
$158,327
Monthly Burden Requirement
(divided by 2,536 members)
$5.20
55
Operating Budget Notes
The expenses listed above represent new expenses
The staffing element of the budget is for the fitness
center only – no additional pro shop or golf course
maintenance staff is expected to operate the cart
storage and charging facility
The staffing expense represents the cost for one
person, 10 hours each day for 52 weeks. Assuming
the new facility remains open 16 hours a day (like
the existing one) the remainder of open hours could
be staffed by volunteers in small shifts
56
Operating Budget Notes Cont.
The Intra-Co transfers for Facilities and Landscape
are not new costs, but reapportionments
Total operating expenses for the cart charging facility
are estimated at roughly $30,000
The operating expenses associated with the cart
storage and charging facility will be funded in the
following manner - 65 percent to the golfing
community and 35 percent to the community in
general. This reduces the $5.20 noted in Table 4 by
roughly .60 to $4.60 per month per member
Greens fees should not increase to cover the golf
operation’s portion of the expense
57
Year of Expenditure (Assumes 2010 completion)
Paint
Exterior:
Interior:
Doors & Trim
Body
Fitness
Cart
2015
2020
2025
2030
2035
2040
3000
3000
3000
3000
5500
3000
5500
3000
3000
5500
3000
3000
5500
2000
300
500
80
300
500
80
2000
500
250
40000
5000
4500
300
500
80
300
500
80
1500
2000
2000
1500
1500
2000
2000
1500
5000
2500
2500
96000
Roof
Built-up (no solar; w/solar 3X $)
Tile
Gutters & Spouts
Concrete
Walks & Aprons
Curb & Gutter
Cart Floor
1500
2000
2000
1500
Asphalt
Parking (32,000 sq ft)
2500
2500
Landscape
Plants, Irrigatiion, Retention Ponds
Structure Components Exterior Lighting
Building Components
Windows & Doors
HVAC
Fire Protection
Interior Fitup
Contingency
Five-year Totals
2000
5500
2000
500
1000
1000
2500
1000
1000
1000
Interior Lighting
Plumbing Fixtures & Partitions
Floor Coverings
Doors & Hardware
Counters & Cabinets
Domestic Water Plumbing
Drainage & Sewers
Electrical Distribution
Irrigation Control
Earth Slippage / Foundation
Administration (porportion of Club $)
5500
2000
2000
1500
10000
1500
6000
1000
1000
2000
2500
1000
10000
8000
16000
2000
8000
16000
2000
16000
2000
15000
1500
3000
500
500
1500
3000
1500
3000
1500
3000
1500
3000
1500
3000
1000
500
500
1000
500
500
1000
500
$20,380 $48,380 $37,250 $113,500 $45,880 $155,380
58
Reserve Budget Notes
The reserve expenses associated with the cart
storage and charging facility will be funded in the
following manner - 65 percent to the golf course
and 35 percent to the community in general
Over the course of the next 20 years, roughly
$220,000 in reserve expenses are forecast for the
combined facilities (basically one structure), which
equates to $86.75 per member to fund the program
over that period, or $4.34 per year per member
59
Reserve Budget Notes Cont.
The cart storage and charging facility represents 41
percent of the total building’s cost (cart storage
and charging and fitness center). Assuming the
foregoing, the reserve cost to the Club’s members
would be reduced by 65 percent, or $86.75 to
$30.36 which is $1.52 per year per member (.12
per month)
60
Additional Parking at Clubhouse/Golf
Course Area
History of Initiative/Background
Project Description
Arguments
61
History
December 2002 - VGC recommends parking lot
improvements (adding 106 spaces) at the
Clubhouse and golf course area
December 2003 - Board decided to defer action
on the VGC’s request to construct parking lot
improvements pending the Board’s determination
of overall community facility improvement needs,
as might be accomplished by development of a
long-range improvement plan
62
Project Description
The
addition of roughly 80 parking
spaces
Well lit parking area
Attractively landscaped
63
Site Plan
64
Arguments Against
The dirt parking area is fine – people can clean
their shoes off after walking through the dirt
People should know that they might need to park
in the dirt area on crowded days and should come
prepared
It’s not really needed – how often does it happen
anyway
65
Arguments For
It is a fair statement to say that the paved parking
areas serving the Clubhouse, Golf Course,
Building A and Building B are inadequate to serve
the needs of the facilities they are intended to
serve - falling far short of providing necessary
paved parking surfaces on many occasions
throughout the year
66
Arguments For
On formal occasions clothes can become dirty
walking from the area after parking
The area cannot be lined to separate parking
slots
The area is not well lit
Parking and walking on an inconsistent and
unlevel surface – could result in future lawsuits or
insurance claims
67
The Construction Process
68
The Construction Process
The project has not yet been approved by the
City – but all indications appear to be positive
that it will be approved (maybe minor changes)
Upon recommendation from Facilities Project
Committee, in March 2008 the Board elects to use
Design/Build process for project – awarding
Hollander/Smith the contract
69
Build/Design Advantages
The contractor is brought on early in the process and
joins the team
Working closely with staff and the architect, the
contractor provides valuable input offering operational
advice, cost estimates and value engineering options to
help us work together to achieve the project budget
The contractor opens its bid-books to the team so that
bids they receive to complete the project can be verified
– in most cases three bids are considered by the
contractor
70
Build/Design Advantages
Everything is agreed to up front
We can request the contractor to obtain
additional bids if we are unsatisfied or concerned
with a particular cost element of the project
The contractor is paid a fee to join the team and
construct the project – there are no hidden costs
– all data and costs are open and available for
inspection by the project team
71
We Know What it Will Cost
The fees associated with Hollander/Smith’s work
through the design and pre-construction phase is
$24,180
Once construction starts, General Conditions will
be charged at 2 percent of the construction bid,
Overhead and Profit will be charged at 4.5
percent of the construction bid
Field supervision is estimated at $58,500
72
The Cost
Project Elements
Estimated Cost
Paving and Parking Area Improvements
$325,000
Cart Charging and Storage Facility
$800,000
Fitness Center
$1,149,604
Total
$2,274,604
$129,800 of the cart charging and storage facility estimate
represents the relocation of the driving range fence – these funds
were allocated in the Facilities Fund two years ago
Showers and an outside spa (hot tub) are being considered and
may be added to the project if the project budget can absorb the
cost
73
Paying for the Improvements
Financing Options
There are options that present reasonable scenarios. The table on the
following slide provides a snapshot of the Facilities Fund, assuming a
$1.5 million loan from the Association with an interest rate of three
percent. Other scenarios are presented later.
The following slide also assumes that the $15 monthly contribution
from each member to the Fund will continue unchanged at least
through 2013.
This scenario places no extra burden on the members through the next
three years, and maintains the current annual funding level. This
scenario would require the Association’s approval.
The current green fees structure is generating an additional $150,000
annually for the purpose of settling prior year operating budget
deficits with the Club – this program will continue for a period of at
least three more years to pay $520,000 of golf course related debt
associated with the cost of the proposed Cart Storage and Charging
Facility.
74
Facilities Fund Projected Balance
2009
2010
2011
2012
2013
1,219,500
245,077
45,892
55,428
144,252
456,480
456,480
456,480
456,480
456,480
19,600
5,000
3,500
4,500
9,000
Member Repayment @ $14.00/mo. X 932
Done 06/11
-156,576
-156,576
-78,288
Clubhouse Loan Repayment @ $11,993.89/mo.
Done 11/10
-143,927
-131,933
Clubhouse Generator
-150,000
93,043
Beginning Balance at 01/01/09
Assessment @ $15.00/mo.
Interest @ 1.5%
Cart Barn/Fitness Center/Storage/Parking
-2,500,000
Golfer Portion of Cart Barn - 65% of $800,000 (green fees)
Internal Loan - 3 Years @ 3%
Ending Balance at 12/31
150,000
150,000
150,000
1,500,000
-522,156
-522,156
-522,156
245,077
45,892
55,428
144,252
702,775
75
Other Financing Options
The following slide presents other financing options sideby-side with the prior option
An internal line of credit from the Association presents
the best case relating to the cost of money – costing only
$66,648 (this scenario has been approved by the
Association Board of Directors)
A member-financing program (same program used for the
clubhouse), also presents an attractive option - An
$800,000 loan (assuming 900 Villagers loan $780) would
be needed to complete the funding of the entire $1.5
million
The final scenario is the commercial funding route. The
cost of the $1.5 million would be roughly two and one
half times that of an internal loan program
76
Options
Type of Financing
Financing Senarios/Costs
Amount
Rate 3 Years
5 Years
7 Years
1
Internal Loan
$1,500,000
3%
$66,468
$75,433
$107,149
2
Commercial Loan
$1,500,000
7%
$157,684
$181,180
$260,431
3
Resident Prepay
Internal Loan
900 @ 780.75
$800,000
4%
3%
$41,687
$13,294
$71,188
$22,630
$101,431
$32,144
Total
$1,002,675
$54,981
$93,818
$133,575
A $1.5 million line of credit has been made available to the Club by the
Association at a three percent interest rate over a term of three years.
77
The Final Element
78
Re-Design of Existing Fitness Center
Space at Montgomery Center
History of Initiative/Background
Project Description
Arguments
79
History
March 15, 2005 –SPC recommends: “Upgrade our
community centers to allow daytime presentation
capabilities and provide for a cart barn/charging area for
electric golf carts.”
March 27, 2007 – In then President Gert Gruener’s board
report, she stated: “The Board is very much aware of the
need to improve facilities so as to have a modern function
teaching-learning center.” And also, “This Board and its
Future Project’s Committee will continue to improve our
facilities to have modern learning centers, which we
believe future residents will be looking for in addition to a
wellness center.”
80
Project Description
Roughly 1,000 square feet of space will be
dedicated to a learning and presentation
environment
36-40 table sitting and 60-70 theater seating
Windows on back wall will be removed – all other
windows will have ability to be darkened
New carpet, tables and chairs
New equipment, i.e. screen, white board, HDTV,
computer, digital projector and sound system
81
Proposed
Learning Center
82
the Villages
Learning Center
83
Arguments Against
Why do we need to spend the money when there
are all kinds of community centers and space to
get together now – in virtually any setting
We can transform an existing community center
into a learning and presentation center
84
Arguments For
Groups such as Osher (life long learning) and Safe
(Senior Academy for Education – an organized
Villages Club) promote learning and provide a
number of programs and curricula
There are a myriad of daytime presentations that
take place on a routine basis in the community
throughout the year. It can be very difficult at
the existing community centers to utilize video
and computer generated slide shows and exhibits
due to the inability to darken the rooms to the
extent that the presentations are seen clearly
85
Arguments For
The Club sanctions many community clubs that
could benefit from a learning center
environment, such as:
Book Lovers
Brandeis National Committee Club
Ethical Humanist Club
Philosophy Club
Search the Scriptures
Bible Study Classes
86
Renovation of Montgomery Center Fitness Area to
Learning Center
Elements
Estimated Cost
Carpet
$3,000
Window Treatments
$3,000
Stacking Chairs
$6,000
Six Foot Tables
$750
Projection Screen
$1,000
White Board
$120
Sound System
$3,000
Digital Projector
$3,000
Laptop Computer
$1,500
Flat Screen Television
$4,800
(60 inch)
DVD Player
$125
Removing Windows
and Door on Back
$7,000
Wall
Total Estimated Cost
$33,295
87
Pros and Cons Regarding the Initiative
88
Cons
The Facility Fund will be depleted
Operating expenses associated with the
operation of the fitness center will require
a $5 increase to the monthly assessment
Assessments cannot continue to increase –
now is not the time
Taking the vote to the community will cost
money
89
Cons Continued
There will be additional equipment
expenses
Reducing the size of the driving range
Increased traffic [noise] at
Golf/Clubhouse and Buildings A, B, C
Depletion of Golf Course revenue
90
Pros
If the project is not approved, the $15 per month
contribution to the Facilities Fund could be
suspended at least for the ensuing year
Building at the current time (economy and
construction costs) will be less expensive than at
some time in the future
Adding to the community’s infrastructure will add
value to everyone’s real estate investment
The economy will improve and when it does,
those who are prepared will realize the gains
associated with an improved economy
91
Pros Continued
There will be no extra financial burden placed on
the membership to replenish the Facilities Fund –
the assessment will remain at $15 for the
foreseeable future
A special assessment will not be required
Aesthetically pleasing addition to the community
New opportunities for learning and presentation
Other community space now used for learning can be
used for other things
More traffic creates more opportunities to sell
golf and food and beverage
92
Pros Continued
People that now pay for an outside gym
membership may decide to cancel their contract,
thus saving the monthly fees
Set up and maintenance costs at Cribari
Auditorium could be reduced if activity classes
were conducted at the new fitness center
Building the facilities and doing the work now will
be less expensive than waiting until a future date.
The Auditorium will also have a fresher
appearance if not subjected to the casual facility
abuse generated by some exercise programs
93
Considering the Package
Discussions and considerations since 2000
The vote will cost roughly $1,100
94
Considering the Package
Ponder points…
The present – will the community benefit from the
improvements – are they needed?
The future – as a prospective buyer or seller, how
does this improvement plan factor into buying and
selling decisions and real estate values within the
Villages?
Timing - is the timing right – compared to the most
recent history construction costs have dipped – will
they remain low, reduce further, or increase – what
does it mean if the plan is shelved?
95
Considering the Package
Fiduciary
duty – what is the duty?
96
Snap Shots
97
The Elements
Construction of a golf cart storage and charging
facility
Construction of a new fitness center
The new hub for the community’s physical fitness
programs - tripling the current space
Construction of additional parking spaces
20 storage areas for community groups
No more parking and walking in the dirt
Redesign of Montgomery Center from a fitness
center to a learning and presentation center
Something that’s been talked about for years
98
The Cost
$2,274,604 for the cart storage and charging
facility, fitness center and 80 additional parking
spaces – $2.5 million is the total project
estimate, including FF&E and the $106,000
already spent on design and project
conceptualization work.
The cost to the membership – assuming the
existing $15 per month Facilities Fund
contribution continues – the total operating and
reserve costs should not exceed $5 per month –
which should not take affect until the 2011
budget year.
99
The Cost Cont.
The costs associated with the renovation of
Montgomery Center from a fitness center to a
learning center ($30,000) can be funded through
the Reserve Fund – in 2009 roughly $250,000 is
budgeted for building renovation and reserve
element replacements.
100
Considerations
Should the project initiative be presented to the
Villages Membership for a formal vote?
If the project is presented to the Membership for
vote, should each item be presented separately
(a menu approach), or should the project
initiative be bundled? There are advantages and
disadvantages to both.
101
Considerations Cont.
How should the project expenses be funded?
What type of loan and term?
Should the parking element be a reserve expense?
Should the driving range fence be a reserve expense?
Golf carts?
102
The Vote
Assuming the formal decision whether or not to
move forward with the membership vote is
approved on February 17, the voting package
could be distributed to the membership by March
14
A series of town hall meetings would be
scheduled through the second week of March
The voting period would conclude April 14 and
the votes announced shortly thereafter – no later
than the 16th
103
Questions and Comments
104