The property’s developer, Robert Radovan, wants to modify the 672-acre, 33-building site’s use permit to allow it to undergo a major restoration.

Plans include altering lodging rooms, rehabilitating 28 buildings, moving five buildings, building a new lodging structure and installing new potable water and septic systems.

The new lodging building would replicate one that was destroyed years ago, according to a report from county planning staff.

The plans also call for restoration work on Aetna Springs Creek, which runs through the property.

The renovation would change the resort’s staffing model from 25 resident employees to 120 employees who would live off-site. The renovation would add about 40 parking spaces, but wouldn’t significantly increase day and overnight traffic to the resort.

The property was first developed in the 1860s and became a stylish summer destination for San Franciscans. The property included a nine-hole golf course.

The resort is on land zoned for agricultural watershed and includes a “historically significant, but deteriorating” resort at the north end of Pope Valley, according to the planning report.

The plan for an updated resort already has a use permit and therefore doesn’t need to rely on a proposed landmark preservation ordinance under consideration by the Board of Supervisors, according to the report. That ordinance would allow new uses on historic sites, while Radovan’s plan is to restore an old use.

Radovan submitted his proposal last July. County Deputy Planning Director John McDowell is urging the Planning Commission to approve it.

Read more:

Aetna Springs restoration before county planners.

Moving increasingly to immunize portfolios from the rising prospect of a recession scenario while providing returns that cash, deposits and T-bills just can’t rival is what we are doing at the investment committee and asset mix level of our firm.

Let me begin by saying I don’t think this will be classified as a “double dip” per se since so much time has elapsed since the last downturn. Be that as it may, it is evident that we will be going into another recession — I think at this point it’s only a question of whether it has already begun — with the levels of output, employment and income all lower now than they were prior to the last contraction phase.

Plain-vanilla, garden-variety business expansions and contractions that are influenced by the manufacturing inventory cycle tend to have recessions separated between five and 10 years apart. That was certainly the experience that economists came to understand and appreciate in the post-WWII era. But in balance sheet cycles, which involve deleveraging, rising savings rates and asset deflation, recoveries are fragile and susceptible to the smallest of shocks and typically, recessions occur every two to three years. This puts a recession by 2012 squarely in the spotlight.

I have already pegged a U.S. recession as a virtual certainty, and respected economists like Martin Feldstein in recent days stated the odds were 50-50 and Larry Summers is at 1-in-3. I am fairly certain that Paul Krugman is close to where I am on this file. All that said, recession risks are rising and until we receive another positive policy shock from the Fed, these risks will remain acute for some time yet. We are replaying the summer of 2010 but only when the white knights of radical monetary and fiscal stimulus resurfaced did the “double dip” chatter subside and give way towards renewed growth and risk appetite — at least for a few months.

You can still make money for investors without taking undue risk … and without having to shift into the ultra-safe world of zero percent-yielding cash or one percent GIC rates either.

Hedge funds that really hedge the risk or relative-value strategies that can go short low-quality and high-cyclical equities while going long a basket of high-quality and low-cyclical equities will be a money-maker in this environment. Those that have the capacity to short economically-sensitive stocks that trade at cycle-high P/E multiples may have an advantage in such a weakening macro and market environment.

A focus on hybrids or income-equity portfolios that have low correlations with the direction of the equity market and generate a yield far superior than what you can garner in the Treasury market makes perfect sense.

And if there is anything out there that is remotely close to “recession proof” it is corporate balance sheets and so an emphasis on credit is going to be critical — the idea is to be selective and identify those entities that have a single-A balance sheet but pay out a BBB yield.

We are believers that gold and gold mining stocks will prove to be profitable investments as the economic downturn inevitably prompts more money printing, not just out of the Fed, but other major central banks as well.

Commodities in general, energy and raw food in particular, should be a core position, as they are behaving less cyclically and more as a secular growth theme linked to the rapidly rising incomes in the emerging market economies.

The economy and risk assets typically hit a speed bump in a recession. That much is true, but investment ideas and opportunities within the market can still flourish even in a bear phase or a correction — cash should not have to be an option.

The key is to be positioned appropriately for the part of the business cycle we are on the cusp of entering. In a nutshell, what that means is carefully constructed investment strategies and portfolios that preserve capital, minimize cyclical exposures, enhance yield and thereby provide for significant risk-adjusted returns — even in a recession. In light of these heightened volatile times, we also realize that this is not necessarily a buy and hold market, and the ability to move into equity markets and take advantage of weakness should also be a part of the strategy.

We think we see what we see, but we don’t. We really see what we think. Remember the blind men and the elephant. Make it your habit to inquire what others see. You’ll see more together.

9.  Stay close to your customer.

Clients’ concerns evolve over the life of a project. Take advantage of that to over-deliver. Stay in a conversation with your client to adjust what you are doing.

8.  Take care of your project team.

We’ve come to accept that the customer comes first…the customer is always right. We can’t take care of the customer if we first aren’t taking care of our project team. It’s a challenge. While there are some things we can do for the whole team, it comes down to taking care of each team member as the individual that he or she is. And to make it more difficult, then we must bring their various interests into coherence.

7.  Keep your eye on the overall project promises.

Project work can be difficult. It is easy to loose sight of what we are doing and why we are doing it. Remind your team and yourself of the overall promises and how you are doing fulfilling those promises.

6.  Build relationships intentionally.

Project teams come together as strangers. To do great work…innovation, learning, and collaboration…all take people who like and care for each other. Don’t leave that to chance. Start your projects by building relationships among team members.

5.  Tightly couple learning with action.

Projects are wonderful opportunities to learn. Don’t put that off for the after project lessons learned. Make it your habit to incorporate learning loops in all your project activities. Your team will appreciate it. Your customer will benefit from it. And best of all, it will make your job easier.

4.  Coordinate meticulously.

A project is an ever-evolving network of commitment. Keep that network activated by tending to the critical conversations. See that people are making clear requests, promises that have completion dates, and share opinions that advance the purposes of the project. Without attention to those critical conversations the project will drift.

3.  Collaborate. Really collaborate.

Make it your rule to plan with those people who will be the performers of the plan. Don’t wait ’til the project has gone south to get their help. Start out that way. Continue collaborating as the usual way you work through the project.

2.  Listen generously.

People are able to say what they can in the moment. For the most part, people are well-intended. Give them the benefit of the doubt. Take the time to listen. Ask questions. Seek others’ opinions. And while you’re at it, don’t be so harsh on yourself.

1.  Embrace uncertainty.

Expect the unexpected. There is far more that we don’t know and can’t know than what we can anticipate. Be resilient to what life throws at you. Anticipate that your team will learn something along the way that can and should change what you have promised and how you can deliver on your promises. And when you take a set-back — we all do sometime or another — review the other nine rules for how you can work your way out of it.

via Ten Rules for Project Managers

• Advise – 3s provides advice to you through verbal dialogue and Q&A sessions. Although we provide valuable input, this level of service does not include active participation in the project.
• Monitor/Review – 3s still advises, but in a more active role. Communication is based on first-hand observations and review of reports, records and other documents.
• Assist/Support – 3s takes a more active role in communicating with other parties associated with the project. At this level, 3s does not take primary responsibility for the preparation of reports, records or other documents.
• Perform – 3s provides the fullest level of service, and assumes primary responsibility for performing given activities. For optimal results, it’s best to engage us as early as possible.

A project consists of a development cycle and a construction cycle which is how 3s groups its core Project Management services. You can expect the following within the core services of Project Development Management and Project Construction Management that 3s makes available:

• Operate under your objectives and management criteria for the project.
• Represent you at meetings and make sure your interests are paramount.
• Act as your agent during contractor assessment and selection, contract negotiations and throughout all facets of the project cycle.
• Act as a liaison with the all project members including internal and external resources.
• Ensure that all potential project-related issues are addressed and that each member of the project team is aware of their role in resolving them.
• Communicate all changes to the project team consistently and effectively.
• Facilitate resolution of conflicts with contractors to avoid costly delays and arbitration.
• Negotiate effective contracts with consultants, designers and contractors.
• Provide team with the information, decisions and services they need in order to do their work.
• Monitor the performance of consultants, designers and contractors to ensure they’re meeting their contractual obligations.
• Initiate corrective actions when necessary to achieve your objectives.
• Develop performance criteria.
• Critically analyze contractor progress reports and alert you to any potential problems.

• Bidding & Trade Buyout – buyout of all necessary contractor trade work. Whether the plan is to use a general contractor, several prime contractors, many direct subcontractors, or any combination thereof, formal RFP’s will be issued and sent to at least 3 different contractors for each trade to ensure sufficient coverage through competitive bidding. All bids will be thoroughly scoped and vetted and a comprehensive bid comparison will be presented to the client prior to awarding any contract.

• Cash Flow Analysis - as part of the Master Cost Report, a complete Cash Flow Analysis can be created to project costs on a month-to-month basis so that the client has a clear and realistic schedule for anticipated expenditures and bank draws.

• Change Order Review – we make sure that each contract carries a complete scope of work to reduce the amount of change order requests, however, when they do arise, a thorough review and negotiation will take place to determine the validity of the request prior to approval.

• Construction Budget - prepare a budget of all applicable hard costs, including allowances for any anticipated cost exposures. This construction budget is also integrated into Master Cost Report along with all other related development costs, including acquisition, design & engineering, legal, permits & fees, FF&E & OS&E, and administrative costs.

• Consultant Management - oversee the architect, engineers, and all other specialty consultants throughout the design and construction process. Not only in the design development phase, but throughout the construction of the project.

• Contract Negotiation – after an “apples-to-apples” bid comparison has been compiled for a particular trade, negotiations will commence to establish a complete scope of work that is cost effective.

• Design Development – transitional phase where the architect, engineers, and specialty consultants work toward bringing the design from the schematic phase into the construction document phase. We facilitate the process and work with the consultants to ensuring the most important topics receive proper attention and resolution, while making sure the owner’s best interests are the focal point of every decision made.

• Document Control - maintain a working history set of all project documents including drawings, specifications, requests for information (RFI’s), submittals, sketches (SK’s), and all relevant tracking logs that can be turned over to the client at the end of the job.

• Field Quality Control – 3s will spend significant time on the construction site, recognizing and solving conflicts.  When complicated issues arise, 3s will explore all of the options, distill the information, and provide the owner with a concise set of options, clearly defined, along with a recommended course of action.

• Inspections & Certifications – work with contractors as they prepare and go through the many inspections required by the authorities having jurisdiction during the construction process to achieve final building certifications.

• Job Cost Accounting – prepare and maintain a Master Cost Report, which includes hard costs along with all other related development costs, including acquisition, design & engineering, permits & fees, legal, FF&E & OS&E, and administrative costs.

• Lien Releases - request and gather all conditional and unconditional waiver and release of lien forms from all contractors, subcontractors, and sub-subcontractors for progress payments and final payments. If payments are made correctly, this will protect the client from having mechanic’s liens recorded on their property.

• Material & Equipment Procurement - buyout of all necessary materials and equipment to complete the job successfully. Many times, in order to save costs, materials and equipment will be bought directly through a purchase order to the client. For each group of materials/equipment, pricing will be obtained from at least 3 different vendors to ensure sufficient coverage through competition.

• Pay Application Review – review all general contractors, prime contractors, and/or subcontractors monthly applications for payment prior to recommending payment to client. We work with the contractors in preparing their schedule of values during contract negotiations to maintain a proper breakdown and format that is consistent and comprehensive for the client during billing.

• Public Agencies Management – coordinate with all public agencies having jurisdiction to make sure that all proper and legal avenues are taken when obtaining permits and approvals. We will work closely with plan checkers during the design process and inspectors during the construction process.

• Punchlist – in addition to ongoing quality control, the contractor’s work will be reviewed for compliance with the contract documents near the completion of construction. A punchlist document will be generated listing those items of work which have been observed as incomplete or requiring correction before Final Completion may be declared and final payments authorized.

• Schedule – prepare and maintain a Master Project Schedule which incorporates all contractor activities, owner procured items, approvals, permits, and turnover to the end-user. Meetings are typically held with the general contractor and subcontractors to review 3-week or 6-week look-ahead schedules.

• Submittal, RFI, SK Review - review and provide insight on all submittals, RFI’s, and SK’s. We do not act as an intermediary to simply push paper. We act as an intermediary to filter the documents to make sure everything is warranted and properly clarified.

• Value Engineering – a technique in which the value of a system’s outputs is optimized by crafting a mix of performance and costs. In most cases this practice identifies and removes unnecessary expenditures, thereby reducing the value. We will work with the consultants and contractors to remove these unnecessary costs and put the money in places where it should be spent.

• Warranty & O&M Manuals – near the end of the project, we will gather and compile books of all applicable product manufacturer and workmanship warranties, along with all applicable operations & maintenance (O&M) manuals for the end-user. In residential construction, these can be put together to be turned over to the individual homeowner, the homeowner’s association, and/or the property management firm.

• Budget Development – creating and constant modification of the project development budget is a specialty of 3s. Having been involved in numerous projects from conception through operation has fostered a deep understanding of all the costs associated with and often overlooked in a project.

• Entitlements & Master Planning – complete project management of the complicated entitlement process which includes not only entitlement research and evaluation, but integrated leadership of the various parties involved in the entitlement process, such as land use attorneys, planning consultants, architects, City/County staff, and project partners.

• Implementation – full service development management for clients which seek to hand off the development related activities. Tasks include overall project and team coordination, and client reporting.

• Approvals & Permits – aid in the interaction with City/County departmental staff and various design team professionals to adequately secure the necessary project approvals and permits. Often project manager intervention is needed to facilitate the timely coordination of approvals.

• Design Team Selection – assist in the sourcing and evaluation of the critical team members for each project. Process can include creation of a full RFP for selection or leveraging the relationships of 3s and the project owner to form a design team capable of implementing the project’s goals and objectives.

• Cash Flow Management – in conjunction with budgetary management, 3s is capable of managing the cash flow and draw schedules for a project.

• Payment Requisitions – processing of pay applications, integration with banking draws, management of supporting documents, and reporting to the ownership entity in a periodic capacity.

• Peer Review Analysis – review of existing documents, systems, processes, and materials for clients who might need a peer review of an existing partner.

Martini House Closing

Napa Valley business news – The Martini House in St. Helena has announced it will close on October 30, 2010.  Pat Kuleto and Todd Humphries have run this three-star restaurant since 2002.

Apparently restaurateurs Brian Bennett and Paul Fleming (co-founder of PF Chang; also of Fleming’s Steakhouse) have purchased the property. All future plans are TBD.

The Martini House was (and is for a few more days) a great restaurant.  Other than myself, I’m sure many other Napa Valley residents have shared a wonderful meal there.

Related articles

• Napa culinary tidbits: Martini House to close this month, Pawlcyn branching out, Napa gets Dim Sum (uncork29.com)

Napa County building standards change January 1, 2011

New building standards, including changes to codes affecting residential, commercial, industrial and non-residential construction will go into effect in California and Napa County on Jan. 1, 2011. The Board of Supervisors have adopted an ordinance implementing the new 2010 California Building Standards Code.  This follows the Board’s action on Nov. 9, 2010, to approve some local amendments to the State Code.

“We suggested a short list of local amendments where we thought we could add clarity to the State Code; make the State standards more applicable to Napa County; enhance safety; or improve our procedures,” said County Conservation, Development and Planning Director Hillary Gitelman. “In recognition of the economic climate, the Board challenged us to consider only those local amendments absolutely necessary to improve safety, clarify procedures, or make our practices more consistent with other jurisdictions in the area.”

Darrell Mayes, the County’s chief building official, is most enthusiastic about a local amendment that will facilitate “get started” permits, allowing builders to phase projects so they can start construction sooner.

“We want builders who are applying for large project permits to be able to proceed with foundation work, for example, while the plans are still being reviewed,” Mayes said.  “Once Planning and Public Works have signed off on the location of the building, there’s no reason we can’t issue a ‘get started’ permit so the job can get under way.”

Mayes and County Fire Marshal Pete Munoa explained that, in most cases, the new State code includes requirements that are already in effect in Napa County, resulting in no changes for local builders.

“The biggest change is to require residential sprinklers, which we already require in Napa County, so that won’t really change what we do,” Mayes said.  The other changes are mostly organizational, with a new residential code and a new “green” building code called CalGreen, which had been completely voluntary up until now.

The California Building Standards Commission develops and adopts State building, fire and other related codes. The entire State building code can be found online at www.bsc.ca.gov. Information about code adoption and the Napa County building code can be found at www.countyofnapa.org/cdp.  For specific questions about the changes, call (707) 253-4417.

New Starbucks concept adding beer, wine and cheese

A very different kind of Starbucks has arrived. The pilot project located on Olive Way in Seattle’s Capital Hill area will serve regional wine and beer and offer an expansive plate of locally made cheeses in addition to the usual coffee offerings. Also, the barista bar has been rebuilt to seat customers up close to the coffee.

The place looks more like a cafe that’s been part of the neighborhood for years than a typical Starbucks and incorporates green design. If Starbucks executives have it right, this prototype could help them increase their evening business. Currently, U.S. Starbucks stores get 70% of business before 2 p.m.

After a three month renovation, the 10-year-old Olive Hill location morphed into a Starbucks that won’t look or feel like any Starbucks you know.  However, if this location is the hit executives are expecting, a version of it may come to a Starbucks in your neighborhood.

A green move

According to Arthur Rubinfeld, global development chief at Starbucks, each new company -owned store will be LEED certified. Meaning the design will meet tough sustainable, environmentally responsible design standards.  Also, the new designs won’t look like the Starbucks down the street. The colors are muted, lighting dimmed and the overall design low key.

This design concept won’t come cheap. If it is a hit, Starbucks could ultimately expand the idea to as many as half of its stores globally. A minor redesign can cost $25,000, while a new construction can exceed $400,000. Conceivably costing hundreds of millions of dollars.

The mission

If successful, the company that made a $4 cup of morning coffee common place will also become the hang-out-in-the-evening company, with mood lighting, comfortable furnishings and wine at up to $9 a glass.

Related articles

• Starbucks remakes its future with an eye on beer and wine (usatoday.com)
• The Starbucks of the Future: Drunk [Dystopia] (gawker.com)
• Starbucks mulling future with wine, cheese (msnbc.msn.com)
• “Starbucks of the Future” Arrives Today (seattlest.com)

Masdar, Abu Dhabi zero-carbon city

A $22 billion clean-energy city being built in the desert outside Abu Dhabi will no longer aim to produce all its own power. This revelation follows a wide-ranging review of the project that retools some of the project’s ambitions.

Plans originally called for Masdar City to become a self-contained “carbon-neutral” community of 40,000 residents and even more commuters. Cars would be banned. Waste and water would be recycled.

It is meant to be a marked environmental contrast to other cities in the Emirates, where fuel-guzzling SUVs and year-round air conditioning powered by fossil fuel are common.

The state company behind the city said Sunday the project now won’t be completed until at least 2020