Modesto Council approves $12.9 million Dryden Clubhouse renovation, green-fee increase and loan from water fund

The Modesto City Council unanimously approved a package of resolutions Dec. 9 to rebuild and expand the Dryden Golf Club clubhouse and make on‑course improvements, funding the $12.9 million project with insurance proceeds, federal ARPA dollars and an interfund loan.

Engineering Services Director Toby Wells and Parks official Jeremy Rogers told the council the project includes a modern one‑story clubhouse with a 130‑seat restaurant, an expanded pro shop and outdoor event space. ‘‘The lowest responsive and responsible bidder is DD Construction,’’ Wells said, noting the construction award would be for $8,591,263 with a $687,301 contingency for a not‑to‑exceed construction total of $9,278,564.

Why it matters: the project replaces a clubhouse destroyed by fire in 2020, increases course usability and is intended to generate revenue to repay the recommended 10‑year $4.9 million interfund loan from the water fund. Wells and staff said the funding plan pairs $4.6 million in insurance proceeds, $400,000 in ARPA funds used for design, golf‑fund revenue and the loan. Council documents put the overall project cost at about $12.9 million.

Council members pressed staff on repayment risk and whether the golf fund can cover loan payments. Vice Mayor Bavaro asked whether the $4.9 million loan (to be repaid over 10 years) and interest would leave a $490,000 annual principal obligation; staff replied the combination of increased green fees and anticipated revenue from dynamic pricing were expected to cover the payment. ‘‘Hence, the need for the rate increases,’’ Wells said, and the city’s finance team provided pro forma revenue estimates used in the recommendation.

The council also approved a not‑to‑exceed $850,164 agreement for construction management and inspection with Dylan and Murphy Engineering and a budget amendment to fund the project. As part of the package, the council approved raising green fees (the staff packet shows an approximate $5 baseline increase for a typical weekday 18‑hole round) and implementing a dynamic pricing model that staff said had produced about $80,000 in additional annual revenue in comparable implementations.

Public comment at the hearing was mixed. Several residents questioned spending and whether the clubhouse replaces the larger American Legion Hall; one speaker said the proposed facility ‘‘is not an exact replacement’’ for the 550‑person Legion Hall and urged caution about taxpayer costs. Other commenters urged the city to prioritize energy efficiency and river‑protection measures for the site.

The council approved five related resolutions in a single roll call: award of the construction contract to DD Construction, approval of construction management with Dylan and Murphy Engineering, authorization of the $4.93 million interfund loan from the water fund to the golf fund, a CIP budget amendment, and adoption of the green‑fee increase and dynamic pricing model. The vote on the package was unanimous.