It's going to be difficult to accomplish overhead lighting without free standing lights or building an arbor and incorporating lights.

You may be able to incorporate lighting into your deck on the lower portion to light the walking spaces and Malibu lights into the yard.

The wood deck would be removed and a structure built.

Looks like a job for an architect or design/build firm to me. I'm a little concerned that you have an unfenced pool. Is that legal where you are?

We had the same issue with our home. Added a pergola over the deck with two outdoor ceiling fans which keeps it cool and helps keep bugs away. Planted wisteria which now covers the entire pergola in just a few years so it is totally shaded and beautiful. Also lots of landscape lighting including on the deck posts and white Christmas lights mounted to the underside of the pergola which is perfect at night.

I agree with Groveraxle--hire an architect, get some prelim. design work, based upon HOA research and code research and then get some prelim pricing from a GC Assess the viability of your design program vs. budget and then modify if necessary and move toward permit plans and construction. Often times, if you work with a Design Build firm, if they provide the design resource, you only have access to the design work if and when the project is fully executed. Working with an architect gives the home owner a say in and control over the design, independant of GC involvement. Also, consider a bath and changing space in this room you will create, like a cabana, if you don't have a bath that is accessible directly from the outside of the house. Consider how the room will be used throughout the year, based upon your climate. It may need to be more substantial in terms of energy code compliance if you are at elevation or in the northern half of the U.S. and plan to use it year around. Perhaps a separate structure at the south end or west side of the pool would be a good location, as the structure would be far enough away from your deck to not cast a shadow, You could add in Nana sliding doors or roll up garage doors to gain that 'open' feeling, have a vaulted ceiling with suspended fans to circulate the air, the cabana bath and a changing room, with a small kitchenette, if allowed, and furniture that will allow you to use it as a guest house, when necessary. It would be a fun project to work on. Here is a variety of visual aids for you. Some styles are a miss from the exterior, yet have interesting interior ideas

Hi tiff_decker!

Since the sun is always shining and you have a nice large backyard, using a NanaWall system to seamlessly connect the indoor and outdoor spaces is a great idea. Visit our website at www.nanawall.com for countless styles, options and to learn about unique ways a NanaWall system can be used.

A NanaOutdoor Room might be the perfect solution for you. Be sure to check them out here: http://www.nanawall.com/photolibrary?page=2

The operable glass walls can be left open or closed!
http://www.nanawall.com/photolibrary?page=2