You would remember that we introduced a âdouble-swardâ inter-seeding ... POA at the current levels and the required
PRETORIA COUNTRY CLUB GREENS RESURFACING PROJECT APRIL 2018
NOTICE OF A SPECIAL GENERAL MEETING APRIL 2018 AGENDA 1. 2. 3.
NOTICE OF THE MEETING ATTENDANCE AND APOLOGIES PROPOSED REPLACEMENT OF GREENS’ SURFACES AND IMPROVEMENT OF GREEN PROFILES 3.1 3.2 3.3 3.4
4.
Chairman’s Address Chairman of Greens Committee Address Presentation of the selected Contractor Presentation of Financing Model
TO ASK IN TERMS OF SECTION 23.3 (AS APPROVED AT THE AGM OF JUNE 2017) OF THE CONSTITUTION OF PRETORIA COUNTRY CLUB THAT NOT LESS THAN TWO-THIRDS OF THE MEMBERS ELIGIBLE TO VOTE AND PRESENT AT THE MEETING APPROVE A MOTION WHICH MANDATES THE MAIN COMMITTEE TO INCUR THE NECESSARY EXPENDITURES TO REPLACE GREENS’ SURFACES AND IMPROVE GREEN PROFILES AS PER THE PROPOSED FINANCING MODEL AS PRESENTED IN 3.4 ABOVE
3.1 CHAIRMAN’S ADDRESS
STRATEGIC BUSSINESS PLAN
The following points have been extracted from the Strategic Business Plan in support of the Main Committee’s proposal to resurface green complexes. It is of utmost importance to any business that major Capital Improvements are proposed as part of a structured business plan to ensure sustainability thereof. Vision The Pretoria Country Club’s vision is to be the country club of choice for the residents of the greater Pretoria area who require an outstanding bowls, golf, squash and tennis experience supported by a unique social and family environment. “Our objective as Main Committee is to create an enhanced family experience for members at Pretoria Country Club that is interactive, co-operative, effective, powerful and most importantly fun” Long Term Goals and Objectives 1) Maintain total membership above 2000 with more focused increase on sectional growth. 2) Increase member participation with emphasis on inter-sectional activities by members. 3) Improve financial sustainability by increasing reserves to the value of 6 months operating expenses and sufficient capital to address critical risk factors. 4) Develop a sufficient Strategic Marketing Plan that is realistic and sustainable with the main objective to add value to membership. 5) Optimize the site by introducing a site development master plan to improve service delivery and to ensure sustainable additional income statements. 6) Develop a sustainable sponsorship model that aligns with the Strategic Marketing Plan and complements the PCC brand image and Corporate Identity.
STRATEGIC BUSSINESS PLAN
Strategy of Main Committee 1) 2) 3) 4)
Maintain financial stability and increase reserves equivalent to six (6) months operating expenses. Maintain a top 50-rated golf course, including practice facilities. Grow membership in each section to full utilization of the respective facilities. Optimise communication mediums across entire membership base to ensure effective participation of all members in all sections of the club. 5) Improve social media communication to the benefit of all members. 6) Maintain a demographic representative membership profile within the immediate surroundings of PCC to ensure continued viability of the club with special focus on young members and families. 7) Use best governance and management techniques to ensure best of breed management outcomes. 8) Ensure capital expenditure is spent in accordance with the constitution of the club to ensure that members enjoy best possible facilities and environment. 9) Use best of breed management principles to monitor and improve execution of plans to meet strategic objectives. 10) Maintain top class facilities by developing a long-term Capital budget for all sections.
3.2 CHAIRMAN OF GREENS COMMITTEE ADDRESS
EXECUTIVE SUMMARY - THE NEED TO UPGRADE Upgrade of Greens Complexes For some time now, the Main Committee has been consulting with various companies in the golfing industry, including our golf course maintenance company and professional consultant, Johan Jansen van Vuuren, on the state of our greens’ playing surfaces. As all our golfing members are aware, our greens during winter deteriorate to a point that notwithstanding extensive horticulture practices, we have not been able to produce decent playable green surfaces. We have known, since the first Tshwane Open in 2015, that our green surfaces are not up to standard and that a sustainable solution is required for this problem. You would remember that we introduced a “double-sward” inter-seeding program in 2016. Now in the third year of inter-seeding, some of the greens are much healthier than before but other greens did not respond well to the programme. The programme alleviated some of the problems and at least ensured that reasonable putting surfaces could be maintained during summer months on most of our greens. We have been advised that the full ‘recovery period ‘ required by the program is 5 to 6 years (up to at least 2021). This is too long. The state of the greens, the infestation rate of POA at the current levels and the required wait for another 3 years (the inter-seeding program), simply cannot be offered to members that pay a substantial amount of money for annual subscriptions. Also considering that our greens are nearly 15 years old (compared to the expected life span of 10 to 12 years accepted in the industry), it has now become imperative that we must address the state of our greens. Furthermore, we aim as part of our Strategic Business Plan to present the best facilities in Gauteng to all our members and that must include our devotion to produce a top quality golf course throughout the year. The golf course is the heartbeat of PCC and is therefore paramount this asset requires top attention.
THE NEED TO UPGRADE
Why do we have to upgrade our green complexes? Resurfacing greens is typically done in situations where the design of the course is not altered, but from a playability point of view the golf course may be in desperate need of improvement, i.e. deteriorating playing surfaces need to be addressed. Resurfacing is most often done to green complexes either because of the excessive infestation of unwanted grasses or because of the desire to change from one type of grass to another. The widespread use of new Bent variety grasses which will replace a Bent/Poa combination infested green, has led to many resurfacing projects in South Africa currently. The alternative to resurfacing, is to inter-seed greens with these newer varieties (engineered to be stronger than the Poa grasses) to ensure decent playing surfaces throughout the year. Although this is common practice in golf clubs where “double-sward” greens are present, this practice takes long to establish and to produce optimal results. Noticeable improvements are often only experienced between 48 – 72 months after implementation depending on weather conditions and green profiles. Another important factor that leads to resurfacing greens, is when the rootzone of your green profile has changed over years to the point where healthy maintenance practices no longer produce healthy turfgrass growth. This happens when either excess amounts of surface organic matter is present in the rootzone or when the Perch Water Table cannot supply the turfgrass with enough reserve water due to simply being “out of reach” for the roots. According to Jim Moore, director of Construction & Education at the USGA’s Greens Division, it’s not uncommon for maintenance staff to see as much as six inches of topdressing sand built up during a 20-year period of older greens.
THE NEED TO UPGRADE
When to Resurface? Resurfacing is usually called for when putting quality is no longer acceptable due to the invasion of other grasses or maintenance practices of the existing turf become ineffective because of climate issues or rootzone difficulties such as poor internal drainage. Loss of turf quality on Bent/Poa grass greens is normally an early sign of the need to resurface. As mentioned above, one major reason why turf generally struggles to survive harsh conditions, is the limited access to reserve water gathered by the Perched Water Table. A Perched Water Table in a rootzone with an average thickness of over 450 mm, is simply too deep. How to Resurface? Depending on the age of the greens and their original construction methods, resurfacing can take many forms. If the course is a “classic” design that should retain the original contours, care should be taken to accurately record the shape and contours of the greens. Some resurfacing projects can be done by spraying out the older turf, stripping it away and planting new grass on the existing surfaces. In our case where layering is evident and the rootzone is too deep, the resurfacing requires excavation of several inches of material and an increase of the gravel profile to re-establish the required rootzone. Benefits of Resurfacing The major objective is to create a playing surface that is consistently rolling well and playable all year round, irrespective of winter or summer. Great greens are an essential element of a premier golf course and therefore it makes sense to resurface green complexes when the need arises. In the last few years chemical applications and spraying programs have improved and it has become possible to extend the life span of a POA free Bent green.
STATUS QUO ANALYSIS
PCC greens with Poa infestation in 2015
STATUS QUO ANALYSIS
In late August last year we dug a hole on the back of the fifth green to inspect the green profile of this problematic green. We found that the profile was not consistent and did not match the profile of a USGA spec green. We also found the green to be extremely moist suggesting that we may have a drainage problem. We decided to conduct the same exercise on all the greens. Methodology used and confirmed in a photo album 1st Photo shows the depth of the profile before hitting the gravel used for drainage. 2nd Photo shows a general view of the hole profile. 3rd Photo shows the thickness of the layer that has been built up since the previous resurfacing.
PROJECT SCOPE
EXTENT OF REQUIRED WORK (As listed in Request For Proposal) The current grass surfaces of all the greens are to be lifted and sods are to be removed and be made available to the Club’s maintenance service provider.
All of the growing medium in the greens on holes’ number 5, 11, 12, 15 and 16 must be removed and may not be re-used. New silica sand (submitted for approval to the Club) will be supplied by the Proposer after appointment (referred to as “Contractor” below) for these greens. The growing medium on these greens will be reconstructed to a minimum depth of 300 mm with a tolerance of 25 mm.
The top 100mm of the growing medium in the remaining greens (1, 2, 3, 4, 6, 7, 8, 9, 10, 13, 14, 17 and 18) must be removed and discarded. The remaining “clean root zone” on these holes must be removed from the cavities up to the depth where the intermediate layer is present, without contaminating the root zone material and stored on site. The sand must be sufficiently covered and protected because it will be used as the growing medium after the drainage alterations specified below.
The intermediate layers must all be removed and discarded.
After the removal of the growing mediums the current green drainage systems are to be opened and flushed to ensure that proper drainage of the newly established greens will occur. Inspection points are to be installed on all greens to enable regular flushing of the drainage systems. When the Contractor is satisfied that the drainage is performing as is required in accordance with industry standards, the Contractor shall draw and submit an “As Per Built” plan of the drainage system of each green to the Club. This plan shall clearly indicate all the pipes, the flush points and drainage outlets of the greens and shall serve as a guarantee by the Contractor that the drainage systems are functioning as is required by said industry standards, at the time of the submission of the plans.
PROJECT SCOPE
The Contractor shall provide and install additional gravel to ensure that there is provision for a root zone layer which does not exceed or is less than 300mm (subject to a 25 mm tolerance) in the green cavities. After the installation of the additional gravel the gravel layer may exceed the depth of gravel layer described by USGA specifications.
The Contractor will select the gravel based on the particle size distribution of the root zone. The particles of the root zone will be measured after removal thereof and the size of the gravel then selected, is such that the size of the largest 15 % of the root zone particles corresponds to the smallest 15 % of the gravel particles to create smaller voids so as to prevent the migration of root zone particles into the gravel layer whilst maintaining adequate permeability.
After the establishment of the gravel layer, the Contractor shall fill the greens on holes 5, 11, 12, 15 and 16 with new silica sand that complies with USGA specifications (currently silica sand from Green’s Sands are being used) up to a depth of 300 mm with a 25 mm tolerance. The remaining greens must be filled with the previously removed “clean sand” as stated in clause 3.3 above up to a depth of 300 mm with a 25 mm tolerance, in order for the greens surfaces to tie in with the existing perimeter grass.
The Contractor shall ensure that the root zone mix is moist when it is spread to prevent migration thereof into the gravel.
The new root zone material must be compacted, floated, levelled and shaped by an experienced person (“shaper”) to ensure that the original contours of all of the green complexes are maintained. The shaper shall also ensure that surface water drainage of each green is sufficient to the satisfaction of the Club. The Contractor will provide the name and details of the shaper in the proposal. Page 12 of 78
A plastic interface (wicking barrier) must be provided and installed between the green and collar surfaces to ensure that – the Kikuyu grass from the surrounding collars surfaces does not grow into the greens; it prevents moisture from being drawn from sandy root zones into fine textured soils typically found in putting green surrounds. Moisture drawn from the edges of putting greens and collars can result in severe drought stress to turf in these areas.
PROJECT SCOPE
This plastic interface must consist of clear plastic of 0.50 mm in thickness and must be installed to a height of 300 mm below the surface of each green. 3.13. The root zones of all greens must be fumigated with methyl bromide if available or an alternative product approved by the Club, to ensure a sterile growing medium and to kill off the Cynodon roots and Poa Annua Seed that might still be present in the growing medium. A corrective starter fertilizer must be applied and mixed into the growing medium according to the recommendations of the Club, which shall be based on the soil analysis. The growing medium must thereafter be prepared for seeding. Seed is to be provided by the Contractor and only seeds obtained from an accredited dealer may be used, approved by the Club and always securely stored as per industry standards. The following seeding processes will be used: The recommended seed mixture to be used is the Bent cultivars 007 (50%) mixed with Tyee (50%) commercially available as “DOMINATOR”. The Contractor may suggest an alternative seed mixture and if so, must submit a detailed motivation for its recommendation. Seeding will be done with a drop seeder in two directions at the rate of 500 grams per 100 square metres in each direction (thus a total of 1kg per 100 square metres). After seeding, the Contractor is obliged to compact the entire greens surface with a “SandPro” and then cover it with a “Crop Cover” until 4 to 5 days after seed germination. Once the Crop Cover is removed, the greens are to be sprayed with a recommended fungicide (6-7 days after germination). The Club will be responsible for the growing-in of the greens after the seeds have been covered with “Crop Cover”. The Contractor must consider the growing in period in the determination of his milestones (the Programme).
GREENS RESURFACING METHODOLOGY
1
• Remove top layer (sods) from all greens and discard • Course to remain open for play. • Temporary greens to be ready when a green is under construction
1
2
• Remove Entire root zone from all the greens. • Discard rootzones taken from 5,11,12,15 & 16 • Discard 100mm of root zone in balance of greens and retain the rest
2
3
• Remove intermediate layer from greens where present • Opening and flushing of existing drainage • Install flush points and outlets • Re-level of gravel to cavity profile • Install new gravel to greens to required depth (new gravel intermediate layer)
3 SGM - April 2018
GREENS RESURFACING METHODOLOGY
4
• Install plastic interface • Re-install clean sand, stored adjacent to cavities • Install new USGA spec silica into cavities of hole 5, 11,12,15 and 16.
4
5
• Rotovate, probe, level and compact growing medium • Maintain the current design of the greens
5
6
• Fumigate and cover
6 SGM - April 2018
GREENS RESURFACING METHODOLOGY
7
• Float out greens to gradients confirmed by 2m survey
7
8
• Seed bed preparation
8
9
• Seed
9 SGM - April 2018
GREENS RESURFACING METHODOLOGY
10
• Light roll and cover
11
12
10
11
12
• Track in seed
• Grow in
SGM - April 2018
TENDER PROCEDURE
The Greens Committee compiled a 77 page detailed tender document that consisted of the following information: 1. 2. 3. 4. 5. 6.
Tender specifications and tender rules Scope and Extent of Request for Proposal Contractual Terms PCC Greens and Soil Profile Report Quantity Surveyor’s Report Bill of Quantities
Main Committee invited three (3) Construction Companies to tender. They were all approached on 20 March. Tender proposals closed on 5 April at 17:00. Golf Data did a course inspection prior to submitting their proposal. Both Golf Data and Southern Turf Management presented detailed proposals in line with the Scope of Work as is described in the Request For Proposal. The Matkovich Group submitted a two page letter stating that they did not agree with the proposed methodology. They proposed one of two alternative solutions. Resurface the greens without disturbing the drainage system or apply new cultivation and cultural practises. They did not give any indication on costs. After receiving the proposals, a tender adjudication process was conducted by our consultant to ensure that contractors tendered on the same basis and in accordance with the Request for Proposal document. Golf Data and Southern Turf Management were thereafter provided with further questions for clarification and invited to appear before an adjudication panel on 17 April. The panel made a recommendation to EXCO and after careful deliberation, EXCO identified the successful contractor on 18 April. This decision will be presented to the Main Committee for review and approval on 24 April. Once the Special General Meeting approves the project on 25 April, the approved contractor will be appointed.
NEW GREENS IN PLAY
GROW IN BEGINS
PROJECT COMMENCEMENT
PROJECT PROGRAMME
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
NOVEMBER
CONSTRUCTION – 9 WEEKS
1 DEC 2018
1 JULY 2018
GROWING IN - 14-16 WEEKS
3.4 PRESENTATION OF FINANCING MODEL
FINANCING MODEL
In accordance with PCC’s Strategic Business Plan and the stringent financial control measurement in the Constitution (article 23), we have the following financial guidelines governing Capital Expenses that can be spent: 1. Develop a realistic medium and long term financial decision-making model that optimizes and represents a simplified performance of the financial assets of PCC. The model is to ensure PCC’s financial viability and sustainability through sound business planning and controls that facilitates early detection and deviation to agreed plan. 2. Improve financial sustainability by increasing reserves to the value of 6 months operating expenses and sufficient capital to address critical risk factors 3. The Committee shall for each financial year allocate a minimum of 70% and a maximum of 80% of the operational profit after tax of the previous financial year for expenditure on capital related items intended for improving and/or maintaining the Club’s facilities. Any additional expenditure shall only be allocated with the approval of the majority of members present at an annual or special general meeting of the Club. The Committee shall at the end of a financial year distribute the remainder to a reserve fund for meeting unexpected costs or emergencies that may arise. If the above is applied to the project funding model is proposed:
1. Estimated project cost 2. Loss of revenue • Playing fees (60%) • Loss of revenue in Pavilion and Halfway Total Cost
R 1 792 000 R 495 000
R 2 700 000 R 2 287 000 R 4 987 000
FINANCING MODEL Strategic Business Plan Principles Cash on hand (11 April 2018) Less: 6 month’s operating expenses Less: Operating Leases Shortfall before Project commencement
R11 233 425 R11 296 732 R 499 000 R 562 307
Payment of construction cost Capital Budget 2018 Contractor cost 2018/19 from Capital budget 2019 Reserves contribution Contractor cost:
R 700 000 R 500 000 R 1 500 000 R 2 700 000
Provision for loss of revenue Loss in revenue estimate: Less: Member’s contribution Shortfall through the Income statement 2018/9
R 2 287 000 R 2 024 100 R 262 900
FINANCING MODEL Considering the above, the Project will be funded as follows: 1. Construction fees from reserves and normal Capital budgets for 2018 & 2019 2. Provision for loss of revenue through a member contribution. It is proposed that the different categories of golf members will contribute as follows:
Member Sub Categories No of Members
Levy
Total Levies
Juniors
132
600
79 200
Students
89
600
53 400
19 to 34 Full Members/Hon Members
168
1 500
252 000
607
2 500
1 517 500
Life members
11
1 000
11 000
25 years plus
111
1000
111 000 2 024 100
FINANCING MODEL
The following will also apply: 1. 43% (22 of 52 weeks) of the rounds pre-paid will be carried over to 2019 with the provision that affected members pay the reduced green fees (see 4 below) during the construction period 2. Members will be allowed debit orders for the required contribution (1 July 2018 to February 2019) 3. The golf course will be open throughout the construction period 4. Members will pay R100 green fees and their guests R150 for 18 holes during the 22 weeks’ construction period 5. Increased competition fees, prizes and sponsorships will form part of the drive to reduce loss of revenue impact 6. Entrance fees for new golf members will be re-introduced to the value of 50% of the annual golf subscription fee commencing 1 March 2019 to ensure that new members also contribute
FINANCING MODEL
In Closing: The cash “safe margin” will be reduced to less than a five month operating cost, but the Main Committee will focus to restore this safe guard to six months in coming years. We understand and remain committed to ensure that we maintain robust capital strength which is of paramount importance for unforeseen expenses (such as the urgent rehabilitation of the dam wall project last year). But for now, the most important asset of the club needs our urgent attention and focus. We are confident that the project will have positive future impact on revenue from member and visitor rounds alike, in coming years. THEREFORE, WE NEED YOUR APPROVAL TO EXCEED THE ALLOWABLE CAPEX PERCENTAGE FOR THE 2018/9 FINANCIAL YEAR TO PROVIDE A FURTHER EXPENDITURE OF BETWEEN R1 500 000 TO R1 800 000 THE ESSENCE OF YOUR DECISION TONIGHT MEANS THAT THE CLUB PROCURE BRAND NEW GREENS
THANK YOU FOR ATTENDING THIS EVENING’S SPECIAL GENERAL MEETING. PLEASE DRIVE HOME SAFELY!!
