Town Halls - Proposed Golf Cart Path Project December 2017 & January 2018 - Proposed Golf Cart Path Project December 2017 ...
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Town Halls - Proposed Golf Cart Path Project
December 2017 & January 2018 1
Agenda
• Committee Introduction
• Current Golf Cart Paths
• History of Golf Cart Paths
• What We Have Heard & Where Are We
• Project Detail & Cost
• Bidding Process and Contractor Selection
• Funding the Project
• Summary
• Next Steps
Executive Summary 2
Golf Cart Path Renovation Committee
• Keith Aspray
• Ted Barber
• Ted Bartlett
• George Beck
• Doug Douglas (DIOA Liaison)
• Bill Fox
• Brian Hollingsworth
• Dutchy Lewis
• Noel Mears
• David Muehl
• Lori Murdaugh
• Mike Sullivan
DIC Board Chartered – First Meeting March 8, 2017
Executive Summary 3
What is the Problem?
• 12 miles of asphalt golf cart paths which are an
integral part of a key DIC member owned asset:
– Used for managing golf cart traffic on the 2 golf courses
(50% member participation)
– Used for recreational purposes (sightseeing, walking,
jogging, biking) during non-golfing hours
• The golf cart paths are failing at an accelerating rate
• Continued deterioration is detrimental to the golf
courses and the community as a whole
Renovate a Valuable DIC Member Asset
Executive Summary 4
Goals of the Golf Cart Path Project
If the golf cart paths are renovated, the project must:
• Create a member friendly solution that is safe, value
added and attractive
• Effectively route paths to remove unnecessary curves
and under utilized paths
• Identify & install cost effective paths that are low
maintenance
• Utilize a material that is durable and cost effective
with long useful life
7 Options Developed and Extensively Reviewed
Executive Summary 5
Current Golf Cart Paths
6
Golf Cart Paths: Failing & Safety Issue
7
Golf Cart Paths: Failing & Poor Routing
8
Golf Cart Paths: Failing & Drainage Issues
9
History of Golf Cart Paths
• Original 12 miles of asphalt paths constructed in 1985 &
1991
• Current paths are 32 & 26 years of age
• Golf Course Builders Association: Asphalt path life
expectancy is 15 years
• 2011 & 2012 significant repairs made to paths to extend
useful life during course renovations
– Plan was to rebuild the paths during the golf course renovations,
but loan requirements stopped the project
– A 2nd effort in 2015 to renovate the paths was put on hold as the
outdoor pool project was given top priority
• Paths have reached their useful engineered life and must
be renovated – they are beyond repair
Executive Summary 10History of Golf Cart Paths
• Substantial repairs made in 2011 - $246,000
• Asphalt sealant applied in 2012 to extend life 5-7
years - $48,000
• 2017 budget for patching/repairs is $10,000 and has
been deferred
• Issues today: Pot holes, cracking, drainage, crumbled
edging, smoothness and root damage
• Current repairs are a temporary solution with full
renovation as the long term solution
Executive Summary 11What We Have Heard and Where We Are
12What We Have Heard & Where We Are
• 7 materials options, pros & cons, costs reviewed with
110+ Focus Group participants (May/June 2017)
– Do nothing (maintenance/patch mode)
– Partial concrete/asphalt with “scatter”
– Crushed shell/sand mixture/stone
– Partial concrete with crushed shell/sand mixture
– Polypavement, Flexipave, etc. (pervious materials)
– Asphalt (total replacement)
– Concrete (total replacement)
• Emails from Members with options to consider
32% of Focus Group Participants – Non Golfers
Executive Summary 13What We Have Heard & Where We Are
Estimated Cost Summary Presented @ Focus Groups
• Do nothing/patching - $300 k per year for 3- 5 years:
Total $1.5 M
• Partial concrete & scatter $1.7 – $1.95 M
• Crushed shell/sand: $1.7 - $1.9 M
• Partial concrete with shell/sand: $2.1 – $2.3 M
• Polypavement, Flexipave: $2.5 - $3.3 M
• Asphalt – Total Replace: $2.2 – $2.8 M
• Concrete – Total Replace: $2.3 – $2.9 M
Focus Groups - 81% Favored Total Concrete – 12% Asphalt
Executive Summary 14What We Have Heard & Where We Are
• 3 funding options developed and presented
– A: $5/month dues increase (10 years);
balance from allocated reserve funds
– B: One-Time $600 assessment; balance
from allocated reserved funds
– C: $300/year dues increase (10 years);
remaining balance from reserves
65% Favored Option A 22% Favored Option B
Executive Summary 15Other Factors Considered
• 30 clubs in the area were surveyed and 78% have
concrete/asphalt paths
• 4 clubs visited with various materials used for paths
Callawassie - Asphalt
Berkeley Hall - Concrete
Long Cove – Overlay Asphalt
Colleton River – Concrete with shell/sand mix
• Superintendents were questioned regarding best
material for maintenance and longevity – concrete
preferred
Direction Chosen – Bid Total Asphalt and Concrete
Replacement
Executive Summary 16Request for Proposals and Bidding Process
REQUEST FOR PROPOSAL (RFP)
• Request for Proposals DATAW ISLAND CLUB
CART PATH RENOVATION PROJECT
(RFP’s) were developed
for the formal bidding
process
• Concrete and asphalt DATAW ISLAND CLUB
100 CLUB DRIVE
were bid DATAW ISLAND , SC 29920
• 4 National Golf Course 8/1/2017
Renovation and Cart Path TABLE OF CONTENTS
companies bid the project 1. SUMMARY AND BACKGROUND ............................................................................................. 2
• Bids were submitted
2. PROPOSAL GUIDELINES......................................................................................................... 2
3. PROJECT PURPOSE AND DESCRIPTION ................................................................................... 3
October 1 4.
5.
PROJECT SCOPE..................................................................................................................... 4
REQUEST FOR PROPOSAL AND PROJECT TIMELINE................................................................ 5
• Negotiated with 2 lead 6. BUDGET ................................................................................................................................ 5
7. BIDDER QUALIFICATIONS ..................................................................................................... 6
bidders – reduced project 8. PROPOSAL EVALUATION CRITERIA ....................................................................................... 6
cost
Executive Summary 17Tree Strategy
• Golf Course design guidelines – tree removal within 5
feet of path
• Project guidelines – remove only hazardous or
encroaching – all potential trees not removed
• Certified Arborist reviewed all trees for disease and
hazards (stress cracks, leaning, trip hazard, utility
encroachment)
• Goal is to protect the future path work from long term
root damage
• Ongoing root pruning will be required due to limited tree
removal
Staff, Path Committee, County and Certified Arborist
Engaged
Executive in Process
Summary 18Tree Strategy
• Tree Survey: 146 Trees significantly impacting cart
paths:
– No Live Oaks to be impacted
– Pines: 95 trees causing major path issues
• 44 hazardous/51 healthy
– Laurel/Water Oaks: 44 causing major path issues
• 38 hazardous/6 near end of life
– Balance: 7 other types (Sweet Gum)
– Limited tree removal – future damage is possible
• Aggressive root pruning to mitigate future problems
146 Trees for Potential Removal – Review Continues
Executive Summary 19Tree Examples Executive Summary 20
Project Execution and Timeline
• Project start date: August 6, 2018
• Completion date: December 31, 2018
• Process begins with old path incorporation
• Grading and drainage improvements
• New concrete paths formed and installed
• Sod installed as each hole is complete
• 3-5 holes closed to play to accommodate work
• Any tree work to begin prior to construction
Executive Summary 21Bid Results and Project Cost Executive Summary 22
Bid Results
Contractor Landscapes Environmental Southeastern Bennett
Pricing-Items Unlimited Solutions Paving
Mobilization $220,000 $10,000 $30,000 $7,875
Cart Path Work $1,689,877 $2,295,506 $2,240,554 $3,239,958
Sod $342,000 $67,162 $107,000 $335,916
Drainage $76,005 $64,176 Not included Not included
Root Pruning $37,500 $15,400 Not included Not included
Testing included $35,000 Not included Not included
Total-Concrete $2,365,382 $2,487,244 $2,377,554 $3,556,748
Landscapes
Diseased Trees Unlimited
$133,415 Bid is Not$133,415
$133,415 to Exceed (NTE)
$133,415
County Mitigation $41,020 $41,020 $41,020 $41,020
Fill Dirt $57,600 $57,600 $57,600 $57,600
Contingency $150,000 $150,000 $150,000 $150,000
Total-Concrete $2,747,417 $2,869,279 $2,760,589 $3,938,783
Total-Asphalt $2,823,150 $3,916,818 Not Bid $3,461,830
DIC Board Recommends Project with Landscapes
Unlimited as Preferred Contractor 23Landscapes Unlimited
• Golf course construction and renovation
• Lincoln, Nebraska based: 41 Years in business
• Completed over 1800 golf course projects with a value
of $2.5 billion
• Constructed 250 new golf courses which included path
systems
• “The Cart Path Company” – subcontractor for concrete
path system
• Recent local projects: The Landings - Skidaway Island,
GA; The Oaks – Osprey, FL; Quail West – Bonita
Springs, FL; The Atlanta Athletic Club – Johns Creek, GA
Executive Summary 24Landscapes Unlimited Projects
Fiddlesticks Country Club Fort Myers, FL
TheCounty
Broadmoor WalkerClub
Course Clemson,
Colorado SC CO
Springs, The Reserve at Lake Keowee Sunset, SC
Sea Dallas
Pines Country
Executive Summary
Club Dallas,
TX National Hilton Head,
TX SC Sandy Lane Resort St. James, AL
25Project Funding Executive Summary 26
Definitions
Settlement funds
• When Alcoa (developer) turned assets over to Dataw
Island Club members, the exit settlement awarded
to the DIC was close to $5 million dollars. Approx. $4
million in cash plus the sales center building.
Use of Settlement Funds
• When Alcoa departed, the Club was operating at an
annual loss of close to $500,000. The Club uses the
Alcoa settlement funds to subsidize dues and cover
the operating loss. These funds are only used to
offset operating shortfalls and are not used for
capital projects or renovations.
27Definitions
DIC Reserve Funds
• $13,500 of the $17,500 initiation fee and a portion
of Base membership dues are allocated to the DIC
reserve fund. These funds are used for Capital
improvements and the long term renovation and
renewal of DIC assets. On average we spend
$750,000 per year on capital improvements to DIC
assets. The 2017 year end reserve balance is
projected to be $2,362,000.
28Definitions
One Island Concept
• All resident members as of June 2001 are club members.
• Club members own all of the assets of the Club
• All sports amenity facilities and assets are owned by the
members even if not participating in a sports package
• DIC Bylaws state all assessments are borne equally by all
club resident members.
• Long term maintenance and upgrading of club facilities
adds value to real estate on the island and provides a
competitive advantage
• Country Club members cannot be assessed since the
memberships are callable and they do not own the assets
29How Do We Fund the Project?
Concept
• Provide viable financing options for completion of
cart path renovation/replacement project
• Use a portion of current & future reserve
contributions to service a loan. Reallocates what we
currently put into Reserves from Base dues
Minimize the financial impact to members
30How Do We Fund the Project?
Actions to date
• In 2014 we began allocating a larger portion of Base
dues to Reserves for future capital projects.
• New membership plan & long range budget originally
projected approx. $20/month of base dues allocated
to Reserves, however, the allocation was increased to
$34/mo in 2016 and $36/mo in 2017.
31How Do We Fund the Project?
Basic Data
Assumes Cart Part Project Cost of: $2,750,000
Borrow @4-5% for 10 years $2,000,000
Use from Current Reserves $ 750,000
Total Funding $2,750,000
15 Year Amortization / 10 year estimated payoff
- Loan paid off by year-end 2027
32How Do We Fund the Project
$5/month member assessment
• 2018 Base Dues allocation to reserves increased to
$40/month/member
– $20/month to Reserves based on original projections
– $20/month to loan repayment
• Continue to increase Base Dues @ the Taskforce
recommended rate of 5% until DIC operates at
breakeven
• $5/month/member additional base dues assessment
($60/year) which goes directly to loan repayment
33How Do We Fund the Project
Monthly Base Dues 2017 2018
Base Dues $317 $333
$5/mo Assessment $ 0 $ 5
Total Base Dues $317 $338
• $5/month assessment continues for 10 years
• $60/year = $600 over 10 years
34How Do We Fund the Project
Bottom Line Impact
• Negligible as the Base dues to Operations does not
change from the original plan
• Reserve Balance by year end 2027 is projected to be
approx. $3.5 to $4 M when Cart Path loan is paid off
• Other Capital Projects not impacted and we are still
maintaining a reserve balance above the original 10
year plan
35Summary
36Summary
• DIC Board and Committee Recommending Project
Approval
– Replace current paths with concrete (cost effectiveness)
– Project start date of August 6, 2018
– ~5 month project completion with rolling hole closures
– Investment protection: drainage improvements & limited
tree removal
– Budgeted cost of $2.75 M; Project is in Price Range
Expected
– Funding:
• Bank loan of $2 M at 4-5% for 10 years
• Balance of project cost from Reserves
• Dues increases of $5/month/member for 10 years ($60/year)
Replacement of a Valuable Asset 37What’s Next?
• Committee will work with LU to further value engineer the
project (costs and benefits)
• Tree canopy review continues requiring county’s feedback
(balance asset protection and island’s beauty)
• Final review with DIC Board in January 2018
• Ballots to be mailed to DIC Members in January 2018
– Annual DIC Meeting February 2018
– For project to proceed requires >50% approval from
voting members
The DIC Board supports this project and recommends that
members Vote Yes
Thank Executive
You for Your Summary
Support and Attention 38Questions
Questions: cartpathproject@islc.net
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