[PPT] - Town Halls - Proposed Golf Cart Path Project December 2017 & PowerPoint Presentation

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Town Halls - Proposed Golf Cart Path Project December 2017 & January 2018

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Executive Summary 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

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Executive Summary 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

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DIC Board Chartered – First Meeting March 8, 2017

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Executive Summary 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

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Renovate a Valuable DIC Member Asset

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Executive Summary 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

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7 Options Developed and Extensively Reviewed

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Current Golf Cart Paths

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Golf Cart Paths: Failing & Safety Issue

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Golf Cart Paths: Failing & Poor Routing

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Golf Cart Paths: Failing & Drainage Issues

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Executive Summary

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

utdoor pool project was given top priority
Paths have reached their useful engineered life and must

be renovated – they are beyond repair

History of Golf Cart Paths

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Executive Summary

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

History of Golf Cart Paths

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What We Have Heard and Where We Are

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Executive Summary

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

What We Have Heard & Where We Are

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32% of Focus Group Participants – Non Golfers

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Executive Summary

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

What We Have Heard & Where We Are

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Focus Groups - 81% Favored Total Concrete – 12% Asphalt

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Executive Summary

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

What We Have Heard & Where We Are

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65% Favored Option A 22% Favored Option B

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Executive Summary

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

Other Factors Considered

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Direction Chosen – Bid Total Asphalt and Concrete Replacement

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Executive Summary Request for Proposals and Bidding Process

Request for Proposals

(RFP’s) were developed for the formal bidding process

Concrete and asphalt

were bid

4 National Golf Course

Renovation and Cart Path companies bid the project

Bids were submitted

October 1

Negotiated with 2 lead

bidders – reduced project cost

17 TABLE OF CONTENTS

1. SUMMARY AND BACKGROUND ............................................................................................. 2 2. PROPOSAL GUIDELINES ......................................................................................................... 2 3. PROJECT PURPOSE AND DESCRIPTION ................................................................................... 3 4. PROJECT SCOPE ..................................................................................................................... 4 5. REQUEST FOR PROPOSAL AND PROJECT TIMELINE ................................................................ 5 6. BUDGET ................................................................................................................................ 5 7. BIDDER QUALIFICATIONS ..................................................................................................... 6 8. PROPOSAL EVALUATION CRITERIA ....................................................................................... 6

REQUEST FOR PROPOSAL (RFP) DATAW ISLAND CLUB CART PATH RENOVATION PROJECT

DATAW ISLAND CLUB 100 CLUB DRIVE DATAW ISLAND , SC 29920 8/1/2017

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Executive Summary Tree 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

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Staff, Path Committee, County and Certified Arborist Engaged in Process

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Executive Summary Tree 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

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146 Trees for Potential Removal – Review Continues

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Executive Summary Tree Examples

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Executive Summary 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

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Executive Summary Bid Results and Project Cost

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Contractor Pricing-Items Landscapes Unlimited Environmental Solutions Southeastern Bennett 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

Diseased Trees $133,415 $133,415 $133,415 $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

Bid Results

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DIC Board Recommends Project with Landscapes Unlimited as Preferred Contractor Landscapes Unlimited Bid is Not to Exceed (NTE)

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Executive Summary Landscapes Unlimited

Golf course construction and renovation
Lincoln, Nebraska based: 41 Years in business
Completed over 1800 golf course projects with a value
f $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

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Executive Summary Landscapes Unlimited Projects

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Dallas TX National Dallas, TX Broadmoor County Club Colorado Springs, CO Sandy Lane Resort St. James, AL Fiddlesticks Country Club Fort Myers, FL Sea Pines Country Club Hilton Head, SC The Walker Course Clemson, SC The Reserve at Lake Keowee Sunset, SC

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Executive Summary Project Funding

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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

ffset operating shortfalls and are not used for

capital projects or renovations.

Definitions

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DIC Reserve Funds

$13,500 of the $17,500 initiation fee and a portion
f 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.

Definitions

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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

Definitions

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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 How Do We Fund the Project?

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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.

How Do We Fund the Project?

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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

How Do We Fund the Project?

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$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

How Do We Fund the Project

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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

How Do We Fund the Project

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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

How Do We Fund the Project

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Summary

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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)

Summary

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Replacement of a Valuable Asset

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Executive Summary What’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

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Thank You for Your Support and Attention

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Questions

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