February 2009 Greens Committee Report

January 2009 Revenue is up 17% over 2008.

Annual memberships are up by six over the same period in 2008.

Then we experienced the FIRE on Sunday afternoon February 1st:

-          The golf course maintenance building and most of its contents were destroyed.

o   Most of the fertilizer and chemicals stored in the basement survived – an investment of near $60K.

o   The Bobcat, front end loader/backhoe and dump truck were not damaged.

o   Several pieces of maintenance equipment stored under the lean to on the East side of the main building survived but their exact condition are not known because our insurance company has not released the building to us.

Since the fire Steve, Pam, Derrick and their people have been working towards identifying exactly what was lost and its value (The Bogey). During the same time Steve and Derrick have been soliciting bids to demolish the old building and construct a new one.

WHAT WE KNOW

We have $100K insurance on the maintenance building, $15K on its contents (personal property) and $10K of demolition insurance - with a $5K deductible on the building and $5K deductible on personal property.

We are underinsured in some areas – most notably in “personal property” (includes minor equipment and mechanics tools at the maintenance building) and at the Yacht Club. Pam is working this issue for us.

Estimates to demolish the existing building, replace the building including a concrete pad, electrical, water and sewage hookups; construct  office space, break room and bathroom; replace  minor equipment (shovels, rakes, ice machines, furniture, generators, weed eaters, chain saws, etc.), mechanics tools; and purchase a hazardous material storage and disposal facility ranges upward of $150K - $175K. A complete inventory of “personal property” lost in the fire is available in Steve’s office.

The total replacement value of “personal property” is estimated at $51,884. ($38,189 in minor equipment and $13,695 in mechanics tools).

Deducting what is expected from insurance ($115K) our total loss (THE BOGEY) is in the $30-$50K range. These numbers may change a bit but are very good for planning purposes.

The old maintenance building has not been released by our insurance company so we are restricted in what we can do until they have completed their investigation(s).

-          The Daphne Fire Marshal, State Fire Marshal and ADEM have completed their investigations.

-          Daphne told us they were unable to identify the source of the fire. ADEM gave us a clean slate for potential contaminants at the site. This is good news as we will not be required to call in HAZMAT personnel.

-          Our insurance investigator identified the Coke machine as the “source” of the fire. It is our understanding that he will/has hired an electrical engineer qualified in fire inspections to do further evaluations. We expect the building to be fully released within 30 days, however this could be complicated if Coke decides to do further investigation(s).

WHAT HAS BEEN DONE?

Immediately after the fire:

Pam established a special “catch” account to capture all costs associated with the fire.

Derrick and Steve identified the absolute minimum maintenance equipment needed to continue golf operations and made arrangements to have that equipment on site within the first week. We must realize this condition cannot continue past the middle of March when the grass begins to grow and demand attention.

Arrangements are being made to terminate the current equipment lease and establish a new lease.  To date three bids have been received and are being evaluated (John Deere, Jacobsen and Toro have responded). It appears the new lease will run around $9,000/month. This is up from around $6,000/month on the current lease but includes several additional pieces of equipment that was “owned” by Lake Forest that will be added to the lease.

New computers with software for the maintenance office and irrigation system has been purchased, programmed and are up and running. This was fully insured under the EDP policy.

Bids to construct a 50’ X 80’ maintenance building have been requested. Several bids have been received and are being evaluated.

(It is expected the new building will be located immediately to the West of the present building and utilize the existing concrete pad in that area. (The pad will be expanded to accommodate the new building). This will lower the profile of the building and allow utilization of the existing concrete pad as an outside storage area).

Bid requests for temporary storage facilities containing work spaces for maintenance personnel are out with responses expected soon.

WHAT REMAINS TO BE DONE?

Complete the process.   We feel we are at the 75% (research and planning) point now and expect to be at 95-100% by the March stated meeting.

Once the old building is released to us a demolition contract will be let. A coordinated effort to replace the building, construct office and work spaces within and repopulate the building with minor equipment and mechanics tools will be commenced.

A detailed time line will be developed soon which will be implemented and monitored when the building is again ours.