Beside greens, bunkers on a golf course are the most noticed feature by players and television viewers. Well-defined and maintained bunkers can add to the manicured look of golf courses at all levels. Likewise, bunkers that have been neglected can detract from all other properly manicured areas on the golf course. Bunkers come in all different shapes and sizes. They may have different colored sand depending on what part of the world they are in. Bunkers can have sod faces or they may be flashed with sand. They can be well-defined or they may have a more natural look. No matter what the intended design of a bunker they will require routine maintenance and regular renovation to replenish sand, ensure proper drainage, and consistent playability over time. A master plan can help golf courses determine what level of bunker maintenance is ideal for their property and circumstances. A Reserve Study can help golf courses to plan for the costs associated with proper bunker maintenance and renovation.
            The USGA provides standards for bunkers including when the sand should be replaced, life expectancy for bunker drainage, and the type of sand that should be used in bunkers. The USGA recommends replacing 4-6 inches of bunker sand every 5-7 years. This sand should be of the angular to sub-angular variety and fall within the parameters set by the USGA. This can be determined by reviewing a sieve report from the sand supplier. There are many factors that can influence frequency of sand replenishment. Some of these include weather, amount of play, the type of bunkers, maintenance practices, course standards, and intrusion of fine soil material from around the edges of the bunkers. Some golf courses choose to replace 1-2 inches of sand yearly to maintain a fresh appearance each season. There can be many approaches to bunker sand replenishment. It will vary widely from course to course, based on the previously listed factors; however it should never be overlooked in course maintenance.
            According to the USGA total bunker renovation should be expected every 5-10 years. This recommendation is based on being concurrent with sand replacement. While this may make sense in some cases, it is not always practical for some courses. Many times it may be cost prohibitive. Total bunker renovation can have a significant cost, and would include replacing all drainage and bunker liner systems in place. Some golf courses may choose to phase bunker renovations. An example would be doing 6 holes of bunkers every 5 years. A course may choose to focus on problematic bunkers first and renovate them more frequently. Another option may be renovating greenside bunkers more frequently than fairway bunkers. These decisions are often cost motivated, but do not mean that all bunkers should not be renovated over time.
Maintenance practices can dramatically affect life expectancy of bunker sand, drainage, and liner systems. Routinely flushing out bunker drainage, for example, will extend the life of bunker drainage systems. Hand raking versus mechanical bunker raking may increase life expectancy of bunker sand and liner systems. These maintenance practices do have increased cost, particularly labor, and will need to be balanced with renovation costs.
Other considerations for renovating bunkers include new technologies or working with an architect to redesign bunkers. This may include reshaping, returning to original design specifications, eliminating bunkers, or reducing bunker sizes. Two newer technologies that are becoming more prevalent are Better Billy Bunkers and Capillary Concrete. These systems allow for rain water to penetrate through the bunker profile while helping to hold the bunker sand in place. Both technologies eliminate the need for traditional liner systems. Although their initial cost will be higher, they can substantially reduce maintenance costs by reducing washouts in heavy rain conditions. They can also potentially extend the life of bunker sand by reducing intrusion of silt during heavy rain events. The goal of bunker redesign and the use of newer technologies are to reduce the cost of bunker maintenance and allow for more consistent bunker playing conditions.
All golf courses should have bunker renovation as part of a master plan to routinely update and renovate bunkers. The cost associated with bunker renovation is high and should be planned in advance through a Reserve Study. Some costs to consider are redesign, continuing maintenance, sand sourcing, trucking of materials, drainage replacement, and upgrading to newer technologies. Whether they realize it or not, all golfers notice bunker conditions, and no one likes poor bunkers conditions or the “fried-egg” lie.

- Eric Dixon, Golf Club Reserves

It is that time of year again, time to prepare the next year’s reserve budget.  Should you hire a Professional Reserve Analyst or simply review the previous year’s budget for any obvious changes?  If the board of directors does not have a clear picture of which Reserve Components should be reserved for and access to the latest funding methods of meeting these goals, then we say they are not meeting their fiduciary responsibility to the members.  Here are five reasons to ask for help:

1. Preserve The Value of your Property
One of the after-effects of the recent banking meltdown is a change to the way we buy or sell community association property. It is all but impossible to get any Federal Mortgage program to participate in a mortgage without a Reserve Study being part of the closing documents.  Many banks and private lenders in the private sector are now requiring a reserve study to ensure they are making a wise investment.  Would you buy a property that came with thousands of dollars of debt because an assessment for a major repair was pending?  Do you think you could sell your property with a pending assessment?  Think about how marketable your property would be if it had built-in equity because of a healthy reserve balance.

2. Remove The Liability From The Board of Directors
Preparation and updating a Reserve Study is a tremendous responsibility for the board of directors. This certainly is one area where the board should seek professional advice. Statutes § 718.112 requires condominium associations to fund a reserve account for certain capital expenditures and deferred maintenance. The statute requires all condominium associations to maintain reserves for roof replacement, building painting, pavement resurfacing and “any other item for which deferred maintenance expense or replacement cost is expected to exceed $10,000.” See Fla. Stat. § 718.112. These rules are more ridged and specific than what the law requires for HOA’s. For the purpose of this discussion, we will focus primarily on condominium associations in Florida.
 
It is ultimately the board’s responsibility to determine and maintain the reserve needs of the association.  In many cases, the phrase “any other item for which deferred maintenance expense or replacement costs is expected to exceed $10,000,” is either overlooked or simply ignored by the association to prevent fees from increasing. Items commonly excluded from the reserve budget include, but are not limited to, gutters, fencing, interior finishes, exercise equipment, pool resurfacing, pool equipment, patio furniture, automatic gates, etc. By consulting with a Reserve Specialist, a board of directors can avoid future liability and sometimes devastating financial issues.  A Reserve Specialist will supply the association with an inventory of all applicable items that an association can reserve for, as well as recommendations on how to fund the reserve budget. It is then up to the members to decide whether or not to fully fund the reserve account.

3. Understand Funding Options
In order to determine the reserve needs of the association, the board must accurately present the funding computations to its members.

The Component Funding Analysis, commonly referred to as “Straight-Line” calculates the annual contribution amount for each individual line item component by dividing the component’s remaining unfunded balance by its remaining useful life. A component’s unfunded remaining balance is its replacement cost less the reserve balance for the component at the beginning of the analysis period. The annual contribution rate for each individual line item component is then summed to calculate the total annual contribution rate for this analysis. Straight-line accounting is based on current costs and either interest or inflation is factored into the calculations. Using this funding method, every account is restricted to the item listed.  Here the allocation of existing reserve funds dictates the annual reserve requirement. This should never be the case, the expenditures should ALWAYS dictate the annual reserve requirements.
 
The 30 Year Pooled Cash Flow Funding Plan is a method of calculating reserve contributions where contributions to the reserve funds are designed to offset the variable annual expenditures from the reserve fund. This analysis calculates the future replacement costs for reserve components, the date the component is due for replacement and recognizes increases in construction costs as well as interest income attributable to reserve accounts. Funds from the beginning balances are pooled together and a yearly contribution rate is calculated to arrive at a positive cash flow throughout the analysis period. The Cash Flow method will provide an association with flexibility and the luxury of looking at the “big picture” by providing a 30 year plan which accounts for interest income and inflation. In the author’s opinion, the Cash Flow method is the obvious superior funding method. Using this plan the expenditures will dictate the annual reserve requirements.

4. Realistic Replacement Costs
The first step after identifying the Reserve Components to be funded by the association is to determine their useful life and current cost. The greatest casualty to a reserve budget often occurs when a high dollar reserve component expires earlier than expected. If the replacement cost of that pre-mature item was accurately forecasted by the association’s reserve fund, the damage will be significantly minimized to your members’ wallets or purses. Your Reserve Specialist will update each reserve component with the most accurate replacement cost, taking into account current codes and industry changes that can affect the replacement cost significantly. For example, the cost of obtaining a new roof today will be much higher then when the building was constructed. Technology changes, materials last longer and are more expensive and there may be HVAC equipment on the roof needing to be lifted. Unlike your operating budget, Reserve Components can be very unpredictable as there are many variables that may come into play. A Reserve Analyst will provide this information to the association and ultimately reduce the risk of a special assessment.

5. Annual Updates
Many associations avoid consulting with a Reserve Analyst when determining the association’s reserve funding simply because of the initial cost to the association. The cost of the initial reserve study is always more expensive due to the data collection and initial analysis required to be completed. In the following years however, the study can be updated for a fraction of the original cost. As long as there are no major changes to reserve items, the study can simply be updated without the expense of another site-visit. It is recommended that a site visit be completed every 3-4 years. It also does not hurt to ask for a better price — most companies are willing to work with the board as they want your business!

- Brad Felten, PRA

The value of our reserve study is based on our experience, accuracy and the detail that will be included in the custom report. Our process begins with a meeting between our golf course and facilities experts and all operation managers that are on the property daily. This includes the General Manager, Golf Pro, Director of Grounds, Superintendent, Director of Golf, Kitchen Manager and any other employee who is considered a managing partner. We can also include a Green Committee Chair, Club Owners, Chairman of the Board or any other person who has a vested interest in the Club. This will help us determine a base line for the report and give us detailed information needed to customize the report. From there we will perform a complete facility inspection including buildings, equipment and all features of the golf course.  Our golf course expert, who has many years of hands on experience in the golf course industry , will spend time with the Club’s Golf Course Superintendent or Director of Grounds and look at the maintenance facility, equipment fleet, irrigation system, drainage and all critical elements on the golf course. Our facilities expert will inspect all other areas of the property including all internal and external building components for replacement and upgrade needs.

Our report will include detailed descriptions and recommendations of the most important items in the reserve study and also photos of all items in their existing condition. Our golf course expertise allows us to give very accurate information including accurate pricing of equipment, facility upgrades and golf course renovation projects. This is why we specialize in golf course reserve studies and stand alone in our experience we are bringing to the project.

The value of a Reserve Study document for use in long-term planning is determined by its accuracy and attention to detail.

During the custom Golf Club Reserve Study process the property’s Golf Course Superintendent plays a critical role. The reserve study begins with meetings between on-site property managers, club owners, and the Golf Cub Reserves team. The Golf Course Superintendent will help determine all of the factors on the golf course property that will be included in the reserve study. This will include short-term renovation plans, long-term renovation plans and periodic replacement of all golf course features and equipment. Some of these features include:

• Irrigation Systems (pipes, pumps, controllers, heads, etc.)
  
• Maintenance Facilities
  
• Equipment Fleet
  
• Greens, Tees, Fairways & Bunkers
  
• Ponds
  
• Cartpaths
  
• Landscaping
  

The golf course property and golf course maintenance facilities & equipment will often make up about 70% or more of the expenditures in the reserve study report. It is the most critical element in determining the long term cost of ownership for the golf course property.

The Golf Course Superintendent having such influence on the custom reserve study is important because he or she will have all of the records from golf course construction. They will also have the knowledge to help determine how and when golf course features need to be upgraded to make the best decision for the property owner. Utilizing their expertise is an important part of the process.

The Golf Course Superintendent will also be familiar with the maintenance facility and the equipment fleet. They will help determine current age of the equipment fleet and also replacement options. The Superintendent will have an opportunity to express any future needs as well.

Once the reserve study is completed the Golf Course Superintendent can utilize the document to develop more accurate operational and capital budgeting reports each year. They can also determine a timeline for larger renovation projects based on when funding will be available. The reserve study will help with communication between the Golf Course Superintendent and the ownership or management.

Let Golf Cub Reserves show you how our Golf Club Reserve study can benefit the Golf Course Superintendent!