*    California GCSA Spreading the Word!

*    California Chapter Team Competition

*    2007 Hospitality Suite

*    2007 CGCSA Annual Conference

*    CGCSA Government Relations

*    California Dept. of Ag. Enforcement

*    Job Opportunities

*    GCSAA News

*    Member's Profile

*    California Superintendents in a man's world.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

California GCSA President, Bruce R. Williams, CGCS has been the guest speaker at the San Diego GCSA November membership meeting and the January 2007 GCSA of Northern California membership meetings. The topic of his speech "California GCSA An Association of Associations." He discussed the Mission and Vision and Goals of the California GCSA. President Williams presentation can be viewed on the California Web Site: >>>>Presentation.

"The House of Blues"
1530 S. Disneyland Dr. Anaheim, CA, 
Thursday, February 22, 2007, from 6:30 - 9:30 PM.
2007 California Hospitality Suite Sponsorship / Online Registration Form

If you desire a sponsorships! Sponsorship can be accomplished; Online, by telephone, or with an Affiliate Representative on the California GCSA Board of Directors, Bill Culbertson and Andy Slack.

Proposed CARB Regulations concerning off road equipment. This will affect all equipment distributors in California as well as all current golf courses throughout the State. Please get back to me as soon as possible with any comments that you may have. Please pass this Alert to anyone that may want to know.

The California Department of Agriculture has developed the New Enforcement Policy( ERP) to ensure equal enforcement across the state: 

Fine categories are set by classes:

Class A: $500-$5000 fine - an actual environmental or health hazard
                                      - a repeat class B violation
Class B: $250-$1000 fine  - a reasonable possibility for an environmental or health hazard
Class C: $50- $400    fine  - at the inspectors mercy
***** Repeat violations within 2 years fall into the next higher category
***** For significant priority episodes, District Attorney participation is encouraged

You receive a free copy of the final report for completing the survey—a $100 value and .25 service points! Use this report to reference how your salary, benefits and operational budgets compare to peers in the industry. 

Your response may also help provide a free report to your chapter.  Any chapter that has at least 50% if the eligible members respond, or for those with a response rate that is 15% or more than in 2005, will receive a free report that is specific to the chapter!

This report will include the following categories:

Base salary of all superintendents 
Base salary of Class A superintendents 
Base salary of Certified superintendents 
Base salary at private, daily fee, semi-private, government operated, and resort courses 
Base salary at 9, 18, 27 and 36 hole courses 
Base salary by annual maintenance budgets 
Average salary by level of education 
Average age 
Average hours worked per season 
Assistant Superintendent base salary 

For more information, you can link to: >>>more info.
 

     The return of Jesse Creencia has been made official, as far as the SNGCSA is concerned, when he took up as he left off with involvement for the Association, by hosting the Sierra Nevada GCSA Annual Holiday Party at Cameron Park.. It was a sad day when the news spread that Jesse had left us for the Gulf state of Florida, taking the position of District Manager for One Source Golf and Landscape. This had him overseeing the maintenance and construction of The Villages Golf Courses in Central Florida. Nine months and 14 hurricanes later, Jesse jumped at the chance to return to California when the job at Cameron Park opened up. 
     Jesse has had a storied career so far, preparing for no less than 8 PGA tournaments while at Torrey Pines. Torrey is one of only two municipal facilities to host such an event. It was during his seven years there that Jesse was able to add CGCS to his business card in 1994. Switching from notable muni to secluded private was a jump Jesse made when he took over the reigns at Del Paso CC in Sacramento, where he spent 8 out of the last 10 years. 
     Like so many others in this business, golf courses weren't Jesse's first choice as he embarked on his career path. Being a lover of the outdoors, he was attending Cal Poly University Pomona, and (the best Cal Poly according to Jesse) following the curriculum for Forest Ranger studies. When it became evident that Forest Rangers were more interested in law enforcement than interpreting the national forests, Jesse changed his mind and courses after working part-time through college at Hacienda CC. The rest is history as he has been working golf courses and parks ever since. 
     Cameron Park sprang up during the golf boom in the early 60s. Burt Stamps was the designer who laid out the 6500 yards of golfing pleasure through the foothill topography. Jesse is enjoying learning the particular challenges to the foothills like red clay soils, persistent grassy weeds like dallisgrass and knotgrass. He really likes the springs that can show up anywhere when the water tables rise. He also must deal with excessive trees and the associated shade problems that result in sun-hungry turf. 
     Helping Jesse cope with golf course problems, or perhaps helping him forget golf course problems is Jesse's blushing bride of 25 years, Elizabeth. Together they have teamed to raise four children. Oldest, Brian, is a junior at UCSD, while Richard is a junior at Placer High. The girls are Brigitte, who rides the bus with Richard to Placer as a freshman, and "our baby", Tarrah currently attending the 6th grade at Bowman School. 
     Jesse is in heaven right now as most of his favorite pastimes are currently in season. Watching the NBA, NFL and doing a little snow skiing gives some enjoyment through the winter. Summer may find him fishing and following the PGA.
     The course looks a little different if you haven't seen it for a while, due to bunker renovations and forward tee construction. The future may hold driving range and practice facility construction projects. Helping Jesse learn the ropes at Cameron are his Assistant, Phil Stamborsky, a two-year veteran and his crew of 19 (peak season) and 13 (winter). Jesse says the crew is fairly new, but doing an excellent job. 
     Jesse describes the Cameron Park golf experience as a short course with small greens.

Article by Sean O'Brien

Candice Combs CGCS, the superintendent of Torrey Pines South course, hosted The 2007 Buick Invitational, and in 2008 the U.S. Open.
Candice has reached the GCSAA's highest level of certification (Certified Golf Course Superintendent), and proudly wears the CGCS as part of her job title.

Nancy Dickens CGCS, was another California superintendent, but has move to become the superintendent of Westin Kierland Resort in Scottsdale, Ariz., and head agronomist for Troon Golf.

Both Candice and Nancy were very active in their local superintendents chapter, both held the Office of President and both served on the California Golf Course Superintendents Association Board of Directors. Nancy also served as President of the California GCSA

GCSAA Webcast Series

GCSAA's live education webcasts will be 90 minutes long and will take place at the computer of your choice. 
To increase the event's interaction, we recommend the use of a microphone, but you can ask questions and participate using the text chat feature.
Visit the system check today to learn more about what's required and test your system, free of charge.

02/01/07      Foliar Fertilization and Your Putting Greens Mgmt.                          10:00 AM 
02/06/07      Managing Geese on the Golf Course                                                    5:00 PM 
02/15/07      How do I know if I have Herbicide Resistant Weeds?                      10:00 AM 
03/08/07      Using Excel to Enhance Your Operation 2007                                     2:00 PM
03/15/07      So What's the Big Deal with Organic Matter in Bentgrass Greens? 12:00 PM 

For Details; visit the GCSAA Web Address: http://www.gcsaa.org/education/webcast/webcast.aspx
Or call Kyle Kreighbaum 800-472-7878 x5167
 

Golfers have high expectations for the courses they play. They watch professionals putt on glass-like greens in tournaments all over the country and they want the same experience. To maintain quality turf effectively, you have many choices when it comes to reel-mower attachments and options. Some of the more well-known reel-mower options are:

Number of blades 
Roller type 
Roller scrapers 
Turf penetration devices 
Each attachment provides different results depending on situations and course conditions. Exploring each option will give you an idea of what to expect from each.

NUMBER OF BLADES 
The number of blades on a reel affects several key factors when mowing including clip rate, efficiency and height of cut. When choosing how many blades your reel mower should have, consider your performance expectations.

Four- or five-blade reels 
Use a mower with four- or five-blade reels on golf-course roughs and other informal areas. 

Six-, seven- and eight-blade reels
These options are most frequently chosen for grooming golf-course tees, approaches, fairways and other low-cut formal areas.

Ten- or 11-blade reels
Ten- or 11-blade reels typically manicure golf-course tees, fairways, approaches, greens and other formal areas that require a low cut. Space between blades and the diameter of the reel determine the ranges of height of cut for these machines.

The length of grass that a mower can effectively cut and discharge is lowered when the number of blades increases and the space between the blades decreases. In other words, the shorter you cut turf, the more blades you'll need, and the less space between the blades, the better. For example, the suggested height of cut range is higher for a four-blade model than for an 11-blade model.

Clip rate is also affected by the number of blades. Lower clip rates provide you with a more desirable appearance after the cut and can also make a surface that is much smoother for play. You should consult your operator's manual for a suggested height-of-cut range and mower speed to utilize the capabilities of your mower.

ROLLERS 
Mechanical rolling did not gain popularity in the United States until the mid-1980s; but once the machines reached American courses, superintendents readily integrated them into their routines. Superintendents who are trying to balance healthy turf and fast greens should strongly consider rolling their greens rather than lowering mowing heights.

The density of turf often makes it necessary to add a roller to the front of your reels. By doing this, you can improve the mower's effective height of cut and increase turf penetration. There are three main types of rollers that you can use, depending on your needs and expectations of the turf.

Grooved roller 
Because of the multiple contact points that result from the grooved roller surface, these rollers offer the maximum penetration of turf.

Swaged roller
Swaged rollers penetrate the grass surface less because only the outer edges of the roller (rather than the roller's center) make contact with the turf.

Full roller
This roller penetrates very little into turf. It's best used when mowing more stubborn turf that tends to "pop up" after being rolled.

It is important to choose the roller that gives you the best penetration for your turf. Turf areas with a thatch layer especially need to be maintained with a roller attached. 
 

Also keep in mind that sand, soil and grass clippings often build up on rollers during mowing, which negatively affects a mower's possible height of cut.
To combat this, you should keep a careful eye on your rollers and consider using a roller-scraper option or a roller-cleaning-brush option if this is available. The need for roller scrapers or roller cleaning brushes increases when you're faced with wet turf conditions.

TURF PREPARATION DEVICES 
Turf-preparation devices work with rollers to literally stand the grass up for maximum results in cutting and to decrease the buildup of thatch, grain and sponginess. Rollers tend to force turfgrass blades to lay down, so these devices are particularly useful because they help the grass stand back up.

With more courses being converted each year to more modern turfgrass cultivars, mowing equipment must be capable of cutting lower and grooming better than ever before. Turf preparation devices provide superintendents with more options to be able to build a tailored management plan for maintaining their turf. A few turf preparation devices are:

Combs
Combs are mounted behind the roller and used to raise grass up to assist in cutting and to minimize grain formation. Combs are the least aggressive option among your turf preparation device choices.

Brushes
Rotating or fixed brushes are more effective than combs at brushing up grass. Brushes are mounted behind the roller and are designed to decrease the tendency of grain formation. Brushes lift the grass blades into the reel and allow them to be cut cleanly. Brushes can be used with walking or riding mowers.

Turf groomers 
The most aggressive of the preparation options, groomers use several small, rotating blades to stand grass blades up and cut horizontally growing grass stems. Turf groomers promote healthy vertical growth of turf. Turf groomers also allow you to increase green speed without lowering the height of cut. This leaves the turf healthier - an additional benefit of turf groomers.

Sweepers 
Sweepers are used as an attachment to collect cores left behind by aeration on undulating greens and uneven terrains. 

Collar pipes
The collar pipe was invented by a superintendent who simply was looking for a way to eliminate scalped collars. A collar pipe serves like a point on a compass and eliminates cutting problems associated with an operator who may not do the same pass each and every time.

All five of these options fit directly onto the reel-mower unit. There are special-purpose units that fit in place of the reel unit itself. Two special-purpose units are:

Dethatching reels
Dethatching reels are designed similarly to turf groomers. The main difference is that their blades are nearly the same diameter as that of a regular reel blade. The blades rotate, severing stolons and throwing thatch to the surface for disposal. Dethatching helps maintain healthier grass with less grain while providing a smoother mowing and playing surface. When you remove thatch, you also reduce the use of fertilizer and water because your turf experiences less runoff.

Spikers
In situations where you may need more penetration into the soil surface, you can use spikers. A spiker unit has several rotating blades that act like daggers to pierce the surface. The openings created by the spiker then allow for quicker access by water or chemicals to the root systems of the turf. This process allows turf to respond much quicker to the applied substance.

When you are cutting as low as 1/16 inch, you need a tailored management program for your turf. With these options, you can choose what best fits your needs and make corresponding decisions. When properly installed and applied, these items can help you maximize the potential of each piece of mowing equipment you own, creating an environment where their golfers can have the best experience possible.

By Todd Kierstead, Todd is a product manager with Jacobsen, a Textron Company (Charlotte, N.C.)
 

The Air Resources Board (ARB) is considering a rule that would impact companies that own off-road diesel equipment and vehicles like forklifts, scrapers, graders, backhoes and skid steer loaders and operate it in California.  The rule is scheduled to be considered by the ARB in April 2007.  Staff plans to hold workshops to discuss the proposed rule and solicit input on it in February 2007.  A brief summary of the proposed rule follows. 

All fleets would be required to report their affected equipment to ARB.  Then, annually, as vehicles are repowered, replaced, or retrofit, the changes must be reported to ARB.

All fleets would be asked to meet fleet average emission rate targets for particulate matter (PM).  Large and medium fleets would also be asked to meet fleet average emission rate targets for oxides of nitrogen (NOx).  The targets decline over time, requiring fleets to reduce their emissions as time goes on.  In order to meet the fleet averages, fleets have the option to retrofit their vehicles with verified emission control devices, repower them with cleaner engines, or replace them with cleaner vehicles (new or used).

If a fleet is unable to meet its PM target, it can instead retrofit 20% of its fleet per year with verified diesel emission control devices.  If a fleet is unable to meet the NOx target (for example, because it has a lot of older, dirtier vehicles), it can instead turn over 10% of its fleet per year.  To meet the turnover requirements, fleets may repower their dirtiest vehicles with cleaner engines, replace their dirtiest vehicles with cleaner vehicles (either new or used), designate some of their vehicles as low-use vehicles, or use rental vehicles in place of the dirtiest vehicles.  The rule never requires a fleet to turn over more than 10% of its horsepower in a year, nor to apply exhaust retrofits to more than 20% of its horsepower. 

Finally, the rule would require that operators of off-road diesel vehicles shut down their vehicles rather than idle for more than 5 minutes, unless such idling is necessary for proper operation of the vehicle.
 
 
 

TREES are very important parts of most golf courses. Many golfers will protect trees with a zeal matched only by their love for the game itself. This blind affection for trees can result in poor judgment or misguided priorities in tree planting and maintenance programs. Proper planning and maintenance often become secondary as the emphasis is placed on planting more and more trees. This philosophy often leads to hasty decisions with new plantings, resulting in poorly positioned trees that consist of species that may not be well suited for the golf course or the particular planting site. This can create immediate maintenance headaches with the trees and will likely lead to future agronomic problems with the turf. The lack of a good preventative maintenance program also is apparent at such golf courses, as many of the existing trees have structural problems or poor growth form and appearance.

Golf courses with good reputations for their tree plantings realized long ago the value of a comprehensive program to care for existing trees and properly plan for new tree plantings when and where they become necessary. Those efforts have paid off handsomely with balanced age classes of healthy, well-formed tree species and a minimum of tree-related agronomic problems. This article will examine strategies that can be used to develop the foundation for a good tree maintenance program, and examine specific pruning practices that can be used to maintain healthier, more attractive trees and help rectify agronomic problems.

>>>>Complete article.

By James Skorulski
Reprinted from the USGA Green Section Record
1996 March/April Vol 34(2): 1-7
 

"Faced with increasing, competitive pressure in the marketplace, the effects of wear and tear, changes in clientele and technological advances, successful golf course managers have responded by electing to remodel their facilities," Muirhead explains. "Part of a smart remodeling plan is the development of a long-term master plan. Having a master plan in place allows clubs to adopt and implement a thoughtfully-conceived and financially-responsible blueprint for the future of the facility that
provides continuity during committee turnover and stability in the budget process. 

"One of the most important benefits of the master planning process for course decision-makers is the realization that the various components of a golf course each have a life expectancy. Course managers are wise to consider the 'life cycle' of their golf course components, paying particular attention to recurring costs of items like irrigation, drainage and sand bunker construction," he continues. 

"These items have specific life expectancies, thereby enabling prudent managers to plan ahead for eventual replacement. Doing so maintains course integrity, improves the user experience and can even save money in the long run."

Muirhead noted that ASGCA now offers a brochure, "Master Planning: Questions and Answers," that can help golf course managers, superintendents, professionals and owners understand the process of developing a master plan and the importance of assessing the typical life expectancies of golf course components. ASGCA has also produced two other publications that can help clubs who are investigating the planning process:  a one-page chart that lists golf course component "life cycles" and a brochure titled "The Remodeling Process:  Questions and Answers." Each year, ASGCA also presents several "Remodeling University" programs, designed to educate course decision-makers about the intricacies of course remodeling, including planning, financing and execution. 

These free brochures and more information about Remodeling University may be obtained by calling;
ASGCA at 262/ 786-5960, emailing at info@asgca.org, or writing to ASGCA, 125 N. Executive Drive, Suite 106, Brookfield, WI 53005.
 

Presented by the GCSAA 

     As winter starts to give way to spring-like temperatures, the desire to hit the golf course intensifies. It also signals a change in golf course management activities that can affect one's game and the conditions found on the course. 

Key points: 

1) Frost is basically frozen dew that has crystallized on the grass, making it hard and brittle. A grass blade is actually 90 percent water, therefore it also freezes. 

2) Walking on frost-covered greens causes the plant to break and cell walls to rupture, thereby losing its ability to function normally. 

3) When damaged, the putting surface weakens and becomes more susceptible to disease and weeds. 

4) One foursome can leave several hundred footprints on each green, causing extensive damage. 

5) A short delay while the frost melts can preserve the quality of the greens and prevent needless repairs. 

     In many regions of the country, golfers occasionally face frost delays in the spring, thus pushing back starting tee times. When frost is present golf course superintendents delay play until the frost has melted. This is done to prevent damage that affects the quality of the playing surface and could potentially be very expensive to repair.

     Frost is basically frozen dew that has crystallized on the grass, making it hard and brittle. A grass blade is actually 90 percent water, therefore it also freezes. Because of the short mowing height (sometimes as low as 1/8 inch) and fragile nature of the turf, putting greens are most affected by frost. Walking on frost-covered greens causes the plant to break and cell walls to rupture, thereby losing its ability to function normally. When the membrane is broken, much like an egg, it cannot be put back together.

     Golfers who ignore frost delays will not see immediate damage. The proof generally comes 48-72 hours later as the plant leaves turn brown and die. The result is a thinning of the putting surface and a weakening of the plant. The greens in turn become more susceptible to disease and weeds. While it may not appear to be much of an issue if a foursome begins play early on frost covered greens, consider the number of footprints that may occur on any given hole by one person is approximately 60. Multiply that by 18 holes with an average of 200 rounds per day and the result is 216,000 footprints on greens in a day or 6,480,000 in a month.

     As golf enthusiasts superintendents do not like to delay play, but they are more concerned about turf damage and the quality if conditions for the golfer. Frost also creates a hardship on a golf facility's staff as all course preparations are put to a halt until thawing occurs. Golf carts can cause considerable damage, therefore personnel cannot maneuver around the course to mow, change cup positions, collect range balls, etc.

     One technique employed to reduce possible frost damage is to raise the cutting height of mowers to create a hardier surface. It may also be possible to reroute play to holes where the frost melts more quickly. But regardless of these methods, the best medicine is for all to understand the hows and whys of the delay and in turn gain a greater appreciation for the golf course. It would also be wise to give the course a phone call before heading out to play to see if tee times have been pushed back due to frost.

For more information regarding golf course maintenance and etiquette, contact your local superintendent or the Golf Course Superintendents Association of America at 800/472-7878 or www.gcsaa.org.

The freezing temperatures that occurred in early May resulted in widespread frost damage to trees and shrubs in many parts of Lower Michigan. Although damage in a around Lansing was relatively minor, I observed some significant damage to landscape trees in our test plots at MSU's Southwest Michigan Research and Extension Center (SWMREC) near Benton Harbor. The low temperature at SWMREC dipped to 27°F on May 3 (Figure 1). 

Since most trees and shrubs had broken bud by that point, the freeze resulted in textbook examples of late frost damage (see photos). Late frost damage is characterized by browning or wilting of new shoot growth and flowers. Plants that were injured at SWMREC were swamp white oak, bur oak, pin oak, scarlet oak, honey locust, weeping mulberry, redbud, and taxus. Red maple, sugar maple, Crimson king Norway maple, and golden globe arborvitae were not damaged. One of the ironies of late winter injury is that trees adapted to relatively cold regions may be more affected than trees from more southern locations. Since trees from northern latitudes have adapted to a short growing seasons, they break bud quickly once temperatures begin to warm and therefore become susceptible to late frosts such as this May's event. We have observed this in our study of exotic firs. Siberian fir, which is adapted to extremely cold regions in eastern Asia, is consistently one of the first firs to break bud and frequently suffers late frost injury. While late frost damage looks severe when it first occurs, most plants are able to recover, although blooms for spring flowering trees and shrubs may be lost for the season. One of the principle concerns following late frost injury is maintaining plant form, which may require some corrective pruning if damage is especially severe.

  Renovating your irrigation system is one of the most expensive projects your club is likely to undertake. As your existing system ages, maintenance expenses increase, and greens suffer, club members or owners are compelled to explore the options of renovating their irrigation system. 
  Studies by our banks show that capital availability is the number one issue that delays irrigation system renovation.  Many Board members and club owners tell us they did not fully understand all the options available to supply the cash for their project. As a result, financial decision-makers at clubs across the country have asked for a review of the options available to golf courses to pay for a golf irrigation system renovation.
  At most golf courses, four options are available to pay for your irrigation system.  Each option has benefits, but each option also raises some additional questions.  The options are:  1) pay cash, 2) assess the members, 3) borrow at a local bank with a mortgage backed financing, or 4) utilize a manufacturer-supplied program of specialty financing.

Cash
  Saving enough cash to pay for an irrigation system is an elusive goal for most clubs.  Many membership clubs are not-for-profit corporations which makes it additionally difficult to reserve enough capital for an irrigation system and not create a tax liability.  Both daily fee and membership courses typically have more capital improvement projects on their planning schedules than they have available capital.  Even if a club has enough money set aside to pay for an irrigation renovation, the golf course should ask, “Is this the best use of the club’s capital?” 
  Certainly for daily fee course owners, there is an opportunity cost of capital.  If you have plans to expand your facility or to buy another golf course, you will have calculated what your potential return on that investment should be.  If this ROI is greater than the interest expense of financing your irrigation system renovation, you should finance.  An irrigation system has a long-term useful life and a shorter, but still significant-term, technical life.  With depreciating assets, it is usually more fiscally prudent to pay for the asset as you use the asset rather than as a cash purchase.  The exception would be if a club has more cash than projects to spend it on.

Assess the members
  A private club has the option of assessing members to pay for an irrigation renovation.  The willingness to do this depends on many factors such as the cost of the memberships, age of the members, recent assessment history at the club and the size of the proposed assessment as it relates to the member-perceived ‘equity’ in their club membership.  As an example, a club with high membership cost, stable and full membership, a waiting list, high monthly dues and no recent assessment history might be a reasonable club for assessment.  In contrast, a club with little or no cost to join, open membership positions, low monthly dues and a recent assessment history would represent a less likely choice.  If members perceive the assessment cost to be a significant portion of, or exceeding their ‘equity’ in, the club, an assessment may not be effective and may drive members away.  At clubs where the average age of members is high, there is often a resistance to assessment.  These members would typically like to pay for the irrigation system renovation with dues increase over time. If the older members continue their membership for only a portion of the term of the dues increase, they perceive they have paid for only the portion of the renovation they have utilized.  The succeeding members pay the balance.

Borrow from the local Bank
  Most clubs will have one or more members who are affiliated with a local bank. The advantages of local bank financing are convenience and lower borrowing rates if the club pledges the real estate as collateral. The rate differential narrows when additional costs in mortgage- backed borrowing such as MAI appraisals and Phase One Environmental Impact studies are considered.  If the Phase One study finds deficiencies, the club can be compelled to spend significant money in bioremediation.  This is a Pandora’s Box that most clubs wish they had never opened.   In reality, a club should ask,  “If we have to pledge the real estate to do this deal, will the members or owners agree?” 

  The bylaws at most clubs prohibit pledging the club’s primary asset without a high concurrence of the membership. Many times, the value of the land is eight or ten times the planned amount for the irrigation renovation. Does it make sense to encumber the real estate for 10 or 20% of its value?  Typically this is not desirable since it restricts access to the remaining equity in the property without either paying higher interest rates for a second mortgage or fees to refinance the first. Mortgage-backed financing should probably not be the first avenue to consider as a means to pay for an irrigation system unless the cash flow and credit history are weak.  Collateral lenders are less concerned about cash flow and credit history. 
   Most local banks will not have any experience in providing financing for a golf course irrigation system.  They may not understand that 50-60% of the total costs of the project are soft costs, are buried in the ground and are not cost-effectively recoverable.  They may not understand the need for progress payments or how to evaluate the credit worthiness of not-for-profit businesses.  On a major project like  golf course irrigation financing, lender experience with this type of specialty financing is important.
  Local banks usually prefer to provide variable-rate financing structured as a line of credit. The risks of this type of financing are rate risk and the annually renewable structure of a line of credit.  Does the club really want to bet that interest rates are going to remain flat or go lower than current levels during the term of the borrowing?  Can the club afford to risk that this loan could be called during the annual renewal period?  Such a call can be executed because of bank changes like consolidation, not just negative changes in club credit.  Most member-owned clubs should not be in the interest rate risk business nor should they have short-term renewable debt at the discretion of the lender.
  Another consideration for borrowing from the local bank is that a club utilizes a significant portion of their local credit capacity with this financing.  If the club needs to secure immediate capital for emergency needs, and they are already extended at the local bank, serious cash flow problems can arise.
  The final consideration for borrowing from the local bank is the concept of concentration of credit risk.  This is the ‘all your eggs in one basket’ problem.  As an example, if the club has some savings accounts at a bank and that bank provides a loan used for irrigation system financing, the bank will consider its risk reduced by the amount of deposits and savings the club has placed with the bank.  Further, that bank may have language in the loan documents referencing ‘rights of offset.’ This could allow the bank to seize, or at least tie up, other club assets if a dispute or default were to occur on the borrowing.  Banks seldom advertise their rights to seize other assets, and clubs should be aware of their risks under these types of contracts.

Manufacturer-supplied programs of specialty financing

  Recently, the two major irrigation manufacturers have begun providing financial solutions for their customers.  They have realized what the golf car manufacturers have understood for years:  with installed projects that range from $100,000 to $1,500,000, the golf courses must be provided with viable financial alternatives to paying cash, assessing members or mortgaging their property.  The ideal manufacturer-irrigation-financing program provides fixed-rate, fixed-term, uncollateralized borrowing for all the hard and soft costs of the renovation project.  If a club is to qualify for such ideal financing, the club should have strong cash flow and credit history since irrigation projects have high soft costs. The best programs have flexible terms with payments that are customized to the cash flow of the club. Manufacturer-supplied programs can also provide progress payments to vendors as products and services are provided.  These manufacturer programs match clubs with lenders who have financed hundreds of irrigation projects around the country and who understand the requirements of such specialty financing.

  As your club begins to consider upgrading your irrigation system, make sure you review all these financial options.  If you understand the benefits and risks of each of these major choices you can make a faster and more informed decision. Your club should weigh these options and make your financial decisions in the beginning stages of planning an irrigation renovation.

Michael G. Meacher is the National Accounts Manager for Bankgroup Financial Services.  Bankgroup administers Rain Bird Financial Solutions for the Rain Bird Corporation.  Mr. Meacher can be reached at meacher@bankgrouponline.com or 800-403-0422
Reprint: The Board Room, Volume VIII, Issue 70
 

Info@EOGP.com

www.eagleonegolf.com

  Eagle One Products 
  1340 N. Jefferson St
  Anaheim, CA, 92807 
  Ph: 800-448-4409
  Ph: 714-983-0050
  Fax:  714-203-8448
 

Aquatrols Dispatch Sprayable see>>> Sneak Peek

PAULSBORO, New Jersey – January 9, 2007 – Aquatrols announces the launch of Dispatch Sprayable, a surfactant technology that focuses on better control of water and more efficient use of fertilizers and applied chemicals. 

Dispatch Sprayable is an affordable solution for managing water across large turf areas for those who cannot or do not inject. Dispatch Sprayable offers all the advantages of the original Dispatch chemistry, with the added convenience of an easy-to-spray formulation. With Dispatch Sprayable turf professionals can reduce water use even at reduced ET replacement rates, as well as enhance penetration and uniform movement of other turf management products. Recent research also shows that using Dispatch yields improved fertilizer efficiency.

Dispatch Sprayable offers flexible spray rates and application options, and can be added to most spray applications.

Dispatch Sprayable will be introduced in Anaheim at the GCSAA GIS in February. Product will be available for sale March 2007.

For information: www.aquatrols.com or
Contact: kathy.conard@aquatrols.com
Phone: 800-257-7797