SEMBAWANG COUNTRY CLUB MINUTES OF CLUB RENOVATION MEETING 2010 HELD ON 8 FEBRUARY 2010 (MONDAY) AT 1915 HOURS IN THE SCC RESTAURANT

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1 SEMBAWANG COUNTRY CLUB Page 1 SEMBAWANG COUNTRY CLUB MINUTES OF CLUB RENOVATION MEETING 2010 HELD ON 8 FEBRUARY 2010 (MONDAY) AT 1915 HOURS IN THE SCC RESTAURANT Present : BG Tan Yih San COL Jackson Chia COL Ho Kok Loke LTC Martin Lui BG (RET) Stephen Wong LTC Woo Chee Seng COL (NS) Eugene Cheong Ms Grace Tan Mr Peter Chew Ms Shirley Tay Mr Albert Chua - Chairman - Vice-Chairman - Club Captain - Assistant Treasurer - Engagement Committee Chairman - Assistant House Member - General Manager (Secretary) - Golfing Manager - Events/Marketing Manager - Finance Manager - Operations Executive And 69 members 1 INTRODUCTION The meeting was called to order at 1915 hours by Chairman, BG Tan Yih San. 2 CHAIRMAN S OPENING REMARKS Chairman recapped the background of the Upgrading Project. He mentioned that the renovation concept was initially conceived some 3 years ago at the AGM. Main effort was in upgrading the Club House. Extensive consultations were conduced to solicit members opinions and suggestions on the design features. The resources then were premised on our Club s Reserve. While the Upgrade was welcoming, it was felt that, if resource permits, we should take the opportunity to also deal with the golf course as it was waterlogged and aging. This would also allow the Club to distinctly reposition ourselves amongst the local golfing clubs and remain attractive to younger people. As otherwise, we would risk being overtaken by the others in Singapore. The Club took a while to do the adjustments to the renovation plans after delays arising firstly from escalating construction prices and then the economic recession. The administrative process to seek approval from MINDEF also took some time. In the meantime, the last 2 years have seen noticeable improvement in the Club s performance. While maintaining the same subscription fee, the management had managed to keep the operating cost low and the golfing experience was improved. These improvements have strengthened our case to convince MINDEF to co-fund the Upgrade of our aging facilities.

2 SEMBAWANG COUNTRY CLUB Page 2 Last year, the Club had a reasonable nett profit of about $100k. SCC membership was improving. However, it was observed that although there was an increase in the number of 3 rd generation Officers joining SAF, these same young people did not play golf in SCC, choosing instead to play in NSRCC, Malaysia and other clubs. Chairman cautioned that there would be undesirable consequences if we did not renew ourselves and our Membership profile in the years to come. Chairman has since asked Vice-Chairman to head the upgrading committee. Broadly, the status is as follows: 1 st part : SOCIAL Hub Additional and Adjustment (A&A) to Club House The Main Club renovation plan is firm. We have taken in the views of the Members and incorporated them into the architectural plans. Chairman explained that we would not wish to have any more time delays. 2 nd part: GOLFING Hub Upgrading the Golf Course Chairman mentioned that the renovation of the golf course is being deliberated, the Renovation Committee were looking at : In what way should the golf course be upgraded, and At what pace should the project be done so that the members interests could be served Chairman mentioned that while the requirements have been drawn up, there is no specific Golf Course layout as yet as the Golf Course Architect has not been engaged. The committee would very much like to hear from the Members before proceeding to the next step. These views and comments will be taken into consideration so that we can make the golf course renovation plans more concrete. 3 VICE CHAIRMAN S RENOVATION BRIEF a OVERVIEW OF CLUB RENOVATION Vice-Chairman thanked Members for their presence and said that it was gratifying to see such a big turnout as this was a reflection of their interest and the importance they placed on the Club s refurbishment. Our committee certainly would like to hear from members view so that we could better shape our strategy and be sharper in front of the consultants and contractors during the renovation discussions. Vice Chairman said that since 1994, the Club had only done minor works to the Club house and golf course, and that it has been a while since we carried out a major refurbishment. In order for the Club to stay relevant and attract younger members, the Club refurbishment project would refresh and rejuvenate the Club in order to continue as a key pillar in the SAF s officers and warrant officers engagement efforts. The refurbishment would enable the Club to upgrade its infrastructure to afford a decent and positive golfing experience for the members and their guests. b SCOPE The scope would include the refurbishment of both the Social and the Golfing Hubs,

3 SEMBAWANG COUNTRY CLUB Page 3 which would include works at the Main Club House and Golf Course. c FINANCIAL The estimated cost of the renovation projection is around $20M. This would be cofunded by MINDEF and from the reserves of the Club. Vice Chairman explained that MINDEF wanted the Club to ensure good responsibility and accountability for the use of public funds. To a certain extent, the Club has to take responsibility have ownership over the entire project. d PROJECTED START DATE END DATE The Club House renovation is projected to start in June 2010 and projected to complete by June The Golf Course renovation is projected to start in September While the detailed schedule has yet to be finalised, it could possibly be done in 2 phases. The first phase could complete by June 2011 and the subsequent phase by Mar e DESIGN OF MAIN CLUB HOUSE Vice Chairman mentioned that The Club House existing building structure would be retained. The design was gathered from Members input about 3 years ago. i) The Club House level 1 New Golfers Terrace with 300 seating capacity Upgraded toilet, to improve the ventilation and increased space and cubicles for Male shower rooms Relocated kitchen - the kitchen would be moved from level 2 to level 1 ii) The Club House level 2 New Club main entrance - extended into the present EXCO car park area New al fresco seating where members could relax with the golf course as a backdrop New VIP dinning area iii) Superimpose of Arrival Area VIP parking lots would be next to the bag drop area members could feel the formal atmosphere in the arrival hall trophies display and awards board would be at lobby and entrance area Key strength of the Club House: would be using the extensive landscaping to complement the surrounding greenery the external decorative elements would be displayed for ambience creation. the existing building would be treated with natural texture finishes to give it a rustic look iv) Through View From The Foyer

4 SEMBAWANG COUNTRY CLUB Page 4 The foyer would have an unobstructed view at level 2. Members could view the golf course at this level. v) Enhancement of the Sports Bar and KTV Room The restaurant would be converted into a multi-purpose room with 150 seating capacity. there would be a combined Sports Bar (capacity of 40 persons) and KTV rooms (capacity of 20 persons). f DESIGN OF GOLF COURSE Vice Chairman mentioned that the EXCO would be studying the submissions from the Golf Course Architects (GCA) which entails 2 possible Approaches: A) Current PLUS Approach to upgrade and improve the drainage and irrigation system of the Golf Course to enhance the existing golf course by altering and adding new features (eg. bunkers, water) on a cluster of holes; improving the strategy of play potential cost could be $15M. B) Re-Design Approach to overhaul the entire Golf Course and provide a new Golf Course potential cost could be >$21M. The Golf Course project would start sometime in September Vice Chairman highlighted to Members that they would need to help in funding if the Club chose the Re- Design approach. g IMPLICATIONS OF RENOVATION The Club House renovation project would expect to start in mid year of Once the renovation kicks-off, Vice Chairman would like members to take note of the implications of renovation. The key considerations were: i) Primary Considerations to minimize the inconvenience to members and continue to engage members with golfing and social facilities / programs. to be prudent in expenditure so as to ensure the Club s reserves would not be depleted. ii) Secondary Considerations to retain our good performing staff to continue to serve members; and relevantly skill them for the new Club. h PLAN OF ACTION to take on a staggered approach in renovating the golf course, in order to continue golfing facilities during the renovation.

5 SEMBAWANG COUNTRY CLUB Page 5 to minimize inconvenience to members by providing prefab facilities to support the operations during renovation. to continue to cater additional golfing and social programs and facilities, through possible collaborations. to continue to engage members through our communications, and update members on the progress of the renovation. i STAGGERED APPROACH PHASE 1: THE FIRST 3 MONTHS the Main Club House would be closed in May/June members could continue to play 18 holes from June 2010 while the Club House closed for renovations. the Club would be providing temporary shower and changing facilities. light snacks would be served at Cozy Café j STAGGERED APPROACH PHASE 2: PARTIAL CLOSURE OF GOLF COURSE Golf Course would be closed in September The Club would stagger the golf course renovation Members could continue to play 4-5 holes (one side of the golf course), while works began on the 15 holes on the other side. The Club would provide temporary shower and changing facilities. Light snacks would be served at Cozy Café. k STAGGERED APPROACH PHASE 3: FIRST NEW 9 HOLES the first 9 holes is projected to complete sometime in June 2011, with the reopening of the Club House. Members could play the new 9 holes and enjoy the new Club House facilities. Probably the other new 9 holes would be completed in March l OTHER COLLABORATIVE EFFORTS Golf Course No. of Flights per Week Golf Fees Kranji 10 weekday Approx $70 per golfer Warren 2 weekday TBC Orchid Keppel Bintan Lagoon 2 weekday (Over & above what is being offered now) 2 weekday (Over & above what is being offered now) $48 (weekday); $68 (weekend) (fees include green & buggy fees and land transfer only) TBC TBC m EXPECTED INCONVENIENCE members could play 4-5 holes pre-fab changing and bathing facilities inconvenient process flow- buggy path would be re-routed. F&B facilities would

6 SEMBAWANG COUNTRY CLUB Page 6 not be in full operation. environmental conditions dusty and messy areas there will be limited golf bag storage. n SUBSEQUENT COMMUNICATION TO MEMBERS Vice Chairman said that members will be updated on the progress of the Club Renovation via: newsletter, flyer and website information circulars via statements Club notice board Briefing sessions 4 QUESTION & ANSWER There were seven (7) questions addressed as follows:- Question 1: MAJ (Ret) Andrew Siow (S029) In view of this renovation, if some members decide not to play golf during the Club renovation period, would the Club consider reducing the members subscription fee? Chairman said that the EXCO would very much like to find a way to return those services which are not rendered during the upgrading period. However, the EXCO has taken a considered approach thus far. He explained that the challenge the Club faces is that we have a fixed amount of money after approval from MINDEF to co-fund as well as from our reserve. The top priority would therefore go into building new capabilities for the Club house and the golf course. The balance fund would go to business continuity plan so that people would be less inconvenienced, as well as putting in more alternatives into finding additional places for members to play. Chairman emphasised that at this moment, we will not be able to promise cash rebates. The key intent is to upgrade the Club house and the golf course without having to approach the Member for additional financial resources as was the practice in other Clubs. The final decision as was mentioned by vice-chairman has yet to be decided. He also said that there are other considerations such as the market situation, construction cost, changing economic condition that add even more constraints to the Club. Question 2: MAJ (Ret) Edward Kim (K009) The Club could consider closing all 18 holes rather than letting members to play only 4 to 6 holes. The Club could look for other course for members to play at cheaper rates. My personal opinion to close the entire course. Chairman said that the pace of the development has yet to be finalised. However, in

7 SEMBAWANG COUNTRY CLUB Page 7 view of the wide spectrum of members needs, the key considerations have been to provide sufficient alternatives within our means. For members whom might wish to continue to enjoy a full 18-hole golfing experience, the Club have and would continue to engage reciprocal clubs such as Kranji, Warren, Orchid as well as Bintan Lagoon to provide reserved flights for members. Agreeing that 4-6 holes would at best provide for a discounted golfing experience, EXCO committee noted that it might still be able to cater to a small number of players. He mentioned that the other considerations for the pace of the development could well be driven by the new course design as well as ground feasibility of keeping the construction work within a certain bound. Question 3: Mr Joe Mao Sin Hua (P019/01) The explanation of the renovation project was very thorough. I fully agree with Mr Edward Kim s suggestion to close the entire 18 holes. It would cause inconvenience and members would not enjoy the golf game. The Club should instead concentrate fully on the whole project. a) What would happen to the Driving Range? b) Will there be more holes in the new golf course? And will it be upgraded to carpet grass? My opinion is that if we are doing this, then we must think big and do big. You want quality, it doesn t come cheap. Chairman replied that the Driving Range would continue its operations during the renovation period. As for the golf course, he highlighted that the Club s main priorities for the new golf course would be playability, drainage system, and maintenance. Question 4: Col (Ret) Ng Cheng Hoe (N080) We should go for Option B and do a total revamp. We ve been doing add-ons all these years. A total revamp allows us to lengthen the course. The emphasis should be on the golf course. So my question is on the allocation of the total budget. How did we come to the decision of allocating $15m on the golf course and $5m on the Club house? Don t we need to allocate more to the golf course to make it a championship golf course? Chairman explained that EXCO would certainly try to work towards a Championship golf course. We should not, however, expect it to be like Serapong, if we understand the resources available to us, and the land that we have. We should also acknowledge that a new Club House gives us a new edge to attract people to join this Club. We will try not to ask for additional resources from the Member to build the Club house and golf course. But we can t promise that we will not ask Members. Club Captain explained the design guide that we gave to the Golf Course Architects: the course layout should be Championship standard and also offer a reasonable golfing experience for high handicappers.

8 SEMBAWANG COUNTRY CLUB Page 8 the course layout to be amongst the best in Singapore. the buggy course to facilitate good pace of play of 4 ½ hours per round (with buggy) to retain the natural character of the course. able to resume the golf game not more than 15 minutes of storm cease, if achievable within reasonable cost. course maintenance should be self sufficient in its irrigation water needs, friendly and cost efficient. Club Captain further explained that we would need to have further discussion and resolution with the Golf Course Architect before we finally decide if we will close all 18 holes or have a few holes in play. The Club s main considerations are: cost and schedule as little inconvenience to members as possible there are limited golf course construction contractors in Singapore As for the allocation priority, Chairman emphasized that it was done with great care (though the specific amount was not quite as mentioned). Firstly, the new capabilities of the Club must be attractive enough to reposition the Club. For example, the Club House should have to right features to render its activities vibrant and draw new members. Many of the features have been deliberated with considerable inputs from members. And, we were confident that they would be put to good use. As for the golf course, if we were to proceed with the upgrade, it should provide for sufficient draw akin to a championship course so that members would be proud of. As resources will be limited, the approach taken has and will continue to be driven by ground practicality. Question 5 : SSG (Ret) Gan Ai Gee (G086) I only want to know what is going to happen to the swimming pool? Chairman explained that the swimming pool would not be functioning from May 2010 till June This is purely for the safety of the members as there would be debris and materials from the renovations of the Club house. These may cause injury to the Members. So the pool will be closed for the period of the renovations. Question 6: Mr Peter Law (L001) Is the Club planning to remove the policy to allow golfers to walk the course? Secondly, the reason why we have a drainage problem is because the 4th fairway s canal was closed resulting in water blockage. Some golf courses in Malaysia are situated in low lying areas using cow grass and yet have no drainage problem. If we go for short grass, the golf course will need to re-do the golf course after every 7-10 years. Chairman explained that The Club had no intention to cater only to buggy golfers. We will still cater flights to walkers. Referring to Club Captain s slides, he mentioned that

9 SEMBAWANG COUNTRY CLUB Page 9 we wanted to give the designer a guide to plan the layout of the course in a way as to allow for buggy golfers to finish a round of golf in four and a half hours so that the Golf Course Architect would make sure that his golf course design facilitates a good flow/pace of play. Chairman also clarified that the main consideration wasn t the type of grass to be used. The main considerations were to make sure the drainage is good, so that players could quickly resume their golf games; and that we also have a good irrigation system. Question 7: Mr Charles Tan (T231) If we can get 9 holes to play during the renovation, then we should be able to generate some revenue. Also, it would be better than playing just 4-5 holes. Secondly, cow grass has always been one of the features of SCC. If the drainage problem necessitates sand capping and therefore drives us to carpet grass, then let s do it. But we need to be aware that there is also an increase to the maintenance costs. Based on the annual reports, Tanah Merah Country Club is spending $1.3m on maintenance per course. Chairman agreed with Mr Tan and would rather have 9 holes for Members to play on. But we have to work within the constraints and arrive at a most desirable situation. Chairman sited examples that Royal Selangor, Changi Golf Club, SICC in Sime have good cow grass in their golf courses. But SCC would rather be practical and solve the drainage problem rather than to change the turf for the sake of changing the type of grass. We are acutely aware that maintenance, manpower and materials could easily cost $1.4 million per year. Chairman said that we have to be prepared for a higher maintenance cost with new facilities. Addressing the concern of an escalating subscription fees, Chairman explained that no Club could promise that the subscription fees will remain unchanged. However, the charging mechanism that the Club adopt could be made more transparent. As a guide, the Upgraded Club should benchmark the subscription fees with sisters Clubs such as Warren, Keppel, Jurong and Seletar Country Clubs as they provided similar facilities as ours would. The monthly subscription so far ranges between $105 to $115. Chairman then said that we have to be prepared for an adjustment/increase in the present subscription fee with new facilities. However, he promised that EXCO will scrutinise the operating cost closely to ensure that we have the best bang for the buck. 5 ANY OTHER MATTERS Chairman thanked members for their questions. He wrapped up the meeting by calling for members continual co-operation and support for the Club as well as on behalf of the Club to thank the Upgrading Committee headed by Vice-Chairman and the Club Management for their tireless effort in ensuring that the Upgraded Club will be something that we are proud of. As there was no other matter for discussion, the meeting closed at 2115 hours.

10 SEMBAWANG COUNTRY CLUB Page 10 Minuted by : Ms Eunice Kwek - Secretary to General Manager Vetted by : COL (NS) Eugene Cheong - General Manager Approved by : BG Tan Yih San - Chairman