A G E N D A GOLDEN RAIN FOUNDATION OF WALNUT CREEK REGULAR MEETING OF THE BOARD OF DIRECTORS THURSDAY, JULY 28, 2016, AT 9:00 A.M.

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1 A regular meeting of the Board of Directors of the Golden Rain Foundation of Walnut Creek will be held in Peacock Hall at Gateway Complex, commencing at 9:00 a.m., Thursday, July 28, The agenda for the meeting is listed below. It is sometimes necessary to add agenda items for consideration by the Board after the agenda has been prepared and distributed. These items will be described in the agenda available at the Board meeting. Regular meetings of the Board of Directors are open, and comments from residents are always welcome during the Residents' Forum. A G E N D A GOLDEN RAIN FOUNDATION OF WALNUT CREEK REGULAR MEETING OF THE BOARD OF DIRECTORS THURSDAY, JULY 28, 2016, AT 9:00 A.M. 1. MEETING CALLED TO ORDER: Leslie Birdsall, President 2. ROLL CALL: Birdsall (I), Fredlund (C), Delpech (E), Haley (H), Adams (A), Brown (B), Kelso (D), Pyle (G), Roath (F), and O Keefe, ex-officio member 3. APPROVAL OF MINUTES: Regular meeting of June 30, 2016 Regular meeting of July 12, TREASURER S REPORT (Attachment) Page 1 5. CHIEF EXECUTIVE OFFICER S REPORT (Attachment) Page 2 6. RESIDENTS FORUM 7. RESIDENT MEMBER COMMITTEE REPORTS a. Aquatics Advisory Judith L. Morton, Vice Chairman (Attachment) Page 7 b. Finance David H. Smith, Chairman c. Fitness Advisory Claudia Tierney, Chairman (Attachment) Page 14

2 Golden Rain Foundation Agenda -2- July 28, 2016 d. Golf Advisory John McDonnell, Chairman (Attachment) 1) Consider recommendation to modify the Turf Reduction and Irrigation Modification on the Golf Course for Water Conservation Project-Phase 2 Plan along the 7 th and 8 th holes on the Dollar Ranch Golf Course by choosing an action from the Alternates and Options section of the summary report. (Attachment) Page 17 Page BOARD COMMITTEE REPORTS a. Compensation Leslie Birdsall, Chairman (Attachment) 1) Consider recommendation that the employee benefits budget program budget for 2017 be increased by $135,000. (Attachment) 2) Consider recommendation that the budget for wages in 2017 be increased by $140,000 (approximately 3%) to allow for staff wage increases as approved by the CEO. (Attachment) 3) Consider recommendation that the 2017 budget include an additional $150,000 for estimated increases in contractual costs for the GRF operations budget-funded union employees in (Attachment) 4) Consider recommendation that $27,600 be allocated in the 2017 budget to allow for a 2017 performance bonus and/or salary increase for the CEO. (Attachment) b. Policy Robert D. Kelso, Chairman (Attachment) Page 36 Page 38 Page 41 Page 44 Page 49 Page UNFINISHED BUSINESS a. List, discuss, prioritize, and approve the Board s goals for Deferred June 30, (Attachment) Page NEW BUSINESS a. Consider approving the replacement of the outdated failing analog phone system with a new feature rich digital system in the amount of $140,000, which includes a 10% contingency, to be funded from the Trust Estate Fund. (Attachment) Page 56

3 Golden Rain Foundation Agenda -3- July 28, 2016 b. Presentation by Arthur J. Gallagher & Company. (Attachment) Page 58 1) Insurance overview 2) Earthquake insurance 11. ANNOUNCEMENTS a. The next mid-month regular meeting of the Board will be held on Tuesday, August 9, 2016, at 9:00 a.m. in Peacock Hall at Gateway Complex. b. The next end-of-the month regular meeting of the Board will be held on Thursday, August 25, 2016, at 9:00 a.m. in Peacock Hall at Gateway Complex. 12. EXECUTIVE SESSION a. There will be an executive session of the Board following this meeting to discuss contract, legal, and personnel matters and any other appropriate business. 13. RECESS pj

4 4-1 Golden Rain Foundation, Inc. Treasurer s Report Board Meeting July 28, 2016 For the month of June operating results were $60,000 favorable to budget. Total revenue exceeded budget by $46,000 and total expenses were under budget by $14,000. Cumulative for the first six months of the year, revenues were unfavorable to budget by $9,000 and expenses were below budget by $207,000, for a combined positive cumulative variance for the year of $198,000 or 1.6%. All amounts are rounded to the nearest thousand for this report. Revenues: Favorable variances to budget included $18,000 in golf revenue, $10,000 in recreation revenue, $9,000 in bus-grant revenue and $4,000 in handyman revenue. Expenses: Favorable variances from budget for June of $28,000 in salaries and employee expenses and $10,000 in contractual services were partially offset by deficits to budget of $18,000 in equipment repairs and maintenance, $11,000 in building repairs and maintenance and $10,000 in professional services. Trust Estate Fund There were 42 membership transfer fees received in June generating $378,000 as compared to 49 in 2015 that generated $343,000. Total expenditures for the month were $322,000 including $58,000 for the Gateway HVAC replacement project, $81,000 for the Del Valle Fitness Center, $36,000 for the Hillside atrium roof and $138,000 in debt service. Page 1

5 5-1 July 21, 2016 CEO s Monthly Report By Tim O Keefe, CEO Manor Sales and Membership Transfer Fees There were 48 sales in June 2016 as compared with 51 in June of the sales paid a membership transfer fee. As of July 21st, there have been 21 sales for the month and there are 76 pending escrows. Employee Transition Four employees commenced employment with the Golden Rain Foundation in June: Josephine Nash, Fitness Specialist; Margaret Sharpe, Editor/Staff Writer; Efrain Topete, Utility Worker; and Javier Roman, Videographer/Editor. Four employees left employment with the Golden Rain Foundation in June: Alan Rubio, Handyman; Kyle Belford, Videographer/Editor; Chelsea Ramirez, Front Desk Attendant; and Griffin Ormond, Videographer/Editor. Del Valle Fitness Center Renovation At the June 30 th GRF Board meeting, the Board approved the Design Development Phase of the Del Valle Complex Renovation Project and authorized the commencement of construction drawings. The drawings should be completed in the early Fall. The Board also authorized the retention of Pankow Builders to assist the architect in designing the phasing of the project so that some portions of the facility can remain open during construction. Golf Cart Registration At the GRF Board of Directors meeting on May 26 th, the Board approved new Policy authorizing the registration of golf carts effective July 1, The golf cart registration was requested by the Mutuals and will help to identify owners of golf carts on Mutual property. Registration will also help GRF staff identify the owners of lost or abandoned carts that appear from time to time on GRF property. The $10 one-time fee will cover registration by Securitas at the Public Safety Office at the Creekside complex. Unregistered golf carts will not be permitted to use the golf courses and will be subject to citations from Mutuals after August 31, Page 2

6 Marin Clean Energy 5-2 As a reminder, the City of Walnut Creek recently agreed to purchase all residential and commercial electricity from power aggregator Marin Clean Energy (MCE) instead of PG&E. The transition is expected to take place in September and all Walnut Creek residents are automatically enrolled in the program. MCE has committed to providing a minimum of 50% of the electricity from renewable energy sources (PG&E is approximately 30%). Residents will have a brief window to opt out of the program and stay with PG&E at no charge. After the window closes, there will be a $5 fee to opt out of MCE and stay with PG&E. MCE has just published their electricity rates which are lower than PG&E s rates so it will cost less to have a greener source of electricity. Residents will also have the option to opt up to a 100% green supply of energy for a slightly higher rate. MCE and the City of Walnut Creek conducted a presentation for residents las month in the Fireside Room and they plan on conducting another presentation on August 9. Watch the Rossmoor News and your mailbox for further information or visit to learn more. Traffic and Pedestrian Safety Study At the June 30 GRF Board meeting, the Board retained the services of a traffic engineering firm to conduct a traffic and pedestrian safety study. The study will make recommendations to improve safety and traffic flow throughout the main roads and intersections in Rossmoor. Accessibility Review of Dollar Clubhouse Also at the June 30 GRF Board meeting, the Board authorized an accessibility review of the Stanley Dollar Clubhouse. The consultant will evaluate and propose possible enhancements to the facility to improve accessibility. Solar Farm Update In 2015, the GRF Board of Directors authorized entering into a power purchase agreement with a solar company to purchase about 60% of GRF s power from a solar farm located in Rossmoor. Negotiations are still underway with Next Era and Solar Technologies to place a solar farm on a Rockview hillside. Last month following soil testing, it was determined that due to soil conditions and a relatively steep incline, the size of the project needed to be significantly reduced on the hillside. The vendor is now exploring the feasibility of locating some of the panels on top of the MOD building, parking lot and RV lot. The vendors will recalculate the cost of the project. Negotiations are continuing. Hillside Atrium Roof If you have visited the Hillside Clubhouse in recent weeks, you will see extensive work being done on the atrium joining the 2 buildings. It was 2 Page 3

7 determined that some dry rot had set in and the GRF Board of Directors authorized repair work. Unfortunately, as the contractor removed roof layers last week, extensive additional dry rot has been discovered. Please bear with us as the necessary repairs are made. 5-3 Broadband (High Speed Internet) Service As a reminder, the cable TV contract with Comcast expires at the end of this year. The GRF Board of Directors has authorized staff to negotiate a new contract that will include enhancements to the TV contract including broadband (high speed Internet) service. Negotiations are continuing. Residents are reminded that broadband Internet service will be included in the coupon effective 1/1/17 and to make appropriate arrangements with your current Internet service provider if you wish to eventually terminate your current provider. It is suggested that residents consider a short overlap in service during January with their current Internet service provider to ensure a smooth transition. More information to follow. Electric Vehicle Charging Stations In February, staff conducted a study and determined that there were 57 electric vehicles in Rossmoor. Staff also made a preliminary inquiry into the cost of charging stations and learned that charging stations cost $10-15,000 to install plus the additional cost of delivering the electricity to the location of the charging station. Due to the relatively low registration figures of electric vehicles in Rossmoor, it was determined that there is not yet enough demand to justify the investment into electric vehicle charging stations. Staff will continue to monitor EV registrations in the future. Display Cases The display cases at Gateway are intended to provide limited information about a club, i.e. contact information, meeting dates and upcoming events. Recently, several residents have expressed concern at Board meetings and in the Rossmoor News about censorship of flyers and materials posted on bulletin boards and display cases in Rossmoor. As a private property owner, the Golden Rain Foundation has a legal right to establish policies and rules governing materials displayed on its walls and display cases. Over the last several years, some Rossmoor clubs have posted, or requested to post, materials that have violated these policies and the clubs have been asked to remove those materials or submit revised materials that meet GRF s policies. Some residents have characterized this as a recent or new issue to Rossmoor. In fact, the current display case policy was originally written in 2003 to address the issue of unacceptable or offensive materials on GRF s walls and has been a recurring issue all the way up to today. Before we look at the criteria that are used to review club submissions for flyers and display case materials, it is important to understand how GRF policies are developed. As a vibrant community of nearly 10,000 seniors living in close proximity to one another, GRF s challenge is to find that 3 Page 4

8 delicate balance where residents are allowed a degree of personal expression without that expression imposing or creating a conflict for others. Therefore, GRF policies tend to be developed to address and/or place limits on an issue, problem, circumstance or a behavior in the community. Over the course of 52 years here, dozens of policies have been approved, periodically revised and sometimes even eliminated, by the GRF Boards of Directors to reflect the community s changing needs. For example, the longstanding policy prohibiting memorials was recently rescinded and the golf cart registration policy was recently enacted. 5-4 Policies are not adopted until a thorough review process has been completed. There are typically a minimum of two Policy Committee meetings where the public is invited to comment on proposed additions or changes to policies before the policy language is approved. If approved by the Policy Committee, the policy is then submitted to the Board of Directors for a minimum of two Board meetings where the public is again invited to comment on the proposed policy. Once the public and the GRF directors have had at least two opportunities to comment, the Board of Directors will either approve, reject or send the policy back to the Committee for revisions. So how does GRF determine whether printed or posted materials are offensive or commercial? In the case of commercial advertisements or items unrelated to a club, those are usually relatively easy to determine: if a posting relates to a business or enterprise that has nothing to do with GRF activities or its recognized clubs, it likely will fall under the commercial advertisement restriction. In the case of offensive material or statements that might be construed as propaganda and unrelated to the club itself, that can be much more difficult to discern. What one person finds offensive might be another person s personally held sacred belief. We try to use the reasonable person rule, which is to try to determine whether the average person might find offensive a given statement or posting submitted by a club. It can be extremely difficult to determine whether something is acceptable under the policy but staff makes every effort to be fair and apply the policy as consistently as possible. In the last couple months, handwritten messages have defaced at least two flyers posted in Rossmoor. The messages were construed by numerous residents as hate crimes and were reported to the police. As a result of these incidents, as well as the extensive staff time required to monitor submissions and the resulting degree of unhappiness among clubs and residents over postings that are allowed--or edits that are requested to postings to comply with the stated policies--the Policy Committee is in the process of reviewing policies related to printed postings and display cases. The Committee is reviewing policy changes that would formalize and limit postings to only include club names, club officers, club meeting dates and locations, and announcements of club events. All other submissions for postings in display cases that can be considered causes, statements, beliefs, propaganda or commercial advertisements or announcements would not be permissible. None of these proposed restrictions would apply to flyers, 4 Page 5

9 brochures or literature inside the venue of a club s event. Nor is the Committee considering restrictions on a club s activities, speakers, films or presentations at this time. 5-5 If you are interested in this topic or would like to learn more, please plan on attending the next Policy Committee meeting on August 2 nd at 1:30 p.m. in the Board Room at Gateway. 5 Page 6

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11 ANNUAL POOL ATTENDANCE NUMBERS DOLLAR POOL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC COLOR CODES , ,489 2,505 2, ,572 1, ,849 2,179 1,907 1, ,698 1, * Yr-Yr % change % 8.02% 51.84% HILLSIDE POOL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC & 8/19-8/25/2013, HS closed Nov DV closed 6/ DV closed 3/23-3/ , ,951 2,778 2, HS closed 9/17-9/ ,432 1, ,855 2,869 1,833 2, HS closed 7 days ,795 2, * Yr-Yr % change % 25.35% 74.33% Began use of Keytag DEL VALLE POOL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC , , ,832 5,910 5, , ,573 5, ,861 6,272 5,666 5, , ,245 6, ,053 4, * Yr-Yr % change -3.11% % % TOTAL FOR ALL POOLS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL , ,965 9, ,272 11,193 10,061 9, , ,263 8,577 8,015 10,217 10,565 11,320 9,406 8, , , ,819 7,546 8,333 11,316* 35,158 Yr-Yr % change % % 3.97% 2015 Cum to Mo , Cum to Mo 6,245 12,460 19, ,158 % Incr/Decr % % -8.17% 7a-2 DOLLAR AND HILLSIDE CLOSED FOR HS and Dollar pools opened March 15, Dollar Pool closed for construction of Event Center 7/22-8/2/2013 *NUMBERS INCLUDE GUESTS AND CAREGIVERS Page 8

12 DEL VALLE POOL JUNE a-3 7/7/2016 JUN 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 TOTALS Last 30 min. WED THU 2 CLOSED FOR CLEANING FRI SAT SUN MON TUE WED THU 9 CLOSED FOR CLEANING FRI SAT SUN MON TUE WED THU 16 CLOSED FOR CLEANING FRI SAT SUN MON TUE WED THU 23 CLOSED FOR CLEANING FRI SAT SUN MON TUE WED THU 30 CLOSED FOR CLEANING TOTAL GUESTS: 178 CAREGIVERS 42 Page 9

13 DOLLAR POOL JUNE a-4 JUN 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 TOTAL Last 30min. WED 1 CLOSED FOR CLEANING THU FRI SAT SUN MON TUE WED 8 CLOSED FOR CLEANING THU FRI SAT SUN MON TUE WED 15 CLOSED FOR CLEANING THU FRI SAT SUN MON TUE WED 22 CLOSED FOR CLEANING THU FRI SAT SUN MON TUE WED 29 CLOSED FOR CLEANING THU Total ,254 GUESTS 166 CAREGIVERS 16 Page 10

14 HILLSIDE POOL JUNE /7/2016 JUN 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 TOTALS ADULT KIDS 19:30 WED THU FRI SAT SUN MON TUE 7 CLOSED FOR CLEANING WED THU FRI SAT SUN MON TUE 14 CLOSED FOR CLEANING WED THU FRI SAT SUN MON TUE 21 CLOSED FOR CLEANING WED THU FRI SAT SUN MON TUE 28 CLOSED FOR CLEANING WED THU TOTAL ADULT GUESTS 572 CHILDREN 436 CAREGIVERS 3 7a Page 11

15 DEL VALLE AQUATICS and FITNESS REGISTRATION JUNE a-6 ATTENDANCE NUMBERS ROOM & POOL NUMBERS SCANNED ENTRIES AEROBIC ROOM #s: 2333 RESIDENT SIGN IN TOTAL: 1302 SHASTA ROOM #s: 1424 FITNESS GUEST TOTAL: 208 SIERRA ROOM #s: 1581 FITNESS CAREGIVER TOTAL: 133 CLUB GUEST TOTAL: 221 POOL STAFF CLASSES: 1173 CONTRACTOR GUEST TOTAL: 14 POOL CONTRACTOR CLASSES: 414 FITNESS TOTALS: POOL CLASS TOTAL: 1587 POOL ATTENDANCE TOTAL: 4682 POOL GUEST TOTAL: POOL CAREGIVER TOTAL: 42 POOL TOTALS: 4902 TRAINER ACTIVITY FACILITY TOTAL: TOTAL ½ HOUR SESSIONS 144 TOTAL 1 HOUR SESSIONS 104 TOTAL FREE SESSIONS 176 TOTAL CLASSES TAUGHT 165 TOTAL PAID SGT/WORKSHOP CLIENTS 119 POOL TOTALS , , , , , ,832 5,910 5, , , ,573 5, ,861 6,272 5,666 5, ,400 69, ,480 6, ,258 4, ,697 FITNESS TOTALS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD POOLS TOTAL , , , , , , , , , , , ,355 UNIQUE SCANS Page 12

16 7a-7 From: To: Cc: Subject: Date: Masha Henzel Jeffrey Matheson; Kim Von Striver; Paulette L. Jones Aquatics June 2016 H20stats Thursday, July 07, :40:11 AM AQUATICS CLASSES STATS JUNE 2016 Monday *8:00am class total = 29 avg = 15 *10:00am class total = 96 avg = 32 11:00am class total =136 avg = 34 12:00pm class total = 95 avg = 24 7:00pm class total = 79 avg = 20 Tuesday 7:00pm class total = 74 avg = 19 Wednesday *8:00am class total = 70 avg = 17 *10:00am class total =104 avg = 26 11:00am class total =133 avg = 27 12:00pm class total = 86 avg = 17 1:30pm class total = 73 avg = total JUNE 7:00pm class total =128 avg = 26 Thursday 7:00pm class total = 81 avg = total JUNE Friday *8:00am class total = 48 avg = total JUNE* *10:00am class total = 67 avg = total JUNE* 11:00am class total = 93 avg = total JUNE 12:00pm class total = 56 avg = total JUNE 7:00pm class total = 69 avg = total JUNE Saturday 1:00pm class total = 72 avg = total JUNE TOTAL = 1,587 *414 are in classes taught by independent contractors 1,173 are in classes taught by fitness staff Masha Henzel Del Valle Aquatics, Sports & Fitness Complex 1751 Tice Creek Drive Walnut Creek, CA front desk office Page 13

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19 DEL VALLE AQUATICS and FITNESS REGISTRATION JUNE c-3 ATTENDANCE NUMBERS ROOM & POOL NUMBERS SCANNED ENTRIES AEROBIC ROOM #s: 2333 RESIDENT SIGN IN TOTAL: 1302 SHASTA ROOM #s: 1424 FITNESS GUEST TOTAL: 208 SIERRA ROOM #s: 1581 FITNESS CAREGIVER TOTAL: 133 CLUB GUEST TOTAL: 221 POOL STAFF CLASSES: 1173 CONTRACTOR GUEST TOTAL: 14 POOL CONTRACTOR CLASSES: 414 FITNESS TOTALS: POOL CLASS TOTAL: 1587 POOL ATTENDANCE TOTAL: 4682 POOL GUEST TOTAL: POOL CAREGIVER TOTAL: 42 POOL TOTALS: 4902 TRAINER ACTIVITY FACILITY TOTAL: TOTAL ½ HOUR SESSIONS 144 TOTAL 1 HOUR SESSIONS 104 TOTAL FREE SESSIONS 176 TOTAL CLASSES TAUGHT 165 TOTAL PAID SGT/WORKSHOP CLIENTS 119 POOL TOTALS , , , , , ,832 5,910 5, , , ,573 5, ,861 6,272 5,666 5, ,400 69, ,480 6, ,258 4, ,697 FITNESS TOTALS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD POOLS TOTAL , , , , , , , , , , , ,355 UNIQUE SCANS Page 16

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23 7d Golf Course Rounds Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 YTD 2015 YTD Golf Cards 18 hole - prepaid 499 1, ,299 1,381 1,238 6,451 8,057 9 hole - prepaid ,174 1,181 1,015 5,187 6,738 Sponsored Guest 0 0 Subtotal - Cards 900 1,823 1,627 2,473 2,562 2, ,638 14,795 Greens Fees Residents ,523 4, ,955 4, hole rate $ holes holes ,343 4,188 Subtotal - Residents 624 1,926 1,641 2,191 2,510 2, ,493 13,878 Sponsored Guest holes holes Subtotal - Sponsored Guest Guests - Weekdays holes holes holes $ holes $ Subtotal - Guests weekdays ,829 3,350 Guests - Weekends & Holidays holes holes Subtotal - Guests Weekends & Holidays ,444 2,061 Total - Guests ,075 1, ,675 5,800 Tournaments Total Rounds Played 1,822 4,450 3,880 5,757 6,325 6, ,460 34,735 h:\data\finance\golf\copy of Golf report - June 2016-Golf Course Rounds & Receipts Page 20 1:53 PM

24 7d Golf Course Cash Receipts Actual YTD Actual YTD Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 YTD 2016 Budget 2015 YTD 2015 Budget Golf Cards Annual 18 $1, , , , , , st Qtr $ , , , nd Qtr $ , ,800 23, , rd Qtr $ ,000 12, , th Qtr $ Annual 9 $ , , , st Qtr $ , , , , nd Qtr $ , ,600 9, , rd Qtr $ , , , th Qtr $ Sponsored $1, , , , ,600 1, , , Golf Card Income Deferred 87, , , Subtotal - Cards 183, , , , , , , , , , Greens Fees Residents , , , , , , , , , , , , , , , , hole rate $ , , , holes , , , , , , , holes , , , , , , , , Subtotal - Residents 9, , , , , , , , , , Sponsored Guest , , , , , holes holes Subtotal - Sponsored Guest , , , , , , Guests - Weekdays , , , , , , , , , , , , , , , holes , , , , , , , holes , , , , , , , holes $ , , , , holes $ Subtotal - Guests weekdays 3, , , , , , , , Guests - Weekends & Holidays , , , , , , , , , , , , , , , , holes , , , , holes , , , , , , Subtotal - Guests Weekends & Holidays 4, , , , , , , , Total - Guests 8, , , , , , , , , , Tournaments 8, , , , , Total Play Revenue 201, , , , , , , , , , Misc income/gas Sales Total Golf Course Revenue 201, , , , , , , , , , h:\data\finance\golf\copy of Golf report - June 2016-Golf Course Rounds & Receipts Page 21 1:53 PM

25 7d Golf Shop Sales Golf Shop Sales June 2016 YTD 2015 YTD Merchandise Sales 25, , ,157 Cart Rental 10,691 45,392 52,341 Club Repair Golf Lesson 4,450 18,195 18,656 Driving RNG 5,683 27,757 31,788 Total 46, , ,594 Page 22

26 7d-7 July 2016 GOLF MANAGEMENT REPORT June saw some very hot weather that reduced play on certain days. Yet, we still had a better June than in Total rounds for the year are still about 6,500, down from last year due to the wonderful rains early in the year. Income for the month was a little over $86,000 which is almost $8,000 more than June However, for the year we are down $80,000 to budget. After four increasing great years I probably over estimated what we could do with rounds and income if the rains finally came to Northern California! Although these number indicate that we are not on pace to match last year s record numbers. It does show that we are having an average year and there is nothing really wrong with that scenario. We should be fine within our total budget because we have been down three men on the golf course crew. This saving in manpower cost will help us close the gap in expenses. We are currently hiring two new golf course employees. At this time the Director of Golf believes we will by the end of the year be on budget. The golf shop business is doing very well. Merchandise sales are almost the same as This is very good news because generally when rounds drop so does shop sales. Cart rentals and driving range income are down due to the rounds total being lower. A closer look shows that club sales are down this year but clothing sales have increased for both men and women. The calendar continues to be completely full of a variety of events. This Monday we will host a group of 28 First Tee juniors for a tournament on the Creekside course. If anyone would like to help by playing with a group please let the golf shop know! The Men s Club match play championship starts soon and all the other clubs have big events in the next month. We will be hosting a huge outside event on Monday, July 25. They will use both courses and have 200 players. Our largest outside event ever! The Director of Golf will be presenting a Summary Report of options for the fairway 7 &8 mulch project to the Golden Rain Board at their July meeting. Their decision will go a long way in developing our possible mulch area recommendations in the future. The Director of Golf along with the golf course superintendent will be developing the golf related budgets for 2017 in the next couple of weeks. We will report back to the GAC our recommendations at the next meeting. Page 23

27 7d-8 Golf Course Superintendent s Report July 8, 2016 Since May 18 th the date that we opened the 8 EBMUD valve that provides supplemental irrigation water we have applied 88% of the amount of water compared to the same time period in Our goal during the remainder of the year is to meet 80% goal. We have installed 800 of Aquapore irrigation tubing within the drip lines of the redwood trees that are located in the recently non-irrigated mulched area behind the 2 nd tee on Dollar Ranch. Interestingly we observed that the soil was very moist where the shallow trench was dug to install the 1 water supply line in the un-irrigated area. We have added to our equipment inventory a 300 gallon sprayer that mounts on a tractor to hand water young trees with a subsoil probe. An added benefit to using the sprayer and probe is that small amounts of liquid fertilizer may be added to the water in the tank. With water use restrictions lifted we may return to our practice of planting new trees. We have not added trees during the past two years because of water use restrictions. We may add as many as 30 trees this year. The trees that will be planted must be drought tolerant. Several young trees on the golf courses that are not drought tolerant should be transplanted to irrigated turf areas and replaced with drought tolerant species. It was necessary to re-sod the 3 of the small tee areas on #10 Dollar Ranch. We were able to obtain two types of very aggressive drought tolerant hybrid Bermuda grass to replace the tee surfaces. The grasses were also placed on the small area that everyone uses on the 14 th tee. An access walkway was also installed at the 14 th tee. We are very close to filling one of our vacant maintenance staff positions. We are continuing to interview suitable candidates to fill another vacant position. We have cut many corners in regards to course maintenance during the past 12 months and are beginning to notice declining course conditions and a significant lack of our detail in overall appearance. My crew deserves a gold star for their ability to provide decent playing conditions during the past 12 months. Page 24

28 7d-9 A response, The Golf Course Mulch process methods explained. July 2016 Blake Swint Golf Course Superintendent The methods used to complete the mulch process on the golf courses were chosen and used primarily to reduce the cost of completing the process and achieve the same result. The areas to be mulched are much larger compared to the landscaped areas at Rossmoor. I do agree that complete removal of the weed infested turf in the areas prior to spreading chips would be best. The estimated cost to remove the turf prior to applying the chips was $.25-$.31 per square foot. Removing the turf would have added a minimum of $65, to the project. The areas where the chips are being spread are non primary turf areas on the golf course that are maintained at a much lower standard than the landscape turf areas at Rossmoor. The areas are infested with many very hearty weeds that the landscape managers at Rossmoor rarely deal with. Because there is such of a high amount of difficult to eradicate weeds in the areas to be chipped, they will quickly return and need to be treated with post emergence non selective herbicides. During the early stages of phase I we spread chips on both non pre sprayed turf and pre sprayed turf and got the same result. Both areas needed to be sprayed with Roundup six months later. By not pre spraying the area we eliminated a costly herbicide application. It should also be noted that Roundup is not effective during cool weather. I am quite confidence that the chips that are provided free of charge only from Rossmoor s primary tree contractor are clean. Removing beetle infested wood and bark from dead or dying trees is an industry standard. I am sure that that would apply to disease infested trees also. Relatively speaking, the amount of areas being chipped is rather small, less than 7% of the golf course land. The trees located in the chipped areas occupy a smaller portion of that area and will be easy to manage. Tree health will be monitored on a regular basis. Drip line irrigation will be easily installed at trees and placed inside their drip lines at the locations where needed. The shallow water table that exists at Rossmoor will be sufficient to meet the needs of most mature trees that are located in the areas that will be chipped. During the past 12 years far more trees have been added compared to the amount lost. Trees will be continued to be added for the long term each year provided that water use restrictions are not in place. Page 25

29 Agenda Item: 7d1 Subject: Final Decision on Mulching Along 7 th and 8 th Holes-Dollar Meeting Date: July 28, d1-1 SUMMARY REPORT GOLDEN RAIN FOUNDATION BOARD OF DIRECTORS REPORT PREPARED BY: Mark Heptig, Director of Golf REQUESTED ACTION/RECOMMENDATION: Consider recommendation to modify the Turf Reduction and Irrigation Modification on the Golf Course for Water Conservation Project-Phase 2 Plan along the 7 th and 8 th holes of the Dollar Ranch Golf Course by choosing an action from the Alternates and Options part of the report. BACKGROUND: In 2014, the golf course management team along with the Golf Advisory Committee embarked on a bold plan to change our water usage on the two courses. Because of economic and environmental reasons they sought to narrow the irrigated grass footprint of the golf courses and therefore save a valuable resource and save money. In the midst of this plan was a crippling drought that saw EBMUD demands a 40% reduction in water usage during 2015 and 2016 while imposing a 25% water rate surcharge. Phase 1 was completed during 2015, converting 6.5 acres and saving 3.8 million gallons of water per year. Phase 2 is in the process of being completed; it will cover about 4 acres and save 2 million gallons of water. In the spring of this year residents along the 7 th and 8 th holes questioned why the plan called for turf removal between their homes (mutual properties) and the golf courses. Over the next several months information has been shared, meetings attended and a number of possible alternatives suggested. The purpose of this report is to bring some closure to the process so we can move forward. ALTERNATES AND OPTIONS: OPTION 1: Finish Phase 2 as planned. In this scenario the work would be completed and at no additional costs. OPTION 2: Change the Phase 2 plan and restore the irrigation systems along holes #7 and #8. This plan would replace piping and sprinkler heads that were previously removed. The areas would be de-thatched, over-seeded and covered with a sand layer. All this work would be done in the fall when it is cool enough to grow grass. The cost for this option would be $3,755. The annual cost to water this area would be approximately $3,100 and would increase in cost as the EBMUD rates change. Page 26

30 - 2-7d1-2 OPTION 3: Finish Phase 2 as planned but with a higher grade of mulch to improve the appearance of the area. The cost for covering the entire area with a higher grade mulch would be $14,850. A variation of this plan could use the high end mulch just in front of the homes, which would be approximately 50% of the area, with the free mulch in other areas. The result would be a cost of approximately $7,425. OPTION 4: Some trees and plants could be added to act as both an additional barrier and also lend beauty to the project. Rebecca Pollon, Landscape Manager, has put together a plan that would add a variety of drought tolerant plants to this area. The two sections are about 500 feet in length (along the 7 th fairway) and 800 feet in length (along the 8 th fairway). The plants would be spaced approximately every five feet and so would total about 260 plants. If we used one gallon plants the total cost would be $7,200. If we used five gallon plants the total would be $12,500. The irrigation retrofitting for this project would total $5,000. The total cost to install plants and irrigation in these two areas would be between $12,200 and $17,500 plus annual watering costs starting at about $3,100. OPTION 5: This would be some combination of OPTION 3 and OPTION 4. Costs would depend upon which portion of the plan the Golden Rain Board would approve. However, the maximum installation cost of the proposed project would be $32,350 plus annual watering costs. STAFF RECOMMENDATION: Staff believes that OPTIONS 3, 4 AND 5 are expensive and may not give the community the desired results because it sets the precedent of using high end and hard to maintain materials. Staff recognizes that the Golf Advisory Committee has recommended OPTION 1 as the best alternative because it supports the original objectives to reduce the irrigation footprint of the course and redirect water to the playable parts of the course. Staff would still support OPTION 1; however, recognizing that the management of the golf course includes the aesthetic value of the course to all Rossmoor residents, we believe OPTION 2 also has merit with the following stipulations: 1. These areas will be maintained like all other golf course peripheral rough areas. Meaning, that when pressed by budget or drought restrictions they will be treated like the rest of the peripherals around the course. 2. The areas beyond the ends of the buildings (near 7 th green and 8 th tee, down the rough line near the 8th tee and adjacent to the 9 th tee and 8 th green) would be mulched according to the phase 2 plan. 3. In the event of future drought events and mandatory water restrictions, GRF may have to look at this area in the future as a candidate for turf reduction due to the factors mentioned above. SUBSEQUENT ACTIONS: Depending on the Board s decision, staff would then move forward to complete the project. Page 27

31 - 3-7d1-3 FINANCIAL IMPACT: There are several options available and there could also be a combination of options adopted. ATTACHMENTS: 1) A layout of Rebecca Pollon s landscape design. 2) A Google earth view of the golf course in October ) A copy of the Post Drought Maintenance Plan for the Golf Course. Page 28

32 Attachment 1 7d1-4 Page 29

33 Page 30 7d1-5

34 7d1-6 Rossmoor Parkway-Golf Course Turf Removal Project Drought-Tolerant Plant Recommendations Shrubs Mexican Sage-Salvia Leucantha Sunset Rockrose -Cistus Sunset Coprosma kirkii Lavendar- Lavandula ssp. Jerusalem Sage- Phlomis fruticosa Page 31

35 7d1-7 Small/Medium Trees Chinese Pistache- Pistache chinensis Crepe Myrtle-Lagerstroemia indica Olive-Olea europaea Large Trees Chinese Elm- Ulmus parvifolia Chinese Hackberry- Celtis sinensis Blue Oak- Quercus douglasii Page 32

36 Attachment 2 Page 33 7d1-8

37 7d1-9 Rossmoor Golf Course Post Drought Maintenance Business Plan The water use restrictions that were put into effect last summer by EBMUD, the utility district that provides supplemental irrigation water for the golf courses at Rossmoor will no longer be in place on July 1, The irrigation district forced 40% reduction of 2013 water use and added a 25% water use surcharge that was put in place on July 1, Because of the high amount of rainfall received this past year our demand to use supplemental irrigation water has lessened. Because we have been able to capture more runoff water for irrigation purposes this year we have been able to increase the amount of water applied on the golf courses to 80% of The water use restrictions that occurred last summer made it necessary to change our maintenance business plan. It was necessary to reduce our crew size by two workers. We also chose not to fill the vacant pest control specialist position that could have been filled earlier in the year. The staff reduction was made because there would be less irrigated turf areas to mow and because the money that would have been used to pay for their labor and payroll expenses was going to be needed to cover non budgeted expenses caused by the drought. A drought recovery business plan drafted in early September 2013 described an expense of nearly $63, which would used to pay for materials that included additional fertilizer, an increased amount of selective herbicides, sand and soil amendments. Money also needed to be spent on seed, sod and high quality more stable mulch that would be placed at locations close to tee areas where irrigation sprinklers were removed. Fortunately the added expense totaled only $45,568. We decided not to purchase any sod. During the first half of 2016 it has been necessary to continue to spend the money not spent on labor to pay for non budgeted funds to purchase more high quality mulch, Bermuda grass seed, top-dressing sand to be used to on fairways during seeding the Bermuda, a limited amount of sod and soil conditioners. During the second half of 2016 turf restoration will need to take place at numerous locations where turf quality is still diminished. As the second half of 2016 approaches we will move forward by filling two of the three vacant golf course maintenance workers positions. We will delay replacing the third vacant staff position until we have been able to assess our ability to care for less irrigated turf that will exist following the completion of turf reduction projects. The result of having a larger staff than last year will allow us to increase the frequencies of many of our maintenance tasks. The additional staff members will also be used to groom and improve the playability of recently established mulch areas. 1 Attachment 3 Page 34

38 7d1-10 Because water rates have skyrocketed during past few years and because significant rate hikes are projected to continue we intend to voluntarily apply 20% less water than we did in 2013 during the 2016 irrigation season. Our operating budget simply does not have the funds to cover the expense of irrigating at 100% of 2013 use less the water not applied the result of phase I and phase II turf reduction programs. A water budget program which follows a daily 80% water use schedule will be implemented. It will be necessary to constantly monitor water use. It will be necessary to reduce irrigation cycle times at many non primary turf areas. A key factor that will allow meeting our 20% reduction goal will be continuing to turning off sprinklers at potential future turf reduction sites most of which are located at perimeter areas. Mowing heights will be raised to ¾ inches on Dollar Ranch fairways to increase root depth and the perimeter areas where sprinklers are turned off will be raised to 2½ inches to allow an increased amount of dry organic matter to exist at the soil surface. It will be essential to continue to reduce the amount of money spent on irrigation water to allow important course maintenance practices to continue. Reducing water costs will also be a key determining factor in continuing to complete course improvement projects. During the second half of 2016 in will be necessary to complete scheduled bunker renovations on 3 holes, a turf nursery is to be constructed and a decomposed granite service road between the 8 th tee and 7 th green on Dollar Ranch is planned. Drainage improvements will continue to take place during the second half of 2016 and several tee area improvements are planned to take place. 2 Page 35

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