Information on the Proposed Assessments and Borrowings

June 18, 2014

What is the scope of the project that the assessments and debt proceeds will be used to fund?

There are two portions to the project, the ‘pool portion’ and the ‘tennis portion.’

The project is currently being planned jointly, each project could be undertaken separately and is being funded separately.

The pool portion includes:

•Renovation of the pool bathroomsto be compliant with American with Disability Act (ADA) and related requirements

•Renovation of the snack bar

•Gated entrance to the Complex compliant with American with Disability Act (ADA) and related requirements

•Replacement and expansion of the pool deck

•Replacement of pool plumbing, electrical and ladders/blocks/diving board.

•The addition of stairs to the shallow end of the pool

•Refinishing and retiling of the concrete pool structure

•Replacement and expansion of the wading pool

•Fencing and landscaping

The tennis portion includes:

•The addition of tennis lights to the tennis courts

•Resurfacing of the tennis courts

Is there a golf portion to this project?

Preliminary discussions related to the construction of an indoor golf facility did occur but the Board of Governors decided not move forward with such a facility at this time.

Is this one project or two projects?

The project was planned for construction purposes as one project.
The projects are not dependent upon each other and can be completed separately.

What is the cost of the project?

The Pool Portion:

Renovations to Pool House $ 300,000

Renovations to Pool and Pool Deck $ 500,000

Contingency for Pool Construction $ 50,000

Total$ 850,000

The Tennis Portion:

Tennis Lights $ 130,000

Court Resurfacing$ 20,000

Total$ 150,000

Did earlier estimates for this project come in lower?

Our current cost estimates for the pool portion of this project have been consistent with earlier estimates.
Additional elements including replacing the wading pool and concrete retaining walls for the expanded deck, have brought final estimates for the pool portion of the project to $ 800,000, excluding the contingency.
Costs for the tennis portion of the project were not previously estimated in total until now.

Why is the pool portion of the project being considered?

Continued maintenance and improvement is not possible given the age (40 years) and configuration of the pool complex. For example, current building codes will not allow us to improve the bathrooms without providing ADA access which requires significantly more square footage.
Certain repairs cannot be accomplished independently. For example, the underground pool plumbing is leaking but removal of the concrete pool deck is necessary to repair those leaks.
Compliance with the City of Melrose’s Health Department. Annually we have ‘emergency’ repairs in order to receive our operating license from the Health Department to open the pool. Eventually we may encounter such a repair that will prevent the pool from opening for the season. We do not believe continuing to operate the pool in this fashion is sustainable or prudent.
The pool complex no longer meets the needs of current pool members. For example, each bathroom only has two toilet facilities. With usage over 300 members and guests on an average summer day, the bathrooms literally cannot handle the capacity.
The current snack bar size and configuration does not allow us to accommodate expanded food service or minimum dining.
As the primary entrance point for new Club members, we believe a well maintained and attractive pool is a necessityfor the continued sustainability of Bellevue Golf Club.

What is the quality of the finishes that have been selected for the pool and building?

The finishes incorporate these criteria (1) low cost, (2) durability, (3) timeless design and (4) quality construction.

Why is the tennis portion of the project being considered?

Hard court (as opposed to grass or clay) tennis courts have a useful life of 18-20 years depending on usage, weather, and geographic region. A critical component of court maintenance is resurfacing which is typically recommended every 5-7 years, again, depending on usage and environmental impact. In order to maintain their useful life, Bellevue’s tennis courts are in need of a proper resurfacing, as evidenced by the existence of numerous cracks of varying length and width across all four courts. Some patchwork has already been completed in order to get us through the 2014 season.
The decision to pursue the addition of lighting for the tennis courts is driven by several factors. First and foremost, lights extend the playing season from April to November and expand the potential playable hours by 23%, assuming a 10 pm curfew. By enabling night play, tennis members whose schedules and other commitments prohibit them from participating in much of the programming would now have the ability to utilize the courts more often and get more out of their membership. Additionally, we believe the lights, resurfacing, and other smaller projects will breathe new life into the tennis facilities and enhance the overall tennis membership experience. Lastly, with upgraded facilities we believe there will be increased interest in joining tennis from existing non-tennis members of Bellevue, as well as from new members.

Who is responsible for the project?

The pool portion of the project is sponsored by the Pool Committee and tennis portion of the project is sponsored by the Tennis Committee.
The project is currently overseen by a multidisciplinary committee known as the Sport Complex Advisory Committee (SCAC) that was formed by President Mike Tarpey. Members of the Sports Complex Advisory Committee include:

Member / Position
Mike Batchelder / Pool Committee Vice Chair
Karen Curry / House Committee Co-Chair
Steve Curry (Chairperson) / Pool Committee Chair
Jason Deeble / Tennis Committee Co-Chair
Kristen Doucette / House Committee Co-Chair
Barry Laidlaw / Construction Advisory Committee
Frank Mahoney / Golf Committee Chair
Jeff Monteleone / Golf Professional
Brian Skinner / Grounds Professional
Justine Sterling / Member
Diamond Tutela / Member
Dana Wiklund / First Vice-President
Page Wilkins / Member
Andrea Zibaitis / Tennis Committee Co-Chair

What is the status of the project?

Over the past several months, much planning was accomplished. The SCAC believes the scope of the project is appropriate and the costs are appropriately estimated. Specifically,
A site survey was completed
Architectural plans were developed
Proposals were received from four vendors for the pool and deck renovations
Proposals were received from three general contractors for the building renovation
Proposals were received from three vendors for the tennis lights
Proposals have been received from three vendors for the tennis resurfacing
Preliminary discussions have taken place with the Building Department of the City of Melrose
It should be noted that no contracts have been signed, no commitments have been made and only limited funds have been expended for architectural and survey work. Progression of the project beyond this point will only occur if the members approve the additional assessments and the borrowing of the required debt.

When will the pool renovation take place?

The renovation project is planned to start in September 2014 and be completed in May 2015. We do not anticipate any disruption to use of the pool complex in either 2014 or 2015.

When will the tennis projects take place?

Although there is not a specific timeline defined yet for the tennis projects, the lights could be installed as early as September / October 2014. The court resurfacing would likely take place in May 2015. We do not anticipate any significant disruption to use of the tennis facilities in either 2014 or 2015.

What is the status of permitting for the project?

Preliminary discussions with the City of Melrose have occurred.
We understand that the project will require four separate permits:

–Pool Building Renovation

–Snack Bar Building Renovation (Melrose Health Department)

–Pool Renovations and Deck Replacement

–Tennis Court Lights

If funding is approved, we plan to file the permit applications by July 1.
We expect the permits for the Pool Building and Pool/Deck to be approved without a variance.
We believe a variance maybe required for the tennis court lights before a permit can be issued.
Club will receive the permits or a denial letter 1-2 weeks after the application. If denial letter is received, the club may appeal to the Board of Appeals for a variance which may take 4 weeks.

If the pool portion of the project were to be completed would there be additional operating revenue or expense incurred to operate the renovated pool complex?

We anticipate some minor adjustments to our operations, as follows:
Additional dining revenue which we believe that it would be off-set by dining revenue reductions at the Club House. We would also be able to allow dining at the snack bar to count toward minimum dining.
Hiringof additional snack bar staff but we believe this labor cost would be offset by the increased revenue.
Addition of one lifeguard to each shift to supervise the expanded wading pool.
Consideration of expansion of pool membership due to expanded deck space (resulting in additional revenue).

If the tennis portion of the project were to be completed would there be additional operating revenue or expense incurred to operate the renovated tennis complex?

We anticipate some adjustments to our operations, as follows:
We anticipate additional utility expenses associated with the lighting project, the amount of which would be dependent on actual usage. The proposed lighting system from Musco Sports Lighting is environmentally friendly, generates energy savings of 50% over traditional flood lighting systems, reduces spill light by over 50%, and comes with a 25 year warranty with zero maintenance costs.
We believe additional revenue could be captured from expanded membership due to the appeal of our enhanced facilities. Conservatively, if tennis membership were to expand by 5%, that would result in an additional $2,250 per year which would more than likely offset the additional operating costs of the lights.
With the addition of lights and the court resurfacing, we believe there could be additional revenue opportunities to host tournaments/matches and rent our tennis facilities during non-peak times. For example, for the last two Spring seasons, we generated additional revenue from the Arlington Catholic High School tennis program by allowing them to use our facilities to host their home matches

Why are we voting on the pool portion of the project again? Didn’t we just vote on that at a special all member meeting in April 2014?

At the meeting in April 2014, a motion was approved to permanently increasepool dues by $200tofund the debt service on the majority of the pool portion of the project.
The $200 dues increase for 2014 has been billed to pool members only.
We are now considering motions related to the pool project to:
Fund the remaining portion of the pool project with a house assessment of $ 35
Authorize the borrowing of the funds to pay for the project

Will the pool renovation project take place if the assessment and borrowing for the pool portion of the project are not approved?

The Pool Committee does not see any feasible way to accomplish the project without the assessment and the borrowing. After much consideration the Pool Committee feels that a project of this scope is the most prudent and cost effective way to address the current infrastructure issues related to the pool complex.

Will the tennis portion of the project take place if the assessment and borrowing for the tennis portion of the project are not approved?

The installation of the tennis lights will not occur if the assessment and borrowing are not approved. The Tennis Committee would continue to pursue the court resurfacing prior to the start of the 2015 Summer schedule,utilizing available cash reserves to pay for the project

How many motions will be voted on June 23 at the special meeting?

It is anticipated that two votes will be taken.
One vote to approve a $35 per year, 25 year house assessment and the borrowing of $550,000 to fund the pool portion of the project.
A second vote to approve a $50 per year, 25 year tennis assessment, a $10 per year, 25 year house assessment and the borrowing of $125,000 to fund the tennis portion of the project.

Why are assessments being made of house members to pay for a pool and tennis project?

Historically, large capital projects at Bellevue are funded by both those members who will directly benefit from the project and by the general membership. The reason for this is that all members benefit, directly or indirectly, from substantial improvements to our Club. The SCAC believes that such benefits will be derived from this project. As a prior example, the construction of the golf maintenance building and the installation of the irrigation system in 2004 year were funded by an assessment to golf members and non-golf members.For that project, golf members paid 80% and non-golf members paid 20%.
The proposed funding for the project results in pool and tennis members paying 80% of the costs of their projects with the remaining 20% being funded by the non-pool and non-tennis members.

Who will pay the house assessments?

All house members will pay the house assessments, if approved. The total of the two house assessments is $45 per year. We anticipate billing the assessment quarterly but the details of the billing have not been finalized.

Who will pay the tennis assessments?

Only tennis members will pay the tennis assessment, if approved. We anticipate billing the $ 50 annual assessment in quarterly installments but the details of the billing have not been finalized.

Who recommended the house assessment of $35 and $10?

After consideration of several factors, the Sports Complex Advisory Committee recommended the assessment to the Governing Board. At a meeting of the Board of Governors on June 9, after careful deliberation, the Governing Board voted in favor of a special meeting to consider the assessment.

Who recommended the tennis assessment of $50?

After consideration of several factors, the Finance Committee, with the support of the Tennis Committee, recommendedthe assessment to the Governing Board. At a meeting of the Board of Governors on June 9, after careful deliberation, the Governing Board voted in favor of a special meeting to consider the assessment

Who recommended the house borrowing of $ 550,000 to fund the pool portion of the project and $ 125,000 to fund the tennis portion of the project?

After consideration of several factors, the Finance Committee recommended the borrowings to the Governing Board in response to a request from the SCAC for financing options for the project. At a meeting of the Board of Governors on June 9, after careful deliberation, the Governing Board voted in favor of a special meeting to consider the borrowings.

Who can vote on motions related to the assessments and borrowings?

Shareholding members of Bellevue Golf Club are allowed to vote on both motions.

What additional approvals are needed for the projects to move forward?

If the two motions are approved the full project will begin and will be managed by the SCAC in accordance with the procurement policies of the Club. Further votes or approvals are not required. If the pool motion is not approved, the pool portion of the project will not move forward. If the tennis motion is not approved, the tennis lights portion of the project will not move forward.

What is the proposed financing for the project?

As show below we are proposing to fund the project with $ 225,000 in cash from operating reserves and permanent improvement funds. The Remaining $ 775,000 will be borrowed at an estimated 5% interest rate and repaid over 25 years.

How can we borrow $775,000 if the two proposed motions are asking for approval to borrow only $ 675,000?

In November 2014 at the Club’s Annual Meeting the membership approved borrowings of $ 100,000 to fund phase one of the pool portion of the project. Those funds, while approved, have not yet been borrowed due to the delay in Phase I of the project. It should be noted that the pool portion of the project is now being done as one project and the original Phase I one is now part of the current proposed project.

What is the status of the financing for the project?

No borrowings have been made.
We have consulted with Eastern Bank with whom the Club has existing banking arrangements. The bank has visited the Club and is supportive of the project. Our finance committee will also consult with other banks to ensure that Eastern is the best option prior to making any borrowing.
Our current financials, including the pro forma of the proposed assessments are thought to be sufficient to demonstrate ability to repay the loan.
We anticipate being able to borrow the required funds under the following terms
Interest rate of approximately 5%, fixed for five years
25 year term and amortization

What other debt does the Club have outstanding?

The club owes approximately $ 38,000 to Eastern Bank the proceeds of which were used to finance grounds equipment. The Club also has bonds due to members in the amount of approximately $ 374,000, the original proceeds of which were used to finance the construction of the golf maintenance building and the installation of the irrigation system in 2004.

What if I have more questions?

Members of the Sports Complex Advisory Committee and the Governing Board will be available at the meeting on June 23 and would be pleased to respond to any and all questions.
Before the meeting, please reach out to our Sports Complex Advisory Committee Chairperson, Steve Curry. Steve can be reached by e-mail at or by phone at 617-835-0610.

Both the Sports Complex Advisory Committee, the Pool Committee, the Tennis Committee and the Governing Board appreciate our members’ consideration of this project and respectfully request your support.