Latest / Bonita Bay Club's Podcast / The Real Cost Of Doing Nothing

Transcript

The Real Cost Of Doing Nothing · Bonita Bay Club's Podcast

• 0:00
  Speaker: Bonita Bay Club members, this is Fred Fung, your general manager.
• 0:03
  Speaker: I'm excited to bring the next episode of a podcast that we have regarding the clubhouse.
• 0:09
  Speaker: And I have a special guest today, Mr.
• 0:11
  Speaker: Burton Adams, who has been our director of engineering for 12, 13 years.
• 0:16
  Speaker: Burton, I think you joined in 2013.
• 0:19
  Speaker: And Burton's got a tremendous background in general construction, project management, and mechanicals, particularly HVAC.
• 0:29
  Speaker: Burton, welcome.
• 0:31
  Speaker 1: Thank you for having me.
• 0:32
  Speaker 1: It's a pleasure to be here.
• 0:34
  Speaker: So we recently launched the new clubhouse proposal, which was a two-phase replacement of our current clubhouse.
• 0:42
  Speaker: Some of the feedback from members has been that the current clubhouse is fine as it is, suggesting that doing nothing is an option.
• 0:50
  Speaker: But doing nothing doesn't cost nothing.
• 0:52
  Speaker: So the current clubhouse is a 40-year-old facility, and there's a working list that we maintain of items that would need to be addressed over the next five to seven years if we did not undertake a major clubhouse project.
• 1:06
  Speaker: And while this list changes over time, it's currently estimated at between 30 and almost 40 million dollars.
• 1:14
  Speaker: So, Burton, the first question I have for you is when did the list originate?
• 1:19
  Speaker: Meaning, how long have we been holding off on some of these items and why?
• 1:24
  Speaker 1: Well, you know, we started looking at the clubhouse when we solicited the McMahon group to take a look and help us determine some of the things we would encounter going forward.
• 1:34
  Speaker 1: And at that time, we began compiling a list of things that might need replacement, looked at their useful life and so forth.
• 1:42
  Speaker 1: And it started then about three years ago.
• 1:45
  Speaker: So tell us about the list.
• 1:46
  Speaker: Like what categories or areas does it include and what represent some of the largest issues and potential expenses?
• 1:55
  Speaker 1: Well, the list is pretty extensive.
• 1:57
  Speaker 1: It's not a complete list by any means, but it covers a lot of ground.
• 2:01
  Speaker 1: The major categories would include HVAC and plumbing, electrical and electrical services, flooring and interiors, hardscapes, exteriors, and so forth.
• 2:14
  Speaker 1: We've got well over 50 items on the list, and like you said, in excess of $35 to $40 million.
• 2:22
  Speaker: Of those categories that you mentioned, what are the one or two largest categories?
• 2:28
  Speaker 1: Well, the two largest impacts that we would feel right away would be from HVAC.
• 2:34
  Speaker 1: We've got a lot of equipment that we've been looking at and keeping eyes on and patching and keeping it going as well as possible.
• 2:42
  Speaker 1: But we've got some major components that would need to be replaced, some even sooner than five years.
• 2:49
  Speaker 1: Some could even be replaced today.
• 2:51
  Speaker 1: And the other would be the exteriors of the building.
• 2:54
  Speaker 1: You know, we're due for a full paint job.
• 2:57
  Speaker 1: We've got areas around the building with the associated hardscapes and upgrading of the windows and so forth that need to be done.
• 3:05
  Speaker 1: So those are our two biggest components that we're looking at right now.
• 3:09
  Speaker: So if we were to spend this $35 or $40 million, doesn't that just fix our issues?
• 3:16
  Speaker 1: Well, it definitely fixes them for now, but it doesn't change anything related to the core infrastructure associated with the building.
• 3:24
  Speaker 1: It doesn't allow for any room for expansion.
• 3:26
  Speaker 1: I mean, frankly, we are beyond maxed out on a lot of our services, especially when it comes to electrical.
• 3:33
  Speaker 1: Our panels, and when I say panels, I mean the main switch gears, the size of the transformer, the main distribution panels are all running at capacity, maximum capacity.
• 3:46
  Speaker 1: Our HVA systems are actually overworking for what they were initially designed for.
• 3:52
  Speaker 1: Folks may not know, and some may remember, but originally this facility had an ice bank system.
• 3:58
  Speaker 1: And why that's important is that it allowed the equipment inside the building to be sized smaller than normal because you can run much colder temperatures of water and still get the desired room temperature.
• 4:12
  Speaker 1: At some point, prior to me coming on board, due to the inherent inefficiencies of the ice bank systems themselves and how you make and store the ice, that system was abandoned.
• 4:24
  Speaker 1: However, all the air handling equipment, original equipment, is still in place and it has much smaller piping associated with it, meaning that we really struggle to maintain comfortable temperatures throughout the building due to the size of the equipment that we have in place.
• 4:42
  Speaker 1: And another reason that that's important, Mr.
• 4:44
  Speaker 1: Fung, is that some of this equipment is massive.
• 4:48
  Speaker 1: And when I say massive, I mean some of these air handlers are as big as a minivan, some even as big as a minibus.
• 4:55
  Speaker 1: And they were put in place during original construction.
• 4:58
  Speaker 1: We're talking up to 40-year-old equipment that was placed prior to trusses and roof systems being put on.
• 5:05
  Speaker 1: We managed to keep these systems going, but at some point they're going to have to be replaced.
• 5:11
  Speaker 1: And to make that happen, in a lot of cases, we're talking crane work, tearing off roofs, getting roof systems re-engineered, and redoing that system from basically the ceiling up to take care of those issues.
• 5:26
  Speaker 1: So that's where a lot of the cost that we're projecting right now comes from.
• 5:30
  Speaker: I see, because I know that when we talk about the HVAC system, we also talk about roof replacement in the same breath.
• 5:36
  Speaker: So is that why we would need to replace the roof?
• 5:40
  Speaker: And would it be sort of put together the same way in terms of where the mechanical systems would go?
• 5:46
  Speaker 1: Well, you know, you said this $35 to $40 million, does it fix the problem?
• 5:50
  Speaker 1: Well, not exactly, because you're still left with the same building.
• 5:55
  Speaker 1: And unless you do some dramatic changes, you're going to be left with equipment that's going to be encapsulated by a roof system.
• 6:03
  Speaker 1: So once you put it back, somewhere down the road, somebody's going to have the same problems that we have right now when it comes to repair and replace what's there.
• 6:12
  Speaker 1: We would look at alternatives right now.
• 6:14
  Speaker 1: We do have some space on the flat portion of our roof, but everything that's associated with the bigger components of the HVA systems that we have in place now is going to require big cranes, lots of roof work, tear-offs and put back.
• 6:31
  Speaker 1: It's a pretty big undertaking.
• 6:33
  Speaker: So is it safe to say that if we spent or invested, whatever term we would use, this $35 or $40 million, we don't really gain any functionality and growth potential of the existing clubhouse?
• 6:47
  Speaker 1: You definitely don't gain any growth potential.
• 6:50
  Speaker 1: Functionality, yes, we would size it through our chill water system that we're using that that doesn't have an ice bank system, but you definitely wouldn't have any growth potential.
• 7:00
  Speaker 1: You're basically going to be able to put it back where it came from to make it work.
• 7:04
  Speaker: We talked about that.
• 7:05
  Speaker: This list started three years ago when we were working with the McMahon group, and you provided me with a list, and I chatted with the board and showed them some of the uh the issues and expenses that we'd be looking at coming forward and whether or not we should spend those monies or if we should look at some other alternatives in terms of a renovated, expanded, or new facility.
• 7:26
  Speaker: But we also know that this is a working list, so to speak.
• 7:29
  Speaker: So, you know, what do we mean by that?
• 7:31
  Speaker: And can you give me an example of how this changes and even recently how it's changed?
• 7:36
  Speaker 1: Well, it changed as soon as 15 minutes ago before I came in here, to be quite honest with you.
• 7:42
  Speaker 1: So we have a lighting system inside the clubroom in the 55th hole that's already obsolete.
• 7:51
  Speaker 1: It was put in in 2013.
• 7:53
  Speaker 1: Those components are no longer manufactured.
• 7:56
  Speaker 1: To find, in simple terms, a light fixture, it's a little more complicated than that, but to find even a light fixture, you have to go to sources like eBay or some other type of uh supplier because you just can't get them off a shelf anymore.
• 8:10
  Speaker 1: You can't call up Cooper Lighting and say, hey, I need one of these portfolio fixtures that's very proprietary.
• 8:18
  Speaker 1: So we're looking right now, heaven forbid, you look up at the ceiling, you could see a couple of dark spots inside the clubroom.
• 8:25
  Speaker 1: That's not because we're being negligent, it's because it's nearly impossible to find a replacement.
• 8:31
  Speaker 1: And we're at a point now where we don't have the aesthetic and we're not able to create the mood that we should be accustomed to when we come in for a dining experience.
• 8:41
  Speaker 1: So we need to replace that system.
• 8:43
  Speaker 1: So I'm looking at that right there.
• 8:44
  Speaker 1: And just off the top of my head, we're looking at $125,000 to have somebody come in and replace all of that, not including the disruption that it causes to the dining experience.
• 8:57
  Speaker: Well, great.
• 8:57
  Speaker: That's very helpful, but I didn't really want to hear that news.
• 9:00
  Speaker: But thanks for sharing, Burton.
• 9:02
  Speaker: This is a fairly short podcast.
• 9:04
  Speaker: And one other thing that I just would be remiss by not saying, you know, I tease Burton a lot and we have a good time at work, but I would like to take this opportunity just to thank Burton on behalf of the entire club for what he does.
• 9:17
  Speaker: I mean, some of the things that he managed to accomplish are nothing short of remarkable.
• 9:22
  Speaker: And I think that we all owe him a huge round of applause and thanks and appreciation for his hard work and his dedication.
• 9:31
  Speaker: He's always available.
• 9:32
  Speaker: He's always coming up with ways to keep things running as best as he can.
• 9:38
  Speaker: I joke that he overuses duct tape and rubber bands and Ryobi drills, but other than that, he really is incredible and how he manages projects is second to none.
• 9:48
  Speaker: So, Burton, thank you for being such a great partner.
• 9:51
  Speaker: We appreciate you tremendously, and we're just really fortunate to have you here.
• 9:55
  Speaker: Thanks for being our guest today.
• 9:57
  Speaker 1: Well, I appreciate you, Mr.
• 9:58
  Speaker 1: Funk.
• 9:58
  Speaker 1: Thank you for those very kind words.
• 10:00
  Speaker 1: It's it's humbling to hear you say those things.
• 10:03
  Speaker 1: But uh, this is a uh it's it's a passion of mine, and I love being here at Benita Bay.
• 10:08
  Speaker 1: It's quite frankly the best place I've ever been.
• 10:10
  Speaker 1: I love it so very much.
• 10:12
  Speaker: I think we I think many of us feel the same way.
• 10:14
  Speaker: So thanks for bringing that up as well, because that's that's what keeps us going.
• 10:18
  Speaker: All right, everyone.
• 10:19
  Speaker: Thanks again, and we'll look forward to hearing your feedback on today's podcast and continuing these with many more.
• 10:24
  Speaker: So long for now.