June 2007 Inside GCM this month

LEAD STORY • Randpark Golf Club 1

COURSE MANAGEMENT • Audubon 4
COURSE MANAGEMENT • Greenkeeper Learnerships 7
COURSE MANAGEMENT • Drainage Planning 9
Taxation • Tax Problems 11
BIRDIES AND BOGEYS • Snippets 12
HR Legal • 3 Ways to Terminate an Employment Contract 12
COURSE MANAGEMENT • Using Winter to the Fullest 13
survey • KPMG Benchmark Survey 14

A monthly newsletter brought to you by Compleat Golfer magazine.  Volume 3 Issue 6

It’s not what you do but what

you achieve that is important
G.C.M. is all about making the tasks of golf club leadership easier. With this in mind
Ian Leach interviewed senior management at Randpark Golf Club and came away
refreshed by the new spirit of friendly customer care and service that is emerging at
one of Johannesburg’s traditional old clubs.
Randpark Golf Club was specifically sin-
gled out for this interview because of the
dramatic change that has taken place at the
club over the past year. Jimmy Metcalfe, an
icon in golf and club management circles,
had retired after leading the club continu-
ously for a period of 42 years. In his place
the club has appointed a 35 year old B. Com
graduate as CEO, who’s prior work expe-
rience in the golf industry was 10 years at
Westlake Golf Club in Cape Town. Doug
Bain served four of these ten years as general
manager. One of Doug’s first major deci-
sions was to create the position of Director
of Golf Operations, which seems to be long
The “A Team” at Randpark (left to right) Richard Metcalfe, Derek Lloyd and Doug Bain
overdue in a prominent club of this size with
its 2 200 members, 90 000 annual rounds of
golf and two fine golf courses. working career of 25 years at the club. Ian: What do you see as your main pur-
Derek Lloyd has been appointed in this Richard currently fills the position of pose and responsibilities?
position with vast experience in sales, mar- Senior Golf Course Manager and is the only
keting and operations in the private sector person in Africa to hold the qualification, Doug: “Members are the club. I need
and hospitality industry but not a single “Certified Golf Course Superintendent” to reinstate pride among the members.
day’s prior experience in a golf club. The from the Golf Course Superintendents Existing members are the best marketers to
knowledge of golf is ingrained through Association of America. A more diverse bring in new members. With happy mem-
years as an active member of two golf clubs combination of people, skills and experi- bers the numbers will grow and so will the
in the Western Cape. ences one could not find, yet their approach financial strength of the club.” Doug also
The third member of the senior manage- to their respective positions fits in as though recognises the importance of keeping the
ment trio is none other than Richard Metcalfe, they have been working together as a well-
Jimmy’s son, who has served his entire knit team for decades. Continued on page 3

 NDREW WILSON • email: anorbury@iafrica.com • cell: 082 575 3861

■ Editorial A A monthly
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Golf Club Management June 2007 


Continued from page 1
courses in prime condition, building a great
team of people, developing a solid business
plan and creating a long term financial plan
as key to his job.
Derek: “I will have accomplished my
purpose when all members, guests and cor-
porate groups leave the club with their golf
expectations exceeded.” Clearly Derek does
not see his job as the typical Director of Golf
who oversees the game of golf at the club.
He sees it in a much broader vision with a
focus on customer satisfaction. Already in
the short period since his arrival at the club
Derek has:
• Introduced on-tee starters with umbrellas,
suntan lotion, score cards, pencils and
free ice cold water;
• Replaced the invasive public address
system with discreet hand held radios;
• Eliminated the “visitors only” section in
the change rooms;
• Removed superfluous signage with an
aim of instituting uniform instructive sig-
nage both on and off course.
• Identified all rental carts with the players
name, tee time and course;
• Initiated a member satisfaction question-
naire on the appearance and condition of
the golf courses.
Richard: “My main purpose is to present
both the Windsor and Randpark golf courses
in outstanding condition year round, that
meets and even exceeds all of our customers
expectations.” In order to accomplish this
Richard recognises his role as a team player
who has to work within the typical budg-
etary constraints found at every golf club
around the world.
Ian: What background and experience
would you say is ideal for being successful
in your job?
Doug: continuously improve the condition and
• A good financial qualification with
experience
• Golfing experience in the game and busi-
ness of golf
• Strong leadership and communication
skills
• Honesty, integrity, patience and tolerance
Derek: • Manage the availability and quality of our
• A passion for golf
• A passion for people and their well being
• Good business skills and experience
Richard:
• A qualification in Horticulture or
Agriculture
• A diploma in Turf Grass Management
• A minimum of five to ten years’ hands
on practical experience in course
management
Ian: What are the biggest challenges you
are facing and how do you plan to manage
them?
Doug: “My biggest challenges are to:
• Implement a long term strategic plan with
support from committee, management
and members.
• Formalise the organization structure and
to reduce the total employment cost in
relation to total operating cost.
• Improve the overall security and reduce
the security risk
• Sustain all membership numbers and grow
those categories with available capacity
“Our team is working hard individually
and collectively on all of these major chal-
lenges together with many lesser challenges.
We have a winning team with a proven for-
mula to overcome these challenges and we
are confident of success.”
Derek: “My biggest challenge is to posi-
tively enhance the perception of Randpark
in the minds of members, guests and corpo-
rate groups. My next biggest challenge is
to increase recognition for the fantastic but
different tests that our two courses offer. To
overcome these challenges we have imple-
mented a well structured marketing drive
directed at our golfing public to raise their
awareness and appreciation of the Randpark
golf courses and we are also working to
playability of the courses.”
Richard: “My biggest challenges are to:
• Improve on the environmental manage-
ment of our golf courses;
• Continue to build on employee
relationships;
special feature
scarce water resources;
• Remain competitive by keeping the
courses as high as possible in the annual
rankings and to manage this within tight
budgetary constraints.
“The environmental development plan
is particularly important to me and to the
club and as a result it is receiving prominent
focus at club leadership level.”
Ian: What would you like to see different
this time next year as a direct result of
your efforts?
Doug: “It would be my dream to see:
• All of our membership categories at
capacity
• A flush cash flow position
• Improved levels of overall customer
service and satisfaction
• A substantially improved golfing experi-
ence for every single golfer who enters
our gates”
Derek: “I want to see more smiles and
genuine enjoyment from every single
person who comes to play a round of golf at
Randpark. This is their leisure time and is to
be respected.”
Richard: “I want and expect to see con-
siderable progress with our environmental
development plan. I’m working towards
having a better trained, skilled and produc-
tive workplace. I also want to see further
improvement in the condition of our golf
courses and, as a result of all of this, I hope
to please thousands of proud and happy
members as well as visitors.”
We hope that many golf clubs will take a
leaf out of the Randpark experience. They
have adopted a fresh new approach that is
service and customer driven. From this, the
business opportunity will almost automati-
cally grow and we expect to see the club
grow from strength to strength.
For more information contact
Doug Bain at (011) 476-1691 or
ceo@randpark.co.za and Ian Leach at
082 892 8693 or ianleach@bdmail.co.za
Golf Club Management June 2007 
course management
Ten Simple Ways to Make a Difference
As the world becomes more eco-aware, the pressure mounts on golf clubs to become
proactive. GCM visited the Audubon website to find out what clubs can do to
contribute to conservation. Here are their top ten suggestions.
1. Plant INDIGENOUS plants
Make a conscientious effort to plant native
plants in your landscape. Set a goal of main-
taining at least 80% of the trees, shrubs,
and flowers on your property with indig-
enous species. Surveying your property and
nearby natural areas can help you determine
which species will grow best in your area.
Purchase plants from locally-grown sources
when possible. These will tend to be best
adapted to local growing conditions.
The Benefits:
• Contributes to the conservation of
regional biodiversity.
• Showcases the uniqueness and beauty of
your area.
• Provides food and cover for indigenous
wildlife.
• Because indigenous plants are well
adapted to local climate and soil condi-
tions, they often require less maintenance
than non-indigenous species
2. Naturalize
Consider potential locations and ways you
might modify your existing landscape to
include more or different plantings. By
naturalizing unused or minimally-used parts
of your property, you’ll provide better hab-
itat. Incorporate naturally-landscaped areas
in phases so that you can learn and experi-
ment with what works best for your property
before making a major investment of time,
effort and money.
The Benefits:
• Provides needed food and cover for
wildlife from an increased diversity of
plants.
• Contributes to overall habitat in a local
area, especially when naturalized areas
connect between properties.
• Lowers maintenance costs and reduces
the need for high-intensity maintenance.
• Supports aesthetic appreciation for
natural beauty.
 June 2007 Golf Club Management
3. Add variety
Plant various heights and types of plants,
from ground cover to shrub and tree layers.
In woodlands, leave understory shrubs, non-
woody plants, and leaf litter. Some species
prefer to live in treetops while others like
shrubby undergrowth; still others spend
their lives on the ground. Adding variety
creates more levels of the food chain and
helps a diversity of species find their pre-
ferred habitat needs.
The Benefits:
• Allows a greater variety of wildlife
species to take advantage of landscaped
areas and habitats on your property.
• A diversity of plants attracts a diversity of
wildlife.
4. Maintain water for
wildlife
Maintain at least one water source for wild-
life. This could be a simple birdbath with
a mister or drip attachment, or a pond,
stream, or wetland. If you have a pond or
stream, don’t remove plants growing along
the water’s edge. Instead, plant a variety of
aquatic plants along the shoreline.
The Benefits:
• Offers an essential component of wildlife
habitat.
• Creates a welcome refuge for many
species.
• Adding aquatic plants maximizes a pond’s
value to wildlife.
5. Get to know your region
Take time to explore the natural areas
closest to you. Make a commitment to visit
at least one natural area this season. At a
local nature preserve, woodland, wetland or
lake, you can begin to learn about the inter-
connections between plants and animals and
their environment. Getting to know your
region can enrich your experience of life in
the world as a whole.
The Benefits:
• Increases awareness and appreciation of the
beauty and diversity of your local region.
• Increases understanding of the vital con-
tribution that each region adds to the
overall biodiversity.
• Creates an informed, ecologically-literate
citizenry.
6. Take care of the most sensi-
tive species
Enhance and protect habitat for the most
sensitive species present on your land. On
many properties, this will likely be amphib-
ians, such as frogs etc. These species are
especially vulnerable to habitat destruction
because they typically require habitat both
in water and on land, e.g., a pond for their
eggs and larvae and dry land for the adults.
They also need a way to move back and
forth between the two safely.
The Benefits:
• By concentrating on the needs of sensi-
tive species, you can take care of lots of
others as well.
• Amphibian and reptile populations are
declining rapidly all over the world. By
doing simple things to help them survive
on your property, you will contribute to
overall conservation efforts.
7. Do not disturb!
Be careful not to disturb high quality habi-
tats such as mature woods, wetlands or
desert areas—especially during the breeding
season. Take care not to remove bird nests
or den sites. Disturbance to adults or young
during the breeding season can reduce
reproductive success and survival rates for
young. Designate areas that will be mini-
mally-maintained, or use buffers or signs to
keep people out.
The Benefits:
• Protects sensitive plants and wildlife
• Increases breeding success.
• Keeps larger habitat areas intact

8. Clean Up
Restore degraded habitats such as eroded
slopes, compacted soils and polluted water
sources. Clean up trash. Litter is not only
unsightly, it degrades plant and animal com-
munities and water sources. If you have a
dumpsite on your property, make a plan to
break it up and properly dispose of its con-
tents on a regular basis.
The Benefits:
• Promotes good stewardship of natural
areas.
• Reduces habitat damage from eroding
soils and polluted waters.
• Promotes proper waste management and
disposal.
• Reduces build up of “trash heaps” and
eliminates hazardous waste problems.
9. Maintain healthy soil
Much of the earth’s great diversity lies
below ground. Soil creatures, including
earth worms, beetles and ants, provide
a vital support system for life above
ground. Add compost to gardens and land-
Manufacturers & Suppliers to the Golf Industry
Branding & Advertising • Course Supplies
Greenkeeper’s Maintenance • Retail supplies
Signage • General requirements
scaped areas to improve soil structure and
soil health. Start a compost pile of your
own to recycle organic waste and amend
your soil structures.
Avoid disturbances to soils such as heavy
compaction from carts or using chemicals
that wipe out soil life. These can destroy
subsurface habitats, disrupt biological and
chemical cycles, and alter subsurface food
webs. Improve drainage to help water per-
colate through the soil layers.
The Benefits:
• Healthy soils stimulate plant growth and
help plants resist disease.
• Soil creatures cycle nutrients and carbon.
10. Reduce your use of
hazardous chemicals
Use an informed, integrated approach
to dealing with pest problems that arise.
Before reaching for chemicals, carefully
evaluate the root of the problem and address
underlying conditions. Research alternative
pest control measures— from improved care
of plants and soils to horticultural soaps and
course management
oils— there are many effective alternatives
to damaging chemicals.
Should you need to choose chemicals,
read the label before you purchase: when
possible, choose products with labels that
read “caution” instead of “danger”. Follow
label instructions precisely: using more than
called for increases the likelihood of envi-
ronmental problems.
The Benefits:
• Reduces problems associated with chem-
ical manufacture, storage, use and waste
disposal.
• Helps maintain a balance of beneficial
insects.
• Reduces expense of chemical treatments.
To find out more about the Audubon
Cooperative Sanctuary Program
for Golf Courses or request a
membership application,
email: acss@auduboninternational.org
or access their website
www.auduboninternational.org
 course management

A development programme for aspirant

greenkeepers that’s really working
A quality learnership programme is taking place on the fairways and greens of South
African courses. Andrew Wilson of GCM investigates.
In our April issue of GCM we featured an
article on transformation and reported that
many golf clubs still hadn’t reached the first
green in terms of transforming and devel-
oping their previously disadvantaged staff.
This month we have identified an initiative
that started last year, is available to all golf
clubs, and is already bearing worthwhile
fruit. Bob Carrington of BC Landscape
Training and Consultancy got together
with Beryl Acres of the Club Management
Association of South Africa to persuade the
Tourism, Hospitality, Education and Training
Authority (THETA) to register a learnership
for aspirant greenkeepers. During last year
the standards generating body of THETA
put in a lot of hard work to develop a set of
unit standards that were eventually accepted
and registered with the Agriseta. These unit
standards are for the sports turf industry
as a whole but can also be used for those
specialising in greenkeeping. The entire pro-
gramme covers four years from NQF level
one to four, and at the moment there are Participating in the programme at Royal Cape: Shaun Amon, Allom Jansen, Junaid
almost one hundred previously disadvan- Amon, Royal Cape Greenkeeper Vern Whitson and Johnson Mekana.
taged learners who are participating in the
programme country-wide. In spite of the current had to be able to take the training to the par-
GCM chatted to Sandi Gillman who is ticipants’ places of work as both time and
the co-ordinator for BC Landscape Training success of the programme transport could be problematical.
and Consultancy in the Cape and who was Secondly we had to “sell” the idea to golf
instrumental in getting the programme off there is a dark cloud on the clubs and greenkeepers. It meant that they
the ground in the Cape Town region. Here’s horizon. The Agriseta is had to help identify possible suitable can-
what she had to say. didates from amongst their staff, and then
“Once the programme was registered currently deciding whether commit time and money to their develop-
with the Agriseta the hard work started. We ment. Luckily, in most cases, this proved not
identified that there were three main players to continue funding the to be a problem.
in the formula and all had to be fully com- current learners when they Thirdly we had to ensure that the identi-
mitted to the programme for it to stand a fied learners were committed to putting in
chance of succeeding. progress next year to the time and effort that would be required
Firstly we had to look at ourselves. We during the programme. They had to be both
had to make sure that we could deliver top NQF level 2. Funds will literate and numerate, but other than that,
quality theoretical and practical training, only be available for what the main qualities we were looking for were
approved and in line with the agreed unit enthusiasm and self-motivation.
standards. This meant ensuring that all our they term as scarce and The programme was launched in January
facilitators were specialists in their fields this year and there are currently almost a
and were qualified horticulturalists. We also special skills. hundred learners country-wide, of which

Golf Club Management June 2007 

course management
over 30 are in the Western Cape. They attend
a one day theoretical workshop at one of the
golf clubs, at least once and sometimes twice
a month, and in between have to complete
practical exercises and projects, backed up
by written assignments.
On this year’s programme there is only
one female in the Western Cape, Lillian
Williams of Steenberg, but it is hoped that
on future programmes the gender balance
will be more equitable as it is a highly satis-
fying career for both men and women who
enjoy working outdoors and with nature.
In spite of the current success of the pro-
gramme there is a dark cloud on the horizon.
The Agriseta is currently deciding whether
to continue funding the current learners
when they progress next year to NQF level
2. Funds will only be available for what they
term as scarce and special skills.
Golf clubs, in conjunction with their
training provider, BC Landscape Training
& Consultancy, have successfully built
on the initiative taken by Bob Carrington
and Beryl Acres. It would be tragic if it all
came to nothing. During the course of this
year more golf clubs have to be brought
on board; new candidates for entry into
NQF level 1 have to be identified; and
funding has to be secured so that the cur-
rent learners can progress to NQF level 2.
The training providers and golf clubs can’t
do this on their own. This is something
for the whole industry to get involved in,
including the suppliers of equipment and
fertilizers etc. With the growth of the golf
industry in the country and its potential to
generate tourism income, surely the profes-
sion of greenkeeper is currently a scarce
and special skill.
To find out more about the programme
contact Sandi Gillman of BC Landscape
Training and Consultancy on 021 794-4816
Sandi Gillman. BC Landscape Training or e-mail sgillman1@wol.co.za
and Consultancy Co-ordinator, Cape. Or Bob Carrington on 011 475-7263 or
e-mail bcland@mweb.co.za

Drainage Planning
Most golf courses will experience drainage problems at some time. Darren Berry of
Golf Data outlines five steps to avoid poor drainage on your golf course.
Poor drainage can effect many aspects of
the golf operation including turf health due
to lack of oxygen, encouragement of Poa
annua and loss of revenue through course
closure or golf cart restrictions.
There is no quick fix to serious drainage
concerns. Major earthworks and engineering
may even be required in extreme circum-
stances which may lead to course closures
and disruption. Drainage issues should,
therefore, never be taken lightly.
Effective drainage requires good planning
and a thorough understanding of drainage
principles. The use of a turfgrass agrono-
mist or drainage consultant to assist with
the planning of a major drainage project is
always money well spent.
The drafting of a drainage master plan for
each golf hole and the entire site is always
the first issue to address. The most impor-
tant piece of information required before
the drainage plan can be completed is the
standard to which the site must adhere once
the drainage has been installed. Is the site to
meet tournament conditions on a daily basis;
is it to allow cart traffic or merely to avoid
closure? This is where you will find valuable
input from an agronomist or consultant.
The master plan will allow you to deter-
mine the estimated cost and schedule of the
drainage operation as well as providing you
with a plan of physical drain line sites and
catchment areas.
Always assess the drainage concerns
during periods when they are most readily
observed. Plan when it is wet, install when
it is dry.
There are five steps required to complete
an effective drainage master plan.
Step 1: Identification
Identify and log each wet area on the golf
course, recording and marking its location.
Step 2: Surface Water
Collection
Identify and determine the collection
method for all surface water running onto
Effective drainage
requires good planning
and a thorough
understanding of
drainage principles.
the golf course from outside sources, such
as roads or cart paths. This water should
be caught in a cut-off trench or blocked by
curbing and directed into catch basins and
sub-surface pipes.
Step 3: Sub-surface Drainage
This step is used to determine the extent of the
on-course sub-surface drainage. All aspects
must be covered including location, depth
and outlet points. Sub-soil drains are gen-
erally installed utilizing a bidem-wrapped,
core-drain pipe and stone construction,
which is capped with sand to surface level.
A 75-110mm pipe, with 6-8mm washed,
quartzite stone should be used. This must
be wrapped in bidem which allows for the
free movement of fines through the system.
The sand should be a coarse, washed river
or crushed type, with an infiltration rate of
750mm-2000mm per hour. The network of
pipes must be installed with a minimum
grade of 1-2% and must have an open, free-
flowing outlet.
Drainage line spacing and depth are
dependant on various factors, including final
goal, soil types, shade levels and budget.
course management
• Spacing: The spacing is determined by
the above parameters, but will generally
be between 3-8 metres.
• Depth: Drainage line depths are deter-
mined by the soil conditions and relief of
the site. Standard installations are 600mm
deep with no part being less than 450mm.
Always remember that the less permeable
the soil, the deeper the drainage trench
must be to create sufficient hydraulic
head to release the water effectively.
• Orientation: Drainage lines must be
installed perpendicular to the natural flow
of water.
It is always better to open existing irriga-
tion installations by hand before undertaking
a drainage installation, to minimize unnec-
essary damage.
Step 4: Material Selection
Carefully select the correct type and size
of pipe, junction point type or design and
determine placement of submersible pumps
if required. Also, determine the quantities of
all materials.
Step 5:
The final step is to estimate the total cost of
the project, which should include all mate-
rials, labour and equipment hire.
Course closure periods and loss of rev-
enue should also be estimated.
To ensure the best possible productivity,
the golf hole being drained should either be
closed or shortened to a par 3 to minimize
the disruption to the drainage contractor.
A GPS as-built map can and should be
included in the budget to allow for easy
tracking and location of drainage lines and
fittings in the future. A hand-drawn as-built
and tracking wire are the very least that
should be completed and installed.
For more information contact Darren
Berry of Golf Data on darren@gdmaint.
co.za or on 0836719399 or
(044) 3840680/3.
Golf Club Management June 2007 

A further look at the Revenue
laws Amendment Bill
GCM’s first article on the new tax laws appeared in our March issue. Erle Koomets,
a senior tax consultant at PricewaterhouseCoopers, takes a further look at the
implications for golf clubs of the Revenue Laws Amendment Bill which came into
effect on 1st April 2007.
The Revenue Laws Amendment Bill
of 2006 provides, in effect, that as from a
club’s tax year commencing on or after
1 April 2007, the club will be exempt from
tax on income derived from non-members
only up to an annual threshold of R50 000
or 5% of the total membership fees and sub-
scriptions payable in that year, whichever is
the greater. Any excess over and above this
threshold is not exempt.
The taxability of the
excess income derived from
non-members
Assume that a club’s income in any one
particular tax year, derived from non-mem-
bers, does exceed this threshold. How will
the club’s tax liability on that excess income
be determined? A hasty reading of the new
tax rules might suggest that the club will be
taxable, at the corporate rate, on the gross
amount of the excess over the aforesaid
threshold, and that the club is not entitled to
claim any expenses as tax deductions against
that excess.
This is not the correct interpretation. The
new rules involve two separate inquiries.
The first is whether the club’s gross receipts
and accruals derived from non-members,
during the tax year in question, exceed
R50 000 or 5% of the total membership fees
and subscriptions, whichever is the greater.
(The club’s operating expenses are ignored
in this calculation and cannot be deducted in
determining whether this threshold has been
exceeded.) If the answer to this question is
that the club’s income derived from non-
members falls below this threshold, then the
club is exempt from tax on that income.
If, on the other hand, the club’s income
derived from non-members during the tax
year in question does exceed this threshold,
It is possible that
the club’s aggregate
deductible expenses may
exceed its gross income, in
which event the club will
pay no tax in that year.
then the excess is not exempt from tax. That
excess is not immediately taxable in its own
right; it must simply be brought into account
in determining the club’s overall “taxable
income”. It is possible that the club’s aggre-
gate deductible expenses may exceed its
gross income, in which event the club will
pay no tax in that year, because it will have
incurred a tax loss.
In other words, even where a club’s
income derived from non-members in a par-
ticular tax year is high enough to take it over
the threshold for tax exemption, it is con-
ceivable that the club may not in fact have
any tax liability in that year.
TAXATION
The problem of
apportionment
The difficulty you are likely to face in deter-
mining your club’s taxable income will be
to apportion its expenditure between that
which produced exempt income (for such
expenditure is not tax-deductible) and that
which produced non-exempt income (for
such expenditure is deductible).
For example, a golf club will incur heavy
expenses in maintaining the golf course
– water for irrigation, wages, fertilizer,
mowing equipment, etc. If the club allows
non-members to play the course for a fee,
those fees will (it seems) not be tax-exempt
in the hands of the club to the extent that
(together with the club’s other income
derived from non-members) they exceed the
statutory threshold.
In computing its taxable income, the
club will only be able to deduct part of the
expenses of maintaining the golf course,
because part of those expenses were incurred
in order to produce exempt income, namely
the fees and subscriptions derived from the
club’s members. On what basis will the total
expenses for maintaining the golf course be
apportioned into a tax-deductible and a non
tax-deductible component?
The Act provides no explicit answer to
this question, and a practice note from SARS
would be welcome.
In practice, SARS may determine what
proportion of the club’s total income is
non-exempt, and use that proportion as the
basis for apportioning expenditure which
produced both exempt and non-exempt
income.
For further information, please contact
Erle Koomets on +27 (011) 797 4036 or
via e-mail at erle.koomets@za.pwc.com
Golf Club Management June 2007 11
BIRDIES AND BOGEYS

LABOUR PAINS KPMG Benchmark Survey

Are you aware that if you employ more than five
people you have to not only display a copy of the
Health and Safety Act on your staff notice board but
you must also implement a health and safety structure
in the workplace to ensure employees are working in a
safe and healthy environment. You also have to display
certain other documents, even if you only employ one
person. These documents are:
1. A summary of the Employment Equity Act
2. A summary of the Basic Conditions of Employment
Act
You should have copies of these complete Acts
readily available for staff to read should they so wish.
Non-compliance with these regulations can lead to
heavy fines. The department of labour are increasing
their capacity to monitor the degree to which busi-
nesses, which includes golf clubs, are complying with
these regulations.
For more information visit the Department of
Labour’s website on www.labour.gov.za
Enclosed with this issue of Golf Club Management is the 2007 KPMG Golf
Benchmark Survey. We have highlighted in our article on page 14 this month,
the type of information that came out of the 2006 survey. Regrettably, in the
last survey, only 38 of over 450 South African courses responded. Although
South African golf clubs that did respond can compare themselves against
clubs in Europe and the Middle East, comparisons within South Africa are
dangerous due to the low response rate.
There is a clear market need for information regarding the operational and
financial performance of golf courses. With the idea of creating benchmark
indicators for golf course owners, operators, suppliers, developers and fin-
anciers, and with considerable investment by KPMG’s Travel, Leisure and
Tourism Practice, the Golf Benchmark initiative was set up.
The primary objective of the Golf Benchmark Survey is to allow golf
courses to compare their individual performance against high-, average- and
low-performers in their geographic markets.
We at GCM would like to encourage all golf clubs to participate in this very
worthwhile survey. The more we can learn about our industry, the more compet-
itive we will become. A copy of the 2007 survey questionnaire is included with
this issue of GCM. Please take time to complete and return the questionnaire to
KPMG. There may be many lessons to be learnt by just completing the form!
All reports can be downloaded free of charge at www.golfbenchmark.com

hr legal

Three Ways to Terminate

an Employment Contract
There are three ways you can fairly terminate an employment contract. Andrew Wilson
of GCM explains.
For termination of an employment con-
tract to be fair, it has to be both substantively
and procedurally fair. By substantively we
mean that termination was the appropriate
action to take. But what about procedure?
There are only three occasions when ter-
mination can take place.
1. In the case of misconduct.
2. In the case of capacity.
3. In the case of operational necessity.
In each case the procedure to follow is
very different.
Misconduct
In the case of misconduct, such as theft or
an unacceptable pattern of absenteeism, the
route to take is to hold a formal disciplinary
hearing. If the person is found guilty, then
either an appropriate warning should be
issued or in extreme cases the contract can
be terminated.
Capacity
In the case of capacity (the person’s inability
to perform their function) the correct pro-
cedure to follow is counselling. This is not
necessarily a soft option. The person needs
to know that their performance is not up
to standard and that in extreme cases they
could lose their job.
Operational necessity
In this case the needs of the business have
changed and it may prove necessary to either
restructure or in an extreme case “retrench”
some of the staff. In these circumstances the
correct procedure to follow is consultation
with those parties or individuals involved.
Each procedure is very different and
there a certain steps that have to be fol-
lowed for the procedure to be seen as fair.
The first thing to ensure is that you are using
the procedure that is appropriate under the
circumstances.
To ensure that you understand the proce-
dures in detail refer to the Labour Relations
Act or go to the government web site www.
labour.gov.za
For more information contact Andrew
Wilson at anorbury@iafrica.com

12 June 2007 Golf Club Management


Using winter to its fullest
What else is there for a greens superintendent do in winter other than drink red wine,
eat chocolates and nestle under the duvet? Murray Veitch of Turftek outlines a seven
point plan to use the winter months productively.
It’s nearing that time of the year when
morning temperatures start to drop. This
will mean that our golf course grasses will
go into dormancy. So, this is the time that
the golf course maintenance crew can put
up their feet and wait for the new growing
season. Right?............................. Wrong!
On most golf courses winter can be a
busier time for the maintenance crew than
summer. Winter is the time to tackle those
small fix up jobs that you don’t have the
time to get around to in the summer.
A winter programme should be drawn up
prioritising jobs, and each job should have
a start and finish date. The last thing that
you need to be doing is trying to finish off
winter jobs when you should have started
your spring treatment.
The type of jobs that could be tackled as
part of your winter programme could include
the following:
1. Bunker restoration
During the rainy season bunker sand may
become contaminated due to wash aways
caused by heavy storms. The restoration
process would entail removing the sand
from the bunker, checking the drainage to
ensure that it is not blocked or damaged,
recompacting the base, sieving the sand and
replacing it again. Some bunkers may need
to be reshaped to increase their size or to
make them smaller.
2. Hazard Stake Maintenance
Most golf courses will have some sort of
poles that are used to demarcate the different
hazards on the golf course and also the out of
bounds line. Over time these stakes become
faded and weather-beaten. Winter is a good
time to send a few staff members around
the course to repaint all hazard stakes, and
ensure they are all standing up straight and
firm in the ground. The golf pro should
always be consulted with regard to the cor-
rect colouring of the stakes.
3. Tee Top Levelling
Most courses experience a drop in their
number of golf rounds over the winter
period. This is a good time to identify tee
boxes that are not level and to re-level them.
Laser levels are used nowadays to create
100% level tee boxes with slight slopes to
one side to prevent water standing on the tee
box. The levelling process will entail the
stripping of the surface using a sod cutter,
levelling the surface using a dumpy level
to ‘shoot’ levels and a box blade behind a
bunker machine.
On most golf courses
winter can be a busier
time for the maintenance
crew than summer.
Winter is the time to tackle
those small fix up jobs
that you don’t have the
time to get around to
in the summer.
4. Irrigation System Checks
The reduction of watering due to the cooler
temperatures offers the opportunity to have
a good look at the irrigation system and
carry out any changes that may be needed.
This may entail the overhauling of irrigation
course management
pumps one at a time where necessary or even
replacing them. With the new technology of
variable speed available, a lot of golf courses
are upgrading their pump houses.
5. Machine Maintenance
In winter all maintenance machinery should
be pulled into the workshop and given a
detailed once over. Cutting cylinders should
be removed and sharpened getting them
ready for the next cutting season. Brushes
and bearings should also be checked and
replaced where necessary. All the machine
manuals will have a winter maintenance
programme that should be carried out.
6. Tree Planting
Towards the end of winter is a good time
to plant trees on a course. A detailed tree-
planting programme should exist at all golf
courses. Existing trees can be pruned into
desired shape. A lot of trees will go dormant
over the winter period or their growth will at
least slow down, making this the ideal time
to carry out any tree maintenance.
7. Veld Area Maintenance
With the reduction in growth of the veld
grasses, winter is the ideal time to clear out
any undesirable weeds in the rough. These
natural areas can look unsightly if left to
become overrun with ‘undesirables’ but if
maintained properly they add to the overall
aesthetics of the course.
Using winter to its fullest will ease the
burden during the busy spring treatment and
summer maintenance periods.
So take a drive around your course and
draw up a programme of things to do this
winter. And don’t forget your staff. This is a
great time to give them some leave.
For more information contact Murray
Veitch at Turftek on 012 807 7282 or at
leonette@turftek.co.za
Golf Club Management June 2007 13
 GOLF BENCHMARK SURVEY

KPMG’s 2006 Golf Survey Results:

don’t miss out on the 2007 survey!
Andrea Sartori, partner in KPMG Advisory Ltd and head of their Travel, Leisure and
Tourism Practice, outlines the results of their 2006 golf club survey, and encourages
clubs to take part in the 2007 survey.
With more than 4.2 million affiliated South African market tistics relating to South African courses that
golfers and almost 7 000 golf courses, the South Africa has over 450 golf courses, came out of the 2006 survey:
Europe, Middle East and Africa (EMA) but although the golf participation rate in • The surveyed 18-hole golf courses in South
region plays a significant role in the global South Africa (0.3% of population) is by far Africa have a significantly larger member-
golf market. the highest amongst all African countries, ship base than most of the investigated
The primary objective of the KPMG Golf the percentage of people participating in regions, reaching on average more than
Benchmark Survey is to allow golf courses the game is still well below the European 1 000 members. Men account for 62%
to compare their individual performance average (0.7%). of the members of 18-hole golf courses
against high-, average- and low-performers Today there are more than 145 000 affili- within South Africa. Female and junior
in their geographic markets. Regrettably ated golfers in South Africa, with one in members make up 13% and 15% respec-
only 38 South African clubs responded every 330 South Africans being a golfer. A tively. Corporate membership in South
to the (EMA) 2006 survey. We are looking for significant part of this can be attributed to Africa is a significant 10%, as opposed to
a far greater contribution to the 2007 the growth in the number of female golfers courses in Western Europe or Great Britain
survey which is included with your June (i.e. 7% per annum in the last six years). and Ireland where it is a mere 1%.
issue of GCM. The following are some interesting sta- • The average number of total rounds

ROYAL CAPE GOLF CLUB

career opportunity golf professional / golf retailer
An opportunity has arisen at the oldest golf club in South Africa for suitably qualified retailers/professionals to take over the on
site retail facility and the teaching operation. The course is a classic parkland design of championship standard which has stood
the test of time. It is a private members club, which actively encourages visitors and societies. Practice facilities include a full
length driving range, a practice net, chipping green, pitching area and practice putting green. The potential candidate/s should
be motivated, business minded and service orientated. Great earning potential awaits the right candidate/s.

Expressions of interest are invited from qualified persons who are requested to reply in writing to the General Manager at
P.O. Box 186, Ottery, 7808 or e-mail manager@royalcapegolf.co.za Closing date - 31 May 2007

played on 18-hole courses in South Africa
is above 37 000.
• The best performing courses reach a
usage level of over 80%, the lowest per-
formers in the South Africa sample are
27-29% utilised.
• The membership and pricing schemes
applied by the surveyed golf courses are
extremely variable and therefore difficult
to compare. Despite this, we noted some
common characteristics, e.g. most golf
courses (78%) require the payment of
a joining fee. 44% of courses charge an
initiation fee for every membership type,
while one third charge only for certain
types of membership. When considering
all courses, the average initiation fee is
R3,332, while the annual subscription for
individual full members is R4,020.
• The other important component of the
pricing scheme, the green fee, shows almost
no variation between weekdays (R138 for
18 holes) and weekends (R147).
• The average price for an 18-hole cart
rental in South Africa is R134.
GOLF BENCHMARK SURVEY
• The average revenue of the surveyed 18-
hole courses in South Africa was around
R8.2 million in 2005.
• Membership revenues account for
approximately one quarter of total rev-
enues, while green fees account for one
third. The remaining significant portion
of revenues is generated mainly by food
and beverage (26%).
• Another indicator reflecting the operating
performrance of a golf course in relation
to its total revenue generating potential is
the revenue per available tee time (Rev
PATT). 18-hole courses in South Africa
recorded on average R130 RevPATT.
• Operating costs, including wages and
maintenance costs, average more than
R8.2 million. Surveyed South African
courses recorded an average operating
cost per hole of R434,000. Salary costs
make up approximately 36-37% of total
costs for 18-hole courses.
• For 18-hole golf courses with a posi-
tive operating profit, the operating costs
account for more than 84% of total rev-
enues resulting in a gross operating profit
of approximately 16%.
• While in Great Britain and Ireland the
average staffing of an 18-hole course is
22 persons, the average for an 18-hole
golf course in South Africa is signifi-
cantly higher, consisting of 58 persons.
KPMG are repeating the survey in 2007
and a survey form is included with your
June copy of GCM. Please take time to
participate in this very worthwhile ven-
ture by completing and returning the
2007 survey. Only 38 clubs responded
to the 2006 survey. Let’s make that 380
in 2007. The more we can learn through
involvement and participation, the more
competitive we are likely to become.
All reports can be downloaded free of
charge at www.golfbenchmark.com
For further information please
contact KPMG Travel, Leisure
and Tourism Practice
E-mail: info@golfbenchmark.com