ROYAL OAKS COUNTRY CLUB BOARD OF DIRECTORS MINUTES Thursday, January 22, 2008
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- Barnaby Rich
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1 ATTENDANCE: Rick Martinson, President Bill Schwartz, Secretary/Treasurer Doug Palin, Director Dave Camp, Ex-Officio Mark Hall, Director Ron Davis, Director Andrew Bielat, Director Dana Meacham, Ladies Board Pres. EXCUSED: Keith Bernards, Director Scott Alford, Vice President Bill Pahl, Director SPECIAL GUESTS: Rick Southard Tim O Neal, Mem. Comm. Scott Leritz, Head Professional Barbara Fife Alan Nielsen, Superintendent I. SPECIAL GUEST: Barbara Fife presented a request for the course for Donny Southard Day Event. Discussion: We want to be sure to use a standard that can be applied in all similar member events. Rick Southard offered that the day is somewhat flexible but the goal is to have events after the shot-gun so Saturday May 23 rd is preferred. All funds received are being handled by a trust to pay bills and not made available to the Southard s directly. Rick Southard would rather have it without guests if that is necessary versus special guest fee issues. Guest fees are fine if we know what the agreement is. II. III. Meeting called to order by President Rick Martinson. Minutes from Thursday, December 18, 2008 were approved. Tim O Neal, Membership Committee: The Membership Committee has found that all of our competitive clubs are running dramatic specials for members. With the tougher economic times discretionary spending is more limited and everyone has to make a decision that is financial, not emotional.
2 Tim O Neal, Mem. Comm.: (cont.) Page 2 Food costs are up, service is reduced. Members leaving are reporting it is just costing too much. Tualatin is offering $3,000 initiations; and Willamette Valley is offering $2,000 initiations. The Membership Committee proposes and has moved to reduce the initiation cost to $5,000 with full dues (this was based on all the other clubs in our market). Our goal is to fill back the dues paying memberships. We do not want to risk raising dues and losing more members. Our goal is to get the club owned memberships down to zero. The issue of a lower initiation is not as critical as the potential of raising the dues. The Committee does not favor the trial membership concept. They were in favor of taking what we can get now instead of risking that the people would come in and decide later to leave the Club. Marketing will be vital, including all Riverside people and a lot of people that can do the $5K versus the $15K initiation fee. IV. MANAGEMENT REPORTS: Alan Nielsen, Superintendent: a. A tree was removed behind the 17 th green b. We lost a pine at the lower range tree. c. Thorough pruning under way d. Greens blankets worked out well e. We are experiencing theft of gas from Greens Department of gallons a month. Motion: That the Board of Directors consider solutions to the theft problems we have been having at the maintenance facility. Matter was turned over to Greens Department and new General Manager to develop a security plan. Motion was made, seconded, and approved. f. Goose problem because of feeding by the homeowners and Lucky is attracting other geese. Motion: Board of Directors to write a letter to the Condominium Homeowners Association along hole # 12 to request that they do not feed the water fowl and if they do, further action will be necessary. Motion was made, seconded, and approved.
3 Alan Nielsen, Superintendent: (cont.) Page 3 g. Snow mold has been applied on certain parts of the course. Scott Leritz, Head Professional: a. Motion: That book credit for merchandise and Pro Shop services are used in a calendar year starting January 1 st and ending December 31 st. Motion was made, seconded, and approved. b. Discussed Patriots Day as a charity for fallen military children s who would like to get a secondary education. Golf Committee will set up parameters for requesting donations from the members for Labor Day weekend. Motion was made, seconded, discussion and passed. c. There is a concern regarding local professional golfers and other General Managers playing our course more than once per month. Pro Shop will enforce the once per month policy. V. COMMITTEE ACTIONS: a. Finance Committee: Bill Schwartz 1. The Club had a positive operating income margin of $48k for December with reduced revenue and excellent cost control. 2. The Finance Committee is developing the 2009/10 operating budget. This budget will include models for various membership levels. b. Green Committee: Doug Palin 1. No actions taken. c. House Committee: Keith Bernards (excused) 1. No actions taken. d. Membership Committee: Andrew Bielat 1. Motion: To approve the February 1 st, 2009 Status Report. Motion was made, seconded, and approved. 2. Motion to approve the Membership Committees for a non-equity $5,000 initiation fee. Motion was made but not seconded. 3. Motion: To approve Warranty Committee to schedule an electrical inspection at a cost of $720. Motion Passed. 4. Motion: To approve City required surveys for Civil Engineers at a cost of $2,700. Motion Passed. 5. After a lengthy membership promotion discussion the Board developed two promotions.
4 COMMITTEE ACTIONS: (cont.) Page 4 > Motion for a one year trial promotion. New members in this category have full access to the Club, and make an upfront payment of $5,757 for the dues, assessment, and food minimum for an entire year. At the end of one year, members in this category have the opportunity to convert to a proprietary membership at then-current fees. A $500 credit would be applied to the initiation fee. The number of one year trial memberships will be limited to the number on the get out list that have forfeited their equity. Motion was made, seconded, and approved. > Motion for a non-equity membership with two payment options. If paid in full the initiation fee is $9,750; and if paid in installments, the initiation fee is $12,000. Members in this category will have full access to the Club, but will not have voting rights nor will they receive an equity refund when they leave the Club. The number of non-equity memberships will be limited to 25. Motion was made, seconded, and approved. e. Golf Committee: Ron Davis Motion: To allow the Donny Southard s Day event to occur on Friday, May 22 nd, with no charge for the golf course, food and beverage charges will be at regular member rate, non-members charged normal guest fees, and waive the room charge. The Donny Day Committee must sign a standard event contract for staff planning and festivities in the Sequoia, Maple, and Cedar Rooms. Motion was made, seconded, and approved. g. Search Committee: Bill Schwartz A new General Manager, Stephen Badenoch, has been selected and an offer is being made. VI. LADIES BOARD REPORT: Dana Meacham, Ladies Board President The Ladies Board is changing its financial funding for the Club from the main sign to the sound system in the Sequoia Room. VII. OLD BUSINESS: Nothing to report.
5 Page 5 VIII. NEW BUSINESS: 1. Motion: Sonitrol System for the fitness center will be purchased and the members will be charged a $6 deposit for each card they receive. Motion was made, seconded, discussed and passed. 2. Motion: To move TV from the Pro Shop to the Lounge behind the bar. Motion was made, seconded, discussed and approved. 3. Warranty Committee has been established. In order to complete the requirements by the City of Vancouver to receive the Certificate of Completion it will cost $2,600. The Warranty Committee also requests that the Club hire the services of an electrical contractor to conduct a final inspection & develop an electrical punch list. The cost for this work is not to exceed $720. Motion: Allow the warranty committee to spend funds to complete the requirements for the Certificate of Completion ($2,600) and electrical inspection ($720) Motion was made, seconded, and approved. 4. Nominating Committee: Motion to approve the Nominating Committee that will include Linda Whitworth, Jeff Schaller, Gregg Guernsey, Dave Camp, and Ron Davis. Motion was made, seconded, and approved. IX. PRESIDENT S COMMENTS: Rick Martinson Nothing to report. X. ADJOURNMENT Without any further business to discuss the meeting adjourned. Respectfully submitted, Bill Schwartz, Secretary/Treasurer
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