OAKMONT GOLF CLUB BOARD OF DIRECTORS MINUTES - 2010
BOARD OF DIRECTORS - JUNE 23, 2010
The meeting was called to order at 3:05 PM
PRESENT: Board Members: Nancy Shaw, Nona Leone, Barb Spangler, Charlie Chapman, Jack Powers, John Williston and John Greig. Also present: Rod Metzler of Empire Golf, Inc.
MEMBERSHIP: 467 active members, 363 active resident members (76% of total active), 33 inactive, 122 monthly, 363 memberships in Treasury.
APPROVAL OF MINUTES: The draft minutes of the May 26, 2010 meeting of the Board were presented. There was a motion that the minutes be approved as presented. The motion was seconded and approved unanimously.
TREASURER'S REPORT:
The complete report as submitted is attached.
May 2010 Financials: The Net Income for May is a loss of $6,512. With continuing cold, wet weather in May, the Year to Date Net Income is ($249,779). This Net Income loss is greater than Year to Date Budget by $116,201, almost double the loss variance from last month. Golf rounds are down after five months by 5,872 rounds. Golf Margin is down $119,081 from last year YTD.
This month the restaurant business was down $13,284 compared to budget, but is still ahead YTD by $8,264. June should be a better month.
OGC's total cash position is lower than May last year by about $185,530 and less than April, 2010 by $84,497. Part of this is due to payment of capital expenditures that were approved by the Board earlier this year, whereas last year capital expenditures were spent later in the year. However, the reduced cash position is largely due to the poor weather conditions and economic environment.
EMPIRE MANAGEMENT REPORT: The entire report submitted by Rod Metzler is enclosed as an attachment and is summarized below.
Review of Profit from Operations for May 2010:
May was a poor month financially for the OGC, with an operating profit of $16,583 which was $49,015 under budget, and $57,766 less than May 2009. Play on our two golf courses was down 1,163 rounds from May of last year, and under budget by 1,388 rounds. The saga continued with cold, wet weather as we had 8 rain days for the month, compared to 6 rain days in May 2009.
We had an overall profit from Golf Operations of $42,019, which missed budget by $34,712 and was behind last May by $39,325. Daily Fee revenue was $84,017 which missed budget by $17,704 and behind May 2009 by $17,817.
Food and Beverage had a down month, with a profit of $15,671 in May, compared to a budgeted $28,955. Gross sales were $15,727 under budget, and $16,766 less than May 2009. The variance was in costs of goods sold which was higher than budget, and banquet sales which was mostly attributed to fewer tournament bookings for the month.
Golf Course Maintenance Expense was $20,010 under budget for May; the wet weather has delayed some routine maintenance typically completed in May. We delayed hiring of seasonal personnel, as well as savings in utility expense as we are not irrigating.
Expense control was excellent for the month, coming in $18,946 under budgeted expenses for all operations, and is now $99,122 under budget for the year to date.
OGC COMMITTEE REPORTS:
Finance Committee: Reported by Nona Leone
The Finance Committee met and we reviewed the May actuals. A set of questions was asked and Empire answered the questions in a separate e-mail dated June 18, 2010. The Board members will have received a copy of this e-mail.
It was noted that Fertilizer was not a prepaid in December, 2009 as had been done in the past, but was an expense that was occurring in June. This change would have been noted if the Finance Committee had an Exceptions Report.
The Committee reviewed a 2010 Actuals & Budget report showing Actuals to date and remaining budget for June to December. A copy of this will be forwarded to all Board members prior to the Board meeting. Additionally, Empire was sent a copy of a June to December Cash Flow Projection using the Budget numbers and Empire was asked to revise the numbers that they believed needed revising. It was requested that this revised projection be presented to the Board.
The Golf Cart renewal lease was reviewed. Certain changes were requested in the indemnity provision and Empire was able to achieve all the requested changes. The contract for renewal is ready for execution.
Nancy Shaw prepared a timeline of when and which members donated so that the Committee could analyze whether or not there was a pattern to when members dropped. While the members donating over the past two years has been greater than average, the report was inconclusive whether the dropouts were due to increases in dues or just the economics of membership. The Committee was unwilling to recommend a dues increase this year.
Jean Turner and John Greig have been working on revising the Property Records so that they are in sync with the General Ledger. Jean discussed this with Pisenti & Brinker and it was recommended that there be only one account for Fixed Assets on the General Ledger and not the several accounts we currently have. Additionally, John and Jean are discussing the reclassification of the Fixed assets on the Property Records into "logical categories". P&B has estimated a cost of $500, depending on the list, to review the categoziation. This reconciliation work that these hard working members are doing shall simplify the Property Tax records.
The Committee reviewed a redraft of the Financial Policies. Discussion centered on the language regarding Reserves. Bob Hartsock and John Greig will revise the language and present changes to the Finance Committee. Once agreement on wording is achieved, Bob and John will review the Draft Policies with the Board members who are not on the Finance Committee. Revising procedures will then follow from this process.
The Allowance for Doubtful accounts was revised to include only the two delinquencies that are in collections and are unlikely to pay. One of the delinquencies is a member who charged equipment, green fees and meals in the restaurant. He has not paid anything and has not donated. The Committee believes that OGC should file a small claims action against this individual. The procedure for filing a claim was discussed and it was recommended that Empire have a procedure for filing a small claims action. The other delinquency was an individual who made an attempt to pay off his bill but was overwhelmed when he lost his job. It was recommended to drop further action. The Board agreed to drop further action on both delinquencies at the June 23 meeting.
It was also reported by Jean Turner to the Treasurer that Pisenti & Brinker has completed their annual review. They do not intend to issue a management letter.
This Treasurer will be out of the country for several weeks in July, returning in time for the July's Board meeting. John Greig will be managing the cash transfers and the next Finance Committee meeting.
Membership and Marketing: Reported by Jack Powers
Additional new membership incentives including $150 food credit for new member referral were discussed. No decisions were made on this issue.
Greens Committee: Reported by Charlie Chapman
The Greens Committee will be meeting every other month. Charlie reported that the new irrigation system is working very well and delivering data on usage that had not been available prior to the installation of the new system.
Golf Committtee: Reported Jack Powers
The Golf Committee will be meeting on a monthly basis as this provides more frequent opportunities for members and sections communications.
Social Committee: Reported by Nancy Shaw
The May Twilighter was very successful with 116 players and guests for dinner. The event raised $650 in raffle sales and mulligans for the irrigation fund.
There are three more Twilighters scheduled this year. There is some consideration being given to the idea of making the October Twilighter a 9 and 18 hole event, giving participants a choice on playing 9 hole or 18.
The Wine, Dine and Nine event with B.R. Cohn Winery is scheduled for for June 26.
Communications Committee: Reported by John Williston
So far, no volunteers have emerged to write the Oakmont News OGC articles. John will continue to prepare the Oakmont News articles, but probably in an abbreviated fashion.
John has posted the Twilighters on Google, and recommends that we put in some WiFi hot spots to increase traffic among younger players.
Tribute Committee: Reported by John Greig
The Spanglers will be adding an additional commemorative plaque to the bench on 18.
Long Range Planning: Reported by Nona Leone
Nancy Shaw, Rod Metzler, Nona Leone and Bill Smith are working on the long range water requirements for the club.
New Business:
Nancy Shaw entered a Resolution to nominate Sal Cesario as Chairperson for the 2010 OGC Nominating Committee. The current Board of Directors were unanimous in support of Sal Cesario seeking his committee, and the necessary nominations to fill the upcoming vacancies for 2010.
Rod Metzler recommended that OGC not open negotations on the Union Contract. The contract requires notification by either party by July 1.
Non Leone moved that the club move to a Quarterly Billing cycle. Barb Spangler seconded and the vote was carried unanimously.
Rod Metzler is adjusting the golf course policy from collared shirts only to appropriate golf attire.
The meeting was adjourned at 5:00 PM.
Respectfully submitted,
Barbara Spangler
Secretary