PERIDIA GOLF AND COUNTRY CLUB Board of Director s Meeting March 23, 2015 MINUTES

Transcription

1 PERIDIA GOLF AND COUNTRY CLUB Board of Director s Meeting March 23, 2015 MINUTES 1 President David Strack called the meeting of the Board of Directors of the Peridia Property Owners Association, Inc. to order at 1:30 p.m. Master Board members present were: Dennis Campbell, Don Kirkpatrick, Gene McShea, Dave Miller, and Andy Olsen, Gene Stang, and Phil Vernieri. Bill Handy was absent. Quorum was met. Rob Brown, recently resigned GM, and John Saum, acting GM, also attended. Recognition of the Audience President Strack asked the audience members to sign in on the attendance sheet. He reminded audience members to read the paragraph about participating at the meeting at the top of the agenda. Change in Agenda President Strack requested changes to the Agenda. As there were none offered, Strack added one himself. He would make a comment on Monies under Long Range Planning as item 4 under Board Matters. Approval of Minutes Strack stated that Board members have had a chance to read the February 26, 2015, BOD minutes. He asked for additions and corrections. With none given, a motion was made by Miller, and seconded by Kirkpatrick to accept the minutes. The motion was approved unanimously. Treasurer s Report Dennis Campbell made sure all Board members had copies of his report, and asked for comments. He asked if there were comments on his last statement in the report. The statement he was referring to was: Going forward with our annual budget process the board cannot continue to cover our growing expenses by inflating our projected revenues. With the mandate in our doc s that force us to increase the amount of monies we set aside each year for our capital projects we are going to have to look harder at outside revenues or increased quarterly fees. With no board member responding, Campbell commented himself. He stated that we are behind in our 2015 revenues for the golf course, not because play is lacking, but because we were over zealous in our budget projections. He added that GM Brown and his staff have done what they can to offset our revenue loses by cutting expenses. Campbell asked GM Brown if we should reevaluate our projections or find some other solution, as we will come up short on revenues at the close of the year. GM Brown doubted that we would increase our revenues. He said we had hoped for increased revenues since we had renovated the course. He added that budgets are road maps, and we try to follow the course we set as close as possible. The projections for some months may be worse and other months better. He felt we could work on the summer months as a way of making up some of the winter losses. He indicated a need to promote the summer to be more competitive with surrounding clubs, perhaps by selling summer packages. He mentioned that our course reviews are very favorable on GolfNow.com as compared to previous years when our greens had deteriorated. The latest reviews will help us this summer. Also mentioned was the Summer Card reviews will encourage more play at Peridia. Director Miller asked if we make or lose money by joining reciprocal courses. Brown assured him that it s not a matter of losing revenue, but one of introducing players to our course. Campbell asked for further questions. One director questioned if we were going to do something with the budget. Campbell responded, that he was concerned about the recurring revenue loses in our budget and GM Brown interrupted to state that we were intentionally aggressive when we set the budget to cover expenses. He ended by asserting that that s not the way to write a budget. We inflated revenues to cover expenses. The report will be posted on the website next month. Campbell moved on to the topic of Ameriprise. He stated that when the new board members are in place, he would propose to the BOD where we should move some of our financial recourses as he feels we can do better.

2 General Manager s Report 2 1. Liquor License Update We passed the state inspection. In approximately two weeks we should have the new license. It will replace the two liquor licenses we currently have, which will save us the additional fee for the second license. We have fixed up the small locker room that was part of the agreement for the new Golf Club Liquor License. We have qualified to open the bar without having to have the kitchen open. We are sending in a map of the entire property, not just the current restaurant plan, because we want to be able to distribute alcohol on the course, in the restaurant, and out on the pool deck. Director Campbell asked if that means we can open up the Chili Bar again on Mondays next year. Brown stated we could open up whenever we want, but warned that it would increase labor costs. Campbell then reported on the persistent efforts of Valerie Funk, our Bookkeeper, in getting the new license approved. He asked Brown to share the BOD s appreciation for being so dogged in completing the process. 2. Aerator trailer We purchased an aerator, which is used at least once per month on the greens. The aerator moves very slowly. Its very loud as it s driven to the first green early in the morning. It takes 15 to 20 minutes to move to the greens. A trailer would get the aerator quietly to the green in less than 5 minutes. The trailer will cost $ $2000. Brown warned that we would be getting noise complaints if we don t get the trailer. He stated that the trailer would prolong the life of the aerator. The aerator will be moved quickly between greens on the trailer. Campbell asked how many holes are done in the morning. The answer was 9 holes are done before players get to the hole during their rounds. The aerator can cut multiple size holes depending on the purpose of the aeration. Action Taken: A motion to buy a trailer at no more than $2000 was made by Stang, seconded by Kirkpatrick. President Strack asked for discussion. The motion was approved unanimously. 3. GolfNow GolfNow maintains our website and they recently transferred from a website to a Smartphone App. It made our website jumbled, with a needed to change the password for members to get onto the site. Problems should be cleaned up by now and members can get online with the new password, which was sent out in the Scorecard and in an blast. 4. Fairway Trace Tree Replacement GM Brown recapped the problem with the fertilizer spill over by the pump house from about 18 months ago. The spill burned out a large area of grass and killed two-palm trees. One replaced tree has survived and one is struggling. The question is do we want to replace it a second time? With further discussion we heard: The trees were purchased at a nursery. Our crew planted the trees. A company was hired to remove all the dead grass and the contaminated dirt, all done by EPA Standards. There is no warranty on the tree. We followed all proper procedures through the cleanup and planting of the trees. We have documentation that the EPA approved the cleanup. We replaced the dirt, grass, the fertilizer tank, and the two trees in good faith. Beyond that we don t feel responsible for the tree that is struggling. Action Taken: Stang made a motion that we do not replace the tree and notify the Association of our decision. Campbell seconded the motion. Director McShea voted against the motion. The motion was approved. 5. Update on Rental Storage Area We have rented a 8 x 10 storage area from Add-A-Room Self Storage for a one-year contract at $98 per month (one month free this first year). We will begin to move the boxes of decorations to the storage space. The boxes of paper records will be copied this summer and stored as computer files on discs and be stored in the safe. The paper records will be shredded. We will stack the boxes, without buying shelves to save room. We would lose space with shelving.

3 Action Taken: At the request of Campbell, Brown will look into storing digital copies of the records off site for additional security purposes. 6. Marketing Efforts Report We have signed up with Herald Tribune s Gulf Coast Golf and Leisure Magazine. That puts our club on the Public s map. We are still in the Hometown News, which has brought Lakewood Ranch over this way. The big article that was done on Peridia brought a lot of play to our club. These are the least expensive means of advertising Golf Operation Report a. Blue Flag Stickers have been placed on the carts. They seem to be working. They are self-explanatory. b. Judy in the Pro Shop is part-time and will be leaving at the end of the season. She will be back next year. Brian and Mark remain on the staff. We are still short one part time employee that has been approved for the summer. c. Member Golf Rounds were down -411 compared to February of Guest Rounds were down February 2014 had higher numbers than January 2014, which was mostly rainy. We fell short in February of our Budget Rounds because we were so aggressive in our estimates. d. GolfNow Update: 158 paid rounds. e. Charitee Golf Challenge: 705/$3.00 tickets sold. 509 redeemed for a drink. 13 / $20.00 gift certificates won. f. February Revenues are -$25,586 short of budget. YTD Revenues are $-39,589 short of Budget. We are short of Budget because of being so aggressive during the budget process. On the other hand, we have had higher total play numbers in the first two months of 2015 than in With the price $1.00 higher we made $3,356 more revenue in 2015 over 2014, yet we are still under this year s projected budget. g. Golf Maintenance: Under Capital expenses we purchased the Aerator, a Fairway unit, and a Rough unit Palm trees had their first of two seasonal trimmings. Repaired broken pipes and sinkhole on hole 3 and drainpipe on hole 4. Repaired hydraulics on hole 7. Under Capital expenses we need to replace the rusted lockers in the maintenance building at a cost of $2500. Director Campbell pointed out that it was a line item in the 2015 Budget. GM Brown stated that the rust was so bad that they were falling down and the rust was affecting the wall behind the lockers. Action Taken: Campbell made a motion to approve the purchase of the employee lockers for the maintenance Barn at $2500. Stang seconded the motion. The motion was approved. Gas tank that leaked has been replaced. A delivery truck drove into the maintenance area and knocked down one of the sand and dirt separator walls. We made an insurance claim on their Company s insurance. We ve got a new wall at no cost to us. 8. Food and Beverage Report a. February Revenues were short -$4,689 of our Budget goal. We still kept our costs in line. Chef Robert shops for best prices. Labor was on budget at 51.2%. Staff is doing an exceptional job. b. As was with Golf Revenues, F&B YTD Revenues -$8,250, did not meet our aggressive Budget, but actual revenues are $7,321 ahead of 2014 revenues. c. Expenses are $12,574 ahead of budget year to date and we are also $572 ahead of last year as well. 9. Facility Maintenance Report a. Fence sections along Holes 2 and 3 have been removed. No fence was removed along Clubview Ct. properties. b. Sinking pavers by the Peridia Blvd. and Pro Am intersection will be repaired in about another month. Contract has been sign and the pavers ordered. c. We have placed two lights near both exits of the parking lot. It was too dark for nightwalkers. As long as we were on the topic of lights, Director Campbell questioned whether the tennis court lights were going off at the appropriate time, 10 PM. Campbell claimed that he was told the timer might not be working. Action Taken: GM Brown will have James check into it.

4 Board Matters 4 1. GM Rob Brown s Resignation President Strack reminded everyone on GM Brown s resignation officially on April 6, Strack thanked Brown personally for a job well done. Strack claimed that those that don t think Brown did an excellent job don t have insight to the inner workings of the operation. Kirkpatrick, Stang, and Campbell in turn expressed their gratitude for Brown s efforts. 2. Words from John Saum - Steps for a Smooth Replacement Acting GM, and volunteer Peridia Member, John Saum, informed the audience that we ve already advertised in the Club Managers Association of America, CMAA. As of noon today we have received 16 applications. They all sound good, so we are going to go through each one to find the best match for Peridia. Saum will be doing the general manager s day-to-day responsibilities. He appreciates your encouragement and help as you stop by the office. Campbell thanked Saum for volunteering to take on the GM responsibility. (Audience applause.) 3. Joel Downer on Property Violations President of the Peridia Home Owners Association, PHOA 1 & 3, Joel Downer, spoke on behalf of the homeowners to make a request and a recommendation. The request is that the Master BOD takes action to remove the fence on the Property of 4240 Presidential Avenue. The fence is along the 15 th fairway and installed by the owner, Mr. John Christian. In his conversation with Mr. Christian, Downer learned that the fence was put up to keep golfers from retrieving stray golf balls that land on Christian s property. The fence is approximately 18 inches high, plastic chain linked between thin metal posts. In his yard he also sprayed paint on the grass, No Trespassing and Stay Out. This is easily visible and offensive to golfers. The Master Board has the authority to address the homeowner and require property remedy under Peridia By-Law 6.02 Enforcement and Fines and under the Master Declaration. Downer continued to read quotes from the Master Documents pertaining to the fence and sign violations on lot 4240 Peridia Blvd Pertains to the sign violations painted on the lawn Pertains to the No Fences to be erected on Peridia lots. Mr. Christian maintains that what he has installed is not a fence but a barrier or divider. He put it up to keep golfers from coming on to his property. Downer claimed that Christian s barrier fit the legal definition of a fence. The PHOA 1 & 3 Board meeting was on March 6 th. The Architectural Review Committee, ARC, commented on the need to have the Master Board address the fence. First because the BOD has legal standing and secondly the BOD has greater monetary recourses that the PHOA 1 & 3. As of this meeting, the fence has grown to be 3 ft. high with red reflectors on each post. Mr. Christian and Mr. Downer have agreed to disagree on the definition of a fence and if he is in violation or not. Even landscape options the PHOA 1 & 3 suggested were no acceptable to Christian. He refuses to remove the fence. Downer closed by saying the greater authority for addressing this issue lies with the Master Board. The greater resources lie with the Master Board. The fence and sign affect the Golf Course and therefore we request that the Master Board take the lead in seeking a remedy with the fence and signs on 4240 Presidential Blvd. Campbell responded that he was not expert enough on both the Peridia docs and the PHOA 1 & 3 docs to know exactly what we should do. He suggested that this be taken to our corporate attorney and determine how the docs and Florida Statutes will allow us to respond and what actions we should take. Director McShea tried to clarify Campbell s intent. He stated that the Master Board would take care of the problem. Campbell restated that the Master Board would ask our lawyer to analyze the process, but that the monetary cost should be shared. Director Stang felt it depended on what was in the PHOA 1 & 3 documents of which the Master Board is unfamiliar. Stang wanted our lawyer to have copies of all the docs to see who would be the primary lead in this confrontation. Campbell felt all the docs needed to be reviewed by the lawyer. McShea agreed with using the lawyer, but seemed frustrated that more BODs didn t see how clear it was in the Peridia Documents that the Master Board is responsible. He felt Mr. Downer spelled it out completely that the Master Board was responsible. McShea then passed out the Peridia Phone Directory and referenced page 22 the section about Safety and Protection. To summarize, it refers to the fact that if you are a homeowner living on the golf course, you assume certain risks. The homeowner must take to responsibility for errant golf shots that cause property damage,

5 5 not the golfer. He again referenced and began referencing the Master Board By-Law 6.02 and in the Covenants. McShea stated that as Board Members our function is to interpret the documents and enforce what s there. McShea felt it was so well spelled out in the documents that we shouldn t have spent so much time debating it. He wanted the BOD to follow the documents. Downer reentered the conversation. He indicated that PHOA 1 & 3 document only reference the fence. The Master Board would still need to deal with the writing on the grass. It was his opinion that one organization with the most power on both issues should be responsible. Mr. Downer told Christian this would go further. Strack mentioned that Mr. Christian s wrote a letter demonstrating his intent to take this to his lawyer. Mr. Andreacci, a member living off hole 13, indicated that Mr. Christian is testing us. He keeps adding to his fence. The red reflectors were that last things to be added. Andreacci agreed that the PHOA 1 & 3 had less power to enforce the fence rule than the Master Board. Fining him $25 up to $1000 is not going to get his attention. Andreacci home gets hit daily by golf balls as he live so close to the tee box. He stated that Christian bought the house and later discovered he was getting hit frequently. He reiterated that the Master Board had a bit more horsepower behind them. Action Taken: A motion to send all the Mater Board and PHOA 1 & 3 documents to our attorney for his interpretation and recommendations was made by Director Kirkpatrick, seconded by Director Vernieri, and approved unanimously. 4. Monies under Long Range Planning President Strack voiced his concern that the Capital funds we have saved and earmarked for long-range projects are insufficient. We are required by law to put monies aside for specific future projects, but he expressed concern that we needed to increase the rate of savings so the monies will be available when needed. We have repairs that need to be made, but the monies aren t there at this time. His advice to the upcoming BOD is that the Long-term Planning Committee should look into increasing the rate of savings. Campbell chimed in that he was trying to give the same warning in his Treasurer s Report. Our docs specify that we put X% in the Capital Reserves every year. The rate was increased several years ago, and we ll need to increase the rate approximately 5% in our next budget process. Quarterly fees will need to be increased to cover that change. McShea asked about the roof repair we did a few years ago and the golf course renovations. Campbell assured him that the monies for those projects had been saved in Capital Reserves for years. X number of dollars was setaside for 20 years so that we were ready for the new roof. Knowing that our Lakes are in need of repair, McShea asked if the money was in the Capital Reserves. The answer at this time is no. The same was done for the golf course. We are insufficiently funded for lake repairs at this time. No one anticipated that the lakes would deteriorate so quickly. Brown reminded the Board that the recent estimate for lake repairs was $470,000. We fixed a couple sections of the lake s banks near holes 18 and 1. We wanted to see how the repairs worked before fixing all the lakes. Campbell inserted the IRS rulings for Capital savings are becoming more and more restrictive. If we designate money for clubhouse furniture, we can t move it over to fix the lakes. The only exception is if we have an emergency. For example, if we storm damage to a building, we could move fund out of one Capital fund to cover the expense. We have 1.2 million in the bank. McShea asked if there was enough money to jumpstart the lake repairs. Campbell warned we don t have the needed money, so he d have to check with our accountant. All the money is allocated in the budget for particular expenses. McShea asked if there was another way to get the needed money, like a general assessment to fix the lakes. Campbell agreed it was possible. McShea was just trying to hear all alternatives to getting the funds. Stang questioned what Board Member would want to sign a letter of assessment to the members. McShea responded that as a Board we have that responsibility if it becomes necessary. It s all about keeping the community in good repair. Strack stated that the audience would not be happy with you. McShea alleged it s not a popularity contest. Strack disagreed. McShea stressed the responsibility of the Board to do the right thing at any cost. McShea went on to emphasize that if for the last 27 years we didn t prepare for this, then we all need to chip in. Campbell added it would take $77 per quarter for two years. A question from the audience: What needs to be fixed on the lakes? The banks are eroding. How many lakes are there? 8 lakes was the answer. GM Brown reminded the BOD that there are about 13 to 14 sections of the lakes that need repairing. He suggested we could repair the lakes over that time frame. Stang reiterated that there isn t an emergency. We can do this little by little until we re done. McShea suggested we start with the lake between the 14 th green and the 15 th tee box. Stang agreed we should prioritize the sections that need fixing first. Director Vernieri reminded the BOD that Peridia has had assessments in the past. David Hauck, a member in the audience, felt that our documents only allow special assessments for operational expenses, not for Capital expenses. He gave another alternative borrow the money. Although it had been done in the past, he recommended against it.

6 6 Another question from the audience: Are we going to dredge the lakes? GM Brown assured the member that was part of the process when filling the tubes or socks as the lake banks are being reinforced. Then the member wanted to know if enough dirt was dredged out to increase the water depth. Brown stated that the water in the lake is still all there as part of our irrigation system. Stang stated that to raise the water level of the lakes, all we would have to do is raise the spillway several inches so the water couldn t get out. Brown implied that with all the dirt being dredged out of the middle of the lake, the water would go down at first, but then refill with the next rainfall, making it deeper. 5. Audience Concerns: Tom Wallace asked if we couldn t do something with the lack of play Thursday afternoons on the back nine when the front is being used for Nine and Dine. GM Brown stated we do send players off the back nine. Tom Andreacci was told in the Pro Shop that the course was closed at 3:00 because of Nine and Dine. Brown will discuss that with the staff. Pam Wallace recommended that we have the free County Extension Service teach us the proper way our palm trees should be trimmed. When they were in Wallace s neighborhood, they mentioned that the way are palms are being trimmed is killing some of them. Stang thought it was a good idea since it was free and it could do no harm. Tom Wallace was concerned about the oak trees along the south side of the 10 th fairway. He stated that leaves from the trees are all over the golf course and homeowners yards. When will the BOD get them trimmed? Strack shared that his neighbor s oak leaves get blown into his yard and even into his open car windows on occasion. That s life. Pam Wallace wanted to know when the as needed basis schedule would be. Campbell told her that our rule of thumb for all over the golf course is we don t trim the oaks unless they hang over the owners structures. If limbs hang just over the yard, we don t trim. Tom Wallace has two oaks in his yard. He was told that one was on his property. If the Board won t trim those trees, he s going to cut that one down. Campbell warned that they should check with the county before they cut it down. Don Milling wanted an update on the 10% food discount. Strack replied we haven t discussed it lately. Campbell stated that he brings it up often. It s a possibility that the 10% will come back as long as Campbell is on the board. It s still on the website as an amenity. Brown will fix that. Sandy Myles is concerned that the storage shed might not be large enough. Campbell said we d figure out what you need. Adjournment Director Kirkpatrick thanked Dave Strack for his three years of service on behalf of the board. He added that Dave s Gold Watch is in the mail. Audience laughter and applause followed. Action Taken: A motion to adjourn was made by Director Vernieri. Next Board Meeting: Submitted by: Scheduled for Monday, April 27, William L. Handy Jr. Master Board Secretary.