Cypress Lake Country Club Board of Directors Meeting Minutes

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1 Cypress Lake Country Club Board of Directors Meeting Minutes July 31, 2017 PRESENT: EX-OFFICIO: ABSENT: CALL TO ORDER: Scott, Fischer, Ralph Hutchins, Steve Weisberg, Steve Shimp, Cheryl Schramm, Gary Saft, Elaine Teschner Ed Rodgers, Bryce Koch Paul Henderson, Chris Black Meeting was called to order at 3:00. A Quorum was present. Food and Beverage Manger Kris Antonacci introduced David Ebling as the Club new Executive Chef. David provided the Board a brief review of his past service. David comes to us with an extensive background in private club operations and service. Bryce Koch provided the Board with a review of the status of the course restoration program. At the present time all the greens have been grasses. The remaining fairways, roughs and tees should be grassed by August 15. Lepanto will remain onsite to do repairs to areas damaged during the restoration. They will also build the three bridges to replace the bridges that have deteriorated. The project is expected to be on budget and reopen at the projected date of November 1. APPROVAL OF MINUTES: The minutes of the April Board of Directors meeting were distributed and reviewed. The Board did not meet in May or June. There were no changes. Motion: Mrs. Schramm moved to approve and Mrs. Teschner seconded. All in favor. Minutes approved. STRATEGIC PLAN UPDATE: There were no updates to the action items for the year since the March meeting. The latest update is as follows: MEMBERSHIP RETENTION, ATTRACTION AND MARKETING: The Club has experienced a decline in the number of Golf members over the last twelve months due in part to an aging membership and the planned golf course restoration. The Board has established a goal of retaining existing members and attracting new members to the Club. o Develop and implement a marketing plan to attract 20 new Golf members in the fiscal year: The Club has retained Priority Marketing to assist in the development and implementation of a marketing plan to achieve the goal. The plan has been developed and consists of three major strategies: (1) Utilize public relations, social media marketing and marketing, (2) Use limited advertising to target industry and consumer print publications, cable TV and direct mail marketing to golfers in key zip codes, and (3) Utilize digital marketing advertising

2 to specific high-level targets. o Develop and implement a marketing plan to attract 20 new Sports members in the fiscal year: The Club has experienced a higher than anticipated level of resignations from Sports members. As the Club has transitioned from a secondary / add-on club to a primary club membership, transient league players have migrated to the next club offering a deal. Our membership base is stable but approximately 20 members short of the ideal capacity. Priority Marketing will assist in the development of a plan to attract an additional 20 Sports members. The first step was to develop and print a marketing info/ad dedicated to just Sports membership. o Determine vetting requirements for potential members: The goal is to develop a formalized new member application process that properly vets new members prior to admission. No action has taken place on this initiative as this point but the targeted date for completion is November 1 in anticipation of reopening and new member activity. Ed Rodgers to provide a preliminary draft for the Board to review. o Develop and implement a new member orientation program: This action item is tied directly to the previous action item. The Club is currently on a stable financial platform and the vetting / new member orientation program will be geared to attracting good members who will make our club a better club. o Create a series of re-opening events: The restoration project is on schedule and the targeted re-opening date of November 1 should be attainable. The Membership/Marketing Committee is scheduled to meet in the next two weeks to finalize plans for the re-opening. Tentatively, the Club is planning a pre-opening event, possibly a cocktail party, on Tuesday evening, October 31 st. The course will re-open with an event on Wednesday, November 1 and normal play will resume on Thursday, November 2 nd. There will be a dedication of one, possibly both, of the new bridges on Saturday, November 12 th. Final details to be determined by the committee and then sent to all the members. KEY LEADERSHIP RETENTION, RECRUITMENT & DEVELOPMENT: The Board recognizes the value of good leadership at all levels of the Club and the need to perpetuate that leadership moving forward. The Board has established recruitment and development of members and staff in leadership positions as a priority to maintain and enhance our current success as a Club. o Create, communicate and implement a Board Succession Plan: As current Board members cycle off the Board of Directors as their terms expire, there is a need to create a pool of interested and qualified members willing to step up and assume a leadership position. o Develop a program to recruit and educate potential Board & Committee members: Standing Committee chairs have been asked to recruit members to serve on their respective committees. The goal is to introduce Club governance at a committee level and develop future club leaders. o Research and develop an employee compensation / benefit plan to retain key staff: The Club industry in southwest Florida has recovered from the great

3 recession and has become highly competitive for qualified talent. The goal of this initiative is assure that our Club remains competitive with wages and benefits to retain key staff and attract new staff when appropriate. o Improve employee training programs: The desire to deliver the best possible membership experience requires an investment is additional staff training and development. The goal is to identify training programs that will enhance the member experience and provide the opportunity for staff to participate. BRANDING & CULTURE: The last five years have seen our Club transition from a country club to a golf club. The course restoration provides an opportunity for the club to further that transition. o Develop and implement a Club culture statement: A preliminary draft of a Culture statement has been developed. The next step is a review by the Board. o Develop communication, education and enforcement program: Ed Rodgers to provide a draft for Board members to review. o Re-brand Cypress Lake Country Club as Cypress Lake Golf Club and Cypress Lake Tennis Club: Marketing research performed by Priority Marketing clearly indicates our strength and Niche in the market is as a Golf club as opposed to a country club. Gated golf communities have redefined the country Club market in southwest Florida to include expansive club houses, pools, fitness centers and extensive social programming with golf assuming the status of an amenity among many. Our focus on the golf experience makes us somewhat unique but enables us to provide a club experience that differs from the norm. Re-branding as a Golf Club would more clearly distinguish our emphasis as a club with prospective members. o Further develop and enhance the new food and beverage program: The change made in early January yielded better than anticipated results both in member satisfaction and participation. Enhanced training for service staff is being researched. Chef Jose has elected to step down to his former position as Sous Chef due to personal reasons and the Club has hired a new Executive Chef. GENERAL MANAGERS REPORT: Ed Rodgers reported on operations. Rounds of golf for the 10 months of operation in this fiscal year totaled 28,806 compared to 32,758 last fiscal year with 12 months of play. The 4K round deficit equates to revenue of approximately $120K which is equal to our operating deficit. The Club has hired a new Executive Chef. David Ebling comes to us with an extensive background in private clubs. Chef Jose Oriza has requested that he return to his former position of sous chef due to personal family issues that he feels would compromise his ability to remain as chef. The Mexican tile floor in the main lobby and hallways is scheduled to be replaced in early August. Work is expected to last approximately two weeks. The Snack Bar was budgeted for some upgrades in the budget. Those upgrades were postponed but will take place before the re-opening in November. The parking lot and front entry have experienced significant damage (as expected) during

4 the restoration. Repaving of the lot is scheduled for October. Restoration of the golf course is moving along on schedule. A review of all invoices and outstanding work indicate that the project will come in on budget. All greens are grassed as of July 29 th. The remainder of fairways and tees grassing is expected to be completed by mid-august. Lepanto will continue a presence on site through September to do repair work and bridges. Renovations to the Tennis building are nearing completion. Restrooms and office are done, work on the main shop area is progressing and should be completed within two weeks. COMMITTEE REPORTS: Finance Committee: Minutes of the Finance Committee were circulated prior to the meeting. Treasurer Steve Shimp reported that the projected operating loss of $140K for the fiscal year came in at $117,643. The Board has decided to review the and operating years together and address any potential shortfall at the conclusion of the fiscal year. There were several capital items presented from the Finance Committee for approval: Motion: Mr. Shimp moves for approval of the following capital items: replacement computer for accounting $2,684.92; replacement AC unit for Sarazen Room for $12,479; New practice range screening for $7,500 and Snack Bar renovations for $25,000. Mr. Hutchins seconded. All in favor. Motion passes. There was a capital item approved by vote of the Board. Motion: Mr. Shimp moves to approve the replacement of the Mexican tile in the lobby and hallways at a cost of $27,000. Mr. Weisberg seconded. All in favor. Motion passes. The Membership Committee will meet in early August. Membership totals at the end of the fiscal year have dipped to the lowest level since We have 6 reservation pending for the re-opening but the Club has retained Priority Marketing to assist in the development and implementation of a marketing plan to add twenty new members in the coming year. Memberships / Players Update: As of: 7/1/2016 6/01/2017 7/01/2017 o Founder Family: o Founder Under 30: o Founder Under 40: o Founder Single: o Associate Family: o Associate Single: o Heritage: Total Players

5 o Sports: o Social: Green Committee: Minutes of the Green Committee meeting were distributed to the Board prior to the meeting. Chair Ralph Hutchins reported that the restoration project is moving along on schedule and on budget. Golf Committee: No meeting this month. House Committee: No meeting this month. By-Laws/Long Range Planning Committee: No meeting this month. Tennis Committee: No meeting this month. Employee Relations: No meeting this month. OLD BUSINESS: There was no Old Business. NEW BUSINESS: There were several items discussed under new business. The new fleet of Club Cars is scheduled to arrive in mid-october. The carts will be metallic grey with black trim which will make them easy to distinguish from any of our private carts. A demo version of the cart is currently being used as one of the carts for course tours. Motion: Mr. Fischer moves to approve the color selection for the new golf cart fleet. Mr. Weisberg seconded. All in favor. Motion passes. Bryce Koch reviewed the signage package for the course. Our current number/lettering system for tee markers will be replaced by colored tee markers. The tee colors will be black, white, blue, gold, green and red. Tee signs and permanent yardage markers for each tee were reviewed and approved. Motion: Mr. Hutchins moves to approve the course signage package. Mr. Saft seconded. All in favor. Motion passes. The Board reviewed and approved the employee bonus program for the fiscal year. Motion: Mr. Shimp moves to approve the employee bonus program. Mrs. Schramm seconded. All in favor. Motion passes. Tennis professional Alex Hermeto proposed a temporary membership program to help boost participation for league play in the fall. After a lengthy discussion, the consensus of the Board was that the proposed program had the potential of doing more harm to the future of the tennis program than the good it might do in the short term. Motion: Mrs. Teschner moves to maintain the current Sports membership structure. Mr. Saft seconded. All in favor. Motion passes. MEETING ADJOURNED: Meeting adjourned at 6:05 pm.

6 EXECUTIVE SESSION: No Executive Session Next Board Meeting: The next Board of Directors Meeting is scheduled for Monday, August 28, Respectfully submitted by: Steve Weisberg, Secretary

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