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PPCC 2010 Annual Meeting
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Transcript of PPCC 2010 Annual Meeting
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Perry Park Country Club2010 Annual Meeting
October 9, 2010
4:00 PM
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Agenda• Registration of Attendees
• Call to Order
• Determination of Quorum Present
• Approval of 2009 Minutes
• Presidents Report – Ray Iversen
• Committee Reports House – Sandy Shoemaker
Golf/Tournament/Handicap – Don Armour
Grounds and Greens – Phil Bonfanti
Membership – Lee Richardson
Long Range Planning – Dan Branda
Finance – Dan Sederstrom
• Ballot Tally
Ballot Measures
Election of Directors
• Recognition of Retiring Directors
• Adjournment
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President‘s ReportRay Iversen
Annual Membership Meeting
October 9, 2010
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Adapting to Our Environment
• Our EnvironmentWeak national and Colorado economy
Colorado unemployment rises from nearly 7% to over 8%
Slow residential real estate market
Golf competing for discretionary dollars
Intense competition from public and private golf courses
Our course and it‘s conditions remain one of the best in Colorado.
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Adapting to Our Environment
• Our Club 2009-2010 Surplus in 2009 avoided need of year-end assessment
Membership attrition most critical issue. Full (Equivalent) October 1, 2007 342.0
Full (Equivalent) October 1, 2008 297.3
Full (Equivalent) October 1, 2009 272.8
Full (Equivalent) October 1, 2010 228.4
Expectations of lower revenue drive cost reduction for 2010 budget.
Mid-year adjustments made to avoid 2010 year-end deficit. Modest dues increase
Additional outside revenue from outside play
Suggested modifications to by-laws
Long-term debt reduced from $756,000 to $630,000 (Oct-Oct).
New tees on #3, #7, #12 and #16 with Bunker renovation on #12
New tile placed in Manor House entry
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Adapting to Our Environment
• Outlook for 2010-2011
A challenge in developing a budget for 2011.
Need to reverse the decline or at least stabilize membership level
Some capital expenditures necessary in 2011Course Maintenance equipment
Manor House
Carpet?
Continued focus to control costs.
Committees formed to review options for:Long-term Food & Beverage operations
Recapitalization of Club‘s financial structure
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House CommitteeSandy Shoemaker
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F&B committee
Mission Statement
To explore the current structure and
alternative structures for the food and
beverage operations at PPCC with the
objective being to be able to execute the
delivering of food and beverage at a
service level that is expected by our
membership and within a financial model
that is also acceptable to the members.
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House Committee
Changes for 2010
• Manor house—
The committee initially approved to move forward with
replacing all the flooring on the main level of the manor
house and the computer area on the lower level
Priority was the main foyer – which was accomplished in
Spring 2010
Other projects put on hold due to material choices and
eventually due to funding
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House Committee
• Upcoming manor house improvements
Recommendations
New carpets/flooring for the dining room is priority #1
Restroom improvements – priority #2
Remainder of flooring
PDR last priority
• Longer term Manor House needs
Chairs for dining room and grill
Light fixtures in PDR
Paint
Window coverings
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House Committee
• Events – central to keeping membership and
building community
Halloween » Snowball
Candlelight » Bingo – new event
Poker nights » Valentines Day
Guest chef » Putt-putt challenge
March Madness » Kentucky Derby
Wine & Jazz » Steve Barta – jazz night
Many more events sponsored by members
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House Committee
• Christmas at the Club
The house committee is also responsible for the
Christmas decoration – lots of hard work went into
this last year
We will be decorating this year on November 27 and
28th - would love more help
If anyone has LED lights that we can use to decorate
on the outside of the house – we‘d love to spruce the
place up over the holidays
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House Committee
• Upcoming EventsPoker
Bowling
Bacci ball
Halloween
Candlelight
Snowball
Chef cooking classes
Bingo
Jazz night
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House Committee
• Other House Items
Adopt – a – highway
Thanks to Andy for the suggestion
Kim Crosely has led this effort
Signs are up on 105
Thanks to the club for everyone‘s participation
Committee looking at F&B structure and
organization for long term
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House Committee
• Thanks to the following committee members:
Lynda Begler
Kendell Christensen
Trisha Peterson
Lorelie Branda
Kim Crosley
Steve Vecchione
Justin Daigle
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Food and Beverage
• A year of change
Hire of Asst. F&B - TJ
F&B director Tom Snell – Left in July
Wedding coordinator – removed in September
Highlight –
Max‘s – Mindy and Lana have done a great job
revitalizing and increasing sales at Max‘s
F&B cart on the course
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Food and Beverage
• 2009 compared to 2010 through 9/30
9/30/09 – Revenues: $564,000
9/30/10 – Revenues: $605,000
Gross margin 71%(‗09) - ___ (‗10)
Bottom line - $27k (‗09) - $___ (‗10)
• Outside income ( weddings)- $15,000 to
the bottom line
• Outside sales (play) - $34,404 revenues
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F&B committee
• Remember - no country club makes
money in F&B
• Best case scenario – break even
• Needs to be looked at in light of all staffing
issues at the club
• Weddings are key in us reaching break
even – we have at least 9 weddings
confirmed for 2011
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Golf, Tournament and Handicap Committee
Don Armour
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Golf, Tournament and Handicap Committee
Tournaments Analysis – Outside Groups
• Total of 7 events generating $57,432 in revenue and $33,365
(56%) in profit for PPCC vs. $110,783 in revenue and $72,122
(65%) in profit in 2009 from 11 events.
• Although the trend was down from 2009 these groups
contributed to our profits. Thanks to John and all of the Pro Shop
staff for selling and taking care of all these Outside events!!!
• A major goal next year will be to increase outside group play.
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Golf, Tournament and Handicap Committee
Tournaments Analysis – Member Events
• Total profit from member events (excluding Justin‘s Revenge)
was $31,561 compared to $30,544 in 2009.
• $12,818 is attributed to the Invitational, $3,498 to the Classic and
$3,941 to the Pow Wow (62% of total profit).
• Prices for tournaments was the same as 2009.
• Thanks to our members for their strong support for and
participation in the tournaments and to all of our staff to make
them a success.
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Golf Tournament and Handicap Committee
Activities/Accomplishments
• Updated the Golf Policies
• Updated the score card
Replaced USGA rules with local rules
Added Red Tee Yardages
Added space for initials for the second nine holes
Added pace of play language
• Held Rules of Golf Seminar in April
• Enhance ForeTees system
Groups helping the Pro Shop more
Spouse e-mail updates
Used for Tournament registration
• Parent/Child Tournament in June
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Golf, Tournament and Handicap Committee
• Added tournament to benefit the Anchutz Cancer Center; raised
approximately $5,700
• Developed a brochure with golf events, associations, programs and
tournaments
• Analysis comparing Perry Park golf course length, slope and rating with
other private clubs published in Fairway Views
• Experimented with a men‘s 9 hole mid-week evening play event
• Experimented with holding starter times on Fridays, Saturdays and Sundays
to help manage tee times
• Restricted Member/Guest handicap differentials to 10 strokes for
tournaments
• Statistical analysis of hole-by-hole scoring in tournaments for 2009 and
2010
2009 results published in Fairway Views
2010 results show difference in scoring from the three new gold tees
Data used to re-rank holes for 2011 golf season
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• The policy regarding posting of scores and handicap
verification has been changed:
home course scores are expected to be posted on the day
of play, and all no later than 3 days after play
all winners in specified tournaments will be audited to
ensure that all scores have been posted
failure of winners to post scores will result in
disqualification and forfeiture of all prizes
tournament guests must provide contact information who
can verify handicaps
Thanks to our committee members:
Mary Craig, Alice Gordon, John Merrihew, Jeff
Anderson, Frank Pugliano, Jim Storms and
Bill Wood
Golf, Tournament and Handicap Committee
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Grounds and GreensPhil Bonfanti
Mike Kronschnabel
Justin Daigle
Joe Clements
Marilyn Parker
Bill Cannon
Scott Christensen
Bert Rambo
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MISSION
• Based on membership input and survey, make long term improvements to the golf course that will result in improving member satisfaction, attract new members and improve overall play and beauty of course
• Maintain course on a daily basis
• Accomplish above in fiscally responsible manner
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METHOD
• Review membership survey in detail
• Solicit input from membership
• Prioritize items within budget
• Gain board approval
• Support Justin and his team
• Accomplish work
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CHALLENGES
• The winter was extremely difficult on our greens
Justin did a great job in restoring them and
today they all look great!
• Money money money – despite very restrictive
budget – we got some key items done on a
timely basis
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Key Accomplishments
• Bought trencher to improve drainage in bunkers
• Put in new forward tees on #3, #7 and # 16
• Made major improvements to # 12 – IT LOOKS
GREAT
• Put in new tee signs at NO COST!
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What needs to be done
• Still need bunker renovation in order prioritized as
budget permits
• Need to fix cart paths (too costly in today‘s environment)
• Do not soften the course – keep it a challenge!
• Leave the trees alone!
• Support Justin and his staff
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Membership CommitteeLee Richardson
Committee Members
Andy Morris
Herb Miller
Bob Buente
Val Duringer
Jim Dawson
Jenn Jaeger
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Membership Details
Full FOA Social Jr LOA Annual FNE FOA NE Jr NE Centennial
Jan ‗10 207 26 119 2 7 6 34 3 2 11
Oct ‗10 179 25 127 1 10 18 26 3 1 10
Variance (28) (1) 8 (1) 3 12 (8) - (1) (1)
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2010 Programs and Plans
• For 2010 we had the following programs and plansAnnual Golf Passes
$51,700 in revenue
Get Acquainted Days
New Homeowners mailings in surrounding Zip Codes
Resigned Member contact program
ACT database letter campaign
Golfhub.com campaign
Member referral program
Multiple email campaigns to members and prospects
Web site updates and redesign
New Welcome kit for new members
New Member Reception
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2010 Marketing and Awareness Programs
• For 2010 we had the following Marketing and Awareness
plans in place
FM 104.3 radio ad
Colorado Avid Golfer Magazine
Two Ads
One of which the cost was offset by a tournament that was co-sponsored
and advertised on the CAG website and email database
Denver Post Castle Rock Hub Ad
Perry Park Sentinel and Bell Mountaineer Ads
Paid Targeted Marketing list mailings
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ACT database
• Finally after 2 years I believe we have a working
software database of prospects that can be
followed up effectively
• Two staff members were sent to two days of
training in Colorado Springs.
• Complimented by an integrated application
called Swiftpage we can email thru the ACT
database and track the activity of that e-mail
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2011 Marketing Plan
• Membership committee will have ready in
November, a comprehensive marketing plan that
will be presented to the Board
• In Nov and Dec the committee will have a series
of workshops with the board to finalize
• For 2011 we hope to have a dedicated
Membership Sales Director. Over the last two
years I have realized that this is an absolute
must and we cannot share duties or go without a
Membership Sales Director.
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Acknowledgements
• My sincere thanks to Herb Miller, Bob Buente, Andy
Morris, Val Duringer for their time, dedication and
excellent work on the committee.
• We also have added in 2010 two additional
members, Jenn Jaeger and Jim Dawson.
• Herb Miller will be retiring from the membership
committee after 6 years
• For more detailed information please visit the PPCC web site and review
each months membership minutes
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Long Range Planning Committee2010 Annual Meeting
Dan Branda
Mike Kronschnabel
Andy Morris
Dru Foust
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The Plan
• 2010 – 2015 Plan Board
Committees
Briefing of new Board members
• Plan contents includeGolf industry and local market trends
Water Rights
Capital Maintenance items and potential project list
Committed funding
2010 Business plan
Financial scenario planning
Partnership criteria
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Marketplace• Reference DocumentsMcMahon 2009 Country Club Outlook
2009 bank appraisal
Douglas County 30 year plan
Futurespeaker.com
Marketing demographics from the Membership Committee
• ConclusionMarket place under stress and will be that way through
2015. In the USA multiple golf courses will close
Once a Golf Course always a Golf Course
PPCC will need to attract members from the 80104 & 80109 Castle Rock area
Perry Park and Larkspur will grow and will always be the primary market
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Water
• Water RightsOur Rights are secure
2010 final resolution of refill right ?
PPCC is obligated to keep dam in good repair
PPCC can not encumber our water rights
• Chatfield water storage option 100 acre feet storage option if projects move forward
$500,000 + for us to execute the right
Build out still years away
ConclusionNot a strategic asset, sell now
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Capital Maintenance• Major outside itemsGolf equipment, parking lot, roof, gas tanks, irrigation
system, dam, fencing, painting
• Major inside items HVAC system, IT equipment and software, carpets,
restrooms, painting, kitchen equipment - Manor House & Max‘s
• Funding requirements Minimum funding $70,000/yr
Full funding based on asset life $100,000/yr
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Potential Capital Projects
• Prioritizing project list Focus groups
Potential members and current members may have
different priorities
Projects can be done in phases
• Golf Course Bunker renovation, cart paths, putting greens, chipping
area, 18 hole green, level tee boxes
Total cost about $600,000
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Potential Capital Projects
• Manor House Carpets, bathroom, counter tops, locker rooms, exercise
room, upper level office area
Cost about $300,000
Birkey plan
• Other Projects Cart barn, cart barn/pro, pool & changing room
@ $220/sq-ft a 3,000 sq-ft cart barn cost $660,000
Cart barn & proshop at 6,000 sq-ft cost $1,320,000 but frees up space for the exercise room and larger women‘s locker room
Pool construction $75,000 - $100,000. Still may need a changing room
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Partnership / Alliance Criteria
• Partial Criteria includes Strategic intent of PPCC
Strategic intent of partner
Management of relationship
Compatibility of partners
MOU commencement, term, evaluation, benefits to both
parties
Value/ negatives to our members
Impact on future members
Define economic gain to both parties
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Finance CommitteeDan Sederstrom
• 2009 Calendar Year Audited by Van Dorn & Bossi – CPA
Opinion letter states that our financial statements reflect the
financial condition of The Club operations ended 2009 with a surplus of $33,300
Pro Shop golf revenue and retail sales generated a profit of $173,500
Food & Beverage incurred a loss of $14,500
Revenue from Members dues increased $30,400 over 2008
Revenue from sale of Annual Passes was $23,700 in 2009 vs $66,000 in 2008
Balance on the Line of Credit loan was 0 as of Dec 31, 2009
Long term debt decreased $107,500 in 2009 to a balance of $724,700
Sinking fund had a cash balance of $8,700 as of Dec 31, 2009
The Capital improvement fund had a cash balance of $57,700 as of Dec 31, 2009
The number of Full Equity and Non Equity memberships decreased by 12 to 256 at year end
Because of operating surplus there was no assessment for 2009
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Schedule of Last 3 years
Category
2007
Actual
2008
Actual
2009
Actual
Initiation Fees $ 104,600 $ 45,000 $ 3,700
Capital Improvement Fund
revenue
27,000 89,000 * 81,500
Capital improvement
expenditures
56,000 82,900 1,600
Annual operating profit (loss) 25,500 ** (177,500) 33,300
Food & Beverage profit (loss) (65,000) (138,200) (14,500)
Pro Shop profit (loss) 207,000 163,300 173,500
Golf Course maintenance costs 699,000 705,500 657,400
General & Admin costs 474,000 458,000 440,200
Line of Credit loan balance 40,400 174,000 0
Long Term debt loan balance 976,100 832,200 724,700
# of Dues Paying Members 306 268 256
Monthly Dues excluding debt $320 $373 $403
•* 2008 was first year of collecting $25/month
•** The surplus includes $49,600 of property tax rebates rx‘d for years 2005 and 2006
•*** 2007 does not include $25/month for the capital fund while 2008 and 2009 do. All 3 years
include the $50 for debt payments
Following schedule compares some of the major components for the last 3
years. This is helpful as it provides a glimpse of the financial trends of PPCC
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Capital Improvement Fund
• Fund had a cash balance of $6,900 as of Dec 31, 2008
• In addition there was $29,000 of unfunded 2008 expenditures
which was carried forward to 2009 as part of our LOC
• In 2009 the club expended $29,000 to pay for the 2008
carryover plus $1600 on new capital projects
• The board made a decision during 2009 that there would be
no further funds expended on capital projects until there was
sufficient cash in the fund to pay for the costs.
• The fund ended 2009 with a cash balance of $57,700
• Thru August 2010, $59,600 has been spent on capital
projects. It is projected this fund will have a cash balance of
approx $70,000 at year end 2010
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Sinking Fund(Debt Service Fund)
• On Dec 31, 2008 this fund had a negative cash balance of $4,100
• In 2009 our debt obligations totaled $151,800 while the $50 in dues
generated revenue of $164,600 leaving a cash balance of $8,700 at the
end of 2009
• In 2009 the board negotiated a restructuring of our long term debt
payments. The restructuring eliminated the $50,000 principal payment
which was payable every July on the smaller loan. The new monthly loan
payment is $13,000 plus monthly interest (approx $800) on the small loan
thru Oct 2013. The restructuring extended the final payoff date by 2 years
but our annual debt service requirement was significantly reduced.
• The new monthly loan payment is covered so long as we maintain 260 full
dues paying members. At the end of 2009 the club had 256 full dues
paying members.
• If the membership remains at the current level of 240 members there will
be a shortfall of approx $12,000 per year. The fund is projected to have a
negative balance of $6,000 on Dec 31, 2010.
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Line of Credit Loan
• On Dec 31st 2008 the loan balance was $174,000. This loan
was paid in full in April 2009 from the proceeds of the annual
assessment of $648 to each full member.
• In June 2009 the Club borrowed $50,000 to fund cash flow
requirements
• This loan was paid off in full prior to Dec 31, 2009 leaving a
zero balance at year end.
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2009 Financial Analysis and 2010 Projection
Operating Fund 2009
Budget
2009
Actual
Variance
Fav (Unfav)
2010 Projected
Membership revenue $ 1,063,900 $ 1,093,300 $ 29,400 $1,010,100
Annual Pass Sales 106,400 23,700 (82,700) 51,700
Pro Shop Net profit 148,100 173,500 25,400 160,300
Food & Bev net (loss) (50,200) (14,500) 35,700 (28,300)
Course Maint costs (673,900) (657,400) 16,500 (663,600)
General & Admin costs (473,600) (440,200) 33,400 (409,400)
Manor House costs (106,900) (107,900) (1,000) (99,600)
Operating Profit (loss) 13,800 70,500 56,700 21,200
Membership Marketing
Costs**
(15,300) (37,200) (21,900) (38,100)
Total Profit (Loss) (1,500) 33,300 34,800 (16,900)
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Summary 2009
• 2009 was a very good year financially, given the economic problems
of the country and our local area
• Surplus was the result of selling many Non-Equity memberships and
reducing the loss in Food & Beverage by $124,000, cutting
expenses and dues increase of $30 per month
• However we had a net decrease of 12 full members in spite of the
tremendous efforts of the Membership Committee
• This is a very disturbing trend but appears to be driven by the
economy and its related impact on the finances of our members
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Summary 2010
• 2010 has presented new issues and is proving to be more challenging than 2009
• Membership sales have been very difficult with only 8 sales thru Sept, with more
resignations during the first 6 months of this year than in previous years.
• As a consequence, revenue from dues is below budget and is less than collected in 2009
• In July the board was dealing with:
Decline of 15 memberships from end of 2009
Loss of several Monday golf tournaments
Significant drop in guest green fees and cart rentals
• Board decided that a mid year correction was necessary
Dept Managers were asked to reduce their expenses by 5% for remainder of the year
However the board decided that this would not be enough action as expenses can only be cut so far
without having a product to market
Therefore dues were raised by $15/month
Limited outside non-member play was allowed in afternoons after 12PM
• Projected that we could generate $30,000 in additional revenue from outside play
By Sept 15th we have already achieved this goal
• As a result it now appears that the operating loss could be $20,000 and perhaps less
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Summary 2010
• Food and Beverage Dept has had an incredible August and Sept, mostly due to exceeding
budget the number of weddings.
• Combined non-member green fees and cart rentals has improved our financial condition to
the extent that the operating loss in 2010 will be small.
• Some members have expressed their concern of allowing outside play as it diminishes our
image as a private club. The board is very sensitive to this issue, however the fact is that
241 members cannot financially support this club
• We need to focus on raising revenue not just cutting expenses.
• Board also realizes that membership sales will be difficult for the foreseeable future
• Outside play will be utilized only to the extent required to keep the club in a financially sound
condition which will be in direct proportion to the number of full members in the Club.
• This is a revenue source and marketing lead generation tool which will allow PPCC to
survive until we can grow our membership and or get us to Oct 2013, when a significant
portion of our long term debt is paid off.
• This revenue source is easily managed and can be controlled by limiting the number of tee
times allocated to outside play. In addition we are following up with all outside players and
believe that we can generate additional members from this source once they have
experienced what PPCC has to offer
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Summary 2010
• The board will continue to be very aggressive in 2011 with our
membership marketing. We must at a minimum sell as many new
memberships as we have resignations.
• We are not at this time anticipating that there will be an assessment
for 2010
• If the membership allows us to use some of the capital improvement
funds to cover some of the operating losses there should not be an
assessment.
• By supplementing our revenue with outside play in 2011 we are
hopeful that the 2011 budget will not require a dues increase, or if so
it will be minimal. However, there may be a need to raise dues to
cover the shortfall in the Sinking fund. The number of members at
year end will have a definite impact on whether dues have to be
increase or not.
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Summary 2010
Once again we need to ―Thank‖ our employees and
Department Managers for the effort they put forth in
managing our Club, controlling expenses and providing
service to our membership. Good employees who go
out of their way to please the members should never go
unrecognized and an occasional ―pat on the back‖ by
each of us sure improves their attitude.
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Ballot Tally
• Ballot Measures
• Election of New Directors
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Recognition of Retiring Directors
• Phil Bonfanti
• Lee Richardson
• Ray Iversen
Slide 59 of 55
Adjournment