Board of Directors Meeting Summary
November 24, 2009
The Board of Directors of Quivira, Inc. met for the regular monthly meeting on Tue., Nov. 24, 2009. Following is a summary of the discussion and actions occurring at the meeting.
John Miller, General Manager, reported the net operating results for October were positive, with a net operating income of nearly $32,000. He indicated the net income was about $17,000 better than budget for the month. He noted clubhouse sales exceeded budget by about $7,000, and operating expenses were held below budget by about $14,000, yielding a positive variance of nearly $21,000 for the month. Mr. Miller indicated golf related income, however, was off budget by about $12,000. Year-to-date, the net operating deficit stands at $16,295, which is approximately $8,000 greater than budget through October.
2010 Operating Budget
Tom Prater, Treasurer, presented the Finance Committee report and recommendation on the 2010 Operating Budget. Mr. Prater outlined the parameters upon which the General Manager was asked to develop the 2010 budget. He indicated revenues were projected to be based on an average of 500 members in the Foundation, Country Club Golf and Junior Golf categories; there are currently 509. Further, he noted other revenues, such as food and beverage sales and golf related revenue were to be projected at the same level as 2009 actual revenues. On the expenditure side, he noted management was instructed to budget salary and wages at the same level as the projected amounts for 2009, and to hold other budget items at or below the 2009 level wherever possible. Mr. Prater explained management prepared a budget based on these parameters, holding expenditures at only $20,000 above the projected amounts for 2009, yet the net operating loss was still projected to be over $105,000.
Mr. Prater explained the Finance Committee considered a variety of revenue options and expense reduction options in order to close the gap between projected revenue and projected expenses for 2010. Mr. Prater indicated the committee decided to recommend the following steps to balance the budget: increase dues by $10 per month; increase the monthly food minimum from $50 to $60; increase cart rental rates to $35 for 18 holes/$18 for 9 holes; increase trail fees from $444 per year to $480 per year; increase family guest fee rates to $40 on weekdays and $50 on weekends and to reduce the voluntary contribution to the employee retirement system by 50 percent. Taken together, these steps amount to about $104,000 and would bring the budget to within about $900 of balance. Mr. Prater noted the committee discussed several other expense reduction options as well. He indicated the General Manager had already made several reductions in order to meet the parameters established by the committee. Holding payroll to the 2009 levels resulted in a reduction of approximately four positions. No pay increases are anticipated in the 2010 budget, and the amount included for employee health insurance allows for only a 10 percent increase in premiums, while the actual projected increase is 20 percent. The difference in the cost for health insurance will need to be made up through reductions in coverage and/or increases in employee contributions.
The Board had a lengthy discussion regarding the budget and options for raising revenues and/or reducing expenditures. There was discussion whether the membership would be receptive to both an increase in the food minimum and a dues increase. There was also discussion of whether the operating reserve, which is projected to be in the $160,000-$180,000 range at the beginning of 2010, should be used to offset some of the projected operating shortfall. After further discussion, the Board decided to table action on the 2010 Operating Budget and continue consideration of the budget at a Special Board meeting on Tue., Dec. 15.
Lake & Residential Committee
Ron Chapman, Committee Chair, reported the committee discussed concern expressed by some in the community with the burning of leaves. He shared information with the committee on services in other communities that collect or vacuum leaves along the roadside. He noted the community of Roeland Park provides this service to its residents. He indicated at future meetings the committee will continue to discuss the potential of offering this service at Lake Quivira. It was noted the flyer distributed around the community which addressed burning and zebra mussels was very well done. Mr. Chapman noted he has received several favorable comments regarding the flyer, which was prepared by committee member Chris Becicka.
House Committee Report
Landy Boling, Committee Chair, commended the good work of Clubhouse Manager, Judi Renzi, and the clubhouse staff as evidenced by the very favorable budget results for October. Mr. Boling also noted the committee is seeking member opinions with regard to a business expo next spring. The survey is on the weekly E-News. Members are encouraged to respond. He also noted the committee discussed various ideas on ways to increase business on Sundays. He noted the cook-out during the summer was very successful, but since that ceased at the end of summer, business on Sundays has been very slow. Finally, Mr. Boling noted only about 20 members have made reservations for the New Year’s Eve Party. He indicated it will take a minimum of 80 members and guests at the event to make it at least a break-even proposition.
Safety & Security Committee
Dana DeSpain, Committee Chairperson, reported the committee evaluated the traffic signage at the intersections of Terrace Trail West and Glenview and Terrace Trail West and Mojave. The committee discussed whether some changes in the signage should be made based on concerns expressed on visibility, particularly at the Glenview intersection. Members of the committee determined not to pursue any changes in the signage at this time, but recommended trimming of brush and tree growth be undertaken in order to improve visibility at the intersections.
Public Relations Committee
John Hoover, Committee Chair, reported no new members have been brought in since the last Board meeting under the membership drive in effect. He noted to date two new golf members and two new social members have been recruited.
Spirit of Quivira Committee
Dana DeSpain, Committee Chair, reported Annie Noland, Sandy Treas, Dennis Jarman, Carol Borberg and John Harding have agreed to serve as members of the Spirit of Quivira Committee this year. She also noted six nominations have already been received, and she encouraged members to submit additional names for consideration.
Social Membership Bylaw Amendments
The Board gave final approval to two Bylaw Amendments relating to the Social Membership category. First, the Board approved an amendment revising the privileges extended to Social Members. Effective with new members joining after January 1, 2010, the privileges afforded Social Members will no longer include the privilege to register a boat for use at Lake Quivira. The Board also approved an amendment to increase the maximum number of Social Members from 50 to 100; currently there are 45 Social Members.
In other discussion and action the Board:
- Approved an extension on the waiver of initiation fee for a second property.