A Summary of the February 28 Board Meeting

Update from Nominating Committee
Mr. Ben Kalny stated the goal for the committee was to find five to six candidates, and he said this has been challenging. Twenty-five different names had been submitted and divided among the committee members to speak with each prospective candidate. In addition, there was a January Meet & Greet and three e-mail blasts recruiting for possible candidates. Four additional candidates were approached. In February, and one candidate was confirmed.
Mr. Tim Wilson decided to step down from the Nominating Committee and become a second candidate. Today, Mr. John Nelson agreed to be a third candidate. According to the By-Laws, there is no minimum requirement. At this time, three candidates were presented to the Board; Mr. David Lockett, Mr. Tim Wilson, and Mr. John Nelson. The date for Meet the Candidates is March 22.
Mr. Ernie Block asked the committee why they thought there was such low participation or why it’s so difficult to get people to come forward. Mr. Kalny’s impression was that the perception is the Board catches a lot of flack and it is a thankless job. Mr. Wilson stated the general feedback from several candidates was this just is not the time, but perhaps in the future–and also being on the Board is a tough job.
General Manager Search Update
The following selection committee has been established and will be responsible for vetting candidates: co-chairs Steve Sestak and Tray Vedock, Margaret Bowker, Christina Gomer, Jim Wright, Jim Large and Mike Lutz.
Mr. Sestak spoke about the process. The job has been posted within the industry and other sources, such as Linked-In. Approximately 100 responses have been received.
They are seeking a General Manager with experience and skills in home owner elements and country club elements; both sides being instrumental. The Committee has identified three candidates thus far with a good balance of both. The Committee will have final screening of applicants and schedule interviews in order to present the best candidates to the Board for review. Ultimately, it is the Board’s responsibility to make the hiring decision. Mr. Nighswonger’s intended retirement date is May 31; however, Mr. Sestak hoped he may have some flexibility.
The Committee created a General Manager job description as none could be found. Motion was approved to accept job description submitted by the Selection Committee.
Restrictions Committee
A motion was approved by the Board for variance at 211 Apache Trail West.
Mr. Chuck White spoke about the drainage issue behind the administration building. Several bids from contractors to work on the project have been received. Due to the cost, Ms. Anita Bible suggested splitting the work and doing the portion of getting the water down to Holliday Drive and then do the other later. Ms. Bible stated the City requested Q Inc. take care of this issue. Currently, there is no money allocated for this project. Questions arose as to which Committee is responsible for this or whether Q Inc. is responsible. This is a preliminary discussion, and more research for options and requesting additional bids needs to be done.
Discussion ensued on the impact of three-axle vehicles on our road system. A suggestion was to set a road impact fee of $40 per truck. It was mentioned some two axle trucks can carry heavier loads than three axle trucks. Mr. Sestak spoke about the impact being broader than just roads; for example, Anita’s time overseeing construction project, more security would be needed. Mr. Sestak thought we should not limit this to road impact as there is a greater community impact. He suggested, as the City charges a fee on a project, perhaps Q Inc. should charge a standard percentage (example 1 percent) on every project.
A suggestion was made for a simpler process to capture the money; fee per three axle truck or standard percentage. Keeping track of trucks could be an issue. New gate security system would help to track trucks; however, there will be additional administrative costs to get thorough accounting of trucks.
It was noted that when building a house someone would probably like to know up front what the additional cost would be.
Mr. Sestak stated perhaps an actual study on roads needs to be done to tell us if the $200,000 allocated each year is appropriate. Should it more? Should it be spent differently? He reiterated we need some guidance on our roads. We need something proactive instead of being reactive.
Finance Committee
Management came up with a new operating budget for 2017 that shows a deficit of $99,400. The Committee decided to recommend this budget to the Board and not recommend a dues increase. There is almost $300,000 in the operating reserve. The Committee recommends keeping 5 percent of expenses in reserve, which is a little over $217,000. Therefore, the Committee is recommending go with the $99,400 deficit and take the deficit out of the operating reserve, which would reduce the operating reserve down to about $200,000. Changes in the budget mostly came from employees signing up for health insurance at year end, change in employee costs due to overturn of overtime rules which were to go into effect January 1 and events held at LQCC.
Mr. Starr spoke about expanding our use of credit cards. The Marketing & Membership Committee suggested to the Finance Committee that in allowing people to pay for most everything via credit card, we might generate more revenue, encourage more memberships, people may spend more and a variety of reasons. Mr. Starr noted one of the reasons not to do it is because credit card companies charge to 1-3 percent on the revenue coming in. During the Finance Committee meeting, there was a discussion that there may be a way around the finance fees. The Finance Committee thinks expanding our use of credit cards is a good idea, and the decision was made to think about it more.
Motion approved to accept proposed 2017 budget.
Lake & Residential Committee
A new boat ramp is in process of construction; 16’ wide x 45’ long x 6” thick; lots of traction on it and in a better position to facilitate the loading and launching of boats.
The Committee has been researching the Navajo/Mohawk water shed for the past 4-5 months. They brought in engineering firms, walked the field, documented and in the process identified that the box culvert at Duck Island had rebar exposed which was 40-50 years old.
Additionally, seven different structures have been identified that are in great need of repair. The Committee feels Duck Island Cove is a priority as it is actually a bridge. They will continue to get bids, but it may be around $126,000 to replace the culvert. Mr. Sestak inquired about the possibility of using money from the road overlay fund. A suggestion was made to secure an engineering firm to determine the specs of what needs to be done.
Ladders at the beach docks are rusting and therefore need to be taken care of. Gary is to move forward and take care of this issue.
A spilling basin was created today at Duck Island Cove next to the box culvert. The goal of this spilling basin, while trying to figure out the water shed solution, is for the silt pouring in to circulate in the spilling basin and drop into the basin before it all goes out into the lake.
Golf Committee
Per the directive from last month’s Board meeting, Mr. Ed Markley stated the Golf Committee has prioritized the projects, reduced the amount of requested funds and developed a communication plan to inform members.These directives needed to be accomplished before a motion would be approved to add a request to the March ballot. The request was to ask membership again to authorize the budgeted monies from the long term capital reserve fund to maintain repair of the golf course. Motion approved to add this request to the March ballot.
Marketing Committee
Ms. Bowker updated the Board on membership as of January 31; 394 Foundation Members, 116 Country Club Members and 46 Social Members. In February, we acquired three new Country Club Members who took advantage of the Winter Membership Promotion. She challenged the Board to each bring prospective members to the Membership Open House on April 2.
Motion approved for a 20 percent discount on the initiation fees for Country Club and Junior Country Club Memberships expiring April 2, the day of the event.
Ms. Bowker spoke about adding a Legacy Program to our membership offering. The Marketing Committee will discuss the program and who would be included in program before bringing a motion to the Board.
Ms. Bowker thanked the Board for everyone providing information on the Annual Report. She will have the information laid out graphically in a nice document and should have something for them to review in approximately 7-10 days. Ideally, we will send out this “Year in Review for 2016” document prior to the Annual meeting via a digital flipbook. This will bring the membership up to speed on what the Board has done over the past year.
Regarding the Annual Meeting, the Marketing Committee will work to send the meeting agenda out every Tuesday via all our social media channels until the Annual Meeting on March 27.
Ms. Bowker spoke about the following: Committee working on lowering the Club’s attrition number, new member orientation, and an ambassador program for visitors who want to tour the lake but don’t want to meet with a real estate agent. Also, a few positions on the Committee are coming open in 2017 and she is seeking members to fill those positions.
Brad Botteron is working on the engineering spec for the electronic bulletin board, and that spec will go before the City.
Safety & Security Committee
Mr. John Nelson spoke in Ms. Laurie Walker’s absence. In front of the Preschool, the no parking sign went up, and the teachers are complying with the sign. Also, a question arose on the safety of the dropoff zone. Whitney Sojka and Stacy Bichelmeyer will reach out to preschool parents to obtain feedback for ideas on this issue.
Speed bumps were reviewed. Six speed bumps are available; five will be replaced, and one will held back until it is determined where it is needed.
There is a parking issue regarding two cars on Lakeshore West; however, there is no rule prohibiting them from parking where they are parking. Anita reached out to both car owners; one owner said they would do what they could do to be a better member and the other said if there is no rule, therefore, they won’t change. The results from Anita’s discussion with the owners will be brought to the Committee and discussed. A suggestion was made that perhaps the cars could be parked in the gravel part of the cove.
General Manager’s Report
Financials for January were off about $4,600 to budget. January is always a difficult month to forecast due to scheduled shutdown. However, Mr. Nighswonger was hopeful if the Clubhouse was opened on Friday people may be excited and come in. Unfortunately, that didn’t occur as there was an ice storm that weekend. Additionally, from the labor standpoint, more kitchen employees took vacation instead of taking time without pay. With regards to dues, the forecast was missed by about $1,900.
In the month of February, we had unexpected expenses of approximately $5,500; identifying the sewer smell in the Clubhouse and Water One Wastewater made us make some changes. Regarding the sewer smell, smoke bombs were set off two different times. The first time smoke was found coming out around the toilets. So, every toilet was pulled and new rings were installed, thus sealing around the toilets. The second time, no smoke escaped anywhere. The smell has been much better, but we are continuing to work on this issue.
Strategic Planning Committee
The Committee presented the Strategic Options and explained the next steps to review them with the membership. The immediate plan is to formally introduce them at the Annual Meeting this month, then schedule a series of member meetings to obtain feedback. The Board provided constructive feedback on the presentation, as well as certain operational and governance implications to consider should some of these options be pursued.