A Summary of the September 26 Board Meeting

President Sestak opened the meeting and invited attending members to share comments and questions. No comments or questions were made.
President’s Report
President Sestak updated everyone that the 2018 budget process is underway with an initial focus on the Capital Budgets. The objective for tonight’s meeting is to review the latest versions and obtain approval. Another Special Board Meeting is scheduled for October 6 at 8 a.m. in the Clubhouse to discuss the first draft of the Operating Budget. The last focus area will be the Strategic Projects. As each budget is completed, it will be sent to the membership for advanced review.
General Manager’s Report
Mr. Goss stated we have sixteen weddings booked for 2018 compared to seven weddings booked at this same time last year. Advertising with The Knot and the successful weddings we have had thus far this year have paid off.
Mr. Goss informed everyone he has spoken with Steve Graves, Creative Golf Marketing, and he is continuing to work on Phase I of the program. Mr. Graves should have something to report to the Marketing and Membership Committee by mid October.
Mr. Goss stated they are working on several things in the HR area; standardizing forms and reviewing the employee manual for a potential amendment in 2018.
New Business
President Sestak stated the main topic on tonight’s agenda is the Capital Budget. The presentation started with Mr. Wilson presenting the latest version of the 2018 Capital Equipment plan. The primary source of funding for Capital Equipment is member dues, which generate roughly $300,000 annually. Next year, the first principal payment on the equipment loan is due. Mr. Wilson stated the total budget for capital equipment for 2018 is $219,646, excluding debt service. Ms. Boling asked what happens to the money earmarked for an item which has not been purchased in 2017. Mr. Wilson said in 2018, the department may choose to use that money towards a more urgent equipment need. Motion was made to approve the 2018 Capital Equipment Budget, including a 3-percent increase in Capital Equipment Dues effective January 1, 2018. Motion approved.
Mr. Wilson continued by presenting the 2018 Capital Projects plan. Transfer and Initiation Fees for 2017 are projected to be significantly less than the $400,000 budget due to lower home closings. As a result, Mr. Wilson stated the 2018 budget for Transfer and Initiation Fees has been reduced to $300,000 to be more conservative. Mr. Braun mentioned the new Construction Impact Fee that starts January 1, 2018, will contribute to the revenue side. Mr. Nelson brought up his concern about the amount of money allocated for roads, culverts and some infrastructure projects being put off into future years. President Sestak said we can’t do everything at one time and items need to be prioritized. Mr. Nelson expressed it is more important to allocate money to deal with flooding issues than other departments. Mr. Markley commented all departments have had to defer projects which need to be done. President Sestak expressed the importance of retaining a reasonable balance in the Corporate Reserve. Motion was made to table the Capital Projects discussion until the next Board meeting. Motion failed. Another Motion was made to approve the 2018 Capital Projects Budget, including a 3 percent increase in Capital Reserve Dues effective January 1, 2018. Motion passed.
A presentation was made by Mr. Braun on our IT network infrastructure. He started by saying many hours have been spent by a group of people walking through various buildings, rooms and offices, reviewing wiring, fiber optic, power supply and UPS systems. Mr. Braun informed those who may not know that we are continually having a lot of computer and network failures. Mr. Braun’s presentation included pictures of the layout and location of the equipment showing the many issues and obsolete items which affect the Quivira, Inc. facilities.
Mr. Tim Tierney with HCI was asked to present a proposal to solve the many problems. Mr. Tierney proposed a phased strategy with Phase I to fix our network infrastructure before anything else is done. He emphasized everything else is a secondary until Phase I is done. Mr. Sestak commented we need to make sure sufficient dollars are set aside for infrastructure next year, which includes IT systems. Discussion ensued on what would need to be done to have a dedicated server room in the Quivira, Inc. office. Another issue brought into the discussion is the outdated software and computers being currently used. Mr. Tierney reiterated to first take care of the network system before attempting to make any other changes.
President Sestak asked each committee chair to keep their reports short and focus on action items only. No action items were reported by the Marketing Committee, Finance Committee, Golf Committee, Restrictions Committee, House Committee and Tennis Committee.
Lake and Residential Committee
Mr. Nelson spoke on last month’s approval on a rule change concerning the building and renovation of dock sites. The proposed rule change was posted in The Quiviran last month with no feedback received. Motion was made and unanimously approved for the rule change.
Mr. Nelson stated Leona Young has resigned from the committee and made a motion to approve Bob Thomas to the committee. Motion passed.
Mr. Nelson spoke on last month’s Board discussion on the Saddle Club. The plan entails Quivira, Inc. taking over the maintenance of this area. The Saddle Club would continue to operate as any other club. Any member who boards a horse would be charged a $200 monthly fee, which would be covered under a boarding contract. They would also be responsible for the care and feeding of their horse and stalls. The breakeven point to cover the additional cost of maintenance would be ten horses. Motion was made and unanimously approved for Quivira Inc. to assume responsibility for maintenance of the Saddle Club facility effective January 1, 2018.
Safety and Security Committee
Ms. Walker and Mr. Nelson spoke on guest sticker and access eligibility and suggested a need for a policy change. This matter will be reviewed in greater depth at the next meeting.
Strategic Planning Committee
President Sestak began by stating not one single item discussed this evening, such as new culverts, better roads or better IT systems, will increase our membership. Only through Strategic Projects do we have a chance to increase membership, which is the best way to drive more revenue. He said there are three upcoming Member Meetings scheduled in October to present each of these proposed projects.
Member Comments
Landy Boling commented on the use of the Corporate Reserve and suggested a Special Assessment may be needed to accomplish more of the urgent infrastructure projects.