A Summary of the October 22 Board Meeting

Submitted by Quivira, Inc.
President Sestak opened the meeting and invited attending members to share comments and questions. Dave Tulp stated he had been requested to move his work trailers out of Lake Maintenance storage. He explained he had worked out an agreement with Gary Anderson many years ago to store his trailers there because he cannot have them in his driveway or at his house. He was never charged until a few years ago, and now pays for this storage space. Mr. Tulp asked the board to consider his appeal of moving his business property from this storage area.
Marian Huff brought up that 75 percent of the monthly dues covers the operating budget, yet the recent letter only addressed the capital budgets. She would also like to see more detail on the operating budget before the vote in November. President Sestak responded that over the past several years, the Board has tried to be more transparent and get the budgets out as each gets completed and approved. The capital budgets were approved at the last board meeting which is why the letter outlining the capital budgets was sent. As the letter stated, a similar approach will be used to communicate the operating budget once it is finalized.
Vicky Fullen wanted to clarify the money left over from the construction loan for the practice facility to fund the teaching center. Ed Markley and Geary Goss explained the itemized list for the new practice facility and that it was already budgeted. Ms. Fullen asked what happens if we have leftover money from the loan. President Sestak explained if we don’t use the full amount, the amount of loan to be repaid will be lower.
Dave Blankenship asked about the status of the deposit that was lost with the original teaching center contractor. Mr. Goss explained a claim has been filed with our insurance company, and Johnson County is still working on an investigation. Lake Quivira’s attorney has filed a claim on behalf of Lake Quivira members.
Jeff Walsh stated when driving by the practice facility, he has observed no one there monitoring the gate. President Sestak asked if he drove in and looked around because staff will sometimes be cleaning up and not standing at the gate the entire time. Mr. Walsh said he drove by and saw no coverage of the gate. Mr. Blankenship verified being at the practice range every day and there is an attendant there every time the gate is open.
John Cox complimented the board on the great job they are doing and asked how the operations of the community center will be funded. President Sestak said the operating budget has been worked on since the beginning of this year and continues to be reviewed and refined every month. The budget includes two sources of funding; member dues and usage-based revenue. The only information sent out to members so far has been on the capital equipment and capital project budgets. Anything pertaining to the operations side of the community center or any other part of Quivira, Inc. was not intended to be in the letter. There will be a separate letter explaining the operating budgets once they are finalized.
President’s Report
President Sestak announced the appointment of Tray Vedock to serve as a Chair of the Nominating Committee. Mr. Vedock will identify four Foundation Members to serve on the committee as part of the nominating process for new board members to be elected at next March’s Annual Meeting. President Sestak then reviewed the draft agenda for the November 25th Annual Budget Meeting.
General Manager’s Report
Mr. Goss reported Faith Robertson, the new Service Director, started last week. She has been working on staffing plans and implementing policies, procedures and standards for the wait staff. Mr. Goss stated the gas company is still working at Lake Maintenance. Due to the rain, they are behind schedule, which has caused them to come in and work on Saturdays but should be finished in the next three weeks. Mr. Goss gave a reminder of “Meet the Candidates” tomorrow night in the clubhouse at 6:30pm. The tennis program has increased, as well as pickleball activity. The ten cap teams have been very active and have grown to 13 this past summer. National finals were held in Orlando this past weekend, and a team consisting of several tennis players from Lake Quivira, won 3rd place. Margaret Bowker commended Ms. Robertson and the impact she is already making. Ms. Bowker also noted giving Justin Thomas a list of facilities issues and how they were completed in a very timely manner. Ms. Bowker asked what the hours were for people to submit their ballots and signature forms for the Covenant amendment process. John Nelson replied with 5 to 7 p.m. on Tuesdays and Thursdays, but that we have had challenges with getting a notary on Saturdays as originally planned. Mr. Nelson stated the days and hours may be subject to change.
New / Unfinished Business
2020 Operating Budgets. President Sestak referred the board members to the operating budget for Quivira, Inc. which excludes the community center. He asked Mr. Goss to review the changes to each department. The purpose tonight is not to vote on this budget, but to continue to identify those areas that require further consideration. President Sestak explained that the draft operating budget has been forwarded to the Finance Committee to begin their review. Mr. Goss explained the notes for the most recent version. There were no suggested changes to the budgets, except for the clubhouse and golf shop. President Sestak asked about the different events and banquets in the clubhouse. Discussion ensued on the differences between club events and member and non-member banquets. The clubhouse hours of operation are still being considered for under-utilized times. Room minimums are still in discussion with no food and beverage minimums for club events, only banquets. Erik Vossman asked if there should be an additional fee to provide service at the practice facility. Discussion then ensued on different cart fees under the golf shop budget. Mr. Goss reminded this was still a working document and comments are welcome. President Sestak stated further refinements will made in the next version. As this is the last regular board meeting prior to the Annual Budget Meeting, a special board meeting will likely need to be scheduled in early November to obtain final approval on this budget and distribute it to members.
President Sestak reported the Finance Committee and the Q2 Board have approved the operating budget for the community center. Standard operating expenses were described, as well as the revenue and expenses associated with the usage-based services that had been identified and estimated by each of the Q2 committees. Discussion ensued on pay rates for the hourly employees. Mr. Nelson expressed concern that the rates are too low. Mr. Goss explained the rates were set based on research conducted by Abby Matson, our Human Resources Manager. A motion was made to approve the community center operating budget as presented; motion approved by a vote of 5 to 1.
Annual Meeting Ballots
President Sestak explained the ballots for the Annual Budget Meeting next month. There will be seven ballots, including separate ballots for the community center operating dues and the operating dues for the rest of Quivira, Inc. There will also be ballots for dues increases to capital equipment and the capital reserve fund. Finally, there will be separate ballots for community, country club, and administrative expenditures from the capital reserve fund. President Sestak reminded that the board approves the budgets, but the members approve the dues increases. Mr. Markley asked about the allocation of golf course funding on the country club ballot. Mr. Vossman asked to change this ballot to distinguish funding for cart paths versus other course improvements. A motion was made to approve the proposed ballots pending modification to the golf course funding; unanimously approved.
Special Committee Reports
Covenants Review Committee. Mr. Nelson noted there are 397 property owners eligible to cast votes. As of tonight, there have been only 36 votes cast so far, or 9 percent.
Quivira Community Center, Inc. President Sestak referred to the draft rules and regulations submitted in the board packet. These rules have been developed by the Q2 committees over the past several months. They represent a comprehensive list that covers all areas of the community center. The next step is to begin the review process. Each board member was asked to submit their questions and suggestions by end of month so they can be compiled and forwarded to the Q2 board. The goal is to finalize and approve at the next Q2 board meeting, then submit to the Quivira, Inc. board at the November 26 board meeting for approval to publish for member notice. Pending member feedback, the plan is to finalize the initial rules and regulations for the community center by the end of this year.
Finance Committee
Mr. Goss reported the committee approved the 2020 capital equipment, capital reserve, and community center operating budgets. He then presented the August financials, which continue to be well below plan for the year, primarily due to the performance in the clubhouse. He explained it is not uncommon for a clubhouse to lose money during the summer months, but that changes have been made to improve performance through the end of the year. Total payroll expense is under budget, but operating expenses have been higher than plan primarily in administration, clubhouse and golf shop. The higher expenses in administration can be attributed to higher computer / IT, legal services and professional fees; in the clubhouse can be attributed to higher building repairs and cleaning services; and in the golf shop can be attributed to the unplanned assumption of merchandise costs this year. Mr. Goss then explained the status of the 2018 audit. He recently met with the audit partner who committed to completing the audit within the next two weeks.
Lake & Residential Committee
Mr. Nelson reported the Deer Management Program had qualification testing last Sunday with Chief Grenier and himself as witnesses. There are two approved hunters this year. The 30-day consecutive program will start October 24 and conclude November 24. The Duck Cove project has completed its first days of gas line relocation. VF Anderson is getting ready to cut the street and in about a week, the culvert will be gone. There is hope to have the road back open by mid-November. Mr. Nelson is concerned there are too many residents walking through the active construction site. Additional paperwork has been filed for additional funding for the gas line and WaterOne relocations. Mr. Nelson hopes to hear back by December. Ms. Bowker asked how much the county was covering. Mr. Nelson replied if the additional funding gets approved, the county will be covering over $750,000 of the project.
Safety & Security Committee
Leslie Treas reported the committee has discussed Hillcrest East being very active with kids on Halloween night. This year, the committee would like to close Hillcrest East from the top of Sebring Hill all the way to the end for non-residents of that road. There are alternate routes for drivers who do not live on Hillcrest East. The committee would like to implement an extra policeman being on duty and another policeman on standby. The road will be open to golf carts, but closed to vehicles from 6 to 8 p.m. Mr. Vossman made a recommendation for people not to park on the street because it makes kids less visible. A motion was made to close Hillcrest East on Halloween night from 6 to 8 p.m.; unanimously approved.
Ms. Treas stated John Cox came to the last committee meeting with concerns of “suicide corner” and would like to request a blinking light to attach to the mirror that is already in place. This would help alert other drivers when he backs out of his house since this is such a dangerous corner. This matter was tabled until the proposed light is more thoroughly researched. Ms. Treas reported the committee is working on revisions of the language for the safety and security rules, including guard gate procedures. Ms. Treas noted the Community Safety Manager, Jennifer Alley, has started and is working with guard attendants, patrolling the community and dock site safety.
House Committee
President Sestak reported on the latest version of the Member Complaint Policy which was posted in the last Quiviran for member comments. None had been received. A motion was made to approve the Member Complaint Policy; unanimously approved.
Golf Committee
Mr. Vossman reported Ed Markley is working closely with BPU to determine the best route to run power to the practice facility in the most cost-effective way. Mr. Markley explained the handout of the route and easement BPU had suggested. This matter was tabled for further research.
Community Center Committee
Ms. Bowker reported interior framing is almost complete and drywall is starting; exterior stonework, painting, plumbing and electrical, and stairs and handrails are being installed. Equipment and furnishings orders have been placed. Kitchen cabinets were ordered today. Final AV details are being worked on.
Final Member Comments
Discussions continued on when the community center would open and what would happen if the budget is not approved.
Jay Lucas, member and general contractor, expressed concern about scheduling activities in January in case the building is not ready. President Sestak responded that, should the operating budget not be approved, the building could not be opened, as we would have no method of funding the staffing and operating expenses. The level of potential operating dues has been communicated to membership for more than two years and should not come as a surprise. Ms. Huff replied the numbers have changed. Ms. Fullen asked, if we have added members during that time, why the dues haven’t declined. President Sestak responded that they are lower because there has been member growth, but there have also been a few cost increases. Kim Ansari expressed that the Board is not living up to our core values. Marian Huff added that the Board is not being sensitive to those who did not vote in favor of the community center. Jeff Walsh added that he is tired of paying dues on a facility that is not open. President Sestak responded we could not have been clearer from the onset that there would be additional operating dues associated with this new facility. Ms. Ansari asked if the total amount of dues increases will be over $100. Mr. Nelson responded, if all the proposed dues increases are approved, the total amount to a Foundation Member would be around half that amount, of which most represents the operating dues for the community center. President Sestak stated Lake Quivira’s dues are still several significantly lower than all other area clubs, and none of them have a lake, roads, and common areas to maintain. Ms. Ansari replied we should not forget that this is also a residential community, and some do not want to be forced to move because the dues get too high. President Sestak replied that the Board can only do what the majority wants done and is only authorized to do projects that are approved and funded by the members. Ms. Huff expressed that there is not enough transparency for members that don’t come to the meetings. Ms. Ansari reminded of a previous recommendation she had made that all meetings be recorded so they could be viewed by members who are not able to attend.
The Membership & Marketing and Restrictions Committees reported no action items.