VANDERBILT COMMUNITY ASSOCIATION, INC.
VANDERBILT COUNTRY CLUB
BOARD OF DIRECTORS MEETING
I. Call To Order: A meeting of the Vanderbilt Community Association, Inc. Board of Directors convened in the Wedgewood and Waterford Rooms at 8250 Danbury Boulevard, Naples, FL, on Thursday, March 20, 2008, at 5:00pm. Notice of this meeting was posted on the Vanderbilt Country Club website and on the community channel.
II. Establish Quorum: Directors: Denis Davidson, President; Kevin Gorham, Executive Vice President; Kent Friedman, Secretary; Larry Smith, Treasurer; Alan Rowold, Vice President; John Laliberte, General Manager; Niki Dutton, Membership Director; and Jonathan Beers, Controller and approximately 15 resident members were present. Noting that a full quorum was present, Mr. Davidson called the meeting to order at 5:00pm.
III. Review/Acceptance of Minutes: The February 21, 2008 Board meeting minutes were distributed prior to the meeting to all board members for their review. As there were no corrections or additions to the meeting minutes, Mr. Rowold made a motion to accept the minutes, Mr. Smith seconded the motion and the minutes were approved unanimously.
IV. Treasurer’s Report for the Month of February 2008: February was another good month for operations. Looking at the Balance Sheet our cash position was below last month and prior year as the timing of payables and payroll differs from year to year. Total inventory was slightly lower than last month driven primary by a reduction in Pro Shop Inventory. Receivables were down compared to last month and, with the exception of the one account that is undergoing foreclosure proceeding, our total percent of past due amounts also improved.
Total revenue was under $740,000 improved $11,000 or 1.6% from budget and $29,000 or 4% better than last year. Our operating margin for the month was 87.7%, up slightly from a budget of 86.9% and last year of 87.1%. This improvement is a result of higher margins in food sales for the month.
Operating expenses were well under budget for February due primarily from lower labor cost, R&M and legal expense. The increase in revenue and improvement in budgeted expenses resulted in net profit for the month of just under $105,000, improved $68,000 from budget, but $28,000 or 20.9% less than a year ago. All department heads should be complimented on the improvement in labor costs this month, especially Chef Mitchell and his staff, who accounted for a majority of savings in labor. Again this month most departments came in better than budget.
This brings our year-to-date net profit to $178,00, improved $93,000 from budget. However, we are now $41,000 or 18.7% below the first two months of last year. This is attributable to the fact that two month revenue is up just 5.5% over last year while two months of expenses is up 10.1%. This is something we will be watching closely as we go forward.
Although this is another great month in net profit, Mr. Smith believes we are seeing some timing differences relative to the way some expenses were budgeted. He reminded everyone that the Annual Audit Meeting with McGladrey and Pullen would be on April 3rd at 3:00pm in the Wedgewood Room.
V. General Manager’s Report – John Laliberte
Old Business
a) Property & Liability Insurance Renewal – Update: As reported last month, the Club’s insurance carrier, Bollinger Insurance, quoted 5.1% lower than prior year’s premium and $5,842. lower than our 2008 budget of $98,500. We have further challenged one component of the quote, that being the arbitrary increase by Bollinger in building value coverage for one VCC common building – the common-roofed Cart Barn/Activities & Fitness Center/Property Management Office/Tennis Office – from $1.3 million to $2.17 million in building value coverage, based on 20,000 square feet, as a result of their most recent inspection. Our challenge was that the actual square footage was much less @ 11,905 square feet. The result is a significant adjustment to Bollinger’s original quoted premium of $92,658. The new annual premium is $88,502., which represents an additional savings of $4,156. to Vanderbilt Country Club. It is essential, however, that the Club secures new building appraisals, as current values are based on appraisals over five years old. We are in the process of obtaining quotes for appraisal updates for all VCC Common Buildings, an action supported by our VCC Finance & Insurance Committee.
b) Phase III Water Restrictions – Monthly Pump Report: John distributed the February 2008 Monthly Pump Report for Vanderbilt CC that was submitted to SFWMD as required on a weekly and monthly basis, as prepared by Stuart Bothe, Golf Course Superintendent. VCC remains in compliance, pumping 785 gallons under the monthly SFWMD allotment of 3,616,800 gallons for the month of February 2008.
New Business
a) New Equipment Lease – Golf Course Maintenance: The Club’s new fleet of John Deere golf course equipment has arrived and is now in service. Our new equipment lease with John Deere is a four-year operating lease (ie. lease term: 03/01/2008 to 03/01/2012) and includes 34 - “state-of-the-art” pieces of equipment. Stuart Bothe did an outstanding job in identifying our equipment needs and assisting in negotiating the lease terms with ShowTurf of South Florida, the John Deere distributor. The monthly lease payment, including property tax and sales/use tax, will result in an annualized savings-to-budget of $4,333.56 for fiscal year 2008.
b) State Unemployment Insurance Tax Rate Refund: Vanderbilt Country Club has been notified by ADP, our payroll services company, that the Club has received a refund deposit in the amount of $5,099.18 on March 13, 2008, as a result of our State Unemployment Compensation Tax Rate being lowered from 1.9900% in 2007 to 1.0400% in 2008. This $5,099.18 credit, which represents a refund for the 1st Quarter 2008 only, will be reflected in next month’s March, 2008 Income Statement. Congratulations to all VCC Department Managers for their efforts towards these results.
c) 2008 – VCC Golf Course “Summer Closing Schedule”: John distributed the 2008 Summer Closing Schedule for our Vanderbilt CC golf course, along with the related golf course maintenance projects associated with this closing schedule.
d) 2008 – McGladrey Trends Seminar Scheduled: The VCA Board is invited to attend, along with our General Manager and our Controller, the McGladrey & Pullen 2008 Presentation of Florida Trends in the Private Club Industry – to be held on Wednesday, April 30, 2008, at Grey Oaks Country Club. Please RSVP directly to John Laliberte.
e) Vanderbilt Country Club Recognized by Habitat for Humanity: Cathi Hughes and John Laliberte represented Vanderbilt Country Club at the Habitat for Humanity Annual Awards Reception “Celebrating Our 30th Anniversary” held on March 11, 2008, at the Naples Beach Hotel & Golf Club. Over 250 sponsors and corporate partners were in attendance. Vanderbilt Country Club was recognized as a Corporate Partnership, having contributed $67,000 through the Community Contribution Tax Credit Program in 2007, towards the building of one new home for a deserving family. This marked the second consecutive year and second house built by Vanderbilt Country Club as a result of our Club’s participation in this worthwhile program. To qualify, Vanderbilt CC must meet the requirement of 200 minimum Volunteer Hours towards the building of each house we are sponsoring, along with an approved Tax Credit Application from the State of Florida for the $67,000 refund per house. Vanderbilt Country Club’s efforts have been impressive: in 2006 – our VCC members volunteered 736 Volunteer Hours toward the building of one Habitat home; in 2007 – our VCC members volunteered 536 Volunteer Hours toward the building of one Habitat home; and, thus far in 2008 – our Vanderbilt members have volunteered 520 Volunteer Hours. For 2008, we hope to be able to qualify for the building of two Habitat homes through the Tax Credit Program. Our sincere thanks to all our Vanderbilt Country Club residents, for their many contributions, in helping to make this a reality for so many Habitat families.
f) Informational Reports
Golf Revenue Report – February, 2008
Rounds of Golf Report – February, 2008
Golf Revenue Report – March 1-15, 2008
Rounds of Golf Report – March 1-15, 2008
VI. Old Business
a) Review of Legal Committee Recommendation from 2007 – Kent Friedman: Mr. Friedman made a recommendation to the Board to consider revising the interpretations on “designees” that were enforced effective November 1, 2002 (the Worthington turnover date). Mr. Friedman moved to change the rules and regulations to acknowledge the estate planning vehicles of trusts, family, limited partnership and other legal entities with the following rule change: “Record owners may be a corporation, trust, sole proprietorship, association or other legal entity and may designate two individuals as the owners designees provided each owner provides Vanderbilt Community Association in writing of such designation in the name of such designee.” Mr. Gorham seconded the motion. After Mr. Davidson’s request to add this topic to the action item list to be reviewed in advance of the April meeting, Mr. Friedman withdrew his motion.
b) Bike Path Resolution – Denis Davidson: Mr. Davidson stated the county has requested the easement be assigned to them in lieu of paying a “fair share” amount determined by the county for the bike path. He proposed the following CORPORATE RESOLUTION be made regarding the Bike Path/Greenway/ Sidewalk Easement…”Upon a motion duly made, seconded, and adopted, the Board of Directors of Vanderbilt Community Association authorizes Denis Davidson, its President, to execute unto Collier County, Florida, a bike path/ sidewalk easement along a portion of the Association's west boundary in exchange for the Association's fair share contribution to the County for the construction of the bike path/ sidewalk. The authority to execute this easement is contained in paragraph 5.4.6 of the Master Declaration of Vanderbilt Country Club. The form and content of such easement to be acceptable to Denis Davidson, President of the Board of Directors of Vanderbilt Country Club, in the exercise of his sole discretion.” Mr. Rowold seconded. All were in favor and the resolution was passed. The Board recognized Chappell Wilson’s involvement.
c) Deadlines with the County: Kent Friedman reported that even though VCC has done an magnificent job of working with the county, nevertheless, the county doesn’t always work well with VCC. He feels it would be in the Communities best interest to utilize our legal council to assist us with dealing with the county, specifically with Caloosa Pines and Mockingbird. Mr. Davidson suggests the Board meet with Chappell Wilson, along with the county and local committee and the legal committee to strategize. Denis Davidson will discuss with Chappell Wilson to consider this meeting.
d) Letters from Members: Mr. Gorham stated the Club has recently received three complimentary letters from members recognizing the recent successful member-member event. Stuart Bothe, Superintendent, Mitchell Excell, Executive Chef, Cathi Hughes, Activities & Events Director were all personally recognized for their excellent performance in their departments as well as the VCA Board and Wedgewood Boards who were commended on their efforts put forth on behalf of the community. The golf committee was also recognized positively.
VII. New Business
a) Neighborhood Watch Presentation by the Collier County Sheriff’s Department, Access & Safety Committee: Vice Chair, Kathy Schneider stated that as per feedback from the member satisfaction survey the Access & Safety committee has begun to review ideas to help make VCC residents feel safer. She introduced Corporal Ray Erickson of the Sheriff’s Department who discussed the benefits of a Neighborhood Watch Program. Corporal Erickson distributed copies of the “Crime Prevention Guides” and offered to give presentations to our homeowners as needed. Mr. Davidson asked the Mrs. Schneider to choose dates to host a training sessions with the A&S Committee and design a sign up sheet including a detailed explanation of the program which can be sent to the homeowners in an upcoming E-Vantage.
IX. Upcoming Meetings & Important Dates
a) April 14th (Monday): VCC Town Hall Meeting (Topic: Open Forum) 5:00pm – Vista Room
b) April 17th (Thursday): VCA Board Meeting 5:00pm
XI. Adjournment:
Mr. Gorham moved to adjourn the meeting at 6:54pm. Mr. Friedman seconded the motion. All were in favor and the meeting was adjourned.
Respectfully submitted,
______
Niki Dutton, Kent Friedman
Membership Director Secretary, VCA Board of Directors
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Draft #2 4/8/2008