NEWS FROM THE BOARD
News from the Board
Board of Directors Minutes Welcome and opening remarks by Alan Harden. Alan noted that the approval of a $100,000 deposit for Heritage Links as the General Contractor for the coursework was not necessary at this time. The Board minutes from November 2023 and December 2023 were approved. The 2023 Annual Meeting minutes were received and approved for the members who will approve these at the 2023 Annual Meeting, which can be found here. The Consent Agenda was accepted as circulated. Adam provided updates on Campus Revitalization activities, Operations, People, Housekeeping, and Director coordination. As recommended by the Renovation Committee, a formal motion was passed to approve the Patio Bar and Grill GMP Contract to Frank Schipper Construction for $1,362,691.00 with a $95,000 allowance for additional items. The Budget for this project is $2.244M. Long-Range Planning Committee update by Greg Moss. Greg provided an update on selecting Rule No. 1 as the desired consulting firm to assist the board and club in developing a purpose statement, mission, vision, and values. The budget and scope of work were circulatedand approved. This is a 3-month engagement that will involve work with the LRPC, Board, and various member groups. Membership applications for John and Sue Burk, Delene Bliss, George and Sue Walseth, and Megan and Christian Vanderwall were approved. As a new best practice, supported by the GM/COO, an Executive Session was held without Management. The meeting adjourned at 5:45 PM.
We are pleased to report that as of the end of the third quarter of 2023, the Club is in a sound financial condition.
Nominating Committee Update Mr. Werner provided a short review of the Nominating Committee’s process to recommend a slate of three Directors for 2024. The Nominating Committee will continue to look for ways to bolster more interest in serving on the Board. There was strong interest in this year and the committee had a difficult time making their final decision. Membership Survey Results The use of Club Benchmarking proved to be more successful at creating a member survey than the 2023 internal La Cumbre driven survey. There was a 61% response rate. The club ranked below average in most categories. The results will be shared with all members. GM/COO Update 90-Day Report -Adam shared his thoughts and findings on his first 90 days at La Cumbre. Management Update – Staff to populate a monthly report for the Board by department. Annual Calendar – A calendar was distributed to the Board. Feedback or changes are to be sent to Elizabeth before the end of November. Adam requested for the club be closed on November 13th for a staff appreciation day. The Board supported this and asked to be involved if it would be helpful. Electronic Voting Consent – There will be a by-law change sent out for member approval to allow electronic voting. Christmas Gratuity – Discussion tabled for another time. The current Holiday fund will remain the same for 2023. The Board discussed funding that would be allocated for member engagement on long range planning for the club. This plan will solicit member input on developing a NorthStar for the club. Campus Revitalization Update A sample of the Campus Revitalization Communication Plan was presented. Timelines have changed slightly for the various renovations which will be included in the update and in the Q3 report.
New President in 2024 A resolution was passed to appoint Mr. Alan Harden as the 2024 Board President. Read Mr. Harden’s note here. Consent and Other Discussion: There was an update on the Q.3 financials and impending Bridge Bond opportunity. Adam Zubek, Greg Moss, and Alan Harden have been meeting with all of the club committees to provide an update on the Campus Plans and the Bridge Bond opportunity. The member update is behind schedule, as the third party who is assisting with the communication is behind schedule. Board Policy and Rules Amendments: The board approved an amendment to the rules of the club that aims to better equip staff to uphold the rules of the club. This amendment, along with a more thorough review of the rules of the club will take place in the coming months with the goal of finding the right balance for all members. New Business Directors were requested to send the GM/COO and the Senior Leadership Team all agenda materials in advance of the committee. Management will prepare the proper supporting materials to share with the committees in advance of the meeting. A discussion was held around the conduct of specific members and their behavior at the club. The result of this conversation was that Greg Moss and Adam Zubek would handle any follow up related to this matter. Membership Larry and Wendy Barels were approved by the Board for Equity membership. Michelle Torres and Justing Geller were approved for Social Clubhouse membership. Presentation by Kevin Carroll Kevin Carroll from the McMahon group gave a presentation on trends in the club industry. At the end of the presentation, the Board and Mr. Carroll had a discussion on the steps LCCC can take to update Mission, Vision and Values and how the entire membership can be engaged. The McMahon group specializes in member engagement work and Long-Range Planning.
President’s Report: Greg Moss The September Board Meeting will be switched to Thursday, September 28, 2023 at 4:30 PM A new agenda format will be used going forward Two articles were attached regarding Club Managers managing the club, highlighting that the BOD should function in an advisory capacity, allowing the GM to effectively manage the club. We have 120 days ahead of us to discover best practices on how to achieve a working balance to this end.
Dear La Cumbre Members, There are lots of thoughtful activities happening at La Cumbre Country Club these days. Proactive, positive steps are being taken daily, with many special thanks to our member volunteers and our professional staff. We are truly getting better each day. Financial With support from Alan Harden and the Finance Committee, Jeff Cowan closed our January results with the first net positive month in many months. Net operating profit for January was $9,000. February looks to continue that trend due to newly implemented cost controls and continued demand for new membership for our club. Our total cash on hand is approximately $10.5M, with our project cash balance at $9.9M and our operating cash balance at $0.65M. Every club department leader has been challenged to develop a plan to decrease operating expenses or increase revenues by 5% in their respective areas. The objective is to invest in areas that drive Members' value and minimize needless casual spending. The goal is to realize a total of $520k in savings in the 2023 operating budget. Good progress has been made toward achieving this goal. The 2023 operating budget includes most of the identified savings opportunities. Projects Our Renovation Committee, with the professional support of The Tynan Group, Anacapa Architects, Cabana Homes, and others, is working through the iterative process of defining the details of our projects. Within the next 30 days, we anticipate posting visual renderings of our clubhouse on our website, which will represent the current status of our clubhouse design. In the future, we anticipate our website being the primary vehicle for updates and comments. Pool Bar & Grill Final design is to be submitted to the County Planning Department by 4/28 with an anticipated start date for construction late in 2023. The project will take approximately six months to complete. The kitchen and bar redesign will allow for increased dining demand and social activities during the clubhouse construction and beyond. The success of our outdoor dining has greatly enhanced our member satisfaction and our club's economic position. Tennis Court We continue to work with the various professionals and stakeholders to determine if a Court 7 is feasible. The demand for use at our Tennis facility continues to grow, due to the good work of our professionals and our members desire to play. Assuming all things fall into place, we may be able to refresh all courts and build a Court 7 beginning in Q1 of 2024. Hopefully, we can submit these plans with the PB&G permit. Clubhouse Clubhouse design specifics are being finalized and incorporated into an updated permitting plan. Structural, mechanical, civil, electrical, and plumbing engineers are at work designing the technical functionality of the clubhouse. We will submit our plans as early as possible to the County Planning Department in Q4, but we can't submit until the PB&G permit is processed with County Planning Department Construction. This is expected to begin in Q3 of 2024. Golf Course Golf Course design and planning is underway with Todd Eckenrode. We anticipate the first draft in April. Search On Monday, February 21st, and Tuesday, February 22nd, we met with Kurt Kuebler and Paul Levy of KK&W and Eric Gregory, Club Benchmarking, our recently hired search firm, which is engaged to fulfill our search for our new General Manager. On Monday, Kurt and Paul toured our campus, and met with the leadership of our staff and our Search Committee. On Tuesday, Kurt, Paul, and Eric shared with the Search Committee and Board of Directors their process, best practices, metrics of other outstanding operating clubs, governance, and more. We anticipate it may take until July 1st before the right General Manager is on campus. Thankfully, we are supported by a committed Board, talented members, and a professional staff to carry us through. Membership Membership sales demand continues to pace nicely, with four Equity applications anticipated to be approved by the end of the 1st quarter, and many other members upgrading into the various categories. Demand from the different categories is also solid, with a waitlist in Social Tennis, Associates, and Non-residents. Typically, membership sales go in waves, and this annual variable revenue from these sales follows approximately like this: 1st quarter 20%, 2nd quarter 30%, 3rd quarter 30%, 4th quarter 20%. Food & Beverage We have engaged a Food & Beverage consultant from Kemper Sports Management to review our operation. The consultant will review every aspect of our process, from the procurement of food products to the delivery of finished meals to our plates. Kemper Sports operates over 140 resort/golf operations, bringing these best operating practices to La Cumbre. The early feedback is very promising. Golf As stated in a prior Wayne's World…The year's primary focus will be planning for our various upcoming projects over the next few years and the ongoing maintenance of our property. February has brought quite volatile weather, some beautiful days that we have taken advantage of, and some that primarily benefited the lake. March and April will likely bring more blooms, great color, and wonderful spring golfing days. With the rains and a full lake, it reduces our water bills but brings approximately 60 hours of additional maintenance per week. We have acquired a boat to service the lake and anticipate taking delivery soon. Ladies' and Men's interclub matches, 9 & Dine, Super Bowl match, Niner's golf and more were played during February. March presents many opportunities to play, so please check out the Calendar and get a game! Tennis We continue to focus on enhancing our tennis facility for the enjoyment of our members. In January, we held three focus group meetings with a desire to learn from many of our active tennis facility members. The primary concerns were: 1. Availability of tennis court time during peak hours 2. Availability of quality pickleball courts 3. Deferred maintenance of our courts 4. General deferred maintenance of our facilities. Progress is being made in all these areas. We anticipate sharing more specific thoughts on potential solutions to these concerns shortly. House This year we brought back the House Committee. Annetta Patrick is leading with a strong group of members in support, including Bryan Bahman. The primary short-term focus is on attention to detail. Cleaning the house, removing excess material in storage, and generally cleaning out the "garage" as many additional items have been retained past their useful life. We are open for business, and it is imperative that the property look as nice as possible. As mentioned above, the clubhouse renovation project will physically commence approximately summer of 2024. So, let's enjoy our clubhouse! Social Events Our Social Committee reports through the House Committee and is led by Jill Winchester, with a great group of members. With the support of Josh, Kaity, Inger, and Chef Eric, they are planning a terrific roster of events for us all to enjoy! This past week we celebrated Mardi Gras / President's party. Thank you for putting this great event together and for those who came out and celebrated. Let the good times roll! Greg Moss, President, La Cumbre Country Club
