News from the Board

La Cumbre Club Benchmarking Updates

Dear Members, Subject: Club Initiatives & Financial Updates I’d like to take a moment to update you on the work being done by the Board, our committees, and our management team to ensure La Cumbre’s long-term success. Committee Engagement & Financial Planning This Wednesday, committee members participated in an All-Committee Orientation led by Adam and his team. This marks the second year of this initiative, designed to strengthen collaboration with our management team and alignment across all committees. It was so good to hear from each department head about the work they do and the goals they have for their area of the club. It was truly an impressive presentation, and we are lucky to have this talented staff. I encourage members to get to know these leaders. Link to staff here . We recognize that many members have concerns about the club’s financial position. The Board, Adam, and I remain laser-focused on providing clarity—starting with our year-end 2024 financials and the development of a long-term capital funding plan. These challenges were not created overnight, and they will not be solved overnight, but we are actively finalizing financials and planning the next steps to position La Cumbre for a strong future. As I noted in my early January communication, a Capital Planning Task Force was formed to evaluate funding strategies. As part of this review, this week, our Asset Reserve Study was updated by Club Benchmarking, and the results are expected to be finalized in the next 8-10 weeks. Key Updates on Club Initiatives Capital Planning Task Force – Formed in mid-January, this group (Kevin Newman, Dan McGuire, and Rick Nightingale) has been developing a proposal that will be reviewed by Adam, our new Director of Finance, and me this week. We anticipate presenting it at the February Board meeting and rolling it out to members in early April. Clubhouse Renovation – Committee chairs and our contractor are finalizing detailed quotes for necessary repairs and improvements, with details expected to be shared with members by the end of March. Financial Leadership – Our new Director of Finance, Homer Allbritton, started on February 18th. His expertise will be instrumental in enhancing La Cumbre’s financial reporting, ensuring clarity for management, the Board, and members. Year-End Financials & Budget – The 2024 financials will be reviewed at the February Board meeting and posted on our website as soon as the audit is complete and our audit committee has approved them. The 2025 operating budget is also undergoing final refinements before Board review. Strategic Pillars & Club Development To ensure La Cumbre’s long-term success, we remain committed to our four strategic pillars: Member Experience – The member satisfaction survey was sent out last week. Once results are compiled, we will analyze feedback and identify areas for improvement. Employee Recruitment and Development – The hiring of Homer Allbritton is a key step toward professionalizing financial reporting, ensuring a clear understanding of the club’s financial strengths and obligations. Financial Responsibility – Our top priority is financial clarity and accountability. Now that Homer is on board, the Board will appoint a Treasurer and begin convening the Finance Committee in March. Governance, Environment & Sustainability – The Governance Committee met this week and began its work on these priorities: Aligning by-laws and policies with best practices and California corporate governance standards. Establishing a GM evaluation framework for consistency and accountability. Launching a Leadership & Nominations Committee to develop a Board skills matrix and engage talented members as future leaders. Member Engagement & Moving Forward Adam and I held a Coffee Talk on February 14th, where we had a productive conversation with about 15 members. Great questions were raised, and we had an open dialogue about club issues. We plan to continue these monthly Coffee Talks as an opportunity for direct member engagement—please join us for the next one on February 28th at 9:00 am! Link to RSVP here . Additionally, neither the Board, Adam, nor I will respond to anonymous communications. We welcome and encourage open, respectful dialogue and constructive feedback from all members—our goal is to work together to solve challenges. Thank you for being part of this journey.  Sincerely, Tracy Jenkins President, La Cumbre Country Club

Why We Need Sound Governance

Dear Members, In an effort to keep everyone informed about the Board’s work and activities, I am pleased to provide the following update. Please take a moment to grab a drink and settle in for this detailed overview of recent progress and plans for the future. Board Orientation and Strategic Focus On January 16, 2025, the Board participated in an all-day orientation. This session included a review of governance best practices, a discussion of the Club’s four strategic pillars, and a comprehensive campus tour with presentations from each department lead. The Board's work will be guided this year by the following four strategic pillars: Member Experience People (Staff and Management) Financial Stewardship (including capital maintenance and improvement) Governance Best Practices This orientation helped Directors have a deeper understanding of the current issues the Club is facing and the investments required to ensure its long-term physical and financial health. Board Policy Manual (BPM) and Governance Seminar To enhance clarity and consistency in governance, we introduced a Board Policy Manual (BPM). Each Director has reviewed it and provided input, and the manual is slated for adoption at our upcoming January 29, 2025 board meeting. The BPM, once adopted, will be available on the website for all members to reference. In addition, Directors were asked to watch a three-hour seminar on Club Governance. The seminar is linked HERE , and I encourage all members to explore it, even in smaller increments, as it provides valuable insights into governance best practices. Formation of the Governance Committee We have created a Governance Committee, led by Roberta Collier, as representative to the Board. This committee will focus on: By-law revisions Board Policies (BPM) Leadership Development (identifying and mentoring future Board members) Establishing a fair, consistent evaluation process for the General Manager Committee Assignments and Structure Committee assignments are being finalized. The Board will review committee charters, member participants, and committee goals at our January 29th meeting. Updates will be shared with members afterward. In 2025, we are implementing a committee structure which reflects governance best practices. Committees will be categorized as follows: Board Committees: Finance, Governance, Membership, Renovation, and Traditions & Standards. Chaired by Board members or designees. Operations Committees: Golf, Greens, Member Experience. Chaired by respective department heads (e.g., Golf Committee/Mark Thirtle and Green Committee/Lauren Lasocha), with Board representatives engaging member input. Finance Committee Update Currently, we do not have a full-time controller or a finance chair. To address this, we have hired a contract accountant to finalize the 2024 books and are in the process of hiring a controller. We are working to appoint a Director to serve the one-year term vacated by Alan Harden to oversee the Finance Committee. We anticipate appointing someone to this role by the end of February, with Finance Committee meetings resuming shortly thereafter. In the meantime, budget preparations are underway, and approved documents will be available on our website. The Finance chair will focus on two critical initiatives: Refining the golf course funding model Analyze reserve study to determine capital dues for mid-year implementation Renovation Committee Update The Board remains steadfast in its commitment to carrying out only the necessary renovations and repairs that can be fully funded by the member Assessment contributions. Once we have a clear understanding of the required fixes and the associated costs, we will present the membership with potential options for enhancements using any remaining funds. Our goal is to ensure transparency and collaboration throughout this process. We anticipate sharing this detailed information with members by the end of Q1 or early Q2. Board Goals and Communication I have asked each Director to provide me the top 3 goals they feel the Board needs to accomplish in 2025. These goals will be prioritized and aligned with the four strategic pillars during the Board’s January 29th meeting. I plan to share the priorities and provide regular updates on progress made throughout my term. I also welcome your input—please email me at tracy_volunteer@lacumbrecc.org with your priorities or suggestions. (Note: The Club website previously listed my email incorrectly, so if you emailed me over the past several months, I may not have received it.) Improved Board Operations To enhance efficiency and professionalism, all directors now have access to a Board portal for essential documents. In addition, Directors will soon receive La Cumbre-specific email addresses (such as mine), creating a streamlined approach to communication between and with the Board. Approved Board minutes will also be available to all members under governance => Board of Directors. Closing Thoughts Thank you for your thoughtful care and engagement with our wonderful Club. I look forward to providing further updates and working together to make 2025 a successful and enjoyable year for all. Warm regards, Tracy Jenkins President, La Cumbre Country Club

Dear Members, Happy New Year! As we begin 2025, I want to share an overview of the plans and goals the Board, Management, and Members will be focusing on throughout the year. It promises to be a dynamic and productive time for our club, and your engagement and support will play a crucial role in our success. Committee Participation: We are thrilled by the overwhelming response to our call for committee participation—over 90 members submitted expressions of interest! Thank you for your enthusiasm and willingness to contribute. While we won’t be able to accommodate everyone on committees this year, we are committed to finding other ways to utilize your talents and ensure your voices are heard. We will be reaching out to all applicants in the next couple of weeks regarding their status. Board Orientation and Strategic Priorities: On January 16th, the Board will conduct a full-day orientation, including an in-depth “behind-the-scenes” tour of our departments and facilities. This will provide valuable context for assessing needs and prioritizing investments. During this session, we will also establish clear and achievable goals for 2025, guided by four strategic pillars: Member Experience People (Staff and Management) Financial Stewardship (including capital maintenance and improvement) Establishing Governance Best Practices These priorities will shape our initiatives, ensuring we deliver on the expectations of our membership while maintaining the long-term sustainability of our club. Overarching each of these initiatives is a focus on communicating clearly and timely information to members and staff. Finance Initiatives and Capital Projects: By the end of Q1, the working groups focused on finance—specifically capital dues and golf course financing—will begin sharing results. This will enable us to initiate capital dues by mid-year and finalize plans for the golf course work, allowing us to engage contractors and secure materials. The Renovation Committee will start small, concentrating on identifying mandatory items (e.g., roof repairs and odor mitigation) and potential enhancements. Once these priorities are clarified, we will hold forums and presentations to gather member input on how best to allocate available funds for clubhouse improvements. Governance and Leadership Development: 2025 will see the establishment of a Board Governance Committee. This committee will review and propose by-law updates to enhance efficiency and align with best practices in club governance; facilitate committee charter development and committee composition; identify and mentor future club leaders, cultivating a diverse and talented slate of candidates for board service; and manage the General Manager/COO review process, ensuring accountability and alignment with our strategic goals. Transparent Communication: As your president, I am committed to fostering open and timely communication. If you have questions or concerns, please don’t hesitate to reach out directly. Addressing issues promptly with facts and data helps us avoid the spread of misinformation. Let’s work together to prioritize transparency and constructive dialogue. Looking Ahead: This year, we will lay the groundwork for 2026, when much of our campus will be under renovation. I encourage each of you to participate actively and constructively as we navigate this exciting chapter in our club’s history. Together, we can achieve our shared vision of excellence and continue building a club we are all proud to be part of. Thank you for your ongoing support and dedication. Here’s to a successful 2025 for our club! Warm regards, Tracy Jenkins  Board President La Cumbre Country Club

Dear Members, Thank you for joining us for the 2024 Annual Meeting, either in person or via Zoom. This meeting certainly had some unexpected outcomes, and I want to communicate a few things that I was not able to cover during my remarks. As we head into 2025, please know that I, along with the entire Board, will continue to seek member input. As I stated in my earlier letter to the community, your input - no matter what membership class you are a part of - is vital to the club’s success. The Board will strive to provide clear and timely information about club activities, projects, and issues. We are committed to prioritizing member experience, which we expect each of you to feel through every interaction on campus. We have a busy year ahead as we take the time to thoughtfully plan the projects which will begin in 2026. It will take a considerable amount of time, effort and patience. We will need your wisdom, knowledge and good ideas – we encourage you to participate through our committees and engagement opportunities such as meetings and surveys. 2026 Planned Project Updates: Clubhouse The Renovation Committee has expanded and invites additional member participation; an expression of interest is forthcoming. The priorities of the Renovation Committee will be to finalize key maintenance items within the current budget and then to gather member input on what additional items can be included within the budget. This committee will be tasked with bringing these options to the membership by the end of Q1 2025. Golf Course Updates The survey results showed strong support for beginning course improvements in 2025/26, funded through a bridge bond. Due to permitting, legal considerations, and preparation time, the work is now scheduled for 2026, concurrent with or shortly after clubhouse renovations. Click here for: Survey Results | Maintenance vs. Improvement Costs | Course Booklet 2025 Annual Dues As mentioned at earlier member meetings, a 10% increase will apply to all membership categories effective January 1, 2025. The Board elected to not initiate capital dues at the start of 2025, but rather allow the Capital Funding Committee to initiate its work towards completing a Capital funding plan for the campus by the end of Q1 2025. The committee will present its findings to members in Q2 2025 and implement the plan by mid-2025. Please be on the lookout for an expression of interest email coming on Monday, December 9 th , which will provide further detail on each committee and the work that committee is tasked to undertake. I look forward to serving you all in 2025. Respectfully, Tracy Jenkins, President Below, please find a brief recap from the Annual Meeting. Board Positions Alan Harden: Resigned, leaving a 1-year vacancy to be filled by the Board* Mike Nicolais: Resigned, leaving a 2-year vacancy now filled by Patrick Nielson. Ryan Fell, Jim McDermott, and Elaine Lausten: Elected for 3-year terms. *The Board is currently seeking the right individual to join the board for a 1-year term. As soon as that appointment is made, we will update the community. Vote on Bylaw Amendments Results : In Favor: 161 votes (57%) Against: 104 votes (43%) The resolution was defeated (required 66.66% approval). 2/3 Refund-ability Update The Board made the decision to grandfather all regular members as of 12/31/2024 to receive 2/3 refund-ability upon the sale of their membership. This policy will be included in the membership policies and procedures. All new regular members will be suitably notified that refundability may be changed from time to time by the Board.

Dear Members, I'd like to welcome you to our refashioned quarterly reporting. The objective of this communication is to keep members up to date with the club's financial affairs, Board updates and, as necessary, provide important updates from your committees. This report will be circulated every quarter and will evolve as necessary. Again, the goal is to provide consistent information on strategic plans, operating results, membership stats, and staffing updates. In this Q3 update, we are providing a summary of the work of your committees YTD. We are a few months away from the Annual Report, which will be circulated in February 2025. As a reminder, we have the following upcoming meetings: December 4 at 5:00 p.m. – Annual Meeting December 17 at 5:00 p.m. – Special Meeting ‍ Completed Meetings: Coffee Talks (three sessions) Town Hall Meeting | October 17 – Board update on club finances, PB&G costs, clubhouse and golf course updates. Special Meeting | October 24 – Concerned Members Club Benchmarking | November 19 - Club Benchmarking guest speaker Dr. Jim Butler. The focus of this meeting is to better understand La Cumbre Country Club's finances, particularly our capital needs and cash sources. Club Benchmarking Presentation : HERE Club Benchmarking Zoom Video : HERE Q&A Coming Soon Given staffing changes over the past several years, members have asked me to share a who's who amongst the staff and what their responsibilities are. I have outlined this in a visual (linked below in Full Update) that aims to help members know who to contact if they have questions or need assistance. I am actively working on a Strategic Plan that outlines objectives and sets a plan that my team and the Board can work from, which will be shared with members. This plan will be ready in the new year, and I look forward to sharing more about it when it's ready. As we move into the holiday season, I want to thank those who have booked with us on short notice and encourage you to celebrate at the club. We are working hard to train our team and to bring back the La Cumbre spirit in our dining events, and Paul, Alex, Tom, Natalie, and Chef Eric are eager to make your celebration memorable. Sincerely, Adam Zubek, CCM General Manager & Chief Operating Officer