Presentation on theme: "Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014."— Presentation transcript:
Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014
The TPC’s Current Financial Position The TPC’s 5 Year Plan & Financial Projection The Measures on the Upcoming Ballot Reasons for the Items on the Ballot If We Do and If We Don’t Areas in the Club Not Addressed in Current Ballot (Pool, Fitness, Etc.) Your Questions & Comments
The TPC finances have improved every year since ‘07 – we expect that trend will continue!! Cash Position: $1.7 million Surplus Capital grows $650K/yr – 5% membership turnover (35 new members/yr) Total Available Capital in 5yrs - $5MM ($1.7MM cash today + $650k/yr for 5yrs) 5 yr Plan Spending – 50% of Total Capital $2.5MM (Kitchen/Dining, South Property, Pool Replacement, Fitness Enhancement) Membership Demand – 100+ families on waitlist (50 in-town/50 out-town) and 30+ members are waiting to transition to senior status Debt: Original loan amount $5,620,000 refinanced in ‘08, ‘09 and most recently in ’11. It has gone from an interest only 10Yr loan with a $5+ million balloon payment in 2018 to a fixed, 5.35%, 15Yr, fully amortizing loan at $37,000/mo. The current loan amount $4,020,000, and will be zero in 12yrs under the current monthly member charge. $300,000 in pool replacement fund currently - adding $150,000/yr for 5 more years, if we have that long (pool life?) All Business Units are profitable (Fitness, Swim, Tennis, Youth) F&B operating at a loss (target -$120K budget) – will require dues increase/food minimum Dues currently cover Club Operating Costs (x-café). Expect inflation rate like dues increases over the next 5yrs (x-café)
Initiation Fees Dues Non-Member Surcharges Revenues Expenses Aquatics Fitness Tennis Youth Activity Specific Member Charges Non-Member Activity Charges Activity Fee Activities – Set at Operational Breakeven Monthly Debt Retirement Fees Mortgage Personnel/Operations- Aqua Personnel/Operations - Fit Persn/Ops - Tennis Persn/Ops - Youth TPC Comprehensive Financial Model 20% 80% Administration Facility Operations (to include Café) “ A ” - Operating Cash/Checking Acct I “ C ” - Capital Reserve “ Replacement ” $250,000/yr “ B ” - Emergency Reserve Savings Account Half of Year End Balance II “ D ” - Capital Expense (New) Capital Expenses iii
2013 P&L Pre-Bonus Operating Results by Unit (through December 2013) Needs final numbers!!!!!
“A” Operating Cash Account - $61,569 “B” Emergency Reserve Savings - $559,151 “C” Cap Ex Replacement - $734,645 “D” Cap Ex “New” - $40,158 “E” Cap Ex Swimming Pool - $275,242 TOTAL CAPITAL ON HAND: $1,670,881
Initiation Fee: $18,500 Per Family 46 Families on In Town Waiting List 30 Members on Senior Conversion Wait List TPC Averages 5% (700*5% = 35/year) Annual Membership Turnover $18,500*35 = $647,500 Annual turnover average 2007 – 2012 Membership Additions - 32 Initiation Income - $589,783 2013 Membership Additions – 39 Initiation Income – $658,588
First Republic 2011 Refinance Loan Amount: $4,500,000 Current Interest Rate: 5.35% Current Loan Amount: $4,020,000 Amortization: 12.5 years Monthly Payment: $37,000 (monthly assessment covers 100%) Prepayment Penalty: None * Refinancing explored in 4/2012. BOG determined terms were not in the best interest of TPC because breakeven period pushed out over 3 years.
Need help with this…;)
Projects on The Ballot Will be Completed: 1. Without a special assessment 2. Without additional debt 3. Without extraordinary dues increases 4. On a progressive basis, in accordance with a 5 year plan Taking other areas of the club into consideration, including but not limited to the construction of a new pool (on an as needed basis) and improvements to the fitness center
The Kitchen and Dining Area: Estimated Cost: $882,000 +/- 10%** Estimated 12 weeks to complete project The existing kitchen is: Too small to meet current and future needs Creating questions about building codes Bar and serving area not efficient Insufficient storage space for supplies and food Limits menu options and service speed Not self contained – open to the elements
68% Agree the TPC Kitchen Should be Expanded! 81% Want Good Quality, Healthy Food Available for Lunch, Dinner & Snacks 65% Want the Café Furnishings and Patio Environment Upgraded 45% Agree With a $400 Per Family Food Minimum Confucius Says…TPC Needs F&B Minimum to Operate Expanded, Upgraded Facility (current business model not sustainable)
Café Returned to In-House Management Due to Lack of Satisfaction With Outsourced Mgmt. March Café Changed From Profit Center to Break Even Service for Members Mark Kohtz Hired in March 2013 to Bring Customer Service Focus Back to Café Break Even Nature of Café Requires Food Minimum to Support Inconsistent and Unpredictable Member Usage Continued Financial Losses Not in Best Interest of General Membership or Club’s Fiscal Health Café Operations Severely Reduced Due to Inadequately Designed Kitchen and Lack of Space – Potential for Break Even Unlikely in Current Condition
Do we want to include café financials ?
Proposed: Annual $400 Food and Beverage Minimum per Member Family - Billed Semi-annually - Seniors Will Not be Charged Minimum - Will Allow More Comprehensive Menu - Consistent With Most Similarly Sized Clubs - Allows for More Efficiency With Service - Helps Keep Menu Prices Down - Gives Staff an Operating Base of Revenue - Start Date Determined by Café Building Vote/Completion
South Property Facilities - Estimated Cost: $398,000 - Facilities Include: * Men’s and Women’s Restrooms With Changing Bench * Equipment Storage 300 sq. ft. * Entry Terrace/Patio, Gate, Roof, Card Reader * Entry Control for Lower Courts * Utilities, Overflow Parking, Drainage
Benefits include: - Club Standard Restrooms for Lower Courts – No More “Porta-Potties” - Move Supplies to Building Storage From Sheds - Controlled Entrance To Lower Courts to Prevent Unauthorized Usage - Beautification of South Property to Meet Club Standards – Consistent Look Throughout - Provide Patio for Tournaments and Court Viewing
South Property Tennis Court Lights - Estimated Cost: $140,000 - Lights Include: * Lighting for 6 Courts * Environmental Impact Report - Benefits Include: * Brings Total From 6 to 12 Usable Courts With Lights * Junior Program on Lower Courts Year Round
South Property Tennis Court Additions - Estimated Costs: $267,000 - Facilities Include: * 2 New Hardcourts w/Fencing and Windscreens ($185,000) * 2 New QuickStart Courts w/Fencing and Windscreens ($36,000) * Architect, Engineer, Permit Fees: $47,100
Benefits Include: - Additional Courts to Meet Needs of Clinics and Lessons – Current Demands Exceed Capacity - Additional Courts to Meet Member Playing Needs During Peek Playing Hours, Reduce Wait Time - 2 QuickStart Courts – Beginner Clinics/Lessons Don’t Take Room on Full Size Courts - Attract New Beginning Tennis Players With Popular QuickStart Program
Ballot Sent Electronically to Members January 27, 2014 Quorum: 30% of Members Voting - Needed to Make Valid Vote 50.01% Needed to Pass One Vote Per Regular Member Family (Seniors Non-Voting) Voting Period Open From January 27, 2014 Through ???? Ballots Counted Electronically by ___(who)____ Ballot Results Given to Members ______
The Pool – Not on This Ballot Needs of All Swimmer Members Taken Into Consideration Pool Structural Condition Evaluated Semi-Annually Club Will Continue to Increase Pool Reserves Annually The Fitness Center – Not on this Ballot Currently Reviewing Ideas for Space Expansion and Improvements to Equipment Further South Property Improvement – Not on This Ballot Some Day….