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Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014.

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Presentation on theme: "Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014."— Presentation transcript:

1 Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014

2  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

3  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)

4 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

5 2013 P&L Pre-Bonus Operating Results by Unit (through December 2013) Needs final numbers!!!!!

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7  “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

8  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

9 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.

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11  Need help with this…;)

12  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

13 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

14  Estimated Cost Total: $882,112  Construction Cost (estimate) $413,920  Banis Restaurant Design (Kitchen/Bar Equip) $245,000  Interior Café Furnishings $37,000  Exterior Café Furnishings (Fire Pits/Umbrellas) $106,000  Contingency – 10% $80,192  Architect Fee TBD  Structural Engineering Fee TBD  Filing Fees TBD  County/City Fees TBD  Misc. TBD  Estimated Cost Total: $882,112  Construction Cost (estimate) $413,920  Banis Restaurant Design (Kitchen/Bar Equip) $245,000  Interior Café Furnishings $37,000  Exterior Café Furnishings (Fire Pits/Umbrellas) $106,000  Contingency – 10% $80,192  Architect Fee TBD  Structural Engineering Fee TBD  Filing Fees TBD  County/City Fees TBD  Misc. TBD

15  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)

16  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

17  Do we want to include café financials ?

18 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

19 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

20 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

21 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

22 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

23 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

24  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 ______

25  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….

26  The TPC BOG recommends:


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