the villages golf & country club board of directors · 1/29/2019 · budget of $211,600 by...

The Villages Golf 8: Country Club Board of Di rectors

January 29, 2019 Monthly Meeting

"Our mission is to provide a safe, attractive community that offers an enriching lifestyle for its residents.

Our Vision is to be the Country Club Community of Choice for Seniors in

Northern California."

The Villages Golf and Country Club Board of Directors

Mission & Vision Statements October 30, 2007

AGENDA

JANUARY MONTHLY MEETING

BOARD OF DIRECTORS The Villages Golf and Country Club

TIME AND PLACE: 1:30 p.m. Tuesday, January 29, 2019 Foothill Center 8776 Village View Drive, San Jose, CA 95135

CALL TO ORDER

ROLL CALL

PRESIDENT'S REPORT

TREASURER'S REPORT Financials/Financial Summary and Reports

GENERAL MANAGER'S REPORT

COMMITTEE REPORTS

CONSENT AGENDA

Approve Minutes - December 11, 2018, Monthly Meeting - January 15, 2019, Study Session

"Our mission is to provide a safe, attractive

community that offers an enriching lifestyle

for its residents.

Our Vision is to be the Country Club

Community of Choice for Seniors in Northern

California. "

The Villages Golf and Country Club Board ofDirecton

Mission & Vision Statements October 30, 2007

Acknowledge Committee Reports/Correspondence/Minutes - Villages Golf Committee:

January 4, 2019, Meeting Minutes - Ad-Hoc Pickleball Committee:

December 10, 2018, Meeting Minutes - Swimming Pools Advisory Committee

January 10, 2019, Meeting Minutes - Fitness Center Advisory Committee:

January 7, 2019, Meeting Minutes - Rules Committee

January 8, 2019, Meeting Minutes - Communications Advisory Committee:

November 8, 2018, Meeting Minutes

The Villages Golf and Country Club - Board of Directors' Meeting AGENDA

January 29, 2019 - Page two

UNFINISHED BUSINESS

1. Facilit ies Projects Committee

2. Goals and Objectives

NEW BUSINESS

3. Quarterly Review of Accounts

4. Approval Consideration of Committee Appointments/Reappointments (AC, Food & Beverage, Rules, Communications, and Ad-Hoc Pickleball)

5. Approval Consideration to Decommission Technology Advisory Committee

ANNOUNCEMENTS

February Study Session: Tuesday, February 12, 2019; 1:30 p.m. at Foothill Center

February Monthly Meeting: Tuesday, February 26, 2019; 1:30 p.m. at Foothill Center

MEMBER'S FORUM Members Forum ;s allotted twenty (20) minutes. Members may address the Board on any matter they wish. Each speaker will be limited to two (2) minutes. The Forum will end after twenty (20) minutes or earlier if the last speaker has been heard.

ADJOURNMENT

OPERATING FINANCIAL COMMENTARY

FOR THE MONTH OF DECEMBER 2018

December Operating Statement Review - Association

Revenue was $600 favorable to the budget of $718,500 for the month due to higher than planned third party assessments, laundry concession fees and golf cart electricity fees.

Expenditures for the month were $40,300 (6.8%) unfavorable to the budget of $595,900. The most significant unfavorable to budget expense category was water with a $34,900 negative budget variance for the month ($124,000 spent vs. budget of $89,100). Other significant unfavorable to budget expense categories were irrigation maintenance coming in $9,400 higher than the budget of $5,400, as well as planting expense at $7,700 more than the budget of $12,900 (due to timing). The most notable expense line favorable to budget was repair and maintenance with a positive budget variance of $9,800 (budget of $25,200). All other expense lines tracked fairly close to budget. The net negative operating budget variance for the month of December was $39,700.

Year-to-date (six months of operations), total revenue is $1,200 favorable to the budget of $4,314,900 due to higher than planned third party assessments and golf cart electricity fees, offset by less than planned laundry concession fees. Year-to-date, total operating expenditures are $4,329,000, coming in 1.1 % less ($50,000) than the budget of $4,379,000. Most of the positive budget variance is in water expense that is $32,400 or 2.6% less than the year-to-date water budget of $1,224,700. Additionally, planting expense is favorable to budget by $32,500 (budget of $131,300) due to timing. The most significant unfavorable year-to-date expenditure category is irrigation maintenance at $35,900 more than the budget of $77,600 spread throughout most of the districts. The year-to-date net positive operating budget variance is $51,200.

December Operating Statement Review - Club

Total revenue was $4,000 favorable to budget, 0.3% more than the budget of$1,158,900. Food sales surpassed the budget of $211,600 by $14,800 with record setting sales in banquets. December was an extremely busy month in the Clubhouse. Other income was also significantly higher than budget (actual $25,800 vs. budget of $11,600) due to donations totaling $18,749 from Evergreen Villages Foundation (EVF) for a new espresso machine and meat carving cart for the Clubhouse. December green fees posted a negative budget variance of $18,500 (budget of $100,000) due to nine days of rain and red flag status (golf carts on paths only) on the golf course.

Total expenditures were $18,300 favorable to budget, 1.6% less than the budget of $1,119,800. The most significant favorable to budget expense category was water with a $37,100 positive budget variance for the month ($1,400 spent vs. budget of $38,500). Other expenditure categories significantly favorable to budget were electricity expense ($19,600 vs. budget of $27,300) and printing expense ($15,400 vs. budget of $19,600) for the 2019 directory and December editions of The Villager newspaper. Notable unfavorable to budget expenditure categories were employee expense ($8,600 higher than the budget of $684,700), Pro Shop cost of sales ($7,600 more than the budget of $13,900) on higher merchandise sales. The net positive operating budget variance for the month of December was $22,300. See table below.

December 2018 Club Operating Results

Actual Budget Variance Revenue $1,162,900 $1,158,900 $4,000 Expenses $1,101,500 $1,119,800 $18,300

Net $61,400 $39,100 $22,300

I

Year-to-date revenue is $42,000 favorable to budget, 0.6% higher than the budget of $6,93 1 ,000. Year-to-date expenditures are $138,000 (2.0%) favorable to the budget of $6,814,000. The year-to-date net positive budget variance is $180,000. See table below for detail by department.

The bottom of the table below shows the financial impact of the monthly solar lease payments and contribution to the balloon payment fund (to be paid in 2023) captured on the Club's balance sheet. The YTD total for these two items is $ 113 ,000.

Department

G &A

Maintenance Admin/Streets

Golf Course/Pro Shop

Community Activities

Community Centers

Publ ic Safety

Pools

Clubhouse/Restaurant

All Other

P&L Totals

Solar Lease - Bal Sheet Net Assessment Variance

FY1 9 C lub Operating Budget Summary

For Six Months Ended December 31 , 201 8

Revenues Expenditures (OOO's)

Actual Budaet Variance

483 497 ( 1 4)

73 7 1 2

1 , 243 1 , 283 (40)

628 627 1

358 356 2

585 585 -

95 95 -

2,282 2, 1 58 124

1 ,226 1 , 259 (33)

6,973 6 ,931 42

6,973 6,931 42

Actual

441

82

1 , 226

600

324

585

99

2, 1 76

1 , 1 43

6,676 1 1 3

6 , 789

{OOO's) Budget

502

75

1 ,278

6 1 8

364

591

94

2, 1 0 1

1 , 1 9 1

6 ,8 1 4 1 1 3

6 ,927

FY 1 9

Net

Variance Variance

61 47

(7) (5)

52 1 2

1 8 1 9

40 42

6 6

(5) (5)

(75) 49

48 1 5

1 38 1 80

1 38 1 80

The above table shows the Clubhouse/Restaurant has a $49,000 net positive variance due to favorable to budget food/beverage sales, partially offset by higher than planned cost of sales and employee expense. G&A has a $47,000 net positive variance due to less than planned employee expense, legal fees and board of directors' expense. The community centers have a $42,000 net positive variance from favorable electricity expense ( due to solar) and intra-co cost transfers. Community Activities has produced a $19,000 net positive variance from less than planned employee expense. All Other has a net positive variance of $ 1 5 ,000 primarily from less than planned supplies/maintenance expenses and total landscape expenses. The Golf Course/Pro Shop has a $12,000 positive budget variance due to favorable water expense, tree trimming expense (timing) and employee expense all offset by unfavorable to budget green fee revenue.

December Operating Statement Review - Homeowners

Revenue tracked budget at $3 ,263 (non-Estates single family homes). Expenditures for the month were $ 1 1 2 favorable to budget due to less than planned legal fees of $1 1 2. The year-to-date net positive operating budget variance is $663 (legal fee expense).

Estates revenue for the month was on budget at $ 1 2,3 1 9. Expenditures were $337 unfavorable to budget, 3 .6% more than the budget of $9,399. The most notable expenditure category unfavorable to budget was planting expense, due to timing. The year-to-date net positive operating budget variance is $1,310 (favorable planting and pest control expense, offset by unfavorable water expense).

:J_,

Department

G&A

Maintenance Admin/Streets


Community Activities

Community Centers

Public Safety

Pools


All Other

P&L Totals Solar Lease - Bal sheet Net Assessment Variance

Department

G&A

Maintenance Admin


Community Activities (includes all Bldg. B functions)

Community Centers

Pools


All Other

The Vil lages Golf and Country Club

FY1 9 Club Operating Budget Summary For Six Months Ended December 31 , 201 8

Revenues (OO0's)

xpenditures (00O's)

Actual BudQet Variance Actual Bud et

483 497 (1 4) 441 502

73 71 2 82 75

1 ,243 1 ,283 (40) 1 ,226 1 ,278

628 627 1 600 61 8

358 356 2 324 364

585 585 - 585 59 1

95 95 - 99 94

2,282 2, 1 58 1 24 2, 1 76 2 , 1 01

1 ,226 1 ,259 (33) 1 , 1 43 1 , 1 91

o ,l:lt ,j o,l:f,j-i '1-L.

- - 1 1 3

6,973 6,931 42 6,789

H1ghl 1ghts Favorable to Budget Unfavorable to Budget

Employee Expense +$38k Advertising & Promotion Legal Fees +$1 1 k Other Income Boards of Directors Exp. +$8k

Employee Expense +$1 8k Repair & Maintenance

Employee Expense +$24k Green Fees Water Expense +$22k Cost of Sales-Merchandise Tree Trimming +$21 k Pro Shop Merch. Sales +$1 5k

Employee Expense +$36k

Electricity Expense +$1 7k

Natural Gas Expense

Food/Bar Sales +$1 00k Employee Expense Other Sales/EVF Donations +$32k Cost of Food/Bar Sales Electricity Expense +$1 4k Repair & Maintenance

Rental I ncome

Planting Expense +$1 0k Billable Services Income Repair & Maintenance +$9k Water Expense

FY 1 9 I $ Per Month Net Per

Variance Variance Member

61 47 1 .55

(7) (5) (0. 1 6)

52 1 2 0.40

1 8 1 9 0.64

40 42 1 .37

6 6 0 . 1 9

(5) (5) (0 . 1 8)

(75) 49 1 .59

48 1 5 0.49

1 80 :>JSl:I

1 38 1 80 5.89

-$Bk

-$7k

-$7k

-$43k -$1 4k

-$7k

-$33k -$30k -$9k -$9k

-$33k -$1 4k

FY19 Cl ub Operati ng Revenue Variances - YTD th rough December 2018

$140,000

$124,000

$ 120,000

s 100,ooo

I YTD total revenue is $42,000 favorable to budget

$80,000

$60,000

$40,000

$20,000

$3,000

so

t Assessments Golf Food & Beverage Activities/Other

-$20,000

-$40,000 -$40,000 / -

-$45,000

-$60,000 Bi l lable Services -$33k of va riance

FV19 Club Operating Expenditure Variances - YTD through December 2018

$80,000

$64,000 YTD total expenditures are $138,000 favorable to budget

$60,000

$46,000 $47,000

$40,000

$20,000 c 1 t:. nnn

$8,000

$0 . ' I I

Payrol l Su aplies/C PS ($1,000)

R&M/Services Landscape Water Util ities Other

-$20,000

-$40,000

($42,000)

-$60,000

FY19 Components of Club Operating Revenues

For Six Months Ended December 31, 2018

Total Revenues = $6,973,000

Food & Beverage

\ 22%

....... -··-•-'··· .. ···········•·· .. ....._�

.,., • .-r

Other 8%

____ _ __ _ \ _ _ -Assessments

57% /

Golf 1 3%

Water 7%

FY19 Components of Club Operating Expenditures

For Six Months Ended December 31, 2018

Utilities 1 1 %

Total Expenditures - P&L = $6,676,000 Solar Expenditures - Balance Sheet = $113,000

Comcast/Solar/Other

Payrol l 50%

I\. Landscape------·

8%

R&M/Services 6% Supplies/COS

9%

$4,500 ,000

$4,000,000

$3,500,000

$3 ,000 ,000

$2,500,000

$2,000,000

$1 ,500,000

$1 ,000,000

$500,000

$0

Cash Balances - 1 3 Month Trend

C l u b Replacement Reserve Fund Capita l Improvement (Fac i l i t ies) F u nd

Street Pavi ng

-club Reserve Fund

�Capital Improvement Fund

Dec ' 1 7 Jan ' 1 8 Feb ' 1 8 Ma r ' 1 8 Apr ' 1 8 May ' 1 8 J u n ' 1 8 J u l ' 1 8 Aug ' 1 8 Sep ' 1 8 Oct ' 1 8 Nov ' 1 8 Dec ' 1 8

Capital Improvement Fund Status - December 31 , 20 1 8

Ba lance at 1 2/31 /1 8

Less : F ixed Commitments and Contracts :

- Picklebal l -Design Services/Sound Study

Unal located Balance at 1 2/31 /1 8

$1 M* Cap Lim itation For Unal located Balance

Maximum Additional Assessment

* January 2007 Inflat ion Adjustment +3 .2%

* Jan uary 2008 Inflation Adjustment +2 . 9%

* January 2009 I nflation Adjustment +4. 1 %

* January 20 1 0 Inflation Adjustment -0 .7%

*January 201 1 Inflation Adjustment +2 . 1 %

* Jan uary 20 1 2 I nflation Adjustment +3.6%

*January 201 3 I nflation Adjustment +2 . 1 %

*January 20 1 4 Inflation Adjustment + 1 .4%

* Jan uary 20 1 5 Inflation Adjustment + 1 . 5%

*January 201 6 I nflation Adjustment -0 .4%

* January 20 1 7 Inflation Adjustment + 1 .0%

*January 20 1 8 Inflation Adjustment +2. 1 %

Maximum Annua l Assessment - Adjusted

Maximum Annual Assessment Per Month - Adjusted

q

$

Total

$

524,71 5

(24,331 )

(24,331 )

500,384

1 ,253,1 89

752,805

762,741

25.06

Report No. 1 9-001 C

REPORT TO THE BOARD OF DIRECTORS

January 29, 201 9

Subject: Consent Agenda

Report in Brief: The following items are presented for Board acceptance and/or approval. The Board may approve all items as one motion, or each item by separate motion. The Board may also remove any item from the Consent Agenda for separate discussion and action under New Business.

1 ) Approve Meeting Minutes (attached):

December 1 1 , 201 8, Monthly Meeting

January 1 5, 201 9, Study Session

2) Acknowledge Committee Reports/Correspondence/Minutes (attached):

Villages Golf Committee January 4, 201 9, Meeting Minutes

Ad-Hoc Pickleball Committee December 1 0, 201 8, Meeting Minutes

Swimming Pools Advisory Committee January 1 0, 201 9, Meeting Minutes

Fitness Center Advisory Committee January 7, 201 9, Meeting Minutes

Rules Committee January 8, 201 9, Meeting Minutes

Communications Advisory Committee November 8, 201 8, Meeting Minutes

Report prepared by:

� � Julieadows Assistant General Manager

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January 29, 201 9

Subject: Facilities Projects Committee

Report in Brief: At the January 1 5 study session, Facilities Projects Committee (FPC) Boq.rd Liaison Mike Falarski reported that the committee is moving in the direction of being project-based as well as focusing on the development and preliminary evaluation of projects.

The Board discussed the FPC Charter, and by consensus, agreed to continue the discussion at a future board meeting.

In addition, the Board briefly discussed possible projects for the committee's review due to the input received at the Stakeholder's Workshop. Shade for the Cribari Plaza area was one of the suggestions.

As a result, President Rick Casey is submitting for the Board 's consideration, that the Board request that the FPC research and report back to the Board on the options, and what each would require, to provide shade for the Cribari Plaza area.

Suggested Motion: Move to approve to request that the Facilities Projects Committee research and report back to the Board on the options, and what each would require, to provide shade for the Cribari Plaza area.

Report prepared by:

1?ift::w,/)u,z£flw-4-) Assistant General Manager

I/



January 29, 201 9

Subject: Goals and Objectives

Report in Brief: In September 201 8, Directors Jim Neill, Bob Wilk, and Mike Falarski were appointed to the Board Sub-Committee to review the format of the Club Board's Three-Year Strategic Plan (Goals and Objectives) .

At the November 1 3 , 201 8, study session, the Board reviewed a draft of the committee's proposed revised format and General Manager Tim Sutherland's executive summary of key board metrics. By consensus the Board agreed to continue to work on reformatting.

The Board reviewed and discussed two proposed draft goals and objectives documents at the January 1 5 study session.

For the Board's review, are those two proposed draft goals and objectives documents as well as a third proposed draft goals and objectives document.

Report prepared by:

�}kia� Assistant General Manager



January 29 , 2019

Subject: Accept Quarterly Review of Accounts Per The Villages Golf and Country Club Bylaws Section 8 .2. 7

Report in Brief: Pursuant to The Villages Golf and Country Club Bylaws Section 8.2.7, Review of Accounts, the Board has a duty to review the Club 's operating, reserve, and capital improvement accounts at least quarterly.

Attached for the Board's review and acceptance is the quarterly review of accounts.

Suggested Motion: Move to accept the quarterly review of accounts as presented.

Report prepared by:

fit&� Assistant General Manager

/3



January 29, 201 9

Subject: Approval Consideration of Committee Appointments and Reappointments (AC, Food & Beverage, Ru les,

· Communications, and Ad-Hoc Pickleball)

Report in Brief: At the January 1 5 , 201 9, study session, the Board discussed appointments and reappointments to the Architectural, Food and Beverage, Rules , Communications , and Ad-Hoc Pickleball Committees and decided to include approval consideration of the following appointments on the January 29 , 201 9 , monthly meeting agenda.

Architectural Committee - reappoint Melinda Dobbs and Penny Barcellos as voting members to terms of two years .

Food and Beverage Committee - appoint Laura Fitzenz, Joyce Harper and Susan Pastorini as voting members and Bill and Bobbie Pomeranz, Barbara Weiler, and Harriet Fernandez as associate members to terms of two years .

Rules Committee - appoint James Campbell as an associate member to a term of two years .

Communications Advisory Committee - appoint associate members Debbie Champion and Alice Tyler as voting members to terms ending December 2020.

Ad-Hoc Pickleball Committee - appoint current associate member Jerry Neece as a voting member.

Suggested Motion: Move to approve the aforementioned appointments.

Report prepared by:

� ) !Utl c&u� eadows

Ass1 tant General Manager

11!



January 29, 201 9

Subject: Approval Consideration to Decommission Technology Advisory Committee (TAC)

Report in Brief: At the January 1 5, 201 9, study session TAC Co-Chair Jerry Neece presented an update on the various projects the TAC has been working on and completed, reporting that the original objectives of the TAC have all been completed. Mr. Neece explained that the Club Board and TAC have decided to move to a project-based focus as it relates to IT, driven by the Club Board and management.

Mr. Neece announced that he is submitting his resignation from the committee and that the TAC is recommending that the Board decommission the committee. Mr. Neece reported that committee members will continue to volunteer as projects come up.

Report prepared by:

� )fV_a_� Juti'eack;ws Assistant General Manager

the villages golf & country club board of directors · 1/29/2019 · budget of $211,600 by...

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