Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014.
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Transcript of Tiburon Peninsula Club Pre-ballot Town Hall January 26, 2014.
In This Meeting We Will Address:
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
Financial Highlights & 5 Year Capital Plan Overview -
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 - 2014 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 Year EndOperating Results
2013 P&L Pre-Bonus Operating Resultsby Unit (through December 2013)
Needs final numbers!!!!!
TPC Wages & Commissions as a % of Revenue
Revenue Wages & Commissions
1 2 3 4 5 6 7 $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
(2007) 74% (2008) 53% (2009) 44% (2010) 44% (2011)44% (2012) 44% (2013) 47%
TPC Cash Reserves
“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
Membership Initiation Income
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 – 2013 - 2012 Membership
Additions - 32 Initiation Income - $589,783 2013 Membership
Additions – 39 Initiation Income – $658,588
Current Debt - First Republic Loan
First Republic 2011 Refinance Loan Amount: $4,500,000
Current Interest Rate: 5.35%Current Loan Amount: $4,020,000Amortization: 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.
The Ballot
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 Ballot – Kitchen
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
Café/Kitchen Building Costs
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
Café Survey Says.....
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)
The State of the Café
Café Returned to In-House Management Due to Lack of Satisfaction With Outsourced Mgmt.
March 2013 - 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
The Ballot – Food & Beverage Minimum
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
The Ballot – South Property Facilities
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
The Ballot – South Property Facilities
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
The Ballot – South Property Tennis Court Lights
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
The Ballot – South Property Tennis Court Additions
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
The Ballot – South Property Tennis Court Additions
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
The Ballot – Details & Timeline
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 ______
Down the road….
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….