VCA BOARD MEETING MINUTES - Vanderbilt Country Club



VANDERBILT COMMUNITY ASSOCIATION, INC.

VANDERBILT COUNTRY CLUB

BOARD OF DIRECTORS MEETING

A meeting of the Vanderbilt Community Association, Inc. (VCA) Board of Directors convened on Thursday, March 16, 2006 at 5:00pm in the Wedgewood and Waterford Rooms at 8250 Danbury Boulevard, Naples, FL. Notice of Club meetings continue to be posted on the community channel 95 and the website.

Directors: Robert Bush, President (absent); Denis Davidson, Executive Vice President & Treasurer; Charlie Long, Secretary; Joan Cappiello, Vice President; Dan Gritti, Parliamentarian; John Laliberte, General Manager and approximately 25 resident members were present. Niki Dutton, Membership Director/Office Manager, along with, Charles Long, Secretary of the Association, recorded the minutes.

Resident Forum

Establish Quorum

Noting that a full quorum was present, Mr. Davidson called the meeting to order at 5:12pm.

Review/Acceptance of Minutes

The February 16, 2006 Board of Directors Meeting were approved. Mr. Long moved to accept the minutes Mrs. Cappiello seconded the motion. All directors were in favor and the minutes were approved.

General Manager’s Report – John Laliberte

Old Business

1. Collier County Greenway Path: No further update from Trinity Caudill-Scott, Project Manager, Collier County TECM, since our discussion a few weeks ago. A redraft of our proposed agreement into County format, by the transportation department’s attorney Scott Teach, is to be forwarded to the club for our review. The 951/Collier Blvd. Road Widening Project, which includes the Greenway Path Project, was approved recently by the County Commissioners as part of the $776 million/10 year “2015 master road construction plan”. Each component of this master plan will need to be addressed on a project-by-project basis by the commissioners. Included in the new plan is more than $100 million slated to be spent on a controversial eastward extension of Vanderbilt Beach Road out to DeSoto Boulevard.

2. Collier County Code Enforcement: Boylan Environmental Consultants, Inc. has completed the remaining two requirements by Collier County, Environmental Services, relating to the vegetation removal permit (i.e. trimming of saw palmettos in designated preserve areas) for Vanderbilt Country Club. Rae Ann Boylan believes that we have outlined our position well in accordance with code, and that we have been consistent throughout the application process in our rationale. She cautions, however, that approval of our request (i.e. application) remains a subjective call on the part of Environmental Services. The required responses and supporting information were forwarded to and received by Collier County on March 15, 2006. Code Enforcement expects to complete final comments by April 14, 2006.

3. IT Server Replacement: “Completed” on Monday, March 6, 2006. This was a necessary replacement of the Club’s main computer “server”, which had been experiencing frequent hardware failures, causing the Club’s entire operating system to lock up and become inoperable. The Board approved this at last month’s meeting, as an Asset Replacement Reserve Plan (ARRP) Capital item, at a final cost of $4,149.20. I would like to thank Niki Dutton, Membership Director/Office Manager, for her efforts and hours worked in assisting InterLink Computer Consulting, Inc. on this time-sensitive project.

New Business

1. 951-Bridge Column Lights – This is a Hurricane Wilma-related repair. Damaged occurred to two of the twelve lantern lights; one light is completely missing, the other lantern is bracketed. The existing lanterns cannot be matched. A firm quote has been received from BrightLights, Inc., to replace all 12 lanterns with new Hanover Lantern, Inc. high-quality Jamestown-model B9430, six-sided, clear beveled glass panels, four-candelabra socket, #455 pier base, architectural bronze lanterns. Total cost is $4,530.35 (per unit cost of $356.16 includes shipping, plus tax) for the 12-Hanover lanterns. An optional quote was received from Whitman Supply to replace only two lanterns, at a base cost per unit of $430 plus $150 equals $580 plus tax per unit to install beveled glass; therefore, total cost is $1,229.60 for two lanterns. Considering the age of the existing lanterns (8 years) along with the uniformity of twelve identical new lanterns, John’s recommendation is to purchase the 12-Hanover lanterns for $4,530.35. After a discussion, Mr. Long made a motion to replace all twelve lanterns under the asset replacement plan for a total cost of $4,530.35. Mrs. Cappiello seconded. The Board will determine where the expenditure will come from, prior to the replacement or whether this replacement is acceptable for hurricane damage by McGladrey & Pullen.

2. Damaged Fencing Replacement – This is a Hurricane Wilma-related repair. A proposal from Quality Fence, Inc. and Green Way Landscaping, Inc. was discussed. After reviewing four proposals received to repair the fences at three golf course locations (i.e. golf maintenance facility, hole #14, and behind hole #18 tee box), the VCC Management’s recommendation is as follows: (1) award Quality Fence, Inc. the fencing project around the golf maintenance facility, with upgraded six-foot PVC fence facing Danbury Blvd.; (2) award Green Way Landscaping, Inc. to install buffer landscaping in lieu of fencing on hole #14; (3) re-erect existing fence behind hole #18 tee box with materials utilizing in-house VCC maintenance staff. Total projected cost is $38,195 (plus the cost to replace roll-gate fence at GCM entrance with same PVC panels). Dan Gritti made a motion to approve the $38,195 for upgrading the fence and planting plan. Joan Cappiello seconded. The Board was in favor and the motion was approved pending the acceptance to categorize this as hurricane damage by McGladrey and Pullen.

3. Kitchen Rooftop 20-Ton A/C Unit – This is an emergency Capital “ARRP” item. I have asked Jack Hedenstrom, Clubhouse Manager, and Jim Gallagher, Maintenance Supervisor, to comment on the existing condition of the A/C unit and the repair/replacement quotes. Six A/C Companies were contacted to bid, with four responses. Option I (repair) is to replace the evaporator coil; three quotes received: Suncoast @ $4,890; Wiegold @ $8,250; and, Air Conditioning by Commercial @ $9,800. Option II (unit replacement) is to replace the entire 20-ton package unit; three quotes received: Wiegold @ $28,990 (with 12-year warranty) or $24,990 (standard warranty); Air Conditioning by Commercial @ $19,000/$20,000 (standard warranty); and, Dixie Air @ $19,748 (with 10-year warranty) or $15,498 (standard warranty). Staff recommendation is to purchase new 20-Ton Package Unit. After much discussion, the Board indicated to John that he has the option to replace the evaporated coil for $4,890 as an operating expense without the Boards approval or request Board approval to replace the entire unit as an asset replacement repair item. This topic will be tabled so the Board can determine where the remaining monies will come from.

Post action: On Wednesday, March 22nd it was reported that another problem occurred when the condenser coil failed and the cost to replace both coils exceeds $12,000. After discussion it was determined to go ahead and procure a new air conditioner.

4. 2006/2007 Property/Liability Insurance Coverage – The Club’s property & liability insurance overages were renewed effective March 1, 2006. Proposals were solicited from five insurance carriers: CAN, Fireman’s Fund, Safeco, Zurich, and Bollinger, our current carrier in 2005/2006. Bollinger was the only company willing to give us a quote, due to current insurance market risks. The revised Bollinger premium quote for 2006/2007 is $88,593 (i.e. lowered from $90,962 due to updating the equipment schedule), compared to $62,661 for 2005/2006 and Zurich in 2004/2005 @ $79,280. It’s important to note that Vanderbilt Country Club’s premium increase is being driven by property, not liability. Due to the effect of hurricanes on the insurance market the past two years, the result is higher premiums with resulting decreases in cover ages, highlighted as follows: (1) hurricane deductibles increased from 5% to 7%, with the minimum deductible per occurrence increased from $50,000 to $250,000; (2) tree debris cleanup coverage increased from $50,000 to $250,000; (3) No tree replacement coverage, which was $50,000 coverage with no deductible in 2005. Other coverage’s, such as Directors’ and Officers’ Liability (including Employment Practice Liability), General Liability, and umbrella coverage’s, are in line with other clubs. The Finance Committee is in the process of addressing the need for establishing a Special Reserve for Hurricanes/Emergencies.

5. Letter From Kensington Country Club – Kensington CC will be closing its golf course for major course renovation in mid-April through October 31, 2006. The following is a recommendation to accommodate the Kensington CC golf membership at Vanderbilt Country Club, as follows: (1) for the period of April 17-30, 2006, no blocked tee times, rather, allow Kensington golf members to make tee times 3-days in advance at a reduced rate of $28 plus tax; (2) for May 1 through October 31, 2006 during reciprocal season, allow Kensington golf members to make tee times (pro shop to pro shop) 3-days in advance at a special rate of $19 plus tax (i.e. minimal impact of VCC member tee time requests and normal reciprocal is 2-day advance tee time). Normal reciprocal season guest rates would apply for all other Kensington social members and golf guests. Andy Costa and I have discussed this at length, and agree this is a program we would like to offer the Kensington members. After discussion, Mr. Long made a motion to bring this topic to the Golf Committee’s attention for their suggestions. Mr. Gritti seconded. All were in favor and the motion was approved.

Informational Items

• February 2006 Golf Revenue Report

• February 2006 Rounds of Golf Report

• March 1-12, 2006 Golf Revenue Report

• March 1-12, 2006 Rounds of Golf Report

Treasurer’s Report – February Financials, Denis Davidson

Balance Sheets

• Assets: Cash on hand is currently $958,690, which is down from last year, which was $1,171,745. The primary issue is the refurbishment costs that came out of the capital contribution fund. Accounts receivables are on balance. Inventory is $27,152 above prior year’s assets, however $22,000 of this is due to an overage of the golf shop merchandise inventory. All other asset items are in balance. Prepays are down -$25,503 from prior year.

• Liabilities: The Club’s equity position is currently $11,202,294 vs. $11,119,575 prior year.

Notes to P & L February 2006

• Sales Income: Total income for February was ahead of budget. Food and beverage was over budget by 12.3% and substansually over compared to prior year. Golf sales income was off budget by 5%, primarily due to merchandise sales being down 19% in February and 12% in January. Cart fee rounds increased by 4.9%, however tenant guest fee rounds were down which drove down the golf income.

• Cost of Goods for food and beverage was terrific at 30.9% vs. 32.7% last year and 36% to budget.

• Large expense variances: Administration, Tennis, Access & Safety, Activities and Property Management were significantly below budget for the month. An overall, excellent month for controlling expenses. Expenses were down $25,521 to budget and budget was $508,507.

Notes to P & L Year to Date

• Sales Income: Food and beverage was up more than 11% year to date. Merchandise sales continues to see losses to budget more than 16%. Golf sales down in income over 16%, primarily due to guest fee, tenant guest fees and cart fee issues. The mix of these costs shows that even though we had a fair month in golf rounds for member fees, member fees are substantially less and guest fee rounds were substantially more, which were down significantly.

• Cost of Goods: Food and beverage is right on budget even with higher sales. Golf merchandise is under budget by $9,000.

• Large Expense Variances; Payroll, payroll taxes, workers compensation are significantly below budget by $27,000. Golf Course Maintenance is over budget by approximately $10,000.

Department Expenses:

Kudos to each department, for the month we were $24,931 better than budget on all department expenses. Year to date, Food & beverage is the only department to be over budget ($5,253). Total in year to date, all departments were better to budget by $67,724, which reflects an excellent job done by all involved.

Investment Capital Fund – Denis Davidson

Mr. Davidson mentioned how impressed he is with our Budget, Finance and Insurance Committee’s hard work on the following information and made a motion on the following recommendation to the Board of Directors regarding the Investment of Reserve Funds.

Background: The committee was asked by Denis Davidson to review alternatives for the investment of certain reserve funds currently deposited in two Colonial bank accounts. These accounts are beginning to accumulate substantial amounts, and are currently earning in the range of 2-½% per year. This matter was discussed at committee meetings on January 26 and February 23. Based on information presented at those meetings, the committee’s recommendation follows.

Considerations: At present there are two accounts maintained at Colonial, the Operating Fund and the Capital Contribution Fund. The latter fund includes original capital contributions of members, plus subsequent asset replacement contributions. Although these accounts accumulate considerable amounts during the year, it has been VCC’s practice to borrow against the Capital Account in June and December for operating cash flow needs. This is in lieu of accessing our line of credit with the bank. Therefore, liquidity is a major consideration in any investment of these funds. At the February 23rd committee meeting, Pat Zymros provided the following information regarding the current account balances, as well as monthly cash flow requirements against these funds, both for scheduled asset replacement disbursements, and operating fund borrowing needs.

Operating Account - As of February 22, this account had a balance of $820,000. This account will be self-sufficient until June, when it will be necessary to borrow approximately $250,000 from the capital account, to be repaid in July. It will then be self-sufficient until December, when it will be necessary to borrow $450,000.

Capital Account – As of February 22, this account had a balance of $445,000. Pat conservatively estimated that this fund would be increased by new capital contributions of $1,250 each, due to 24 home sales throughout the year, as well as by $60,000 in additional asset replacement contributions in each of the months of April, July, and October. She also provided a list of monthly disbursements showing the 2006 scheduled reserve account expenses, as well as the borrowing noted above. Based on these assumptions, the reserve account balance will range from $414,000 to $468,000 until June, when borrowing will reduce the balance to $212,000. In July it will increase to $517,000 after the borrowing is repaid, and will increase to $566,000 by December, when borrowing will again reduce the balance to $121,000.

Analysis: The committee reviewed investment alternatives that would meet the liquidity needs as outlined above, including CD’s, money market mutual funds, and T-Bills. As of March 8, 6-month Jumbo CD’s are returning approximately 4.9%, and 1-year Jumbo CD’s approximately 5.1%. Various money market mutual funds have a current 7-day yield in the range of 4 - 4.4%. The current 6-month T-bill carries a 4.78% rate. In order to provide the greatest flexibility, particularly until we have more experience in monitoring these accounts, it would seem prudent to invest in one or more money market mutual funds. This will provide ready access to funds, and a return that is approximately 2% higher than is currently being realized with the Colonial bank accounts.

The Vanguard Prime Money Market Fund (VMMXX) seems to be very well suited to our needs. The fund has been in existence since 1975, and as of March 8 has a current 7-day yield, net of expenses of 0.30%, of 4.29%. This is the highest current money market return and the lowest expense ratio, of any major mutual fund family. The minimum deposit is $3,000. The fund can be set up with check-writing privileges (minimum $250 per check), as well as the ability to wire funds directly to a bank account (minimum $1,000). Wire redemptions can be requested either by telephone or online. With these options, money could be readily transferred to other accounts, or checks written directly, in order to satisfy cash flow requirements.

Mr. Davidson made a motion that the Board approves the following recommendation:

• Establish two Vanguard Prime Money Market Funds;

1. One for the Operating Account, and

2. One for the Capital Account.

• The recommended initial investment in the Capital Account of $410,000.

• The initial investment in the Operating Account will be based on the amount in that account if the BOD approves this on March 16. Using current projections, that amount is anticipated to be in the $300,000 range.

• The specific timing for establishing the accounts would be immediately following BOD approval or March 17.

• It is anticipated that the account opening process could be completed in less than 1 business day at which time funds would be wire transferred from Colonial to Vanguard.

Mr. Gritti seconded the motion to move the money into the recommended funds. All were in favor and recommendation was passed.

Hurricane Wilma Damage – Denis Davidson, Budget, Finance and Insurance Committee

Mr. Davidson distributed a year to date Hurricane Wilma Damage costs, which are at $35,300. They anticipate completing the total analysis, which is current expense, current projections for items needing repair (i.e. fences) less any insurance ability. This will be added to the Town Hall meeting, as the Board will be announcing an assessment.

Old Business

Truck Parking – Charles Long

After careful review of the issues at hand, Mr. Long and April Keating presented the following to the VCA, Inc. Board of Directors to accept into policy. They asked that the following clarification become part of the Rules and Regulations of Vanderbilt Community Association, Inc.:

1. A period less than three hours to be permitted for trucks to be parked in driveways for the purpose of cleaning, loading, unloading, or between frequent trips to and from the home. The Security team, no matter what time of day or night, would monitor this. After 3-hour period, trucks will be ticketed and appropriate action taken. What is “appropriate action?” First, a ticket advising vehicle owner to contact Property Management Office within 24-hours of receipt of ticket. When Property Management Office receives a copy of the ticket, if no response, then a phone call will be made or a letter will be sent. If a repeat violation occurs, then a “Hearing Committee” will address the matter with the homeowner and make a recommendation to the VCA Board for disciplinary action. The authority to tow a vehicle as stated in paragraph 8.10.3 should be restricted to only those instances, which involve public safety issues. i.e. parking in front of a fire hydrant, parking in a fire lane, blocks a road, or an abandoned vehicle. Towing an owner’s private vehicle parked in the owner’s driveway is not a safety issue and should be handled under the provisions of Article XII.

2. Overnight visitors with trucks that cannot or do not want to fit inside of the owner’s garage have the ability to park their truck at the far parking spaces of the Clubhouse parking lot. There are 7 spaces closest to the tennis courts in front of where the old sales center used to be located. These 7 spots would be marked with a white – painted parking bumper. We realize that this may be a slight inconvenience for guests, however, it is the best solution given the limited parking areas available in the community. This would also serve as a solution for those truck owners that use their truck to drive to the clubhouse for a dinner event that lasts more than 3 hours. Per the docs, a truck may be parked in a common area for a social event for no more than 3 hours. This would allow the truck owners in the community to be in compliance with the docs and we would not have to have a document change. Visitors with trucks staying for less than an overnight period would be allowed to park in an owner’s driveway on a temporary basis. The owner must, however, notify the Security Team so that they do not ticket the truck.

3. Change the wording on the current security tickets that get issued. The tickets are preprinted and generic for all situations. We feel custom-made tickets are needed to be more specific about violations and to refer violators to the Property Manager within 24-hours of receiving the ticket. This will give the Property Manager the ability to verbally explain the violation and to offer alternate solutions to the problem.

Mr. Long thanked all involved in the truck parking recommendations and made a motion that the clarification becomes part of the Rules and Regulations of Vanderbilt Community Association, Inc. Mr. Gritti seconded, all were in favor and the recommendation was passed.

Mulch vs. Individual Homeowner’s Choice – April Keating, Property Manager; Common Grounds Committee

April Keating reported on behalf of the Common Grounds Committee.  This committee, at the request of the VCA Board, reviewed information regarding several varieties of mulch.  The committee reviewed safety aspects as there was one resident who requested the use of red cypress mulch rather than pine straw for safety reasons.  The committee also reviewed the pros and cons of allowing a variety of mulches in the community.  It was a unanimous decision by the committee that the only approved mulch to be used in the community be pine straw.  The committee also unanimously agreed that owners might not at their own expense install anything other than pine straw. The committee is further researching other options for installation of mulch, as there may be a savings if a different application method is used.  The committee will contact homeowners to remove any unapproved mulch. The committee will report to the board at a later date if such a savings is found to be true.

 

New Business

Back Gate – Access & Safety Committee, Patrick O’Donnell, Chair

Mr. O’Donnell presented several options to repair the back gate. John Laliberte stated the club currently has $5,000 in the capital reserves for gate repair and he has authorized the $2,250 in repairs to begin. The repairs are as follows: straighten frame, replace worn hinge, replace bent pickets, straighten operator crank arm, adjust operator travel limits, and paint new parts.

The Access & Safety Committee also presented some safety concerns throughout the community. Mr. Davidson requested the committee move ahead with the speed reduction plan and asked the committee to discuss the remaining repairs in the fall when the 2007 budget is being completed. Mr. Gritti thanked the Access and Safety Committee for their detailed and hard work on preparing this information for the Board.

Clubhouse Piano – Joan Cappiello

Mrs. Cappiello received a letter from a member, requesting a piano for the club, which she is in favor of. John reported that the department heads don’t believe we have adequate storage for a piano. Mr. Davidson requested that the Food & Beverage and Activities Committees place on the list of 2007 budgeted items.

Rules Letter – Architectural Review Committee, Carol Parks, Chair

Mrs. Parks, on behalf of the Architectural Review Committee, presented a letter for board approval to be mailed to all 800 members of the community. The Committee also suggested that the ARC send the members the ARC Guidelines, with specific to each neighborhood to help familiarize themselves with the rules in the community. Mr. Davidson referred back to the committee for inclusion of no tiling of entryways in Wedgewood to match the Waterford rules. Prior to being approved by the Board, the Board requested that the Club’s attorney review the revised document.

Upcoming Meetings

The next scheduled monthly Board meeting will be held on Thursday, April 20, 2006 at 5:00pm in the Vista Room.

Adjournment

With no further business to come before the Board, Mr. Long moved to adjourn the meeting at 7:03pm. Mr. Gritti seconded all were in favor and the meeting was adjourned.

Respectfully submitted,

_____________________________ _____________________

Charles Long Niki Dutton

Secretary Membership Director/Office Manager

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