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07-12-2006 VC SP B WS-MMINUTES OF THE SPECIAL WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA JULY 12, 2006 Present: David B. Norris, Mayor William Manuel, President Pro Tem Charles R. O'Meilia, Councilman Mark Bates, Village Manager Christine Wilcott, Deputy Village Clerk Absent: Dr. Edward M. Eissey, Vice Mayor Melissa Teal, Village Clerk Mayor Norris called the meeting to order at 8:00 p.m. All members of Council were present except Dr. Eissey. All members of staff were present except the Village Clerk and Village Attorney. Councilman Manuel distributed a report on Membership and Golf Rates. The purpose of the meeting was to discuss the 2006-2007 Country Club budget and proposed golf rates. Mr. Bates compared the revenue plans for this current year's budget to the new proposed revenues and reviewed the historical number of rounds of golf compared to the number proposed in the budget. Mr. Bates stated that the new budgeted rates would generate more revenue than the current year's budget. Mr. Bates advised that the proposed budget projects 55,000 rounds and a maximum of 500 members, all as recommended by the Country Club Advisory Board. The Manager reviewed the details of the golf rates, as proposed, and also reviewed the revenues/expenses sheet and concluded that the anticipated projected revenue would be approximately 3.5 million dollars. Mr. Bates noted that in addition to paying the debt service, the pricing structure allows for additional expenses for the course maintenance, while still generating a $90,000 profit and allowing for $200,000 in contingency funds. MAXIMUM NUMBER OF MEMBERSHIPS During discussion, Council considered the maximum number of memberships at 500 as recommended by the Country Club Advisory Board. Mr. Bates explained that the budget can be adjusted if the number of memberships does not meet projections. Council asked staff to provide a breakdown of what is in the OTHER accounts as listed in the proposed budget. By consensus the Council set the maximum number of memberships at 500, excluding juniors. PRIORITY OF MEMBERSHIP AND MEMBERSHIP PRICING Council considered the priority of membership renewal requests by reviewing the recommendation of the Country Club Advisory Board as (1) existing resident members, (2) existing non-resident members, (3) resident non-members, and (4) non-resident non-members. Mr. Bates explained the process for prioritizing the renewal process, suggesting acut-off date for enrollment and adjusting the rates and/or number of memberships if necessary after that date. Further discussion ensued regarding the consideration of longevity and loyalty of existing members. MINUTES OF SPECIAL WORKSHOP SESSION HELD JULY 12, 2006 Council consensus was to prioritize the membership renewals as follows: (1) existing resident members, (2) existing non-resident members, (3) resident non-members, and (4) non-resident non-members. Council requested that the discounted renewal rates as proposed be clearly noted as a one time offer for FY 2006-2007 only. Mr. Bates clarified that the expenses listed in the budget are figured for a full twelve month period as of October 1, and that revenues are projected beginning with the opening of the golf course in November. Memberships are based on annual fees (not pro-rated), with reciprocity to members available through November 1, 2006 or possibly through mid-November, until the course re-opens. MEMBER BENEFITS/LIMITATIONS In regard to member benefits, Mr. Bates explained the reason for reserving 40% of "tee-times" for walk-in non-members during holidays and in the "high season." Mr. Bates also detailed the discounts for residents and members. Council discussed the rates for walking fees. Mr. Bates explained that members only are allowed the option to walk instead of using a cart. Council consensus was to set the rates for walking fees at $10.00 for 18 holes and $8.00 for 9 holes. ADMINISTRATION/GOLF COURSE MAINTENANCE Mr. Bates discussed the need for a management team capable of maintaining the new golf course and reviewed the proposed organizational chart. After consideration, Council consensus was to retain the Superintendent Golf Course position and add a "Deputy Superintendent Golf Course" position. Council requested that more budget workshop meetings be scheduled in the near future to go over the budget in further detail. Discussion continued regarding temporary reductions in rates as a part of the flexibility within the business plan. Council requested that the Village Attorney be asked to review the Village's Resolution that allows Country Club rates to be temporarily reduced at the recommendation of staff. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 10:00 p.m. ~- .. Christine Wilcott Deputy Village Clerk