SBCA Finance & Long Range Planning Committee    

Minutes – December 19, 2006

The Committee met at 1:00 p.m. in the classroom of the Bay Club on Tuesday, December 19, 2006.  In attendance were Dave Armitage, John Cragoe, Gary Moore, David Reid, Bruce Schmitz, Chris Whitehurst, and Mike Morgan.

• New at today’s meeting are David Reid and Bruce Schmitz.  David is an associate member of the Bay Club and an architect by profession.  Bruce Schmitz has recently moved from North Bay and brings a wealth of experience from his LMC leadership days.

• Chris Whitehurst provided revised data on the Long-Range Maintenance program and related reserves (updated spreadsheets are attached).   The Committee looked at the projected times and amounts for each item and will take the following steps:

• David Reid will review each item for reasonableness – both as to useful life and replacement cost estimates – based on his experience.
• Bruce Schmitz will try to obtain a copy of the Reserve Adequacy Study done for the Beach Club.
• Committee wishes to establish a “probability of need” analysis in order to ensure adequate reserves.

• John Cragoe distributed worksheets showing the estimated membership, “dues paying units”, operating expenses, possible capital contributions from PLA, and expected levels of reserves for maintenance and for renovation needs.  Copies of the worksheets are attached.

• The committee revisited insurance coverage on the Bay Club.  Mike Morgan provided written assurance from the insurance broker that the coverage is “full replacement cost”.  The policy estimates replacement cost at about $105/ square foot – however, this is a “conventional” amount only for estimate purposes.  The Committee noted that the policy includes additional amounts for construction preparation, clean-up, and personal property replace.

• Gary Moore is compiling a list of financial practices for review by the committee at a future meeting.

• At the next meeting, the Committee will review the “wish list” of renovation possibilities, such as the locker rooms, kitchen, acoustical tile, lighting, etc.  The purpose will be to develop cost estimates and to recommend prioritization to the Board.

• The next meeting of the committee will be Tuesday, January 23, 2007 at 1:00 p.m. at the Bay Club.