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Arlington Association, Inc.
Board of Directors
Minutes of April 15, 2008 meeting
Mulebarn 6:00 p.m.

Board Members Present: Allen Ault, Don Calitri, Jackie Collier,  Keith Daniel, Ron Durham, Debbie Newsom, Rodney Piercey, Robbie Robertson, Tim Stephens

Board Members Unable to attend: Margaret Baxter, Jim Conneely, Rich Middleton Cindy Reed, Judy Ridings, Mark Sandy, Sharon Shasby, Donya Smith, President Doug Whitlock

Others present: Cheryl Harris, University Counsel; Joe Foster, Interim VP for Advancement and Foundation Board representative; Jim Marsh, Manager; Bob Geiger

Call to order –Don Calitri, Chair
The meeting was called to order at 6:05 p.m. Calitri called for approval of the January 22, 2008 Arlington Board minutes as submitted. Allen Ault so moved, Rodney Piercey seconded. Approved.

Managers Report –Jim Marsh, Arlington Manager
Marsh reviewed the January, February, March (third quarter) reports as submitted.  To date we are up $13,000 or 10.7% over last year at the end of the third quarter.  Marsh reported the increase is in the food sales and he attributes this mainly to the special promotions being offered in the dining room.  Promotions include first Tuesday of the month Pasta night, second Tuesday is two dining for $29.99, Wednesday night is Prime Rib Night, Wine Tasting on Wednesday, Thursday is buy one get one half price night, Friday Frenzy Lunch, Saturday Night is steak night, Seafood Extravaganza is one night a month.  Family nights were on Friday nights but not during ‘wedding season.’

There was discussion about how this increase will project out through the final quarter of the month.  Marsh reported he thought it would be favorable.

Treasurer's Report – Debbie Newsom, Arlington Treasurer
Ms. Newsom presented the Treasurer's report beginning with an update on the 2006-07 annual audit. She reported that, due to various delays related to the receivables reconciliation, she requested in the fall that the external auditors halt work until the matter was resolved and the audit could be completed.  It was not until March that the resolution/corrections were made and the auditors, due to their schedule, could resume the audit.  Ms. Newsom briefly touched based on the draft audit report, noting, other than the inclusion of data related to membership assessment on the balance sheet and the income statement as well as the overall reduction in membership revenue due to the exodus of a significant number of members in January 2007, the financial picture was much the same as the Board had seen in the past few years.  Ms. Newsom elaborated on this matter more in discussing the overall cash operating position of Arlington, which continues to be tenuous.

She went on to give a brief report regarding the financial aspects of the construction project.  Ms. Newsom reminded the Board that the intent had been to first use funds from the Arlington reserves, then to cash out a Certificate of Deposit held by Arlington totaling more than $100,000 to fund the first phases on the project.  She indicated it was anticipated those funds would be fully expended over the next few months, thus it was time to move forward regarding borrowing the remainder.  She and Mr. Foster, on behalf of the EKU Foundation, have been in the process of coordinating financing through 5th/3rd Bank and such is moving along well.  Indications are the rate will be less than originally anticipated when the assessment levels were set, including the interest add on for those members choosing to finance such over ten years.  She estimates, based on current assessment information, that the annual assessment collections will be sufficient, with perhaps a few hundred thousand dollars to spare, relative to paying to the Foundation and amount equal to or in excess of the debt service requirements.

There were several questions associated with the specifics of the affect of the membership decrease and where things stood in terms of new members.

Secretary's Report – Jackie Collier, Arlington Secretary
Collier asked everyone to review the reports as submitted.  Membership has held at 990 for the past two months.  Membership Committee is currently contacting those members who have dropped their membership in the last few years.  There has been some success with this group.  We have approximately 11 households who have reported that they are strongly considering or planning to rejoin.

Other Reports:

Membership – Bob Geiger
Geiger reported the Membership committee has been meeting.  One of the things the Committee would like to propose is new guidelines for membership.  The proposed guidelines are as follows:

Proposed changes to Arlington Membership Initiation Criterion  

1. Eliminate the $6,500 donation to EKU Foundation as criteria for joining Arlington for someone who is not affiliated with EKU.
2. Establish an initiation fee of $2,000 for someone who resides in Madison County and is not affiliated with or an alumnus of a Kentucky College or University.  For definition, "A Kentucky College or University" should also include private schools.  The $2,000 initiation fee could be paid at the time they join or over 3 years.  (This category would have a maximum allowable limit of new members fixed at 200, so as to not have too many members whom are not affiliated with EKU.)
 
3. For someone who is either EKU Faculty, Staff, Alumni or retired EKU, their initiation fee would remain the same at $1,000 over 3 years, unless however they should to choose to pay it entirely at the time they join.
 
4. Establish a $1,500 initiation fee for persons who are alumni of a Kentucky College or University.  They would pay $1,500 over 3 years, unless however if they pay the entire amount at the time they join.  (This category would have a maximum allowable limit of new members fixed at 200, so as to not have too many members whom are not affiliated with EKU.) 
5. Establish a $300 initiation fee for people who want to join Arlington as "Dining Only members", they can do so by paying $300 and doing that at $100.00 per year over 3 years or paying it one time when they join.
   
   The initiation fees collected under this membership program would become part of the "Arlington Capital Improvements Reserve”.
6. Another method of joining Arlington would be the process of making a charitable donation to the Eastern Kentucky University Circle of Opportunity Program.  Anyone making a donation of $1,000 or more would make them eligible to join Arlington for one year.  If they continue to make the $1,000 donation each year then they could remain a member.  Someone making a donation of $10,000 or more to the EKU Foundation would allow for a permanent membership in Arlington. 
   
   All members would be required to pay their respective assessment and dues for each membership category.

Discussion followed on particulars of the proposal.  The board asked that alumni be defined.  There was discussion on whether or not to broaden proposal two to beyond Madison County.   The board decided to keep only Madison County for now knowing that we might want to broaden if we don't get 200 members.  There was also discussion on proposal six and what the benefits were for Arlington.  It was discussed that we would receive dues and pro-rated assessment for each year.  (Assessment would have to be paid yearly in this case.)

Allen Ault moved we accept the proposal as amended.  Seconded by Jim Durham.  Passed.

The proposal will require a constitution/by-laws change.  This will be posted by April 18.  Following the 10 day posted period, the board will meet in a special called meeting to vote on this.

Golf Committee – Tim Stephens
Stephens reported the Golf Committee met on March 25. Jim Cox gave an update, Pat Stephens reviewed the calendar and Ron Durham and Jim Marsh updated the committee on the Clubhouse.

Dave Mackey, EZ-GO Golf Cart Company, met with the committee to present proposal for new golf carts.  We are in the fourth year of a five-year lease agreement.  When the current golf cart shed is torn down for the building of the new Clubhouse, we will have to go from Electric Carts to gas for the remainder of our lease and until the new Clubhouse is completed.  The Committee reviewed several styles of carts.  They chose one that they thought would be good for Arlington.  Jim Marsh reviewed the cost on the recommended choice.  Currently the lease is $92 per cart per month totaling $4600 per month (lease is a six month a year, five year lease) the new carts are $143.50 a month.  With the number of rentals at Arlington over a five-year period, if there is a $2 increase in rental fee for carts, the cost is equal. 

There was discussion on the new carts and the increased safety that they provide.  This will be beneficial with insurance. 

Cheryl Harris asked if this was an amendment on the current contract or a new one.  There was discussion on this and Marsh will look into it and get to Harris.

Allen Ault moved we approve this concept as presented pending Harris' approval of contract.  Keith Daniel seconded.  Passed. 

Last payment on current lease is August 2008.  Our new lease on carts will not begin until we are in the new Clubhouse.

Tennis Committee – Rodney Piercey
Piercey reported the Tennis Committee has met two times since our Board meeting.  Restrooms appear to be the critical issue.  Four years ago when this was reviewed the cost was $100,000 to construct/install.  There was discussion about how to best meet the needs for restrooms.  Marsh will look into the idea of aesthetically pleasing port-a-potties to use during summer season.  There was also discussion about removing the water fountain since it shouldn't be used.  Marsh will look into that as well.

Old Business
Calitri reported that the projects are moving along as scheduled.  Marsh reported that general contract bid opening date on Clubhouse has been delayed but will be either June 1 or July 1 with 30 days to execute.  As soon as budget is approved, cart shed will be torn down (saving brick to reuse). 

Ron Durham asked for a ballpark figure from Debbie Newsom to let us know what is remaining of the $1.9 million we've utilized during renovations.  She thinks this is doable by June 30, 2008.

Marsh reported the Tennis Courts would be repaired and resurfaced, possibly beginning April 16.  The Tennis Courts will be out of use for two weeks while this is being completed.

Marsh reported the pool renovations are on track.  The targeted date to fill the pool is May 1.  The refurbishing of the pool chairs is complete.  The locker rooms will be done when the pool is opened. 

Bob Geiger thanked Joe Foster and Jim Marsh for the Arlington Brochure that was distributed at the meeting.  Foster reported the website had also been updated.  Piercey reminded us to use these brochures as we promote membership.

Our next meeting is scheduled for Monday, April 28 at 6 p.m. to review proposed membership changes.  The July meeting is scheduled for July 15.  This is the annual Arlington Board meeting.

Rodney Piercey moved we adjourn.  Seconded by Allen Ault.  Adjourned at 7:45 p.m.

Respectively April 16, 2008
Jackie Collier, Board Secretary