Arlington Board Minutes
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Arlington Association, Inc.
Board of Directors
Minutes of December 2, 2008 meeting
Mulebarn 6:00 p.m.
Board Members Present: Scott Althauser, Allen Ault, Jim Clark, Jackie Collier, Jim Conneely, Lyle Cook, Carrie Cooper, Ron Durham, John Flanagan, Rich Middleton, Debbie Newsom, Rodney Piercey, Tim Stephens, President Doug Whitlock
Unable to attend: Keith Daniel, April Ramsey Pergrem, Donya Smith
Others present: Joseph Foster, Vice-President Advancement/Foundation Representative; Judy Spain, University Counsel; Jim Marsh, Manager; Patrick Williams; Bob Geiger; Carolyn Lane; Missy Smith; B. C. Mansfield; Janice Ohr; Joedy Ohr; Kevin Crosby; Jim Fisher; Bob Fraas, Kris Arnold
Call to order – Allen Ault, Chairman
Chairman Ault called the meeting to order at 6:00 p.m.
Approval of Minutes – Allen Ault
Ault called for the approval of the October 28, 2008 Arlington Association, Inc. Board Minutes as submitted. Jim Conneely moved we accept. Ron Durham seconded. Accepted unanimously.
Mulebarn Usage by RSO's and others - Ron Durham
Ron Durham reported a committee met to review the usage of the Mulebarn by Registered Student Organizations. The committee recommends that RSO’s be allowed to use the Mulebarn with the following conditions: Andy Frain Security guards be hired (5 for each event), wrist bands provided for those 21 years or older to control alcohol, if leave the brick patio area you are not allowed to reenter the event, a guest list must be provided prior to the event and will be monitored at the event, if a name is not on the list, they are not allowed to attend the event.
In addition, if damages occur RSO’s will be charged for the repairs. For others using the facility, management will ask for a credit card and billing address to cover repairs for any damages.
Chief of EKU police will provide multiple drive bys during an event. The requirement will be for Arlington management to notify EKU police 5-7 days prior to the event in order to schedule.
The question arose as to whether or not this was for all groups. This will apply to the Registered Student Organizations.
Capital Construction Update - Ron Durham
Ron Durham reported the state awarded TW and G group a 28 day down time on the Clubhouse project and that Carol McGill is pleased with the progress of the project. Materials for the project are in the process of being selected and following this mock ups will be presented.
Rich Middleton asked about the routing for the fiber optic network.
Treasurer's Report - Debbie Newsom
Debbie Newsom reported on the audit which was presented to the Board for year ending June 30, 2008.
Newsom reported the cash decreased significantly because of the construction and property and equipment was up because of the construction renovations.
The Arlington Association Statement of Activities for Year Ending June 30, 2008 report was reviewed by Newsom.
The revenue for the Operations and Renovation (Cash Basis) is at $2.5 million total with the expenses for this at $1.2 million in the negative with $990, 000 of this being the renovation leaving a deficit of $225,783.
Discussion followed with the question on the audit versus the operational costs and what is the difference. Newsom reported the audit report takes into account the depreciated value.
More discussion followed on the accounting.
Debbie Newsom moved we approve the audit as presented. John Flanagan seconded. Approved.
Rules Committee - Scott Althauser
Allen Ault asked Joey Foster to speak to the language of By-laws that pertains to the Foundation’s membership. He said the language as presented at the April 28, 2008 Arlington Board meeting for approval was adopted.
Scott Althauser, Chair of the Rules Committee, reviewed the committee’s recommendations for possible changes (see attachment A). These changes will be reviewed again taking into consideration the outcome of the membership committee’s work.
Chairman Ault asked that Judy Spain, University Counsel, review the changes as well for correct language.
No action was taken.
Membership Committee - John Flanagan
In Keith Daniel’s absence, John Flanagan gave the membership committee recommendations for review.
John reported the membership committee made the following recommendations at their November 26 meeting.
Recommendation: Assign an Arlington Employee to be in charge of marketing membership.
- Eliminate future Dining-Only Members
(Grandfather all existing Dining-Only Memberships)
- Current Dining Members should be assessed a monthly food minimum
- Special 2009 Only ($1000 initiation for any new member joining in calendar year 2009)
- Institute 6-Month Trial Membership
- Must have a sponsor member
- Will pay normal monthly dues
- May join permanently anytime during the 6-month period
- Only one trial membership period per applicant
- Institute Junior Membership – Effective 2009 – Any new member 35 year old or younger would pay 50% of regular monthly dues.
John Flanagan moved this be accepted. Lyle Cook seconded.
The floor was open to discussion. The following points/questions were raised.
- Is it legal to have an age discrimination clause for the 35 year old, what does junior memberships do to current members?
- Are we opening up to more membership levels instead of narrowing down?
- House Committee would like to see things done to increase food sales.
- President Whitlock reported that Arlington used to allow junior faculty and first year graduates to join and not be subject to initiation fees.
With these points more discussion followed.
John Flanagan moved that we amend this to be for information only. Lyle Cook seconded.
Business and Finance Committee - Jim Conneely
Jim Conneely reported on the work being done by the Business and Finance Committee. In looking at the numbers for October alone, it was reported that Arlington was operating at a $20,000 loss for October 2008 alone.
As the committee met, they worked on ideas to get Arlington operating within its means keeping food and beverage costs at a minimum. There was discussion about having only two membership levels instead of all the various levels that are now provided.
Conneely reviewed the following report.
| Members |
1017 |
1017 |
1017 |
| |
10% |
15% |
20% |
| |
102 |
153 |
204 |
| Net mem. |
915 |
864 |
814 |
| Dues |
|
|
|
| Plan A |
$8.00 |
$7,322.40 |
$87,868.80 |
| Plan B |
$15.00 |
$12,966.75 |
$155,601.00 |
| Plan C |
$20.00 |
$16,272.00 |
$195,264.00 |
| F & B |
|
|
|
| Plan A |
$30.00 |
$27,459.00 |
$329,508.00 |
| Plan B |
$40.00 |
$34,578.00 |
$414,936.00 |
| Plan C |
$50.00 |
$40,680.00 |
$488,160.00 |
| Net New |
|
|
A |
50% |
$164,754.00 |
B |
50% |
$207,468.00 |
C |
50% |
$244,080.00 |
| Food cost |
|
|
|
A |
35% |
$57,663.90 |
$107,090.10 |
B |
35% |
$72,613.80 |
$134,854.20 |
C |
35% |
$85,428.00 |
$158,652.00 |
| Plan A |
|
| Deficit |
$340,000.00 |
| Due Inc. |
$87,868.80 |
| F&B |
$107,090.10 |
| EKU X |
$100,000.00 |
| Bal. |
$45,041.10 |
| Plan B |
|
| Deficit |
$340,000.00 |
| Due Inc. |
$155,601.00 |
| F&B |
$1134,854.20 |
| EKU X |
$ |
| Bal. |
$49,544.80 |
| Plan C |
|
| Deficit |
$340,000.00 |
| Due Inc. |
$195,264.00 |
| F&B |
$158,652.00 |
| EKU X |
$ |
| Bal. |
$(13,916.00) |
The three scenarios were based on our current membership at 1017, with Plan A increasing dues $8 a month and $30 food minimum and a 10% loss of members, Plan B increased dues $15 a month, $40 food minimum and a 15% loss of membership and Plan C increased dues $20 a month, $50 food minimum and a 20% membership loss. With these scenarios Plan A would have us operating at a loss of $45,041.40, Plan B would have us operating at a loss of $49,544.80 and Plan C would have us with a gain of $13,916.
Discussion followed. One of the comments was that we needed to have a solid membership strategy in place. Discussion took place on what the actual projected loss would be for the year. Jim Marsh will have to project the loss based on the first half of the year. Last year’s loss was approximately a quarter of a million dollars. Marsh will have to be the person who can project what this year’s loss will be.
There was discussion that we needed to, with Arlington’s management, be on sound financial footing.
Bob Geiger proposed a temporary solution of a $5 dues increase to at least have a stop gap measure until a solution is found.
Jim Fisher presented some ideas that are being done by area clubs. Other clubs are losing members but are trying to make up in various ways. As these ideas were reviewed, it was discussed that these are public places where Arlington is a private association with a mission that is somewhat unique.
Conneely reported that the Business and Finance Committee has the goals of operating efficiently keeping with best operating practices, securing added revenue and making sure our value and pricing are equal. We need to balance the purpose and mission of Arlington but run it at a profit instead of a loss.
No actions were taken.
House Committee - Carrie Cooper
Carrie Cooper reported that House Committee will be conducting a forum at the Perkins Building Tuesday, December 9 from 3-5 p.m. and 6:30 to 8:30 p.m. They will be involving 20 families.
Cooper also wanted to thank House Committee members; Facilities Management staff (under the direction of Rich Middleton); and Arlington Staff for their role in decorating the House for the Holidays.
The next meeting is set for January 6, 2009, with the following two meetings set for February 3 and March 3, 2009.
The meeting adjourned at 7:20 p.m.
Respectively submitted by Jackie Collier, Secretary
December 4, 2008
