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Thursday's Internet Edition, March 18, 2010.
RMCC petitions membership for assessment
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Photo by Sheri Barile
Stan Korich, Rancho Murieta Country Club general manager addresses club members attending a March 6 town hall meeting, held to propose a special assessment to cover budget deficiencies over the next four years. Seated are board members (from left) Tom Lewandowski, Michael Valdez, Denise Standart and Vince Lepera.
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By Sheri Barile
River Valley Times Reporter
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Over the course of six town hall meetings held during the first week of March, Rancho Murieta Country Club Board of Directors appealed to members for their approval of a special assessment to be spread over a four-year period.
Approximately 60 members attended the final meeting at RMCC on March 6, where they saw a presentation outlining the proposed assessment and the financial outlook it addresses.
Attendees also got a look at the ballot that was mailed to Golf, Legacy and Charter members in good standing on March 5. The ballot puts forth two proposals – one addressing operating needs in 2010 and one providing for expenses and improvements in 2011 through 2013. Ballots are due back from the membership on March 20 at noon. A quorum of 40% of eligible votes, or 271, is needed to pass the assessment.
What is being proposed is immediate support for fiscal year 2010 in an assessment amount equivalent to one month’s membership dues. This assessment would be payable in two installments - half in April and half in May.
The proposal also calls for near-term support for the following three years through 2013. It asks for an annual assessment equal to one month’s membership dues payable in 12 monthly installments.
A breakdown of the financial impact of the assessment for each type of club membership can be found on the RMCC website.
Board President Vince Lepera started the presentation by acknowledging the bad economy and it’s impact on the club. He also dispelled rumors about how the board might be responding. Lepera assured members that RMCC is not filing for Chapter 11 bankruptcy protection and does not anticipate that move in the foreseeable future. He also said that neither the South Course, nor the Parasol Room is closing.
Lepera outlined both circumstances and potential consequences that have contributed to the call for action. He cited declining memberships, lost initiation fee revenue and poor outlook for new development as circumstances resulting from hard economic times.
Meanwhile, operational costs have continued to rise, and improvements are still needed.
Specifically, Lepera said that the club must continue the course restoration begun last year. In addition, the club still faces a federal mandate to convert irrigation control frequency systems by 2013. This conversion comes with a $275,000 price tag.
General Manager Stan Korich provided more perspective on lost revenue, stating that revenue from initiation fees alone was $1.5 million during the period from 2004 -2006. “This is the deepest downturn I’ve been through,” he said. “I think we will rebound in both membership size and the value translated into initiation fees that we can command. But right now that’s what we’ve lost, and that is huge.”
Director Tom Lewandowski recapped some of the financial information presented by Korich, pointing out that while the club suffered a net loss of $600,000 in revenue in 2008 and 2009 combined, it showed a savings of $195,000 in operation expenses during the same period. “The California recession has significantly impacted all country clubs,” Lewandowski said. “Rancho Murieta Country Club is weathering the storm better than most.”
Lewandowski also compared RMCC membership dues to those of nine other country clubs in the immediate 50-mile area, pointing out that RM was the second least expensive. “And Rancho Murieta has the only 36-hole course among these so we do have an awful lot of value for our dollars here,” he said.
The value of taking steps now to ensure that RMCC remains solvent while the economy struggles to recover was emphasized by Lepera. “If this country club in fact closed – and I don’t believe that would happen – you would get hit hard with an assessment from CSD (Rancho Murieta Community Services District) because we use all their recycled water,” he said. “There isn’t a facility large enough, and there would be a multi-million dollar assessment in this community. In my mind, that would start a domino effect.”
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