At midnight on December 31^st you, the Members, took over control and management of your Club, Gulf Harbour Golf & Country Club… Congratulations and Happy New Year!

The first order of business is the collection of our 2009 dues. 

While you have until the end of January before your payment becomes delinquent,

we need these dues in order to operate the Club.  Please pay your dues as soon a possible to: Gulf Harbour Golf & Country Club.  Send or hand deliver your payment

to the Club House Office at 14500 Vista River Dr., Fort Myers, FL 33908. 

If you have any questions, please call the Club Office at 239-433-5111.

Club Operations: The new Board of Governors promptly met most of the day on both January 1^st and 2^nd to deal with the operational and legal issues relevant to running the Club. The Board promptly ratified the 2009 budget, the hiring of our General Manager, Rick Newman, and the rest of the management staff and employees.  Several other contracts, banking arrangements, insurance, human resource outsourcing, service agreements, and leases necessary to run to the Club were also ratified during these meetings.

On January 2^nd and 3^rd all of the computer systems were cutover from WCI to our new network servers and software.  Due to the last minute negotiations we missed several of the vendor deadlines necessary for a completely seamless turnover.  Consequently, we will be using WCI’s data lines until January 9^th, and we will cutover the phone systems on January 15^th.  As expected there have been a few computer glitches, but the staff has been very patient working with our consultant and vendors to kept things going.

One of the casualties of WCI’s last minute negotiating brinksmanship was our inability to apply for our liquor license in time for the January 1^st turnover.  Lee County has a 60 day waiting period for these licenses, but our temporary Comptroller; Jerilyn Schnitzel, worked a miracle by getting the liquor license by January 7^th instead of waiting two months.  We apologize for the unavoidable inconvenience of not being able to serve liquor for six days.

New Comptroller: On Monday, January 5^th our new Club Comptroller, Alan Schwartzman, will begin working for us.  Alan’s office will be downstairs in the Club house near the exit closest to the Marina building. Alan is a native Floridian, born and raised in North Miami Beach.  Alan graduated in 1977 from the University of Florida with a Bachelor of Science degree in Business Administration. In 1978 Alan was transferred to Minnesota where he met his wife Lois and raised three children, Ian, Lindsey and Miriah.  Alan worked in Minnesota for 13 years at the Golden Valley Golf and Country Club.  In 2005, Like most of us who move south, Alan and is wife decided they had had enough of the cold and snow of Minnesota, and along with his youngest daughter they moved to Fort Myers.  Alan comes to us now after working the past three years at the Hideaway Beach Club on Marco Island.  On a part-time basis for several months, Alan has already been working behind the scenes to get our new accounting systems in place, and he is really looking forward to being instrumental in the Club financial success, as well as helping the Board make this ownership transition as smooth a possible.  Please stop in and introduce yourself to Alan when you have a moment. 

Formal Adoption of 2009 Budget - The 2009 budget provides for revenue of $7.5 million and operating expenditures of $6.6 million , resulting in a net operating margin of $.9 million. After deducting depreciation of $.9  million on club facilities, we will be at a breakeven for the year.  

Revenue is budgeted to be $.5 million higher than 2008 and expenditures are budgeted to be $.8 million higher. The increase in expenditures reflect the one time expenses incurred for the turnover, higher administrative costs for a stand alone club operation and investments in improved maintenance levels and services provided by the club, Overall, our Club is financially solid, with a strong revenue stream and no increase in the level of dues. However, we presently have no cash reserves and have forecast the need to fund almost $2.3 million in capital projects over the next three years. Our present plan is to use our annual cash flow of approximately $.9 million to self fund these capital projects, most of which are the result of deferred maintenance from prior years. In order to protect against unanticipated contingencies, particularly late in the year, we have secured a line of credit in the amount of $2.0 million to be used should the need arise. The increase in expenditures reflect the one time expenses incurred for the turnover, higher administrative costs for a stand alone club operation and investments in improved maintenance levels and services provided by the club

There is still several months of transition work to be accomplished, as many of the new services could not even be ordered until this month.  Our new web site development project will take a few months for the design and development.  But we are confident the improvements will be worth the wait.

In our effort to begin changing the focus of the Club operations from profiting WCI, to improving services for the Members, there are several developments you should be aware of. One of our turnover objectives was to upgrade the Club’s technology to provide better communications, better billing and invoicing capabilities, and state of the art club services.  To this end, you can expect to see several new features and procedures in the coming months.  I

Communications:  We will soon be transitioning all of our communications to our new web domain on www.gulfharbour.com  You will use your own user name and password to gain access to your secure Member charge account. From there, you can make credit card payments, sign-up for tee times, tennis courts, and use links to the Monday Friday group, and golf handicap information.  Each new advisory committees will have a representative responsible for uploading information, pictures, and articles to our new web site (it’s very easy now). We will also be experimenting with on-line restaurant reservations and Member Survey’s to receive feedback from all of you.  Because of the transient nature of our Members, coupled with today’s prohibitive costs for postage, paper, and labor for mailings, we intend to use the new web site for all Club news, announcements, information, event calendars, and flyers.  When everything is ready to go, the Club will conduct special classes for members to learn how to use these on-line features.  For now, please make sure you update your email address with the Club Office at your earliest convenience, by emailing your email address to: hallen@gulfharbour.com, or calling 433-5111.

New Staff Email Addresses:  With WCI out of the picture, all of our staff members will have new email addresses.

On-line Billing Statements:  Once we have everything up and running you will soon have the ability to view your Club statements on-line.  We encourage all Members to signup for Automatic Bill payment (check with the office for details).  The on-line statements will save thousands of dollars by eliminating postage, paper, and labor associated with paper invoices.

Wi-Fi:  As part of our new network and computer systems we will be adding Wi-Fi capability in Johnny Brown’s, the Member’s Dining Room, the conference room, the terraces, and the swimming pool deck.  You’ll soon be sunning and surfing next to the pool.  We also noted that with the new Foretees tee time reservation system, our first tee Starter needs to be able to view the golf tee sheet changes, and confirm who has checked in.  Our new Wi-Fi system will enable the Starter to view the tee sheet on his net book computer.

Golf Program Improvements:  Your Board of Governors believes that the golf experience at Gulf Harbour can be the best in South West Florida. Accordingly, the BOG made two decisions at their first meeting that will move us in that direction. The first was to enter into an agreement with ForeTees to use their internet based tee time reservation system especially designed for private country clubs. This system allows tee times to be made at any time from any computer with internet service. The system was introduced to the membership by the Golf Shop in mid December and has been well received. This will significantly improve the convenience to members for making tee time reservations. You can even sign up for events on line at any time and get a confirming e-mail!!! The second was to approve a lease for new mowers for the greens, fairways and rough. Most of the existing mowing equipment owned by the club should have been replaced several years ago. In addition, the mowers being used for the greens were not designed to produce the consistency and quality that other clubs in our area enjoy. So, Martin Wierengo, the Golf Course Superintendent, should shortly have the equipment he needs to provide the playing surfaces at Gulf Harbour that are equal or better than that available at the best clubs in the area. These two decisions, coupled with changes Mark Doss announced he is making in the Golf Shop to increase the level of professional experience of the staff, is a great start to the journey of becoming the best in the area.

Club Sanctioned Charity:  The Board voted to continue the Club’s sanctioning for The Gulf Harbour Memorial Foundation.  The Foundation will be the only charity sanctioned to make solicitations from Club members and the only charity allowed to market their events on Club property.  As part of our support for the Memorial Foundation, the Club will provide golf carts for their tournament, and food and beverage services will be provided for the Foundation’s events at the Club’s cost.  There will be no other financial contribution by the Club.

Sanctioning of the Foundation does not mean that individual members are prohibited from holding their own charity events at the Club.  It only means that other charities may not solicit contributions from Members on behalf of the Club, and they may not market their event, display flyers, or setup displays or collections on Club property. 

The Board will require that the Foundation provide an informational packet for distribution to interested Members, from the Club’s office, that will outline the Memorial Foundation’s criteria and application process for sponsorship by the Foundation.  A cover that explains the Board’s position regarding charities will accompany this packet.  Here is a copy of the cover letter.

In the fall of 1999, several of the Club's Members asked to have a special golf event that had two goals: I) to memorialize any Member who had passed-on during the last year, and 2) to raise money for local and national charities. Over the years, this "golf event" has grown tremendously and now includes tennis, marina and social activities. In 2004, it obtained Federal Tax Exempt Status as a "Foundation" which enabled it to gift to any charity that also had an official tax exempt status. Since its inception, it has raised and contributed over $700,000 to more than twenty local and national charities. In short, it is something of which all of us at Gulf Harbour can be very proud.

In the fall of 1999, several of the Club's Members asked to have a special golf event that had two goals: I) to memorialize any Member who had passed-on during the last year, and 2) to raise money for local and national charities. Over the years, this "golf event" has grown tremendously and now includes tennis, marina and social activities. In 2004, it obtained Federal Tax Exempt Status as a "Foundation" which allowed it to gift to any charity that also had an official tax exempt status. Since its inception, it has raised and contributed over $700,000 to more than twenty local and national charities. In short, it is something of which all of us at Gulf Harbour can be very proud.

A few years ago, the Club's Advisory Committee voted unanimously in favor of asking the Board of Governors to establish the Members' Memorial Foundation, Inc. as the "official" charity for Gulf Harbour Country Club. This action would restrict the use of the Club facilities such as bulletin boards and the Club directory for solicitation purposes. (However, it did not prevent an individual Member from having a "Charity Event" - it just prevented the Member from soliciting the Membership.) The Board voted to institute such a policy.

The rationale for this policy was to make sure that the Club's Membership was not being asked to contribute to so many charities that it would dilute the effectiveness of the Members' Memorial not to mention the negatives resulting from "going to the well" too often.

There is no question that our Members are generous and caring. This is clearly demonstrated by the fact that we have had to remind Members and Staff this summer of the limitation on soliciting for charities

The amount of work and effort that goes into the Members' Memorial is staggering. Suggestions by Members wishing to have their charities recognized and gifted are always considered by the volunteers who make these decisions. In fact, we would like to take this opportunity to ask those Members who work to support their own personal charity to consider getting involved with the Members' Memorial. They can always use more help. Call Donna Cicale or Frank Phillips if you wish to lend a hand.

We hope this reminder will provide you with the understanding of why we try to place some limitation on charitable solicitation at Gulf Harbour. If you have any questions, don't hesitate to ask

NEW MEMBERSHIP SALES AND RESIGN LIST POLICIES

• There are no longer any new Golf or Sports memberships available for sale
• Members on the Resign List, who do not really intend to resign, have been granted a grace period until February 28, 2009 to remove themselves from the Resign list.
• The Membership Director is creating two Swap Lists in order to facilitate an orderly exchange of membership upgrades and downgrades.
• Pre-Arranged swaps must be presented to the Membership Director and be settled by January 31, 2009 

As a result of the turnover of the Management of the Club on January 1^st, there have been a number of changes implemented that will have a major impact on the sale of  Memberships, the Resign Lists, and the ability of Members to upgrade, downgrade or swap their Memberships. Clearly, the Board feels that this is a necessary first step to improving the value of everyone’s membership by facilitating a “fluid” marketplace for the sale and transfer of Club Memberships. Ultimately, these measures will create a true equity in your memberships and it will also improve the value of all homes in Gulf Harbour. If you have any questions, especially if you are on the Resign List, please contact Amy Dolan at 444-3631

THERE ARE NO LONGER ANY NEW MEMBERSHIPS AVAILABLE FOR SALE

In an effort to address the Member’s number one expressed concern, the Board’s first action was retire all of the Golf and Sports memberships that were acquired from WCI at turnover.  Beginning immediately, Golf and Sports memberships can only be purchased from a Member who is on the Resign List, or with the purchase of Gulf Harbour property. The days of the 4 to 1 ratio are over!

RESIGN LIST PROCEDURE

Beginning immediately, Members currently on either the Golf or Sports Resign Lists are reminded that, according to the Club’s By-Laws, they have technically “resigned” from the Club and are simply waiting to be replaced by a new Member. The previous rationale for Members placing themselves on these lists varied from actually wishing to leave, protesting WCI’s management, or just to trying to “time” their departure. Whatever the reason, the By-Laws state that this decision to resign is not revocable unless the Board of Governors gives special permission.  In the past, permission has been given, in most cases, without question. However, beginning March 1, 2009, Members who ask to be taken off the Resign Lists will not be granted permission unless there are “extenuating circumstances” approved by the Board.  We encourage any Members currently on the Resign List, who do not really want to resign from the Club, to withdraw their resignations as soon as possible. Forms to withdraw names from the Resign Lists are currently available from our membership director, Amy Dolan, in the Membership Office. This will enable them to be removed from the list without special Board action, but ONLY until the end of business on February 28, 2009.    

SWAPPING YOUR MEMBERSHIP

            There is an existing precedence for the swapping of memberships. Under WCI’s management, in some instances, permission was given to Members who had arranged a swapping agreement with other Members. Specifically, a Golf Member would ask permission from the Board to exchange his or her Membership with a Sports Member. This provided a convenient method for the Golf Member to “downgrade” to Sports and for the Sports Member to “upgrade” to Golf. The net effect was to turn two disenchanted Members into two happy Members. WCI, on the other hand, decided that it did not help them to sell Memberships from their inventory of unsold Memberships and did all that they could to discourage the practice.

            In an effort to expedite the reduction and elimination of the Resign List, and to continue to make “Happy Members”, the Board believes that “swapping” Memberships continues to provide considerable intuitive appeal. Therefore, the Board has decided that, beginning immediately, the Membership Office will create and maintain a “Swap” list for both Golf and Sports Members, wishing to exchange or swap their Memberships, for the other class of Membership.  Members wishing to place their name on the swap lists must be in “good standing” with the Club, and their request must be approved by the Membership Committee to be eligible for swapping.  If you are interested in swapping your membership you must declare your intentions to Amy Dolan. 

SWAP LIST ORDER BASED ON RESIGN LIST POSITION

            The initial Swap Lists will be based upon a Member’s position on the resign list. For example, if the Member who is currently number one on the Resign List wishes to also be on the Swap List, that Member will be given the opportunity. If number one is not interested, we would ask number two, then three, and so on. This priority will only be offered until February 28, 2009, at which time positions on the Swap list will be based strictly upon date of the swap request submission.  A member not on the resign list wishing to swap, must return their application prior to February 28th, with the knowledge that the member’s priority will still come after those who are on the resign list prior to February 28th.  Members deciding to go on the swap list after February 28^th will be added to the bottom of the swap list.  Once the initial lists have been compiled, the Membership Committee will match the Member wishing to upgrade with the Member wishing to downgrade. The matching will be based solely upon position on the respective swap lists.

FINANCIAL CONSIDERATIONS FOR SWAPS

            The initiation fees to be used in pricing the swaps will be the same as the official fees currently being charged for a new Member purchasing a Membership from a Member currently on the Resign List. As of today, these fees are $40,000 and $7,000 respectively for Golf and Sports. This would result in the Sports Member paying $40,000 to the Club for the Golf Membership and the Golf Member paying $7,000 to the Club for the Sports Membership. The Club would then issue a check to the Golf Member for $32,000 (80% of the sale price at closing)* and a check to the Sports Member in the amount of $5,600 (also 80% of the price at closing).

The differential between what the new Golf Member pays and what the old Member receives would be used to help fund the Club’s Capital Reserve. The same would be true for the new Sports Member. This is not different than past practice and is what the Club By-Laws require.

            Also, there would be a “value” differential between the Golf Membership and the Sports Membership. This number would be the difference in price between a Golf and Sports Membership which is currently $33,000 ($40,000 less $7,000 = $33,000). This financial consideration would have to be negotiated independently between the two swapping Members. This negotiation will not involve, nor be the responsibility of, the Membership Committee or the Board of Governors. If no agreement can be made, they would both be placed back on the Swap List and attempts would be made to find a new match.  

On paper, the differential between the official price for a Golf Membership and a Sports Membership is currently $33,000. Let's say Jones wants the "full price or $33,000” to do a swap. He gets matched by Amy with Smith, who is only willing to pay $25,000 for what he perceives as a simple "upgrade". If Jones and Smith can't come to some agreement on the price, they would move on to other potential matches. Of course the difference between full price and whatever is actually negotiated would be decided between the two Members. The Club and Board will not be involved in this process.  Like it or not, this is what has been going on for years with Membership sales that involved the transfer of Gulf Harbour property using creative methods like quit-claim transfers. On the other hand, now that the Members own the Club, once they are on the Swap List, and the Member’s name comes up for a "match", we expect that each Member will realize his responsibility to negotiate with his fellow members in "good faith" and to make every effort to reach an agreement. 

PREVIOUSLY ARRANGED SWAPS

            The Board is aware that in anticipation of the Club’s turnover, some Members have already negotiated what we will call a “previously arranged swap” which could be perceived as outside of the parameters which we are going to establish for the future. However, for a very short period of time the Club will honor the existing swapping precedent in order to expedite the reduction of the Resign List.  Therefore, pre-arranged swaps similar to those that have taken place under WCI’s management will be allowed until January 31, 2009.  After that, these Members will have to participate in the “Swap List” procedure outlined above.  To participate, a member MUST identify themselves to Amy Dolan with all of the pertinent information about the two parties involved. These previously arranged swaps will still be required to pay all appropriate fees as set forth above.

FEES AND CHARGES

As indicated in the example above, the differential between what the incoming Member pays, and what the outgoing Member receives will be the cost of the swap. This amount will be used to help fund the Club’s Capital Reserve. No other fees or charges will be made. It should be noted that WCI left us with a zero balance in the Capital Reserve so these funds are important going forward.

* The percentage used for Founding Golf Members would be 90% which, in this example, would make their refund $36,000.

Board of Directors